EX-99.2 3 investorupdate042419.htm INVESTOR UPDATE 04.24.19 Exhibit



logo3a12.jpg
Exhibit 99.2
Investor Update
April 24, 2019
This investor update provides Spirit's second quarter and full year 2019 guidance. All data is based on preliminary estimates.
For the second quarter 2019, Spirit estimates its total revenue per available seat mile (“TRASM”) will be up approximately 5 percent year over year which includes approximately 50 basis points of negative impact from the Easter storm described below.
During the summer of 2019, the Ft. Lauderdale airport will be doing construction on the North runway, limiting the flight throughput per hour.  Following the Company's review of the airport's operational plan, the Company decided to boost its number of crew members and effective aircraft spares at Ft. Lauderdale airport during this construction, adding approximately 100 basis points to the CASM ex-fuel year over year percentage change for the second quarter 2019. Separately, a severe storm system impacted a large majority of flights to/from Florida on April 19, 2019. As a result, Spirit canceled 318 flights (58 million available seat miles (“ASMs”)) over the Easter weekend and incurred costs of about $6 million for passenger re-accommodation and disrupted crew expenses.  The additional expense and loss of ASMs related to this storm adds approximately 150 basis points to the CASM ex-fuel year over year percentage change for the second quarter 2019.  Spirit now estimates its cost per available seat mile excluding fuel (“CASM ex-fuel”) for the second quarter 2019 will be about 5.41 cents, up approximately 4.6 percent year over year.
The Company estimates its full year 2019 CASM ex-fuel will be up between 2 and 3 percent year over year which includes 50 basis points related to carrying the extra crew during the Ft. Lauderdale runway construction and 50 basis points related to the Easter storm.
The Company will provide additional details regarding its outlook for 2019 on its conference call scheduled for April 25, 2019.
 
 
 
 
 
 
 
 
 
 
 
2Q19E
2Q18A
 
FY2019E
FY18A
 
 
 
Capacity - Available Seat Miles (ASMs) (%Change/Thousands)
Up ~13%
9,515,842
 
Up ~15%
36,502,982

 
 
 
 
 
 
 
 
 
Total Revenue per ASM (TRASM) (%Change/Cents)
Up ~5%
8.95
 
 
9.10
 
 
 
 
 
 
 
Adjusted Operating Expense Ex-Fuel per ASM (%Change/Cents)(1)
Up ~4.6%
5.17
 
Up 2% to 3%
5.30
 
 
 
 
 
 
Average Stage Length (Miles)
1,018
1,051
 
Down 2%
1,032
 
 
 
 
 
 
 
 
Fuel Expense
 
 
 
 
 
Fuel gallons (Millions)
122
106
 
476
412
Economic fuel cost per gallon ($)(2)
$2.25
$2.32
 
 
$2.28
 
 
 
 
 
 
 
 
 
Interest Expense, net of Capitalized Interest and Interest Income ($Millions)
$13.7
$13.8
 
$55.4
$54.8
 
 
 
 
 
 
 
 
 
Effective Tax Rate, Non-GAAP
24%
24%
 
24%
24%
 
 
 
 
 
 
 
 
Wtd. Average Diluted Share Count (Millions)
68.6
68.3
 
68.6
68.4



1



 
 
 
 
 
Full Year 2019 Guidance
 
 
 
 
Full Year 2019E
Estimated Cash Tax Rate(3)
 
1% to 2%
 
 
 
Capital Expenditures ($Millions)
 
Purchase of property and equipment, net of pre-delivery deposits and refunds:(4)
 
$448
 
Other capital expenditures
 
$50
 
Total capital expenditures
 
$498
 
 
 
Anticipated proceeds from issuance of long-term debt ($Millions)
 
$177
 
 
 
Other Working Capital Requirements ($Millions)
 
Payments for heavy maintenance events(5)
 
$195
 
Pre-paid maintenance deposits, net of reimbursements
 
$(67)
 
 
 
 
 
 

Footnotes
(1)
Excludes special items which may include loss on disposal of assets, special charges, and other items.
(2)
Includes fuel taxes and into-plane fuel cost.
(3)
Spirit's cash tax rate differs from its effective tax rate primarily due to the benefit related to bonus depreciation on the acquisition of purchased aircraft.
(4)
Excludes capital commitments related to 6 aircraft that the Company anticipates to be financed via sale leaseback transactions. Includes the purchase of 2 spare engines.
(5)
Payments for heavy maintenance events are recorded as "Deferred heavy maintenance" within "Changes in operating assets and liabilities" on the Company's cash flow statement.
 
 
 
 
 
 



2



 
 
 
 
 
 
 
 
 
 
 
 
 
 
Spirit Airlines, Inc.
 
 
 
 
 
 
 
 
 
 
 
Aircraft Delivery Schedule (net of Scheduled Retirements) as of April 24, 2019
 
A319

 
A320 CEO

 
A320 NEO

 
A321 CEO

 
Total

 
Total Year-end 2018
31

 
60

 
7

 
30

 
128

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1Q19
 
—

 
1

 
4

 
—

 
5

 
 
 
2Q19
 
—

 
1

 
1

 
—

 
2

 
 
 
3Q19
 
—

 
2

 
2

 
—

 
4

 
 
 
4Q19
 
—

 
—

 
6

 
—

 
6

 
Total Year-end 2019
31

 
64

 
20

 
30

 
145

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1Q20
 
—

 
—

 
3

 
—

 
3

 
 
 
2Q20
 
—

 
—

 
6

 
—

 
6

 
 
 
3Q20
 
—

 
—

 
4

 
—

 
4

 
 
 
4Q20
 
—

 
—

 
4

 
—

 
4

 
Total Year-end 2020
31

 
64

 
37

 
30

 
162

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2021
 
—

 
—

 
18

 
—

 
18

 
Total Year-end 2021
31

 
64

 
55

 
30

 
180

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Seat Configurations
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
A319
145
 
 
 
 
 
 
 
 
 
 
 
A320
182
 
 
 
 
 
 
 
 
 
 
A321
228
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 











3



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 and full year 2019, 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.







4