WICHITA, Kan., Aug. 1, 2014 /CNW/ -- Spirit AeroSystems
Holdings, Inc. [NYSE: SPR] reported second quarter 2014 financial
results including continued healthy demand for large commercial
aircraft and strong mature program operating performance. Spirit's
second quarter 2014 revenues were $1.8
billion, up from $1.5 billion
for the same period of 2013 on higher deliveries.
Operating income was $216 million,
up from a loss of ($239) million for
the same period in 2013. Net income for the quarter was
$143 million, or $1.01 per fully diluted share.
Table 1.
Summary Financial Results (unaudited)
|
|
|
|
2nd
Quarter
|
|
Six
Months
|
|
($ in millions,
except per share data)
|
2014
|
2013
|
Change
|
2014
|
2013
|
Change
|
|
|
|
|
|
|
|
Revenues
|
$1,803
|
$1,521
|
19%
|
$3,532
|
$2,963
|
19%
|
Operating Income
(Loss)
|
$216
|
($239)
|
191%
|
$411
|
($94)
|
537%
|
Operating Income
(Loss) as a % of Revenues
|
12.0%
|
(15.7%)
|
2,770
BPS
|
11.6%
|
(3.2%)
|
1,480
BPS
|
Net Income
(Loss)
|
$143
|
($209)
|
168%
|
$297
|
($128)
|
332%
|
Net Income (Loss)
as a % of Revenues
|
8.0%
|
(13.7%)
|
2,170
BPS
|
8.4%
|
(4.3%)
|
1,270
BPS
|
Earnings (Loss)
Per Share (Fully Diluted)
|
$1.01
|
($1.47)
|
169%
|
$2.07
|
($0.90)
|
330%
|
Fully Diluted
Weighted Avg Share Count
|
142.4
|
141.3
|
|
143.2
|
141.1
|
|
|
|
|
|
|
|
|
"Spirit continues to grow with the commercial aerospace upcycle
and realize improved operational performance," said President and
Chief Executive Officer Larry
Lawson. "In the second quarter our team delivered the
5,000th Next Generation 737 fuselage. We continued to
execute at all-time high production rates while improving our
quality. Also this quarter, we made significant progress on the
A350 program," Lawson continued.
"Other notable events include the initiation of Spirit's first
ever share repurchase in our nine year history. We also redefined
and further energized our aftermarket business model with new
senior leadership, Bill Brown, and a
name change to Global Customer Support and Services. These actions
are all part of the disciplined transformation processes occurring
at the company."
"Looking to the future, Spirit's value proposition is attractive
as the commercial aerospace cycle remains strong and program
execution and operational performance continue to be our focus,"
Lawson continued.
Spirit's backlog at the end of the second quarter of 2014 was
approximately $41 billion.
Spirit updated its contract profitability estimates during the
second quarter of 2014 to reflect improved performance and reduced
risks, resulting in net pre-tax $19
million, or $0.09 per
share#, favorable cumulative catch-up adjustments on
mature programs.
In comparison, the second quarter of 2013 included net pre-tax
charges of ($448) million and net
pre-tax favorable cumulative catch-up adjustments of $41 million.
Free cash flow was a $128 million*
source of cash for the second quarter of 2014, compared to a
$5 million* source of cash for the
second quarter of 2013 reflecting improved operational performance,
timing of cash tax payments, and lower capital expenditures. (Table
2)
Table 2.
Cash Flow and Liquidity (unaudited)
|
|
|
|
|
|
2nd
Quarter
|
Six
Months
|
($ in
millions)
|
2014
|
2013
|
2014
|
2013
|
|
|
|
|
|
Cash Flow from
Operations
|
$165
|
$60
|
$210
|
$14
|
Purchases of
Property, Plant & Equipment
|
($37)
|
($55)
|
($90)
|
($135)
|
Free Cash
Flow*
|
$128
|
$5
|
$120
|
($121)
|
|
|
|
|
|
|
|
|
July
3,
|
December
31,
|
Liquidity
|
|
|
2014
|
2013
|
|
|
|
|
|
Cash
|
|
|
$382
|
$421
|
Total
Debt
|
|
|
$1,160
|
$1,167
|
|
|
|
|
|
Cash balances at the end of the quarter were $382 million and debt balances were $1,160 million. At the end of the second quarter
of 2014, the company's $650 million
credit facility remained undrawn.
On June 4, 2014, Spirit, Onex and
certain other stockholders entered into an underwriting agreement
for the sale by the stockholders of 8,168,351 shares of Spirit's
class A common stock in a secondary public offering. In connection
with the offering, Spirit repurchased 4 million shares of its class
A common stock from the underwriters with $129.2 million of cash on hand. Following the
transaction, Onex holds approximately 6 percent of total
stockholder voting power and no longer maintains majority voting
power of the company.
The company's credit rating remained unchanged at the end of the
second quarter of 2014.
Financial Outlook and Risk to Future Financial
Results
Spirit revenue guidance is increased for the full-year 2014 and
is expected to be between $6.7 -
$6.9 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
second quarter of 2014.
Fully diluted earnings per share guidance for 2014 is increased
and is expected to be between $2.90 and
$3.05 per share and does not include the impact of the
year-to-date and potential future adjustments to the deferred tax
asset valuation allowance.
Free cash flow guidance is increased and is now expected to be
approximately $250 million*.
The effective tax rate for 2014 is forecast to be approximately
30.0 - 31.0 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 August 1, 2014
|
|
Previous
2014 Guidance
|
|
2014
Guidance
|
|
|
|
|
|
Revenues
|
|
$6.5 - $6.7
billion
|
|
$6.7 - $6.9
billion
|
|
|
|
|
|
Earnings Per Share
(Fully Diluted)
|
|
$2.50 -
$2.65
|
|
$2.90 -
$3.05
|
|
|
|
|
|
Effective Tax
Rate**
|
|
~31.0% -
32.0%
|
|
~30.0% -
31.0%
|
|
|
|
|
|
Free Cash
Flow*
|
|
~$200
million
|
|
~$250
million
|
|
|
|
|
|
Segment Results
Fuselage Systems
Fuselage Systems segment revenues for the second quarter of 2014
were $905 million, up from
$732 million for the same period last
year due to higher production deliveries. Operating margin for the
second quarter of 2014 was 14.6 percent as compared to 21.2(1)
(2) percent during the same period of 2013. In the second
quarter of 2014 the segment recorded pre-tax $3 million favorable cumulative catch-up
adjustments on mature programs. In comparison, the segment realized
a pre-tax ($5) million forward loss
charge and pre-tax $28 million
favorable cumulative catch-up adjustments in the second quarter of
2013.
Propulsion Systems
Propulsion Systems segment revenues in the second quarter of
2014 rose to $461 million, from
$419 million for the same period last
year on higher production deliveries. Operating margin for the
second quarter of 2014 was 18.7 percent as compared to 20.3(1)
(2) percent in the second quarter of 2013. In the second
quarter of 2014 the segment realized pre-tax $5 million favorable cumulative catch-up
adjustments on mature programs. In comparison, the segment reported
a pre-tax forward loss charge of ($4)
million, a pre-tax benefit of $8
million due to a reversal of previously recognized forward
loss, and pre-tax $12 million
favorable cumulative catch-up adjustments in the second quarter of
2013.
Wing Systems
Wing Systems segment revenues in the second quarter of 2014
increased to $438 million from
$369 million for the same period last
year on higher production deliveries. Operating margin for the
second quarter of 2014 was 16.2 percent as compared to (109.1)
(1) (2) percent during the same period of 2013. In the
second quarter of 2014 the segment recorded pre-tax $11 million favorable cumulative catch-up
adjustments on mature programs. In comparison, in the second
quarter of 2013 the segment recorded pre-tax forward loss charges
of ($448) million and pre-tax
$1 million favorable cumulative
catch-up adjustments.
(1)
|
For the three months
ended June 27, 2013, corporate SG&A of $1.8 million, $0.9
million and $1.2 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 June 27, 2013, research and development of $3.2 million, $2.5
million and $0.9 million was reclassified from segment operating
income for Fuselage, Propulsion, and Wing Systems, respectively, to
conform to current year presentation.
|
|
|
# The
earnings per share amount is presented net of income taxes of
31.0%.
|
|
* 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 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)
|
(unaudited)
|
|
2nd
Quarter
|
Six
Months
|
($ in
millions)
|
2014
|
2013
|
Change
|
2014
|
2013
|
Change
|
|
|
|
|
|
|
|
Segment
Revenues
|
|
|
|
|
|
|
Fuselage
Systems
|
$905.0
|
$732.1
|
23.6%
|
$1,763.3
|
$1,450.0
|
21.6%
|
Propulsion Systems
|
460.5
|
418.6
|
10.0%
|
910.7
|
793.9
|
14.7%
|
Wing
Systems
|
438.3
|
368.6
|
18.9%
|
852.5
|
711.9
|
19.7%
|
All
Other
|
(0.5)
|
1.4
|
|
5.3
|
7.1
|
|
Total Segment
Revenues
|
$1,803.3
|
$1,520.7
|
18.6%
|
$3,531.8
|
$2,962.9
|
19.2%
|
|
|
|
|
|
|
|
Segment Earnings
(Loss) from Operations
|
|
|
|
|
|
|
Fuselage
Systems
|
$132.2
|
$155.0
|
(14.7%)
|
$274.2
|
$281.4
|
(2.6%)
|
Propulsion Systems
|
86.2
|
85.0
|
1.4%
|
166.4
|
153.4
|
8.5%
|
Wing
Systems
|
71.0
|
(402.3)
|
117.6%
|
121.0
|
(381.8)
|
131.7%
|
All
Other
|
0.2
|
1.8
|
|
0.3
|
3.4
|
|
Total Segment
Operating Earnings (Loss)(1) (2)
|
$289.6
|
($160.5)
|
280.4%
|
$561.9
|
$56.4
|
896.3%
|
|
|
|
|
|
|
|
Unallocated
Expense
|
|
|
|
|
|
|
Corporate
SG&A(1)
|
($54.4)
|
($54.1)
|
0.6%
|
($114.9)
|
($98.4)
|
16.8%
|
Impact From Severe
Weather Event
|
-
|
(6.3)
|
|
-
|
(15.1)
|
|
Research &
Development(2)
|
(6.8)
|
(8.6)
|
(20.9%)
|
(13.1)
|
(16.1)
|
(18.6%)
|
Cost of
Sales
|
(12.2)
|
(9.0)
|
35.6%
|
(23.3)
|
(20.8)
|
12.0%
|
Total Earnings
(Loss) from Operations
|
$216.2
|
($238.5)
|
190.6%
|
$410.6
|
($94.0)
|
536.8%
|
|
|
|
|
|
|
|
Segment Operating
Earnings (Loss) as % of Revenues
|
|
|
|
|
|
|
Fuselage
Systems
|
14.6%
|
21.2%
|
(660)
BPS
|
15.6%
|
19.4%
|
(380)
BPS
|
Propulsion Systems
|
18.7%
|
20.3%
|
(160)
BPS
|
18.3%
|
19.3%
|
(100)
BPS
|
Wing
Systems
|
16.2%
|
(109.1%)
|
12,530 BPS
|
14.2%
|
(53.6%)
|
6,780
BPS
|
All
Other
|
(40.0%)
|
128.6%
|
|
5.7%
|
47.9%
|
|
Total Segment
Operating Earnings (Loss) as % of Revenues
|
16.1%
|
(10.6%)
|
2,670
BPS
|
15.9%
|
1.9%
|
1,400
BPS
|
|
|
|
|
|
|
|
Total Operating
Earnings (Loss) as % of Revenues
|
12.0%
|
(15.7%)
|
2,770
BPS
|
11.6%
|
(3.2%)
|
1,480
BPS
|
|
|
|
|
|
|
|
|
|
(1)
|
For the three months
ended June 27, 2013, corporate SG&A of $1.8 million, $0.9
million and $1.2 million was reclassified from segment operating
income for Fuselage, Propulsion, and Wing Systems, respectively, to
conform to current year presentation. For the six months ended June
27, 2013, corporate SG&A of $4.1 million, $2.1 million and $2.4
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 June 27, 2013, research and development of $3.2 million, $2.5
million and $0.9 million was reclassified from segment operating
income for Fuselage, Propulsion, and Wing Systems, respectively, to
conform to current year presentation. For the six months ended June
27, 2013, research and development of $5.9 million, $4.4 million
and $2.0 million was reclassified from segment operating income for
Fuselage, Propulsion, and Wing Systems, respectively, to conform to
current year presentation.
|
Spirit Ship Set
Deliveries
|
(one ship set
equals one aircraft)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2nd
Quarter
|
Six Months
|
|
2014
|
2013
|
|
2014**
|
2013
|
B737
|
130
|
115
|
|
255
|
221
|
B747
|
4
|
4
|
|
9
|
10
|
B767
|
3
|
5
|
|
6
|
11
|
B777
|
26
|
25
|
|
52
|
49
|
B787
|
33
|
14
|
|
64
|
31
|
Total
|
196
|
163
|
|
386
|
322
|
|
|
|
|
|
|
A320
Family*
|
121
|
131
|
|
249
|
260
|
A330/340
|
30
|
30
|
|
60
|
57
|
A350
|
5
|
1
|
|
7
|
3
|
A380
|
7
|
10
|
|
14
|
17
|
Total
|
163
|
172
|
|
330
|
337
|
|
|
|
|
|
|
Business/Regional
Jet
|
33
|
19
|
|
68
|
39
|
|
|
|
|
|
|
Total
Spirit
|
392
|
354
|
|
784
|
698
|
|
* 2013 A320
deliveries have been updated for the purpose of measuring wing ship
set deliveries, from weighted average to total ship set.
|
|
** Includes four
additional workdays as compared to prior year period.
|
Spirit AeroSystems
Holdings, Inc.
|
Condensed
Consolidated Statements of Operations
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended
|
|
For the Six Months
Ended
|
|
|
|
July 3,
2014
|
|
June 27,
2013
|
|
July 3,
2014
|
|
June 27,
2013
|
|
|
($ in millions,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
Net
revenues
|
|
$1,803.3
|
|
$1,520.7
|
|
$3,531.8
|
|
$2,962.9
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
|
Cost of
sales
|
|
1,525.9
|
|
1,690.2
|
|
2,993.2
|
|
2,927.3
|
Selling, general and
administrative
|
|
54.4
|
|
54.1
|
|
114.9
|
|
98.4
|
Impact from severe
weather event
|
|
-
|
|
6.3
|
|
-
|
|
15.1
|
Research and
development
|
|
6.8
|
|
8.6
|
|
13.1
|
|
16.1
|
|
Total operating
costs and expenses
|
|
1,587.1
|
|
1,759.2
|
|
3,121.2
|
|
3,056.9
|
|
Operating income
(loss)
|
|
216.2
|
|
(238.5)
|
|
410.6
|
|
(94.0)
|
Interest expense and
financing fee amortization
|
|
(20.8)
|
|
(17.3)
|
|
(56.2)
|
|
(34.9)
|
Interest
income
|
|
0.1
|
|
-
|
|
0.2
|
|
0.1
|
Other income
(expense), net
|
|
5.8
|
|
1.3
|
|
7.0
|
|
(8.6)
|
|
Income (loss)
before income taxes and equity in net income (loss) of
affiliate
|
|
201.3
|
|
(254.5)
|
|
361.6
|
|
(137.4)
|
Income tax
(provision) benefit
|
|
(58.1)
|
|
45.0
|
|
(65.0)
|
|
9.3
|
|
Income (loss)
before equity in net income (loss) of affiliate
|
|
143.2
|
|
(209.5)
|
|
296.6
|
|
(128.1)
|
Equity in net income
(loss) of affiliate
|
|
0.2
|
|
0.1
|
|
0.4
|
|
(0.1)
|
|
Net income
(loss)
|
|
$143.4
|
|
($209.4)
|
|
$297.0
|
|
($128.2)
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per
share
|
|
|
|
|
|
|
|
|
Basic
|
|
$1.01
|
|
($1.47)
|
|
$2.09
|
|
($0.90)
|
Shares
|
|
140.8
|
|
141.3
|
|
141.2
|
|
141.1
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
$1.01
|
|
($1.47)
|
|
$2.07
|
|
($0.90)
|
Shares
|
|
142.4
|
|
141.3
|
|
143.2
|
|
141.1
|
Spirit AeroSystems
Holdings, Inc.
|
Condensed
Consolidated Balance Sheets
|
(unaudited)
|
|
|
July 3,
2014
|
|
December 31,
2013
|
|
|
|
($ in
millions)
|
|
Current
assets
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$381.6
|
|
$420.7
|
|
Accounts receivable,
net
|
|
729.1
|
|
550.8
|
|
Inventory,
net
|
|
1,875.4
|
|
1,842.6
|
|
Other current
assets
|
|
51.6
|
|
130.1
|
|
Total current assets
|
|
3,037.7
|
|
2,944.2
|
|
Property, plant and
equipment, net
|
|
1,793.0
|
|
1,803.3
|
|
Pension
assets
|
|
270.1
|
|
252.6
|
|
Other
assets
|
|
120.6
|
|
107.1
|
|
Total assets
|
|
$5,221.4
|
|
$5,107.2
|
|
Current
liabilities
|
|
|
|
|
|
Accounts
payable
|
|
$654.8
|
|
$753.7
|
|
Accrued
expenses
|
|
258.5
|
|
220.6
|
|
Current portion of
long-term debt
|
|
9.9
|
|
16.8
|
|
Advance payments,
short-term
|
|
71.4
|
|
133.5
|
|
Deferred revenue,
short-term
|
|
27.0
|
|
19.8
|
|
Other current
liabilities
|
|
213.4
|
|
191.2
|
|
Total current liabilities
|
|
1,235.0
|
|
1,335.6
|
|
Long-term
debt
|
|
1,150.4
|
|
1,150.5
|
|
Advance payments,
long-term
|
|
750.6
|
|
728.9
|
|
Deferred revenue and
other deferred credits
|
|
29.2
|
|
30.9
|
|
Pension/OPEB
obligation
|
|
73.2
|
|
69.8
|
|
Other
liabilities
|
|
320.9
|
|
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,
132,215,419 and 120,946,429 shares issued,
respectively
|
|
1.3
|
|
1.2
|
|
Common stock,
Class B par value $0.01, 150,000,000 shares authorized,
8,988,344 and 23,851,694 shares issued,
respectively
|
|
0.1
|
|
0.2
|
|
Additional paid-in
capital
|
|
1,028.1
|
|
1,025.0
|
|
Accumulated other
comprehensive (loss)
|
|
(44.4)
|
|
(54.6)
|
|
Retained
earnings
|
|
805.7
|
|
508.7
|
|
Treasury stock, at
cost (4,000,000 and zero shares, respectively)
|
|
(129.2)
|
|
-
|
|
Total shareholders' equity
|
|
1,661.6
|
|
1,480.5
|
|
Noncontrolling
interest
|
|
0.5
|
|
0.5
|
|
Total equity
|
|
1,662.1
|
|
1,481.0
|
|
Total liabilities and equity
|
|
$5,221.4
|
|
$5,107.2
|
|
Spirit AeroSystems
Holdings, Inc.
|
Condensed
Consolidated Statements of Cash Flows
|
(unaudited)
|
|
|
|
|
|
|
|
For the Six Months
Ended
|
|
|
July 3,
2014
|
|
June 27,
2013
|
|
|
($ in
millions)
|
Operating
activities
|
|
|
|
|
Net income
(loss)
|
|
$297.0
|
|
($128.2)
|
Adjustments to
reconcile net income (loss) to net cash provided by operating
activities
|
|
|
Depreciation
expense
|
|
83.5
|
|
78.5
|
Amortization
expense
|
|
24.4
|
|
5.8
|
Accretion of customer
supply agreement
|
|
0.5
|
|
0.2
|
Employee stock
compensation expense
|
|
8.0
|
|
12.0
|
Excess tax benefits
from share-based payment arrangements
|
|
(2.3)
|
|
(0.4)
|
Loss on disposition
of assets
|
|
-
|
|
0.4
|
(Gain) from hedge
contracts
|
|
(1.3)
|
|
(1.4)
|
(Gain) loss from
foreign currency transactions
|
|
(5.7)
|
|
10.1
|
Deferred
taxes
|
|
1.9
|
|
(40.0)
|
Long-term tax
provision
|
|
-
|
|
0.6
|
Pension and other
post-retirement benefits, net
|
|
(12.8)
|
|
(6.7)
|
Grant
income
|
|
(3.9)
|
|
(3.3)
|
Equity in net
(income) loss of affiliate
|
|
(0.4)
|
|
0.1
|
Changes in assets and
liabilities
|
|
|
|
|
Accounts
receivable
|
|
(172.4)
|
|
(184.3)
|
Inventory,
net
|
|
(73.6)
|
|
276.2
|
Accounts payable and
accrued liabilities
|
|
(41.8)
|
|
35.2
|
Advance
payments
|
|
(40.4)
|
|
(19.4)
|
Income taxes
receivable/payable
|
|
121.8
|
|
(31.0)
|
Deferred revenue and
other deferred credits
|
|
6.3
|
|
5.0
|
Other
|
|
20.7
|
|
4.9
|
Net cash provided by
operating activities
|
|
209.5
|
|
14.3
|
Investing
activities
|
|
|
|
|
Purchase of property,
plant and equipment
|
|
(89.6)
|
|
(119.3)
|
Purchase of property,
plant and equipment - severe weather related expenses
|
-
|
|
(15.7)
|
Other
|
|
0.4
|
|
2.6
|
Net cash (used in)
investing activities
|
|
(89.2)
|
|
(132.4)
|
Financing
activities
|
|
|
|
|
Proceeds from
issuance of bonds
|
|
300.0
|
|
-
|
Principal payments of
debt
|
|
(11.9)
|
|
(4.0)
|
Payment on
bonds
|
|
(300.0)
|
|
-
|
Excess tax benefits
from share-based payment arrangements
|
|
2.3
|
|
0.4
|
Debt issuance and
financing costs
|
|
(20.8)
|
|
-
|
Purchase of treasury
stock
|
|
(129.2)
|
|
-
|
Net cash (used in)
financing activities
|
|
(159.6)
|
|
(3.6)
|
Effect of exchange
rate changes on cash and cash equivalents
|
|
0.2
|
|
(2.0)
|
Net (decrease) in cash
and cash equivalents for the period
|
|
(39.1)
|
|
(123.7)
|
Cash and cash
equivalents, beginning of the period
|
|
420.7
|
|
440.7
|
Cash and cash
equivalents, end of the period
|
|
$381.6
|
|
$317.0
|
Management believes the non-GAAP (Generally Accepted Accounting
Principles) measures (indicated by *) used in this report provide
investors with important perspectives into the company's ongoing
business performance. The company does not intend for the
information to be considered in isolation or as a substitute for
the related GAAP measure. Other companies may define the measure
differently.
Free Cash
Flow
|
($ in
millions)
|
|
|
|
|
|
2nd
Quarter
|
|
Six Months
|
|
Guidance
|
|
2014
|
2013
|
|
2014
|
2013
|
|
2014
|
|
|
|
|
|
|
|
|
Cash Provided by
Operating Activities
|
$164.5
|
$59.7
|
|
$209.5
|
$14.3
|
|
$460 -
$485
|
Capital
Expenditures
|
(36.6)
|
(54.8)
|
|
(89.6)
|
(135.0)
|
|
(210) -
(235)
|
Free Cash
Flow
|
$127.9
|
$4.9
|
|
$119.9
|
($120.7)
|
|
~$250
|
Logo -
http://photos.prnewswire.com/prnh/20130515/CG13652LOGO
SOURCE Spirit AeroSystems Holdings, Inc.