WICHITA, Kan., Aug. 2, 2012 /PRNewswire/ -- Spirit
AeroSystems Holdings, Inc. [NYSE: SPR] reported second quarter 2012
financial results reflecting solid core operating performance,
continued strong demand for large commercial aircraft, and the
impact of unusual charges. Spirit's second quarter 2012 revenues
were $1.341 billion, down from
$1.466 billion for the same period of
2011 as the previous period included recognition of deferred
revenue associated with the 787 program contract amendment.
Table
1. Summary Financial Results (unaudited)
|
|
|
|
|
|
2nd
Quarter
|
|
Six
Months
|
|
|
($ in
millions, except per share data)
|
2012
|
2011
|
Change
|
2012
|
2011
|
Change
|
|
|
|
|
|
|
|
|
|
Revenues
|
$1,341
|
$1,466
|
(9%)
|
$2,607
|
$2,515
|
4%
|
|
Operating Income
|
$83
|
$64
|
30%
|
$205
|
$133
|
54%
|
|
Operating Income as a % of Revenues
|
6.2%
|
4.3%
|
190 BPS
|
7.9%
|
5.3%
|
260 BPS
|
|
Net
Income
|
$35
|
$30
|
16%
|
$109
|
$65
|
68%
|
|
Net
Income as a % of Revenues
|
2.6%
|
2.1%
|
50 BPS
|
4.2%
|
2.6%
|
160 BPS
|
|
Earnings per Share (Fully Diluted)
|
$0.24
|
$0.21
|
14%
|
$0.76
|
$0.45
|
69%
|
|
Fully
Diluted Weighted Avg Share Count
|
142.7
|
142.3
|
|
142.6
|
142.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income was $83 million,
compared to $64 million for the same
period in 2011, driven by increased production volume. In the
quarter, as previously announced, the company recognized a pre-tax
($55) million, or ($0.26) per share, charge for expenses related to
the April 14, 2012 severe weather
event at its Wichita, KS facility.
The company also recognized a pre-tax ($7)
million, or ($0.03) per share,
additional forward-loss on the A350 non-recurring wing program. In
comparison, the second quarter of 2011 operating income included a
pre-tax ($53) million additional
forward-loss on the Gulfstream G280 wing program.
Net income for the quarter was $35
million, or $0.24 per fully
diluted share, compared to $30
million, or $0.21 per fully
diluted share, in the same period of 2011. Current quarter includes
a previously announced pre-tax ($10)
million, or ($0.05) per share,
charge related to the unamortized deferred financing fees
associated with refinancing its senior secured credit facilities
and a higher effective tax rate. (Table 1)
"During the quarter, our large commercial aircraft deliveries
increased by 12 percent over the second quarter of 2011, reflecting
the strong ongoing demand for aircraft worldwide," said President
and Chief Executive Officer Jeff
Turner.
"We were also pleased that the Spirit team and our partners
successfully restored production through extraordinary effort and
teamwork after the severe weather event on April 14, minimizing the impact to our
customers," Turner continued.
"Overall, this quarter exemplifies how Spirit AeroSystems is
well positioned to meet the demand for large aircraft as we are
focused on continued reliability, capability, and teamwork to align
the business for long-term value creation," Turner
concluded.
Spirit's backlog at the end of the second quarter of 2012 was
over $32 billion. Spirit calculates
its backlog based on current contractual prices for products and
volumes from the published firm order backlogs of Airbus and
Boeing, along with firm orders from other customers.
Spirit updated its contract profitability estimates during the
second quarter of 2012, resulting in a net pre-tax $6 million, or $0.03 per share, favorable cumulative catch-up
adjustment driven by core program productivity and efficiency.
Additionally, the company realized a pre-tax ($7) million, or ($0.03) per share, additional forward-loss on the
A350 non-recurring wing program due to engineering cost growth.
In comparison, Spirit recognized a net pre-tax $6 million favorable cumulative catch-up
adjustment and a pre-tax ($53)
million, or ($0.26) per share,
forward-loss charge in the second quarter of 2011.
Cash flow from operations was a $121
million source of cash for the second quarter of 2012,
compared to a $114 million use of
cash for the second quarter of 2011. The current quarter
reflects insurance cash advances of $105
million associated with the severe weather event and an
additional $50 million customer
advance associated with a customer agreement on the A350 fuselage
program, partially offset by higher cash tax and the timing of
accounts receivable and accounts payable. The customer advance is
expected to be repaid at a rate of $1.25
million per ship set delivery. (Table 2)
Excluding the $50 million unused
portion of the $105 million insurance
cash advance and the $50 million
customer advance payment, cash flow from operations was a
$21 million source of cash in the
quarter, which is a $135 million
improvement, compared to second quarter 2011.
Table
2. Cash Flow and Liquidity
|
|
|
|
|
2nd
Quarter
|
Six
Months
|
($ in
millions)
|
2012
|
2011
|
2012
|
2011
|
|
|
|
|
|
Cash
Flow from Operations
|
$121
|
($114)
|
$133
|
($242)
|
Purchases of Property, Plant &
Equipment
|
($50)
|
($43)
|
($104)
|
($84)
|
|
|
|
|
|
|
|
|
June
28,
|
December 31,
|
Liquidity
|
|
|
2012
|
2011
|
|
|
|
|
|
Cash*
|
|
|
$180
|
$178
|
Total
Debt
|
|
|
$1,178
|
$1,201
|
|
|
|
|
|
|
|
|
|
|
*During
the 2nd quarter of 2012, Spirit received $105 million of insurance
cash advances related to the April 14th severe weather event
of which $50 million remained unused at June 28,
2012
|
|
|
Cash balances at the end of the quarter were $180 million and debt balances were $1,178 million. The company utilized its credit
line during the quarter as it continued to invest in development
programs, and fully repaid the borrowing by the end of the
quarter. Approximately $19.9
million of the credit facility is reserved for financial
letters of credit.
On April 18, 2012, the company
completed a $1.2 billion refinancing
of its senior secured credit facilities that include a new
$650 million revolving credit
facility maturing in April 2017 and a
new $550 million term loan maturing
in April 2019. As a result of this
refinancing, the company's debt maturities now consist of
$300 million of unsecured notes
maturing in 2017; the new $550
million senior secured term loan maturing in 2019; and
$300 million of unsecured notes
maturing in 2020.
The company's credit rating was affirmed (BB) and placed on
positive outlook by Standard & Poor's during the quarter and
remained unchanged by Moody's Investor Services (Ba2, positive
outlook) at the end of the quarter.
Financial Outlook
On April 14, 2012, during a severe
weather event, Spirit's Wichita,
Kansas facility was hit with an EF3 tornado, which caused
significant damage to many buildings, disrupted utilities and
resulted in an eight day suspension of operations. The total
insurance claim associated with this event is currently estimated
to be approximately $400 million. The
company continues to work with insurers to determine the applicable
deductibles related to property damage and expense items and is not
able to reasonably estimate at this time the recovery of costs or
predict the ultimate outcome of the insurance settlements.
The following guidance excludes the impact of this severe
weather event:
Spirit's revenue guidance remains unchanged for the full-year
2012 and is expected to be between $5.2 and
$5.4 billion based on Boeing's 2012 delivery guidance
of approximately 585 to 600 aircraft; expected B787 ship set
deliveries; expected Airbus deliveries in 2012 of approximately 580
aircraft; internal Spirit forecasts for other customer production
activities; expected non-production revenues; and foreign exchange
rates consistent with those in the first half of 2012.
Fully diluted earnings per share guidance for 2012 remains
unchanged and is expected to be between $2.00-$2.15.
Guidance for cash flow from operations, less capital
expenditures, remains unchanged and is expected to be greater than
$50 million in the aggregate,
excluding customer and insurance cash advances, with capital
expenditures of approximately $250 million.
The 2012 forecasted tax rate is expected to be between 31 and 32
percent assuming the U.S. Research Tax Credit is extended. (Table
3)
Risk to our financial guidance includes, among other factors:
787 delivery volumes; higher than forecast non-recurring and
recurring costs on our development programs; commercial settlements
with customers; mid-range business jet market risks; and our
ability to achieve anticipated productivity and cost improvements.
You should review carefully the sections captioned "Risk Factors"
in our 2011 Form 10-K filed with the Securities and Exchange
Commission on February 23, 2012 and
our first quarter 2012 Form 10-Q filed May
4, 2012 for a more complete discussion of these and
other factors that may affect our business.
Table
3. Financial Outlook
|
|
2011
Actual
|
|
2012
Guidance
|
|
|
|
|
|
|
|
Revenues
|
|
$4.9 billion
|
|
$5.2 -
$5.4 billion
|
|
|
|
|
|
|
|
Earnings Per Share (Fully Diluted)
|
|
$1.35
|
|
$2.00 -
$2.15
|
|
|
|
|
|
|
|
Effective Tax Rate
|
|
31.0%
|
|
31% -
32%*
|
|
|
|
|
|
|
|
Cash
Flow from Operations
|
|
($47) million
|
|
>$300 million**
|
|
|
|
|
|
|
|
Capital
Expenditures
|
|
$250 million
|
|
~$250
million
|
|
|
|
|
|
|
|
*Effective tax rate guidance, among other factors,
assumes the benefit attributable to the extension of the U.S.
Research Tax Credit (Assumes ~1.0% benefit)
**Excludes customer and insurance advance
payments
|
Cautionary Statement Regarding Forward-Looking
Statements
This press release contains "forward-looking statements" that
may involve many risks and uncertainties. Forward-looking
statements reflect our current expectations or forecasts of future
events. Forward-looking statements generally can be identified by
the use of forward-looking terminology such as "may," "will,"
"should," "expect," "anticipate," "intend," "estimate," "believe,"
"project," "continue," "plan," "forecast," or other similar words,
or the negative thereof, unless the context requires otherwise.
These statements reflect management's current views with respect to
future events and are subject to risks and uncertainties, both
known and unknown. Our actual results may vary materially from
those anticipated in forward-looking statements. We caution
investors not to place undue reliance on any forward-looking
statements. Important factors that could cause actual results to
differ materially from those reflected in such forward-looking
statements and that should be considered in evaluating our outlook
include, but are not limited to, the following: our ability to
continue to grow our business and execute our growth strategy,
including the timing, execution and profitability of new programs;
our ability to perform our obligations and manage costs related to
our new commercial and business aircraft development programs and
the related recurring production; margin pressures and the
potential for additional forward-losses on aircraft development
programs; our ability to accommodate, and the cost of
accommodating, announced increases in the build rates of certain
aircraft, including, but not limited to, the Boeing B737, B747,
B767 and B777 programs, and the Airbus A320 and A380 programs; the
effect on business and commercial aircraft demand and build rates
of the following factors: continuing weakness in the global economy
and economic challenges facing commercial airlines, a lack of
business and consumer confidence, and the impact of continuing
instability in global financial and credit markets, including, but
not limited to, any failure to avert a sovereign debt crisis
in Europe; customer cancellations
or deferrals as a result of global economic uncertainty; the
success and timely execution of key milestones such as deliveries
of Boeing's B787 and first flight, certification and first delivery
of Airbus' A350 XWB, receipt of necessary regulatory approvals, and
customer adherence to their announced schedules; our ability to
enter into profitable supply arrangements with additional
customers; the ability of all parties to satisfy their performance
requirements under existing supply contracts with Boeing and
Airbus, our two major customers, and other customers and the risk
of nonpayment by such customers; any adverse impact on Boeing's and
Airbus' production of aircraft resulting from cancellations,
deferrals or reduced orders by their customers or from labor
disputes or acts of terrorism; any adverse impact on the demand for
air travel or our operations from the outbreak of diseases or
epidemic or pandemic outbreaks; returns on pension plan assets and
the impact of future discount rate changes on pension obligations;
our ability to borrow additional funds or refinance debt;
competition from original equipment manufacturers and other
aerostructures suppliers; the effect of governmental laws, such as
U.S. export control laws and U.S. and foreign anti-bribery laws
such as the Foreign Corrupt Practices Act and United Kingdom
Bribery Act, and environmental laws and agency regulations, both in
the U.S. and abroad; the cost and availability of raw materials and
purchased components; our ability to successfully extend or
renegotiate our primary collective bargaining contracts with our
labor unions; our ability to recruit and retain highly skilled
employees and our relationships with the unions representing many
of our employees; spending by the U.S. and other governments on
defense; the possibility that our cash flows and borrowing
facilities may not be adequate for our additional capital needs or
for payment of interest on and principal of our indebtedness; our
exposure under our existing senior secured revolving credit
facility to higher interest payments should interest rates increase
substantially; the effectiveness of our interest rate and foreign
currency hedging programs; the outcome or impact of ongoing or
future litigation, claims and regulatory actions; our exposure to
potential product liability and warranty claims; and the accuracy
and completeness of our initial assessment of the damage from the
tornado that hit our Wichita, KS
facility on April 14, 2012, and
availability of insurance to cover expected losses. These factors
are not exhaustive and it is not possible for us to predict all
factors that could cause actual results to differ materially from
those reflected in our forward-looking statements. These
factors speak only as of the date hereof, and new factors may
emerge or changes to the foregoing factors may occur that could
impact our business. As with any projection or forecast, these
statements are inherently susceptible to uncertainty and changes in
circumstances. Except to the extent required by law, we undertake
no obligation to, and expressly disclaim any obligation to,
publicly update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise. You
should review carefully the sections captioned "Risk Factors" in
our 2011 Form 10-K filed with the Securities and Exchange
Commission on February 23, 2012 and
our first quarter 2012 Form 10-Q filed May
4, 2012 for a more complete discussion of these and
other factors that may affect our business.
Appendix
Segment Results
Fuselage Systems
Fuselage Systems segment revenues for the second quarter of 2012
were $627 million, down 19 percent
from the same period last year, as the previous period included
recognition of deferred revenue associated with the 787 program
contract amendment. Operating margin for the second quarter
of 2012 was 15.0 percent as compared to 12.3 percent during the
same period of 2011. In the second quarter of 2012 the segment
recorded a net pre-tax $1 million
favorable cumulative catch-up adjustment driven by productivity and
efficiency on core programs. In comparison, the segment realized a
net pre-tax $6 million favorable
cumulative catch-up adjustment in the second quarter of 2011.
Propulsion Systems
Propulsion Systems segment revenues for the second quarter of
2012 were $351 million, up 11 percent
from the same period last year, largely driven by higher production
volumes and increased aftermarket volumes. Operating
margin for the second quarter of 2012 was 16.0 percent as compared
to 15.2 percent in the second quarter of 2011. In the second
quarter of 2012 the segment realized a net pre-tax $2 million favorable cumulative catch-up
adjustment associated with productivity and efficiency on core
programs. In comparison, the segment realized a net pre-tax
$4 million favorable cumulative
catch-up adjustment in the second quarter of 2011.
Wing Systems
Wing Systems segment revenues for the second quarter of 2012
were $359 million, down 4 percent
from the same period last year, as the previous period included
recognition of deferred revenue associated with the 787 program
contract amendment. Operating margin for the second quarter of 2012
was 7.7 percent as compared to (8.4) percent during the same period
of 2011. In the second quarter the segment recorded a net pre-tax
$3 million favorable cumulative
catch-up adjustment driven by productivity and efficiency on core
programs and a pre-tax ($7) million
additional forward-loss on the A350 non-recurring wing program due
to engineering cost growth. In comparison, the segment realized a
pre-tax ($4) million unfavorable
cumulative catch-up adjustment and a pre-tax ($53) million forward-loss charge in the second
quarter of 2011.
|
|
|
Table
4. Segment Reporting
|
(unaudited)
|
(unaudited)
|
|
2nd
Quarter
|
Six
Months
|
($ in
millions)
|
2012
|
2011
|
Change
|
2012
|
2011
|
Change
|
|
|
|
|
|
|
|
Segment
Revenues
|
|
|
|
|
|
|
Fuselage Systems
|
$627.4
|
$773.1
|
(18.8%)
|
$1,250.0
|
$1,301.1
|
(3.9%)
|
Propulsion Systems
|
$351.2
|
$317.7
|
10.5%
|
$695.2
|
$590.7
|
17.7%
|
Wing Systems
|
$358.6
|
$372.5
|
(3.7%)
|
$655.2
|
$617.4
|
6.1%
|
All Other
|
$3.8
|
$2.3
|
|
$6.4
|
$6.0
|
|
Total
Segment Revenues
|
$1,341.0
|
$1,465.6
|
(8.5%)
|
$2,606.8
|
$2,515.2
|
3.6%
|
|
|
|
|
|
|
|
Segment
Earnings from Operations
|
|
|
|
|
|
|
Fuselage Systems
|
$94.1
|
$95.1
|
(1.1%)
|
$181.0
|
$142.1
|
27.4%
|
Propulsion Systems
|
$56.1
|
$48.2
|
16.4%
|
$113.7
|
$89.0
|
27.8%
|
Wing Systems
|
$27.6
|
($31.2)
|
188.5%
|
$48.0
|
($13.8)
|
447.8%
|
All Other
|
$0.8
|
$0.5
|
|
$1.0
|
$0.5
|
|
Total
Segment Operating Earnings
|
$178.6
|
$112.6
|
58.6%
|
$343.7
|
$217.8
|
57.8%
|
|
|
|
|
|
|
|
Unallocated Corporate SG&A Expense
|
($33.3)
|
($37.6)
|
(11.4%)
|
($74.0)
|
($72.7)
|
1.8%
|
Unallocated Impact From Severe Weather Event
Expense
|
($54.5)
|
$0.0
|
|
($54.5)
|
$0.0
|
|
Unallocated Research & Development
Expense
|
($1.3)
|
($0.5)
|
160.0%
|
($2.4)
|
($1.0)
|
140.0%
|
Unallocated Cost of Sales(1)
|
($7.0)
|
($10.9)
|
(35.8%)
|
($8.0)
|
($10.9)
|
(26.6%)
|
Total
Earnings from Operations
|
$82.5
|
$63.6
|
29.7%
|
$204.8
|
$133.2
|
53.8%
|
|
|
|
|
|
|
|
Segment
Operating Earnings as % of Revenues
|
|
|
|
|
|
|
Fuselage Systems
|
15.0%
|
12.3%
|
270
BPS
|
14.5%
|
10.9%
|
360 BPS
|
Propulsion Systems
|
16.0%
|
15.2%
|
80
BPS
|
16.4%
|
15.1%
|
130 BPS
|
Wing Systems
|
7.7%
|
(8.4%)
|
1,610 BPS
|
7.3%
|
(2.2%)
|
950 BPS
|
All Other
|
21.1%
|
21.7%
|
|
15.6%
|
8.3%
|
|
Total
Segment Operating Earnings as % of Revenues
|
13.3%
|
7.7%
|
560 BPS
|
13.2%
|
8.7%
|
450 BPS
|
|
|
|
|
|
|
|
Total
Operating Earnings as % of Revenues
|
6.2%
|
4.3%
|
190
BPS
|
7.9%
|
5.3%
|
260 BPS
|
|
|
|
|
|
|
|
(1)
|
Charges
in the second quarter 2012 are associated with UAW stock
compensation, Early Retirement incentives and asset impairment
charges; compared to charges in the second quarter 2011 which were
associated with a change in estimate for warranty and extraordinary
rework reserves and the UAW Early Retirement Incentive in
connection with the ratification of their ten-year labor
contract.
|
On the web: http://www.spiritaero.com
Spirit
Ship Set Deliveries
|
(One
Ship Set equals One Aircraft)
|
|
|
|
|
|
|
2011
Spirit AeroSystems Deliveries
|
|
|
1st
Qtr
|
2nd
Qtr
|
3rd
Qtr
|
4th
Qtr
|
Total
2011
|
B737
|
93
|
97
|
95
|
92
|
377
|
B747
|
4
|
3
|
4
|
6
|
17
|
B767
|
5
|
6
|
6
|
6
|
23
|
B777
|
16
|
22
|
21
|
19
|
78
|
B787
|
6
|
7
|
5
|
7
|
25
|
Total
|
124
|
135
|
131
|
130
|
520
|
|
|
|
|
|
|
A320
Family
|
103
|
91
|
103
|
106
|
403
|
A330/340
|
18
|
26
|
24
|
25
|
93
|
A350
|
-
|
-
|
-
|
-
|
-
|
A380
|
6
|
5
|
7
|
6
|
24
|
Total
|
127
|
122
|
134
|
137
|
520
|
|
|
|
|
|
|
Business/Regional Jet
|
10
|
13
|
12
|
14
|
49
|
|
|
|
|
|
|
Total
Spirit
|
261
|
270
|
277
|
281
|
1,089
|
|
|
|
|
|
|
|
|
|
|
|
|
2012
Spirit AeroSystems Deliveries
|
|
|
1st
Qtr
|
2nd
Qtr
|
3rd
Qtr
|
4th
Qtr
|
YTD
2012
|
B737
|
105
|
105
|
|
|
210
|
B747
|
5
|
6
|
|
|
11
|
B767
|
7
|
6
|
|
|
13
|
B777
|
21
|
21
|
|
|
42
|
B787
|
8
|
11
|
|
|
19
|
Total
|
146
|
149
|
|
|
295
|
|
|
|
|
|
|
A320
Family
|
112
|
109
|
|
|
221
|
A330/340
|
25
|
24
|
|
|
49
|
A350
|
1
|
-
|
|
|
1
|
A380
|
7
|
6
|
|
|
13
|
Total
|
145
|
139
|
|
|
284
|
|
|
|
|
|
|
Business/Regional Jet
|
12
|
19
|
|
|
31
|
|
|
|
|
|
|
Total
Spirit
|
303
|
307
|
|
|
610
|
|
|
|
|
|
|
Spirit
AeroSystems Holdings, Inc.
|
Condensed Consolidated Statements of
Operations
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
For the
Three Months Ended
|
|
For the
Six Months Ended
|
|
|
|
June
28, 2012
|
|
June
30, 2011
|
|
June
28, 2012
|
|
June
30, 2011
|
|
|
($ in
millions, except per share data)
|
|
|
|
|
|
|
|
|
|
|
Net
revenues
|
$
|
1,341.0
|
$
|
1,465.6
|
$
|
2,606.8
|
$
|
2,515.2
|
Operating
costs and expenses:
|
|
|
|
|
|
|
|
|
Cost of
sales
|
|
1,156.8
|
|
1,354.6
|
|
2,247.9
|
|
2,282.6
|
Selling,
general and administrative
|
|
40.3
|
|
41.1
|
|
85.3
|
|
80.1
|
Impact
from severe weather event
|
|
54.5
|
|
-
|
|
54.5
|
|
-
|
Research
and development
|
|
6.9
|
|
6.3
|
|
14.3
|
|
19.3
|
|
Total
operating costs and expenses
|
|
1,258.5
|
|
1,402.0
|
|
2,402.0
|
|
2,382.0
|
|
Operating income
|
|
82.5
|
|
63.6
|
|
204.8
|
|
133.2
|
Interest
expense and financing fee amortization
|
|
(28.1)
|
|
(21.7)
|
|
(46.4)
|
|
(42.6)
|
Interest
income
|
|
0.1
|
|
0.1
|
|
0.1
|
|
0.2
|
Other
income (expense), net
|
|
(4.2)
|
|
0.1
|
|
(0.7)
|
|
1.6
|
|
Income
before income taxes and equity in net loss of
affiliate
|
|
50.3
|
|
42.1
|
|
157.8
|
|
92.4
|
Income tax
provision
|
|
(15.3)
|
|
(11.9)
|
|
(48.9)
|
|
(27.2)
|
|
Income
before equity in net loss of affiliate
|
|
35.0
|
|
30.2
|
|
108.9
|
|
65.2
|
Equity in
net loss of affiliate
|
|
(0.1)
|
|
(0.1)
|
|
(0.4)
|
|
(0.5)
|
|
Net
income
|
$
|
34.9
|
$
|
30.1
|
$
|
108.5
|
$
|
64.7
|
|
|
|
|
|
|
|
|
|
|
Earnings
per share
|
|
|
|
|
|
|
|
|
Basic
|
$
|
0.25
|
$
|
0.21
|
$
|
0.76
|
$
|
0.46
|
Shares
|
|
139.9
|
|
139.2
|
|
139.7
|
|
138.9
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
$
|
0.24
|
$
|
0.21
|
$
|
0.76
|
$
|
0.45
|
Shares
|
|
142.7
|
|
142.3
|
|
142.6
|
|
142.4
|
|
|
|
|
|
|
|
|
|
|
Spirit
AeroSystems Holdings, Inc.
|
Condensed Consolidated Balance
Sheets
|
(unaudited)
|
|
|
June
28, 2012
|
|
December 31, 2011
|
|
|
($ in
millions)
|
Current
assets
|
|
|
|
|
Cash and
cash equivalents
|
$
|
180.1
|
$
|
177.8
|
Accounts
receivable, net
|
|
470.2
|
|
267.2
|
Inventory,
net
|
|
2,800.8
|
|
2,630.9
|
Other
current assets
|
|
100.9
|
|
79.9
|
Total current
assets
|
|
3,552.0
|
|
3,155.8
|
Property,
plant and equipment, net
|
|
1,623.3
|
|
1,615.7
|
Pension
assets
|
|
131.8
|
|
118.8
|
Other
assets
|
|
134.5
|
|
152.1
|
Total assets
|
$
|
5,441.6
|
$
|
5,042.4
|
Current
liabilities
|
|
|
|
|
Accounts
payable
|
$
|
600.1
|
$
|
559.4
|
Accrued
expenses
|
|
337.1
|
|
224.3
|
Current
portion of long-term debt
|
|
10.4
|
|
48.9
|
Advance
payments, short-term
|
|
50.4
|
|
8.8
|
Deferred
revenue, short-term
|
|
11.5
|
|
28.5
|
Other
current liabilities
|
|
12.7
|
|
43.6
|
Total current
liabilities
|
|
1,022.2
|
|
913.5
|
Long-term
debt
|
|
1,167.9
|
|
1,152.0
|
Advance
payments, long-term
|
|
812.2
|
|
655.9
|
Deferred
revenue and other deferred credits
|
|
32.3
|
|
34.7
|
Pension/OPEB obligation
|
|
87.5
|
|
84.2
|
Other
liabilities
|
|
235.3
|
|
237.4
|
Equity
|
|
|
|
|
Preferred
stock, par value $0.01, 10,000,000 shares authorized, no
shares issued
|
|
-
|
|
-
|
Common
stock, Class A par value $0.01, 200,000,000 shares
authorized, 119,493,563 and 118,560,926 issued,
respectively
|
|
1.2
|
|
1.2
|
Common
stock, Class B par value $0.01, 150,000,000 shares
authorized, 24,173,999 and 24,304,717 shares issued,
respectively
|
|
0.2
|
|
0.2
|
Additional
paid-in capital
|
|
1,005.4
|
|
995.9
|
Accumulated other comprehensive loss
|
|
(124.7)
|
|
(126.2)
|
Retained
earnings
|
|
1,201.6
|
|
1,093.1
|
Total shareholders'
equity
|
|
2,083.7
|
|
1,964.2
|
Noncontrolling interest
|
|
0.5
|
|
0.5
|
Total equity
|
|
2,084.2
|
|
1,964.7
|
Total liabilities and
equity
|
$
|
5,441.6
|
$
|
5,042.4
|
|
|
|
|
|
Spirit
AeroSystems Holdings, Inc.
|
Condensed Consolidated Statements of Cash
Flows
|
(unaudited)
|
|
|
|
|
|
|
|
For the
Six Months Ended
|
|
|
June
28, 2012
|
|
June
30, 2011
|
|
|
($ in
millions)
|
Operating activities
|
|
|
|
|
Net
income
|
$
|
108.5
|
$
|
64.7
|
Adjustments to reconcile net income to net cash (used
in) operating activities
|
|
|
|
|
Depreciation
expense
|
|
77.4
|
|
64.4
|
Amortization
expense
|
|
14.4
|
|
7.0
|
Accretion of customer supply
agreement
|
|
0.1
|
|
-
|
Employee stock compensation
expense
|
|
8.6
|
|
5.2
|
Excess tax benefits from
share-based payment arrangements
|
|
(1.1)
|
|
(1.2)
|
Loss on disposition of
assets
|
|
3.6
|
|
-
|
Loss from discontinued hedge
accounting on interest rate swaps
|
|
2.2
|
|
-
|
(Gain) on effectiveness of
hedge contracts
|
|
(0.1)
|
|
-
|
(Gain) from foreign currency
transactions
|
|
(0.2)
|
|
(1.0)
|
Deferred
taxes
|
|
4.5
|
|
0.7
|
Long-term tax
provision
|
|
0.8
|
|
2.2
|
Pension and other
post-retirement benefits, net
|
|
(4.7)
|
|
(5.0)
|
Grant income
|
|
(2.5)
|
|
(2.6)
|
Equity in net loss of
affiliate
|
|
0.4
|
|
0.5
|
Changes in
assets and liabilities
|
|
|
|
|
Accounts
receivable
|
|
(202.1)
|
|
(143.6)
|
Inventory, net
|
|
(171.7)
|
|
75.6
|
Accounts payable and accrued
liabilities
|
|
56.5
|
|
(14.4)
|
Advance payments
|
|
197.9
|
|
(125.9)
|
Deferred revenue and other
deferred credits
|
|
(18.5)
|
|
(255.0)
|
Insurance advances for
severe weather related expenses
|
|
105.0
|
|
-
|
Other
|
|
(46.2)
|
|
86.5
|
Net
cash (used in) provided by operating activities
|
|
132.8
|
|
(241.9)
|
Investing activities
|
|
|
|
|
Purchase
of property, plant and equipment
|
|
(103.8)
|
|
(84.4)
|
Other
|
|
0.4
|
|
0.4
|
Net
cash (used in) investing activities
|
|
(103.4)
|
|
(84.0)
|
Financing activities
|
|
|
|
|
Proceeds
from revolving credit facility
|
|
170.0
|
|
-
|
Payments
on revolving credit facility
|
|
(170.0)
|
|
-
|
Proceeds
from issuance of debt
|
|
547.3
|
|
-
|
Principal
payments of debt
|
|
(564.3)
|
|
(4.1)
|
Debt
issuance and financing costs
|
|
(11.3)
|
|
-
|
Excess tax
benefits from share-based payment arrangements
|
|
1.1
|
|
1.2
|
Net
cash (used in) provided by financing
activities
|
|
(27.2)
|
|
(2.9)
|
Effect of
exchange rate changes on cash and cash equivalents
|
|
0.1
|
|
1.3
|
Net
decrease in cash and cash equivalents for the period
|
|
2.3
|
|
(327.5)
|
Cash and
cash equivalents, beginning of the period
|
|
177.8
|
|
481.6
|
Cash and
cash equivalents, end of the period
|
$
|
180.1
|
$
|
154.1
|
|
|
|
|
|
|
SOURCE Spirit AeroSystems Holdings, Inc.