FRONTIER GROUP Reports Fourth Quarter FY2022 Earnings Results on December 31, 2022
April 4, 2023
Earnings Overview
FRONTIER GROUP ($NASDAQ:ULCC) announced its fourth quarter FY2022 earnings results on December 31, 2022, for the period ending February 8, 2023. Total revenue grew 175.5% year-over-year to USD 40.0 million, while net income jumped 48.8%, reaching USD 906.0 million.
Transcripts Simplified
This margin improvement was driven by record ancillary revenue and lower fuel costs per day. Adjusted CASM ex-fuel declined sequentially to $0.64, which was 7% lower than the prior quarter. Frontier Group ended the year with $761 million of unrestricted cash and cash equivalents and $332 million of net total debt. For the first quarter of 2023, capacity is expected to grow 17-19% over the 2022 quarter and 23-28% over the prior year.
Fuel costs are expected to be between $3.50 and $3.55 per gallon in the first quarter and $3.05 to $3.15 per gallon for the full year 2023. Adjusted nonfuel operating expenses in the first quarter are expected to be between $570 million and $595 million and $2.425 billion to $2.525 billion for the full year.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Frontier Group. More…
| Total Revenues | Net Income | Net Margin |
| 3.33k | -37 | -0.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Frontier Group. More…
| Operations | Investing | Financing |
| -78 | -154 | 75 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Frontier Group. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 4.5k | 3.99k | 2.34 |
Key Ratios Snapshot
Some of the financial key ratios for Frontier Group are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 9.9% | -0.8% | -1.1% |
| FCF Margin | ROE | ROA |
| -6.9% | -4.5% | -0.5% |
Price History
FRONTIER GROUP opened their stock at $13.5, which was the same as their previous closing price from the prior day. Despite a slight dip after the opening, the stock closed the day at $13.6, down only by 0.2% from its previous closing price of 13.6. FRONTIER GROUP reported a strong financial performance for the quarter, with higher than expected revenue and net income figures. The company also announced a new dividend policy, giving shareholders a more consistent flow of income from their investments.
With the additional cash flow, FRONTIER GROUP expects to be able to reinvest in their businesses and continue to generate long-term value for shareholders. Overall, the company is in a strong financial position and is well-positioned to continue to perform well in the future. Investors should keep an eye on FRONTIER GROUP as they continue to report their earnings and update their dividend policy throughout the year. Live Quote…
Analysis
GoodWhale has conducted an analysis of FRONTIER GROUP‘s wellbeing. The Star Chart shows that FRONTIER GROUP has an intermediate health score of 5/10 with regard to its cashflows and debt, suggesting that it might be able to sustain future operations in times of crisis. FRONTIER GROUP shows strong performance in growth, but is weak with regards to profitability and assets, as well as dividend. In conclusion, we classify FRONTIER GROUP as a ‘cheetah’, a type of company that has achieved high revenue or earnings growth but is considered less stable due to lower profitability. It is possible that investors who are looking for short-term returns may be interested in FRONTIER GROUP given its strong growth performance. However, due to the low level of stability and the risk involved in investing in such companies, investors should be aware of the potential risks before investing. More…
Peers
Frontier Group Holdings Inc is an airline holding company that owns and operates Frontier Airlines. The company was founded in 1994 and is headquartered in Denver, Colorado. Frontier Group Holdings Inc’s competitors include Spirit Airlines Inc, JetBlue Airways Corp, and Southwest Airlines Co.
– Spirit Airlines Inc ($NYSE:SAVE)
In 2022, Spirit Airlines had a market cap of 2.38 billion and a return on equity of -10.47%. The company is an American ultra-low-cost carrier, headquartered in Miramar, Florida. Spirit operates scheduled flights throughout the United States and in the Caribbean, Mexico, Latin America, and South America.
– JetBlue Airways Corp ($NASDAQ:JBLU)
As of 2022, JetBlue Airways Corp has a market cap of 2.42B and a Return on Equity of -8.81%. JetBlue Airways Corp is an airline company that operates in the United States. The company was founded in 1999 and is headquartered in New York, New York. JetBlue Airways Corp offers scheduled air service in the United States and the Caribbean. The company also provides cargo transportation services.
– Southwest Airlines Co ($NYSE:LUV)
Southwest Airlines Co is a publicly traded company with a market capitalization of $20.39 billion as of 2022. The company has a return on equity of 10.01%. Southwest Airlines Co is a low-cost carrier that operates in the United States. The company was founded in 1967 and is headquartered in Dallas, Texas.
Summary
Investors interested in FRONTIER GROUP may be pleased with the company’s recent quarterly financial results. For the fourth quarter of FY2022, ending on February 8, 2023, the company reported total revenue of USD 40.0 million, up 175.5% YoY, and net income of USD 906.0 million, up 48.8% YoY. The impressive growth in both revenues and profits likely signals that the company is well-positioned for future success and could see further financial gains in the near future. Analysts and investors should continue to monitor the performance of FRONTIER GROUP to determine if this impressive growth can be sustained.
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