Regulatory News:
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Q1 2019 diluted EPS was $0.84 compared to Q1 2018 diluted EPS of
$0.68, a 23.5% year-over-year increase.
-
Q1 2019 Sales were $609.9 million, an increase of 12.9% over first
quarter 2018 (14.9% increase in constant currency).
-
Free Cash Flow* for Q1 2019 was negative $15.2 million compared to
positive $3.1 million in Q1 2018.
-
Full year 2019 guidance is reaffirmed.
*Free cash flow is operating cash flow less cash paid for capital
expenditures.
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Summary of Results from Operations
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Quarters Ended
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March 31,
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(In millions, except per share data)
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2019
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2018
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% Change
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Net Sales
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$
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609.9
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$
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540.1
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12.9
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%
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Net sales change in constant currency
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14.9
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%
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Operating Income
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102.8
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82.4
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24.8
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%
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As a % of sales
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16.9
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%
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15.3
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%
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Net Income
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72.2
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61.6
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17.2
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%
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Diluted net income per common share
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$
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0.84
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$
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0.68
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23.5
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%
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Hexcel Corporation (NYSE: HXL) today reported first quarter 2019 results
including net sales of $609.9 million and diluted EPS of $0.84.
Nick Stanage, Chairman, CEO and President said: “Our results this
quarter reflect a strong start to the year and reaffirm our confidence
in our guidance for 2019. Hexcel generated its highest ever quarterly
sales with growth across all of our markets, and our diluted earnings
per share increased by over 23% compared to Q1 2018. With strong sales
growth and most of the headwinds that challenged us in 2018 now behind
us, margins have stepped up year over year as we forecasted. Reflecting
robust revenue growth in the period there was a $15 million use of cash
in the first quarter related to working capital, in line with
expectations. The integration of our latest acquisition, ARC
Technologies, continues on track with strong first quarter performance.
As we take this momentum forward into the year, we remain focused on
innovation to support next-generation composite solutions for our
customers, operational excellence and continued cash generation.”
Markets
Sales for the first quarter of 2019 were $609.9 million, an increase of
12.9% (14.9% in constant currency) compared to the first quarter of 2018.
Commercial Aerospace
-
Commercial Aerospace sales of $415.5 million increased 8.6% (9.6% in
constant currency) for the first quarter of 2019 as compared to the
prior year period. The quarter saw positive growth for most programs
with particularly strong performance for the A320neo and B737 MAX as
well as continued growth for the Boeing 787 and Airbus A350 widebody
programs. Despite obvious uncertainties related to the B737 MAX,
overall demand remains strong globally and provides confidence in the
Company’s projected growth for the year.
-
Sales to “Other Commercial Aerospace” which includes regional and
business aircraft, were up 7% for the first quarter of 2019 as
compared to 2018, driven primarily by business jets.
Space & Defense
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Space & Defense sales of $107.8 million increased 19.6% (21.8% in
constant currency) for the quarter as compared to the first quarter of
2018. Revenue from ARC Technologies, acquired in January 2019, is now
included in Space & Defense sales. Growth in the F-35 Joint Strike
Fighter was the primary driver in the quarter along with continued
strength in military rotorcraft. Rotorcraft now accounts for just over
40% of Space & Defense sales compared to about 50% previously, with
the change attributable to the acquisition of ARC Technologies which
strengthens the Company’s position in military programs.
Industrial
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Total Industrial sales of $86.6 million for the first quarter of 2019
increased 28.7% (36.8% in constant currency) as compared to the first
quarter of 2018. Wind energy sales (the largest sub-market in
Industrial) increased 78.0% in constant currency compared to Q1 2018
which preceded a rate ramp up that began in mid-2018.
Consolidated Operations
-
Gross margin for the first quarter of 2019 was 27.4% compared to 26.4%
in the first quarter of 2018. The year-over-year improvement reflects
strong operational execution combined with the decline in a number of
operational headwinds, including acrylonitrile (AN) pricing and wind
energy resin pricing, resulting in a robust improvement in margin
intensity. The Company’s newest plant in Roussillon, France is fully
operational and producing qualified precursor and aerospace-grade
carbon fiber to help meet growing demand in the region.
-
Operating expenses for the first quarter were in line with Company
expectations, although higher than Q1 2018 due to an increase in
product qualifications and R&T expenditures, both of which reflect the
Company’s continued focus on innovation and growth. Selling, General
and Administrative expenses were up 6.7%, and Research & Technology
expenses were up 8.0%.
-
Operating income in the first quarter of 2019 was $102.8 million, or
16.9% of sales, compared to $82.4 million, or 15.3% of sales, in 2018.
Exchange rates, after taking hedges into account, favorably impacted
the first quarter by approximately 50 basis points compared to 2018.
Cash and Other
-
The tax provision was $20.6 million for the quarter, based on an
effective tax rate of 22.7%, compared to 18.9% in 2018. Both periods
benefitted from deductions associated with share-based compensation
payments, as this activity is typically highest in the first quarter.
The underlying effective tax rate is expected to be 24% for the
remaining quarters of the year.
-
Free cash flow in the first quarter of 2019 was a usage of $15.2
million compared to the generation of $3.1 million in the first
quarter of 2018, an $18.3 million year-over-year decrease. Working
capital was a use of $78.4 million in the first quarter of 2019
compared to a $46.2 million use in the first quarter of 2018. The
majority of the increase was driven by increased accounts receivable.
Capital expenditures (accrual basis) were $57.5 million in first
quarter 2019 compared to $45.3 million in first quarter 2018. Free
cash flow is defined as cash provided from operating activities less
cash paid for capital expenditures.
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The Company used $11 million to repurchase shares of its common stock
during the first quarter of 2019 and has $374 million remaining under
the authorized share repurchase program.
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As announced today, the Board of Directors declared a quarterly
dividend of $0.15 per share payable to stockholders of record as of
May 3, 2019, with a payment date of May 10, 2019.
2019 Guidance (unchanged)
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Sales of $2.375 billion to $2.475 billion
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Adjusted diluted earnings per share of $3.38 to $3.52
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Free cash flow greater than $250 million
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Accrual basis capital expenditures of $170 million to $190 million
* The Company is not providing a quantitative reconciliation of our
non-GAAP guidance to the corresponding GAAP information because the GAAP
measures that we exclude from our non-GAAP guidance are difficult to
predict and are primarily dependent on future uncertainties.
*****
Hexcel will host a conference call at 9:00 a.m. ET, on April 24, 2019 to
discuss the first quarter 2019 results. The event will be webcast via
the investor
relations webpage at www.hexcel.com.
The event can also be accessed by dialing +1 (647) 689-5685 and the
conference ID is 4284658. Replays of the call will be available on the
website.
*****
Hexcel Corporation is a leading advanced composites company. It
develops, manufactures and markets lightweight, high-performance
structural materials, including carbon fibers, specialty reinforcements,
prepregs and other fiber-reinforced matrix materials, honeycomb,
adhesives, engineered core and composite structures, used in commercial
aerospace, space and defense and industrial applications. Learn more at www.Hexcel.com.
*****
Disclaimer on Forward Looking Statements
This news release contains statements that are forward looking within
the meaning of Section 21E of the Securities Exchange Act of 1934, as
amended, including statements relating to the estimates and expectations
based on aircraft production rates made publicly available by Airbus,
Boeing and others; the revenues we may generate from an aircraft model
or program; the impact of the possible 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 of composite content on new commercial aircraft programs
and our share of those requirements; expectations of growth in revenues
from space and defense applications, including whether certain programs
might be curtailed or discontinued; expectations regarding growth in
sales for wind energy, recreation, automotive and other industrial
applications; expectations regarding working capital trends and
expenditures; expectations as to the level of capital expenditures and
when we will complete the construction of capacity expansions and
qualification of new products; expectations regarding our ability to
maintain and improve margins as we add new facilities and in view of the
current economic environment; projections regarding our tax rate; and
the anticipated impact of the above factors and various market risks on
our expectations of financial results for 2019 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 reductions in sales to any significant customers,
particularly Airbus, Boeing or Vestas, including any reduction in sales
to Boeing related to a decrease in production volume of the 737 MAX;
changes in sales mix; changes in current pricing and cost levels;
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; availability and cost of raw materials;
supply chain disruptions; inability to install, staff and qualify
necessary capacity or achievement of planned manufacturing
improvements; cybersecurity breaches or intrusions; currency exchange
rate fluctuations; changes in political, social and economic conditions;
including, but not limited to, the effect of change in U.S. trade
policies and the exit of the U.K. from the European Union; work
stoppages or other labor disruptions; 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.
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Hexcel Corporation and Subsidiaries
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Consolidated Statements of Operations
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Unaudited
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Quarters Ended
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March 31,
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(In millions, except per share data)
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2019
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2018
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Net sales
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$
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609.9
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$
|
540.1
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Cost of sales
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442.7
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397.5
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Gross margin
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167.2
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142.6
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% Gross Margin
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27.4
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%
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26.4
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%
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Selling, general and administrative expenses
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49.5
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46.4
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Research and technology expenses
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14.9
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13.8
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Operating income
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102.8
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82.4
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Interest expense, net
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12.0
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8.0
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Income before income taxes, and equity in earnings of affiliated
companies
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90.8
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74.4
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Provision for income taxes
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|
20.6
|
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14.1
|
|
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Income before equity in earnings of affiliated companies
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70.2
|
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60.3
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Equity in earnings from affiliated companies
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|
2.0
|
|
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1.3
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|
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Net income
|
|
|
$
|
72.2
|
|
|
|
$
|
61.6
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Basic net income per common share:
|
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$
|
0.85
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$
|
0.68
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Diluted net income per common share:
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$
|
0.84
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$
|
0.68
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Weighted-average common shares:
|
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Basic
|
|
|
|
85.0
|
|
|
|
|
90.0
|
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Diluted
|
|
|
|
86.0
|
|
|
|
|
91.2
|
|
|
|
|
|
|
|
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Hexcel Corporation and Subsidiaries
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Consolidated Balance Sheets
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Unaudited
|
|
|
|
|
|
|
March 31,
|
|
|
|
|
December 31,
|
|
|
(In millions)
|
|
|
|
2019
|
|
|
|
|
2018
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
43.7
|
|
|
|
$
|
32.7
|
|
|
Accounts receivable, net
|
|
|
|
324.3
|
|
|
|
|
260.9
|
|
|
Inventories, net
|
|
|
|
334.5
|
|
|
|
|
297.8
|
|
|
Contract assets
|
|
|
|
53.7
|
|
|
|
|
50.5
|
|
|
Prepaid expenses and other current assets
|
|
|
|
26.1
|
|
|
|
|
33.9
|
|
|
Total current assets
|
|
|
|
782.3
|
|
|
|
|
675.8
|
|
|
|
|
|
|
|
|
|
|
|
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|
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Property, plant and equipment
|
|
|
|
2,894.5
|
|
|
|
|
2,839.9
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|
|
Less accumulated depreciation
|
|
|
|
(991.8
|
)
|
|
|
|
(963.4
|
)
|
|
Net property, plant and equipment
|
|
|
|
1,902.7
|
|
|
|
|
1,876.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill and other intangible assets, net
|
|
|
|
286.2
|
|
|
|
|
142.3
|
|
|
Investments in affiliated companies
|
|
|
|
50.9
|
|
|
|
|
48.7
|
|
|
Other assets
|
|
|
|
143.9
|
|
|
|
|
80.8
|
|
|
Total assets
|
|
|
$
|
3,166.0
|
|
|
|
$
|
2,824.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity
|
|
|
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|
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|
|
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|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Short-term borrowings
|
|
|
$
|
9.7
|
|
|
|
$
|
9.4
|
|
|
Accounts payable
|
|
|
|
165.2
|
|
|
|
|
161.9
|
|
|
Accrued compensation and benefits
|
|
|
|
62.1
|
|
|
|
|
75.8
|
|
|
Accrued liabilities
|
|
|
|
112.9
|
|
|
|
|
79.6
|
|
|
Total current liabilities
|
|
|
|
349.9
|
|
|
|
|
326.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term debt
|
|
|
|
1,160.0
|
|
|
|
|
947.4
|
|
|
Retirement obligations
|
|
|
|
42.1
|
|
|
|
|
42.0
|
|
|
Other non-current liabilities
|
|
|
|
241.6
|
|
|
|
|
186.0
|
|
|
Total liabilities
|
|
|
$
|
1,793.6
|
|
|
|
$
|
1,502.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity:
|
|
|
|
|
|
|
|
|
|
|
|
Common stock, $0.01 par value, 200.0 shares authorized,
108.8 shares issued at March 31, 2019 and 108.5 shares
issued at December 31, 2018
|
|
|
$
|
1.1
|
|
|
|
$
|
1.1
|
|
|
Additional paid-in capital
|
|
|
|
811.8
|
|
|
|
|
798.3
|
|
|
Retained earnings
|
|
|
|
1,786.0
|
|
|
|
|
1,726.5
|
|
|
Accumulated other comprehensive loss
|
|
|
|
(113.9
|
)
|
|
|
|
(108.0
|
)
|
|
|
|
|
|
2,485.0
|
|
|
|
|
2,417.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less – Treasury stock, at cost, 24.0 at March 31, 2019 and 23.7
shares issued at December 31, 2018, respectively
|
|
|
|
(1,112.6
|
)
|
|
|
|
(1,095.9
|
)
|
|
Total stockholders' equity
|
|
|
|
1,372.4
|
|
|
|
|
1,322.0
|
|
|
Total liabilities and stockholders' equity
|
|
|
$
|
3,166.0
|
|
|
|
$
|
2,824.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hexcel Corporation and Subsidiaries
|
|
|
|
|
|
|
|
|
|
|
Consolidated Statements of Cash Flows
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
Quarters Ended
|
|
|
|
|
|
March 31.
|
|
|
(In millions)
|
|
|
2019
|
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from operating activities
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
$
|
72.2
|
|
|
$
|
61.6
|
|
|
Reconciliation to net cash provided by operating activities:
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
38.7
|
|
|
|
29.8
|
|
|
Amortization related to financing
|
|
|
|
0.3
|
|
|
|
0.3
|
|
|
Deferred income taxes
|
|
|
|
4.2
|
|
|
|
10.1
|
|
|
Equity in earnings from affiliated companies
|
|
|
|
(2.0
|
)
|
|
|
(1.3
|
)
|
|
Stock-based compensation
|
|
|
|
11.1
|
|
|
|
9.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Changes in assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
Increase in accounts receivable
|
|
|
|
(59.4
|
)
|
|
|
(41.2
|
)
|
|
Increase in inventories
|
|
|
|
(32.3
|
)
|
|
|
(14.6
|
)
|
|
(Increase) decrease in prepaid expenses and other current assets
|
|
|
|
(5.8
|
)
|
|
|
2.6
|
|
|
Increase in accounts payable/accrued liabilities
|
|
|
|
19.1
|
|
|
|
7.0
|
|
|
Other - net
|
|
|
|
(0.2
|
)
|
|
|
(1.6
|
)
|
|
Net cash provided by operating activities (a)
|
|
|
|
45.9
|
|
|
|
62.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures (b)
|
|
|
|
(61.1
|
)
|
|
|
(59.5
|
)
|
|
Acquisitions of business and investments in affiliates
|
|
|
|
(158.4
|
)
|
|
|
-
|
|
|
Net cash used in investing activities
|
|
|
|
(219.5
|
)
|
|
|
(59.5
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities
|
|
|
|
|
|
|
|
|
|
|
Borrowing from senior unsecured credit facility
|
|
|
|
289.0
|
|
|
|
133.0
|
|
|
Repayment of senior unsecured credit facility
|
|
|
|
(77.0
|
)
|
|
|
(105.0
|
)
|
|
Repayment and finance lease obligation and other debt, net
|
|
|
|
(0.2
|
)
|
|
|
-
|
|
|
Dividends paid
|
|
|
|
(12.7
|
)
|
|
|
(11.2
|
)
|
|
Repurchase of stock
|
|
|
|
(11.2
|
)
|
|
|
(30.1
|
)
|
|
Activity under stock plans
|
|
|
|
(3.0
|
)
|
|
|
(2.2
|
)
|
|
Net cash provided by (used in) financing activities
|
|
|
|
184.9
|
|
|
|
(15.5
|
)
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
|
|
(0.3
|
)
|
|
|
2.1
|
|
|
Net increase (decrease) in cash and cash equivalents
|
|
|
|
11.0
|
|
|
|
(10.3
|
)
|
|
Cash and cash equivalents at beginning of period
|
|
|
|
32.7
|
|
|
|
60.1
|
|
|
Cash and cash equivalents at end of period
|
|
|
$
|
43.7
|
|
|
$
|
49.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental data:
|
|
|
|
|
|
|
|
|
|
|
Free Cash Flow (a)+(b)
|
|
|
$
|
(15.2
|
)
|
|
$
|
3.1
|
|
|
Accrual basis additions to property, plant and equipment
|
|
|
$
|
57.5
|
|
|
$
|
45.3
|
|
|
|
|
|
|
|
|
|
|
|
|
* Management believes that free cash flow (defined as cash
provided by operating activities less cash payments for capital
expenditures), which is a non-GAAP measure, is meaningful to investors
because it provides a view of Hexcel with respect to ongoing 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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales to Third-Party Customers by Market
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarters Ended March 31, 2019 and 2018
|
Unaudited
|
|
|
|
|
|
|
|
Table A
|
|
(In millions)
|
|
|
As Reported
|
|
|
Constant Currency (a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
B/(W)
|
|
|
|
FX
|
|
|
|
|
|
|
|
B/(W)
|
|
Market
|
|
|
|
2019
|
|
|
|
2018
|
|
|
%
|
|
|
|
Effect (b)
|
|
|
|
2018
|
|
|
%
|
|
Commercial Aerospace
|
|
|
$
|
|
415.5
|
|
|
$
|
|
382.7
|
|
|
|
8.6
|
|
|
$
|
|
(3.6
|
)
|
|
$
|
|
379.1
|
|
|
|
9.6
|
|
Space & Defense
|
|
|
|
|
107.8
|
|
|
|
|
90.1
|
|
|
|
19.6
|
|
|
|
|
(1.6
|
)
|
|
|
|
88.5
|
|
|
|
21.8
|
|
Industrial
|
|
|
|
|
86.6
|
|
|
|
|
67.3
|
|
|
|
28.7
|
|
|
|
|
(4.0
|
)
|
|
|
|
63.3
|
|
|
|
36.8
|
|
Consolidated Total
|
|
|
$
|
|
609.9
|
|
|
$
|
|
540.1
|
|
|
|
12.9
|
|
|
$
|
|
(9.2
|
)
|
|
$
|
|
530.9
|
|
|
|
14.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated % of Net Sales
|
|
|
|
%
|
|
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
%
|
|
|
|
|
|
Commercial Aerospace
|
|
|
|
|
68.1
|
|
|
|
|
70.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
71.4
|
|
|
|
|
|
Space & Defense
|
|
|
|
|
17.7
|
|
|
|
|
16.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
16.7
|
|
|
|
|
|
Industrial
|
|
|
|
|
14.2
|
|
|
|
|
12.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11.9
|
|
|
|
|
|
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 ended March 31, 2018
have been estimated using the same U.S. dollar, British pound and
Euro exchange rates as applied for the respective period in 2019 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
|
|
|
First Quarter 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales to external customers
|
|
|
$
|
|
487.7
|
|
|
$
|
|
122.2
|
|
|
$
|
|
-
|
|
|
$
|
|
609.9
|
|
|
Intersegment sales
|
|
|
|
|
19.2
|
|
|
|
|
0.1
|
|
|
|
|
(19.3
|
)
|
|
|
|
-
|
|
|
Total sales
|
|
|
|
|
506.9
|
|
|
|
|
122.3
|
|
|
|
|
(19.3
|
)
|
|
|
|
609.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss)
|
|
|
|
|
112.5
|
|
|
|
|
14.8
|
|
|
|
|
(24.5
|
)
|
|
|
|
102.8
|
|
|
% Operating margin
|
|
|
|
|
22.2
|
%
|
|
|
|
12.1
|
%
|
|
|
|
|
|
|
|
|
16.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
|
34.9
|
|
|
|
|
3.8
|
|
|
|
|
-
|
|
|
|
|
38.7
|
|
|
Stock-based compensation expense
|
|
|
|
|
4.1
|
|
|
|
|
0.8
|
|
|
|
|
6.2
|
|
|
|
|
11.1
|
|
|
Accrual based additions to capital expenditures
|
|
|
|
|
56.8
|
|
|
|
|
0.7
|
|
|
|
|
-
|
|
|
|
|
57.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Quarter 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales to external customers
|
|
|
$
|
|
444.6
|
|
|
$
|
|
95.5
|
|
|
$
|
|
-
|
|
|
$
|
|
540.1
|
|
|
Intersegment sales
|
|
|
|
|
19.2
|
|
|
|
|
-
|
|
|
|
|
(19.2
|
)
|
|
|
|
-
|
|
|
Total sales
|
|
|
|
|
463.8
|
|
|
|
|
95.5
|
|
|
|
|
(19.2
|
)
|
|
|
|
540.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss)
|
|
|
|
|
91.0
|
|
|
|
|
9.9
|
|
|
|
|
(18.5
|
)
|
|
|
|
82.4
|
|
|
% Operating margin
|
|
|
|
|
19.6
|
%
|
|
|
|
10.4
|
%
|
|
|
|
|
|
|
|
|
15.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
|
27.5
|
|
|
|
|
2.3
|
|
|
|
|
-
|
|
|
|
|
29.8
|
|
|
Stock-based compensation expense
|
|
|
|
|
3.6
|
|
|
|
|
0.7
|
|
|
|
|
5.6
|
|
|
|
|
9.9
|
|
|
Accrual based additions to capital expenditures
|
|
|
|
|
45.3
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
45.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
|
Hexcel does not allocate corporate expenses to the operating
segments.
|
|
|
|
|
|
Hexcel Corporation and Subsidiaries
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Schedule of Total Debt, Net of Cash
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table D
|
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
March 31,
|
|
|
|
December 31,
|
|
|
|
March 31,
|
|
|
(In millions)
|
|
|
|
2019
|
|
|
|
2018
|
|
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current portion finance lease
|
|
|
$
|
0.7
|
|
|
$
|
0.3
|
|
|
$
|
-
|
|
|
Euro term loan
|
|
|
|
|
9.0
|
|
|
|
9.1
|
|
|
|
4.4
|
|
|
Total current debt
|
|
|
|
9.7
|
|
|
|
9.4
|
|
|
|
4.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current portion of Euro term loan
|
|
|
|
50.5
|
|
|
|
51.4
|
|
|
|
65.1
|
|
|
Senior unsecured credit facility
|
|
|
|
|
414.0
|
|
|
|
|
202.0
|
|
|
|
|
78.0
|
|
|
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
|
|
|
|
|
(1.9
|
)
|
|
|
|
(2.0
|
)
|
|
|
|
(2.2
|
)
|
|
Senior notes deferred financing costs
|
|
|
|
|
(4.7
|
)
|
|
|
|
(4.8
|
)
|
|
|
|
(5.4
|
)
|
|
Other debt
|
|
|
|
|
2.1
|
|
|
|
|
0.8
|
|
|
|
|
0.1
|
|
|
Total long-term debt
|
|
|
|
|
1,160.0
|
|
|
|
947.4
|
|
|
|
|
835.6
|
|
|
Total Debt
|
|
|
|
|
1,169.7
|
|
|
|
|
956.8
|
|
|
|
|
840.0
|
|
|
Less: Cash and cash equivalents
|
|
|
|
|
(43.7
|
)
|
|
|
|
(32.7
|
)
|
|
|
|
(49.8
|
)
|
|
Total debt, net of cash
|
|
|
$
|
|
1,126.0
|
|
|
$
|
|
924.1
|
|
|
$
|
790.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20190423005912/en/
Copyright Business Wire 2019