Spirit AeroSystems Reports Fourth Quarter and Full-Year 2022 Results
Spirit AeroSystems (NYSE: SPR) reported Q4 2022 revenue of $1.3 billion, a 23% increase YoY, primarily from Boeing 737 deliveries. Full-year revenue rose 27% to $5.0 billion. However, the company posted a net loss of $(243 million in Q4 and $(546 million) for 2022. Operating losses expanded to $(139 million) in Q4 but improved to $(281 million) for the full year. Free cash flow usage was $66 million in Q4, totaling $516 million for 2022. The backlog stood at approximately $37 billion at year-end, with plans to deliver 420 shipsets in 2023. The fiscal year faced challenges due to supply chain issues and increased production costs.
- Fourth quarter revenue rose to $1.3 billion, a 23% increase YoY.
- Full-year revenue increased 27% to $5.0 billion.
- Delivered 281 Boeing 737 shipsets in 2022, up 73% YoY.
- Fourth quarter deliveries of 343 shipsets, up from 277 YoY.
- Backlog at end of Q4 was approximately $37 billion.
- Net loss for Q4 2022 was $(243 million); $(546 million) for the full year.
- Operating loss widened to $(139 million) in Q4 2022.
- Free cash flow usage was $66 million in Q4; total usage was $516 million for 2022.
- Increased costs associated with production and supply chain issues.
Fourth Quarter 2022
-
Revenue of
$1.3 billion -
EPS of
$(2.32) $(1.46) -
Cash used in operations of
$27 million $66 million -
Delivered 81 737 shipsets in the quarter, up
17% q/q and59% y/y
Full-Year 2022
-
Revenue of
$5.0 billion -
EPS of
$(5.21) $(2.81) -
Cash used in operations of
$395 million $516 million -
Delivered 281 737 shipsets, up
73% y/y
| Table 1. Summary Financial Results (unaudited) | ||||||||||||||||||
4th Quarter |
|
|
|
Twelve Months |
|
|
||||||||||||
| ($ in millions, except per share data) | 2022 |
|
2021 |
|
Change |
|
2022 |
|
2021 |
|
Change |
|||||||
| Revenues |
|
|
|
|
23 |
% |
|
|
|
|
27 |
% |
||||||
| Operating Loss |
( |
) |
( |
) |
(76 |
%) |
( |
) |
( |
) |
39 |
% |
||||||
| Operating Loss as a % of Revenues |
( |
) |
( |
) |
(310) BPS |
( |
) |
( |
) |
600 BPS |
||||||||
| Net Loss |
( |
) |
( |
) |
** |
( |
) |
( |
) |
(1 |
%) |
|||||||
| Net Loss as a % of Revenues |
( |
) |
( |
) |
(720) BPS |
( |
) |
( |
) |
290 BPS |
||||||||
| Loss Per Share (Fully Diluted) |
( |
) |
( |
) |
** |
( |
) |
( |
) |
(0 |
%) |
|||||||
| Adjusted Loss Per Share (Fully Diluted)* |
( |
) |
( |
) |
(74 |
%) |
( |
) |
( |
) |
19 |
% |
||||||
| Fully Diluted Weighted Avg Share Count | 104.8 |
|
104.3 |
|
104.6 |
|
104.2 |
|
||||||||||
| ** Represents an amount in excess of |
||||||||||||||||||
“2022 was a challenging year for the entire industry as we worked through supply chain part shortages and labor attrition, which impacted overall deliveries and profitability,” said
“We learned a lot over the course of the year which we will apply to future production rate increases. Our free cash flow usage in the quarter was within the range we indicated on our third quarter earnings call. While we spent more in the fourth quarter to achieve those results, those investments should position us better for future rate increases. On the 737 program, we plan to produce approximately 420 shipsets in 2023.”
Revenue
Spirit’s revenue in the fourth quarter of 2022 was
Spirit’s full-year 2022 revenue was
Spirit’s backlog at the end of the fourth quarter of 2022 was approximately
Earnings
Operating loss for the fourth quarter of 2022 was
Changes in estimates in the fourth quarter of 2022 included net forward loss charges of
Operating loss for the full year of 2022 was
Full-year 2022 earnings included net forward loss charges of
Other expense for the full year of 2022 was
Fourth quarter 2022 EPS was
Full-year 2022 EPS was
Cash
Cash used in operations in the fourth quarter of 2022 was
Full-year cash used in operations in 2022 was
The cash balance at the end of the fourth quarter of 2022 was
| Table 2. Cash Flow, Cash and Total Debt (unaudited) | ||||||||||||||||||
4th Quarter |
|
|
|
Twelve Months |
|
|
||||||||||||
| ($ in millions) | 2022 |
|
2021 |
|
Change |
|
2022 |
|
2021 |
|
Change |
|||||||
| Cash used in Operations |
( |
) |
( |
) |
(64 |
%) |
( |
) |
( |
) |
** |
|||||||
| Purchases of Property, Plant & Equipment |
( |
) |
( |
) |
(36 |
%) |
( |
) |
( |
) |
(19 |
%) |
||||||
| Free Cash Flow* |
( |
) |
( |
) |
(52 |
%) |
( |
) |
( |
) |
** |
|||||||
|
|
|
||||||||||||||||
| Cash and Total Debt | 2022 |
|
2021 |
|||||||||||||||
| Cash |
|
|
|
|
||||||||||||||
| Total Debt |
|
|
|
|
||||||||||||||
| ** Represents an amount in excess of |
||||||||||||||||||
Segment Results
Commercial
Commercial segment revenue in the fourth quarter of 2022 increased 26 percent from the same period of the prior year to
Defense & Space
Defense & Space segment revenue in the fourth quarter of 2022 increased 21 percent from the same period of the prior year to
Aftermarket
Aftermarket segment revenue in the fourth quarter of 2022 slightly decreased by one percent compared to the same period of 2021 to
| Table 4. Segment Reporting (unaudited) | ||||||||||||||||||
4th Quarter |
|
Twelve Months |
||||||||||||||||
| ($ in millions) | 2022 |
|
2021 |
|
Change |
|
2022 |
|
2021 |
|
Change |
|||||||
| Segment Revenues | ||||||||||||||||||
| Commercial |
|
|
|
|
26.0 |
% |
|
|
|
|
30.1 |
% |
||||||
| Defense & Space | 183.2 |
|
152.0 |
|
20.5 |
% |
649.8 |
|
585.0 |
|
11.1 |
% |
||||||
| Aftermarket | 72.9 |
|
73.8 |
|
(1.2 |
%) |
311.4 |
|
239.9 |
|
29.8 |
% |
||||||
| Total Segment Revenues |
|
|
|
|
23.4 |
% |
|
|
|
|
27.2 |
% |
||||||
| Segment (Loss) Earnings from Operations | ||||||||||||||||||
| Commercial |
( |
) |
( |
) |
** |
( |
) |
( |
) |
62.4 |
% |
|||||||
| Defense & Space | 20.7 |
|
12.0 |
|
72.5 |
% |
72.8 |
|
44.3 |
|
64.3 |
% |
||||||
| Aftermarket | 9.2 |
|
16.8 |
|
(45.2 |
%) |
58.5 |
|
50.3 |
|
16.3 |
% |
||||||
| Total Segment Operating (Loss) Earnings |
( |
) |
|
|
** |
|
|
( |
) |
** |
||||||||
| Segment Operating (Loss) Earnings as % of Revenues | ||||||||||||||||||
| Commercial | (7.5 |
%) |
(2.4 |
%) |
(510) BPS |
(2.0 |
%) |
(7.1 |
%) |
510 BPS |
||||||||
| Defense & Space | 11.3 |
% |
7.9 |
% |
340 BPS |
11.2 |
% |
7.6 |
% |
360 BPS |
||||||||
| Aftermarket | 12.6 |
% |
22.8 |
% |
** |
18.8 |
% |
21.0 |
% |
(220) BPS |
||||||||
| Total Segment Operating (Loss) Earnings as % of Revenues | (3.7 |
%) |
0.8 |
% |
(450) BPS |
1.0 |
% |
(3.2 |
%) |
420 BPS |
||||||||
| Unallocated Expense | ||||||||||||||||||
| SG&A |
( |
) |
( |
) |
(9.9 |
%) |
( |
) |
( |
) |
0.3 |
% |
||||||
| Research & Development | (13.9 |
) |
(19.0 |
) |
26.8 |
% |
(50.4 |
) |
(53.3 |
) |
5.4 |
% |
||||||
| Total Loss from Operations |
( |
) |
( |
) |
(75.7 |
%) |
( |
) |
( |
) |
38.8 |
% |
||||||
| Total Operating Loss as % of Revenues | (10.5 |
%) |
(7.4 |
%) |
(310) BPS |
(5.6 |
%) |
(11.6 |
%) |
600 BPS |
||||||||
| ** Represents an amount in excess of |
||||||||||||||||||
* |
Non-GAAP financial measure, see Appendix for reconciliation |
|
Cautionary Statement Regarding Forward-Looking Statements
This press release contains “forward-looking statements” that involve many risks and uncertainties. Forward-looking statements generally can be identified by the use of forward-looking terminology such as “aim,” “anticipate,” “believe,” “could,” “continue,” “estimate,” “expect,” “goal,” “forecast,” “intend,” “may,” “might,” “model,” “objective,” “outlook,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” “target,” “will,” “would,” and other similar words, or phrases, or the negative thereof, unless the context requires otherwise. These statements are based on circumstances as of the date on which the statements are made and they 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:
-
the general effect of geopolitical conditions, including Russia’s invasion of
Ukraine and the resultant sanctions being imposed in response to the conflict, including any trade and transport restrictions; -
the impact of significant health events, such as pandemics, contagions or other public health emergencies (including the COVID-19 pandemic) or fear of such events, on the demand for our and our customers’ products and services, the industries and markets in which we operate in the
U.S. and globally; - our ability, and our suppliers' ability, to attract and retain the skilled work force necessary for production and development in an extremely competitive market;
-
the effect of economic conditions, including increases in interest rates and inflation, on the demand for our and our customers’ products and services, on the industries and markets in which we operate in the
U.S. and globally, and on the global aerospace supply chain; - the timing and conditions surrounding the full worldwide return to service (including receiving the remaining regulatory approvals) of the B737 MAX, future demand for the aircraft, and any residual impacts of the B737 MAX grounding on production rates for the aircraft;
- our reliance on The Boeing Company (“Boeing”) and Airbus Group SE and its affiliates (collectively, “Airbus”) for a significant portion of our revenues;
- the business condition and liquidity of our customers and their ability to satisfy their contractual obligations to the Company;
- the certainty of our backlog, including the ability of customers to cancel or delay orders prior to shipment on short notice, and the potential impact of regulatory approvals of existing and derivative models;
- our ability to accurately estimate and manage performance, cost, margins, and revenue under our contracts, and the potential for additional forward losses on new and maturing programs;
- our accounting estimates for revenue and costs for our contracts and potential changes to those estimates;
- our ability to continue to grow and diversify our business, execute our growth strategy, and secure replacement programs, including our ability to enter into profitable supply arrangements with additional customers;
- the outcome of product warranty or defective product claims and the impact settlement of such claims may have on our accounting assumptions;
- our dependence on our suppliers, as well as the cost and availability of raw materials and purchased components, including increases in energy, freight, and other raw material costs as a result of inflation or continued global inflationary pressures;
- our ability and our suppliers’ ability to meet stringent delivery (including quality and timeliness) standards and accommodate changes in the build rates or model mix of aircraft, including the ability to staff appropriately for current production volumes and anticipated production volume increases;
- our ability to maintain continuing, uninterrupted production at our manufacturing facilities and our suppliers’ facilities;
- competitive conditions in the markets in which we operate, including in-sourcing by commercial aerospace original equipment manufacturers;
- our ability to successfully negotiate, or re-negotiate, future pricing under our supply agreements with Boeing, Airbus and other customers;
- our ability to effectively integrate recent acquisitions, along with other acquisitions we pursue, and generate synergies and other cost savings therefrom, while avoiding unexpected costs, charges, expenses, and adverse changes to business relationships and business disruptions;
- the possibility that our cash flows may not be adequate for our additional capital needs;
- any reduction in our credit ratings;
- our ability to access the capital markets to fund our liquidity needs, and the costs and terms of any additional financing;
- our ability to avoid or recover from cyber or other security attacks and other operations disruptions;
- legislative or regulatory actions, both domestic and foreign, impacting our operations, including the effect of changes in tax laws and rates and our ability to accurately calculate and estimate the effect of such changes;
- our relationships with the unions representing many of our employees, including our ability to successfully negotiate new agreements, and avoid labor disputes and work stoppages with respect to our union employees;
-
spending by the
U.S. and other governments on defense; - pension plan assumptions and future contributions;
- the effectiveness of our internal control over financial reporting;
- the outcome or impact of ongoing or future litigation, arbitration, claims, and regulatory actions or investigations, including our exposure to potential product liability and warranty claims;
- adequacy of our insurance coverage;
- our ability to continue selling certain receivables through our supplier financing programs; and
- the risks of doing business internationally, including fluctuations in foreign currency exchange rates, impositions of tariffs or embargoes, trade restrictions, compliance with foreign laws, and domestic and foreign government policies.
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 the Company’s Annual Report on Form 10-K and the Company’s Quarterly Reports on Form 10-Q for a more complete discussion of these and other factors that may affect our business.
Spirit Shipset Deliveries |
||||||||
(one shipset equals one aircraft) |
||||||||
|
|
|
|
|
|
|
|
|
|
|
4th Quarter |
|
Twelve Months |
||||
|
|
2022 |
2021 |
|
2022 |
|
2021 |
|
B737 |
81 |
51 |
281 |
162 |
||||
B747 |
- |
2 |
1 |
6 |
||||
B767 |
8 |
7 |
31 |
34 |
||||
B777 |
7 |
5 |
26 |
23 |
||||
B787 |
7 |
6 |
20 |
37 |
||||
Total Boeing |
103 |
71 |
359 |
262 |
||||
|
||||||||
A220 (1) |
14 |
13 |
60 |
50 |
||||
A320 Family |
144 |
136 |
591 |
467 |
||||
A330 |
8 |
5 |
27 |
20 |
||||
A350 |
11 |
10 |
48 |
42 |
||||
Total Airbus |
177 |
164 |
726 |
579 |
||||
|
||||||||
Business/Regional Jet (2) |
63 |
42 |
212 |
181 |
||||
|
||||||||
Total |
343 |
277 |
1,297 |
1,022 |
||||
(1) |
Beginning in 2022, A220 deliveries reflect the number of wing end item deliveries instead of pylon end item deliveries, as previously reported. 2021 A220 deliveries have been updated to reflect wing units. |
|
(2) |
2021 Business/Regional Jet deliveries incorporate changes resulting from alignment of shipset reporting from acquired businesses. |
|
|
||||||||||||
Condensed Consolidated Statements of Operations |
||||||||||||
(unaudited) |
||||||||||||
|
|
|
|
|
|
|
||||||
|
|
For the Three Months Ended |
|
For the Twelve Months Ended |
||||||||
|
|
|
|
|
|
|
|
|
||||
|
|
($ in millions, except per share data) |
||||||||||
| Net revenues |
|
|
|
|
|
|
|
|
||||
| Operating costs and expenses: | ||||||||||||
| Cost of sales | 1,369.6 |
|
1,061.4 |
|
4,981.0 |
|
4,070.8 |
|
||||
| Selling, general and administrative | 75.4 |
|
68.6 |
|
279.2 |
|
279.9 |
|
||||
| Restructuring costs | - |
|
0.1 |
|
0.2 |
|
8.2 |
|
||||
| Research and development | 13.9 |
|
19.0 |
|
50.4 |
|
53.3 |
|
||||
| Total operating costs and expenses | 1,458.9 |
|
1,149.1 |
|
5,310.8 |
|
4,412.2 |
|
||||
| Operating loss | (138.8 |
) |
(79.0 |
) |
(281.2 |
) |
(459.2 |
) |
||||
| Interest expense and financing fee amortization | (73.3 |
) |
(64.9 |
) |
(244.1 |
) |
(242.6 |
) |
||||
| Other (expense) income, net | (44.3 |
) |
7.9 |
|
(14.1 |
) |
146.6 |
|
||||
| Loss before income taxes and equity in net loss of affiliates | (256.4 |
) |
(136.0 |
) |
(539.4 |
) |
(555.2 |
) |
||||
| Income tax benefit (expense) | 13.2 |
|
16.6 |
|
(5.2 |
) |
17.2 |
|
||||
| Loss before equity in net loss of affiliates | (243.2 |
) |
(119.4 |
) |
(544.6 |
) |
(538.0 |
) |
||||
| Equity in net loss of affiliates | (0.4 |
) |
(0.9 |
) |
(1.6 |
) |
(2.8 |
) |
||||
| Net loss | (243.6 |
) |
(120.3 |
) |
(546.2 |
) |
(540.8 |
) |
||||
| Less noncontrolling interest in earnings of subsidiary | 0.5 |
|
- |
|
0.5 |
|
- |
|
||||
| Net loss attributable to common shareholders |
( |
) |
( |
) |
( |
) |
( |
) |
||||
| Loss per share | ||||||||||||
| Basic |
|
) |
( |
) |
|
) |
( |
) |
||||
| Shares | 104.8 |
|
104.3 |
|
104.6 |
|
104.2 |
|
||||
| Diluted |
|
) |
( |
) |
|
) |
( |
) |
||||
| Shares | 104.8 |
|
104.3 |
|
104.6 |
|
104.2 |
|
||||
| Dividends declared per common share |
|
|
|
|
|
|
|
|
||||
| Condensed Consolidated Balance Sheets | ||||||
| (unaudited) | ||||||
2022 |
2021 |
|||||
| ($ in millions) | ||||||
| Assets | ||||||
| Cash and cash equivalents |
|
|
|
|
||
| Restricted cash | 0.2 |
|
0.3 |
|
||
| Accounts receivable, net | 489.5 |
|
461.6 |
|
||
| Contract assets, short-term | 501.0 |
|
443.2 |
|
||
| Inventory, net | 1,470.7 |
|
1,382.6 |
|
||
| Other current assets | 38.3 |
|
39.7 |
|
||
| Total current assets | 3,158.3 |
|
3,806.0 |
|
||
| Property, plant and equipment, net | 2,205.9 |
|
2,385.5 |
|
||
| Intangible assets, net | 211.4 |
|
212.3 |
|
||
630.5 |
|
623.7 |
|
|||
| Right of use assets | 94.3 |
|
85.3 |
|
||
| Contract assets, long-term | 1.2 |
|
- |
|
||
| Pension assets | 196.9 |
|
532.5 |
|
||
| Restricted plan assets | 71.1 |
|
- |
|
||
| Deferred income taxes | 4.8 |
|
0.4 |
|
||
| Other assets | 91.8 |
|
91.6 |
|
||
| Total assets |
|
|
|
|
||
| Liabilities | ||||||
| Accounts payable |
|
|
|
|
||
| Accrued expenses | 411.7 |
|
376.1 |
|
||
| Profit sharing | 40.5 |
|
63.7 |
|
||
| Current portion of long-term debt | 53.7 |
|
49.5 |
|
||
| Operating lease liabilities, short-term | 8.3 |
|
8.2 |
|
||
| Advance payments, short-term | 24.9 |
|
137.8 |
|
||
| Contract liabilities, short-term | 111.1 |
|
97.9 |
|
||
| Forward loss provision, short-term | 305.9 |
|
244.6 |
|
||
| Deferred revenue and other deferred credits, short-term | 21.7 |
|
72.7 |
|
||
| Other current liabilities | 54.9 |
|
105.2 |
|
||
| Total current liabilities | 1,952.5 |
|
1,876.0 |
|
||
| Long-term debt | 3,814.9 |
|
3,742.7 |
|
||
| Operating lease liabilities, long-term | 85.4 |
|
78.8 |
|
||
| Advance payments, long-term | 199.9 |
|
201.3 |
|
||
| Pension/OPEB obligation | 25.2 |
|
74.8 |
|
||
| Contract liabilities, long-term | 245.3 |
|
289.1 |
|
||
| Forward loss provision, long-term | 369.2 |
|
521.6 |
|
||
| Deferred revenue and other deferred credits, long-term | 49.0 |
|
32.1 |
|
||
| Deferred grant income liability - non-current | 25.7 |
|
26.4 |
|
||
| Deferred income taxes | 1.3 |
|
21.8 |
|
||
| Other non-current liabilities | 141.6 |
|
423.9 |
|
||
| Stockholders' Equity | ||||||
| Common stock, Class A par value |
1.1 |
|
1.1 |
|
||
| Additional paid-in capital | 1,179.5 |
|
1,146.2 |
|
||
| Accumulated other comprehensive loss | (203.9 |
) |
(23.7 |
) |
||
| Retained earnings | 1,232.5 |
|
1,781.4 |
|
||
(2,456.7 |
) |
(2,456.7 |
) |
|||
| Total stockholders’ equity | (247.5 |
) |
448.3 |
|
||
| Noncontrolling interest | 3.7 |
|
0.5 |
|
||
| Total equity | (243.8 |
) |
448.8 |
|
||
| Total liabilities and equity |
|
|
|
|
||
|
||||||
Condensed Consolidated Statements of Cash Flows |
||||||
(unaudited) |
||||||
|
|
|
|
|
||
|
|
For the Twelve Months Ended |
||||
|
|
|
|
|
||
|
|
($ in millions) |
||||
| Operating activities | ||||||
| Net loss |
( |
) |
( |
) |
||
| Adjustments to reconcile net loss to net cash (used in) provided by operating activities | ||||||
| Depreciation and amortization expense | 337.1 |
|
327.6 |
|
||
| Amortization of deferred financing fees | 11.9 |
|
15.1 |
|
||
| Accretion of customer supply agreement | 2.2 |
|
3.5 |
|
||
| Employee stock compensation expense | 36.6 |
|
25.8 |
|
||
| Loss on extinguishment of debt | 2.6 |
|
- |
|
||
| Loss (gain) from derivative instruments | 17.1 |
|
(0.1 |
) |
||
| Gain from foreign currency transactions | (18.9 |
) |
(4.4 |
) |
||
| Loss on disposition of assets | 1.1 |
|
4.1 |
|
||
| Deferred taxes | 8.5 |
|
(4.5 |
) |
||
| Pension and other post-retirement plans income | 37.1 |
|
(109.1 |
) |
||
| Grant liability amortization | (1.5 |
) |
(1.5 |
) |
||
| Equity in net loss of affiliates | 1.6 |
|
2.8 |
|
||
| Forward loss provision | (89.7 |
) |
(10.4 |
) |
||
| Gain on settlement of financial instrument | (21.9 |
) |
- |
|
||
| Changes in assets and liabilities | ||||||
| Accounts receivable, net | (37.1 |
) |
51.5 |
|
||
| Contract assets | (63.9 |
) |
(70.9 |
) |
||
| Inventory, net | (118.2 |
) |
30.9 |
|
||
| Accounts payable and accrued liabilities | 220.7 |
|
160.2 |
|
||
| Profit sharing/deferred compensation | (22.5 |
) |
6.2 |
|
||
| Advance payments | (133.2 |
) |
2.7 |
|
||
| Income taxes receivable/payable | 9.5 |
|
302.4 |
|
||
| Contract liabilities | (30.4 |
) |
(82.4 |
) |
||
| Pension plans employer contributions | 19.5 |
|
(173.8 |
) |
||
| Other | (14.3 |
) |
1.9 |
|
||
| Net cash used in operating activities |
( |
) |
( |
) |
||
| Investing activities | ||||||
| Purchase of property, plant and equipment | (121.6 |
) |
(150.6 |
) |
||
| Acquisition, net of cash acquired | (31.3 |
) |
(21.1 |
) |
||
| Other | (2.6 |
) |
7.9 |
|
||
| Net cash used in investing activities |
( |
) |
( |
) |
||
| Financing activities | ||||||
| Proceeds from issuance of debt | - |
|
600.0 |
|
||
| Proceeds from issuance of long-term bonds | 900.0 |
|
- |
|
||
| Payment of principal - settlement of financial instrument | (289.5 |
) |
- |
|
||
| Customer financing | - |
|
(10.0 |
) |
||
| Principal payments of debt | (47.6 |
) |
(42.1 |
) |
||
| Payments on term loan | (6.0 |
) |
(401.5 |
) |
||
| Payments on bonds | (779.2 |
) |
(300.0 |
) |
||
| Taxes paid related to net share settlement awards | (7.2 |
) |
(5.2 |
) |
||
| Proceeds from issuance of ESPP stock | 3.9 |
|
3.0 |
|
||
| Debt issuance and financing costs | (32.3 |
) |
(3.4 |
) |
||
| Dividends paid | (4.2 |
) |
(4.3 |
) |
||
| Proceeds from noncontrolling interest | 3.7 |
|
- |
|
||
| Payment of debt extinguishment costs | (2.6 |
) |
- |
|
||
| Net cash used in financing activities |
( |
) |
( |
) |
||
| Effect of exchange rate changes on cash and cash equivalents | (8.9 |
) |
(4.2 |
) |
||
| Net decrease in cash, cash equivalents and restricted cash for the period |
( |
) |
( |
) |
||
| Cash, cash equivalents, and restricted cash, beginning of the period | 1,498.4 |
|
1,893.1 |
|
||
| Cash, cash equivalents, and restricted cash, end of the period |
|
|
|
|
||
| Reconciliation of Cash and Cash Equivalents and Restricted Cash: | 2022 |
2021 |
||||
| Cash and cash equivalents, beginning of the period |
|
|
|
|
||
| Restricted cash, short-term, beginning of the period | 0.3 |
|
0.3 |
|
||
| Restricted cash, long-term, beginning of the period | 19.5 |
|
19.5 |
|
||
| Cash, cash equivalents, and restricted cash, beginning of the period |
|
|
|
|
||
| Cash and cash equivalents, end of the period |
|
|
|
|
||
| Restricted cash, short-term, end of the period | 0.2 |
|
0.3 |
|
||
| Restricted cash, long-term, end of the period | 19.6 |
|
19.5 |
|
||
| Cash, cash equivalents, and restricted cash, end of the period |
|
|
|
|
||
Appendix
In addition to reporting our financial information using
Adjusted Diluted (Loss) Earnings Per Share. To provide additional transparency, we have disclosed non-GAAP adjusted diluted (loss) earnings per share (Adjusted EPS). This metric excludes various items that are not considered to be directly related to our operating performance. Management uses Adjusted EPS as a measure of business performance, and we believe this information is useful in providing period-to-period comparisons of our results. The most comparable GAAP measure is diluted earnings (loss) per share.
Free Cash Flow. Free Cash Flow is defined as GAAP cash provided by (used in) operating activities (also referred to herein as “cash from operations”), less capital expenditures for property, plant and equipment. Management believes Free Cash Flow provides investors with an important perspective on the cash available for stockholders, debt repayments including capital leases, and acquisitions after making the capital investments required to support ongoing business operations and long-term value creation. Free Cash Flow does not represent the residual cash flow available for discretionary expenditures as it excludes certain mandatory expenditures. The most comparable GAAP measure is cash provided by (used in) operating activities. Management uses Free Cash Flow as a measure to assess both business performance and overall liquidity.
The tables below provide reconciliations between the GAAP and non-GAAP measures.
Adjusted EPS |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Three months ended |
|
Twelve months ended |
||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
| GAAP Diluted Loss Per Share |
( |
) |
( |
) |
( |
) |
( |
) |
||||||||
| Costs Related to Acquisitions | - |
|
- |
|
- |
|
0.01 |
|
a |
|||||||
| Restructuring Costs | - |
|
- |
|
- |
|
0.05 |
|
b |
|||||||
| Deferred Tax Asset Valuation Allowance | 0.62 |
|
c |
0.24 |
|
c |
1.63 |
|
c |
1.96 |
|
c |
||||
| Curtailment Gain | - |
|
- |
|
d |
- |
|
(0.35 |
) |
d |
||||||
| Pension Spinoff Settlement Loss | - |
|
0.07 |
|
e |
- |
|
0.06 |
|
e |
||||||
| Investment Agreement Settlement Gain | - |
|
- |
|
(0.14 |
) |
f |
- |
|
|||||||
| Losses related to Russia Sanctions | - |
|
- |
|
0.19 |
|
g |
- |
|
|||||||
| Pension Termination Charges | 0.24 |
|
h |
- |
|
0.72 |
|
h |
- |
|
||||||
| Adjusted Diluted Loss Per Share |
( |
) |
( |
) |
( |
) |
( |
) |
||||||||
| Diluted Shares (in millions) | 104.8 |
|
104.3 |
|
104.6 |
|
104.2 |
|
||||||||
a |
Represents the transaction costs associated with acquisitions (included in SG&A) |
|
|
|
|
b |
Represents the restructuring expenses for cost-alignment and headcount reductions (included in Restructuring costs) |
|
|
|
|
c |
Represents the deferred tax asset valuation allowance (included in Income tax benefit) |
|
|
|
|
d |
Represents the curtailment gain resulting from the closure of the defined benefit plans acquired as part of the Bombardier Acquisition (included in Other expense) |
|
|
|
|
e |
Represents the pension settlement loss resulting from pension plan spinoff (included in Other expense) |
|
|
|
|
f |
Represents the gain resulting from the settlement of the repayable investment agreement with the U.K. |
|
|
|
|
g |
Represents the impairment charges and reserve adjustments related to the suspension of all sales and service activities relating to sanctioned Russian business activities. These losses are directly attributable to the sanctions, incremental to similar costs (or income) incurred for reasons other than the sanctions and are not expected to recur, and therefore, are not indicative of Spirit's ongoing operational performance (primarily included in Cost of Sales) |
|
|
|
|
h |
Represents the non-cash charges related to the termination of the |
Free Cash Flow |
||||||||||||
($ in millions) |
||||||||||||
|
|
|
|
|
|
|
|
|
||||
|
|
Three months ended |
|
Twelve months ended |
||||||||
|
|
|
|
|
|
|
|
|
||||
| Cash Used in Operations |
( |
) |
( |
) |
( |
) |
( |
) |
||||
| Capital Expenditures | (39 |
) |
(61 |
) |
(122 |
) |
(151 |
) |
||||
| Free Cash Flow |
( |
) |
( |
) |
( |
) |
( |
) |
||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20230207005096/en/
Investor Relations:
Media:
On the web: http://www.spiritaero.com
Source:
FAQ
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