Delaware
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0-18348
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06-1209796
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(State or other
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(Commission File Number)
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(I.R.S. Employer
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jurisdiction of incorporation)
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Identification No.)
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1400 Corporate Center Way, Wellington, Florida
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33414-2105
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(Address of principal executive offices)
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(Zip Code)
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Item 2.02
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Results of Operations and Financial Condition.
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Item 9.01
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Financial Statements and Exhibits.
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(d)
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Exhibits
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99.1
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Press Release, dated July 26, 2016, issued by B/E Aerospace, Inc. announcing financial results for the quarter ended June 30, 2016.
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B/E AEROSPACE, INC. | ||||
By: | /s/ Joseph T. Lower | |||
Name: | Joseph T. Lower | |||
Title: | Vice President and Chief Financial Officer | |||
Exhibit No.
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Description of Exhibits
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99.1
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Press Release, dated July 26, 2016, issued by B/E Aerospace, Inc. announcing financial results for the quarter ended June 30, 2016.
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News Release
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CONTACT:
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Greg Powell
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Vice President, Investor Relations
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B/E Aerospace, Inc.
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(561) 791-5000 ext. 1450
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·
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Revenues of $753 million and operating earnings of $137 million each increased 7 percent as compared with prior year period
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·
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Operating margin was 18.1 percent
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·
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Net earnings per diluted share of $0.84 increased 12 percent as compared with prior year period
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·
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The Company raised both its 2016 financial guidance and its 2017 outlook
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REVENUES
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||||||||||||
($ in millions)
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||||||||||||
Segment
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2016
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2015
|
% Change
|
|||||||||
Commercial aircraft
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$ | 610.8 | $ | 539.3 | 13.3 | % | ||||||
Business jet
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142.3 | 161.3 | -11.8 | % | ||||||||
Total
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$ | 753.1 | $ | 700.6 | 7.5 | % | ||||||
OPERATING EARNINGS
|
||||||||||||
($ in millions)
|
||||||||||||
Segment
|
2016 | 2015 |
% Change
|
|||||||||
Commercial aircraft
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$ | 114.6 | $ | 99.7 | 14.9 | % | ||||||
Business jet
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22.0 | 27.6 | -20.3 | % | ||||||||
Total
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$ | 136.6 | $ | 127.3 | 7.3 | % |
REVENUES
|
||||||||||||
($ in millions)
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||||||||||||
Segment
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2016
|
2015
|
% Change
|
|||||||||
Commercial aircraft
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$ | 1,167.8 | $ | 1,065.4 | 9.6 | % | ||||||
Business jet
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302.0 | 325.2 | -7.1 | % | ||||||||
Total
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$ | 1,469.8 | $ | 1,390.6 | 5.7 | % | ||||||
OPERATING EARNINGS
|
||||||||||||
($ in millions)
|
||||||||||||
Segment
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2016 | 2015 |
% Change
|
|||||||||
Commercial aircraft
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$ | 219.3 | $ | 198.1 | 10.7 | % | ||||||
Business jet
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46.7 | 54.9 | -14.9 | % | ||||||||
Total
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$ | 266.0 | $ | 253.0 | 5.1 | % |
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·
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Revenues are expected to increase approximately 5 percent as compared to 2015,
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·
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Operating margin is expected to be in excess of 18 percent,
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·
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Interest expense is expected to be approximately $91 million,
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·
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Full year 2016 effective tax rate is expected to be about 24 percent, approximately 200 basis points higher than the Company’s original expectation,
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·
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Net earnings per share are expected to be approximately $3.25 per diluted share, and
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·
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Free cash flow conversion ratio is expected to be approximately 75 percent of net earnings.
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THREE MONTHS ENDED
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SIX MONTHS ENDED
|
|||||||||||||||
June 30,
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June 30,
|
|||||||||||||||
2016
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2015
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2016
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2015
|
|||||||||||||
Revenues
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$ | 753.1 | $ | 700.6 | $ | 1,469.8 | $ | 1,390.6 | ||||||||
Cost of sales
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447.8 | 420.1 | 884.4 | 821.7 | ||||||||||||
Selling, general and administrative
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87.9 | 86.2 | 171.7 | 173.3 | ||||||||||||
Research, development and engineering
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80.8 | 67.0 | 147.7 | 142.6 | ||||||||||||
Operating earnings
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136.6 | 127.3 | 266.0 | 253.0 | ||||||||||||
Operating earnings, as a percentage
of revenues |
18.1 | % | 18.2 | % | 18.1 | % | 18.2 | % | ||||||||
Interest expense, net
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22.7 | 24.1 | 45.8 | 48.4 | ||||||||||||
Earnings before income taxes
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113.9 | 103.2 | 220.2 | 204.6 | ||||||||||||
Income tax expense
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29.1 | 24.3 | 52.8 | 48.1 | ||||||||||||
Net earnings
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$ | 84.8 | $ | 78.9 | $ | 167.4 | $ | 156.5 | ||||||||
Net earnings per common share:
|
||||||||||||||||
Basic
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$ | 0.85 | $ | 0.76 | $ | 1.66 | $ | 1.50 | ||||||||
Diluted
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$ | 0.84 | $ | 0.75 | $ | 1.66 | $ | 1.49 | ||||||||
Weighted average common shares:
|
||||||||||||||||
Basic
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100.2 | 104.5 | 100.7 | 104.5 | ||||||||||||
Diluted
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100.7 | 105.0 | 101.1 | 105.0 |
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June 30,
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December 31,
|
||||||
2016
|
2015
|
|||||||
ASSETS
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents
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$ | 100.2 | $ | 154.1 | ||||
Accounts receivable
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420.6 | 354.6 | ||||||
Inventories
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1,198.1 | 1,091.9 | ||||||
Other current assets
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57.7 | 57.8 | ||||||
Total current assets
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1,776.6 | 1,658.4 | ||||||
Long-term assets
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1,475.5 | 1,482.5 | ||||||
$ | 3,252.1 | $ | 3,140.9 | |||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||||
Total current liabilities
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$ | 853.3 | $ | 822.2 | ||||
Total long-term liabilities
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2,280.1 | 2,263.2 | ||||||
Total stockholders' equity
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118.7 | 55.5 | ||||||
$ | 3,252.1 | $ | 3,140.9 | |||||
Six Months Ended June 30,
|
||||||||
2016
|
2015
|
|||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
||||||
Net earnings
|
$ | 167.4 | $ | 156.5 | ||||
Adjustments to reconcile net earnings to net cash flows provided by
operating activities, net of effects from acquisitions: |
||||||||
Depreciation and amortization
|
42.2 | 41.3 | ||||||
Deferred income taxes
|
2.6 | 5.5 | ||||||
Non-cash compensation
|
16.7 | 14.3 | ||||||
Provision for doubtful accounts
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0.9 | 0.2 | ||||||
Tax benefits realized from prior exercises of restricted stock
|
(0.4 | ) | (2.4 | ) | ||||
Loss on disposal of property and equipment
|
1.0 | 0.2 | ||||||
Changes in operating assets and liabilities:
|
||||||||
Accounts receivable
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(73.4 | ) | (95.6 | ) | ||||
Inventories
|
(118.0 | ) | (107.1 | ) | ||||
Other current and non-current assets
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(2.9 | ) | 62.3 | |||||
Accounts payable and accrued liabilities
|
58.0 | 34.7 | ||||||
Net cash flows provided by operating activities
|
94.1 | 109.9 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
||||||||
Capital expenditures
|
(36.1 | ) | (48.0 | ) | ||||
Acquisitions, net of cash acquired
|
- | 4.3 | ||||||
Other
|
(1.0 | ) | (5.1 | ) | ||||
Net cash flows used in investing activities
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(37.1 | ) | (48.8 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
||||||||
Proceeds from common stock issued
|
2.5 | 3.1 | ||||||
Purchase of treasury stock, including share repurchases
|
(76.6 | ) | (0.4 | ) | ||||
Tax benefits realized from prior exercises of restricted stock
|
0.4 | 2.4 | ||||||
Borrowings on line of credit
|
160.0 | - | ||||||
Repayments on line of credit
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(150.0 | ) | - | |||||
Principal payments on long-term debt
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- | (11.0 | ) | |||||
Dividends
|
(42.2 | ) | (19.9 | ) | ||||
Net cash used in financing activities
|
(105.9 | ) | (25.8 | ) | ||||
Effect of foreign exchange rate changes on cash and
cash equivalents |
(5.0 | ) | (1.5 | ) | ||||
Net (decrease) increase in cash and cash equivalents
|
(53.9 | ) | 33.8 | |||||
Cash and cash equivalents, beginning of period
|
154.1 | 292.5 | ||||||
Cash and cash equivalents, end of period
|
$ | 100.2 | $ | 326.3 | ||||
Year Ended
|
||||
December 31,
|
||||
2016
|
||||
Expected net cash flow provided by operating activities
|
$ | 330.0 | ||
Expected capital expenditures
|
85.0 | |||
Expected free cash flow
|
$ | 245.0 | ||
Expected net earnings
|
$ | 325.0 | ||
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