Hexcel Corporation (NYSE: HXL):
- Q3 2023 Sales were $420 million, an increase of 15.0% over
Q3 2022 sales of $365 million (13.2% increase in constant
currency).
- Q3 2023 GAAP diluted EPS of $0.45 compared to Q3 2022 GAAP
diluted EPS of $0.31.
- Q3 2023 adjusted diluted EPS of $0.38, compared to Q3 2022
adjusted diluted EPS of $0.33.
- FY 2023 guidance is reaffirmed.
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
Nine Months Ended
September 30,
September 30,
(In millions, except per share data)
2023
2022
% Change
2023
2022
% Change
Net Sales
$
419.5
$
364.7
15.0
%
$
1,331.5
$
1,148.3
16.0
%
Net sales change in constant currency
13.2
%
15.3
%
Operating Income
43.6
40.8
6.9
%
167.7
134.7
24.5
%
Net Income
38.7
26.8
44.4
%
123.9
89.3
38.7
%
Diluted net income per common share
$
0.45
$
0.31
45.2
%
$
1.45
$
1.05
38.0
%
Non-GAAP measures for year-over-year
comparison (Table C)
Adjusted Operating Income
$
42.8
$
41.2
3.9
%
$
167.6
$
117.0
43.2
%
As a % of sales
10.2
%
11.3
%
12.6
%
10.2
%
Adjusted Net Income
32.5
28.4
14.4
%
118.2
75.1
57.4
%
Adjusted diluted net income per share
$
0.38
$
0.33
15.2
%
$
1.38
$
0.88
56.8
%
Hexcel Corporation (NYSE: HXL) today reported third quarter 2023
results including net sales of $420 million and adjusted diluted
EPS of $0.38 per share.
Chairman, CEO and President Nick Stanage said, “Year-over-year
third quarter sales increased 15% reflecting the continued robust
growth in Commercial Aerospace and Business Jets along with the
sustained strong demand in our Space and Defense markets. As we
previously forecasted, the third quarter was seasonally impacted,
and this combined with some general Commercial Aerospace market
supply chain challenges, led to the lower sequential sales level.
We delivered double-digit operating margin of 10.2% and an adjusted
EPS of $0.38, an increase of 15% year over year. Year to date
adjusted EPS has now increased nearly 57% year over year. Hexcel is
well positioned, with infrastructure and headcount in place, to
meet the expected strong growth ahead driven by the record backlog
levels for new commercial aircraft. Our continued focus and strong
execution led to Cash from Operations of $68 million compared to
$38 million in the third quarter of 2022. We remain committed to
delivering our guidance for 2023, including expectations for strong
free cash flow generation in the fourth quarter.”
Markets
Sales in the third quarter of 2023 were $419.5 million compared
to $364.7 million in the third quarter of 2022.
Commercial Aerospace
- Commercial Aerospace sales of $251.9 million for the third
quarter of 2023 increased 20.5% (19.2% in constant currency)
compared to the third quarter of 2022. Sales growth was driven by
the Airbus A350 and Boeing 787 programs while third quarter total
narrowbody sales were unchanged from the comparable prior year
period. Other Commercial Aerospace increased 20% for the third
quarter of 2023 compared to the third quarter of 2022 with business
jets leading the growth.
Space & Defense
- Space & Defense sales of $128.8 million increased 18.6%
(17.1% in constant currency) for the quarter as compared to the
third quarter of 2022. The sales growth was across a broad number
of US and international programs.
Industrial
- Total Industrial sales of $38.8 million in the third quarter of
2023 decreased 17.4% (21.3% in constant currency) compared to the
third quarter of 2022. Strong automotive sales growth did not
offset further decline in Hexcel’s wind energy sales, which is
reflective of the challenges facing the global wind industry.
Consolidated Operations
Gross margin for the third quarter of 2023 was 21.8% compared to
22.4% in the third quarter of 2022. The company’s infrastructure is
positioned to support higher growth rates forecasted, however given
the expected softer seasonal sales, margins were impacted in the
current period. As a percentage of sales, selling, general and
administrative and R&T expenses for the third quarter of 2023
were 11.6% compared to 11.1% for the third quarter of 2022.
Adjusted operating income in the third quarter of 2023 was $42.8
million or 10.2% of sales, compared to $41.2 million, or 11.3% of
sales in 2022. A pre-tax net gain of $0.8 million is included in
other operating income in the third quarter of 2023 from the sale
of a facility in Windsor, Colorado. Foreign exchange rates had no
impact on operating income as a percent of sales in the third
quarter of 2023 compared to the third quarter of 2022.
Year-to-Date 2023
Results
Sales for the first nine months of 2023 were $1,331.5 million
compared to $1,148.3 million, a 16.0% increase from the same period
in 2022.
Commercial Aerospace (60% of YTD sales)
- Commercial Aerospace sales of $800.7 million increased 22.1%
(21.5% in constant currency) for the first nine months of 2023
compared to the first nine months of 2022, with growth driven by
the Airbus A350 and A320neo programs and the Boeing 787 program.
Other Commercial Aerospace increased 18.9% for the first nine
months of 2023 compared to the same period in 2022, on growing
business jet sales.
Space & Defense (30% of YTD sales)
- Space & Defense sales of $392.5 million increased 15.9%
(15.5% in constant currency) for the first nine months of 2023 as
compared to the first nine months of 2022. Broad-based growth drove
the sales increase including US and international military
helicopters and international fixed-wing aircraft programs.
Industrial (10% of YTD sales)
- Total Industrial sales of $138.3 million in the first nine
months of 2023 decreased 10.2% (10.9% in constant currency)
compared to the first nine months of 2022 as lower wind energy
sales were only partially offset by growth in automotive
sales.
Consolidated Operations
Gross margin for the first nine months of 2023 was 24.8%
compared to 22.5% in the prior year period benefiting from higher
sales volume leverage. As a percentage of sales, selling, general
and administrative and R&T expenses for the first nine months
of 2023 were 12.2% compared to 12.3% for the first nine months of
2022. Adjusted operating income for the first nine months of 2023
was $167.6 million or 12.6% of sales, compared to $117.0 million or
10.2% of sales in 2022. Other operating income for the first nine
months of 2023 included a pre-tax net gain of $0.8 million from the
sale of the Windsor, Colorado facility offset by restructuring
costs. Other operating income for the first nine months of 2022
included a pre-tax net gain of $19.4 million from a property sale
in California, partially offset by restructuring costs. The impact
of exchange rates on operating income as a percent of sales was
favorable by approximately 40 basis points in the first nine months
of 2023 compared to the first nine months of 2022.
Cash and other
- Net cash provided by operating activities in the first nine
months of 2023 was $98.1 million, compared to $56.4 million for the
first nine months of 2022. Working capital was a cash use of $112.1
million for the first nine months of 2023 and a use of $115.0
million for the comparable period in 2022. The strong focus on
inventory continues, resulting in an inventory reduction in the
third quarter of 2023. Capital expenditures on a cash basis were
$94.4 million for the first nine months of 2023 including
approximately $38 million for the purchase of the land and building
at the Hexcel Amesbury, Massachusetts facility. Capital
expenditures for the first nine months of 2022 were $58.3 million.
Net cash used for investing activities for the nine months ended
September 30, 2023 included net proceeds of $10.3 million received
from the sale of the Colorado facility. Net cash used for investing
activities for the nine months ended September 30, 2022 included
the net proceeds of $21.2 million received from the sale of a
facility in California. Free cash flow was $3.7 million in the
first nine months of 2023, which includes the Massachusetts
property purchase, and does not include the property sale in
Colorado. This compares to ($1.9) million in the first nine months
of 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 $88.7 million and $49.1
million for the first nine months of 2023 and 2022,
respectively.
- The Company used approximately $30 million to repurchase shares
of its common stock during the third quarter. The remaining
authorization under the share repurchase program on September 30,
2023 was $187 million.
- As announced today, the Board of Directors declared a quarterly
dividend of $0.125 per share payable to stockholders of record as
of November 3, 2023, with a payment date of November 13, 2023.
- The underlying effective tax rate for 2023 is now expected to
be 21%, representing a decrease from the prior expectations of
23%.
2023 Guidance
- Sales of $1.765 billion to $1.835 billion
- Adjusted diluted earnings per share of $1.80 to $1.94
- Free cash flow of greater than $110 million
- Accrual basis capital expenditures of approximately $130
million
- Underlying annual effective tax rate is estimated to be 21%
(previously 23%)
Hexcel will host a conference call at 10:00 a.m. ET, on October
24, 2023 to discuss third quarter 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/191886387 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; the revenues we may generate from an aircraft
model or program; the impact of the push-out in deliveries of the
Airbus and Boeing backlog and the impact of delays in the startup
or ramp-up of new aircraft programs or the final Hexcel composite
material content once the design and material selection have been
completed; expectations with regard to the impact of regulatory
activity related to, or the build rate of, the Boeing 737 MAX or
Boeing 787 and the related impact 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 wind
energy, recreation, automotive and other industrial applications;
expectations regarding working capital trends and expenditures 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 and
other goals, including, but not limited to, our sustainability
goals; expectations regarding the sale of certain of our assets;
expectations with regard to cybersecurity measures taken to protect
confidential and proprietary information; expectations regarding
the outcome of legal matters or the impact of changes in laws or
regulations or government policies; and the anticipated impact of
the above factors and various market risks on our expectations of
financial results for 2023 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 geopolitical issues or conflicts,
and the ongoing market recovery following the COVID-19 pandemic,
including continued disruption in global financial markets and
supply chains, and labor shortages; reductions in sales to any
significant customers, particularly Airbus or Boeing, including
related to regulatory activity 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;
availability and cost of raw materials, including the impact of
supply shortages and inflation; supply chain disruptions, which
have been exacerbated by certain geopolitical conflicts; our
ability to successfully implement or realize our business
strategies, plans, goals and objectives of management, including
our sustainability goals and any restructuring or alignment
activities in which we may engage; changes in sales mix; changes in
current pricing and cost levels, including cost inflation, which
has been exacerbated by certain geopolitical conflicts; changes in
aerospace delivery rates; changes in government defense procurement
budgets; changes in military aerospace program technology; timely
new product development or introduction; industry capacity;
increased competition; 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,
but not limited to, the effect of change in global trade policies,
such as sanctions imposed as a result of geopolitical issues or
conflicts; 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; the potential impact of environmental, social and
governance matters; 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
Nine Months Ended
September 30,
September 30,
(In millions, except per share data)
2023
2022
2023
2022
Net sales
$
419.5
$
364.7
$
1,331.5
$
1,148.3
Cost of sales
327.9
282.9
1,001.4
890.3
Gross margin
91.6
81.8
330.1
258.0
% Gross Margin
21.8
%
22.4
%
24.8
%
22.5
%
Selling, general and administrative
expenses
35.4
29.0
121.9
107.2
Research and technology expenses
13.4
11.6
40.6
33.8
Other operating expense (income)
(0.8
)
0.4
(0.1
)
(17.7
)
Operating income
43.6
40.8
167.7
134.7
Interest expense, net
7.8
9.0
26.4
27.0
Other income
-
-
-
(0.3
)
Income before income taxes, and equity in
earnings of affiliated companies
35.8
31.8
141.3
108.0
Income tax (benefit) expense
(0.7
)
6.8
22.5
24.2
Income before equity in earnings of
affiliated companies
36.5
25.0
118.8
83.8
Equity in earnings from affiliated
companies
2.2
1.8
5.1
5.5
Net income
$
38.7
$
26.8
$
123.9
$
89.3
Basic net income per common share:
$
0.46
$
0.32
$
1.46
$
1.06
Diluted net income per common share:
$
0.45
$
0.31
$
1.45
$
1.05
Weighted-average common shares:
Basic
84.6
84.4
84.6
84.4
Diluted
85.6
85.1
85.5
85.0
Hexcel Corporation and
Subsidiaries
Condensed Consolidated Balance
Sheets
Unaudited
September 30,
December 31,
(In millions)
2023
2022
Assets
Cash and cash equivalents
$
97.7
$
112.0
Accounts receivable, net
236.8
222.7
Inventories, net
350.8
319.3
Contract assets
31.4
32.0
Prepaid expenses and other current
assets
48.7
38.9
Assets held for sale
-
9.5
Total current assets
765.4
734.4
Property, plant and equipment
3,144.7
3,087.9
Less accumulated depreciation
(1,491.7
)
(1,430.1
)
Net property, plant and equipment
1,653.0
1,657.8
Goodwill and other intangible assets,
net
250.6
256.0
Investments in affiliated companies
51.5
47.6
Other assets
125.8
141.5
Total assets
$
2,846.3
$
2,837.3
Liabilities and Stockholders'
Equity
Liabilities:
Short-term borrowings
$
0.1
$
0.2
Accounts payable
97.8
155.5
Accrued compensation and benefits
70.2
69.6
Accrued liabilities
84.8
104.5
Total current liabilities
252.9
329.8
Long-term debt
754.1
723.3
Retirement obligations
44.9
42.7
Other non-current liabilities
148.1
187.3
Total liabilities
$
1,200.0
$
1,283.1
Stockholders' equity:
Common stock, $0.01 par value, 200.0
shares authorized, 110.7 shares issued at September 30, 2023 and
110.4 shares issued at December 31, 2022
$
1.1
$
1.1
Additional paid-in capital
931.5
905.0
Retained earnings
2,197.3
2,104.9
Accumulated other comprehensive loss
(167.7
)
(174.4
)
2,962.2
2,836.6
Less – Treasury stock, at cost, 26.6
shares at September 30, 2023 and 26.2 shares at December 31,
2022
(1,315.9
)
(1,282.4
)
Total stockholders' equity
1,646.3
1,554.2
Total liabilities and stockholders'
equity
$
2,846.3
$
2,837.3
Hexcel Corporation and
Subsidiaries
Condensed Consolidated Statements of
Cash Flows
Unaudited
Nine Months Ended
September 30,
(In millions)
2023
2022
Cash flows from operating
activities
Net income
$
123.9
$
89.3
Reconciliation to net cash provided by
operating activities:
Depreciation and amortization
93.2
94.9
Amortization related to financing
0.5
0.6
Deferred income taxes
(12.3
)
(8.5
)
Equity in earnings from affiliated
companies
(5.1
)
(5.5
)
Stock-based compensation
18.3
15.2
Restructuring expenses, net of
payments
(4.1
)
(6.1
)
Impairment of assets
1.7
-
Gain on sale of assets
(0.8
)
(19.4
)
Gain on sale of investments
-
(0.3
)
Changes in assets and liabilities:
Increase in accounts receivable
(15.8
)
(53.1
)
Increase in inventories
(33.2
)
(82.0
)
Increase in prepaid expenses and other
current assets
(9.4
)
(11.6
)
(Decrease) increase in accounts
payable/accrued liabilities
(53.7
)
31.7
Other - net
(5.1
)
11.2
Net cash provided by operating activities
(a)
98.1
56.4
Cash flows from investing
activities
Capital expenditures (b)
(94.4
)
(58.3
)
Proceeds from sale of assets
10.3
21.2
Proceeds from sale of investments
2.5
0.5
Net cash used for investing activities
(81.6
)
(36.6
)
Cash flows from financing
activities
Borrowings from senior unsecured credit
facilities
163.0
35.0
Repayments of senior unsecured credit
facilities
(133.0
)
(61.0
)
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
(0.1
)
(0.4
)
Dividends paid
(31.7
)
(25.3
)
Activity under stock plans
4.7
3.1
Net cash used for financing activities
(29.7
)
(48.6
)
Effect of exchange rate changes on cash
and cash equivalents
(1.1
)
(8.0
)
Net decrease in cash and cash
equivalents
(14.3
)
(36.8
)
Cash and cash equivalents at beginning of
period
112.0
127.7
Cash and cash equivalents at end of
period
$
97.7
$
90.9
Supplemental data:
Free Cash Flow (a)+(b)
$
3.7
$
(1.9
)
Accrual basis additions to property, plant
and equipment
$
88.7
$
49.1
Hexcel Corporation and
Subsidiaries
Net Sales to Third-Party Customers by
Market
Quarters Ended September 30, 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
$
251.9
$
209.1
20.5
$
2.2
$
211.3
19.2
Space & Defense
128.8
108.6
18.6
1.4
110.0
17.1
Industrial
38.8
47.0
(17.4
)
2.3
49.3
(21.3
)
Consolidated Total
$
419.5
$
364.7
15.0
$
5.9
$
370.6
13.2
Consolidated % of Net Sales
%
%
%
Commercial Aerospace
60.0
57.3
57.0
Space & Defense
30.7
29.8
29.7
Industrial
9.3
12.9
13.3
Consolidated Total
100.0
100.0
100.0
Nine Months Ended September 30, 2023
and 2022
Unaudited
(In millions)
As Reported
Constant Currency (a)
B/(W)
FX
B/(W)
Market
2023
2022
%
Effect (b)
2022
%
Commercial Aerospace
$
800.7
$
655.6
22.1
$
3.6
$
659.2
21.5
Space & Defense
392.5
338.7
15.9
1.2
339.9
15.5
Industrial
138.3
154.0
(10.2
)
1.3
155.3
(10.9
)
Consolidated Total
$
1,331.5
$
1,148.3
16.0
$
6.1
$
1,154.4
15.3
Consolidated % of Net Sales
%
%
%
Commercial Aerospace
60.1
57.1
57.1
Space & Defense
29.5
29.5
29.4
Industrial
10.4
13.4
13.5
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 nine months ended September 30, 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
Third Quarter 2023
Net sales to external customers
$
340.5
$
79.0
$
-
$
419.5
Intersegment sales
16.2
0.2
(16.4
)
-
Total sales
356.7
79.2
(16.4
)
419.5
Other operating income
(0.8
)
-
-
(0.8
)
Operating income (loss)
43.7
6.2
(6.3
)
43.6
% Operating margin
12.3
%
7.8
%
10.4
%
Depreciation and amortization
27.8
3.7
-
31.5
Stock-based compensation expense
1.0
0.3
1.3
2.6
Accrual based additions to capital
expenditures
15.6
2.6
-
18.2
Third Quarter 2022
Net sales to external customers
$
293.5
$
71.2
$
-
$
364.7
Intersegment sales
15.4
0.7
(16.1
)
-
Total sales
308.9
71.9
(16.1
)
364.7
Other operating expense
0.4
-
-
0.4
Operating income (loss)
41.4
6.0
(6.6
)
40.8
% Operating margin
13.4
%
8.3
%
11.2
%
Depreciation and amortization
27.5
3.5
-
31.0
Stock-based compensation expense
1.0
0.3
1.1
2.4
Accrual based additions to capital
expenditures
17.9
2.8
0.1
20.8
First Nine Months 2023
Net sales to external customers
$
1,097.2
$
234.3
$
-
$
1,331.5
Intersegment sales
54.0
1.7
(55.7
)
-
Total sales
1,151.2
236.0
(55.7
)
1,331.5
Other operating (income) expense
(0.3
)
0.2
-
(0.1
)
Operating income (loss)
181.1
25.0
(38.4
)
167.7
% Operating margin
15.7
%
10.6
%
12.6
%
Depreciation and amortization
82.5
10.7
-
93.2
Stock-based compensation expense
5.2
1.4
11.7
18.3
Accrual based additions to capital
expenditures
41.6
47.1
-
88.7
First Nine Months 2022
Net sales to external customers
$
925.4
$
222.9
$
-
$
1,148.3
Intersegment sales
50.4
2.0
(52.4
)
-
Total sales
975.8
224.9
(52.4
)
1,148.3
Other operating expense (income)
1.6
0.1
(19.4
)
(17.7
)
Operating income (loss)
131.2
25.7
(22.2
)
134.7
% Operating margin
13.4
%
11.4
%
11.7
%
Depreciation and amortization
84.2
10.6
0.1
94.9
Stock-based compensation expense
4.5
1.3
9.4
15.2
Accrual based additions to capital
expenditures
42.5
6.5
0.1
49.1
(a)
Hexcel does not allocate
corporate expenses to the operating segments.
Hexcel Corporation and
Subsidiaries
Reconciliation of GAAP to Non-GAAP
Operating Income, Net Income, EPS and Operating Cash Flow to Free
Cash Flow
Table C
Unaudited
Quarters Ended
Nine Months Ended
September 30,
September 30,
(In millions)
2023
2022
2023
2022
GAAP operating income
$
43.6
$
40.8
$
167.7
$
134.7
Other operating (income) expense (a)
(0.8
)
0.4
(0.1
)
(17.7
)
Non-GAAP operating income
$
42.8
$
41.2
$
167.6
$
117.0
Unaudited
Quarters Ended September 30,
2023
2022
(In millions, except per diluted share
data)
Net
Income
EPS
Net
Income
EPS
GAAP
$
38.7
$
0.45
$
26.8
$
0.31
Other operating (income) expense, net of
tax (a)
(0.6
)
(0.01
)
0.3
-
Tax (benefit) expense (b)
(5.6
)
(0.06
)
1.3
0.02
Non-GAAP
$
32.5
$
0.38
$
28.4
$
0.33
Unaudited
Nine Months Ended September
30,
2023
2022
(In millions, except per diluted share
data)
Net
Income
EPS
Net
Income
EPS
GAAP
$
123.9
$
1.45
$
89.3
$
1.05
Other operating income, net of tax (a)
(0.1
)
-
(15.2
)
(0.19
)
Other income
-
-
(0.3
)
-
Tax (benefit) expense (b)
(5.6
)
(0.07
)
1.3
0.02
Non-GAAP
$
118.2
$
1.38
$
75.1
$
0.88
Unaudited
Nine Months Ended September
30
(In millions)
2023
2022
Net cash provided by operating
activities
$
98.1
$
56.4
Less: Capital expenditures
(94.4
)
(58.3
)
Free cash flow (non-GAAP)
$
3.7
$
(1.9
)
(a)
The quarter and nine months ended
September 30, 2023 included the net gain of $0.8 million from the
sale of a facility in Windsor, Colorado and restructuring costs.
The nine months ended September 30, 2022 included the net gain of
$19.4 million from the sale of a facility in Dublin, California and
both the quarter and nine months ended September 30, 2022 included
restructuring costs.
(b)
The quarter and nine months ended
September 30, 2023 included a discrete tax benefit of $5.6 million,
primarily related to adjustments to our provision based on the
finalization of prior year tax returns. The quarter and nine months
ended September 30, 2022 included a discrete tax charge of $1.3
million 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
September 30,
December 31,
September 30,
(In millions)
2023
2022
2022
Current portion finance lease
$
0.1
$
0.2
$
0.3
Total current debt
0.1
0.2
0.3
Senior unsecured credit facility
55.0
25.0
99.0
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
)
(1.0
)
Senior notes deferred financing costs
(1.7
)
(2.2
)
(2.4
)
Other debt
1.5
1.4
1.4
Total long-term debt
754.1
723.3
797.0
Total Debt
754.2
723.5
797.3
Less: Cash and cash equivalents
(97.7
)
(112.0
)
(90.9
)
Total debt, net of cash
$
656.5
$
611.5
$
706.4
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231023723560/en/
Kurt Goddard | Vice President Investor Relations |
Kurt.Goddard@Hexcel.com | +1 (203)-352-6826
Grafico Azioni Hexcel (NYSE:HXL)
Storico
Da Dic 2024 a Gen 2025
Grafico Azioni Hexcel (NYSE:HXL)
Storico
Da Gen 2024 a Gen 2025
