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Actionable news in SAVE: Spirit Airlines, Inc.,

) - Spirit Airlines, Inc. (Nasdaq: Save) Today Reported

The following excerpt is from the company's SEC filing.


financial results.

Adjusted net income for the



31.6 percent

$97.3 million

per diluted share) compared to the

. GAAP net income for the


percent year over year to

$97.1 million

per diluted share).

Adjusted pre-tax margin for the

basis points to

26.9 percent

. On a GAAP basis, pre-tax margin for the third quarter 2015 increased

Spirit ended the

2015 with unrestricted cash and cash equivalents of

$748.9 million

Spirit's return on invested capital (before taxes and excluding special items) for the twelve months ended

September 30, 2015

28.8 percent

"I thank our team members for their contributions to our record third quarter results, driven by both lower ex-fuel unit costs and lower fuel prices," said Ben Baldanza, Spirit’s Chief Executive Officer. "We remain focused on building long-term shareholder value by leveraging our ultra-low cost competitive advantage to continue to grow successfully, even in the midst of a volatile pricing environment."

Revenue Performance

For the

, Spirit's total operating revenue was

$574.8 million

percent compared to the

, driven by an increase in flight volume, partially offset by a decrease in operating yields.

Total revenue per passenger flight segment ("PFS") for the


13.1 percent


, primarily driven by a

20.8 percent

decrease in ticket revenue per PFS. The decline in ticket revenue per PFS was driven by lower fare levels as a result of increased competitive pressures as well as a higher percentage of Spirit's markets being under development compared to the same period last year. Non-ticket revenue remained stable, declining only

1.2 percent

year over year on a per flight segment basis to


. The decrease in non-ticket revenue was primarily attributable to the outsourcing of the Spirit's onboard catering to a third-party provider under a revenue share agreement as well as slightly lower bag revenue per flight segment. These declines were partially offset by higher per segment convenience charges compared to the same period last year.

Cost Performance

Adjusted operating expenses for the

2.0 percent

$417.3 million

. GAAP total operating expenses

$417.6 million

. Operating expenses benefited from fuel expense


percent, or

$55.7 million

, on a fuel volume


Spirit reported

cost per available seat mile ("ASM") excluding special items and fuel (“Adjusted CASM ex-fuel”)

5.39 cent

9.0 percent

compared to the same period last year, driven primarily by lower aircraft rent per ASM and lower labor expense per ASM. The decrease in aircraft rent per ASM was driven by a change in the mix of leased (rent recorded under aircraft rent) and purchased (depreciation recorded under depreciation and amortization) aircraft. Labor expense per ASM in the third quarter 2015 was lower compared to the same period last year primarily due to scale benefits from overall growth and from larger gauge aircraft.

"Our team did a great job managing costs during the quarter and we remain on target to deliver a full year 2015 Adjusted CASM ex-fuel decrease of approximately 6 percent year over year,” said Ted Christie, Spirit's Chief Financial Officer. "We have several CASM pressures facing us in 2016, including headwinds from accelerated depreciation of heavy maintenance events and additional supplemental rent related to leased aircraft scheduled to return to lessors beginning next year; however, given our team's diligence in controlling costs, I remain confident that the trajectory of our Adjusted CASM ex-fuel will continue to be stable to declining throughout our growth cycle."

Share Repurchase

Spirit has spent approximately $99 million of its $100 million share repurchase authorization, repurchasing approximately 0.5 million shares during the third quarter 2015 and approximately 1.5 million shares year-to-date.

On October 26, 2015, our Board of Directors authorized a new repurchase program of up to $100 million in aggregate value of shares of our Common Stock, par value $0.0001 per share, from time to time in open market or privately negotiated transactions. The authorization will expire on October 26, 2016. The timing and amount of any stock repurchase is subject to prevailing market conditions and other considerations.

During the third quarter 2015, Spirit issued $576.6 million of enhanced equipment trust certificates (EETC) with a blended coupon of 4.15 percent. This was the first aircraft-backed bond publicly offered by Spirit. Proceeds from the EETC will be used to finance three new A321 aircraft scheduled for delivery in the fourth quarter 2015 and nine new A321 and three new A320 aircraft currently scheduled for delivery in 2016.

Spirit took delivery of 3 new A321 aircraft during the

, ending the

aircraft in its fleet.




Maintained its commitment to offer low fares to its valued customers; average ticket revenue per PFS for the


with total revenue per PFS of

Introduced the "Unbundlers" campaign, helping to educate travelers about the hidden costs other airlines bundle into their fares.

Launched service between the following destinations:

Baltimore - Los Angeles (7/9/15)

Kansas City - Los Angeles (7/9/15)

Atlanta - Los Angeles (8/20/15)

Atlanta - Fort Myers (9/10/15)

Conference Call/Webcast Detail

Spirit will conduct a conference call to discuss these results today,

October 27, 2015

, at 8:00 a.m. ET. A live audio webcast of the conference call will be available to the public on a listen-only basis at

. An archive of the webcast will be available under Webcasts & Presentations for 60 days.

About Spirit Airlines:

Spirit Airlines (NASDAQ: SAVE) is committed to offering the lowest total price to the places we fly, on average much lower than other airlines. Our customers start with an unbundled, stripped-down Bare Fare™ and get Frill Control™ which allows them to pay only for the options they choose - like bags, seat assignments and refreshments - the things...