Spirit AeroSystems Holdings, Inc. Reports Fourth Quarter and Full-Year 2014 Financial Results; Provides 2015 Guidance

WICHITA, Kan., Feb. 3, 2015 /CNW/ -- 

2015 Guidance

  • Full-Year 2015 Guidance: Revenues $6.6 - $6.7 billion, Earnings Per Share of $3.60 - $3.80, Free Cash Flow of $600 - $700 million*

Fourth Quarter 2014 Consolidated Results

  • Total Revenues of $1.6 billion, up 5% y/y
  • Reports fully diluted EPS loss of ($0.77), adjusted EPS of $0.87* excluding the impact of the divestiture of the Gulfstream programs and deferred tax valuation allowance
  • Adjusted Free Cash Flow of $107 million*
  • Records loss of ($197) million for previously announced divestiture of the Gulfstream programs

Full-Year 2014 Consolidated Results

  • Total Revenues of $6.8 billion, up 14% y/y
  • Reports fully diluted EPS of $2.53, adjusted EPS of $3.57* excluding the impact of the divestiture of the Gulfstream programs and deferred tax valuation allowance
  • Adjusted Free Cash Flow of $302 million*
  • A record total backlog of ~$47 billion

Spirit AeroSystems Holdings, Inc. [NYSE: SPR] reported fourth quarter and full-year 2014 financial results driven by strong mature program operating performance. Spirit's fourth quarter 2014 revenues were $1.6 billion, up from $1.5 billion for the same period of 2013.

* Non-GAAP financial measure, see Appendix for reconciliation

 

 

Table 1.  Summary Financial Results (unaudited)





4th Quarter


Twelve Months


($ in millions, except per share data)

2014

2013

Change

2014

2013

Change








Revenues

$1,574

$1,494

5%

$6,799

$5,961

14%

Operating (Loss) Income 

($273)

($321)

15%

$354

($364)

197%

Operating (Loss) Income as a % of Revenues

(17.3%)

(21.5%)

 420  BPS

5.2%

(6.1%)

 1,130  BPS

Net (Loss) Income 

($106)

($587)

82%

$359

($621)

158%

Net (Loss) Income as a % of Revenues

(6.7%)

(39.3%)

 3,260  BPS

5.3%

(10.4%)

 1,570  BPS

(Loss) Earnings Per Share (Fully Diluted)

($0.77)

($4.15)

81%

$2.53

($4.40)

158%

Fully Diluted Weighted Avg Share Count

138.8

141.4


141.6

141.3


 

Operating loss for the fourth quarter of 2014 was ($273) million compared to operating loss of ($321) million in the fourth quarter of 2013. Net loss for the quarter was ($106) million, or ($0.77) per share, compared to net loss of ($587) million, or ($4.15) per share, in the same period of 2013. The current quarter includes a pretax charge of ($471) million, or ($1.42) per share*, for the divestiture of Gulfstream programs and ($30) million, or ($0.22) per share, negative impact for deferred tax asset valuation allowance not associated with the Gulfstream programs. This is compared to pretax ($546) million of forward loss charges in the same period of 2013, and a ($381) million negative impact due to the establishment of a valuation allowance against U.S. net deferred tax assets. Revenue for the full-year 2014 increased 14 percent to $6.8 billion. Operating income for the full-year was $354 million compared to operating loss of ($364) million for the prior year. Full-year net income was $359 million, or $2.53 per share, compared to net loss of ($621) million, or ($4.40) per share in 2013. (Table 1)

"This was a record year for sales and deliveries; 2014 was a year of transition for Spirit. We addressed performance challenges in both development and production, we improved productivity and quality, and we mitigated risk as exemplified by the sale of the Gulfstream wing programs," said President and Chief Executive Officer Larry Lawson

"We delivered a record 1,545 ship sets last year. We also made positive inroads in defense, with focused program execution on Sikorsky's CH-53K and Textron's Bell V-280 Valor, and we celebrated with Boeing and the U.S. Air Force the successful first test flight for the KC-46A tanker program," Lawson added.

"Our objectives for 2015 are well defined. We will continue to focus on increasing productivity, making thoughtful investments in preparation for rate increases, continuing progress on A350, increasing our emphasis on long-term growth, and addressing how we deploy capital," Lawson concluded.

Spirit's backlog at the end of the fourth quarter of 2014 increased by approximately 7 percent from the previous quarter to a record $47 billion as orders exceeded deliveries.

Spirit updated its contract profitability estimates during the fourth quarter of 2014 resulting in pretax $63 million, or $0.31 per share#, favorable cumulative catch-up adjustments on mature programs due to improved performance and reduced risks. Additionally, the company recorded reversal of forward loss charges of $27 million on the BR725, 767 and 747-8 programs combined. In comparison, Spirit recorded pretax ($546) million forward losses and pretax $51 million favorable cumulative catch-up adjustments in the fourth quarter of 2013.

# The earnings per share amount is presented net of income taxes of 31.0%.

* Non-GAAP financial measure, see Appendix for reconciliation

Adjusted free cash flow from operations was a $107 million* source of cash for the fourth quarter of 2014, compared to a $6 million* source of cash in the fourth quarter of 2013 due to greater reduction in accounts receivable partially offset by higher cash tax payments. Adjusted full-year free cash flow was a $302 million* source of cash compared to a $57 million* source of cash in 2013. (Table 2)

Table 2.  Cash Flow and Liquidity (unaudited)





4th Quarter

Twelve Months

($ in millions)

2014

2013

2014

2013






Cash Flow from Operations

$33

$61

$362

$261

Purchases of Property, Plant & Equipment

($86)

($81)

($220)

($273)

Free Cash Flow*

($53)

($20)

$142

($12)

Adjusted Free Cash Flow*#

$107

$6

$302

$57






#Excludes Cash Transferred on Gulfstream Divestiture and Severe Weather Impact





December 31,

December 31,

Liquidity



2014

2013






Cash



$378

$421

Total Debt



$1,154

$1,167






Cash balances at the end of the year were $378 million after a $160 million cash payment to Triumph Group related to the divestiture of the Gulfstream programs and $129 million related to the first share repurchase in Spirit's history. At the end of 2014, the company's $650 million revolving credit facility was undrawn. Debt balances at the end of the fourth quarter were $1.2 billion. The company's credit rating remained unchanged at the end of the fourth quarter 2014.

Financial Outlook and Risk to Future Financial Results
Spirit revenue for the full-year 2015 is expected to be $6.6 - $6.7 billion. Fully diluted earnings per share for 2015 is expected to be $3.60 - $3.80 per share and does not include the impact of potential future adjustments to the deferred tax asset valuation allowance. Free cash flow is expected to be between $600 million and $700 million*, with higher capital expenditures of $325 million to $375 million.  The effective tax rate for 2015 is forecasted to be approximately 32.0 - 33.0 percent, including the expected benefit of the U.S. Research Tax Credit for 2015, and excluding any potential adjustment to the valuation allowance against U.S. net deferred tax assets. (Table 3)

Risks to our financial guidance are described more fully in the Cautionary Statement Regarding Forward-Looking Statements in this release and in the "Risk Factors" section of our filings with the Securities and Exchange Commission.

Table 3.  Financial Outlook Updated February 3, 2015


2015 Guidance





Revenues



$6.6 - $6.7 billion





Earnings Per Share (Fully Diluted)



$3.60 - $3.80 





Effective Tax Rate**



~32.0% - 33.0%





Free Cash Flow*



$600 - $700 million





 

* Non-GAAP financial measure, see Appendix for reconciliation

** Effective tax rate guidance, among other factors, assumes the benefit attributable to the extension of the U.S. Research Tax Credit and does not assume an impact for any potential adjustment to the valuation allowance against the U.S. net deferred tax assets.

Cautionary Statement Regarding Forward-Looking Statements
This press release contains "forward-looking statements" that may involve many risks and uncertainties. Forward-looking statements reflect our current expectations or forecasts of future events. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "anticipate," "believe," "continue," "estimate," "expect," "forecast," "intend," "may," "plan," "project," "should," "will," 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: 1) our ability to continue to grow our business and execute our growth strategy, including the timing, execution, and profitability of new and maturing programs; 2) our ability to perform our obligations and manage costs related to our new and maturing commercial, business aircraft and military development programs and the related recurring production; 3) margin pressures and the potential for additional forward losses on new and maturing programs; 4) our ability to accommodate, and the cost of accommodating, announced increases in the build rates of certain aircraft; 5) the effect on business and commercial aircraft demand and build rates of the following factors: changing customer preferences for business aircraft, including the effect of global economic conditions on the business aircraft market and expanding conflicts or political unrest in the Middle East or Asia; 6) customer cancellations or deferrals as a result of global economic uncertainty; 7) the effect of economic conditions in the industries and markets in which we operate in the U.S. and globally and any changes therein, including fluctuations in foreign currency exchange rates; 8) the success and timely execution of key milestones such as receipt of necessary regulatory approvals and customer adherence to their announced schedules; 9) our ability to successfully negotiate future pricing under our supply agreements with Boeing, Airbus and our other customers; 10) our ability to enter into profitable supply arrangements with additional customers; 11) 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; 12) 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; 13) any adverse impact on the demand for air travel or our operations from the outbreak of diseases or epidemic or pandemic outbreaks; 14) our ability to avoid or recover from cyber-based or other security attacks, information technology failures or other disruptions; 15) returns on pension plan assets and the impact of future discount rate changes on pension obligations; 16) our ability to borrow additional funds or refinance debt; 17) competition from commercial aerospace original equipment manufacturers and other aerostructures suppliers; 18) the effect of governmental laws, such as U.S. export control laws and U.S. and foreign anti-bribery laws such as the Foreign Corrupt Practices Act and the United Kingdom Bribery Act, and environmental laws and agency regulations, both in the U.S. and abroad; 19) any reduction in our credit ratings; 20) the cost and availability of raw materials and purchased components; 21) our ability to recruit and retain highly-skilled employees and our relationships with the unions representing many of our employees; 22) spending by the U.S. and other governments on defense; 23) 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; 24) our exposure under our existing senior secured revolving credit facility to higher interest payments should interest rates increase substantially; 25) the effectiveness of any interest rate hedging programs; 26) the effectiveness of our internal control over financial reporting; 27) the outcome or impact of ongoing or future litigation, claims and regulatory actions; and 28) exposure to potential product liability and warranty claims. These factors are not exhaustive and it is not possible for us to predict all factors that could cause actual results to differ materially from those reflected in our forward-looking statements. These factors speak only as of the date hereof, and new factors may emerge or changes to the foregoing factors may occur that could impact our business. As with any projection or forecast, these statements are inherently susceptible to uncertainty and changes in circumstances. Except to the extent required by law, we undertake no obligation to, and expressly disclaim any obligation to, publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Additional information concerning these and other factors can be found in our filings with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.

Segment Results

Fuselage Systems
Fuselage Systems segment revenues in the fourth quarter of 2014 were $788 million, up from $701 million for the same period last year. Operating margin for the fourth quarter of 2014 was 17.9 percent as compared to (31.6)(1) (2) percent during the same period of 2013. In the fourth quarter of 2014, the segment recorded pretax $28 million favorable cumulative catch-up adjustments on mature programs, and reversal of forward losses of $11 million on the 747-8 and 767 programs combined. In comparison, the segment realized pretax forward loss charges of ($368) million and pretax $26 million favorable cumulative catch-up adjustments in the fourth quarter of 2013. 

Propulsion Systems
Propulsion Systems segment revenues in the fourth quarter of 2014 were $385 million compared to $398 million for the same period last year. Operating margin for the fourth quarter of 2014 was 27.7 percent as compared to 5.8(1) (2) percent in the fourth quarter of 2013. In the fourth quarter of 2014, the segment realized pretax $21 million favorable cumulative catch-up adjustments on mature programs and reversal of forward loss charges of $16 million on the BR725 and 767 programs combined. In comparison, the segment recorded pretax forward loss charges of ($60) million and pretax $15 million favorable cumulative catch-up adjustments in the fourth quarter of 2013.

Wing Systems
Wing Systems segment revenues in the fourth quarter of 2014 were $397 million, up from $393 million for the same period last year. Operating margin for the fourth quarter of 2014 was 15.2 percent as compared to (14.8)(1) (2)percent during the same period of 2013. In the fourth quarter of 2014, the segment recorded pretax $14 million favorable cumulative catch-up adjustments on mature programs. In comparison, the segment recorded pretax forward loss charges of ($118) million and pretax $10 million favorable cumulative catch-up adjustments in the fourth quarter of 2013.

(1)

For the three months ended December 31, 2013, corporate SG&A of $1.3 million, $2.2 million and $2.6 million was reclassified from segment operating income for Fuselage, Propulsion, and Wing Systems, respectively, to conform to current year presentation.

(2) 

For the three months ended December 31, 2013, research and development of $4.2 million, $2.0 million and $1.9 million was reclassified from segment operating income for Fuselage, Propulsion, and Wing Systems, respectively, to conform to current year presentation.

 

Appendix


Table 4.  Segment Reporting

(unaudited)

(unaudited)


4th Quarter

Twelve Months

($ in millions)

2014

2013

Change

2014

2013

Change








Segment Revenues







   Fuselage Systems

$787.6

$700.8

12.4%

$3,354.9

$2,861.1

17.3%

   Propulsion Systems

384.7

398.2

(3.4%)

1,737.2

1,581.3

9.9%

   Wing Systems

397.2

392.8

1.1%

1,695.9

1,502.5

12.9%

   All Other

4.9

2.6


11.2

16.1


Total Segment Revenues

$1,574.4

$1,494.4

5.4%

$6,799.2

$5,961.0

14.1%








Segment Earnings (Loss) from Operations







   Fuselage Systems

$140.7

($221.6)

163.5%

$557.3

$89.6

522.0%

   Propulsion Systems

106.7

23.1

361.9%

354.9

249.5

42.2%

   Wing Systems

60.5

(58.2)

204.0%

244.6

(402.1)

160.8%

   All Other

3.4

0.3


3.4

4.4


Total Segment Operating Earnings (Loss)(1) (2)

$311.3

($256.4)

221.4%

$1,160.2

($58.6)

2,079.9%








Unallocated Expense







Corporate SG&A(1)

($68.9)

($49.6)

38.9%

($233.8)

($200.8)

16.4%

Impact From Severe Weather Event

-

(10.7)


-

(30.3)


Research & Development(2)

(7.5)

(11.1)

(32.4%)

(29.3)

(34.7)

(15.6%)

Cost of Sales

(36.7)

7.0

(624.3%)

(72.0)

(39.9)

80.5%

Loss on Divestiture of Programs

(471.1)

-


(471.1)

-


Total (Loss) Earnings from Operations

($272.9)

($320.8)

14.9%

$354.0

($364.3)

197.2%








Segment Operating Earnings (Loss) as % of Revenues







   Fuselage Systems

17.9%

(31.6%)

  4,950  BPS 

16.6%

3.1%

  1,350  BPS 

   Propulsion Systems

27.7%

5.8%

  2,190  BPS 

20.4%

15.8%

  460  BPS 

   Wing Systems

15.2%

(14.8%)

  3,000  BPS 

14.4%

(26.8%)

  4,120  BPS 

   All Other

69.4%

11.5%


30.4%

27.3%


Total Segment Operating Earnings (Loss) as % of Revenues

19.8%

(17.2%)

  3,700  BPS 

17.1%

(1.0%)

  1,810  BPS 








Total Operating (Loss) Earnings as % of Revenues

(17.3%)

(21.5%)

  420  BPS 

5.2%

(6.1%)

  1,130  BPS 








 

(1)

For the three months ended December 31, 2013, corporate SG&A of $1.3 million, $2.2 million and $2.6 million was reclassified from segment operating income for Fuselage, Propulsion, and Wing Systems, respectively, to conform to current year presentation. For the twelve months ended December 31, 2013, corporate SG&A of $6.8 million, $5.6 million and $6.9 million was reclassified from segment operating income for Fuselage, Propulsion, and Wing Systems, respectively, to conform to current year presentation.

(2)

For the three months ended December 31, 2013, research and development of $4.2 million, $2.0 million and $1.9 million was reclassified from segment operating income for Fuselage, Propulsion, and Wing Systems, respectively, to conform to current year presentation. For the twelve months ended December 31, 2013, research and development of $12.7 million, $8.1 million and $5.0 million was reclassified from segment operating income for Fuselage, Propulsion, and Wing Systems, respectively, to conform to current year presentation.

 



Spirit Ship Set Deliveries



(one ship set equals one aircraft)

















4th Quarter

Twelve Months


2014**

2013


2014

2013


B737

114

107


493

442


B747

4

3


18

19


B767

4

1


14

15


B777

22

24


99

99


B787

28

19


118

65


Total

172

154


742

640









A320 Family*

124

130


505

506


A330/340

26

30


113

113


A350

5

4


16

8


A380

7

8


29

34


Total

162

172


663

661









Business/Regional Jet

35

31


140

97









Total Spirit

369

357


1,545

1,398


 


* 2013 A320 deliveries have been updated for the purpose of measuring wing ship set deliveries, from weighted average to total ship set.

** Includes four fewer workdays as compared to prior year period.

 

 

Spirit AeroSystems Holdings, Inc.

Condensed Consolidated Statements of Operations

(unaudited)










For the Three Months Ended


For the Twelve Months Ended




December 31,
2014


December 31,
2013


December 31,
2014


December 31,
2013



($ in millions, except per share data)











Net revenues


$1,574.4


$1,494.4


$6,799.2


$5,961.0

Operating costs and expenses:









Cost of sales


1,299.8


1,743.8


5,711.0


6,059.5

Selling, general and administrative


68.9


49.6


233.8


200.8

Impact from severe weather event


-


10.7


-


30.3

Research and development


7.5


11.1


29.3


34.7

Loss on divestiture of programs


471.1


-


471.1


-


Total operating costs and expenses


1,847.3


1,815.2


6,445.2


6,325.3


Operating (loss) income


(272.9)


(320.8)


354.0


(364.3)

Interest expense and financing fee amortization


(15.9)


(18.1)


(88.1)


(70.1)

Interest income


0.2


0.1


0.6


0.3

Other (expense) income, net


(2.5)


4.5


(4.1)


3.3


(Loss) income before income taxes and equity in net income of affiliate


(291.1)


(334.3)


262.4


(430.8)

Income tax benefit (provision)


184.8


(253.4)


95.9


(191.1)


(Loss) income before equity in net income of affiliate


(106.3)


(587.7)


358.3


(621.9)

Equity in net income of affiliate


0.1


0.8


0.5


0.5


Net (loss) income


($106.2)


($586.9)


$358.8


($621.4)











(Loss) earnings per share









Basic


($0.77)


($4.15)


$2.55


($4.40)

Shares


138.8


141.4


140.0


141.3











Diluted


($0.77)


($4.15)


$2.53


($4.40)

Shares


138.8


141.4


141.6


141.3

 

 

Spirit AeroSystems Holdings, Inc.

Condensed Consolidated Balance Sheets

(unaudited)



December 31,
2014


December 31,
2013



($ in millions)

Current assets





Cash and cash equivalents 


$377.9


$420.7

Accounts receivable, net 


605.6


550.8

Inventory, net 


1,753.0


1,842.6

Other current assets 


315.6


130.1

    Total current assets 


3,052.1


2,944.2

Property, plant and equipment, net


1,783.6


1,803.3

Pension assets


203.4


252.6

Other assets


123.6


107.1

    Total assets 


$5,162.7


$5,107.2

Current liabilities





Accounts payable


$611.2


$753.7

Accrued expenses


329.1


220.6

Current portion of long-term debt 


9.4


16.8

Advance payments, short-term 


118.6


133.5

Deferred revenue, short-term 


23.4


19.8

Other current liabilities 


167.1


191.2

    Total current liabilities 


1,258.8


1,335.6

Long-term debt 


1,144.1


1,150.5

Advance payments, long-term 


680.4


728.9

Deferred revenue and other deferred credits


27.5


30.9

Pension/OPEB obligation 


73.0


69.8

Other liabilities 


356.9


310.5

Equity





Preferred stock, par value $0.01, 10,000,000 shares authorized, no shares issued 


-


-

Common stock, Class A par value $0.01, 200,000,000 shares authorized, 141,084,378 and 120,946,429 shares issued, respectively 


1.4


1.2

Common stock, Class B par value $0.01, 150,000,000 shares authorized, 4,745 and 23,851,694 shares issued, respectively 


-


0.2

Additional paid-in capital 


1,035.6


1,025.0

Accumulated other comprehensive loss


(153.8)


(54.6)

Retained earnings 


867.5


508.7

Treasury stock, at cost (4,000,000 and zero shares, respectively)


(129.2)


-

    Total shareholders' equity 


1,621.5


1,480.5

Noncontrolling interest


0.5


0.5

    Total equity


1,622.0


1,481.0

    Total liabilities and equity 


$5,162.7


$5,107.2

 

 

Spirit AeroSystems Holdings, Inc.

Condensed Consolidated Statements of Cash Flows

(unaudited)








For the Twelve Months Ended



December 31, 2014


December 31, 2013



($ in millions)

Operating activities





Net income (loss)


$358.8


($621.4)

Adjustments to reconcile net income (loss) to net cash provided by operating activities



Depreciation expense


170.2


158.2

Amortization expense


29.1


9.8

Accretion of customer supply agreement


1.1


0.6

Employee stock compensation expense


16.4


19.6

Excess tax benefits from share-based payment arrangements


(2.6)


(0.6)

Loss on divestiture of programs


471.1


-

Loss on disposition of assets


13.7


0.1

Loss on interest rate swaps


0.5


-

Gain from hedge contracts


(1.4)


(2.6)

Loss (gain) from foreign currency transactions


10.5


(2.6)

Deferred taxes 


(8.4)


202.8

Long-term tax provision


(1.2)


(2.5)

Pension and other post-retirement benefits, net


(24.0)


(32.0)

Grant income


(8.6)


(7.3)

Equity in net income of affiliate


(0.5)


(0.5)

Changes in assets and liabilities





Accounts receivable


(64.7)


(128.5)

Inventory, net


(332.2)


666.0

Accounts payable and accrued liabilities


51.7


104.2

Advance payments


(52.9)


(41.9)

Income taxes receivable/payable


(177.9)


(82.2)

Deferred revenue and other deferred credits


2.2


(0.2)

Cash transferred on divestiture of programs


(160.0)


-

Other 


70.7


21.6

        Net cash provided by operating activities


$361.6


$260.6

Investing activities





Purchase of property, plant and equipment


(220.2)


(234.2)

Purchase of property, plant and equipment - severe weather related expenses

-


(38.4)

Change in restricted cash


(19.9)


-

Other


0.5


4.4

        Net cash used in investing activities


($239.6)


($268.2)

Financing activities





Proceeds from issuance of bonds


300.0


-

Principal payments of debt


(16.8)


(10.4)

Payment on bonds


(300.0)


-

Excess tax benefits from share-based payment arrangements


2.6


0.6

Debt issuance and financing costs


(20.8)


(4.1)

Purchase of treasury stock


(129.2)


-

        Net cash used in financing activities


($164.2)


($13.9)

Effect of exchange rate changes on cash and cash equivalents


(0.6)


1.5

        Net decrease in cash and cash equivalents for the period


(42.8)


(20.0)

Cash and cash equivalents, beginning of the period


420.7


440.7

Cash and cash equivalents, end of the period


$377.9


$420.7

 

Management believes that the non-GAAP (Generally Accepted Accounting Principles) measures (indicated by *) used in this report provide investors with important perspectives into the company's ongoing business performance. The company does not intend for the information to be considered in isolation or as a substitute for the related GAAP measure. Other companies may define the measure differently.

 

 

Free Cash Flow

($ in millions)






Guidance 


2015



Cash Provided by Operating Activities

$925 - $1,075

Capital Expenditures

(325 - 375)

Free Cash Flow

$600 - $700

 

 

Adjusted Free Cash Flow

($ in millions)








4th Quarter


Twelve Months


2014

2013


2014

2013







Cash Provided by Operating Activities

$33.3

$61.3


$361.6

$260.6

Severe Weather Impact

-

10.7


-

30.3

Cash Transferred on Gulfstream Divestiture

160.0

-


160.0

-

Adjusted Cash Provided by Operating Activities

$193.3

$72.0


$521.6

$290.9







Capital Expenditures

($86.2)

($81.1)


($220.2)

($272.6)

Severe Weather Impact

-

15.0


-

38.4

Adjusted Capital Expenditures

($86.2)

($66.1)


($220.2)

($234.2)







Adjusted Cash Provided by Operating Activities

$193.3

$72.0


$521.6

$290.9

Adjusted Capital Expenditures

(86.2)

(66.1)


(220.2)

(234.2)

Adjusted Free Cash Flow

$107.1

$5.9


$301.4

$56.7

 

 

Adjusted EPS























4th Quarter


Twelve Months




2014


2013


2014


2013






















GAAP Diluted Earnings Per Share


($0.77)


($4.15)


$2.53


($4.40)












Net loss impact of the Gulfstream divestiture


$1.42

a

-


$1.39

a

-












Impact of deferred tax asset valuation allowance not associated with the Gulfstream divestiture


0.22

b

-


(0.35)

c

2.69

d











Diluted Shares


138.8


141.4


141.6


141.3












Adjusted Diluted Earnings Per Share


$0.87


($4.15)


$3.57


($1.71)






















a     Represents the net earnings per share impact of the Gulfstream divestiture of $471.1 million charge less tax benefit of $273.9 million.  


b     Represents the net earnings per share impact of deferred tax asset valuation allowance not associated with the Gulfstream divestiture of $30.2 million.


c     Represents the net earnings per share impact of deferred tax asset valuation allowance not associated with the Gulfstream divestiture of ($49.1) million.


d     Represents the net earnings per share impact of deferred tax asset valuation allowance not associated with the Gulfstream divestiture of $381.0 million.

 

On the web: http://www.spiritaero.com

 

Logo - http://photos.prnewswire.com/prnh/20130515/CG13652LOGO

 

SOURCE Spirit AeroSystems Holdings, Inc.

For further information: Investor Relations: Ghassan Awwad (316) 523-7040; Media: Jarrod Bartlett (316) 523-4070, http://www.spiritaero.com


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