WICHITA, Kan., May 5, 2021 /PRNewswire/ --
- Delivered 269 shipsets, compared to 324 in Q1 2020 including 29
737 MAX shipsets in Q1 2021 compared to 18 in Q1 2020; expect to
deliver about 160 737 MAX shipsets in 2021
- $901 million in Q1 2021 revenue,
compared to $1,077 million in Q1
2020
- Cash used in operations of $(170)
million and free cash flow* of $(198)
million in Q1 2021 compared to cash used in operations of
$(331) million and free cash flow* of
$(362) million in Q1 2020
- Full-year 2021 cash used in operations is expected to be
between $(50) to $(150) million; full-year 2021 free cash flow* is
expected to be between $(200) and
$(300) million
- EPS of $(1.65) in Q1 2021
compared to $(1.57) in Q1 2020;
Adjusted EPS* of $(1.22) in Q1 2021
compared to $(0.79) in Q1 2020
- Prepaid $300 million of floating
rate notes in February 2021
Spirit AeroSystems Holdings, Inc. [NYSE: SPR] ("Spirit" or the
"Company") reported first quarter 2021 financial results.
Table 1.
Summary Financial Results (unaudited)
|
|
|
1st
Quarter
|
|
($ in millions,
except per share data)
|
2021
|
2020
|
Change
|
|
|
|
|
Revenues
|
$901
|
$1,077
|
(16%)
|
Operating
Loss
|
($126)
|
($168)
|
**
|
Operating Loss as
a % of Revenues
|
(14.0%)
|
(15.5%)
|
**
|
Net
Loss
|
($172)
|
($163)
|
**
|
Net Loss as a % of
Revenues
|
(19.0%)
|
(15.1%)
|
**
|
Loss Per Share
(Fully Diluted)
|
($1.65)
|
($1.57)
|
**
|
Adjusted Loss Per
Share (Fully Diluted)*
|
($1.22)
|
($0.79)
|
**
|
Fully Diluted
Weighted Avg Share Count
|
104.1
|
103.7
|
|
|
|
|
|
** Represents an amount
equal to or in excess of 100% or not meaningful.
|
"A year ago we were grappling with unprecedented disruption and
uncertainty," said Tom Gentile,
Spirit AeroSystems President and Chief Executive Officer. "The
recovery this year is underway but slower than expected,
particularly for international air travel, which is creating
headwinds for the widebody programs. We intend to use our excess
widebody production capacity to pursue defense program
opportunities. While a broader air traffic recovery will continue
to take some time, we are encouraged by improving domestic air
travel, which is primarily served by narrowbody aircraft. We
believe Spirit is well positioned to benefit from this improvement
given about 85% of our backlog consists of narrowbody
aircraft. We are increasing 737 MAX production rates in line
with Boeing's objective of 31 aircraft per month in 2022, and have
started bringing back employees to support our factories."
"Over the past few months, we have also been performing ongoing
787 engineering analysis and rework to support Boeing's resumption
of deliveries in the first quarter of 2021 which has resulted in a
forward loss," said Gentile. "We are pleased to see that Boeing
resumed 787 deliveries in the first quarter."
Revenue
Spirit's first quarter of 2021 revenue was $900.8 million, down from the same period of
2020, primarily due to the significantly lower widebody production
rates due to reduced international air traffic resulting from the
impacts of COVID-19 as well as lower production rates on the Airbus
A320 program. First quarter 2021 revenue includes increased
revenue from the recently acquired A220 wing and Bombardier
programs as well as defense program revenue. Deliveries
decreased to 269 shipsets during the first quarter of 2021
compared to 324 shipsets in the same period of 2020, including
Boeing 787 deliveries of 15 shipsets compared to 40 shipsets in the
same period of the prior year, and 12 Airbus A350 shipset
deliveries compared to 26 in the same period of 2020. In the
first quarter of 2021, Airbus A320 deliveries were 130 compared to
188 in the first quarter of 2020.
Spirit's backlog at the end of the first quarter of 2021 was
approximately $33 billion, with work
packages on all commercial platforms in the Boeing and Airbus
backlog.
Earnings
Operating loss for the first quarter of 2021 was $125.9 million, as compared to operating loss of
$167.5 million in the same period of
2020. The decreased loss was primarily driven by lower
restructuring costs, excess capacity, abnormal COVID-19 related
production costs and SG&A expense in the first quarter of 2021
compared to the first quarter of 2020, partially offset by
additional forward losses on Boeing 787 and Airbus A350 programs.
Included in the first quarter 2021 operating loss were pretax
$5.8 million of unfavorable
cumulative catch-up adjustments and excess capacity costs of
$67.6 million. Additionally,
the first quarter of 2021 included pretax forward loss charges of
$72.4 million, primarily driven by
Boeing 787 engineering analysis and rework to support Boeing's
resumption of deliveries and the impact of lower Airbus A350
production rates coupled with higher costs to achieve production
quality improvements. In comparison, during the first quarter of
2020, Spirit recorded pretax $8.2
million of unfavorable cumulative catch-up adjustments,
excess capacity costs of $73.4
million, $19.7 million of net
forward loss charges, restructuring expenses of $42.6 million and abnormal COVID-19 costs of
$25.4 million.
Other income for the first quarter 2021 was $12.8 million, compared to a net expense of
$49.0 million for the same period in
the prior year. The increase in income primarily reflects a
net pension loss recognized in the prior year period related to a
voluntary retirement program ("VRP"). Interest expense and
financing fee amortization for the first quarter of 2021 increased
$27.6 million, primarily driven by
increased interest expense on more debt as well as higher interest
rates on the debt compared to the same period in the prior
year.
First quarter EPS was $(1.65),
compared to $(1.57) in the same
period of 2020. First quarter 2021 adjusted EPS* was $(1.22), which excluded the impacts from the
acquisitions, restructuring costs and the incremental $42.3 million deferred tax asset valuation
allowance in the first quarter of 2021. During the same period of
2020, adjusted EPS* was $(0.79),
which excluded the impact of the Asco and Bombardier acquisitions,
restructuring costs and the voluntary retirement program offered
during 2020. (Table 1)
Cash
Cash used in operations in the first quarter of 2021 was
$(170) million as compared to
$(331) million in the same quarter
last year, primarily due to positive impacts of working capital and
partially offset by $215 million
received in the first quarter of 2020 related to the memorandum of
agreement with Boeing. Free cash flow* in the first quarter
of 2021 was $(198) million as
compared to $(362) million in the
same period of 2020. Cash balance at the end of the first quarter
of 2021 was $1.4 billion. (Table
2)
Table 2.
Cash Flow and Liquidity (unaudited)
|
|
|
|
1st
Quarter
|
|
($ in
millions)
|
2021
|
2020
|
Change
|
|
|
|
|
Cash used in
Operations
|
($170)
|
($331)
|
**
|
Purchases of
Property, Plant & Equipment
|
($28)
|
($31)
|
(11%)
|
Free Cash
Flow*
|
($198)
|
($362)
|
**
|
|
|
|
|
|
April
1,
|
December
31,
|
|
Liquidity
|
2021
|
2020
|
|
Cash
|
$1,359
|
$1,873
|
|
Total
Debt
|
$3,565
|
$3,874
|
|
|
|
|
|
**
Represents an amount equal to or in excess of 100% or not
meaningful.
|
2021 Cash Outlook
Full-year 2021 cash used in operations is expected to be between
$(50) to $(150) million; full-year 2021 free cash flow* is
expected to be between $(200) and
$(300) million. Please refer to
our Cautionary Statement Regarding Forward-Looking Statements below
and Item 1A. "Risk Factors" in our Annual Report on Form 10-K.
Segment Results
Fuselage Systems
Fuselage Systems segment revenue in the first quarter of 2021
decreased 21 percent from the same period last year to $437.1 million, primarily due to lower production
volumes on the Boeing 777, 787 and Airbus A350 programs, partially
offset by increased revenue from the Boeing 737 and recently
acquired Bombardier programs. Operating margin for the first
quarter of 2021 increased to (13.7) percent, compared to (15.7)
percent during the same period of 2020. This increase was
partially due to increased profit on defense programs and Boeing
737 MAX production volumes resulting in decreased excess capacity
costs. First quarter 2021 increased profit was also due to
lower restructuring expenses and abnormal COVID-19 costs. The
increased segment margin was partially offset by increased forward
losses recognized on the Boeing 787 and Airbus A350 programs.
In the first quarter of 2021, the Fuselage Systems Segment includes
restructuring expenses of $1.8
million, excess capacity costs of $42.6 million and abnormal COVID-19 costs of
$0.7 million compared to
restructuring expenses of $30.1
million, excess capacity costs of $51.2 million and abnormal COVID-19 costs of
$15.3 million for the same period in
2020. In the first quarter of 2021, the segment
recorded pretax $1.9 million of
favorable cumulative catch-up adjustments and $55.1 million of net forward losses. In the first
quarter of 2020, the segment recorded pretax $4.0 million of unfavorable cumulative catch-up
adjustments and $13.2 million of net
forward losses.
Propulsion Systems
Propulsion Systems segment revenue in the first quarter of 2021
increased 1 percent from the same period last year to $226.5 million, primarily due to increased
revenue from the 737 MAX program and aftermarket sales, partially
offset by decreased revenue from the Boeing 777 and 787 programs.
Operating margin for the first quarter of 2021 increased to 7.4
percent, compared to (2.4) percent during the same period of 2020,
primarily due to lower restructuring expenses, excess capacity
costs and abnormal COVID-19 costs. Increased segment
operating margin was offset by margin deterioration on the Boeing
737 MAX and 787 programs. In the first quarter of 2021, the
segment recorded $(0.2) million of
restructuring costs, decreased excess capacity costs of
$7.2 million and $0.1 million of abnormal COVID-19 costs compared
to $8.8 million of restructuring
expenses, excess capacity costs of $15.8
million, and abnormal COVID-19 costs of $6.2 million in the first quarter of 2020.
The segment recorded pretax $5.6
million of unfavorable cumulative catch-up adjustments and
$4.7 million of net forward losses in
the first quarter of 2021. In comparison, during the same period of
the prior year, the segment recorded pretax $1.5 million of unfavorable cumulative catch-up
adjustments, and $3.1 million of net
forward losses.
Wing Systems
Wing Systems segment revenue in the first quarter of 2021
decreased 23 percent from the same period last year to $223.6 million, primarily due to lower production
volumes on the Boeing 787, Airbus A320 and A350 programs, partially
offset by revenue from the recently acquired A220 wing program.
Operating margin for the first quarter of 2021 decreased to (8.5)
percent, compared to 4.7 percent during the same period of 2020,
primarily due to increased net forward losses recognized on the
Boeing 787 and Airbus A350 programs as well as lower margin
recognized due to increased excess capacity costs on the A320 and
A220 wing. In the first quarter of 2021, the segment includes
$0.5 million of restructuring costs,
excess capacity costs of $17.8
million and $1.3 million of
abnormal COVID-19 costs compared to the same period the prior year,
which included restructuring expenses of $3.7 million, excess capacity costs of
$6.4 million pretax and abnormal
COVID-19 costs of $3.9 million.
In the first quarter of 2021, the segment recorded pretax
$2.1 million of unfavorable
cumulative catch-up adjustments and $12.6
million of net forward losses. In the first quarter of 2020,
the segment recorded pretax $2.7
million of unfavorable cumulative catch-up adjustments and
$3.4 million of net forward
losses.
Table 4.
Segment Reporting (unaudited)
|
|
|
1st
Quarter
|
($ in
millions)
|
2021
|
2020
|
Change
|
|
|
|
|
Segment
Revenues
|
|
|
|
Fuselage
Systems
|
$437.1
|
$551.5
|
(20.7%)
|
Propulsion Systems
|
226.5
|
225.2
|
0.6%
|
Wing
Systems
|
223.6
|
291.4
|
(23.3%)
|
All
Other
|
13.6
|
9.2
|
**
|
Total Segment
Revenues
|
$900.8
|
$1,077.3
|
(16.4%)
|
|
|
|
|
Segment (Loss)
Earnings from Operations
|
|
|
|
Fuselage
Systems
|
($59.8)
|
($86.4)
|
**
|
Propulsion Systems
|
16.7
|
(5.3)
|
**
|
Wing
Systems
|
(18.9)
|
13.6
|
**
|
All
Other
|
1.2
|
1.8
|
**
|
Total Segment
Operating (Loss) Earnings
|
($60.8)
|
($76.3)
|
**
|
|
|
|
|
Unallocated
Expense
|
|
|
|
SG&A
|
($57.6)
|
($77.4)
|
25.6%
|
Research &
Development
|
(8.2)
|
(12.3)
|
33.3%
|
Cost of
Sales
|
0.7
|
(1.5)
|
**
|
Total (Loss)
Earnings from Operations
|
($125.9)
|
($167.5)
|
**
|
|
|
|
|
Segment Operating
(Loss) Earnings as % of Revenues
|
|
|
|
Fuselage
Systems
|
(13.7%)
|
(15.7%)
|
**
|
Propulsion Systems
|
7.4%
|
(2.4%)
|
**
|
Wing
Systems
|
(8.5%)
|
4.7%
|
**
|
All
Other
|
8.8%
|
19.6%
|
**
|
Total Segment
Operating (Loss) Earnings as % of Revenues
|
(6.7%)
|
(7.1%)
|
**
|
|
|
|
|
Total Operating
(Loss) Earnings as % of Revenues
|
(14.0%)
|
(15.5%)
|
**
|
|
|
|
|
** Represents an amount
equal to or in excess of 100% or not meaningful.
|
On the web: http:/ /www.spiritaero.com
Cautionary Statement Regarding Forward-Looking
Statements
This press release contains "forward-looking statements" that
may involve many risks and uncertainties. Forward-looking
statements generally can be identified by the use of
forward-looking terminology such as "aim," "anticipate," "believe,"
"could," "continue," "estimate," "expect," "goal," "forecast,"
"intend," "may," "might," "model," "objective," "outlook," "plan,"
"potential," "predict," "project," "seek," "should," "target,"
"will," "would," and other similar words, or phrases, or the
negative thereof, unless the context requires otherwise. These
statements are based on circumstances as of the date on which the
statements are made and they 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:
- the impact of the COVID-19 pandemic on our business and
operations, including on the demand for our and our customers'
products and services, on trade and transport restrictions, on the
global aerospace supply chain, on our ability to retain the skilled
work force necessary for production and development, and generally
on our ability to effectively manage the impacts of the COVID-19
pandemic on our business operations;
- demand for our products and services and the general effect of
economic or geopolitical conditions, or other events, such as
pandemics, in the industries and markets in which we operate in the
U.S. and globally;
- the timing and conditions surrounding the full worldwide return
to service (including receiving the remaining regulatory approvals)
of the B737 MAX, future demand for the aircraft, and any residual
impacts of the B737 MAX grounding on production rates for the
aircraft;
- our reliance on Boeing and Airbus for a significant portion of
our revenues;
- the business condition and liquidity of our customers and their
ability to satisfy their contractual obligations to the
Company;
- the certainty of our backlog, including the ability of
customers to cancel or delay orders prior to shipment;
- our ability to accurately estimate and manage performance,
cost, margins, and revenue under our contracts, and the potential
for additional forward losses on new and maturing programs;
- our accounting estimates for revenue and costs for our
contracts and potential changes to those estimates;
- our ability to continue to grow and diversify our business,
execute our growth strategy, and secure replacement programs,
including our ability to enter into profitable supply arrangements
with additional customers;
- the outcome of product warranty or defective product claims and
the impact settlement of such claims may have on our accounting
assumptions;
- our dependence on our suppliers, as well as the cost and
availability of raw materials and purchased components;
- our ability and our suppliers' ability to meet stringent
delivery (including quality and timeliness) standards and
accommodate changes in the build rates of aircraft;
- our ability to maintain continuing, uninterrupted production at
our manufacturing facilities and our suppliers' facilities;
- competitive conditions in the markets in which we operate,
including in-sourcing by commercial aerospace original equipment
manufacturers;
- our ability to successfully negotiate, or re-negotiate, future
pricing under our supply agreements with Boeing, Airbus and other
customers;
- our ability to effectively integrate the acquisition of select
assets of Bombardier along with other acquisitions that we pursue,
and generate synergies and other cost savings therefrom, while
avoiding unexpected costs, charges, expenses, and adverse changes
to business relationships and business disruptions;
- the possibility that our cash flows may not be adequate for our
additional capital needs;
- any reduction in our credit ratings;
- our ability to access the capital markets to fund our liquidity
needs, and the costs and terms of any additional financing;
- our ability to avoid or recover from cyber or other security
attacks and other operations disruptions;
- legislative or regulatory actions, both domestic and foreign,
impacting our operations, including the effect of changes in tax
laws and rates and our ability to accurately calculate and estimate
the effect of such changes;
- our ability to recruit and retain a critical mass of highly
skilled employees;
- our relationships with the unions representing many of our
employees, including our ability to avoid labor disputes and work
stoppages with respect to our union employees;
- spending by the U.S. and other governments on defense;
- pension plan assumptions and future contributions;
- the effectiveness of our internal control over financial
reporting;
- the outcome or impact of ongoing or future litigation,
arbitration, claims, and regulatory actions or investigations,
including our exposure to potential product liability and warranty
claims;
- adequacy of our insurance coverage;
- our ability to continue selling certain receivables through our
supplier financing programs;
- and the risks of doing business internationally, including
fluctuations in foreign currency exchange rates, impositions of
tariffs or embargoes, trade restrictions, compliance with foreign
laws, and domestic and foreign government policies.
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 section captioned "Risk Factors" in the
Company's Annual Report on Form 10-K for a more complete discussion
of these and other factors that may affect our business.
Spirit Shipset
Deliveries
|
|
(one shipset
equals one aircraft)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1st
Quarter
|
|
|
|
|
2021
|
2020
|
|
|
B737
|
|
29
|
18
|
|
|
B747
|
|
1
|
2
|
|
|
B767
|
|
10
|
6
|
|
|
B777
|
|
5
|
9
|
|
|
B787
|
|
15
|
40
|
|
|
Total
Boeing
|
|
60
|
75
|
|
|
|
|
|
|
|
|
A220
|
|
12
|
15
|
|
|
A320
Family
|
|
130
|
188
|
|
|
A330
|
|
5
|
8
|
|
|
A350
|
|
12
|
26
|
|
|
Total
Airbus
|
|
159
|
237
|
|
|
|
|
|
|
|
|
Business/Regional Jet
(1)
|
|
50
|
12
|
|
|
|
|
|
|
|
|
Total
|
|
269
|
324
|
|
|
|
|
|
|
|
|
(1)Beginning in the fourth quarter of
2020, includes Business/Regional Jet deliveries related to the
Bombardier acquisition
|
Spirit AeroSystems
Holdings, Inc.
|
Condensed
Consolidated Statements of Operations
|
(unaudited)
|
|
|
|
|
|
|
|
For the Three
Months Ended
|
|
|
|
April 1,
2021
|
|
April 2,
2020
|
|
|
($ in millions,
except per share data)
|
|
|
|
|
|
|
Revenue
|
|
$900.8
|
|
$1,077.3
|
Operating costs
and expenses:
|
|
|
|
|
Cost of
sales
|
|
958.8
|
|
1,112.5
|
Selling, general and
administrative
|
|
57.6
|
|
77.4
|
Restructuring
costs
|
|
2.1
|
|
42.6
|
Research and
development
|
|
8.2
|
|
12.3
|
|
Total operating
costs and expenses
|
|
1,026.7
|
|
1,244.8
|
|
Operating
loss
|
|
(125.9)
|
|
(167.5)
|
Interest expense and
financing fee amortization
|
|
(59.8)
|
|
(32.2)
|
Other income
(expense), net
|
|
12.8
|
|
(49.0)
|
|
Loss before income
taxes and equity in net loss of affiliate
|
|
(172.9)
|
|
(248.7)
|
Income tax
benefit
|
|
1.7
|
|
87.2
|
|
Loss before equity
in net loss of affiliate
|
|
(171.2)
|
|
(161.5)
|
Equity in net loss of
affiliate
|
|
(0.4)
|
|
(1.5)
|
|
Net
loss
|
|
($171.6)
|
|
($163.0)
|
|
|
|
|
|
|
Loss per
share
|
|
|
|
|
Basic
|
|
($1.65)
|
|
($1.57)
|
Shares
|
|
104.1
|
|
103.7
|
|
|
|
|
|
|
Diluted
|
|
($1.65)
|
|
($1.57)
|
Shares
|
|
104.1
|
|
103.7
|
|
|
|
|
|
|
Dividends declared
per common share
|
|
$0.01
|
|
$0.01
|
Spirit AeroSystems
Holdings, Inc.
|
Condensed
Consolidated Balance Sheets
|
(unaudited)
|
|
|
April 1,
2021
|
|
December 31,
2020
|
|
|
($ in
millions)
|
Assets
|
|
|
|
|
Cash and cash
equivalents
|
|
$1,359.3
|
|
$1,873.3
|
Restricted
cash
|
|
0.3
|
|
0.3
|
Accounts receivable,
net
|
|
525.8
|
|
484.4
|
Contract assets,
short-term
|
|
361.9
|
|
368.4
|
Inventory,
net
|
|
1,395.8
|
|
1,422.3
|
Other current
assets
|
|
344.5
|
|
336.3
|
Total current assets
|
|
3,987.6
|
|
4,485.0
|
Property, plant and
equipment, net
|
|
2,457.0
|
|
2,503.8
|
Intangible assets,
net
|
|
207.0
|
|
215.2
|
Goodwill
|
|
583.9
|
|
565.3
|
Right of use
assets
|
|
70.0
|
|
70.6
|
Contract assets,
long-term
|
|
5.9
|
|
4.4
|
Pension
assets
|
|
466.8
|
|
455.9
|
Deferred income
taxes
|
|
0.3
|
|
0.1
|
Other
assets
|
|
89.3
|
|
83.6
|
Total assets
|
|
$7,867.8
|
|
$8,383.9
|
Liabilities
|
|
|
|
|
Accounts
payable
|
|
$540.8
|
|
$558.9
|
Accrued
expenses
|
|
383.3
|
|
365.6
|
Profit
sharing
|
|
14.9
|
|
57.0
|
Current portion of
long-term debt
|
|
40.2
|
|
340.7
|
Operating lease
liabilities, short-term
|
|
5.5
|
|
5.5
|
Advance payments,
short-term
|
|
53.1
|
|
18.9
|
Contract liabilities,
short-term
|
|
119.3
|
|
97.6
|
Forward loss
provision, short-term
|
|
244.5
|
|
184.6
|
Deferred revenue and
other deferred credits, short-term
|
|
15.0
|
|
22.2
|
Other current
liabilities
|
|
71.4
|
|
58.4
|
Total current liabilities
|
|
1,488.0
|
|
1,709.4
|
Long-term
debt
|
|
3,525.2
|
|
3,532.9
|
Operating lease
liabilities, long-term
|
|
66.6
|
|
66.6
|
Advance payments,
long-term
|
|
289.9
|
|
327.4
|
Pension/OPEB
obligation
|
|
431.8
|
|
440.2
|
Contract liabilities,
long-term
|
|
348.5
|
|
372.0
|
Forward loss
provision, long-term
|
|
509.1
|
|
561.4
|
Deferred revenue and
other deferred credits, long-term
|
|
38.0
|
|
38.9
|
Deferred grant income
liability - non-current
|
|
27.9
|
|
28.1
|
Deferred income
taxes
|
|
10.9
|
|
13.0
|
Other non-current
liabilities
|
|
438.9
|
|
437.0
|
Stockholders'
Equity
|
|
|
|
|
Common stock,
Class A par value $0.01, 200,000,000 shares authorized,
105,438,110 and 105,542,162 shares issued and outstanding,
respectively
|
|
1.1
|
|
1.1
|
Additional paid-in
capital
|
|
1,144.4
|
|
1,139.8
|
Accumulated other
comprehensive loss
|
|
(150.0)
|
|
(154.1)
|
Retained
earnings
|
|
2,153.7
|
|
2,326.4
|
Treasury stock, at
cost (41,523,470 shares each period, respectively)
|
|
(2,456.7)
|
|
(2,456.7)
|
Total stockholders' equity
|
|
692.5
|
|
856.5
|
Noncontrolling
interest
|
|
0.5
|
|
0.5
|
Total equity
|
|
693.0
|
|
857.0
|
Total liabilities and equity
|
|
$7,867.8
|
|
$8,383.9
|
Spirit AeroSystems
Holdings, Inc.
|
Condensed
Consolidated Statements of Cash Flows
|
(unaudited)
|
|
|
|
|
|
|
|
For the Three
Months Ended
|
|
|
April 1,
2021
|
|
April 2,
2020
|
|
|
($ in
millions)
|
Operating
activities
|
|
|
|
|
Net loss
|
|
($171.6)
|
|
($163.0)
|
Adjustments to
reconcile net loss to net cash used in operating
activities
|
|
|
|
|
Depreciation and
amortization expense
|
|
80.3
|
|
67.3
|
Amortization of deferred
financing fees
|
|
2.3
|
|
1.9
|
Accretion of customer supply
agreement
|
|
0.6
|
|
1.1
|
Employee stock compensation
expense
|
|
6.6
|
|
9.8
|
Gain from derivative
instruments
|
|
(0.1)
|
|
-
|
Loss (gain) from foreign
currency transactions
|
|
7.2
|
|
(6.5)
|
Loss on disposition of
assets
|
|
0.3
|
|
0.2
|
Deferred
taxes
|
|
(0.9)
|
|
(61.5)
|
Long term income tax
payable
|
|
(1.9)
|
|
-
|
Pension and other
post-retirement benefits, net
|
|
(15.2)
|
|
59.9
|
Grant liability
amortization
|
|
(0.4)
|
|
(2.4)
|
Equity in net loss of
affiliates
|
|
0.4
|
|
-
|
Forward loss
provision
|
|
(3.5)
|
|
(9.0)
|
Changes in assets and
liabilities
|
|
|
|
|
Accounts receivable,
net
|
|
(38.3)
|
|
36.1
|
Contract assets
|
|
5.6
|
|
144.5
|
Inventory, net
|
|
23.1
|
|
(59.4)
|
Accounts payable and accrued
liabilities
|
|
(6.4)
|
|
(278.6)
|
Profit sharing/deferred
compensation
|
|
(42.6)
|
|
(66.7)
|
Advance payments
|
|
(0.8)
|
|
(19.8)
|
Income taxes
receivable/payable
|
|
3.6
|
|
(32.8)
|
Contract
liabilities
|
|
(1.7)
|
|
39.1
|
Other
|
|
(16.8)
|
|
8.5
|
Net
cash used in operating activities
|
|
($170.2)
|
|
($331.3)
|
Investing
activities
|
|
|
|
|
Purchase of property, plant
and equipment
|
|
(27.6)
|
|
(31.0)
|
Equity in assets of
affiliate
|
|
-
|
|
1.5
|
Acquisition, net of cash
acquired
|
|
-
|
|
(118.1)
|
Other
|
|
1.2
|
|
0.3
|
Net
cash used in investing activities
|
|
($26.4)
|
|
($147.3)
|
Financing
activities
|
|
|
|
|
Customer
financing
|
|
(2.5)
|
|
10.0
|
Principal payments of
debt
|
|
(9.8)
|
|
(7.3)
|
Payments on term
loan
|
|
(1.0)
|
|
(5.7)
|
Payments on floating rate
notes
|
|
(300.0)
|
|
-
|
Taxes paid related to net
share settlement awards
|
|
(3.3)
|
|
(13.1)
|
Proceeds from issuance of
ESPP
|
|
1.4
|
|
1.3
|
Debt issuance and financing
costs
|
|
-
|
|
(4.8)
|
Dividends paid
|
|
(1.1)
|
|
(12.4)
|
Other
|
|
(0.1)
|
|
-
|
Net
cash used in financing activities
|
|
($316.4)
|
|
($32.0)
|
Effect of exchange
rate changes on cash and cash equivalents
|
|
(1.0)
|
|
(6.2)
|
Net
decrease in cash, cash equivalents and restricted cash for the
period
|
|
($514.0)
|
|
($516.8)
|
Cash, cash
equivalents, and restricted cash, beginning of the
period
|
|
1,893.1
|
|
2,367.2
|
Cash, cash
equivalents, and restricted cash, end of the period
|
|
$1,379.1
|
|
$1,850.4
|
|
|
|
|
|
Reconciliation of
Cash and Cash Equivalents and Restricted Cash:
|
|
April 1,
2021
|
|
April 2,
2020
|
Cash and cash
equivalents, beginning of the period
|
|
$1,873.3
|
|
$2,350.5
|
Restricted cash,
short-term, beginning of the period
|
|
0.3
|
|
0.3
|
Restricted cash,
long-term, beginning of the period
|
|
19.5
|
|
16.4
|
Cash, cash
equivalents, and restricted cash, beginning of the
period
|
|
$1,893.1
|
|
$2,367.2
|
|
|
|
|
|
Cash and cash
equivalents, end of the period
|
|
$1,359.3
|
|
$1,833.6
|
Restricted cash,
short-term, end of the period
|
|
$0.3
|
|
$0.3
|
Restricted cash,
long-term, end of the period
|
|
19.5
|
|
16.5
|
Cash, cash
equivalents, and restricted cash, end of the period
|
|
$1,379.1
|
|
$1,850.4
|
Appendix
In addition to reporting our financial information using U.S.
Generally Accepted Accounting Principles (GAAP), management
believes that certain non-GAAP measures (which are indicated by *
in this report) provide investors with important perspectives into
the company's ongoing business performance. The non-GAAP measures
we use in this report are (i) adjusted diluted earnings per share
and (ii) free cash flow, which are described further below. The
company does not intend for the information to be considered in
isolation or as a substitute for the related GAAP measures. Other
companies may define and calculate the measures differently than we
do, limiting the usefulness of the measures for comparison with
other companies.
Adjusted Diluted (Loss) Earnings Per Share. To provide
additional transparency, we have disclosed non-GAAP adjusted
diluted (loss) earnings per share (Adjusted EPS). This metric
excludes various items that are not considered to be directly
related to our operating performance. Management uses Adjusted EPS
as a measure of business performance and we believe this
information is useful in providing period-to-period comparisons of
our results. The most comparable GAAP measure is diluted earnings
per share.
Free Cash Flow. Free Cash Flow is defined as GAAP cash from
operating activities (generally referred to herein as "cash used in
operations"), less capital expenditures for property, plant and
equipment. Management believes Free Cash Flow provides investors
with an important perspective on the cash available for
stockholders, debt repayments including capital leases, and
acquisitions after making the capital investments required to
support ongoing business operations and long term value creation.
Free Cash Flow does not represent the residual cash flow available
for discretionary expenditures as it excludes certain mandatory
expenditures. The most comparable GAAP measure is cash provided by
operating activities. Management uses Free Cash Flow as a measure
to assess both business performance and overall liquidity.
The tables below provide reconciliations between the GAAP and
non-GAAP measures.
Adjusted
EPS
|
|
|
|
|
|
|
|
|
1st
Quarter
|
|
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Diluted Loss Per
Share
|
|
($1.65)
|
|
($1.57)
|
|
Costs Related to
Acquisitions
|
|
0.01
|
a
|
0.08
|
b
|
Restructuring
Costs
|
|
0.01
|
c
|
0.27
|
d
|
Voluntary Retirement
Program
|
|
-
|
|
0.43
|
e
|
Deferred Tax Asset
Valuation Allowance
|
|
0.41
|
f
|
-
|
|
Adjusted Diluted Loss
Per Share
|
|
($1.22)
|
|
($0.79)
|
|
|
|
|
|
|
|
Diluted Shares (in
millions)
|
|
104.1
|
|
103.7
|
|
|
a
Represents the three months ended Q1 2021 transaction costs
(included in SG&A)
|
|
|
|
|
|
|
b
Represents the three months ended Q1 2020 transaction costs
(included in SG&A)
|
|
|
|
|
|
|
c
Represents the three months ended Q1 2021 restructuring expenses
for cost-alignment and headcount
reductions (included in Restructuring
costs)
|
|
d
Represents the three months ended Q1 2020 restructuring expenses
for cost-alignment and headcount
reductions (included in Restructuring
costs)
|
|
|
|
|
|
|
e
Represents the three months ended Q1 2020 retirement incentive
expenses resulting from the VRP offered
during the first quarter of 2020 (included in
Other expense)
|
|
f
Represents the three months ended Q1 2021 deferred tax asset
valuation allowance (included in Income tax
provision)
|
Free Cash
Flow
|
($ in
millions)
|
|
|
|
|
|
|
|
|
|
1st
Quarter
|
|
Guidance
|
|
|
2021
|
|
2020
|
|
2021
|
|
|
|
|
|
|
|
Cash used in
Operations
|
|
($170)
|
|
($331)
|
|
($50) -
($150)
|
Capital
Expenditures
|
|
(28)
|
|
(31)
|
|
(150) -
(150)
|
Free Cash
Flow
|
|
($198)
|
|
($362)
|
|
($200 -
$300)
|
* Non-GAAP financial
measure, see Appendix for reconciliation
|
View original
content:http://www.prnewswire.com/news-releases/spirit-aerosystems-reports-first-quarter-2021-results-301284316.html
SOURCE Spirit AeroSystems