WICHITA, Kan., Feb. 3, 2016 /PRNewswire/ --
Fourth Quarter 2015 Consolidated Results
- Total Revenues of $1.6 billion,
up 2% y/y
- Reports fully diluted EPS of $1.01, adjusted EPS of $0.95* excluding the impact of deferred tax asset
valuation allowance
- Free Cash Flow of $177
million*
- Records a charge of $7.3 million
on the 747 program as a result of production rate decrease starting
in September 2016
Full-Year 2015 Consolidated Results
- Total Revenues of $6.6 billion,
down 2% y/y
- Reports fully diluted EPS of $5.66, adjusted EPS of $3.92* excluding the impact of deferred tax asset
valuation allowance
- Free Cash Flow of $930
million*
- Total backlog of ~$47
billion
Key Announcements
- Issues Full-Year 2016 Guidance: Revenues $6.6 - $6.7 billion, Earnings Per Share of
$4.15 - $4.35, Free Cash Flow of
$350 - $400 million*
- Completion of $350 million share
repurchase program; Announces a new share repurchase
program of up to $600 million
through December 31, 2017
Spirit AeroSystems Holdings, Inc. [NYSE: SPR] reported fourth
quarter and full-year 2015 financial results driven by strong
operating performance of mature programs. Spirit's fourth
quarter 2015 revenues were $1.61
billion, up 2 percent from revenues of $1.57 billion for the same period of 2014,
primarily due to higher revenues on the A350 XWB program
driven by higher production deliveries.
Table 1.
Summary Financial Results (unaudited)
|
|
|
|
|
4th
Quarter
|
|
Twelve
Months
|
|
($ in millions,
except per share data)
|
2015
|
2014
|
Change
|
2015
|
2014
|
Change
|
|
|
|
|
|
|
|
Revenues
|
$1,609
|
$1,574
|
2%
|
$6,644
|
$6,799
|
(2%)
|
Operating Income
(Loss)
|
$206
|
($273)
|
175%
|
$863
|
$354
|
144%
|
Operating Income
(Loss) as a % of Revenues
|
12.8%
|
(17.3%)
|
3,010
BPS
|
13.0%
|
5.2%
|
780
BPS
|
Net Income
(Loss)
|
$138
|
($106)
|
230%
|
$789
|
$359
|
120%
|
Net Income (Loss)
as a % of Revenues
|
8.6%
|
(6.7%)
|
1,530
BPS
|
11.9%
|
5.3%
|
660
BPS
|
Earnings (Loss)
Per Share (Fully Diluted)
|
$1.01
|
($0.77)
|
231%
|
$5.66
|
$2.53
|
124%
|
Fully Diluted
Weighted Avg Share Count
|
137.1
|
138.8
|
|
139.4
|
141.6
|
|
|
|
|
|
|
|
|
Operating income for the fourth quarter of 2015 was $206 million compared to operating loss of
($273) million in the fourth quarter
of 2014 primarily due to the Gulfstream divestiture. Net income for
the quarter was $138 million, or
$1.01 per share, compared to net loss
of ($106) million, or ($0.77) per share, in the same period of 2014.
Revenue for the full-year 2015 declined 2 percent to $6.6 billion primarily due to the Gulfstream wing
divestiture and lower revenues recognized on the 787 program.
Operating income for the full-year was $863
million compared to operating income of $354 million for the prior year. Full-year
net income was $789 million, or
$5.66 per share, compared to net
income of $359 million, or
$2.53 per share in 2014. (Table
1)
"Operationally, we had a very good year. We met our
quality and delivery commitments to our customers. Both
Boeing and Airbus achieved a record number of aircraft deliveries
in 2015 reflecting continued strong demand for these best-selling
airplanes. We are proud to be a key supplier to these
important customers," said President and Chief Executive Officer
Larry Lawson.
"We delivered the first 737 MAX fuselage and components to
Boeing on schedule, and the first A350-1000 fixed leading edge and
fuselage to Airbus on schedule. Our customers achieved key
milestones last year with the certification of the A320 NEO and the
delivery of fourteen A350s by Airbus, and the completion of final
assembly of the first 737 MAX and the first flight of the KC-46
refueling tanker by Boeing," Lawson added.
"Financially, we generated record cash and record earnings per
share. We were active in the market last year and bought 5.7
million shares, or 4 percent of our total outstanding shares, for
$300 million. We used the
remaining $50 million of our share
repurchase authorization early this year," Lawson added.
"Looking ahead to 2016, we intend to build upon the success that
we've achieved over the last two years through a comprehensive
treatment of all cost from logistics to the supply chain," Lawson
concluded.
The Board of Directors has authorized a new share repurchase
program of up to $600 million of
Spirit's common stock under which repurchases may be made
intermittently through December 31,
2017.
Spirit's backlog at the end of the fourth quarter of 2015
increased by 1.4 percent from the previous quarter to $47 billion as orders exceeded deliveries.
Spirit updated its contract profitability estimates during the
fourth quarter of 2015 resulting in pretax $8.5 million, or $0.04 per share, favorable cumulative catch-up
adjustments on mature programs due to improved performance and
reduced risks. Additionally, the company recorded a favorable
change in estimates on forward-loss programs of $5.7 million, or $0.03 per share. In comparison, Spirit
recorded pretax $63 million, or
$0.31 per share, favorable cumulative
catch-up adjustments and a favorable change in estimates on
forward-loss programs of $27 million,
or $0.13 per share, in the fourth
quarter of 2014.
Adjusted free cash flow from operations was a $131 million* source of cash for the fourth
quarter of 2015, compared to a $107
million* source of cash in the fourth quarter of 2014.
Full-year adjusted free cash flow was a $738
million* source of cash compared to a $302 million* source of cash in 2014. (Table
2)
Table 2.
Cash Flow and Liquidity (unaudited)
|
|
|
|
|
4th
Quarter
|
Twelve
Months
|
($ in
millions)
|
2015
|
2014
|
2015
|
2014
|
|
|
|
|
|
Cash Flow from
Operations
|
$320
|
$33
|
$1,290
|
$362
|
Purchases of
Property, Plant & Equipment
|
($143)
|
($86)
|
($360)
|
($220)
|
Free Cash
Flow*
|
$177
|
($53)
|
$930
|
$142
|
Adjusted Free Cash
Flow*
|
$131
|
$107
|
$738
|
$302
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
December
31,
|
Liquidity
|
|
|
2015
|
2014
|
|
|
|
|
|
Cash
|
|
|
$957
|
$378
|
Total
Debt
|
|
|
$1,133
|
$1,154
|
|
|
|
|
|
Cash balance at the end of the year was $957 million, reflecting the purchase of 5.7
million shares, or 4 percent of our total outstanding shares, for
$300 million. At the end of
2015, the company's $650 million
revolving credit facility remained undrawn. Debt balances at
the end of the fourth quarter of 2015 were $1.1 billion. The company's credit rating
remained unchanged at the end of the fourth quarter 2015.
Financial Outlook and Risk to Future Financial
Results
Spirit revenue for the full-year 2016 is expected to be
$6.6 - $6.7 billion. Fully
diluted earnings per share for 2016 is expected to be $4.15 - $4.35 per share. Free cash flow is
expected to be between $350 million and $400
million*, with capital expenditures ranging between
$225 million and $275 million. The
effective tax rate for 2016 is forecasted to be approximately 31.5
– 32.5 percent. (Table 3)
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" section of our filings with the
Securities and Exchange Commission.
Table 3.
Financial Outlook Issued February 3, 2016
|
2016
Guidance
|
|
|
Revenues
|
$6.6 - $6.7
billion
|
|
|
Earnings Per Share
(Fully Diluted)
|
$4.15 -
$4.35
|
|
|
Effective Tax
Rate
|
~31.5% -
32.5%
|
|
|
Free Cash
Flow*
|
$350 - $400
million
|
|
|
Segment Results
Fuselage Systems
Fuselage Systems segment revenues in the fourth quarter of 2015
were $823 million, up from
$788 million for the same period last
year. Operating margin for the fourth quarter of 2015 was
17.5 percent as compared to 17.9 percent during the same period of
2014. In the fourth quarter of 2015, the segment recorded pretax
$1 million favorable cumulative
catch-up adjustments on mature programs, and a favorable change in
estimates on forward-loss programs of $2.3
million. In comparison, the company recorded pretax
$28 million favorable cumulative
catch-up adjustments on mature programs, and a favorable change in
estimates on forward-loss programs of $11
million on the 747-8 and 767 programs combined in the fourth
quarter of 2014.
Propulsion Systems
Propulsion Systems segment revenues in the fourth quarter of
2015 were $435 million compared to
$385 million for the same period last
year. Operating margin for the fourth quarter of 2015 was
22.8 percent as compared to 27.7 percent in the fourth quarter of
2014. In the fourth quarter of 2015, the segment realized
pretax $4.2 million favorable
cumulative catch-up adjustments on mature programs, and a favorable
change in estimates on forward-loss programs of $3.7 million. In comparison, the segment
realized pretax $21 million favorable
cumulative catch-up adjustments on mature programs and recorded a
favorable change in estimates on forward-loss programs of
$16 million on the BR725 and 767
programs combined in the fourth quarter of 2014.
Wing Systems
Wing Systems segment revenues in the fourth quarter of 2015 were
$352 million, down from $397 million for the same period last year
primarily due to the Gulfstream divestiture. Operating margin for
the fourth quarter of 2015 was 10.7 percent as compared to 15.2
percent during the same period of 2014. In the fourth quarter
of 2015, the segment recorded pretax $3.3
million favorable cumulative catch-up adjustments on mature
programs and a favorable change in estimate of $6.3 million on the non-recurring A350 XWB
program and a forward loss of $6.6
million on the 747-8 program. In comparison, the segment
recorded pretax $14 million favorable
cumulative catch-up adjustments on mature programs in the fourth
quarter of 2014.
Table 4.
Segment Reporting (unaudited)
|
|
|
|
4th
Quarter
|
Twelve
Months
|
($ in
millions)
|
2015
|
2014
|
Change
|
2015
|
2014
|
Change
|
|
|
|
|
|
|
|
Segment
Revenues
|
|
|
|
|
|
|
Fuselage
Systems
|
$822.8
|
$787.6
|
4.5%
|
$3,447.0
|
$3,354.9
|
2.7%
|
Propulsion Systems
|
434.7
|
384.7
|
13.0%
|
1,750.7
|
1,737.2
|
0.8%
|
Wing
Systems
|
352.3
|
397.2
|
(11.3%)
|
1,437.7
|
1,695.9
|
(15.2%)
|
All
Other
|
(0.4)
|
4.9
|
|
8.5
|
11.2
|
|
Total Segment
Revenues
|
$1,609.4
|
$1,574.4
|
2.2%
|
$6,643.9
|
$6,799.2
|
(2.3%)
|
|
|
|
|
|
|
|
Segment Earnings
from Operations
|
|
|
|
|
|
|
Fuselage
Systems
|
$144.1
|
$140.7
|
2.4%
|
$607.3
|
$557.3
|
9.0%
|
Propulsion Systems
|
99.2
|
106.7
|
(7.0%)
|
378.2
|
354.9
|
6.6%
|
Wing
Systems
|
37.6
|
60.5
|
(37.9%)
|
178.5
|
244.6
|
(27.0%)
|
All
Other
|
-
|
3.4
|
|
1.3
|
3.4
|
|
Total Segment
Operating Earnings
|
$280.9
|
$311.3
|
(9.8%)
|
$1,165.3
|
$1,160.2
|
0.4%
|
|
|
|
|
|
|
|
Unallocated
Expense
|
|
|
|
|
|
|
Corporate
SG&A
|
($60.9)
|
($68.9)
|
(11.6%)
|
($220.8)
|
($233.8)
|
(5.6%)
|
Research &
Development
|
(7.6)
|
(7.5)
|
1.3%
|
(27.8)
|
(29.3)
|
(5.1%)
|
Cost of
Sales
|
(6.6)
|
(36.7)
|
(82.0%)
|
(53.7)
|
(72.0)
|
(25.4%)
|
Loss on Divestiture
of Programs
|
-
|
(471.1)
|
|
-
|
(471.1)
|
|
Total Earnings
(Loss) from Operations
|
$205.8
|
($272.9)
|
175.4%
|
$863.0
|
$354.0
|
143.8%
|
|
|
|
|
|
|
|
Segment Operating
Earnings as % of Revenues
|
|
|
|
|
|
|
Fuselage
Systems
|
17.5%
|
17.9%
|
(40)
BPS
|
17.6%
|
16.6%
|
100 BPS
|
Propulsion Systems
|
22.8%
|
27.7%
|
(490)
BPS
|
21.6%
|
20.4%
|
120
BPS
|
Wing
Systems
|
10.7%
|
15.2%
|
(450)
BPS
|
12.4%
|
14.4%
|
(200)
BPS
|
All
Other
|
-
|
69.4%
|
|
15.3%
|
30.4%
|
|
Total Segment
Operating Earnings as % of Revenues
|
17.5%
|
19.8%
|
(230)
BPS
|
17.5%
|
17.1%
|
40
BPS
|
|
|
|
|
|
|
|
Total Operating
Earnings (Loss) as % of Revenues
|
12.8%
|
(17.3%)
|
3,010
BPS
|
13.0%
|
5.2%
|
780
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, Airbus 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 secured 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
|
|
|
2015
|
2014
|
|
2015
|
2014
|
B737
|
|
113
|
114
|
|
502
|
493
|
B747
|
|
3
|
4
|
|
15
|
18
|
B767
|
|
5
|
4
|
|
18
|
14
|
B777
|
|
24
|
22
|
|
102
|
99
|
B787
|
|
29
|
28
|
|
126
|
118
|
Total
|
|
174
|
172
|
|
763
|
742
|
|
|
|
|
|
|
|
A320
Family
|
|
124
|
124
|
|
494
|
505
|
A330/340
|
|
14
|
26
|
|
77
|
113
|
A350
|
|
14
|
5
|
|
37
|
16
|
A380
|
|
6
|
7
|
|
24
|
29
|
Total
|
|
158
|
162
|
|
632
|
663
|
|
|
|
|
|
|
|
Business/Regional
Jet
|
|
20
|
35
|
|
62
|
140
|
|
|
|
|
|
|
|
Total
Spirit
|
|
352
|
369
|
|
1,457
|
1,545
|
Spirit AeroSystems
Holdings, Inc.
|
Condensed
Consolidated Statements of Operations
|
(unaudited)
|
|
|
|
|
|
|
|
For the Three
Months Ended
|
|
For the Twelve
Months Ended
|
|
|
December 31,
2015
|
|
December 31,
2014
|
|
December 31,
2015
|
|
December 31,
2014
|
|
|
($ in millions,
except per share data)
|
|
|
|
|
|
|
|
|
|
Net
revenues
|
$1,609.4
|
|
$1,574.4
|
|
$6,643.9
|
|
$6,799.2
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
Cost of
sales
|
1,335.1
|
|
1,299.8
|
|
5,532.3
|
|
5,711.0
|
Selling, general and
administrative
|
60.9
|
|
68.9
|
|
220.8
|
|
233.8
|
Research and
development
|
7.6
|
|
7.5
|
|
27.8
|
|
29.3
|
Loss on divestiture
of programs
|
-
|
|
471.1
|
|
-
|
|
471.1
|
|
|
|
|
|
|
|
|
|
|
Total operating
costs and expenses
|
1,403.6
|
|
1,847.3
|
|
5,780.9
|
|
6,445.2
|
|
Operating income
(loss)
|
205.8
|
|
(272.9)
|
|
863.0
|
|
354.0
|
Interest expense and
financing fee amortization
|
(11.0)
|
|
(15.9)
|
|
(52.7)
|
|
(88.1)
|
Other expense,
net
|
(1.4)
|
|
(2.3)
|
|
(2.2)
|
|
(3.5)
|
|
Income (loss)
before income taxes and equity in net income of
affiliate
|
193.4
|
|
(291.1)
|
|
808.1
|
|
262.4
|
Income tax
(provision) benefit
|
(55.4)
|
|
184.8
|
|
(20.6)
|
|
95.9
|
|
Income (loss)
before equity in net income of affiliate
|
138.0
|
|
(106.3)
|
|
787.5
|
|
358.3
|
Equity in net income
of affiliate
|
0.3
|
|
0.1
|
|
1.2
|
|
0.5
|
|
Net income
(loss)
|
$138.3
|
|
($106.2)
|
|
$788.7
|
|
$358.8
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per
share
|
|
|
|
|
|
|
|
Basic
|
$1.02
|
|
($0.77)
|
|
$5.69
|
|
$2.55
|
Shares
|
136.2
|
|
138.8
|
|
138.4
|
|
140.0
|
|
|
|
|
|
|
|
|
|
Diluted
|
$1.01
|
|
($0.77)
|
|
$5.66
|
|
$2.53
|
Shares
|
137.1
|
|
138.8
|
|
139.4
|
|
141.6
|
Spirit AeroSystems
Holdings, Inc.
|
Condensed
Consolidated Balance Sheets
|
(unaudited)
|
|
December 31,
2015
|
|
December 31,
2014
|
|
($ in
millions)
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$957.3
|
|
$377.9
|
Accounts receivable,
net
|
537.0
|
|
605.6
|
Inventory,
net
|
1,774.4
|
|
1,753.0
|
Deferred tax asset -
current
|
-
|
|
53.2
|
Other current
assets
|
30.4
|
|
262.4
|
Total current assets
|
3,299.1
|
|
3,052.1
|
Property, plant and
equipment, net
|
1,950.7
|
|
1,783.6
|
Pension
assets
|
246.9
|
|
203.4
|
Other
assets
|
280.8
|
|
123.6
|
Total assets
|
$5,777.5
|
|
$5,162.7
|
Current
liabilities
|
|
|
|
Accounts
payable
|
$618.2
|
|
$611.2
|
Accrued
expenses
|
230.2
|
|
329.1
|
Profit
sharing
|
61.6
|
|
111.8
|
Current portion of
long-term debt
|
35.6
|
|
9.4
|
Advance payments,
short-term
|
178.3
|
|
118.6
|
Deferred revenue,
short-term
|
285.5
|
|
23.4
|
Deferred grant income
liability - current
|
11.9
|
|
10.2
|
Other current
liabilities
|
37.7
|
|
45.1
|
Total current liabilities
|
1,459.0
|
|
1,258.8
|
Long-term
debt
|
1,097.6
|
|
1,144.1
|
Advance payments,
long-term
|
507.4
|
|
680.4
|
Pension/OPEB
obligation
|
67.7
|
|
73.0
|
Deferred revenue and
other deferred credits
|
170.0
|
|
27.5
|
Deferred grant income
liability - non-current
|
82.3
|
|
96.1
|
Other
liabilities
|
273.5
|
|
260.8
|
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,
135,617,589 and 141,084,378 shares issued and outstanding,
respectively
|
1.4
|
|
1.4
|
Common stock,
Class B par value $0.01, 150,000,000 shares authorized,
121 and 4,745 shares issued and outstanding,
respectively
|
-
|
|
-
|
Additional paid-in
capital
|
1,051.6
|
|
1,035.6
|
Accumulated other
comprehensive loss
|
(160.5)
|
|
(153.8)
|
Retained
earnings
|
1,656.2
|
|
867.5
|
Treasury stock, at
cost (9,691,865 and 4,000,000 shares, respectively)
|
(429.2)
|
|
(129.2)
|
Total shareholders' equity
|
2,119.5
|
|
1,621.5
|
Noncontrolling
interest
|
0.5
|
|
0.5
|
Total equity
|
2,120.0
|
|
1,622.0
|
Total liabilities and equity
|
$5,777.5
|
|
$5,162.7
|
Spirit AeroSystems
Holdings, Inc.
|
Condensed
Consolidated Statements of Cash Flows
|
(unaudited)
|
|
|
|
|
|
For the Twelve
Months Ended
|
|
December 31,
2015
|
|
December 31,
2014
|
|
($ in
millions)
|
Operating
activities
|
|
|
|
Net income
|
$788.7
|
|
$358.8
|
Adjustments to
reconcile net income to net cash provided by operating
activities
|
|
|
|
Depreciation
expense
|
180.5
|
|
170.2
|
Amortization
expense
|
0.6
|
|
5.8
|
Amortization of deferred
financing fees
|
6.9
|
|
23.3
|
Accretion of customer supply
agreement
|
2.6
|
|
1.1
|
Employee stock compensation
expense
|
26.0
|
|
16.4
|
Excess tax benefits from
share-based payment arrangements
|
(10.7)
|
|
(2.6)
|
Loss from interest rate
swaps
|
-
|
|
0.5
|
Loss (gain) from hedge
contracts
|
1.6
|
|
(1.4)
|
Loss from foreign currency
transactions
|
8.6
|
|
10.5
|
Loss on divestiture of
programs
|
-
|
|
471.1
|
Loss on disposition of
assets
|
14.7
|
|
13.7
|
Deferred
taxes
|
(162.2)
|
|
(8.4)
|
Long-term tax
provision
|
-
|
|
(1.2)
|
Pension and other
post-retirement benefits, net
|
(26.0)
|
|
(24.0)
|
Grant income
|
(10.4)
|
|
(8.6)
|
Equity in net income of
affiliate
|
(1.2)
|
|
(0.5)
|
Changes in assets and
liabilities
|
|
|
|
Accounts receivable,
net
|
62.2
|
|
(64.7)
|
Inventory, net
|
(44.2)
|
|
(332.2)
|
Accounts payable and accrued
liabilities
|
(89.1)
|
|
(22.1)
|
Profit sharing/deferred
compensation
|
(50.0)
|
|
73.8
|
Advance payments
|
(113.3)
|
|
(52.9)
|
Income taxes
receivable/payable
|
251.9
|
|
(177.9)
|
Deferred revenue and other
deferred credits
|
407.3
|
|
2.2
|
Cash transferred on
divestiture of program
|
-
|
|
(160.0)
|
Other
|
45.2
|
|
70.7
|
Net
cash provided by operating activities
|
$1,289.7
|
|
$361.6
|
Investing
activities
|
|
|
|
Purchase of property,
plant and equipment
|
(360.1)
|
|
(220.2)
|
Proceeds from sale of
assets
|
2.7
|
|
0.5
|
Change in restricted
cash
|
-
|
|
(19.9)
|
Net
cash used in investing activities
|
($357.4)
|
|
($239.6)
|
Financing
activities
|
|
|
|
Proceeds from
issuance of debt
|
535.0
|
|
-
|
Proceeds from
issuance of bonds
|
-
|
|
300.0
|
Principal payments of
debt
|
(36.5)
|
|
(16.8)
|
Payments on term
loan
|
(534.9)
|
|
-
|
Payment on
bonds
|
-
|
|
(300.0)
|
Taxes paid related to
net share settlement awards
|
(20.7)
|
|
-
|
Excess tax benefits
from share-based payment arrangements
|
10.7
|
|
2.6
|
Debt issuance and
financing costs
|
(4.7)
|
|
(20.8)
|
Purchase of treasury
stock
|
(300.0)
|
|
(129.2)
|
Net
cash used in financing activities
|
($351.1)
|
|
($164.2)
|
Effect of exchange
rate changes on cash and cash equivalents
|
(1.8)
|
|
(0.6)
|
Net
increase (decrease) in cash and cash equivalents for the
period
|
$579.4
|
|
($42.8)
|
Cash and cash
equivalents, beginning of the period
|
377.9
|
|
420.7
|
Cash and cash
equivalents, end of the period
|
$957.3
|
|
$377.9
|
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.
Adjusted
EPS
|
|
|
|
|
|
|
|
|
|
|
|
|
4th
Quarter
|
|
Twelve
Months
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Diluted Earnings
Per Share
|
|
$1.01
|
|
($0.77)
|
|
$5.66
|
|
$2.53
|
|
Net Loss Impact of
the Gulfstream Divestiture
|
|
-
|
|
1.42
|
a
|
-
|
|
1.39
|
a
|
Impact of Release of
Deferred Tax Asset Valuation Allowance
|
|
(0.06)
|
b
|
0.22
|
b
|
(1.74)
|
c
|
(0.35)
|
c
|
Adjusted Diluted
Earnings Per Share
|
|
$0.95
|
|
$0.87
|
|
$3.92
|
|
$3.57
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
Shares
|
|
137.1
|
|
138.8
|
|
139.4
|
|
141.6
|
|
|
|
a
|
Represents the net
earnings per share impact of the Gulfstream divestiture of $471.1
million charge less tax benefit of $273.9 million.
|
|
|
b
|
Represents the net
earnings per share impact of deferred tax asset valuation allowance
not associated with the Gulfstream divestiture of ($8.4)
million in 2015 and $30.2 million in 2014.
|
|
|
c
|
Represents the net
earnings per share impact of deferred tax asset valuation allowance
not associated with the Gulfstream divestiture of ($241.9) million
in 2015 and ($49.1) million in 2014.
|
Adjusted Free Cash
Flow
|
($ in
millions)
|
|
|
|
|
|
|
|
|
|
4th
Quarter
|
|
Twelve
Months
|
|
Guidance
|
|
2015
|
2014
|
|
2015
|
2014
|
|
2016
|
|
|
|
|
|
|
|
|
Cash Provided by
Operating Activities
|
$320
|
$33
|
|
$1,290
|
$362
|
|
$575 -
$675
|
Capital
Expenditures
|
(143)
|
(86)
|
|
(360)
|
(220)
|
|
(225 -
275)
|
Free Cash
Flow
|
$177
|
($53)
|
|
$930
|
$142
|
|
$350 -
$400
|
Cash Transferred on
Gulfstream Divestiture
|
-
|
160
|
|
-
|
160
|
|
|
Cash Received under
787 Interim Pricing Agreement
|
(46)
|
-
|
|
(192)
|
-
|
|
|
|
|
|
|
|
|
|
|
Adjusted Free Cash
Flow
|
$131
|
$107
|
|
$738
|
$302
|
|
|
* Non-GAAP financial measure, see Appendix for
reconciliation
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SOURCE Spirit AeroSystems Holdings, Inc.