UNITED
STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10–Q
ý QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarter Ended September 30, 2004
or
o Transition
Report Pursuant to Section 13 or 15 (d) of the
Securities Exchange Act of 1934
For the transition period from to
Commission File Number 1-8472
Hexcel Corporation
(Exact name of registrant as specified in its charter)
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Delaware |
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94-1109521 |
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(State of Incorporation) |
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(I.R.S. Employer Identification No.) |
Two Stamford Plaza
281 Tresser Boulevard
Stamford, Connecticut 06901-3238
(Address of principal executive offices and zip code)
Registrant’s telephone number, including area code: (203) 969-0666
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý No o
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). Yes ý No o
Indicate the number of shares outstanding of each of the registrant’s classes of common stock, as of the latest practicable date.
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Class |
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Outstanding at November 3, 2004 |
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COMMON STOCK |
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39,959,791 |
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HEXCEL CORPORATION AND SUBSIDIARIES
INDEX
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PAGE |
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• Condensed Consolidated Balance Sheets — September 30, 2004 and December 31, 2003 |
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Management’s Discussion and Analysis of Financial Condition and Results of Operations |
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1
ITEM 1. Condensed Consolidated Financial Statements (Unaudited)
Hexcel Corporation and Subsidiaries
Condensed Consolidated Balance Sheets
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Unaudited |
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(In millions, except per share data) |
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September 30, |
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December 31, |
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Assets |
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Current assets: |
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Cash and cash equivalents |
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$ |
51.5 |
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$ |
41.7 |
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Accounts receivable, net |
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146.1 |
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126.2 |
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Inventories, net |
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144.9 |
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120.5 |
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Prepaid expenses and other current assets |
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18.0 |
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16.2 |
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Total current assets |
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360.5 |
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304.6 |
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Property, plant and equipment |
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697.7 |
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688.0 |
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Less accumulated depreciation |
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(425.7 |
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(394.1 |
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Net property, plant and equipment |
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272.0 |
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293.9 |
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Goodwill |
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76.7 |
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76.9 |
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Investments in affiliated companies |
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6.7 |
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7.4 |
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Other assets |
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34.7 |
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39.9 |
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Total assets |
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$ |
750.6 |
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$ |
722.7 |
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Liabilities and Stockholders’ Equity (Deficit) |
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Current liabilities: |
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Notes payable and current maturities of capital lease obligations |
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$ |
3.8 |
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$ |
2.1 |
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Accounts payable |
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81.2 |
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64.1 |
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Accrued liabilities |
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115.1 |
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97.7 |
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Total current liabilities |
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200.1 |
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163.9 |
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Long-term notes payable and capital lease obligations |
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453.6 |
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481.3 |
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Other non-current liabilities |
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64.6 |
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64.9 |
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Total liabilities |
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718.3 |
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710.1 |
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Mandatorily redeemable convertible preferred stock, 0.125 shares of series A and 0.125 shares of series B authorized, issued and outstanding at September 30, 2004 and December 31, 2003 |
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115.4 |
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106.0 |
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Stockholders’ equity (deficit): |
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Preferred stock, no par value, 20.0 shares authorized, no shares issued or outstanding at September 30, 2004 and at December 31, 2003 |
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— |
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— |
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Common stock, $0.01 par value, 200.0 shares of stock authorized, and 41.0 shares issued at September 30, 2004 and 40.0 shares issued at December 31, 2003 |
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0.4 |
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0.4 |
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Additional paid-in capital |
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299.9 |
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303.5 |
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Accumulated deficit |
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(371.4 |
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(392.6 |
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Accumulated other comprehensive income |
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2.0 |
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8.8 |
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(69.1) |
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(79.9 |
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Less – Treasury stock, at cost, 1.4 shares at September 30, 2004 and 1.3 shares at December 31, 2003 |
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(14.0 |
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(13.5 |
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Total stockholders’ equity (deficit) |
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(83.1 |
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(93.4 |
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Total liabilities and stockholders’ equity (deficit) |
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$ |
750.6 |
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$ |
722.7 |
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The accompanying notes are an integral part of these condensed consolidated financial statements.
2
Hexcel Corporation and Subsidiaries
Condensed Consolidated Statements of Operations
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Unaudited |
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Quarter Ended |
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Nine Months Ended |
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(In millions, except per share data) |
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2004 |
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2003 |
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2004 |
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2003 |
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Net sales |
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$ |
263.1 |
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$ |
212.8 |
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$ |
798.1 |
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$ |
675.5 |
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Cost of sales |
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208.2 |
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173.2 |
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627.1 |
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542.3 |
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Gross margin |
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54.9 |
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39.6 |
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171.0 |
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133.2 |
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Selling, general and administrative expenses |
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28.9 |
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22.9 |
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82.6 |
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70.5 |
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Research and technology expenses |
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5.3 |
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