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B/E Aerospace Reports Third Quarter 2012 Financial Results; EPS $0.74 Excluding Debt Prepayment Costs; Raises 2012 Guidance And Provides 2013 Guidance

This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements involve risks and uncertainties. The Company’s actual experience and results may differ materially from the experience and results anticipated in such statements. Factors that might cause such a difference include those discussed in the Company’s filings with the Securities and Exchange Commission (SEC), which include its Proxy Statement, Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. For more information, see the section entitled "Forward-Looking Statements" contained in the Company’s Annual Report on Form 10-K and in other filings. The forward-looking statements included in this news release are made only as of the date of this news release and, except as required by federal securities laws and rules and regulations of the SEC, the Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

About B/E Aerospace, Inc.

B/E Aerospace is the world’s leading manufacturer of aircraft cabin interior products and the world’s leading distributor of aerospace fasteners and consumables. B/E Aerospace designs, develops and manufactures a broad range of products for both commercial aircraft and business jets. B/E Aerospace manufactured products include aircraft cabin seating, lighting, oxygen systems, food and beverage preparation and storage equipment, galley systems, and modular lavatory systems. The Company also provides cabin interior reconfiguration, program management and certification services. B/E Aerospace sells and supports its products through its own global direct sales and product support organization. For more information, visit the B/E Aerospace website at www.beaerospace.com.

       

B/E AEROSPACE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)

(In Millions, Except Per Share Data)

 
THREE MONTHS ENDED NINE MONTHS ENDED
September 30, September 30, September 30, September 30,
2012 2011 2012 2011
 
Revenues $ 766.7 $ 636.0 $ 2,282.1 $ 1,845.1
Cost of sales 478.4 398.0 1,417.0 1,151.3
Selling, general and administrative 106.2 86.9 323.3 261.6
Research, development and engineering   47.8     39.0     139.9     113.3  
 
Operating earnings 134.3 112.1 401.9 318.9
 
Operating earnings, as percentage of revenues
17.5 % 17.6 % 17.6 % 17.3 %
 
Interest expense 31.8 26.2 93.4 78.4
 
Debt prepayment costs   82.1     -     82.1     -  
 
Earnings before income taxes 20.4 85.9 226.4 240.5
 
Income taxes   1.9     20.5     67.9     70.0  
 
Net earnings $ 18.5   $ 65.4   $ 158.5   $ 170.5  
 
Net earnings per common share:
Basic $ 0.18   $ 0.65   $ 1.55   $ 1.69  
Diluted $ 0.18   $ 0.64   $ 1.54   $ 1.67  
 
Weighted average common shares:
Basic 102.1 101.0 102.0 100.9
Diluted 103.1 102.0 102.8 101.8
 
   

B/E AEROSPACE, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(In Millions)

 
September 30, December 31,
2012 2011
 
ASSETS
 
Current assets:
Cash and cash equivalents $ 395.2 $ 303.5
Accounts receivable 453.8 333.2
Inventories 1,775.8 1,480.4
Deferred income taxes 19.0 37.2
Other current assets   60.4   30.6
Total current assets 2,704.2 2,184.9
Long-term assets   2,293.4   1,652.4
$ 4,997.6 $ 3,837.3
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
 
Total current liabilities $ 793.1 $ 580.0
Total long-term liabilities 2,129.6 1,384.7
Total stockholders' equity   2,074.9   1,872.6
$ 4,997.6 $ 3,837.3
 
 

B/E AEROSPACE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(In Millions)

 
NINE MONTHS ENDED
September 30,   September 30,
2012 2011
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings $ 158.5 $ 170.5
Adjustments to reconcile net earnings to net cash flows provided by operating activities, net of effects from acquisitions:
 
Depreciation and amortization 54.1 45.9
Deferred income taxes 41.9 43.7
Non-cash compensation 18.8 19.4
Debt prepayment costs 82.1 -
Provision for doubtful accounts 2.9 1.1
Loss on disposal of property and equipment 1.5 0.5
Tax benefits realized from prior exercises of employee stock options and restricted stock
(3.0 ) (23.5 )
Changes in operating assets and liabilities:
Accounts receivable (81.8 ) (75.7 )
Inventories (195.1 ) (101.2 )
Other current assets and other assets (28.0 ) 2.8
Accounts payable and accrued liabilities   151.0     140.5  
Net cash provided by operating activities   202.9     224.0  
 
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures (83.3 ) (45.5 )
Acquisitions, net of cash acquired (651.9 ) (17.0 )
Other   1.8     -  
Net cash used in investing activities   (733.4 )   (62.5 )
 
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from common stock issued 2.8 1.8
Purchase of treasury stock (0.3 ) -
Tax benefits realized from prior exercises of employee stock options and restricted stock
3.0 23.5
Borrowings on line of credit 215.0 30.0
Repayments on line of credit (215.0 ) (30.0 )
Proceeds from long-term debt, inclusive of original issue premium 1,316.0 -
Debt prepayment costs (71.7 ) -
Debt origination costs (30.1 ) -
Principal payments on long-term debt   (600.4 )   (0.5 )
Net cash provided by financing activities   619.3     24.8  
 
Effect of exchange rate changes on cash and cash equivalents   2.9     (0.1 )
 
Net increase in cash and cash equivalents 91.7 186.2
Cash and cash equivalents, beginning of period   303.5     78.7  
Cash and cash equivalents, end of period $ 395.2   $ 264.9  
 

B/E AEROSPACE, INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

This release includes “adjusted operating earnings,” “adjusted operating margin,” “CMS adjusted operating earnings,” “CMS adjusted operating margin,” “adjusted net earnings," “adjusted net earnings per diluted share,” “free cash flow,” and "free cash flow conversion ratio," each of which are “non-GAAP financial measures” as defined in Regulation G of the Securities Exchange Act of 1934, as amended (Exchange Act).

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