Spirit Airlines Reports Fourth Quarter and Full Year 2018 Results

Company Release - 2/5/2019 4:10 PM ET

MIRAMAR, Fla., Feb. 05, 2019 (GLOBE NEWSWIRE) -- Spirit Airlines, Inc. (NYSE: SAVE) today reported fourth quarter and full year 2018 financial results.

  • GAAP net income for the fourth quarter 2018 was $91.9 million ($1.34 per diluted share), or $94.7 million ($1.38 per diluted share)1 excluding special items.
     
  • GAAP net income for the full year 2018 was $155.7 million ($2.28 per diluted share), or $300.9 million ($4.40 per diluted share)1 excluding special items.
     
  • GAAP operating margin for the fourth quarter 2018 was 15.8 percent, or 16.2 percent excluding special items1.  GAAP operating margin for the full year 2018 was 10.6 percent, or 13.5 percent excluding special items1.
     
  • Spirit ended 2018 with unrestricted cash, cash equivalents, and short-term investments of $1.1 billion.

“Our robust fourth quarter profit closes out a very successful year for Spirit.  Despite cost pressures from significantly higher fuel and pilot wage rates, Spirit produced strong earnings growth for 2018, made great strides in improving our customer satisfaction metrics and delivered excellent operational performance.  As measured by the Department of Transportation, for the full year 2018, we achieved a record on-time performance of 81.1 percent and a completion factor of 99.1 percent.  Based on preliminary estimates, these results earned us the rank of fourth among the reporting marketing carriers in both these categories.  In 2018, our initiatives to drive both passenger and ancillary revenue produced healthy top-line revenue growth, and we expect them to drive additional benefit in 2019. Our revenue initiatives, together with our continued strong cost and operational performance position us well to succeed in the year ahead,” said Ted Christie, Spirit’s President and Chief Executive Officer.

Revenue Performance
For the fourth quarter 2018, Spirit's total operating revenue was $862.8 million, an increase of 29.5 percent compared to the fourth quarter 2017.  Total operating revenue per available seat mile ("TRASM") for the fourth quarter 2018 increased 11.4 percent compared to the same period last year.  During the fourth quarter 2018, the Company's results continued to benefit from its improved yield management processes, non-ticket revenue initiatives, strategic network re-orientation, and a strong operating environment.

On a per passenger flight segment basis, total revenue for the fourth quarter 2018 increased 7.3 percent year over year to $117.15 with fare revenue per passenger flight segment increasing 9.3 percent to $60.45 and non-ticket revenue per passenger flight segment increasing 5.2 percent to $56.702.

Cost Performance
For the fourth quarter 2018, total GAAP operating expenses, increased 26.4 percent year over year to $726.7 million.  Adjusted operating expenses for the fourth quarter 2018 increased 25.2 percent year over year to $723.4 million3.  These changes were primarily driven by increases in salaries, wages and benefits, fuel rates, and depreciation and amortization.

Aircraft fuel expense increased in the fourth quarter 2018 by 31.1 percent year over year, due to a 14.7 percent increase in the cost of fuel per gallon and a 14.4 percent increase in fuel gallons consumed.

Spirit reported fourth quarter 2018 cost per available seat mile ("ASM"), excluding special items and fuel (“Adjusted CASM ex-fuel”), of 5.49 cents3, an increase of 5.6 percent compared to the same period last year, primarily due to higher salaries, wages and benefits per ASM largely driven by rate increases pilots received in connection with the new collective bargaining agreement that became effective March 1, 2018.  This increase was partially offset by lower aircraft rent per ASM.

“I want to congratulate and thank our entire team for delivering industry-leading cost performance during 2018.  Despite absorbing materially higher pilot rates in connection with our new pilot agreement ratified in the first quarter 2018, our adjusted CASM ex-fuel for the full year 2018 was down 3.8 percent year over year.  We remain confident that over the next five years our relative cost performance versus our primary competitors will continue to increase, further strengthening our competitive position,” said Scott Haralson, Spirit's Chief Financial Officer.

Fleet
Spirit took delivery of seven new aircraft (five new A320ceo and two A320neo) during the fourth quarter 2018, ending the year with 128 aircraft in its fleet.

New Routes
Orlando - Aguadilla, Puerto Rico (10/04/2018)
Orlando - Guatemala City, Guatemala (10/04/2018)
Orlando - Panama City, Panama (10/04/2018)
Orlando - Santo Domingo, Dominican Republic (10/04/2018)
Orlando - San Jose, Costa Rica (10/05/2018)
Orlando - San Pedro Sula, Honduras (10/05/2018)
Orlando - San Salvador, El Salvador (10/06/2018)
Fort Lauderdale - Kansas City (11/08/2018) *
Newark - Santo Domingo (11/08/2018) *
Orlando - Bogotá, Colombia (11/08/2018)
Orlando - St. Thomas, USVI (11/08/2018)
Orlando - Medellín, Colombia (11/09/2018)
Orlando - Cartagena, Colombia (11/10/2018)
Orlando - Myrtle Beach (11/10/2018)
Philadelphia - Fort Myers (12/13/2018) *
Philadelphia - Tampa (12/14/2018) *
Cali, Colombia - Fort Lauderdale (12/20/2018)
Jacksonville - Detroit (12/20/2018)
Jacksonville - Chicago (12/20/2018)
Detroit - Montego Bay (12/20/2018)
Detroit -  West Palm Beach (12/21/2018) *

* Indicates seasonal service

Full Year 2018 Highlights

  • As measured by the Department of Transportation, achieved a record high on-time performance ranking fourth in on-time arrivals among the reportable carriers based on preliminary results.
     
  • Named "Value Airline of the Year" by Air Transport World, named the " Most Improved Airline of the Year" by the Airline Passenger Experience Association, and ranked as the country's most on-time Low-Cost airline by FlightGlobal.
     
  • Launched a major International expansion from Orlando International Airport to 12 destinations in Latin America and the Caribbean.
     
  • Launched service to the following new destinations: Columbus; Richmond; Guayaquil, Ecuador; Cap-Haïtien, Haiti; St. Croix, U.S. Virgin Islands; Greensboro; Asheville; Cali, Colombia; and Jacksonville.
     
  • Ratified a new five-year agreement with its pilots, represented by the Air Line Pilots Association.
     
  • Ratified a new five-year agreement with its dispatchers, represented by the Professional Airline Flight Control Association.

Conference Call/Webcast Detail
Spirit will conduct a conference call to discuss these results tomorrow, February 6, 2018, at 9:30 a.m. ET.  A live audio webcast of the conference call will be available to the public on a listen-only basis at http://ir.spirit.com.  An archive of the webcast will be available under Webcasts & Presentations for 60 days.

About Spirit Airlines:
Spirit Airlines (NYSE: SAVE) is committed to delivering the best value in the sky while providing an exceptional Guest experience.  We are the leader in providing customizable travel options starting with an unbundled fare.  This allows every Guest to pay only for the options they choose - like bags, seat assignments, and refreshments - something we call Á La Smarte.  We make it possible for our Guests to venture further, travel more often, and discover more than ever before.  Our Fit Fleet® is one of the youngest and most fuel-efficient in the U.S.  We operate more than 600 daily flights to 72 destinations in the U.S., Latin America, and the Caribbean, and are dedicated to giving back and improving the communities we serve.  Come save with us at www.spirit.com.  At Spirit Airlines, we go.  We go for you.

Investors are encouraged to read the Company's periodic and current reports filed with or furnished to the Securities and Exchange Commission, including its Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K, for additional information regarding the Company.

End Notes
(1) See "Reconciliation of Adjusted Net Income, Adjusted Pre-tax Income, and Adjusted Operating Income to GAAP Net Income" table below for more details.
(2) See "Calculation of Total Non-ticket Revenue per Passenger Segment" table below for more details.
(3) See "Reconciliation of Adjusted Operating Expense to GAAP Operating Expense" table below for more details.

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. 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.

 
SPIRIT AIRLINES, INC.
Condensed Statement of Operations
(unaudited, in thousands, except per-share data)
        
 Three Months Ended   Year Ended  
 December 31, Percent December 31, Percent
 2018 2017 Change 2018 2017 Change
Operating revenues:           
Passenger$846,568  $650,647  30.1  $3,260,015  $2,572,887  26.7 
Other16,227  15,535  4.5  63,019  70,665  (10.8)
Total operating revenues862,795  666,182  29.5  3,323,034  2,643,552  25.7 
            
Operating expenses:           
Aircraft fuel229,680  175,205  31.1  939,324  615,581  52.6 
Salaries, wages and benefits

191,740  136,815  40.1  719,635  527,959  36.3 
Landing fees and other rents51,903  46,117  12.5  214,677  180,655  18.8 
Aircraft rent43,023  42,820  0.5  177,641  205,852  (13.7)
Depreciation and amortization47,963  36,472  31.5  176,727  140,152  26.1 
Distribution33,505  28,170  18.9  137,001  113,472  20.7 
Maintenance, materials and repairs29,937  28,966  3.4  129,078  110,439  16.9 
Special charges265    nm  88,921  12,629  nm 
Loss on disposal of assets3,019  1,054  nm  9,580  4,168  nm 
Other operating95,695  79,267  20.7  379,536  347,820  9.1 
Total operating expenses726,730  574,886  26.4  2,972,120  2,258,727  31.6 
            
Operating income136,065  91,296  49.0  350,914  384,825  (8.8)
            
Other (income) expense:           
Interest expense23,505  16,065  46.3  83,777  57,302  46.2 
Capitalized interest(2,636) (3,668) (28.1) (9,841) (13,793) (28.7)
Interest income(5,835) (2,990) 95.2  (19,107) (8,736) 118.7 
Other expense129  145  nm  752  366  nm 
Special charges, non-operating    nm  90,357    nm 
Total other (income) expense15,163  9,552  58.7  145,938  35,139  315.3 
            
            
Income before income taxes120,902  81,744  47.9  204,976  349,686  (41.4)
Provision (benefit) for income taxes28,965  (165,231) (117.5) 49,227  (65,836) (174.8)
            
Net income$91,937  $246,975  (62.8) $155,749  $415,522  (62.5)
Basic earnings per share$1.35  $3.59  (62.4) $2.28  $6.00  (62.0)
Diluted earnings per share$1.34  $3.58  (62.6) $2.28  $5.99  (61.9)
            
Weighted average shares, basic68,267  68,799  (0.8) 68,249  69,221  (1.4)
Weighted average shares, diluted68,687  68,901  (0.3) 68,431  69,377  (1.4)

Prior period amounts have been reclassified to reflect the adoption of ASU No. 2014-09, " Revenue from Contracts with Customers," completed in the first quarter of 2018.


 
SPIRIT AIRLINES, INC.
Condensed Statements of Comprehensive Income (Loss)
(unaudited, in thousands)
    
 Three Months Ended Year Ended
 December 31, December 31,
 2018 2017 2018 2017
Net income$91,937  $246,975  $155,749  $415,522 
Unrealized gain (loss) on short-term investment securities, net of deferred taxes of $22, ($34), $44 and ($41)(40) (71) 30  (82)
Interest rate derivative loss reclassified into earnings, net of taxes of $9, $279, $75 and $372

68  (196) 241  (37)
Other comprehensive income (loss)$28  $(267) $271  $(119)
Comprehensive income$91,965  $246,708  $156,020  $415,403 

Prior period amounts have been reclassified to reflect the adoption of ASU No. 2014-09, " Revenue from Contracts with Customers," completed in the first quarter of 2018.


 
SPIRIT AIRLINES, INC.
Condensed Balance Sheets
(unaudited, in thousands)
 
 December 31, December 31,
 2018 2017
Assets   
Current assets:   
Cash and cash equivalents$1,004,733  $800,849 
Short-term investment securities102,789  100,937 
Accounts receivable, net47,660  49,323 
Aircraft maintenance deposits, net106,901  175,615 
Income tax receivable  69,844 
Prepaid expenses and other current assets83,383  85,542 
Total current assets1,345,466  1,282,110 
    
Property and equipment:   
Flight equipment3,257,215  2,291,110 
Ground property and equipment191,661  155,166 
Less accumulated depreciation(332,864) (207,808)
 3,116,012  2,238,468 
Pre-delivery deposits on flight equipment236,775  253,687 
Long-term aircraft maintenance deposits138,738  150,617 
Deferred heavy maintenance, net249,010  99,915 
Other long-term assets79,456  121,003 
Total assets$5,165,457  $4,145,800 
    
Liabilities and shareholders’ equity   
Current liabilities:   
Accounts payable$39,320  $22,822 
Air traffic liability291,981  263,711 
Current maturities of long-term debt and capital leases163,557  115,430 
Other current liabilities339,677  262,370 
Total current liabilities834,535  664,333 
    
Long-term debt and capital leases, less current maturities2,024,774  1,387,498 
Deferred income taxes355,141  308,814 
Deferred gains and other long-term liabilities22,503  22,581 
Shareholders’ equity:   
Common stock7  7 
Additional paid-in-capital371,225  360,153 
Treasury stock, at cost(67,016) (65,854)
Retained earnings1,625,481  1,469,732 
Accumulated other comprehensive income (loss)(1,193) (1,464)
Total shareholders’ equity1,928,504  1,762,574 
Total liabilities and shareholders’ equity$5,165,457  $4,145,800 

Prior period amounts have been reclassified to reflect the adoption of ASU No. 2014-09, " Revenue from Contracts with Customers," completed in the first quarter of 2018.


 
SPIRIT AIRLINES, INC.
Condensed Statement of Cash Flows
  (unaudited, in thousands)
 
 Year Ended December 31,
 2018 2017
Operating activities:   
Net income$155,749  $415,522 
Adjustments to reconcile net income to net cash provided by operations:   
Losses reclassified from other comprehensive income315  335 
Stock-based compensation11,021  8,522 
Allowance for doubtful accounts (recoveries)(11) (53)
Amortization of deferred gains and losses and debt issuance costs8,819  7,944 
Depreciation and amortization176,727  140,152 
Deferred income tax expense (benefit)46,303  (492)
Loss on disposal of assets9,580  4,168 
Lease termination costs  12,629 
Special charges, non-operating90,357   
    
Changes in operating assets and liabilities:   
Accounts receivable1,674  (8,134)
Aircraft maintenance deposits, net14,019  (37,930)
Long-term deposits and other assets(4,803) (50,951)
Deferred heavy maintenance, net(190,381) (78,237)
Income tax receivable69,844  (69,844)
Accounts payable15,317  6,030 
Air traffic liability28,270  43,527 
Other liabilities74,038  31,672 
Other(375) 380 
Net cash provided by operating activities506,463  425,240 
Investing activities:   
Purchase of available-for-sale investment securities(124,430) (107,246)
Proceeds from the maturity of available-for-sale investment securities122,947  105,906 
Proceeds from sale of property and equipment11,400   
Pre-delivery deposits on flight equipment, net of refunds(177,424) (149,477)
Capitalized interest(8,729) (12,305)
Assets constructed for others(501)  
Purchase of property and equipment(606,971) (628,881)
Net cash used in investing activities(783,708) (792,003)
Financing activities:   
Proceeds from issuance of long-term debt832,099  629,725 
Proceeds from stock options exercised51  45 
Payments on debt obligations(137,275) (102,313)
Payments on capital lease obligations(205,720) (425)
Reimbursement for assets under construction for others501   
Repurchase of common stock(1,162) (46,580)
Debt issuance costs(7,365) (13,740)
Net cash provided by financing activities481,129  466,712 
Net (decrease) increase in cash and cash equivalents203,884  99,949 
Cash and cash equivalents at beginning of period800,849  700,900 
Cash and cash equivalents at end of period$1,004,733  $800,849 
Supplemental disclosures   
Cash payments for:   
Interest, net of capitalized interest$65,123  $37,902 
Income taxes paid, net of refunds$(73,489) $5,826 
Non-cash transactions:   
Capital expenditures funded by capital lease borrowings$(987) $(1,370)

Prior period amounts have been reclassified to reflect the adoption of ASU No. 2014-09, " Revenue from Contracts with Customers," completed in the first quarter of 2018.

SPIRIT AIRLINES, INC.
Selected Operating Statistics
(unaudited)
 
 Three Months Ended December 31,  
Operating Statistics2018 2017 Change
Available seat miles (ASMs) (thousands)8,998,928  7,741,030  16.2%
Revenue passenger miles (RPMs) (thousands)7,606,962  6,319,924  20.4%
Load factor (%)84.5  81.6  2.9pts
Passenger flight segments (thousands)7,365  6,100  20.7%
Block hours130,309  112,695  15.6%
Departures48,073  41,957  14.6%
Total operating revenue per ASM (TRASM) (cents)9.59  8.61  11.4%
Average yield (cents)11.34  10.54  7.6%
Fare revenue per passenger flight segment ($)60.45  55.30  9.3%
Non-ticket revenue per passenger flight segment ($)56.70  53.91  5.2%
Total revenue per passenger flight segment ($)117.15  109.21  7.3%
CASM (cents)8.08  7.43  8.7%
Adjusted CASM (cents) (1)8.04  7.47  7.6%
Adjusted CASM ex-fuel (cents) (2)5.49  5.20  5.6%
Fuel gallons consumed (thousands)101,595  88,838  14.4%
Average economic fuel cost per gallon ($)2.26  1.97  14.7%
Aircraft at end of period128  112  14.3%
Average daily aircraft utilization (hours)11.5  11.3  1.8%
Average stage length (miles)1,019  1,023  (0.4)%


      
 Year Ended December 31,  
Operating Statistics2018 2017 Change
Available seat miles (ASMs) (thousands)36,502,982  29,592,819  23.4%
Revenue passenger miles (RPMs) (thousands)30,623,379  24,605,512  24.5%
Load factor (%)83.9  83.1  0.8pts
Passenger flight segments (thousands)29,312  24,183  21.2%
Block hours526,343  438,728  20.0%
Departures192,845  165,449  16.6%
Total operating revenue per ASM (TRASM) (cents)9.10  8.93  1.9%
Average yield (cents)10.85  10.74  1.0%
Fare revenue per passenger flight segment ($)58.14  56.38  3.1%
Non-ticket revenue per passenger flight segment ($)55.23  52.94  4.3%
Total revenue per passenger flight segment ($)113.37  109.32  3.7%
CASM (cents)8.14  7.63  6.7%
Adjusted CASM (cents) (1)7.87  7.59  3.7%
Adjusted CASM ex-fuel (cents) (2)5.30  5.51  (3.8)%
Fuel gallons consumed (thousands)412,256  343,709  19.9%
Average economic fuel cost per gallon ($)2.28  1.79  27.4%
Average daily aircraft utilization (hours)12.1  11.6  4.3%
Average stage length (miles)1,032  999  3.3%
  1. Excludes operating special items.
  2. Excludes economic fuel expense and operating special items.

The Company is providing a reconciliation of GAAP financial information to non-GAAP financial information as it believes that non-GAAP financial measures provide management and investors the ability to measure the performance of the Company on a consistent basis.  These non-GAAP financial measures have limitations as analytical tools.  Because of these limitations, determinations of the Company's operating performance excluding unrealized gains and losses or special items should not be considered in isolation or as a substitute for performance measures calculated in accordance with GAAP.

Calculation of Total Non-Ticket Revenue per Passenger Segment
(unaudited)

 Three Months Ended December 31, Year Ended December 31,
(in thousands, except per segment data)2018 2017 2018 2017
Operating revenues       
Fare$445,203  $337,324  $1,704,107  $1,363,395 
Non-fare401,365  313,323  1,555,908  1,209,492 
Total passenger revenues846,568  650,647  3,260,015  2,572,887 
Other revenues16,227  15,535  63,019  70,665 
Total operating revenues$862,795  $666,182  $3,323,034  $2,643,552 
        
Non-ticket revenues (1)$417,592  $328,858  $1,618,927  $1,280,157 
        
Passenger segments7,365  6,100  29,312  24,183 
        
Non-ticket revenue per passenger segment ($)$56.70  $53.91  $55.23  $52.94 

(1)    Non-ticket revenues equals the sum of non-fare passenger revenues and other revenues.

Special Items
(unaudited)

 Three Months Ended Year Ended
 December 31, December 31,
(in thousands)2018 2017 2018 2017
Operating special items include the following:       
Supplemental rent credit (1)  (4,086)   (4,086)
Loss on disposal of assets3,019  1,054  9,580  4,168 
Operating special charges (2)265    88,921  12,629 
Total operating special items$3,284  $(3,032) $98,501  $12,711 
Non-operating special items include the following:       
Non-operating special charges (3)    90,357  $ 
Total non-operating special items$  $  $90,357  $ 
        
Total special items$3,284  $(3,032) $188,858  $12,711 
  1. Supplemental rent adjustment for liability accrued in prior years related to certain maintenance reserves and return conditions that are no longer probable.
  2. Operating special charges for the full year 2018 include amounts primarily related to a one-time ratification incentive recognized in connection with a new pilot agreement approved in the first quarter 2018.  Operating special charges for 2017 are related to engine and aircraft lease termination costs.
  3. Non-operating special charges in 2018 are related to the purchase of 14 A319 aircraft, previously operated by the Company under operating leases.  Upon execution of the purchase agreement, the lease agreements associated with these aircraft were classified as capital leases on the balance sheet at lower of cost or fair value.  The difference between the resulting capital lease obligation and the purchase price was accreted as interest expense in special charges, non-operating in the statement of operations, through the closing of each individual purchase.  All of the transactions were completed prior to June 30, 2018.

Reconciliation of Adjusted Operating Expense to GAAP Operating Expense
(unaudited)

 Three Months Ended Year Ended
 December 31, December 31,
(in thousands, except CASM data in cents)2018 2017 2018 2017
Total operating expenses, as reported$726,730  $574,886  $2,972,120  $2,258,727 
Less operating special items3,284  (3,032) 98,501  12,711 
Adjusted operating expenses, non-GAAP (1)723,446  577,918  2,873,619  2,246,016 
Less: Economic fuel expense229,680  175,205  939,324  615,581 
Adjusted operating expenses excluding fuel, non-GAAP (2)$493,766  $402,713  $1,934,295  $1,630,435 
        
Available seat miles8,998,928  7,741,030  36,502,982  29,592,819 
        
CASM (cents)8.08  7.43  8.14  7.63 
Adjusted CASM (cents) (1)8.04  7.47  7.87  7.59 
Adjusted CASM ex-fuel (cents) (2)5.49  5.20  5.30  5.51 
  1. Excludes operating special items.
  2. Excludes operating special items and economic fuel expense.

Reconciliation of Adjusted Net Income, Adjusted Pre-Tax Income, and Adjusted Operating Income to GAAP Net Income
(unaudited)

 Three Months Ended Year Ended
 December 31, December 31,
(in thousands, except per share data) 2018  2017  2018  2017
Net income, as reported$91,937  $246,975  $155,749  $415,522 
Add: Provision (benefit) for income taxes (1) 28,965   (165,231)  49,227   (65,836)
Income (loss) before income taxes, as reported 120,902   81,744   204,976   349,686 
Pre-tax margin 14.0%  12.3%  6.2%  13.2%
Add special items (2)$3,284  $(3,032) $188,858  $12,711 
Adjusted income before income taxes, non-GAAP (3) 124,186   78,712   393,834   362,397 
Adjusted pre-tax margin, non-GAAP (3) 14.4%  11.8%  11.9%  13.7%
Add:  Total other (income) expense (4) 15,163   9,552   55,581   35,139 
Adjusted operating income, non-GAAP (5) 139,349   88,264   449,415   397,536 
Adjusted operating margin, non-GAAP (5) 16.2%  13.2%  13.5%  15.0%
        
Provision for income taxes 29,494   29,123   92,920   134,379 
Adjusted net income, non-GAAP (3)$94,692  $49,589  $300,914  $228,018 
        
Weighted average shares, diluted 68,687   68,901   68,431   69,377 
        
Adjusted net income per share, diluted (3)$ 1.38  $ 0.72  $ 4.40  $ 3.29 
        
Total operating revenues$862,795  $666,182  $3,323,034  $2,643,552 
  1. During the fourth quarter of 2017, the Company recorded a non-recurring income tax benefit of $196.7 million due to the enactment of the Tax Cuts and Jobs Act of 2017.
  2. See "Special Items" for more details.
  3. Excludes operating and non-operating special items.
  4. Excludes non-operating special items.
  5. Excludes operating special items.

Investor Relations Contact:
DeAnne Gabel
Investorrelations@spirit.com
(954) 447-7920

Media Contact:
Stephen Schuler
Stephen.schuler@spirit.com
(954) 364-0231

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Source: Spirit Airlines, Inc.