Fourth Quarter 2012
- Revenues of $1.426 billion
- Operating Income of $98 million,
after development program charges
- Fully-Diluted Earnings Per Share of $0.43
Full-Year 2012
- Revenues of $5.398 billion
- Operating Income of $92 million,
after development program charges and benefit of insurance
settlement
- Fully-Diluted Earnings Per Share of $0.24
- Total backlog of over $35
billion
Financial Guidance for Full-Year 2013
WICHITA, Kan., Feb. 12, 2013 /CNW/ - Spirit AeroSystems
Holdings, Inc. (NYSE: SPR) reported fourth quarter and full-year
2012 financial results reflecting record revenue on higher ship set
deliveries and solid core program operating performance.
Spirit's fourth quarter 2012 revenues were $1.426 billion, up from $1.219 billion for the same period of 2011 as the
company benefited from higher production deliveries during the
quarter.
Table 1. Summary
Financial Results (unaudited)
|
|
|
|
|
|
4th Quarter
|
|
Twelve Months
|
|
|
($ in millions, except
per share data)
|
2012
|
2011
|
Change
|
2012
|
2011
|
Change
|
|
|
|
|
|
|
|
|
|
Revenues
|
$1,426
|
$1,219
|
17%
|
$5,398
|
$4,864
|
11%
|
|
Operating Income
|
$98
|
$102
|
(4%)
|
$92
|
$356
|
(74%)
|
|
Operating Income as a %
of Revenues
|
6.9%
|
8.4%
|
(150) BPS
|
1.7%
|
7.3%
|
(560) BPS
|
|
Net Income
|
$61
|
$60
|
2%
|
$35
|
$192
|
(82%)
|
|
Net Income as a % of
Revenues
|
4.3%
|
5.0%
|
(70) BPS
|
0.6%
|
4.0%
|
(340) BPS
|
Earnings Per Share
(Fully Diluted)
|
$0.43
|
$0.42
|
2%
|
$0.24
|
$1.35
|
(82%)
|
|
Fully Diluted Weighted
Avg Share Count
|
142.7
|
142.3
|
|
142.7
|
142.3
|
|
|
|
|
|
|
|
|
|
|
|
|
*
|
Non-GAAP financial measure,
see Appendix for reconciliation
|
Operating income for the fourth quarter of 2012 was $98 million including a net pre-tax $34 million forward loss associated with
development and low rate programs. Net income for the quarter was
$61 million, or $0.43 per fully diluted share, compared to
$60 million, or $0.42 per fully diluted share, in the same period
of 2011. The current quarter includes a net pre-tax $34 million, or ($0.19) per share, of forward loss charges
principally on development programs.
Revenue for the full-year 2012 increased 11 percent to
$5.398 billion. Operating income for
the full-year was $92 million,
significantly lower compared to 2011 due primarily to development
program charges of $645 million,
which was partially offset by the net insurance gain of
$146 million related to the severe
weather event at Spirit's Wichita,
Kan. facility in April 2012.
Full-year net income was $35 million,
or $0.24 per fully diluted share,
compared to $192 million, or
$1.35 per fully diluted share in
2011. (Table 1)
After adjusting for forward losses and certain other items,
adjusted operating income for the full-year 2012 was $556 million, 21 percent higher compared to 2011
adjusted operating income of $460
million, primarily due to increased production volumes.
After adjusting for forward losses and certain other items,
full-year 2012 adjusted earnings per share was $2.30 per fully diluted share, compared to 2011
adjusted earnings per share of $1.85
per fully diluted share.*
"Spirit's strong core business performance in 2012 continues to
deliver the results we expect," said President and Chief Executive
Officer Jeff Turner. "Annual
revenues increased to record levels reflecting higher demand and
increased production rates for our core products even while we
recovered from an EF3 tornado at our Wichita, KS facility. Our development program
performance in 2012 underscores the complexity of our business as
we transitioned multiple programs to full rate production after
over seven years of concurrent development and delivered initial
production units on the A350 XWB," Turner continued.
"Our primary goal in 2013 is to continuously improve operational
and cost performance across the business and manage the risk
profile of development programs," Turner concluded.
Spirit's backlog at the end of the fourth quarter of 2012
increased by over 4 percent to $35
billion as orders exceeded deliveries. Spirit calculates its
backlog based on 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
fourth quarter of 2012, resulting in a net pre-tax $10 million, or $0.06 per share, favorable cumulative catch-up
adjustment primarily associated with productivity and efficiency
improvements on core programs. In comparison, Spirit recognized a
net pre-tax $21 million favorable
cumulative catch-up adjustment for the fourth quarter of 2011.
Additionally, in the fourth quarter of 2012 the company recorded
forward loss charges on the G280 program of an additional pre-tax
($20) million, or ($0.11) per share driven by cost growth in the
quarter and a total of ($14) million,
or ($0.08) per share on low volume
large commercial programs driven by model mix and program
performance.
Cash flow from operations was a $309
million source of cash for the fourth quarter of 2012,
compared to a $128 million source of
cash for the fourth quarter of 2011. The current quarter reflects
net insurance proceeds of approximately $112
million associated with the severe weather event at Spirit's
Wichita, Kan. facility in
April 2012 and the timing of accounts
receivable and accounts payable. (Table 2)
Table 2. Cash Flow and
Liquidity (unaudited)
|
|
|
|
|
4th Quarter
|
Twelve Months
|
($ in millions)
|
2012
|
2011
|
2012
|
2011
|
|
|
|
|
|
Cash Flow from
Operations
|
$309
|
$128
|
$544
|
($47)
|
Purchases of Property,
Plant & Equipment**
|
($79)
|
($86)
|
($249)
|
($250)
|
|
|
|
|
|
|
|
|
December 31,
|
December 31,
|
Liquidity
|
|
|
2012
|
2011
|
|
|
|
|
|
Cash
|
|
|
$441
|
$178
|
Total Debt
|
|
|
$1,176
|
$1,201
|
**Purchases of Property,
Plant & Equipment includes purchases related to the April 14th,
2012 severe weather event
|
Cash balances at the end of the year were $441 million, up $263
million from a year ago, reflecting the net insurance
proceeds and customer cash advances, offset by the increase in
inventory associated with increased production rates and continuing
investments in development programs. At the end of 2012, the
company's $650 million revolving
credit facility was undrawn. Approximately $20 million of the credit facility is reserved
for financial letters of credit. Debt balances at the end of the
fourth quarter were $1.176
billion.
The company's credit rating remained unchanged at the end of the
fourth quarter 2012 with a BB rating, stable outlook by Standard
& Poor's and a Ba2 rating, negative outlook by Moody's Investor
Services.
Financial Outlook
Spirit revenue guidance for the full-year 2013 remains unchanged
and is expected to be between $5.8 –
$6.0 billion based on Boeing's 2013
delivery guidance of 635 to 645 aircraft; expected B787 ship set
deliveries; expected Airbus deliveries in 2013 of approximately 600
aircraft; internal Spirit forecasts for other customer production
activities; expected non-production revenues; and foreign exchange
rates consistent with those in the second half of 2012.
Fully diluted earnings per share guidance for 2013 is unchanged
and expected to be between $1.90 -
$2.10 per share, reflecting continued growth and solid
execution in core programs and transitioning development programs
to full rate of production. Fully-diluted earnings per share
guidance for 2013 excluding severe weather adjustments is expected
to be between $2.20 - $2.40.*
Cash flow from operations, less capital expenditures, is
expected to be between a net outflow of ($150) million to ($50)
million, after capital expenditures of approximately
$400 million, including approximately
$50 million of expense included in
cash from operations and approximately $50
million of capital expenditures related to the severe
weather event.
The effective tax rate for 2013 is forecasted to be
approximately 31 percent, reflecting the benefit of research tax
credits for 2012 and 2013. (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; 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
filings with the Securities and Exchange Commission, including our
most recent Annual Report on Form 10-K, Quarterly Reports on Form
10-Q, and Current Reports on Form 8-K.
* Non-GAAP financial measure, see Appendix for
reconciliation
Table 3. Financial
Outlook
|
3Q Updated Full-Year
Guidance
|
|
2012 Actual
|
|
2013 Guidance
|
|
|
|
|
|
|
Revenues
|
$5.2 - $5.3
billion
|
|
$5.4 billion
|
|
$5.8 - $6.0
billion
|
|
|
|
|
|
|
Earnings Per Share
(Fully Diluted)
|
$0.19 - $0.24
|
|
$0.24
|
|
$1.90 - $2.10
|
|
|
|
|
|
|
Effective Tax
Rate
|
N/M(1)
|
|
(211.4%)
|
|
~31%
|
|
|
|
|
|
|
Cash Flow from
Operations
|
$500 - $600
million
|
|
$544 million
|
|
$250 - $350
million
|
|
|
|
|
|
|
Capital
Expenditures
|
~$250 million
|
|
$249 million
|
|
~$400 million
|
|
|
|
|
|
|
Table 4. Severe Weather
Adjustments to Financial Outlook
|
3Q Updated Full-Year
Guidance
|
|
2012 Actual
|
|
2013 Guidance
|
|
|
|
|
|
|
Revenues
|
-
|
|
-
|
|
-
|
|
|
|
|
|
|
Earnings (Loss) Per
Share (Fully Diluted)
|
($0.62)(2)
|
|
($0.65)(2)
|
|
$0.30(2)
|
|
|
|
|
|
|
Effective Tax
Rate
|
-
|
|
36.3%
|
|
-
|
|
|
|
|
|
|
Cash Flow from
Operations
|
($100) million
|
|
($146) million
|
|
$50 million
|
|
|
|
|
|
|
Capital
Expenditures
|
-
|
|
($13) million
|
|
($50 million)
|
|
|
|
|
|
|
Table 5. Financial
Outlook Excluding Severe Weather Adjustments
|
3Q Updated Full-Year
Guidance
|
|
2012 Actual
|
|
2013 Guidance
|
|
|
|
|
|
|
Revenues
|
$5.2 - $5.3
billion
|
|
$5.4 billion
|
|
$5.8 - $6.0
billion
|
|
|
|
|
|
|
Earnings (Loss) Per
Share (Fully Diluted)
|
($0.43) -
($0.38)(2)
|
|
($0.41)(2)
|
|
$2.20 -
$2.40(2)
|
|
|
|
|
|
|
Effective Tax
Rate
|
N/M(1)
|
|
57.3%
|
|
~31.0%
|
|
|
|
|
|
|
Cash Flow from
Operations
|
$400 - $500
million
|
|
$398 million
|
|
$300 - $400
million
|
|
|
|
|
|
|
Capital
Expenditures
|
~$250 million
|
|
$236 million
|
|
~$350 million
|
|
|
|
|
|
|
(1)
|
Spirit did not provide an
effective tax rate due to the sensitivity of the annual effective
tax rate estimate to even minimal changes to forecasted fourth
quarter pre-tax earnings.
|
|
|
(2)
|
Non-GAAP financial measure,
see Appendix for reconciliation
|
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; 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 and resumption of service of Boeing's B787; and
first flight, certification and first delivery of Airbus' A350 XWB
aircraft program, 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 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 or completeness of our assessment of
damage and costs of restoration and recovery from the severe
weather event that hit our Wichita,
Kan. facility on April 14,
2012. 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. Additional information concerning these
and other factors can be found in our filings with the Securities
and Exchange Commission, including our most recent Annual Report on
Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on
Form 8-K.
Appendix
Segment Results
Fuselage Systems
Fuselage Systems segment revenues for the fourth quarter of 2012
were $680 million, up 17 percent from
the same period last year, driven by increased production volumes.
Operating margin for the fourth quarter of 2012 was 13.6 percent as
compared to 16.6 percent during the same period of 2011. In the
fourth quarter of 2012 the segment recorded a net pre-tax
$5 million favorable cumulative
catch-up adjustment driven by productivity and efficiency on core
programs, and a pre-tax additional forward loss of ($6) million on the 747-8 program driven by
program performance. In comparison, in the fourth quarter of 2011
the segment realized a net pre-tax $17
million favorable cumulative catch-up adjustment, and a
pre-tax ($12) million forward loss on
the 747-8 program.
Propulsion Systems
Propulsion Systems segment revenues for the fourth quarter of
2012 were $368 million, up 14 percent
from the same period last year, largely driven by higher production
volumes and increased aftermarket volumes. Operating margin for the
fourth quarter of 2012 was 13.0 percent as compared to 16.3 percent
in the fourth quarter of 2011. In the fourth quarter of 2012 the
segment realized a net pre-tax ($1)
million unfavorable cumulative catch-up adjustment and a
pre-tax ($8) million forward loss on
the 767 program driven by model mix. In comparison, in the fourth
quarter of 2011 the segment realized a net pre-tax $6 million favorable cumulative catch-up
adjustment.
Wing Systems
Wing Systems segment revenues for the fourth quarter of 2012
were $375 million, up 20 percent from
the same period last year, primarily driven by increased production
volumes. Operating margin for the fourth quarter of 2012 was 5.2
percent as compared to (2.6) percent during the same period of
2011. In the fourth quarter of 2012 the segment realized a net
pre-tax $6 million favorable
cumulative catch-up adjustment driven by productivity and
efficiency improvements on core programs, and an additional pre-tax
($20) million forward loss on the
G280 wing program driven by cost growth in the quarter. In
comparison, in the fourth quarter of 2011 the segment recorded a
net pre-tax ($2) million unfavorable
cumulative catch-up adjustment, a pre-tax ($29) million additional forward loss on the G280
program, a pre-tax ($6) million
forward loss on the 747-8 program, and a pre-tax ($3) million forward loss on the A350
non-recurring wing program.
Table 6. Segment
Reporting
|
(unaudited)
|
(unaudited)
|
|
4th Quarter
|
Twelve Months
|
($ in millions)
|
2012
|
2011
|
Change
|
2012
|
2011
|
Change
|
|
|
|
|
|
|
|
Segment Revenues
|
|
|
|
|
|
|
Fuselage Systems
|
$680.2
|
$582.3
|
16.8%
|
$2,590.6
|
$2,425.0
|
6.8%
|
Propulsion Systems
|
$368.1
|
$321.7
|
14.4%
|
$1,420.9
|
$1,221.5
|
16.3%
|
Wing Systems
|
$375.3
|
$313.6
|
19.7%
|
$1,375.1
|
$1,207.8
|
13.9%
|
All Other
|
$2.0
|
$1.3
|
53.8%
|
$11.1
|
$9.5
|
16.8%
|
Total Segment
Revenues
|
$1,425.6
|
$1,218.9
|
17.0%
|
$5,397.7
|
$4,863.8
|
11.0%
|
|
|
|
|
|
|
|
Segment Earnings from
Operations
|
|
|
|
|
|
|
Fuselage Systems
|
$92.5
|
$96.8
|
(4.4%)
|
$387.2
|
$318.5
|
21.6%
|
Propulsion Systems
|
$47.9
|
$52.3
|
(8.4%)
|
$64.7
|
$194.1
|
(66.7%)
|
Wing Systems
|
$19.6
|
($8.3)
|
|
($339.1)
|
$0.5
|
|
All Other
|
($0.2)
|
($0.5)
|
60.0%
|
$1.0
|
$1.3
|
(23.1%)
|
Total Segment Operating
Earnings
|
$159.8
|
$140.3
|
13.9%
|
$113.8
|
$514.4
|
(77.9%)
|
|
|
|
|
|
|
|
Unallocated Corporate
SG&A Expense
|
($42.7)
|
($37.7)
|
13.3%
|
($155.3)
|
($145.5)
|
6.7%
|
Unallocated Impact From
Severe Weather Event Expense
|
($18.1)
|
$0.0
|
|
$146.2
|
$0.0
|
|
Unallocated Research &
Development Expense
|
($1.0)
|
($0.2)
|
400.0%
|
($4.4)
|
($1.9)
|
131.6%
|
Unallocated Cost of
Sales(1)
|
$0.0
|
$0.0
|
|
($8.0)
|
($10.9)
|
(26.6%)
|
Total Earnings from
Operations
|
$98.0
|
$102.4
|
(4.3%)
|
$92.3
|
$356.1
|
(74.1%)
|
|
|
|
|
|
|
|
Segment Operating
Earnings as % of Revenues
|
|
|
|
|
|
|
Fuselage Systems
|
13.6%
|
16.6%
|
(300) BPS
|
14.9%
|
13.1%
|
180 BPS
|
Propulsion Systems
|
13.0%
|
16.3%
|
(330) BPS
|
4.6%
|
15.9%
|
(1,130) BPS
|
Wing Systems
|
5.2%
|
(2.6%)
|
780 BPS
|
(24.7%)
|
0.0%
|
(2,470) BPS
|
All Other
|
(10.0%)
|
(38.5%)
|
2,850 BPS
|
9.0%
|
13.7%
|
(470) BPS
|
Total Segment Operating
Earnings as % of Revenues
|
11.2%
|
11.5%
|
(30) BPS
|
2.1%
|
10.6%
|
(850) BPS
|
|
|
|
|
|
|
|
Total Operating Earnings
as % of Revenues
|
6.9%
|
8.4%
|
(150) BPS
|
1.7%
|
7.3%
|
(560) BPS
|
|
|
|
|
|
|
|
(1)
|
Charges in 2012 are
associated with UAW stock compensation, Early Retirement incentives
and asset impairment charges; compared to charges in 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.
|
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
|
Total 2012
|
B737
|
105
|
105
|
107
|
100
|
417
|
B747
|
5
|
6
|
7
|
6
|
24
|
B767
|
7
|
6
|
6
|
6
|
25
|
B777
|
21
|
21
|
22
|
22
|
86
|
B787
|
8
|
11
|
9
|
15
|
43
|
Total
|
146
|
149
|
151
|
149
|
595
|
|
|
|
|
|
|
A320 Family
|
112
|
109
|
103
|
113
|
437
|
A330/340
|
25
|
24
|
26
|
22
|
97
|
A350
|
1
|
-
|
1
|
1
|
3
|
A380
|
7
|
6
|
3
|
8
|
24
|
Total
|
145
|
139
|
133
|
144
|
561
|
|
|
|
|
|
|
Business/Regional Jet
|
12
|
19
|
27
|
26
|
84
|
|
|
|
|
|
|
Total Spirit
|
303
|
307
|
311
|
319
|
1,240
|
|
|
|
|
|
|
|
|
|
|
Spirit AeroSystems
Holdings, Inc.
|
Condensed Consolidated
Statements of Operations
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended
|
|
For the Twelve Months
Ended
|
|
|
|
December 31,
2012
|
|
December 31,
2011
|
|
December 31,
2012
|
|
December 31,
2011
|
|
|
($ in millions, except
per share data)
|
|
|
|
|
|
|
|
|
|
|
Net revenues
|
$
|
1,425.6
|
$
|
1,218.9
|
$
|
5,397.7
|
$
|
4,863.8
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
|
Cost of sales
|
|
1,250.7
|
|
1,066.5
|
|
5,245.3
|
|
4,312.1
|
Selling, general and
administrative
|
|
46.3
|
|
41.4
|
|
172.2
|
|
159.9
|
Impact from severe weather
event
|
|
18.1
|
|
0.0
|
|
(146.2)
|
|
0.0
|
Research and
development
|
|
12.5
|
|
8.6
|
|
34.1
|
|
35.7
|
|
Total operating costs
and expenses
|
|
1,327.6
|
|
1,116.5
|
|
5,305.4
|
|
4,507.7
|
|
Operating income
|
|
98.0
|
|
102.4
|
|
92.3
|
|
356.1
|
Interest expense and
financing fee amortization
|
|
(20.3)
|
|
(15.9)
|
|
(82.9)
|
|
(77.5)
|
Interest income
|
|
0.1
|
|
0.1
|
|
0.2
|
|
0.3
|
Other income (expense),
net
|
|
(1.6)
|
|
1.4
|
|
1.8
|
|
1.4
|
|
Income before income
taxes and equity in net loss of affiliate
|
|
76.2
|
|
88.0
|
|
11.4
|
|
280.3
|
Income tax provision
|
|
(15.3)
|
|
(27.3)
|
|
24.1
|
|
(86.9)
|
|
Income before equity in
net loss of affiliate
|
|
60.9
|
|
60.7
|
|
35.5
|
|
193.4
|
Equity in net loss of
affiliate
|
|
(0.2)
|
|
(0.3)
|
|
(0.7)
|
|
(1.0)
|
|
Net income
|
$
|
60.7
|
$
|
60.4
|
$
|
34.8
|
$
|
192.4
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
|
|
|
|
|
|
|
|
|
Basic
|
$
|
0.43
|
$
|
0.43
|
$
|
0.24
|
$
|
1.36
|
Shares
|
|
140.9
|
|
139.4
|
|
140.7
|
|
139.2
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
$
|
0.43
|
$
|
0.42
|
$
|
0.24
|
$
|
1.35
|
Shares
|
|
142.7
|
|
142.3
|
|
142.7
|
|
142.3
|
|
|
|
|
|
Spirit AeroSystems
Holdings, Inc.
|
Condensed Consolidated
Balance Sheets
|
(unaudited)
|
|
|
December 31,
2012
|
|
December 31,
2011
|
|
|
($ in millions)
|
Current assets
|
|
|
|
|
Cash and cash
equivalents
|
$
|
440.7
|
$
|
177.8
|
Accounts receivable,
net
|
|
420.7
|
|
267.2
|
Inventory, net
|
|
2,410.8
|
|
2,630.9
|
Other current assets
|
|
83.2
|
|
79.9
|
Total current assets
|
|
3,355.4
|
|
3,155.8
|
Property, plant and
equipment, net
|
|
1,698.5
|
|
1,615.7
|
Pension assets
|
|
78.4
|
|
118.8
|
Other assets
|
|
283.0
|
|
152.1
|
Total assets
|
$
|
5,415.3
|
$
|
5,042.4
|
Current
liabilities
|
|
|
|
|
Accounts payable
|
$
|
659.0
|
$
|
559.4
|
Accrued expenses
|
|
216.3
|
|
224.3
|
Current portion of
long-term debt
|
|
10.3
|
|
48.9
|
Advance payments,
short-term
|
|
70.7
|
|
8.8
|
Deferred revenue,
short-term
|
|
18.4
|
|
28.5
|
Other current
liabilities
|
|
92.3
|
|
43.6
|
Total current
liabilities
|
|
1,067.0
|
|
913.5
|
Long-term debt
|
|
1,165.9
|
|
1,152.0
|
Advance payments,
long-term
|
|
833.6
|
|
655.9
|
Deferred revenue and other
deferred credits
|
|
30.8
|
|
34.7
|
Pension/OPEB obligation
|
|
75.6
|
|
84.2
|
Other liabilities
|
|
245.5
|
|
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, 119,671,298 and
118,560,926 issued, respectively
|
|
1.2
|
|
1.2
|
Common stock, Class B par
value $0.01, 150,000,000 shares authorized, 24,025,880 and
24,304,717 shares issued, respectively
|
|
0.2
|
|
0.2
|
Additional paid-in
capital
|
|
1,012.3
|
|
995.9
|
Accumulated other
comprehensive loss
|
|
(145.2)
|
|
(126.2)
|
Retained earnings
|
|
1,127.9
|
|
1,093.1
|
Total shareholders'
equity
|
|
1,996.4
|
|
1,964.2
|
Noncontrolling interest
|
|
0.5
|
|
0.5
|
Total equity
|
|
1,996.9
|
|
1,964.7
|
Total liabilities and
equity
|
$
|
5,415.3
|
$
|
5,042.4
|
Spirit AeroSystems
Holdings, Inc.
|
Condensed Consolidated
Statements of Cash Flows
|
(unaudited)
|
|
|
|
|
|
|
|
For the Twelve Months
Ended
|
|
|
December 31,
2012
|
|
December 31,
2011
|
|
|
($ in millions)
|
Operating
activities
|
|
|
|
|
Net income
|
$
|
34.8
|
$
|
192.4
|
Adjustments to reconcile
net income to net cash (used in) provided by operating
activities
|
|
|
|
Depreciation expense
|
|
151.1
|
|
129.2
|
Amortization expense
|
|
19.7
|
|
10.5
|
Accretion of customer
supply agreement
|
|
0.2
|
|
-
|
Employee stock compensation
expense
|
|
15.3
|
|
11.2
|
Bad Debt Expense
|
|
-
|
|
1.4
|
Excess tax benefits from
share-based payment arrangements
|
(1.2)
|
|
(1.3)
|
Loss on disposition of
assets
|
|
14.1
|
|
1.0
|
Loss from discontinued
hedge accounting on interest rate swaps
|
5.2
|
|
-
|
(Gain) on effectiveness of
hedge contracts
|
|
(1.5)
|
|
-
|
(Gain) / Loss from foreign
currency transactions
|
|
(5.6)
|
|
1.0
|
Deferred taxes
|
|
(120.1)
|
|
21.6
|
Long-term tax provision
|
|
3.6
|
|
(6.1)
|
Pension and other
post-retirement benefits, net
|
|
(8.9)
|
|
(9.6)
|
Grant income
|
|
(5.8)
|
|
(5.4)
|
Equity in net loss of
affiliate
|
|
0.7
|
|
1.0
|
Changes in assets and
liabilities
|
|
|
|
|
Accounts receivable
|
|
(151.1)
|
|
(66.3)
|
Inventory, net
|
|
228.3
|
|
(121.6)
|
Accounts payable and
accrued liabilities
|
|
114.5
|
|
100.6
|
Advance payments
|
|
239.6
|
|
(159.9)
|
Deferred revenue and other
deferred credits
|
|
(12.4)
|
|
(265.9)
|
Other
|
|
23.9
|
|
118.9
|
Net cash (used in)
provided by operating activities
|
|
544.4
|
|
(47.3)
|
Investing activities
|
|
|
|
|
Purchase of property, plant
and equipment
|
|
(236.1)
|
|
(249.7)
|
Purchase of property, plant
and equipment - severe weather related expenses
|
|
(12.9)
|
|
-
|
Other
|
|
0.2
|
|
0.5
|
Net cash (used in)
investing activities
|
|
(248.8)
|
|
(249.2)
|
Financing activities
|
|
|
|
|
Proceeds from revolving
credit facility
|
|
170.0
|
|
30.0
|
Payments on revolving
credit facility
|
|
(170.0)
|
|
(30.0)
|
Proceeds from issuance of
debt
|
|
547.6
|
|
-
|
Principal payments of
debt
|
|
(571.0)
|
|
(8.0)
|
Debt issuance and financing
costs
|
|
(12.4)
|
|
-
|
Excess tax benefits from
share-based payment arrangements
|
|
1.2
|
|
1.3
|
Net cash (used in)
financing activities
|
|
(34.6)
|
|
(6.7)
|
Effect of exchange rate
changes on cash and cash equivalents
|
|
1.9
|
|
(0.6)
|
Net increase (decrease)
in cash and cash equivalents for the period
|
|
262.9
|
|
(303.8)
|
Cash and cash equivalents,
beginning of the period
|
|
177.8
|
|
481.6
|
Cash and cash equivalents,
end of the period
|
$
|
440.7
|
$
|
177.8
|
Management believes that the non-GAAP (Generally Accepted
Accounting Principles) measures used in this report provide
investors with important perspectives into the company's ongoing
business performance. The company does not intend for the
information to be considered in isolation or as a substitute for
the related GAAP measure. Other companies may define the measure
differently.
|
|
|
|
Adjusted EPS
|
|
|
|
|
|
3Q Updated Full-Year
Guidance
|
2012 Actual
|
2013 Guidance
|
Earnings Per Share
(Fully Diluted)
|
$0.19 - $0.24
|
$0.24
|
$1.90 - $2.10
|
|
|
|
|
Adjustment for Estimated
Severe Weather Impact
|
|
|
|
Severe Weather Impact
Adjustment (in millions)
|
($127.3)
|
($146.2)
|
$59.0
|
Tax Rate Assumed
|
31%
|
36%
|
31%
|
After Tax Severe Weather
Impact Adjustment (in millions)
|
($87.8)
|
($93.1)
|
$40.7
|
Share Count (in
millions)
|
142.9(1)
|
142.7
|
144.1(1)
|
Estimated Severe Weather
Impact
|
~($0.62)
|
($0.65)
|
~$0.30
|
|
|
|
|
Adjusted EPS
|
($0.43) - ($0.38)
|
($0.41)
|
$2.20 - $2.40
|
|
|
|
|
(1)
|
Estimated share count
|
|
|
|
|
|
|
|
Operating Income % of
Revenues Excluding Impact of Forward Losses and Certain Other
Items
|
|
|
|
|
|
2011
|
|
2012
|
Operating Income under
GAAP
|
$ 356.1
|
|
$ 92.3
|
|
|
|
|
Adjustments to Operating
Income:
|
|
|
|
CH-53K Forward-Loss
|
(29.0)
|
|
|
787 Forward-Loss
|
|
|
(184.0)
|
G650 Forward-Loss
|
|
|
(162.5)
|
G280 Forward-Loss
|
(81.8)
|
|
(118.8)
|
BR725 Forward-Loss
|
|
|
(151.0)
|
A350 Non-Recurring
Forward-Loss
|
(3.0)
|
|
(8.9)
|
747-8 Non-Recurring
Forward-Loss
|
(18.3)
|
|
(11.5)
|
767 Forward-Loss
|
|
|
(8.0)
|
Cumulative Catch-Up
Adjustments
|
28.1
|
|
34.7
|
Insurance Settlement
related to Severe Weather Event
|
|
|
146.2
|
Total
Adjustments
|
$(104.0)
|
|
$(463.8)
|
|
|
|
|
Adjusted Operating
Income
|
$ 460.1
|
|
$ 556.1
|
Adjusted Operating
Income % of Revenues
|
9.5%
|
|
10.3%
|
Earnings Per Share
Excluding Impact of Forward Losses and Certain Other Items
|
|
|
Twelve Months Ended
December 31, 2011
|
|
Twelve Months Ended
December 31, 2012
|
|
|
|
|
|
|
|
Earnings Per
Share
|
|
Earnings Per
Share
|
|
|
|
|
|
|
GAAP Diluted Earnings
Per Share
|
$ 1.35
|
|
$ 0.24
|
|
|
|
|
|
|
CH-53K
Forward-Loss
|
$ 0.14
|
a
|
|
|
787 Forward-Loss
|
|
|
$ 0.89
|
b
|
G650
Forward-Loss
|
|
|
$ 0.79
|
c
|
G280
Forward-Loss
|
$ 0.40
|
d
|
$ 0.58
|
e
|
BR725
Forward-Loss
|
|
|
$ 0.73
|
f
|
A350 Non-Recurring
Forward-Loss
|
$ 0.01
|
g
|
$ 0.04
|
h
|
747-8 Non-Recurring
Forward-Loss
|
$ 0.09
|
i
|
$ 0.06
|
j
|
767 Forward-Loss
|
|
|
$ 0.04
|
k
|
Insurance Settlement
related to Severe Weather Event
|
|
|
$ (0.71)
|
l
|
Favorable cumulative
catch-up adjustment
|
$ (0.14)
|
m
|
$ (0.17)
|
n
|
Tax Benefit
Reduction
|
|
|
$ (0.19)
|
o
|
|
|
|
|
|
Earnings Per Share
Excluding Impact of Forward Losses and Certain Other
Items
|
$ 1.85
|
|
$ 2.30
|
|
|
|
|
|
|
a
|
Represents the net earnings
per share impact of CH-53K Forward-Loss charge of $29.0 million.
The earnings per share amount is presented net of income taxes of
31.0 percent.
|
|
EPS Calculation: 29.0mm *
(1 - .31) = 20.01 , 20.01 / 142.3mm Diluted Shares = $0.14
|
|
|
b
|
Represents the net earnings
per share impact of 787 Forward-Loss expense of $184 million. The
earnings per share amount is presented net of income taxes of 31.0
percent.
|
|
EPS Calculation: 184mm * (1
- .31) = 126.96 , 126.96 / 142.7mm Diluted Shares = $0.89
|
|
|
c
|
Represents the net earnings
per share impact of G650 Forward-Loss expense of $163 million. The
earnings per share amount is presented net of income taxes of 31.0
percent.
|
|
EPS Calculation: 163mm * (1
- .31) = 112.47 , 112.47 / 142.7mm Diluted Shares = $0.79
|
|
|
d
|
Represents the net earnings
per share impact of G280 Forward-Loss expense of $82 million. The
earnings per share amount is presented net of income taxes of 31.0
percent.
|
|
EPS Calculation: 82mm * (1
- .31) = 56.58 , 56.58 / 142.3mm Diluted Shares = $0.40
|
|
|
e
|
Represents the net earnings
per share impact of G280 Forward-Loss expense of $119 million. The
earnings per share amount is presented net of income taxes of 31.0
percent.
|
|
EPS Calculation: 119mm * (1
- .31) = 82.11 , 82.11 / 142.7mm Diluted Shares = $0.58
|
|
|
f
|
Represents the net earnings
per share impact of BR725 Forward-Loss expense of $151 million. The
earnings per share amount is presented net of income taxes of 31.0
percent.
|
|
EPS Calculation: 151mm * (1
- .31) = 104.19 , 104.19 / 142.7mm Diluted Shares = $0.73
|
|
|
g
|
Represents the net earnings
per share impact of A350 Non-Recurring forward-loss expense of $3
million. The earnings per share amount is presented net of income
taxes of 31.0 percent.
|
|
EPS Calculation: 3mm * (1 -
.31) = 2.07 , 2.07 / 142.3mm Diluted Shares = $0.01
|
|
|
h
|
Represents the net earnings
per share impact of A350 Non-Recurring forward-loss expense of $9
million. The earnings per share amount is presented net of income
taxes of 31.0 percent.
|
|
EPS Calculation: 9mm * (1 -
.31) = 6.21 , 6.21 / 142.7mm Diluted Shares = $0.04
|
|
|
i
|
Represents the net earnings
per share impact of 747-8 Non-Recurring forward-loss expense of $18
million. The earnings per share amount is presented net of income
taxes of 31.0 percent.
|
|
EPS Calculation: 18mm * (1
- .31) = 12.42 , 12.42 / 142.3mm Diluted Shares = $0.09
|
|
|
j
|
Represents the net earnings
per share impact of 747-8 Non-Recurring forward-loss expense of $12
million. The earnings per share amount is presented net of income
taxes of 31.0 percent.
|
|
EPS Calculation: 12mm * (1
- .31) = 8.28 , 8.28 / 142.7mm Diluted Shares = $0.06
|
k
|
Represents the net earnings
per share impact of 767 Forward-Loss expense of $8 million. The
earnings per share amount is presented net of income taxes of 31.0
percent.
|
|
EPS Calculation: 8mm * (1 -
.31) = 5.52 , 5.52 / 142.7mm Diluted Shares = $0.04
|
|
|
l
|
Represents the net earnings
per share impact of the insurance settlement related to the April
2012 severe weather event less incurred expenses year-to-date of
$146 million. The earnings per share amount is presented net of
income taxes of 31.0 percent. EPS Calculation: 146mm * (1 - .31) =
100.74 , 100.74 / 142.7mm Diluted Shares = $0.71
|
|
|
m
|
Represents the net earnings
per share impact of favorable cumulative catch-up adjustment of $28
million. The earnings per share amount is presented net of income
taxes of 31.0 percent.
|
|
EPS Calculation: 28mm * (1
- .31) = 19.32 , 19.32 / 142.3mm Diluted Shares = $0.14
|
|
|
n
|
Represents the net earnings
per share impact of favorable cumulative catch-up adjustment of $35
million. The earnings per share amount is presented net of income
taxes of 31.0 percent.
|
|
EPS Calculation: 35mm * (1
- .31) = 24.15 , 24.15 / 142.7mm Diluted Shares = $0.17
|
|
|
o
|
Represents the net earnings
per share impact of the tax benefit reduction. EPS Calculation:
(27.63)mm / 142.7mm Diluted Shares = ($0.19)
|
|
|
|
$(27.63)mm represents net
earnings change due to tax rate differences attributable to net
losses driven of 2012 events:
|
|
2012 effective tax rate -
2012 normalized effective tax rate = rate impact from net losses *
2012 earnings before tax = earnings
|
|
((211.4)% - 31.0% =
(242.4)%*$11.4 earnings before taxes = $(27.63))
|
http://www.spiritaero.com
SOURCE Spirit AeroSystems Holdings, Inc.