-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, N5VrNDRmee3Y1eAHtPzfYAl9QTkS4sD3ls17by5ZXYvOF40KRRE8C5guEg9L3QrZ XKLR4Hi4Z8roEI4n2AEG4Q== 0001157523-07-002415.txt : 20070306 0001157523-07-002415.hdr.sgml : 20070306 20070306171339 ACCESSION NUMBER: 0001157523-07-002415 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20070301 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20070306 DATE AS OF CHANGE: 20070306 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HEXCEL CORP /DE/ CENTRAL INDEX KEY: 0000717605 STANDARD INDUSTRIAL CLASSIFICATION: PLASTICS, MATERIALS, SYNTH RESINS & NONVULCAN ELASTOMERS [2821] 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: 07675603 BUSINESS ADDRESS: STREET 1: TWO STAMFORD PLAZA STREET 2: 281 TRESSER BLVD., 16TH FLOOR CITY: STAMFORD STATE: CT ZIP: 06901 BUSINESS PHONE: 203-969-0666 MAIL ADDRESS: STREET 1: TWO STAMFORD PLAZA STREET 2: 281 TRESSER BLVD., 16TH FLOOR CITY: STAMFORD STATE: CT ZIP: 06901 8-K 1 a5349612.txt HEXCEL CORP. 8-K UNITED STATES 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 March 6, 2007 (March 1, 2007) -------------------------------------- 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) 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 (see General Instruction A.2. below): [ ] Written Communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Section 2 - Financial Information Item 2.02 Results of Operation and Financial Condition On March 1, 2007, Hexcel Corporation, a Delaware corporation (the "Company"), issued a press release in which the Company advised of an increase of $0.9 million in its tax provision for the fourth quarter and full year ended December 31, 2006. In addition, the Company also advised that the December 31, 2005 release of its valuation allowance against its U.S. deferred tax assets should have been $3.5 million lower. A copy of this earnings press release is being furnished as Exhibit 99.1 and is incorporated herein by reference. Section 7 - Regulation FD Item 7.01 Regulation FD Disclosure The information contained in Item 2.02 of this report is incorporated by reference into this Item 7.01. Section 9 - Financial Statements and Exhibits Item 9.01 Financial Statements and Exhibits. (c) Exhibits 99.1 Press Release issued by the Company on March 1, 2007. 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 March 6, 2007 /s/ William J. Fazio ------------------------ William J. Fazio Corporate Controller and Chief Accounting Officer Exhibit Index ------------- Exhibit No. Description - ----------- ----------- 99.1 Press Release issued by the Company on March 1, 2007. EX-99.1 2 a5349612ex99-1.txt EXHIBIT 99.1 Exhibit 99.1 Hexcel Corporation Advises $0.9 Million Increase in Its Tax Provision for the Fourth Quarter and Full Year of 2006 STAMFORD, Conn.--(BUSINESS WIRE)--March 1, 2007--Hexcel Corporation (NYSE: HXL), today advised that it is increasing its tax provision for the fourth quarter and full year of 2006 by $0.9 million to $11.5 million and $34.1 million, respectively. As a result, net income for the fourth quarter and the full year of 2006 are reduced by $0.9 million to $18.1 million and $65.9 million, respectively. Reflecting this change, diluted net income per common share is reduced by $0.01 to $0.19 for the fourth quarter of 2006 and $0.69 for the full year of 2006. In addition, the Company has concluded that its $119.2 million release of valuation allowance against its U.S. deferred tax assets as of December 31, 2005 should have been $3.5 million lower. It has recorded this adjustment in adopting the provisions of Staff Accounting Bulletin No. 108 by a reduction to retained earnings. Attached are the condensed consolidated statements of operations for the fourth quarter and full year of 2006, together with the condensed consolidated balance sheet as of December 31, 2006, each updated to reflect these changes. The Company has today filed its 2006 Annual Report on Form 10-K reflecting these changes. Hexcel Corporation is a leading advanced structural materials company. It develops, manufactures and markets lightweight, high-performance structural materials, including carbon fibers, reinforcements, prepregs, honeycomb, matrix systems, adhesives and composite structures for use in commercial aerospace, space and defense, and industrial applications. Hexcel Corporation and Subsidiaries Condensed Consolidated Statements of Operations - ---------------------------------------------------------------------- Unaudited ---------------------------------------- Quarter Ended Year Ended December 31, December 31, (In millions, except per share data) 2006 2005 2006 2005 - ----------------------------- --------- ---------- --------- --------- Net sales $ 299.2 $ 278.2 $1,193.1 $1,139.5 Cost of sales 234.2 219.6 928.3 889.4 - ---------------------------------------------------------------------- Gross margin 65.0 58.6 264.8 250.1 % Gross Margin 21.7% 21.1% 22.2% 21.9% Selling, general and administrative expenses 28.4 26.3 113.2 104.9 Research and technology expenses 8.2 5.8 30.4 25.3 Business consolidation and restructuring expenses 9.3 1.1 14.8 2.9 Other expense, net - - - 15.1 - ---------------------------------------------------------------------- Operating income 19.1 25.4 106.4 101.9 Interest expense 6.3 7.2 28.0 33.9 Non-operating (income) expense (15.7) - (15.7) 40.9 - ---------------------------------------------------------------------- Income from continuing operations before income taxes, equity in earnings and discontinued operations 28.5 18.2 94.1 27.1 Provision (benefit) for income taxes 11.5 (117.0) 34.1 (109.1) - ---------------------------------------------------------------------- Income from continuing operations before equity in earnings and discontinued operations 17.0 135.2 60.0 136.2 Equity in earnings of affiliated companies 0.9 1.0 4.1 3.6 - ---------------------------------------------------------------------- Net income from continuing operations 17.9 136.2 64.1 139.8 Income from discontinued operations, net of tax 0.2 0.2 1.8 1.5 - ---------------------------------------------------------------------- Net income 18.1 136.4 65.9 141.3 Deemed preferred dividends and accretion - (14.4) - (30.8) - ---------------------------------------------------------------------- Net income available to common shareholders $ 18.1 $ 122.0 $ 65.9 $ 110.5 - ---------------------------------------------------------------------- Basic net income per common share: Continuing operations $ 0.19 $ 1.77 $ 0.69 $ 1.81 Discontinued operations - - 0.02 0.03 - ---------------------------------------------------------------------- Basic net income per common share $ 0.19 $ 1.77 $ 0.71 $ 1.84 Diluted net income per common share: Continuing operations $ 0.19 $ 1.44 $ 0.67 $ 1.49 Discontinued operations - - 0.02 0.02 - ---------------------------------------------------------------------- Diluted net income per common share $ 0.19 $ 1.44 $ 0.69 $ 1.51 Weighted-average common shares: Basic 93.7 69.1 93.4 60.0 Diluted 95.6 94.4 95.5 93.7 - ---------------------------------------------------------------------- Hexcel Corporation and Subsidiaries Condensed Consolidated Balance Sheets - ---------------------------------------------------------------------- Unaudited ----------------------------- (In millions, except per share data) December September December 31, 30, 31, 2006 2006 2005 - ---------------------------------------------------------------------- Assets Current assets: Cash and cash equivalents $ 25.7 $ 13.0 $ 21.0 Accounts receivable, net 181.5 183.6 153.0 Inventories, net 171.5 161.0 146.0 Assets held for sale 10.5 10.0 7.6 Prepaid expenses and other current assets 36.6 34.5 42.7 - ---------------------------------------------------------------------- Total current assets 425.8 402.1 370.3 Property, plant and equipment 834.7 798.6 708.2 Less accumulated depreciation (464.3) (463.1) (428.3) - ---------------------------------------------------------------------- Net property, plant and equipment 370.4 335.5 279.9 Goodwill and other intangibles, net 75.9 75.4 74.5 Investments in affiliated companies 11.1 16.5 14.3 Assets held for sale 5.9 5.5 5.7 Deferred tax assets 101.5 110.1 107.6 Other assets 22.3 30.6 28.3 - ---------------------------------------------------------------------- Total assets $1,012.9 $ 975.7 $ 880.6 - ---------------------------------------------------------------------- Liabilities and Stockholders' Equity Current liabilities: Notes payable and current maturities of capital lease obligations $ 2.5 $ 5.0 $ 3.0 Accounts payable 104.0 88.7 92.2 Accrued liabilities 106.6 92.0 96.8 Liabilities related to assets held for sale 6.2 5.3 3.8 - ---------------------------------------------------------------------- Total current liabilities 219.3 191.0 195.8 Long-term notes payable and capital lease obligations 409.8 426.8 416.8 Liabilities related to assets held for sale 1.4 1.3 1.2 Other non-current liabilities 80.8 59.9 56.1 - ---------------------------------------------------------------------- Total liabilities 711.3 679.0 669.9 Stockholders' equity: Preferred stock, no par value, 20.0 shares authorized, no shares issued or outstanding - - - Common stock, $0.01 par value, 200.0 shares authorized, 95.5 shares issued at December 31, 2006, 95.3 shares issued at September 30, 2006 and 94.1 shares issued at December 31, 2005 1.0 1.0 0.9 Additional paid-in capital 479.3 477.3 455.0 Accumulated deficit (157.1) (174.7) (222.5) Accumulated other comprehensive income (loss) (1.8) 12.4 (7.3) - ---------------------------------------------------------------------- 321.4 316.0 226.1 Less - Treasury stock, at cost, 1.7 shares at December 31, 2006 and September 30, 2006 and 1.5 shares at December 31, 2005 (19.8) (19.3) (15.4) - ---------------------------------------------------------------------- Total stockholders' equity 301.6 296.7 210.7 - ---------------------------------------------------------------------- Total liabilities and stockholders' equity $1,012.9 $ 975.7 $ 880.6 - ---------------------------------------------------------------------- CONTACT: Hexcel Corporation Investors: Stephen C. Forsyth, 203-969-0666 ext. 425 stephen.forsyth@hexcel.com or Media: Michael Bacal, 203-969-0666 ext. 426 michael.bacal@hexcel.com -----END PRIVACY-ENHANCED MESSAGE-----