WICHITA, Kan., Aug. 6, 2013 /PRNewswire/ -- Spirit
AeroSystems Holdings, Inc. (NYSE: SPR) announced today the company
will postpone the second quarter earnings release and filing its
quarterly report on Form 10-Q. Related to the second quarter
financial statements, the company's auditors have not completed
their review. The company will file a notice on Form 12b-25 with
the SEC to report the delayed filing and plans to reschedule a full
earnings report once the review is complete.
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Spirit expects to report that second quarter 2013 revenues were
$1.521 billion, up 13% from
$1.341 billion for the same period of
2012, driven by higher production volumes and non-production
revenues. Total operating performance also improved year over year
excluding charges while backlog increased by $2 billion to $38
billion.
Additionally, the company expects to record between a
$350 million to $400 million pre-tax
charge related primarily to the Gulfstream business jet programs.
The charge is primarily related to forecasted cost growth in the
Wing segment in the years 2014-2021 with minimal cash flow impact
in the current period. Excluding the charge, the company expects to
report second quarter 2013 financial results reflecting continued
strong demand for large commercial aircraft and strong mature
program operating performance.
Also today, Spirit announced the initiation of a process to
divest its Oklahoma
operations1 which includes sites in Tulsa, OK and McAlester, OK as part of the broader strategic
and financial review announced by the company in May of
2013.
To address the charges in the quarter, the company has amended
its senior secured loan and credit facility to suspend the existing
financial covenants through the fourth quarter of 2014, after
which time the financial covenants will again apply. During
this period, the company will be subject to a liquidity covenant
and any draws under the revolving credit facility will be subject
to borrowing base limitations. No event of default has
occurred.
Management will host a call regarding the strategic rationale
for the announced Oklahoma
divestiture with analyst Q&A at 10:00AM Central / 11:00
AM Eastern on Tuesday, August 6,
2013. This call will be broadcast online. The live audio
stream can be accessed on Tuesday, August 6,
2013, at http://www.spiritaero.com/investor.aspx.
There will be regular earnings release call concurrent with a
full earnings release announcement at a date to be announced.
1 As part of initiating the process to divest the
Oklahoma sites, Spirit has engaged
the services of an investment banker to represent the
company.
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 of Boeing's B787; and 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 successfully negotiate new pricing under
our main supply agreement with Boeing; 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; our ability to sell our
Oklahoma sites for a price
acceptable to us; 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 any
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 and Quarterly Reports on Form 10-Q. The financial
information in this release is preliminary and subject to the
results of the auditor's review described above.
On the web: www.spiritaero.com
About Spirit AeroSystems, Inc.
Spirit AeroSystems, with headquarters in Wichita, Kan., USA, is one of the world's
largest non-OEM designers and manufacturers of aerostructures for
commercial aircraft. In addition to its Wichita and Chanute facilities in Kansas, Spirit has locations in Tulsa and McAlester,
Okla.; Kinston, N.C.;
Nashville, Tenn.; Prestwick,
Scotland; Preston, England; Subang, Malaysia; and Saint-Nazaire, France. In the U.S., Spirit's core products
include fuselages, pylons, nacelles and wing components.
Additionally, Spirit provides aftermarket customer support
services, including spare parts, maintenance/repair/overhaul, and
fleet support services in North
America, Europe and
Asia. Spirit Europe produces wing components for a host of
customers, including Airbus.
SOURCE Spirit AeroSystems, Inc.