Hexcel Corporation (NYSE: HXL):
- Strategic buy-out of UK defined benefit pension plan in Q4
2023. $1.9 million cash surplus returned to Hexcel and GAAP EPS
impacted by a non-cash charge of $70.5 million.
- Q4 2023 GAAP diluted EPS of $(0.21), compared to Q4 2022
GAAP diluted EPS of $0.43.
- Q4 2023 adjusted diluted EPS of $0.43, compared to Q4 2022
adjusted diluted EPS of $0.40.
- Q4 2023 Sales were $458 million, compared to $429 million in
Q4 2022.
- FY 2023 GAAP diluted EPS of $1.24 compared to FY 2022 GAAP
diluted EPS of $1.49. FY 2023 adjusted diluted EPS of $1.81,
compared to FY 2022 adjusted diluted EPS of $1.28.
- FY 2023 sales were $1,789 million, compared to $1,578
million for FY 2022.
- Divested Hexcel’s 50% interest in Boeing/Hexcel 50:50 ACM JV
to Boeing in Q4 2023.
- Free Cash Flow of $149 million in FY 2023, including $7.5
million cash dividend from JV.
- Quarterly dividend increased 20% to $0.15.
See Table C for reconciliation of GAAP and non-GAAP operating
income, net income, earnings per share and operating cash flow to
free cash flow. Free cash flow is cash from operations less capital
expenditures.
Summary of Results from
Operations
Quarters Ended
Years Ended
December 31,
December 31,
(In millions, except per share data)
2023
2022
% Change
2023
2022
% Change
Net Sales
$
457.5
$
429.4
6.5
%
$
1,789.0
$
1,577.7
13.4
%
Net sales change in constant currency
6.4
%
12.9
%
Operating Income
47.6
40.5
17.5
%
215.3
175.2
22.9
%
Net (Loss) Income
(18.2
)
37.0
(149.2
)%
105.7
126.3
(16.3
)%
Diluted net (loss) income per common
share
$
(0.21
)
$
0.43
(148.8
)%
$
1.24
$
1.49
(16.8
)%
Non-GAAP measures for year-over-year
comparison (Table C)
Adjusted Operating Income
$
49.1
$
46.3
6.0
%
$
216.7
$
163.3
32.7
%
As a % of sales
10.7
%
10.8
%
12.1
%
10.4
%
Adjusted Net Income
36.6
33.7
8.6
%
154.8
108.8
42.3
%
Adjusted diluted net income per share
$
0.43
$
0.40
7.5
%
$
1.81
$
1.28
41.4
%
Hexcel Corporation (NYSE: HXL) today reported fourth quarter
2023 results including net sales of $458 million and adjusted
diluted EPS of $0.43 per share.
Chairman, CEO and President Nick Stanage said, “Sales in our
Commercial Aerospace and Space & Defense markets each grew 17%
in 2023 and our annual adjusted EPS grew more than 40% year over
year from improved operating leverage. Commercial Aerospace growth
was led by widebody sales as demand for lightweight and
fuel-efficient composite aircraft is strong and growing. Our Space
and Defense sales benefitted from higher spending globally, with
record level sales achieved in the fourth quarter. We continue to
focus on ensuring operational readiness for the expected growth
ahead – this involves training new labor across our manufacturing
sites, driving operational excellence programs for yield and
efficiency gains, and bringing assets on-line for the expected
increase in demand. Although there is some near-term margin
pressure as a result, all of these efforts will position Hexcel to
maximize our margin opportunity in the coming years as build rates
ramp upwards.
Mr. Stanage continued, “Based on record commercial aircraft
backlogs and our customers anticipated build rate ramp, we expect
double digit sales growth again in 2024. Operational margins are
expected to continue to grow as the business benefits from
increased operating leverage and enhanced productivity, supporting
another year of strong EPS growth forecasted in 2024. We generated
$149 million of free cash flow in 2023, and as sales grow, margins
expand, and capital expenditure remains subdued, we anticipate
continued strong free cash flow generation in the coming years.
This will enable us to continue to invest in our people, drive
operational excellence and pursue technology innovation, as well as
returning cash to our stockholders.”
Patrick Winterlich, Chief Financial Officer commented, “During
the fourth quarter of 2023, we transferred our UK pension plan,
that was frozen in 2011, to a third-party insurer, thereby removing
any future liability for the company. The pension buy-out resulted
in a non-cash accounting charge of $70.5 million in the quarter and
a return of $1.9 million cash, as the plan was in a surplus
position.”
Markets
Sales in the fourth quarter of 2023 were $457.5 million compared
to $429.4 million in the fourth quarter of 2022.
Commercial Aerospace
- Commercial Aerospace sales of $267.5 million for the fourth
quarter of 2023 increased 4.4% (5.3% in constant currency) compared
to the fourth quarter of 2022. Increasing widebody sales for the
Airbus A350 and Boeing 787 supported the sales growth, partially
offset by lower narrowbody sales year-over-year. Other Commercial
Aerospace increased modestly in the fourth quarter of 2023, led by
continued growth in business jets.
Space & Defense
- Space & Defense sales of $152.3 million increased 20.4%
(19.7% in constant currency) for the quarter as compared to the
fourth quarter of 2022. Growth was particularly strong with space
markets and classified programs.
Industrial
- Total Industrial sales of $37.7 million in the fourth quarter
of 2023 decreased 19.3% (22.3% in constant currency) compared to
the fourth quarter of 2022. Automotive sales continued to grow,
though this growth was more than offset by sales declines in other
industrial markets.
Consolidated Operations
Gross margin for the fourth quarter of 2023 was 22.5% compared
to 23.1% in the fourth quarter of 2022. The fourth quarter 2023
margin reflected higher infrastructure levels ahead of anticipated
increases in customer production rates in 2024 and beyond. As a
percentage of sales, selling, general and administrative and
R&T expenses for the fourth quarter of 2023 were 11.8% compared
to 12.3% for the fourth quarter of 2022. Adjusted operating income
in the fourth quarter of 2023 was $49.1 million or 10.7% of sales,
compared to $46.3 million, or 10.8% of sales in 2022. Other
operating expense for both the fourth quarter of 2023 and 2022
included restructuring costs.
During the fourth quarter of 2023, Hexcel sold its 50% interest
in Malaysian-based Aerospace Composites Malaysia (ACM) to joint
venture partner Boeing for cash proceeds of approximately $44.7
million and in addition, received a cash dividend of $7.5 million.
Income to Hexcel from this joint venture has previously been
reported as equity in earnings from affiliated companies, and this
contributed approximately $0.09 to as reported and adjusted diluted
EPS in 2023. Following this transaction, Hexcel will no longer have
any equity in earnings from affiliated companies.
Other non-operating expense in the fourth quarter of 2023
included (i) the non-cash pre-tax charge of $70.5 million related
to the buy-out of the UK pension plan; (ii) a pre-tax gain of $1.9
million for the reversion of excess assets related to the UK
pension plan; and (iii) an accounting charge of $3.0 million
(including the write-off of approximately $9 million in currency
translation amounts) related to the sale of the ACM JV interest.
Other non-operating income in the fourth quarter of 2022 included
the receipt of $10.5 million related to the Aviation Manufacturing
Jobs Protection program. Foreign exchange rates had a favorable
impact of approximately 30 basis points on operating income as a
percentage of sales in the fourth quarter of 2023 compared to the
fourth quarter of 2022.
FY 2023 Results
Sales for the full year of 2023 were $1,789.0 million compared
to $1,577.7 million, a 13.4% increase from 2022 sales.
Commercial Aerospace (60% of sales)
- Commercial Aerospace sales of $1,068.2 million increased 17.2%
(17.0% in constant currency) for the full year of 2023 compared to
the full year of 2022. The strongest growth came from the Airbus
A350 and Boeing 787 widebodies, supported by moderate growth from
the Airbus A320neo and Boeing 737 MAX narrowbodies. Other
Commercial Aerospace increased 14.1% for the full year of 2023
compared to the same period in 2022, driven by increasing composite
adoption on large-cabin business jets.
Space & Defense (30% of sales)
- Space & Defense sales of $544.8 million increased 17.1%
(16.6% in constant currency) for the full year of 2023 as compared
to the full year of 2022. Growth was across numerous programs
including fixed-wing and space programs globally and European
helicopters.
Industrial (10% of sales)
- Total Industrial sales of $176.0 million in the full year of
2023 decreased 12.3% (13.6% in constant currency) compared to the
full year of 2022 as a number of industrial sub-markets softened,
more than offsetting the double-digit sales growth in
automotive.
Consolidated Operations
Gross margin for 2023 was 24.2% compared to 22.6% in the prior
year benefiting from higher sales volume leverage. As a percentage
of sales, selling, general and administrative and R&T expenses
for the full year of 2023 were 12.1% compared to 12.3% for 2022.
Adjusted operating income for the full year of 2023 was $216.7
million or 12.1% of sales, compared to $163.3 million or 10.4% of
sales in 2022. Other operating expense for the full year of 2023
included restructuring costs partially offset by a pre-tax net gain
of $0.8 million from the sale of a facility in Colorado. Other
operating income for the full year of 2022 included a pre-tax net
gain of $19.4 million from the sale of a facility in California,
partially offset by restructuring costs. Other non-operating
expense for the full year of 2023 included (i) a non-cash pre-tax
charge of $70.5 million related to the buy-out of the UK pension
plan; (ii) a pre-tax gain of $1.9 million for the reversion of
excess assets related to the UK pension plan; and (iii) an
accounting charge of $3.0 million (including the write-off of
approximately $9 million in currency translation amounts) related
to the sale of the ACM JV interest. Other non-operating income for
the full year of 2022 included the receipt of $10.5 million related
to the Aviation Manufacturing Jobs Protection program. The impact
of foreign exchange rates on operating income as a percentage of
sales was favorable by approximately 40 basis points for 2023
compared to 2022.
Cash and other
- Net cash provided by operating activities in 2023 was $257.1
million, compared to $173.1 million in 2022. Working capital was a
cash use of $27.4 million in 2023 compared to a use of $72.7
million in 2022. Capital expenditures on a cash basis were $108.2
million in 2023, including approximately $38 million for the
purchase of the land and building at the Hexcel Amesbury,
Massachusetts facility. Capital expenditures in 2022 were $76.3
million. Net cash used for investing activities in 2023 included
net proceeds of $44.7 million from the sale of the ACM JV interest,
and net proceeds of $10.3 million received from the sale of the
Colorado facility. Net cash used for investing activities for the
full year of 2022 included the net proceeds of $21.2 million
received from the California facility sale. Free cash flow was
$148.9 million in 2023 compared to $96.8 million in 2022. Free cash
flow is defined as cash generated from operating activities less
cash paid for capital expenditures. Capital expenditures on an
accrual basis were $121.6 million in 2023 and $69.8 million in
2022.
- The Company did not repurchase shares of its common stock
during the fourth quarter. The remaining authorization under the
share repurchase program on December 31, 2023 was $187
million.
- As announced today, the Board of Directors declared a quarterly
dividend of $0.15 per share payable to stockholders of record as of
February 9, 2024, with a payment date of February 16, 2024.
2024 Guidance
- Sales of $1.925 billion to $2.025 billion
- Adjusted diluted earnings per share of $2.10 to $2.30
- Free cash flow of greater than $200 million
Market-Specific Sales
Outlook
- Commercial Aerospace: Up mid-teens
- Space & Defense: Up mid-single digits
- Industrial: Up low to mid-single digits
Hexcel will host an investor day on February 20, 2024 where
additional 2024 guidance, and mid-term outlook will be provided.
The event will be webcast.
Hexcel will host a conference call at 10:00 a.m. ET, on January
25, 2024 to discuss fourth quarter and full-year 2023 results. The
live webcast will be available on the Investor Relations section of
the Hexcel website via the following link:
https://events.q4inc.com/attendee/422300454. The event can also be
accessed by dialing +1 (646) 960-0452. The conference ID is
3428143. Replays of the call will be available on the website.
About Hexcel
Hexcel Corporation is a global leader in advanced lightweight
composites technology. We propel the future of flight, energy
generation, transportation, and recreation through excellence in
providing innovative high-performance material solutions that are
lighter, stronger and tougher, helping to create a better world for
us all. Our broad and unrivaled product range includes carbon
fiber, specialty reinforcements, prepregs and other
fiber-reinforced matrix materials, honeycomb, resins, engineered
core and composite structures for use in commercial aerospace,
space and defense, and industrial applications.
Disclaimer on Forward Looking Statements
This news release contains statements that are forward looking
within the meaning of the Private Securities Litigation Reform Act
of 1995, including statements relating to the estimates and
expectations based on aircraft production rates provided by Airbus,
Boeing and others, and the revenues we may generate from an
aircraft model or program; expectations with regard to the impact
of regulatory activity related to the Boeing 737 MAX or Boeing 787
on our revenues; expectations with regard to raw material cost and
availability; expectations of composite content on new commercial
aircraft programs and our share of those requirements; expectations
regarding revenues from space and defense applications, including
whether certain programs might be curtailed or discontinued;
expectations regarding sales for industrial applications;
expectations regarding cash generation, working capital trends, and
inventory levels; expectations as to the level of capital
expenditures, capacity, including the timing of completion of
capacity expansions, and qualification of new products;
expectations regarding our ability to improve or maintain margins;
expectations regarding our ability to attract, motivate, and retain
the workforce necessary to execute our business strategy;
projections regarding our tax rate; expectations with regard to the
continued impact of macroeconomic factors or geopolitical issues or
conflicts; expectations regarding our strategic initiatives,
including, our sustainability goals; expectations regarding the
sale of certain of our assets; expectations with regard to the
effectiveness of cybersecurity measures; expectations regarding the
outcome of legal matters or the impact of changes in laws or
regulations; and our expectations of financial results for 2024 and
beyond. 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 the extent of the impact of
macroeconomic factors or geopolitical issues or conflicts;
reductions in sales to any significant customers, particularly
Airbus or Boeing, including related to regulatory activity or
public scrutiny impacting the Boeing 737 MAX or the Boeing 787; our
ability to effectively adjust production and inventory levels to
align with customer demand; our ability to effectively motivate,
retain and hire the necessary workforce; the availability and cost
of raw materials, including the impact of supply shortages and
inflation; supply chain disruptions; our ability to successfully
implement or realize our strategic initiatives, including our
sustainability goals and any restructuring or alignment activities
in which we may engage; changes in sales mix; changes in current
pricing due to cost levels,; changes in aerospace delivery rates;
changes in government defense procurement budgets; timely new
product development or introduction; our ability to install, staff
and qualify necessary capacity or complete capacity expansions to
meet customer demand; cybersecurity-related risks, including the
potential impact of breaches or intrusions; currency exchange rate
fluctuations; changes in political, social and economic conditions,
including the effect of change in global trade policies, such as
sanctions; work stoppages or other labor disruptions; our ability
to successfully complete any strategic acquisitions, investments or
dispositions; compliance with environmental, health, safety and
other related laws and regulations, including those related to
climate change; the effects of natural disasters or other severe
weather events, which may be worsened by the impact of climate
change, and other severe catastrophic events, including any public
health crisis; and the unexpected outcome of legal matters or
impact of changes in laws or regulations. Additional risk factors
are described in our filings with the Securities and Exchange
Commission. We do not undertake an obligation to update our
forward-looking statements to reflect future events.
Hexcel Corporation and
Subsidiaries
Condensed Consolidated Statements of
Operations
Unaudited
Quarters Ended
Years Ended
December 31,
December 31,
(In millions, except per share data)
2023
2022
2023
2022
Net sales
$
457.5
$
429.4
$
1,789.0
$
1,577.7
Cost of sales
354.4
330.3
1,355.8
1,220.6
Gross margin
103.1
99.1
433.2
357.1
% Gross Margin
22.5
%
23.1
%
24.2
%
22.6
%
Selling, general and administrative
expenses
41.9
40.8
163.8
148.0
Research and technology expenses
12.1
12.0
52.7
45.8
Other operating expense (income)
1.5
5.8
1.4
(11.9
)
Operating income
47.6
40.5
215.3
175.2
Interest expense, net
7.6
9.2
34.0
36.2
Other expense (income)
71.6
(10.5
)
71.6
(10.8
)
(Loss) income before income taxes, and
equity in earnings of affiliated companies
(31.6
)
41.8
109.7
149.8
Income tax (benefit) expense
(10.4
)
7.4
12.1
31.6
(Loss) income before equity in earnings of
affiliated companies
(21.2
)
34.4
97.6
118.2
Equity in earnings from affiliated
companies
3.0
2.6
8.1
8.1
Net (loss) income
$
(18.2
)
$
37.0
$
105.7
$
126.3
Basic net (loss) income per common
share:
$
(0.21
)
$
0.44
$
1.25
$
1.50
Diluted net (loss) income per common
share:
$
(0.21
)
$
0.43
$
1.24
$
1.49
Weighted-average common shares:
Basic
84.4
84.5
84.6
84.4
Diluted
84.4
85.2
85.5
85.0
Hexcel Corporation and
Subsidiaries
Condensed Consolidated Balance
Sheets
Unaudited
December 31,
December 31,
(In millions)
2023
2022
Assets
Cash and cash equivalents
$
227.0
$
112.0
Accounts receivable, net
234.7
222.7
Inventories, net
334.4
319.3
Contract assets
25.1
32.0
Prepaid expenses and other current
assets
43.0
38.9
Assets held for sale
-
9.5
Total current assets
864.2
734.4
Property, plant and equipment
3,195.5
3,087.9
Less accumulated depreciation
(1,516.8
)
(1,430.1
)
Net property, plant and equipment
1,678.7
1,657.8
Goodwill and other intangible assets,
net
251.3
256.0
Investments in affiliated companies
5.0
47.6
Other assets
119.3
141.5
Total assets
$
2,918.5
$
2,837.3
Liabilities and Stockholders'
Equity
Liabilities:
Short-term borrowings
$
0.1
$
0.2
Accounts payable
159.1
155.5
Accrued compensation and benefits
75.7
69.6
Accrued liabilities
81.0
104.5
Total current liabilities
315.9
329.8
Long-term debt
699.4
723.3
Retirement obligations
42.6
42.7
Other non-current liabilities
144.1
187.3
Total liabilities
$
1,202.0
$
1,283.1
Stockholders' equity:
Common stock, $0.01 par value, 200.0
shares authorized, 110.8 shares issued at December 31, 2023 and
110.4 shares issued at December 31, 2022
$
1.1
$
1.1
Additional paid-in capital
936.8
905.0
Retained earnings
2,168.7
2,104.9
Accumulated other comprehensive loss
(74.1
)
(174.4
)
3,032.5
2,836.6
Less – Treasury stock, at cost, 26.7
shares at December 31, 2023 and 26.2 shares at December 31,
2022
(1,316.0
)
(1,282.4
)
Total stockholders' equity
1,716.5
1,554.2
Total liabilities and stockholders'
equity
$
2,918.5
$
2,837.3
Hexcel Corporation and
Subsidiaries
Condensed Consolidated Statements of
Cash Flows
Unaudited
Years Ended
December 31,
(In millions)
2023
2022
Cash flows from operating
activities
Net income
$
105.7
$
126.3
Reconciliation to net cash used for
operating activities:
Depreciation and amortization
124.8
126.2
Amortization related to financing
0.6
0.7
Deferred income taxes
(32.7
)
(3.1
)
Equity in earnings from affiliated
companies
(8.1
)
(8.1
)
Stock-based compensation
20.9
20.0
Restructuring expenses, net of
payments
(4.4
)
(0.7
)
Pension settlement
70.5
-
Gain on sale of assets
(0.8
)
(19.4
)
Impairment of assets
3.1
1.6
Loss (gain) on sale of investments
3.0
(0.3
)
Changes in assets and liabilities:
Increase in accounts receivable
(8.9
)
(62.8
)
Increase in inventories
(8.9
)
(82.4
)
Decrease (increase) in prepaid expenses
and other current assets
2.6
(8.3
)
(Decrease) increase in accounts
payable/accrued liabilities
(12.2
)
80.8
Other - net
1.9
2.6
Net cash provided by operating activities
(a)
257.1
173.1
Cash flows from investing
activities
Capital expenditures (b)
(108.2
)
(76.3
)
Proceeds from sale of assets
10.3
21.2
Proceeds from sale of investments
47.2
0.5
Net cash used for investing activities
(50.7
)
(54.6
)
Cash flows from financing
activities
Borrowings from senior unsecured credit
facilities
103.0
50.0
Repayments of senior unsecured credit
facilities
(128.0
)
(150.0
)
Repurchases of common stock
(30.1
)
-
Issuance costs related to senior unsecured
credit facilities
(2.5
)
-
Repayment of finance lease obligation and
other debt, net
(0.2
)
(0.6
)
Dividends paid
(42.2
)
(33.7
)
Activity under stock plans
7.4
4.3
Net cash used for financing activities
(92.6
)
(130.0
)
Effect of exchange rate changes on cash
and cash equivalents
1.2
(4.2
)
Net increase (decrease) in cash and cash
equivalents
115.0
(15.7
)
Cash and cash equivalents at beginning of
period
112.0
127.7
Cash and cash equivalents at end of
period
$
227.0
$
112.0
Supplemental data:
Free Cash Flow (a)+(b)
148.9
96.8
Accrual basis additions to property, plant
and equipment
121.6
69.8
Hexcel Corporation and
Subsidiaries
Net Sales to Third-Party Customers by
Market
Quarters Ended December 31, 2023 and
2022
Unaudited
Table A
(In millions)
As Reported
Constant Currency (a)
B/(W)
FX
B/(W)
Market
2023
2022
%
Effect (b)
2022
%
Commercial Aerospace
$
267.5
$
256.2
4.4
$
(2.2
)
$
254.0
5.3
Space & Defense
152.3
126.5
20.4
0.8
127.3
19.7
Industrial
37.7
46.7
(19.3
)
1.8
48.5
(22.3
)
Consolidated Total
$
457.5
$
429.4
6.5
$
0.4
$
429.8
6.4
Consolidated % of Net Sales
%
%
%
Commercial Aerospace
58.5
59.7
59.1
Space & Defense
33.3
29.4
29.6
Industrial
8.2
10.9
11.3
Consolidated Total
100.0
100.0
100.0
Years Ended December 31, 2023 and
2022
Unaudited
(In millions)
As Reported
Constant Currency (a)
B/(W)
FX
B/(W)
Market
2023
2022
%
Effect (b)
2022
%
Commercial Aerospace
$
1,068.2
$
911.8
17.2
$
1.4
$
913.2
17.0
Space & Defense
544.8
465.2
17.1
2.0
467.2
16.6
Industrial
176.0
200.7
(12.3
)
3.1
203.8
(13.6
)
Consolidated Total
$
1,789.0
$
1,577.7
13.4
$
6.5
$
1,584.2
12.9
Consolidated % of Net Sales
%
%
%
Commercial Aerospace
59.7
57.8
57.6
Space & Defense
30.5
29.5
29.5
Industrial
9.8
12.7
12.9
Consolidated Total
100.0
100.0
100.0
(a)
To assist in the analysis of the Company’s
net sales trend, total net sales and sales by market for the
quarter and year ended December 31, 2022, have been estimated using
the same U.S. dollar, British pound and Euro exchange rates as
applied for the respective periods in 2023 and are referred to as
“constant currency” sales.
(b)
FX effect is the estimated impact on “as
reported” net sales due to changes in foreign currency exchange
rates.
Hexcel Corporation and
Subsidiaries
Segment Information
Unaudited
Table B
(In millions)
Composite Materials
Engineered Products
Corporate & Other
(a)
Total
Fourth Quarter 2023
Net sales to external customers
$
377.0
$
80.5
$
-
$
457.5
Intersegment sales
16.6
0.7
(17.3
)
-
Total sales
393.6
81.2
(17.3
)
457.5
Other operating expense
1.5
-
-
1.5
Operating income (loss)
56.8
7.8
(17.0
)
47.6
% Operating margin
14.4
%
9.6
%
10.4
%
Depreciation and amortization
27.9
3.7
-
31.6
Stock-based compensation expense
1.0
0.3
1.3
2.6
Accrual based additions to capital
expenditures
29.3
3.6
-
32.9
Fourth Quarter 2022
Net sales to external customers
$
354.3
$
75.1
$
-
$
429.4
Intersegment sales
15.9
0.8
(16.7
)
-
Total sales
370.2
75.9
(16.7
)
429.4
Other operating expense (income)
5.9
(0.1
)
-
5.8
Operating income (loss)
47.0
10.9
(17.4
)
40.5
% Operating margin
12.7
%
14.4
%
9.4
%
Depreciation and amortization
27.8
3.5
-
31.3
Stock-based compensation expense
1.3
0.3
3.2
4.8
Accrual based additions to capital
expenditures
15.8
4.9
-
20.7
Year Ended December 31, 2023
Net sales to external customers
$
1,474.2
$
314.8
$
-
$
1,789.0
Intersegment sales
70.6
2.4
(73.0
)
-
Total sales
1,544.8
317.2
(73.0
)
1,789.0
Other operating expense
1.2
0.2
-
1.4
Operating income (loss)
237.9
32.8
(55.4
)
215.3
% Operating margin
15.4
%
10.3
%
12.0
%
Depreciation and amortization
110.4
14.4
-
124.8
Stock-based compensation expense
6.2
1.7
13.0
20.9
Accrual based additions to capital
expenditures
70.9
50.7
-
121.6
Year Ended December 31, 2022
Net sales to external customers
$
1,279.7
$
298.0
$
-
$
1,577.7
Intersegment sales
66.3
2.8
(69.1
)
-
Total sales
1,346.0
300.8
(69.1
)
1,577.7
Other operating expense (income)
7.5
-
(19.4
)
(11.9
)
Operating income (loss)
178.2
36.6
(39.6
)
175.2
% Operating margin
13.2
%
12.2
%
11.1
%
Depreciation and amortization
112.0
14.1
0.1
126.2
Stock-based compensation expense
5.8
1.6
12.6
20.0
Accrual based additions to capital
expenditures
58.3
11.4
0.1
69.8
(a)
Hexcel does not allocate corporate
expenses to the operating segments.
Hexcel Corporation and
Subsidiaries
Reconciliation of GAAP to Non-GAAP
Operating Income, Net (Loss) Income, EPS and Operating Cash Flow to
Free Cash Flow
Table C
Unaudited
Quarters Ended
Years Ended
December 31,
December 31,
(In millions)
2023
2022
2023
2022
GAAP operating income
$
47.6
$
40.5
$
215.3
$
175.2
Other operating expense (income) (a)
1.5
5.8
1.4
(11.9
)
Non-GAAP operating income
$
49.1
$
46.3
$
216.7
$
163.3
Unaudited
Quarters Ended December 31,
2023
2022
(In millions, except per diluted share
data)
Net (Loss) Income
EPS
Net Income
EPS
GAAP
$
(18.2
)
$
(0.21
)
$
37.0
$
0.43
Other operating expense (income), net of
tax (a)
1.1
0.01
5.1
0.06
Other expense (income), net of tax (b)
57.4
0.67
(8.1
)
(0.09
)
Tax (benefit) expense (c)
(3.7
)
(0.04
)
(0.3
)
-
Non-GAAP
$
36.6
$
0.43
$
33.7
$
0.40
Unaudited
Years Ended December 31,
2023
2022
(In millions, except per diluted share
data)
Net Income
EPS
Net Income
EPS
GAAP
$
105.7
$
1.24
$
126.3
$
1.49
Other operating expense (income), net of
tax (a)
1.0
0.01
(10.1
)
(0.12
)
Other expense (income), net of tax (b)
57.4
0.67
(8.4
)
(0.10
)
Tax (benefit) expense (c)
(9.3
)
(0.11
)
1.0
0.01
Non-GAAP
$
154.8
$
1.81
$
108.8
$
1.28
Unaudited
Years Ended December 31,
(In millions)
2023
2022
Net cash provided by operating
activities
$
257.1
$
173.1
Less: Capital expenditures
(108.2
)
(76.3
)
Free cash flow (non-GAAP)
$
148.9
$
96.8
(a)
The quarter ended and year ended December
31, 2023 included restructuring costs. The year ended December 31,
2023 also included the net gain of $0.8 million from the sale of
the facility in Windsor, Colorado. Both the quarter and year ended
December 31, 2022 were impacted by restructuring costs including
amounts associated with the closure of the Tianjin, China facility
and an impairment charge for the Windsor facility. The year ended
December 31, 2022 also included a net gain of $19.4 million from
the sale of the Dublin, California facility.
(b)
Both the quarter and year ended December
31, 2023, included (i) a charge of $70.5 million related to the
buy-out of the UK pension plan; (ii) a charge of $3.0 million
(including the write-off of approximately $9 million in currency
translation amounts) related to the sale of the joint venture
interest in Malaysia; and (iii) a pre-tax gain of $1.9 million for
the reversion of excess assets related to the UK pension plan. Both
the quarter and year ended December 31, 2022, included the receipt
of $10.5 million related to the Aviation Manufacturing Jobs
Protection program.
(c)
The quarter ended December 31, 2023
included a discrete tax benefit of $3.8 primarily related to the
true up of deferred tax items and the year ended December 31, 2023
also included a discrete tax benefit of $5.6 million, primarily
related to adjustments to the provision based on the finalization
of prior year tax returns. The quarter ended December 31, 2022
included a discrete tax benefit from the adjustment to the
provision based on the finalization of prior year tax returns. The
year ended December 31, 2022 also included a discrete tax charge
resulting from the true-up of a deferred tax item.
NOTE: Management believes that
adjusted operating income, adjusted net income, adjusted diluted
net income per share and free cash flow, which are non-GAAP
measures, are meaningful to investors because they provide a view
of Hexcel with respect to the underlying operating results
excluding special items. Special items represent significant
charges or credits that are important to an understanding of
Hexcel’s overall operating results in the periods presented.
Non-GAAP measurements are not recognized in accordance with
generally accepted accounting principles and should not be viewed
as an alternative to GAAP measures of performance.
Hexcel Corporation and
Subsidiaries
Schedule of Total Debt, Net of
Cash
Table D
Unaudited
December 31,
December 31,
December 31,
(In millions)
2023
2022
2021
Current portion finance lease
$
0.1
$
0.2
$
0.9
Total current debt
0.1
0.2
0.9
Senior unsecured credit facility
-
25.0
125.0
4.7% senior notes due 2025
300.0
300.0
300.0
3.95% senior notes due 2027
400.0
400.0
400.0
Senior notes original issue discounts
(0.7
)
(0.9
)
(1.2
)
Senior notes deferred financing costs
(1.6
)
(2.2
)
(2.9
)
Other debt
1.7
1.4
1.5
Total long-term debt
699.4
723.3
822.4
Total Debt
699.5
723.5
823.3
Less: Cash and cash equivalents
(227.0
)
(112.0
)
(127.7
)
Total debt, net of cash
$
472.5
$
611.5
$
695.6
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240124222063/en/
Kurt Goddard | Vice President Investor Relations |
Kurt.Goddard@Hexcel.com | +1 (203) 352-6826
Hexcel (NYSE:HXL)
Gráfico Histórico do Ativo
De Dez 2024 até Jan 2025
Hexcel (NYSE:HXL)
Gráfico Histórico do Ativo
De Jan 2024 até Jan 2025
