STAMFORD, Conn .– (BUSINESS WIRE) – Hexcel Corporation (NYSE: HXL):
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Summary of operating results |
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Quarters ended |
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March 31, |
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(In millions, excluding data per share) |
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2021 |
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2020 |
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% Change |
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Net sales |
$ |
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310.3 |
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$ |
|
541.0 |
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(42.6 |
)% |
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Change in sales at constant exchange rates |
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(43.5 |
)% |
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Operating profit |
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(10.2 |
) |
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65.7 |
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(115.5 |
)% |
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Net profit (loss) |
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(14.0 |
) |
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42.4 |
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(133.0 |
)% |
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Diluted earnings per common share |
$ |
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(0.17 |
) |
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$ |
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0.50 |
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(133.4 |
)% |
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Year-Over-Year Non-GAAP Measures (Table C) |
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Adjusted operating profit |
$ |
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1.9 |
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$ |
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80.4 |
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(97.6 |
)% |
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In% of sales |
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0.6 |
%. |
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14.9 |
%. |
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Adjusted Net Income (Loss) (Table C) |
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(8.4 |
) |
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53.8 |
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(115.6 |
)% |
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Adjusted diluted earnings per share |
$ |
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(0.10 |
) |
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$ |
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0.64 |
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(115.6 |
)% |
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Hexcel Corporation (NYSE: HXL) today announced its first quarter 2021 results including net sales of $ 310 million and adjusted diluted earnings per share of ($ 0.10).
Chairman, CEO and President Nick Stanage said, “The first quarter results were in line with our expectations and reflect a strong focus on cost control in light of the pandemic economic headwinds we are facing, including the impact of persistent inventory levels in the supply chain. This first quarter, along with the third and fourth quarters of 2020, is expected to be the bottom of the current pandemic demand cycle. We now expect the inventory depletion to weaken as the second quarter progresses and is largely behind us. Enter the second half of the year. At this point, commercial aerospace sales should be growing steadily, which better reflects OEM aircraft build rates. We assume that sales will increase gradually over the course of 2021, followed by a longer growth phase from 2022. "
Mr. Stanage continued, “We believe there will be a steady but slow recovery as the world emerges from the pandemic and regains its confidence in travel. With this, Hexcel is well positioned to support the sizeable backlog of OEM aircraft with our innovative, lightweight, advanced composite technology that increases fuel efficiency, reduces emissions and improves performance. We previously shared our goal of reducing overhead costs by $ 150 million annually by mid-2021. I am pleased to announce that a significant portion of these savings have been made and are reflected in our first quarter results. Hexcel has never focused so much on its customers, on operational excellence and on innovation. We believe that from these challenges we will emerge as a leaner, stronger company, even better positioned to generate strong growth and drive returns for shareholders. "
Markets
Revenue in the first quarter of 2021 was $ 310.3 million compared to $ 541.0 million in the first quarter of 2020.
Commercial aerospace
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Commercial aerospace revenue of $ 147.6 million was down 59.3% (59.7% in constant currency) for the quarter versus the first quarter of 2020. Revenue on all major platforms declined significantly due to the aircraft manufacturers' reduction in construction costs caused by pandemics and the continued supply chain. Boeing 737 MAX sales remain at a low level.
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Sales to "Other Commercial Aerospace", which includes regional and corporate jets, decreased 48.0% in the first quarter of 2021 compared to 2020 as the global pandemic increased demand in this market sector, particularly for corporate jets, negatively influenced.
Space & Defense
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Space & Defense revenue of $ 111.7 million was unchanged from the first quarter of 2020 (down 1.0% on a currency-neutral basis). The strength of rotary wing aircraft, including the CH-53K and F-35 Joint Strike Fighter, has been offset by the collective impact of a softer neighborhood for a number of smaller U.S. defense and space programs.
Industrial
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Total industrial revenue of $ 51.0 million for the first quarter was 23.3% down from Q1 2020 (27.1% in constant currency). Lower wind power sales drove the decline, which was partially offset by higher auto sales.
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Wind energy sales (the largest submarket in the industry) were down 42.5% on a currency-neutral basis from Q1 2020. The decrease was due to generally lower demand and the cessation of sales in North America following a previously reported shift in customer demand .
Consolidated business
The gross margin for the first quarter was 17.1% compared to 26.0% in the same period last year. Similar to the second half of fiscal 2020, lower volumes continue to be a headwind leading to an under-absorption of fixed overheads that is exacerbated by the continued temporary downtime of selected manufacturing facilities and equipment. However, the revenue mix improved in the first quarter of 2021 compared to the fourth quarter of 2020. Selling, general and administrative expenses, and research and development expenses for the first quarter of 2021 were down $ 9.3 million year-over-year due to the global realignment or 15.4% back measures and downsizing to lower the cost structure. The other operating expenses were restructuring expenses mainly related to work activities outside of the United States. Adjusted operating income for the first quarter of 2021 was $ 1.9 million, or 0.6% of sales, compared to adjusted operating income of $ 80.4 million, or 14.9% of sales, in 2020. The impact of the Exchange rates on operating income as a percentage of sales were negative by around 10 basis points in the first quarter of 2021 compared to 2020.
Cash, 2021 Guidance Update and others
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The effective tax rate for the first quarter of 2021 was 36.8% compared to 21.9% for the first quarter of 2020. The quarter ended March 31, 2021 includes a discrete tax benefit of $ 3.2 million from the revaluation of deferred tax liabilities related to a favorable change in US tax law. The previous period benefited from deductions related to share-based compensation payments. The effects of the COVID-19 pandemic will continue to affect the company's total effective tax rate in 2021.
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Net cash from operating activities was $ 1.2 million for the first quarter of 2021, compared to $ 8.6 million in the first quarter of 2020. Cash investments were $ 4.9 million for the first quarter of 2021, compared to $ 4.9 million Free cash flow was $ 27.2 million for the first quarter of 2020. Free cash flow was $ (6.1) million for the first quarter of 2021 compared to $ (18.6) million for the first quarter of 2020. Working capital was for the first quarter 2021 to $ 26.2 million. This is primarily due to an increase in accounts receivable compared to cash usage of $ 94.8 million in the first quarter of 2020. Free cash flow is defined as cash flow from operating activities less cash flow from investments.
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The share buyback program is temporarily suspended and no shares were bought back in the first quarter of 2021. In addition, share buybacks are also restricted due to the second revolver facility change that was made in January 2021. The remaining approval under the share buyback program on March 31, 2021 was $ 217 million. The quarterly dividend is temporarily suspended. The Board of Directors will continue to evaluate the capital allocation strategies at least quarterly.
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Due to the market uncertainties due to the global pandemic, the company continues to hold back its financial forecasts.
Hexcel will host a conference call on April 20, 2021 at 10:00 a.m. ET to discuss the results for the first quarter of 2021. The event will be broadcast on the Investor Relations website at www.Hexcel.com. The event can also be accessed by dialing +1 (647) 689-5685. The conference ID is 4194215. Retries of the call are available on the website.
Hexcel Corporation is a leader in advanced composites. The company develops, produces and markets lightweight, high-performance building materials, including carbon fibers, specialty reinforcements, prepregs and other fiber-reinforced matrix materials, honeycombs, adhesives, technical core and composite structures that are used in commercial aerospace, space, defense and industry applications are used. Learn more at www.Hexcel.com.
Disclaimer for forward-looking statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about estimates and expectations based on aircraft production rates provided by Airbus, Boeing and others. the income we can generate from any aircraft model or program; the impact of the potential push-out on deliveries of Airbus and Boeing backlog and the impact of delays in launching or ramping up new aircraft programs or the final content of Hexcel composites after the design and material selection is complete; Expectations regarding the construction rate of the Boeing 737 MAX after its restart and the associated effects on our sales revenues; Expectations about when to run out of stocks due to the pandemic-induced decline in customer demand; Expectations of composite content for new airliner programs and our share of these requirements; Expectations for revenue from space and defense applications, including whether certain programs could be restricted or discontinued; Sales expectations for wind energy, leisure, automotive and other industrial applications; Expectations regarding the development of working capital and expenditures as well as inventories; Expectations regarding the amount of investments and the completion of capacity expansions and the qualification of new products; Expectations about our ability to maintain and improve margins in the face of the pandemic economic environment; Projections about our tax rate; Expectations regarding the continuing effects of the COVID-19 pandemic on global flight and aircraft programs as well as on our customers and suppliers and thus on our operating and financial results; and the expected impact of the above factors and various market risks on our expectations for financial results for 2021 and beyond. Actual results could differ materially from those anticipated in the forward-looking statements due to a number of factors including, but not limited to, the effects of the COVID-19 pandemic, including continued disruption in global financial markets, continued restrictions on exercise and travel. Employee absenteeism and reduced demand for air travel related to the operating, business and financial condition of Hexcel and its customers and suppliers; Declines in sales for major customers, particularly Airbus or Boeing, including declines in sales related to the timing of production ramp-up of the Boeing 737 MAX and due to the effects of the COVID-19 pandemic; Inability to effectively adjust production and inventory levels to customer demand; Inability to effectively motivate, retain and hire the necessary workforce; Inability to successfully execute or implement our business strategies, plans and objectives of management, including any restructuring or alignment activities in which we are involved; Time of stock depletion due to the COVID-19 pandemic; Changes in sales mix; Changes in current prices and costs; Changes in aerospace delivery rates; Changes in public defense procurement budgets; Changes in the technology of the military aerospace program; timely development or introduction of new products; Industrial capacity; increased competition; Availability and cost of raw materials; Interruptions in the supply chain; Inability to install, staff, and qualify the required capacity or complete capacity expansions to meet customer demand; Cybersecurity breaches or tampering; Exchange rate fluctuations; Changes in political, social and economic conditions, including but not limited to the effects of changes in global trade policy and the effects of the UK's exit from the European Union; Work interruptions or other work disruptions; unexpected outcome of legal matters or effects of changes in laws or regulations. Additional risk factors are described in our filings with the Securities and Exchange Commission. We assume no obligation to update our forward-looking statements to reflect future events.
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Hexcel Corporation and Subsidiaries |
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Consolidated income statement |
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Unchecked |
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Quarters ended |
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March 31, |
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(In millions, excluding data per share) |
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2021 |
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2020 |
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Net sales |
$ |
|
310.3 |
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$ |
|
541.0 |
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Cost of sales |
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|
257.2 |
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400.1 |
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Gross margin |
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53.1 |
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140.9 |
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% Gross margin |
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17.1 |
%. |
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26.0 |
%. |
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Selling and general administration |
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39.6 |
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46.5 |
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Research and technology costs |
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11.6 |
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14.0 |
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Other operating expenses |
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12.1 |
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14.7 |
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Operating profit |
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(10.2 |
) |
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65.7 |
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Net interest expense |
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10.3 |
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12.0 |
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(Loss) earnings before taxes and equity in the earnings of affiliated companies |
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(20.5 |
) |
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53.7 |
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Income tax expense |
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(7.5 |
) |
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11.8 |
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(Loss) earnings before equity in the earnings of affiliated companies |
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(13.0 |
) |
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41.9 |
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Equity in (loss) earnings of affiliated companies |
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(1.0 |
) |
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0.5 |
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Net profit (loss) |
$ |
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(14.0 |
) |
$ |
|
42.4 |
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Basic net earnings per common share: |
$ |
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(0.17 |
) |
$ |
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0.51 |
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Diluted net earnings per common share: |
$ |
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(0.17 |
) |
$ |
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0.50 |
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Weighted Average Common Stock: |
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basic |
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84.0 |
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|
83.7 |
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Diluted |
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|
84.0 |
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|
84.3 |
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Hexcel Corporation and Subsidiaries |
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Consolidated balance sheets |
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Unchecked |
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March 31, |
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December 31, |
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(In millions) |
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2021 |
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2020 |
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financial assets |
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Cash and cash equivalents |
$ |
|
82.0 |
|
$ |
|
103.3 |
|
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Claims, net |
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|
164.4 |
|
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|
125.4 |
|
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Inventories, net |
|
|
217.4 |
|
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|
213.5 |
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Contract assets |
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|
42.3 |
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|
43.1 |
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Prepaid expenses and other current assets |
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|
50.7 |
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|
38.0 |
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Assets held for sale |
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12.6 |
|
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|
12.6 |
|
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Total current assets |
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|
569.4 |
|
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|
535.9 |
|
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Property, plant and equipment |
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3,109.8 |
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|
3,139.7 |
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Less accumulated depreciation |
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|
(1,281.4 |
) |
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(1,265.5 |
) |
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Property, plant and equipment |
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|
1,828.4 |
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1,874.2 |
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Goodwill and other intangible assets, net |
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|
274.4 |
|
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|
277.8 |
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Participations in affiliated companies |
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|
44.4 |
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44.7 |
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Other assets |
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176.9 |
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|
185.2 |
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Total assets |
$ |
|
2,893.5 |
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$ |
|
2,917.8 |
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Liabilities and shareholders equity |
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Liabilities: |
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Short term loans |
$ |
|
0.3 |
|
$ |
|
0.9 |
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Settlement liabilities |
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|
88.5 |
|
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|
70.0 |
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|
Accrued compensation and benefits |
|
|
56.1 |
|
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|
43.2 |
|
|
accruals |
|
|
75.0 |
|
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|
69.0 |
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Total short-term liabilities |
|
|
219.9 |
|
|
|
183.1 |
|
|
|
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|
|
|
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Long-term liabilities |
|
|
912.0 |
|
|
|
925.5 |
|
|
Pension obligations |
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|
52.2 |
|
|
|
53.9 |
|
|
Other not current encumbrances |
|
|
222.5 |
|
|
|
245.1 |
|
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Total liabilities |
$ |
|
1,406.6 |
|
$ |
|
1,407.6 |
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Equity: |
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Common shares, par value $ 0.01, 200.0 shares approved,
109.9 shares issued as of March 31, 2021 and 109.7 shares
issued on December 31, 2020 |
$ |
|
1.1 |
|
$ |
|
1.1 |
|
|
Additional paid-in capital |
|
|
861.5 |
|
|
|
849.7 |
|
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Retained earnings |
|
|
1,982.4 |
|
|
|
1,996.4 |
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Cumulative other comprehensive loss |
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|
(78.7 |
) |
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(59.6 |
) |
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|
2,766.3 |
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|
2,787.6 |
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|
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|
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Less – Treasury shares at cost of 26.1 shares as of March 31, 2021 and December 31, 2020 |
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(1,279.4 |
) |
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|
(1,277.4 |
) |
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Total equity |
|
|
1,486.9 |
|
|
|
1.510.2 |
|
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Total liabilities and equity |
$ |
|
2,893.5 |
|
$ |
|
2,917.8 |
|
|
Hexcel Corporation and Subsidiaries |
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Consolidated cash flow statement |
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Unchecked |
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Quarters ended |
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March 31, |
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(In millions) |
2021 |
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2020 |
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The cash flow from operating activities |
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Net profit (loss) |
$ |
|
(14.0 |
) |
$ |
|
42.4 |
|
|
Reconciliation to the cash flow from operating activities: |
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|
|
|
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|
|
Depreciation |
|
|
34.5 |
|
|
|
35.5 |
|
|
Depreciation related to financing |
|
|
1.5 |
|
|
|
0.3 |
|
|
Deferred income taxes |
|
|
(8.8 |
) |
|
|
(0.6 |
) |
|
Merger and restructuring charges minus payments |
|
|
1.5 |
|
|
|
12.6 |
|
|
Profit sharing from affiliated companies |
|
|
1.1 |
|
|
|
(0.5 |
) |
|
Share-based payment |
|
|
9.0 |
|
|
|
14.4 |
|
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|
Changes in assets and liabilities: |
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|
Increase in demands |
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|
(42.0 |
) |
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|
(42.0 |
) |
|
Increase in stocks |
|
|
(7.6 |
) |
|
|
(26.4 |
) |
|
Increase in prepaid expenses and other current assets |
|
|
(6.8 |
) |
|
|
(7.6 |
) |
|
Increase (decrease) in liabilities / provisions |
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|
30.2 |
|
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|
(18.8 |
) |
|
Other – net |
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|
0.2 |
|
|
|
(0.7 |
) |
|
Cash flow (used in) from operating activities (a) |
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|
(1.2 |
) |
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8.6 |
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|
Cash flow from investing activities |
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Investments (b) |
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|
(4.9 |
) |
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|
(27.2 |
) |
|
Cash flow from investing activities |
|
|
(4.9 |
) |
|
|
(27.2 |
) |
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|
Cash flow from financing activities |
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|
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|
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|
Net borrowing (repayments) on senior unsecured credit facilities |
|
|
(14.0 |
) |
|
|
380.0 |
|
|
Repayments of Euro Term Loans |
|
|
– – |
|
|
|
(49.9 |
) |
|
Payback the finance lease obligation and other debts, net |
|
|
(0.3 |
) |
|
|
(0.1 |
) |
|
Dividends paid out |
|
|
– – |
|
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|
(14.2 |
) |
|
Buying back stocks |
|
|
– – |
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|
(24.6 |
) |
|
Activity in the context of share plans |
|
|
0.8 |
|
|
|
(6.4 |
) |
|
Cash flow (used in) from financing activities |
|
|
(13.5 |
) |
|
|
284.8 |
|
|
Effect of changes in exchange rates on cash and cash equivalents |
|
|
(1.7 |
) |
|
|
(1.3 |
) |
|
Net (decrease) increase in cash and cash equivalents |
|
|
(21.3 |
) |
|
|
264.9 |
|
|
Cash and cash equivalents at the beginning of the period |
|
|
103.3 |
|
|
|
64.4 |
|
|
Cash and cash equivalents at the end of the reporting period |
$ |
|
82.0 |
|
$ |
|
329.3 |
|
|
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|
Supplementary data: |
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|
Free Cash Flow (a) + (b) |
$ |
|
(6.1 |
) |
$ |
|
(18.6 |
) |
|
Provisions for property, plant and equipment |
$ |
|
4.0 |
|
$ |
|
21.9 |
|
|
Hexcel Corporation and Subsidiaries |
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Net sales with third-party customers by market |
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|
|
|
|
||||||||||
|
Quarters ended on March 31, 2021 and 2020 |
Unchecked |
|
|
|
|
|
Table A. |
|
||||||||||||||
|
(In millions) |
As reported |
|
Constant currency (a) |
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
B / (W) |
|
|
FX |
|
|
|
|
|
B / (W) |
|
|||
|
market |
|
2021 |
|
|
2020 |
|
%. |
|
|
Effect (b) |
|
|
2020 |
|
%. |
|
||||||
|
Commercial aerospace |
$ |
|
147.6 |
|
$ |
|
362.9 |
|
|
(59.3 |
) |
$ |
|
3.5 |
|
$ |
|
366.4 |
|
|
(59.7 |
) |
|
Space & Defense |
|
|
111.7 |
|
|
|
111.6 |
|
|
0.1 |
|
|
|
1.2 |
|
|
|
112.8 |
|
|
(1.0 |
) |
|
Industrial |
|
|
51.0 |
|
|
|
66.5 |
|
|
(23.3 |
) |
|
|
3.5 |
|
|
|
70.0 |
|
|
(27.1 |
) |
|
Consolidated total |
$ |
|
310.3 |
|
$ |
|
541.0 |
|
|
(42.6 |
) |
$ |
|
8.2 |
|
$ |
|
549.2 |
|
|
(43.5 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated percentage of net sales |
|
%. |
|
|
%. |
|
|
|
|
|
|
|
|
|
%. |
|
|
|
|
|||
|
Commercial aerospace |
|
|
47.6 |
|
|
|
67.1 |
|
|
|
|
|
|
|
|
|
|
66.7 |
|
|
|
|
|
Space & Defense |
|
|
36.0 |
|
|
|
20.6 |
|
|
|
|
|
|
|
|
|
|
20.5 |
|
|
|
|
|
Industrial |
|
|
16.4 |
|
|
|
12.3 |
|
|
|
|
|
|
|
|
|
|
12.8 |
|
|
|
|
|
Consolidated total |
|
|
100.0 |
|
|
|
100.0 |
|
|
|
|
|
|
|
|
|
|
100.0 |
|
|
|
|
| (a) |
To facilitate analysis of the company's net sales trend, total sales and sales by market for the quarter ended March 31, 2020 have been estimated using the same US Dollar, British Pound and Euro exchange rates as those for the respective period in the year 2021 apply and are known as constant currency sales. |
|
| (b) |
The FX effect is the estimated impact on net sales due to changes in foreign exchange rates. |
| Hexcel Corporation and Subsidiaries |
|
|
|
|
|
|
|
||||||||||||
|
Segment information |
|
Unchecked |
|
|
|
Table B. |
|
||||||||||||
|
(In millions) |
|
Composite |
|
|
|
Developed |
|
|
|
Corporate |
|
|
|
total |
|
||||
|
First quarter of 2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales with external customers |
$ |
|
237.2 |
|
|
$ |
|
73.1 |
|
|
$ |
|
– – |
|
|
$ |
|
310.3 |
|
|
Intersegment sales |
|
|
13.3 |
|
|
|
|
0.6 |
|
|
|
|
(13.9 |
) |
|
|
|
– – |
|
|
Total sales |
|
|
250.5 |
|
|
|
|
73.7 |
|
|
|
|
(13.9 |
) |
|
|
|
310.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other operating expenses |
|
|
12.7 |
|
|
|
|
(0.7 |
) |
|
|
|
0.1 |
|
|
|
|
12.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit |
|
|
7.4 |
|
|
|
|
4.7 |
|
|
|
|
(22.3 |
) |
|
|
|
(10.2 |
) |
|
% Operating margin |
|
|
3.0 |
%. |
|
|
|
6.4 |
%. |
|
|
|
|
|
|
|
|
-3.3 |
%. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation |
|
|
30.8 |
|
|
|
|
3.7 |
|
|
|
|
– – |
|
|
|
|
34.5 |
|
|
Share-based compensation expense |
|
|
0.6 |
|
|
|
|
0.2 |
|
|
|
|
8.2 |
|
|
|
|
9.0 |
|
|
Increase in capital expenditures on a regular basis |
|
|
3.6 |
|
|
|
|
0.4 |
|
|
|
|
– – |
|
|
|
|
4.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First quarter of 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Net sales with external customers |
$ |
|
438.5 |
|
|
$ |
|
102.5 |
|
|
$ |
|
– – |
|
|
$ |
|
541.0 |
|
|
Intersegment sales |
|
|
24.8 |
|
|
|
|
0.5 |
|
|
|
|
(25.3 |
) |
|
|
|
– – |
|
|
Total sales |
|
|
463.3 |
|
|
|
|
103.0 |
|
|
|
|
(25.3 |
) |
|
|
|
541.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other operating expense |
|
|
0.6 |
|
|
|
|
0.3 |
|
|
|
|
13.8 |
|
|
|
|
14.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss) |
|
|
91.5 |
|
|
|
|
6.5 |
|
|
|
|
(32.3 |
) |
|
|
|
65.7 |
|
|
% Operating margin |
|
|
19.7 |
%. |
|
|
|
6.3 |
%. |
|
|
|
|
|
|
|
|
12.1 |
%. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation |
|
|
31.8 |
|
|
|
|
3.7 |
|
|
|
|
– |
|
|
|
|
35.5 |
|
|
Stock-based compensation expense |
|
|
4.7 |
|
|
|
|
1.2 |
|
|
|
|
8.5 |
|
|
|
|
14.4 |
|
|
Accrual based additions to capital expenditures |
|
|
20.2 |
|
|
|
|
1.7 |
|
|
|
|
– |
|
|
|
|
21.9 |
|
a) Hexcel does not allocate corporate expenses to the operating segments.
|
Hexcel Corporation and Subsidiaries |
|
|
|
|||||
|
Reconciliation of GAAP to Non-GAAP Operating (Loss) Income, Net (Loss) Income, EPS, Tax Rate and Operating Cash Flow to Free Cash Flow |
Table C |
|
||||||
|
|
Unaudited |
|
||||||
|
|
Quarters Ended |
|
||||||
|
|
March 31, |
|
||||||
|
(In millions) |
2021 |
|
|
2020 |
|
|||
|
GAAP operating (loss) income |
$ |
|
(10.2 |
) |
$ |
|
65.7 |
|
|
Other operating expense (a) |
|
|
12.1 |
|
|
|
14.7 |
|
|
Non-GAAP operating income |
$ |
|
1.9 |
|
$ |
|
80.4 |
|
|
|
|
Unaudited |
|
|||||||||||||||||||||
|
|
|
Quarters Ended March 31, |
|
|||||||||||||||||||||
|
|
|
2021 |
|
|
|
2020 |
|
|||||||||||||||||
|
(In millions, except per diluted share data) |
|
Net |
|
|
EPS |
|
|
|
Net |
|
EPS |
|
|
|
|
|||||||||
|
GAAP |
|
$ |
|
(14.0 |
) |
$ |
|
(0.17 |
) |
|
$ |
|
42.4 |
|
$ |
|
|
0.50 |
|
|
|
|
||
|
Other operating expense (a) |
|
|
|
|
8.8 |
|
|
|
0.11 |
|
|
|
|
11.4 |
|
|
|
|
|
0.14 |
|
|
|
|
|
Tax benefit (b) |
|
|
|
|
(3.2 |
) |
|
|
(0.04 |
) |
|
|
|
– |
|
|
|
|
|
– |
|
|
|
|
|
Non-GAAP |
|
$ |
|
(8.4 |
) |
$ |
|
(0.10 |
) |
|
$ |
|
53.8 |
|
$ |
|
|
0.64 |
|
|
|
|
||
|
|
Unaudited |
|
||||||
|
|
Quarters Ended March 31, |
|
||||||
|
(In millions) |
2021 |
|
|
2020 |
|
|||
|
Net cash provided by operating activities |
$ |
|
(1.2 |
) |
$ |
|
8.6 |
|
|
Less: Capital expenditures |
|
|
(4.9 |
) |
|
|
(27.2 |
) |
|
Free cash flow (non-GAAP) |
$ |
|
(6.1 |
) |
$ |
|
(18.6 |
) |
|
(a) |
The quarter ended March 31, 2021 includes restructuring costs primarily related to severance. The quarter ended March 31, 2020 includes costs related to the terminated merger with Woodward, Inc. |
|
|
(b) |
The quarter ended March 31, 2021 includes a discrete tax benefit of $ 3.2 million from the revaluation of deferred tax liabilities related to a favorable U.S. state tax law change. |
NOTE: Management believes that adjusted operating income (loss), adjusted net income (loss), adjusted diluted net income (loss) 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 |
|
|||||||||
|
|
|
March 31, |
|
|
December 31, |
|
|
March 31, |
|
|||
|
(In millions) |
|
2021 |
|
|
2020 |
|
|
2020 |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current portion finance lease |
$ |
|
0.3 |
|
$ |
|
0.9 |
|
$ |
|
0.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current debt |
|
|
0.3 |
|
|
|
0.9 |
|
|
|
0.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Senior unsecured credit facility |
|
|
214.0 |
|
|
|
228.0 |
|
|
|
693.0 |
|
|
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 |
|
|
(1.4 |
) |
|
|
(1.5 |
) |
|
|
(1.7 |
) |
|
Senior notes deferred financing costs |
|
|
(3.4 |
) |
|
|
(3.5 |
) |
|
|
(4.0 |
) |
|
Other debt |
|
|
2.8 |
|
|
|
2.5 |
|
|
|
2.2 |
|
|
Total long-term debt |
|
|
912.0 |
|
|
|
925.5 |
|
|
|
1,389.5 |
|
|
Total debt |
|
|
912.3 |
|
|
|
926.4 |
|
|
|
1,390.1 |
|
|
Less: Cash and cash equivalents |
|
|
(82.0 |
) |
|
|
(103.3 |
) |
|
|
(329.3 |
) |
|
Total debt, net of cash |
$ |
|
830.3 |
|
$ |
|
823.1 |
|
$ |
|
1,060.8 |
|