Spirit AeroSystems Holdings, Inc. Reports First Quarter 2013 Financial Results; Reports Revenues of $1.442 billion and EPS of

Spirit AeroSystems Holdings, Inc. Reports First Quarter 2013 Financial 
Results; Reports Revenues of $1.442 billion and EPS of $0.57 
- First Quarter 2013 Revenues of $1.442 billion 
- Operating Income of $145 million; Operating Margins of 10% 
- Fully Diluted Earnings Per Share of $0.57; Fully Diluted Earnings Per Share 
excluding severe weather expense of $0.61* 
- Cash and Cash Equivalents were $313 million 
- Total backlog of approximately $36 billion 
WICHITA, Kan., May 2, 2013 /CNW/ - Spirit AeroSystems Holdings, Inc. [NYSE: 
SPR] reported first quarter 2013 financial results reflecting continued strong 
demand for large commercial aircraft and strong core program operating 
performance. Spirit's first quarter 2013 revenues were $1.442 billion, up 14% 
from $1.266 billion for the same period of 2012, driven by higher production 
volumes and model mix. 
Operating income was $145 million, up from $122 million for the same period in 
2012, driven by increased volume and productivity and efficiency on core 
programs, partially offset by a net pre-tax ($15) million additional 
forward-loss on the 787 program related to the wing. 
Net income for the quarter was $81 million, or $0.57 per fully diluted share, 
compared to net income of $74 million, or $0.52 per fully diluted share, in 
the same period of 2012. The increase in current quarter income was partially 
offset by the negative impact of foreign currency exchange rates. 
Table 1. Summary Financial Results (unaudited) 
                                   1st Quarter 
($ in millions, except per share data) 2013   2012   Change 
Revenues                               $1,442 $1,266 14% 
Operating Income                       $145   $122   18% 
Operating Income as a % of Revenues    10.0%  9.7%   30 BPS 
Net Income                             $81    $74    10% 
Net Income as a % of Revenues          5.6%   5.8%   (20) BPS 
Earnings Per Share (Fully Diluted)     $0.57  $0.52  10% 
Fully Diluted Weighted Avg Share Count 143.1  142.5 
* Non-GAAP financial measure, see Appendix for reconciliation 
"Spirit is an important leader in commercial aerospace, as evidenced by our 
$36 billion backlog, market-leading products and technologies, and excellent 
track record on core programs," said President and Chief Executive Officer 
Larry Lawson. "I am pleased to have the opportunity to lead Spirit." 
"As the first quarter demonstrates, Spirit's performance across core programs 
remains strong with large commercial aircraft deliveries increasing 9 percent 
and deliveries across all programs increasing 11 percent over the first 
quarter of 2012," Lawson continued. "With the strong core business 
performance, and development programs in early production phases, now is the 
time to engage in a comprehensive evaluation of the development programs in 
Tulsa, Wichita, Kinston, and St. Nazaire." 
"Going forward, our goals are to focus on core program growth, including 
investing in core product innovation, improving costs on development programs, 
successfully executing the 787 and A350, and creating value from customer 
diversification as we position Spirit to benefit significantly from the record 
demand for our products," Lawson added. 
"Led by a competitive and demanding leadership team, we will accomplish these 
goals through outstanding program execution, a culture of sustained 
operational excellence, and a focus on long-term profitable growth," Lawson 
concluded. 
Spirit's backlog at the end of the first quarter of 2013 was approximately $36 
billion.  Spirit calculates its backlog based on current contractual prices 
for products and volumes from the published firm order backlogs of Airbus and 
Boeing, along with firm orders from other customers. 
Spirit updated its contract profitability estimates during the first quarter 
of 2013, resulting in a net pre-tax $20 million, or $0.10 per share, favorable 
cumulative catch-up adjustment driven by core program productivity and 
efficiency. 
The company also realized a pre-tax ($15) million, or ($0.07) per share, 
additional forward-loss on the 787 related to manufacturing cost growth on the 
wing. 
In comparison, the first quarter of 2012 operating income included a pre-tax 
($11) million forward-loss on the G280 program and a pre-tax ($3) million 
forward-loss on the 747-8 wing program. 
Cash flow from operations was a $45 million use of cash for the first quarter 
of 2013, compared to a $12 million source of cash for the first quarter of 
2012.  The same period of 2012 included customer advance payments of $150 
million associated with a customer agreement on the A350 XWB fuselage program. 
Adjusting for the customer advance payment of $150 million in the first 
quarter of 2012, Spirit experienced a $93 million improvement in cash flow 
from operations in the first quarter of 2013, compared to the same period of 
2012 due to the timing of accounts receivable and accounts payable in the 
first quarter of 2013.  (Table 2) 
Table 2. Cash Flow and Liquidity (unaudited) 
                                         1st Quarter 
($ in millions)                              2013      2012 
Cash Flow from Operations                    ($45)     $12 
Purchases of Property, Plant & Equipment**   ($80)     ($54) 
                                         March 28, December 31, 
Liquidity                                    2013      2012 
Cash                                         $313      $441 
Total Debt                                   $1,173    $1,176 
**Purchases of Property, Plant & Equipment includes purchases related
to the April 14th, 2012 severe weather event 
Cash balances at the end of the quarter were $313 million and debt balances 
were $1,173 million. At the end of the first quarter of 2013, the company's 
$650 million credit facility remained undrawn. 
The company's credit rating remained unchanged at the end of the first quarter 
2013 with a BB rating, stable outlook by Standard and Poor's and a Ba2 rating, 
negative outlook by Moody Investor Services. 
Financial Outlook 
Spirit most recently issued financial guidance for the full-year 2013 on 
February 12, 2013.  The company's expectations with respect to its core 
programs continue to be consistent with that guidance.  Coincident with the 
arrival of Mr. Larry Lawson, Spirit's newly named Chief Executive Officer, 
Spirit will not be issuing further financial guidance at this time, pending 
the completion of a comprehensive strategic and financial review of the 
company's development programs in Tulsa, Wichita, Kinston, and St. Nazaire. 
The company expects to report its progress on these initiatives in the coming 
quarters. 
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 
"may," "will," "should," "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, execution and profitability 
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; margin pressures and the potential for 
additional forward-losses on aircraft development programs; our ability to 
accommodate, and the cost of accommodating, announced increases in the build 
rates of certain aircraft; the effect on business and commercial aircraft 
demand and build rates of the following factors: continuing weakness in the 
global economy and economic challenges facing commercial airlines, a lack of 
business and consumer confidence, and the impact of continuing instability in 
global financial and credit markets, including, but not limited to, any 
failure to avert a sovereign debt crisis in Europe; customer cancellations or 
deferrals as a result of  global economic uncertainty; the success and timely 
execution of key milestones such as deliveries and resumption of service of 
Boeing's B787; and first flight, certification and first delivery of Airbus' 
A350 XWB aircraft program, receipt of necessary regulatory approvals, and 
customer adherence to their announced schedules; our ability to successfully 
negotiate new pricing under our main supply agreement with Boeing; our ability 
to enter into profitable supply arrangements with additional customers; 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 the 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 and U.S. and foreign anti-bribery laws such as the Foreign 
Corrupt Practices Act and United Kingdom Bribery Act, and 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 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; our exposure under our existing senior secured 
revolving credit facility to higher interest payments should interest rates 
increase substantially; the effectiveness of our interest rate and foreign 
currency hedging programs; the outcome or impact of ongoing or future 
litigation, claims and regulatory actions; our exposure to potential product 
liability and warranty claims; and the accuracy or completeness of our 
assessment of damage and costs of restoration and recovery from the severe 
weather event that hit our Wichita, Kan. facility on April 14, 2012. 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. 
Appendix 
Segment Results 
Fuselage Systems 
Fuselage Systems segment revenues for the first quarter of 2013 were $718 
million, up 15 percent from the same period last year, largely driven by 
higher production volumes.  Operating margin for the first quarter of 2013 was 
16.9 percent as compared to 14.2((1)) percent during the same period of 2012. 
In the first quarter of 2013 the segment recorded a net pre-tax $11 million 
favorable cumulative catch-up adjustment driven by productivity and efficiency 
on core programs, which includes a pre-tax ($8) million unfavorable cumulative 
catch-up adjustment driven by the A350 non-recurring fuselage program. In 
comparison, the segment realized a net pre-tax ($6) million unfavorable 
cumulative catch-up adjustment in the first quarter of 2012. 
Propulsion Systems 
Propulsion Systems segment revenues for the first quarter of 2013 were $375 
million, up 9 percent from the same period last year, largely driven by higher 
production volumes.  Operating margin for the first quarter of 2013 was 17.4 
percent as compared to 16.9((1)) percent in the first quarter of 2012. In the 
first quarter of 2013 the segment realized a net pre-tax $10 million favorable 
cumulative catch-up driven by productivity and efficiency on core programs.  
In comparison, the segment realized a net pre-tax $4 million favorable 
cumulative catch-up adjustment in the first quarter of 2012. 
Wing Systems 
Wing Systems segment revenues for the first quarter of 2013 were $343 million, 
up 16 percent from the same period last year, largely driven by higher 
production volumes. Operating margin for the first quarter of 2013 was 5.3 
percent as compared to 7.0((1)) percent during the same period of 2012. In the 
first quarter of 2013 the segment recorded less than a net pre-tax ($1) 
million unfavorable cumulative catch-up adjustment and a pre-tax ($15) million 
additional forward-loss on the 787 related to manufacturing cost growth on the 
wing. In comparison, in the first quarter of 2012 the segment recorded a net 
pre-tax $2 million favorable cumulative catch-up adjustment; a pre-tax ($11) 
million forward-loss on the G280 program; and a pre-tax ($3) million 
additional forward-loss on the 747-8 wing program. 
Warranty reserve of $2.3 million in 2012 reclassified from segment
(1) operating income to unallocated cost of sales to conform to current 
year presentation. 
Table 3. Segment Reporting                  (unaudited) 
                                        1st Quarter 
($ in millions)                             2013     2012     Change 
Segment Revenues 
Fuselage Systems                            $717.9   $622.6   15.3% 
Propulsion Systems                          $375.3   $344.0   9.1% 
Wing Systems                                $343.3   $296.6   15.7% 
All Other                                   $5.7     $2.6 
Total Segment Revenues                      $1,442.2 $1,265.8 13.9% 
Segment Earnings from Operations 
Fuselage Systems                            $121.4   $88.1    37.8% 
Propulsion Systems                          $65.3    $58.3    12.0% 
Wing Systems                                $18.2    $20.8    (12.5%) 
All Other                                   $1.6     $0.2 
Total Segment Operating Earnings((1))       $206.5   $167.4   23.4% 
Unallocated Corporate SG&A Expense          ($39.6)  ($40.7)  (2.7%) 
Unallocated Impact From Severe Weather      ($8.8)   $0.0
Event Expense 
Unallocated Research & Development Expense  ($1.8)   ($1.1)   63.6% 
Unallocated Cost of Sales((1))              ($11.8)  ($3.3)   257.6% 
Total Earnings from Operations              $144.5   $122.3   18.2% 
Segment Operating Earnings as % of Revenues 
Fuselage Systems                            16.9%    14.2%    270 BPS 
Propulsion Systems                          17.4%    16.9%    50 BPS 
Wing Systems                                5.3%     7.0%     (170) BPS 
All Other                                   28.1%    7.7% 
Total Segment Operating Earnings as % of    14.3%    13.2%    110 BPS
Revenues 
Total Operating Earnings as % of Revenues   10.0%    9.7%     30 BPS 
Warranty reserve of $2.3 million in 2012 reclassified from segment
(1) operating income to unallocated cost of sales to conform to current 
year presentation. 
Spirit Ship Set Deliveries 
(One Ship Set equals One Aircraft) 
2012 Spirit AeroSystems Deliveries 


                      1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Total 2012

B737                  105     105     107     100     417

B747                  5       6       7       6       24

B767                  7       6       6       6       25

B777                  21      21      22      22      86

B787                  8       11      9       15      43

Total                 146     149     151     149     595



A320 Family           112     109     103     113     437

A330/340              25      24      26      22      97

A350                  1       -       1       1       3

A380                  7       6       3       8       24

Total                 145     139     133     144     561



Business/Regional Jet 12      19      27      26      84



Total Spirit          303     307     311     319     1,240
    2013 Spirit AeroSystems Deliveries
                      1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 2013

B737                  106                             106

B747                  6                               6

B767                  6                               6

B777                  24                              24

B787                  17                              17

Total                 159                             159



A320 Family           121                             121

A330/340              27                              27

A350                  2                               2

A380                  7                               7

Total                 157                             157



Business/Regional Jet 20                              20



Total Spirit          336                             336

Spirit AeroSystems Holdings, Inc.

Condensed Consolidated Statements of Operations

(unaudited)
                                 For the Three Months Ended
                                 March 28, 2013   March 29, 2012
                                 ($ in millions, except per share data)



Net revenues                   $ 1,442.2        $ 1,265.8

Operating costs and expenses:

Cost of sales                    1,237.1          1,091.1

Selling, general and             44.3             45.0
administrative

Impact from severe weather       8.8              -
event

Research and development         7.5              7.4

 Total operating costs and       1,297.7          1,143.5
 expenses

 Operating income                144.5            122.3

Interest expense and financing   (17.6)           (18.3)
fee amortization

Interest income                  0.1              -

Other income (expense), net      (9.9)            3.5

 Income before income taxes
 and equity in net loss of       117.1            107.5
 affiliate

Income tax provision             (35.7)           (33.6)

 Income before equity in net     81.4             73.9
 loss of affiliate

Equity in net loss of            (0.2)            (0.3)
affiliate

 Net income                    $ 81.2           $ 73.6



Earnings per share

Basic                          $ 0.57           $ 0.52

Shares                           141.0            139.5



Diluted                        $ 0.57           $ 0.52

Shares                           143.1            142.5

Spirit AeroSystems Holdings, Inc.

Condensed Consolidated Balance Sheets

(unaudited)
                                     March 28, 2013   December 31, 2012
                                     ($ in millions)

Current assets

Cash and cash equivalents          $ 313.1          $ 440.7

Accounts receivable, net             587.3            420.7

Inventory, net                       2,492.9          2,410.8

Other current assets                 85.8             83.2

Total current assets                 3,479.1          3,355.4

Property, plant and equipment, net
(variable interest entity
restricted, $0.1 and $0.0 at March   1,718.0          1,698.5
28, 2013 and December 31, 2012,
respectively)

Pension assets                       84.5             78.4

Other assets                         252.1            283.0

Total assets                       $ 5,533.7        $ 5,415.3

Current liabilities

Accounts payable (variable
interest entity nonrecourse, $0.5  $ 698.6          $ 659.0
and $0.0 at March 28, 2013 and
December 31, 2012, respectively)

Accrued expenses (variable
interest entity nonrecourse, $0.7    234.2            216.3
and $0.0 at March 28, 2013 and
December 31, 2012, respectively)

Current portion of long-term debt    10.1             10.3

Advance payments, short-term         87.6             70.7

Deferred revenue, short-term         17.9             18.4

Other current liabilities            88.0             92.3

Total current liabilities            1,136.4          1,067.0

Long-term debt                       1,163.3          1,165.9

Advance payments, long-term          804.7            833.6

Deferred revenue and other           29.4             30.8
deferred credits

Pension/OPEB obligation              76.6             75.6

Other liabilities                    251.0            245.5

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, 119,668,567 and          1.2              1.2
119,671,298 shares issued,
respectively

Common stock, Class B par value
$0.01, 150,000,000 shares
authorized, 24,005,505 and           0.2              0.2
24,025,880 shares issued,
respectively

Additional paid-in capital           1,015.0          1,012.3

Accumulated other comprehensive      (158.7)          (145.2)
loss

Retained earnings                    1,212.8          1,127.9

Total shareholders' equity           2,070.5          1,996.4

Noncontrolling interest              1.8              0.5

Total equity                         2,072.3          1,996.9

Total liabilities and equity       $ 5,533.7        $ 5,415.3

Spirit AeroSystems Holdings, Inc.

Condensed Consolidated Statements of Cash Flows

(unaudited)
                                        For the Three Months Ended
                                        March 28, 2013   March 29, 2012
                                        ($ in millions)

Operating activities

Net income                            $ 81.2           $ 73.6

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

Depreciation expense                    39.3             32.9

Amortization expense                    2.8              2.8

Accretion of customer supply            0.1              0.1
agreement

Employee stock compensation expense     3.7              4.0

Excess tax benefits from share-based    -                (0.1)
payment arrangements

(Gain) on disposition of assets         (0.1)            -

(Gain) on effectiveness of hedge        (0.8)            (0.3)
contracts

(Gain) / Loss from foreign currency     10.2             (2.4)
transactions

Deferred taxes                          18.6             5.8

Long-term tax provision                 0.7              (0.2)

Pension and other post-retirement       (3.3)            (2.1)
benefits, net

Grant income                            (1.6)            (1.4)

Equity in net loss of affiliate         0.2              0.3

Changes in assets and liabilities

Accounts receivable                     (167.7)          (144.4)

Inventory, net                          (94.4)           (103.1)

Accounts payable and accrued            61.4             7.7
liabilities

Advance payments                        (12.0)           149.6

Deferred revenue and other deferred     (0.7)            (11.8)
credits

Other                                   17.0             0.6

Net cash (used in) provided by          (45.4)           11.6
operating activities

Investing activities

Purchase of property, plant and         (74.4)           (54.2)
equipment

Purchase of property, plant and
equipment - severe weather related      (5.8)            -
expenses

Other                                   2.2              0.6

Net cash (used in) investing            (78.0)           (53.6)
activities

Financing activities

Proceeds from revolving credit          -                120.0
facility

Payments on revolving credit facility   -                (120.0)

Principal payments of debt              (2.6)            (2.5)

Excess tax benefits from share-based    -                0.1
payment arrangements

Net cash (used in) financing            (2.6)            (2.4)
activities

Effect of exchange rate changes on      (1.6)            0.7
cash and cash equivalents

Net (decrease) in cash and cash         (127.6)          (43.7)
equivalents for the period

Cash and cash equivalents, beginning    440.7            177.8
of the period

Cash and cash equivalents, end of the $ 313.1          $ 134.1
period

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.

Earnings Per Share Excluding Impact of Severe Weather Event
                                Three Months     Three Months Ended
                                Ended March 29,  March 28, 2013
                                2012
                                Earnings Per     Earnings Per Share
                                Share



GAAP Diluted
Earnings Per                    $ 0.52           $ 0.57
Share



Impact from
Severe Weather                                   $ 0.04             a
Event



Earnings Per Share Excluding    $ 0.52           $ 0.61
Impact of Severe Weather Event

a Represents the net earnings per share impact of the April 2012 severe
  weather event in the first quarter.

  The earnings per share amount is presented net of income taxes of
  30.5 percent.

  EPS Calculation: 8.8mm * (1 - .305) = 6.1 , 6.1mm/ 143.1mm Diluted
  Shares = $0.04

http://www.spiritaero.com

Investor Relations,  Coleen Tabor, +1-316-523-7040, or Media, Ken Evans, 
+1-316-523-4070

http://www.spiritaero.com

SOURCE: Spirit AeroSystems Holdings, Inc.

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CO: Spirit AeroSystems Holdings, Inc.
ST: Kansas
NI: TRN AIR ARO ERN 

-0- May/02/2013 11:35 GMT