WICHITA, Kan., Nov. 1, 2016 /CNW/ --
Third Quarter 2016 Results and Highlights
- Strong performance:
- Revenue of $1.7 billion, up 7%
y/y
- Earnings per share (EPS) of $1.16
- Free cash flow* of $214
million
- Purchased 7.4 million shares for $332
million, completed existing share repurchase program
- Announces new share repurchase program of up to $600 million
- Initiates quarterly dividend of $0.10 per share
- Raises full-year 2016 guidance:
- Revenue increased $100 million to
$6.7 - $6.8
billion
- EPS increased from $3.45 - $3.65
to $3.65 - $3.80 (Adjusted EPS* of
$4.50 - $4.65)
- Free cash flow* increased from $350 -
$400 million to $400 - $425
million
Spirit AeroSystems Holdings, Inc., [NYSE: SPR] reported third
quarter 2016 financial results driven by strong operating
performance of mature programs. During the quarter, Spirit
purchased 7.4 million shares for $332
million, which concludes the current $600 million share repurchase program.
"As promised, we remain committed to a balanced and disciplined
approach to capital deployment by utilizing all the different
mechanisms in an opportunistic and timely way. Our strong
performance this year and our five-year financial outlook give us a
high degree of confidence in our business. After discussions with
our Board about capital allocation, we are pleased to announce a
new share repurchase program of $600
million and initiate a quarterly dividend of $0.10 per share," Spirit President and CEO
Tom Gentile said.
The dividend is payable on January 9,
2017 to shareholders of record as of December 19, 2016.
In the quarter, Spirit celebrated the successful delivery of key
components to Boeing for the 500th 787 Dreamliner. This
represents a monumental accomplishment for Spirit, which has
been delivering a fully integrated forward fuselage, engine pylons,
and fixed and moveable leading edges to Boeing since 2007.
"We are extremely proud of our collaboration with Boeing and the
work we do together to build the 787, the fastest twin-aisle
airplane to reach this key milestone," Gentile added.
Table 1.
Summary Financial Results (unaudited)
|
|
|
|
|
|
3rd
Quarter
|
|
Nine
Months
|
|
($ in millions,
except per share data)
|
2016
|
2015
|
Change
|
2016
|
2015
|
Change
|
|
|
|
|
|
|
|
Revenue
|
$1,711
|
$1,594
|
7%
|
$5,223
|
$5,035
|
4%
|
Operating
Income
|
$214
|
$192
|
11%
|
$564
|
$657
|
(14%)
|
Operating Income
as a % of Revenue
|
12.5%
|
12.0%
|
50
BPS
|
10.8%
|
13.1%
|
(230)
BPS
|
Net
Income
|
$145
|
$314
|
(54%)
|
$362
|
$650
|
(44%)
|
Net Income as a %
of Revenue
|
8.5%
|
19.7%
|
(1,120)
BPS
|
6.9%
|
12.9%
|
(600)
BPS
|
Earnings Per Share
(Fully Diluted)
|
$1.16
|
$2.24
|
(48%)
|
$2.80
|
$4.64
|
(40%)
|
Adjusted Earnings
Per Share (Fully Diluted)*
|
$1.16
|
$0.89
|
30%
|
$3.66
|
$2.97
|
23%
|
Fully Diluted
Weighted Avg Share Count
|
125.3
|
140.2
|
|
129.0
|
140.1
|
|
|
|
|
|
|
|
|
Revenue
Spirit's third quarter 2016 revenue was $1.7 billion, up seven percent compared to the
same period of 2015, primarily driven by higher production
deliveries on the A350 XWB and Boeing 767 programs and higher
revenue recognized on certain non-recurring Boeing programs, offset
by lower production deliveries on the Boeing 747 program. (Table
1)
"We are increasing our revenue guidance by $100 million to a new range of $6.7 - $6.8 billion," Gentile stated.
Spirit's backlog at the end of the third quarter of 2016 was
approximately $46 billion, with work
packages on all commercial platforms in the Boeing and Airbus
backlog.
Earnings
Operating income for the third quarter of 2016 was $214 million, compared to $192 million in the third quarter of 2015,
reflecting higher production deliveries. Reported EPS was
$1.16, compared to $2.24 EPS (or $0.89
adjusted EPS* excluding the impact of Deferred Tax Asset Valuation
Allowance) in the same period of 2015. On an adjusted* basis EPS is
up 30 percent year over year. (Table 1)
"We are increasing our earnings per share guidance to
$3.65 - $3.80, which reflects
$0.86 per share impact of one-time
items which occurred in the second quarter. This equates to an
adjusted earnings per share* guidance of $4.50 - $4.65," Gentile commented.
Cash
Free cash flow* in the third quarter of 2016 was $214 million, compared to free cash flow* of
$139 million (or adjusted free cash
flow* of $76 million, reflecting the
impact of the 787 interim pricing agreement in the same quarter
last year). On an adjusted basis, free cash flow* is up 182
percent year over year. (Table 2)
"Our free cash flow* guidance is also increasing to a new range
of $400 - $425 million," Gentile
concluded.
Cash balance at the end of the quarter was $670 million, reflecting the purchase of 7.4
million shares for $332 million
during the quarter. The company's $650
million revolving credit facility remained undrawn at the
end of the quarter.
Table 2.
Cash Flow and Liquidity (unaudited)
|
|
|
|
|
3rd
Quarter
|
Nine
Months
|
($ in
millions)
|
2016
|
2015
|
2016
|
2015
|
|
|
|
|
|
Cash Flow from
Operations
|
$266
|
$240
|
$574
|
$969
|
Purchases of
Property, Plant & Equipment
|
($52)
|
($101)
|
($157)
|
($216)
|
Free Cash
Flow*
|
$214
|
$139
|
$417
|
$753
|
Adjusted Free Cash
Flow*
|
$214
|
$76
|
$374
|
$607
|
|
|
|
|
|
|
|
|
September
29,
|
December
31,
|
Liquidity
|
|
|
2016
|
2015
|
Cash
|
|
|
$670
|
$957
|
Total
Debt
|
|
|
$1,105
|
$1,120
|
|
|
|
|
|
Financial Outlook and Risk to Future Financial
Results
|
|
2016
Guidance
|
Table 3.
Financial Outlook Updated November 1, 2016
|
Prior
|
|
New
|
|
|
|
|
|
Revenue
|
|
$6.6 - $6.7
billion
|
|
$6.7 - $6.8
billion
|
|
|
|
|
|
Earnings Per Share
(Fully Diluted)
|
|
$3.45 -
$3.65
|
|
$3.65 -
$3.80
|
|
|
|
|
|
Effective Tax
Rate
|
|
~31%
|
|
~31%
|
|
|
|
|
|
Free Cash
Flow*
|
|
$350 - $400
million
|
|
$400 - $425
million
|
|
|
|
|
|
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.
Segment Results
Fuselage Systems
Fuselage Systems segment revenue in the third quarter of 2016
was up seven percent over the same period last year to $880 million, due to higher production deliveries
on the A350 XWB and Boeing 767 programs, partially offset by lower
production deliveries on the Boeing 737 and 747 programs. Operating
margin for the third quarter of 2016 was 16.2 percent as compared
to 15.9 percent during the same period of 2015. In the third
quarter of 2016, the company recorded pretax ($1.9) million unfavorable cumulative catch-up
adjustments on mature programs and a forward-loss of ($1.6) million.
Propulsion Systems
Propulsion Systems segment revenue in the third quarter of 2016
increased five percent over the same period last year to
$453 million, driven by higher
revenue recognized on certain non-recurring Boeing programs, and
higher production deliveries on the Boeing 767 program and the
Rolls-Royce BR725 program, partially offset by lower production
deliveries on the Boeing 747 program. Operating margin for the
third quarter of 2016 was 17.1 percent as compared to 22.1 percent
during the same period of 2015. Year over year change is driven by
significant cumulative catch-up adjustments in 2015, ongoing
implementation of supply chain initiatives and higher revenue
recognized on certain lower margin non-recurring Boeing programs in
2016. In the third quarter of 2016, the segment realized pretax
($1.6) million unfavorable cumulative
catch-up adjustments on mature programs and a ($0.5) million forward-loss.
Wing Systems
Wing Systems segment revenue in the third quarter of 2016
increased ten percent over the same period last year to
$377 million, primarily due to higher
production deliveries on the A350 XWB and Boeing 737 programs,
partially offset by lower wing-related activity on the Boeing 777
program and lower production deliveries on the Boeing 747 program.
Operating margin for the third quarter of 2016 was 13.6 percent as
compared to 13.4 percent during the same period of 2015. In the
third quarter of 2016, the segment recorded pretax ($0.8) million unfavorable cumulative catch-up
adjustments and a net favorable change in estimates on forward-loss
programs of $0.9 million.
Table 4.
Segment Reporting (unaudited)
|
|
|
|
3rd
Quarter
|
Nine
Months
|
($ in
millions)
|
2016
|
2015
|
Change
|
2016
|
2015
|
Change
|
|
|
|
|
|
|
|
Segment
Revenue
|
|
|
|
|
|
|
Fuselage
Systems
|
$880.3
|
$819.8
|
7.4%
|
$2,679.7
|
$2,624.2
|
2.1%
|
Propulsion Systems
|
453.0
|
429.5
|
5.5%
|
1,373.3
|
1,316.0
|
4.4%
|
Wing
Systems
|
376.8
|
341.2
|
10.4%
|
1,161.5
|
1,085.4
|
7.0%
|
All
Other
|
1.3
|
3.1
|
|
8.4
|
8.9
|
|
Total Segment
Revenue
|
$1,711.4
|
$1,593.6
|
7.4%
|
$5,222.9
|
$5,034.5
|
3.7%
|
|
|
|
|
|
|
|
Segment Earnings
from Operations
|
|
|
|
|
|
|
Fuselage
Systems
|
$142.5
|
$130.7
|
9.0%
|
$340.9
|
$463.2
|
(26.4%)
|
Propulsion Systems
|
77.5
|
95.1
|
(18.5%)
|
250.9
|
279.0
|
(10.1%)
|
Wing
Systems
|
51.1
|
45.6
|
12.1%
|
174.7
|
140.9
|
24.0%
|
All
Other
|
0.6
|
0.2
|
|
2.0
|
1.3
|
|
Total Segment
Operating Earnings
|
$271.7
|
$271.6
|
-
|
$768.5
|
$884.4
|
(13.1%)
|
|
|
|
|
|
|
|
Unallocated
Expense
|
|
|
|
|
|
|
Corporate
SG&A
|
($52.2)
|
($54.5)
|
4.2%
|
($172.4)
|
($159.9)
|
(7.8%)
|
Research &
Development
|
(5.4)
|
(6.5)
|
16.9%
|
(15.9)
|
(20.2)
|
21.3%
|
Cost of
Sales
|
0.3
|
(19.0)
|
101.6%
|
(16.0)
|
(47.1)
|
66.0%
|
Total Earnings
from Operations
|
$214.4
|
$191.6
|
11.9%
|
$564.2
|
$657.2
|
(14.2%)
|
|
|
|
|
|
|
|
Segment Operating
Earnings as % of Revenue
|
|
|
|
|
|
|
Fuselage
Systems
|
16.2%
|
15.9%
|
30
BPS
|
12.7%
|
17.7%
|
(500)
BPS
|
Propulsion Systems
|
17.1%
|
22.1%
|
(500)
BPS
|
18.3%
|
21.2%
|
(290)
BPS
|
Wing
Systems
|
13.6%
|
13.4%
|
20
BPS
|
15.0%
|
13.0%
|
200
BPS
|
All
Other
|
46.2%
|
6.5%
|
|
23.8%
|
14.6%
|
|
Total Segment
Operating Earnings as % of Revenue
|
15.9%
|
17.0%
|
(110)
BPS
|
14.7%
|
17.6%
|
(290)
BPS
|
|
|
|
|
|
|
|
Total Operating
Earnings as % of Revenue
|
12.5%
|
12.0%
|
50
BPS
|
10.8%
|
13.1%
|
(230)
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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3rd
Quarter
|
|
Nine
Months
|
|
|
|
2016
|
2015
|
|
2016
|
2015
|
|
B737
|
|
126
|
127
|
|
384
|
389
|
|
B747
|
|
2
|
4
|
|
7
|
12
|
|
B767
|
|
6
|
3
|
|
19
|
13
|
|
B777
|
|
26
|
27
|
|
77
|
78
|
|
B787
|
|
30
|
31
|
|
99
|
97
|
|
Total
|
|
190
|
192
|
|
586
|
589
|
|
|
|
|
|
|
|
|
|
A320
Family
|
|
119
|
115
|
|
411
|
370
|
|
A330/340
|
|
17
|
17
|
|
50
|
63
|
|
A350
|
|
16
|
8
|
|
50
|
23
|
|
A380
|
|
4
|
6
|
|
17
|
18
|
|
Total
|
|
156
|
146
|
|
528
|
474
|
|
|
|
|
|
|
|
|
|
Business/Regional
Jet
|
|
22
|
9
|
|
59
|
42
|
|
|
|
|
|
|
|
|
|
Total
Spirit
|
|
368
|
347
|
|
1,173
|
1,105
|
|
Spirit AeroSystems
Holdings, Inc.
|
Condensed
Consolidated Statements of Operations
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended
|
|
For the Nine
Months Ended
|
|
|
|
September 29,
2016
|
|
October 1,
2015
|
|
September 29,
2016
|
|
October 1,
2015
|
|
|
($ in millions,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
Net
revenues
|
|
$1,711.4
|
|
$1,593.6
|
|
$5,222.9
|
|
$5,034.5
|
Operating
costs and expenses:
|
|
|
|
|
|
|
|
|
Cost of
sales
|
|
1,439.4
|
|
1,341.0
|
|
4,470.4
|
|
4,197.2
|
Selling,
general and administrative
|
|
52.2
|
|
54.5
|
|
172.4
|
|
159.9
|
Research and
development
|
|
5.4
|
|
6.5
|
|
15.9
|
|
20.2
|
|
Total
operating costs and expenses
|
|
1,497.0
|
|
1,402.0
|
|
4,658.7
|
|
4,377.3
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
214.4
|
|
191.6
|
|
564.2
|
|
657.2
|
Interest expense and
financing fee amortization
|
|
(12.2)
|
|
(11.7)
|
|
(47.5)
|
|
(41.7)
|
Other expense,
net
|
|
(0.3)
|
|
(2.5)
|
|
(8.7)
|
|
(0.8)
|
|
Income
before income taxes and equity in net income of
affiliate
|
|
201.9
|
|
177.4
|
|
508.0
|
|
614.7
|
Income tax
(provision) benefit
|
|
(57.3)
|
|
135.9
|
|
(147.8)
|
|
34.8
|
|
Income
before equity in net income of affiliate
|
|
144.6
|
|
313.3
|
|
360.2
|
|
649.5
|
Equity in net income
of affiliate
|
|
0.5
|
|
0.3
|
|
1.3
|
|
0.9
|
|
Net
income
|
|
$145.1
|
|
$313.6
|
|
$361.5
|
|
$650.4
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share
|
|
|
|
|
|
|
|
|
Basic
|
|
$1.16
|
|
$2.25
|
|
$2.82
|
|
$4.67
|
Shares
|
|
124.4
|
|
139.3
|
|
128.2
|
|
139.1
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
$1.16
|
|
$2.24
|
|
$2.80
|
|
$4.64
|
Shares
|
|
125.3
|
|
140.2
|
|
129.0
|
|
140.1
|
Spirit AeroSystems
Holdings, Inc.
|
Condensed
Consolidated Balance Sheets
|
(unaudited)
|
|
|
September 29,
2016
|
|
December 31,
2015
|
|
|
($ in
millions)
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
|
$670.4
|
|
$957.3
|
Accounts receivable,
net
|
|
748.6
|
|
537.0
|
Inventory,
net
|
|
1,488.1
|
|
1,774.4
|
Other current
assets
|
|
25.1
|
|
30.4
|
Total current assets
|
|
2,932.2
|
|
3,299.1
|
Property, plant and
equipment, net
|
|
1,934.7
|
|
1,950.7
|
Pension
assets
|
|
256.1
|
|
246.9
|
Other
assets
|
|
238.2
|
|
267.8
|
Total assets
|
|
$5,361.2
|
|
$5,764.5
|
Current
liabilities
|
|
|
|
|
Accounts
payable
|
|
$591.8
|
|
$618.2
|
Accrued
expenses
|
|
227.0
|
|
230.2
|
Profit
Sharing
|
|
64.0
|
|
61.6
|
Current portion of
long-term debt
|
|
34.2
|
|
34.9
|
Advance payments,
short-term
|
|
201.4
|
|
178.3
|
Deferred revenue and
other deferred credits, short-term
|
|
311.5
|
|
285.5
|
Deferred grant income
liability - current
|
|
13.8
|
|
11.9
|
Other current
liabilities
|
|
84.6
|
|
37.7
|
Total current liabilities
|
|
1,528.3
|
|
1,458.3
|
Long-term
debt
|
|
1,071.1
|
|
1,085.3
|
Advance payments,
long-term
|
|
382.5
|
|
507.4
|
Pension/OPEB
obligation
|
|
71.6
|
|
67.7
|
Deferred revenue and
other deferred credits
|
|
167.3
|
|
170.0
|
Deferred grant income
liability - non-current
|
|
68.5
|
|
82.3
|
Other
liabilities
|
|
262.6
|
|
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,
121,660,191 and 135,617,589 shares issued and outstanding,
respectively
|
|
1.2
|
|
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
|
|
1,072.1
|
|
1,051.6
|
Accumulated other
comprehensive loss
|
|
(203.4)
|
|
(160.5)
|
Retained
earnings
|
|
2,017.7
|
|
1,656.2
|
Treasury stock, at
cost (23,936,092 and 9,691,865 shares, respectively)
|
|
(1,078.8)
|
|
(429.2)
|
Total shareholders' equity
|
|
1,808.8
|
|
2,119.5
|
Noncontrolling
interest
|
|
0.5
|
|
0.5
|
Total equity
|
|
1,809.3
|
|
2,120.0
|
Total liabilities and equity
|
|
$5,361.2
|
|
$5,764.5
|
Spirit AeroSystems
Holdings, Inc.
|
Condensed
Consolidated Statements of Cash Flows
|
(unaudited)
|
|
|
|
|
|
|
|
For the Nine
Months Ended
|
|
|
September 29,
2016
|
|
October 1,
2015
|
|
|
($ in
millions)
|
Operating
activities
|
|
|
|
|
Net income
|
|
$361.5
|
|
$650.4
|
Adjustments to
reconcile net income to net cash provided by operating
activities
|
|
|
|
|
Depreciation
expense
|
|
149.1
|
|
133.4
|
Amortization
expense
|
|
0.2
|
|
0.6
|
Amortization of deferred
financing fees
|
|
18.5
|
|
6.0
|
Accretion of customer supply
agreement
|
|
3.5
|
|
1.6
|
Employee stock compensation
expense
|
|
35.7
|
|
19.0
|
Excess tax benefits from
share-based payment arrangements
|
|
0.1
|
|
(10.7)
|
Loss from hedge
contracts
|
|
-
|
|
1.6
|
Loss from foreign currency
transactions
|
|
15.9
|
|
6.3
|
(Gain) loss on disposition
of assets
|
|
(0.5)
|
|
3.0
|
Deferred
taxes
|
|
34.7
|
|
(200.7)
|
Pension and other
post-retirement benefits, net
|
|
(5.0)
|
|
(19.7)
|
Grant liability
amortization
|
|
(8.6)
|
|
(7.5)
|
Equity in net income of
affiliate
|
|
(1.3)
|
|
(0.9)
|
Changes in assets and
liabilities
|
|
|
|
|
Accounts receivable,
net
|
|
(220.8)
|
|
24.4
|
Inventory, net
|
|
257.3
|
|
(53.9)
|
Accounts payable and accrued
liabilities
|
|
(18.6)
|
|
11.2
|
Profit sharing/deferred
compensation
|
|
2.8
|
|
(48.8)
|
Advance payments
|
|
(101.8)
|
|
(75.0)
|
Income taxes
receivable/payable
|
|
1.3
|
|
179.6
|
Deferred revenue and other
deferred credits
|
|
26.0
|
|
290.3
|
Other
|
|
24.4
|
|
59.2
|
Net
cash provided by operating activities
|
|
$574.4
|
|
$969.4
|
Investing
activities
|
|
|
|
|
Purchase of property, plant
and equipment
|
|
(156.8)
|
|
(216.5)
|
Proceeds from sale of
assets
|
|
0.6
|
|
1.8
|
Net
cash used in investing activities
|
|
($156.2)
|
|
($214.7)
|
Financing
activities
|
|
|
|
|
Proceeds from issuance of
debt
|
|
-
|
|
535.0
|
Proceeds from issuance of
bonds
|
|
299.8
|
|
-
|
Principal payments of
debt
|
|
(16.7)
|
|
(29.2)
|
Payments on term
loan
|
|
-
|
|
(534.9)
|
Payments on bonds
|
|
(300.0)
|
|
-
|
Taxes paid related to net
share settlement awards
|
|
(15.2)
|
|
(20.7)
|
Excess tax benefit from
share-based payment arrangements
|
|
(0.1)
|
|
10.7
|
Debt issuance and financing
costs
|
|
(17.2)
|
|
(4.7)
|
Purchase of treasury
stock
|
|
(649.6)
|
|
(45.9)
|
Net
cash used in financing activities
|
|
($699.0)
|
|
($89.7)
|
Effect of exchange
rate changes on cash and cash equivalents
|
|
(6.1)
|
|
(0.2)
|
Net
(decrease) increase in cash and cash equivalents for the
period
|
|
($286.9)
|
|
$664.8
|
Cash and cash
equivalents, beginning of the period
|
|
957.3
|
|
377.9
|
Cash and cash
equivalents, end of the period
|
|
$670.4
|
|
$1,042.7
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3rd
Quarter
|
|
Nine
Months
|
|
Guidance
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Diluted Earnings
Per Share
|
|
$1.16
|
|
$2.24
|
|
$2.80
|
|
$4.64
|
|
$3.65 -
$3.80
|
|
Impact of Airbus
Agreement, CEO Retirement, and Debt Refinancing
|
|
-
|
|
-
|
|
0.86
|
a
|
-
|
|
0.86
|
a
|
Impact of Partial
Release of Deferred Tax Asset Valuation Allowance
|
|
-
|
|
(1.35)
|
b
|
-
|
|
(1.67)
|
c
|
-
|
|
Adjusted Diluted
Earnings Per Share
|
|
$1.16
|
|
$0.89
|
|
$3.66
|
|
$2.97
|
|
~ $4.50 -
$4.65
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
Shares
|
|
125.3
|
|
140.2
|
|
129.0
|
|
140.1
|
|
|
|
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 $189.4 million
|
|
c
|
Represents the net
earnings per share impact of deferred tax asset valuation allowance
of $233.5 million
|
Free Cash
Flow
|
($ in
millions)
|
|
|
|
|
|
|
|
|
|
3rd
Quarter
|
|
Nine
Months
|
|
Guidance
|
|
2016
|
2015
|
|
2016
|
2015
|
|
2016
|
|
|
|
|
|
|
|
|
Cash Provided by
Operating Activities
|
$266
|
$240
|
|
$574
|
$969
|
|
$650 -
$725
|
Capital
Expenditures
|
(52)
|
(101)
|
|
(157)
|
(216)
|
|
(250 -
300)
|
Free Cash
Flow
|
$214
|
$139
|
|
$417
|
$753
|
|
|
Cash Received under
787 Interim Pricing Agreement
|
-
|
(63)
|
|
(43)
|
(146)
|
|
|
|
|
|
|
|
|
|
|
Adjusted Free Cash
Flow
|
$214
|
$76
|
|
$374
|
$607
|
|
$400 -
$425
|
* Non-GAAP financial measure, see Appendix for
reconciliation
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SOURCE Spirit AeroSystems Holdings, Inc.