Woodward, Inc. (NASDAQ:WWD) today reported financial results for
its 2017 fiscal year and fourth quarter ending September 30,
2017. (All per share amounts are presented on a fully diluted
basis.)
Fourth Quarter Fiscal 2017
Overview
- Net sales for the fourth quarter of fiscal 2017 were $607
million, an increase of 3 percent from the fourth quarter of last
year.
- Net earnings for the fourth quarter of 2017 were $62 million,
compared to $63 million for the fourth quarter of the prior year.
Earnings per share for the fourth quarter of 2017 were $0.98 per
share, compared to $0.99 per share for the fourth quarter of the
prior year.
Fiscal 2017 Overview
- Net sales for fiscal year 2017 were $2.10 billion, an increase
of 4 percent compared to $2.02 billion in the prior year.
- Net earnings for 2017 were $201 million, an 11 percent increase
compared to $181 million in the prior year. Earnings per share were
$3.16 for 2017, an 11 percent increase compared to $2.85 for the
prior year.
- Net cash generated from operating activities for 2017 was $308
million, compared to $435 million from the prior year. Free cash
flow1 was $215 million for 2017, compared to $260 million for
fiscal 2016. The prior year included after-tax proceeds of $155
million from the formation of the joint venture with GE.
“We delivered strong results for the year. The investments and
strategies we have implemented to gain market share in our
Aerospace segment are driving strong performance. We are also
seeing recovery in several of our industrial markets,” said Thomas
A. Gendron, Chairman and Chief Executive Officer. “As we move into
2018, we are optimistic with respect to our Industrial segment,
with improvement in transportation and oil and gas, but we
anticipate ongoing weakness in power generation. We expect momentum
within our Aerospace segment to continue with the launches of the
next generation aircraft and defense strength.”
Segment Results
Aerospace Aerospace segment net sales for the
fourth quarter of fiscal 2017 were $399 million, an increase of 9
percent from $365 million for the fourth quarter a year ago.
Segment earnings for the fourth quarter of 2017 were $86 million,
compared to $80 million for the same quarter a year ago. Segment
earnings as a percent of segment net sales were 21.4 percent for
the fourth quarter of 2017, compared to 22.0 percent in the same
quarter of the prior year.
Aerospace sales growth for the fourth quarter of 2017 was strong
for both defense and commercial programs. Commercial aerospace
performance was fueled by ramping production of next generation
aircraft, with healthy aftermarket sales driven by initial
provisioning. Defense OEM sales continued to benefit from smart
weapons activity. The increase in segment earnings was attributable
to higher sales volume, partially offset by the effects of higher
OEM volumes as compared to the prior year.
For 2017, Aerospace net sales were $1.34 billion, an increase of
9 percent compared to $1.23 billion for the prior year. Segment
earnings as a percent of segment net sales were 19.2 percent in
2017, compared to 18.8 percent in the prior year.
Industrial Industrial segment net sales for the
fourth quarter of fiscal 2017 were $208 million, a decrease of 8
percent compared to $226 million in the fourth quarter a year ago.
Segment earnings for the fourth quarter of 2017 were $23 million,
compared to $19 million in the fourth quarter a year ago. Segment
earnings as a percent of segment net sales were 11.1 percent in the
fourth quarter of 2017, compared to 8.5 percent in the same quarter
of the prior year.
While strength in the fourth quarter continued in natural
gas-fueled trucks in Asia, as well as large gas engines used in
both power generation and oil and gas applications, it was more
than offset by weak sales in industrial gas turbines and renewable
power. The improvement in segment earnings was largely the result
of our cost reduction initiatives, partially offset by the impact
of the lower sales volume.
For fiscal year 2017, Industrial net sales were $756 million, a
decrease of 4 percent compared to $790 million for the prior year.
Segment earnings as a percent of segment net sales were 10.4
percent for both fiscal years 2017 and 2016.
Nonsegment Nonsegment expenses totaled $15
million, or 2.5 percent of net sales, for the fourth quarter of
fiscal 2017, compared to $12 million, or 2.1 percent of net sales,
for the same quarter last year.
For 2017, nonsegment expenses totaled $58 million, or 2.8
percent of net sales, compared to $63 million, or 3.1 percent of
net sales, for the prior year period. Nonsegment expenses in the
prior year period included $16 million of pre-tax special charges.
Nonsegment expenses, excluding the special charges recorded in the
prior year, were higher in 2017 due to facility related costs and
normal variability of certain expenses.
Company Results
Net sales for the fourth quarter of fiscal 2017 were $607
million, compared to $591 million for the fourth quarter of fiscal
2016. Net earnings for the fourth quarter of 2017 were $62 million,
or $0.98 per share, compared to $63 million, or $0.99 per share, in
the fourth quarter of 2016. EBIT1 was $93 million for the fourth
quarter of 2017, an increase of 7 percent compared to $87 million
for the fourth quarter of 2016.
Net sales for fiscal year 2017 were $2.10 billion, compared to
$2.02 billion in the prior year. Net earnings for 2017 were $201
million, compared to $181 million in the prior year. Earnings per
share were $3.16 for 2017, compared to $2.85 for the prior year.
Total EBIT for 2017 was $278 million, an 11 percent increase
compared to $251 million for the prior year.
The effective tax rate for the fourth quarter of 2017 was 28.3
percent, compared to 21.8 percent for the fourth quarter of 2016.
The full year effective tax rate for 2017 was 20.7 percent,
compared to 20.2 percent in the prior year.
Net cash generated from operating activities for 2017 was $308
million, compared to $435 million for fiscal 2016. Free cash flow
was $215 million, compared to $260 million for 2016. The prior
year, for both cash from operations and free cash flow, included
after-tax proceeds of $155 million related to the formation of the
joint venture with GE. Payments for property, plant, and equipment
for 2017 were $92 million, compared with $176 million for 2016.
Total debt was $613 million at September 30, 2017, compared to
$727 million at September 30, 2016. The ratio of
debt-to-debt-plus-equity was 30.9 percent at September 30, 2017,
compared to 37.5 percent at September 30, 2016.
During fiscal 2017, $101 million was returned to stockholders in
the form of repurchased shares and dividends.
Outlook
“In fiscal 2018, we anticipate ongoing growth in our Aerospace
segment, as well as improvement in a number of our Industrial
markets with challenges remaining in others. Additionally, strong
cash generation is expected to continue,” concluded Mr.
Gendron.
For fiscal 2018, net sales are expected to be between $2.2
billion and $2.3 billion. Earnings per share are expected to be
between $3.20 and $3.50, which includes the impact of a significant
increase in the full year expected tax rate to approximately 27
percent.
Conference Call
Woodward will hold an investor conference call at 4:30 p.m. EST,
November 8, 2017, to provide an overview of the financial
performance for the fourth quarter and fiscal year 2017, business
highlights, and outlook for fiscal 2018. You are invited to listen
to the live webcast of our conference call, or a recording, and
view or download accompanying presentation slides at our website,
www.woodward.com.
You may also listen to the call by dialing 1-877-231-2582
(domestic) or 1-478-219-0714 (international). Participants
should call prior to the start time to allow for registration; the
Conference ID is 47791156. An audio replay will be available by
telephone from 7:30 p.m. EST on November 8, 2017 until 11:59 p.m.
EST on November 28, 2017. The telephone number to access the replay
is 1-855-859-2056 (domestic) or 1-404-537-3406 (international),
reference access code 47791156.
A webcast presentation will be available on the website by
clicking the Investors tab, then the Calendar of Events menu
selection and associated webcast link. The call and presentation
will remain accessible on the website for 14 days.
About Woodward, Inc.
Woodward is an independent designer, manufacturer, and service
provider of control solutions for the aerospace and industrial
markets. The company’s innovative fluid, combustion, electrical,
and motion control systems help customers offer cleaner, more
reliable, and more efficient equipment. Our customers include
leading original equipment manufacturers and end users of their
products. Woodward is a global company headquartered in Fort
Collins, Colorado, USA. Visit our website at www.woodward.com, and
connect with us at www.facebook.com/woodwardinc.2
Cautionary Statement
Information in this press release contains forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995 that involve risks and uncertainties, including,
but not limited to, statements regarding our strategic actions and
their proposed effect, future cash generation, sales, earnings, tax
rate, relative profitability, and expectations regarding our
markets and the effect on our performance. Readers are cautioned
that these forward-looking statements are only predictions and are
subject to risks, uncertainties, and assumptions that are difficult
to predict. Factors that could cause actual results and the timing
of certain events to differ materially from the forward-looking
statements include, but are not limited to, a decline in business
with, or financial distress of, Woodward’s significant customers;
global economic uncertainty and instability in the financial
markets; Woodward’s ability to manage product liability claims,
product recalls or other liabilities associated with the products
and services that Woodward provides; Woodward’s ability to obtain
financing, on acceptable terms or at all, to implement its business
plans, complete acquisitions, or otherwise take advantage of
business opportunities or respond to business pressures; Woodward’s
long sales cycle, customer evaluation process, and implementation
period of some of its products and services; Woodward’s ability to
implement and realize the intended effects of any restructuring and
alignment efforts; Woodward’s ability to successfully manage
competitive factors, including prices, promotional incentives,
competitor product development, industry consolidation, and
commodity and other input cost increases; Woodward’s ability to
manage expenses and product mix while responding to sales increases
or decreases; the ability of Woodward’s subcontractors to perform
contractual obligations and its suppliers to provide Woodward with
materials of sufficient quality or quantity required to meet
Woodward’s production needs at favorable prices or at all;
Woodward’s ability to monitor its technological expertise and the
success of, and/or costs associated with, its product development
activities; Woodward’s debt obligations, debt service requirements,
and ability to operate its business, pursue its business strategies
and incur additional debt in light of covenants contained in its
outstanding debt agreements; Woodward’s ability to manage
additional tax expense and exposures; risks related to Woodward’s
U.S. Government contracting activities, including liabilities
resulting from legal and regulatory proceedings, inquiries, or
investigations related to such activities; the potential of a
significant reduction in defense sales due to decreases in the
amount of U.S. Federal defense spending or other specific budget
cuts impacting defense programs in which Woodward participates;
changes in government spending patterns, priorities, subsidy
programs and/or regulatory requirements; future impairment charges
resulting from changes in the estimates of fair value of reporting
units or of long-lived assets; future results of Woodward’s
subsidiaries; environmental liabilities related to manufacturing
activities and/or real estate acquisitions; Woodward’s continued
access to a stable workforce and favorable labor relations with its
employees; physical and other risks related to Woodward’s
operations and suppliers, including natural disasters, which could
disrupt production; Woodward’s ability to successfully manage
regulatory, tax, and legal matters; economic conditions and
downturns, and their impact on Woodward; risks related to
Woodward’s common stock, including changes in prices and trading
volumes; risks from operating internationally, including the impact
on reported earnings from fluctuations in foreign currency exchange
rates, and compliance with and changes in the legal and regulatory
environments of the United States and the countries in which
Woodward operates; fair value of defined benefit plan assets and
assumptions used in determining Woodward’s retirement pension and
other postretirement benefit obligations and related expenses;
industry risks, including increases in natural gas prices,
unforeseen events that may reduce commercial aviation and
increasing emissions standards; Woodward’s operations may be
adversely affected by information systems interruptions or
intrusions; and other risk factors described in Woodward's Annual
Report on Form 10-K for the year ended September 30, 2017, which we
expect to file shortly. All forward looking statements are based on
information and our expectations as of the date of this press
release. Woodward undertakes no obligation to revise or update
these forward looking statements for any reason except as required
by applicable law.
Woodward, Inc. and Subsidiaries |
|
|
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three-Months Ended |
|
Year Ended |
|
|
|
September 30, |
|
September 30, |
(Unaudited - in thousands except per share amounts) |
|
|
|
|
|
2017 |
|
|
|
2016 |
|
|
|
2017 |
|
|
|
2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
sales |
|
|
|
|
$ |
606,788 |
|
|
$ |
590,922 |
|
|
$ |
2,098,685 |
|
|
$ |
2,023,078 |
|
Costs
and expenses: |
|
|
|
|
|
|
|
|
|
|
|
Cost of
goods sold |
|
|
|
|
|
435,129 |
|
|
|
427,263 |
|
|
|
1,526,126 |
|
|
|
1,483,960 |
|
Selling,
general, and administrative expenses |
|
|
|
|
|
46,112 |
|
|
|
45,697 |
|
|
|
176,633 |
|
|
|
174,017 |
|
Research
and development costs |
|
|
|
|
|
34,931 |
|
|
|
32,883 |
|
|
|
126,519 |
|
|
|
126,170 |
|
Interest
expense |
|
|
|
|
|
7,031 |
|
|
|
7,112 |
|
|
|
27,430 |
|
|
|
26,776 |
|
Interest
income |
|
|
|
|
|
(488 |
) |
|
|
(527 |
) |
|
|
(1,725 |
) |
|
|
(2,025 |
) |
Other
(income) expense, net |
|
|
|
|
|
(2,692 |
) |
|
|
(2,262 |
) |
|
|
(9,045 |
) |
|
|
(12,306 |
) |
Total costs and expenses |
|
|
|
|
|
520,023 |
|
|
|
510,166 |
|
|
|
1,845,938 |
|
|
|
1,796,592 |
|
Earnings before
income taxes |
|
|
|
|
|
86,765 |
|
|
|
80,756 |
|
|
|
252,747 |
|
|
|
226,486 |
|
Income taxes |
|
|
|
|
|
24,537 |
|
|
|
17,609 |
|
|
|
52,240 |
|
|
|
45,648 |
|
Net earnings |
|
|
|
|
$ |
62,228 |
|
|
$ |
63,147 |
|
|
$ |
200,507 |
|
|
$ |
180,838 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share amounts: |
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share |
|
|
|
|
$ |
1.02 |
|
|
$ |
1.03 |
|
|
$ |
3.27 |
|
|
$ |
2.92 |
|
Diluted
earnings per share |
|
|
|
|
$ |
0.98 |
|
|
$ |
0.99 |
|
|
$ |
3.16 |
|
|
$ |
2.85 |
|
Weighted
average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
|
|
|
61,303 |
|
|
|
61,527 |
|
|
|
61,366 |
|
|
|
61,893 |
|
Diluted |
|
|
|
|
|
63,477 |
|
|
|
63,475 |
|
|
|
63,512 |
|
|
|
63,556 |
|
Cash dividends per share paid to Woodward common
stockholders |
|
|
|
$ |
0.125 |
|
|
$ |
0.110 |
|
|
$ |
0.485 |
|
|
$ |
0.430 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Woodward, Inc. and Subsidiaries |
|
|
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED BALANCE SHEETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, |
|
September 30, |
|
|
|
|
|
|
|
|
|
|
2017 |
|
|
|
2016 |
|
|
|
|
|
(Unaudited - in thousands) |
|
|
|
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
Current
assets: |
|
|
|
|
|
|
|
|
|
|
|
Cash and
cash equivalents |
|
|
|
|
$ |
87,552 |
|
|
$ |
81,090 |
|
|
|
|
|
Accounts
receivable |
|
|
|
|
|
402,182 |
|
|
|
343,768 |
|
|
|
|
|
Inventories |
|
|
|
|
|
473,505 |
|
|
|
461,683 |
|
|
|
|
|
Income
taxes receivable |
|
|
|
|
|
19,376 |
|
|
|
20,358 |
|
|
|
|
|
Other current assets |
|
|
|
|
|
38,574 |
|
|
|
37,525 |
|
|
|
|
|
Total
current assets |
|
|
|
|
|
1,021,189 |
|
|
|
944,424 |
|
|
|
|
|
Property,
plant, and equipment, net |
|
|
|
|
|
922,043 |
|
|
|
876,350 |
|
|
|
|
|
Goodwill |
|
|
|
|
|
556,545 |
|
|
|
555,684 |
|
|
|
|
|
Intangible assets, net |
|
|
|
|
|
171,882 |
|
|
|
197,650 |
|
|
|
|
|
Deferred
income tax assets |
|
|
|
|
|
19,950 |
|
|
|
20,194 |
|
|
|
|
|
Other assets |
|
|
|
|
|
65,500 |
|
|
|
48,060 |
|
|
|
|
|
Total assets |
|
|
|
|
$ |
2,757,109 |
|
|
$ |
2,642,362 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
stockholders’ equity |
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Short-term borrowings and current portion of long-term
debt |
|
|
|
$ |
32,600 |
|
|
$ |
150,000 |
|
|
|
|
|
Accounts
payable |
|
|
|
|
|
232,788 |
|
|
|
169,439 |
|
|
|
|
|
Income
taxes payable |
|
|
|
|
|
6,774 |
|
|
|
4,547 |
|
|
|
|
|
Accrued liabilities |
|
|
|
|
|
155,072 |
|
|
|
156,627 |
|
|
|
|
|
Total
current liabilities |
|
|
|
|
|
427,234 |
|
|
|
480,613 |
|
|
|
|
|
Long-term
debt, less current portion |
|
|
|
|
|
580,286 |
|
|
|
577,153 |
|
|
|
|
|
Deferred
income tax liabilities |
|
|
|
|
|
33,408 |
|
|
|
3,777 |
|
|
|
|
|
Other liabilities |
|
|
|
|
|
344,798 |
|
|
|
368,224 |
|
|
|
|
|
Total
liabilities |
|
|
|
|
|
1,385,726 |
|
|
|
1,429,767 |
|
|
|
|
|
Stockholders’ equity |
|
|
|
|
|
1,371,383 |
|
|
|
1,212,595 |
|
|
|
|
|
Total liabilities and stockholders’ equity |
|
|
|
|
$ |
2,757,109 |
|
|
$ |
2,642,362 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Woodward, Inc. and Subsidiaries |
|
|
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended |
|
|
|
|
|
|
|
September 30, |
|
|
(Unaudited - in
thousands) |
|
|
|
|
|
2017 |
|
|
|
2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities |
|
|
|
|
$ |
307,537 |
|
|
$ |
435,379 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows used in
investing activities: |
|
|
|
|
|
|
|
|
|
|
|
Payments for property,
plant, and equipment |
|
|
|
|
|
(92,336 |
) |
|
|
(175,692 |
) |
|
|
|
|
Net proceeds from sale
of assets |
|
|
|
|
|
3,743 |
|
|
|
6,664 |
|
|
|
|
|
Proceeds from sales of
short-term investments |
|
|
|
|
|
5,313 |
|
|
|
- |
|
|
|
|
|
Purchases of short-term
investments |
|
|
|
|
|
(8,586 |
) |
|
|
(4,918 |
) |
|
|
|
|
Net cash used in investing activities |
|
|
|
|
|
(91,866 |
) |
|
|
(173,946 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows used in
financing activities: |
|
|
|
|
|
|
|
|
|
|
|
Cash dividends
paid |
|
|
|
|
|
(29,745 |
) |
|
|
(26,606 |
) |
|
|
|
|
Proceeds from sales of
treasury stock |
|
|
|
|
|
14,195 |
|
|
|
15,892 |
|
|
|
|
|
Payments for
repurchases of common stock |
|
|
|
|
|
(71,751 |
) |
|
|
(125,541 |
) |
|
|
|
|
Borrowings on revolving
lines of credit and short-term borrowings |
|
|
|
|
|
1,506,000 |
|
|
|
695,000 |
|
|
|
|
|
Payments on revolving
lines of credit and short-term borrowings |
|
|
|
|
|
(1,630,100 |
) |
|
|
(890,896 |
) |
|
|
|
|
Proceeds from the
issuance of long-term debt |
|
|
|
|
|
- |
|
|
|
179,308 |
|
|
|
|
|
Payments of long-term
debt and capital lease obligations |
|
|
|
|
|
(412 |
) |
|
|
(107,287 |
) |
|
|
|
|
Payment of debt
financing costs |
|
|
|
|
|
- |
|
|
|
(863 |
) |
|
|
|
|
Net cash used in financing activities |
|
|
|
|
|
(211,813 |
) |
|
|
(260,993 |
) |
|
|
|
|
Effect of
exchange rate changes on cash and cash equivalents |
|
|
|
|
|
2,604 |
|
|
|
(1,552 |
) |
|
|
|
|
Net change in
cash and cash equivalents |
|
|
|
|
|
6,462 |
|
|
|
(1,112 |
) |
|
|
|
|
Cash and cash
equivalents at beginning of year |
|
|
|
|
|
81,090 |
|
|
|
82,202 |
|
|
|
|
|
Cash and cash equivalents at end of period |
|
|
|
|
$ |
87,552 |
|
|
$ |
81,090 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Woodward, Inc. and Subsidiaries |
|
|
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three-Months Ended |
|
Year Ended |
|
|
|
September 30, |
|
September 30, |
(Unaudited - in thousands) |
|
|
|
|
|
2017 |
|
|
|
2016 |
|
|
|
2017 |
|
|
|
2016 |
|
Net
sales: |
|
|
|
|
|
|
|
|
|
|
|
Aerospace |
|
|
|
|
$ |
399,141 |
|
|
$ |
365,305 |
|
|
$ |
1,342,339 |
|
|
$ |
1,233,176 |
|
Industrial |
|
|
|
|
|
207,647 |
|
|
|
225,617 |
|
|
|
756,346 |
|
|
|
789,902 |
|
Total consolidated net sales |
|
|
|
|
$ |
606,788 |
|
|
$ |
590,922 |
|
|
$ |
2,098,685 |
|
|
$ |
2,023,078 |
|
Segment
earnings*: |
|
|
|
|
|
|
|
|
|
|
|
Aerospace |
|
|
|
|
$ |
85,536 |
|
|
$ |
80,376 |
|
|
$ |
257,813 |
|
|
$ |
232,166 |
|
As a percent of segment
sales |
|
|
|
|
|
21.4 |
% |
|
|
22.0 |
% |
|
|
19.2 |
% |
|
|
18.8 |
% |
Industrial |
|
|
|
|
|
23,034 |
|
|
|
19,254 |
|
|
|
78,991 |
|
|
|
82,237 |
|
As a percent of segment
sales |
|
|
|
|
|
11.1 |
% |
|
|
8.5 |
% |
|
|
10.4 |
% |
|
|
10.4 |
% |
Total segment earnings |
|
|
|
|
|
108,570 |
|
|
|
99,630 |
|
|
|
336,804 |
|
|
|
314,403 |
|
Nonsegment
expenses |
|
|
|
|
|
(15,262 |
) |
|
|
(12,289 |
) |
|
|
(58,352 |
) |
|
|
(63,166 |
) |
EBIT |
|
|
|
|
|
93,308 |
|
|
|
87,341 |
|
|
|
278,452 |
|
|
|
251,237 |
|
Interest expense,
net |
|
|
|
|
|
(6,543 |
) |
|
|
(6,585 |
) |
|
|
(25,705 |
) |
|
|
(24,751 |
) |
Consolidated earnings before income taxes |
|
|
|
|
$ |
86,765 |
|
|
$ |
80,756 |
|
|
$ |
252,747 |
|
|
$ |
226,486 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Payments for
property, plant and equipment |
|
|
|
|
$ |
28,616 |
|
|
$ |
47,064 |
|
|
$ |
92,336 |
|
|
$ |
175,692 |
|
Depreciation expense |
|
|
|
|
$ |
14,881 |
|
|
$ |
12,388 |
|
|
$ |
55,140 |
|
|
$ |
41,550 |
|
*This
schedule reconciles segment earnings, which exclude certain costs,
to consolidated earnings before taxes. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Woodward, Inc. and Subsidiaries |
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF NET EARNINGS TO EBIT1 AND EBITDA1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three-Months Ended |
|
Year Ended |
|
|
|
September 30, |
|
September 30, |
(Unaudited - in thousands) |
|
|
|
|
|
2017 |
|
|
|
2016 |
|
|
|
2017 |
|
|
|
2016 |
|
Net earnings (U.S.
GAAP) |
|
|
|
|
$ |
62,228 |
|
|
$ |
63,147 |
|
|
$ |
200,507 |
|
|
$ |
180,838 |
|
Income taxes |
|
|
|
|
|
24,537 |
|
|
|
17,609 |
|
|
|
52,240 |
|
|
|
45,648 |
|
Interest expense |
|
|
|
|
|
7,031 |
|
|
|
7,112 |
|
|
|
27,430 |
|
|
|
26,776 |
|
Interest
income |
|
|
|
|
|
(488 |
) |
|
|
(527 |
) |
|
|
(1,725 |
) |
|
|
(2,025 |
) |
EBIT
(Non-U.S. GAAP) |
|
|
|
|
|
93,308 |
|
|
|
87,341 |
|
|
|
278,452 |
|
|
|
251,237 |
|
Amortization of
intangible assets |
|
|
|
|
|
6,449 |
|
|
|
6,727 |
|
|
|
25,777 |
|
|
|
27,486 |
|
Depreciation expense |
|
|
|
|
|
14,881 |
|
|
|
12,388 |
|
|
|
55,140 |
|
|
|
41,550 |
|
EBITDA (Non-U.S. GAAP) |
|
|
|
|
$ |
114,638 |
|
|
$ |
106,456 |
|
|
$ |
359,369 |
|
|
$ |
320,273 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Woodward, Inc. and Subsidiaries |
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF CASH FLOW PROVIDED
BY OPERATING ACTIVITIES TO FREE CASH
FLOW1 AND TO FREE CASH FLOW
EXCLUDING NET AFTER-TAX PROCEEDS FROM THE FORMATION OF JOINT
VENTURE1 |
|
|
|
|
|
Three-Months Ended |
|
Year Ended |
|
|
|
|
|
September 30, |
|
September 30, |
(Unaudited - in thousands) |
|
|
|
|
|
2017 |
|
|
|
2016 |
|
|
|
2017 |
|
|
|
2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities (U.S. GAAP) |
|
|
|
|
$ |
123,739 |
|
|
$ |
72,898 |
|
|
$ |
307,537 |
|
|
$ |
435,379 |
|
Payments
for property, plant, and equipment |
|
|
|
|
|
(28,616 |
) |
|
|
(47,064 |
) |
|
|
(92,336 |
) |
|
|
(175,692 |
) |
Free cash
flow (Non-U.S. GAAP) |
|
|
|
|
|
95,123 |
|
|
|
25,834 |
|
|
|
215,201 |
|
|
|
259,687 |
|
Less: Gross proceeds from formation of joint venture with
GE |
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(250,000 |
) |
Tax payments made to date related to formation of joint
venture with GE |
|
|
|
|
- |
|
|
|
47,395 |
|
|
|
- |
|
|
|
95,000 |
|
Net after-tax proceeds (payments) from formation of
joint venture with GE |
|
|
|
|
- |
|
|
|
47,395 |
|
|
|
- |
|
|
|
(155,000 |
) |
Free cash flow excluding net after-tax proceeds
from formation of joint venture (Non-U.S. GAAP) |
|
$ |
95,123 |
|
|
$ |
73,229 |
|
|
$ |
215,201 |
|
|
$ |
104,687 |
|
|
|
|
|
|
|
|
|
|
|
|
|
1Non-U.S. GAAP Financial Measures: EBIT (earnings before
interest and taxes), EBITDA (earnings before interest, taxes,
depreciation and amortization), free cash flow and free cash flow
excluding the after-tax proceeds from the formation of the joint
venture with GE are financial measures not prepared and presented
in accordance with accounting principles generally accepted in the
United States of America (U.S. GAAP). We have also presented
certain financial measures net of special charges taken in the
year. Management uses EBIT to evaluate Woodward’s operating
performance without the impacts of financing and tax related
considerations. Management uses EBITDA in evaluating Woodward’s
operating performance, making business decisions, including
developing budgets, managing expenditures, forecasting future
periods, and evaluating capital structure impacts of various
strategic scenarios. Management uses free cash flow, which is
derived from net cash provided by operating activities less
payments for property, plant, and equipment, and free cash flow
excluding the after-tax proceeds from the formation of the joint
venture, in reviewing the financial performance of Woodward’s
various business segments and evaluating cash generation levels.
Management presented financial measures net of special charges
because such charges are not part of the Company’s usual operations
and therefore, management used such amounts to review the Company’s
core operational performance. Securities analysts, investors, and
others frequently use EBIT, EBITDA and free cash flow in their
evaluation of companies, particularly those with significant
property, plant, and equipment, and intangible assets that are
subject to amortization. The use of any of these non-U.S. GAAP
financial measures is not intended to be considered in isolation
of, or as a substitute for, the financial information prepared and
presented in accordance with U.S. GAAP. Because EBIT and EBITDA
exclude certain financial information compared with net earnings,
the most comparable U.S. GAAP financial measure, users of this
financial information should consider the information that is
excluded. Neither free cash flow, nor free cash flow excluding the
after-tax proceeds from the formation of the joint venture
necessarily represent funds available for discretionary use and are
not necessarily a measure of our ability to fund our cash needs.
Management’s calculations of EBIT, EBITDA, free cash flow and free
cash flow excluding the after-tax proceeds from the formation of
the joint venture may differ from similarly titled measures used by
other companies, limiting their usefulness as comparative
measures.
2Website, Facebook, Twitter: Woodward has used,
and intends to continue to use, its Investor Relations website, its
Facebook page and its Twitter handle as means of disclosing
material non-public information and for complying with its
disclosure obligations under Regulation FD.
CONTACT:Don GuzzardoCorporate Director,
Investor Relations &
Treasury970-498-3580Don.Guzzardo@woodward.com
Woodward (NASDAQ:WWD)
Historical Stock Chart
From Mar 2024 to Apr 2024
Woodward (NASDAQ:WWD)
Historical Stock Chart
From Apr 2023 to Apr 2024