Spirit Airlines, Inc. (SAVE) has reported 34.82 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $48.49 million, or $0.70 a share in the quarter, compared with $74.40 million, or $1.04 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $53.86 million, or $0.77 a share compared with $73.34 million or $1.02 a share, a year ago. Revenue during the quarter grew 11.25 percent to $578.35 million from $519.85 million in the previous year period. Gross margin for the quarter contracted 156 basis points over the previous year period to 58.34 percent. Total expenses were 85.25 percent of quarterly revenues, up from 76.85 percent for the same period last year. That has resulted in a contraction of 840 basis points in operating margin to 14.75 percent.
Operating income for the quarter was $85.31 million, compared with $120.34 million in the previous year period.
However, the adjusted operating income for the quarter stood at $93.91 million compared to $118.65 million in the prior year period. At the same time, adjusted operating margin contracted 659 basis points in the quarter to 16.24 percent from 22.82 percent in the last year period.
"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, Spirits 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."
Operating cash flow remains almost stableCash flow from operating activities was almost stable for the quarter at $473.68 million, when compared with the previous year period The company has spent $826.27 million cash to meet investing activities during the year as against cash outgo of $701.28 million in the last year.
Cash flow from financing activities was $249.86 million for the year, down 37.40 percent or $149.29 million, when compared with the last year.
Cash and cash equivalents stood at $700.90 million as on Dec. 31, 2016, down 12.78 percent or $102.73 million from $803.63 million on Dec. 31, 2015.
Working capital declines
Spirit Airlines, Inc. has witnessed a decline in the working capital over the last year. It stood at $443.90 million as at Dec. 31, 2016, down 20.75 percent or $116.20 million from $560.10 million on Dec. 31, 2015. Current ratio was at 1.83 as on Dec. 31, 2016, down from 2.20 on Dec. 31, 2015.
Debt increases substantially
Spirit Airlines, Inc. has witnessed an increase in total debt over the last one year. It stood at $981.71 million as on Dec. 31, 2016, up 51.89 percent or $335.38 million from $646.33 million on Dec. 31, 2015. Total debt was 31.15 percent of total assets as on Dec. 31, 2016, compared with 25.54 percent on Dec. 31, 2015. Debt to equity ratio was at 0.70 as on Dec. 31, 2016, up from 0.53 as on Dec. 31, 2015. Interest coverage ratio improved to 7.07 for the quarter from 16.71 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
