First Quarter 2014 Consolidated Results
- Total Revenues of $1.7 billion,
up 20 percent y/y
- Reports fully diluted EPS of $1.07; including ($0.08)# for previously
announced debt refinancing; $0.09 for
Malaysian tax holiday; and $0.22 for
the partial release of the deferred tax valuation allowance
- Cash Flow From Operations of $45
million, Free Cash Flow of ($8)
million*
WICHITA,
Kan., May 2, 2014 /CNW/ - Spirit AeroSystems
Holdings, Inc. (NYSE: SPR) reported first quarter 2014 financial
results demonstrating continued robust demand for large commercial
aircraft and strong mature program operating performance. Spirit's
first quarter 2014 revenues were $1.7 billion, up
from $1.4
billion for the same period of 2013 on higher
production volumes and four additional workdays in the quarter.
Operating income was $194 million, up from $145 million for
the same period in 2013, driven by increased volume and favorable
cumulative catch-up adjustments on mature programs.
Net income for the quarter was $154 million, or
$1.07
per fully diluted share, compared to net income of $81 million, or
$0.57
per fully diluted share, in the same period of 2013. The increase
in current quarter income includes tax benefits from the Malaysian
tax holiday and the partial release of the deferred tax valuation
allowance, which were partially offset by the cost of the
previously announced debt refinancing.
Table 1. Summary
Financial Results (unaudited)
|
|
|
1st
Quarter
|
|
($ in millions,
except per share data)
|
2014
|
2013
|
Change
|
|
|
|
|
Revenues
|
$1,729
|
$1,442
|
20%
|
Operating
Income
|
$194
|
$145
|
35%
|
Operating Income
as a % of Revenues
|
11.2%
|
10.0%
|
120
BPS
|
Net
Income
|
$154
|
$81
|
89%
|
Net Income as a %
of Revenues
|
8.9%
|
5.6%
|
330
BPS
|
Earnings Per Share
(Fully Diluted)
|
$1.07
|
$0.57
|
88%
|
Fully Diluted
Weighted Avg Share Count
|
143.7
|
143.1
|
|
|
|
|
|
"Spirit's leadership position on the best-selling airplanes in
the market continues to drive our growth in a sustained commercial
aerospace up cycle," said president and chief executive officer
Larry
Lawson. "Our cost discipline and focus on performance
and accountability are beginning to show results."
"The first quarter demonstrates Spirit's ability to perform. We
were successful in accomplishing the ramp to a new all-time high
rate of 42 airplanes per month on the 737," Lawson continued.
"We also made a significant step forward this quarter,
validating our disciplined approach to decision-making, as we
completed the memorandum of agreement with Boeing for pricing on
our 737, 747, 767 and 777 programs. This agreement represents an
equitable balance between the benefit of rate increases and
investment in our customer's success in the competitive new and
replacement airplane market."
"Looking forward, program execution and operational performance
will contribute to long-term profitable growth as we continue our
focus on mature program growth, investing in product innovation,
and improving costs on maturing programs," Lawson continued.
Spirit's backlog at the end of the first quarter of 2014 was
approximately $41
billion. Spirit calculates backlog based on current
contractual prices for products and volumes from the published firm
order backlogs of Airbus and Boeing, along with firm orders from
other customers.
Spirit updated its contract profitability estimates during the
first quarter of 2014, resulting in pre-tax $17 million, or
$0.08
per share#, favorable cumulative catch-up adjustments on
mature programs.
In comparison, the first quarter of 2013 operating income
included pre-tax $20
million favorable cumulative catch-up adjustments and
a pre-tax ($15)
million charge on the 787 program.
Free cash flow was a ($8) million* use of cash for the first
quarter of 2014, compared to a ($125) million* use of cash for the first
quarter of 2013 reflecting the benefit of tax refunds, better
capital expenditure management, and increased operating cash.
(Table 2)
Table 2. Cash
Flow and Liquidity (unaudited)
|
|
|
1st
Quarter
|
($ in
millions)
|
2014
|
2013
|
|
|
|
Cash Flow from
Operations
|
$45
|
($45)
|
Purchases of
Property, Plant & Equipment
|
($53)
|
($80)
|
Free Cash
Flow*
|
($8)
|
($125)
|
|
|
|
|
April
3,
|
December
31,
|
Liquidity
|
2014
|
2013
|
|
|
|
Cash
|
$382
|
$421
|
Total
Debt
|
$1,234
|
$1,167
|
|
|
|
Cash balances at the end of the quarter were $382 million, not
including $73
million of restricted cash reserved for redemption of
the 2017 Notes outstanding. Debt balances were $1,234 million,
including $73
million of the 2017 Notes outstanding. At the end of
the first quarter of 2014, the company's $650 million credit
facility remained undrawn.
On March 18,
2014, the company refinanced its 2017 Senior Notes
through the issuance by Spirit AeroSystems, Inc. of $300 million
aggregate principal amount of 5.25 percent Senior Notes due
March 15,
2022. The company redeemed $227 million of the
2017 Notes March 18,
2014 and on April 1, 2014, the company notified the
trustee of its election to call for redemption on May 1, 2014 the
$73
million aggregate of 2017 Notes remaining
outstanding.
In addition, the company further amended the Credit Agreement to
provide for a new $540 million senior secured term loan B
with a maturity date of Sept. 15, 2020, which replaced the
$540
term loan B that was scheduled to mature on April 18, 2019. The
new term loan bears interest, at the company's option, at LIBOR
plus 2.50 percent with a LIBOR floor of 0.75 percent or base rate
plus 1.50 percent, and includes a reduced covenant package when
compared to the pre-amendment facility.
During the first quarter of 2014, the company's credit rating
was confirmed at Ba2 rating, negative outlook by Moody Investor
Services and lowered to a BB- rating, stable outlook by Standard
and Poor's.
Financial Outlook and Risk to Future Financial
Results
Spirit revenue guidance remains unchanged for the full-year 2014
and is expected to be between $6.5 - $6.7 billion based on Boeing's 2014
delivery guidance of 715 to 725 aircraft; expected Airbus
deliveries in 2014 at a similar level to those in 2013; internal
Spirit forecasts for other customer production activities; expected
non-production revenues; and foreign exchange rates generally
consistent with those for the fourth quarter of 2013.
Fully diluted earnings per share guidance for 2014 remains
unchanged and is expected to be between $2.50 - $2.65 per
share.
Free cash flow guidance is increased and is now expected to be
approximately $200
million*, with capital expenditures consistent with
those for the full year of 2013.
The effective tax rate for 2014 is forecast to be approximately
31.0 - 32.0 percent, reflecting 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 May 2, 2014
|
|
2013
Actual
|
|
2014
Guidance
|
|
|
|
|
|
Revenues
|
|
$6.0
billion
|
|
$6.5 - $6.7
billion
|
|
|
|
|
|
Earnings (Loss)
Per Share (Fully Diluted)
|
|
($4.40)
|
|
$2.50 -
$2.65
|
|
|
|
|
|
Effective Tax
Rate**
|
|
(44.4%)
|
|
~31.0% -
32.0%
|
|
|
|
|
|
Free Cash
Flow*
|
|
($12)
million
|
|
~$200
million
|
|
|
|
|
|
Segment Results
Fuselage Systems
Fuselage Systems segment revenues for the first quarter of 2014
were $858
million, up from $718 million for the same period last year
due to higher production volumes. Operating margin for the first
quarter of 2014 was 16.5 percent as compared to 17.6(1)
(2) percent during the same period of 2013. In the first
quarter of 2014 the segment recorded pre-tax $9 million
favorable cumulative catch-up adjustments on mature programs. In
comparison, the segment realized pre-tax $11 million
favorable cumulative catch-up adjustments in the first quarter of
2013.
Propulsion Systems
Propulsion Systems segment revenues in the first quarter of 2014
rose to $450
million, from $375 million for the same period last year
on higher production volumes. Operating margin for the first
quarter of 2014 was 17.8 percent as compared to 18.2(1)
(2) percent in the first quarter of 2013. In the first
quarter of 2014 the segment realized pre-tax $5 million
favorable cumulative catch-up adjustments on mature programs. In
comparison, the segment reported pre-tax $10 million
favorable cumulative catch-up adjustments in the first quarter of
2013.
Wing Systems
Wing Systems segment revenues in the first quarter of 2014
increased to $414
million from $343 million for same period last year on
higher production volumes. Operating margin for the first quarter
of 2014 was 12.1 percent as compared to 6.0(1) (2)
percent during the same period of 2013. In the first quarter of
2014 the segment recorded pre-tax $3 million
favorable cumulative catch-up adjustments on mature programs. In
comparison, in the first quarter of 2013 the segment recorded
pre-tax unfavorable cumulative catch-up adjustments of less than
($1)
million and a pre-tax ($15) million
forward loss charge on the 787 program.
(1)
|
For 2013, corporate
SG&A of $2.3 million, $1.2 million, and $1.2 million was
reclassified from segment income for the Fuselage, Propulsion, and
Wing Systems, respectively, to conform to current year
presentation.
|
(2)
|
For 2013, research
and development of $2.7 million, $1.9 million, and $1.1 million was
reclassified from segment income for the Fuselage, Propulsion, and
Wing Systems, respectively, to conform to current year
presentation.
|
|
# The
earnings per share amount is presented net of income taxes of
32.0%.
|
|
* Non-GAAP financial
measure, see Appendix for reconciliation.
|
|
** Effective tax rate
guidance, among other factors, assumes the benefit attributable to
the extension of the U.S. Research Tax Credit (Assumes ~0.5%
benefit) 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.
|
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, conflicts in the Middle East or Asia, and the
impact of continuing instability in global financial and credit
markets; 6) the success and timely execution of key milestones,
such as certification and first delivery of Airbus' A350 XWB
aircraft program, 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; 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
foreign currency 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)
|
|
1st
Quarter
|
($ in
millions)
|
2014
|
2013
|
Change
|
|
|
|
|
Segment
Revenues
|
|
|
|
Fuselage
Systems
|
$858.3
|
$717.9
|
19.6%
|
Propulsion
Systems
|
450.2
|
375.3
|
20.0%
|
Wing
Systems
|
414.2
|
343.3
|
20.7%
|
All Other
|
5.8
|
5.7
|
|
Total Segment
Revenues
|
$1,728.5
|
$1,442.2
|
19.9%
|
|
|
|
|
Segment Earnings
from Operations
|
|
|
|
Fuselage
Systems
|
$142.0
|
$126.4
|
12.3%
|
Propulsion
Systems
|
80.2
|
68.4
|
17.3%
|
Wing
Systems
|
50.0
|
20.5
|
143.9%
|
All Other
|
0.1
|
1.6
|
|
Total Segment
Operating Earnings(1) (2)
|
$272.3
|
$216.9
|
25.5%
|
|
|
|
|
Unallocated
Expense
|
|
|
|
Corporate
SG&A(1)
|
($60.5)
|
($44.3)
|
36.6%
|
Impact From Severe
Weather Event
|
-
|
(8.8)
|
|
Research &
Development(2)
|
(6.3)
|
(7.5)
|
(16.0%)
|
Cost of
Sales
|
(11.1)
|
(11.8)
|
(5.9%)
|
Total Earnings
from Operations
|
$194.4
|
$144.5
|
34.5%
|
|
|
|
|
Segment Operating
Earnings as % of Revenues
|
|
|
|
Fuselage
Systems
|
16.5%
|
17.6%
|
(110)
BPS
|
Propulsion
Systems
|
17.8%
|
18.2%
|
(40)
BPS
|
Wing
Systems
|
12.1%
|
6.0%
|
610
BPS
|
All Other
|
1.7%
|
28.1%
|
|
Total Segment
Operating Earnings as % of Revenues
|
15.8%
|
15.0%
|
80
BPS
|
|
|
|
|
Total Operating
Earnings as % of Revenues
|
11.2%
|
10.0%
|
120
BPS
|
|
|
|
|
|
|
(1)
|
For 2013, corporate
SG&A of $2.3 million, $1.2 million, and $1.2 million was
reclassified from segment income for the Fuselage, Propulsion, and
Wing Systems, respectively, to conform to current year
presentation.
|
(2)
|
For 2013, research
and development of $2.7 million, $1.9 million, and $1.1 million was
reclassified from segment income for the Fuselage, Propulsion, and
Wing Systems, respectively, to conform to current year
presentation.
|
Spirit Ship Set
Deliveries
|
(one ship set
equals one aircraft)
|
|
|
|
|
|
|
2013 Spirit
AeroSystems Deliveries
|
|
|
1st Qtr
|
2nd Qtr
|
3rd Qtr
|
4th Qtr
|
Total 2013
|
B737
|
106
|
115
|
114
|
107
|
442
|
B747
|
6
|
4
|
6
|
3
|
19
|
B767
|
6
|
5
|
3
|
1
|
15
|
B777
|
24
|
25
|
26
|
24
|
99
|
B787
|
17
|
14
|
15
|
19
|
65
|
Total
|
159
|
163
|
164
|
154
|
640
|
|
|
|
|
|
|
A320
Family*
|
129
|
131
|
116
|
130
|
506
|
A330/340
|
27
|
30
|
26
|
30
|
113
|
A350
|
2
|
1
|
1
|
4
|
8
|
A380
|
7
|
10
|
9
|
8
|
34
|
Total
|
165
|
172
|
152
|
172
|
661
|
|
|
|
|
|
|
Business/Regional
Jet
|
20
|
19
|
27
|
31
|
97
|
|
|
|
|
|
|
Total
Spirit
|
344
|
354
|
343
|
357
|
1,398
|
|
|
|
|
|
|
|
|
|
|
|
|
2014 Spirit
AeroSystems Deliveries
|
|
|
1st Qtr**
|
2nd Qtr
|
3rd Qtr
|
4th Qtr
|
YTD 2014
|
B737
|
125
|
|
|
|
125
|
B747
|
5
|
|
|
|
5
|
B767
|
3
|
|
|
|
3
|
B777
|
26
|
|
|
|
26
|
B787
|
31
|
|
|
|
31
|
Total
|
190
|
|
|
|
190
|
|
|
|
|
|
|
A320
Family
|
128
|
|
|
|
128
|
A330/340
|
30
|
|
|
|
30
|
A350
|
2
|
|
|
|
2
|
A380
|
7
|
|
|
|
7
|
Total
|
167
|
|
|
|
167
|
|
|
|
|
|
|
Business/Regional
Jet
|
35
|
|
|
|
35
|
|
|
|
|
|
|
Total
Spirit
|
392
|
|
|
|
392
|
* 2013 A320
deliveries have been updated for the purpose of measuring wing ship
set deliveries, from weighted average to total ship set.
|
|
** Includes four
additional workdays as compared to prior year period.
|
Spirit AeroSystems
Holdings, Inc.
|
Condensed
Consolidated Statements of Operations
|
(unaudited)
|
|
|
|
|
|
|
|
For the Three
Months Ended
|
|
|
|
April 3,
2014
|
|
March 28,
2013
|
|
|
($ in millions,
except per share data)
|
|
|
|
|
|
|
Net
revenues
|
|
$1,728.5
|
|
$1,442.2
|
Operating costs and
expenses:
|
|
|
|
|
Cost of
sales
|
|
1,467.3
|
|
1,237.1
|
Selling, general and
administrative
|
|
60.5
|
|
44.3
|
Impact from severe
weather event
|
|
-
|
|
8.8
|
Research and
development
|
|
6.3
|
|
7.5
|
|
Total operating
costs and expenses
|
|
1,534.1
|
|
1,297.7
|
|
Operating
income
|
|
194.4
|
|
144.5
|
Interest expense and
financing fee amortization
|
|
(35.4)
|
|
(17.6)
|
Interest
income
|
|
0.1
|
|
0.1
|
Other income
(expense), net
|
|
1.2
|
|
(9.9)
|
|
Income before
income taxes and equity in net income (loss) of
affiliate
|
|
160.3
|
|
117.1
|
Income tax
provision
|
|
(6.9)
|
|
(35.7)
|
|
Income before
equity in net income (loss) of affiliate
|
|
153.4
|
|
81.4
|
Equity in net income
(loss) of affiliate
|
|
0.2
|
|
(0.2)
|
|
Net
income
|
|
$153.6
|
|
$81.2
|
|
|
|
|
|
|
Earnings per
share
|
|
|
|
|
Basic
|
|
$1.08
|
|
$0.57
|
Shares
|
|
141.6
|
|
141.0
|
|
|
|
|
|
|
Diluted
|
|
$1.07
|
|
$0.57
|
Shares
|
|
143.7
|
|
143.1
|
Spirit AeroSystems
Holdings, Inc.
|
Condensed
Consolidated Balance Sheets
|
(unaudited)
|
|
|
April 3,
2014
|
|
December 31,
2013
|
|
|
($ in
millions)
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
|
$382.1
|
|
$420.7
|
Short-term
investments
|
|
0.3
|
|
-
|
Restricted
cash
|
|
72.8
|
|
-
|
Accounts receivable,
net
|
|
746.5
|
|
550.8
|
Inventory,
net
|
|
1,868.9
|
|
1,842.6
|
Other current
assets
|
|
46.8
|
|
130.1
|
Total current
assets
|
|
3,117.4
|
|
2,944.2
|
Property, plant and
equipment, net
|
|
1,800.8
|
|
1,803.3
|
Pension
assets
|
|
262.3
|
|
252.6
|
Other
assets
|
|
121.5
|
|
107.1
|
Total
assets
|
|
$5,302.0
|
|
$5,107.2
|
Current
liabilities
|
|
|
|
|
Accounts
payable
|
|
$758.1
|
|
$753.7
|
Accrued
expenses
|
|
253.6
|
|
220.6
|
Current portion of
long-term debt
|
|
81.6
|
|
16.8
|
Advance payments,
short-term
|
|
54.8
|
|
133.5
|
Deferred revenue,
short-term
|
|
25.0
|
|
19.8
|
Other current
liabilities
|
|
154.6
|
|
191.2
|
Total current
liabilities
|
|
1,327.7
|
|
1,335.6
|
Long-term
debt
|
|
1,152.8
|
|
1,150.5
|
Advance payments,
long-term
|
|
777.0
|
|
728.9
|
Deferred revenue and
other deferred credits
|
|
30.0
|
|
30.9
|
Pension/OPEB
obligation
|
|
71.2
|
|
69.8
|
Other
liabilities
|
|
305.2
|
|
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, 127,540,704 and
120,946,429 shares issued, respectively
|
|
1.3
|
|
1.2
|
Common stock, Class B
par value $0.01, 150,000,000 shares authorized, 17,224,491 and
23,851,694 shares issued, respectively
|
|
0.2
|
|
0.2
|
Additional paid-in
capital
|
|
1,028.2
|
|
1,025.0
|
Accumulated other
comprehensive loss
|
|
(54.4)
|
|
(54.6)
|
Retained
earnings
|
|
662.3
|
|
508.7
|
Total shareholders'
equity
|
|
1,637.6
|
|
1,480.5
|
Noncontrolling
interest
|
|
0.5
|
|
0.5
|
Total
equity
|
|
1,638.1
|
|
1,481.0
|
Total liabilities and
equity
|
|
$5,302.0
|
|
$5,107.2
|
Spirit AeroSystems
Holdings, Inc.
|
Condensed
Consolidated Statements of Cash Flows
|
(unaudited)
|
|
|
|
|
|
|
|
For the Three
Months Ended
|
|
|
April 3,
2014
|
|
March 28,
2013
|
|
|
($ in
millions)
|
Operating
activities
|
|
|
|
|
Net income
|
|
$153.6
|
|
$81.2
|
Adjustments to
reconcile net income to net cash provided by (used in) operating
activities
|
|
|
Depreciation
expense
|
|
41.3
|
|
39.3
|
Amortization
expense
|
|
20.4
|
|
2.8
|
Accretion of customer
supply agreement
|
|
0.1
|
|
0.1
|
Employee stock
compensation expense
|
|
3.7
|
|
3.7
|
Excess tax benefits
from share-based payment arrangements
|
|
(0.5)
|
|
-
|
(Gain) on disposition
of assets
|
|
-
|
|
(0.1)
|
(Gain) on
effectiveness of hedge contracts
|
|
(0.6)
|
|
(0.8)
|
Loss from foreign
currency transactions
|
|
1.8
|
|
10.2
|
Deferred
taxes
|
|
(0.3)
|
|
18.6
|
Long-term tax
provision
|
|
-
|
|
0.7
|
Pension and other
post-retirement benefits, net
|
|
(8.0)
|
|
(3.3)
|
Grant
income
|
|
(2.0)
|
|
(1.6)
|
Equity in net
(income) loss of affiliate
|
|
(0.2)
|
|
0.2
|
Changes in assets and
liabilities
|
|
|
|
|
Accounts
receivable
|
|
(196.7)
|
|
(167.7)
|
Inventory,
net
|
|
(51.6)
|
|
(94.4)
|
Accounts payable and
accrued liabilities
|
|
28.9
|
|
61.4
|
Advance
payments
|
|
(30.6)
|
|
(12.0)
|
Deferred revenue and
other deferred credits
|
|
4.8
|
|
(0.7)
|
Other
|
|
80.9
|
|
17.0
|
Net cash provided
by (used in) operating activities
|
|
45.0
|
|
(45.4)
|
Investing
activities
|
|
|
|
|
Purchase of property,
plant and equipment
|
|
(53.0)
|
|
(74.4)
|
Purchase of property,
plant and equipment - severe weather related expenses
|
|
-
|
|
(5.8)
|
Other
|
|
0.1
|
|
2.2
|
Net cash (used in)
investing activities
|
|
(52.9)
|
|
(78.0)
|
Financing
activities
|
|
|
|
|
Proceeds from
issuance of bonds
|
|
300.0
|
|
-
|
Principal payments of
debt
|
|
(9.5)
|
|
(2.6)
|
Payment on
bonds
|
|
(227.2)
|
|
-
|
Debt issuance and
financing costs
|
|
(19.2)
|
|
-
|
Change in restricted
cash
|
|
(72.8)
|
|
-
|
Excess tax benefits
from share-based payment arrangements
|
|
0.5
|
|
-
|
Net cash (used in)
financing activities
|
|
(28.2)
|
|
(2.6)
|
Effect of exchange
rate changes on cash and cash equivalents
|
|
(2.5)
|
|
(1.6)
|
Net (decrease) in
cash and cash equivalents for the period
|
|
(38.6)
|
|
(127.6)
|
Cash and cash
equivalents, beginning of the period
|
|
420.7
|
|
440.7
|
Cash and cash
equivalents, end of the period
|
|
$382.1
|
|
$313.1
|
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
|
|
|
|
|
|
|
|
|
1st
Quarter
|
|
Full-Year
|
|
Guidance
|
|
2014
|
2013
|
|
2013
|
|
2014
|
|
|
|
|
|
|
|
Cash Provided by
Operating Activities
|
$45.0
|
($45.4)
|
|
$260.6
|
|
$430 -
$455
|
Capital
Expenditures
|
(53.0)
|
(80.2)
|
|
(272.6)
|
|
(230) -
(255)
|
Free Cash
Flow
|
($8.0)
|
($125.6)
|
|
($12.0)
|
|
~$200
|
Photo -
http://photos.prnewswire.com/prnh/20130515/CG13652LOGO
SOURCE Spirit AeroSystems Holdings, Inc.