SPIRIT AEROSYSTEMS HOLDINGS, INC. 
WICHITA, Kan., Feb. 6, 2014 /PRNewswire/ --
Key Announcements
-- Strategic and Financial Review Now Complete
-- Recorded pre-tax charge of ($546) million, and established non-cash
valuation allowance of ($381) million
-- Providing Full-Year 2014 Guidance: Revenues $6.5 - $6.7 billion,
Earnings Per Share of $2.50 - $2.65, Adjusted Free Cash Flow
approximately $150 million*
Fourth Quarter 2013 Consolidated Results
-- Total Revenues of $1.5 billion, up 5% y/y
-- Reports fully diluted EPS loss of ($4.15)
-- Cash From Operations of $61 million, adjusted Free Cash Flow of $6
million*
-- Records net pre-tax charges of ($546) million, primarily on the 787
program
-- Establishes non-cash valuation allowance of ($381) million against U.S.
net deferred tax assets
Full-Year 2013 Consolidated Results
-- Total Revenues of $6.0 billion, up 10% y/y
-- Reports EPS loss of ($4.40)
-- Cash From Operations of $261 million, adjusted Free Cash Flow of $57
million*
-- Total backlog ~$41 billion
Spirit AeroSystems Holdings, Inc. [NYSE: SPR] reported fourth quarter and full-year 2013 financial results reflecting record high revenue on higher ship set deliveries and strong mature program operating performance.
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Spirit's fourth quarter 2013 revenues were $1.5 billion, up from $1.4 billion for the same period of 2012 due to increased production deliveries during the quarter.
Table 1. Summary Financial Results (unaudited)
----------------------------------------------
4th Quarter Twelve Months
----------- -------------
($
in
millions,
except
per
share
data) 2013 2012 Change 2013 2012 Change
--------- ---- ---- ------ ---- ---- ------
Revenues $1,494 $1,426 5% $5,961 $5,398 10%
Operating
(Loss)
Income ($321) $98 (427%) ($364) $92 (495%)
Operating
(Loss)
Income
as
a
%
of
Revenues (21.5%) 6.9% (2,840) BPS (6.1%) 1.7% (780) BPS
Net
(Loss)
Income ($587) $61 (1,067%) ($621) $35 (1,886%)
Net
(Loss)
Income
as
a
%
of
Revenues (39.3%) 4.3% (4,360) BPS (10.4%) 0.6% (1,100) BPS
(Loss)
Earnings
Per
Share
(Fully
Diluted) ($4.15) $0.43 (1,065%) ($4.40) $0.24 (1,933%)
Fully
Diluted
Weighted
Avg
Share
Count 141.4 142.7 141.3 142.7
Operating loss for the fourth quarter of 2013 was ($321) million compared to operating income of $98 million in the fourth quarter of 2012. Net loss for the quarter was ($587) million, or ($4.15) per share, compared to net income of $61 million, or $0.43 per share, in the same period of 2012. The current quarter includes net pre-tax ($546) million, or ($2.42) per share, of forward loss charges principally on the 787 program. This is compared to net pre-tax ($34) million, or ($0.19) per share, of forward loss charges in the same period of 2012. The current quarter also includes a ($381) million, or ($2.69) per share, negative impact due to the establishment of a valuation allowance against U.S. net deferred tax assets. Additionally, the quarter includes net pre-tax $51 million favorable cumulative catch-up adjustments, or $0.22 per share, and pension related gains of $17 million, or $0.09 per share.
Revenue for the full-year 2013 increased 10 percent to $6.0 billion. Operating loss for the full-year was ($364) million compared to operating income of $92 million for the prior year. Full-year net loss was ($621) million, or ($4.40) per share, compared to net income of $35 million, or $0.24 per share in 2012. (Table 1)
"This fourth quarter and year-end report signifies the conclusion of our internal strategic and financial review," said President and Chief Executive Officer Larry Lawson. "It's been nine months of intensive effort on behalf of the entire Spirit team."
"2013 has been a transformational year and I'm proud of our entire enterprise. It's been hard work. We've conducted our reviews, we've sharpened our processes and our team and we have intensified the clarity and fidelity of the analyses. We're better positioned to move forward as we ramp up alongside our customers to all-time historical highs in commercial aircraft production rates."
"We are entering 2014 with a strong cost discipline and relentless focus on performance and accountability that should begin to yield consistent cash generation," Lawson continued.
"During the quarter we delivered strong operating performance across mature programs, successfully executed a rate increase on the 787 program to 10 airplanes per month, and continued to work on the sale of our Oklahoma operations. All of this progress is indicative of the change at Spirit as we reduce costs, focus our resources on value-added engineering and manufacturing, and position the company for future growth."
"The quarter also includes an updated assessment of the current labor and material costs, as well as the near term achievable cost reductions on the 787 program, resulting in the charge," Lawson added.
"Today, Spirit's strong backlog of $41 billion demonstrates our position as a key aerostructures leader, able to execute production rates at all-time historical levels, which is no small feat in the commercial aerospace up-cycle. Our brand is our dedication to our customers' success. Longer-term, as our customers' demand for high quality cost-effective engineering and manufacturing intensifies, Spirit's capability and affordability in both design and manufacturing will generate growth opportunities in both the large commercial aircraft and defense markets," Lawson concluded.
Spirit's backlog at the end of the fourth quarter of 2013 increased by over 7 percent from the previous quarter to $41 billion as orders exceeded deliveries. Spirit calculates its backlog based on contractual prices for products and volumes from the published firm order backlogs of Airbus and Boeing, along with firm orders from other customers.
Spirit updated its contract profitability estimates during the fourth quarter of 2013 and recorded net pre-tax charges of ($546) million, or ($2.42) per share. These include pre-tax charges of ($385) million, or ($1.71) per share on the 787 program; ($54) million, or ($0.24) per share, on the G650 wing program; ($43) million, or ($0.19) per share, on the G280 wing program; ($31) million, or ($0.14) per share, on the 747-8 program; ($22) million, or ($0.09) per share, on the BR725 nacelle program; and ($11) million, or ($0.05) per share, on the 767 program.
Additionally, in the fourth quarter of 2013 the company recorded net pre-tax $51 million, or $0.22 per share, favorable cumulative catch-up adjustments primarily associated with productivity and efficiency improvements on mature programs. In comparison, Spirit recognized net pre-tax $10 million favorable cumulative catch-up adjustments in the fourth quarter of 2012.
Cash flow from operations was a $61 million source of cash for the fourth quarter of 2013, compared to a $309 million source of cash for the fourth quarter of 2012. Excluding forward losses, the current quarter reflects increases in inventory associated with rate increases as well as timing of certain tax receipts and payables. The fourth quarter of 2012 reflected net insurance proceeds of approximately $112 million associated with the severe weather event at Spirit's Wichita, Kansas facility in April 2012. (Table 2)
Table 2. Cash Flow and Liquidity (unaudited)
4th
Quarter Twelve Months
-------- -------------
($
in
millions) 2013 2012 2013 2012
--------- ---- ---- ---- ----
Cash
Flow
from
Operations $61 $309 $261 $544
Purchases
of
Property,
Plant
&
Equipment** ($81) ($79) ($273) ($249)
Free
Cash
Flow* ($20) $230 ($12) $295
Adjusted
Free
Cash
Flow*# $6 $118 $57 ($84)
**Purchases of Property, Plant & Equipment includes purchases related to
the April 14th, 2012 severe weather event
#Excludes Net Severe Weather Impact and Net A350 Customer Advances
December 31, December 31,
Liquidity 2013 2012
---- ----
Cash $421 $441
Total Debt $1,167 $1,176
Cash balances at the end of the year were $421 million. At the end of 2013, the company's $650 million revolving credit facility was undrawn. Debt balances at the end of the fourth quarter were $1.2 billion.
The company's credit rating remained unchanged at the end of the fourth quarter 2013 with a BB rating, negative outlook by Standard & Poor's and a Ba2 rating, negative outlook by Moody's Investor Services.
Financial Outlook and Risk to Future Financial Results
Spirit revenue for the full-year 2014 is expected to be between $6.5 - $6.7 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 consistent with those for the full year of 2013.
Fully diluted earnings per share guidance for 2014 is expected to be between $2.50 - $2.65 per share.
Adjusted cash flow from operations, less capital expenditures, is expected to be approximately $150 million*, with capital expenditures consistent with those for the full year of 2013.
The effective tax rate for 2014 is forecasted to be approximately 31.0 - 32.0 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 recorded at the end of 2013. (Table 3)
Risks to our financial guidance are described more fully in the "Risk Factors" section of our filings with the Securities and Exchange Commission. These factors include Spirit's ability to achieve acceptable ship set pricing with its customers including pricing for derivative airplane models, our ability to achieve anticipated productivity and cost improvement for all of our airplane programs, the risk of higher than forecast non-recurring costs on maturing programs, fluctuations in demand in the market for commercial and business jet aircraft, and the impact of the potential divestiture of our Oklahoma sites.
Table 3. Financial
Outlook Issued
February 6, 2014 2013 Actual 2014 Guidance
------------------- ----------- -------------
Revenues $6.0 billion $6.5 - $6.7 billion
(Loss) Earnings Per
Share (Fully Diluted) ($4.40) $2.50 - $2.65
Effective Tax Rate** (44.4%) ~31.0% - 32.0%
Adjusted Free Cash
Flow* $57 million ~$150 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
(Assumes ~1.0% benefit)
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: our ability to continue to grow our business and execute our growth strategy, including the timing, execution and profitability of maturing programs; our ability to perform our obligations and manage costs related to our maturing commercial, business aircraft, and military development programs and the related recurring production; margin pressures and the potential for additional forward losses on maturing programs; our ability to accommodate, and the cost of accommodating, announced increases in the build rates of certain aircraft; the effect on business and commercial aircraft demand and build rates of the following factors: changing customer preferences for business aircraft, including the effect of global economic conditions on the business-aircraft market, expanding conflicts or political unrest in the Middle East or Asia, and the impact of continuing instability in global financial and credit markets, including, but not limited to, any failure to avert a sovereign debt crisis in Europe; customer cancellations or deferrals as a result of global economic uncertainty; 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; our ability to successfully negotiate new pricing under our agreements with Boeing; our ability to enter into profitable supply arrangements with additional customers; 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; our ability to secure work for replacement programs; 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; any adverse impact on the demand for air travel or our operations from the outbreak of diseases or epidemic or pandemic outbreaks; returns on pension plan assets and the impact of future discount rate changes on pension obligations; our ability to borrow additional funds or refinance debt; our ability to sell our Oklahoma sites for a price acceptable to us; competition from original equipment manufacturers and other aerostructures suppliers; 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; the cost and availability of raw materials and purchased components; our ability to recruit and retain highly skilled employees and our relationships with the unions representing many of our employees; spending by the U.S. and other governments on defense; 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; our exposure under our existing senior secured revolving credit facility to higher interest payments should interest rates increase substantially; the effectiveness of any interest rate and foreign currency hedging programs; the outcome or impact of ongoing or future litigation, claims and regulatory actions; and 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.
Segment Results
Fuselage Systems
Fuselage Systems segment revenues for the fourth quarter of 2013 were $700.8 million, up 3 percent from the same period last year on increased production volumes. Operating margin for the fourth quarter of 2013 was (32.4) percent as compared to 13.8(1) percent during the same period of 2012. In the fourth quarter of 2013, the segment recorded a pre-tax ($333) million forward loss on the 787 program reflecting current labor and material costs as well as near term achievable cost reductions, additional pre-tax ($31) million forward loss on the 747-8 program driven by incorporating model mix and schedule, and a pre-tax ($4) million forward loss on the 767 program driven by updated labor costs. In addition, the segment recorded net pre-tax $26 million favorable cumulative catch-up adjustments associated with productivity and efficiency on mature programs. In comparison, in the fourth quarter of 2012 the segment realized net pre-tax $5 million favorable cumulative catch-up adjustments and a pre-tax forward loss of ($6) million on the 747-8 program.
Propulsion Systems
Propulsion Systems segment revenues for the fourth quarter of 2013 were $398.2 million, up 8 percent from the same period last year on higher production volumes. Operating margin for the fourth quarter of 2013 was 4.7 percent as compared to 13.3(1) percent in the fourth quarter of 2012. In the fourth quarter of 2013, the segment realized a pre-tax ($31) million forward loss on the 787 program reflecting current labor and material costs as well as near term achievable cost reductions, additional pre-tax ($22) million forward loss on the BR725 nacelle program primarily associated with updated labor costs, and additional pre-tax ($7) million forward loss on the 767 program due to model mix. In addition, the segment recorded net pre-tax $15 million favorable cumulative catch-up adjustments associated with productivity and efficiency on mature programs. In comparison, in the fourth quarter of 2012 the segment realized net pre-tax ($1) million unfavorable cumulative catch-up adjustments and a pre-tax ($8) million forward loss on the 767 program.
Wing Systems
Wing Systems segment revenues for the fourth quarter of 2013 were $392.8 million, up 5 percent from the same period last year on increased production volumes. Operating margin for the fourth quarter of 2013 was (16.0) percent as compared to 5.5(1 )percent during the same period of 2012. In the fourth quarter of 2013, the segment realized additional pre-tax ($54) million forward loss on the G650 wing program and an additional pre-tax ($43) million forward loss on the G280 wing program both primarily due to higher costs associated with supplier performance, as well as additional pre-tax ($21) million forward loss on the 787 program reflecting current labor and material costs as well as near term achievable cost reductions. In addition, the segment recorded net pre-tax $10 million favorable cumulative catch-up adjustments associated with productivity and efficiency on mature programs. In comparison, in the fourth quarter of 2012 the segment recorded net pre-tax $6 million favorable cumulative catch-up adjustments and an additional pre-tax ($20) million forward loss on the G280 wing program.
1 Warranty reserve of $3.3
million in 2012
reclassified from segment
operating income to
unallocated cost of sales
to conform to current year
presentation.
Appendix
Table
4.
Segment
Reporting (unaudited) (unaudited)
4th Quarter Twelve Months
----------- -------------
($
in
millions) 2013 2012 Change 2013 2012 Change
--------- ---- ---- ------ ---- ---- ------
Segment
Revenues
Fuselage
Systems $700.8 $680.2 3.0% $2,861.1 $2,590.6 10.4%
Propulsion
Systems $398.2 $368.1 8.2% $1,581.3 $1,420.9 11.3%
Wing
Systems $392.8 $375.3 4.7% $1,502.5 $1,375.1 9.3%
All
Other $2.6 $2.0 $16.1 $11.1
---- ---- ----- -----
Total
Segment
Revenues $1,494.4 $1,425.6 4.8% $5,961.0 $5,397.7 10.4%
Segment
(Loss)
Earnings
from
Operations
Fuselage
Systems ($227.1) $93.9 (341.9%) $70.1 $391.9 (82.1%)
Propulsion
Systems $18.9 $48.8 (61.3%) $235.8 $67.5 249.3%
Wing
Systems ($62.7) $20.6 (404.4%) ($414.0) ($335.6) (23.4%)
All
Other $0.3 ($0.2) $4.4 $1.0
---- ----- ---- ----
Total
Segment
Operating
(Loss)
Earnings(1) ($270.6) $163.1 (265.9%) ($103.7) $124.8 (183.1%)
Unallocated
Expense
Corporate
SG&A ($43.5) ($42.7) 1.9% ($181.5) ($155.3) 16.9%
Impact
From
Severe
Weather
Event ($10.7) ($18.1) ($30.3) $146.2
Research
&
Development ($3.0) ($1.0) 200.0% ($8.9) ($4.4) 102.3%
Cost
of
Sales(1)
(2) $7.0 ($3.3) (312.1%) ($39.9) ($19.0) 110.0%
---- -------- ------ -----
Total
(Loss)
Earnings
from
Operations ($320.8) $98.0 (427.3%) ($364.3) $92.3 (494.7%)
Segment
Operating
(Loss)
Earnings
as
%
of
Revenues
Fuselage
Systems (32.4%) 13.8% (4,620) BPS 2.5% 15.1% (1,260) BPS
Propulsion
Systems 4.7% 13.3% (860) BPS 14.9% 4.8% 1,010 BPS
Wing
Systems (16.0%) 5.5% (2,150) BPS (27.6%) (24.4%) (320) BPS
All
Other 11.5% (10.0%) 27.3% 9.0%
---- ------ ---- ---
Total
Segment
Operating
(Loss)
Earnings
as
%
of
Revenues (18.1%) 11.4% (2,950) BPS (1.7%) 2.3% (400) BPS
Total
Operating
(Loss)
Earnings
as
%
of
Revenues (21.5%) 6.9% (2,840) BPS (6.1%) 1.7% (780) BPS
(1) Warranty reserve of $3.3
million and $11.0 million were
reclassified from segment
operating income to
unallocated cost of sales to
conform to current year
presentation for each of the
three and twelve months ended
December 31st, 2012,
respectively.
(2) Unallocated cost of sales
includes $15.4 million in
pension related gains for the
three months and twelve months
ended December 31st, 2013.
Spirit Ship Set Deliveries
(One Ship Set equals One Aircraft)
2012 Spirit AeroSystems Deliveries
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Total 2012
------- ------- ------- ------- ----------
B737 105 105 107 100 417
B747 5 6 7 6 24
B767 7 6 6 6 25
B777 21 21 22 22 86
B787 8 11 9 15 43
--- --- --- --- ---
Total 146 149 151 149 595
A320 Family 112 109 103 113 437
A330/340 25 24 26 22 97
A350 1 - 1 1 3
A380 7 6 3 8 24
--- --- --- --- ---
Total 145 139 133 144 561
Business/Regional Jet 12 19 27 26 84
--- --- --- --- ---
Total Spirit 303 307 311 319 1,240
=== === === === =====
2013 Spirit AeroSystems Deliveries
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Total 2013
------- ------- ------- ------- ----------
B737 106 115 114 107 442
B747 6 4 6 3 19
B767 6 5 3 1 15
B777 24 25 26 24 99
B787 17 14 15 19 65
--- --- --- --- ---
Total 159 163 164 154 640
A320 Family 121 117 111 137 486
A330/340 27 30 26 30 113
A350 2 1 1 4 8
A380 7 10 9 8 34
--- --- --- --- ---
Total 157 158 147 179 641
Business/Regional Jet 20 19 27 31 97
--- --- --- --- ---
Total Spirit 336 340 338 364 1,378
=== === === === =====
Spirit AeroSystems Holdings, Inc.
Condensed Consolidated Statements of Operations
(unaudited)
For the Three Months Ended For the Twelve Months Ended
-------------------------- ---------------------------
December 31, 2013 December 31, 2012 December 31, 2013 December 31, 2012
----------------- ----------------- ----------------- -----------------
($ in millions, except per share data)
Net revenues $1,494.4 $1,425.6 $5,961.0 $5,397.7
Operating costs
and expenses:
Cost of sales 1,743.8 1,250.7 6,059.5 5,245.3
Selling,
general and
administrative 49.6 46.3 200.8 172.2
Impact from
severe weather
event 10.7 18.1 30.3 (146.2)
Research and
development 11.1 12.5 34.7 34.1
---- ---- ---- ----
Total operating
costs and
expenses 1,815.2 1,327.6 6,325.3 5,305.4
Operating
(loss) income (320.8) 98.0 (364.3) 92.3
Interest
expense and
financing fee
amortization (18.1) (20.3) (70.1) (82.9)
Interest income 0.1 0.1 0.3 0.2
Other income
(expense), net 4.5 (1.6) 3.3 1.8
--- ---- --- ---
(Loss) income
before income
taxes and
equity in net
(loss) income
of affiliate (334.3) 76.2 (430.8) 11.4
Income tax
(provision)
benefit (253.4) (15.3) (191.1) 24.1
------ ----- ------ ----
(Loss) income
before equity
in net (loss)
income of
affiliate (587.7) 60.9 (621.9) 35.5
Equity in net
income (loss)
of affiliate 0.8 (0.2) 0.5 (0.7)
--- ---- --- ----
Net (loss)
income $(586.9) $60.7 $(621.4) $34.8
(Loss) earnings
per share
Basic $(4.15) $0.43 $(4.40) $0.24
Shares 141.4 140.9 141.3 140.7
Diluted $(4.15) $0.43 $(4.40) $0.24
Shares 141.4 142.7 141.3 142.7
Spirit AeroSystems Holdings, Inc.
Condensed Consolidated Balance Sheets
(unaudited)
December 31, 2013 December 31, 2012
----------------- -----------------
($ in millions)
Current
assets
Cash and
cash
equivalents $420.7 $440.7
Accounts
receivable,
net 550.8 420.7
Inventory,
net 1,842.6 2,410.8
Other
current
assets 105.6 83.2
----- ----
Total
current
assets 2,919.7 3,355.4
Property,
plant and
equipment,
net 1,803.3 1,698.5
Pension
assets 252.6 78.4
Other assets 109.5 283.0
----- -----
Total
assets $5,085.1 $5,415.3
Current
liabilities
Accounts
payable $753.7 $659.0
Accrued
expenses 220.6 216.3
Current
portion of
long-term
debt 16.8 10.3
Advance
payments,
short-term 133.5 70.7
Deferred
revenue,
short-term 19.8 18.4
Other
current
liabilities 191.2 92.3
----- ----
Total
current
liabilities 1,335.6 1,067.0
Long-term
debt 1,150.5 1,165.9
Advance
payments,
long-term 728.9 833.6
Deferred
revenue and
other
deferred
credits 30.9 30.8
Pension/
OPEB
obligation 69.8 75.6
Other
liabilities 288.4 245.5
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,
120,946,429
and
119,671,298 1.2 1.2
Common
stock,
Class B par
value
$0.01,
150,000,000
shares
authorized,
23,851,694
and
24,025,880 0.2 0.2
Additional
paid-in
capital 1,025.0 1,012.3
Accumulated
other
comprehensive
loss (54.6) (145.2)
Retained
earnings 508.7 1,127.9
----- -------
Total
shareholders'
equity 1,480.5 1,996.4
Noncontrolling
interest 0.5 0.5
--- ---
Total equity 1,481.0 1,996.9
------- -------
Total
liabilities
and
equity $5,085.1 $5,415.3
Spirit AeroSystems Holdings, Inc.
Condensed Consolidated Statements of Cash Flows
(unaudited)
For the Twelve Months Ended
---------------------------
December 31, 2013 December 31, 2012
----------------- -----------------
($ in millions)
Operating
activities
Net
(loss)
income $(621.4) $34.8
Adjustments
to operating
reconcile activities
net
(loss)
income
to
net
cash
provided
by
Depreciation
expense 158.2 151.1
Amortization
expense 9.8 19.7
Accretion
of
customer
supply
agreement 0.6 0.2
Employee
stock
compensation
expense 19.6 15.3
Excess
tax
benefits
from
share-
based
payment
arrangements (0.6) (1.2)
Loss
on
disposition
of
assets 0.1 14.1
Loss
from
discontinued
hedge
accounting
on
interest
rate
swaps - 5.2
(Gain)
on
effectiveness
of
hedge
contracts (2.6) (1.5)
(Gain)
from
foreign
currency
transactions (2.6) (5.6)
Deferred
taxes 202.8 (120.1)
Long-
term
tax
provision (2.5) 3.6
Pension
and
other
post-
retirement
benefits,
net (32.0) (8.9)
Grant
income (7.3) (5.8)
Equity
in
net
loss
of
affiliate (0.5) 0.7
Changes
in
assets
and
liabilities
Accounts
receivable (128.5) (151.1)
Inventory,
net 666.0 228.3
Accounts
payable
and
accrued
liabilities 104.2 114.5
Advance
payments (41.9) 239.6
Deferred
revenue
and
other
deferred
credits (0.2) (12.4)
Other (60.6) 23.9
Net
cash
provided
by
operating
activities 260.6 544.4
----- -----
Investing
activities
Purchase
of
property,
plant
and
equipment (234.2) (236.1)
Purchase
of
property,
plant
and
equipment
-
severe
weather
related
expenses (38.4) (12.9)
Other 4.4 0.2
Net
cash
(used
in)
investing
activities (268.2) (248.8)
------ ------
Financing
activities
Proceeds
from
revolving
credit
facility - 170.0
Payments
on
revolving
credit
facility - (170.0)
Proceeds
from
issuance
of
debt - 547.6
Principal
payments
of
debt (10.4) (571.0)
Debt
issuance
and
financing
costs (4.1) (12.4)
Excess
tax
benefits
from
share-
based
payment
arrangements 0.6 1.2
Net
cash
(used
in)
financing
activities (13.9) (34.6)
----- -----
Effect
of
exchange
rate
changes
on
cash
and
cash
equivalents 1.5 1.9
--- ---
Net
(decrease)
increase
in
cash
and
cash
equivalents
for
the
period (20.0) 262.9
Cash
and
cash
equivalents,
beginning
of
the
period 440.7 177.8
----- -----
Cash
and
cash
equivalents,
end
of
the
period $420.7 $440.7
Management believes that the non-GAAP (Generally Accepted Accounting Principles) measures (indicated by *) used in this report provide investors with important perspectives into the company's ongoing business performance. The company does not intend for the information to be considered in isolation or as a substitute for the related GAAP measure. Other companies may define the measure differently.
Free Cash Flow
4th Quarter Twelve Months Guidance
----------- ------------- --------
2013 2012 2013 2012 2014
---- ---- ---- ---- ----
Cash
Provided
by
Operating
Activities $61.3 $308.9 $260.6 $544.4 $370 - $395
Capital
Expenditures ($81.1) ($78.5) ($272.6) ($249.0) ($230) - ($255)
------ ------ ------- -------
Free Cash
Flow ($19.8) $230.4 ($12.0) $295.4 ~$140
Adjusted Free Cash Flow
4th Quarter Twelve Months Guidance
----------- ------------- --------
2013 2012* 2013 2012* 2014
---- ---- ---- ---- ----
Cash
Provided
by
Operating
Activities $61.3 $308.9 $260.6 $544.4 $370 - $395
Net Severe
Weather
Impact $10.7 ($118.8) $30.3 ($146.2) $5
Net A350 Customer Advances ($246.3)
-------
Adjusted
Cash
Provided
by (used
in)
Operating
Activities $72.0 $190.1 $290.9 $151.9 $375 - $400
Capital
Expenditures ($81.1) ($78.5) ($272.6) ($249.0) ($230) - ($255)
Severe
Weather
Impact $15.0 $5.9 $38.4 $12.9 $5
----- ---- ----- ----- ---
Adjusted
Capital
Expenditures ($66.1) ($72.6) ($234.2) ($236.1) ($225) - ($250)
Adjusted
Cash
Provided
by (used
in)
Operating
Activities $72.0 $190.1 $290.9 $151.9 $375 - $400
Adjusted
Capital
Expenditures ($66.1) ($72.6) ($234.2) ($236.1) ($225) - ($250)
------ ------ ------- ------- --------------
Adjusted
Free Cash
Flow $5.9 $117.5 $56.7 ($84.2) ~$150
*Insurance proceeds for
investment purposes -
severe weather related
expenses are included
in Net Severe Weather
Impact
On the web: http://www.spiritaero.com
SOURCE Spirit AeroSystems Holdings, Inc.
