WICHITA, Kan., Feb. 1, 2017 /PRNewswire/ --
- Meets Guidance for Revenue, EPS, and Cash
- Issues Increased 2017 Guidance; Free Cash Flow* at
$450 - $500 Million, or ~7% of
Revenue
- Completed $650 Million in
Share Repurchases during 2016 and Initiated Quarterly Dividend of
$0.10 per Share
Fourth Quarter 2016 Results
- Revenue of $1.6 billion
- EPS of $0.89, including charges
for severe weather event and voluntary retirement program
($0.14)
- Free cash flow* of $45
million
Full-Year 2016 Results
- Revenue of $6.8 billion, up 2%
year-over-year
- EPS of $3.70, Adjusted EPS* of
$4.56 up 16% year-over-year
- Free cash flow* of $463
million
- Adjusted free cash flow* of $420
million, or ~6% of Revenue
Issues Full-Year 2017 Guidance - Absorbs rate changes
announced by OEMs
- Revenue $6.8 - $6.9 billion
- EPS $4.60 - $4.85
- Free cash flow* $450 - $500
million, or ~7% of Revenue
Spirit AeroSystems Holdings, Inc., [NYSE: SPR] reported fourth
quarter and full-year 2016 financial results driven by strong
operating performance of mature programs.
"2016 was a strong year for Spirit," Spirit President and CEO
Tom Gentile said. "We
successfully negotiated a global settlement with Airbus on the
A350, refinanced our debt after achieving an investment grade
credit rating, returned $650 million
in capital to shareholders through share repurchases, initiated our
first dividend of $0.10 per share,
made a seamless leadership transition, and laid the groundwork for
a successful 2017."
Table 1.
Summary Financial Results (unaudited)
|
|
|
|
|
4th
Quarter
|
|
Twelve
Months
|
|
($ in millions,
except per share data)
|
2016
|
2015
|
Change
|
2016
|
2015
|
Change
|
|
|
|
|
|
|
|
Revenue
|
$1,570
|
$1,609
|
(2%)
|
$6,793
|
$6,644
|
2%
|
Operating
Income
|
$161
|
$206
|
(22%)
|
$725
|
$863
|
(16%)
|
Operating Income
as a % of Revenue
|
10.2%
|
12.8%
|
(260)
BPS
|
10.7%
|
13.0%
|
(230)
BPS
|
Net
Income
|
$108
|
$138
|
(22%)
|
$470
|
$789
|
(40%)
|
Net Income as a %
of Revenue
|
6.9%
|
8.6%
|
(170)
BPS
|
6.9%
|
11.9%
|
(500)
BPS
|
Earnings Per Share
(Fully Diluted)
|
$0.89
|
$1.01
|
(12%)
|
$3.70
|
$5.66
|
(35%)
|
Adjusted Earnings
Per Share (Fully Diluted)*
|
$0.89
|
$0.95
|
(6%)
|
$4.56
|
$3.92
|
16%
|
Fully Diluted
Weighted Avg Share Count
|
121.1
|
137.1
|
|
127.0
|
139.4
|
|
Revenue
Spirit's fourth quarter 2016 revenue was $1.6 billion, down by two percent compared to the
same period of 2015, primarily driven by lower production
deliveries on the Boeing 747 and 777 programs, partially offset by
higher activity on non-recurring programs. Revenue for the full
year increased two percent to $6.8
billion, primarily due to higher production deliveries on
the Airbus A350 XWB and Boeing 767 programs, partially offset by
lower revenue recognized due to the impact of pricing terms on the
Boeing 787 program and lower production deliveries on the Boeing
747 program. (Table 1)
"I am proud of the way the Spirit team executed in 2016. We
overcame several challenges and operationally did better than
2015. We delivered a record 1,583 shipsets compared to 1,457
shipsets in the prior year. The number includes 127 787s, 96
777s, 500 737s, 69 A350s, and 574 A320s," Gentile added.
Spirit's backlog at the end of the fourth quarter of 2016 was
approximately $47 billion, with work
packages on all commercial platforms in the Boeing and Airbus
backlog.
Earnings
Operating income for the fourth quarter of 2016 was $161 million, compared to $206 million in the same period of 2015,
primarily due to one-time incentive payments received in the fourth
quarter of 2015. Operating income for the full year was
$725 million, compared to
$863 million in 2015, with the
decrease primarily resulting from forward loss charges recognized
during the second quarter of 2016. Fourth quarter reported EPS was
$0.89, compared to $1.01 EPS (or $0.95
adjusted EPS* excluding the impact of Deferred Tax Asset Valuation
Allowance) in the same period of 2015. Full-year EPS was
$3.70 (or $4.56 adjusted EPS* excluding the impact of
certain one-time items), compared to $5.66 EPS (or $3.92
adjusted EPS* excluding the impact of Deferred Tax Asset Valuation
Allowance) in 2015. (Table 1)
"In the fourth quarter, our operations in Kinston, North Carolina, were impacted by the
aftermath of Hurricane Matthew resulting in higher abnormal
operating costs of $12.1 million,
equivalent to approximately $0.07 of
EPS. We are submitting appropriate claims with our insurers,"
Gentile said.
Cash
Free cash flow* in the fourth quarter of 2016 was $45 million, compared to $177 million (or adjusted free cash flow* of
$131 million, adjusted to remove the
impact of the 787 interim pricing agreement) in the same quarter
last year. Full-year free cash flow* was $463 million, compared to $930 million in 2015. Full-year adjusted free
cash flow* (adjusted to remove the impact of the 787 interim
pricing agreement) was $420 million
in 2016, compared to $738 million in
2015. (Table 2)
Cash balance at the end of the year was $698 million, reflecting the purchase of 14.2
million common shares for $650
million during the year. The company's $650 million revolving credit facility remained
undrawn at the end of the year.
"Despite no share repurchases in the fourth quarter due to the
uncertainty from the presidential election and our limited trading
window, we remain committed to a balanced and disciplined approach
to capital deployment. We have our entire authorization of up
to $600 million available as we enter 2017," Gentile
commented.
Table 2.
Cash Flow and Liquidity (unaudited)
|
|
|
|
|
4th
Quarter
|
Twelve
Months
|
($ in
millions)
|
2016
|
2015
|
2016
|
2015
|
|
|
|
|
|
Cash Flow from
Operations
|
$142
|
$320
|
$717
|
$1,290
|
Purchases of
Property, Plant & Equipment
|
($97)
|
($143)
|
($254)
|
($360)
|
Free Cash
Flow*
|
$45
|
$177
|
$463
|
$930
|
Adjusted Free Cash
Flow*
|
$45
|
$131
|
$420
|
$738
|
|
|
|
|
|
|
|
|
December
31,
|
December
31,
|
Liquidity
|
|
|
2016
|
2015
|
Cash
|
|
|
$698
|
$957
|
Total
Debt
|
|
|
$1,087
|
$1,120
|
|
|
|
|
|
Financial Outlook and Risk to Future Financial
Results
"A major focus in 2017 will revolve around executing our supply
chain strategy, improving our productivity, digitizing our shop
floor, and meeting our customers' requirements for production rate
changes," Gentile concluded.
|
|
|
Table 3.
Financial Outlook Issued February 1, 2017
|
2017
Guidance
|
|
|
|
Revenue
|
|
$6.8 - $6.9
billion
|
|
|
|
Earnings Per Share
(Fully Diluted)
|
|
$4.60 -
$4.85
|
|
|
|
Effective Tax
Rate
|
|
31 -
32%
|
|
|
|
Free Cash
Flow*
|
|
$450 - $500
million
|
|
|
|
Risks to our financial guidance are described more fully in the
Cautionary Statement Regarding Forward-Looking Statements in this
release and in the "Risk Factors" sections of our filings with the
Securities and Exchange Commission.
Segment Results
Fuselage Systems
Fuselage Systems segment revenue in the fourth quarter of 2016
was $819 million, which was slightly
lower than the same period last year, due to lower production
deliveries on the Boeing 747 and 777 programs, partially offset by
higher production deliveries on the Boeing 737 and 767 programs and
higher activity on non-recurring programs. Operating margin for the
fourth quarter of 2016 was 15.6 percent as compared to 17.5 percent
during the same period of 2015. In the fourth quarter of 2016, the
company recorded pretax ($6.8)
million of unfavorable cumulative catch-up adjustments on
mature programs and net forward losses of ($0.4) million.
Propulsion Systems
Propulsion Systems segment revenue in the fourth quarter of 2016
decreased seven percent from the same period last year to
$404 million, driven by lower
production deliveries on the Boeing 747 and 777 programs and lower
net revenues recognized on the Boeing 787 program in accordance
with pricing terms, partially offset by higher revenue recognized
on certain non-recurring Boeing programs. Operating margin for the
fourth quarter of 2016 was 18.6 percent as compared to 22.8 percent
during the same period of 2015. Year-over-year change was primarily
driven by one-time incentive payments received in the fourth
quarter of 2015. In the fourth quarter of 2016, the segment
recorded pretax $3.0 million of
favorable cumulative catch-up adjustments on mature programs and
$4.1 million of favorable changes in
estimates on forward loss programs.
Wing Systems
Wing Systems segment revenue in the fourth quarter of 2016
slightly decreased by one percent from the same period last year to
$347 million, primarily due to lower
production deliveries on the Boeing 747 program, lower wing-related
activity on the Boeing 777 program and lower non-recurring revenue
on certain Boeing programs, partially offset by higher net revenues
recognized on the Boeing 787 due to model mix. Operating margin for
the fourth quarter of 2016 was 14.1 percent as compared to 10.7
percent during the same period of 2015. Year-over-year change was
primarily driven by charges recognized in the fourth quarter of
2015. In the fourth quarter of 2016, the segment recorded pretax
$7.6 million of favorable cumulative
catch-up adjustments on mature programs.
Table 4.
Segment Reporting (unaudited)
|
|
|
|
4th
Quarter
|
Twelve
Months
|
($ in
millions)
|
2016
|
2015
|
Change
|
2016
|
2015
|
Change
|
|
|
|
|
|
|
|
Segment
Revenue
|
|
|
|
|
|
|
Fuselage
Systems
|
$819.1
|
$822.8
|
(0.4%)
|
$3,498.8
|
$3,447.0
|
1.5%
|
Propulsion Systems
|
404.0
|
434.7
|
(7.1%)
|
1,777.3
|
1,750.7
|
1.5%
|
Wing
Systems
|
347.2
|
352.3
|
(1.4%)
|
1,508.7
|
1,437.7
|
4.9%
|
All
Other
|
(0.3)
|
(0.4)
|
|
8.1
|
8.5
|
|
Total Segment
Revenue
|
$1,570.0
|
$1,609.4
|
(2.4%)
|
$6,792.9
|
$6,643.9
|
2.2%
|
|
|
|
|
|
|
|
Segment Earnings
from Operations
|
|
|
|
|
|
|
Fuselage
Systems
|
$127.7
|
$144.1
|
(11.4%)
|
$468.6
|
$607.3
|
(22.8%)
|
Propulsion Systems
|
75.0
|
99.2
|
(24.4%)
|
325.9
|
378.2
|
(13.8%)
|
Wing
Systems
|
48.9
|
37.6
|
30.1%
|
223.6
|
178.5
|
25.3%
|
All
Other
|
(0.4)
|
-
|
|
1.6
|
1.3
|
|
Total Segment
Operating Earnings
|
$251.2
|
$280.9
|
(10.6%)
|
$1,019.7
|
$1,165.3
|
(12.5%)
|
|
|
|
|
|
|
|
Unallocated
Expense
|
|
|
|
|
|
|
Corporate
SG&A
|
($55.9)
|
($60.9)
|
8.2%
|
($228.3)
|
($220.8)
|
(3.4%)
|
Impact of Severe
Weather Event
|
(12.1)
|
-
|
|
(12.1)
|
-
|
|
Research &
Development
|
(7.8)
|
(7.6)
|
(2.6%)
|
(23.8)
|
(27.8)
|
14.4%
|
Cost of
Sales
|
(14.4)
|
(6.6)
|
(118.2%)
|
(30.4)
|
(53.7)
|
43.4%
|
Total Earnings
from Operations
|
$161.0
|
$205.8
|
(21.8%)
|
$725.1
|
$863.0
|
(16.0%)
|
|
|
|
|
|
|
|
Segment Operating
Earnings as % of Revenue
|
|
|
|
|
|
|
Fuselage
Systems
|
15.6%
|
17.5%
|
(190)
BPS
|
13.4%
|
17.6%
|
(420)
BPS
|
Propulsion Systems
|
18.6%
|
22.8%
|
(420)
BPS
|
18.3%
|
21.6%
|
(330)
BPS
|
Wing
Systems
|
14.1%
|
10.7%
|
340
BPS
|
14.8%
|
12.4%
|
240
BPS
|
All
Other
|
133.3%
|
-
|
|
19.8%
|
15.3%
|
|
Total Segment
Operating Earnings as % of Revenue
|
16.0%
|
17.5%
|
(150)
BPS
|
15.0%
|
17.5%
|
(250)
BPS
|
|
|
|
|
|
|
|
Total Operating
Earnings as % of Revenue
|
10.3%
|
12.8%
|
(250)
BPS
|
10.7%
|
13.0%
|
(230)
BPS
|
|
|
|
|
|
|
|
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 "anticipate,"
"believe," "continue," "estimate," "expect," "forecast," "intend,"
"may," "plan," "project," "should," "will," and other similar
words, or phrases, 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, including the timing, execution, and
profitability of new and maturing programs; 2) our ability to
perform our obligations and manage costs related to our new and
maturing commercial, business aircraft and military development
programs and the related recurring production; 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 aircraft demand and build rates of
changing customer preferences for business aircraft, including the
effect of global economic conditions on the business aircraft
market and expanding conflicts or political unrest in the
Middle East or Asia; 6) customer cancellations or deferrals
as a result of global economic uncertainty; 7) the effect of
economic conditions in the industries and markets in which we
operate in the U.S. and globally and any changes therein, including
fluctuations in foreign currency exchange rates; 8) the success and
timely execution of key milestones such as receipt of necessary
regulatory approvals and customer adherence to their announced
schedules; 9) our ability to successfully negotiate future pricing
under our supply agreements with Boeing and our other customers;
10) our ability to enter into profitable supply arrangements with
additional customers; 11) the ability of all parties to satisfy
their performance requirements under existing supply contracts with
our two major customers, Boeing and Airbus, and other customers,
and the risk of nonpayment by such customers; 12) 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; 13) any adverse impact
on the demand for air travel or our operations from the outbreak of
diseases or epidemic or pandemic outbreaks; 14) our ability to
avoid or recover from cyber-based or other security attacks,
information technology failures or other disruptions; 15) returns
on pension plan assets and the impact of future discount rate
changes on pension obligations; 16) our ability to borrow
additional funds or refinance debt; 17) competition from commercial
aerospace original equipment manufacturers and other aerostructures
suppliers; 18) 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 the United Kingdom Bribery Act,
and environmental laws and agency regulations, both in the U.S. and
abroad; 19) any reduction in our credit ratings; 20) our dependence
on our suppliers, as well as the cost and availability of raw
materials and purchased components; 21) our ability to recruit and
retain highly-skilled employees and our relationships with the
unions representing many of our employees; 22) spending by the U.S.
and other governments on defense; 23) 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; 24) our exposure under our existing
senior revolving credit facility to higher interest payments should
interest rates increase substantially; 25) the effectiveness of any
interest rate hedging programs; 26) the effectiveness of our
internal control over financial reporting; 27) the outcome or
impact of ongoing or future litigation, claims and regulatory
actions; and 28) 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.
|
Spirit Shipset
Deliveries
|
|
(one shipset
equals one aircraft)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4th
Quarter
|
|
Twelve
Months
|
|
|
2016
|
2015
|
|
2016
|
2015
|
B737
|
|
116
|
113
|
|
500
|
502
|
B747
|
|
1
|
3
|
|
8
|
15
|
B767
|
|
6
|
5
|
|
25
|
18
|
B777
|
|
19
|
24
|
|
96
|
102
|
B787
|
|
28
|
29
|
|
127
|
126
|
Total
Boeing
|
|
170
|
174
|
|
756
|
763
|
|
|
|
|
|
|
|
A320
Family(1)
|
|
147
|
124
|
|
574
|
494
|
A330/340
|
|
24
|
14
|
|
74
|
77
|
A350
|
|
19
|
14
|
|
69
|
37
|
A380
|
|
5
|
6
|
|
22
|
24
|
Total
Airbus
|
|
195
|
158
|
|
739
|
632
|
|
|
|
|
|
|
|
Business/Regional
Jets
|
|
29
|
20
|
|
88
|
62
|
|
|
|
|
|
|
|
Total
|
|
394
|
352
|
|
1,583
|
1,457
|
|
|
|
|
|
|
|
(1) Third quarter
2016 A320 deliveries have been updated to include composite
units. A320 deliveries were 135 and 427 for the three and nine
month periods
ended September 29, 2016, respectively.
|
Spirit AeroSystems
Holdings, Inc.
|
Condensed
Consolidated Statements of Operations
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended
|
|
For the Twelve
Months Ended
|
|
|
|
December 31,
2016
|
|
December 31,
2015
|
|
December 31,
2016
|
|
December 31,
2015
|
|
|
($ in millions,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
Net
revenues
|
|
$1,570.0
|
|
$1,609.4
|
|
$6,792.9
|
|
$6,643.9
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
|
Cost of
sales
|
|
1,333.2
|
|
1,335.1
|
|
5,803.6
|
|
5,532.3
|
Selling, general and
administrative
|
|
55.9
|
|
60.9
|
|
228.3
|
|
220.8
|
Impact of severe
weather event
|
|
12.1
|
|
-
|
|
12.1
|
|
-
|
Research and
development
|
|
7.9
|
|
7.6
|
|
23.8
|
|
27.8
|
|
Total operating
costs and expenses
|
|
1,409.1
|
|
1,403.6
|
|
6,067.8
|
|
5,780.9
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
160.9
|
|
205.8
|
|
725.1
|
|
863.0
|
Interest expense and
financing fee amortization
|
|
(9.8)
|
|
(11.0)
|
|
(57.3)
|
|
(52.7)
|
Other income
(expense), net
|
|
1.4
|
|
(1.4)
|
|
(7.3)
|
|
(2.2)
|
|
Income before
income taxes and equity in net income of affiliate
|
|
152.5
|
|
193.4
|
|
660.5
|
|
808.1
|
Income tax
provision
|
|
(44.3)
|
|
(55.4)
|
|
(192.1)
|
|
(20.6)
|
|
Income before
equity in net income of affiliate
|
|
108.2
|
|
138.0
|
|
468.4
|
|
787.5
|
Equity in net income
of affiliate
|
|
-
|
|
0.3
|
|
1.3
|
|
1.2
|
|
Net
income
|
|
$108.2
|
|
$138.3
|
|
$469.7
|
|
$788.7
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share
|
|
|
|
|
|
|
|
|
Basic
|
|
$0.90
|
|
$1.02
|
|
$3.72
|
|
$5.69
|
Shares
|
|
120.0
|
|
136.2
|
|
126.1
|
|
138.4
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
$0.89
|
|
$1.01
|
|
$3.70
|
|
$5.66
|
Shares
|
|
121.1
|
|
137.1
|
|
127.0
|
|
139.4
|
|
|
|
|
|
|
|
|
|
|
Dividends declared
per common share
|
|
$0.10
|
|
-
|
|
$0.10
|
|
-
|
Spirit AeroSystems
Holdings, Inc.
|
Condensed
Consolidated Balance Sheets
|
(unaudited)
|
|
|
December 31,
2016
|
|
December 31,
2015
|
|
|
($ in
millions)
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
|
$697.7
|
|
$957.3
|
Accounts receivable,
net
|
|
660.5
|
|
537.0
|
Inventory,
net
|
|
1,515.3
|
|
1,774.4
|
Other current
assets
|
|
36.9
|
|
30.4
|
Total current assets
|
|
2,910.4
|
|
3,299.1
|
Property, plant and
equipment, net
|
|
1,991.6
|
|
1,950.7
|
Pension
assets
|
|
282.3
|
|
246.9
|
Other
assets
|
|
220.9
|
|
267.8
|
Total assets
|
|
$5,405.2
|
|
$5,764.5
|
Current
liabilities
|
|
|
|
|
Accounts
payable
|
|
$579.7
|
|
$618.2
|
Accrued
expenses
|
|
216.2
|
|
230.2
|
Profit
sharing
|
|
101.4
|
|
61.6
|
Current portion of
long-term debt
|
|
26.7
|
|
34.9
|
Advance payments,
short-term
|
|
199.3
|
|
178.3
|
Deferred revenue and
other deferred credits, short-term
|
|
312.1
|
|
285.5
|
Deferred grant income
liability - current
|
|
14.4
|
|
11.9
|
Other current
liabilities
|
|
94.4
|
|
37.7
|
Total current liabilities
|
|
1,544.2
|
|
1,458.3
|
Long-term
debt
|
|
1,060.0
|
|
1,085.3
|
Advance payments,
long-term
|
|
342.0
|
|
507.4
|
Pension/OPEB
obligation
|
|
43.9
|
|
67.7
|
Deferred revenue and
other deferred credits
|
|
146.8
|
|
170.0
|
Deferred grant income
liability - non-current
|
|
63.4
|
|
82.3
|
Other
liabilities
|
|
276.1
|
|
273.5
|
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,
121,642,556 and 135,617,589 shares issued and outstanding,
respectively
|
|
1.2
|
|
1.4
|
Common stock,
Class B par value $0.01, 150,000,000 shares authorized,
zero and 121 shares issued and outstanding,
respectively
|
|
-
|
|
-
|
Additional paid-in
capital
|
|
1,078.9
|
|
1,051.6
|
Accumulated other
comprehensive loss
|
|
(186.9)
|
|
(160.5)
|
Retained
earnings
|
|
2,113.9
|
|
1,656.2
|
Treasury stock, at
cost (23,936,092 and 9,691,865 shares, respectively)
|
|
(1,078.8)
|
|
(429.2)
|
Total shareholders' equity
|
|
1,928.3
|
|
2,119.5
|
Noncontrolling
interest
|
|
0.5
|
|
0.5
|
Total equity
|
|
1,928.8
|
|
2,120.0
|
Total liabilities and equity
|
|
$5,405.2
|
|
$5,764.5
|
Spirit AeroSystems
Holdings, Inc.
|
Condensed
Consolidated Statements of Cash Flows
|
(unaudited)
|
|
|
|
|
|
|
|
For the Twelve
Months Ended
|
|
|
December 31,
2016
|
|
December 31,
2015
|
|
|
($ in
millions)
|
Operating
activities
|
|
|
|
|
Net income
|
|
$469.7
|
|
$788.7
|
Adjustments to
reconcile net income to net cash provided by operating
activities
|
|
|
|
|
Depreciation
expense
|
|
208.6
|
|
180.5
|
Amortization
expense
|
|
0.2
|
|
0.6
|
Amortization of deferred
financing fees
|
|
19.3
|
|
6.9
|
Accretion of customer supply
agreement
|
|
4.9
|
|
2.6
|
Employee stock compensation
expense
|
|
42.5
|
|
26.0
|
Excess tax benefits from
share-based payment arrangements
|
|
0.1
|
|
(10.7)
|
Loss from hedge
contracts
|
|
-
|
|
1.6
|
Loss from foreign currency
transactions
|
|
17.4
|
|
8.6
|
Loss on disposition of
assets
|
|
0.4
|
|
14.7
|
Deferred
taxes
|
|
0.9
|
|
(162.2)
|
Pension and other
post-retirement benefits, net
|
|
3.5
|
|
(26.0)
|
Grant liability
amortization
|
|
(11.9)
|
|
(10.4)
|
Equity in net income of
affiliate
|
|
(1.3)
|
|
(1.2)
|
Changes in assets and
liabilities
|
|
|
|
|
Accounts receivable,
net
|
|
(139.1)
|
|
62.2
|
Inventory, net
|
|
207.8
|
|
(44.2)
|
Accounts payable and accrued
liabilities
|
|
(34.3)
|
|
(89.1)
|
Profit sharing/deferred
compensation
|
|
40.5
|
|
(50.0)
|
Advance payments
|
|
(144.4)
|
|
(113.3)
|
Income taxes
receivable/payable
|
|
(3.3)
|
|
251.9
|
Deferred revenue and other
deferred credits
|
|
12.4
|
|
407.3
|
Other
|
|
23.0
|
|
45.2
|
Net
cash provided by operating activities
|
|
$716.9
|
|
$1,289.7
|
Investing
activities
|
|
|
|
|
Purchase of property, plant
and equipment
|
|
(254.0)
|
|
(360.1)
|
Proceeds from sale of
assets
|
|
0.6
|
|
2.7
|
Net
cash used in investing activities
|
|
($253.4)
|
|
($357.4)
|
Financing
activities
|
|
|
|
|
Proceeds from issuance of
debt
|
|
-
|
|
535.0
|
Proceeds from issuance of
bonds
|
|
299.8
|
|
-
|
Principal payments of
debt
|
|
(36.4)
|
|
(36.5)
|
Payments on term
loan
|
|
-
|
|
(534.9)
|
Payments on bonds
|
|
(300.0)
|
|
-
|
Taxes paid related to net
share settlement awards
|
|
(15.2)
|
|
(20.7)
|
Excess tax benefits from
share-based payment arrangements
|
|
(0.1)
|
|
10.7
|
Debt issuance and financing
costs
|
|
(17.2)
|
|
(4.7)
|
Purchase of treasury
stock
|
|
(649.6)
|
|
(300.0)
|
Net
cash used in financing activities
|
|
($718.7)
|
|
($351.1)
|
Effect of exchange
rate changes on cash and cash equivalents
|
|
(4.4)
|
|
(1.8)
|
Net
(decrease) increase in cash and cash equivalents for the
period
|
|
($259.6)
|
|
$579.4
|
Cash and cash
equivalents, beginning of the period
|
|
957.3
|
|
377.9
|
Cash and cash
equivalents, end of the period
|
|
$697.7
|
|
$957.3
|
Appendix
Management believes that 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 measures. Other companies may
define the measures differently.
Free cash flow is defined as GAAP net cash provided by operating
activities, less capital expenditures for property, plant and
equipment additions. Management believes free cash flow provides
investors with an important perspective on the cash available for
shareholders, debt repayment, 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 such as repayment of
maturing debt. Management uses free cash flow as a measure to
assess both business performance and overall liquidity.
Management considers special items, which may include
termination charges, settlement charges and other items that arise
from time to time, to be outside the ordinary course of our
operations. Management believes that excluding these items provides
a better understanding of the underlying trends in the Company's
operating performance and allows more accurate comparisons of the
Company's operating results to historical performance. The tables
below provide reconciliations between the GAAP and non-GAAP
measures which have been adjusted for special items.
Adjusted
EPS
|
|
|
|
|
|
|
|
|
|
|
|
|
4th
Quarter
|
|
Twelve
Months
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Diluted Earnings
Per Share
|
|
$0.89
|
|
$1.01
|
|
$3.70
|
|
$5.66
|
|
Impact of Airbus
Agreement, CEO Retirement, and Debt Refinancing
|
|
-
|
|
-
|
|
0.86
|
a
|
-
|
|
Impact of Partial
Release of Deferred Tax Asset Valuation Allowance
|
|
-
|
|
(0.06)
|
b
|
-
|
|
(1.74)
|
c
|
Adjusted Diluted
Earnings Per Share
|
|
$0.89
|
|
$0.95
|
|
$4.56
|
|
$3.92
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
Shares
|
|
121.1
|
|
137.1
|
|
127.0
|
|
139.4
|
|
|
|
|
|
|
|
|
|
|
|
a Represents the net
earnings per share impact of the Airbus agreement ($0.68), CEO
retirement costs ($0.11) and debt refinancing charge
($0.07)
|
|
|
|
|
|
|
|
|
|
|
b Represents the net
earnings per share impact of deferred tax asset valuation allowance
of $8.4 million
|
|
|
|
|
|
|
|
|
|
|
c Represents the net
earnings per share impact of deferred tax asset valuation allowance
of $241.9 million
|
Free Cash
Flow
|
($ in
millions)
|
|
|
|
|
|
|
|
|
|
4th
Quarter
|
|
Twelve
Months
|
|
Guidance
|
|
2016
|
2015
|
|
2016
|
2015
|
|
2017
|
|
|
|
|
|
|
|
|
Cash Provided by
Operating Activities
|
$142
|
$320
|
|
$717
|
$1,290
|
|
$700 -
$800
|
Capital
Expenditures
|
(97)
|
(143)
|
|
(254)
|
(360)
|
|
(250 -
300)
|
Free Cash
Flow
|
$45
|
$177
|
|
$463
|
$930
|
|
|
Cash Received under
787 Interim Pricing Agreement
|
-
|
(46)
|
|
(43)
|
(192)
|
|
|
|
|
|
|
|
|
|
|
Adjusted Free Cash
Flow
|
$45
|
$131
|
|
$420
|
$738
|
|
$450 -
$500
|
*Non-GAAP financial measure, see Appendix for reconciliation
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/spirit-aerosystems-holdings-inc-meets-guidance-in-2016-issues-increased-2017-guidance-for-revenue-eps-and-cash-300400105.html
SOURCE Spirit AeroSystems Holdings, Inc.