0001498710-13-000113.txt : 20130724 0001498710-13-000113.hdr.sgml : 20130724 20130724114618 ACCESSION NUMBER: 0001498710-13-000113 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20130723 ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20130724 DATE AS OF CHANGE: 20130724 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Spirit Airlines, Inc. CENTRAL INDEX KEY: 0001498710 STANDARD INDUSTRIAL CLASSIFICATION: AIR TRANSPORTATION, SCHEDULED [4512] IRS NUMBER: 381747023 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-35186 FILM NUMBER: 13982996 BUSINESS ADDRESS: STREET 1: 2800 EXECUTIVE WAY CITY: MIRAMAR STATE: FL ZIP: 33025 BUSINESS PHONE: 954-447-7920 MAIL ADDRESS: STREET 1: 2800 EXECUTIVE WAY CITY: MIRAMAR STATE: FL ZIP: 33025 8-K 1 form8-kinvestorupdate72413.htm 8-K Form 8-K Investor Update 7.24.13


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
____________________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 24, 2013
____________________
SPIRIT AIRLINES, INC.
(Exact name of registrant as specified in its charter)

Delaware
(State or other jurisdiction of incorporation)

001-35186
(Commission File Number)
38-1747023
(IRS Employer Identification Number)

2800 Executive Way
Miramar, Florida 33025
(Address of principal executive offices, including Zip Code)

(954) 447-7920
(Registrant's telephone number, including area code)
____________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
[]
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
 
[]
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
 
[]
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
 
[]
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
  





The information in this report furnished pursuant to Item 7.01 shall not be deemed “filed” for the purposes of Section 18 of the Securities and Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section. It may only be incorporated by reference in another filing under the Exchange Act or the Securities Act of 1933, as amended (the “Securities Act”), if such subsequent filing specifically references the information furnished pursuant to Item 7.01 of this report.

Item 7.01.
Regulation FD Disclosure.
On July 24, 2013, the Company provided an update to investors regarding the Company's guidance for the third quarter 2013 and full year 2013.

The guidance provided therein is only an estimate of what the Company believes is realizable as of the date of this investor update. Actual results will vary from the guidance and the variations may be material. The Company undertakes no intent or 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.

The foregoing description is qualified in its entirety by reference to the investor update, a copy of which is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

Item 9.01.
Financial Statements and Exhibits.
(d)    Exhibits

The following is furnished as an exhibit to this report and shall not be deemed “filed” for purposes of Section 18 of the Exchange Act:

Exhibit No.
Description
99.1
Investor Update regarding third quarter 2013 and full year 2013 guidance.



 

SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


Date: July 24, 2013
SPIRIT AIRLINES, INC.


By: /s/ Thomas Canfield    
Name: Thomas Canfield
Title: Senior Vice President and General Counsel








EXHIBIT INDEX

Exhibit No.
Description
 
 
99.1
Investor Update regarding third quarter 2013 and full year 2013 guidance.





EX-99.1 2 investorupdate72413.htm INVESTOR UPDATE 7.24.13 Investor Update 7.24.13


EXHIBIT 99.1
Investor Update
July 24, 2013

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

 
2Q13A

 
3Q13E

 
4Q13E

 
FY2013E

 
ASMs Year-over-Year % Change
20.8
%
 
21.0
%
 
21.9
%
 
23.6
%
 
21.9
%
 
 
3Q13E
 
 
 
 
 
 
 
 
 
Passenger segments Year-over-Year % Change
16
%
-
17%
 
 
 
 
 
 
 
 
Operating Expense per ASM (CASM) (cents)
 
 
 
 
 
CASM*
9.92

-
9.99
 
 
Less: Fuel expense per ASM
4.08
 
 
CASM ex-fuel*
5.84

-
5.91
 
 
 
 
 
 
Average Stage Length (miles)
957
 
 
 
 
 
 
 
 
Fuel Expense per Gallon ($)
 
 
 
 
 
Fuel cost*
$3.32
 
 
Less: Unrealized mark-to-market (gains) and losses(1)
n/a
 
 
Economic fuel cost
$3.32
 
 
 
 
 
 
 
 
 
Fuel gallons (thousands)
44,542
 
 
 
 
 
 
 
 
 
*Includes fuel taxes, and into-plane fuel cost. Based on the jet fuel curve as of July 18, 2013 and includes fuel hedge (gains) and losses currently expected to be realized during the third quarter 2013.
 
 
 
 
 
 
 
Select Operating Expenses ($Millions)
3Q13E
 
FY2013E
Aircraft rent
$42
 
$170
Depreciation and amortization
$9
 
$35
 
 
 
 
 
 
 
Effective Tax Rate
37.5%
 
37.5%
 
 
 
 
 
 
 
Wtd. Average Share Count (thousands)
 
 
 
 
 
 
Basic
72,628
 
72,588
 
Diluted
73,038
 
72,985
 








Capital Expenditures & Other Working Capital Requirements
 
Full Year 2013E
 
 
(millions)
 
Capital expenditures (2)
 
$21
 
Payments for heavy maintenance events(3)
 
$78
 
Pre-delivery deposits for flight equipment, net of refunds
 
$49
 
Pre-paid maintenance deposits, net of reimbursements
 
$10



Fuel Hedges
% of Est.
 
 
 
Average price
 
Period
Volume
 
Instrument
 
Call/gal
Put /gal
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 third 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 July 24, 2013
 
 
 
 
 
 
 
 
 
Aircraft Type
 
 
 
 
A319

 
 A320

 
A320 NEO

 
 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
 
-

 
15

 
1

 
2

 
18
Total Aircraft Year-end 2015
29

 
45

 
1

 
4

 
79
 
 
 
 
 
 
 
 

 
 
 
 
The Company has 88 new aircraft (15 A320ceos, 45 A320neos, 28 A321ceos) scheduled for delivery between 2016 and 2021. In addition, the Company has signed a Letter of Intent with ILFC to lease four A320neo aircraft scheduled for delivery in 2016. The Company has 28 aircraft with lease expirations between 2016 and 2021; however, actual retirements may differ depending on future fleet decisions.

Seat Configurations
 
 
 
 
 
 
 
 
 
Aircraft Type
Seats
 
 
 
 
 
 
 
 
 
 
A319
145
 
 
 
 
 
 
 
 
 
 
A320
178
 
 
 
 
 
 
 
 
 
 
A321
218*
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
*A321s delivering in 2015 and beyond are expected to be configured with 219 seats.







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 third 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 and subsequent Quarterly Reports on Form 10-Q.



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