WICHITA, Kan., Aug. 3, 2016 /CNW/ --
Second Quarter 2016 Highlights
- Spirit reaches comprehensive long-term agreement with Airbus
and extends A350 XWB block size to 800 shipsets
- Revises earnings per share (EPS) guidance to $3.45 - $3.65, reflecting $0.86 per share impact for one-time items which
includes an additional net forward-loss of $135.7 million on the A350 XWB program
- Raises free cash flow guidance to $350 -
$400 million*
- Continues to execute on previously announced $600 million share repurchase program with
$152 million purchased in 2Q
2016
Second Quarter 2016 Consolidated Results
- Total Revenue of $1.8 billion, up
8% y/y
- Fully diluted EPS of $0.35,
Adjusted EPS of $1.21* excluding
one-time items
- Strong free cash flow of $161
million*
Spirit AeroSystems Holdings, Inc., [NYSE: SPR] reported second
quarter 2016 financial results driven by strong operating
performance of mature programs. Spirit's second quarter 2016
revenue was $1.8 billion, up eight
percent compared to the same period of 2015, primarily driven by
higher production deliveries on the A350 XWB and A320 programs,
one-time claim settlements, and higher Global Customer Support and
Services activity.
During the quarter, Spirit concluded long-standing negotiations
with Airbus and reached a comprehensive agreement on the A350 XWB
program. As a result of the agreement, Spirit extended the block to
800 shipsets and recorded an additional net forward-loss of
$135.7 million in the second
quarter.
"We are very pleased to reach this resolution with Airbus. The
comprehensive agreement strengthens our partnership with Airbus and
positions Spirit to extend our collaboration with them in the
future," said new Spirit President and Chief Executive Officer
Tom Gentile.
Operating income for the second quarter of 2016 was $83 million, compared to $230 million in the second quarter of 2015,
reflecting the impact of the charge associated with the Airbus
settlement and other one-time items (former CEO retirement costs
and debt refinancing charges). Reported earnings per share was
$0.35, or $1.21* per share excluding the one-time items,
compared to $1.11 per share (or
$1.09* adjusted) in the same period
of 2015. (Table 1)
Table 1.
Summary Financial Results (unaudited)
|
|
|
|
|
2nd
Quarter
|
|
Six
Months
|
|
($ in millions,
except per share data)
|
2016
|
2015
|
Change
|
2016
|
2015
|
Change
|
|
|
|
|
|
|
|
Revenues
|
$1,830
|
$1,699
|
8%
|
$3,512
|
$3,441
|
2%
|
Operating
Income
|
$83
|
$230
|
(64%)
|
$350
|
$466
|
(25%)
|
Operating Income
as a % of Revenues
|
4.6%
|
13.6%
|
(900)
BPS
|
10.0%
|
13.5%
|
(350)
BPS
|
Net
Income
|
$45
|
$155
|
(71%)
|
$216
|
$337
|
(36%)
|
Net Income as a %
of Revenues
|
2.4%
|
9.1%
|
(670)
BPS
|
6.2%
|
9.8%
|
(360)
BPS
|
Earnings Per Share
(Fully Diluted)
|
$0.35
|
$1.11
|
(68%)
|
$1.65
|
$2.41
|
(32%)
|
Adjusted Earnings
Per Share (Fully Diluted)*
|
$1.21
|
$1.09
|
11%
|
$2.51
|
$2.09
|
20%
|
Fully Diluted
Weighted Avg Share Count
|
129.3
|
140.1
|
|
130.9
|
140.0
|
|
|
|
|
|
|
|
|
"We are revising our earnings per share guidance to $3.45 - $3.65, which includes $0.86 per share impact of the one-time
items. Adjusted for the one-time items, this translates into
EPS guidance of $4.30 - $4.50*. We
are also increasing our free cash flow guidance to a new range of
$350 - $400 million. We continue
to support the guidance we provided last quarter for revenue to be
between $6.6 and $6.7 billion,"
Gentile added.
"With regard to capital deployment, we remain committed to our
strategy of utilizing an opportunistic and disciplined
approach. In the second quarter, we purchased 3.3 million
shares for $152 million, which brings
the total year to date to 6.9 million shares for $318 million. We plan to continue to execute on
the current repurchase program of up to $600
million through December
2017," Gentile concluded.
Spirit's backlog at the end of the second quarter of 2016 was
approximately $47 billion, with work
packages on all platforms in the Boeing and Airbus backlog of
approximately 12,500 aircraft.
Free cash flow from operations in the second quarter of 2016 was
$161 million*, compared to adjusted
free cash flow of $163 million* in
the same quarter last year, adjusted for the impact of the 787
interim pricing agreement. (Table 2)
Table 2.
Cash Flow and Liquidity (unaudited)
|
|
|
|
|
2nd
Quarter
|
Six
Months
|
($ in
millions)
|
2016
|
2015
|
2016
|
2015
|
|
|
|
|
|
Cash Flow from
Operations
|
$215
|
$305
|
$309
|
$729
|
Purchases of
Property, Plant & Equipment
|
($54)
|
($75)
|
($105)
|
($115)
|
Free Cash
Flow*
|
$161
|
$230
|
$204
|
$614
|
Adjusted Free Cash
Flow*
|
$161
|
$163
|
$161
|
$531
|
|
|
|
|
|
|
|
|
June
30,
|
December
31,
|
Liquidity
|
|
|
2016
|
2015
|
Cash
|
|
|
$801
|
$957
|
Total
Debt
|
|
|
$1,198
|
$1,120
|
|
|
|
|
|
Cash balance at the end of the quarter was $801 million, reflecting the purchase of 3.3
million shares for $152 million
during the quarter. The company's $650
million revolving credit facility remained undrawn at the
end of the quarter.
Financial Outlook and Risk to Future Financial
Results
Spirit revenue guidance for the full-year 2016 remains unchanged
and is expected to be between $6.6 - $6.7
billion. Fully diluted EPS guidance for 2016 is revised to
be $3.45 - $3.65 per share,
reflecting the $0.86 per share impact
of one-time items. Free cash flow guidance is increased to
$350 - $400 million*, with capital
expenditures ranging between $250 million
and $300 million. The effective tax rate for 2016 is now
forecasted to be approximately 31 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.
|
2016
Guidance
|
Table 3.
Financial Outlook Updated August 3, 2016
|
Prior
|
|
New
|
|
|
|
|
Revenues
|
$6.6 - $6.7
billion
|
|
$6.6 - $6.7
billion
|
|
|
|
|
Earnings Per Share
(Fully Diluted)
|
$4.15 -
$4.35
|
|
$3.45 -
$3.651
|
|
|
|
|
Effective Tax
Rate
|
~31.5% -
32.5%
|
|
~31%
|
|
|
|
|
Free Cash
Flow*
|
$325 - $375
million
|
|
$350 - $400
million
|
|
|
|
|
1 - Excluding
one-time items, EPS guidance is increased to $4.30 -
$4.50
|
|
|
Segment Results
Fuselage Systems
Fuselage Systems segment revenue in the second quarter of 2016
was up 3 percent to $915 million
due to higher production deliveries on the A350 XWB program, higher
revenue recognized on certain non-recurring Boeing programs and
increased Global Customer Support and Service activity, offset by
lower production deliveries on the 747 program and decreased
non-recurring production activity on the Sikorsky CH-53K. Operating
margin for the second quarter of 2016 was 2.1 percent as compared
to 18.9 percent during the same period of 2015, primarily driven by
the $135.7 million
net forward-loss on the A350 XWB program. In the second
quarter of 2015, the company recorded pretax $11 million favorable cumulative catch-up
adjustments on mature programs and a favorable change in estimates
on forward-loss programs of $4
million.
Propulsion Systems
Propulsion Systems segment revenue in the second quarter of 2016
increased 9 percent to $482
million driven by higher revenue recognized on certain
non-recurring Boeing programs, increased propulsion activity on the
787 program and increased Global Support and Services activity.
Operating margin for the second quarter of 2016 was 15.4 percent as
compared to 20.0 percent in the second quarter of 2015. In the
second quarter of 2016, the segment realized pretax ($8.8) million unfavorable cumulative catch-up
adjustments on mature programs and a ($2.4)
million unfavorable change in estimates on forward-loss
programs. In comparison, the segment realized pretax $7 million favorable cumulative catch-up
adjustments on mature programs and a ($1)
million unfavorable change in estimates on forward-loss
programs in the second quarter of 2015.
Wing Systems
Wing Systems segment revenue in the second quarter of 2016
increased 15 percent to $424
million due to higher production deliveries on the A350 XWB
and A320 programs and one-time claim settlements with customers,
partially offset by lower net revenue recognized on certain
non-recurring Boeing programs. Operating margin for the second
quarter of 2016 was 15.3 percent as compared to 13.6 percent during
the same period of 2015, due to favorable labor and material cost
performance and a favorable impact of fixed overhead absorption as
a result of higher production rates. In the second quarter of 2016,
the segment recorded pretax $9.8
million favorable cumulative catch-up adjustments primarily
due to customer settlements and a favorable change in estimates on
forward-loss programs of $1.2
million. In comparison, the segment recorded pretax
($1) million unfavorable cumulative
catch-up adjustments on mature programs in the second quarter of
2015.
Table 4.
Segment Reporting (unaudited)
|
|
|
|
2nd
Quarter
|
Six
Months
|
($ in
millions)
|
2016
|
2015
|
Change
|
2016
|
2015
|
Change
|
|
|
|
|
|
|
|
Segment
Revenues
|
|
|
|
|
|
|
Fuselage
Systems
|
$915.4
|
$887.6
|
3.1%
|
$1,789.2
|
$1,804.4
|
(0.8%)
|
Propulsion Systems
|
481.7
|
440.5
|
9.4%
|
920.3
|
886.5
|
3.8%
|
Wing
Systems
|
424.2
|
367.5
|
15.4%
|
784.7
|
744.2
|
5.4%
|
All
Other
|
8.6
|
3.1
|
|
17.3
|
5.8
|
|
Total Segment
Revenues
|
$1,829.9
|
$1,698.7
|
7.7%
|
$3,511.5
|
$3,440.9
|
2.1%
|
|
|
|
|
|
|
|
Segment Earnings
from Operations
|
|
|
|
|
|
|
Fuselage
Systems
|
$19.3
|
$168.0
|
(88.5%)
|
$196.6
|
$332.5
|
(40.9%)
|
Propulsion Systems
|
74.3
|
88.2
|
(15.8%)
|
173.4
|
183.9
|
(5.7%)
|
Wing
Systems
|
64.8
|
50.1
|
29.3%
|
123.6
|
95.3
|
29.7%
|
All
Other
|
1.3
|
1.4
|
|
3.2
|
1.1
|
|
Total Segment
Operating Earnings
|
$159.7
|
$307.7
|
(48.1%)
|
$496.8
|
$612.8
|
(18.9%)
|
|
|
|
|
|
|
|
Unallocated
Expense
|
|
|
|
|
|
|
Corporate SG&A
|
($70.2)
|
($53.8)
|
30.5%
|
($120.2)
|
($105.4)
|
14.0%
|
Research &
Development
|
(4.4)
|
(6.7)
|
(34.3%)
|
(10.5)
|
(13.7)
|
(23.4%)
|
Cost of Sales
|
(1.8)
|
(16.9)
|
(89.3%)
|
(16.3)
|
(28.1)
|
(42.0%)
|
Total Earnings
from Operations
|
$83.3
|
$230.3
|
(63.8%)
|
$349.8
|
$465.6
|
(24.9%)
|
|
|
|
|
|
|
|
Segment Operating
Earnings as % of Revenues
|
|
|
|
|
|
|
Fuselage
Systems
|
2.1%
|
18.9%
|
(1,680)
BPS
|
11.0%
|
18.4%
|
(740)
BPS
|
Propulsion Systems
|
15.4%
|
20.0%
|
(460)
BPS
|
18.8%
|
20.7%
|
(190)
BPS
|
Wing
Systems
|
15.3%
|
13.6%
|
170
BPS
|
15.8%
|
12.8%
|
300
BPS
|
All
Other
|
15.1%
|
45.2%
|
|
18.5%
|
19.0%
|
|
Total Segment
Operating Earnings as % of Revenues
|
8.7%
|
18.1%
|
(940)
BPS
|
14.1%
|
17.8%
|
(370)
BPS
|
|
|
|
|
|
|
|
Total Operating
Earnings as % of Revenues
|
4.6%
|
13.6%
|
(900)
BPS
|
10.0%
|
13.5%
|
(350)
BPS
|
|
|
|
|
|
|
|
Cautionary Statement Regarding Forward-Looking
Statements
This press release contains "forward-looking statements" that
may involve many risks and uncertainties. Forward-looking
statements reflect our current expectations or forecasts of future
events. Forward-looking statements generally can be identified by
the use of forward-looking terminology such as "anticipate,"
"believe," "continue," "estimate," "expect," "forecast," "intend,"
"may," "plan," "project," "should," "will," and other similar
words, or phrases, or the negative thereof, unless the context
requires otherwise. These statements reflect management's current
views with respect to future events and are subject to risks and
uncertainties, both known and unknown. Our actual results may vary
materially from those anticipated in forward-looking statements. We
caution investors not to place undue reliance on any
forward-looking statements. Important factors that could cause
actual results to differ materially from those reflected in such
forward-looking statements and that should be considered in
evaluating our outlook include, but are not limited to, the
following: 1) our ability to continue to grow our business and
execute our growth strategy, including the timing, execution, and
profitability of new and maturing programs; 2) our ability to
perform our obligations and manage costs related to our new and
maturing commercial, business aircraft and military development
programs and the related recurring production; 3) margin pressures
and the potential for additional forward losses on new and maturing
programs; 4) our ability to accommodate, and the cost of
accommodating, announced increases in the build rates of certain
aircraft; 5) the effect on aircraft demand and build rates of
changing customer preferences for business aircraft, including the
effect of global economic conditions on the business aircraft
market and expanding conflicts or political unrest in the
Middle East or Asia; 6) customer cancellations or deferrals
as a result of global economic uncertainty; 7) the effect of
economic conditions in the industries and markets in which we
operate in the U.S. and globally and any changes therein, including
fluctuations in foreign currency exchange rates; 8) the success and
timely execution of key milestones such as receipt of necessary
regulatory approvals and customer adherence to their announced
schedules; 9) our ability to successfully negotiate future pricing
under our supply agreements with Boeing and our other customers;
10) our ability to enter into profitable supply arrangements with
additional customers; 11) the ability of all parties to satisfy
their performance requirements under existing supply contracts with
our two major customers, Boeing and Airbus, and other customers,
and the risk of nonpayment by such customers; 12) any adverse
impact on Boeing's and Airbus' production of aircraft resulting
from cancellations, deferrals or reduced orders by their customers
or from labor disputes or acts of terrorism; 13) any adverse impact
on the demand for air travel or our operations from the outbreak of
diseases or epidemic or pandemic outbreaks; 14) our ability to
avoid or recover from cyber-based or other security attacks,
information technology failures or other disruptions; 15) returns
on pension plan assets and the impact of future discount rate
changes on pension obligations; 16) our ability to borrow
additional funds or refinance debt; 17) competition from commercial
aerospace original equipment manufacturers and other aerostructures
suppliers; 18) the effect of governmental laws, such as U.S. export
control laws and U.S. and foreign anti-bribery laws such as the
Foreign Corrupt Practices Act and the United Kingdom Bribery Act,
and environmental laws and agency regulations, both in the U.S. and
abroad; 19) any reduction in our credit ratings; 20) our dependence
on our suppliers, as well as the cost and availability of raw
materials and purchased components; 21) our ability to recruit and
retain highly-skilled employees and our relationships with the
unions representing many of our employees; 22) spending by the U.S.
and other governments on defense; 23) the possibility that our cash
flows and borrowing facilities may not be adequate for our
additional capital needs or for payment of interest on and
principal of our indebtedness; 24) our exposure under our existing
senior 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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2nd
Quarter
|
|
Six Months
|
|
|
|
2016
|
2015
|
|
2016
|
2015
|
|
B737
|
|
128
|
128
|
|
258
|
262
|
|
B747
|
|
2
|
4
|
|
5
|
8
|
|
B767
|
|
7
|
5
|
|
13
|
10
|
|
B777
|
|
25
|
25
|
|
51
|
51
|
|
B787
|
|
36
|
34
|
|
69
|
66
|
|
Total
|
|
198
|
196
|
|
396
|
397
|
|
|
|
|
|
|
|
|
|
A320
Family
|
|
145
|
120
|
|
292
|
255
|
|
A330/340
|
|
17
|
19
|
|
33
|
46
|
|
A350
|
|
20
|
9
|
|
34
|
15
|
|
A380
|
|
6
|
6
|
|
13
|
12
|
|
Total
|
|
188
|
154
|
|
372
|
328
|
|
|
|
|
|
|
|
|
|
Business/Regional
Jet
|
|
22
|
16
|
|
37
|
33
|
|
|
|
|
|
|
|
|
|
Total
Spirit
|
|
408
|
366
|
|
805
|
758
|
|
Spirit AeroSystems
Holdings, Inc.
|
Condensed
Consolidated Statements of Operations
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended
|
|
For the Six Months
Ended
|
|
|
June 30,
2016
|
|
July 2,
2015
|
|
June 30,
2016
|
|
July 2,
2015
|
|
|
($ in millions,
except per share data)
|
|
|
|
|
|
|
|
|
|
Net
revenues
|
$1,829.9
|
|
$1,698.7
|
|
$3,511.5
|
|
$3,440.9
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
Cost of sales
|
1,672.0
|
|
1,407.9
|
|
3,031.0
|
|
2,856.2
|
Selling, general and
administrative
|
70.2
|
|
53.8
|
|
120.2
|
|
105.4
|
Research and
development
|
4.4
|
|
6.7
|
|
10.5
|
|
13.7
|
|
Total operating
costs and expenses
|
1,746.6
|
|
1,468.4
|
|
3,161.7
|
|
2,975.3
|
|
Operating
income
|
83.3
|
|
230.3
|
|
349.8
|
|
465.6
|
Interest expense and
financing fee amortization
|
(23.9)
|
|
(12.1)
|
|
(35.3)
|
|
(30.0)
|
Other income
(expense), net
|
(6.2)
|
|
8.1
|
|
(8.4)
|
|
1.7
|
|
Income before
income taxes and equity in net income of affiliate
|
53.2
|
|
226.3
|
|
306.1
|
|
437.3
|
Income tax
provision
|
(8.6)
|
|
(71.7)
|
|
(90.5)
|
|
(101.1)
|
|
Income before
equity in net income of affiliate
|
44.6
|
|
154.6
|
|
215.6
|
|
336.2
|
Equity in net income
of affiliate
|
0.2
|
|
0.3
|
|
0.8
|
|
0.6
|
|
Net
income
|
$44.8
|
|
$154.9
|
|
$216.4
|
|
$336.8
|
|
|
|
|
|
|
|
|
|
Earnings per
share
|
|
|
|
|
|
|
|
Basic
|
$0.35
|
|
$1.11
|
|
$1.66
|
|
$2.42
|
Shares
|
128.6
|
|
139.2
|
|
130.1
|
|
139.0
|
|
|
|
|
|
|
|
|
|
Diluted
|
$0.35
|
|
$1.11
|
|
$1.65
|
|
$2.41
|
Shares
|
129.3
|
|
140.1
|
|
130.9
|
|
140.0
|
|
|
|
|
|
|
|
|
|
Spirit AeroSystems
Holdings, Inc.
|
Condensed
Consolidated Balance Sheets
|
(unaudited)
|
|
June 30,
2016
|
|
December 31,
2015
|
|
($ in
millions)
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$800.5
|
|
$957.3
|
Restricted
cash
|
86.4
|
|
-
|
Accounts receivable,
net
|
756.3
|
|
537.0
|
Inventory,
net
|
1,546.6
|
|
1,774.4
|
Other current
assets
|
56.9
|
|
30.4
|
Total current assets
|
3,246.7
|
|
3,299.1
|
Property, plant and
equipment, net
|
1,936.8
|
|
1,950.7
|
Pension
assets
|
249.1
|
|
246.9
|
Other
assets
|
250.1
|
|
267.8
|
Total assets
|
$5,682.7
|
|
$5,764.5
|
Current
liabilities
|
|
|
|
Accounts
payable
|
$653.9
|
|
$618.2
|
Accrued
expenses
|
235.7
|
|
230.2
|
Profit
sharing
|
45.3
|
|
61.6
|
Current portion of
long-term debt
|
126.8
|
|
34.9
|
Advance payments,
short-term
|
189.7
|
|
178.3
|
Deferred revenue,
short-term
|
304.3
|
|
285.5
|
Deferred grant income
liability - current
|
13.2
|
|
11.9
|
Other current
liabilities
|
38.4
|
|
37.7
|
Total current liabilities
|
1,607.3
|
|
1,458.3
|
Long-term
debt
|
1,071.6
|
|
1,085.3
|
Advance payments,
long-term
|
425.6
|
|
507.4
|
Pension/OPEB
obligation
|
70.7
|
|
67.7
|
Deferred revenue and
other deferred credits
|
177.3
|
|
170.0
|
Deferred grant income
liability - non-current
|
73.0
|
|
82.3
|
Other
liabilities
|
258.2
|
|
273.5
|
Equity
|
|
|
|
Preferred stock, par
value $0.01, 10,000,000 shares authorized, no shares
issued
|
-
|
|
-
|
|
Common stock,
Class A par value $0.01, 200,000,000 shares authorized,
129,051,833 and 135,617,589 shares issued and outstanding,
respectively
|
1.3
|
|
1.4
|
Common stock,
Class B par value $0.01, 150,000,000 shares authorized,
121 shares issued and outstanding each period,
respectively
|
-
|
|
-
|
Additional paid-in
capital
|
1,066.3
|
|
1,051.6
|
Accumulated other
comprehensive loss
|
(194.9)
|
|
(160.5)
|
Retained
earnings
|
1,872.6
|
|
1,656.2
|
Treasury stock, at
cost (16,582,310 and 9,691,865 shares, respectively)
|
(746.8)
|
|
(429.2)
|
Total shareholders' equity
|
1,998.5
|
|
2,119.5
|
Noncontrolling
interest
|
0.5
|
|
0.5
|
Total equity
|
1,999.0
|
|
2,120.0
|
Total liabilities and equity
|
$5,682.7
|
|
$5,764.5
|
Spirit AeroSystems
Holdings, Inc.
|
Condensed
Consolidated Statements of Cash Flows
|
(unaudited)
|
|
|
|
|
|
For the Six Months
Ended
|
|
June 30,
2016
|
|
July 2,
2015
|
|
($ in
millions)
|
Operating
activities
|
|
|
|
Net income
|
$216.4
|
|
$336.8
|
Adjustments to
reconcile net income to net cash provided by operating
activities
|
|
|
|
Depreciation
expense
|
98.9
|
|
88.8
|
Amortization
expense
|
0.1
|
|
0.6
|
Amortization of deferred
financing fees
|
14.7
|
|
5.1
|
Accretion of customer supply
agreement
|
2.4
|
|
1.1
|
Employee stock compensation
expense
|
28.9
|
|
11.9
|
Excess tax benefits from
share-based payment arrangements
|
-
|
|
(10.1)
|
Loss from hedge
contracts
|
-
|
|
1.6
|
Loss from foreign currency
transactions
|
11.2
|
|
2.7
|
Loss on disposition of
assets
|
3.1
|
|
2.2
|
Deferred
taxes
|
25.4
|
|
4.4
|
Pension and other
post-retirement benefits, net
|
0.8
|
|
(13.1)
|
Grant liability
amortization
|
(5.4)
|
|
(4.8)
|
Equity in net income of
affiliate
|
(0.8)
|
|
(0.6)
|
Changes in assets and
liabilities
|
|
|
|
Accounts receivable,
net
|
(224.1)
|
|
40.1
|
Inventory, net
|
184.9
|
|
(1.3)
|
Accounts payable and accrued
liabilities
|
39.5
|
|
(12.0)
|
Profit sharing/deferred
compensation
|
(16.1)
|
|
(70.0)
|
Advance payments
|
(70.4)
|
|
(43.2)
|
Income taxes
receivable/payable
|
(29.9)
|
|
181.5
|
Deferred revenue and other
deferred credits
|
28.0
|
|
185.7
|
Other
|
1.2
|
|
21.6
|
Net
cash provided by operating activities
|
$308.8
|
|
$729.0
|
Investing
activities
|
|
|
|
Purchase of property, plant
and equipment
|
(104.7)
|
|
(115.4)
|
Net
cash used in investing activities
|
($104.7)
|
|
($115.4)
|
Financing
activities
|
|
|
|
Proceeds from issuance of
debt
|
-
|
|
535.0
|
Proceeds from issuance of
bonds
|
299.8
|
|
-
|
Principal payments of
debt
|
(9.8)
|
|
(17.4)
|
Payments on term
loan
|
-
|
|
(534.9)
|
Payments on bonds
|
(213.6)
|
|
-
|
Taxes paid related to net
share settlement awards
|
(14.3)
|
|
(20.2)
|
Excess tax benefit from
share-based payment arrangements
|
-
|
|
10.1
|
Debt issuance and financing
costs
|
(13.7)
|
|
(4.7)
|
Purchase of treasury
stock
|
(317.6)
|
|
-
|
Change in restricted
cash
|
(86.4)
|
|
-
|
Net
cash used in financing activities
|
($355.6)
|
|
($32.1)
|
Effect of exchange
rate changes on cash and cash equivalents
|
(5.3)
|
|
(0.7)
|
Net
(decrease) increase in cash and cash equivalents for the
period
|
($156.8)
|
|
$580.8
|
Cash and cash
equivalents, beginning of the period
|
957.3
|
|
377.9
|
Cash and cash
equivalents, end of the period
|
$800.5
|
|
$958.7
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2nd
Quarter
|
|
Six Months
|
|
Guidance
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Diluted Earnings
Per Share
|
|
$0.35
|
|
$1.11
|
|
$1.65
|
|
$2.41
|
|
$3.45 -
$3.65
|
|
Impact of Airbus
Agreement, CEO Retirement, and Debt Refinancing
|
|
0.86
|
a
|
-
|
|
0.86
|
a
|
-
|
|
0.86
|
a
|
Impact of Partial
Release of Deferred Tax Asset Valuation Allowance
|
|
-
|
|
(0.02)
|
b
|
-
|
|
(0.32)
|
c
|
-
|
|
Adjusted Diluted
Earnings Per Share
|
|
$1.21
|
|
$1.09
|
|
$2.51
|
|
$2.09
|
|
~ $4.30 -
$4.50
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
Shares
|
|
129.3
|
|
140.1
|
|
130.9
|
|
140.0
|
|
|
|
|
a
|
Represents the net
earnings per share impact of the Airbus agreement ($0.68), CEO
retirement costs ($0.11) and debt refinancing charge
($0.07)
|
|
b
|
Represents the net
earnings per share impact of deferred tax asset valuation allowance
of $2.1 million in 2015
|
|
c
|
Represents the net
earnings per share impact of deferred tax asset valuation allowance
of $42.0 million in 1Q 2015 and $2.1 million in 2Q 2015
|
Free Cash
Flow
|
($ in
millions)
|
|
|
|
|
|
|
|
|
|
2nd
Quarter
|
|
Six Months
|
|
Guidance
|
|
2016
|
2015
|
|
2016
|
2015
|
|
2016
|
|
|
|
|
|
|
|
|
Cash Provided by
Operating Activities
|
$215
|
$305
|
|
$309
|
$729
|
|
$600 -
$700
|
Capital
Expenditures
|
(54)
|
(75)
|
|
(105)
|
(115)
|
|
(250 -
300)
|
Free Cash
Flow
|
$161
|
$230
|
|
$204
|
$614
|
|
$350 -
$400
|
Cash Received under
787 Interim Pricing Agreement
|
-
|
(67)
|
|
(43)
|
(83)
|
|
|
|
|
|
|
|
|
|
|
Adjusted Free Cash
Flow
|
$161
|
$163
|
|
$161
|
$531
|
|
|
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visit:http://www.prnewswire.com/news-releases/spirit-aerosystems-holdings-inc-reports-second-quarter-2016-financial-results-following-comprehensive-agreement-with-airbus-revenue-of-18-billion-fully-diluted-eps-of-035-adjusted-eps-of-121-up-11-yy-and-free-cas-300308208.html
SOURCE Spirit AeroSystems Holdings, Inc.