B/E Aerospace Announces Financial Results.WELLINGTON Wellington, city (1996 pop. 157,647; urban agglomeration 334,051), capital of New Zealand, extreme S North Island, on Port Nicholson, an inlet of Cook Strait. , Fla. -- B/E B/E abbr. 1. bill of entry 2. bill of exchange Aerospace, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :BEAV BEAV Binary Editor and Viewer ): - $9.3 MILLION FOURTH QUARTER LOSS INCLUDES $8.8 MILLION DEBT PRE-PAYMENT CHARGE - FULL YEAR SALES UP 17.5% - OPERATING EARNINGS Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before MORE THAN TRIPLE TO $64.4 MILLION - RECORD FOURTH QUARTER BOOKINGS AND RECORD YEAR-END year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. 2004 BACKLOG Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. B/E Aerospace, Inc. (NASDAQ:BEAV) today announced fourth quarter and year-end results for 2004, and discussed financial guidance for 2005 and 2006. HIGHLIGHTS --B/E reported fourth quarter sales of $189.6 million, representing year over year growth of 16 percent. --Fourth quarter operating earnings of $16.3 million were $15.1 million higher than operating earnings of $1.2 million for the fourth quarter last year. The substantial increase in operating earnings was driven by the continuing turnaround Turnaround A situation where a company that has had poor performance for an extended period of time experiences a positive reversal. Notes: A speculator may profit from a turnaround if he or she accurately anticipates the improvement of a poorly performing company. at the commercial aircraft segment, a broad-based broad-based Of or relating to an index or average that provides a good representation of the overall market. The S&P 500 and NYSE Composite are generally regarded as broad-based stock indexes, while the popular Dow Jones Industrial Average is biased increase in sales and earnings at the distribution segment and a strong turnaround in the financial results of the business jet segment. --Net loss for the quarter narrowed to $9.3 million or $0.17 per share as compared to a net loss of $19.5 million or $0.53 per share in the prior year. The company recorded debt extinguishment The destruction or cancellation of a right, a power, a contract, or an estate. Extinguishment is sometimes confused with merger, though there is a clear distinction between them. costs in the fourth quarter of $8.8 million, relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the November November: see month. 2004 retirement of $200 million of 9.5 percent senior subordinated Subordinated A claim ranked lower in priority than other claims. Common stock claims are always subordinated to debt. notes. The company's financial results for the quarter were also affected by acquisition related costs of $0.8 million and a $1.3 million negative impact of foreign exchange fluctuations on a sequential One after the other in some consecutive order such as by name or number. and year over year basis. --Bookings for the quarter of $270 million were a record for any quarter in the company's history and were up $105 million or 64 percent as compared with the same period last year. This was B/E's second record quarterly bookings performance during 2004. Backlog at December December: see month. 31, 2004 was in excess of $700 million, also a record level in the company's history, and up over 40% from the December 31, 2003 backlog of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $500 million. "I am very pleased with the progress we made during 2004. The improvement in our business continued to gain momentum throughout the year, and we have successfully converted the R&D investments we have made over the past few years into record bookings and backlog," stated Robert Robert, Henry Martyn 1837-1923. American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876). Noun 1. Khoury Khoury (occasionally Khouri or Coury; Arabic: خوري) is an Arabic surname that is unique to Arab Christians. The term Khoury means "priest" in Arabic. , President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of B/E Aerospace. "The quality of our record backlog of over $700 million, an outstanding suite of new products and requests for quotations in excess of $1.3 billion establishes a very solid foundation for B/E to deliver strong earnings growth in 2005 with accelerating revenue and earnings growth beginning in 2006." FOURTH QUARTER CONSOLIDATED con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: RESULTS For the fourth quarter, consolidated sales were $189.6 million, a 16 percent increase over the fourth quarter of 2003. Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight by segment were as follows:
NET SALES
-------------------------------
Three Months Ended December 31,
($ in millions)
-------------------------------
Percent
2004 2003 Change
-------------------------------
Commercial aircraft $133.5 $123.1 8.4%
Distribution 36.7 25.9 41.7%
Business jet 19.4 14.4 34.7%
-------------------------------
Total $189.6 $163.4 16.0%
The commercial aircraft segment generated an 8.4 percent revenue increase as compared to the prior year, driven by increased sales of seating products and food and beverage F&B is a common abbreviation in the United States and Commonwealth countries, including Hong Kong. F&B is typically the widely accepted abbreviation for "Food and Beverage," which is the sector/industry that specializes in the conceptualization, the making of, and delivery of foods. preparation and refrigeration refrigeration, process for drawing heat from substances to lower their temperature, often for purposes of preservation. Refrigeration in its modern, portable form also depends on insulating materials that are thin yet effective. equipment. The distribution segment delivered strong revenue growth of almost 42 percent, which continues to be driven by market share gains and a broad-based increase in aftermarket Aftermarket See: Secondary market. aftermarket See secondary market. demand for aerospace fasteners fasteners In construction, connectors between structural members. Bolted connections are used when it is necessary to fasten two elements tightly together, especially to resist shear and bending, as in column and beam connections. , arising from increased airline passenger traffic and attendant ATTENDANT. One who owes a duty or service to another, or in some sort depends upon him. Termes de la Ley, h.t. As to attendant terms, see Powell on Morts. Index, tit. Attendant term; Park on Dower, c. 1 7. increases in capacity. In the business jet segment, revenues increased by 34.7 percent over the severely depressed Depressed A description of a market, security, or product that is experiencing weak demand and lowering prices. Notes: A depressed market, security, or product implies that prices and volume are low. There are many reasons for a depressed market, security, or product. sales levels in the same period last year. Operating earnings for the quarter of $16.3 million increased by $15.1 million as compared to the same period last year. The substantial increase in B/E's operating earnings was driven by the continuing turnaround at the commercial aircraft segment, a 41.7% increase in sales at the distribution segment, a strong turnaround at the business jet segment, an improved product mix and significant cost reductions resulting from the company's consolidation program, which was completed in 2003. The company incurred $0.8 million of acquisition related costs during the fourth quarter of 2004. In addition, during the fourth quarter, the dollar weakened weak·en tr. & intr.v. weak·ened, weak·en·ing, weak·ens To make or become weak or weaker. weak  en·er n. significantly versus the British pound and
the euro; the dollar/British pound exchange rate at the beginning of the
quarter was $1.80 versus $1.92 at the end of the quarter. This weakness
adversely impacted the company's fourth quarter operating results
by $1.3 million. B/E is subject to fluctuations in foreign exchange
rates due to significant sales from its European Europeanemanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. facilities, substantially all of which are currently denominated in U.S. dollars, while the corresponding labor, overhead costs overhead costs see fixed costs. and certain of the material costs are denominated in British pounds or euros. The net loss for the fourth quarter was $9.3 million or $0.17 per share, which reflects the $8.8 million of debt extinguishment costs. Exclusive of the debt extinguishment costs, the net loss was $0.5 million, which includes $0.8 million of acquisition related expenses and $1.3 million of costs associated with the weakened U.S. dollar. The $0.5 million adjusted loss compares favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. to the net loss of $19.5 million or $0.53 per share in the same period last year. The following is a summary of the change in operating earnings by segment:
OPERATING EARNINGS
---------------------------------------
Three Months Ended December 31,
($ in millions)
---------------------------------------
Percent
2004 2003 Change Change
---------------------------------------
Commercial aircraft $9.6 $7.1 $2.5 35.2%
Distribution 6.4 4.3 2.1 48.8%
Business jet 0.3 (10.2) 10.5 NM
---------------------------------------
Total $16.3 $1.2 $15.1 1,258.3%
FOURTH QUARTER RESULTS BY SEGMENT Operating earnings at the commercial aircraft segment of $9.6 million increased by $2.5 million or 35.2 percent over the prior year period, on the 8.4 percent increase in revenues, and despite a $1.3 million negative impact from foreign exchange. The substantial improvement in operating results at B/E's commercial aircraft segment was driven by lower costs arising from the company's consolidation program, which was completed in 2003, and an improved mix of products. The distribution segment had a 41.7 percent or $10.8 million year over year increase in revenues, and generated operating earnings of $6.4 million or 17.4 percent of net sales, which was $2.1 million or 48.8 percent greater than operating earnings of $4.3 million or 16.6 percent of net sales in the fourth quarter of 2003. The business jet segment generated revenues of $19.4 million, up 34.7 percent over severely depressed sales of $14.4 million in the fourth quarter of 2003. The increase in revenues reflects both the nascent nascent /nas·cent/ (nas´ent) (na´sent) 1. being born; just coming into existence. 2. just liberated from a chemical combination, and hence more reactive because uncombined. recovery in the business jet industry as well as the unusually low level of new business jet deliveries in the prior year. The business jet segment operated at an approximate ap·prox·i·mate v. To bring together, as cut edges of tissue. adj. 1. Relating to the contact surfaces, either proximal or distal, of two adjacent teeth; proximate. 2. Close together. break-even level of operations during the fourth quarter, a substantial improvement over the prior year's operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of $10.2 million, reflecting the absence of approximately $5.6 million of non-cash charges Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. associated with the company's cost reduction program incurred in the fourth quarter of 2003, the positive impact of higher sales, and better absorption absorption [Lat.,=sucking from], taking of molecules of one substance directly into another substance. It is contrasted with adsorption, in which the molecules adhere only to the surface of the second substance. of fixed overhead costs during the current period. FULL YEAR 2004 RESULTS Net sales by segment were as follows:
NET SALES
------------------------
Year Ended December 31,
($ in millions)
------------------------
Percent
2004 2003 Change
------------------------
Commercial aircraft $514.1 $455.3 12.9%
Distribution 144.2 103.7 39.1%
Business jet 75.2 65.4 15.0%
------------------------
Total $733.5 $624.4 17.5%
Gross profit for the year was $238.7 million or 32.5 percent of sales as compared to gross profit of $170.8 million or 27.4 percent last year. The 510 basis point improvement in gross margin resulted from cost savings associated with B/E's consolidation program, an improved product mix and manufacturing efficiencies realized at the higher level of revenues. The following is a comparison of operating earnings by segment:
OPERATING EARNINGS
-----------------------------------
Year Ended December 31,
($ in millions)
-----------------------------------
Percent
2004 2003 Change Change
-----------------------------------
Commercial aircraft $39.8 $7.3 $32.5 445.2%
Distribution 25.9 16.9 9.0 53.3%
Business jet (1.3) (10.2) 8.9 NM
Divestiture settlement -
net of charges -- 6.3 (6.3) NM
-----------------------------------
Total $64.4 $20.3 $44.1 217.2%
Consolidated operating earnings were $64.4 million in 2004, or 8.8 percent of sales, an increase of $44.1 million or 217 percent on a $109.1 million or 17.5 percent increase in revenues. The substantial increase in operating earnings was driven by the strong turnaround at B/E's commercial aircraft segment combined with a broad-based increase in sales and earnings at the distribution segment and, importantly, significant cost reductions resulting from B/E's consolidation program, which was completed during 2003. The weakened dollar negatively impacted operating earnings by $7.0 million during 2004, while acquisition related expenses were $1.7 million. For the full year 2004, B/E's consolidated net loss was $22.0 million or $0.53 per share, reflecting the $8.8 million charge related to the early retirement of long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. , a $7.0 million negative impact of foreign exchange, $1.7 million of acquisition related expenses and a $5.5 million increase in interest expense, as compared with a net loss of $53.5 million or $1.49 per share last year. Excluding the $8.8 million debt extinguishment charge, the adjusted 2004 net loss of $13.2 million compares favorably to last year's $53.5 million loss. RECENT EQUITY OFFERING, DEBT PREPAYMENT Prepayment 1. The payment of a debt obligation prior to its due date. 2. The excess payment over a scheduled debt repayment amount. Notes: 1. Examples include deferred expenses such as rent and early loan repayments. 2. , LIQUIDITY AND CASH FLOW MEASURES At December 31, 2004, B/E's cash balance was $76.3 million, as compared to a cash balance of $147.6 million in the prior year. The $71.3 million year-over-year decrease in cash was primarily related to the early retirement of long-term debt ($50 million) and a $17.2 million increase in net working capital. Two minor acquisitions ($12 million) and capital expenditures ($14 million) were financed via cash from operations. In October October: see month. 2004, the company successfully raised $156 million in cash from the sale of 18.4 million shares of common stock. In November 2004, the company used the proceeds from this offering along with approximately $50 million of cash to retire retire v. 1) to stop working at one's occupation. 2) to pay off a promissory note, and thus "retire" the loan. 3) for a jury to go into the jury room to decide on a verdict after all evidence, argument and jury instructions have been completed. its 9.5 percent senior subordinated notes due in 2008, incurring in·cur tr.v. in·curred, in·cur·ring, in·curs 1. To acquire or come into (something usually undesirable); sustain: incurred substantial losses during the stock market crash. 2. $8.8 million of debt extinguishment costs. These transactions substantially improved the company's net debt-to-capital ratio, which decreased from nearly 97 percent at September September: see month. 30, 2004 to 77 percent at year end, and will reduce ongoing interest expense by approximately $19 million annually. At December 31, 2004, there were no bank borrowings outstanding and no principal payments are due on the company's long-term debt until 2008. Depreciation and amortization for the three months ended December 31, 2004 and 2003 were $7.4 million and $6.9 million, respectively; such amounts for the years ended December 31, 2004 and 2003 were $28.4 million and $28.3 million, respectively. Capital expenditures for the three months ended December 31, 2004 and 2003 were $3.8 million and $2.4 million, respectively; such amounts for the years ended December 31, 2004 and 2003 were $14.5 million and $11.2 million, respectively. RECENT PROGRAM WINS BOLSTER This article is about the pillow called a bolster. For other meanings of the word "bolster", see bolster (disambiguation). A bolster (etymology: Middle English, derived from Old English, and before that the Germanic word bulgstraz OUTLOOK Bookings for the quarter of $270 million were $105 million or 64 percent greater than the prior year, and represent the strongest quarterly bookings in the company's history. Backlog at December 31, 2004 was in excess of $700 million, over 40 percent above the December 31, 2003 backlog of approximately $500 million, despite a 17.5 percent year over year increase in sales. During the fourth quarter of 2004, B/E was awarded MiniPod(TM) lie-flat business class seating programs, valued at over $175 million, by four major international airlines, and also won a fifth super first class award valued at up to $50 million. "The combined initial value of these five awards, together with program awards for our food and beverage preparation and storage equipment were the principal drivers for the record bookings. Our investments in new product development over the past several years are now beginning to convert into record bookings and backlog," said Mr. Khoury. B/E's MiniPod suite of lie flat seats has been selected by 13 major international airlines in programs valued at over $380 million, while its Spectrum(TM) coach platform has now been selected by over 45 customers. The newly developed super first class product offerings developed by B/E's business jet segment have been selected by five international airlines in programs initially valued at approximately $250 million. The company's Endura Endura may refer to:
"The major Asian, Middle Eastern and European airlines generate approximately 64 percent of global air traffic, have healthy balance sheets, ample liquidity and have generated solid profits on a recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. basis. These airlines have large international fleets of wide-body aircraft and have begun the process of ordering state-of-the-art cabin interior products for both their new buy wide-body aircraft and for their existing fleets of wide-body aircraft. The composition of our backlog has changed significantly as the non-U non-U adj. Chiefly British Not characteristic of the upper class, especially in language usage. [non- + U2. .S. airlines have continued to invest in new interiors while the majority of their U.S. counterparts, whose domestic routes represent only 24 percent of global air traffic, have not yet begun to launch similar programs. At December 31, 2004 less than 10 percent of our backlog was with U.S. airlines," Mr. Khoury continued. Mr. Khoury added, "Requests for quotations (RFQ RFQ Request For Quote RFQ Request For Quotation RFQ Request for Qualifications (part of a potential client's preliminary selection process) RFQ Radio Frequency Quadrupole (accelerator technology) ) have remained very robust, averaging in excess of $1.3 billion over the past six months. Given these market conditions, our leading market positions and our outstanding suite of leading-edge cabin interior products, we remain confident in our ability to generate double-digit dou·ble-dig·it adj. Being between 10 and 99 percent: double-digit inflation. backlog growth during 2005. The company expects to report strong 2005 quarterly earnings comparisons, driven by expanding margins, due to additional productivity gains and substantially improved product mix, reflecting the quality of the company's backlog. Our record bookings and backlog establish the foundation for accelerating revenue and earnings growth in 2006, as these orders begin to deliver in volume; however, revenue growth in 2005 is expected to be modest, since much of our strong Airbus A380 backlog does not begin to deliver until 2006." FINANCIAL GUIDANCE FOR 2005 AND 2006 Financial guidance for 2005 and 2006 is as follows: --For the full year 2005, management expects approximately 6 percent revenue growth, approximately a 45 percent increase in operating earnings driven by additional margin expansion, full year EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. of approximately $0.50 per share, and to generate double-digit backlog growth. --For 2006, management expects strong double-digit revenue growth and to report EPS of approximately $1.00 per share for the full year. Orders are expected to be strong in 2006 consistent with the new aircraft delivery cycle. B/E Aerospace, Inc. is the world's leading manufacturer of aircraft cabin An aircraft cabin is the section of an aircraft in which passengers travel, often just called the cabin. At cruising altitudes, the surrounding atmosphere is too thin to breathe without an oxygen mask, so cabin pressurization adapts the cabin to atmospheric pressures. interior products, and a leading aftermarket distributor of aerospace fasteners. B/E designs, develops and manufactures a broad range of products for both commercial aircraft and business jets. B/E manufactured products include seating, lighting, oxygen and food and beverage preparation and storage equipment. The Company also provides cabin interior design, reconfiguration and passenger-to-freighter conversion services. Products for the existing aircraft fleet -- the aftermarket -- generate about 60 percent of sales. B/E sells its products through its own global direct sales organization. For more information, visit B/E's website at http://www.beaerospace.com. This news release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements involve risks and uncertainties. B/E's actual experience may differ materially from that anticipated in such statements. Factors that might cause such a difference include those discussed in B/E's filings with the Securities and Exchange Commission, including but not limited to its most recent proxy statement Proxy Statement A document containing the information that a company is required by the SEC to provide to shareholders so they can make informed decisions about matters that will be brought up at an annual stockholder meeting. , Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. and Form 10-Q Form 10-Q See 10-Q. . For more information, see the section entitled en·ti·tle tr.v. en·ti·tled, en·ti·tling, en·ti·tles 1. To give a name or title to. 2. To furnish with a right or claim to something: "Forward-Looking Statements" contained in B/E's Form 10-K and in other filings.
B/E Aerospace, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
THREE MONTHS ENDED
-----------------------------
December 31, December 31,
(In millions, except per share data) 2004 2003
----------------------------------------------------------------------
Net sales $189.6 $163.4
Cost of sales 126.4 123.9
------- -------
Gross profit 63.2 39.5
Gross margin 33.3% 24.2%
Operating expenses:
Selling, general and administrative 30.8 26.1
Research, development and engineering 16.1 12.2
------- -------
Total operating expenses 46.9 38.3
------- -------
Operating earnings 16.3 1.2
Operating margin 8.6% 0.7%
Interest expense, net 16.7 19.7
Loss on debt extinguishment 8.8 1.2
------- -------
Loss before income taxes (9.2) (19.7)
Income taxes (benefit) 0.1 (0.2)
------- -------
NET LOSS $(9.3) $(19.5)
======= =======
NET LOSS PER COMMON SHARE $(0.17) $(0.53)
======= =======
Common shares:
Weighted average 55.2 36.6
End of period 56.6 36.7
B/E Aerospace, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
YEAR ENDED
----------------------------------------------------------------------
(In millions, except per share data) December 31, December 31,
2004 2003
----------------------------------------------------------------------
Net sales $733.5 $624.4
Cost of sales 494.8 453.6
------- -------
Gross profit 238.7 170.8
Gross margin 32.5% 27.4%
Operating expenses:
Selling, general and administrative 119.2 105.8
Research, development and engineering 55.1 44.7
------- -------
Total operating expenses 174.3 150.5
------- -------
Operating earnings 64.4 20.3
Operating margin 8.8% 3.3%
Interest expense, net 76.1 70.6
Loss on debt extinguishment 8.8 1.2
------- -------
Loss before income taxes (20.5) (51.5)
Income taxes 1.5 2.0
------- -------
NET LOSS $(22.0) $(53.5)
======= =======
NET LOSS PER COMMON SHARE $(0.53) $(1.49)
======= =======
Common shares:
Weighted average 41.7 36.0
End of period 56.6 36.7
B/E Aerospace, Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited; in millions)
DECEMBER 31, DECEMBER 31,
2004 2003
------------ ------------
ASSETS
Current assets:
Cash and cash equivalents $76.3 $147.6
Accounts receivable, net 91.6 80.3
Inventories, net 197.8 168.7
Other current assets 13.4 10.6
---------- ----------
Total current assets 379.1 407.2
Long-term assets 645.7 645.3
---------- ----------
$1,024.8 $1,052.5
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Total current liabilities $154.1 $132.9
Long-term liabilities 687.9 887.7
---------- ----------
842.0 1,020.6
Total stockholders' equity 182.8 31.9
---------- ----------
$1,024.8 $1,052.5
========== ==========
B/E Aerospace, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited; in millions)
YEAR ENDED
-----------------------------------
DECEMBER 31, DECEMBER 31,
2004 2003
-----------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $(22.0) $(53.5)
Adjustments to reconcile net
loss to net cash flows provided
by (used in) operating activities:
Depreciation and amortization 28.4 28.3
Non-cash employee benefit
plan contributions 2.3 2.2
Loss on disposal of
property and equipment -- 1.6
Loss on debt extinguishment 8.8 1.2
Impairment of inventories -- 8.4
Changes in operating assets and
liabilities, net of acquisitions (17.2) (13.7)
-------- --------
Net cash flows provided by
(used in) operating activities 0.3 (25.5)
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures (14.5) (11.2)
Proceeds from sales of property
and equipment 0.5 4.2
Acquisitions, net of cash acquired (12.5) (2.7)
Other, net (0.3) (0.9)
-------- --------
Net cash flows used in
investing activities (26.8) (10.6)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayments of bank credit facility -- (144.0)
Proceeds from issuance of stock,
net of expenses 162.3 1.4
Payment of debt origination costs
and repayment costs (6.3) (6.1)
Principal payments on long-term
debt (202.0) (2.3)
Proceeds from long-term debt -- 175.0
-------- --------
Net cash flows (used in) provided
by financing activities (46.0) 24.0
-------- --------
Effect of exchange rate changes
on cash flows 1.2 2.8
-------- --------
Net decrease in cash and
cash equivalents (71.3) (9.3)
Cash and cash equivalents at
beginning of year 147.6 156.9
-------- --------
Cash and cash equivalents at
end of year $76.3 $147.6
======== ========
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