Spirit AeroSystems Holdings, Inc. Reports Third Quarter 2010 Financial
Results; Reports Revenues of $1.002 Billion and Fully Diluted EPS of $0.33
Per Share
- Third Quarter 2010 Revenues of $1.002 billion
- Operating Income of $82 million; Operating Margins of 8.2 percent
- Fully Diluted Earnings Per Share of $0.33 per share
- Cash and Cash Equivalents were $66 million
- Total backlog of approximately $28.2 billion
</pre>
<p><span class="xn-location">WICHITA</span>, Kan., <span class="xn-chron">Nov. 2, 2010</span> /CNW/ -- Spirit AeroSystems Holdings, Inc. (NYSE: SPR) reported third quarter 2010 financial results reflecting solid core operating performance with lower delivery volumes.</p>
<p/>
<p>Spirit's third quarter 2010 revenues were <span class="xn-money">$1.002 billion</span>, down from <span class="xn-money">$1.054 billion</span> for the same period of 2009, largely driven by fewer large commercial aircraft deliveries and lower non-production revenues. Operating income was <span class="xn-money">$82 million</span>, compared to <span class="xn-money">$131 million</span> for the same period in 2009, as the previous period realized higher contract accounting block profitability, additional revenue volumes, and lower period expenses while the current period was impacted by the International Association of Machinists and Aerospace Workers (IAM) Early Retirement Incentive and an unfavorable cumulative catch-up adjustment on the Sikorsky CH-53K program. Net income for the quarter was <span class="xn-money">$46 million</span>, or <span class="xn-money">$0.33</span> per fully diluted share, compared to <span class="xn-money">$87 million</span>, or <span class="xn-money">$0.62</span> per fully diluted share, in the same period of 2009, as the current quarter was also impacted by a higher tax rate. (Table 1)</p>
<p/>
<p> </p>
<p>Table 1. Summary Financial Results (unaudited)</p>
<p> </p>
<pre>
3rd Quarter Nine Months
----------- -----------
($ in millions,
except per share
data) 2010 2009 Change 2010 2009 Change
----------------- ---- ---- ------ ---- ---- ------
</pre>
<p> </p>
<pre>
Revenues $1,002 $1,054 (5%) $3,101 $3,001 3%
Operating Income $82 $131 (37%) $261 $218 20%
Operating Income as (420) 110
a % of Revenues 8.2% 12.4% BPS 8.4% 7.3% BPS
Net Income $46 $87 (47%) $157 $142 11%
Net Income as a % (370)
of Revenues 4.6% 8.3% BPS 5.1% 4.7% 40 BPS
Earnings per Share
(Fully Diluted) $0.33 $0.62 (47%) $1.11 $1.01 10%
Fully Diluted
Weighted Avg Share
Count 141.5 140.2 140.9 140.0
------------------- ----- ----- ----- -----
</pre>
<p>Third quarter earnings include a pre-tax (<span class="xn-money">$7</span>) million, or (<span class="xn-money">$0.03</span>) per share, early retirement incentive as part of the recent 10-year agreement with Spirit's largest labor union, the International Association of Machinists and Aerospace Workers (IAM) and a pre-tax (<span class="xn-money">$6</span>) million, or (<span class="xn-money">$0.03</span>) per share, unfavorable cumulative catch-up adjustment associated with the Sikorsky CH-53K program as a result of additional costs required to support test hardware schedules.</p>
<p>"Our core businesses continue to perform well and the market for large commercial airplanes remains strong," said President and Chief Executive Officer <span class="xn-person">Jeff Turner</span>. "We are making plans to increase core business production rates while we continue to implement our long-term diversification strategy by developing new products. Our team's development activities are progressing, as we continue to navigate through the near-term challenges remaining in the test phases. Looking to the longer-term, we look forward to the contributions these new programs will provide for Spirit," Turner added.</p>
<p>"As for the long-term outlook of the commercial aerospace market, demand for our core products continues to strengthen. While we remain cautious about certain segments of the business jet market, we are confident that we have the right team in place, designing and producing the right products, targeting the right markets, and making the right investments to ensure the long-term value that our customers, shareholders and employees expect," Turner concluded.</p>
<p>Spirit's backlog at the end of the third quarter of 2010 was <span class="xn-money">$28.2 billion</span>, up approximately four percent, as the commercial aerospace market outlook, particularly single aisle demand, continues to improve. 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.</p>
<p>Spirit updated its contract profitability estimates during the third quarter of 2010, resulting in a net pre-tax <span class="xn-money">$4 million</span> (<span class="xn-money">$0.02</span> per share) unfavorable cumulative catch-up adjustment. This result was comprised of a pre-tax (<span class="xn-money">$6</span>) million, or (<span class="xn-money">$0.03</span>) per share, unfavorable cumulative catch-up adjustment on the Sikorsky CH-53K program which was partially off-set by ~$2 million of favorable cumulative catch-up adjustments. In comparison, Spirit recognized a <span class="xn-money">$2 million</span> favorable cumulative catch-up adjustment for the third quarter of 2009.</p>
<p/>
<p>Cash flow from operations was a (<span class="xn-money">$122</span>) million use of cash for the third quarter of 2010, compared to a <span class="xn-money">$5 million</span> source of cash for the third quarter of 2009. The current quarter performance compared to the same period of 2009 is largely the result of lower profitability in the current accounting contract blocks combined with lower revenue volumes; net unfavorable accounts payable and accounts receivable results, which were primarily the result of timing; and, increased liquidation of 787 advance payments as the program ramps-up production; partially offset by the slowing of new program inventory growth. (Table 2)</p>
<p/>
<p> </p>
<p>Table 2. Cash Flow and Liquidity</p>
<p> </p>
<pre>
3rd
Quarter Nine Months
------- -----------
($ in millions) 2010 2009 2010 2009
--------------- ---- ---- ---- ----
</pre>
<p> </p>
<pre>
Cash Flow from Operations ($122) $5 ($239) ($211)
Purchases of Property, Plant &
Equipment ($52) ($51) ($183) ($158)
</pre>
<p> </p>
<pre>
September December
30, 31,
Liquidity 2010 2009
---- ----
</pre>
<p> </p>
<pre>
Cash $66 $369
Total Debt $1,023 $894
---------- ------ ----
</pre>
<p>Cash balances at the end of the third quarter 2010 were <span class="xn-money">$66 million</span> and debt balances were <span class="xn-money">$1,023 million</span>. During the quarter, the company utilized its credit-line as it continued to invest in development programs. Spirit ended the quarter with <span class="xn-money">$125 million</span> borrowed from its revolving credit facility while <span class="xn-money">$284 million</span> remained unused. Approximately <span class="xn-money">$19 million</span> of the credit facility is reserved for financial letters of credit.</p>
<p/>
<p>On <span class="xn-chron">October 15, 2010</span>, the company entered into an amendment to its credit agreement that, among other things, increased the size of its revolving credit facility from <span class="xn-money">$409 million to $650 million</span> and extended the maturity dates for a portion of its revolving credit facility and term loan to <span class="xn-chron">September 30, 2014</span> and <span class="xn-chron">September 30, 2016</span>, respectively. During these transactions, the company's credit rating was affirmed by Standard & Poor's with a BB rating while Moody's upgraded its rating to a Ba2.</p>
<pre>
2010 Outlook
</pre>
<p>Spirit revenue guidance for the full-year 2010 has been updated to reflect movement of certain production units and non-production contract settlements out of 2010. Revenues are now expected to be between <span class="xn-money">$4.0</span> and <span class="xn-money">$4.1 billion</span> based on Boeing's 2010 delivery guidance of approximately 460 aircraft; anticipated B787 deliveries; expected Airbus deliveries in 2010 of approximately 500 aircraft; internal Spirit forecasts for non-OEM production activity and other customers; and foreign exchange rates consistent with those in the third quarter of 2010.</p>
<p/>
<p>Fully diluted earnings per share guidance for 2010 has also been updated and is now expected to be between <span class="xn-money">$1.50</span> and <span class="xn-money">$1.60</span> per share, as the impact of the IAM Early Retirement Program and Sikorsky cumulative catch-up adjustment moves us to the mid to lower end of the previous EPS guidance range.</p>
<p/>
<p>Cash flow from operations, less capital expenditures, remains unchanged and is expected to be approximately (<span class="xn-money">$250</span>) million use of cash in the aggregate, with capital expenditures of approximately <span class="xn-money">$325 million</span>.</p>
<p/>
<p>The effective tax rate, forecasted to be approximately 27 percent for 2010, remains unchanged. This assumes the benefit attributable to extending the U.S. research tax credit. (Table 3)</p>
<p/>
<p>Risk to our financial guidance includes, among other factors: higher than forecasted non-recurring and recurring costs on our development programs; mid-range business jet market risks; our ability to achieve anticipated productivity and cost improvements; and the ability to resolve significant 787 program claims with Boeing.</p>
<p/>
<p> </p>
<p> </p>
<pre>
2009 2010
Table 3. Financial Outlook Actual Guidance
--------------------------- ------ --------
</pre>
<p> </p>
<p> </p>
<p>Revenues <span class="xn-money">$4.1 billion</span> <span class="xn-money">$4.0 - $4.1 billion</span></p>
<p> </p>
<pre>
Earnings Per Share (Fully
Diluted) $1.37 $1.50 - $1.60
</pre>
<p> </p>
<p>Effective Tax Rate 29.7% ~27%*</p>
<p> </p>
<pre>
($14) ~$75
Cash Flow from Operations million million
</pre>
<p> </p>
<pre>
~$325
Capital Expenditures $228 million million
</pre>
<p> </p>
<pre>
Customer Reimbursement $115 million N/A**
---------------------- ------------- -----
</pre>
<p>* Effective tax rate guidance, among other factors, assumes the benefit attributable to extending the U.S. research tax credit (Assumes ~2.5% benefit).</p>
<p/>
<p>** Although calculations for years through 2009 included customer reimbursements, these payments concluded in <span class="xn-chron">December 2009</span>.</p>
<pre>
Cautionary Statement Regarding Forward-Looking Statements
</pre>
<p>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 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 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 <span class="xn-location">Europe</span>; 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 Boeing's 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 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 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.</p>
<pre>
Appendix
Segment Results
Fuselage Systems
</pre>
<p>Fuselage Systems segment revenues for the third quarter of 2010 were <span class="xn-money">$484.6 million</span>, down 7.9 percent over the same period last year, largely driven by lower twin-aisle production volumes and lower non-production revenues. Operating margin for the third quarter of 2010 was 13.9 percent as compared to 18.1 percent during the same period of 2009. During the third quarter of 2010, the segment realized an unfavorable pre-tax <span class="xn-money">$4 million</span> cumulative catch-up adjustment. In comparison, a pre-tax <span class="xn-money">$4 million</span> favorable cumulative catch-up adjustment was realized during the third quarter of 2009.</p>
<pre>
Propulsion Systems
</pre>
<p>Propulsion Systems segment revenues for the third quarter of 2010 were <span class="xn-money">$252.6 million</span>, down 5.1 percent over the same period last year, primarily driven by lower twin-aisle production volumes. Operating margin for the third quarter of 2010 was 12.1 percent as compared to 13.3 percent in the third quarter of 2009.</p>
<pre>
Wing Systems
</pre>
<p>Wing Systems segment revenues for the third quarter of 2010 were <span class="xn-money">$263.9 million</span>, up 2.6 percent over the same period last year, as the current quarter includes additional revenues related to an assertion settlement for production units, partially offset by a 2010 customer delivery re-phasing by Spirit <span class="xn-location">Europe</span> which reduced third quarter A320 deliveries. Operating margin for the third quarter of 2010 was 9.8 percent as compared to 10.3 percent during the same period of 2009.</p>
<p/>
<p> </p>
<p> </p>
<pre>
Table 4. Segment
Reporting (unaudited)
3rd Quarter
-----------
($ in millions) 2010 2009 Change
--------------- ---- ---- ------
</pre>
<p> </p>
<pre>
Segment Revenues
Fuselage Systems $484.6 $525.9 (7.9%)
Propulsion Systems $252.6 $266.2 (5.1%)
Wing Systems $263.9 $257.3 2.6%
All Other $0.9 $4.4 (79.5%)
---- ---- -------
Total Segment Revenues $1,002.0 $1,053.8 (4.9%)
</pre>
<p> </p>
<pre>
Segment Earnings from
Operations
Fuselage Systems $67.6 $95.2 (29.0%)
Propulsion Systems $30.6 $35.3 (13.3%)
Wing Systems $25.9 $26.6 (2.6%)
All Other ($0.1) $1.0 (110.0%)
----- ---- --------
Total Segment Operating
Earnings $124.0 $158.1 (21.6%)
</pre>
<p> </p>
<pre>
Unallocated Corporate
SG&A ($34.4) ($26.7) (28.8%)
Unallocated Research &
Development ($0.7) ($0.4) (75.0%)
Unallocated Cost of Sales
(1)(2) ($6.5) $0.0 NA
----- ---- ---
Total Earnings from
Operations $82.4 $131.0 (37.1%)
</pre>
<p> </p>
<pre>
Segment Operating Margins
Fuselage Systems 13.9% 18.1% (420) BPS
Propulsion Systems 12.1% 13.3% (120) BPS
Wing Systems 9.8% 10.3% (50) BPS
All Other (11.1%) 22.7% (3,380) BPS
------- ---- -----------
Total Segment Operating
Margins 12.4% 15.0% (260) BPS
</pre>
<p> </p>
<pre>
Total Operating Margins 8.2% 12.4% (420) BPS
----------------------- --- ---- ---------
</pre>
<p> </p>
<p> </p>
<pre>
Table 4. Segment
Reporting (unaudited)
Nine Months
-----------
($ in millions) 2010 2009 Change
--------------- ---- ---- ------
</pre>
<p> </p>
<pre>
Segment Revenues
Fuselage Systems $1,516.0 $1,497.6 1.2%
Propulsion Systems $799.0 $772.1 3.5%
Wing Systems $779.7 $712.9 9.4%
All Other $6.6 $18.2 (63.7%)
---- ----- -------
Total Segment Revenues $3,101.3 $3,000.8 3.3%
</pre>
<p> </p>
<pre>
Segment Earnings from
Operations
Fuselage Systems $224.4 $229.4 (2.2%)
Propulsion Systems $97.6 $97.2 0.4%
Wing Systems $73.1 ($12.7) 675.6%
All Other ($2.3) ($1.0) (130.0%)
----- ----- --------
Total Segment Operating
Earnings $392.8 $312.9 25.5%
</pre>
<p> </p>
<pre>
Unallocated Corporate
SG&A ($104.1) ($92.9) (12.1%)
Unallocated Research &
Development ($2.2) ($1.6) (37.5%)
Unallocated Cost of Sales
(1)(2) ($25.4) $0.0 NA
------ ---- ---
Total Earnings from
Operations $261.1 $218.4 19.6%
</pre>
<p> </p>
<pre>
Segment Operating Margins
Fuselage Systems 14.8% 15.3% (50) BPS
Propulsion Systems 12.2% 12.6% (40) BPS
Wing Systems 9.4% (1.8%) 1,120 BPS
All Other (34.8%) (5.5%) (2,930) BPS
------- ------ -----------
Total Segment Operating
Margins 12.7% 10.4% 230 BPS
</pre>
<p> </p>
<pre>
Total Operating Margins 8.4% 7.3% 110 BPS
----------------------- --- --- --------
1. Charges in the third quarter of 2010 are associated with the IAM Early
Retirement Incentive for represented employees.
2. Year-to-date charges include both the IAM Early Retirement Incentive
and
the second quarter of 2010 charge related to the grant of shares to
represented employees of the IAM in connection with the ratification of
a new ten-year labor contract on June 25, 2010.
</pre>
<p> </p>
<pre>
Spirit Ship Set Deliveries
(One Ship Set equals One Aircraft)
</pre>
<p> </p>
<p> 2009 Spirit AeroSystems Deliveries</p>
<p> </p>
<pre>
1st 2nd 3rd 4th Total
Qtr Qtr Qtr Qtr 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
</pre>
<p> </p>
<pre>
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
</pre>
<p> </p>
<pre>
Hawker
850XP 18 13 6 7 44
--- --- --- --- ---
</pre>
<p> </p>
<pre>
Total
Spirit 252 262 255 260 1,029
=== === === === =====
</pre>
<p> </p>
<p> </p>
<p> 2010 Spirit AeroSystems Deliveries</p>
<p> </p>
<pre>
1st 2nd 3rd 4th YTD
Qtr Qtr Qtr Qtr 2010
---- ---- ---- ---- ----
B737 94 96 93 283
B747 3 1 2 6
B767 3 4 3 10
B777 21 18 14 53
B787 5 4 4 13
--- --- --- ---
Total 126 123 116 365
</pre>
<p> </p>
<pre>
A320
Family 102 95 75 272
A330/340 25 23 5 53
A380 1 5 7 13
--- --- --- ---
Total 128 123 87 338
</pre>
<p> </p>
<pre>
Hawker
850XP 5 4 4 13
--- --- --- ---
</pre>
<p> </p>
<pre>
Total
Spirit 259 250 207 716
=== === === ===
</pre>
<p> </p>
<pre>
Spirit AeroSystems Holdings, Inc.
Condensed Consolidated Statements of Operations
(unaudited)
</pre>
<p> </p>
<pre>
For the Three Months Ended
--------------------------
September 30, October 1,
2010 2009
-------------- -----------
($ in millions, except per share data)
</pre>
<p> </p>
<pre>
Net revenues $1,002.0 $1,053.8
Operating costs and
expenses:
Cost of sales 868.5 878.3
Selling, general and
administrative 38.5 30.5
Research and development 12.6 14.0
---- ----
Total operating costs and
expenses 919.6 922.8
Operating income 82.4 131.0
Interest expense and
financing fee
amortization (12.8) (10.2)
Interest income - 1.6
Other income (expense),
net 2.5 (0.5)
--- ----
Income before income taxes
and equity in net (loss)
of affiliate 72.1 121.9
Income tax provision (25.4) (34.4)
----- -----
Income before equity in
net (loss) of affiliate 46.7 87.5
Equity in net (loss) of
affiliate (0.3) (0.2)
---- ----
Net income $46.4 $87.3
===== =====
</pre>
<p> </p>
<pre>
Earnings per share
Basic $0.33 $0.63
Shares 138.3 138.6
</pre>
<p> </p>
<pre>
Diluted $0.33 $0.62
Shares 141.5 140.2
</pre>
<p> </p>
<p> </p>
<pre>
For the Nine Months Ended
-------------------------
September 30, October 1,
2010 2009
-------------- -----------
($ in millions, except per share data)
</pre>
<p> </p>
<pre>
Net revenues $3,101.3 $3,000.8
Operating costs and
expenses:
Cost of sales 2,689.2 2,637.2
Selling, general and
administrative 115.9 103.6
Research and development 35.1 41.6
---- ----
Total operating costs and
expenses 2,840.2 2,782.4
Operating income 261.1 218.4
Interest expense and
financing fee
amortization (40.6) (29.1)
Interest income 0.2 6.2
Other income (expense),
net (0.3) 5.2
---- ---
Income before income taxes
and equity in net (loss)
of affiliate 220.4 200.7
Income tax provision (62.8) (58.8)
----- -----
Income before equity in
net (loss) of affiliate 157.6 141.9
Equity in net (loss) of
affiliate (0.6) (0.2)
---- ----
Net income $157.0 $141.7
====== ======
</pre>
<p> </p>
<pre>
Earnings per share
Basic $1.13 $1.03
Shares 137.7 138.2
</pre>
<p> </p>
<pre>
Diluted $1.11 $1.01
Shares 140.9 140.0
</pre>
<p> </p>
<pre>
Spirit AeroSystems Holdings, Inc.
Condensed Consolidated Balance Sheets
(unaudited)
</pre>
<p> </p>
<pre>
September December
30, 2010 31, 2009
--------- --------
($ in millions)
Current assets
Cash and cash equivalents $66.3 $369.0
Accounts receivable, net 290.0 160.4
Inventory, net 2,479.2 2,206.9
Other current assets 70.0 116.6
---- -----
Total current assets 2,905.5 2,852.9
Property, plant and
equipment, net 1,391.6 1,279.3
Pension assets 188.6 171.2
Other assets 162.2 170.4
----- -----
Total assets $4,647.9 $4,473.8
======== ========
Current liabilities
Accounts payable $425.9 $441.3
Accrued expenses 206.3 165.5
Current portion of long-
term debt 7.9 9.1
Advance payments, short-
term 182.8 237.4
Deferred revenue, short-
term 73.2 107.1
Other current liabilities 20.8 21.8
---- ----
Total current liabilities 916.9 982.2
Long-term debt 1,015.5 884.7
Advance payments, long-term 665.5 727.5
Deferred revenue and other
deferred credits 39.7 46.0
Pension/OPEB obligation 67.6 62.6
Other liabilities 181.8 197.0
Shareholders' 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,
107,120,392 and
105,064,561 issued,
respectively 1.1 1.0
Common stock, Class B par
value $0.01, 150,000,000
shares authorized,
34,938,808 and 35,669,740
shares issued,
respectively 0.3 0.4
Additional paid-in capital 978.1 949.8
Accumulated other
comprehensive loss (57.9) (59.7)
Retained earnings 838.8 681.8
----- -----
Total shareholders' equity 1,760.4 1,573.3
Noncontrolling interest 0.5 0.5
--- ---
Total equity 1,760.9 1,573.8
------- -------
Total liabilities and
shareholders' equity $4,647.9 $4,473.8
======== ========
</pre>
<p> </p>
<pre>
Spirit AeroSystems Holdings, Inc.
Condensed Consolidated Statements of Cash Flows
(unaudited)
</pre>
<p> </p>
<pre>
For the Nine Months Ended
-------------------------
September 30, October 1,
2010 2009
-------------- -----------
($ in millions)
Operating activities
Net income $157.0 $141.7
Adjustments to reconcile net
income to net cash (used
in) operating activities
Depreciation expense 84.5 91.9
Amortization expense 9.2 7.7
Accretion of long-term
receivable - (5.8)
Employee stock compensation
expense 23.5 6.7
Excess tax benefits from
share-based payment
arrangements (4.9) -
(Gain) Loss from foreign
currency transactions 4.4 (3.9)
Deferred taxes 6.1 (20.5)
Long-term tax benefit (17.6) -
Pension and other post-
retirement benefits, net (6.3) 1.6
Grant income (1.9) (1.4)
Equity in net loss of
affiliate 0.6 0.2
Changes in assets and
liabilities
Accounts receivable (130.5) (84.6)
Inventory, net (268.1) (319.5)
Accounts payable and accrued
liabilities 12.7 104.9
Advance payments (116.6) (61.6)
Deferred revenue and other
deferred credits (38.0) (54.9)
Other 46.9 (13.8)
Net cash (used in) operating
activities (239.0) (211.3)
------ ------
Investing activities
Purchase of property, plant
and equipment (183.0) (158.0)
Long-term receivable - 86.5
Other (0.5) 0.2
Net cash (used in) investing
activities (183.5) (71.3)
------ -----
Financing activities
Proceeds from revolving
credit facility 125.0 300.0
Payments on revolving credit
facility - (300.0)
Proceeds from issuance of
bonds - 293.4
Proceeds from government
grants - 0.7
Principal payments of debt (8.0) (5.8)
Debt issuance and financing
costs (0.2) (17.2)
Excess tax benefits from
share-based payment
arrangements 4.9 -
Net cash provided by
financing activities 121.7 271.1
----- -----
Effect of exchange rate
changes on cash and cash
equivalents (1.9) 1.7
---- ---
Net increase in cash and
cash equivalents for the
period (302.7) (9.8)
Cash and cash equivalents,
beginning of the period 369.0 216.5
Cash and cash equivalents,
end of the period $66.3 $206.7
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For further information: Investor Relations, Alan Hermanson, +1-316-523-7040, or Media, Debbie Gann, +1-316-526-3910, both of Spirit AeroSystems Web Site: http://www.spiritaero.com
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