# EDGAR Filing Document

**Accession Number:** 0001498710
**File Stem:** 0001498710-23-000110
**Filing Date:** 2023-3
**Character Count:** 12540
**Document Hash:** b5359b8d547f982e70a567c85ace00f4
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001498710-23-000110.hdr.sgml**: 20230314

**ACCESSION NUMBER**: 0001498710-23-000110

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 3

**CONFORMED PERIOD OF REPORT**: 20230314

**ITEM INFORMATION**: Regulation FD Disclosure

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230314

**DATE AS OF CHANGE**: 20230314

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Spirit Airlines, Inc.
- **CENTRAL INDEX KEY:** 0001498710
- **STANDARD INDUSTRIAL CLASSIFICATION:** AIR TRANSPORTATION, SCHEDULED [4512]
- **IRS NUMBER:** 381747023
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-35186
- **FILM NUMBER:** 23729159

**BUSINESS ADDRESS:**
- **STREET 1:** 2800 EXECUTIVE WAY
- **CITY:** MIRAMAR
- **STATE:** FL
- **ZIP:** 33025
- **BUSINESS PHONE:** 954-447-7920

**MAIL ADDRESS:**
- **STREET 1:** 2800 EXECUTIVE WAY
- **CITY:** MIRAMAR
- **STATE:** FL
- **ZIP:** 33025

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 8-K** 

**CURRENT REPORT**

**Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934**

Date of Report (date of earliest event reported) March 14, 2023

**SPIRIT AIRLINES, INC.** 

**(Exact name of registrant as specified in its charter)**

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| | | | |
|:---|:---|:---|:---|
| **Delaware** | **001-35186** | **001-35186** | **38-1747023** |
| (State or other jurisdiction of incorporation) | (Commission File Number) | (Commission File Number) | (IRS Employer Identification Number) |
| **2800 Executive Way** | **Miramar,** | **Florida** | **33025** |
| (Address of Principal Executive) | (Address of Principal Executive) | (Address of Principal Executive) | (Zip Code) |

---

**(954) 447-7920** 

(Registrant's telephone number, including area code)

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

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| | | |
|:---|:---|:---|
| Class | Trading Symbol(s) | Name of each exchange on which registered |
| **Common Stock, $0.0001 par value** | **SAVE** | **New York Stock Exchange** |

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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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**Item 7.01**&nbsp;&nbsp;&nbsp;&nbsp;**Regulation FD Disclosure**

On March 14, 2023, Spirit Airlines, Inc. (the "Company" or "Spirit") provided an update to investors regarding the Company's first quarter 2023 guidance and other items; a copy of which is attached hereto as Exhibit 99.1 and is incorporated herein by reference. The guidance provided therein is only an estimate of what the Company believes is realizable as of the date of this investor update. Actual results may vary from the guidance and the variations may be material. The Company undertakes no intent or obligation to publicly update or revise any of these projections, whether as a result of new information, future events or otherwise, except as required by law.

The information in this report furnished pursuant to Item 7.01 shall not be deemed "filed" for the purposes of Section 18 of the Securities and Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section. It may only be incorporated by reference in another filing under the Exchange Act or the Securities Act of 1933, as amended (the "Securities Act"), if such subsequent filing specifically references the information furnished pursuant to Item 7.01 of this report.

**Item 9.01**&nbsp;&nbsp;&nbsp;&nbsp;**Financial Statements and Exhibits.**

**(d)**&nbsp;&nbsp;&nbsp;&nbsp;**Exhibits**

The following is furnished as an exhibit to this report and shall not be deemed "filed" for purposes of Section 18 of the Exchange Act:

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| | |
|:---|:---|
| <u>Exhibit No.</u> | <u>Description</u> |
| 99.1 | <u>[Updated First Quarter 2023 Guidance](investorguidance031423.htm)</u> |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL Document) |

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**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

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| | |
|:---|:---|
| Date: March 14, 2023 | SPIRIT AIRLINES, INC. |
|  | By: <u>/s/ Thomas Canfield</u> |
|  | Name: Thomas Canfield |
|  | Title: Senior Vice President and General Counsel |

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## Exhibit 99.1

![spiritlogo.jpg](spiritlogo.jpg)

**EXHIBIT 99.1**

**Current Guidance as March 14, 2023**

The first quarter and full year 2023 guidance items provided below are based on the Company's current estimates and are not a guarantee of future performance. There could be significant risks and uncertainties that could cause actual results to differ materially, including the risk factors discussed in the Company's reports on file with the Securities and Exchange Commission. Spirit undertakes no duty to update any forward-looking statements or estimates.

First quarter 2023 adjusted operating expenses are estimated to be $1.45 billion to $1.47 billion or, $60 million to $70 million higher than the Company's previous guide. The primary driver of the increase is higher-than-expected fuel costs. In addition, one-time costs associated with the implementation of its new pilot contract are expected to be higher than initially estimated.

The Company continues to expect that beginning with the second quarter, the run-rate impact of its new pilot contract will be about $40 million a quarter in 2023.

The Company estimates its first quarter 2023 capacity will be about a half percentage point lower than previously expected. This is primarily due to an increase in the number of unscheduled engine removals during the quarter, resulting in a lower level of flight operations.

"Pratt & Whitney has indicated supply chain issues are beginning to improve and we should see less impact from unscheduled events as we move throughout the year. As such, we expect to see a steady increase in fleet utilization, reaching normalized utilization levels by the end of the year," said Ted Christie, Spirit's President and Chief Executive Officer. "Demand remains strong and, despite higher fuel prices, we are confident we will be profitable in the second, third, and fourth quarters of 2023 and profitable for the full year 2023."

Adjusted operating expenses and adjusted operating margin are non-GAAP financial measures, which are provided on a forward-looking basis. The Company does not provide a reconciliation of non-GAAP forward-looking measures on a forward-looking basis where the Company believes such reconciliation would imply a degree of precision and certainty that could be confusing to investors and is unable to reasonably predict certain items included in/excluded from the GAAP financial measures without unreasonable efforts. This is due to the inherent difficulty of forecasting the timing or amount of various items that have not yet occurred and are out of the Company's control or cannot be reasonably predicted. For the same reasons, the Company is unable to address the probable significance of the unavailable information. Non-GAAP forward-looking measures provided without the most directly comparable GAAP financial measures may vary materially from the corresponding GAAP financial measures.

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| | |
|:---|:---|
| | **First Quarter 2023E** |
| **TRASM % change y/y** | Up 23.5% to 24.5% |
| **Adjusted Operating expenses ($Billions)**<sup>(1)</sup> | $1.45 to $1.47 |
| **Adjusted Operating margin (%)**<sup>(1)</sup> | (7)% to (9)% |
| **Fuel cost per gallon ($)**<sup>(2)</sup> | $3.45 to $3.50 |
| **Fuel gallons (Millions)** | ~143 |
| **Total other (income) expense ($Millions)**<sup>(3)</sup> | $28.1 |
| **Effective tax rate**<sup>(1)</sup> | 24% |
| **Diluted share count (Millions)**<sup>(4)</sup> | 109.1 |
|  | **Full Year 2023E** |
| **Total capital expenditures ($Millions)**<sup>(5)</sup> |  |
| Pre-delivery deposits, net of refunds | $75 |
| Aircraft and engine purchases | $30 |
| Other capital expenditures | $255 |

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| | | |
|:---|:---|:---|
| | **1Q23E** | **Full Year 2023E** |
| **Available Seat Miles % Change vs. 2022** | 12.8% | 18% to 20% |

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(1)Excludes special items, which may include loss on disposal of assets, special charges and credits, fixed asset impairment charges, and other items which are not estimable at this time.

(2)Includes fuel taxes and into-plane fuel cost.

(3)Includes interest expense, capitalized interest, interest income, and other income and expense. Excludes any potential change in the mark to market adjustment related to the derivative portion of the 2026 Convertible Notes.

(4)In periods where the amount of 2025 Convertible Notes (the "Notes") outstanding remains unchanged from the fourth quarter 2022 and the Company is profitable, the Notes could have a dilutive impact of approximately 2.3 million on the weighted average diluted shares outstanding. If adjusted net income plus interest on the Notes, net of income tax, divided by the weighted average diluted shares including the 2.3 million shares is found to be anti-dilutive, the shares related to the Notes will not be included in the weighted average diluted share count. In addition, if the Company is profitable, the dilutive impact, if any, from outstanding equity awards and warrants will also impact the weighted average diluted shares outstanding. The Treasury Stock Method will be used to determine the dilutive impact of any outstanding equity awards and warrants.

(5)Total capital expenditures assumes all new aircraft deliveries are either delivered under direct leases or financed through sale-leaseback transactions.

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![spiritlogo.jpg](spiritlogo.jpg)

*Forward Looking Statements*

Non-GAAP Financial Measures

The Company evaluates its financial performance utilizing various accounting principles generally accepted in the United States of America ("GAAP") and non-GAAP financial measures, including Adjusted operating expenses and Adjusted operating margin. These non-GAAP financial measures are provided because management believes that they supplement or enhance management's, analysts' and investors' overall understanding of the Company's underlying financial performance and trends and facilitate comparisons among current, past and future periods.

Because the non-GAAP financial measures are not calculated in accordance with GAAP, they should not be considered superior to and are not intended to be considered in isolation or as a substitute for the related GAAP financial measures presented in the report and may not be the same as or comparable to similarly titled measures presented by other companies due to possible differences in the method of calculation and in the items being adjusted. We encourage investors to review our financial statements and other filings with the Securities and Exchange Commission in their entirety and not to rely on any single financial measure.

The Company believes that adjusting for loss on disposal of assets, special charges (credits), and other special items is useful to investors because these items are not indicative of the Company's ongoing performance and the adjustments are similar to those made by our peers and allow for enhanced comparability to other airlines

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