EX-99.1 2 investorupdate43013.htm INVESTOR UPDATE 4.30.13 Investor Update 4.30.13


EXHIBIT 99.1
Investor Update
April 30, 2013

This investor update provides Spirit's investor guidance for the second quarter ending June 30, 2013 and full year 2013. All data is based on preliminary estimates.
Capacity - Available Seat Miles (ASMs)
1Q13A

 
2Q13E

 
3Q13E

 
4Q13E

 
FY2013E

 
ASMs Year-over-Year % Change
20.8
%
 
21.8
%
 
20.3
%
 
21.5
%
 
21.1
%
 
 
2Q13E
 
 
 
 
 
 
 
 
 
Passenger segments Year-over-Year % Change
20
%
-
21%
 
 
 
 
 
 
 
 
Operating Expense per ASM (CASM) (cents)
 
 
 
 
 
CASM*
9.74

-
9.81
 
 
Less: Fuel expense per ASM
3.76
 
 
CASM ex-fuel*
5.98

-
6.05
 
 
 
 
 
 
Average Stage Length (miles)
938
 
 
 
 
 
 
 
 
Fuel Expense per Gallon ($)
 
 
 
 
 
Fuel cost*
$3.04
 
 
Less: Unrealized mark-to-market (gains) and losses(1)
n/a
 
 
Economic fuel cost
$3.04
 
 
 
 
 
 
 
 
 
Fuel gallons (thousands)
42,548
 
 
 
 
 
 
 
 
 
*Includes fuel taxes, and into-plane fuel cost. Based on the jet fuel curve as of April 24, 2013 and includes fuel hedge (gains) and losses currently expected to be realized during the second quarter 2013.
 
 
 
 
 
 
 
Select Operating Expenses ($Millions)
2Q13E
 
FY2013E
Aircraft rent
$43
 
 
$175
Depreciation and amortization
$8
 
 
$40
 
 
 
 
 
 
 
Effective Tax Rate
38%
 
38%
 
 
 
 
 
 
 
Wtd. Average Share Count (thousands)
 
 
 
 
 
 
Basic
72,598
 
72,591
 
Diluted
72,922
 
72,941
 








Capital Expenditures & Other Working Capital Requirements
 
Full Year 2013E
 
 
(millions)
 
Capital expenditures (2)
 
$21
 
Payments for heavy maintenance events(3)
 
$77
 
Pre-delivery deposits for flight equipment, net of refunds
 
$30
 
Pre-paid maintenance reserves, net of reimbursements
 
$11



Fuel Hedges
% of Est.
 
 
 
Average price
 
Period
Volume
 
Instrument
 
Call/gal
Put /gal
2Q13
21
%
 
USGC Jet collars
 
$2.94
 
$2.66
 
3Q13
17
%
 
USGC Jet collars
 
$2.95
 
$2.68
 

Refining Margin Hedges
% of Est.
 
 
 
Average price
 
Period
Volume
 
Instrument
 
per barrel
 
3Q13
46
%
 
Jet Fuel Swaps
 
$32.25
 
4Q13
21
%
 
Jet Fuel Swaps
 
$32.39
 


Footnotes
(1)
Unrealized mark-to-market (gains) and losses are comprised of estimated non-cash adjustments to aircraft fuel expense. The Company may have unrealized mark-to-market (gains) or losses in the second quarter 2013, but is not yet able to estimate the amount.
(2)
Includes the purchase of a spare engine that was financed under a sale/leaseback transaction after it was delivered.
(3)
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.








Spirit Airlines, Inc.
Aircraft Delivery Schedule - as of April 30, 2013
 
 
 
 
 
 
 
 
 
Aircraft Type
 
 
 
 
A319

 
 A320

 
 A321

 
 Total
Total Aircraft Year-end 2012
27

 
16

 
2

 
45
 
 
 
 
 
 
 
 
 
 
 
 
 
1Q13
 
2

 
2

 
-

 
4
 
 
2Q13
 
-

 
1

 
-

 
1
 
 
3Q13
 
-

 
1

 
-

 
1
 
 
4Q13
 
-

 
3

 
-

 
3
Total Aircraft Year-end 2013
29

 
23

 
2

 
54
 
 
 
 
 
 
 
 
 
 
 
 
 
2014
 
-

 
7

 
-

 
7
 
 
2015
 
-

 
10

 
-

 
10
Total Aircraft Year-end 2015
29

 
40

 
2

 
71
 
 
 
 
 
 
 
 
 
 
 
The Company has 75 new aircraft (30 classic A320s and 45 A320neos) on firm order for delivery between 2016 and 2021. In addition, the Company has signed a Letter of Intent with ILFC to lease five A320neo aircraft, subject to final documentation. The delivery dates for the leased A320neo aircraft are contingent upon the engine type selection which has not yet been determined. The Company has 33 aircraft with lease expirations between 2016 and 2020; however, actual retirements may differ depending on future fleet decisions.

Seat Configurations
 
 
 
 
 
 
 
Aircraft Type
Seats
 
 
 
 
 
 
 
 
A319
145
 
 
 
 
 
 
 
 
A320
178
 
 
 
 
 
 
 
 
A321
218
 
 
 
 
 
 
 







Forward-Looking Statements
Statements in this release 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 2013, including expectations regarding 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 for the year ended December 31, 2012.