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Title of each class | Trading Symbol | Name of each exchange on which registered | ||
Emerging growth company |
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. | |
☐ |
KAMAN CORPORATION | ||
By: | /s/ Shawn G. Lisle | |
Shawn G. Lisle | ||
Senior Vice President and | ||
General Counsel |
Exhibit | Description | |
99.1 | Attached | |
101.INS | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | |
101.SCH | XBRL Taxonomy Extension Schema Document | |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | |
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | |
101.LAB | XBRL Taxonomy Extension Label Linkbase Document | |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document |
NEWS RELEASE | |
Kaman Corporation | |
1332 Blue Hills Avenue Bloomfield, CT USA | |
P 860.243.7100 www.kaman.com |
• | Completed Sale of the Distribution segment for $700 million in cash |
• | Net sales from continuing operations up 16% to $183.0 million versus prior year |
• | Aerospace GAAP operating margin increased to 18.7% from 4.6% in the prior year; Adjusted operating margin* increased 570 basis points compared to the prior year period |
• | Earnings from continuing operations increased $19.6 million; Adjusted EBITDA* increased $9.7 million for an Adjusted EBITDA margin* of 14.7%, up 380 basis points over the prior year |
• | Diluted earnings per share from continuing operations increased $0.70 to $0.36 |
Table 1. Summary of Financial Results (unaudited) | |||||||||||||
In thousands except per share amounts | For the Three Months Ended | ||||||||||||
September 27, 2019 | September 28, 2018 | Change | |||||||||||
Net sales from continuing operations | $ | 182,670 | $ | 157,134 | $ | 25,536 | |||||||
Operating income from continuing operations: | |||||||||||||
Aerospace | $ | 34,142 | $ | 7,206 | $ | 26,936 | |||||||
% of sales | 18.7 | % | 4.6 | % | 14.1 | % | |||||||
Net (loss) gain on sale of assets | (416 | ) | (30 | ) | (386 | ) | |||||||
Corporate expense | (18,099 | ) | (14,174 | ) | (3,925 | ) | |||||||
Operating income from continuing operations | $ | 15,627 | $ | (6,998 | ) | $ | 22,625 | ||||||
Adjusted EBITDA*: | |||||||||||||
Earnings from continuing operations | $ | 10,130 | $ | (9,503 | ) | $ | 19,633 | ||||||
Adjustments | 16,767 | 26,661 | (9,894 | ) | |||||||||
Adjusted EBITDA* | $ | 26,897 | $ | 17,158 | $ | 9,739 | |||||||
% of sales | 14.7 | % | 10.9 | % | 3.8 | % | |||||||
Earnings per share: | |||||||||||||
Diluted earnings per share from continuing operations | $ | 0.36 | $ | (0.34 | ) | $ | 0.70 | ||||||
Adjustments | 0.10 | 0.48 | (0.38 | ) | |||||||||
Adjusted diluted earnings per share from continuing operations* | $ | 0.46 | $ | 0.14 | $ | 0.32 | |||||||
• | Aerospace: |
◦ | Sales of $740.0 million to $760.0 million |
◦ | Operating margins of 16.7% to 17.2% |
◦ | Depreciation and amortization expense of approximately $21.0 million |
Table 2. Summary of Segment Information (in thousands) (unaudited) | ||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | |||||||||||||||
September 27, 2019 | September 28, 2018 | September 27, 2019 | September 28, 2018 | |||||||||||||
Net sales from continuing operations: | ||||||||||||||||
Aerospace | $ | 182,670 | $ | 157,134 | $ | 523,816 | $ | 515,135 | ||||||||
Operating income from continuing operations: | ||||||||||||||||
Aerospace | $ | 34,142 | $ | 7,206 | $ | 85,352 | $ | 52,609 | ||||||||
Net (loss) gain on sale of assets | (416 | ) | (30 | ) | (351 | ) | 1,559 | |||||||||
Corporate expense | (18,099 | ) | (14,174 | ) | (46,430 | ) | (45,324 | ) | ||||||||
Operating income from continuing operations | $ | 15,627 | $ | (6,998 | ) | $ | 38,571 | $ | 8,844 |
Table 3. Depreciation and Amortization from continuing operations (in thousands) (unaudited) | ||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | |||||||||||||||
September 27, 2019 | September 28, 2018 | September 27, 2019 | September 28, 2018 | |||||||||||||
Depreciation and Amortization: | ||||||||||||||||
Aerospace | $ | 6,156 | $ | 6,049 | $ | 16,931 | $ | 18,561 | ||||||||
Corporate | 787 | 840 | 2,377 | 2,519 | ||||||||||||
Consolidated Total | $ | 6,943 | $ | 6,889 | $ | 19,308 | $ | 21,080 |
Table 4. Organic Sales from continuing operations (in thousands) (unaudited) | ||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | |||||||||||||||
September 27, 2019 | September 28, 2018 | September 27, 2019 | September 28, 2018 | |||||||||||||
Aerospace | ||||||||||||||||
Net sales | $ | 182,670 | $ | 157,134 | $ | 523,816 | $ | 515,135 | ||||||||
Acquisition Sales | — | — | — | — | ||||||||||||
Organic Sales | $ | 182,670 | $ | 157,134 | $ | 523,816 | $ | 515,135 |
Table 5. Adjusted EBITDA from continuing operations (in thousands) (unaudited) | ||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | |||||||||||||||
September 27, 2019 | September 28, 2018 | September 27, 2019 | September 28, 2018 | |||||||||||||
Adjusted EBITDA from continuing operations | ||||||||||||||||
Consolidated Results | ||||||||||||||||
Sales from continuing operations | $ | 182,670 | $ | 157,134 | $ | 523,816 | $ | 515,135 | ||||||||
Earnings (loss) from continuing operations | $ | 10,130 | $ | (9,503 | ) | $ | 22,341 | $ | 245 | |||||||
Interest expense, net | 4,058 | 5,084 | 14,595 | 15,407 | ||||||||||||
Income tax expense | 2,297 | 559 | 3,244 | 2,376 | ||||||||||||
Other (income) expense, net | 185 | (163 | ) | (367 | ) | (141 | ) | |||||||||
Depreciation and amortization | 6,943 | 6,889 | 19,308 | 21,080 | ||||||||||||
Other Adjustments: | ||||||||||||||||
Restructuring and severance costs | 81 | 1,214 | 553 | 4,711 | ||||||||||||
Non-cash intangible asset impairment charge | — | 10,039 | — | 10,039 | ||||||||||||
Non-cash write-off of inventory | — | 709 | — | 709 | ||||||||||||
Employee tax-related matters in foreign operations | — | 1,279 | — | 1,279 | ||||||||||||
Cost associated with corporate development activities | 2,993 | 1,051 | 2,993 | 1,051 | ||||||||||||
Costs from transition services agreement | 1,154 | — | 1,154 | — | ||||||||||||
Income from transition services agreement | (944 | ) | — | (944 | ) | — | ||||||||||
Gain on the sale of land | — | — | — | (1,520 | ) | |||||||||||
Adjustments | $ | 16,767 | $ | 26,661 | $ | 40,536 | $ | 54,991 | ||||||||
Adjusted EBITDA from continuing operations | $ | 26,897 | $ | 17,158 | $ | 62,877 | $ | 55,236 | ||||||||
Adjusted EBITDA margin | 14.7 | % | 10.9 | % | 12.0 | % | 10.7 | % |
Table 6. Free Cash Flow from continuing operations (in thousands) (unaudited) | ||||||||||||
For the Nine Months Ended | For the Six Months Ended | For the Three Months Ended | ||||||||||
September 27, 2019 | June 28, 2019 | September 27, 2019 | ||||||||||
Net cash provided by operating activities from continuing operations | $ | 11,336 | $ | 10,862 | $ | 474 | ||||||
Expenditures for property, plant & equipment | (17,411 | ) | (11,375 | ) | (6,036 | ) | ||||||
Free Cash Flow from continuing operations | $ | (6,075 | ) | $ | (513 | ) | $ | (5,562 | ) |
Table 7. Debt to Capitalization Ratio (in thousands) (unaudited) | ||||||||
September 27, 2019 | December 31, 2018 | |||||||
Current portion of long-term debt | $ | — | $ | 9,375 | ||||
Long-term debt, excluding current portion | 180,653 | 284,256 | ||||||
Debt | $ | 180,653 | $ | 293,631 | ||||
Total shareholders' equity | 788,944 | 633,157 | ||||||
Capitalization | $ | 969,597 | $ | 926,788 | ||||
Debt to Capitalization Ratio | 18.6 | % | 31.7 | % |
Table 8. Adjusted Earnings from continuing operations and Adjusted Diluted Earnings per Share from continuing operations | ||||||||||||||||
(In thousands except per share amounts) (unaudited) | ||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | |||||||||||||||
September 27, 2019 | September 28, 2018 | September 27, 2019 | September 28, 2018 | |||||||||||||
Adjustments to Earnings from Continuing Operations, pre tax | ||||||||||||||||
Restructuring and severance costs at Aerospace | $ | 81 | $ | 1,214 | $ | 553 | $ | 4,711 | ||||||||
Costs associated with corporate development activities | 2,993 | 1,051 | 2,993 | 1,051 | ||||||||||||
Costs from transition services agreement | 1,154 | — | 1,154 | — | ||||||||||||
Income from transition services agreement | (944 | ) | — | (944 | ) | — | ||||||||||
Benefit from change in state tax laws | — | — | (2,137 | ) | — | |||||||||||
Non-cash non-taxable intangible assets impairment charge | — | 10,039 | — | 10,039 | ||||||||||||
Non-cash non-taxable write-off of inventory | — | 709 | — | 709 | ||||||||||||
Employee tax-related matters in foreign operations | — | 1,279 | — | 1,279 | ||||||||||||
Gain on the sale of land | — | — | — | (1,520 | ) | |||||||||||
Adjustments, pre tax | $ | 3,284 | $ | 14,292 | $ | 1,619 | $ | 16,269 | ||||||||
Tax Effect of Adjustments to Earnings from Continuing Operations | ||||||||||||||||
Restructuring and severance costs at Aerospace | $ | 15 | $ | 304 | $ | 70 | $ | 1,178 | ||||||||
Costs associated with corporate development activities | 554 | 263 | 380 | 263 | ||||||||||||
Costs from transition services agreement | 213 | — | 147 | — | ||||||||||||
Income from transition services agreement | (175 | ) | — | (120 | ) | — | ||||||||||
Benefit from change in state tax laws | — | — | — | — | ||||||||||||
Non-cash non-taxable intangible assets impairment charge | — | — | — | — | ||||||||||||
Non-cash non-taxable write-off of inventory | — | — | — | — | ||||||||||||
Employee tax-related matters in foreign operations | — | 320 | — | 320 | ||||||||||||
Gain on the sale of land | — | — | — | (380 | ) | |||||||||||
Tax effect of Adjustments | $ | 607 | $ | 887 | $ | 477 | $ | 1,381 | ||||||||
Table 8. Adjusted Earnings from continuing operations and Adjusted Diluted Earnings per Share from continuing operations | ||||||||||||||||
(In thousands except per share amounts) (unaudited) | ||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | |||||||||||||||
September 27, 2019 | September 28, 2018 | September 27, 2019 | September 28, 2018 | |||||||||||||
Adjustments to Earnings from Continuing Operations, net of tax | ||||||||||||||||
GAAP Earnings from continuing operations, as reported | $ | 10,130 | $ | (9,503 | ) | $ | 22,341 | $ | 245 | |||||||
Restructuring and severance costs at Aerospace | 66 | 910 | 483 | 3,533 | ||||||||||||
Costs associated with corporate development activities | 2,439 | 788 | 2,613 | 788 | ||||||||||||
Costs from transition services agreement | 941 | — | 1,007 | — | ||||||||||||
Income from transition services agreement | (769 | ) | — | (824 | ) | — | ||||||||||
Benefit from change in state tax laws | — | — | (2,137 | ) | — | |||||||||||
Non-cash non-taxable intangible assets impairment charge | — | 10,039 | — | 10,039 | ||||||||||||
Non-cash non-taxable write-off of inventory | — | 709 | — | 709 | ||||||||||||
Employee tax-related matters in foreign operations | — | 959 | — | 959 | ||||||||||||
Gain on the sale of land | — | — | — | (1,140 | ) | |||||||||||
Adjusted Earnings from continuing operations | $ | 12,807 | $ | 3,902 | $ | 23,483 | $ | 15,133 | ||||||||
Calculation of Adjusted Diluted Earnings per Share from Continuing Operations | ||||||||||||||||
GAAP diluted earnings per share from continuing operations | $ | 0.36 | $ | (0.34 | ) | $ | 0.79 | $ | 0.01 | |||||||
Restructuring and severance costs at Aerospace | — | 0.03 | 0.02 | 0.13 | ||||||||||||
Costs associated with corporate development activities | 0.09 | 0.03 | 0.09 | 0.03 | ||||||||||||
Costs from transition services agreement | 0.04 | — | 0.04 | — | ||||||||||||
Income from transition services agreement | (0.03 | ) | — | (0.03 | ) | — | ||||||||||
Benefit from change in state tax laws | — | — | (0.07 | ) | — | |||||||||||
Non-cash non-taxable intangible assets impairment charge | — | 0.36 | — | 0.35 | ||||||||||||
Non-cash non-taxable write-off of inventory | — | 0.03 | — | 0.03 | ||||||||||||
Employee tax-related matters in foreign operations | — | 0.03 | — | 0.03 | ||||||||||||
Gain on the sale of land | — | — | — | (0.04 | ) | |||||||||||
Adjusted Diluted Earnings per Share from continuing operations | $ | 0.46 | $ | 0.14 | $ | 0.84 | $ | 0.54 | ||||||||
Diluted weighted average shares outstanding | 28,117 | 28,258 | 28,104 | 28,258 |
Table 9. Adjusted Net Sales and Adjusted Operating Income from Continuing Operations | ||||||||||||||||
(In thousands) (unaudited) | ||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | |||||||||||||||
September 27, 2019 | September 28, 2018 | September 27, 2019 | September 28, 2018 | |||||||||||||
AEROSPACE SEGMENT OPERATING INCOME: | ||||||||||||||||
Net Sales | $ | 182,670 | $ | 157,134 | $ | 523,816 | $ | 515,135 | ||||||||
GAAP Operating income - Aerospace segment | $ | 34,142 | $ | 7,206 | $ | 85,352 | $ | 52,609 | ||||||||
% of GAAP net sales | 18.7 | % | 4.6 | % | 16.3 | % | 10.2 | % | ||||||||
Restructuring and severance costs | $ | 81 | $ | 1,214 | $ | 553 | $ | 4,711 | ||||||||
Non-cash non-taxable intangible assets impairment charge | — | 10,039 | — | 10,039 | ||||||||||||
Non-cash non-taxable write-off of inventory | — | 709 | — | 709 | ||||||||||||
Employee tax-related matters in foreign operations | — | 1,279 | — | 1,279 | ||||||||||||
Adjusted Operating Income - Aerospace segment | $ | 34,223 | $ | 20,447 | $ | 85,905 | $ | 69,347 | ||||||||
% of GAAP net sales | 18.7 | % | 13.0 | % | 16.4 | % | 13.5 | % | ||||||||
CORPORATE EXPENSE: | ||||||||||||||||
GAAP Corporate Expense | (18,099 | ) | (14,174 | ) | (46,430 | ) | (45,324 | ) | ||||||||
Costs associated with corporate development activities | 2,993 | 1,051 | 2,993 | 1,051 | ||||||||||||
Costs from transition services agreement | 1,154 | — | 1,154 | — | ||||||||||||
Adjusted Corporate Expense | $ | (13,952 | ) | $ | (13,123 | ) | $ | (42,283 | ) | $ | (44,273 | ) | ||||
CONSOLIDATED OPERATING INCOME: | ||||||||||||||||
Net Sales from continuing operations | $ | 182,670 | $ | 157,134 | $ | 523,816 | $ | 515,135 | ||||||||
GAAP - Operating income from continuing operations | $ | 15,627 | $ | (6,998 | ) | $ | 38,571 | $ | 8,844 | |||||||
% of GAAP net sales | 8.6 | % | (4.5 | )% | 7.4 | % | 1.7 | % | ||||||||
Restructuring and severance costs | 81 | 1,214 | 553 | 4,711 | ||||||||||||
Costs associated with corporate development activities | 2,993 | 1,051 | 2,993 | 1,051 | ||||||||||||
Costs from transition services agreement | 1,154 | — | 1,154 | — | ||||||||||||
Non-cash non-taxable intangible assets impairment charge | — | 10,039 | — | 10,039 | ||||||||||||
Non-cash non-taxable write-off of inventory | — | 709 | — | 709 | ||||||||||||
Employee tax-related matters in foreign operations | — | 1,279 | — | 1,279 | ||||||||||||
Gain on sale of land | — | — | — | (1,520 | ) | |||||||||||
Adjusted Operating Income | $ | 19,855 | $ | 7,294 | $ | 43,271 | $ | 25,113 | ||||||||
% of GAAP net sales | 10.9 | % | 4.6 | % | 8.3 | % | 4.9 | % |
For the Three Months Ended | For the Nine Months Ended | |||||||||||||||
September 27, 2019 | September 28, 2018 | September 27, 2019 | September 28, 2018 | |||||||||||||
Net sales | $ | 182,670 | $ | 157,134 | $ | 523,816 | $ | 515,135 | ||||||||
Cost of sales | 121,537 | 109,446 | 355,573 | 360,826 | ||||||||||||
Gross profit | 61,133 | 47,688 | 168,243 | 154,309 | ||||||||||||
Selling, general and administrative expenses | 43,855 | 43,403 | 127,614 | 132,274 | ||||||||||||
Other intangible assets impairment | — | 10,039 | — | 10,039 | ||||||||||||
Costs from transition services agreement | 1,154 | — | 1,154 | — | ||||||||||||
Restructuring costs | 81 | 1,214 | 553 | 4,711 | ||||||||||||
Net loss (gain) on sale of assets | 416 | 30 | 351 | (1,559 | ) | |||||||||||
Operating income (loss) | 15,627 | (6,998 | ) | 38,571 | 8,844 | |||||||||||
Interest expense, net | 4,058 | 5,084 | 14,595 | 15,407 | ||||||||||||
Non-service pension and post retirement benefit income | (99 | ) | (2,975 | ) | (298 | ) | (9,043 | ) | ||||||||
Income from transition services agreement | (944 | ) | — | (944 | ) | — | ||||||||||
Other expense (income), net | 185 | (163 | ) | (367 | ) | (141 | ) | |||||||||
Earnings (loss) from continuing operations before income taxes | 12,427 | (8,944 | ) | 25,585 | 2,621 | |||||||||||
Income tax expense | 2,297 | 559 | 3,244 | 2,376 | ||||||||||||
Earnings (loss) from continuing operations | 10,130 | (9,503 | ) | 22,341 | 245 | |||||||||||
Earnings from discontinued operations before gain on disposal, net of tax | 9,860 | 10,935 | 25,240 | 30,347 | ||||||||||||
Gain on disposal of discontinued operations, net of tax | 122,786 | — | 122,786 | — | ||||||||||||
Total earnings from discontinued operations | 132,646 | 10,935 | 148,026 | 30,347 | ||||||||||||
Net earnings | $ | 142,776 | $ | 1,432 | $ | 170,367 | $ | 30,592 | ||||||||
Earnings per share: | ||||||||||||||||
Basic earnings per share from continuing operations | $ | 0.36 | $ | (0.34 | ) | $ | 0.80 | $ | 0.01 | |||||||
Basic earnings per share from discontinued operations | 4.75 | 0.39 | 5.30 | 1.08 | ||||||||||||
Basic earnings per share | $ | 5.11 | $ | 0.05 | $ | 6.10 | $ | 1.09 | ||||||||
Diluted earnings per share from continuing operations | $ | 0.36 | $ | (0.34 | ) | $ | 0.79 | $ | 0.01 | |||||||
Diluted earnings per share from discontinued operations | 4.72 | 0.39 | 5.27 | 1.07 | ||||||||||||
Diluted earnings per share | $ | 5.08 | $ | 0.05 | $ | 6.06 | $ | 1.08 | ||||||||
Average shares outstanding: | ||||||||||||||||
Basic | 27,952 | 28,009 | 27,941 | 27,944 | ||||||||||||
Diluted | 28,117 | 28,258 | 28,104 | 28,258 |
September 27, 2019 | December 31, 2018 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 509,990 | $ | 25,895 | ||||
Accounts receivable, net | 130,246 | 149,338 | ||||||
Contract assets | 119,221 | 99,261 | ||||||
Contract costs, current portion | 5,705 | 5,993 | ||||||
Inventories | 173,143 | 131,569 | ||||||
Income tax refunds receivable | 1,585 | 1,752 | ||||||
Assets held for sale, current portion | — | 351,261 | ||||||
Other current assets | 13,868 | 8,036 | ||||||
Total current assets | 953,758 | 773,105 | ||||||
Property, plant and equipment, net of accumulated depreciation of $203,787 and $192,285, respectively | 136,229 | 137,112 | ||||||
Operating right-of-use assets, net | 16,001 | — | ||||||
Goodwill | 191,218 | 196,161 | ||||||
Other intangible assets, net | 53,903 | 58,567 | ||||||
Deferred income taxes | 39,337 | 38,040 | ||||||
Contract costs, noncurrent portion | 7,820 | 10,666 | ||||||
Assets held for sale, noncurrent portion | — | 229,238 | ||||||
Other assets | 32,081 | 31,173 | ||||||
Total assets | $ | 1,430,347 | $ | 1,474,062 | ||||
Liabilities and Shareholders’ Equity | ||||||||
Current liabilities: | ||||||||
Current portion of long-term debt, net of debt issuance costs | $ | — | $ | 9,375 | ||||
Accounts payable – trade | 57,143 | 56,826 | ||||||
Accrued salaries and wages | 40,461 | 32,795 | ||||||
Contract liabilities, current portion | 35,975 | 28,865 | ||||||
Operating lease liabilities, current portion | 4,642 | — | ||||||
Income taxes payable | 58,493 | 139 | ||||||
Liabilities held for sale, current portion | — | 131,047 | ||||||
Other current liabilities | 41,859 | 39,429 | ||||||
Total current liabilities | 238,573 | 298,476 | ||||||
Long-term debt, excluding current portion, net of debt issuance costs | 180,653 | 284,256 | ||||||
Deferred income taxes | 7,182 | 7,146 | ||||||
Underfunded pension | 96,710 | 104,988 | ||||||
Contract liabilities, noncurrent portion | 55,096 | 78,562 | ||||||
Operating lease liabilities, noncurrent portion | 12,295 | — | ||||||
Liabilities held for sale, noncurrent portion | — | 15,602 | ||||||
Other long-term liabilities | 50,894 | 51,875 | ||||||
Commitments and contingencies (Note 15) | ||||||||
Shareholders' equity: | ||||||||
Preferred stock, $1 par value, 200,000 shares authorized; none outstanding | — | — | ||||||
Common stock, $1 par value, 50,000,000 shares authorized; voting; 29,850,039 and 29,544,714 shares issued, respectively | 29,850 | 29,545 | ||||||
Additional paid-in capital | 216,655 | 200,474 | ||||||
Retained earnings | 786,798 | 610,103 | ||||||
Accumulated other comprehensive income (loss) | (159,357 | ) | (134,898 | ) | ||||
Less 1,904,262 and 1,672,917 shares of common stock, respectively, held in treasury, at cost | (85,002 | ) | (72,067 | ) | ||||
Total shareholders’ equity | 788,944 | 633,157 | ||||||
Total liabilities and shareholders’ equity | $ | 1,430,347 | $ | 1,474,062 |
KAMAN CORPORATION AND SUBSIDIARIES Condensed Consolidated Statements of Cash Flows (In thousands) (unaudited) | ||||||||
For the Nine Months Ended | ||||||||
September 27, 2019 | September 28, 2018 | |||||||
Cash flows from operating activities: | ||||||||
Net earnings | $ | 170,367 | $ | 30,592 | ||||
Less: Total earnings from discontinued operations | 148,026 | 30,347 | ||||||
Earnings from continuing operations | 22,341 | 245 | ||||||
Adjustments to reconcile net earnings from continuing operations to net cash provided by operating activities of continuing operations: | ||||||||
Depreciation and amortization | 19,308 | 21,080 | ||||||
Amortization of debt issuance costs | 1,401 | 1,355 | ||||||
Accretion of convertible notes discount | 2,067 | 1,934 | ||||||
Provision for doubtful accounts | 384 | 670 | ||||||
Net loss (gain) on sale of assets | 351 | (1,559 | ) | |||||
Other intangible assets impairment | — | 10,039 | ||||||
Net loss on derivative instruments | 549 | 642 | ||||||
Stock compensation expense | 3,969 | 4,222 | ||||||
Deferred income taxes | (3,743 | ) | 8,094 | |||||
Changes in assets and liabilities, excluding effects of acquisitions/divestitures: | ||||||||
Accounts receivable | 17,650 | 67,862 | ||||||
Contract assets | (20,303 | ) | (41,033 | ) | ||||
Contract costs | 3,130 | (6,576 | ) | |||||
Inventories | (43,139 | ) | (6,698 | ) | ||||
Income tax refunds receivable | 157 | (1,268 | ) | |||||
Operating right of use assets | 2,388 | — | ||||||
Other assets | (4,020 | ) | (3,430 | ) | ||||
Accounts payable - trade | 704 | (2,720 | ) | |||||
Contract liabilities | (16,647 | ) | 95,331 | |||||
Operating lease liabilities | (2,256 | ) | — | |||||
Other current liabilities | 7,318 | 2,631 | ||||||
Income taxes payable | 15,620 | (2,526 | ) | |||||
Pension liabilities | 3,128 | (36,185 | ) | |||||
Other long-term liabilities | 979 | 992 | ||||||
Net cash provided by operating activities of continuing operations | 11,336 | 113,102 | ||||||
Net cash (used in) provided by operating activities of discontinued operations | (7,341 | ) | 14,296 | |||||
Net cash (used in) provided by operating activities | 3,995 | 127,398 |
KAMAN CORPORATION AND SUBSIDIARIES Condensed Consolidated Statements of Cash Flows (In thousands) (unaudited) | ||||||||
For the Nine Months Ended | ||||||||
September 27, 2019 | September 28, 2018 | |||||||
Cash flows from investing activities: | ||||||||
Proceeds from sale of assets | 82 | 1,666 | ||||||
Proceeds from sale of discontinued operations | 656,736 | — | ||||||
Expenditures for property, plant & equipment | (17,411 | ) | (16,623 | ) | ||||
Other, net | (3,092 | ) | (2,453 | ) | ||||
Net cash provided by (used in) investing activities of continuing operations | 636,315 | (17,410 | ) | |||||
Net cash used in investing activities of discontinued operations | (9,838 | ) | (6,222 | ) | ||||
Net cash provided by (used in) investing activities | 626,477 | (23,632 | ) | |||||
Cash flows from financing activities: | ||||||||
Net repayments under revolving credit agreements | (38,500 | ) | (89,727 | ) | ||||
Debt repayment | (76,875 | ) | (5,625 | ) | ||||
Repayment of convertible notes | (500 | ) | — | |||||
Net change in bank overdraft | 2,995 | 1,701 | ||||||
Proceeds from exercise of employee stock awards | 8,616 | 6,448 | ||||||
Purchase of treasury shares | (12,006 | ) | (11,996 | ) | ||||
Dividends paid | (16,756 | ) | (16,751 | ) | ||||
Other, net | (1,092 | ) | (729 | ) | ||||
Net cash used in financing activities of continuing operations | (134,118 | ) | (116,679 | ) | ||||
Net cash provided by financing activities of discontinued operations | 7,967 | 2,968 | ||||||
Net cash used in financing activities | (126,151 | ) | (113,711 | ) | ||||
Net increase (decrease) in cash and cash equivalents | 504,321 | (9,945 | ) | |||||
Cash and cash equivalents included of discontinued operations | (21,834 | ) | (1,929 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents | (208 | ) | (737 | ) | ||||
Cash and cash equivalents at beginning of period | 27,711 | 36,904 | ||||||
Cash and cash equivalents at end of period | $ | 509,990 | $ | 24,293 | ||||
Supplemental disclosure of noncash activities: | ||||||||
Value of common shares issued for unwind of warrant transactions | $ | — | $ | 7,583 |
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Document Entity Information Document |
Nov. 04, 2019 |
---|---|
Document Entity Information [Abstract] | |
Document Type | 8-K |
Document Period End Date | Nov. 04, 2019 |
Entity Registrant Name | KAMAN CORPORATION |
Entity Incorporation, State or Country Code | CT |
Entity File Number | 001-35419 |
Entity Tax Identification Number | 06-0613548 |
Entity Address, Address Line One | 1332 Blue Hills Avenue, |
Entity Address, City or Town | Bloomfield, |
Entity Address, State or Province | CT |
Entity Address, Postal Zip Code | 06002 |
City Area Code | (860) |
Local Phone Number | 743-7100 |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Title of 12(b) Security | Common Stock ($1 par value) |
Trading Symbol | KAMN |
Security Exchange Name | NYSE |
Entity Emerging Growth Company | false |
Entity Central Index Key | 0000054381 |
Amendment Flag | false |