Full Year 2022 Highlights:
- Net sales: $688.0 million
- Net loss: $(46.2) million, inclusive of $79.0 million of impairment charges
- Adjusted EBITDA*: $80.2 million; Adjusted EBITDA margin*: 11.7%
- Diluted (loss) earnings per share: $(1.65) per share, $1.12 per share adjusted*
Fourth Quarter 2022 Highlights:
- Net sales: $197.1 million
- Net loss: $(54.9) million, inclusive of $79.0 million of impairment charges
- Adjusted EBITDA: $31.0 million; Adjusted EBITDA margin: 15.7%
- Diluted (loss) earnings per share: $(1.96) per share, $0.42 per share adjusted
2023 Outlook Highlights:
- Net sales: $730.0 million to $750.0 million
- Net earnings: $4.0 million to $11.6 million
- Adjusted EBITDA: $95.0 million to $105.0 million
- Adjusted EBITDA margin: 13.0% to 14.0%
- Diluted EPS: $0.14 per share to $0.41 per share; adjusted $0.30 per share to $0.57 per share
- Cash from operating activities: $60.0 million to $70.0 million
- Free cash flow: $35 million to $45 million
Kaman Corp. (NYSE:KAMN) today reported financial results for the fourth fiscal quarter and full year ended December 31, 2022.
Table 1. Summary of Financial Results (unaudited) |
||||||||||||||||||||
Thousands of U.S. dollars (except share data) |
|
Three Months Ended |
|
Twelve Months Ended |
||||||||||||||||
|
|
December 31,
|
|
September 30,
|
|
December 31,
|
|
December 31,
|
|
December 31,
|
||||||||||
Net sales |
|
$ |
197,143 |
|
|
$ |
172,004 |
|
|
$ |
175,147 |
|
|
$ |
687,961 |
|
|
$ |
708,993 |
|
Net (loss) earnings |
|
|
(54,943 |
) |
|
|
625 |
|
|
|
9,169 |
|
|
|
(46,226 |
) |
|
|
43,676 |
|
Adjusted EBITDA* |
|
|
30,987 |
|
|
|
20,614 |
|
|
|
23,591 |
|
|
|
80,216 |
|
|
|
95,464 |
|
Adjusted EBITDA margin* |
|
|
15.7 |
% |
|
|
12.0 |
% |
|
|
13.5 |
% |
|
|
11.7 |
% |
|
|
13.5 |
% |
Diluted (loss) earnings per share |
|
$ |
(1.96 |
) |
|
$ |
0.02 |
|
|
$ |
0.33 |
|
|
$ |
(1.65 |
) |
|
$ |
1.57 |
|
Adjusted diluted earnings per share* |
|
$ |
0.42 |
|
|
$ |
0.32 |
|
|
$ |
0.48 |
|
|
$ |
1.12 |
|
|
$ |
1.93 |
|
*See the end of this release for an explanation of the Company's use of Adjusted EBITDA, Adjusted EBITDA margin, Adjusted free cash flow and Adjusted diluted earnings per share from continuing operations. See tables 5-11 for reconciliations to the most comparable GAAP measure.
"Both the quarter and full-year results came in ahead of our expectations that we communicated last quarter. For the twelve-month period, net sales at Engineered Products segment grew by 6.5% due to the acquisition of Aircraft Wheel and Brake and by 12.2% in the base business. For the full year, operating income grew by 40% organically in our Engineered Products segment, highlighting the recovery in the commercial aerospace market and continued growth in medical and industrial end markets," said Ian K. Walsh, Chairman, President and Chief Executive Officer.
"During 2022, Kaman entered the next phase on its journey to positioning the company for long-term growth. As announced in December, Kaman is consolidating its Joint Programmable Fuze production and optimizing cost structure to align with our highest return opportunities. In January, we announced further initiatives to streamline Kaman’s facilities and functions by reducing headcount, eliminating non-value added activities, discontinuing K-MAX® production and right-sizing Kaman’s total cost structure."
"At the forefront of our transformation is the execution on our long-term growth strategy for our Engineered Products segment. During the fourth quarter we continued to integrate the Aircraft Wheel and Brake acquisition and we're seeing results in line with our expectations for this business which reaffirms that this investment was a key part of supporting the overall strategy for the Engineered Products segment. Organically, the order intake across these businesses during the fourth quarter grew substantially compared to levels in the previous year. The actions that we have taken and the strength in our underlying performance will enhance our earnings power and position us to deliver improved sales, adjusted EBITDA and free cash flow in 2023," said Walsh.
OUTLOOK DISCUSSION
Revenue and earnings growth is driven by the addition of Aircraft Wheel and Brake to the portfolio. Organically, Adjusted EBITDA is expected to improve due to margin expansion from the Engineered Products segment driven by strategic price increases and lean initiatives the Company is taking. Higher interest expense will remain a headwind on cash expectations for the year and, while the Company will be vigilant on cash outlay, it has committed to key capital projects and research and development spend associated with new autonomous technologies. The expected decline in the adjusted diluted earnings per share is primarily a result of significantly lower pension income, attributing to $0.50 cents per share of the total decline, higher interest expense and lower JPF DCS orders. For further information, the Company's supplemental presentation relating to the fourth quarter 2022 results and 2023 outlook will be posted to the Company's website, as detailed below.
KAMAN BUSINESS RESULTS DISCUSSION BY REPORTING SEGMENT
Kaman manages its portfolio through three segments: (1) Engineered Products; (2) Precision Products; and (3) Structures.
Engineered Products - Our Engineered Products segment serves the aerospace and defense, industrial and medical markets providing sophisticated, proprietary aircraft bearings and components; super precision, miniature ball bearings; proprietary spring energized seals, springs and contacts; and wheels, brakes and related hydraulic components for helicopters, fixed-wing and UAV aircraft.
Table 2. Engineered Products Results |
|
|
|
|
|
|
||||||||||||||
Thousands of U.S. dollars |
|
Three Months Ended |
|
Twelve Months Ended |
||||||||||||||||
|
|
December 31,
|
|
September 30,
|
|
December 31,
|
|
December 31,
|
|
December 31,
|
||||||||||
Net sales |
|
$ |
113,972 |
|
|
$ |
92,052 |
|
|
$ |
82,549 |
|
|
$ |
377,241 |
|
|
$ |
317,683 |
|
Operating income |
|
|
17,168 |
|
|
|
14,156 |
|
|
|
13,502 |
|
|
|
57,833 |
|
|
|
43,097 |
|
Adjusted EBITDA |
|
|
30,698 |
|
|
|
21,772 |
|
|
|
20,082 |
|
|
|
91,353 |
|
|
|
69,403 |
|
Adjusted EBITDA margin |
|
|
26.9 |
% |
|
|
23.7 |
% |
|
|
24.3 |
% |
|
|
24.2 |
% |
|
|
21.8 |
% |
Three months ended December 31, 2022 versus three months ended September 30, 2022 - Operating income increased $3.0 million, Adjusted EBITDA increased $8.9 million and margin increased 3.2 percentage points versus the third quarter of 2022. Results improved compared to the prior period driven by the contribution of sales and gross margin from our Aircraft Wheel and Brake acquisition and higher sales and gross margin on our commercial and defense bearings, partially offset by lower volume on our springs, seals and contacts used in industrial applications.
Three months ended December 31, 2022 versus three months ended December 31, 2021 - Operating income increased $3.7 million, Adjusted EBITDA increased $10.6 million and margin increased 2.6 percentage points versus the fourth quarter of 2021. Results improved compared to the prior period driven by the contribution of sales and gross margin from our Aircraft Wheel and Brake acquisition and higher sales and gross margin on our commercial bearings.
Precision Products - Our Precision Products segment serves the aerospace and defense markets providing precision safe and arming solutions for missile and bomb systems for the U.S. and allied militaries; subcontract helicopter work; restoration, modification and support of our SH-2G Super Seasprite maritime helicopters; support of our heavy lift K-MAX® manned helicopter, and development of the KARGO UAV unmanned aerial system, a purpose built autonomous medium lift logistics vehicle.
Table 3. Precision Products Results |
|
|
|
|
|
|
||||||||||||||
Thousands of U.S. dollars |
|
Three Months Ended |
|
Twelve Months Ended |
||||||||||||||||
|
|
December 31,
|
|
September 30,
|
|
December 31,
|
|
December 31,
|
|
December 31,
|
||||||||||
Net sales |
|
$ |
49,925 |
|
|
$ |
46,282 |
|
|
$ |
60,673 |
|
|
$ |
185,023 |
|
|
$ |
256,329 |
|
Operating income |
|
|
6,016 |
|
|
|
5,730 |
|
|
|
9,092 |
|
|
|
17,705 |
|
|
|
55,366 |
|
Adjusted EBITDA |
|
|
6,801 |
|
|
|
6,534 |
|
|
|
10,133 |
|
|
|
21,368 |
|
|
|
59,514 |
|
Adjusted EBITDA margin |
|
|
13.6 |
% |
|
|
14.1 |
% |
|
|
16.7 |
% |
|
|
11.5 |
% |
|
|
23.2 |
% |
Three months ended December 31, 2022 versus three months ended September 30, 2022 - Operating income and Adjusted EBITDA increased $0.3 million and margin decreased 0.5 percentage points versus the third quarter of 2022. Operating income and EBITDA benefited from higher sales and gross profit on our SH-2G program with New Zealand and K-MAX® spares and support, partially offset by lower JPF sales. Additionally impacting margin was higher R&D spend associated with new technologies, such as the KARGO UAV unmanned aerial system.
Three months ended December 31, 2022 versus three months ended December 31, 2021 - Operating income decreased $3.1 million, Adjusted EBITDA decreased $3.3 million and margin decreased 3.1 percentage points versus the fourth quarter of 2020. Results declined compared to the prior period, driven by lower JPF sales and higher R&D spend associated with new technologies, partially offset by higher sales and margin on our K-MAX® spares and support.
Included in our consolidated fourth quarter results were $25.3 million and $51.0 million of one-time charges for the goodwill write-down and K-MAX® program impairment charge, respectively, associated with the Precision Products segment. These charges are captured in our other unallocated expenses and therefore are not reflected in the segment operating results above.
Structures - Our Structures segment serves the aerospace and defense and medical end markets providing sophisticated complex metallic and composite aerostructures for commercial, military and general aviation fixed and rotary wing aircraft, and medical imaging solutions.
Table 4. Structures Results |
|
|
|
|
|
|
||||||||||||||
Thousands of U.S. dollars |
|
Three Months Ended |
|
Twelve Months Ended |
||||||||||||||||
|
|
December 31,
|
|
September 30,
|
|
December 31,
|
|
December 31,
|
|
December 31,
|
||||||||||
Net sales |
|
$ |
33,246 |
|
|
$ |
33,670 |
|
|
$ |
31,925 |
|
|
$ |
125,697 |
|
|
$ |
134,981 |
|
Operating income (loss) |
|
|
(1,624 |
) |
|
|
71 |
|
|
|
531 |
|
|
|
(3,000 |
) |
|
|
(340 |
) |
Adjusted EBITDA |
|
|
(768 |
) |
|
|
941 |
|
|
|
1,420 |
|
|
|
519 |
|
|
|
3,122 |
|
Adjusted EBITDA margin |
|
|
(2.3 |
)% |
|
|
2.8 |
% |
|
|
4.4 |
% |
|
|
0.4 |
% |
|
|
2.3 |
% |
Three months ended December 31, 2022 versus three months ended September 30, 2022 - Operating income and Adjusted EBITDA decreased by $1.7 million, and margin decreased 5.1 percentage points versus the third quarter of 2022. Results were impacted by lower gross profit due to changes in profit estimates for long term contracts partially offset by higher sales volumes on certain composite programs.
Three months ended December 31, 2022 versus three months ended December 31, 2021 - Operating income and Adjusted EBITDA decreased by $2.2 million, and margin decreased 6.7 percentage points versus the fourth quarter of 2021. Results were impacted by lower gross profit due to changes in profit estimates for long term contracts partially offset by higher sales volumes on our composite programs.
Included in our consolidated fourth quarter results was $2.7 million of a one-time charge for the Jacksonville facility's portion of the K-MAX® program impairment charge. This charge is captured in our other unallocated expenses and therefore not reflected in the segment operating results above.
Please see the MD&A section of the Company's Form 10-K filed with the Securities and Exchange Commission concurrently with the issuance of this release for greater detail on our results and various company programs.
CONFERENCE CALL
A webcast and conference call has been scheduled for tomorrow, February 24, 2023, at 8:30 AM ET. Participants must register for the teleconference. Once registration is complete, participants will be provided with a dial-in number containing a personalized PIN to access the call. While not required, it is recommended that participants join 10 minutes prior to the event start. A live webcast will be available during the call and a replay will be available two hours after the call. Registration and webcast can be accessed at www.kaman.com/investors/ quarterly-earnings-calls. In its discussion, management may reference certain non-GAAP financial measures related to company performance. A reconciliation of that information to the most directly comparable GAAP measures is provided in this release. In addition, a supplemental presentation relating to the fourth quarter 2022 results will be posted to the Company’s website prior to the earnings call at www.kaman.com/investors/quarterly-earnings-calls.
ABOUT KAMAN CORPORATION
Kaman Corporation, founded in 1945 by aviation pioneer Charles H. Kaman, and headquartered in Bloomfield, Connecticut, conducts business in the aerospace & defense, industrial and medical markets. Kaman produces and markets proprietary aircraft bearings and components; super precision, miniature ball bearings; proprietary spring energized seals, springs and contacts; wheels, brakes and related hydraulic components for helicopters, fixed-wing and UAV aircraft; complex metallic and composite aerostructures for commercial, military and general aviation fixed and rotary wing aircraft; safe and arming solutions for missile and bomb systems for the U.S. and allied militaries; subcontract helicopter work; restoration, modification and support of our SH-2G Super Seasprite maritime helicopters; support of our heavy lift K-MAX® manned helicopter, and development of the KARGO UAV unmanned aerial system, a purpose built autonomous medium lift logistics vehicle. More information is available at www.kaman.com.
NON-GAAP MEASURES DISCLOSURE
Management believes that the Non-GAAP financial measures (i.e. financial measures that are not computed in accordance with Generally Accepted Accounting Principles) identified by an asterisk (*) used in this release or in other disclosures provide important perspectives into the Company's ongoing business performance. The Company does not intend for the information to be considered in isolation or as a substitute for the related GAAP measures. Other companies may define the measures differently. We define the Non-GAAP measures used in this release and other disclosures as follows:
Adjusted EBITDA - Adjusted EBITDA for the consolidated company results is defined as net earnings before interest, taxes, other expense (income), net, depreciation and amortization and certain items that are not indicative of the operating performance of the Company for the periods presented. Adjusted EBITDA for the segments is defined as operating income before depreciation and amortization. Adjusted EBITDA margin is defined as Adjusted EBITDA as a percent of Net sales. Management believes Adjusted EBITDA and Adjusted EBITDA margin provide an additional perspective on the operating results of the organization and its earnings capacity and helps improve the comparability of our results between periods because they provide a view of our operations that excludes items that management believes are not reflective of operating performance, such as items traditionally removed from net earnings in the calculation of EBITDA as well as Other expense (income), net and certain items that are not indicative of the operating performance of the Company for the period presented. Adjusted EBITDA and Adjusted EBITDA margin are not presented as an alternative measure of operating performance, as determined in accordance with GAAP. The following tables illustrate the calculation of Adjusted EBITDA:
Table 5. Adjusted EBITDA (unaudited) |
|
|
|
|
||||||||||||||||
Thousands of U.S. dollars |
|
Three Months Ended
|
||||||||||||||||||
|
|
Consolidated |
|
Engineered
|
|
Precision
|
|
Structures |
|
Corp/Elims** |
||||||||||
Adjusted EBITDA |
|
|
|
|
|
|
|
|
|
|
||||||||||
Consolidated Results |
|
|
|
|
|
|
|
|
|
|
||||||||||
Net sales |
|
$ |
197,143 |
|
|
$ |
113,972 |
|
|
$ |
49,925 |
|
|
$ |
33,246 |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net (loss) earnings |
|
$ |
(54,943 |
) |
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense, net |
|
|
8,786 |
|
|
|
|
|
|
|
|
|
||||||||
Income tax expense (benefit) |
|
|
(18,724 |
) |
|
|
|
|
|
|
|
|
||||||||
Non-service pension and post retirement benefit income |
|
|
(5,145 |
) |
|
|
|
|
|
|
|
|
||||||||
Other income, net |
|
|
(2,100 |
) |
|
|
|
|
|
|
|
|
||||||||
Operating income (loss) |
|
$ |
(72,126 |
) |
|
$ |
17,168 |
|
|
$ |
6,016 |
|
|
$ |
(1,624 |
) |
|
$ |
(93,686 |
) |
Depreciation and amortization |
|
|
13,675 |
|
|
|
11,231 |
|
|
|
785 |
|
|
|
856 |
|
|
|
803 |
|
Goodwill impairment |
|
|
25,306 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
25,306 |
|
Program assets impairment |
|
|
53,677 |
|
|
|
|
|
|
|
|
|
53,677 |
|
||||||
Restructuring and severance costs |
|
|
6,989 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
6,989 |
|
Cost associated with corporate development activities |
|
|
1,167 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,167 |
|
Inventory step-up associated with acquisition |
|
|
2,299 |
|
|
|
2,299 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Other Adjustments |
|
$ |
103,113 |
|
|
$ |
13,530 |
|
|
$ |
785 |
|
|
$ |
856 |
|
|
$ |
87,942 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted EBITDA |
|
$ |
30,987 |
|
|
$ |
30,698 |
|
|
$ |
6,801 |
|
|
$ |
(768 |
) |
|
$ |
(5,744 |
) |
Adjusted EBITDA margin |
|
|
15.7 |
% |
|
|
26.9 |
% |
|
|
13.6 |
% |
|
|
(2.3 |
)% |
|
|
||
**Corp/Elims Operating income (loss) represents the Corporate office expenses and $86.0 million of unallocated expenses that are shown on the Consolidated Statement of Earnings as their own line items.
Table 6. Adjusted EBITDA (unaudited) |
|
|
|
|
||||||||||||||||
Thousands of U.S. dollars |
|
Three Months Ended
|
||||||||||||||||||
|
|
Consolidated |
|
Engineered
|
|
Precision
|
|
Structures |
|
Corp/Elims** |
||||||||||
Adjusted EBITDA |
|
|
|
|
|
|
|
|
|
|
||||||||||
Consolidated Results |
|
|
|
|
|
|
|
|
|
|
||||||||||
Net sales |
|
$ |
172,004 |
|
|
$ |
92,052 |
|
|
$ |
46,282 |
|
|
$ |
33,670 |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net earnings |
|
$ |
625 |
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense, net |
|
|
3,614 |
|
|
|
|
|
|
|
|
|
||||||||
Income tax expense (benefit) |
|
|
128 |
|
|
|
|
|
|
|
|
|
||||||||
Non-service pension and post retirement benefit income |
|
|
(5,142 |
) |
|
|
|
|
|
|
|
|
||||||||
Other expense, net |
|
|
1,221 |
|
|
|
|
|
|
|
|
|
||||||||
Operating income (loss) |
|
$ |
446 |
|
|
$ |
14,156 |
|
|
$ |
5,730 |
|
|
$ |
71 |
|
|
$ |
(19,511 |
) |
Depreciation and amortization |
|
|
9,383 |
|
|
|
6,856 |
|
|
|
804 |
|
|
|
870 |
|
|
|
853 |
|
Restructuring and severance costs |
|
|
(243 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(243 |
) |
Cost associated with corporate development activities |
|
|
10,725 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
10,725 |
|
Inventory step-up associated with acquisition |
|
|
760 |
|
|
|
760 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
(Gain) loss on sale of business |
|
|
(457 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(457 |
) |
Other Adjustments |
|
$ |
20,168 |
|
|
$ |
7,616 |
|
|
$ |
804 |
|
|
$ |
870 |
|
|
$ |
10,878 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted EBITDA |
|
$ |
20,614 |
|
|
$ |
21,772 |
|
|
$ |
6,534 |
|
|
$ |
941 |
|
|
$ |
(8,633 |
) |
Adjusted EBITDA margin |
|
|
12.0 |
% |
|
|
23.7 |
% |
|
|
14.1 |
% |
|
|
2.8 |
% |
|
|
||
**Corp/Elims Operating income (loss) represents the Corporate office expenses and $0.7 million of unallocated income that are shown on the Consolidated Statement of Earnings as their own line items.
Table 7. Adjusted EBITDA (unaudited) |
|
|
|
|
||||||||||||||||
Thousands of U.S. dollars |
|
Three Months Ended
|
||||||||||||||||||
|
|
Consolidated |
|
Engineered
|
|
Precision
|
|
Structures |
|
Corp/Elims** |
||||||||||
Adjusted EBITDA |
|
|
|
|
|
|
|
|
|
|
||||||||||
Consolidated Results |
|
|
|
|
|
|
|
|
|
|
||||||||||
Net sales |
|
$ |
175,147 |
|
|
$ |
82,549 |
|
|
$ |
60,673 |
|
|
$ |
31,925 |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net earnings |
|
$ |
9,169 |
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense, net |
|
|
4,058 |
|
|
|
|
|
|
|
|
|
||||||||
Income tax expense (benefit) |
|
|
6,676 |
|
|
|
|
|
|
|
|
|
||||||||
Non-service pension and post retirement benefit income |
|
|
(6,397 |
) |
|
|
|
|
|
|
|
|
||||||||
Other income, net |
|
|
(417 |
) |
|
|
|
|
|
|
|
|
||||||||
Operating income (loss) |
|
$ |
13,089 |
|
|
$ |
13,502 |
|
|
$ |
9,092 |
|
|
$ |
531 |
|
|
$ |
(10,036 |
) |
Depreciation and amortization |
|
|
9,180 |
|
|
|
6,580 |
|
|
|
1,041 |
|
|
|
889 |
|
|
|
670 |
|
Restructuring and severance costs |
|
|
675 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
675 |
|
Cost associated with corporate development activities |
|
|
647 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
647 |
|
Other Adjustments |
|
$ |
10,502 |
|
|
$ |
6,580 |
|
|
$ |
1,041 |
|
|
$ |
889 |
|
|
$ |
1,992 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted EBITDA |
|
$ |
23,591 |
|
|
$ |
20,082 |
|
|
$ |
10,133 |
|
|
$ |
1,420 |
|
|
$ |
(8,044 |
) |
Adjusted EBITDA margin |
|
|
13.5 |
% |
|
|
24.3 |
% |
|
|
16.7 |
% |
|
|
4.4 |
% |
|
|
||
**Corp/Elims Operating income (loss) represents the Corporate office expenses and $0.7 million of unallocated expenses that are shown on the Consolidated Statement of Earnings as their own line items.
Table 8. Adjusted EBITDA (unaudited) |
|
|
|
|
||||||||||||||||
Thousands of U.S. dollars |
|
Twelve Months Ended
|
||||||||||||||||||
|
|
Consolidated |
|
Engineered
|
|
Precision
|
|
Structures |
|
Corp/Elims** |
||||||||||
Adjusted EBITDA |
|
|
|
|
|
|
|
|
|
|
||||||||||
Consolidated Results |
|
|
|
|
|
|
|
|
|
|
||||||||||
Net sales |
|
$ |
687,961 |
|
|
$ |
377,241 |
|
|
$ |
185,023 |
|
|
$ |
125,697 |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net (loss) earnings |
|
$ |
(46,226 |
) |
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense, net |
|
|
16,874 |
|
|
|
|
|
|
|
|
|
||||||||
Income tax expense (benefit) |
|
|
(16,732 |
) |
|
|
|
|
|
|
|
|
||||||||
Non-service pension and post retirement benefit income |
|
|
(20,574 |
) |
|
|
|
|
|
|
|
|
||||||||
Other expense (income), net |
|
|
315 |
|
|
|
|
|
|
|
|
|
||||||||
Operating income (loss) |
|
$ |
(66,343 |
) |
|
$ |
57,833 |
|
|
$ |
17,705 |
|
|
$ |
(3,000 |
) |
|
$ |
(138,881 |
) |
Depreciation and amortization |
|
|
40,712 |
|
|
|
30,461 |
|
|
|
3,663 |
|
|
|
3,519 |
|
|
|
3,069 |
|
Goodwill impairment |
|
|
25,306 |
|
|
|
|
|
|
|
|
|
25,306 |
|
||||||
Program assets impairment |
|
|
53,677 |
|
|
|
|
|
|
|
|
|
53,677 |
|
||||||
Restructuring and severance costs |
|
|
9,842 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
9,842 |
|
Cost associated with corporate development activities |
|
|
14,420 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
14,420 |
|
Inventory step-up associated with acquisition |
|
|
3,059 |
|
|
|
3,059 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Gain on sale of business |
|
|
(457 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(457 |
) |
Other Adjustments |
|
$ |
146,559 |
|
|
$ |
33,520 |
|
|
$ |
3,663 |
|
|
$ |
3,519 |
|
|
$ |
105,857 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted EBITDA |
|
$ |
80,216 |
|
|
$ |
91,353 |
|
|
$ |
21,368 |
|
|
$ |
519 |
|
|
$ |
(33,024 |
) |
Adjusted EBITDA margin |
|
|
11.7 |
% |
|
|
24.2 |
% |
|
|
11.5 |
% |
|
|
0.4 |
% |
|
|
||
**Corp/Elims Operating income (loss) represents the Corporate office expenses and $88.5 million of unallocated expenses that are shown on the Consolidated Statement of Earnings as their own line items.
Table 9. Adjusted EBITDA (unaudited) |
|
|
|
|
||||||||||||||||
Thousands of U.S. dollars |
|
Twelve Months Ended
|
||||||||||||||||||
|
|
Consolidated |
|
Engineered
|
|
Precision
|
|
Structures |
|
Corp/Elims* |
||||||||||
Adjusted EBITDA |
|
|
|
|
|
|
|
|
|
|
||||||||||
Consolidated Results |
|
|
|
|
|
|
|
|
|
|
||||||||||
Net sales |
|
$ |
708,993 |
|
|
$ |
317,683 |
|
|
$ |
256,329 |
|
|
$ |
134,981 |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net earnings |
|
$ |
43,676 |
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense, net |
|
|
16,290 |
|
|
|
|
|
|
|
|
|
||||||||
Income tax expense (benefit) |
|
|
16,832 |
|
|
|
|
|
|
|
|
|
||||||||
Non-service pension and post retirement benefit income |
|
|
(26,229 |
) |
|
|
|
|
|
|
|
|
||||||||
Other income, net |
|
|
(142 |
) |
|
|
|
|
|
|
|
|
||||||||
Income from TSA |
|
|
(931 |
) |
|
|
|
|
|
|
|
|
||||||||
Operating income (loss) |
|
$ |
49,496 |
|
|
$ |
43,097 |
|
|
$ |
55,366 |
|
|
$ |
(340 |
) |
|
$ |
(48,627 |
) |
Depreciation and amortization |
|
|
36,654 |
|
|
|
26,306 |
|
|
|
4,148 |
|
|
|
3,462 |
|
|
|
2,738 |
|
Restructuring and severance costs |
|
|
6,154 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
6,154 |
|
Cost associated with corporate development activities |
|
|
1,198 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,198 |
|
Costs from transition services agreement |
|
|
1,728 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,728 |
|
Loss on sale of business |
|
|
234 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
234 |
|
Other Adjustments |
|
$ |
45,968 |
|
|
$ |
26,306 |
|
|
$ |
4,148 |
|
|
$ |
3,462 |
|
|
$ |
12,052 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted EBITDA |
|
$ |
95,464 |
|
|
$ |
69,403 |
|
|
$ |
59,514 |
|
|
$ |
3,122 |
|
|
$ |
(36,575 |
) |
Adjusted EBITDA margin |
|
|
13.5 |
% |
|
|
21.8 |
% |
|
|
23.2 |
% |
|
|
2.3 |
% |
|
|
||
**Corp/Elims Operating income (loss) represents the Corporate office expenses and $8.1 million of unallocated expenses that are shown on the Consolidated Statement of Earnings as their own line items.
Adjusted Net Earnings and Adjusted Diluted Earnings Per Share - Adjusted earnings from continuing operations and adjusted diluted earnings per share are defined as GAAP "Earnings from continuing operations" and "Diluted earnings per share from continuing operations", less items that are not indicative of the operating performance of the business for the periods presented. These items are included in the reconciliation below. Management uses adjusted earnings from continuing operations and adjusted diluted earnings per share to evaluate performance period over period, to analyze the underlying trends in our business and to assess its performance relative to its competitors. We believe that this information is useful for investors and financial institutions seeking to analyze and compare companies on the basis of operating performance.
The following table illustrates the calculation of adjusted earnings from continuing operations and adjusted diluted earnings per share:
Table 10. Adjusted Net Earnings and Adjusted Diluted Earnings per Share (unaudited) |
||||||||||||||||||||||||
Thousands of U.S. dollars (except share data) |
|
|
|
|
|
|
||||||||||||||||||
|
|
Three Months Ended |
|
Three Months Ended |
||||||||||||||||||||
|
|
December 31, 2022 |
|
December 31, 2021 |
||||||||||||||||||||
|
|
Pre-Tax |
|
Tax-Effected |
|
Diluted EPS |
|
Pre-Tax |
|
Tax-Effected |
|
Diluted EPS |
||||||||||||
Net (loss) earnings |
|
$ |
(73,667 |
) |
|
$ |
(54,943 |
) |
|
$ |
(1.96 |
) |
|
$ |
15,845 |
|
|
$ |
9,169 |
|
|
$ |
0.33 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Goodwill impairment |
|
|
25,306 |
|
|
|
18,874 |
|
|
|
0.67 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Program assets impairment |
|
|
53,677 |
|
|
|
40,034 |
|
|
|
1.43 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Restructuring and severance costs |
|
|
6,989 |
|
|
|
5,213 |
|
|
|
0.19 |
|
|
|
675 |
|
|
|
530 |
|
|
|
0.02 |
|
Costs associated with corporate development activities |
|
|
1,167 |
|
|
|
870 |
|
|
|
0.03 |
|
|
|
647 |
|
|
|
508 |
|
|
|
0.02 |
|
Inventory step-up associated with acquisition |
|
|
2,299 |
|
|
|
1,715 |
|
|
|
0.06 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Tax-related items |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,131 |
|
|
|
3,131 |
|
|
|
0.11 |
|
Adjustments |
|
$ |
89,438 |
|
|
$ |
66,706 |
|
|
$ |
2.38 |
|
|
$ |
4,453 |
|
|
$ |
4,169 |
|
|
$ |
0.15 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Adjusted net earnings |
|
$ |
15,771 |
|
|
$ |
11,763 |
|
|
$ |
0.42 |
|
|
$ |
20,298 |
|
|
$ |
13,338 |
|
|
$ |
0.48 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Diluted weighted average shares outstanding |
|
|
|
|
|
|
28,051 |
|
|
|
|
|
|
|
27,898 |
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
Three Months Ended
|
||||||||||||||||
|
|
|
|
|
|
|
|
Pre-Tax |
|
Tax-Effected |
|
Diluted EPS |
||||||||||||
Net earnings |
|
$ |
753 |
|
|
$ |
625 |
|
|
$ |
0.02 |
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Restructuring and severance costs |
|
|
(243 |
) |
|
|
(189 |
) |
|
|
(0.01 |
) |
||||||||||||
Costs associated with corporate development activities |
|
|
10,725 |
|
|
|
8,363 |
|
|
|
0.30 |
|
||||||||||||
Inventory step-up associated with acquisition |
|
|
760 |
|
|
|
593 |
|
|
|
0.02 |
|
||||||||||||
(Gain) loss on sale of business |
|
|
(457 |
) |
|
|
(356 |
) |
|
|
(0.01 |
) |
||||||||||||
Adjustments |
|
$ |
10,785 |
|
|
$ |
8,411 |
|
|
$ |
0.30 |
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Adjusted net earnings |
|
$ |
11,538 |
|
|
$ |
9,036 |
|
|
$ |
0.32 |
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Diluted weighted average shares outstanding |
|
|
|
|
|
|
28,088 |
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Table 10 (cont). Adjusted Earnings from Continuing Operations and Adjusted Diluted Earnings per Share (unaudited) |
||||||||||||||||||||||||
Thousands of U.S. dollars (except share data) |
|
|
|
|
|
|
||||||||||||||||||
|
|
Twelve Months Ended |
|
Twelve Months Ended |
||||||||||||||||||||
|
|
December 31, 2022 |
|
December 31, 2021 |
||||||||||||||||||||
|
|
Pre-Tax |
|
Tax-Effected |
|
Diluted EPS |
|
Pre-Tax |
|
Tax-Effected |
|
Diluted EPS |
||||||||||||
Net (loss) earnings |
|
$ |
(62,958 |
) |
|
$ |
(46,226 |
) |
|
$ |
(1.65 |
) |
|
$ |
60,508 |
|
|
$ |
43,676 |
|
|
$ |
1.57 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Goodwill impairment |
|
|
25,306 |
|
|
|
18,580 |
|
|
|
0.66 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Program assets impairment |
|
|
53,677 |
|
|
|
39,410 |
|
|
|
1.41 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Restructuring and severance costs |
|
|
9,842 |
|
|
|
7,226 |
|
|
|
0.25 |
|
|
|
6,154 |
|
|
|
4,810 |
|
|
|
0.17 |
|
Costs associated with corporate development activities |
|
|
14,420 |
|
|
|
10,587 |
|
|
|
0.38 |
|
|
|
1,198 |
|
|
|
941 |
|
|
|
0.04 |
|
Inventory step-up associated with acquisition |
|
|
3,059 |
|
|
|
2,246 |
|
|
|
0.08 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
(Gain) loss on sale of business |
|
|
(457 |
) |
|
|
(336 |
) |
|
|
(0.01 |
) |
|
|
234 |
|
|
|
234 |
|
|
|
0.01 |
|
Costs from transition services agreement |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,728 |
|
|
|
1,370 |
|
|
|
0.05 |
|
Income from transition services agreement |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(931 |
) |
|
|
(739 |
) |
|
|
(0.03 |
) |
Tax-related items |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,131 |
|
|
|
3,131 |
|
|
|
0.11 |
|
Tax effect on sale of UK operations |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
287 |
|
|
|
287 |
|
|
|
0.01 |
|
Adjustments |
|
$ |
105,847 |
|
|
$ |
77,713 |
|
|
$ |
2.77 |
|
|
$ |
11,801 |
|
|
$ |
10,034 |
|
|
$ |
0.36 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Adjusted net earnings |
|
$ |
42,889 |
|
|
$ |
31,487 |
|
|
$ |
1.12 |
|
|
$ |
72,309 |
|
|
$ |
53,710 |
|
|
$ |
1.93 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Diluted weighted average shares outstanding |
|
|
|
|
|
|
28,011 |
|
|
|
|
|
|
|
27,891 |
|
||||||||
Free Cash Flow - Free cash flow is defined as GAAP “Net cash provided by (used in) operating activities” in a period less “Expenditures for property, plant & equipment” in the same period. Management believes free cash flow provides an important perspective on our ability to generate cash from our business operations and, as such, that it is an important financial measure for use in evaluating the Company's financial performance. Free cash flow should not be viewed as representing the residual cash flow available for discretionary expenditures such as dividends to shareholders or acquisitions. Management uses free cash flow internally to assess overall liquidity. The following table illustrates the calculation of free cash flow.
Table 11. Free Cash Flow (unaudited) |
||||||||||||||||||||
Thousands of U.S. dollars |
|
Three Months Ended |
|
Last Twelve
|
||||||||||||||||
|
|
April 1, 2022 |
|
July 1, 2022 |
|
September 30,
|
|
December 31,
|
|
December 31,
|
||||||||||
Net cash provided by operating activities |
|
$ |
(1,017 |
) |
|
$ |
(25,937 |
) |
|
$ |
(6,746 |
) |
|
$ |
54,669 |
|
|
$ |
20,969 |
|
Expenditures for property, plant & equipment |
|
|
(6,877 |
) |
|
|
(3,643 |
) |
|
|
(7,106 |
) |
|
|
(6,063 |
) |
|
|
(23,689 |
) |
Free cash flow |
|
$ |
(7,894 |
) |
|
$ |
(29,580 |
) |
|
$ |
(13,852 |
) |
|
$ |
48,606 |
|
|
$ |
(2,720 |
) |
FORWARD-LOOKING STATEMENTS
This report contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements also may be included in other publicly available documents issued by the Company and in oral statements made by our officers and representatives from time to time. These forward-looking statements are intended to provide management's current expectations or plans for our future operating and financial performance, based on assumptions currently believed to be valid. They can be identified by the use of words such as "anticipate," "intend," "plan," "goal," "seek," "believe," "project," "estimate," "expect," "strategy," "future," "likely," "may," "should," "would," "could," "will" and other words of similar meaning in connection with a discussion of future operating or financial performance. Examples of forward looking statements include, among others, statements relating to future sales, earnings, cash flows, results of operations, uses of cash and other measures of financial performance.
Because forward-looking statements relate to the future, they are subject to inherent risks, uncertainties and other factors that may cause the Company's actual results and financial condition to differ materially from those expressed or implied in the forward-looking statements. Such risks, uncertainties and other factors include, among others: (i) changes in domestic and foreign economic and competitive conditions in markets served by the Company, particularly the defense, commercial aviation and industrial production markets; (ii) changes in government and customer priorities and requirements (including cost-cutting initiatives, government and customer shut-downs, the potential deferral of awards, terminations or reductions of expenditures to respond to the priorities of Congress and the Administration, or budgetary cuts resulting from Congressional actions or automatic sequestration); (iii) the global economic impact of the COVID-19 pandemic; (iv) risks and uncertainties associated with the successful integration of our Aircraft Wheel and Brake acquisition; (v) changes in geopolitical conditions in countries where the Company does or intends to do business; (vi) the successful conclusion of competitions for government programs (including new, follow-on and successor programs) and thereafter successful contract negotiations with government authorities (both foreign and domestic) for the terms and conditions of the programs; (vii) the timely receipt of any necessary export approvals and/or other licenses or authorizations from the USG; (viii) timely satisfaction or fulfillment of material contractual conditions precedents in customer purchase orders, contracts, or similar arrangements; (ix) the existence of standard government contract provisions permitting renegotiation of terms and termination for the convenience of the government; (x) the successful resolution of government inquiries or investigations relating to our businesses and programs; (xi) risks and uncertainties associated with the successful implementation and ramp up of significant new programs, including the ability to manufacture the products to the detailed specifications required and recover start-up costs and other investments in the programs; (xii) potential difficulties associated with variable acceptance test results, given sensitive production materials and extreme test parameters; (xiii) the receipt and successful execution of production orders under the Company's existing USG JPF contract, including the exercise of all contract options and receipt of orders from allied militaries, but excluding any next generation programmable fuze programs, as all have been assumed in connection with goodwill impairment evaluations; (xiv) the continued support of the existing K-MAX® helicopter fleet, including sale of existing K-MAX® spare parts inventory; (xv) the accuracy of current cost estimates associated with environmental remediation activities; (xvi) the profitable integration of acquired businesses into the Company's operations; (xvii) the ability to recover from cyber-based or other security attacks, information technology failures or other disruptions; (xviii) changes in supplier sales or vendor incentive policies; (xix) the ability of our suppliers to satisfy their performance obligations, including any supply chain disruptions; (xx) the effects of price increases or decreases; (xxi) the effects of pension regulations, pension plan assumptions, pension plan asset performance, future contributions and the pension freeze; (xxii) future levels of indebtedness and capital expenditures; (xxiii) compliance with our debt covenants; (xxiv) the continued availability of raw materials and other commodities in adequate supplies and the effect of increased costs for such items; (xxv) the effects of currency exchange rates and foreign competition on future operations; (xxvi) changes in laws and regulations, taxes, interest rates, inflation rates and general business conditions; (xxvii) future repurchases and/or issuances of common stock;(xxviii) the occurrence of unanticipated restructuring costs or the failure to realize anticipated savings or benefits from past or future expense reduction actions; (xxix) the ability to recruit and retain skilled employees; and (xxx) other risks and uncertainties set forth herein and in our 2022 Form 10-K.
Any forward-looking information provided in this release should be considered with these factors in mind. We assume no obligation to update any forward-looking statements contained in this report.
KAMAN CORPORATION AND SUBSIDIARIES Condensed Consolidated Statements of Operations (Thousands of U.S. dollars, except share data) (unaudited) |
||||||||||||||||
|
|
Three Months Ended |
|
Twelve Months Ended |
||||||||||||
|
|
December 31, 2022 |
|
December 31, 2021 |
|
December 31, 2022 |
|
December 31, 2021 |
||||||||
Net sales |
|
$ |
197,143 |
|
|
$ |
175,147 |
|
|
$ |
687,961 |
|
|
$ |
708,993 |
|
Cost of sales |
|
|
132,171 |
|
|
|
116,445 |
|
|
|
464,470 |
|
|
|
472,375 |
|
Program inventory impairment |
|
|
44,542 |
|
|
|
— |
|
|
|
44,542 |
|
|
|
— |
|
Gross profit |
|
|
20,430 |
|
|
|
58,702 |
|
|
|
178,949 |
|
|
|
236,618 |
|
Selling, general and administrative expenses |
|
|
38,467 |
|
|
|
36,292 |
|
|
|
166,447 |
|
|
|
152,474 |
|
Goodwill impairment |
|
|
25,306 |
|
|
|
— |
|
|
|
25,306 |
|
|
|
— |
|
Program contract costs impairment |
|
|
9,135 |
|
|
|
— |
|
|
|
9,135 |
|
|
|
— |
|
Research and development costs |
|
|
5,287 |
|
|
|
6,068 |
|
|
|
19,552 |
|
|
|
16,072 |
|
Intangible asset amortization expense |
|
|
7,307 |
|
|
|
2,570 |
|
|
|
15,331 |
|
|
|
10,468 |
|
Costs from transition services agreement |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,728 |
|
Restructuring and severance costs |
|
|
6,989 |
|
|
|
675 |
|
|
|
9,842 |
|
|
|
6,154 |
|
(Gain) loss on sale of business |
|
|
— |
|
|
|
— |
|
|
|
(457 |
) |
|
|
234 |
|
Net loss (gain) on sale of assets |
|
|
65 |
|
|
|
8 |
|
|
|
136 |
|
|
|
(8 |
) |
Operating (loss) income |
|
|
(72,126 |
) |
|
|
13,089 |
|
|
|
(66,343 |
) |
|
|
49,496 |
|
Interest expense, net |
|
|
8,786 |
|
|
|
4,058 |
|
|
|
16,874 |
|
|
|
16,290 |
|
Non-service pension and post retirement benefit income |
|
|
(5,145 |
) |
|
|
(6,397 |
) |
|
|
(20,574 |
) |
|
|
(26,229 |
) |
Income from transition services agreement |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(931 |
) |
Other (income) expense, net |
|
|
(2,100 |
) |
|
|
(417 |
) |
|
|
315 |
|
|
|
(142 |
) |
(Loss) earnings before income taxes |
|
|
(73,667 |
) |
|
|
15,845 |
|
|
|
(62,958 |
) |
|
|
60,508 |
|
Income tax (benefit) expense |
|
|
(18,724 |
) |
|
|
6,676 |
|
|
|
(16,732 |
) |
|
|
16,832 |
|
Net (loss) earnings |
|
$ |
(54,943 |
) |
|
$ |
9,169 |
|
|
$ |
(46,226 |
) |
|
$ |
43,676 |
|
|
|
|
|
|
|
|
|
|
||||||||
Earnings (loss) per share: |
|
|
|
|
|
|
|
|
||||||||
Basic (loss) earnings per share |
|
$ |
(1.96 |
) |
|
$ |
0.33 |
|
|
$ |
(1.65 |
) |
|
$ |
1.57 |
|
Diluted (loss) earnings per share |
|
$ |
(1.96 |
) |
|
$ |
0.33 |
|
|
$ |
(1.65 |
) |
|
$ |
1.57 |
|
Average shares outstanding: |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
|
28,051 |
|
|
|
27,896 |
|
|
|
28,011 |
|
|
|
27,865 |
|
Diluted |
|
|
28,051 |
|
|
|
27,898 |
|
|
|
28,011 |
|
|
|
27,891 |
|
KAMAN CORPORATION AND SUBSIDIARIES Condensed Consolidated Balance Sheets (Thousands of U.S. dollars, except share data) (unaudited) |
||||||||
|
|
December 31, 2022 |
|
December 31, 2021 |
||||
Assets |
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
24,154 |
|
|
$ |
140,800 |
|
Accounts receivable, net |
|
|
87,659 |
|
|
|
73,524 |
|
Contract assets |
|
|
113,182 |
|
|
|
112,354 |
|
Contract costs, current portion |
|
|
695 |
|
|
|
850 |
|
Inventories |
|
|
176,468 |
|
|
|
193,100 |
|
Income tax refunds receivable |
|
|
13,981 |
|
|
|
13,832 |
|
Other current assets |
|
|
15,419 |
|
|
|
12,083 |
|
Total current assets |
|
|
431,558 |
|
|
|
546,543 |
|
Property, plant and equipment, net of accumulated depreciation of $268,089 and $251,888, respectively |
|
|
201,606 |
|
|
|
197,822 |
|
Operating right-of-use assets, net |
|
|
7,391 |
|
|
|
11,011 |
|
Goodwill |
|
|
379,854 |
|
|
|
240,681 |
|
Other intangible assets, net |
|
|
372,331 |
|
|
|
138,074 |
|
Deferred income taxes |
|
|
47,385 |
|
|
|
15,717 |
|
Contract costs, noncurrent portion |
|
|
673 |
|
|
|
10,249 |
|
Investment in Near Earth Autonomy |
|
|
10,000 |
|
|
|
— |
|
Other assets |
|
|
40,534 |
|
|
|
38,385 |
|
Total assets |
|
$ |
1,491,332 |
|
|
$ |
1,198,482 |
|
Liabilities and Shareholders’ Equity |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Accounts payable – trade |
|
$ |
48,277 |
|
|
$ |
42,134 |
|
Accrued salaries and wages |
|
|
31,395 |
|
|
|
38,892 |
|
Contract liabilities, current portion |
|
|
4,081 |
|
|
|
2,945 |
|
Operating lease liabilities, current portion |
|
|
3,332 |
|
|
|
4,502 |
|
Income taxes payable |
|
|
393 |
|
|
|
386 |
|
Other current liabilities |
|
|
39,097 |
|
|
|
32,076 |
|
Total current liabilities |
|
|
126,575 |
|
|
|
120,935 |
|
Long-term debt, excluding current portion, net of debt issuance costs |
|
|
561,061 |
|
|
|
189,421 |
|
Deferred income taxes |
|
|
6,079 |
|
|
|
6,506 |
|
Underfunded pension |
|
|
52,309 |
|
|
|
21,786 |
|
Contract liabilities, noncurrent portion |
|
|
20,515 |
|
|
|
16,528 |
|
Operating lease liabilities, noncurrent portion |
|
|
4,534 |
|
|
|
7,140 |
|
Other long-term liabilities |
|
|
36,280 |
|
|
|
39,837 |
|
Commitments and contingencies |
|
|
|
|
||||
Shareholders' equity: |
|
|
|
|
||||
Preferred stock, $1 par value, 200,000 shares authorized; none outstanding |
|
|
— |
|
|
|
— |
|
Common stock, $1 par value, 50,000,000 shares authorized; voting; 30,640,068 and 30,434,269 shares issued, respectively |
|
|
30,640 |
|
|
|
30,434 |
|
Additional paid-in capital |
|
|
245,436 |
|
|
|
248,153 |
|
Retained earnings |
|
|
688,457 |
|
|
|
750,445 |
|
Accumulated other comprehensive income (loss) |
|
|
(158,421 |
) |
|
|
(111,385 |
) |
Less 2,607,841 and 2,573,896 shares of common stock, respectively, held in treasury, at cost |
|
|
(122,133 |
) |
|
|
(121,318 |
) |
Total shareholders’ equity |
|
|
683,979 |
|
|
|
796,329 |
|
Total liabilities and shareholders’ equity |
|
$ |
1,491,332 |
|
|
$ |
1,198,482 |
|
KAMAN CORPORATION AND SUBSIDIARIES Condensed Consolidated Statements of Cash Flows (Thousands of U.S. dollars) (unaudited) |
||||||||
|
|
Twelve Months Ended |
||||||
|
|
December 31, 2022 |
|
December 31, 2021 |
||||
Cash flows from operating activities: |
|
|
|
|
||||
Net (loss) earnings |
|
$ |
(46,226 |
) |
|
$ |
43,676 |
|
Adjustments to reconcile earnings, net of tax to net cash provided by operating activities: |
|
|
|
|
||||
Depreciation and amortization |
|
|
40,712 |
|
|
|
36,654 |
|
Amortization of debt issuance costs |
|
|
2,750 |
|
|
|
1,836 |
|
Accretion of convertible notes discount |
|
|
— |
|
|
|
2,957 |
|
Provision for doubtful accounts |
|
|
1,301 |
|
|
|
575 |
|
(Gain) loss on sale of business |
|
|
(457 |
) |
|
|
234 |
|
Net loss (gain) on sale of assets |
|
|
136 |
|
|
|
(8 |
) |
Goodwill impairment |
|
|
25,306 |
|
|
|
— |
|
Program asset impairment |
|
|
44,542 |
|
|
|
— |
|
Program contract cost impairment |
|
|
9,135 |
|
|
|
— |
|
Net loss on derivative instruments |
|
|
1,175 |
|
|
|
1,025 |
|
Stock compensation expense |
|
|
7,821 |
|
|
|
6,687 |
|
Non-cash consideration received for blade exchange |
|
|
(827 |
) |
|
|
— |
|
Deferred income taxes |
|
|
(19,054 |
) |
|
|
20,998 |
|
Changes in assets and liabilities, excluding effects of acquisitions/divestitures: |
|
|
|
|
||||
Accounts receivable |
|
|
(8,387 |
) |
|
|
78,367 |
|
Contract assets |
|
|
(707 |
) |
|
|
(3,482 |
) |
Contract costs |
|
|
637 |
|
|
|
725 |
|
Inventories |
|
|
(17,848 |
) |
|
|
(10,357 |
) |
Income tax refunds receivable |
|
|
(144 |
) |
|
|
(8,565 |
) |
Operating right of use assets |
|
|
3,551 |
|
|
|
1,798 |
|
Other assets |
|
|
(2,899 |
) |
|
|
3,450 |
|
Accounts payable - trade |
|
|
1,959 |
|
|
|
(18,398 |
) |
Contract liabilities |
|
|
4,433 |
|
|
|
(30,708 |
) |
Operating lease liabilities |
|
|
(3,707 |
) |
|
|
(1,918 |
) |
Acquired retention plan payments |
|
|
— |
|
|
|
(25,108 |
) |
Other current liabilities |
|
|
(2,860 |
) |
|
|
(8,880 |
) |
Income taxes payable |
|
|
12 |
|
|
|
295 |
|
Pension liabilities |
|
|
(17,745 |
) |
|
|
(37,580 |
) |
Other long-term liabilities |
|
|
(1,640 |
) |
|
|
(5,575 |
) |
Net cash provided by operating activities |
|
|
20,969 |
|
|
|
48,698 |
|
Cash flows from investing activities: |
|
|
|
|
||||
Proceeds from sale of business, net of cash on hand |
|
|
1,200 |
|
|
|
(3,428 |
) |
Expenditures for property, plant & equipment |
|
|
(23,689 |
) |
|
|
(17,530 |
) |
Acquisition of businesses, net of cash acquired |
|
|
(441,340 |
) |
|
|
— |
|
Investment in Near Earth Autonomy |
|
|
(10,000 |
) |
|
|
||
Other, net |
|
|
778 |
|
|
|
(154 |
) |
Net cash used in investing activities |
|
|
(473,051 |
) |
|
|
(21,112 |
) |
Cash flows from financing activities: |
|
|
|
|
||||
Borrowings under revolving credit agreement |
|
|
412,000 |
|
|
|
— |
|
Repayments under revolving credit agreement |
|
|
(49,000 |
) |
|
|
— |
|
Purchase of treasury shares |
|
|
(801 |
) |
|
|
(618 |
) |
Dividends paid |
|
|
(22,363 |
) |
|
|
(22,241 |
) |
Debit issuance costs |
|
|
(4,380 |
) |
|
|
— |
|
Other, net |
|
|
467 |
|
|
|
626 |
|
Net cash provided by (used in) financing activities |
|
|
335,923 |
|
|
|
(22,233 |
) |
Net (decrease) increase in cash and cash equivalents |
|
|
(116,159 |
) |
|
|
5,353 |
|
Effect of exchange rate changes on cash and cash equivalents |
|
|
(487 |
) |
|
|
(642 |
) |
Cash and cash equivalents and restricted cash at beginning of period |
|
|
140,800 |
|
|
|
136,089 |
|
Cash and cash equivalents and restricted cash at end of period |
|
$ |
24,154 |
|
|
$ |
140,800 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20230222006043/en/
Contacts
Investor Relations
(860) 243-7100
InvestorRelations@kaman.com
