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Spirit Airlines Reports Fourth Quarter and Full Year 2016 Results

Feb 7, 2017

MIRAMAR, Fla., Feb. 07, 2017 (GLOBE NEWSWIRE) -- Spirit Airlines, Inc. (NASDAQ:SAVE) today reported fourth quarter and full year 2016 financial results.

  • GAAP net income for the fourth quarter 2016 was $48.5 million ($0.70 per diluted share), or $53.9 million ($0.77 per diluted share)1, excluding special items.
     
  • GAAP net income for the full year 2016 was $264.9 million ($3.76 per diluted share), or $291.0 million ($4.13 per diluted share)1, excluding special items.
     
  • Spirit ended 2016 with unrestricted cash, cash equivalents, and short-term investments of $801.1 million.
     
  • Spirit's return on invested capital (before taxes and excluding special items) for the twelve months ended December 31, 2016 was 23.0 percent2.

"Throughout 2016, we made solid progress towards our goal of consistent reliability.  We improved our on-time performance3 by 5.2 percentage points and we made great progress in lowering the number of complaints reported to the Department of Transportation.  We started the year with a complaint ratio of over 11 per 100,000 customers and by year-end we were under 4 per 100,000 customers.  We also maintained our focus on controlling costs, which together with our own revenue initiatives, and an improved industry pricing environment, helped us to achieve a full year 2016 operating margin of 19.1 percent, or 20.9 percent4, excluding special items," said Bob Fornaro, Spirit's President and Chief Executive Officer.  "I thank the entire Spirit team for their efforts and dedication to improve our operations and for delivering solid financial results."

Revenue Performance
For the fourth quarter 2016, Spirit's total operating revenue was $578.4 million, an increase of 11.3 percent compared to the fourth quarter 2015, driven by a 12.9 percent increase in flight volume.

Total revenue per available seat mile (TRASM) for the fourth quarter 2016 decreased 3.6 percent compared to the same period last year, driven by a 1.9 percent decrease in operating yields and a 1.5 point decrease in load factor.

On a per passenger flight segment ("PFS") basis, total revenue for the fourth quarter 2016 decreased 3.3 percent year over year to $108.11, driven by modest declines in both ticket and non-ticket revenue per PFS.

Cost Performance
For the fourth quarter 2016, total GAAP operating expense, including special items of $8.6 million5 primarily related to lease termination charges, increased 23.4 percent, or $93.5 million, year over year to $493.0 million.  Adjusted operating expense for the fourth quarter 2016 increased 20.7 percent, or $83.2 million to $484.4 million6.  The increase in both GAAP and adjusted operating expense was primarily driven by an increase in flight volume.

Aircraft fuel expense increased in the fourth quarter 2016 by 20.3 percent, or $21.3 million, compared to the same period last year, primarily due to a 14.0 percent increase in fuel gallons consumed.

Spirit reported fourth quarter 2016 cost per available seat mile, excluding special items and fuel ("Adjusted CASM ex-fuel"), of 5.44 cents6, an increase of 5.6 percent compared to the same period last year, driven primarily by higher other operating expenses and salaries, wages, and benefits per ASM, partially offset by lower aircraft rent per ASM.

"For the full year 2016, our adjusted CASM ex-fuel decreased 0.9 percent6 year over year.  I applaud our team members for their continued efforts to improve our cost structure," said Ted Christie, Spirit's Executive Vice President and Chief Financial Officer.  "Our low cost structure is the backbone of our competitive advantage and we remain dedicated to maintaining our cost discipline."

Labor
Spirit and its pilots, represented by the Airline Pilots Association, remain in open contract negotiations under the supervision of the National Mediation Board.

Fleet
Spirit took delivery of five new A320neo and one new A321ceo aircraft during the fourth quarter 2016.

Full Year 2016 Highlights

  • Added Seattle, Washington; Akron-Canton, Ohio; Newark, New Jersey; and Havana, Cuba to its list of destinations.
  • Added 16 (3 A320ceos, 5 A320neos, and 8 A321ceos) new Airbus aircraft to its fleet, ending the year with 95 aircraft.  As of year-end 2016, Spirit's Fit Fleet™ averaged 5.2 years, the youngest fleet of any major U.S. airline.
  • Returned approximately $100 million to shareholders by repurchasing approximately 2.3 million shares.
  • Ratified agreements with its flight attendants, represented by the Association of Flight Attendants - CWA, and with its ramp service team members at Fort Lauderdale Hollywood International Airport, represented by the International Association of Machinists and Aerospace Workers.
  • Created over 850 new jobs, bringing our total number of team members to over 5,800.

Conference Call/Webcast Detail
Spirit will conduct a conference call to discuss these results today, February 7, 2017, at 9:00 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 (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 other airlines bake right into their ticket prices. We help people save money and travel more often, create new jobs and stimulate business growth in the communities we serve. With our Fit Fleet™, the youngest fleet of any major U.S. airline, we operate more than 420 daily flights to 59 destinations in the U.S., Latin America and the Caribbean. Come save with us at www.spirit.com

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 to GAAP Net Income" table below for more details.
(2)  See "Calculation for Return on Invested Capital" table below for more details.
(3)  As defined by the Department of Transportation.
(4) See "Reconciliation of Adjusted Operating Income to GAAP Operating Income" table below for more details.
(5)  See "Special Items" table for more details.
(6)  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.
Statement of Operations
(unaudited, in thousands, except per share data)
               
  Three Months Ended       Year Ended    
  December 31,   Percent   December 31,   Percent
  2016   2015   Change   2016   2015   Change
Operating revenues:                      
Passenger $ 300,590     $ 267,487     12.4     $ 1,200,621     $ 1,169,338     2.7  
Non-ticket 277,761     252,359     10.1     1,121,335     972,125     15.3  
Total operating revenues 578,351     519,846     11.3     2,321,956     2,141,463     8.4  
                       
Operating expenses:                      
Salaries, wages and benefits 122,941     97,035     26.7     472,471     377,508     25.2  
Aircraft fuel 126,535     105,215     20.3     447,553     461,447     (3.0 )
Aircraft rent 50,242     52,091     (3.5 )   201,675     211,531     (4.7 )
Landing fees and other rents 37,583     32,590     15.3     151,679     131,077     15.7  
Depreciation and amortization 27,766     22,278     24.6     101,136     73,908     36.8  
Maintenance, materials and repairs 26,577     18,544     43.3     98,587     80,448     22.5  
Distribution 23,437     20,656     13.5     96,627     86,576     11.6  
Special charges 5,580         nm     37,189     673     nm  
Loss on disposal of assets 3,021     304     nm     4,187     1,604     nm  
Other operating 69,358     50,796     36.5     267,191     207,569     28.7  
Total operating expenses 493,040     399,509     23.4     1,878,295     1,632,341     15.1  
                           
Operating income 85,311     120,337     (29.1 )   443,661     509,122     (12.9 )
                           
Other (income) expense:                          
Interest expense 12,066     7,200     67.6     41,654     20,382     nm  
Capitalized interest (3,542 )   (3,161 )   12.1     (12,705 )   (11,553 )   10.0  
Interest income (1,041 )   (1,581 )   (34.2 )   (5,276 )   (2,125 )   nm  
Other expense 121     (267 )   nm     528     15     nm  
Total other (income) expense 7,604     2,191     nm     24,201     6,719     nm  
                           
Income before income taxes 77,707     118,146     (34.2 )   419,460     502,403     (16.5 )
Provision for income taxes 29,214     43,746     (33.2 )   154,581     185,183     (16.5 )
Net income $ 48,493     $ 74,400     (34.8 )   $ 264,879     $ 317,220     (16.5 )
Basic earnings per share $ 0.70     $ 1.04     (32.7 )   $ 3.77     $ 4.39     (14.1 )
Diluted earnings per share $ 0.70     $ 1.04     (32.7 )   $ 3.76     $ 4.38     (14.2 )
                       
Weighted average shares, basic 69,325     71,543     (3.1 )   70,344     72,208     (2.6 )
Weighted average shares, diluted 69,551     71,672     (3.0 )   70,508     72,426     (2.6 )
                                   

Note: Certain prior period amounts have been reclassified to conform to the current presentation.

 
SPIRIT AIRLINES, INC.
Statements of Comprehensive Income
(unaudited, in thousands)
       
  Three Months Ended   Year Ended
  December 31,   December 31,
  2016   2015   2016   2015
Net income $ 48,493     $ 74,400     $ 264,879     $ 317,220  
Unrealized gain (loss) on interest rate derivative instruments, net of deferred taxes of $0, $0, $0 and ($550)             (910 )
Unrealized gain (loss) on short-term investment securities, net of deferred taxes of ($16), $0, ($13) and $0 (27 )       (23 )    
Interest rate derivative losses reclassified into earnings, net of taxes of $33, $34, $130 and $50 55     58     224     82  
Other comprehensive income (loss) $ 28     $ 58     $ 201     $ (828 )
Comprehensive income $ 48,521     $ 74,458     $ 265,080     $ 316,392  

 

SPIRIT AIRLINES, INC.
Balance Sheets
(unaudited, in thousands)
 
  December 31,   December 31,
  2016   2015
Assets      
Current assets:      
Cash and cash equivalents $ 700,900     $ 803,632  
Short-term investment securities 100,155      
Accounts receivable, net 41,136     28,266  
Aircraft maintenance deposits 87,035     73,415  
Prepaid income taxes     72,278  
Prepaid expenses and other current assets 46,619     48,749  
Total current assets 975,845     1,026,340  
       
Property and equipment:      
Flight equipment 1,461,525     834,927  
Ground property and equipment 126,206     74,814  
Less accumulated depreciation (122,509 )   (65,524 )
  1,465,222     844,217  
Deposits on flight equipment purchase contracts 325,688     286,837  
Long-term aircraft maintenance deposits 199,415     206,485  
Deferred heavy maintenance, net 75,534     89,127  
Other long-term assets 110,223     77,539  
Total assets $ 3,151,927     $ 2,530,545  
       
Liabilities and shareholders' equity      
Current liabilities:      
Accounts payable 15,193     17,043  
Air traffic liability 206,392     216,831  
Current maturities of long-term debt 84,354     49,637  
Other current liabilities 226,011     182,729  
Total current liabilities 531,950     466,240  
       
Long-term debt, less current maturities 897,359     596,693  
Long-term deferred income taxes 308,143     221,481  
Deferred gains and other long-term liabilities 19,868     20,821  
Shareholders' equity:      
Common stock 7     7  
Additional paid-in-capital 551,004     544,277  
Treasury stock, at cost (218,692 )   (116,182 )
Retained earnings 1,063,633     798,754  
Accumulated other comprehensive loss (1,345 )   (1,546 )
Total shareholders' equity 1,394,607     1,225,310  
Total liabilities and shareholders' equity $ 3,151,927     $ 2,530,545  

 

SPIRIT AIRLINES, INC.
Statement of Cash Flows
(unaudited, in thousands)
   
  Year Ended December 31,
  2016   2015
Operating activities:      
Net income $ 264,879     $ 317,220  
Adjustments to reconcile net income to net cash provided by operations:      
Unrealized losses on open derivative contracts, net     2,202  
Losses reclassified from other comprehensive income 354     132  
Equity-based compensation 7,105     9,222  
Allowance for doubtful accounts (recoveries) 80     12  
Amortization of deferred gains and losses and debt issuance costs 5,732     1,165  
Depreciation and amortization 101,136     73,908  
Deferred income tax expense 86,545     155,614  
Loss on disposal of assets 4,187     1,604  
Lease termination costs 37,189      
Changes in operating assets and liabilities:      
Accounts receivable (12,951 )   (5,592 )
Aircraft maintenance deposits (45,869 )   (32,101 )
Long-term deposits and other assets (75,780 )   (103,613 )
Prepaid income taxes 72,278      
Accounts payable (6,823 )   2,706  
Air traffic liability (11,582 )   36,387  
Other liabilities 46,992     14,119  
Other 206      
Net cash provided by operating activities 473,678     472,985  
Investing activities:      
Purchase of short-term investment securities (103,258 )    
Proceeds from the maturity of short-term investment securities 2,842      
Proceeds from sale of property and equipment 50      
Pre-delivery deposits for flight equipment, net of refunds (173,947 )   (142,323 )
Capitalized interest (10,834 )   (10,159 )
Purchase of property and equipment (541,122 )   (548,800 )
Net cash used in investing activities (826,269 )   (701,282 )
Financing activities:      
Proceeds from issuance of long-term debt 417,275     536,780  
Proceeds from stock options exercised 92     32  
Payments on debt and capital lease obligations (64,421 )   (26,364 )
Proceeds from sale leaseback transactions     7,300  
Excess tax (deficiency) benefit from equity-based compensation (470 )   8,850  
Repurchase of common stock (102,510 )   (112,261 )
Debt issuance costs (107 )   (15,192 )
Net cash provided by financing activities 249,859     399,145  
Net (decrease) increase in cash and cash equivalents (102,732 )   170,848  
Cash and cash equivalents at beginning of period 803,632     632,784  
Cash and cash equivalents at end of period $ 700,900     $ 803,632  
Supplemental disclosures      
Cash payments for:      
Interest, net of capitalized interest $ 39,963     $ 7,061  
Income taxes paid, net of refunds $ (5,579 )   $ 95,933  
Non-cash transactions:      
Capital expenditures funded by capital lease borrowings $ (31 )   $  

 

SPIRIT AIRLINES, INC.
Selected Operating Statistics (unaudited)
       
  Three Months Ended December 31,    
Operating Statistics 2016   2015   Change
Available seat miles (ASMs) (thousands) 6,585,018     5,705,398     15.4 %
Revenue passenger miles (RPMs) (thousands) 5,362,518     4,727,996     13.4 %
Load factor (%) 81.4     82.9     (1.5 ) pts
Passenger flight segments (thousands) 5,350     4,651     15.0 %
Block hours 99,385     89,016     11.6 %
Departures 38,019     33,662     12.9 %
Total operating revenue per ASM (TRASM) (cents) 8.78     9.11     (3.6 )%
Average yield (cents) 10.79     11.00     (1.9 )%
Average ticket revenue per passenger flight segment ($) 56.19     57.52     (2.3 )%
Average non-ticket revenue per passenger flight segment ($) 51.92     54.26     (4.3 )%
Total revenue per passenger flight segment ($) 108.11     111.78     (3.3 )%
CASM (cents) 7.49     7.00     7.0 %
Adjusted CASM (cents) (1) 7.36     7.03     4.7 %
Adjusted CASM ex-fuel (cents) (2) 5.44     5.15     5.6 %
Fuel gallons consumed (thousands) 76,930     67,467     14.0 %
Average economic fuel cost per gallon ($) 1.64     1.59     3.1 %
Aircraft at end of period 95     79     20.3 %
Average daily aircraft utilization (hours) 11.7     12.5     (6.4 )%
Average stage length (miles) 981     1,000     (1.9 )%

 

  Year Ended December 31,    
Operating Statistics 2016   2015   Change
Available seat miles (ASMs) (thousands) 25,494,645     21,246,156     20.0 %
Revenue passenger miles (RPMs) (thousands) 21,581,611     17,995,311     19.9 %
Load factor (%) 84.7     84.7      
Passenger flight segments (thousands) 21,618     17,921     20.6 %
Block hours 389,914     337,956     15.4 %
Departures 149,514     128,902     16.0 %
Total operating revenue per ASM (TRASM) (cents) 9.11     10.08     (9.6 )%
Average yield (cents) 10.76     11.90     (9.6 )%
Average ticket revenue per passenger flight segment ($) 55.54     65.25     (14.9 )%
Average non-ticket revenue per passenger flight segment ($) 51.87     54.24     (4.4 )%
Total revenue per passenger flight segment ($) 107.41     119.49     (10.1 )%
CASM (cents) 7.37     7.68     (4.0 )%
Adjusted CASM (cents) (1) 7.21     7.69     (6.2 )%
Adjusted CASM ex-fuel (cents) (2) 5.45     5.50     (0.9 )%
Fuel gallons consumed (thousands) 302,781     255,008     18.7 %
Average economic fuel cost per gallon ($) 1.48     1.82     (18.7 )%
Average daily aircraft utilization (hours) 12.4     12.7     (2.4 )%
Average stage length (miles) 979     987     (0.8 )%
                 
  1. Excludes special items.
  2. Excludes economic fuel expense and 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.

         
Special Items        
  Three Months Ended   Year Ended  
  December 31,   December 31,
(in thousands) 2016   2015   2016   2015
Operating special items include the following (1):             
Unrealized losses (gains) related to fuel derivative contracts   (1,988 )     (3,880 )
Loss on disposal of assets 3,021   304     4,187   1,604  
Special charges 5,580       37,189   673  
Total operating special items $ 8,601   $ (1,684 )   $ 41,376   $ (1,603 )

 

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)   2016   2015   2016   2015
Total operating expenses, as reported   $ 493,040     $ 399,509     $ 1,878,295     $ 1,632,341  
Less operating special items (1)   8,601        (1,684 )     41,376       (1,603 )
Adjusted operating expenses, non-GAAP (2)   484,439       401,193       1,836,919       1,633,944  
Less: Economic fuel expense   126,535       107,203       447,553       465,327  
Adjusted operating expenses excluding fuel, non-GAAP (3)   357,904     293,990     $ 1,389,366     $ 1,168,617  
                           
Available seat miles     6,585,018       5,705,398       25,494,645       21,246,156  
                               
CASM (cents)   7.49       7.00       7.37       7.68  
Adjusted CASM (cents) (2)   7.36       7.03       7.21       7.69  
Adjusted CASM ex-fuel (cents) (3)   5.44       5.15       5.45       5.50  
                               
  1. Special items include unrealized gains and losses related to outstanding fuel derivative contracts, loss on disposal of assets, and special charges.  Special charges for 2016 are primarily related to lease termination costs.
  2. Excludes operating special items.
  3. Excludes operating special items and economic fuel expense as described in the "Reconciliation of Economic Fuel Expense to GAAP Fuel Expense" table below.
 
Reconciliation of Adjusted Net Income to GAAP Net Income
(unaudited)      
       
  Three Months Ended   Year Ended
  December 31,   December 31,
(in thousands, except per share data) 2016   2015   2016   2015
Net income, as reported $ 48,493     $ 74,400     $ 264,879     $ 317,220  
Add: Provision for income taxes   29,214       43,746       154,581       185,183  
Income before income taxes, as reported   77,707       118,146       419,460       502,403  
Pre-tax margin, GAAP   13.4 %     22.7 %     18.1 %     23.5 %
Add operating special items (1)   8,601       (1,684 )     41,376       (1,603 )
Income before income taxes, non-GAAP (2)   86,308       116,462       460,836       500,800  
Adjusted pre-tax margin, non-GAAP (2)   14.9 %     22.4 %     19.8 %     23.4 %
Provision for income taxes (3)   32,448       43,122       169,829       184,592  
Adjusted net income, non-GAAP (2)(3) $ 53,860     $ 73,340     $ 291,007     $ 316,208  
                               
Weighted average shares, diluted   69,551       71,672       70,508       72,426  
                               
Adjusted net income per share, diluted (2)(3)   $0.77       $1.02       $4.13     $4.37  

 

Reconciliation of Adjusted Operating Income to GAAP Operating Income
(unaudited)
 
  Three Months Ended   Year Ended
  December 31,   December 31,
(in thousands) 2016   2015   2016   2015
Operating income, as reported $ 85,311     $ 120,337     $ 443,661     $ 509,122  
Operating margin, GAAP   14.8 %     23.1 %     19.1 %     23.8 %
Add operating special items (1)   8,601       (1,684 )     41,376       (1,603 )
Operating income, non-GAAP (2) $ 93,912     $ 118,653     $ 485,037     $ 507,519  
Operating margin (2)   16.2 %     22.8 %     20.9 %     23.7 %
                               
  1. See "Special Items" for more details.
  2. Excludes operating special items.
  3. Assumes same marginal tax rate as is applicable to GAAP net income. 

The Company believes economic fuel expense is the best measure of the effect fuel prices are currently having on its business, because it most closely approximates the net cash outflow associated with purchasing fuel used for its operations during the period. Economic fuel expense is defined as into-plane fuel expense, realized gains or losses on derivative contracts, plus the economic premium expense related to fuel option contracts in the period the option is benefiting. The key difference between aircraft fuel expense as recorded in its statement of operations and economic fuel expense is unrealized mark-to-market changes in the value of aircraft fuel derivatives outstanding and the timing of premium gain or loss recognition on its outstanding fuel option contracts. Many industry analysts evaluate airline results using economic fuel expense, and it is used in our internal management reporting.

   
Reconciliation of Economic Fuel Expense to GAAP Fuel Expense  
(unaudited)          
           
    Three Months Ended   Year Ended  
    December 31,   December 31,
(in thousands, except per gallon data)   2016   2015   2016   2015
Fuel expense                              
Aircraft fuel, as reported   $ 126,535   $ 105,215     $ 447,553   $ 461,447    
Less:                              
Unrealized losses (gains) related to fuel derivative contracts         (1,988 )         (3,880 )  
Economic fuel expense, non-GAAP   $ 126,535   $ 107,203     $ 447,553   $ 465,327    
                               
Fuel gallons consumed     76,930     67,467       302,781     255,008    
                               
Economic fuel cost per gallon, non-GAAP   $ 1.64   $ 1.59     $ 1.48   $ 1.82    

 

Calculation of Return on Invested Capital
(unaudited)      
       
  Twelve Months Ended
(in thousands) December 31, 2016
Operating income $ 443,661  
Add operating special items (1)   41,376  
Adjustment for aircraft rent   201,675  
Adjusted operating income (2)   686,712  
Tax (36.9%) (3)   253,397  
Adjusted operating income, after-tax   433,315  
Invested capital      
Total debt $ 981,713  
Book equity   1,394,607  
Less: Unrestricted cash, cash equivalents & short-term investments   801,055  
Add: Capitalized aircraft operating leases (7x Aircraft Rent)   1,411,725  
Total invested capital   2,986,990  
       
Return on invested capital (ROIC), pre-tax (2)   23.0 %
Return on invested capital (ROIC), after-tax (2)(3)   14.5 %
       
  1. See "Special Items" for more details.
  2. Excludes special items.
  3. Assumes same marginal tax rate as is applicable to GAAP net income for the twelve months ended December 31, 2016. 

 

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(954) 447-7920

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