UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
(Amendment No. 1)
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Securities registered pursuant to Section 12(b) of the Act:
Title of each class | Trading symbol | Name of each exchange on which registered | ||
SPIRIT PROPRIETARY
Item 2.02 | Results of Operations and Financial Condition. |
On February 6, 2024, Spirit AeroSystems Holdings, Inc. (the “Company”) issued a press release announcing its financial results for the three and twelve month periods ended December 31, 2023. A copy of the press release was furnished as Exhibit 99.1 to a Current Report on Form 8-K filed by the Company on February 6, 2024 (the “Original Form 8-K”). This Amendment No. 1 on Form 8-K/A (this “Amendment”) is being filed to amend Item 2.02 of the Original Form 8-K, solely for the purpose of correcting certain errors related to the Company’s estimate of certain forward losses on the A350 program for the three and twelve month periods ended December 31, 2023, as described below. Except as described below, this Amendment does not modify or update any other disclosure contained in or furnished with the Original Form 8-K and this Amendment should be read in conjunction therewith.
· To correct errors identified after the press release was furnished in connection with the Original Form 8-K, we are revising the information we provided in the press release we issued on February 6, 2024. The corrected items are presented in the financial statements below (with original reported items struck and the corrected items in bold type).
Spirit AeroSystems Holdings, Inc.
Condensed Consolidated Statements of Operations
(unaudited)
For the Three Months Ended | For the Twelve Months Ended | |||||||||||||||
December 31, 2023 | December 31, 2022 | December 31, 2023 | December 31, 2022 | |||||||||||||
( $ in millions, except per share data) | ||||||||||||||||
Net revenues | $ | 1,812.9 | $ | 1,320.1 | $ | 6,047.9 | $ | 5,029.6 | ||||||||
Operating costs and expenses: | ||||||||||||||||
Cost of sales | 1,521.5 1,538.3 | 1,369.6 | 5,481.7 5,858.5 | 4,981.0 | ||||||||||||
Selling, general and administrative | 64.7 64.6 | 75.4 | 281.9 281.8 | 279.2 | ||||||||||||
Restructuring costs | - | - | 7.2 | 0.2 | ||||||||||||
Research and development | 11.5 | 13.9 | 45.4 | 50.4 | ||||||||||||
Other operating expense | 0.2 | - | 5.9 | - | ||||||||||||
Total operating costs and expenses | 1,597.9 1,614.6 | 1,458.9 | 6,182.1 6,198.8 | 5,310.8 | ||||||||||||
Operating income (loss) | 215.0 198.3 | (138.8 | ) | (134.2) (150.9) | (281.2 | ) | ||||||||||
Interest expense and financing fee amortization | (97.6 | ) | (73.3 | ) | (318.7 | ) | (244.1 | ) | ||||||||
Other expense, net | (20.4 | ) | (44.3 | ) | (140.4 | ) | (14.1 | ) | ||||||||
Income (loss) before income taxes and equity in net loss of affiliates | 97.0 80.3 | (256.4 | ) | (593.3) (610.0) | (539.4 | ) | ||||||||||
Income tax benefit (provision) | (21.4 | ) | 13.2 | (22.5 | ) | (5.2 | ) | |||||||||
Income (loss) before equity in net loss of affiliates | 75.6 58.9 | (243.2 | ) | (615.8) (632.5) | (544.6 | ) | ||||||||||
Equity in net loss of affiliates | (0.1 | ) | (0.4 | ) | (0.3 | ) | (1.6 | ) | ||||||||
Net income (loss) | $ | 75.5 $58.8 | $ | (243.6 | ) | $ | (616.1) ($632.8) | $ | (546.2 | ) | ||||||
Less noncontrolling interest in earnings of subsidiary | $ | (0.1 | ) | $ | 0.5 | $ | (0.1 | ) | $ | 0.5 | ||||||
Net income (loss) attributable to common shareholders | $ | 75.4 $58.7 | $ | (243.1 | ) | $ | (616.2) ($632.9) | $ | (545.7 | ) | ||||||
Income (loss) per share | ||||||||||||||||
Basic | $ | 0.68 $0.53 | $ | (2.32 | ) | $ | (5.78) ($5.94) | $ | (5.21 | ) | ||||||
Shares | 111.0 | 104.8 | 106.6 | $ | 104.6 | |||||||||||
Diluted | $ | 0.66 $0.52 | $ | (2.32 | ) | $ | (5.78) ($5.94) | $ | (5.21 | ) | ||||||
Shares | 116.2 | 104.8 | 106.6 | $ | 104.6 | |||||||||||
Dividends declared per common share | $ | 0.00 | $ | 0.00 | $ | 0.00 | $ | 0.03 |
SPIRIT PROPRIETARY
Spirit AeroSystems Holdings, Inc.
Condensed Consolidated Balance Sheets
(unaudited)
December 31, 2023 | December 31, 2022 | |||||||
($ in millions) | ||||||||
Assets | ||||||||
Cash and cash equivalents | $ | 823.5 | $ | 658.6 | ||||
Restricted cash | 0.1 | 0.2 | ||||||
Accounts receivable, net | 585.5 | 489.5 | ||||||
Contract assets, short-term | 522.9 | 501.0 | ||||||
Inventory, net | 1,767.3 | 1,470.7 | ||||||
Other current assets | 52.5 | 38.3 | ||||||
Total current assets | 3,751.8 | 3,158.3 | ||||||
Property, plant and equipment, net | 2,084.2 | 2,205.9 | ||||||
Intangible assets, net | 196.2 | 211.4 | ||||||
Goodwill | 631.2 | 630.5 | ||||||
Right of use assets | 92.1 | 94.3 | ||||||
Contract assets, long-term | - | 1.2 | ||||||
Pension assets | 33.5 | 196.9 | ||||||
Restricted plan assets | 61.1 | 71.1 | ||||||
Deferred income taxes | 0.1 | 4.8 | ||||||
Other assets | 99.9 | 91.8 | ||||||
Total assets | $ | 6,950.1 | $ | 6,666.2 | ||||
Liabilities | ||||||||
Accounts payable | $ | 1,106.8 | $ | 919.8 | ||||
Accrued expenses | 420.1 | 411.7 | ||||||
Profit sharing | 15.7 | 40.5 | ||||||
Current portion of long-term debt | 64.8 | 53.7 | ||||||
Operating lease liabilities, short-term | 9.1 | 8.3 | ||||||
Advance payments, short-term | 38.3 | 24.9 | ||||||
Contract liabilities, short-term | 192.6 | 111.1 | ||||||
Forward loss provision, short-term | 256.6 | 305.9 | ||||||
Deferred revenue and other deferred credits, short-term | 49.6 | 21.7 | ||||||
Other current liabilities | 44.7 | 54.9 | ||||||
Total current liabilities | 2,198.3 | 1,952.5 | ||||||
Long-term debt | 4,018.7 | 3,814.9 | ||||||
Operating lease liabilities, long-term | 84.3 | 85.4 | ||||||
Advance payments, long-term | 301.9 | 199.9 | ||||||
Pension/OPEB obligation | 30.3 | 25.2 | ||||||
Contract Liabilities, long-term | 161.3 | 245.3 | ||||||
Forward loss provision, long-term | 224.1 240.9 | 369.2 | ||||||
Deferred revenue and other deferred credits, long-term | 76.7 | 49.0 | ||||||
Deferred grant income liability - non-current | 25.8 | 25.7 | ||||||
Deferred income taxes | 9.1 | 1.3 | ||||||
Other non-current liabilities | 315.5 315.6 | 141.6 | ||||||
Equity | ||||||||
Common stock, Class A par value $0.01, 200,000,000 shares authorized, 116,054,291 and 105,252,421 shares issued and outstanding, respectively | 1.2 | 1.1 | ||||||
Additional paid-in capital | 1,429.1 | 1,179.5 | ||||||
Accumulated other comprehensive loss | (89.6) (89.7) | (203.9 | ) | |||||
Retained earnings | 616.3 599.4 | 1,232.5 | ||||||
Treasury stock, at cost (41,587,480 shares each period, respectively) | (2,456.7 | ) | (2,456.7 | ) | ||||
Total shareholders’ equity | (499.7) (516.7) | (247.5 | ) | |||||
Noncontrolling interest | 3.8 3.9 | 3.7 | ||||||
Total equity | (495.9) (512.8) | (243.8 | ) | |||||
Total liabilities and equity | $ | 6,950.1 | $ | 6,666.2 |
SPIRIT PROPRIETARY
Spirit AeroSystems Holdings, Inc.
Condensed Consolidated Statements of Cash Flows
(unaudited)
For the Twelve Months Ended | ||||||||
December 31, 2023 | December 31, 2022 | |||||||
($ in millions) | ||||||||
Operating activities | ||||||||
Net loss | $ | (616.1) ($632.8) | $ | (546.2 | ) | |||
Adjustments to reconcile net loss to net cash used in operating activities | ||||||||
Depreciation and amortization expense | 315.6 | 337.1 | ||||||
Amortization of deferred financing fees | 12.6 | 11.9 | ||||||
Accretion of customer supply agreement | 2.6 | 2.2 | ||||||
Employee stock compensation expense | 29.2 | 36.6 | ||||||
Loss on extinguishment of debt | 11.8 | 2.6 | ||||||
(Gain) loss from derivative instruments | (0.5 | ) | 17.1 | |||||
Loss (gain) from foreign currency transactions | 7.5 | (18.9 | ) | |||||
Loss on disposition of assets | 6.9 | 1.1 | ||||||
Deferred taxes | 18.1 | 8.5 | ||||||
Pension and other post-retirement plans expense | 55.1 | 37.1 | ||||||
Grant liability amortization | (1.1 | ) | (1.5 | ) | ||||
Equity in net loss of affiliates | 0.3 | 1.6 | ||||||
Forward loss provision | (194.9) (178.5) | (89.7 | ) | |||||
Gain on settlement of financial instrument | (1.8 | ) | (21.9 | ) | ||||
Change in fair value of acquisition consideration and settlement | (2.4 | ) | - | |||||
Changes in assets and liabilities | ||||||||
Accounts receivable, net | (96.6 | ) | (39.4 | ) | ||||
Contract assets | (18.0 | ) | (63.9 | ) | ||||
Inventory, net | (295.1 | ) | (118.2 | ) | ||||
Accounts payable and accrued liabilities | 213.8 | 220.7 | ||||||
Profit sharing/deferred compensation | (25.0 | ) | (22.5 | ) | ||||
Advance payments | 114.1 | (133.2 | ) | |||||
Income taxes receivable/payable | (3.4 | ) | 9.5 | |||||
Contract liabilities | (3.0 | ) | (30.4 | ) | ||||
Pension plans employer contributions | 186.6 | 19.5 | ||||||
Deferred revenue and other deferred credits | 53.6 | (14.4 | ) | |||||
Other | 4.3 | 0.1 | ||||||
Net cash used in operating activities | $ | (225.8) ($226.1) | $ | (394.6 | ) | |||
Investing activities | ||||||||
Purchase of property, plant and equipment | (148.0 | ) | (121.6 | ) | ||||
Acquisition, net of cash acquired | - | (31.3 | ) | |||||
Other | 0.2 | (2.6 | ) | |||||
Net cash used in investing activities | $ | (147.8 | ) | $ | (155.5 | ) | ||
Financing activities | ||||||||
Proceeds from issuance of debt | 242.7 | - | ||||||
Proceeds from issuance of long term bonds | 1,200.0 | 900.0 | ||||||
Proceeds from issuance of common stock, net | 220.7 | - | ||||||
Borrowings under revolving credit facility | 5.4 | - | ||||||
Payment on revolving credit facility | (0.6 | ) | - | |||||
Payment of principal - settlement of financial instrument | - | (289.5 | ) | |||||
Customer Financing | 180.0 | - | ||||||
Principal payments of debt | (64.1 | ) | (47.6 | ) | ||||
Payments on term loans | (5.9 | ) | (6.0 | ) | ||||
Payments on bonds | (1,200.0 | ) | (779.2 | ) | ||||
Payment of acquisition consideration | (6.0 | ) | - | |||||
Taxes paid related to net share settlement awards | (6.6 | ) | (7.2 | ) | ||||
Proceeds from issuance of ESPP stock | 6.3 | 3.9 | ||||||
Debt issuance and financing costs | (28.5 | ) | (32.3 | ) | ||||
Dividends paid | - | (4.2 | ) | |||||
Proceeds from noncontrolling interest | - | 3.7 | ||||||
Payment of debt extinguishment costs | (11.8 | ) | (2.6 | ) | ||||
Net cash used in financing activities | $ | 531.6 | $ | (261.0 | ) | |||
Effect of exchange rate changes on cash and cash equivalents | 9.5 9.8 | (8.9 | ) | |||||
Net increase (decrease) in cash, cash equivalents and restricted cash for the period | $ | 167.5 | $ | (820.0 | ) | |||
Cash, cash equivalents, and restricted cash, beginning of the period | 678.4 | 1,498.4 | ||||||
Cash, cash equivalents, and restricted cash, end of the period | $ | 845.9 | $ | 678.4 |
SPIRIT PROPRIETARY
These errors have been corrected in the corresponding information in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023, filed on February 22, 2024.
The information in Item 2.02 of this Current Report on Form 8-K/A shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities under that Section, nor shall it be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such filing. This Current Report on Form 8-K/A should be read in conjunction with the Original Form 8-K.
SPIRIT PROPRIETARY
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
SPIRIT AEROSYSTEMS HOLDINGS, INC. | |
February 22, 2024 | /s/ Mark J. Suchinski |
Mark J. Suchinski | |
Senior Vice President and Chief Financial Officer |
Cover |
Feb. 06, 2024 |
---|---|
Cover [Abstract] | |
Document Type | 8-K/A |
Amendment Flag | false |
Document Period End Date | Feb. 06, 2024 |
Entity File Number | 001-33160 |
Entity Registrant Name | Spirit AeroSystems Holdings, Inc. |
Entity Central Index Key | 0001364885 |
Entity Tax Identification Number | 20-2436320 |
Entity Incorporation, State or Country Code | DE |
Entity Address, Address Line One | 3801 South Oliver |
Entity Address, City or Town | Wichita |
Entity Address, State or Province | KS |
Entity Address, Postal Zip Code | 67210 |
City Area Code | 316 |
Local Phone Number | 526-9000 |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Title of 12(b) Security | Class A common stock, par value $0.01 per share |
Trading Symbol | SPR |
Security Exchange Name | NYSE |
Entity Emerging Growth Company | false |
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