- Q2 2022 GAAP diluted EPS of $0.53 and adjusted diluted EPS
of $0.33, compared to Q2 2021 GAAP diluted EPS of $0.03 and
adjusted diluted EPS of $0.08.
- Q2 2022 Sales were $393 million, compared to $320 million in
Q2 2021.
- Full year 2022 guidance is reaffirmed.
See Table C for reconciliation of GAAP and non-GAAP operating
income, net income (loss), earnings (loss) per share and operating
cash flow to free cash flow. Free cash flow is cash from operations
less capital expenditures.
Hexcel Corporation (NYSE: HXL):
Summary of Results from Operations
Quarters Ended
Six Months Ended
June 30,
June 30,
(In millions, except per share data)
2022
2021
% Change
2022
2021
% Change
Net Sales
$
393.0
$
320.3
22.7 %
$
783.6
$
630.6
24.3 %
Net sales change in constant currency
25.9 %
26.7 %
Operating Income
63.8
16.2
293.8 %
93.9
6.0
1,465.0 %
Net Income (Loss)
44.7
2.2
1,931.8 %
62.5
(11.8
)
629.7 %
Diluted net income (loss) per common
share
$
0.53
$
0.03
1,666.7 %
$
0.74
$
(0.14
)
628.6 %
Non-GAAP measures for year-over-year
comparison (Table C)
Adjusted Operating Income
$
44.7
$
19.3
131.6 %
$
75.8
$
21.2
257.5 %
As a % of sales
11.4
%
6.0
%
9.7
%
3.4
%
Adjusted Net Income (Loss)
28.1
7.1
295.8 %
46.7
(1.3
)
3,692.3 %
Adjusted diluted net income (loss) per
share
$
0.33
$
0.08
312.5 %
$
0.55
$
(0.02
)
2,850.0 %
Hexcel Corporation (NYSE: HXL) today reported second quarter
2022 results including net sales of $393 million and adjusted
diluted EPS of $0.33 per share.
Chairman, CEO and President Nick Stanage said, “The second
quarter demonstrated our continued ability to deliver solid results
and to perform consistently in the face of supply chain disruptions
and inflationary pressures, which we expect to be present at least
through the end of 2022. We remain encouraged by the ongoing
recovery in air travel that is supporting growth in the commercial
aerospace market, as well as the strength in Space and Defense and
the success that our Industrial team is achieving in both existing
and new markets. We continue to tightly manage our cost base and
focus strongly on working capital as our business grows. Our key
priorities continue to be meeting the needs of our customers,
optimizing incremental margins, and driving innovation to support
the global drive for fuel efficiency and emissions reduction from
composite lightweighting.”
Markets
Sales in the second quarter of 2022 were $393.0 million compared
to $320.3 million in the second quarter of 2021.
Commercial Aerospace
- Commercial Aerospace sales of $227.6 million increased 48.1%
(49.5% in constant currency) for the second quarter of 2022
compared to the second quarter of 2021 led by growth in the A350,
A320neo and 737 MAX programs. The sub-category Other Commercial
Aerospace, which includes business jets and regional aircraft,
increased 75.4% for the second quarter of 2022 compared to the
second quarter of 2021.
Space & Defense
- Space & Defense sales of $111.9 million increased 4.7%
(7.0% in constant currency) for the quarter as compared to the
second quarter of 2021 with growth in Space, CH-53K heavy lift
helicopter and a number of international programs.
Industrial
- Total Industrial sales of $53.5 million in the second quarter
of 2022 decreased 10.4% (3.5% in constant currency) compared to the
second quarter of 2021 as lower wind energy sales and the negative
impact of foreign exchange, was only partially offset by growth in
automotive, recreation and other industrial sales.
Consolidated Operations
Gross margin for the second quarter of 2022 was 22.8% compared
to 19.3% in the second quarter of 2021 as higher sales volume drove
favorable operating leverage. As a percentage of sales, selling,
general and administrative and R&T expenses for the second
quarter of 2022 were 11.4% compared to 13.3% for the second quarter
of 2021. Adjusted operating income in the second quarter of 2022
was $44.7 million or 11.4% of sales, compared to $19.3 million, or
6.0% of sales in 2021. Other operating income for the second
quarter of 2022 included a pre-tax net gain of $19.4 million from
the sale of our Dublin, California site as we transfer our R&T
laboratory from Dublin to a new, flagship Center of Research &
Technology Excellence at our Salt Lake City site in Utah. The
impact of exchange rates on operating income as a percent of sales
was favorable by approximately 30 basis points in the second
quarter of 2022 compared to the second quarter of 2021.
Year-to-Date 2022
Results
Sales for the first six months of 2022 were $783.6 million
compared to $630.6 million for the same period in 2021.
Commercial Aerospace (57% of YTD sales)
- Commercial Aerospace sales of $446.5 million increased 48.2%
(49.2% in constant currency) for the first six months of 2022
compared to the first six months of 2021 on stronger narrowbody and
A350 sales, whereas sales in the prior year period were impacted by
channel destocking. The sub-category Other Commercial Aerospace
increased 72.9% for the first six months of 2022 compared to the
same period in 2021.
Space & Defense (29% of YTD sales)
- Space & Defense sales of $230.1 million increased 5.3%
(7.0% in constant currency) for the first six months of 2022 as
compared to the first six months of 2021, led by growth in Space
and the CH-53K program.
Industrial (14% of YTD sales)
- Total Industrial sales of $107.0 million in the first six
months of 2022 decreased 3.3% (increased 2.6% in constant currency)
compared to the first six months of 2021 as growth in automotive,
recreation and other industrial markets was not enough to offset
the negative impact of foreign exchange rates and lower wind energy
sales.
Consolidated Operations
Gross margin for the first six months of 2022 was 22.5% compared
to 18.2% in the prior year period as higher sales and greater
capacity utilization led to improved cost absorption. As a
percentage of sales, selling, general and administrative and
R&T expenses for the first six months of 2022 were 12.8%
compared to 14.9% for the first six months of 2021. Adjusted
operating income for the first six months of 2022 was $75.8 million
or 9.7% of sales, compared to $21.2 million, or 3.4% of sales in
2021. Other operating income for the first six months of 2022
included a pre-tax net gain of $19.4 million from the Dublin
property sale, partially offset by restructuring costs. The impact
of exchange rates on operating income as a percent of sales was
favorable by approximately 25 basis points in the first six months
of 2022 compared to 2021.
Cash and other
- The second quarter 2022 tax expense was $12.7 million. The tax
expense for the second quarter of 2021 was $4.0 million and
included a discrete tax charge of $2.7 million related to the
remeasurement of the net deferred tax liability in a foreign
jurisdiction. The tax expense for the first six months of 2022 was
$17.4 million. The tax benefit for the first six months of 2021 was
$3.5 million and included a discrete tax benefit of $3.2 million
for the revaluation of deferred tax liabilities related to a
favorable U.S. state tax law change in addition to the discrete tax
charge of $2.7 million mentioned above. The underlying effective
tax rate for 2022 continues to be 23%.
- Net cash provided by operating activities in the first six
months of 2022 was $18.3 million, compared to $38.9 million for the
first six months of 2021. Working capital was a cash use of $95.1
million for the first six months of 2022 and a use of $19.6 million
for the comparable period in 2021. The increase in working capital
supports growing sales. Capital expenditures on a cash basis were
$37.9 million for the first six months of 2022 compared to $9.2
million for the first six months of 2021 with the increase
reflecting two previously announced ongoing construction projects;
the construction of a research and technology innovation center in
Salt Lake City, Utah and the expansion of Hexcel’s engineered core
operations in Morocco. Net cash used for investing activities for
the six months ended June 30, 2022 included the net proceeds of
$21.2 million received from the sale of our facility in Dublin,
California. Free cash flow was ($19.6) million in the first six
months of 2022 compared to $29.7 million in the first six months of
2021. Free cash flow is defined as cash generated from operating
activities less cash paid for capital expenditures. Capital
expenditures on an accrual basis were $28.3 million and $7.8
million for the first six months of 2022 and 2021,
respectively.
- The Company did not repurchase any common stock during the
second quarter of 2022. The remaining authorization under the share
repurchase program at June 30, 2022, was $217 million.
- As announced today, the Board of Directors declared a quarterly
dividend of $0.10 per share payable to stockholders of record as of
August 5, 2022, with a payment date of August 12, 2022.
2022 Guidance
(unchanged)
- Sales of $1.50 billion to $1.63 billion
- Adjusted diluted earnings per share of $1.00 to $1.24
- Free cash flow greater than $145 million
- Accrual basis capital expenditures of approximately $75
million
- Underlying effective tax rate is estimated to be 23%
Hexcel will host a conference call at 10:00 a.m. ET, on July 26,
2022, to discuss second quarter 2022 results. The event will be
webcast via the Investor Relations webpage at www.Hexcel.com. The
event can also be accessed by dialing +1 (646) 960-0452. The
conference ID is 3428143. Replays of the call will be available on
the website.
About Hexcel
Hexcel Corporation is a global leader in advanced lightweight
composites technology. We propel the future of flight, energy
generation, transportation, and recreation through excellence in
providing innovative high-performance material solutions that are
lighter, stronger and tougher, helping to create a better world for
us all. Our broad and unrivaled product range includes carbon
fiber, specialty reinforcements, prepregs and other
fiber-reinforced matrix materials, honeycomb, resins, engineered
core and composite structures for use in commercial aerospace,
space and defense, and industrial applications.
Disclaimer on Forward Looking Statements
This news release contains statements that are forward looking
within the meaning of the Private Securities Litigation Reform Act
of 1995, including statements relating to the estimates and
expectations based on aircraft production rates provided by Airbus,
Boeing and others; the revenues we may generate from an aircraft
model or program; the impact of the push-out in deliveries of the
Airbus and Boeing backlog and the impact of delays in the startup
or ramp-up of new aircraft programs or the final Hexcel composite
material content once the design and material selection have been
completed; expectations with regard to regulatory clearances or the
build rate of the Boeing 737 MAX or Boeing 787 and the related
impact on our revenues; expectations with regard to raw material
cost and availability; expectations of composite content on new
commercial aircraft programs and our share of those requirements;
expectations regarding revenues from space and defense
applications, including whether certain programs might be curtailed
or discontinued; expectations regarding sales for wind energy,
recreation, automotive and other industrial applications;
expectations regarding working capital trends and expenditures and
inventory levels; expectations as to the level of capital
expenditures and completion of capacity expansions and
qualification of new products; expectations regarding our ability
to improve and maintain margins; projections regarding our tax
rate; expectations with regard to the continued impact of the
COVID-19 pandemic and the impact of the conflict between Russia and
Ukraine on worldwide air travel and aircraft programs, as well as
on our customers and suppliers and, in turn, on our operations and
financial results; expectations regarding our strategic initiatives
and other goals, including, but not limited to, our sustainability
goals; and the anticipated impact of the above factors and various
market risks on our expectations of financial results for 2022 and
beyond. Actual results may differ materially from the results
anticipated in the forward looking statements due to a variety of
factors, including but not limited to the impact of the COVID-19
pandemic, including continued disruption in global financial
markets and supply chains, ongoing restrictions on movement and
travel, employee absenteeism and labor shortages, and reduced
demand for air travel, on the operations, business and financial
condition of Hexcel and its customers and suppliers; reductions in
sales to any significant customers, particularly Airbus or Boeing,
including related to the timing of pending regulatory clearances
for the Boeing 737 MAX and the Boeing 787, as well as due to the
impact of the COVID-19 pandemic; inability to effectively adjust
production and inventory levels to align with customer demand;
inability to effectively motivate, retain and hire the necessary
workforce; our ability to successfully implement or realize our
business strategies, plans, goals and objectives of management,
including our sustainability goals and any restructuring or
alignment activities in which we may engage; the impact of any
government mandated COVID-19 precautions, including mandatory
vaccination; changes in sales mix; changes in current pricing and
cost levels, including cost inflation, as well as increasing energy
prices resulting from the conflict between Russia and Ukraine;
changes in aerospace delivery rates; changes in government defense
procurement budgets; changes in military aerospace program
technology; timely new product development or introduction;
industry capacity; increased competition; availability and cost of
raw materials, including the impact of supply shortages and
inflation; supply chain disruptions, which may be exacerbated by
the conflict between Russia and Ukraine; inability to install,
staff and qualify necessary capacity or complete capacity
expansions to meet customer demand; cybersecurity-related risks
including the potential impact of breaches or intrusions; currency
exchange rate fluctuations; changes in political, social and
economic conditions, including, but not limited to, the effect of
change in global trade policies, such as sanctions imposed as a
result of the conflict between Russia and Ukraine; work stoppages
or other labor disruptions; our ability to successfully complete
any strategic acquisitions, investments or dispositions; compliance
with environmental, health, safety and other related laws and
regulations, including those related to climate change; the effects
of natural disasters, which may be worsened by the impact of
climate change, and other severe catastrophic events; the potential
impact of environmental, social and governance matters; and the
unexpected outcome of legal matters or impact of changes in laws or
regulations. Additional risk factors are described in our filings
with the Securities and Exchange Commission. We do not undertake an
obligation to update our forward-looking statements to reflect
future events.
Hexcel Corporation and
Subsidiaries
Condensed Consolidated Statements of
Operations
Unaudited
Quarters Ended
Six Months Ended
June 30,
June 30,
(In millions, except per share data)
2022
2021
2022
2021
Net sales
$
393.0
$
320.3
$
783.6
$
630.6
Cost of sales
303.5
258.4
607.4
515.6
Gross margin
89.5
61.9
176.2
115.0
% Gross Margin
22.8
%
19.3
%
22.5
%
18.2
%
Selling, general and administrative
expenses
33.5
31.1
78.2
70.7
Research and technology expenses
11.3
11.5
22.2
23.1
Other operating (income) expense
(19.1
)
3.1
(18.1
)
15.2
Operating income
63.8
16.2
93.9
6.0
Interest expense, net
8.9
9.3
18.0
19.6
Other income
(0.3
)
-
(0.3
)
-
Income (loss) before income taxes, and
equity in earnings of affiliated companies
55.2
6.9
76.2
(13.6
)
Income tax expense (benefit)
12.7
4.0
17.4
(3.5
)
Income (loss) before equity in earnings of
affiliated companies
42.5
2.9
58.8
(10.1
)
Equity in earnings (losses) from
affiliated companies
2.2
(0.7
)
3.7
(1.7
)
Net income (loss)
$
44.7
$
2.2
$
62.5
$
(11.8
)
Basic net income (loss) per common
share:
$
0.53
$
0.03
$
0.74
$
(0.14
)
Diluted net income (loss) per common
share:
$
0.53
$
0.03
$
0.74
$
(0.14
)
Weighted-average common shares:
Basic
84.4
84.1
84.3
84.0
Diluted
85.0
84.7
84.9
84.0
Hexcel Corporation and
Subsidiaries
Condensed Consolidated Balance
Sheets
Unaudited
June 30,
December 31,
(In millions)
2022
2021
Assets
Cash and cash equivalents
$
99.2
$
127.7
Accounts receivable, net
234.2
160.3
Inventories, net
271.5
245.7
Contract assets
30.1
30.5
Prepaid expenses and other current
assets
44.3
39.5
Assets held for sale
12.6
12.6
Total current assets
691.9
616.3
Property, plant and equipment
3,045.4
3,110.0
Less accumulated depreciation
(1,375.1
)
(1,363.9
)
Net property, plant and equipment
1,670.3
1,746.1
Goodwill and other intangible assets,
net
258.8
267.5
Investments in affiliated companies
46.1
44.6
Other assets
152.3
144.9
Total assets
$
2,819.4
$
2,819.4
Liabilities and Stockholders'
Equity
Liabilities:
Short-term borrowings
$
0.5
$
0.9
Accounts payable
103.4
113.2
Accrued compensation and benefits
71.3
54.4
Accrued liabilities
96.0
79.1
Total current liabilities
271.2
247.6
Long-term debt
812.0
822.4
Retirement obligations
48.7
52.6
Other non-current liabilities
207.2
211.3
Total liabilities
$
1,339.1
$
1,333.9
Stockholders' equity:
Common stock, $0.01 par value, 200.0
shares authorized, 110.3 shares issued at June 30, 2022 and 110.1
shares issued at December 31, 2021
$
1.1
$
1.1
Additional paid-in capital
894.1
878.6
Retained earnings
2,058.0
2,012.5
Accumulated other comprehensive loss
(191.3
)
(126.5
)
2,761.9
2,765.7
Less – Treasury stock, at cost, 26.2
shares at June 30, 2022 and 26.1 shares at December 31, 2021
(1,281.6
)
(1,280.2
)
Total stockholders' equity
1,480.3
1,485.5
Total liabilities and stockholders'
equity
$
2,819.4
$
2,819.4
Hexcel Corporation and
Subsidiaries
Condensed Consolidated Statements of
Cash Flows
Unaudited
Six Months Ended
June 30,
(In millions)
2022
2021
Cash flows from operating
activities
Net income (loss)
$
62.5
$
(11.8
)
Reconciliation to net cash used for
operating activities:
Depreciation and amortization
63.9
68.7
Amortization related to financing
0.4
2.1
Deferred income taxes
(4.1
)
(10.7
)
Equity in (earnings) losses from
affiliated companies
(3.7
)
1.7
Stock-based compensation
12.8
13.3
Merger and restructuring expenses, net of
payments
(6.0
)
(2.5
)
Gain on sale of assets
(19.4
)
-
Gain on sale of investments
(0.3
)
-
Changes in assets and liabilities:
Increase in accounts receivable
(74.5
)
(45.9
)
Increase in inventories
(38.9
)
(21.8
)
Increase in prepaid expenses and other
current assets
(10.1
)
(2.6
)
Increase in accounts payable/accrued
liabilities
28.4
50.7
Other - net
7.3
(2.3
)
Net cash provided by operating activities
(a)
18.3
38.9
Cash flows from investing
activities
Capital expenditures (b)
(37.9
)
(9.2
)
Proceeds from sale of assets
21.2
-
Proceeds from sale of investments
0.5
-
Net cash used for investing activities
(16.2
)
(9.2
)
Cash flows from financing
activities
Borrowings from senior unsecured credit
facilities
35.0
-
Repayments of senior unsecured credit
facilities
(46.0
)
(21.0
)
Repayment of finance lease obligation and
other debt, net
(0.2
)
(0.4
)
Dividends paid
(16.8
)
-
Activity under stock plans
1.4
4.8
Net cash used for financing activities
(26.6
)
(16.6
)
Effect of exchange rate changes on cash
and cash equivalents
(4.0
)
(1.1
)
Net (decrease) increase in cash and cash
equivalents
(28.5
)
12.0
Cash and cash equivalents at beginning of
period
127.7
103.3
Cash and cash equivalents at end of
period
$
99.2
$
115.3
Supplemental data:
Free Cash Flow (a)+(b)
$
(19.6
)
$
29.7
Accrual basis additions to property, plant
and equipment
$
28.3
$
7.8
Hexcel Corporation and
Subsidiaries
Net Sales to Third-Party Customers by
Market
Quarters Ended June 30, 2022 and
2021
Unaudited
Table A
(In millions)
As Reported
Constant Currency (a)
B/(W)
FX
B/(W)
Market
2022
2021
%
Effect (b)
2021
%
Commercial Aerospace
$
227.6
$
153.7
48.1
$
(1.5
)
$
152.2
49.5
Space & Defense
111.9
106.9
4.7
(2.3
)
104.6
7.0
Industrial
53.5
59.7
(10.4
)
(4.3
)
55.4
(3.5
)
Consolidated Total
$
393.0
$
320.3
22.7
$
(8.1
)
$
312.2
25.9
Consolidated % of Net Sales
%
%
%
Commercial Aerospace
57.9
48.0
48.8
Space & Defense
28.5
33.4
33.5
Industrial
13.6
18.6
17.7
Consolidated Total
100.0
100.0
100.0
Six Months Ended June 30, 2022 and
2021
Unaudited
(In millions)
As Reported
Constant Currency (a)
B/(W)
FX
B/(W)
Market
2022
2021
%
Effect (b)
2021
%
Commercial Aerospace
$
446.5
$
301.3
48.2
$
(2.0
)
$
299.3
49.2
Space & Defense
230.1
218.6
5.3
(3.5
)
215.1
7.0
Industrial
107.0
110.7
(3.3
)
(6.4
)
104.3
2.6
Consolidated Total
$
783.6
$
630.6
24.3
$
(11.9
)
$
618.7
26.7
Consolidated % of Net Sales
%
%
%
Commercial Aerospace
57.0
47.8
48.4
Space & Defense
29.4
34.7
34.8
Industrial
13.6
17.5
16.8
Consolidated Total
100.0
100.0
100.0
(a) To assist in the analysis of the Company’s net sales trend,
total net sales and sales by market for the quarter and six months
ended June 30, 2021 have been estimated using the same U.S. dollar,
British pound and Euro exchange rates as applied for the respective
periods in 2022 and are referred to as “constant currency” sales.
(b) FX effect is the estimated impact on “as reported” net sales
due to changes in foreign currency exchange rates.
Hexcel Corporation and
Subsidiaries
Segment Information
Unaudited
Table B
(In millions)
Composite Materials
Engineered Products
Corporate & Other
(a)
Total
Second Quarter 2022
Net sales to external customers
$
318.1
$
74.9
$
-
$
393.0
Intersegment sales
18.5
1.0
(19.5
)
-
Total sales
336.6
75.9
(19.5
)
393.0
Other operating expense (income)
0.3
-
(19.4
)
(19.1
)
Operating income
47.2
9.1
7.5
63.8
% Operating margin
14.0
%
12.0
%
16.2
%
Depreciation and amortization
28.1
3.5
0.1
31.7
Stock-based compensation expense
0.9
0.3
1.2
2.4
Accrual based additions to capital
expenditures
14.5
2.7
-
17.2
Second Quarter 2021
Net sales to external customers
$
240.9
$
79.4
$
-
$
320.3
Intersegment sales
14.6
0.8
(15.4
)
-
Total sales
255.5
80.2
(15.4
)
320.3
Other operating expense
2.8
0.2
0.1
3.1
Operating income (loss)
24.5
5.9
(14.2
)
16.2
% Operating margin
9.6
%
7.4
%
5.1
%
Depreciation and amortization
30.5
3.6
0.1
34.2
Stock-based compensation expense
0.8
0.1
3.4
4.3
Accrual based additions to capital
expenditures
3.4
0.4
-
3.8
First Six Months 2022
Net sales to external customers
$
631.9
$
151.7
$
-
$
783.6
Intersegment sales
35.0
1.3
(36.3
)
-
Total sales
666.9
153.0
(36.3
)
783.6
Other operating expense (income)
1.2
0.1
(19.4
)
(18.1
)
Operating income (loss)
89.8
19.7
(15.6
)
93.9
% Operating margin
13.5
%
12.9
%
12.0
%
Depreciation and amortization
56.7
7.1
0.1
63.9
Stock-based compensation expense
3.5
1.0
8.3
12.8
Accrual based additions to capital
expenditures
24.6
3.7
-
28.3
First Six Months 2021
Net sales to external customers
$
478.1
$
152.5
$
-
$
630.6
Intersegment sales
27.8
1.4
(29.2
)
-
Total sales
505.9
153.9
(29.2
)
630.6
Other operating expense
15.5
(0.5
)
0.2
15.2
Operating income (loss)
31.9
10.6
(36.5
)
6.0
% Operating margin
6.3
%
6.9
%
0.9
%
Depreciation and amortization
61.3
7.3
0.1
68.7
Stock-based compensation expense
1.4
0.3
11.6
13.3
Accrual based additions to capital
expenditures
7.0
0.8
-
7.8
(a) Hexcel does not allocate corporate
expenses to the operating segments.
Hexcel Corporation and
Subsidiaries
Reconciliation of GAAP to Non-GAAP
Operating Income, Net Income (Loss), EPS and Operating Cash Flow to
Free Cash Flow
Table C
Unaudited
Quarters Ended
Six Months Ended
June 30,
June 30,
(In millions)
2022
2021
2022
2021
GAAP operating income
$
63.8
$
16.2
$
93.9
$
6.0
Other operating (income) expense (a)
(19.1
)
3.1
(18.1
)
15.2
Non-GAAP operating income
$
44.7
$
19.3
$
75.8
$
21.2
Unaudited
Quarters Ended June 30,
2022
2021
(In millions, except per diluted share
data)
Net Income
EPS
Net Income
EPS
GAAP
$
44.7
$
0.53
$
2.2
$
0.03
Other operating (income) expense, net of
tax (a)
(16.3
)
(0.20
)
2.2
0.02
Other income
(0.3
)
-
-
-
Tax expense (b)
-
-
2.7
0.03
Non-GAAP
$
28.1
$
0.33
$
7.1
$
0.08
Unaudited
Six Months Ended June 30,
2022
2021
(In millions, except per diluted share
data)
Net Income
EPS
Net Loss
EPS
GAAP
$
62.5
$
0.74
$
(11.8
)
$
(0.14
)
Other operating (income) expense (a)
(15.5
)
(0.19
)
11.0
0.13
Other income
(0.3
)
-
-
-
Tax (benefit) (b)
-
-
(0.5
)
(0.01
)
Non-GAAP
$
46.7
$
0.55
$
(1.3
)
$
(0.02
)
Unaudited
Six Months Ended June 30
(In millions)
2022
2021
Net cash used for operating activities
$
18.3
$
38.9
Less: Capital expenditures
(37.9
)
(9.2
)
Free cash flow (non-GAAP)
$
(19.6
)
$
29.7
(a) The quarter and six months ended June 30, 2022 included the
net gain of $19.4 million from the sale of the Dublin, California
facility, partially offset by restructuring costs. The quarter and
six months ended June 30, 2021 includes restructuring costs. (b)
The quarter ended June 30, 2021 included a discrete tax charge of
$2.7 million related to the remeasurement of the net deferred tax
liability in a foreign jurisdiction as a result of a change in tax
rate. The six month ended June 30, 2021 also included a discrete
tax benefit from the revaluation of deferred tax liabilities
related to a favorable U.S. state tax law change.
NOTE: Management believes that adjusted operating income
(loss), adjusted net income (loss), adjusted diluted net income
(loss) per share, the adjusted tax rate, and free cash flow, which
are non-GAAP measures, are meaningful to investors because they
provide a view of Hexcel with respect to the underlying operating
results excluding special items. Special items represent
significant charges or credits that are important to an
understanding of Hexcel’s overall operating results in the periods
presented. Non-GAAP measurements are not recognized in accordance
with generally accepted accounting principles and should not be
viewed as an alternative to GAAP measures of performance.
Hexcel Corporation and
Subsidiaries
Schedule of Total Debt, Net of
Cash
Table D
Unaudited
June 30,
December 31,
June 30,
(In millions)
2022
2021
2021
Current portion finance lease
$
0.5
$
0.9
$
0.9
Total current debt
0.5
0.9
0.9
Senior unsecured credit facility
114.0
125.0
207.0
4.7% senior notes due 2025
300.0
300.0
300.0
3.95% senior notes due 2027
400.0
400.0
400.0
Senior notes original issue discounts
(1.1
)
(1.2
)
(1.3
)
Senior notes deferred financing costs
(2.5
)
(2.9
)
(3.2
)
Other debt
1.6
1.5
2.0
Total long-term debt
812.0
822.4
904.5
Total Debt
812.5
823.3
905.4
Less: Cash and cash equivalents
(99.2
)
(127.7
)
(115.3
)
Total debt, net of cash
$
713.3
$
695.6
$
790.1
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220725005639/en/
Kurt Goddard | Vice President Investor Relations |
Kurt.Goddard@Hexcel.com | +1 (203)-352-6826
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