- Full Earnings Release and Filing of 10-Q Delayed Pending
Completion of Auditor's Review
- Expects to Report Total Revenues of $1.521 Billion, Up 13% y/y, with Strong Operating
Performance Excluding Charges
- Expects to Record 2Q Pre-tax Charge Ranging Between
$350-$400 Million Related to
Gulfstream Programs
- Initiates Process to Divest Oklahoma Sites
- Company Will Host Management Call as Previously Scheduled at
10:00 AM Central / 11:00 AM Eastern on Tuesday, August 6, 2013
WICHITA,
Kan., Aug. 6, 2013 /CNW/ - 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.