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8-K - FORM 8-K - Spirit AeroSystems Holdings, Inc. | d79471e8vk.htm |
Exhibit 99
Spirit AeroSystems Holdings, Inc.
3801 S. Oliver
Wichita, KS 67210
www.spiritaero.com
3801 S. Oliver
Wichita, KS 67210
www.spiritaero.com
Spirit AeroSystems Holdings, Inc. Reports Fourth Quarter and Full-Year 2010 Financial Results;
Reports Revenues of $4.172 Billion and Fully Diluted EPS of $1.55 Per Share; Provides 2011
Financial Guidance
| Full-Year 2010 Revenues of $4.172 billion | |
| Full-Year Operating Income of $357 million; Operating Margins of 8.6 percent | |
| Full-Year Fully Diluted Earnings Per Share of $1.55 per share | |
| Cash and Cash Equivalents were $482 million at year-end | |
| Total backlog of approximately $28.3 billion | |
| 2011 Guidance: Revenue between $4.5 $4.7 billion and fully diluted earnings per share between $1.70 and $1.90 per share |
Wichita, Kan., February 10, 2011 Spirit AeroSystems Holdings, Inc. [NYSE: SPR] reported
fourth quarter and full-year 2010 financial results reflecting solid
core operating performance across the company as demand for large
commercial aircraft remains strong.
Spirits
fourth quarter 2010 revenues were $1.071 billion, stable from $1.078 billion for the
same period of 2009, as fewer large commercial aircraft deliveries were offset with non-production
revenues. Operating income was $96 million, compared to $85 million for the same period in 2009.
Net income for the quarter was $62 million, or $0.44 per fully diluted share, compared to $50
million, or $0.36 per fully diluted share, in the same period of 2009. (Table 1)
Table 1. Summary Financial Results (unaudited)
4th Quarter | Twelve Months | |||||||||||||||||||||||
($ in millions, except per share data) | 2010 | 2009 | Change | 2010 | 2009 | Change | ||||||||||||||||||
Revenues |
$ | 1,071 | $ | 1,078 | ~0 | % | $ | 4,172 | $ | 4,079 | 2 | % | ||||||||||||
Operating Income |
$ | 96 | $ | 85 | 13 | % | $ | 357 | $ | 303 | 18 | % | ||||||||||||
Operating Income as a % of Revenues |
9.0 | % | 7.9 | % | 110 | BPS | 8.6 | % | 7.4 | % | 120 | BPS | ||||||||||||
Net Income |
$ | 62 | $ | 50 | 24 | % | $ | 219 | $ | 192 | 14 | % | ||||||||||||
Net Income as a % of Revenues |
5.8 | % | 4.6 | % | 120 | BPS | 5.2 | % | 4.7 | % | 50 | BPS | ||||||||||||
Earnings per Share (Fully Diluted) |
$ | 0.44 | $ | 0.36 | 22 | % | $ | 1.55 | $ | 1.37 | 13 | % | ||||||||||||
Fully Diluted Weighted Avg Share Count |
141.8 | 140.2 | 141.0 | 139.8 |
Page 1
Fourth quarter pre-tax earnings were reduced by approximately ($3) million for the
quarter, or ($0.02) per share, related to the award of stock to eligible union employees as part of
the new ten-year agreement with the United Automobile, Aerospace, & Agricultural Implement Workers
of America (UAW).
Revenue
for the full-year reached $4.172 billion. Operating income for the full-year
increased to $357 million, up 18 percent from the full-year in 2009. Full-year net income
increased 14 percent to $219 million, or $1.55 per fully diluted share, compared to $192 million,
or $1.37 per fully diluted share in 2009.
We continued to execute well on our core programs and made good progress on our development
programs in 2010, said President and Chief Executive Officer Jeff Turner. The operating engine
of the company continues to improve while the global demand for large
commercial aircraft remains strong and
new products are brought to the market.
During the fourth quarter, we delivered over two-hundred forty core products to our customers
as well as making our first delivery of the composite CH-53K helicopter fuselage to the customer.
We also reached agreement with the UAW on a new ten-year labor contract in Oklahoma, and
established a path forward on the 787 program with Boeing, Turner added.
Looking forward, our company is financially strong and in a solid competitive position as our
core product volumes increase and our development programs mature. With a substantial backlog
supporting Spirits future, we are implementing plans to expand capacity for our core business.
With this growth outlook and our focus on performance, we are
positioned to drive long-term
value, Turner concluded.
Spirits backlog at the end of the fourth quarter of 2010 was $28.3
billion. 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 2010,
resulting in a net pre-tax $10 million ($0.05 per share) unfavorable cumulative catch-up adjustment
primarily associated with changes in contract profitability estimates on the 787 program. In
comparison, Spirit recognized a $34 million unfavorable cumulative catch-up adjustment for the
fourth quarter of 2009.
Page 2
Cash flow from operations was a $364 million source of cash for the fourth quarter of
2010, compared to a $197 million source of cash for the fourth quarter of 2009. The current
quarter compared to the same period of 2009 reflects relatively stable working capital while
performance is largely the result of an increase in deferred revenue, partially offset by current
and deferred tax effects. (Table 2)
Table 2. Cash Flow and Liquidity
4th Quarter | Twelve Months | |||||||||||||||
($ in millions) | 2010 | 2009 | 2010 | 2009 | ||||||||||||
Cash Flow from Operations |
$ | 364 | $ | 197 | $ | 125 | ($14 | ) | ||||||||
Purchases of Property, Plant & Equipment |
($105 | ) | ($70 | ) | ($288 | ) | ($228 | ) | ||||||||
December 31, | December 31, | |||||||||||||||
Liquidity |
2010 | 2009 | ||||||||||||||
Cash |
$ | 482 | $ | 369 | ||||||||||||
Total Debt |
$ | 1,197 | $ | 894 |
Cash balances at the end of the year were $482 million, up $113 million from a year ago,
largely reflecting the proceeds generated from the issuance of the $300 million senior unsecured
notes in November of 2010, and receipt of non-recurring contract payments associated with our
development programs, partially offset by continued investment in our new programs. At the end of
the fourth quarter of 2010, the companys $650 million revolving credit facility remained undrawn.
Approximately $19 million of the credit facility is reserved for financial letters of credit. Debt
balances at the end of the fourth quarter were $1,197 million, up $303 million from the end of
2009, primarily reflecting the associated debt for the unsecured notes, issued in fourth quarter of
2010.
During the quarter, the companys credit rating was affirmed by Standard & Poors with a BB
rating while Moodys upgraded its rating to a Ba2.
Page 3
Financial Outlook
Spirit revenue guidance for the full-year 2011 is expected to be between $4.5 and $4.7 billion
based on Boeings 2011 delivery guidance of 485 to 500 aircraft; expected B787 deliveries; expected
Airbus deliveries in 2011 of approximately 520 to 530 aircraft; internal Spirit forecasts for
non-OEM production activity and other customers; and foreign exchange rates consistent with those
in the second half of 2010.
Fully
diluted earnings per share guidance for 2011 is expected to be
between $1.70 and $1.90
per share, reflecting continued growth in core programs and transitioning new programs to initial
production.
Cash flow from operations, less capital expenditures, is expected to be approximately ($250)
million use of cash in the aggregate, with capital expenditures of approximately $325 million.
The effective tax rate for 2011 is forecasted to be between 31 and 32 percent. (Table 3)
Risk to our financial guidance includes, among other factors: 787 delivery volumes; higher
than forecasted non-recurring and recurring costs on our development programs; mid-range business
jet market risks; and our ability to achieve anticipated productivity
and cost improvements; and assumes completion of the 787 contract
amendment.
Table 3. Financial Outlook
2010 Actual | 2011 Guidance | |||||||
Revenues |
$4.2 billion | $4.5 - $4.7 billion | ||||||
Earnings Per Share (Fully Diluted) |
$1.55 | $1.70 - $1.90 | ||||||
Effective Tax Rate |
26.3% | 31% - 32% | ||||||
Cash Flow from Operations |
$125 million | ~$75 million | ||||||
Capital Expenditures |
$288 million | ~$325 million |
Page 4
Cautionary Statement Regarding Forward-Looking Statements
This press release contains forward-looking statements. 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, 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
managements 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 and execution of new programs; our
ability to perform our obligations and manage costs related to our new commercial and business
aircraft development programs and the related recurring production; potential reduction in the
build rates of certain Boeing aircraft including, but not limited to, the B737 program, the B747
program, the B767 program and the B777 program, and build rates of the Airbus A320 and A380
programs, which could be negatively impacted by continuing weakness in the global economy and
economic challenges facing commercial airlines, and by a lack of business and consumer confidence
and the impact of continuing instability in the global financial and credit markets, including, but
not limited to, sovereign debt concerns in Europe; the inability to resolve significant claims with
Boeing related to non-recurring and recurring costs on the B787 program; declining business jet
manufacturing rates and customer cancellations or deferrals as a result of the weakened global
economy; the success and timely execution of key milestones such as certification and delivery of
Boeings new B787 and Airbus new A350 XWB aircraft programs, including receipt of necessary
regulatory approvals and customer adherence to their announced schedules; our ability to enter into
supply arrangements with additional customers and 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; any adverse impact on
Boeings 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 impact of future discount rate changes on pension
obligations; our ability to borrow additional funds or refinance debt; competition from original
equipment manufacturers and other aerostructures suppliers; the effect of governmental laws, such
as U.S. export control laws, the Foreign Corrupt Practices Act, 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 successfully extend or renegotiate our primary collective bargaining
contracts with our labor unions; 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 and the possibility that we may be unable to borrow additional funds or refinance
debt; our exposure under our revolving credit facility to higher interest payments should interest
rates increase substantially; the outcome or impact of ongoing or future litigation 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. You
should review carefully the section captioned Risk
Factors in our 2009 Form 10-K for a more
complete discussion of these and other factors that may affect our business.
Page 5
Appendix
Segment Results
Fuselage Systems
Fuselage
Systems segment revenues for the fourth quarter of 2010 were
$519.1 million, up 2.6
percent over the same period last year, largely driven by additional non-production revenues.
Operating margin for the fourth quarter of 2010 was 13.1 percent as compared to 11.5 percent during
the same period of 2009. During the fourth quarter of 2010, the segment realized an unfavorable
pre-tax $2 million cumulative catch-up adjustment. In comparison, a pre-tax $21 million
unfavorable cumulative catch-up adjustment was realized during the fourth quarter of 2009.
Propulsion Systems
Propulsion
Systems segment revenues for the fourth quarter of 2010 were
$262.8 million, up 1.9
percent over the same period last year, primarily driven by additional non-production revenues and
product mix. Operating margin for the fourth quarter of 2010
was 15.2 percent as compared to
9.8 percent in the fourth quarter of 2009, largely driven by
favorable product mix. During the fourth quarter of 2010, the segment realized an unfavorable pre-tax $5 million
cumulative catch-up adjustment. In comparison, the segment experienced lower aftermarket sales and
a pre-tax $8 million unfavorable cumulative catch-up adjustment during the fourth quarter of 2009.
Wing Systems
Wing
Systems segment revenues for the fourth quarter of 2010 were
$287.7 million, down 7.6
percent over the same period last year, as the previous quarter included additional non-production
revenues. Operating margin for the fourth quarter of 2010 was 9.7 percent as compared to 10.7
percent during the same period of 2009. During the fourth quarter of 2010, the segment realized an
unfavorable pre-tax $3 million cumulative catch-up adjustment. In comparison, a pre-tax $5 million
unfavorable cumulative catch-up adjustment was realized during the fourth quarter of 2009.
Page 6
Table 4. Segment Reporting
(unaudited) | (unaudited) | ||||||||||||||||||||||||
4th Quarter | Twelve Months | ||||||||||||||||||||||||
($ in millions) | 2010 | 2009 | Change | 2010 | 2009 | Change | |||||||||||||||||||
Segment Revenues |
|||||||||||||||||||||||||
Fuselage Systems |
$ | 519.1 | $ | 506.0 | 2.6 | % | $ | 2,035.1 | $ | 2,003.6 | 1.6 | % | |||||||||||||
Propulsion Systems |
$ | 262.8 | $ | 257.9 | 1.9 | % | $ | 1,061.8 | $ | 1,030.0 | 3.1 | % | |||||||||||||
Wing Systems |
$ | 287.7 | $ | 311.5 | (7.6 | %) | $ | 1,067.4 | $ | 1,024.4 | 4.2 | % | |||||||||||||
All Other |
$ | 1.5 | $ | 2.3 | (34.8 | %) | $ | 8.1 | $ | 20.5 | (60.5 | %) | |||||||||||||
Total Segment Revenues |
$ | 1,071.1 | $ | 1,077.7 | (0.6 | %) | $ | 4,172.4 | $ | 4,078.5 | 2.3 | % | |||||||||||||
Segment Earnings from Operations |
|||||||||||||||||||||||||
Fuselage Systems |
$ | 67.9 | $ | 58.2 | 16.7 | % | $ | 292.3 | $ | 287.6 | 1.6 | % | |||||||||||||
Propulsion Systems |
$ | 39.9 | $ | 25.4 | 57.1 | % | $ | 137.5 | $ | 122.6 | 12.2 | % | |||||||||||||
Wing Systems |
$ | 27.9 | $ | 33.4 | (16.5 | %) | $ | 101.0 | $ | 20.7 | 387.9 | % | |||||||||||||
All Other |
$ | 0.5 | ($0.4 | ) | 225.0 | % | ($1.8 | ) | ($1.4 | ) | (28.6 | %) | |||||||||||||
Total Segment Operating Earnings |
$ | 136.2 | $ | 116.6 | 16.8 | % | $ | 529.0 | $ | 429.5 | 23.2 | % | |||||||||||||
Unallocated Corporate SG&A |
($35.6 | ) | ($29.8 | ) | 19.5 | % | ($139.7 | ) | ($122.7 | ) | 13.9 | % | |||||||||||||
Unallocated Research & Development |
($1.4 | ) | ($1.9 | ) | (26.3 | %) | ($3.6 | ) | ($3.5 | ) | 2.9 | % | |||||||||||||
Unallocated Cost of Sales (1)(2) |
($3.3 | ) | $ | 0.0 | NA | ($28.7 | ) | $ | 0.0 | NA | |||||||||||||||
Total Earnings from Operations |
$ | 95.9 | $ | 84.9 | 13.0 | % | $ | 357.0 | $ | 303.3 | 17.7 | % | |||||||||||||
Segment Operating Margins |
|||||||||||||||||||||||||
Fuselage Systems |
13.1 | % | 11.5 | % | 160 | BPS | 14.4 | % | 14.4 | % | 0 | BPS | |||||||||||||
Propulsion Systems |
15.2 | % | 9.8 | % | 540 | BPS | 12.9 | % | 11.9 | % | 100 | BPS | |||||||||||||
Wing Systems |
9.7 | % | 10.7 | % | (100 | ) BPS | 9.5 | % | 2.0 | % | 750 | BPS | |||||||||||||
All Other |
33.3 | % | (17.4 | %) | 5,070 | BPS | (22.2 | %) | (6.8 | %) | (1,540 | ) BPS | |||||||||||||
Total Segment Operating Margins |
12.7 | % | 10.8 | % | 190 | BPS | 12.7 | % | 10.5 | % | 220 | BPS | |||||||||||||
Total Operating Margins |
9.0 | % | 7.9 | % | 110 | BPS | 8.6 | % | 7.4 | % | 120 | BPS |
(1) | Charges in the fourth quarter of 2010 are associated with the grant of shares to represented employees of the UAW in connection with the ratification of a new ten-year labor contract. | |
(2) | Year-to-date charges include the fourth quarter charge related to the grant of shares to UAW represented employees; the third quarter charge for the IAM Early Retirement Incentive; and the second quarter charge related to the grant of shares to represented employees of the IAM in connection with the ratification of their ten-year labor contract. |
Contact information:
Investor Relations: Alan Hermanson (316) 523-7040
Media: Debbie Gann (316) 526-3910
On the web: http://www.spiritaero.com
Page 7
Spirit Ship Set Deliveries
(One Ship Set equals One Aircraft)
(One Ship Set equals One Aircraft)
2009 Spirit AeroSystems Deliveries
1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | Total 2009 | ||||||||||||||||
B737 |
74 | 96 | 93 | 87 | 350 | |||||||||||||||
B747 |
3 | 1 | 3 | 4 | 11 | |||||||||||||||
B767 |
3 | 3 | 3 | 3 | 12 | |||||||||||||||
B777 |
21 | 21 | 21 | 19 | 82 | |||||||||||||||
B787 |
2 | 2 | 2 | 5 | 11 | |||||||||||||||
Total |
103 | 123 | 122 | 118 | 466 | |||||||||||||||
A320 Family |
105 | 101 | 94 | 108 | 408 | |||||||||||||||
A330/340 |
26 | 23 | 28 | 23 | 100 | |||||||||||||||
A380 |
| 2 | 5 | 4 | 11 | |||||||||||||||
Total |
131 | 126 | 127 | 135 | 519 | |||||||||||||||
Hawker 850XP |
18 | 13 | 6 | 7 | 44 | |||||||||||||||
Total Spirit |
252 | 262 | 255 | 260 | 1,029 | |||||||||||||||
2010 Spirit AeroSystems Deliveries
1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | Total 2010 | ||||||||||||||||
B737 |
94 | 96 | 93 | 89 | 372 | |||||||||||||||
B747 |
3 | 1 | 2 | 4 | 10 | |||||||||||||||
B767 |
3 | 4 | 3 | 5 | 15 | |||||||||||||||
B777 |
21 | 18 | 14 | 14 | 67 | |||||||||||||||
B787 |
5 | 4 | 4 | 3 | 16 | |||||||||||||||
Total |
126 | 123 | 116 | 115 | 480 | |||||||||||||||
A320 Family |
102 | 95 | 75 | 96 | 368 | |||||||||||||||
A330/340 |
25 | 23 | 5 | 19 | 72 | |||||||||||||||
A380 |
1 | 5 | 7 | 5 | 18 | |||||||||||||||
Total |
128 | 123 | 87 | 120 | 458 | |||||||||||||||
Hawker 850XP |
5 | 4 | 4 | 6 | 19 | |||||||||||||||
Total Spirit |
259 | 250 | 207 | 241 | 957 | |||||||||||||||
Page 8
Spirit AeroSystems Holdings, Inc.
Condensed Consolidated Statements of Operations
(unaudited)
Condensed Consolidated Statements of Operations
(unaudited)
For the
Three Months Ended |
For the
Twelve Months Ended |
|||||||||||||||
December 31, 2010 | December 31, 2009 | December 31, 2010 | December 31, 2009 | |||||||||||||
($ in millions, except per share data) | ||||||||||||||||
Net revenues |
$ | 1,071.1 | $ | 1,077.7 | $ | 4,172.4 | $ | 4,078.5 | ||||||||
Operating costs and expenses: |
||||||||||||||||
Cost of sales |
918.7 | 944.2 | 3,607.9 | 3,581.4 | ||||||||||||
Selling, general and administrative |
40.1 | 33.5 | 156.0 | 137.1 | ||||||||||||
Research and development |
16.4 | 15.1 | 51.5 | 56.7 | ||||||||||||
Total operating costs and expenses |
975.2 | 992.8 | 3,815.4 | 3,775.2 | ||||||||||||
Operating income |
95.9 | 84.9 | 357.0 | 303.3 | ||||||||||||
Interest expense and financing fee amortization |
(18.5 | ) | (14.5 | ) | (59.1 | ) | (43.6 | ) | ||||||||
Interest income |
0.1 | 0.8 | 0.3 | 7.0 | ||||||||||||
Other income (expense), net |
(0.1 | ) | 0.9 | (0.4 | ) | 6.1 | ||||||||||
Income before income taxes and equity in net loss of affiliate |
77.4 | 72.1 | 297.8 | 272.8 | ||||||||||||
Income tax provision |
(15.4 | ) | (22.1 | ) | (78.2 | ) | (80.9 | ) | ||||||||
Income before equity in net loss of affiliate |
62.0 | 50.0 | 219.6 | 191.9 | ||||||||||||
Equity in net loss of affiliate |
(0.1 | ) | | (0.7 | ) | (0.2 | ) | |||||||||
Net income |
$ | 61.9 | $ | 50.0 | $ | 218.9 | $ | 191.7 | ||||||||
Earnings per share |
||||||||||||||||
Basic |
$ | 0.44 | $ | 0.36 | $ | 1.56 | $ | 1.39 | ||||||||
Shares |
138.4 | 137.2 | 137.9 | 138.3 | ||||||||||||
Diluted |
$ | 0.44 | $ | 0.36 | $ | 1.55 | $ | 1.37 | ||||||||
Shares |
141.8 | 140.2 | 141.0 | 139.8 |
Page 9
Spirit AeroSystems Holdings, Inc.
Condensed Consolidated Balance Sheets
(unaudited)
Condensed Consolidated Balance Sheets
(unaudited)
December 31, | December 31, | |||||||
2010 | 2009 | |||||||
($ in millions) | ||||||||
Current assets |
||||||||
Cash and cash equivalents |
$ | 481.6 | $ | 369.0 | ||||
Accounts receivable, net |
200.2 | 160.4 | ||||||
Inventory, net |
2,507.9 | 2,206.9 | ||||||
Other current assets |
105.0 | 116.6 | ||||||
Total current assets |
3,294.7 | 2,852.9 | ||||||
Property, plant and equipment, net |
1,470.0 | 1,279.3 | ||||||
Pension assets |
172.4 | 171.2 | ||||||
Other assets |
164.9 | 170.4 | ||||||
Total assets |
$ | 5,102.0 | $ | 4,473.8 | ||||
Current liabilities |
||||||||
Accounts payable |
$ | 443.5 | $ | 441.3 | ||||
Accrued expenses |
220.3 | 165.5 | ||||||
Current portion of long-term debt |
9.5 | 9.1 | ||||||
Advance payments, short-term |
169.4 | 237.4 | ||||||
Deferred revenue, short-term |
302.6 | 107.1 | ||||||
Other current liabilities |
19.5 | 21.8 | ||||||
Total current liabilities |
1,164.8 | 982.2 | ||||||
Long-term debt |
1,187.3 | 884.7 | ||||||
Advance payments, long-term |
655.2 | 727.5 | ||||||
Deferred revenue and other deferred credits |
29.0 | 46.0 | ||||||
Pension/OPEB obligation |
72.5 | 62.6 | ||||||
Other liabilities |
182.3 | 197.0 | ||||||
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,
107,201,314 and 105,064,561 issued, respectively |
1.1 | 1.0 | ||||||
Common stock, Class B par value $0.01, 150,000,000 shares authorized,
34,897,388 and 35,669,740 shares issued, respectively |
0.3 | 0.4 | ||||||
Additional paid-in capital |
983.6 | 949.8 | ||||||
Accumulated other comprehensive loss |
(75.3 | ) | (59.7 | ) | ||||
Retained earnings |
900.7 | 681.8 | ||||||
Total shareholders equity |
1,810.4 | 1,573.3 | ||||||
Noncontrolling interest |
0.5 | 0.5 | ||||||
Total equity |
1,810.9 | 1,573.8 | ||||||
Total liabilities and equity |
$ | 5,102.0 | $ | 4,473.8 | ||||
Page 10
Spirit AeroSystems Holdings, Inc.
Condensed Consolidated Statements of Cash Flows
(unaudited)
Condensed Consolidated Statements of Cash Flows
(unaudited)
For the Twelve Months Ended | ||||||||
December 31, 2010 | December 31, 2009 | |||||||
($ in millions) | ||||||||
Operating activities |
||||||||
Net income |
$ | 218.9 | $ | 191.7 | ||||
Adjustments to reconcile net income to net cash provided by (used in) operating
activities |
||||||||
Depreciation expense |
115.3 | 123.0 | ||||||
Amortization expense |
12.7 | 11.0 | ||||||
Accretion of long-term receivable |
| (6.5 | ) | |||||
Employee stock compensation expense |
28.8 | 10.1 | ||||||
Excess tax benefits from share-based payment arrangements |
(5.0 | ) | | |||||
(Gain) Loss from foreign currency transactions |
4.8 | (4.5 | ) | |||||
Loss on disposition of assets |
0.7 | 0.1 | ||||||
Deferred taxes |
48.6 | 28.7 | ||||||
Long-term tax benefit |
(9.7 | ) | | |||||
Pension and other post-retirement benefits, net |
(8.9 | ) | 2.2 | |||||
Grant income |
(3.1 | ) | (1.9 | ) | ||||
Equity in net loss of affiliate |
0.7 | 0.2 | ||||||
Changes in assets and liabilities |
||||||||
Accounts receivable |
(41.6 | ) | (8.2 | ) | ||||
Inventory, net |
(300.3 | ) | (320.7 | ) | ||||
Accounts payable and accrued liabilities |
26.8 | 125.7 | ||||||
Advance payments |
(140.3 | ) | (97.5 | ) | ||||
Deferred revenue and other deferred credits |
181.8 | (14.8 | ) | |||||
Other |
(5.1 | ) | (52.5 | ) | ||||
Net cash
provided by (used in) operating activities |
125.1 | (13.9 | ) | |||||
Investing activities |
||||||||
Purchase of property, plant and equipment |
(288.1 | ) | (228.2 | ) | ||||
Long-term receivable |
| 115.4 | ||||||
Other |
(0.3 | ) | 0.4 | |||||
Net cash (used in) investing activities |
(288.4 | ) | (112.4 | ) | ||||
Financing activities |
||||||||
Proceeds from revolving credit facility |
150.0 | 300.0 | ||||||
Payments on revolving credit facility |
(150.0 | ) | (300.0 | ) | ||||
Proceeds from issuance of debt |
| 6.9 | ||||||
Proceeds from issuance of bonds |
300.0 | 293.4 | ||||||
Proceeds from government grants |
| 0.7 | ||||||
Principal payments of debt |
(9.6 | ) | (7.6 | ) | ||||
Debt issuance and financing costs |
(18.0 | ) | (17.3 | ) | ||||
Excess tax benefits from share-based payment arrangements |
5.0 | | ||||||
Net cash provided by financing activities |
277.4 | 276.1 | ||||||
Effect of exchange rate changes on cash and cash equivalents |
(1.5 | ) | 2.7 | |||||
Net increase in cash and cash equivalents for the period |
112.6 | 152.5 | ||||||
Cash and cash equivalents, beginning of the period |
369.0 | 216.5 | ||||||
Cash and cash equivalents, end of the period |
$ | 481.6 | $ | 369.0 | ||||
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