Attached files

file filename
8-K - CURRENT REPORT OF MATERIAL EVENTS OR CORPORATE CHANGES - Spirit AeroSystems Holdings, Inc.a14-26851_18k.htm
EX-2.2 - EX-2.2 - Spirit AeroSystems Holdings, Inc.a14-26851_1ex2d2.htm
EX-2.1 - EX-2.1 - Spirit AeroSystems Holdings, Inc.a14-26851_1ex2d1.htm

Exhibit 99.1

 

UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

 

 

 

Basis of preparation

 

The following Unaudited Pro Forma Condensed Consolidated Financial Statements have been derived from the Company’s historical Consolidated Financial Statements and are being presented to give effect to the Transaction. The Unaudited Pro Forma Condensed Consolidated Financial Statements should be read in conjunction with the Company’s historical Consolidated Financial Statements and accompanying notes in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013 and the Company’s Quarterly Reports on Form 10-Q for the quarters ended April 3, 2014, July 3, 2014 and October 2, 2014, each as filed with the U.S. Securities and Exchange Commission on February 2, 2014, May 5, 2014, August 1, 2014 and October 31, 2014, respectively.

 

The Unaudited Pro Forma Condensed Consolidated Statements of Operations for the fiscal year ended December 31, 2013 and for each of the quarters ended April 3, 2014, July 3, 2014 and October 2, 2014, reflect the Company’s results as if the Transaction had occurred on January 1, 2013, and do not reflect the nonrecurring loss on the Transaction directly attributable to the Transaction. The Unaudited Pro Forma Condensed Consolidated Balance Sheet as of October 2, 2014 gives effect to the Transaction as if it occurred on October 2, 2014.

 

The Unaudited Pro Forma Condensed Consolidated Financial Statements are subject to the assumptions and adjustments described in the accompanying notes. Given the information available at this time, the Company’s management believes that these assumptions and adjustments are reasonable under the circumstances.

 

The Unaudited Pro Forma Condensed Consolidated Financial Statements are not intended to be a complete presentation of the Company’s financial position or results of operations had the Transaction occurred as of and for the periods indicated. In addition, the Unaudited Pro Forma Condensed Consolidated Financial Statements are provided for illustrative and informational purposes only, and are not necessarily indicative of the Company’s future results of operations or financial condition had the Transaction been completed on the dates assumed. The pro forma adjustments are based on available information and assumptions that the Company’s management believes are reasonable, that reflect the impacts of events directly attributable to the Transactions that are factually supportable, and for purposes of the Statements of Operations, are expected to have a continuing impact on the Company.

 



 

Spirit AeroSystems Holdings, Inc.

 

Unaudited Pro Forma Condensed Consolidated Statement of Operations

 

 

 

 

For the Twelve Months Ended

 

 

December 31, 2013

 

 

 

 

 

 

 

 

 

 

Historical (a)

 

The Transaction (b)

 

Pro Forma

 

 

 

 

 

 

 

 

 

 

 

($ in millions, except per share data)

 

 

 

 

 

 

 

 

 

Net Revenues

 

$

5,961.0

 

$

140.2

 

$

5,820.8

 

 

 

 

 

 

 

Operating costs and expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

6,059.5

 

670.3

 

$

5,389.2

 

 

 

 

 

 

 

Selling, general and administrative

 

200.8

 

 

200.8

 

 

 

 

 

 

 

Impact from severe weather event

 

30.3

 

 

30.3

 

 

 

 

 

 

 

Research and development

 

34.7

 

 

34.7

 

 

 

 

 

 

 

Total operating costs and expenses

 

6,325.3

 

670.3

 

5,655.0

 

 

 

 

 

 

 

Operating (loss) income

 

(364.3)

 

(530.1)

 

165.8

 

 

 

 

 

 

 

Interest expense and financing fee amortization

 

(70.1)

 

 

(70.1)

 

 

 

 

 

 

 

Interest income

 

0.3

 

 

0.3

 

 

 

 

 

 

 

Other income, net

 

3.3

 

 

3.3

 

 

 

 

 

 

 

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

 

(430.8)

 

(530.1)

 

99.3

 

 

 

 

 

 

 

Income tax (provision) benefit

 

(191.1)

 

42.5

(c)

(233.6)

 

 

 

 

 

 

 

(Loss) before equity in net income of affiliates

 

(621.9)

 

(487.6)

 

(134.3)

 

 

 

 

 

 

 

Equity in net income of affiliates

 

0.5

 

 

0.5

 

 

 

 

 

 

 

Net (loss)

 

$

(621.4)

 

$

(487.6)

 

$

(133.8)

 

 

 

 

 

 

 

(Loss) per share

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(4.40)

 

 

 

$

(0.95)

 

 

 

 

 

 

 

Diluted

 

$

(4.40)

 

 

 

$

(0.95)

 

 

 

 

 

 

 

 

 

 

See accompanying Notes to the Unaudited Pro Forma Condensed Consolidated Financial Statements

 



 

Spirit AeroSystems Holdings, Inc.

 

Unaudited Pro Forma Condensed Consolidated Statement of Operations

 

 

 

 

For the Three Months Ended

 

 

April 3, 2014

 

 

 

 

 

 

 

 

 

 

Historical (a)

 

The Transaction (b)

 

Pro Forma

 

 

 

 

 

 

 

 

 

 

 

($ in millions, except per share data)

 

 

 

 

 

 

 

 

 

Net Revenues

 

$

1,728.5

 

 

$

50.0

 

 

$

1,678.5

 

 

 

 

 

 

 

 

Operating costs and expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

1,467.3

 

 

50.3

 

 

$

1,417.0

 

 

 

 

 

 

 

 

Selling, general and administrative

 

60.5

 

 

 

 

60.5

 

 

 

 

 

 

 

 

Impact from severe weather event

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

6.3

 

 

 

 

6.3

 

 

 

 

 

 

 

 

 

Total operating costs and expenses

 

1,534.1

 

 

50.3

 

 

1,483.8

 

 

 

 

 

 

 

 

Operating income (loss)

 

194.4

 

 

(0.3

)

 

194.7

 

 

 

 

 

 

 

 

Interest expense and financing fee amortization

 

(35.4

)

 

 

 

(35.4

)

 

 

 

 

 

 

 

Interest income

 

0.1

 

 

 

 

0.1

 

 

 

 

 

 

 

 

Other income, net

 

1.2

 

 

 

 

1.2

 

 

 

 

 

 

 

 

Income (loss) before income taxes and equity in net income of affiliates

 

160.3

 

 

(0.3

)

 

160.6

 

 

 

 

 

 

 

 

Income tax (provision) benefit

 

(6.9

)

 

12.5

 

(c)

(19.4

)

 

 

 

 

 

 

 

Income (loss) before equity in net income of affiliates

 

153.4

 

 

12.2

 

 

141.2

 

 

 

 

 

 

 

 

Equity in net income of affiliates

 

0.2

 

 

 

 

0.2

 

 

 

 

 

 

 

 

Net income

 

$

153.6

 

 

$

12.2

 

 

$

141.4

 

 

 

 

 

 

 

 

Earnings per share

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

1.08

 

 

 

 

$

0.99

 

 

 

 

 

 

 

 

Diluted

 

$

1.07

 

 

 

 

$

0.98

 

 

 

 

 

 

 

 

 

 

 

See accompanying Notes to the Unaudited Pro Forma Condensed Consolidated Financial Statements

 



 

Spirit AeroSystems Holdings, Inc.

 

Unaudited Pro Forma Condensed Consolidated Statement of Operations

 

 

 

 

For the Three Months Ended

 

 

 

 

 

July 3, 2014

 

 

 

 

 

 

 

 

 

 

 

Historical (a)

 

 

The Transaction (b)

 

 

Pro Forma

 

 

 

 

($ in millions, except per share data)

 

 

Net Revenues

 

 

$

 

1,803.3

 

 

$

 

54.8

 

 

$

 

1,748.5

 

 

Operating costs and expenses

 

 

 

 

 

 

 

 

Cost of sales

 

 

1,525.9

 

 

54.3

 

 

$

 

1,471.6

 

 

Selling, general and administrative

 

 

54.4

 

 

 

 

54.4

 

 

Impact from severe weather event

 

 

 

 

 

 

 

 

Research and development

 

 

6.8

 

 

 

 

6.8

 

 

Total operating costs and expenses

 

 

1,587.1

 

 

54.3

 

 

1,532.8

 

 

Operating income

 

 

216.2

 

 

0.5

 

 

215.7

 

 

Interest expense and financing fee amortization

 

 

(20.8)

 

 

 

 

(20.8)

 

 

Interest income

 

 

0.1

 

 

 

 

0.1

 

 

Other income, net

 

 

5.8

 

 

 

 

5.8

 

 

Income before income taxes and equity in net income of affiliates

 

 

201.3

 

 

0.5

 

 

200.8

 

 

 

Income tax (provision)

 

 

(58.1)

 

 

8.5

 

 (c)

 

(66.6)

 

 

Income (loss) before equity in net income of affiliates

 

 

143.2

 

 

9.0

 

 

134.2

 

 

Equity in net income of affiliates

 

 

0.2

 

 

 

 

0.2

 

 

 

Net income

 

 

$

 

143.4

 

 

$

 

9.0

 

 

$

 

134.4

 

 

Earnings per share

 

 

 

 

 

 

 

 

Basic

 

 

$

 

1.01

 

 

 

 

$

 

0.95

 

 

Diluted

 

 

$

 

1.01

 

 

 

 

$

 

0.94

 

 

 

See accompanying Notes to the Unaudited Pro Forma Condensed Consolidated Financial Statements

 



 

Spirit AeroSystems Holdings, Inc.

 

Unaudited Pro Forma Condensed Consolidated Statement of Operations

 

 

 

 

For the Three Months Ended

 

 

 

 

 

October 2, 2014

 

 

 

Historical (a)

 

 

The Transaction (b)

 

 

Pro Forma

 

 

 

 

($ in millions, except per share data)

 

 

Net Revenues

 

 

$

 

1,693.0

 

 

$

 

66.5

 

 

$

 

1,626.5

 

 

Operating costs and expenses

 

 

 

 

 

 

 

 

Cost of sales

 

 

1,418

 

 

66.3

 

 

$

 

1,351.7

 

 

Selling, general and administrative

 

 

50.0

 

 

 

 

50.0

 

 

Impact from severe weather event

 

 

 

 

 

 

 

 

Research and development

 

 

8.7

 

 

 

 

8.7

 

 

Total operating costs and expenses

 

 

1,476.7

 

 

66.3

 

 

1,410.4

 

 

Operating income

 

 

216.3

 

 

0.2

 

 

216.1

 

 

Interest expense and financing fee amortization

 

 

(16.0)

 

 

 

 

(16.0)

 

 

Interest income

 

 

0.2

 

 

 

 

0.2

 

 

Other (expense), net

 

 

(8.6)

 

 

 

 

(8.6)

 

 

Income before income taxes and equity in net income of affiliates

 

 

191.9

 

 

0.2

 

 

191.7

 

 

Income tax (provision)

 

 

(23.9)

 

 

13.5

 

 (c)

 

(37.4)

 

 

Income (loss) before equity in net income of affiliates

 

 

168.0

 

 

13.7

 

 

154.3

 

 

Equity in net income of affiliates

 

 

 

 

 

 

 

 

 

Net income

 

 

$

 

168.0

 

 

$

 

13.7

 

 

$

 

154.3

 

 

Earnings per share

 

 

 

 

 

 

 

 

Basic

 

 

$

 

1.21

 

 

 

 

$

 

1.11

 

 

Diluted

 

 

$

 

1.20

 

 

 

 

$

 

1.10

 

 

 

See accompanying Notes to the Unaudited Pro Forma Condensed Consolidated Financial Statements

 



 

Spirit AeroSystems Holdings, Inc.

 

Unaudited Pro Forma Condensed Consolidated Balance Sheet

 

 

 

October 2, 2014

 

 

 

Historical (d)

 

The Transaction (b)

 

Pro Forma

 

 

 

($ in millions)

 

Current assets

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

452.8

 

$

160.0

  (e)

$

292.8

 

Accounts receivable, net

 

809.3

 

 

809.3

 

Inventory, net

 

1,886.1

 

290.6

 

1,595.5

 

Deferred tax asset-current

 

31.8

 

  (f)

31.8

 

Other current assets

 

47.2

 

 

47.2

 

Total current assets

 

3,227.2

 

450.6

 

2,776.6

 

Property, plant and equipment, net

 

1,784.9

 

21.8

 

1,763.1

 

Pension assets, net

 

276.8

 

 

276.8

 

Other assets

 

116.2

 

10.2

 

106.0

 

Total assets

 

$

5,405.1

 

$

482.6

 

$

4,922.5

 

Current liabilities

 

 

 

 

 

 

 

Accounts payable

 

$

709.3

 

$

 

$

709.3

 

Accrued expenses

 

272.9

 

 

272.9

 

Profit sharing

 

78.0

 

 

78.0

 

Current portion of long-term debt

 

9.6

 

 

9.6

 

Advance payments, short-term

 

103.1

 

9.7

 

93.4

 

Deferred revenue, short-term

 

21.8

 

 

21.8

 

Deferred grant income liability — current

 

9.8

 

 

9.8

 

Other current liabilities

 

91.6

 

11.3

 

80.3

 

Total current liabilities

 

1,296.1

 

21.0

 

1,275.1

 

Long-term debt

 

1,147.0

 

 

1,147.0

 

Advance payments, long-term

 

713.3

 

3.3

 

710.0

 

Pension/OPEB obligation

 

74.9

 

 

74.9

 

Deferred grant income liability — non-current

 

99.9

 

 

99.9

 

Deferred revenue and other deferred credits

 

27.8

 

 

27.8

 

Other liabilities

 

231.3

 

 

231.3

 

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, 141,164,346 shares issued

 

1.4

 

 

1.4

 

Common stock, Class B par value $0.01, 150,000,000 shares authorized, 73,330 shares issued

 

 

 

 

Additional paid-in capital

 

1,032.3

 

 

1,032.3

 

Accumulated other comprehensive loss

 

(63.9)

 

 

(63.9)

 

Retained earnings

 

973.7

 

458.3

  (g)

515.4

 

Treasury Stock

 

(129.2)

 

 

(129.2)

 

Total shareholders’ equity

 

1,814.3

 

458.3

 

1,356.0

 

Noncontrolling interest

 

0.5

 

 

0.5

 

Total equity

 

1,814.8

 

458.3

 

1,356.5

 

Total liabilities and equity

 

$

5,405.1

 

$

482.6

 

$

4,922.5

 

 

See accompanying Notes to the Unaudited Pro Forma Condensed Consolidated Financial Statements

 



 

Notes to the Unaudited Pro Forma Condensed Consolidated Financial Statements

 

(a)  Reflects the historical operating results of the Company as previously reported.

 

(b)  Represents the adjustments to record the effect of the Transaction.

 

(c)  Tax is calculated at a statutory tax rate of 37.2% and includes deferred tax asset valuation allowance impacts.

 

(d)  Reflects the historical financial position of the Company as previously reported.

 

(e)  Represents the effect of the contractual cash paid as a result of the Transaction.

 

(f)  Deferred Tax Asset on Gulfstream Wing Programs is offset by a full Valuation Allowance.

 

(g)  Represents the estimated loss on the transaction without regard to income tax as the company will retain the value of any income

tax benefits generated with the transaction.