0001498710-13-000140.txt : 20131030 0001498710-13-000140.hdr.sgml : 20131030 20131030111408 ACCESSION NUMBER: 0001498710-13-000140 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20131030 ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20131030 DATE AS OF CHANGE: 20131030 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: 131178196 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-kinvestorupdate103013.htm 8-K Form 8-K Investor Update 10.30.13


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): October 30, 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 October 30, 2013, the Company provided an update to investors regarding the Company's guidance for the fourth quarter 2013, full year 2013, and full year 2014.

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 fourth quarter 2013, full year 2013, and full year 2014 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: October 30, 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 fourth quarter 2013, full year 2013, and full year 2014 guidance.





EX-99.1 2 investorupdate103013.htm INVESTOR UPDATE 20131030 Investor Update 10.30.13



Investor Update
October 30, 2013

This investor update provides Spirit's investor guidance for the fourth quarter ending December 31, 2013, full year 2013, and full year 2014. All data is based on preliminary estimates.
Capacity - Available Seat Miles (ASMs)
1Q13A

 
2Q13A

 
3Q13A

 
4Q13E

 
FY2013E

 
ASMs Year-over-Year % Change
20.8
%
 
21.0
%
 
22.4
%
 
23.8
%
 
22.0
%
 
 
4Q13E
 
 
 
 
 
 
 
 
 
Passenger segments Year-over-Year % Change
18
%
-
19%
 
 
 
 
 
 
 
 
Operating Expense per ASM (CASM) (cents)
 
 
 
 
 
Adjusted CASM(1)
10.09

-
10.15
 
 
Less: Fuel expense per ASM
3.92
 
 
Adjusted CASM ex-fuel(1)
6.17

-
6.23
 
 
 
 
 
 
On October 15, 2013, the Company had an aircraft experience an engine failure that resulted in damage to the engine and aircraft. The cost estimates above include $10 million of estimated expenses related to the repair of the engine and aircraft.
 
 
 
 
Average Stage Length (miles)
998
 
 
 
 
 
 
 
 
Fuel Expense per Gallon ($)
 
 
 
 
 
Fuel cost*
$3.17
 
 
Less: Unrealized mark-to-market (gains) and losses(2)
n/a
 
 
Economic fuel cost
$3.17
 
 
 
 
 
 
 
 
 
Fuel gallons (thousands)
45,300
 
 
 
 
 
 
 
 
 
*Includes fuel taxes, and into-plane fuel cost. Based on the jet fuel curve as of October 22, 2013 and includes fuel hedge (gains) and losses currently expected to be realized during the fourth quarter 2013.
 
 
 
 
 
 
 
Select Operating Expenses ($Millions)
4Q13E
 
FY2013E
Aircraft rent
$46
 
$171
Depreciation and amortization
$13
 
$35
 
 
 
 
 
 
 
Effective Tax Rate
37.5%
 
37.5%
 
 
 
 
 
 
 
Wtd. Average Share Count (thousands)
 
 
 
 
 
 
Basic
72,649
 
72,590
 
Diluted
73,065
 
72,966
 








Capital Expenditures & Other Working Capital Requirements
 
Full Year 2013E
 
 
(millions)
 
Capital expenditures (3)
 
$21
 
Payments for heavy maintenance events(4)
 
$71
 
Pre-delivery deposits for flight equipment, net of refunds
 
$53
 
Pre-paid maintenance deposits, net of reimbursements
 
$11


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

Select 2014 Guidance

Select Operating Expenses
Full Year 2014E
 
(millions)
Aircraft rent
$195
Depreciation and amortization
$50
 
 
 
 
Capacity - Available Seat Miles (ASMs)
Full Year 2014E
ASMs Year-over-Year % Change
Approx. 15%
 
 


Footnotes
(1)
Excludes special items and unrealized mark-to-market (gains) and losses.
(2)
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 fourth quarter 2013, but is not yet able to estimate the amount.
(3)
Includes the purchase of a spare engine that was financed under a sale/leaseback transaction after it was delivered.
(4)
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 (net of Scheduled Retirements) as of October 30, 2013

A319


A320 CEO


A320 NEO


A321 CEO


A321 NEO


Total

Total Year-end 2012
27


16




2




45


















1Q13

2


2








4



2Q13



1








1



3Q13



1








1



4Q13



3








3

Total Year-end 2013
29


23




2




54


















2014



7








7



2015



15


1


2




18



2016

(3
)

5


4


8




14



2017

(4
)

8




8




12



2018

(5
)



6


5




6



2019

(1
)



8




5


12



2020

(7
)



13






6



2021

(4
)



18






14

Total Year-end 2021
5


58


50


25


5


143















Future deliveries includes aircraft on firm order as well as 5 leased A320neo aircraft. 2017 reflects scheduled deliveries of 10 A320ceo and 10 A321ceo aircraft, net of 2 A320 and 2 A321 lease expirations.












Seat Configurations












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 fourth 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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