Hexcel Corporation (NYSE: HXL):
- Q3 2024 Sales were $457 million, an increase of 8.8% over Q3
2023 sales of $420 million (8.3% increase in constant
currency).
- Q3 2024 GAAP diluted EPS of $0.49 compared to Q3 2023 GAAP
diluted EPS of $0.45.
- Q3 2024 adjusted diluted EPS of $0.47, compared to Q3 2023
adjusted diluted EPS of $0.38.
- Full year 2024 results expected to be at the lower end of
guidance ranges and to benefit from lower tax rates.
See Table C for reconciliation of GAAP and non-GAAP operating
income, net income, earnings per share and operating cash flow to
free cash flow. Free cash flow is cash from operations less capital
expenditures.
Summary of Results from
Operations
Quarters Ended
Nine Months Ended
September 30,
September 30,
(In millions, except per share data)
2024
2023
% Change
2024
2023
% Change
Net Sales
$
456.5
$
419.5
8.8 %
$
1,429.2
$
1,331.5
7.3 %
Net sales change in constant currency
8.3 %
7.2 %
Operating Income
52.5
43.6
20.4 %
177.2
167.7
5.7 %
Net Income
39.8
38.7
2.8 %
126.3
123.9
1.9 %
Diluted net income per common share
$
0.49
$
0.45
8.9 %
$
1.52
$
1.45
4.8 %
Non-GAAP measures for year-over-year
comparison (Table C)
Adjusted Operating Income
$
52.9
$
42.8
23.6 %
$
179.0
$
167.6
6.8 %
As a % of sales
11.6
%
10.2
%
12.5
%
12.6
%
Adjusted Net Income
38.3
32.5
17.8 %
125.9
118.2
6.5 %
Adjusted diluted net income per share
$
0.47
$
0.38
23.7 %
$
1.51
$
1.38
9.4 %
Hexcel Corporation (NYSE: HXL) today reported third quarter 2024
results including net sales of $457 million and adjusted diluted
EPS of $0.47 per share.
CEO and President Tom Gentile said, “Hexcel saw 9% growth in
total revenue year over year, driven by a robust 17% growth in
commercial aerospace. Year-to-date commercial aerospace is now up
14%. Air traffic continues to grow post pandemic leading to record
demand for aircraft that use Hexcel lightweight materials, but
supply chain challenges in the global aerospace industry continue
to delay planned production rate increases at our major customers.
Our customers are currently indicating that production rates will
increase in 2025. We will continue to monitor our cost and labor
training position to meet those projected production rate increases
as schedules firm.”
Mr. Gentile continued, “Whereas the overall aerospace supply
chain seemed to be recovering in late-2023, new challenges and
shortages have developed as 2024 has progressed. As our business is
impacted by the near-term slowing of previously planned production
rate ramps by our key customers, we now expect FY 2024 sales and
adjusted EPS to be at the lower end of our 2024 guidance ranges and
will benefit from lower tax rates. Further, given recent
developments, the assumptions for future production rates that were
the basis for our mid-term guidance for the three-year period
2024-2026 provided in February 2024 are no longer valid. We are
therefore withdrawing our previously issued mid-term guidance and
will provide guidance for 2025, with our Q4 earnings in
January.”
Mr. Gentile concluded: “Our longer-term growth outlook remains
robust, driven by the ongoing recovery of commercial aerospace
production to meet historically strong backlogs. Hexcel lightweight
materials are also in demand for military aerospace and next
generation commercial aircraft that seek composite lightweighting
to reduce fuel consumption, increase range, and decrease carbon
emissions. We are continuing to focus on execution and cash
generation. We see compelling value in our business and repurchased
another $50 million of Hexcel common stock in the third quarter
bringing the year-to-date total to $252 million.”
Markets
Sales in the third quarter of 2024 were $456.5 million compared
to $419.5 million in the third quarter of 2023.
Commercial Aerospace
- Commercial Aerospace sales of $295.9 million for the third
quarter of 2024 increased 17.5% (17.0% in constant currency)
compared to the third quarter of 2023. Airbus programs, which
represent the largest portion of Hexcel sales, drove the sales
growth including the A350 and A320neo. Boeing 787 sales, which
represent about half of Hexcel’s sales to Boeing, also increased,
whereas 737 MAX sales decreased modestly. Other Commercial
Aerospace increased 9.1% for the third quarter of 2024 compared to
the third quarter of 2023 led by latest-generation business jet
sales.
Space & Defense
- Space & Defense sales of $128.2 million were relatively
unchanged (0.9% lower in constant currency) for the quarter as
compared to the third quarter of 2023. Strength in Sikorsky CH-53K
and Black Hawk was offset by lower Bell V-22 sales and softer Space
sales, with launchers, satellites, and rocket motors all
lower.
Industrial
- Total Industrial sales of $32.4 million in the third quarter of
2024 decreased 16.5% (17.3% in constant currency) compared to the
third quarter of 2023 due to declines in all sub-markets.
Consolidated Operations
Gross margin for the third quarter of 2024 was 23.3% compared to
21.8% in the third quarter of 2023. As a percentage of sales,
selling, general and administrative expenses for the third quarter
of 2024 was 8.7% compared to 8.4% for the third quarter of 2023.
R&T expenses as a percentage of sales was 3.0% for the third
quarter of 2024 compared to 3.2% for the third quarter of 2023.
Adjusted operating income in the third quarter of 2024 was $52.9
million or 11.6% of sales, compared to $42.8 million, or 10.2% of
sales in 2023. The impact of exchange rates on operating income as
a percent of sales was favorable by approximately 10 basis points
in the third quarter of 2024 compared to the third quarter of
2023.
Year-to-Date 2024
Results
Sales for the first nine months of 2024 were $1,429.2 million
compared to $1,331.5 million, a 7.3% increase from the same period
in 2023.
Commercial Aerospace (64% of YTD sales)
- Commercial Aerospace sales of $915.9 million increased 14.4%
(14.3% in constant currency) for the first nine months of 2024
compared to the first nine months of 2023. Growth was led by both
the A350 and 787, and the A320neo. Sales were down nominally for
the 737 MAX. Other Commercial Aerospace increased 5.8% for the
first nine months of 2024 compared to the same period in 2023,
supported by latest-generation business jet sales.
Space & Defense (28% of YTD sales)
- Space & Defense sales of $406.2 million increased 3.5%
(3.4% in constant currency) for the first nine months of 2024 as
compared to the first nine months of 2023. Key program growth
including F-35, CH-53K, Black Hawk and European military helicopter
programs was partially offset by the winding down of V-22
production and lower satellite and civilian helicopter sales.
Industrial (8% of YTD sales)
- Total Industrial sales of $107.1 million in the first nine
months of 2024 decreased 22.6% (22.8% in constant currency)
compared to the first nine months of 2023 as all sub-markets
declined.
Consolidated Operations
Gross margin for the first nine months of 2024 was 24.6%
compared to 24.8% in the prior year period. As a percentage of
sales, selling, general and administrative for the first nine
months of 2024 was 9.0% compared to 9.2% for the first nine months
of 2023. R&T expenses as a percentage of sales for the first
nine months of 2024 was 3.1% compared to 3.0% for the first nine
months of 2023. Adjusted operating income for the first nine months
of 2024 was $179.0 million or 12.5% of sales, compared to $167.6
million or 12.6% of sales in 2023. Other operating expense (income)
for the first nine months of 2024 and 2023 included restructuring
costs and the first nine months of 2023 also included a pre-tax net
gain of $0.8 million from the sale of a facility in Windsor,
Colorado. The impact of exchange rates on operating income as a
percent of sales was favorable by approximately 30 basis points in
the first nine months of 2024 compared to the first nine months of
2023.
Cash and other
- Net cash provided by operating activities in the first nine
months of 2024 was $127.3 million, compared to $98.1 million for
the first nine months of 2023. Working capital was a cash use of
$93.1 million for the first nine months of 2024 and a use of $112.1
million for the comparable period in 2023. Capital expenditures on
a cash basis were $68.4 million for the first nine months of 2024
compared to $94.4 million for the same period in 2023, which
included approximately $38 million for the purchase of the land and
building at the Hexcel Amesbury, Massachusetts facility. Net cash
used for investing activities for the nine months ended September
30, 2023 included net proceeds of $10.3 million received from the
sale of a facility in Windsor, Colorado. Free cash flow was $58.9
million in the first nine months of 2024 compared to $3.7 million
in the first nine months of 2023. Free cash flow is defined as cash
generated from operating activities less cash paid for capital
expenditures. Capital expenditures on an accrual basis were $59.6
million and $88.7 million for the first nine months of 2024 and
2023, respectively.
- The Company used $50.4 million to repurchase shares of its
common stock during the third quarter of 2024 and $252.2 million
during the first nine months of 2024. The aggregate remaining
authorization under the share repurchase program as of September
30, 2024 was $234.9 million.
- As announced today, the Board of Directors declared a quarterly
dividend of $0.15 per share payable to stockholders of record as of
November 1, 2024, with a payment date of November 8, 2024.
2024 Guidance
- Sales of $1.90 billion to $1.98 billion (unchanged)
- Adjusted diluted earnings per share of $2.02 to $2.18
(unchanged)
- Free cash flow of around $200 million (unchanged)
- Capital expenditures less than $100 million (unchanged)
- Effective tax rate approximately 19% (reduced from 22.0%)
*****
Hexcel will host a conference call at 10:00 a.m. ET, on October
22, 2024 to discuss third quarter 2024 results. The live webcast
will be available on the Investor Relations section of the Hexcel
website via the following link:
https://events.q4inc.com/attendee/273321724 The event can also be
accessed by dialing +1 (646) 307-1963. The conference ID is
2360739. 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, and the revenues we may generate from an
aircraft model or program; expectations with regard to the impact
of regulatory activity related to the Boeing 737 MAX or Boeing 787
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 industrial applications;
expectations regarding cash generation, working capital trends, and
inventory levels; expectations as to the level of capital
expenditures, capacity, including the timing of completion of
capacity expansions, and qualification of new products;
expectations regarding our ability to improve or maintain margins;
expectations regarding our ability to attract, motivate, and retain
the workforce necessary to execute our business strategy;
projections regarding our tax rate; expectations with regard to the
continued impact of macroeconomic factors or geopolitical issues or
conflicts; expectations regarding our strategic initiatives,
including, our sustainability goals; expectations with regard to
the effectiveness of cybersecurity measures; expectations regarding
the outcome of legal matters or the impact of changes in laws or
regulations; and our expectations of financial results for 2024 and
beyond. Actual results may differ materially from the results
anticipated in the forward looking statements due to a variety of
factors, including but not limited to the extent of the impact of
macroeconomic factors or geopolitical issues or conflicts;
reductions in sales to any significant customers, particularly
Airbus or Boeing, including related to regulatory activity or
public scrutiny impacting the Boeing 737 MAX or the Boeing 787; our
ability to effectively adjust production and inventory levels to
align with customer demand; our ability to effectively motivate,
retain and hire the necessary workforce; the availability and cost
of raw materials, including the impact of supply disruptions and
inflation; our ability to successfully implement or realize our
strategic initiatives, including our sustainability goals and any
restructuring or alignment activities in which we may engage;
changes in sales mix; changes in current pricing due to cost
levels; changes in aerospace delivery rates; changes in government
defense procurement budgets; timely new product development or
introduction; our ability to install, staff and qualify necessary
capacity or complete capacity expansions to meet customer demand;
cybersecurity-related risks, including the potential impact of
breaches or intrusions; currency exchange rate fluctuations;
changes in political, social and economic conditions, including the
effect of change in global trade policies, such as sanctions; work
stoppages or other labor disruptions; our ability to successfully
complete any strategic acquisitions, investments or dispositions;
compliance with environmental, health, safety and other related
laws and regulations, including those related to climate change;
the effects of natural disasters or other severe weather events,
which may be worsened by the impact of climate change, and other
severe catastrophic events, including any public health crisis; and
the unexpected outcome of legal matters or impact of changes in
laws or regulations. Additional risk factors are described in our
filings with the Securities and Exchange Commission. We do not
undertake an obligation to update our forward-looking statements to
reflect future events.
Hexcel Corporation and
Subsidiaries
Condensed Consolidated Statements of
Operations
Unaudited
Quarters Ended
Nine Months Ended
September 30,
September 30,
(In millions, except per share data)
2024
2023
2024
2023
Net sales
$
456.5
$
419.5
$
1,429.2
$
1,331.5
Cost of sales
350.0
327.9
1,077.9
1,001.4
Gross margin
106.5
91.6
351.3
330.1
% Gross Margin
23.3
%
21.8
%
24.6
%
24.8
%
Selling, general and administrative
expenses
39.8
35.4
128.7
121.9
Research and technology expenses
13.8
13.4
43.6
40.6
Other operating expense (income)
0.4
(0.8
)
1.8
(0.1
)
Operating income
52.5
43.6
177.2
167.7
Interest expense, net
8.5
7.8
23.1
26.4
Income before income taxes, and equity in
earnings of affiliated companies
44.0
35.8
154.1
141.3
Income tax expense (benefit)
4.2
(0.7
)
27.8
22.5
Income before equity in earnings of
affiliated companies
39.8
36.5
126.3
118.8
Equity in earnings from affiliated
companies
-
2.2
-
5.1
Net income
$
39.8
$
38.7
$
126.3
$
123.9
Basic net income per common share:
$
0.49
$
0.46
$
1.53
$
1.46
Diluted net income per common share:
$
0.49
$
0.45
$
1.52
$
1.45
Weighted-average common shares:
Basic
81.5
84.6
82.6
84.6
Diluted
82.1
85.6
83.3
85.5
Hexcel Corporation and
Subsidiaries
Condensed Consolidated Balance
Sheets
Unaudited
September 30,
December 31,
(In millions)
2024
2023
Assets
Cash and cash equivalents
$
98.2
$
227.0
Accounts receivable, net
258.6
234.7
Inventories, net
376.0
334.4
Contract assets
35.5
25.1
Prepaid expenses and other current
assets
59.7
43.0
Total current assets
828.0
864.2
Property, plant and equipment
3,270.5
3,195.5
Less accumulated depreciation
(1,612.9
)
(1,516.8
)
Net property, plant and equipment
1,657.6
1,678.7
Goodwill and other intangible assets,
net
247.7
251.3
Investments in affiliated companies
5.0
5.0
Other assets
124.0
119.3
Total assets
$
2,862.3
$
2,918.5
Liabilities and Stockholders'
Equity
Liabilities:
Short-term borrowings
$
0.1
$
0.1
Accounts payable
124.2
159.1
Accrued compensation and benefits
95.6
75.7
Accrued liabilities
80.1
81.0
Total current liabilities
300.0
315.9
Long-term debt
805.1
699.4
Retirement obligations
32.7
42.6
Other non-current liabilities
135.0
144.1
Total liabilities
$
1,272.8
$
1,202.0
Stockholders' equity:
Common stock, $0.01 par value, 200.0
shares authorized, 111.5 shares issued at September 30, 2024 and
110.8 shares issued at December 31, 2023
$
1.1
$
1.1
Additional paid-in capital
964.1
936.8
Retained earnings
2,257.8
2,168.7
Accumulated other comprehensive loss
(53.9
)
(74.1
)
3,169.1
3,032.5
Less – Treasury stock, at cost, 30.5
shares at September 30, 2024 and 26.7 shares at December 31,
2023
(1,579.6
)
(1,316.0
)
Total stockholders' equity
1,589.5
1,716.5
Total liabilities and stockholders'
equity
$
2,862.3
$
2,918.5
Hexcel Corporation and
Subsidiaries
Condensed Consolidated Statements of
Cash Flows
Unaudited
Nine Months Ended
September 30,
(In millions)
2024
2023
Cash flows from operating
activities
Net income
$
126.3
$
123.9
Reconciliation to net cash provided by
operating activities:
Depreciation and amortization
93.0
93.2
Amortization related to financing
0.3
0.5
Deferred income taxes
(4.4
)
(12.3
)
Equity in earnings from affiliated
companies
-
(5.1
)
Stock-based compensation
19.3
18.3
Restructuring expenses, net of
payments
0.4
(4.1
)
Impairment of assets
-
1.7
Gain on sale of assets
-
(0.8
)
Changes in assets and liabilities:
Increase in accounts receivable
(19.7
)
(15.8
)
Increase in inventories
(37.5
)
(33.2
)
Increase in prepaid expenses and other
current assets
(20.8
)
(9.4
)
Decrease in accounts payable/accrued
liabilities
(15.1
)
(53.7
)
Other - net
(14.5
)
(5.1
)
Net cash provided by operating activities
(a)
127.3
98.1
Cash flows from investing
activities
Capital expenditures (b)
(68.4
)
(94.4
)
Proceeds from sale of assets
-
10.3
Proceeds from sale of investments
-
2.5
Net cash used for investing activities
(68.4
)
(81.6
)
Cash flows from financing
activities
Borrowings from senior unsecured credit
facilities
160.0
163.0
Repayments of senior unsecured credit
facilities
(55.0
)
(133.0
)
Repurchases of common stock
(252.2
)
(30.1
)
Issuance costs related to senior unsecured
credit facilities
-
(2.5
)
Repayment of finance lease obligation and
other debt, net
(0.1
)
(0.1
)
Dividends paid
(37.2
)
(31.7
)
Activity under stock plans
(3.3
)
4.7
Net cash used for financing activities
(187.8
)
(29.7
)
Effect of exchange rate changes on cash
and cash equivalents
0.1
(1.1
)
Net decrease in cash and cash
equivalents
(128.8
)
(14.3
)
Cash and cash equivalents at beginning of
period
227.0
112.0
Cash and cash equivalents at end of
period
$
98.2
$
97.7
Supplemental data:
Free Cash Flow (a)+(b)
$
58.9
$
3.7
Accrual basis additions to property, plant
and equipment
$
59.6
$
88.7
Hexcel Corporation and
Subsidiaries
Net Sales to Third-Party Customers by
Market
Quarters Ended September 30, 2024 and
2023
Unaudited
Table A
(In millions)
As Reported
Constant Currency (a)
B/(W)
FX
B/(W)
Market
2024
2023
%
Effect (b)
2023
%
Commercial Aerospace
$
295.9
$
251.9
17.5
$
1.0
$
252.9
17.0
Space & Defense
128.2
128.8
(0.5
)
0.5
129.3
(0.9
)
Industrial
32.4
38.8
(16.5
)
0.4
39.2
(17.3
)
Consolidated Total
$
456.5
$
419.5
8.8
$
1.9
$
421.4
8.3
Consolidated % of Net Sales
%
%
%
Commercial Aerospace
64.8
60.0
60.0
Space & Defense
28.1
30.7
30.7
Industrial
7.1
9.3
9.3
Consolidated Total
100.0
100.0
100.0
Nine Months Ended September 30, 2024
and 2023
Unaudited
(In millions)
As Reported
Constant Currency (a)
B/(W)
FX
B/(W)
Market
2024
2023
%
Effect (b)
2023
%
Commercial Aerospace
$
915.9
$
800.7
14.4
$
0.3
$
801.0
14.3
Space & Defense
406.2
392.5
3.5
0.3
392.8
3.4
Industrial
107.1
138.3
(22.6
)
0.5
138.8
(22.8
)
Consolidated Total
$
1,429.2
$
1,331.5
7.3
$
1.1
$
1,332.6
7.2
Consolidated % of Net Sales
%
%
%
Commercial Aerospace
64.1
60.1
60.1
Space & Defense
28.4
29.5
29.5
Industrial
7.5
10.4
10.4
Consolidated Total
100.0
100.0
100.0
(a)
To assist in the analysis of the
Company’s net sales trend, total net sales and sales by market for
the quarter and nine months ended September 30, 2023 have
been estimated using the same U.S. dollar, British pound and Euro
exchange rates as applied for the respective periods in 2024 and
are referred to as “constant currency” sales.
(b)
FX effect is the estimated impact
on “as reported” net sales due to changes in foreign currency
exchange rates.
Hexcel Corporation and Subsidiaries
Segment Information
Unaudited
Table B
(In millions)
Composite Materials
Engineered Products
Corporate & Other
(a)
Total
Third Quarter 2024
Net sales to external customers
$
367.6
$
88.9
$
-
$
456.5
Intersegment sales
22.6
0.1
(22.7
)
-
Total sales
390.2
89.0
(22.7
)
456.5
Other operating expense
0.2
0.2
-
0.4
Operating income (loss)
56.3
10.0
(13.8
)
52.5
% Operating margin
14.4
%
11.2
%
11.5
%
Depreciation and amortization
27.3
3.7
-
31.0
Stock-based compensation expense
0.8
0.2
1.9
2.9
Accrual based additions to capital
expenditures
16.0
2.5
-
18.5
Third Quarter 2023
Net sales to external customers
$
340.5
$
79.0
$
-
$
419.5
Intersegment sales
16.2
0.2
(16.4
)
-
Total sales
356.7
79.2
(16.4
)
419.5
Other operating income
(0.8
)
-
-
(0.8
)
Operating income (loss)
43.7
6.2
(6.3
)
43.6
% Operating margin
12.3
%
7.8
%
10.4
%
Depreciation and amortization
27.8
3.7
-
31.5
Stock-based compensation expense
1.0
0.3
1.3
2.6
Accrual based additions to capital
expenditures
15.6
2.6
-
18.2
First Nine Months 2024
Net sales to external customers
$
1,155.7
$
273.5
$
-
$
1,429.2
Intersegment sales
69.8
1.0
(70.8
)
-
Total sales
1,225.5
274.5
(70.8
)
1,429.2
Other operating expense
1.0
0.8
-
1.8
Operating income (loss)
194.3
35.9
(53.0
)
177.2
% Operating margin
15.9
%
13.1
%
12.4
%
Depreciation and amortization
81.8
11.2
-
93.0
Stock-based compensation expense
5.0
1.3
13.0
19.3
Accrual based additions to capital
expenditures
51.3
8.3
-
59.6
First Nine Months 2023
Net sales to external customers
$
1,097.2
$
234.3
$
-
$
1,331.5
Intersegment sales
54.0
1.7
(55.7
)
-
Total sales
1,151.2
236.0
(55.7
)
1,331.5
Other operating (income) expense
(0.3
)
0.2
-
(0.1
)
Operating income (loss)
181.1
25.0
(38.4
)
167.7
% Operating margin
15.7
%
10.6
%
12.6
%
Depreciation and amortization
82.5
10.7
-
93.2
Stock-based compensation expense
5.2
1.4
11.7
18.3
Accrual based additions to capital
expenditures
41.6
47.1
-
88.7
(a) Hexcel does not allocate corporate
expenses to the operating segments.
Hexcel Corporation and
Subsidiaries
Reconciliation of GAAP to Non-GAAP
Operating Income, Net Income, EPS and Operating Cash Flow to Free
Cash Flow
Table C
Unaudited
Quarters Ended
Nine Months Ended
September 30,
September 30,
(In millions)
2024
2023
2024
2023
GAAP operating income
$
52.5
$
43.6
$
177.2
$
167.7
Other operating expense (income) (a)
0.4
(0.8
)
1.8
(0.1
)
Non-GAAP operating income
$
52.9
$
42.8
$
179.0
$
167.6
Unaudited
Quarters Ended September 30,
2024
2023
(In millions, except per diluted share
data)
Net Income
EPS
Net Income
EPS
GAAP
$
39.8
$
0.49
$
38.7
$
0.45
Other operating expense (income), net of
tax (a)
0.3
-
(0.6
)
(0.01
)
Tax benefit (b)
(1.8
)
(0.02
)
(5.6
)
(0.06
)
Non-GAAP
$
38.3
$
0.47
$
32.5
$
0.38
Unaudited
Nine Months Ended September
30,
2024
2023
(In millions, except per diluted share
data)
Net Income
EPS
Net Income
EPS
GAAP
$
126.3
$
1.52
$
123.9
$
1.45
Other operating expense (income), net of
tax (a)
1.4
0.01
(0.1
)
-
Tax benefit (b)
(1.8
)
(0.02
)
(5.6
)
(0.07
)
Non-GAAP
$
125.9
$
1.51
$
118.2
$
1.38
Unaudited
Nine Months Ended September
30,
(In millions)
2024
2023
Net cash provided by operating
activities
$
127.3
$
98.1
Less: Capital expenditures
(68.4
)
(94.4
)
Free cash flow (non-GAAP)
$
58.9
$
3.7
(a)
The quarter and nine months ended
September 30, 2024 included restructuring costs. The quarter and
nine months ended September 30, 2023 included the net gain of $0.8
million from the sale of the facility in Windsor, Colorado and
restructuring costs.
(b)
The quarters and nine months
ended September 30, 2024 and 2023 included discrete tax benefits of
$1.8 million and $5.6 million, respectively, primarily related to
adjustments to our provision based on the finalization of prior
year tax returns.
NOTE: Management believes
that adjusted operating income, adjusted net income, adjusted
diluted net income per share and free cash flow, which are non-GAAP
measures, are meaningful to investors because they provide a view
of Hexcel with respect to the underlying operating results
excluding special items. Special items represent significant
charges or credits that are important to an understanding of
Hexcel’s overall operating results in the periods presented.
Non-GAAP measurements are not recognized in accordance with
generally accepted accounting principles and should not be viewed
as an alternative to GAAP measures of performance.
Hexcel Corporation and
Subsidiaries
Schedule of Total Debt, Net of
Cash
Table D
Unaudited
September 30,
December 31,
September 30,
(In millions)
2024
2023
2023
Current portion finance lease
$
0.1
$
0.1
$
0.1
Total current debt
0.1
0.1
0.1
Senior unsecured credit facility
105.0
-
55.0
4.7% senior notes due 2025
300.0
300.0
300.0
3.95% senior notes due 2027
400.0
400.0
400.0
Senior notes original issue discounts
(0.5
)
(0.7
)
(0.7
)
Senior notes deferred financing costs
(1.1
)
(1.6
)
(1.7
)
Other debt
1.7
1.7
1.5
Total long-term debt
805.1
699.4
754.1
Total Debt
805.2
699.5
754.2
Less: Cash and cash equivalents
(98.2
)
(227.0
)
(97.7
)
Total debt, net of cash
$
707.0
$
472.5
$
656.5
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241021686128/en/
Kurt Goddard | Vice President Investor Relations |
Kurt.Goddard@Hexcel.com | +1 (203)-352-6826
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