Frontier Group Holdings, INC. 10-Q Filing

Ticker: ULCC · Form: 10-Q · Filed: May 2, 2024 · CIK: 1670076

Sentiment: neutral

Filing Stats: 4,689 words · 19 min read · ~16 pages · Grade level 16.7 · Accepted 2024-05-02 06:59:33

Key Financial Figures

Filing Documents

Financial Information

Part I. Financial Information

Condensed Consolidated Financial Statements (unaudited)

Item 1. Condensed Consolidated Financial Statements (unaudited) Condensed Consolidated Balance Sheets 3 Condensed Consolidated Statements of Operations 4 Condensed Consolidated Statements of Comprehensive Income (Loss) 5 Condensed Consolidated Statements of Cash Flows 6 Condensed Consolidated Statements of Stockholders' Equity 7 Notes to Condensed Consolidated Financial Statements 8

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 22 Glossary of Airline Terms 35

Quantitative and Qualitative Disclosures about Market Risk

Item 3. Quantitative and Qualitative Disclosures about Market Risk 37

Controls and Procedures

Item 4. Controls and Procedures 37

Other Information

Part II. Other Information

Legal Proceedings

Item 1. Legal Proceedings 38

Risk Factors

Item 1A. Risk Factors 38

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 40

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 40

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 40

Other Information

Item 5. Other Information 40

Exhibits

Item 6. Exhibits 41 Signature 43 1 Cautionary Statement Regarding Forward-Looking Statements Certain statements in this Quarterly Report on Form 10-Q should be considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on our current expectations and beliefs with respect to certain current and future events and anticipated financial and operating performance. Words such as "may," "might," "will," "should," "could," "would," "expect," "intends," "plan," "anticipate," "believe," "estimate," "project," "targets," "predict," "potential" and similar expressions are intended to identify forward-looking statements. Additionally, forward-looking statements include statements that do not relate solely to historical facts, such as statements which identify uncertainties or trends, discuss the possible future effects of current known trends or uncertainties, or which indicate that the future effects of known trends or uncertainties cannot be predicted, guaranteed or assured. You should read the following discussion and analysis of our financial condition and results of operations together with our unaudited condensed consolidated financial statements and related notes included elsewhere in this Quarterly Report on Form 10-Q, as well as our audited consolidated financial statements and related notes as disclosed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023, as filed with the Securities and Exchange Commission (the "SEC") on February 20, 2024 (the "2023 Annual Report"). This discussion contains forward-looking statements based upon current plans, expectations and beliefs involving risks and uncertainties. Our actual results may differ materially from those anticipated in th

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) FRONTIER GROUP HOLDINGS, INC. Condensed Consolidated Balance Sheets (unaudited, in millions, except share data) March 31, 2024 December 31, 2023 Assets Cash and cash equivalents $ 622 $ 609 Accounts receivable, net 98 93 Supplies, net 75 79 Other current assets 108 90 Total current assets 903 871 Property and equipment, net 330 309 Operating lease right-of-use assets 3,117 2,964 Pre-delivery deposits for flight equipment 394 407 Aircraft maintenance deposits 87 84 Intangible assets, net 27 28 Other assets 348 330 Total assets $ 5,206 $ 4,993 Liabilities and stockholders' equity Accounts payable $ 131 $ 134 Air traffic liability 328 253 Frequent flyer liability 11 10 Current maturities of long-term debt, net 265 251 Current maturities of operating leases 576 549 Other current liabilities 486 461 Total current liabilities 1,797 1,658 Long-term debt, net 201 219 Long-term operating leases 2,565 2,440 Long-term frequent flyer liability 34 35 Other long-term liabilities 125 134 Total liabilities 4,722 4,486 Commitments and contingencies (Note 9) Stockholders' equity: Common stock, $ 0.001 par value per share, with 223,886,304 and 222,998,790 shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively — — Additional paid-in capital 406 403 Retained earnings 85 111 Accumulated other comprehensive income (loss) ( 7 ) ( 7 ) Total stockholders' equity 484 507 Total liabilities and stockholders' equity $ 5,206 $ 4,993 See Notes to Condensed Consolidated Financial Statements 3 FRONTIER GROUP HOLDINGS, INC. Condensed Consolidated Statements of Operations (unaudited, in millions, except per share data) Three Months Ended March 31, 2024 2023 Operating revenues: Passenger $ 845 $ 830 Other 20 18 Total operating revenues 865 848 Operating expenses: Aircraft fuel 263 292 Salaries, wages and benefits 233 203 Aircraft rent 159 131 Stati

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