![](/cdn/assets/images/search/clock.png)
We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
Spirit Aerosystems Holdings Inc | NYSE:SPR | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 33.39 | 0 | 12:35:55 |
WICHITA, Kan., Aug. 5, 2024 /PRNewswire/ --
Second Quarter 2024
Spirit AeroSystems Holdings, Inc. (NYSE: SPR) ("Spirit," "Spirit AeroSystems" or the "Company") reported second quarter 2024 financial results.
"This has been a dynamic and eventful period for the company, and I want to extend my gratitude to each employee for their dedication and hard work," said Pat Shanahan, President and Chief Executive Officer, Spirit AeroSystems. "Their commitment, resilience and teamwork have driven meaningful improvements in safety, compliance and quality while continuing to meet our customer commitments."
"While we have made significant improvements in the quality of our product, our financial results were negatively impacted by delivery delays as we continue to optimize the product verification process," said Irene Esteves, Executive Vice President and Chief Financial Officer, Spirit AeroSystems. "We are focused on further institutionalizing this process while improving the overall quality of each unit we produce."
Boeing 737 Program Update
Beginning in March of 2024, Spirit and Boeing established a joint product verification process to ensure conformity of fuselages prior to transportation to Boeing's final assembly site in Renton, Washington. Spirit's deliveries continue to be delayed as the companies work together to optimize the process.
During the second quarter of 2024, the Company delivered 27 Boeing 737 fuselages, which was lower than anticipated. Spirit's production facilities cycled at a rate of 31 aircraft per month during the quarter, a rate faster than the units were accepted through the product verification process, which led to an increase of undelivered units in Wichita, Kansas. This delay in deliveries contributed to higher levels of contract assets and inventory, which resulted in higher operational cash usage. Once the completed units can be fully inspected and accepted by the customer, they will be considered delivered which will allow Spirit to collect on those units.
Revenue
Spirit's revenue in the second quarter of 2024 increased from the same period of 2023, primarily due to higher production activities on most Commercial programs and higher Defense and Space revenues, partially offset by lower production volume on the Boeing 737 program. Overall deliveries decreased to 336 shipsets during the second quarter of 2024 compared to 342 shipsets in the same period of 2023.
Spirit's backlog at the end of the second quarter of 2024 was approximately $48 billion, which includes work packages on all commercial platforms in the Airbus and Boeing backlog.
Earnings
Operating loss for the second quarter of 2024 was higher compared to the same period of 2023, primarily driven by the higher unfavorable changes in estimates during the current period.
Total change in estimates in the second quarter of 2024 included net forward losses of $214 million and unfavorable cumulative catch-up adjustments for periods prior to the second quarter of $52 million. The Boeing 787 program drove $173 million of forward losses, primarily due to schedule changes, as disclosed as a subsequent event in the first quarter of 2024, as well as higher estimated supply chain costs. The Airbus A220 program recognized $25 million of forward losses, primarily resulting from production performance and supply chain cost growth. Unfavorable cumulative catch-up adjustments were primarily related to the Boeing 737 and 777 programs of $28 million and $19 million, respectively. The Boeing 737 program cumulative catch-up adjustments were driven by the delivery delays related to the product verification system as well as a higher cost profile maintained for a planned rate increase that has been delayed. The Boeing 777 program cumulative catch-up adjustments were primarily driven by schedule changes and higher production cost estimates. Excess capacity costs during the second quarter of 2024 were $46 million. In comparison, during the second quarter of 2023, Spirit recognized $105 million of net forward losses, $22 million of unfavorable cumulative catch-up adjustments and excess capacity costs of $53 million.
Second quarter 2024 EPS was $(3.56), compared to $(1.96) in the same period of 2023. Second quarter 2024 adjusted EPS* was $(2.73), which excludes the incremental deferred tax asset valuation allowance. In the same period of 2023, adjusted EPS* was $(1.46), which excluded the incremental deferred tax asset valuation allowance.
Cash
Cash from operations and free cash flow* during the second quarter of 2024 were negatively impacted by the Boeing 737 delivery delays related to the joint production verification process. Cash from operations and free cash flow* during the second quarter of 2023 reflects negative impacts to working capital resulting from rework and disruption related to the vertical fin attach fittings issue, work stoppage caused by the International Associate of Machinists and Aerospace Workers ("IAM") strike, as well as the expenditures for the anticipated increased production on the Boeing 737 program. The cash balance at the end of the second quarter of 2024 was $206 million.
Events in the first half of 2024 have resulted in significant reductions in projected revenue and cash flows this year. These recent events include the production and delivery process changes implemented by Boeing, lower than planned 737 production rates and the lack of price increases on Airbus programs. Management has developed plans to pursue various options to improve liquidity as needed and expects these plans to sufficiently improve the Company's liquidity. These plans are primarily dependent upon finalizations of active discussions related to the timing or amounts of repayment for certain customer advances and include the execution of the bridge term loan as discussed in the Subsequent Events section below, as well as the evaluation of additional strategies to improve liquidity to support operations.
Subsequent Events
On June 30, 2024, the Company entered into an Agreement and Plan of Merger (the "Merger Agreement") with Boeing. Upon completion of the merger, subject to the terms and conditions of the Merger Agreement, the Company would become a wholly owned subsidiary of Boeing. The closing of the transaction is expected to occur in mid-2025, subject to the completion of the divestiture of certain portions of Spirit's business related to the performance by Spirit and its subsidiaries of their obligations under their supply contracts with Airbus SE and other closing conditions, including approval of the Merger Agreement by Spirit shareholders and receipt of regulatory approvals.
On June 30, 2024, the Company entered into a term sheet with Airbus SE under which the parties have agreed to negotiate in good faith definitive agreements providing for the acquisition by Airbus SE or its affiliates of certain Spirit Airbus program assets.
On June 30, 2024, the Company entered into a delayed-draw bridge credit agreement that provides for a senior secured delayed-draw bridge term loan facility in an aggregate principal amount of $350 million. On July 18, 2024, Spirit borrowed $200 million under this bridge term loan facility.
Segment Results
Commercial
Commercial segment revenue in the second quarter of 2024 increased from the same period of the prior year, primarily due to higher production across most programs, partially offset by lower production volume on the Boeing 737 program. Operating margin for the second quarter of 2024 decreased compared to the same period of 2023, primarily driven by higher changes in estimates. In the second quarter of 2024, change in estimates for the segment included $212 million of net forward losses and $49 million of unfavorable cumulative catch-up adjustments. Additionally, during the second quarter of 2024, the Commercial segment included excess capacity costs of $44 million. In comparison, during the second quarter of 2023, the segment recognized $102 million of net forward losses, $16 million of unfavorable cumulative catch-up adjustments, excess capacity costs of $52 million, and strike disruption charges of $7 million.
Defense & Space
Defense & Space segment revenue in the second quarter of 2024 increased from the same period of the prior year, primarily due to higher activity on the Sikorsky CH-53K program in the current period, partially offset by lower production on the Boeing P-8 program. Operating margin for the second quarter of 2024 increased compared to the same period of 2023, primarily due to higher activities on the Sikorsky CH-53K, partially offset by higher costs on the Boeing P-8 program.
Aftermarket
Aftermarket segment revenue in the second quarter of 2024 increased from the same period of the prior year, primarily due to higher spare part sales. Operating margin in the second quarter of 2024 decreased compared to the second quarter of 2023, primarily due to sales mix.
2024 Financial Outlook
In light of the previously announced merger agreement with Boeing, and consistent with customary practice during the pendency of such transactions, Spirit will no longer provide guidance.
Additionally, due to the merger agreement announcement, no conference call will be held in conjunction with this release. Full details of the Company's financial results are available on the Company's Quarterly Report on Form 10-Q.
* Non-GAAP financial measure, see Appendix for definition and reconciliation
Cautionary Statement Regarding Forward-Looking Statements
You should read the discussion of our financial condition and results of operations in conjunction with the unaudited condensed consolidated financial statements and the notes to the unaudited condensed consolidated financial statements appearing in the Company's Annual Report on Form 10-K and the Company's Quarterly Reports on Form 10-Q. The press release may include "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. 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 "aim," "anticipate," "believe," "could," "continue," "estimate," "expect," "forecast," "goal," "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 reflect management's current views with respect to future events and are subject to risks and uncertainties, both known and unknown, including, but not limited to, those described in the "Risk Factors" section of the 2023 Form 10-K. 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:
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 2023 Form 10-K and the Company's subsequent Quarterly Reports on Form 10-Q for a more complete discussion of these and other factors that may affect our business.
Table 1. Summary Financial Results (unaudited) | ||||||
2nd Quarter | Six Months | |||||
($ in millions, except per share data) | 2024 | 2023 | Change | 2024 | 2023 | Change |
Net Revenues | $1,492 | $1,365 | 9 % | $3,195 | $2,796 | 14 % |
Operating Loss | ($331) | ($120) | ** | ($859) | ($216) | ** |
Operating Loss as a % of Revenues | (22.2 %) | (8.8 %) | ** | (26.9 %) | (7.7 %) | ** |
Net Loss | ($415) | ($206) | ** | ($1,032) | ($488) | ** |
Net Loss as a % of Revenues | (27.8 %) | (15.1 %) | ** | (32.3 %) | (17.4 %) | ** |
Net Loss Per Share (Fully Diluted) | ($3.56) | ($1.96) | (82 %) | ($8.87) | ($4.64) | (91 %) |
Adjusted Net Loss Per Share (Fully Diluted)* | ($2.73) | ($1.46) | ** | ($6.66) | ($3.15) | ** |
Fully Diluted Weighted Avg Share Count | 116.6 | 105.2 | 116.4 | 105.1 | ||
** Represents an amount in excess of 100% or not meaningful. |
Table 2. Cash Flow, Cash and Total Debt (unaudited) | ||||||
2nd Quarter | Six Months | |||||
($ in millions) | 2024 | 2023 | Change | 2024 | 2023 | Change |
Cash used in Operations | ($566) | ($183) | ** | ($981) | ($229) | ** |
Purchases of Property, Plant & Equipment | ($32) | ($28) | (11 %) | ($60) | ($51) | (18 %) |
Free Cash Flow* | ($597) | ($211) | ** | ($1,041) | ($280) | ** |
June 27, | December 31, | |||||
Cash and Total Debt | 2024 | 2023 | ||||
Cash | $206 | $824 | ||||
Total Debt | $4,061 | $4,084 | ||||
** Represents an amount in excess of 100% or not meaningful. |
Table 3. Segment Reporting (unaudited) | ||||||
2nd Quarter | Six Months | |||||
($ in millions) | 2024 | 2023 | Change | 2024 | 2023 | Change |
Segment Revenues | ||||||
Commercial | $1,166.4 | $1,083.0 | 7.7 % | $2,522.5 | $2,231.5 | 13.0 % |
Defense & Space | 224.4 | 189.6 | 18.4 % | 475.2 | 378.0 | 25.7 % |
Aftermarket | 101.1 | 92.1 | 9.8 % | 197.0 | 186.6 | 5.6 % |
Total Segment Revenues | $1,491.9 | $1,364.7 | 9.3 % | $3,194.7 | $2,796.1 | 14.3 % |
Segment (Loss) Earnings from Operations | ||||||
Commercial | ($270.5) | ($72.9) | ** | ($755.4) | ($118.4) | ** |
Defense & Space | 18.7 | 12.0 | 55.8 % | 50.9 | 31.2 | 63.1 % |
Aftermarket | 17.5 | 24.3 | (28.0 %) | 34.7 | 43.5 | (20.2 %) |
Total Segment Operating (Loss) Earnings | ($234.3) | ($36.6) | ** | ($669.8) | ($43.7) | ** |
Segment Operating (Loss) Earnings as % of Revenues | ||||||
Commercial | (23.2 %) | (6.7 %) | ** | (29.9 %) | (5.3 %) | ** |
Defense & Space | 8.3 % | 6.3 % | 200 BPS | 10.7 % | 8.3 % | 240 BPS |
Aftermarket | 17.3 % | 26.4 % | (910) BPS | 17.6 % | 23.3 % | (570) BPS |
Total Segment Operating (Loss) Earnings as % of Revenues | (15.7 %) | (2.7 %) | ** | (21.0 %) | (1.6 %) | ** |
Unallocated Expense | ||||||
SG&A | ($83.6) | ($70.6) | (18.4 %) | ($165.1) | ($148.0) | (11.6 %) |
Research & Development | (13.4) | (13.2) | (1.5 %) | (24.0) | (23.8) | (0.8 %) |
Total Loss from Operations | ($331.3) | ($120.4) | ** | ($858.9) | ($215.5) | ** |
Total Operating Loss as % of Revenues | (22.2 %) | (8.8 %) | ** | (26.9 %) | (7.7 %) | ** |
** Represents an amount in excess of 100% or not meaningful. |
Spirit Shipset Deliveries | |||||||
(one shipset equals one aircraft) | |||||||
2nd Quarter | Six Months | ||||||
2024 | 2023 | 2024 | 2023 | ||||
B737 | 27 | 74 | 71 | 169 | |||
B767 | 9 | 9 | 14 | 17 | |||
B777 | 8 | 7 | 16 | 14 | |||
B787 | 14 | 10 | 27 | 16 | |||
Total Boeing | 58 | 100 | 128 | 216 | |||
A220 | 22 | 14 | 37 | 27 | |||
A320 Family | 179 | 152 | 332 | 294 | |||
A330 | 9 | 9 | 16 | 18 | |||
A350 | 15 | 13 | 31 | 25 | |||
Total Airbus | 225 | 188 | 416 | 364 | |||
Business/Regional Jet | 53 | 54 | 99 | 108 | |||
Total | 336 | 342 | 643 | 688 |
Spirit AeroSystems Holdings, Inc. | |||||||
Condensed Consolidated Statements of Operations | |||||||
(unaudited) | |||||||
For the Three Months Ended | For the Six Months Ended | ||||||
June 27, 2024 | June 29, 2023 | June 27, 2024 | June 29, 2023 | ||||
($ in millions, except per share data) | |||||||
Net Revenues | $ 1,491.9 | $ 1,364.7 | $ 3,194.7 | $ 2,796.1 | |||
Operating costs and expenses | |||||||
Cost of sales | 1,725.4 | 1,395.5 | 3,863.7 | 2,827.7 | |||
Selling, general and administrative | 83.6 | 70.6 | 165.1 | 148.0 | |||
Restructuring costs | 0.8 | 0.9 | 0.8 | 7.2 | |||
Research and development | 13.4 | 13.2 | 24.0 | 23.8 | |||
Other operating expense | - | 4.9 | - | 4.9 | |||
Total operating costs and expenses | 1,823.2 | 1,485.1 | 4,053.6 | 3,011.6 | |||
Operating loss | (331.3) | (120.4) | (858.9) | (215.5) | |||
Interest expense and financing fee amortization | (82.3) | (73.6) | (162.5) | (146.0) | |||
Other income (expense), net | 0.4 | (9.9) | 2.7 | (127.3) | |||
Loss before income taxes and equity in net loss of affiliates | (413.2) | (203.9) | (1,018.7) | (488.8) | |||
Income tax (provision) benefit | (2.1) | (3.0) | (13.1) | 1.3 | |||
Loss before equity in net loss of affiliates | (415.3) | (206.9) | (1,031.8) | (487.5) | |||
Equity in net income (loss) of affiliates | 0.2 | 0.5 | 0.1 | (0.2) | |||
Net loss | (415.1) | (206.4) | (1,031.7) | (487.7) | |||
Less noncontrolling interest in earnings of subsidiary | (0.2) | 0.1 | (0.3) | 0.2 | |||
Net loss attributable to common shareholders | $ (415.3) | $ (206.3) | $ (1,032.0) | $ (487.5) | |||
Loss per share | |||||||
Basic | $ (3.56) | $ (1.96) | $ (8.87) | $ (4.64) | |||
Diluted | $ (3.56) | $ (1.96) | $ (8.87) | $ (4.64) |
Spirit AeroSystems Holdings, Inc. | |||
Condensed Consolidated Balance Sheets | |||
(unaudited) | |||
June 27, 2024 | December 31, 2023 | ||
($ in millions) | |||
Assets | |||
Cash and cash equivalents | $ 206.0 | $ 823.5 | |
Restricted cash | - | 0.1 | |
Accounts receivable, net | 560.0 | 585.5 | |
Contract assets, short-term | 1,005.3 | 522.9 | |
Inventory, net | 1,893.3 | 1,767.3 | |
Other current assets | 60.9 | 52.5 | |
Total current assets | 3,725.5 | 3,751.8 | |
Property, plant and equipment | 2,008.1 | 2,084.2 | |
Right of use assets | 88.8 | 92.1 | |
Contract assets, long-term | 16.0 | - | |
Pension assets | 41.4 | 33.5 | |
Restricted plan assets | 50.3 | 61.1 | |
Deferred income taxes | 0.1 | 0.1 | |
Goodwill | 631.2 | 631.2 | |
Intangible assets, net | 188.6 | 196.2 | |
Other assets | 108.6 | 99.9 | |
Total assets | $ 6,858.6 | $ 6,950.1 | |
Liabilities | |||
Accounts payable | $ 1,113.9 | $ 1,106.8 | |
Accrued expenses | 429.1 | 420.1 | |
Profit sharing | 41.8 | 15.7 | |
Current portion of long-term debt | 77.4 | 64.8 | |
Operating lease liabilities, short-term | 9.6 | 9.1 | |
Advance payments, short-term | 102.9 | 38.3 | |
Contract liabilities, short-term | 165.1 | 192.6 | |
Forward loss provision, short-term | 351.7 | 256.6 | |
Deferred revenue and other deferred credits, short-term | 57.7 | 49.6 | |
Other current liabilities | 505.4 | 44.7 | |
Total current liabilities | 2,854.6 | 2,198.3 | |
Long-term debt | 3,984.0 | 4,018.7 | |
Operating lease liabilities, long-term | 80.4 | 84.3 | |
Advance payments, long-term | 257.9 | 301.9 | |
Pension/OPEB obligation | 28.4 | 30.3 | |
Contract liabilities, long-term | 181.4 | 161.3 | |
Forward loss provision, long-term | 568.3 | 224.1 | |
Deferred revenue and other deferred credits, long-term | 55.1 | 76.7 | |
Deferred grant income liability - non-current | 26.9 | 25.8 | |
Deferred income taxes | 18.7 | 9.1 | |
Other non-current liabilities | 316.4 | 315.5 | |
Stockholders' Equity | |||
Common stock, Class A par value $0.01, 200,000,000 shares authorized, 116,619,149 and 116,054,291 shares issued and outstanding, respectively | 1.2 | 1.2 | |
Additional paid-in capital | 1,448.5 | 1,429.1 | |
Accumulated other comprehensive loss | (94.9) | (89.6) | |
Retained earnings | (415.7) | 616.3 | |
Treasury stock, at cost (41,587,480 shares each period, respectively) | (2,456.7) | (2,456.7) | |
Total stockholders' equity | (1,517.6) | (499.7) | |
Noncontrolling interest | 4.1 | 3.8 | |
Total equity | (1,513.5) | (495.9) | |
Total liabilities and equity | $ 6,858.6 | $ 6,950.1 |
Spirit AeroSystems Holdings, Inc. | ||||
Condensed Consolidated Statements of Cash Flows | ||||
(unaudited) | ||||
For the Six Months Ended | ||||
June 27, 2024 | June 29, 2023 | |||
Operating activities | ($ in millions) | |||
Net loss | $ (1,031.7) | $ (487.7) | ||
Adjustments to reconcile net loss to net cash used in operating activities | ||||
Depreciation and amortization expense | 155.6 | 157.7 | ||
Amortization of deferred financing fees | 3.4 | 3.5 | ||
Accretion of customer supply agreement | 1.4 | 1.2 | ||
Employee stock compensation expense | 20.7 | 19.8 | ||
Loss from derivative instruments | - | 2.1 | ||
(Gain) loss from foreign currency transactions | (5.3) | 8.5 | ||
Loss on disposition of assets | 0.8 | 0.3 | ||
Deferred taxes | 10.2 | (11.5) | ||
Pension and other post-retirement plans (income) expense | (5.6) | 62.6 | ||
Grant liability amortization | (0.6) | (0.6) | ||
Equity in net loss (income) of affiliates | (0.1) | 0.2 | ||
Forward loss provision | 439.4 | (32.5) | ||
Gain on settlement of financial instrument | (0.8) | (0.9) | ||
Change in fair value of acquisition consideration and settlement | - | (2.4) | ||
Gain on settlement of New Market Tax Credit incentive program | (5.7) | - | ||
Changes in assets and liabilities | ||||
Accounts receivable, net | 30.6 | (17.1) | ||
Inventory, net | (131.9) | (161.4) | ||
Contract assets | (498.8) | (92.7) | ||
Accounts payable and accrued liabilities | 7.6 | 88.8 | ||
Profit sharing/deferred compensation | 26.1 | (26.9) | ||
Advance payments | 20.6 | 41.1 | ||
Income taxes receivable/payable | 1.4 | 7.2 | ||
Contract liabilities | (7.3) | (7.3) | ||
Pension plans employer contributions | (1.4) | 178.4 | ||
Deferred revenue and other deferred credits | (11.2) | 21.7 | ||
Other | 1.5 | 18.9 | ||
Net cash used in operating activities | (981.1) | (229.0) | ||
Investing activities | ||||
Purchase of property, plant and equipment | (60.3) | (51.3) | ||
Net cash used in investing activities | (60.3) | (51.3) | ||
Financing activities | ||||
Customer financing | 465.0 | 180.0 | ||
Borrowings under revolving credit facility | - | 1.6 | ||
Principal payments of debt | (30.9) | (31.2) | ||
Payments on term loans | (1.5) | (1.5) | ||
Payment on financing of New Market Tax Credit incentive program | (1.9) | - | ||
Taxes paid related to net share settlement awards | (5.1) | (5.9) | ||
Proceeds from issuance of ESPP stock | 3.8 | 2.6 | ||
Debt issuance and financing costs | (0.5) | (0.5) | ||
Net cash provided by financing activities | 428.9 | 145.1 | ||
Effect of exchange rate changes on cash and cash equivalents | 0.7 | 4.8 | ||
Net decrease in cash, cash equivalents, and restricted cash for the period | (611.8) | (130.4) | ||
Cash, cash equivalents, and restricted cash, beginning of period | 845.9 | 678.4 | ||
Cash, cash equivalents, and restricted cash, end of period | $ 234.1 | $ 548.0 | ||
Reconciliation of Cash, Cash Equivalents, and Restricted Cash: | ||||
For the Six Months Ended | ||||
June 27, 2024 | June 29, 2023 | |||
Cash and cash equivalents, beginning of the period | $ 823.5 | $ 658.6 | ||
Restricted cash, short-term, beginning of the period | 0.1 | 0.2 | ||
Restricted cash, long-term, beginning of the period | 22.3 | 19.6 | ||
Cash, cash equivalents, and restricted cash, beginning of the period | $ 845.9 | $ 678.4 | ||
Cash and cash equivalents, end of the period | $ 206.0 | $ 525.7 | ||
Restricted cash, short-term, end of the period | - | 0.2 | ||
Restricted cash, long-term, end of the period | 28.1 | 22.1 | ||
Cash, cash equivalents, and restricted cash, end of the period | $ 234.1 | $ 548.0 |
Appendix
In addition to reporting our financial information using U.S. Generally Accepted Accounting Principles (GAAP), management believes that certain non-GAAP measures (which are indicated by * in this press release) provide investors with important perspectives into the company's ongoing business performance. The non-GAAP measures we use in this press release are (i) adjusted diluted earnings (loss) per share and (ii) free cash flow, which are described further below. The Company does not intend for the information to be considered in isolation or as a substitute for the related GAAP measures. Other companies may define and calculate the measures differently than we do, limiting the usefulness of the measures for comparison with other companies.
Adjusted Diluted Earnings (Loss) Per Share. To provide additional transparency, we have disclosed non-GAAP adjusted diluted earnings (loss) 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 | ||||||||
2nd Quarter | Six Months | |||||||
2024 | 2023 | 2024 | 2023 | |||||
GAAP Diluted Loss Per Share | ($3.56) | ($1.96) | ($8.87) | ($4.64) | ||||
Deferred Tax Asset Valuation Allowance (a) | 0.83 | 0.50 | 2.21 | 1.01 | ||||
Pension Termination Charges (b) | - | - | - | 0.48 | ||||
Adjusted Diluted Loss Per Share | ($2.73) | ($1.46) | ($6.66) | ($3.15) | ||||
Diluted Shares (in millions) | 116.6 | 105.2 | 116.4 | 105.1 | ||||
(a) | Represents the deferred tax asset valuation allowance (included in Income tax provision) |
(b) | Represents the net non-cash charges related to the termination of the U.S. Pension Value Plan A (included in Other income) |
Free Cash Flow | |||||||
2nd Quarter | Six Months | ||||||
($ in millions) | 2024 | 2023 | 2024 | 2023 | |||
Cash from Operations | ($566) | ($183) | ($981) | ($229) | |||
Capital Expenditures | (32) | (28) | (60) | (51) | |||
Free Cash Flow | ($597) | ($211) | ($1,041) | ($280) | |||
View original content to download multimedia:https://www.prnewswire.com/news-releases/spirit-aerosystems-reports-second-quarter-2024-results-302214664.html
SOURCE Spirit Aerosystems
Copyright 2024 PR Newswire
1 Year Spirit Aerosystems Chart |
1 Month Spirit Aerosystems Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions