- Q4 2021 GAAP diluted EPS of $0.22 and adjusted diluted EPS
of $0.16, compared to Q4 2020 GAAP diluted EPS of ($0.23) and
adjusted diluted EPS of ($0.18).
- Q4 2021 Sales were $360.3 million, compared to $295.8
million in Q4 2020.
- FY 2021 GAAP diluted EPS of $0.19 and adjusted diluted EPS
of $0.27, compared to FY 2020 GAAP diluted EPS of $0.38 and
adjusted diluted EPS of $0.25.
- FY 2021 Sales were $1,325 million, compared to $1,502
million for FY 2020.
- Free Cash Flow of $124 million in FY 2021. Reinstating
quarterly dividend.
See Table C for reconciliation of GAAP and non-GAAP operating
income (loss), net income (loss), earnings (loss) per share and
operating cash flow to free cash flow. Free cash flow is cash from
operations less capital expenditures.
Hexcel Corporation (NYSE: HXL):
Summary of Results from
Operations
Quarters Ended
Years Ended
December 31,
December 31,
(In millions, except per share data)
2021
2020
% Change
2021
2020
% Change
Net Sales
$
360.3
$
295.8
21.8
%
$
1,324.7
$
1,502.4
(11.8
)%
Net sales change in constant currency
23.0
%
(12.6
)%
Operating Income (Loss)
23.0
(20.4
)
212.7
%
51.8
14.1
267.4
%
Net Income (Loss)
18.9
(19.4
)
197.4
%
16.1
31.7
(49.2
)%
Diluted net income (loss) per common
share
$
0.22
$
(0.23
)
195.7
%
$
0.19
$
0.38
(50.0
)%
Non-GAAP measures for year-over-year
comparison (Table C)
Adjusted Operating Income (Loss)
$
25.2
$
(6.1
)
513.1
%
$
70.0
$
72.0
(2.8
)%
As a % of sales
7.0
%
(2.1
)%
5.3
%
4.8
%
Adjusted Net Income (Loss)
13.5
(15.2
)
188.8
%
23.2
20.6
12.6
%
Adjusted diluted net income (loss) per
share
$
0.16
$
(0.18
)
188.9
%
$
0.27
$
0.25
8.0
%
Hexcel Corporation (NYSE: HXL) today reported fourth quarter
2021 results including net sales of $360 million and adjusted
diluted EPS of $0.16 per share.
Chairman, CEO and President Nick Stanage said, "Our fourth
quarter 2021 commercial aerospace sales grew more than fifty
percent compared to the fourth quarter of 2020 with growth across
the spectrum of aircraft programs including narrowbody, widebody
and business jets. We see airlines looking beyond the pandemic as
they place new aircraft orders to upgrade and expand their fleets
with modern lightweight aircraft to support their objectives for
improved fuel efficiency and emissions reduction. As the secular
penetration of advanced composites continues and gains momentum,
there is a compelling economic and environmental case for the
lightweighting materials and products provided by Hexcel. During
the pandemic we have continued our focus on internal sustainability
initiatives and we recently issued targets for reducing our
emissions, landfill waste and water usage by 2030 as well as
continuing to enhance our strong safety culture.”
Mr. Stanage continued, “We achieved another quarter of
sequential growth in our sales and adjusted earnings per share in
the fourth quarter of 2021. As our end market recovery is becoming
more robust, we are providing financial guidance for 2022,
recognizing that some challenges still remain. We continue to
tightly manage costs and expect to expand margins in 2022 on
growing sales as we re-utilize existing capacity that has been
idled during the pandemic. We forecast continued sales growth,
earnings expansion and strong free cash flow generation for 2022.
Lastly, reflecting our growing confidence and positive outlook, I
am pleased to announce that the Board of Directors has
re-instituted a quarterly dividend.”
Markets
Sales in the fourth quarter of 2021 were $360.3 million compared
to $295.8 million in the fourth quarter of 2020.
Commercial Aerospace
- Commercial Aerospace sales of $199.7 million increased 57.6%
(58.7.% in constant currency) for the quarter compared to the
fourth quarter of 2020 driven by higher narrowbody sales, increased
Airbus A350 sales and higher business jet sales. The sub-category
Other Commercial Aerospace, which includes business and regional
aircraft, increased 89.2% for the fourth quarter of 2021 compared
to the fourth quarter of 2020.
Space & Defense
- Space & Defense sales of $105.9 million decreased 11.5%
(10.8% in constant currency) for the quarter as compared to the
strong fourth quarter of 2020 on lower military and civilian
rotorcraft sales and lower Space sales, partially offset by
stronger F-35 sales.
Industrial
- Total Industrial sales of $54.7 million in the fourth quarter
of 2021 increased 10.7% (12.8% in constant currency) compared to
the fourth quarter of 2020. Strength in the automotive and
recreation markets as well as other industrial markets more than
offset lower wind energy sales which was down 26.3% in constant
currency.
Consolidated Operations
Gross margin for the fourth quarter was 19.2% compared to 10.3%
in the prior year period as increased sales reduced the
under-absorption of fixed overhead. As a percentage of sales,
selling, general and administrative and R&T expenses for the
fourth quarter of 2021 were 12.2% compared to 12.3% for the fourth
quarter of 2020. Other operating expenses for the fourth quarter
included charges for vaccination incentives and restructuring.
Other operating expenses for the fourth quarter of 2020 were
primarily restructuring charges. Adjusted operating income in the
fourth quarter of 2021 was $25.2 million or 7.0% of sales, compared
to an adjusted operating loss of $6.1 million, or (2.1%) of sales
in 2020. Other income for the fourth quarter included the receipt
of $10.5 million related to the Aviation Manufacturing Jobs
Protection ("AMJP") program. This benefit is excluded from adjusted
EPS. The impact of exchange rates on operating income as a percent
of sales was favorable by approximately one hundred basis points in
the fourth quarter of 2021 compared to 2020.
FY 2021 Results
Full year sales were $1,324.7 million, a decrease of 11.8%
(12.6% in constant currency) compared to 2020.
Commercial Aerospace (50% of YTD sales)
- Commercial Aerospace sales of $668.2 million decreased 18.7%
(19.1% in constant currency) compared to 2020 as the prior year
period was only partially impacted by the global pandemic that led
to lower commercial aircraft build rates and a period of inventory
destocking by customers and the supply chain. The sub-category
Other Commercial Aerospace, which includes business and regional
aircraft, decreased 10.5% vs 2020.
Space & Defense (33% of YTD sales)
- Space & Defense sales of $434.9 million decreased by 3.0%
(3.4% in constant currency) compared to 2020 on lower Space sales
including launchers and satellites, partially offset by stronger
F-35 sales.
Industrial (17% of YTD sales)
- Total Industrial sales of $221.6 million decreased 4.3% (7.3%
in constant currency) compared to 2020 on lower wind energy sales
(down 37.8% in constant currency) that were partially offset by
other industrial markets including automotive and recreation.
Consolidated Operations
Gross margin for 2021 was 18.9% compared to 16.0% in the prior
year. As a percentage of sales, selling, general and administrative
and R&T expenses for 2021 were 13.6% compared to 11.2% for 2020
as the prior year period included temporary cost reduction actions
in response to the pandemic. Other operating expenses for 2021 were
$18.2 million and included expense primarily related to severance
and restructuring. Other operating expenses for 2020 were $57.9
million and included expenses related to severance and the
terminated merger with Woodward, Inc. Adjusted operating income for
2021 was $70.0 million, or 5.3% of sales, compared to $72.0
million, or 4.8% of sales in 2020. The impact of exchange rates on
operating income as a percent of sales for 2021 was favorable by
approximately sixty basis points compared to 2020.
Cash, 2022 Guidance Update and
other
- The fourth quarter and full year 2021 tax expense was $4.3
million and $5.9 million, respectively. The fourth quarter expense
included a discrete tax benefit resulting from the expiration of
items related to uncertain tax positions. The tax expense for the
full year 2021 included a net discrete charge primarily resulting
from the revaluation of U.S. and foreign deferred tax liabilities.
The tax benefit for the fourth quarter and full year of 2020 was
$12.3 million and $61.0 million, respectively. The 2020 tax benefit
of $61.0 million included discrete tax benefits primarily due to
the release of a valuation allowance in a foreign
jurisdiction.
- Net cash generated from operating activities for 2021 was
$151.7 million, compared to $264.3 million for 2020. Capital
expenditures on a cash basis were $27.9 million for 2021 compared
to $50.6 million for 2020. Free cash flow was $123.8 million for
2021 compared to $213.7 million for 2020. Working capital was a
cash use of $18.3 million in 2021 to support growing sales,
compared to a source of $116.5 million in 2020. Free cash flow is
defined as cash generated from operating activities less cash paid
for capital expenditures. Capital expenditures for 2021 on an
accrued basis were $41.4 million compared to $42.5 million in
2020.
- Share repurchases remain restricted per the second amendment to
the Revolver facility that was executed in January 2021. The
remaining authorization under the share repurchase program at
December 31, 2021 was $217 million.
- As announced today, the Board of Directors declared a quarterly
dividend of $0.10 per share payable to stockholders of record as of
February 11, 2022, with a payment date of February 18, 2022.
2022 Guidance
- Sales of $1.50 billion to $1.63 billion
- Adjusted diluted earnings per share of $1.00 to $1.24
- Free cash flow greater than $145 million
- Accrual basis capital expenditures of approximately $75
million
- Underlying effective tax rate is estimated to be 23%
Hexcel will host a conference call at 10:00 a.m. ET, on January
27, 2022 to discuss fourth quarter and full-year 2021 results. The
event will be webcast via the Investor Relations webpage at
www.Hexcel.com. 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 regulatory clearances or the
build rate of the Boeing 737 MAX or the 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 and completion of capacity expansions and
qualification of new products; expectations regarding our ability
to improve or maintain margins; projections regarding our tax rate;
expectations with regard to the continued impact of the COVID-19
pandemic on worldwide air travel and aircraft programs, as well as
on our customers and suppliers and, in turn, on our operations and
financial results; and the anticipated impact of the above factors
and various market risks on our expectations of financial results
for 2022 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 impact of the
COVID-19 pandemic, including continued disruption in global
financial markets and supply chains, ongoing restrictions on
movement and travel, employee absenteeism and labor shortages, the
impact of any vaccine mandate, and reduced demand for air travel,
on the operations, business and financial condition of Hexcel and
its customers and suppliers; reductions in sales to any significant
customers, particularly Airbus or Boeing, including related to the
timing of pending regulatory clearances for the Boeing 737 MAX and
the Boeing 787, as well as due to the impact of the COVID-19
pandemic; inability to effectively adjust production and inventory
levels to align with customer demand; inability to effectively
motivate, retain and hire the necessary workforce, including
potential employee attrition resulting from any vaccine mandate;
our ability to successfully implement or realize our business
strategies, plans and objectives of management, including any
restructuring or alignment activities in which we may engage; the
impact of any government mandated COVID-19 precautions, including
mandatory vaccination; changes in sales mix; changes in current
pricing and cost levels, including cost inflation; 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,
including the impact of supply shortages and inflation; supply
chain disruptions; inability 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;
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, which may be
worsened by the impact of climate change, and other severe
catastrophic events; 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
Years Ended
December 31,
December 31,
(In millions, except per share data)
2021
2020
2021
2020
Net sales
$
360.3
$
295.8
$
1,324.7
$
1,502.4
Cost of sales
291.2
265.4
1,074.6
1,262.7
Gross margin
69.1
30.4
250.1
239.7
% Gross Margin
19.2
%
10.3
%
18.9
%
16.0
%
Selling, general and administrative
expenses
32.3
25.9
135.0
121.1
Research and technology expenses
11.6
10.6
45.1
46.6
Other operating expense
2.2
14.3
18.2
57.9
Operating income (loss)
23.0
(20.4
)
51.8
14.1
Interest expense, net
9.2
9.4
38.3
41.8
Other income
(8.5
)
-
(8.5
)
-
Income (loss) before income taxes, and
equity in earnings of affiliated companies
22.3
(29.8
)
22.0
(27.7
)
Income tax expense (benefit)
4.3
(12.3
)
5.9
(61.0
)
Income (loss) before equity in earnings of
affiliated companies
18.0
(17.5
)
16.1
33.3
Equity in earnings (losses) from
affiliated companies
0.9
(1.9
)
-
(1.6
)
Net income (loss)
$
18.9
$
(19.4
)
$
16.1
$
31.7
Basic net income (loss) per common
share:
$
0.22
$
(0.23
)
$
0.19
$
0.38
Diluted net income (loss) per common
share:
$
0.22
$
(0.23
)
$
0.19
$
0.38
Weighted-average common shares:
Basic
84.2
83.8
84.1
83.8
Diluted
84.8
83.8
84.6
84.0
Hexcel Corporation and
Subsidiaries
Condensed Consolidated Balance
Sheets
Unaudited
December 31,
December 31,
(In millions)
2021
2020
Assets
Cash and cash equivalents
$
127.7
$
103.3
Accounts receivable, net
160.3
125.4
Inventories, net
245.7
213.5
Contract assets
30.5
43.1
Prepaid expenses and other current
assets
39.5
38.0
Assets held for sale
12.6
12.6
Total current assets
616.3
535.9
Property, plant and equipment
3,110.0
3,139.7
Less accumulated depreciation
(1,363.9
)
(1,265.5
)
Net property, plant and equipment
1,746.1
1,874.2
Goodwill and other intangible assets,
net
267.5
277.8
Investments in affiliated companies
44.6
44.7
Other assets
144.9
185.2
Total assets
$
2,819.4
$
2,917.8
Liabilities and Stockholders'
Equity
Liabilities:
Short-term borrowings
$
0.9
$
0.9
Accounts payable
113.2
70.0
Accrued compensation and benefits
54.4
43.2
Accrued liabilities
79.1
69.0
Total current liabilities
247.6
183.1
Long-term debt
822.4
925.5
Retirement obligations
52.6
53.9
Other non-current liabilities
211.3
245.1
Total liabilities
$
1,333.9
$
1,407.6
Stockholders' equity:
Common stock, $0.01 par value, 200.0
shares authorized, 110.1 shares issued at December 31, 2021 and
109.7 shares issued at December 31, 2020
$
1.1
$
1.1
Additional paid-in capital
878.6
849.7
Retained earnings
2,012.5
1,996.4
Accumulated other comprehensive loss
(126.5
)
(59.6
)
2,765.7
2,787.6
Less – Treasury stock, at cost, 26.1
shares at both December 31, 2021 and December 31, 2020
(1,280.2
)
(1,277.4
)
Total stockholders' equity
1,485.5
1,510.2
Total liabilities and stockholders'
equity
$
2,819.4
$
2,917.8
Hexcel Corporation and
Subsidiaries
Condensed Consolidated Statements of
Cash Flows
Unaudited
Years Ended
December 31,
(In millions)
2021
2020
Cash flows from operating
activities
Net income
$
16.1
$
31.7
Reconciliation to net cash provided by
operating activities:
Depreciation and amortization
138.0
140.9
Amortization related to financing
3.1
1.2
Deferred income taxes
(2.6
)
(51.4
)
Equity in earnings from affiliated
companies
-
1.6
Stock-based compensation
19.0
15.4
Merger and restructuring expenses, net of
payments
(5.6
)
23.0
Changes in assets and liabilities:
(Increase) decrease in accounts
receivable
(40.7
)
110.0
(Increase) decrease in inventories
(40.4
)
129.4
Decrease in prepaid expenses and other
current assets
13.0
11.2
Increase (decrease) in accounts
payable/accrued liabilities
49.8
(134.1
)
Other - net
2.0
(14.6
)
Net cash provided by operating activities
(a)
151.7
264.3
Cash flows from investing
activities
Capital expenditures (b)
(27.9
)
(50.6
)
Net cash used for investing activities
(27.9
)
(50.6
)
Cash flows from financing
activities
Net repayments from senior unsecured
credit facilities
(103.0
)
(85.0
)
Repayments of Euro term loan
-
(49.9
)
Repayment of finance lease obligation and
other debt, net
(0.9
)
(0.2
)
Issuance costs related to senior credit
facility
-
(1.3
)
Dividends paid
-
(14.2
)
Repurchase of stock
-
(24.6
)
Activity under stock plans
7.1
(3.3
)
Net cash used for financing activities
(96.8
)
(178.5
)
Effect of exchange rate changes on cash
and cash equivalents
(2.6
)
3.7
Net increase in cash and cash
equivalents
24.4
38.9
Cash and cash equivalents at beginning of
period
103.3
64.4
Cash and cash equivalents at end of
period
$
127.7
$
103.3
Supplemental data:
Free Cash Flow (a)+(b)
$
123.8
$
213.7
Accrual basis additions to property, plant
and equipment
$
41.4
$
42.5
Hexcel Corporation and
Subsidiaries
Net Sales to Third-Party Customers by
Market
Quarters Ended December 31, 2021 and
2020
Unaudited
Table A
(In millions)
As Reported
Constant Currency (a)
B/(W)
FX
B/(W)
Market
2021
2020
%
Effect (b)
2020
%
Commercial Aerospace
$
199.7
$
126.7
57.6
$
(0.9
)
$
125.8
58.7
Space & Defense
105.9
119.7
(11.5
)
(1.0
)
118.7
(10.8
)
Industrial
54.7
49.4
10.7
(0.9
)
48.5
12.8
Consolidated Total
$
360.3
$
295.8
21.8
$
(2.8
)
$
293.0
23.0
Consolidated % of Net Sales
%
%
%
Commercial Aerospace
55.4
42.8
42.9
Space & Defense
29.4
40.5
40.5
Industrial
15.2
16.7
16.6
Consolidated Total
100.0
100.0
100.0
Years Ended December 31, 2021 and
2020
Unaudited
(In millions)
As Reported
Constant Currency (a)
B/(W)
FX
B/(W)
Market
2021
2020
%
Effect (b)
2020
%
Commercial Aerospace
$
668.2
$
822.3
(18.7
)
$
3.2
$
825.5
(19.1
)
Space & Defense
434.9
448.5
(3.0
)
1.8
450.3
(3.4
)
Industrial
221.6
231.6
(4.3
)
7.5
239.1
(7.3
)
Consolidated Total
$
1,324.7
$
1,502.4
(11.8
)
$
12.5
$
1,514.9
(12.6
)
Consolidated % of Net Sales
%
%
%
Commercial Aerospace
50.5
54.7
54.5
Space & Defense
32.8
29.9
29.7
Industrial
16.7
15.4
15.8
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, 2020 have been estimated using
the same U.S. dollar, British pound and Euro exchange rates as
applied for the respective period in 2021 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 2021
Net sales to external customers
$
287.2
$
73.1
$
-
$
360.3
Intersegment sales
13.9
0.6
(14.5
)
-
Total sales
301.1
73.7
(14.5
)
360.3
Other operating expense
1.5
0.6
0.1
2.2
Operating income (loss)
26.2
3.1
(6.3
)
23.0
% Operating margin
8.7
%
4.2
%
6.4
%
Depreciation and amortization
32.0
3.6
-
35.6
Stock-based compensation expense
4.8
1.1
(3.1
)
2.8
Accrual based additions to capital
expenditures
25.0
2.1
-
27.1
Fourth Quarter 2020
Net sales to external customers
$
225.5
$
70.3
$
-
$
295.8
Intersegment sales
5.9
0.9
(6.8
)
-
Total sales
231.4
71.2
(6.8
)
295.8
Other operating expense
6.6
7.1
0.6
14.3
Operating (loss) income
(14.3
)
6.1
(12.2
)
(20.4
)
% Operating margin
(6.2
)%
8.6
%
(6.9
)%
Depreciation and amortization
31.2
3.7
-
34.9
Stock-based compensation expense
1.2
0.2
1.0
2.4
Accrual based additions to capital
expenditures
3.2
(0.1
)
-
3.1
Year Ended December 31, 2021
Net sales to external customers
$
1,019.4
$
305.3
$
-
$
1,324.7
Intersegment sales
56.7
2.4
(59.1
)
-
Total sales
1,076.1
307.7
(59.1
)
1,324.7
Other operating expense
17.8
0.1
0.3
18.2
Operating income (loss)
88.1
20.2
(56.5
)
51.8
% Operating margin
8.2
%
6.6
%
3.9
%
Depreciation and amortization
123.4
14.5
0.1
138.0
Stock-based compensation expense
6.9
1.5
10.6
19.0
Accrual based additions to capital
expenditures
35.7
5.7
-
41.4
Year Ended December 31, 2020
Net sales to external customers
$
1,185.9
$
316.5
$
-
$
1,502.4
Intersegment sales
53.9
2.5
(56.4
)
-
Total sales
1,239.8
319.0
(56.4
)
1,502.4
Other operating expense
32.1
9.8
16.0
57.9
Operating income (loss)
60.7
9.4
(56.0
)
14.1
% Operating margin
4.9
%
2.9
%
0.9
%
Depreciation and amortization
125.5
15.3
0.1
140.9
Stock-based compensation expense
7.1
1.8
6.5
15.4
Accrual based additions to capital
expenditures
38.6
3.9
-
42.5
(a) Hexcel does not allocate corporate expenses to the
operating segments.
Hexcel Corporation and
Subsidiaries
Reconciliation of GAAP to Non-GAAP
Operating Income (Loss), Net Income (Loss), EPS and Operating Cash
Flow to Free Cash Flow
Table C
Unaudited
Quarters Ended
Years Ended
December 31,
December 31,
(In millions)
2021
2020
2021
2020
GAAP operating income (loss)
$
23.0
$
(20.4
)
$
51.8
$
14.1
Other operating expense (a)
2.2
14.3
18.2
57.9
Non-GAAP operating income (loss)
$
25.2
$
(6.1
)
$
70.0
$
72.0
Unaudited
Quarters Ended December 31,
2021
2020
(In millions, except per diluted share
data)
Net Income
EPS
Net Loss
EPS
GAAP
$
18.9
$
0.22
$
(19.4
)
$
(0.23
)
Other operating expense (a)
1.7
0.02
10.0
0.12
Other income (b)
(6.6
)
(0.08
)
-
-
Tax benefit (c)
(0.5
)
-
(5.8
)
(0.07
)
Non-GAAP
$
13.5
$
0.16
$
(15.2
)
$
(0.18
)
Unaudited
Years Ended December 31,
2021
2020
(In millions, except per diluted share
data)
Net Income
EPS
Net Income
EPS
GAAP
$
16.1
$
0.19
$
31.7
$
0.38
Other operating expense (a)
13.4
0.16
43.6
0.52
Other income (b)
(6.6
)
(0.08
)
-
-
Tax expense (benefit) (c)
0.3
-
(54.7
)
(0.65
)
Non-GAAP
$
23.2
$
0.27
$
20.6
$
0.25
Unaudited
Years Ended December 31,
(In millions)
2021
2020
Net cash provided by operating
activities
$
151.7
$
264.3
Less: Capital expenditures
(27.9
)
(50.6
)
Free cash flow (non-GAAP)
$
123.8
$
213.7
(a)
The quarter and year ended December 31,
2021 included a charge for incentives related to employee
vaccinations as well as restructuring costs. The 2021 full year
also included a benefit related to the reduction of a contingent
liability. The quarter and year ended December 31, 2020 included
restructuring costs. The full year 2020 also included costs related
to the terminated merger with Woodward, Inc.
(b)
The quarter and year ended December 31,
2021 included the receipt of $10.5 million related to the AMJP
program, partially offset by a dispute resolution payment.
(c)
The quarter ended December 31, 2021
included a discrete tax benefit resulting from the expiration of
items related to uncertain tax positions. The full year for 2021
included a net discrete charge of $0.3 million primarily resulting
from the revaluation of U.S. and foreign deferred tax liabilities.
The tax benefit for the 2020 full year was primarily due to the
release of a valuation allowance in a foreign jurisdiction.
NOTE: Management believes that adjusted operating income
(loss), adjusted net income (loss), adjusted diluted net income
(loss) per share, the adjusted tax rate, 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)
2021
2020
2019
Current portion finance lease
$
0.9
$
0.9
$
0.6
Current portion Euro term loan
-
-
8.9
Total current debt
0.9
0.9
9.5
Senior unsecured credit facility
125.0
228.0
313.0
4.7% senior notes due 2025
300.0
300.0
300.0
3.95% senior notes due 2027
400.0
400.0
400.0
Non-current portion Euro term loan
-
-
41.5
Senior notes original issue discounts
(1.2
)
(1.5
)
(1.7
)
Senior notes deferred financing costs
(2.9
)
(3.5
)
(4.2
)
Other debt
1.5
2.5
2.0
Total long-term debt
822.4
925.5
1,050.6
Total Debt
823.3
926.4
1,060.1
Less: Cash and cash equivalents
(127.7
)
(103.3
)
(64.4
)
Total debt, net of cash
$
695.6
$
823.1
$
995.7
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220126005853/en/
Kurt Goddard
| Vice President Investor
Relations | Kurt.Goddard@Hexcel.com | +1 (203)-352-6826
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