reminder: Earnings call - Feb 6, 11AM EST
 

Gentle reminder

https://ir.flyfrontier.com/events/ev...ancial-results

We lost 37 Million in Q4.

Lost 11 Million for the full year of 2023 on 3.6 Billion in revenue.

Breaking even, baby.

https://www.globenewswire.com/news-release/2024/02/06/2824173/30034/en/Frontier-Airlines-Reports-Fourth-Quarter-2023-Financial-Results.html

Interesting part I don't fully understand: (we made pretax money but reported a loss?)

Earnings

Pre-tax income for the fourth quarter of 2023 was $6 million, reflecting a pre-tax margin of 0.7 percent. Adjusted pre-tax income, a non-GAAP measure, was $7 million, reflecting an adjusted pre-tax margin of 0.8 percent.

Net loss for the fourth quarter of 2023 was $37 million, including the recognition of a $37 million non-cash valuation allowance against deferred tax assets. This allowance does not affect the Company's ability to utilize cumulative net operating losses against potential future income tax liabilities. Excluding special items, adjusted net income, a non-GAAP measure, was $1 million. Refer to “Reconciliations of Non-GAAP Financial Information” in the appendix of this release.

Cash and Liquidity

Unrestricted cash and cash equivalents as of December 31, 2023 was $609 million

Companies can use their losses against taxable income. Also, the company can roll these losses forward as needed, and the potential offset is counted as an asset.

A valuation allowance occurs when the company doesn't think (50% or more probability) they'll see that benefit.

Put another way, F9 isn't seeing sufficient future income to warrant a $37M reduction in taxable income.

Put negative $30+M against our 4Q and you have a loss.

Most important thing I heard on the call so far. We’re not planning on a pilot or FA contract until 2025 guidance.

...at the EARLIEST (my take away)

also "No pilot staffing issues"

Yeah, no sh|t.

In their minds they won't be giving us a contract until well past that. And even if they think so, they won't tell investors that they are going to have to pay more to labor

Did anyone honestly believe there was going to be a quick contract? Like really. It took the legacies a couple years. There’s no reason to assume anything less for us.

Frontier stock is up 20% today.

Investors are obviously happy with our results

Mentioned it is included in the 2025 budget. Probably not enough but still.

I would agree that we have minimal staffing issues currently. Attrition is not large enough currently to be a concern. I look at available open time currently as a confirmation. On a related note, I missed a bit of the call. Did I catch 4 lease extensions on older CEOs and no impact from GTF? I only heard it offhand via a question that was being answered.

zero “financial impact” is what he said….i don’t know if that is just clever wording or not….probably is.