SPIRIT AIRLINES INCORPORATED Investor Update
April 29, 2015
This investor update provides Spirit's guidance for the second quarter ending June 30, 2015 and full year ending December 31, 2015. All data is based on preliminary estimates.
Capacity - Available Seat Miles (ASMs) | 1Q15A | 2Q15E | 3Q15E | 4Q15E | FY2015E |
Year-over-Year % Change | 25.0% | 32.2% | 34.5% | 30.6% | 30.7% |
2Q15E FY2015E Operating Margin(1) 24.5% - 26.5% 24.0% - 27.0%
Adjusted CASM(1) 7.88 - 8.00 7.90 - 8.02
Less: Economic fuel expense per ASM(2) 2.47 2.49
Adjusted CASM ex-fuel(3) 5.41 5.53 5.41 - 5.53
Economic fuel cost(2) $2.04 $2.05
Fuel gallons (thousands) 64,220 259,103
Aircraft rent $53.2 $214.7
Depreciation and amortization $17.8 $75.8
Interest expense $4.9 $21.6
Capitalized interest (3.1) (11.9) Interest Expense, net of Capitalized Interest $1.8 $9.7
Basic 72.9 72.9
Diluted 73.2 73.2
1
Aircraft capital expenditures(4) $ 620
Other capital expenditures(5) 67
Gross capital expenditures(4) $ 687
Payments for heavy maintenance events(6) $ 20
Pre-delivery deposits for flight equipment, net of refunds $ 114
Pre-paid maintenance deposits, net of reimbursements $ 30
2Q15 70% USGC Jet Call Options $1.90
3Q15 20% USGC Jet Call Options $1.92
4Q15 17% USGC Jet Call Options $1.94
*Average price per gallon hedged does not include fuel taxes, into-plane cost, and fuel hedge premiums.
(1) Excludes special items which may include unrealized gains or losses related to fuel derivative contracts, loss on disposal of assets, and special charges or credits. Includes realized gains or losses related to fuel derivative contracts.
(2) Includes fuel taxes, into-plane fuel cost, fuel hedge premiums related to options settling in the period, and realized gains and losses related to fuel derivative contracts.
(3) Excludes all components of fuel expense, loss on disposal of assets, and special charges or credits.
(4) Includes amounts related to 14 aircraft scheduled for delivery in 2015, including $152 million that was funded as pre-delivery deposits in prior years that is held by the aircraft manufacturer. The Company has 15 aircraft scheduled for delivery in 2015. The Company has debt commitments for the first 11 aircraft delivering in 2015 and assumes it will debt finance 3 additional aircraft and direct lease 1 aircraft from a third-party.
(5) Includes the purchase of a spare engine.
(6) Payments for heavy maintenance events are recorded as Long-term deposits and other assets within "Changes in operating assets and liabilities," on the Company's cash flow statement.
2
Aircraft Delivery Schedule (net of Scheduled Retirements) as of April 29, 2015
A319 | A320 CEO | A320 NEO | A321 CEO | A321 NEO | Total | |
Total Year-end 2014 | 29 | 34 | - | 2 | - | 65 |
1Q15 - 5 - - - 5
2Q15 - 3 - - - 3
3Q15 - - - 3 - 3
4Q15 - - 1 3 - 4
Total Year-end 2015 29 42 1 8 - 80
1Q16 (1) - 1 3 - 3
2Q16 (2) 1 1 2 - 2
3Q16 - 1 2 2 - 5
4Q16 - 1 - 2 - 3
Total Year-end 2016 26 45 5 17 - 93
2017 (4) 7 - 8 - 11
2018 (5) 2 6 5 - 8
2019 (1) - 3 - 10 12
2020 (7) - 13 - - 6
2021 (4) - 18 - - 14
Total Year-end 2021 5 54 45 30 10 144
Notes:
Includes aircraft on firm order as well as 5 leased A320neo aircraft.
2017 reflects scheduled deliveries of 8 A320ceo and 10 A321ceo aircraft, net of 1 A320ceo and 2 A321ceo lease expirations.
3
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 Section 21E of the Securities Exchange Act of 1934, as amended, which represent the Company's expectations or beliefs concerning future events. When used in this release, the words "expects," "estimates," "plans," "anticipates," "indicates," "believes," "forecast," "guidance," "outlook," "may," "will," "should," "seeks," "targets" and similar expressions are intended to identify forward-looking statements. Similarly, statements that describe the Company's objectives, plans or goals, or actions the Company may take in the future, are 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 and full year 2015 including expectations regarding the delivery schedule of aircraft on order, announced new service routes, revenues, 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. All forward-looking statements in this release are based upon information available to the Company on the date of this release. The Company has no intent, nor undertakes any obligation,
to publicly update or revise any of these projections, whether as a result of new information, future events or otherwise, except as required by law. Forward-looking statements are subject to a number of factors that could cause the Company's actual results to differ materially from the Company's expectations, including the competitive environment in the airline industry; the Company's ability to keep costs low; changes in fuel costs; the impact of worldwide economic conditions on customer travel behavior; the Company's ability to generate non-ticket revenues; and government regulation. Additional information concerning these and other 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 and Quarterly Reports on Form 10-Q.
4
|
distributed by
|
