Spirit Airlines, Inc. (SAVE) has reported a 16.20 percent fall in profit for the quarter ended Sep. 30, 2016. The company has earned $81.38 million, or $1.17 a share in the quarter, compared with $97.11 million, or $1.35 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $86.33 million, or $1.24 a share compared with $97.30 million or $1.35 a share, a year ago. Revenue during the quarter grew 8.09 percent to $621.33 million from $574.84 million in the previous year period. Gross margin for the quarter expanded 44 basis points over the previous year period to 61.21 percent. Total expenses were 78.24 percent of quarterly revenues, up from 72.65 percent for the same period last year. That has resulted in a contraction of 559 basis points in operating margin to 21.76 percent.
Operating income for the quarter was $135.22 million, compared with $157.22 million in the previous year period.
However, the adjusted operating income for the quarter stood at $142.99 million compared to $157.52 million in the prior year period. At the same time, adjusted operating margin contracted 439 basis points in the quarter to 23.01 percent from 27.40 percent in the last year period.
"During the third quarter 2016, we saw sequential improvement in total revenue directly related to our own revenue initiatives as well as a modest improvement in the industry pricing environment, and are encouraged by the constructive trends we are seeing," said Bob Fornaro, Spirit’s president and chief executive officer. "On the operations front, we made good strides toward improving our operational performance and for the months of July, August, and September, we set new company records for on-time performance. I applaud our team for the progress made to date towards achieving consistent reliability."
Operating cash flow improves
Spirit Airlines, Inc. has generated cash of $440.04 million from operating activities during the nine month period, up 19.26 percent or $71.05 million, when compared with the last year period. The company has spent $663.77 million cash to meet investing activities during the nine month period as against cash outgo of $542.16 million in the last year period.
Cash flow from financing activities was $246 million for the nine month period, down 14.96 percent or $43.28 million, when compared with the last year period.
Cash and cash equivalents stood at $825.90 million as on Sep. 30, 2016, up 10.28 percent or $77.01 million from $748.90 million on Sep. 30, 2015.
Working capital increases
Spirit Airlines, Inc. has recorded an increase in the working capital over the last year. It stood at $532.58 million as at Sep. 30, 2016, up 17.91 percent or $80.89 million from $451.69 million on Sep. 30, 2015. Current ratio was at 1.93 as on Sep. 30, 2016, down from 1.97 on Sep. 30, 2015.
Days sales outstanding were almost stable at 5 days for the quarter, when compared with the last year period.
At the same time, days payable outstanding went up to 10 days for the quarter from 8 for the same period last year.
Debt increases substantially
Spirit Airlines, Inc. has witnessed an increase in total debt over the last one year. It stood at $979.25 million as on Sep. 30, 2016, up 82.05 percent or $441.35 million from $537.90 million on Sep. 30, 2015. Total debt was 31.29 percent of total assets as on Sep. 30, 2016, compared with 23.62 percent on Sep. 30, 2015. Debt to equity ratio was at 0.73 as on Sep. 30, 2016, up from 0.47 as on Sep. 30, 2015. Interest coverage ratio deteriorated to 11.90 for the quarter from 26.42 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: editor@irisindia.net
