Exhibit 99.1
Hexcel Reports 2004 Second Quarter Results
STAMFORD, Conn.--(BUSINESS WIRE)--July 21, 2004--Hexcel
Corporation (NYSE/PCX: HXL)
Highlights:
-- Net sales up 16% to $272.2 million compared to the second
quarter of 2003.
-- Operating income improves by 46% to $27.4 million compared to
the second quarter of 2003, above 10% of sales for the first
time since 1998.
-- Net income of $8.8 million for the quarter, up 83% from last
year.
-- Total debt, net of cash, decreases by $23.5 million to $422.8
million.
Unaudited Unaudited
----------------------------
Quarter Six Months
Ended Ended
June 30, June 30,
----------------------------
(In millions, except per share data) 2004 2003 2004 2003
- ----------------------------------------------------------------------
Net sales $272.2 $234.1 $535.0 $462.7
Gross margin % 22.6% 20.3% 21.7% 20.2%
Operating income $27.4 $18.8 $51.1 $36.0
Operating income % 10.1% 8.0% 9.6% 7.8%
Other income (expense), net $(2.0) $3.2 $(2.1) $(0.8)
Provision for income taxes (a) $5.2 $2.9 $8.6 $5.2
Equity in earnings (losses) of affiliated
companies $0.5 $(0.4) $0.8 $(0.8)
Net income $8.8 $4.8 $16.9 $1.6
Deemed preferred dividends and accretion $(3.1) $(3.0) $(6.2) $(3.5)
Net income (loss) available to common
shareholders $5.7 $1.8 $10.7 $(1.9)
Diluted net income (loss) per common share $0.10 $0.05 $0.19 $(0.05)
- ----------------------------------------------------------------------
(a) The Company's tax provision primarily reflects taxes on foreign
income. The Company will continue to adjust its tax provision rate
through the establishment, or release, of a non-cash valuation
allowance attributable to currently generated U.S. and Belgian net
operating income (losses) until such time as the U.S. and Belgian
operations, respectively, generate income in future years to
utilize the net operating losses in full.
Constant Currency
To assist in the interpretation of the Company's net sales trend,
the value of total net sales and sales by market for the second
quarter and first six months of 2004, as disclosed in this news
release, has been estimated using the same U.S. dollar, British pound
and Euro exchange rates as applied for the comparable periods in 2003.
Such estimated net sales are titled "constant currency" in this news
release. Actual sales by market segment are provided in Table A
attached.
Hexcel Corporation (NYSE/PCX: HXL) today reported results for the
second quarter of 2004. Net sales for the second quarter of 2004 were
$272.2 million as compared to $234.1 million for the second quarter of
2003. In constant currency, revenues for the second quarter of 2004
were $267.2 million, or 14.1%, higher than the second quarter of 2003.
Operating income for the second quarter of 2004 was $27.4 million
compared to $18.8 million for the same quarter last year. Depreciation
expense for the quarter at $13.2 million was $0.3 million higher than
the prior year, while business consolidation and restructuring
expenses were $0.9 million compared to $0.7 million in the second
quarter of 2003.
Net income for the quarter was $8.8 million compared to $4.8
million for the same quarter of 2003. After reflecting deemed
preferred dividends and accretion, net income available to common
shareholders for the quarter was $5.7 million, or $0.10 per diluted
common share, compared to net income of $1.8 million, or $0.05 per
diluted common share, for the second quarter of 2003.
Chief Executive Officer Comments
Commenting on the quarter's results, Mr. David E. Berges,
Chairman, Chief Executive Officer and President, said, "In the second
quarter, we again demonstrated the earnings leverage we can obtain
from higher sales revenues. Compared to the same period last year,
operating income increased by $8.6 million on a revenue gain of $38.1
million and reached 10% of sales for the first time since the third
quarter of 1998. Diluted earnings per share were $0.10 for the quarter
reflecting not only our improved operating performance, but also lower
interest expense and a net $0.9 million increase in equity in earnings
due to the improving performance by our joint ventures."
Mr. Berges observed, "Year-on-year revenue growth was again led by
sales of ballistic reinforcement fabrics used in the manufacture of
soft body armor. During the quarter, the Company's major customers
received additional contract awards from the U.S. government. The
supply chain for these materials is now capacity limited, but the
significant order backlog held by the Company's customers suggests
that strong production levels will continue for some time. We also had
good revenue gains from commercial aerospace, space & defense, wind
energy and electronics."
Mr. Berges concluded, "With many of our markets on a growth track,
we now expect our revenues to marginally exceed the high end of our $1
billion revenue guidance for 2004 and believe we are clearly on target
to generate net income for the year."
Revenue Trends
As in recent quarters, the year-over-year shift in foreign
exchange rates has continued to increase revenues compared to prior
period actual results. To provide a better understanding of the real
underlying trends, we have again provided constant currency revenues
in our discussion of revenue trends by market. Actual sales by market
segment are provided in Table A.
In constant currency, Commercial Aerospace revenues were $112.9
million for the second quarter of 2004, an increase of $11.5 million,
or 11.3%, over the revenues in the same quarter of 2003. The
year-on-year increase reflects the stabilization in aircraft build
rates, a favorable change in mix of aircraft, and the benefit of the
new Airbus A380 program.
Industrial market revenues for the quarter in constant currency
were $90.6 million, an increase of $19.2 million, or 26.9%, compared
to revenues of $71.4 million in the second quarter of 2003. The
largest portion of this revenue increase came from sales of
reinforcement fabrics used in military soft body armor applications.
Ballistic revenues were up sharply compared to both the second
quarter, 2003 and the first quarter, 2004. Sales to wind energy
applications also increased year-on-year, and are expected to continue
to contribute growth in the future.
Space & Defense revenues in constant currency of $48.4 million
were up $0.6 million, or 1.3%, from the second quarter of 2003,
despite the termination of the Comanche program that contributed $4.0
million of revenue to the same quarter last year. Year-on-year growth
continued to be driven by increased production of the F-22 Raptor, and
higher demand for many U.S. and European helicopter and blade
replacement programs.
Electronics revenues for the quarter in constant currency were
$15.3 million compared to the 2003 second quarter revenues of $13.5
million. As noted in previous releases, the Company's electronics
product mix continues to shift towards higher-end applications. This
focus on advanced technology materials and specialty applications,
together with some recovery in industry demand, is contributing to
enhanced performance in this market.
Other Income/Expense
Other expense was $2.0 million for the second quarter of 2004, as
the Company recognized a loss on the early retirement of debt and
recorded an accrual for certain legal matters. These expenses were
partially offset by gains attributable to the sale of securities
obtained through a de-mutualization of an insurance company and the
sale of surplus land at one of its U.S. plants.
In the second quarter of 2003, the Company recognized other income
of $3.2 million due to a gain on the sale of certain assets and a gain
resulting from the expiration of a contingent liability resulting from
the prior sale of a business.
Debt
Total debt, net of cash, decreased in the quarter by $23.5 million
to $422.8 million as of June 30, 2004. During the quarter, the Company
received $6.5 million in net proceeds from the sale of surplus land
and collected $1.5 million of dividends from an affiliated company,
contributing to this net debt reduction. The Company used some of its
excess cash on hand to repurchase $11.8 million principal amount of
its 9.75% senior subordinated notes, due 2009 (see Table E for the
components of net debt).
Interest expense during the quarter was $11.9 million compared to
$13.9 million in the second quarter of 2003. The decline in interest
expense reflects the substantial reduction in total debt during 2003
and continued reductions during the first six months of 2004 (see
Table C for details of the components of interest expense).
The non-cash deemed preferred dividends and accretion expense
relating to the mandatorily redeemable convertible preferred stock was
$3.1 million and $3.0 million for the second quarter 2004 and 2003,
respectively.
Hexcel will host a conference call at 11:00 A.M. EDT, tomorrow,
Thursday, July 22, 2004 to discuss the first quarter results and
respond to questions. The telephone number for the conference call is
(913) 981-5571 and the confirmation code is 277376. The call will be
simultaneously hosted on Hexcel's web site at
www.hexcel.com/investors/index.html. Replays of the call will be
available on the web site for approximately seven days.
Hexcel Corporation is a leading advanced structural materials
company. It develops, manufactures and markets lightweight,
high-performance reinforcement products, composite materials and
composite structures for use in commercial aerospace, space and
defense, electronics, and industrial applications.
Disclaimer on Forward-Looking Statements
This press release contains statements that are forward-looking,
including statements relating to market conditions (including
commercial and military aircraft build rates and demand for
electronics and industrial products), future sales volumes,
manufacturing productivity, gross margin performance, operating
income, equity in losses of affiliated companies, working capital
management, interest expense and capital expenditure levels. 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 changing market conditions, increased competition,
product mix, inability to achieve planned manufacturing improvements,
conditions in the financial markets and changes in currency exchange
rates. Additional risk factors are described in the Company's filings
with the SEC. The Company does not undertake an obligation to update
its forward-looking statements to reflect future events.
Hexcel Corporation and Subsidiaries
Condensed Consolidated Statements of
Operations
- ----------------------------------------------------------------------
Unaudited
-----------------------------
Quarter Six Months
Ended Ended
June 30, June 30,
(In millions, except per share data) 2004 2003 2004 2003
- ----------------------------------------------------------------------
Net sales $272.2 $234.1 $535.0 $462.7
Cost of sales 210.7 186.5 418.9 369.1
- ----------------------------------------------------------------------
Gross margin 61.5 47.6 116.1 93.6
Selling, general and administrative
expenses 28.2 23.8 53.7 47.6
Research and technology expenses 5.0 4.3 9.9 8.6
Business consolidation and restructuring
expenses 0.9 0.7 1.4 1.4
- ----------------------------------------------------------------------
Operating income 27.4 18.8 51.1 36.0
Interest expense 11.9 13.9 24.3 27.6
Other income (expense), net (2.0) 3.2 (2.1) (0.8)
- ----------------------------------------------------------------------
Income before income taxes 13.5 8.1 24.7 7.6
Provision for income taxes 5.2 2.9 8.6 5.2
- ----------------------------------------------------------------------
Income before equity in earnings
(losses) 8.3 5.2 16.1 2.4
Equity in earnings (losses) of affiliated
companies 0.5 (0.4) 0.8 (0.8)
- ----------------------------------------------------------------------
Net income 8.8 4.8 16.9 1.6
Deemed preferred dividends and accretion (3.1) (3.0) (6.2) (3.5)
- ----------------------------------------------------------------------
Net income (loss) available to common
shareholders $ 5.7 $ 1.8 $ 10.7 $ (1.9)
- ----------------------------------------------------------------------
Net income (loss) per common share (a):
Basic $ 0.14 $ 0.05 $ 0.27 $(0.05)
Diluted $ 0.10 $ 0.05 $ 0.19 $(0.05)
Weighted-average common shares outstanding (a):
Basic 39.2 38.6 39.0 38.6
Diluted 91.3 39.3 91.2 38.6
- ----------------------------------------------------------------------
(a) Refer to Table D for further information relating to the
computations of basic and diluted net income (loss) per common
share.
Hexcel Corporation and Subsidiaries
Condensed Consolidated Balance Sheets
- ----------------------------------------------------------------------
Unaudited
------------------------
June March December
30, 31, 31,
(In millions, except per share data) 2004 2004 2003
- ----------------------------------------------------------------------
Assets
Current assets:
Cash and cash equivalents $ 45.1 $ 24.0 $ 41.7
Accounts receivable, net 156.6 144.8 126.2
Inventories, net 134.2 130.4 120.5
Prepaid expenses and other current assets 16.0 18.5 16.2
- ----------------------------------------------------------------------
Total current assets 351.9 317.7 304.6
Property, plant and equipment 686.4 683.7 688.0
Less accumulated depreciation (413.1) (401.6) (394.1)
- ----------------------------------------------------------------------
Net property, plant and equipment 273.3 282.1 293.9
Goodwill 76.3 76.4 76.9
Investments in affiliated companies 6.7 7.7 7.4
Other assets 35.8 39.2 39.9
- ----------------------------------------------------------------------
Total assets $ 744.0 $ 723.1 $ 722.7
- ----------------------------------------------------------------------
Liabilities and Stockholders' Equity (Deficit)
Current liabilities:
Notes payable and current maturities of
capital lease obligations $ 1.0 $ 0.5 $ 2.1
Accounts payable 81.4 81.5 64.1
Accrued liabilities 108.1 92.7 97.7
- ----------------------------------------------------------------------
Total current liabilities 190.5 174.7 163.9
Long-term notes payable and capital lease
obligations 465.1 469.8 481.3
Other non-current liabilities 65.4 63.6 64.9
- ----------------------------------------------------------------------
Total liabilities 721.0 708.1 710.1
Mandatorily redeemable convertible preferred
stock, 0.125 shares of series A and 0.125
shares of series B authorized, issued and
outstanding 112.2 109.1 106.0
Stockholders' equity (deficit):
Preferred stock, no par value, 20.0 shares of
stock authorized, no shares issued or
outstanding - - -
Common stock, $0.01 par value, 200.0 shares of
stock authorized, and 40.0 shares issued 0.4 0.4 0.4
Additional paid-in capital 301.0 301.5 303.5
Accumulated deficit (375.7) (384.5) (392.6)
Accumulated other comprehensive income (loss) (0.9) 2.5 8.8
- ----------------------------------------------------------------------
(75.2) (80.1) (79.9)
Less - Treasury stock, at cost, 1.4 shares at
June 30, 2004 and March 31, 2004 and 1.3
shares at December 31, 2003 (14.0) (14.0) (13.5)
- ----------------------------------------------------------------------
Total stockholders' equity (deficit) (89.2) (94.1) (93.4)
- ----------------------------------------------------------------------
Total liabilities and stockholders' equity
(deficit) $ 744.0 $ 723.1 $ 722.7
- ----------------------------------------------------------------------
Total debt, net of cash $ 422.8 $ 446.3 $ 441.7
- ----------------------------------------------------------------------
Hexcel Corporation and Subsidiaries
Condensed Consolidated Statements of
Cash Flows
- ----------------------------------------------------------------------
Unaudited
------------------------------
Quarter Six Months
Ended Ended
June 30, June 30,
(In millions) 2004 2003 2004 2003
- ----------------------------------------------------------------------
Cash flows from operating activities
Net income $ 8.8 $ 4.8 $ 16.9 $ 1.6
Reconciliation to net cash provided
by operating activities:
Depreciation 13.2 12.9 26.5 25.4
Amortization of debt discount and
deferred financing costs 0.8 0.8 1.7 1.8
Deferred income taxes (benefit) 0.1 1.0 (0.1) 1.2
Business consolidation and
restructuring expenses 0.9 0.7 1.4 1.4
Business consolidation and
restructuring payments (1.3) (2.7) (2.8) (5.5)
Equity in (earnings) losses of
affiliated companies (0.5) 0.4 (0.8) 0.8
Working capital changes and other (8.1) 5.1 (26.2) (16.3)
- ----------------------------------------------------------------------
Net cash provided by operating
activities 13.9 23.0 16.6 10.4
- ----------------------------------------------------------------------
Cash flows from investing activities
Capital expenditures (7.3) (4.7) (11.8) (7.0)
Proceeds from the sale of assets 6.5 3.0 6.5 3.0
Dividends from an affiliated company 1.5 1.0 1.5 1.0
- ----------------------------------------------------------------------
Net cash provided by (used for)
investing activities 0.7 (0.7) (3.8) (3.0)
- ----------------------------------------------------------------------
Cash flows from financing activities
Proceeds from (repayments of) senior
secured credit facilities, net 11.2 (3.8) 7.8 8.2
Proceeds from issuance of 9-7/8%
senior secured notes, net of discount - - - 123.7
Repayments of senior credit facility,
net - - - (179.7)
Redemption of 7% convertible
subordinated notes - - - (46.9)
Redemption of 9.75% senior
subordinated notes (12.4) - (22.9) -
Proceeds from (repayments of) capital
lease obligations and other debt,
net 0.6 (1.4) (1.2) (0.4)
Proceeds from issuance of mandatorily
redeemable convertible preferred stock - - - 125.0
Issuance costs related to debt and
equity offerings - - - (14.1)
Activity under stock plans 2.3 - 1.9 0.1
- ----------------------------------------------------------------------
Net cash provided by (used for)
financing activities 1.7 (5.2) (14.4) 15.9
- ----------------------------------------------------------------------
Effect of exchange rate changes on cash
and cash equivalents 4.8 (0.3) 5.0 (1.6)
- ----------------------------------------------------------------------
Net increase in cash and cash
equivalents 21.1 16.8 3.4 21.7
Cash and cash equivalents at beginning
of period 24.0 13.1 41.7 8.2
- ----------------------------------------------------------------------
Cash and cash equivalents at end of
period $ 45.1 $ 29.9 $ 45.1 $ 29.9
- ----------------------------------------------------------------------
Supplemental Data:
Cash interest paid $ 7.2 $ 1.3 $ 24.4 $ 25.8
Cash taxes paid $ 2.7 $ 2.8 $ 6.1 $ 5.6
- ----------------------------------------------------------------------
Hexcel Corporation and Subsidiaries
Net Sales to Third-Party Customers by Product Group and Market Segment
Table A
- ----------------------------------------------------------------------
Unaudited
----------------------------------------------------
Commercial Space &
(In millions) Aerospace Industrial Defense Electronics Total
- ----------------- ---------- ---------- -------- ----------- --------
Second Quarter
2004 Net Sales
Reinforcements $ 15.9 $ 53.5 $ - $ 15.5 $ 84.9
Composites 83.6 39.1 47.0 - 169.7
Structures 15.1 - 2.5 - 17.6
- ----------------- ---------- ---------- -------- ----------- --------
Total $ 114.6 $ 92.6 $ 49.5 $ 15.5 $ 272.2
42% 34% 18% 6% 100%
- ----------------- ---------- ---------- -------- ----------- --------
First Quarter
2004 Net Sales
Reinforcements $ 14.9 $ 43.4 $ - $ 15.8 $ 74.1
Composites 80.5 41.5 49.1 - 171.1
Structures 15.1 - 2.5 - 17.6
- ----------------- ---------- ---------- -------- ----------- --------
Total $ 110.5 $ 84.9 $ 51.6 $ 15.8 $ 262.8
42% 32% 20% 6% 100%
- ----------------- ---------- ---------- -------- ----------- --------
Second Quarter
2003 Net Sales
Reinforcements $ 13.3 $ 34.4 $ - $ 13.5 $ 61.2
Composites 72.3 37.0 44.9 - 154.2
Structures 15.8 - 2.9 - 18.7
- ----------------- ---------- ---------- -------- ----------- --------
Total $ 101.4 $ 71.4 $ 47.8 $ 13.5 $ 234.1
43% 31% 20% 6% 100%
- ----------------- ---------- ---------- -------- ----------- --------
First Six Months
2004 Net Sales
Reinforcements $ 30.8 $ 96.9 $ - $ 31.3 $ 159.0
Composites 164.1 80.6 96.1 - 340.8
Structures 30.2 - 5.0 - 35.2
- ----------------- ---------- ---------- -------- ----------- --------
Total $ 225.1 $ 177.5 $ 101.1 $ 31.3 $ 535.0
42% 33% 19% 6% 100%
- ----------------- ---------- ---------- -------- ----------- --------
First Six Months
2003 Net Sales
Reinforcements $ 26.8 $ 64.2 $ - $ 28.1 $ 119.1
Composites 146.5 74.0 81.2 - 301.7
Structures 34.0 - 7.9 - 41.9
- ----------------- ---------- ---------- -------- ----------- --------
Total $ 207.3 $ 138.2 $ 89.1 $ 28.1 $ 462.7
46% 30% 17% 7% 100%
- ----------------- ---------- ---------- -------- ----------- --------
Hexcel Corporation and Subsidiaries
Segment Data
Table B
- ----------------------------------------------------------------------
Unaudited
----------------------------------------------------
(In millions) Corporate
Reinforcements Composites Structures & Other(a) Total
- ------------- -------------- ---------- ---------- --------- ---------
Second
Quarter 2004
- ------------- --------------------------------------------------------
Net sales to
external
customers $ 84.9 $ 169.7 $ 17.6 $ - $ 272.2
Intersegment
sales 26.9 4.4 - - 31.3
- -------------- ------------- ---------- ---------- --------- ---------
Total sales 111.8 174.1 17.6 - 303.5
Operating income
(loss) 13.0 23.2 0.8 (9.6) 27.4
Depreciation 4.2 8.5 0.5 - 13.2
Business
consolidation
and
restructuring
expenses 0.3 0.6 - - 0.9
Capital
expenditures 2.1 4.2 0.1 0.9 7.3
- -------------- ------------- ---------- ---------- --------- ---------
First Quarter
2004
- -------------- -------------------------------------------------------
Net sales to
external
customers $ 74.1 $ 171.1 $ 17.6 $ - $ 262.8
Intersegment
sales 26.4 4.6 - - 31.0
- -------------- ------------- ---------- ---------- --------- ---------
Total sales 100.5 175.7 17.6 - 293.8
Operating income
(loss) 7.6 22.6 0.5 (7.0) 23.7
Depreciation 4.2 8.6 0.5 - 13.3
Business
consolidation
and
restructuring
expenses 0.2 0.4 - (0.1) 0.5
Capital
expenditures 1.5 3.0 - - 4.5
- -------------- ------------- ---------- ---------- --------- ---------
Second Quarter
2003
- -------------- -------------------------------------------------------
Net sales to
external
customers $ 61.2 $ 154.2 $ 18.7 $ - $ 234.1
Intersegment
sales 21.2 4.0 - - 25.2
- -------------- ------------- ---------- ---------- --------- ---------
Total sales 82.4 158.2 18.7 - 259.3
Operating income
(loss) 5.7 20.2 (0.2) (6.9) 18.8
Depreciation 4.1 8.3 0.5 - 12.9
Business
consolidation
and
restructuring
expenses 0.1 0.5 0.1 - 0.7
Capital
expenditures 1.4 3.2 0.1 - 4.7
- -------------- ------------- ---------- ---------- --------- ---------
First Six Months
2004
- ----------------------------------------------------------------------
Net sales to
external
customers $ 159.0 $ 340.8 $ 35.2 $ - $ 535.0
Intersegment
sales 53.3 9.0 - - 62.3
- -------------- ------------- ---------- ---------- --------- ---------
Total sales 212.3 349.8 35.2 - 597.3
Operating income
(loss) 20.6 45.8 1.3 (16.6) 51.1
Depreciation 8.4 17.1 1.0 - 26.5
Business
consolidation
and
restructuring
expenses 0.5 1.0 - (0.1) 1.4
Capital
expenditures 3.6 7.2 0.1 0.9 11.8
- ----------------- ---------- ---------- ---------- --------- ---------
First Six Months
2003
- ----------------------------------------------------------------------
Net sales to
external
customers $ 119.1 $ 301.7 $ 41.9 $ - $ 462.7
Intersegment
sales 44.2 9.3 - - 53.5
- -------------- ------------- ---------- ---------- --------- ---------
Total sales 163.3 311.0 41.9 - 516.2
Operating income
(loss) 9.6 39.0 1.0 (13.6) 36.0
Depreciation 8.4 15.9 1.1 - 25.4
Business
consolidation
and
restructuring
expenses 0.2 1.1 0.1 - 1.4
Capital
expenditures 2.7 4.2 0.1 - 7.0
- -------------- ------------- ---------- ---------- --------- ---------
(a) The Company does not allocate corporate expenses to its business
segments.
Hexcel Corporation and Subsidiaries
Schedule of Interest Expense
Table C
- ----------------------------------------------------------------------
Unaudited
------------------------------------------
Quarter Ended Six Months Ended
June 30, June 30,
(In millions) 2004 2003 2004 2003
- ----------------------------------------------------------------------
Interest on debt
instruments $ 10.8 $ 12.7 $ 21.9 $ 24.9
Banking, commitment
and other fees 0.3 0.4 0.7 0.9
Amortization of financing
costs and discounts
(non-cash) 0.8 0.8 1.7 1.8
- ----------------------------------------------------------------------
Interest Expense $ 11.9 $ 13.9 $ 24.3 $ 27.6
- ----------------------------------------------------------------------
Hexcel Corporation and Subsidiaries
Schedule of Net Income (Loss)
Per Common Share (a)
Table D
- ----------------------------------------------------------------------
Unaudited
------------------------------------------
Quarter Ended Six Months Ended
(In millions, except June 30, June 30,
per share data) 2004 2003 2004 2003
- ----------------------------------------------------------------------
Basic net income (loss)
per common share:
Net income (loss) $ 8.8 $ 4.8 $ 16.9 $ 1.6
Deemed preferred
dividends and accretion (3.1) (3.0) (6.2) (3.5)
- ----------------------------------------------------------------------
Net income (loss) available
to common shareholders $ 5.7 $ 1.8 $ 10.7 $ (1.9)
- ----------------------------------------------------------------------
Weighted average common shares
outstanding 39.2 38.6 39.0 38.6
Basic net income (loss)
per common share $ 0.14 $ 0.05 $ 0.27 $ (0.05)
- ----------------------------------------------------------------------
Diluted net income (loss)
per common share:
Net income (loss) $ 8.8 $ 4.8 $ 16.9 $ 1.6
Deemed preferred
dividends and accretion (3.1) (3.0) (6.2) (3.5)
- ----------------------------------------------------------------------
Net income (loss) available
to common shareholders $ 5.7 $ 1.8 $ 10.7 $ (1.9)
Plus: Deemed preferred
dividends and accretion 3.1 - 6.2 -
- ----------------------------------------------------------------------
Net income (loss) available
to common shareholders plus
assumed conversions $ 8.8 $ 1.8 $ 16.9 $ (1.9)
- ----------------------------------------------------------------------
Weighted average common shares
outstanding - Basic 39.2 38.6 39.0 38.6
Plus incremental shares
from assumed conversions:
Restricted stock units 0.4 0.2 0.4 -
Stock options 1.9 0.5 2.0 -
Convertible preferred
stock 49.8 - 49.8 -
- ----------------------------------------------------------------------
Weighted average common shares
outstanding - Dilutive 91.3 39.3 91.2 38.6
- ----------------------------------------------------------------------
Diluted net income (loss)
per common share $ 0.10 $ 0.05 $ 0.19 $ (0.05)
- ----------------------------------------------------------------------
(a) The Company's convertible subordinated debentures, due 2011, were
excluded from the computations of diluted net income (loss) per
common share for the quarters and six months ended June 30, 2004
and 2003, as they were antidilutive. In addition, the Company's
convertible subordinated notes, due 2003, were excluded from the
computation of diluted net income (loss) per common share for the
quarter and six months ended June 30, 2003, as they were
antidilutive. The convertible subordinated notes, due 2003, were
repaid in full on March 19, 2003.
Hexcel Corporation and Subsidiaries
Schedule of Net Debt
Table E
- ----------------------------------------------------------------------
Unaudited
------------------------
June March December
30, 31, 31,
(In millions) 2004 2004 2003
- ----------------------------------------------------------------------
Senior Secured Credit Facility, due 2008 $ 11.8 $ 0.5 $ 4.0
European credit and overdraft facilities 0.8 0.2 1.9
9.875% Senior secured notes, due 2008,
net of unamortized discount of $1.0 at
June 30, 2004 and $1.1 at March 31, 2004
and December 31, 2003 124.0 123.9 123.9
9.75% Senior subordinated notes, due 2009,
net of unamortized discount of $0.8 at
June 30, 2004, $0.9 at March 31, 2004,
and $1.0 at December 31, 2003 (a) 304.6 320.7 328.5
7.0% Convertible subordinated debentures,
due 2011 21.0 21.0 21.0
- ----------------------------------------------------------------------
Total notes payable 462.2 466.3 479.3
Capital lease obligations 3.9 4.0 4.1
- ----------------------------------------------------------------------
Total notes payable and capital lease
obligations $ 466.1 $ 470.3 $ 483.4
- ----------------------------------------------------------------------
Cash and cash equivalents 45.1 24.0 41.7
Add: Cash for bond repurchase settlements (1.8) - -
- ----------------------------------------------------------------------
Net Debt $ 422.8 $ 446.3 $ 441.7
- ----------------------------------------------------------------------
(a) Includes a decrease of $2.8 million at June 30, 2004; an increase
of $1.6 million at March 31, 2004; and a decrease of $0.5 million
at December 31, 2003 for derivative contracts under SFAS No. 133.
During the fourth quarter of 2003, the Company entered into
interest rate swap agreements for an aggregate notional amount of
$100.0 million, effectively converting the fixed interest rate of
9.75% into variable interest rates.
CONTACT: Hexcel Corporation
Investors:
Stephen C. Forsyth, 203-969-0666 ext. 425
stephen.forsyth@hexcel.com
or
Media:
Michael Bacal, 203-969-0666 ext. 426
michael.bacal@hexcel.com