Attached files
| file | filename |
|---|---|
| 8-K - 8-K - Spirit Airlines, Inc. | form8-kinvestorupdate071118.htm |
Exhibit 99.1
Investor Update
July 11, 2018
This investor update provides Spirit's second quarter 2018 guidance. All data is based on preliminary estimates.
Total revenue for the second quarter 2018 came in more than $10 million higher than the mid-point of our implied guidance. Total revenue per available seat mile (TRASM) for the second quarter 2018 is estimated to be approximately 8.95 cents, down 6.8 percent year over year. During the second quarter 2018, we achieved a better-than-expected completion factor, driving slightly higher capacity, which had a negative impact of approximately 50 basis points on our year-over-year TRASM result.
Adjusted cost per available seat mile excluding fuel for the second quarter 2018 is expected to be down approximately 11 percent year over year, better than our previous guidance of down 7.5 to 8.5 percent. We estimate approximately 100 basis points of the better-than-expected performance is related to expense shifting from the second quarter to the fourth quarter 2018 due to timing, with the remainder attributable to better operational performance, including higher completion factor.
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2Q18E | ||||
Capacity - Available Seat Miles (ASMs) | ||||
Year-over-Year % Change | 30.5% | |||
Total Revenue per ASM (TRASM) | ||||
Year-over-Year % Change | Down approx. 6.8% | |||
Adjusted Operating Expense Ex-Fuel per ASM | ||||
Adjusted CASM ex-fuel year-over-year % change(1) | Down approx. 11% | |||
Average Stage Length (miles) | 1,051 | |||
Fuel Expense | ||||
Fuel gallons (millions) | 106.1 | |||
Economic fuel cost per gallon ($)(2) | $2.32 | |||
Selected Operating Expenses ($Millions) | ||||
Aircraft rent | $41.7 | |||
Depreciation and amortization | $45.6 | |||
Interest Expense, net of Capitalized Interest ($Millions) | ||||
Interest expense | $20.5 | |||
Capitalized interest | $(2.3) | |||
Interest Income | $(4.4) | |||
Interest expense, net | $13.8 | |||
Effective Tax Rate | 24% | |||
Wtd. Average Diluted Share Count (Millions) | 68.3 | |||
Footnotes
(1) | Excludes all components of fuel expense, loss on disposal of assets, and special items. | ||||
(2) | Includes fuel taxes and into-plane fuel cost. | ||||
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Forward-Looking Statements
Statements in this release and certain oral statements made from time to time by representatives of the Company contain various forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the Securities Act), and Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act) which are subject to the “safe harbor” created by those sections. Forward-looking statements are based on our management’s beliefs and assumptions and on information currently available to our management. All statements other than statements of historical facts are “forward-looking statements” for purposes of these provisions. In some cases, you can identify forward-looking statements by terms such as “may,” “will,” “should,” “could,” “would,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “project,” “predict,” “potential,” and similar expressions intended to identify forward-looking statements. Forward-looking statements include, without limitation, statements regarding the Company's intentions and expectations regarding the delivery schedule of aircraft on order, guidance and estimates for the second quarter 2018, including expectations regarding the delivery schedule of aircraft on order, announced new service routes, revenues, TRASM, cost of operations, operating margin, capacity, CASM, CASM ex-fuel, fuel expense, economic fuel cost, expected unrealized mark-to-market gains or losses, capital expenditures and other working capital requirements, aircraft rent, depreciation and amortization, fuel hedges and tax rates. Such forward-looking statements are subject to risks, uncertainties and other important factors that could cause actual results and the timing of certain events to differ materially from future results expressed or implied by such forward-looking statements. Furthermore, such forward-looking statements speak only as of the date of this release. Except as required by law, we undertake no obligation to update any forward-looking statements to reflect events or circumstances after the date of such statements. Risks or uncertainties (i) that are not currently known to us, (ii) that we currently deem to be immaterial, or (iii) that could apply to any company, could also materially adversely affect our business, financial condition, or future results. References in this report to “Spirit,” “we,” “us,” “our,” or the “Company” shall mean Spirit Airlines, Inc., unless the context indicates otherwise. Additional information concerning certain factors is contained in the Company's Securities and Exchange Commission filings, including but not limited to the Company's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K.
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