
Spirit Airlines (Fort Lauderdale/Hollywood) issued the following financial report:
Spirit Airlines, Inc. reported first quarter 2013 financial results.
- Adjusted net income for the first quarter 2013 was $32.8 million, or $0.45 per diluted share1. GAAP net income was $30.6 million, or $0.42 per diluted share.
- For the first quarter 2013, Spirit achieved an operating margin, excluding special items, of 14.4 percent1. Operating margin on a GAAP basis was 13.4 percent for the first quarter 2013.
- Spirit ended the first quarter 2013 with $483.5 million in unrestricted cash.
- Spirit grew total available seat miles (“ASMs”) 20.8 percent as compared to the first quarter 2012.
- Spirit’s return on invested capital (before taxes and excluding special items) for the last twelve months ended March 31, 2013 was 28.0 percent. See “Calculation for Return on Invested Capital” table below for more details.
Revenue Performance
For the first quarter 2013, Spirit’s total operating revenue was $370.4 million, an increase of 22.9 percent, compared to first quarter 2012.
Total revenue per available seat mile (“RASM”) for the first quarter 2013 was 11.85 cents, an increase of 1.7 percent compared to the first quarter 2012 driven by strength in operating yields. The calendar shift of Easter occurring in March this year compared to April in 2012 contributed to the strong first quarter 2013 results.
Passenger flight segment (“PFS”) volume grew 17.8 percent year-over-year in the first quarter 2013. Average non-ticket revenue per PFS for the first quarter 2013 increased 5.9 percent year-over-year to $54.75 and average ticket revenue per PFS for the quarter increased 3.2 percent year-over-year to $79.09. The growth in non-ticket revenue per PFS during the first quarter 2013 was primarily driven by the introduction of advance purchase restrictions on bags as well as other various changes in our pricing structure for optional services.
Cost Performance
Total operating expenses in the first quarter 2013 increased 21.4 percent year-over-year to $320.8 million on a capacity increase of 20.8 percent.
Cost per available seat mile excluding special items and fuel (“Adjusted CASM ex-fuel”) for the first quarter 2013 was 6.04 cents, up 0.8 percent year-over-year. The increase in Adjusted CASM ex-fuel was primarily driven by depreciation and amortization expense related to amortization of heavy maintenance events. Due to an increased number of severe winter storms during the quarter, the Company experienced a higher number of weather-related flight cancellations compared to the same period last year. The CASM pressure associated with the resulting decrease in ASMs as well as other weather-related expenses such as higher deicing expense, also contributed to the increase in Adjusted CASM ex-fuel. The impact of these items was partially offset by efficiency benefits resulting in lower labor expense per ASM, lower distribution expense per ASM, and an increase in average stage length.
Selected Balance Sheet and Cash Flow Items
As of March 31, 2013, Spirit had $483.5 million in unrestricted cash and cash equivalents, no restricted cash, no debt on its balance sheet, and total shareholders’ equity of $614.8 million.
During the first quarter 2013, Spirit incurred capital expenditures of $10.6 million, which includes the purchase of a spare engine that was financed under a sale leaseback transaction after it was delivered. The Company paid $15.1 million in pre-delivery deposits (“PDPs”) for future deliveries of aircraft, and paid $6.8 million in maintenance reserves, net of reimbursements.
Fleet
In the first quarter 2013, Spirit took delivery of two used A319 aircraft and two new A320 aircraft, ending the quarter with 49 aircraft in its fleet.ย Spirit’s March A320 aircraft delivery was the carrier’s first aircraft to be delivered with sharklets.ย The Company has five additional new A320 aircraft with sharklets scheduled for delivery in 2013.
The carrier is expanding quickly. On April 25ย started service on nine new nonstop routes and also resumed summer seasonal service on a variety of our customers’ favorite routes.
Nine New Spirit Airlines Nonstop Routes Starting April 25, 2013:
- Dallas/Fort Worth (DFW) – Cancun, Mexico (CUN)
- Dallas/Fort Worth (DFW) – Los Angeles (LAX)
- Dallas/Fort Worth (DFW) – Oakland/San Francisco (OAK)
- Philadelphia (PHL) – Las Vegas (LAS)
- Philadelphia (PHL) – Myrtle Beach (MYR)
- Baltimore/Washington (BWI) – Myrtle Beach (MYR)
- Baltimore/Washington (BWI) – Las Vegas (LAS)
- Houston (IAH) – Los Angeles (LAX)
- Denver (DEN) – Minneapolis/St. Paul (MSP)
In addition, Spirit resumes the following summer seasonal routes:
- Atlantic City (ACY) – Detroit (DTW)
- Atlantic City (ACY) – Chicago O’Hare (ORD)
- Atlantic City (ACY) – Atlanta (ATL)
- Atlantic City (ACY) – Boston (BOS)
- Dallas/Fort Worth (DFW) – Myrtle Beach (MYR)
- Dallas/Fort Worth (DFW) – Portland, Oregon (PDX)
- Dallas/Fort Worth (DFW) – Boston (BOS)
- Boston (BOS) – Chicago O’Hare (ORD)
- Detroit (DTW) – Los Angeles (LAX)
- Orlando (MCO) – San Juan, Puerto Rico (SJU)
- Fort Lauderdale (FLL) – Punta Cana, Dominican Republic (PUJ)
- Fort Lauderdale (FLL) – Kingston, Jamaica (KIN) – starts May 9, 2013
The following new nonstop routes start in June:
- Houston (IAH) – Denver (DEN) – starts June 13
- Houston (IAH) – Detroit (DTW) – starts June 13
- Dallas/Fort Worth (DFW) – Los Cabos, Mexico (SJD) – starts June 13
- Dallas/Fort Worth (DFW) – Latrobe/Pittsburgh (LBE) – starts June 14
Copyright Photo: Bruce Drum.ย Airbus A319-132 N506NK (msn 2490) taxies to runway 9L at Fort Lauderdale-Hollywood International Airport.
Spirit Airlines:ย 
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