Form 8-K Spirit AeroSystems Holdi For: Oct 31
Tweet
Share
E-mailUNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
�
FORM�8-K
�
CURRENT REPORT
Pursuant to Section�13 or 15(d)�of
the Securities Exchange Act of 1934
�
Date of report (Date of earliest event reported): October 31, 2014
�
Spirit AeroSystems Holdings,�Inc.
(Exact name of registrant as specified in its charter)
�
Delaware | � | 001-33160 | � | 20-2436320 |
(State or other jurisdiction of incorporation) | � | (Commission File Number) | � | (I.R.S. Employer Identification Number) |
�
3801 South Oliver, Wichita, Kansas 67210
(Address of principal executive offices)(zip code)
�
(316)�526-9000
(Registrants telephone number, including area code)
N/A
(Former name or former address, if changed since last report)
�
Check the appropriate box below if the Form�8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
�
o Written communications pursuant to Rule�425 under the Securities Act (17 CFR 230.425)
�
o Soliciting material pursuant to Rule�14a-12 under the Exchange Act (17 CFR 240.14a-12)
�
o Pre-commencement communications pursuant to Rule�14d-2(b)�under the Exchange Act (17 CFR 240.14d-2(b))
�
o Pre-commencement communications pursuant to Rule�13e-4(c)�under the Exchange Act (17 CFR 240-13e-4(c))
Item�2.02. Results of Operations and Financial Condition
�
On October 31, 2014, Spirit AeroSystems Holdings,�Inc. issued a press release announcing its financial results for the three months ended October 2, 2014 under the heading Spirit AeroSystems Holdings,�Inc. Reports Third Quarter 2014 Financial Results; Revenues of $1.7 billion and EPS of $1.20; Raises 2014 Guidance. The press release is furnished as Exhibit�99.
�
The information in this report, including the exhibit, shall not be deemed filed for purposes of Section�18 of the Securities Exchange Act of 1934, as amended (the Exchange Act ), or otherwise subject to the liabilities under that Section, nor shall it be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such filing.
�
Item�9.01. Financial Statements and Exhibits
�
(d) | Exhibits |
� | � |
� | Furnished |
� | � |
� | Exhibit�99 Press Release dated October 31, 2014 |
2
SIGNATURES
�
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
�
� | SPIRIT AEROSYSTEMS HOLDINGS,�INC. |
� | � |
Date: October 31, 2014 | /s/ Sanjay Kapoor |
� | Sanjay Kapoor |
� | Senior Vice President and Chief Financial Officer |
3
Exhibit 99
�Spirit AeroSystems Holdings,�Inc.
3801 S. Oliver
Wichita, KS 67210
www.spiritaero.com
�
Spirit AeroSystems Holdings, Inc. Reports Third Quarter 2014 Financial Results; Revenues of $1.7 billion and EPS of $1.20; Raises 2014 Guidance
Third Quarter 2014 Consolidated Results and Outlook
" | Total Revenues of $1.7 billion, up 13% y/y |
" | Fully diluted EPS of $1.20; including $0.30 for the partial release of the deferred tax valuation allowance |
" | Cash Flow From Operations of $119 million, Free Cash Flow of $75 million* |
" | 2014 EPS guidance increased from $2.90 - $3.05 to $3.35 - $3.45 excluding the impact of deferred tax valuation allowance |
" | 2014 Free Cash Flow guidance increased to $275 million* from $250 million* |
Wichita, Kan., Oct. 31, 2014 - 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. Spirits 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.
* Non-GAAP financial measure, see Appendix for reconciliation.
1
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. Were in the final stages of centralizing our procurement activities which is already yielding improvement in performance and cost, Lawson continued.
Spirits 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 | ||||
Liquidity | � | � | October 2, 2014 | December 31, 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 companys $650 million credit facility remained undrawn. The companys credit rating remained unchanged at the end of the third quarter of 2014.
#� The earnings per share amount is presented net of income taxes of 31.0%.
* Non-GAAP financial measure, see Appendix for reconciliation.
2
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 Spirits 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 Boeings 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.
�
� | � | Previous 2014 | � | � | � |
Table 3.� Financial Outlook Updated October 31, 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.
�
* Non-GAAP financial measure, see Appendix for reconciliation.
3
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. |
* Non-GAAP financial measure, see Appendix for reconciliation.
4
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 managements 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 Boeings 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.
5
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 $3.1 million was reclassified from segment operating income for Fuselage, Propulsion, and Wing Systems, respectively, to conform to current year presentation. |
Contact information:
�
Investor Relations: Ghassan Awwad (316) 523-7040
�
Media:� Ken Evans (316) 523-4070
�
On the web: http://www.spiritaero.com
6
Spirit Ship Set Deliveries
(one ship set equals one aircraft)
�
� | 3rd�Quarter | Nine�Months | ||||||||||
� | 2014 | 2013 | 2014** | 2013 | ||||||||
B737 | 124 | 114 | 379 | 335 | ||||||||
B747 | 5 | 6 | 14 | 16 | ||||||||
B767 | 4 | 3 | 10 | 14 | ||||||||
B777 | 25 | 26 | 77 | 75 | ||||||||
B787 | 26 | 15 | 90 | 46 | ||||||||
Total | 184 | 164 | 570 | 486 | ||||||||
A320 Family* | 132 | 116 | 381 | 376 | ||||||||
A330/340 | 27 | 26 | 87 | 83 | ||||||||
A350 | 4 | 1 | 11 | 4 | ||||||||
A380 | 8 | 9 | 22 | 26 | ||||||||
Total | 171 | 152 | 501 | 489 | ||||||||
Business/Regional Jet | 37 | 27 | 105 | 66 | ||||||||
Total Spirit | 392 | 343 | 1,176 | 1,041 | ||||||||
* 2013 A320 deliveries have been updated for the purpose of measuring wing ship set deliveries, from weighted average to total ship set.
** Includes four additional workdays as compared to prior year period.
7
Spirit AeroSystems Holdings,�Inc.
Condensed Consolidated Statements of Operations
(unaudited)
�
� | For�the�Three�Months�Ended | For�the�Nine�Months�Ended | ||||||||||||||
� | October 2, 2014 | September 26, 2013 | October 2, 2014 | September 26, 2013 | ||||||||||||
� | ($�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 | ($0.24 | ) | |||||||||||
Shares | 140.0 | 143.4 | 142.2 | 141.2 | ||||||||||||
8
Spirit AeroSystems Holdings,�Inc.
Condensed Consolidated Balance Sheets
(unaudited)
�
� | October 2, 2014 | December 31, 2013 | ||||||
� | ($�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 | $5,107.2 | ||||||
9
Spirit AeroSystems Holdings,�Inc.
Condensed Consolidated Statements of Cash Flows
(unaudited)�
� | For�the�Nine�Months�Ended | |||||||
� | October 2, 2014 | September 26, 2013 | ||||||
� | ($�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 | $435.6 | ||||||
10
Management believes the non-GAAP (Generally Accepted Accounting Principles) measures (indicated by *) used in this report provide investors with important perspectives into the companys ongoing business performance. The company does not intend for the information to be considered in isolation or as a substitute for the related GAAP measure. Other companies may define the measure differently.
�
Free Cash Flow
($ in millions)
�
� | 3rd�Quarter | Nine�Months | �Previous Guidance | Current 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 | ||||||||||||||
11
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Spirit AeroSystems (SPR) PT Raised to $31 at Goldman Sachs
- Publication of the 2023 annual report
- Airbus CEO: 'not unlikely' it becomes owner of two Spirit Aero (SPR) plants in the US and UK, but not only possible outcome - Reuters
Create E-mail Alert Related Categories
SEC FilingsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
