WICHITA, Kan., Oct. 31, 2014 /PRNewswire/ -- Spirit
AeroSystems Holdings, Inc. [NYSE: SPR] reported third quarter 2014
financial results reflecting continued healthy demand for large
commercial aircraft and strong mature program operating
performance. Spirit's third quarter 2014 revenues were $1.7 billion, up from $1.5
billion for the same period in 2013 on higher
deliveries.
Operating income was $216 million,
up from $51 million for the same
period in 2013. Net income for the quarter was $168 million, or $1.20 per fully diluted share.
Table 1.
Summary Financial Results (unaudited)
|
|
|
|
|
3rd
Quarter
|
|
Nine
Months
|
|
($ in millions,
except per share data)
|
2014
|
2013
|
Change
|
2014
|
2013
|
Change
|
|
|
|
|
|
|
|
Revenues
|
$1,693
|
$1,504
|
13%
|
$5,225
|
$4,467
|
17%
|
Operating Income
(Loss)
|
$216
|
$51
|
324%
|
$627
|
($44)
|
1,525%
|
Operating Income
(Loss) as a % of Revenues
|
12.8%
|
3.4%
|
940
BPS
|
12.0%
|
(1.0%)
|
1,300
BPS
|
Net Income
(Loss)
|
$168
|
$94
|
79%
|
$465
|
($35)
|
1,429%
|
Net Income (Loss)
as a % of Revenues
|
9.9%
|
6.2%
|
370
BPS
|
8.9%
|
(0.8%)
|
970
BPS
|
Earnings (Loss)
Per Share (Fully Diluted)
|
$1.20
|
$0.65
|
85%
|
$3.27
|
($0.24)
|
1,463%
|
Fully Diluted
Weighted Avg Share Count
|
140.0
|
143.4
|
|
142.2
|
141.2
|
|
|
|
|
|
|
|
|
"It has been a good quarter for the industry as aerospace has
seen a number of significant milestones. Boeing announced an
increase in the 737 production rate to an all-time high of 52 per
month beginning in 2018 following a previous announcement of 47 per
month in 2017," said President and Chief Executive Officer
Larry Lawson.
"Another significant highlight this quarter was Airbus'
achievement of two important milestones. These milestones
include type certification of the Airbus A350 by EASA and first
flight of the Airbus A320neo. We would like to congratulate Airbus
on these accomplishments and we are proud to be on the team,"
Lawson continued.
"We are maximizing our internal capabilities more
effectively. This quarter we continued to consolidate our
global engineering resources to have better workforce stability,
improved domain expertise and lower cost. We're in the final stages
of centralizing our procurement activities which is already
yielding improvement in performance and cost," Lawson
continued.
Spirit's backlog grew to a new record of approximately
$44 billion at the end of the third
quarter compared to $41 billion at
the end of the second quarter.
Spirit updated its contract profitability estimates during the
third quarter of 2014 due to improved performance and reduced
risks, resulting in net pre-tax $33
million, or $0.16 per
share#, favorable cumulative catch-up adjustments on
mature programs.
In comparison, the third quarter of 2013 included net pre-tax
charges of ($124) million and net
pre-tax favorable cumulative catch-up adjustments of $28 million.
Free cash flow was a $75 million*
source of cash for the third quarter of 2014, compared to a
$128 million* source of cash for the
third quarter of 2013 reflecting higher cash tax payments,
partially offset by improved operational performance and lower
capital expenditures. Year-to-date free cash flow was a
$194 million* source of cash compared
to a $7 million* source of cash in
2013. (Table 2)
Table 2.
Cash Flow and Liquidity (unaudited)
|
|
|
|
|
3rd
Quarter
|
Nine
Months
|
($ in
millions)
|
2014
|
2013
|
2014
|
2013
|
|
|
|
|
|
Cash Flow from
Operations
|
$119
|
$185
|
$328
|
$199
|
Purchases of
Property, Plant & Equipment
|
($44)
|
($57)
|
($134)
|
($192)
|
Free Cash
Flow*
|
$75
|
$128
|
$194
|
$7
|
|
|
|
|
|
|
|
|
October
2,
|
December
31,
|
Liquidity
|
|
|
2014
|
2013
|
|
|
|
|
|
Cash
|
|
|
$453
|
$421
|
Total
Debt
|
|
|
$1,157
|
$1,167
|
|
|
|
|
|
Cash balances at the end of the quarter were $453 million and debt balances were $1,157 million. At the end of the third
quarter of 2014, the company's $650
million credit facility remained undrawn. The company's
credit rating remained unchanged at the end of the third quarter of
2014.
On August 7, 2014, Spirit, Onex
and certain current and former members of Spirit management entered
into an underwriting agreement for the sale by such stockholders of
8,577,155 shares of Spirit's Class A common stock in a secondary
public offering. Following the completion of the offering, which
closed on August 13, 2014, Onex no
longer owned any shares of the company.
Financial Outlook and Risk to Future Financial
Results
Spirit revenue guidance for the full-year 2014 is expected to be
$6.8 to $6.9 billion based on
Boeing's 2014 projected deliveries of 715 to 725 aircraft;
projected Airbus deliveries in 2014 at a similar level to those in
2013; internal Spirit forecasts for other customer production
activities; and expected non-production revenues.
Fully diluted earnings per share guidance for 2014 is increased
and is expected to be $3.35 to $3.45
per share and does not include the impact of the year-to-date and
potential future adjustments to the deferred tax asset valuation
allowance.
Free cash flow guidance is increased by $25 million and is now expected to be
approximately $275 million* from
previous guidance of $250
million*.
The effective tax rate for 2014 is forecasted to be
approximately 30.0 to 31.0 percent, including the expected benefit
of the U.S. Research Tax Credit for 2014, and excluding any
potential adjustment to the valuation allowance recorded against
the U.S. net deferred tax assets at the end of 2013. (Table 3)
Risks to our financial guidance are described in the Cautionary
Statement Regarding Forward-Looking Statements contained in this
release and in the "Risk Factors" section of our filings with the
Securities and Exchange Commission.
Table 3.
Financial Outlook Updated October 31, 2014
|
Previous
2014 Guidance
|
|
2014
Guidance
|
|
|
|
|
|
Revenues
|
|
$6.7 - $6.9
billion
|
|
$6.8 - $6.9
billion
|
|
|
|
|
|
Earnings Per Share
(Fully Diluted)
|
|
$2.90 -
$3.05
|
|
$3.35 -
$3.45
|
|
|
|
|
|
Effective Tax
Rate**
|
|
~30.0% -
31.0%
|
|
~30.0% -
31.0%
|
|
|
|
|
|
Free Cash
Flow*
|
|
~$250
million
|
|
~$275
million
|
|
|
|
|
|
** Effective
tax rate guidance, among other factors, assumes the benefit
attributable to the extension of the U.S. Research Tax Credit and
does not assume an impact for any potential adjustment to the
valuation allowance recorded against the U.S. net deferred tax
assets at the end of 2013.
|
Segment Results
Fuselage Systems
Fuselage Systems segment revenues in the third quarter of 2014
were $804 million, up from
$710 million for the same period last
year due to higher production deliveries. Operating margin for the
third quarter of 2014 was 17.7 percent as compared to 4.2(1)
(2) percent during the same period of 2013. In the third
quarter of 2014 the segment recorded pre-tax $10 million favorable cumulative catch-up
adjustments on mature programs. In comparison, the segment realized
pre-tax forward loss charges of ($117)
million and pre-tax $20
million favorable cumulative catch-up adjustments in the
third quarter of 2013.
Propulsion Systems
Propulsion Systems segment revenues in the third quarter of 2014
rose to $442 million, from
$389 million for the same period last
year on higher production deliveries. Operating margin for the
third quarter of 2014 was 18.5 percent as compared to 18.8(1)
(2) percent in the third quarter of 2013. In the third
quarter of 2014 the segment realized pre-tax $8 million favorable cumulative catch-up
adjustments on mature programs. In comparison, the segment
reported a pre-tax forward loss charge of ($1) million and pre-tax 4 million favorable
cumulative catch-up adjustments in the third quarter of 2013.
Wing Systems
Wing Systems segment revenues in the third quarter of 2014
increased to $446 million, from
$398 million for the same period last
year on higher production deliveries. Operating margin for the
third quarter of 2014 was 14.1 percent as compared to 9.5 (1)
(2) percent during the same period of 2013. In the third
quarter of 2014 the segment recorded pre-tax $15 million favorable cumulative catch-up
adjustments on mature programs. In comparison, in the third quarter
of 2013 the segment recorded a pre-tax forward loss charge of
($6) million and pre-tax $4 million favorable cumulative catch-up
adjustments.
(1)
|
For the three months
ended September 26, 2013, corporate SG&A of $1.4 million, $1.3
million and $1.9 million was reclassified from segment operating
income for Fuselage, Propulsion, and Wing Systems, respectively, to
conform to current year presentation.
|
(2)
|
For the three months
ended September 26, 2013, research and development of $2.6 million,
$1.7 million and $1.1 million was reclassified from segment
operating income for Fuselage, Propulsion, and Wing Systems,
respectively, to conform to current year presentation.
|
# The
earnings per share amount is presented net of income taxes of
31.0%.
|
* 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: 1) our ability to
continue to grow our business and execute our growth strategy; 2)
our ability to perform our obligations and manage costs related to
our new and maturing programs; 3) margin pressures and the
potential for additional forward losses on new and maturing
programs; 4) our ability to accommodate, and the cost of
accommodating, announced increases in the build rates of certain
aircraft; 5) the effect on business and commercial aircraft demand
and build rates of changing customer preferences, global economic
conditions, and conflicts in the Middle
East or Asia; 6) the
success and timely execution of key milestones, such as
certification and first delivery of Airbus' A350 XWB aircraft,
receipt of necessary regulatory approvals and customer adherence to
their announced schedules; 7) our ability to successfully negotiate
future pricing under our agreements with Boeing, Airbus and our
other customers; 8) our ability to enter into profitable supply
arrangements with additional customers; 9) the ability of all
parties to satisfy their performance requirements under existing
supply contracts with our customers and the risk of nonpayment by
such customers; 10) our ability to secure work for replacement
programs; 11) any adverse impact on Boeing's and Airbus' production
of aircraft; 12) any adverse impact on the demand for air travel or
our operations from the outbreak of diseases or epidemic or
pandemic outbreaks; 13) returns on pension plan assets and the
impact of future discount rate changes on pension obligations; 14)
our ability to borrow additional funds or refinance debt; 15) our
ability to sell all or any portion of our Oklahoma sites on terms acceptable to us; 16)
competition from commercial aerospace original equipment
manufacturers and other aerostructures suppliers; 17) 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; 18) the cost and
availability of raw materials and purchased components; 19) any
reduction in our credit ratings; 20) our ability to recruit and
retain highly skilled employees and our relationships with the
unions representing many of our employees; 21) spending by the U.S.
and other governments on defense; 22) the possibility that our cash
flows and borrowing facilities may not be adequate; 23) our
exposure under our existing senior secured revolving credit
facility to higher interest payments should interest rates increase
substantially; 24) the effectiveness of our interest rate and
hedging programs; 25) the effectiveness of our internal control
over financial reporting; 26) the outcome or impact of ongoing or
future litigation, claims and regulatory actions; and 27) our
exposure to potential product liability and warranty claims. 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.
Appendix
Table 4.
Segment Reporting
|
(unaudited)
|
(unaudited)
|
|
3rd
Quarter
|
Nine
Months
|
($ in
millions)
|
2014
|
2013
|
Change
|
2014
|
2013
|
Change
|
|
|
|
|
|
|
|
Segment
Revenues
|
|
|
|
|
|
|
Fuselage
Systems
|
$804.0
|
$710.3
|
13.2%
|
$2,567.3
|
$2,160.3
|
18.8%
|
Propulsion Systems
|
441.8
|
389.2
|
13.5%
|
1,352.5
|
1,183.1
|
14.3%
|
Wing
Systems
|
446.2
|
397.8
|
12.2%
|
1,298.7
|
1,109.7
|
17.0%
|
All
Other
|
1.0
|
6.4
|
|
6.3
|
13.5
|
|
Total Segment
Revenues
|
$1,693.0
|
$1,503.7
|
12.6%
|
$5,224.8
|
$4,466.6
|
17.0%
|
|
|
|
|
|
|
|
Segment Earnings
(Loss) from Operations
|
|
|
|
|
|
|
Fuselage
Systems
|
$142.4
|
$29.8
|
377.9%
|
$416.6
|
$311.2
|
33.9%
|
Propulsion Systems
|
81.8
|
73.0
|
12.1%
|
248.2
|
226.4
|
9.6%
|
Wing
Systems
|
63.1
|
37.9
|
66.5%
|
184.1
|
(343.9)
|
153.5%
|
All
Other
|
(0.3)
|
0.7
|
|
-
|
4.1
|
|
Total Segment
Operating Earnings (Loss)(1) (2)
|
$287.0
|
$141.4
|
103.0%
|
$848.9
|
$197.8
|
329.2%
|
|
|
|
|
|
|
|
Unallocated
Expense
|
|
|
|
|
|
|
Corporate
SG&A(1)
|
($50.0)
|
($52.8)
|
(5.3%)
|
($164.9)
|
($151.2)
|
9.1%
|
Impact From Severe
Weather Event
|
-
|
(4.5)
|
|
-
|
(19.6)
|
|
Research &
Development(2)
|
(8.7)
|
(7.5)
|
16.0%
|
(21.8)
|
(23.6)
|
(7.6%)
|
Cost of
Sales
|
(12.0)
|
(26.1)
|
(54.0%)
|
(35.3)
|
(46.9)
|
(24.7%)
|
Total Earnings
(Loss) from Operations
|
$216.3
|
$50.5
|
328.3%
|
$626.9
|
($43.5)
|
1,541.1%
|
|
|
|
|
|
|
|
Segment Operating
Earnings (Loss) as % of Revenues
|
|
|
|
|
|
|
Fuselage
Systems
|
17.7%
|
4.2%
|
1,350
BPS
|
16.2%
|
14.4%
|
180
BPS
|
Propulsion Systems
|
18.5%
|
18.8%
|
(30)
BPS
|
18.4%
|
19.1%
|
(70)
BPS
|
Wing
Systems
|
14.1%
|
9.5%
|
460
BPS
|
14.2%
|
(31.0%)
|
4,520
BPS
|
All
Other
|
(30.0%)
|
10.9%
|
|
0.0%
|
30.4%
|
|
Total Segment
Operating Earnings (Loss) as % of Revenues
|
17.0%
|
9.4%
|
760
BPS
|
16.2%
|
4.4%
|
1,180
BPS
|
|
|
|
|
|
|
|
Total Operating
Earnings (Loss) as % of Revenues
|
12.8%
|
3.4%
|
940
BPS
|
12.0%
|
(1.0%)
|
1,300
BPS
|
|
|
|
|
|
|
|
(1)
|
For the three months
ended September 26, 2013, corporate SG&A of $1.4 million, $1.3
million and $1.9 million was reclassified from segment operating
income for Fuselage, Propulsion, and Wing Systems, respectively, to
conform to current year presentation. For the nine months ended
September 26, 2013, corporate SG&A of $5.5 million, $3.4
million and $4.3 million was reclassified from segment operating
income for Fuselage, Propulsion, and Wing Systems, respectively, to
conform to current year presentation.
|
(2)
|
For the three months
ended September 26, 2013, research and development of $2.6 million,
$1.7 million and $1.1 million was reclassified from segment
operating income for Fuselage, Propulsion, and Wing Systems,
respectively, to conform to current year presentation. For the nine
months ended September 26, 2013, research and development of $8.5
million, $6.1 million and $3.1 million was reclassified from
segment operating income for Fuselage, Propulsion, and Wing
Systems, respectively, to conform to current year
presentation.
|
|
Spirit Ship Set
Deliveries
|
|
|
(one ship set
equals one aircraft)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3rd
Quarter
|
Nine
Months
|
|
2014
|
2013
|
|
2014**
|
2013
|
|
B737
|
124
|
114
|
|
379
|
335
|
|
B747
|
5
|
6
|
|
14
|
16
|
|
B767
|
4
|
3
|
|
10
|
14
|
|
B777
|
25
|
26
|
|
77
|
75
|
|
B787
|
26
|
15
|
|
90
|
46
|
|
Total
|
184
|
164
|
|
570
|
486
|
|
|
|
|
|
|
|
|
A320
Family*
|
132
|
116
|
|
381
|
376
|
|
A330/340
|
27
|
26
|
|
87
|
83
|
|
A350
|
4
|
1
|
|
11
|
4
|
|
A380
|
8
|
9
|
|
22
|
26
|
|
Total
|
171
|
152
|
|
501
|
489
|
|
|
|
|
|
|
|
|
Business/Regional
Jet
|
37
|
27
|
|
105
|
66
|
|
|
|
|
|
|
|
|
Total
Spirit
|
392
|
343
|
|
1,176
|
1,041
|
|
* 2013 A320
deliveries have been updated for the purpose of measuring wing ship
set deliveries, from weighted average to total ship set.
|
** Includes four
additional workdays as compared to prior year period.
|
Spirit AeroSystems
Holdings, Inc.
|
Condensed
Consolidated Statements of Operations
|
(unaudited)
|
|
|
|
|
|
|
|
For the Three
Months Ended
|
|
For the Nine
Months Ended
|
|
|
October 2,
2014
|
|
September 26,
2013
|
|
October 2,
2014
|
|
September 26,
2013
|
|
|
($ in millions,
except per share data)
|
|
|
|
|
|
|
|
|
|
Net
revenues
|
$1,693.0
|
|
$1,503.7
|
|
$5,224.8
|
|
$4,466.6
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
Cost of
sales
|
1,418.0
|
|
1,388.4
|
|
4,411.2
|
|
4,315.7
|
Selling, general and
administrative
|
50.0
|
|
52.8
|
|
164.9
|
|
151.2
|
Impact from severe
weather event
|
-
|
|
4.5
|
|
-
|
|
19.6
|
Research and
development
|
8.7
|
|
7.5
|
|
21.8
|
|
23.6
|
|
Total operating
costs and expenses
|
1,476.7
|
|
1,453.2
|
|
4,597.9
|
|
4,510.1
|
|
Operating income
(loss)
|
216.3
|
|
50.5
|
|
626.9
|
|
(43.5)
|
Interest expense and
financing fee amortization
|
(16.0)
|
|
(17.1)
|
|
(72.2)
|
|
(52.0)
|
Interest
income
|
0.2
|
|
0.1
|
|
0.4
|
|
0.2
|
Other (expense)
income, net
|
(8.6)
|
|
7.4
|
|
(1.6)
|
|
(1.2)
|
|
Income (loss)
before income taxes and equity in net income (loss) of
affiliate
|
191.9
|
|
40.9
|
|
553.5
|
|
(96.5)
|
Income tax
(provision) benefit
|
(23.9)
|
|
53.0
|
|
(88.9)
|
|
62.3
|
|
Income (loss)
before equity in net income (loss) of affiliate
|
168.0
|
|
93.9
|
|
464.6
|
|
(34.2)
|
Equity in net income
(loss) of affiliate
|
-
|
|
(0.2)
|
|
0.4
|
|
(0.3)
|
|
Net income
(loss)
|
$168.0
|
|
$93.7
|
|
$465.0
|
|
($34.5)
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per
share
|
|
|
|
|
|
|
|
Basic
|
$1.21
|
|
$0.66
|
|
$3.30
|
|
($0.24)
|
Shares
|
138.6
|
|
141.4
|
|
140.4
|
|
141.2
|
|
|
|
|
|
|
|
|
|
Diluted
|
$1.20
|
|
$0.65
|
|
$3.27
|
|
($0.24)
|
Shares
|
140.0
|
|
143.4
|
|
142.2
|
|
141.2
|
Spirit AeroSystems
Holdings, Inc.
|
Condensed
Consolidated Balance Sheets
|
(unaudited)
|
|
|
October 2,
2014
|
|
December 31,
2013
|
|
|
($ in
millions)
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
|
$452.8
|
|
$420.7
|
Accounts receivable,
net
|
|
809.3
|
|
550.8
|
Inventory,
net
|
|
1,886.1
|
|
1,842.6
|
Other current
assets
|
|
79.0
|
|
130.1
|
Total current assets
|
|
3,227.2
|
|
2,944.2
|
Property, plant and
equipment, net
|
|
1,784.9
|
|
1,803.3
|
Pension assets,
net
|
|
276.8
|
|
252.6
|
Other
assets
|
|
116.2
|
|
107.1
|
Total assets
|
|
$5,405.1
|
|
$5,107.2
|
Current
liabilities
|
|
|
|
|
Accounts
payable
|
|
$709.3
|
|
$753.7
|
Accrued
expenses
|
|
272.9
|
|
220.6
|
Current portion of
long-term debt
|
|
9.6
|
|
16.8
|
Advance payments,
short-term
|
|
103.1
|
|
133.5
|
Deferred revenue,
short-term
|
|
21.8
|
|
19.8
|
Other current
liabilities
|
|
179.4
|
|
191.2
|
Total current liabilities
|
|
1,296.1
|
|
1,335.6
|
Long-term
debt
|
|
1,147.0
|
|
1,150.5
|
Advance payments,
long-term
|
|
713.3
|
|
728.9
|
Deferred revenue and
other deferred credits
|
|
27.8
|
|
30.9
|
Pension/OPEB
obligation
|
|
74.9
|
|
69.8
|
Other
liabilities
|
|
331.2
|
|
310.5
|
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,
141,164,346 and 120,946,429 shares issued,
respectively
|
|
1.4
|
|
1.2
|
Common stock,
Class B par value $0.01, 150,000,000 shares authorized,
73,330 and 23,851,694 shares issued,
respectively
|
|
-
|
|
0.2
|
Additional paid-in
capital
|
|
1,032.3
|
|
1,025.0
|
Accumulated other
comprehensive (loss)
|
|
(63.9)
|
|
(54.6)
|
Retained
earnings
|
|
973.7
|
|
508.7
|
Treasury stock, at
cost (4,000,000 and zero shares, respectively)
|
|
(129.2)
|
|
-
|
Total shareholders' equity
|
|
1,814.3
|
|
1,480.5
|
Noncontrolling
interest
|
|
0.5
|
|
0.5
|
Total equity
|
|
1,814.8
|
|
1,481.0
|
Total liabilities and equity
|
|
$5,405.1
|
|
$5,107.2
|
Spirit AeroSystems
Holdings, Inc.
|
Condensed
Consolidated Statements of Cash Flows
|
(unaudited)
|
|
|
|
|
|
|
|
For the Nine
Months Ended
|
|
|
October 2,
2014
|
|
September 26,
2013
|
|
|
($ in
millions)
|
Operating
activities
|
|
|
|
|
Net income
(loss)
|
|
$465.0
|
|
($34.5)
|
Adjustments to
reconcile net income (loss) to net cash provided by operating
activities
|
|
|
Depreciation
expense
|
|
126.3
|
|
117.4
|
Amortization
expense
|
|
26.7
|
|
8.7
|
Accretion of customer
supply agreement
|
|
0.8
|
|
0.3
|
Employee stock
compensation expense
|
|
12.7
|
|
15.7
|
Excess tax benefits
from share-based payment arrangements
|
|
(2.4)
|
|
(0.5)
|
Loss on disposition
of assets
|
|
0.3
|
|
0.2
|
Loss on interest rate
swaps
|
|
0.1
|
|
-
|
Gain from hedge
contracts
|
|
(1.4)
|
|
(1.9)
|
Loss from foreign
currency transactions
|
|
4.3
|
|
3.3
|
Deferred taxes
|
|
2.1
|
|
(104.6)
|
Long-term tax
provision
|
|
(1.2)
|
|
(2.5)
|
Pension and other
post-retirement benefits, net
|
|
(19.2)
|
|
(10.8)
|
Grant
income
|
|
(6.3)
|
|
(5.3)
|
Equity in net
(income) loss of affiliate
|
|
(0.4)
|
|
0.3
|
Changes in assets and
liabilities
|
|
|
|
|
Accounts
receivable
|
|
(264.2)
|
|
(206.5)
|
Inventory,
net
|
|
(122.5)
|
|
331.4
|
Accounts payable and
accrued liabilities
|
|
61.3
|
|
87.5
|
Advance
payments
|
|
(46.0)
|
|
(23.8)
|
Income taxes
receivable/payable
|
|
37.2
|
|
(8.3)
|
Deferred revenue and
other deferred credits
|
|
0.9
|
|
9.5
|
Other
|
|
54.2
|
|
23.7
|
Net
cash provided by operating activities
|
|
328.3
|
|
199.3
|
Investing
activities
|
|
|
|
|
Purchase of property,
plant and equipment
|
|
(134.0)
|
|
(168.1)
|
Purchase of property,
plant and equipment - severe weather related expenses
|
-
|
|
(23.4)
|
Other
|
|
0.4
|
|
(0.5)
|
Net
cash used in investing activities
|
|
(133.6)
|
|
(192.0)
|
Financing
activities
|
|
|
|
|
Proceeds from
issuance of bonds
|
|
300.0
|
|
-
|
Principal payments of
debt
|
|
(14.6)
|
|
(8.0)
|
Payment on
bonds
|
|
(300.0)
|
|
-
|
Excess tax benefits
from share-based payment arrangements
|
|
2.4
|
|
0.5
|
Debt issuance and
financing costs
|
|
(20.8)
|
|
(4.1)
|
Purchase of treasury
stock
|
|
(129.2)
|
|
-
|
Net
cash used in financing activities
|
|
(162.2)
|
|
(11.6)
|
Effect of exchange
rate changes on cash and cash equivalents
|
|
(0.4)
|
|
(0.8)
|
Net
increase (decrease) in cash and cash equivalents for the
period
|
|
32.1
|
|
(5.1)
|
Cash and cash
equivalents, beginning of the period
|
|
420.7
|
|
440.7
|
Cash and cash
equivalents, end of the period
|
|
$452.8
|
|
$435.6
|
Management believes the non-GAAP (Generally Accepted Accounting
Principles) measures (indicated by *) used in this report provide
investors with important perspectives into the company's ongoing
business performance. The company does not intend for the
information to be considered in isolation or as a substitute for
the related GAAP measure. Other companies may define the measure
differently.
Free Cash
Flow
|
($ in
millions)
|
|
|
|
|
|
|
|
Previous
|
|
Current
|
|
3rd
Quarter
|
|
Nine
Months
|
|
Guidance
|
|
Guidance
|
|
2014
|
2013
|
|
2014
|
2013
|
|
2014
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
Cash Provided by
Operating Activities
|
$118.8
|
$185.0
|
|
$328.3
|
$199.3
|
|
$460 -
$485
|
|
$475 -
$500
|
Capital
Expenditures
|
(44.4)
|
(56.5)
|
|
(134.0)
|
(191.5)
|
|
(210) -
(235)
|
|
(200) -
(225)
|
Free Cash
Flow
|
$74.4
|
$128.5
|
|
$194.3
|
$7.8
|
|
~$250
|
|
~$275
|
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SOURCE Spirit AeroSystems Holdings, Inc.