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This company completed an initial public offering (IPO) of its stock in 2010. View articles that reference this company. Recent IPOs: Globe Specialty Metals • LogMeIn • Invesco Mortgage Capital • Medidata • Chemspec |
Spirit Airlines (NASDAQ:SAVE) is an ultra low-cost, low-fare airline that provides air transportation in and out of the Florida, Caribbean and Latin American region. The business model is based on providing low price, basic service to all customers and offer optional services for additional fees. This model targets price sensitive customers interested in visiting friends and family with minimal amenities. Key elements of the low-cost operating structure include efficient asset utilization, operation of an uniquely Airbus fleet with high density seat configurations, employee productivity, and strong cost control pressures. The company leverages its innovative price unbundled strategy to produce significant revenue from services beyond ticket sales. [1]
The principle target growth areas include Caribbean and Latin America whose markets are expansive and largely untapped especially in low-cost market segments. Historically, these geographic markets have been served by high fare competitors and have not experienced significant competitive pressures. Additionally, as investing in Latin America and in Brazil continues to grow, there will be an increase in air travel demand to and from countries like Brazil and Mexico. In the upcoming years, the airline industry will be faced with a long list of risks - some of which include the oil prices and fuel surcharges , increased governmental regulation, labor relations, security concerns, and ability to control our costs. However, some of these cost pressures may actually benefit the low cost airline business model as an increasing number of customers shop for lower cost travel options. [2]
The company's initial public offering of stock on the NASDAQ occurred on May 25, 2011. The company offered 15.6M shares each for $12. This was at the low end of the $12-$13 revised price range. The company had initially planned to sell 20M shares at a higher $14-$16 price range. The offering raised a total of $187M. The lead managers of the IPO were Morgan Stanley (MS) and Citigroup (C).[3]
During the full year 2010, the company reported a total revenue of $781M and its net income $72M. This was a 12% increase in total revenue and a 14% decrease in net income as compared to 2009.[4]
- ↑ SAVE S-1/A 2011 SUMMARY "Overview" pg 1-2
- ↑ SAVE S-1/A 2011 PROSPECTUS SUMMARY "Our Industry" pg 2-6
- ↑ Renaissance Capital - IPO Home "Spirit Airlines prices IPO at $12, the low end of the downwardly revised price range" 25 May 2011
- ↑ SAVE S-1/A 2011 PROSPECTUS SUMMARY "SUMMARY HISTORICAL FINANCIAL AND OPERATING DATA" pg 12
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