0000912057-01-536620.txt : 20011030
0000912057-01-536620.hdr.sgml : 20011030
ACCESSION NUMBER: 0000912057-01-536620
CONFORMED SUBMISSION TYPE: 8-K
PUBLIC DOCUMENT COUNT: 2
CONFORMED PERIOD OF REPORT: 20011025
ITEM INFORMATION: Other events
ITEM INFORMATION: Financial statements and exhibits
FILED AS OF DATE: 20011025
FILER:
COMPANY DATA:
COMPANY CONFORMED NAME: HEXCEL CORP /DE/
CENTRAL INDEX KEY: 0000717605
STANDARD INDUSTRIAL CLASSIFICATION: ABRASIVE ASBESTOS & MISC NONMETALLIC MINERAL PRODUCTS [3290]
IRS NUMBER: 941109521
STATE OF INCORPORATION: DE
FISCAL YEAR END: 1231
FILING VALUES:
FORM TYPE: 8-K
SEC ACT: 1934 Act
SEC FILE NUMBER: 001-08472
FILM NUMBER: 1766250
BUSINESS ADDRESS:
STREET 1: 11711 DUBLIN RD
CITY: DUBLIN
STATE: CA
ZIP: 94568
BUSINESS PHONE: 925551-4900
MAIL ADDRESS:
STREET 1: 281 TRESSER BLVD.
STREET 2: TWO STAMFORD PLAZA, 16TH FLOOR
CITY: STAMFORD
STATE: CT
ZIP: 06901-8781
8-K
1
a2061820z8-k.txt
8-K
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
October 25, 2001 (October 23, 2001)
--------------------------------------
Date of report (Date of earliest event reported)
Hexcel Corporation
-------------------------------------------
(Exact Name of Registrant as Specified in Charter)
Delaware 1-8472 94-1109521
-----------------------------------------------------------------------------------
(State of Incorporation) (Commission File No.) (IRS Employer Identification No.)
Two Stamford Plaza
281 Tresser Boulevard
Stamford, Connecticut 06901-3238
------------------------------------------------------
(Address of Principal Executive Offices and Zip Code)
(203) 969-0666
--------------------------------------------------
(Registrant's telephone number, including area code)
N/A
-----------------------------------------------------------
(Former Name or Former Address, if Changed Since Last Report)
Item 5. OTHER EVENTS.
A copy of the press release issued by Hexcel Corporation, a Delaware
corporation (the "Company"), on October 23, 2001 is filed as Exhibit
99.1 to this Current Report and is incorporated herein by reference.
Item 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS.
(c) Exhibits
99.1 Press Release issued by the Company on October 23, 2001.
2
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.
HEXCEL CORPORATION
October 25, 2001
/s/ William J. Fazio
------------------------
William J. Fazio
Corporate Controller and
Chief Accounting Officer
3
Exhibit Index
EXHIBIT NO. DESCRIPTION
99.1 Press Release issued by the Company on
October 23, 2001.
4
EX-99.1
3
a2061820zex-99_1.txt
EXHIBIT 99.1
Page>
Exhibit 99.1
[HEXCEL LOGO]
================================================================================
NEWS RELEASE
--------------------------------------------------------------------------------
Hexcel Corporation, 281 Tresser Boulevard, Stamford, CT 06901 (203) 969-0666
--------------------------------------------------------------------------------
CONTACT: INVESTORS:
STEPHEN C. FORSYTH
(203) 969-0666 EXT. 425
STEPHEN.FORSYTH@HEXCEL.COM
MEDIA:
MICHAEL BACAL
(203) 969-0666 EXT. 426
MICHAEL.BACAL@HEXCEL.COM
HEXCEL REPORTS 2001 THIRD QUARTER RESULTS
HIGHLIGHTS:
o ADJUSTED EBITDA FOR THE THIRD QUARTER $27.0 MILLION
o REVENUES FROM COMMERCIAL AEROSPACE, SPACE & DEFENSE AND INDUSTRIAL
APPLICATIONS CONTINUE TO SHOW YEAR ON YEAR GROWTH
o ELECTRONICS REVENUES REMAINED AT DEPRESSED LEVELS SEEN IN THE SECOND
QUARTER
o NET DEBT WAS REDUCED BY $26.6 MILLION IN THE THIRD QUARTER
--------------------------------------------------------------------------------
QUARTER ENDED SEPTEMBER 30,
---------------------------
(IN MILLIONS, EXCEPT PER SHARE DATA) 2001 2000
--------------------------------------------------------------------------------
Sales $ 240.6 $ 247.5
Gross margin % 18.2% 20.9%
Adjusted operating income (a) $ 11.6 $ 16.9
Adjusted operating income % (a) 4.8% 6.8%
Adjusted EBITDA (b) $ 27.0 $ 31.0
Provision for (benefit from) income taxes (c) $ 3.0 $ (0.8)
Equity in earnings (losses) of affiliated companies $ (1.0) $ 1.7
Net income (loss) $ (12.8) $ 0.1
Diluted net income (loss) per share $ (0.34) $ 0.0
================================================================================
(a) Excludes business consolidation expenses.
(b) Excludes business consolidation expenses, interest, taxes,
depreciation, amortization, and equity in earnings (losses) of
affiliated companies.
(c) 2001 third quarter results reflect tax provision on European earnings
with no benefit taken for U.S. operating losses.
1
STAMFORD, CT. October 23, 2001 - Hexcel Corporation (NYSE/PCX: HXL) today
reported results for the third quarter of 2001. Net loss for the 2001 third
quarter was $12.8 million, or $0.34 per diluted share, compared to net income of
$0.1 million, or $0.0 per diluted share for the third quarter of 2000. Excluding
business consolidation expenses, the Company's pretax loss for the 2001 third
quarter was $4.4 million. This compares to pretax income, excluding business
consolidation expenses, of $0.9 million in the third quarter of 2000.
Adjusted EBITDA for the third quarter of 2001 was $27.0 million versus $31.0
million for the third quarter of 2000. Adjusted EBITDA for 2001 year to date was
$99.3 million versus $106.9 million for 2000 year to date on a pro forma basis.
Pro forma results give effect to the April 26, 2000 sale of the Bellingham
aircraft interiors business as if the transaction had occurred on January 1,
2000.
REVENUE TRENDS
Year on year revenue of Hexcel's aerospace, space and defense and industrial
segments grew in aggregate by $23.6 million in the quarter. However, this growth
could not offset the $30.5 million decline in revenues from the Company's
electronics segment for the same period. As a result, consolidated revenue for
the third quarter of 2001 of $240.6 million was 3% lower than 2000 third quarter
revenue of $247.5 million. Had the same U.S. dollar, British pound and Euro
exchange rates applied in the third quarter of 2001 as in the third quarter of
2000, revenue for the 2001 quarter would have been $239.9 million.
2
o COMMERCIAL AEROSPACE. Sales of composite materials and engineered products
to Airbus, Boeing and regional aircraft producers remained robust during
the quarter. Revenue for the 2001 third quarter was $130.4 million, 13%
higher than 2000 third quarter revenue of $115.2 million. Year on year
revenue growth continued primarily from higher aircraft build rates. Only a
small amount of the Company's revenues come from aircraft spares and
servicing.
o SPACE & DEFENSE. Revenue for the 2001 third quarter of $33.4 million was
$1.5 million or 5% higher than revenue for the third quarter of 2000. While
revenues may vary quarter to quarter, sales associated with military
aircraft and helicopters continue to trend upwards as the new generation of
military aircraft in the United States and Europe ramp up in production.
o ELECTRONICS. Sales for the 2001 third quarter were $14.2 million, down 68%
from the third quarter of 2000. The 2001 third quarter continued to reflect
the impact of the severe industry downturn and inventory correction working
through the global electronics market, as well as the traditional third
quarter decline associated with the European holiday period. After allowing
for the seasonal effects of the European summer holiday period, as
expected, third quarter electronics revenues remained at the same depressed
levels seen in May and June.
In light of this continued weakness, Hexcel initiated additional cost reduction
actions in July. These actions built upon earlier steps to furlough employees,
idle manufacturing capacity and cut non-essential expenditures, by effecting a
reduction in work force of approximately 275 employees in the Company's
reinforcement products business and elsewhere in the Company.
3
These actions resulted in business consolidation expenses of approximately $4.0
million for the quarter and are estimated to produce annualized savings of
approximately $6.0 million.
o INDUSTRIAL MARKETS. Sales were $62.6 million in the 2001 third quarter
compared to $55.7 million in the third quarter of 2000. The 12% increase in
revenue year over year is evident in both the Company's reinforcement
products and composite materials segments and reflects, among other things,
continued strength in soft body armor and wind energy applications.
GROSS MARGIN AND ADJUSTED OPERATING INCOME
Gross margin for the third quarter of 2001 was $43.8 million, or 18.2% of sales,
compared with $51.7 million, or 20.9% of sales for the third quarter of 2000.
Adjusted operating income for the 2001 third quarter was $11.6 million, or 4.8%
of sales, compared to $16.9 million, or 6.8% of sales for the 2000 third
quarter.
The 2.7% reduction in gross margin as a percentage of sales compared to the 2000
third quarter resulted from the unprecedented reduction in sales of electronic
glass fabrics. While the Company has significantly reduced costs in this
business, it has not to date been able to reduce fixed costs pro-rata to the
change in sales given the magnitude of the shortfall in revenues. With revenues
of just $14.2 million, Hexcel incurred a small EBITDA loss on its sales to
electronics applications in the third quarter. Gross margins earned by the
Company's composite materials and engineered products business segments as a
percent of sales were comparable to those earned in the 2000 third quarter.
4
CHIEF EXECUTIVE OFFICER COMMENTS
Commenting on Hexcel's third quarter results, Mr. David Berges, Chairman and
Chief Executive Officer, said, "The third quarter came in as the Company had
anticipated in July. Hexcel saw continued year on year growth in three of its
four core markets. Its fourth market, electronics, was down over 65% compared to
the prior year for the second quarter in a row. More costs were taken out as
projected, but not enough to negate the impact of the decline. The Company did
achieve its targeted moderate reduction in net debt in the quarter through
working capital reductions and controlling its capital spending."
Mr. Berges continued, "The events of September 11, 2001 have changed the outlook
for our business and challenges management to redefine our business model. On
October 3, we published our preliminary post-September 11 revenue outlook for
each of the market segments we serve. Gradually we are getting a better
understanding of how our revenues are likely to change in the coming months and
quarters. We expect we will begin to see a decline in commercial aerospace
revenues before the fourth quarter ends. Our business teams and corporate staff
are developing their plans to right-size the Company to the new realities. We
will announce and commence implementation of these activities in the fourth
quarter."
Mr. Berges concluded, "Hexcel is committed to remaining the leading supplier of
advanced structural materials. Our customers continue to desire more composites
with each new generation of their products, and we intend to support their
needs. The task at hand is one of understanding the post-September 11 near term
sales outlook and aligning our cost structure accordingly. In addition to cost,
we also are targeting to manage our cash flow and take
5
advantage of the reduced working capital and capital expenditures this
diminished sales outlook will require."
TAXES
As previously disclosed at the time of our second quarter earnings release,
Hexcel is establishing a non-cash valuation allowance against the benefits of
its net U.S. operating losses until such time as these operations have returned
to consistent profitability. As a result, the Company's tax provision of $3.0
million in the third quarter 2001 was for taxes on European income.
EQUITY IN LOSSES
The equity in losses of affiliated companies was $1.0 million for the third
quarter 2001, reflecting the on-going impact of the electronics market decline
on the Company's Asian reinforcement products joint venture and start-up losses
associated with the engineered products ventures in China and Malaysia. The
Company anticipates reporting comparable equity in losses in the fourth quarter.
These losses by our affiliates do not affect the Company's cash flows.
DEBT AND CASH FLOW
The Company's total debt, net of cash, decreased by $26.6 million to $677.6
million as of September 30, 2001 compared to June 30, 2001. The reduction in net
debt in the quarter resulted from the benefits of working capital reductions and
controlling capital spending. Unused borrowing capacity under the Company's
senior credit facility as of September 30, 2001 was approximately $99.0 million.
After giving effect to the most restrictive financial covenant under that
facility, the Company could draw up to $32.0 million of that amount as of the
end of the third quarter.
6
The Company will be holding a conference call at 11:00 A.M. today to discuss its
third quarter results. The call will be available in the investor information
section of Hexcel's web site (WWW.HEXCEL.COM).
YEAR-TO-DATE RESULTS
--------------------------------------------------------------------------------
NINE MONTHS ENDED SEPTEMBER 30,
-------------------------------
--------------------------------------------------------------------------------
(IN MILLIONS, EXCEPT PER SHARE DATA) 2001 2000
--------------------------------------------------------------------------------
PRO FORMA (a):
Sales $ 770.3 $ 779.8
Adjusted EBITDA (b) $ 99.3 $ 106.9
--------------------------------------------------------------------------------
AS REPORTED:
Sales $ 770.3 $ 798.8
Gross margin % 20.2% 21.8%
Adjusted operating income (c) $ 53.2 $ 63.9
Adjusted operating income % (c) 6.9% 8.0%
Adjusted EBITDA (b) $ 99.3 $ 107.8
Provision for income taxes (d) $ 9.0 $ 26.8
Equity in earnings of affiliated companies $ 0.6 $ 3.9
Extraordinary loss on early retirement of debt $ 3.1 --
Net income (loss) $ (19.9) $ 53.2
Diluted net income (loss) per share $ (0.53) $ 1.28
================================================================================
(a) Pro forma results give effect to the April 26, 2000 sale of the
Bellingham aircraft interiors business as if the transaction had
occurred on January 1, 2000.
(b) Excludes business consolidation expenses, compensation expenses
associated with the former CEO's retirement, the gain from the April
2000 sale of the Bellingham aircraft interiors business, interest,
taxes, depreciation, amortization, and equity in earnings of affiliated
companies.
(c) Excludes business consolidation expenses, compensation expenses
associated with the former CEO's retirement, and the gain from the sale
of the Bellingham aircraft interiors business.
(d) 2001 reflects the impact of a reduced tax benefit from U.S. operating
losses. 2000 includes approximately $24.0 million of provision for
income taxes on the April 2000 gain from the sale of the Bellingham
aircraft interiors business.
*****
Hexcel Corporation is the world's leading advanced structural materials
company. It develops, manufactures and markets lightweight, high-performance
reinforcement products, composite materials and engineered products for use
in commercial aerospace, space and defense, electronics, and industrial
applications.
7
DISCLAIMER ON FORWARD LOOKING STATEMENTS
--------------------------------------------------------------------------------
This press release contains statements that are forward looking, including
statements relating to market conditions (including commercial and military
aircraft build rates and demand for electronics and industrial products), sales
volumes, cost reductions together with their associated improvements, EBITDA,
equity in earnings of joint ventures and debt reduction. These statements are
not projections or assured results. Actual results may differ materially from
the results anticipated in the forward looking statements due to a variety of
factors, including but not limited to, changing market conditions, increased
competition, product mix, inability to achieve planned manufacturing
improvements and cost reductions, and changes in currency exchange rates.
Additional risk factors are described in the Company's filings with the SEC. The
Company does not undertake an obligation to update its forward-looking
statements to reflect future events or circumstances.
--------------------------------------------------------------------------------
8
HEXCEL CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
----------------------------------------------------------------------------------------------------------
UNAUDITED
--------------------------------------------------------
QUARTER ENDED SEPT. 30, NINE MONTHS ENDED SEPT. 30,
(IN MILLIONS, EXCEPT PER SHARE DATA) 2001 2000 2001 2000
----------------------------------------------------------------------------------------------------------
Net sales $ 240.6 $ 247.5 $ 770.3 $ 798.8
Cost of sales 196.8 195.8 614.7 624.4
----------------------------------------------------------------------------------------------------------
Gross margin 43.8 51.7 155.6 174.4
Selling, general and administrative expenses 27.7 29.8 93.1 93.9
Research and technology expenses 4.5 5.0 14.0 16.6
Business consolidation expenses 4.4 3.3 7.3 4.5
----------------------------------------------------------------------------------------------------------
Operating income 7.2 13.6 41.2 59.4
Gain on sale of Bellingham business -- -- -- 68.3
Interest expense 16.0 16.0 49.6 51.6
----------------------------------------------------------------------------------------------------------
Income (loss) before income taxes (8.8) (2.4) (8.4) 76.1
Provision for (benefit from) income taxes 3.0 (0.8) 9.0 26.8
----------------------------------------------------------------------------------------------------------
Income (loss) before equity in earnings (11.8) (1.6) (17.4) 49.3
Equity in earnings (losses) of affiliated companies (1.0) 1.7 0.6 3.9
----------------------------------------------------------------------------------------------------------
Income (loss) before extraordinary item (12.8) 0.1 (16.8) 53.2
Extraordinary loss on early retirement of debt -- -- 3.1 --
----------------------------------------------------------------------------------------------------------
Net income (loss) $ (12.8) $ 0.1 $ (19.9) $ 53.2
==========================================================================================================
Net income (loss) per share:
Basic:
Income (loss) before extraordinary item $ (0.34) $ 0.00 $ (0.45) $ 1.45
Extraordinary loss on early retirement of debt -- -- (0.08) --
----------------------------------------------------------------------------------------------------------
Net income (loss) $ (0.34) $ 0.00 $ (0.53) $ 1.45
==========================================================================================================
Diluted:
Income (loss) before extraordinary item $ (0.34) $ 0.00 $ (0.45) $ 1.28
Extraordinary loss on early retirement of debt -- -- (0.08) --
----------------------------------------------------------------------------------------------------------
Net income (loss) $ (0.34) $ 0.00 $ (0.53) $ 1.28
==========================================================================================================
Diluted income (loss) before extraordinary item,
excluding goodwill amortization $ (0.26) $ 0.06 $ (0.27) $ 1.42
Weighted average shares: (a)
Basic 37.5 36.9 37.5 36.7
Diluted 37.5 38.0 37.5 45.3
==========================================================================================================
(a) The Company's convertible subordinated notes, due 2003, and its convertible
subordinated debentures, due 2011, were excluded from the computations of net
income per diluted share, as they were anti-dilutive. In addition, stock options
were excluded from the 2001 computations due to their anti-dilutive impact.
9
HEXCEL CORPORATION AND SUBSIDIARIES
NET SALES TO THIRD-PARTY CUSTOMERS BY PRODUCT GROUP AND MARKET SEGMENT
-------------------------------------------------------------------------------------------
UNAUDITED
----------------------------------------------------------
COMMERCIAL SPACE &
(IN MILLIONS) AEROSPACE DEFENSE ELECTRONICS INDUSTRIAL TOTAL
-------------------------------------------------------------------------------------------
THIRD QUARTER 2001 NET SALES
Reinforcement products $ 15.9 $ 3.3 $ 14.2 $ 29.5 $ 62.9
Composite materials 88.4 26.5 -- 33.1 148.0
Engineered products 26.1 3.6 -- -- 29.7
-------------------------------------------------------------------------------------------
Total $ 130.4 $ 33.4 $ 14.2 $ 62.6 $ 240.6
54% 14% 6% 26% 100%
-------------------------------------------------------------------------------------------
SECOND QUARTER 2001 NET SALES
Reinforcement products $ 16.2 $ 3.1 $ 16.5 $ 28.4 $ 64.2
Composite materials 95.5 25.2 -- 35.5 156.2
Engineered products 29.3 3.8 -- -- 33.1
-------------------------------------------------------------------------------------------
Total $ 141.0 $ 32.1 $ 16.5 $ 63.9 $ 253.5
56% 13% 6% 25% 100%
-------------------------------------------------------------------------------------------
THIRD QUARTER 2000 NET SALES
Reinforcement products $ 14.3 $ 2.6 $ 44.7 $ 26.8 $ 88.4
Composite materials (1) 77.0 27.2 -- 28.9 133.1
Engineered products 23.9 2.1 -- -- 26.0
-------------------------------------------------------------------------------------------
Total $ 115.2 $ 31.9 $ 44.7 $ 55.7 $ 247.5
47% 13% 18% 22% 100%
===========================================================================================
(1) 2000 has been restated for comparative purposes.
SEGMENT DATA
---------------------------------------------------------------------------------------------------
UNAUDITED
--------------------------------------------------------------
REINFORCEMENT COMPOSITE ENGINEERED CORPORATE
(IN MILLIONS) PRODUCTS MATERIALS PRODUCTS & OTHER(1) TOTAL
---------------------------------------------------------------------------------------------------
THIRD QUARTER 2001
---------------------------------------------------------------------------------------------------
Net sales to external customers $ 62.9 $148.0 $ 29.7 $ -- $240.6
Intersegment sales 26.7 2.0 -- -- 28.7
---------------------------------------------------------------------------------------------------
Total sales 89.6 150.0 29.7 -- 269.3
Adjusted EBIT (2) 1.6 17.1 0.6 (7.7) 11.6
Depreciation and amortization 8.9 5.2 0.8 0.5 15.4
Business consolidation expenses 3.1 0.8 -- 0.5 4.4
Capital expenditures 4.3 4.5 0.1 0.1 9.0
---------------------------------------------------------------------------------------------------
SECOND QUARTER 2001
---------------------------------------------------------------------------------------------------
Net sales to external customers $ 64.2 $156.2 $ 33.1 $ -- $253.5
Intersegment sales 28.3 2.0 -- -- 30.3
---------------------------------------------------------------------------------------------------
Total sales 92.5 158.2 33.1 -- 283.8
Adjusted EBIT (2) 2.4 22.1 0.8 (7.4) 17.9
Depreciation and amortization 9.1 5.1 0.8 0.5 15.5
Business consolidation expenses 0.2 1.6 -- -- 1.8
Capital expenditures 6.4 4.5 -- 0.4 11.3
---------------------------------------------------------------------------------------------------
THIRD QUARTER 2000
---------------------------------------------------------------------------------------------------
Net sales to external customers $ 88.4 $133.1 $ 26.0 $ -- $247.5
Intersegment sales 20.9 1.8 -- -- 22.7
---------------------------------------------------------------------------------------------------
Total sales 109.3 134.9 26.0 -- 270.2
Adjusted EBIT (2) 11.4 14.7 0.2 (9.4) 16.9
Depreciation and amortization 8.3 4.5 0.7 0.6 14.1
Business consolidation expenses 0.2 2.7 0.4 -- 3.3
Capital expenditures 4.2 4.1 0.4 0.5 9.2
===================================================================================================
(1) The Company does not allocate corporate expenses to its business segments.
(2) Consists of earnings before interest, taxes, business consolidation expenses
and equity in earnings (losses) of affiliated companies.
10
HEXCEL CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
---------------------------------------------------------------------------------------------------------------
UNAUDITED
--------------------------------------
SEPTEMBER 30, December 31,
(IN MILLIONS, EXCEPT PER SHARE DATA) 2001 2000
---------------------------------------------------------------------------------------------------------------
ASSETS
Current assets:
Cash and cash equivalents $ 16.5 $ 5.1
Accounts receivable 154.5 150.3
Inventories 164.0 155.4
Prepaid expenses and other assets 5.6 5.5
Deferred tax asset 8.6 9.7
---------------------------------------------------------------------------------------------------------------
Total current assets 349.2 326.0
Property, plant and equipment 633.5 615.3
Less accumulated depreciation (281.1) (255.6)
---------------------------------------------------------------------------------------------------------------
Net property, plant and equipment 352.4 359.7
Goodwill and other purchased intangibles, net of accumulated
amortization of $45.8 in 2001 and $36.1 in 2000 384.6 391.7
Investments in affiliated companies and other assets 132.9 134.0
---------------------------------------------------------------------------------------------------------------
Total assets $1,219.1 $1,211.4
===============================================================================================================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Notes payable and current maturities of capital lease obligations $ 19.2 $ 22.1
Accounts payable 88.6 69.4
Accrued liabilities 101.8 106.4
---------------------------------------------------------------------------------------------------------------
Total current liabilities 209.6 197.9
Long-term notes payable and capital lease obligations 674.9 651.5
Other non-current liabilities 46.4 46.3
---------------------------------------------------------------------------------------------------------------
Total liabilities 930.9 895.7
Stockholders' equity:
Preferred stock, no par value, 20.0 shares of stock authorized,
no shares issued or outstanding in 2001 and 2000 -- --
Common stock, $0.01 par value, 100.0 shares of stock authorized,
shares issued and outstanding of 39.2 in 2001and 38.0 in 2000 0.4 0.4
Additional paid-in capital 287.0 280.7
Retained earnings 45.9 65.8
Accumulated other comprehensive loss (32.2) (20.0)
---------------------------------------------------------------------------------------------------------------
326.9
Less - Treasury stock, at cost, 1.1 shares in 2001 and 0.9 shares in 2000 (12.9) (11.2)
---------------------------------------------------------------------------------------------------------------
Total stockholders' equity 288.2 315.7
---------------------------------------------------------------------------------------------------------------
Total liabilities and stockholders' equity $1,219.1 $1,211.4
===============================================================================================================
Total debt, net of cash $ 677.6 $ 668.5
===============================================================================================================
11
HEXCEL CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
---------------------------------------------------------------------------------------------------------------------------
UNAUDITED
-------------------------------------------------------
QUARTER ENDED SEPT. 30, NINE MONTHS ENDED SEPT.30,
(IN MILLIONS) 2001 2000 2001 2000
---------------------------------------------------------------------------------------------------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss) $ (12.8) $ 0.1 $ (19.9) $ 53.2
Reconciliation to net cash provided by operating activities:
Extraordinary loss on early retirement of debt -- -- 0.7 --
Depreciation and amortization 15.4 14.1 46.1 43.9
Deferred income taxes 0.4 (4.7) (2.9) 11.8
Gain on sale of Bellingham business -- -- -- (68.3)
Business consolidation expenses 4.4 3.3 7.3 4.5
Business consolidation payments (2.0) (3.4) (5.8) (8.3)
Equity in (earnings) losses of affiliated companies 1.0 (1.7) (0.6) (3.9)
Working capital changes and other 31.6 0.9 (0.5) (20.1)
---------------------------------------------------------------------------------------------------------------------------
Net cash provided by (used for) operating activities 38.0 8.6 24.4 12.8
---------------------------------------------------------------------------------------------------------------------------
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures (9.0) (9.2) (30.9) (22.2)
Proceeds from sale of Bellingham business -- -- -- 113.3
Proceeds from sale of other assets -- 2.3 -- 3.4
Payment for acquisition -- -- (0.3) --
Investments in affiliated companies 0.8 -- 0.8 (6.0)
---------------------------------------------------------------------------------------------------------------------------
Net cash provided by (used for) investing activities (8.2) (6.9) (30.4) 88.5
---------------------------------------------------------------------------------------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds (repayments) of credit facilities, net (14.3) 5.7 26.6 30.6
Proceeds (repayments) of long-term debt and capital lease
obligations, net (4.0) (1.5) (6.2) (118.7)
Debt issuance costs -- -- (3.5) (0.9)
Activity under stock plans (1.1) 1.9 (0.4) 2.2
---------------------------------------------------------------------------------------------------------------------------
Net cash provided by (used for) financing activities (19.4) 6.1 16.5 (86.8)
---------------------------------------------------------------------------------------------------------------------------
Effect of exchange rate changes on cash and cash equivalents (0.2) (1.0) 0.9 (0.9)
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in cash and cash equivalents 10.2 6.8 11.4 13.6
Cash and cash equivalents at beginning of period 6.3 7.0 5.1 0.2
---------------------------------------------------------------------------------------------------------------------------
Cash and cash equivalents at end of period $ 16.5 $ 13.8 $ 16.5 $ 13.8
===========================================================================================================================
CASH PAID FOR:
Interest $ 19.6 $ 23.6 $ 56.0 $ 56.3
Taxes 4.2 3.3 12.1 6.2
===========================================================================================================================
12