Spirit Airlines, Inc. (Fort Lauderdale/Hollywood) today reported third quarter 2013 financial results.

• Adjusted net income for the third quarter 2013 increased 130.3 percent to $57.9 million1 ($0.79 per diluted share) compared to $25.2 million1 ($0.35 per diluted share) for the third quarter 2012. GAAP net income for the third quarter 2013 was $61.1 million ($0.84 per diluted share) compared to $30.9 million ($0.43 per diluted share) in the third quarter 2012.
• Spirit achieved an adjusted pre-tax margin of 20.3 percent1, the highest quarterly adjusted pre-tax margin in the Company’s history. On a GAAP basis, pre-tax margin for the third quarter 2013 was 21.4 percent.
• Spirit ended the third quarter 2013 with $540 million in unrestricted cash.
• Spirit’s return on invested capital (before taxes and excluding special items) for the last twelve months ended September 30, 2013 was 31.3 percent. See “Calculation for Return on Invested Capital” table below for more details.

“I want to say thanks to our team members that contributed to our strong third quarter results. It is becoming clear that Spirit’s customers understand that our ultra-low fares plus optional services offer them a total price that’s tough to beat,” said Ben Baldanza, Spirit’s Chief Executive Officer. “Spirit is known for doing things differently than other air carriers, and we celebrate those differences because they allow us to offer our customers the freedom to pay for only what they value while earning a return for our shareholders.”

Revenue Performance

For the third quarter 2013, Spirit’s total operating revenue was $456.6 million, an increase of 33.4 percent compared to the third quarter 2012.

Total revenue per available seat mile (“RASM”) for the third quarter 2013 was 12.55 cents, an increase of 8.9 percent compared to the third quarter 2012 as a result of higher load factors and higher average passenger yields.

Passenger flight segment (“PFS”) volume for the third quarter 2013 grew 19.9 percent year over year. Average revenue per PFS for the third quarter 2013 increased 11.3 percent year over year to $135.34 primarily driven by an increase in ticket revenue per PFS.

Cost Performance

Total operating expenses for the third quarter 2013 increased 22.6 percent year over year to $358.8 million on a capacity increase of 22.4 percent.

Spirit reported third quarter 2013 cost per available seat mile excluding special items and fuel (“Adjusted CASM ex-fuel”) of 5.86 cents, a decrease of 2.7 percent year over year, primarily driven by lower aircraft rent and other operating expense per ASM. During the second quarter 2013, the Company negotiated lease extensions at reduced rates for 14 of its A319 aircraft which was the primary driver of the decrease in aircraft rent per ASM. The decrease in other operating expense per ASM, as compared to the same period in 2012, was primarily driven by the in-sourcing of certain contract work and a decrease in software consulting costs associated with the implementation of the Company’s ERP system. Partially offsetting the benefit of these items was higher depreciation and amortization expense related to the amortization of an increased number of heavy maintenance events.

Selected Balance Sheet and Cash Flow Items

As of September 30, 2013, Spirit had $540 million in unrestricted cash and cash equivalents, no restricted cash, no debt on its balance sheet, and total shareholders’ equity of $724 million.

For the nine months ended September 30, 2013, Spirit incurred capital expenditures of $17.0 million. The Company paid $41.3 million in pre-delivery deposits for future deliveries of aircraft, net of refunds, and recorded an increase of $10.2 million in maintenance deposits, net of reimbursements.

Fleet

In the third quarter 2013, Spirit took delivery of one new A320 aircraft, ending the quarter with 51 aircraft in its fleet. The Company also took delivery of one new A320 in October 2013 and has two more new A320 aircraft scheduled for delivery by year-end 2013.

Third Quarter 2013 and Other Current Highlights

• Recently added/announced new service between (service start date):

— Dallas/Fort Worth – Phoenix Sky Harbor (10/24/13)

— Phoenix Sky Harbor – Chicago (11/7/13)2

— Phoenix Sky Harbor – Denver (11/7/13)2

— Minneapolis/St. Paul and Los Angeles (11/7/13)

— Minneapolis/St. Paul and Orlando (11/7/13)2

— Minneapolis/St. Paul and Phoenix Sky Harbor (11/7/13)2

— Minneapolis/St. Paul and Tampa (11/7/13)2

• Ratified a new five-year contract with its dispatchers which are represented by the Transport Workers Union.
• Executed an agreement with Pratt and Whitney and IAE for the provision and servicing of engines to power its fleet of A320-family aircraft.
• Elected H. McIntyre (Mac) Gardner as Chairman of the Board of Directors following the resignation of William A. Franke.
• Maintained its commitment to offer low fares to its valued customers (average ticket revenue per passenger flight segment for the third quarter 2013 was $82.84).

Copyright Photo: Eddie Maloney/AirlinersGallery.com. The first Airbus A320 with Sharklets, Airbus A320-232 WL N620NK (msn 5624) touches down in Las Vegas.

Spirit Airlines: