WICHITA, Kan., Feb. 3, 2015 /CNW/ --
2015 Guidance
- Full-Year 2015 Guidance: Revenues $6.6 -
$6.7 billion, Earnings Per Share of $3.60 - $3.80, Free Cash Flow of $600 - $700 million*
Fourth Quarter 2014 Consolidated Results
- Total Revenues of $1.6 billion,
up 5% y/y
- Reports fully diluted EPS loss of ($0.77), adjusted EPS of $0.87* excluding the impact of the divestiture of
the Gulfstream programs and deferred tax valuation allowance
- Adjusted Free Cash Flow of $107
million*
- Records loss of ($197) million
for previously announced divestiture of the Gulfstream
programs
Full-Year 2014 Consolidated Results
- Total Revenues of $6.8 billion,
up 14% y/y
- Reports fully diluted EPS of $2.53, adjusted EPS of $3.57* excluding the impact of the divestiture of
the Gulfstream programs and deferred tax valuation allowance
- Adjusted Free Cash Flow of $302
million*
- A record total backlog of ~$47
billion
Spirit AeroSystems Holdings, Inc. [NYSE: SPR] reported fourth
quarter and full-year 2014 financial results driven by strong
mature program operating performance. Spirit's fourth quarter 2014
revenues were $1.6 billion, up from
$1.5 billion for the same period of
2013.
* Non-GAAP financial
measure, see Appendix for reconciliation
|
Table 1.
Summary Financial Results (unaudited)
|
|
|
|
|
4th
Quarter
|
|
Twelve
Months
|
|
($ in millions,
except per share data)
|
2014
|
2013
|
Change
|
2014
|
2013
|
Change
|
|
|
|
|
|
|
|
Revenues
|
$1,574
|
$1,494
|
5%
|
$6,799
|
$5,961
|
14%
|
Operating (Loss)
Income
|
($273)
|
($321)
|
15%
|
$354
|
($364)
|
197%
|
Operating (Loss)
Income as a % of Revenues
|
(17.3%)
|
(21.5%)
|
420
BPS
|
5.2%
|
(6.1%)
|
1,130
BPS
|
Net (Loss)
Income
|
($106)
|
($587)
|
82%
|
$359
|
($621)
|
158%
|
Net (Loss) Income
as a % of Revenues
|
(6.7%)
|
(39.3%)
|
3,260
BPS
|
5.3%
|
(10.4%)
|
1,570
BPS
|
(Loss) Earnings
Per Share (Fully Diluted)
|
($0.77)
|
($4.15)
|
81%
|
$2.53
|
($4.40)
|
158%
|
Fully Diluted
Weighted Avg Share Count
|
138.8
|
141.4
|
|
141.6
|
141.3
|
|
Operating loss for the fourth quarter of 2014 was ($273) million compared to operating loss of
($321) million in the fourth quarter
of 2013. Net loss for the quarter was ($106)
million, or ($0.77) per share,
compared to net loss of ($587)
million, or ($4.15) per share,
in the same period of 2013. The current quarter includes a pretax
charge of ($471) million, or
($1.42) per share*, for the
divestiture of Gulfstream programs and ($30)
million, or ($0.22) per share,
negative impact for deferred tax asset valuation allowance not
associated with the Gulfstream programs. This is compared to pretax
($546) million of forward loss
charges in the same period of 2013, and a ($381) million negative impact due to the
establishment of a valuation allowance against U.S. net deferred
tax assets. Revenue for the full-year 2014 increased 14 percent to
$6.8 billion. Operating income
for the full-year was $354 million
compared to operating loss of ($364)
million for the prior year. Full-year net income was
$359 million, or $2.53 per share, compared to net loss of
($621) million, or ($4.40) per share in 2013. (Table 1)
"This was a record year for sales and deliveries; 2014 was a
year of transition for Spirit. We addressed performance challenges
in both development and production, we improved productivity and
quality, and we mitigated risk as exemplified by the sale of the
Gulfstream wing programs," said President and Chief Executive
Officer Larry Lawson.
"We delivered a record 1,545 ship sets last year. We also
made positive inroads in defense, with focused program execution on
Sikorsky's CH-53K and Textron's Bell V-280 Valor, and we celebrated
with Boeing and the U.S. Air Force the successful first test flight
for the KC-46A tanker program," Lawson added.
"Our objectives for 2015 are well defined. We will continue
to focus on increasing productivity, making thoughtful investments
in preparation for rate increases, continuing progress on A350,
increasing our emphasis on long-term growth, and addressing how we
deploy capital," Lawson concluded.
Spirit's backlog at the end of the fourth quarter of 2014
increased by approximately 7 percent from the previous quarter to a
record $47 billion as orders exceeded
deliveries.
Spirit updated its contract profitability estimates during the
fourth quarter of 2014 resulting in pretax $63 million, or $0.31 per share#, favorable cumulative
catch-up adjustments on mature programs due to improved performance
and reduced risks. Additionally, the company recorded reversal of
forward loss charges of $27 million
on the BR725, 767 and 747-8 programs combined. In comparison,
Spirit recorded pretax ($546) million
forward losses and pretax $51 million
favorable cumulative catch-up adjustments in the fourth quarter of
2013.
# The
earnings per share amount is presented net of income taxes of
31.0%.
* Non-GAAP financial
measure, see Appendix for reconciliation
|
Adjusted free cash flow from operations was a $107 million* source of cash for the fourth
quarter of 2014, compared to a $6
million* source of cash in the fourth quarter of 2013 due to
greater reduction in accounts receivable partially offset by higher
cash tax payments. Adjusted full-year free cash flow was a
$302 million* source of cash compared
to a $57 million* source of cash in
2013. (Table 2)
Table 2.
Cash Flow and Liquidity (unaudited)
|
|
|
|
|
4th
Quarter
|
Twelve
Months
|
($ in
millions)
|
2014
|
2013
|
2014
|
2013
|
|
|
|
|
|
Cash Flow from
Operations
|
$33
|
$61
|
$362
|
$261
|
Purchases of
Property, Plant & Equipment
|
($86)
|
($81)
|
($220)
|
($273)
|
Free Cash
Flow*
|
($53)
|
($20)
|
$142
|
($12)
|
Adjusted Free Cash
Flow*#
|
$107
|
$6
|
$302
|
$57
|
|
|
|
|
|
#Excludes Cash Transferred on
Gulfstream Divestiture and Severe Weather Impact
|
|
|
|
|
December
31,
|
December
31,
|
Liquidity
|
|
|
2014
|
2013
|
|
|
|
|
|
Cash
|
|
|
$378
|
$421
|
Total
Debt
|
|
|
$1,154
|
$1,167
|
|
|
|
|
|
Cash balances at the end of the year were $378 million after a $160 million cash payment to Triumph Group
related to the divestiture of the Gulfstream programs and
$129 million related to the first
share repurchase in Spirit's history. At the end of 2014, the
company's $650 million revolving
credit facility was undrawn. Debt balances at the end of the fourth
quarter were $1.2 billion. The
company's credit rating remained unchanged at the end of the fourth
quarter 2014.
Financial Outlook and Risk to Future Financial
Results
Spirit revenue for the full-year 2015 is expected to
be $6.6 - $6.7 billion. Fully
diluted earnings per share for 2015 is expected to be $3.60 - $3.80 per share and does not include the
impact of potential future adjustments to the deferred tax asset
valuation allowance. Free cash flow is expected to be between
$600 million and $700 million*, with
higher capital expenditures of $325 million
to $375 million. The effective tax rate for 2015 is
forecasted to be approximately 32.0 - 33.0 percent, including the
expected benefit of the U.S. Research Tax Credit for 2015, and
excluding any potential adjustment to the valuation allowance
against U.S. net deferred tax assets. (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 Updated February 3, 2015
|
|
2015
Guidance
|
|
|
|
|
Revenues
|
|
|
$6.6 - $6.7
billion
|
|
|
|
|
Earnings Per Share
(Fully Diluted)
|
|
|
$3.60 -
$3.80
|
|
|
|
|
Effective Tax
Rate**
|
|
|
~32.0% -
33.0%
|
|
|
|
|
Free Cash
Flow*
|
|
|
$600 - $700
million
|
|
|
|
|
* 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 and does not assume
an impact for any potential adjustment to the valuation allowance
against the U.S. net deferred tax assets.
|
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,"
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, 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 business and commercial aircraft demand
and build rates of the following factors: 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 Boeing and Airbus, our two major customers,
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) 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.
Segment Results
Fuselage Systems
Fuselage Systems segment revenues in
the fourth quarter of 2014 were $788
million, up from $701 million
for the same period last year. Operating margin for the fourth
quarter of 2014 was 17.9 percent as compared to (31.6)(1)
(2) percent during the same period of 2013. In the fourth
quarter of 2014, the segment recorded pretax $28 million favorable cumulative catch-up
adjustments on mature programs, and reversal of forward losses of
$11 million on the 747-8 and 767
programs combined. In comparison, the segment realized pretax
forward loss charges of ($368)
million and pretax $26 million
favorable cumulative catch-up adjustments in the fourth quarter of
2013.
Propulsion Systems
Propulsion Systems segment revenues
in the fourth quarter of 2014 were $385
million compared to $398
million for the same period last year. Operating margin for
the fourth quarter of 2014 was 27.7 percent as compared to
5.8(1) (2) percent in the fourth quarter of 2013. In the
fourth quarter of 2014, the segment realized pretax $21 million favorable cumulative catch-up
adjustments on mature programs and reversal of forward loss charges
of $16 million on the BR725 and 767
programs combined. In comparison, the segment recorded pretax
forward loss charges of ($60) million
and pretax $15 million favorable
cumulative catch-up adjustments in the fourth quarter of 2013.
Wing Systems
Wing Systems segment revenues in the
fourth quarter of 2014 were $397
million, up from $393 million
for the same period last year. Operating margin for the fourth
quarter of 2014 was 15.2 percent as compared to (14.8)(1)
(2)percent during the same period of 2013. In the fourth
quarter of 2014, the segment recorded pretax $14 million favorable cumulative catch-up
adjustments on mature programs. In comparison, the segment recorded
pretax forward loss charges of ($118)
million and pretax $10 million
favorable cumulative catch-up adjustments in the fourth quarter of
2013.
(1)
|
For the three months
ended December 31, 2013, corporate SG&A of $1.3 million, $2.2
million and $2.6 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 December 31, 2013, research and development of $4.2 million,
$2.0 million and $1.9 million was reclassified from segment
operating income for Fuselage, Propulsion, and Wing Systems,
respectively, to conform to current year presentation.
|
Appendix
|
|
Table 4.
Segment Reporting
|
(unaudited)
|
(unaudited)
|
|
4th
Quarter
|
Twelve
Months
|
($ in
millions)
|
2014
|
2013
|
Change
|
2014
|
2013
|
Change
|
|
|
|
|
|
|
|
Segment
Revenues
|
|
|
|
|
|
|
Fuselage
Systems
|
$787.6
|
$700.8
|
12.4%
|
$3,354.9
|
$2,861.1
|
17.3%
|
Propulsion Systems
|
384.7
|
398.2
|
(3.4%)
|
1,737.2
|
1,581.3
|
9.9%
|
Wing
Systems
|
397.2
|
392.8
|
1.1%
|
1,695.9
|
1,502.5
|
12.9%
|
All
Other
|
4.9
|
2.6
|
|
11.2
|
16.1
|
|
Total Segment
Revenues
|
$1,574.4
|
$1,494.4
|
5.4%
|
$6,799.2
|
$5,961.0
|
14.1%
|
|
|
|
|
|
|
|
Segment Earnings
(Loss) from Operations
|
|
|
|
|
|
|
Fuselage
Systems
|
$140.7
|
($221.6)
|
163.5%
|
$557.3
|
$89.6
|
522.0%
|
Propulsion Systems
|
106.7
|
23.1
|
361.9%
|
354.9
|
249.5
|
42.2%
|
Wing
Systems
|
60.5
|
(58.2)
|
204.0%
|
244.6
|
(402.1)
|
160.8%
|
All
Other
|
3.4
|
0.3
|
|
3.4
|
4.4
|
|
Total Segment
Operating Earnings (Loss)(1) (2)
|
$311.3
|
($256.4)
|
221.4%
|
$1,160.2
|
($58.6)
|
2,079.9%
|
|
|
|
|
|
|
|
Unallocated
Expense
|
|
|
|
|
|
|
Corporate
SG&A(1)
|
($68.9)
|
($49.6)
|
38.9%
|
($233.8)
|
($200.8)
|
16.4%
|
Impact From Severe
Weather Event
|
-
|
(10.7)
|
|
-
|
(30.3)
|
|
Research &
Development(2)
|
(7.5)
|
(11.1)
|
(32.4%)
|
(29.3)
|
(34.7)
|
(15.6%)
|
Cost of
Sales
|
(36.7)
|
7.0
|
(624.3%)
|
(72.0)
|
(39.9)
|
80.5%
|
Loss on Divestiture
of Programs
|
(471.1)
|
-
|
|
(471.1)
|
-
|
|
Total (Loss)
Earnings from Operations
|
($272.9)
|
($320.8)
|
14.9%
|
$354.0
|
($364.3)
|
197.2%
|
|
|
|
|
|
|
|
Segment Operating
Earnings (Loss) as % of Revenues
|
|
|
|
|
|
|
Fuselage
Systems
|
17.9%
|
(31.6%)
|
4,950
BPS
|
16.6%
|
3.1%
|
1,350
BPS
|
Propulsion Systems
|
27.7%
|
5.8%
|
2,190
BPS
|
20.4%
|
15.8%
|
460
BPS
|
Wing
Systems
|
15.2%
|
(14.8%)
|
3,000
BPS
|
14.4%
|
(26.8%)
|
4,120
BPS
|
All
Other
|
69.4%
|
11.5%
|
|
30.4%
|
27.3%
|
|
Total Segment
Operating Earnings (Loss) as % of Revenues
|
19.8%
|
(17.2%)
|
3,700
BPS
|
17.1%
|
(1.0%)
|
1,810
BPS
|
|
|
|
|
|
|
|
Total Operating
(Loss) Earnings as % of Revenues
|
(17.3%)
|
(21.5%)
|
420
BPS
|
5.2%
|
(6.1%)
|
1,130
BPS
|
|
|
|
|
|
|
|
(1)
|
For the three months
ended December 31, 2013, corporate SG&A of $1.3 million, $2.2
million and $2.6 million was reclassified from segment operating
income for Fuselage, Propulsion, and Wing Systems, respectively, to
conform to current year presentation. For the twelve months ended
December 31, 2013, corporate SG&A of $6.8 million, $5.6 million
and $6.9 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 December 31, 2013, research and development of $4.2 million,
$2.0 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
twelve months ended December 31, 2013, research and development of
$12.7 million, $8.1 million and $5.0 million was reclassified from
segment operating income for Fuselage, Propulsion, and Wing
Systems, respectively, to conform to current year
presentation.
|
|
Spirit Ship Set
Deliveries
|
|
|
(one ship set
equals one aircraft)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4th
Quarter
|
Twelve
Months
|
|
2014**
|
2013
|
|
2014
|
2013
|
|
B737
|
114
|
107
|
|
493
|
442
|
|
B747
|
4
|
3
|
|
18
|
19
|
|
B767
|
4
|
1
|
|
14
|
15
|
|
B777
|
22
|
24
|
|
99
|
99
|
|
B787
|
28
|
19
|
|
118
|
65
|
|
Total
|
172
|
154
|
|
742
|
640
|
|
|
|
|
|
|
|
|
A320
Family*
|
124
|
130
|
|
505
|
506
|
|
A330/340
|
26
|
30
|
|
113
|
113
|
|
A350
|
5
|
4
|
|
16
|
8
|
|
A380
|
7
|
8
|
|
29
|
34
|
|
Total
|
162
|
172
|
|
663
|
661
|
|
|
|
|
|
|
|
|
Business/Regional
Jet
|
35
|
31
|
|
140
|
97
|
|
|
|
|
|
|
|
|
Total
Spirit
|
369
|
357
|
|
1,545
|
1,398
|
|
* 2013 A320
deliveries have been updated for the purpose of measuring wing ship
set deliveries, from weighted average to total ship set.
** Includes
four fewer workdays as compared to prior year
period.
|
Spirit AeroSystems
Holdings, Inc.
|
Condensed
Consolidated Statements of Operations
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended
|
|
For the Twelve
Months Ended
|
|
|
|
December 31,
2014
|
|
December 31,
2013
|
|
December 31,
2014
|
|
December 31,
2013
|
|
|
($ in millions,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
Net
revenues
|
|
$1,574.4
|
|
$1,494.4
|
|
$6,799.2
|
|
$5,961.0
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
|
Cost of
sales
|
|
1,299.8
|
|
1,743.8
|
|
5,711.0
|
|
6,059.5
|
Selling, general and
administrative
|
|
68.9
|
|
49.6
|
|
233.8
|
|
200.8
|
Impact from severe
weather event
|
|
-
|
|
10.7
|
|
-
|
|
30.3
|
Research and
development
|
|
7.5
|
|
11.1
|
|
29.3
|
|
34.7
|
Loss on divestiture
of programs
|
|
471.1
|
|
-
|
|
471.1
|
|
-
|
|
Total operating
costs and expenses
|
|
1,847.3
|
|
1,815.2
|
|
6,445.2
|
|
6,325.3
|
|
Operating (loss)
income
|
|
(272.9)
|
|
(320.8)
|
|
354.0
|
|
(364.3)
|
Interest expense and
financing fee amortization
|
|
(15.9)
|
|
(18.1)
|
|
(88.1)
|
|
(70.1)
|
Interest
income
|
|
0.2
|
|
0.1
|
|
0.6
|
|
0.3
|
Other (expense)
income, net
|
|
(2.5)
|
|
4.5
|
|
(4.1)
|
|
3.3
|
|
(Loss) income
before income taxes and equity in net income of
affiliate
|
|
(291.1)
|
|
(334.3)
|
|
262.4
|
|
(430.8)
|
Income tax benefit
(provision)
|
|
184.8
|
|
(253.4)
|
|
95.9
|
|
(191.1)
|
|
(Loss) income
before equity in net income of affiliate
|
|
(106.3)
|
|
(587.7)
|
|
358.3
|
|
(621.9)
|
Equity in net income
of affiliate
|
|
0.1
|
|
0.8
|
|
0.5
|
|
0.5
|
|
Net (loss)
income
|
|
($106.2)
|
|
($586.9)
|
|
$358.8
|
|
($621.4)
|
|
|
|
|
|
|
|
|
|
|
(Loss) earnings per
share
|
|
|
|
|
|
|
|
|
Basic
|
|
($0.77)
|
|
($4.15)
|
|
$2.55
|
|
($4.40)
|
Shares
|
|
138.8
|
|
141.4
|
|
140.0
|
|
141.3
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
($0.77)
|
|
($4.15)
|
|
$2.53
|
|
($4.40)
|
Shares
|
|
138.8
|
|
141.4
|
|
141.6
|
|
141.3
|
Spirit AeroSystems
Holdings, Inc.
|
Condensed
Consolidated Balance Sheets
|
(unaudited)
|
|
|
December 31,
2014
|
|
December 31,
2013
|
|
|
($ in
millions)
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
|
$377.9
|
|
$420.7
|
Accounts receivable,
net
|
|
605.6
|
|
550.8
|
Inventory,
net
|
|
1,753.0
|
|
1,842.6
|
Other current
assets
|
|
315.6
|
|
130.1
|
Total current assets
|
|
3,052.1
|
|
2,944.2
|
Property, plant and
equipment, net
|
|
1,783.6
|
|
1,803.3
|
Pension
assets
|
|
203.4
|
|
252.6
|
Other
assets
|
|
123.6
|
|
107.1
|
Total assets
|
|
$5,162.7
|
|
$5,107.2
|
Current
liabilities
|
|
|
|
|
Accounts
payable
|
|
$611.2
|
|
$753.7
|
Accrued
expenses
|
|
329.1
|
|
220.6
|
Current portion of
long-term debt
|
|
9.4
|
|
16.8
|
Advance payments,
short-term
|
|
118.6
|
|
133.5
|
Deferred revenue,
short-term
|
|
23.4
|
|
19.8
|
Other current
liabilities
|
|
167.1
|
|
191.2
|
Total current liabilities
|
|
1,258.8
|
|
1,335.6
|
Long-term
debt
|
|
1,144.1
|
|
1,150.5
|
Advance payments,
long-term
|
|
680.4
|
|
728.9
|
Deferred revenue and
other deferred credits
|
|
27.5
|
|
30.9
|
Pension/OPEB
obligation
|
|
73.0
|
|
69.8
|
Other
liabilities
|
|
356.9
|
|
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,
141,084,378 and 120,946,429 shares issued,
respectively
|
|
1.4
|
|
1.2
|
Common stock,
Class B par value $0.01, 150,000,000 shares authorized,
4,745 and 23,851,694 shares issued,
respectively
|
|
-
|
|
0.2
|
Additional paid-in
capital
|
|
1,035.6
|
|
1,025.0
|
Accumulated other
comprehensive loss
|
|
(153.8)
|
|
(54.6)
|
Retained
earnings
|
|
867.5
|
|
508.7
|
Treasury stock, at
cost (4,000,000 and zero shares, respectively)
|
|
(129.2)
|
|
-
|
Total shareholders' equity
|
|
1,621.5
|
|
1,480.5
|
Noncontrolling
interest
|
|
0.5
|
|
0.5
|
Total equity
|
|
1,622.0
|
|
1,481.0
|
Total liabilities and equity
|
|
$5,162.7
|
|
$5,107.2
|
Spirit AeroSystems
Holdings, Inc.
|
Condensed
Consolidated Statements of Cash Flows
|
(unaudited)
|
|
|
|
|
|
|
|
For the Twelve
Months Ended
|
|
|
December 31,
2014
|
|
December 31,
2013
|
|
|
($ in
millions)
|
Operating
activities
|
|
|
|
|
Net income
(loss)
|
|
$358.8
|
|
($621.4)
|
Adjustments to
reconcile net income (loss) to net cash provided by operating
activities
|
|
|
Depreciation
expense
|
|
170.2
|
|
158.2
|
Amortization
expense
|
|
29.1
|
|
9.8
|
Accretion of customer
supply agreement
|
|
1.1
|
|
0.6
|
Employee stock
compensation expense
|
|
16.4
|
|
19.6
|
Excess tax benefits
from share-based payment arrangements
|
|
(2.6)
|
|
(0.6)
|
Loss on divestiture
of programs
|
|
471.1
|
|
-
|
Loss on disposition
of assets
|
|
13.7
|
|
0.1
|
Loss on interest rate
swaps
|
|
0.5
|
|
-
|
Gain from hedge
contracts
|
|
(1.4)
|
|
(2.6)
|
Loss (gain) from
foreign currency transactions
|
|
10.5
|
|
(2.6)
|
Deferred taxes
|
|
(8.4)
|
|
202.8
|
Long-term tax
provision
|
|
(1.2)
|
|
(2.5)
|
Pension and other
post-retirement benefits, net
|
|
(24.0)
|
|
(32.0)
|
Grant
income
|
|
(8.6)
|
|
(7.3)
|
Equity in net income
of affiliate
|
|
(0.5)
|
|
(0.5)
|
Changes in assets and
liabilities
|
|
|
|
|
Accounts
receivable
|
|
(64.7)
|
|
(128.5)
|
Inventory,
net
|
|
(332.2)
|
|
666.0
|
Accounts payable and
accrued liabilities
|
|
51.7
|
|
104.2
|
Advance
payments
|
|
(52.9)
|
|
(41.9)
|
Income taxes
receivable/payable
|
|
(177.9)
|
|
(82.2)
|
Deferred revenue and
other deferred credits
|
|
2.2
|
|
(0.2)
|
Cash transferred on
divestiture of programs
|
|
(160.0)
|
|
-
|
Other
|
|
70.7
|
|
21.6
|
Net
cash provided by operating activities
|
|
$361.6
|
|
$260.6
|
Investing
activities
|
|
|
|
|
Purchase of property,
plant and equipment
|
|
(220.2)
|
|
(234.2)
|
Purchase of property,
plant and equipment - severe weather related expenses
|
-
|
|
(38.4)
|
Change in restricted
cash
|
|
(19.9)
|
|
-
|
Other
|
|
0.5
|
|
4.4
|
Net
cash used in investing activities
|
|
($239.6)
|
|
($268.2)
|
Financing
activities
|
|
|
|
|
Proceeds from
issuance of bonds
|
|
300.0
|
|
-
|
Principal payments of
debt
|
|
(16.8)
|
|
(10.4)
|
Payment on
bonds
|
|
(300.0)
|
|
-
|
Excess tax benefits
from share-based payment arrangements
|
|
2.6
|
|
0.6
|
Debt issuance and
financing costs
|
|
(20.8)
|
|
(4.1)
|
Purchase of treasury
stock
|
|
(129.2)
|
|
-
|
Net
cash used in financing activities
|
|
($164.2)
|
|
($13.9)
|
Effect of exchange
rate changes on cash and cash equivalents
|
|
(0.6)
|
|
1.5
|
Net
decrease in cash and cash equivalents for the period
|
|
(42.8)
|
|
(20.0)
|
Cash and cash
equivalents, beginning of the period
|
|
420.7
|
|
440.7
|
Cash and cash
equivalents, end of the period
|
|
$377.9
|
|
$420.7
|
Management believes
that the non-GAAP (Generally Accepted Accounting Principles)
measures (indicated by *) used in this report provide investors
with important perspectives into the company's ongoing business
performance. The company does not intend for the information to be
considered in isolation or as a substitute for the related GAAP
measure. Other companies may define the measure
differently.
|
Free Cash
Flow
|
($ in
millions)
|
|
|
|
|
|
Guidance
|
|
2015
|
|
|
Cash Provided by
Operating Activities
|
$925 -
$1,075
|
Capital
Expenditures
|
(325 -
375)
|
Free Cash
Flow
|
$600 -
$700
|
Adjusted Free Cash
Flow
|
($ in
millions)
|
|
|
|
|
|
|
|
4th
Quarter
|
|
Twelve
Months
|
|
2014
|
2013
|
|
2014
|
2013
|
|
|
|
|
|
|
Cash Provided by
Operating Activities
|
$33.3
|
$61.3
|
|
$361.6
|
$260.6
|
Severe Weather
Impact
|
-
|
10.7
|
|
-
|
30.3
|
Cash Transferred on
Gulfstream Divestiture
|
160.0
|
-
|
|
160.0
|
-
|
Adjusted Cash
Provided by Operating Activities
|
$193.3
|
$72.0
|
|
$521.6
|
$290.9
|
|
|
|
|
|
|
Capital
Expenditures
|
($86.2)
|
($81.1)
|
|
($220.2)
|
($272.6)
|
Severe Weather
Impact
|
-
|
15.0
|
|
-
|
38.4
|
Adjusted Capital
Expenditures
|
($86.2)
|
($66.1)
|
|
($220.2)
|
($234.2)
|
|
|
|
|
|
|
Adjusted Cash
Provided by Operating Activities
|
$193.3
|
$72.0
|
|
$521.6
|
$290.9
|
Adjusted Capital
Expenditures
|
(86.2)
|
(66.1)
|
|
(220.2)
|
(234.2)
|
Adjusted Free Cash
Flow
|
$107.1
|
$5.9
|
|
$301.4
|
$56.7
|
Adjusted
EPS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4th
Quarter
|
|
Twelve
Months
|
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Diluted
Earnings Per Share
|
|
($0.77)
|
|
($4.15)
|
|
$2.53
|
|
($4.40)
|
|
|
|
|
|
|
|
|
|
|
|
Net loss impact of
the Gulfstream divestiture
|
|
$1.42
|
a
|
-
|
|
$1.39
|
a
|
-
|
|
|
|
|
|
|
|
|
|
|
|
Impact of deferred
tax asset valuation allowance not associated with the Gulfstream
divestiture
|
|
0.22
|
b
|
-
|
|
(0.35)
|
c
|
2.69
|
d
|
|
|
|
|
|
|
|
|
|
|
Diluted
Shares
|
|
138.8
|
|
141.4
|
|
141.6
|
|
141.3
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Diluted
Earnings Per Share
|
|
$0.87
|
|
($4.15)
|
|
$3.57
|
|
($1.71)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 $30.2
million.
|
|
c Represents
the net earnings per share impact of deferred tax asset valuation
allowance not associated with the Gulfstream divestiture of ($49.1)
million.
|
|
d Represents
the net earnings per share impact of deferred tax asset valuation
allowance not associated with the Gulfstream divestiture of $381.0
million.
|
On the web: http://www.spiritaero.com
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SOURCE Spirit AeroSystems Holdings, Inc.