WICHITA, Kan., July 29, 2015 /PRNewswire/ --
Key Announcements
- Announces a share repurchase program of up to $350 million
- Raises 2015 Free Cash Flow guidance by $100 million to a range of $700 - $800 million
Second Quarter 2015 Consolidated Results
- Total Revenues of $1.7
billion
- Reports fully diluted EPS of $1.11, adjusted EPS of $1.09* excluding the impact for the partial
release of the deferred tax valuation allowance
- Free Cash Flow of $230
million*
Spirit AeroSystems Holdings, Inc. [NYSE: SPR] reported second
quarter financial results driven by positive operating performance
of mature programs. Spirit's second quarter 2015 revenues were
$1.7 billion, down six percent
compared to the same period of 2014 primarily due to the Gulfstream
wing divestiture and lower revenues recognized on the 787
program.
Table 1.
Summary Financial Results (unaudited)
|
|
|
|
|
2nd
Quarter
|
|
Six
Months
|
|
($ in millions,
except per share data)
|
2015
|
2014
|
Change
|
2015
|
2014
|
Change
|
|
|
|
|
|
|
|
Revenues
|
$1,699
|
$1,803
|
(6%)
|
$3,441
|
$3,532
|
(3%)
|
Operating
Income
|
$230
|
$216
|
7%
|
$466
|
$411
|
13%
|
Operating Income
as a % of Revenues
|
13.6%
|
12.0%
|
160
BPS
|
13.5%
|
11.6%
|
190
BPS
|
Net
Income
|
$155
|
$143
|
8%
|
$337
|
$297
|
13%
|
Net Income as a %
of Revenues
|
9.1%
|
8.0%
|
110
BPS
|
9.8%
|
8.4%
|
140
BPS
|
Earnings Per Share
(Fully Diluted)
|
$1.11
|
$1.01
|
10%
|
$2.41
|
$2.07
|
16%
|
Fully Diluted
Weighted Avg Share Count
|
140.1
|
142.4
|
|
140.0
|
143.2
|
|
|
|
|
|
|
|
|
Operating income was $230 million,
up from $216 million for the same
period in 2014. Net income for the quarter was $155 million, or $1.11 per fully diluted share, compared to net
income of $143 million, or
$1.01 per fully diluted share, in the
same period of 2014. The current quarter includes $0.02 earnings per share for the partial release
of the deferred tax valuation allowance as compared to $0.03 for same period of 2014. (Table 1)
"In June, we celebrated our tenth anniversary, and I would like
to congratulate Spirit's employees around the globe on what they
have accomplished," said President and Chief Executive Officer
Larry Lawson.
"Preparing for aircraft rate increases is a key focus for us
this year. Near term, we are capitalizing to increase the
production rate of the 787 to 12 shipsets per month and the
737 to 47 shipsets per month, as well as the higher production
rates on the A320 and A350 programs," Lawson added.
"The results of our efforts to reduce our cost and drive
increased productivity are manifest in the quarter and we will
continue to drive the enterprise with a focus on operational
efficiency across all aspects of the business," Lawson
concluded.
The Board of Directors has authorized a share repurchase program
of up to $350 million of Spirit's
common stock under which repurchases may be made intermittently
through December 31, 2017.
Spirit's backlog increased to $47
billion at the end of the second quarter driven by continued
strong commercial aerospace demand.
Free cash flow was a $230 million*
source of cash for the second quarter of 2015, compared to a
$128 million* source of cash in the
second quarter of 2014 primarily due to an increase in deferred
revenue payments and timing of accounts payable partially offset by
higher cash taxes, capital expenditures, and an increase in cash
advance repayments. (Table 2)
Table 2.
Cash Flow and Liquidity (unaudited)
|
|
|
|
|
2nd
Quarter
|
Six
Months
|
($ in
millions)
|
2015
|
2014
|
2015
|
2014
|
|
|
|
|
|
Cash Flow from
Operations
|
$305
|
$165
|
$729
|
$210
|
Purchases of
Property, Plant & Equipment
|
($75)
|
($37)
|
($115)
|
($90)
|
Free Cash
Flow*
|
$230
|
$128
|
$614
|
$120
|
|
|
|
|
|
|
|
|
July
2,
|
December
31,
|
Liquidity
|
|
|
2015
|
2014
|
|
|
|
|
|
Cash
|
|
|
$959
|
$378
|
Total
Debt
|
|
|
$1,153
|
$1,154
|
|
|
|
|
|
Cash balances at the end of the second quarter were $959 million, and debt balances were $1.2 billion. The company's $650 million revolving credit facility was
undrawn at the end of the second quarter. The company's credit
rating remained unchanged at the end of the second quarter of
2015.
Financial Outlook and Risk to Future Financial
Results
Spirit revenue guidance for the full-year 2015 remains unchanged
and is expected to be between $6.6 billion
and $6.7 billion. Fully diluted earnings guidance per
share for 2015 remains unchanged and is expected to be between
$3.60 and $3.80 per share, which does
not include the year-to-date impact or potential future adjustments
to the deferred tax asset valuation allowance. Free cash flow
guidance for 2015 is increased to be between $700 million and $800 million*, which includes
higher capital expenditures of $325
million to $375 million as
compared to 2014. The effective tax rate for 2015 is forecasted to
be between 32.0 percent and 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 July 29, 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*
|
|
|
$700 - $800
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 the year-to-date impact or potential future
adjustments to the valuation allowance against the U.S. net
deferred tax assets.
|
Segment Results
Fuselage Systems
Fuselage Systems segment revenues in the second quarter of 2015
were $888 million, down from
$905 million for the same period last
year driven by lower revenues recognized on the 787 program.
Operating margin for the second quarter of 2015 was 18.9 percent as
compared to 14.6 percent during the same period of 2014. In the
second quarter of 2015, the segment recorded pretax $11 million in favorable cumulative catch-up
adjustments on mature programs and a $4
million favorable change in estimate on a program which is
in a loss position. In comparison, the segment recorded pretax
$3 million in favorable cumulative
catch-up adjustments in the second quarter of 2014.
Propulsion Systems
Propulsion Systems segment revenues in the second quarter of
2015 were $441 million compared to
$461 million for the same period last
year, driven by lower non-recurring revenues. Operating margin for
the second quarter of 2015 was 20.0 percent as compared to 18.7
percent in the second quarter of 2014. In the second quarter of
2015, the segment realized pretax $7
million in favorable cumulative catch-up adjustments on
mature programs and a net ($1)
million forward loss charge. In comparison, the
segment recorded pretax $5 million in
favorable cumulative catch-up adjustments in the second quarter of
2014.
Wing Systems
Wing Systems segment revenues in the second quarter of 2015 were
$368 million, down from $438 million for the same period last year,
driven by the Gulfstream wing divestiture. Operating margin for the
second quarter of 2015 was 13.6 percent as compared to 16.2 percent
during the same period of 2014. In the second quarter of 2015, the
segment realized pretax ($1) million
in unfavorable cumulative catch-up adjustments on mature programs.
The segment recorded pretax $11
million in favorable cumulative catch-up adjustments in the
second quarter of 2014.
Table 4.
Segment Reporting (unaudited)
|
|
|
|
2nd
Quarter
|
Six
Months
|
($ in
millions)
|
2015
|
2014
|
Change
|
2015
|
2014
|
Change
|
|
|
|
|
|
|
|
Segment
Revenues
|
|
|
|
|
|
|
Fuselage
Systems
|
$887.6
|
$905.0
|
(1.9%)
|
$1,804.4
|
$1,763.3
|
2.3%
|
Propulsion Systems
|
440.5
|
460.5
|
(4.3%)
|
886.5
|
910.7
|
(2.7%)
|
Wing
Systems
|
367.5
|
438.3
|
(16.2%)
|
744.2
|
852.5
|
(12.7%)
|
All
Other
|
3.1
|
(0.5)
|
|
5.8
|
5.3
|
|
Total Segment
Revenues
|
$1,698.7
|
$1,803.3
|
(5.8%)
|
$3,440.9
|
$3,531.8
|
(2.6%)
|
|
|
|
|
|
|
|
Segment Earnings
from Operations
|
|
|
|
|
|
|
Fuselage
Systems
|
$168.0
|
$132.2
|
27.1%
|
$332.5
|
$274.2
|
21.3%
|
Propulsion Systems
|
88.2
|
86.2
|
2.3%
|
183.9
|
166.4
|
10.5%
|
Wing
Systems
|
50.1
|
71.0
|
(29.4%)
|
95.3
|
121.0
|
(21.2%)
|
All
Other
|
1.4
|
0.2
|
|
1.1
|
0.3
|
|
Total Segment
Operating Earnings
|
$307.7
|
$289.6
|
6.3%
|
$612.8
|
$561.9
|
9.1%
|
|
|
|
|
|
|
|
Unallocated
Expense
|
|
|
|
|
|
|
Corporate
SG&A
|
($53.8)
|
($54.4)
|
(1.1%)
|
($105.4)
|
($114.9)
|
(8.3%)
|
Research &
Development
|
(6.7)
|
(6.8)
|
(1.5%)
|
(13.7)
|
(13.1)
|
4.6%
|
Cost of
Sales
|
(16.9)
|
(12.2)
|
38.5%
|
(28.1)
|
(23.3)
|
20.6%
|
Total Earnings
from Operations
|
$230.3
|
$216.2
|
6.5%
|
$465.6
|
$410.6
|
13.4%
|
|
|
|
|
|
|
|
Segment Operating
Earnings as % of Revenues
|
|
|
|
|
|
|
Fuselage
Systems
|
18.9%
|
14.6%
|
430
BPS
|
18.4%
|
15.6%
|
280
BPS
|
Propulsion Systems
|
20.0%
|
18.7%
|
130
BPS
|
20.7%
|
18.3%
|
240
BPS
|
Wing
Systems
|
13.6%
|
16.2%
|
(260)
BPS
|
12.8%
|
14.2%
|
(140)
BPS
|
All
Other
|
45.2%
|
N/A
|
|
19.0%
|
5.7%
|
|
Total Segment
Operating Earnings as % of Revenues
|
18.1%
|
16.1%
|
200
BPS
|
17.8%
|
15.9%
|
190
BPS
|
|
|
|
|
|
|
|
Total Operating
Earnings as % of Revenues
|
13.6%
|
12.0%
|
160
BPS
|
13.5%
|
11.6%
|
190
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," 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
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
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) 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 Report on Form 10-Q.
Spirit Shipset
Deliveries
|
|
(one shipset
equals one aircraft)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2nd
Quarter
|
Six Months
|
|
|
2015
|
2014
|
|
2015
|
2014
|
|
B737
|
|
128
|
130
|
|
262
|
255
|
|
B747
|
|
4
|
4
|
|
8
|
9
|
|
B767
|
|
5
|
3
|
|
10
|
6
|
|
B777
|
|
25
|
26
|
|
51
|
52
|
|
B787
|
|
34
|
33
|
|
66
|
64
|
|
Total
|
|
196
|
196
|
|
397
|
386
|
|
|
|
|
|
|
|
|
|
A320
Family
|
|
120
|
121
|
|
255
|
249
|
|
A330/340
|
|
19
|
30
|
|
46
|
60
|
|
A350
|
|
9
|
5
|
|
15
|
7
|
|
A380
|
|
6
|
7
|
|
12
|
14
|
|
Total
|
|
154
|
163
|
|
328
|
330
|
|
|
|
|
|
|
|
|
|
Business/Regional
Jet
|
|
16
|
33
|
|
33
|
68
|
|
|
|
|
|
|
|
|
|
Total
Spirit
|
|
366
|
392
|
|
758
|
784
|
|
|
Spirit AeroSystems
Holdings, Inc.
|
|
Condensed
Consolidated Statements of Operations
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended
|
|
For the Six Months
Ended
|
|
|
|
|
July 2,
2015
|
|
July 3,
2014
|
|
July 2,
2015
|
|
July 3,
2014
|
|
|
|
($ in millions,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
revenues
|
|
$1,698.7
|
|
$1,803.3
|
|
$3,440.9
|
|
$3,531.8
|
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
|
|
Cost of
sales
|
|
1,407.9
|
|
1,525.9
|
|
2,856.2
|
|
2,993.2
|
|
Selling, general and
administrative
|
|
53.8
|
|
54.4
|
|
105.4
|
|
114.9
|
|
Research and
development
|
|
6.7
|
|
6.8
|
|
13.7
|
|
13.1
|
|
|
Total operating
costs and expenses
|
|
1,468.4
|
|
1,587.1
|
|
2,975.3
|
|
3,121.2
|
|
|
Operating
income
|
|
230.3
|
|
216.2
|
|
465.6
|
|
410.6
|
|
Interest expense and
financing fee amortization
|
|
(12.1)
|
|
(20.8)
|
|
(30.0)
|
|
(56.2)
|
|
Other income,
net
|
|
8.1
|
|
5.9
|
|
1.7
|
|
7.2
|
|
|
Income before
income taxes and equity in net income of affiliate
|
|
226.3
|
|
201.3
|
|
437.3
|
|
361.6
|
|
Income tax
provision
|
|
(71.7)
|
|
(58.1)
|
|
(101.1)
|
|
(65.0)
|
|
|
Income before
equity in net income of affiliate
|
|
154.6
|
|
143.2
|
|
336.2
|
|
296.6
|
|
Equity in net income
of affiliate
|
|
0.3
|
|
0.2
|
|
0.6
|
|
0.4
|
|
|
Net
income
|
|
$154.9
|
|
$143.4
|
|
$336.8
|
|
$297.0
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$1.11
|
|
$1.01
|
|
$2.42
|
|
$2.09
|
|
Shares
|
|
139.2
|
|
140.8
|
|
139.0
|
|
141.2
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
$1.11
|
|
$1.01
|
|
$2.41
|
|
$2.07
|
|
Shares
|
|
140.1
|
|
142.4
|
|
140.0
|
|
143.2
|
|
Spirit AeroSystems
Holdings, Inc.
|
|
Condensed
Consolidated Balance Sheets
|
|
(unaudited)
|
|
|
|
|
|
July 2,
2015
|
|
December 31,
2014
|
|
|
|
($ in
millions)
|
|
Current
assets
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$958.7
|
|
$377.9
|
|
Accounts receivable,
net
|
|
563.2
|
|
605.6
|
|
Inventory,
net
|
|
1,757.8
|
|
1,753.0
|
|
Deferred tax asset -
current
|
|
33.7
|
|
53.2
|
|
Other current
assets
|
|
94.9
|
|
262.4
|
|
Total current assets
|
|
3,408.3
|
|
3,052.1
|
|
Property, plant and
equipment, net
|
|
1,827.1
|
|
1,783.6
|
|
Pension
assets
|
|
216.9
|
|
203.4
|
|
Other
assets
|
|
124.8
|
|
123.6
|
|
Total assets
|
|
$5,577.1
|
|
$5,162.7
|
|
Current
liabilities
|
|
|
|
|
|
Accounts
payable
|
|
$677.0
|
|
$611.2
|
|
Accrued
expenses
|
|
256.8
|
|
329.1
|
|
Profit
Sharing
|
|
41.7
|
|
111.8
|
|
Current portion of
long-term debt
|
|
40.5
|
|
9.4
|
|
Advance payments,
short-term
|
|
155.0
|
|
118.6
|
|
Deferred revenue,
short-term
|
|
115.6
|
|
23.4
|
|
Deferred grant income
liability - current
|
|
10.9
|
|
10.2
|
|
Other current
liabilities
|
|
48.3
|
|
45.1
|
|
Total current liabilities
|
|
1,345.8
|
|
1,258.8
|
|
Long-term
debt
|
|
1,112.6
|
|
1,144.1
|
|
Advance payments,
long-term
|
|
600.8
|
|
680.4
|
|
Pension/OPEB
obligation
|
|
75.3
|
|
73.0
|
|
Deferred revenue and
other deferred credits
|
|
119.8
|
|
27.5
|
|
Deferred grant income
liability - non-current
|
|
90.5
|
|
96.1
|
|
Other
liabilities
|
|
271.3
|
|
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,
141,242,569 and 141,084,378 shares issued,
respectively
|
|
1.4
|
|
1.4
|
|
Common stock,
Class B par value $0.01, 150,000,000 shares authorized,
121 and 4,745 shares issued, respectively
|
|
-
|
|
-
|
|
Additional paid-in
capital
|
|
1,037.4
|
|
1,035.6
|
|
Accumulated other
comprehensive loss
|
|
(153.4)
|
|
(153.8)
|
|
Retained
earnings
|
|
1,204.3
|
|
867.5
|
|
Treasury stock, at
cost (4,000,000 shares each period, respectively)
|
|
(129.2)
|
|
(129.2)
|
|
Total shareholders' equity
|
|
1,960.5
|
|
1,621.5
|
|
Noncontrolling
interest
|
|
0.5
|
|
0.5
|
|
Total equity
|
|
1,961.0
|
|
1,622.0
|
|
Total liabilities and equity
|
|
$5,577.1
|
|
$5,162.7
|
|
Spirit AeroSystems
Holdings, Inc.
|
|
Condensed
Consolidated Statements of Cash Flows
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
For the Six Months
Ended
|
|
|
|
July 2,
2015
|
|
July 3,
2014
|
|
|
|
($ in
millions)
|
|
Operating
activities
|
|
|
|
|
|
Net income
|
|
$336.8
|
|
$297.0
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities
|
|
|
|
|
|
Depreciation
expense
|
|
88.8
|
|
83.5
|
|
Amortization
expense
|
|
0.6
|
|
5.7
|
|
Amortization of deferred
financing fees
|
|
5.1
|
|
18.7
|
|
Accretion of customer supply
agreement
|
|
1.1
|
|
0.5
|
|
Employee stock compensation
expense
|
|
11.9
|
|
8.0
|
|
Excess tax benefits from
share-based payment arrangements
|
|
(10.1)
|
|
(2.3)
|
|
Loss (gain) from hedge
contracts
|
|
1.6
|
|
(1.3)
|
|
Loss on disposition of
assets
|
|
2.2
|
|
-
|
|
Loss (gain) from foreign
currency transactions
|
|
2.7
|
|
(5.7)
|
|
Deferred
taxes
|
|
4.4
|
|
1.9
|
|
Pension and other
post-retirement benefits, net
|
|
(13.1)
|
|
(12.8)
|
|
Grant income
|
|
(4.8)
|
|
(3.9)
|
|
Equity in net income of
affiliate
|
|
(0.6)
|
|
(0.4)
|
|
Changes in assets and
liabilities
|
|
|
|
|
|
Accounts receivable,
net
|
|
40.1
|
|
(172.4)
|
|
Inventory, net
|
|
(1.3)
|
|
(73.6)
|
|
Accounts payable and accrued
liabilities
|
|
(12.0)
|
|
(53.7)
|
|
Profit sharing/deferred
compensation
|
|
(70.0)
|
|
11.9
|
|
Advance payments
|
|
(43.2)
|
|
(40.4)
|
|
Income taxes
receivable/payable
|
|
181.5
|
|
121.8
|
|
Deferred revenue and other
deferred credits
|
|
185.7
|
|
6.3
|
|
Other
|
|
21.6
|
|
20.7
|
|
Net
cash provided by operating activities
|
|
$729.0
|
|
$209.5
|
|
Investing
activities
|
|
|
|
|
|
Purchase of property,
plant and equipment
|
|
(115.4)
|
|
(89.6)
|
|
Proceeds from sale of
assets
|
|
-
|
|
0.4
|
|
Net
cash used in investing activities
|
|
($115.4)
|
|
($89.2)
|
|
Financing
activities
|
|
|
|
|
|
Proceeds from issuance
of debt
|
|
535.0
|
|
-
|
|
Proceeds from issuance
of bonds
|
|
-
|
|
300.0
|
|
Principal payments of
debt
|
|
(17.4)
|
|
(11.9)
|
|
Payments on term
loan
|
|
(534.9)
|
|
-
|
|
Payments on
bonds
|
|
-
|
|
(300.0)
|
|
Taxes paid related to
net share settlement awards
|
|
(20.2)
|
|
-
|
|
Excess tax benefit from
share-based payment arrangements
|
|
10.1
|
|
2.3
|
|
Debt issuance and
financing costs
|
|
(4.7)
|
|
(20.8)
|
|
Purchase of treasury
stock
|
|
-
|
|
(129.2)
|
|
Net
cash used in financing activities
|
|
($32.1)
|
|
($159.6)
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
|
(0.7)
|
|
0.2
|
|
Net
increase (decrease) in cash and cash equivalents for the
period
|
|
$580.8
|
|
($39.1)
|
|
Cash and cash
equivalents, beginning of the period
|
|
377.9
|
|
420.7
|
|
Cash and cash
equivalents, end of the period
|
|
$958.7
|
|
$381.6
|
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 measure. Other companies may define
the measure differently.
Adjusted
EPS
|
|
|
|
|
|
|
|
|
2nd
Quarter
|
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Diluted Earnings
Per Share
|
|
$1.11
|
|
$1.01
|
|
Impact of Partial
Release of Deferred Tax Asset Valuation Allowance
|
|
(0.02)
|
a
|
(0.03)
|
b
|
Adjusted Diluted
Earnings Per Share
|
|
$1.09
|
|
$0.98
|
|
|
|
|
|
|
|
Diluted
Shares
|
|
140.1
|
|
142.4
|
|
|
|
|
|
|
|
a
Represents the net earnings per share impact of deferred tax asset
valuation allowance of $2.1 million.
|
|
b
Represents the net earnings per share impact of deferred tax asset
valuation allowance of $4.2 million.
|
Free Cash
Flow
|
($ in
millions)
|
|
|
|
|
|
|
|
|
|
2nd
Quarter
|
|
Six Months
|
|
Guidance
|
|
2015
|
2014
|
|
2015
|
2014
|
|
2015
|
|
|
|
|
|
|
|
|
Cash Provided by
Operating Activities
|
$305
|
$165
|
|
$729
|
$210
|
|
$1,025 -
$1,175
|
Capital
Expenditures
|
(75)
|
(37)
|
|
(115)
|
(90)
|
|
(325 -
375)
|
Free Cash
Flow
|
$230
|
$128
|
|
$614
|
$120
|
|
$700 -
$800
|
On the web: http://www.spiritaero.com
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visit:http://www.prnewswire.com/news-releases/spirit-aerosystems-holdings-inc-reports-second-quarter-2015-financial-results-revenues-of-17-billion-and-eps-of-111-300120273.html
SOURCE Spirit AeroSystems Holdings, Inc.