UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
| FORM | |||||
CURRENT REPORT
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Item 2.02. Results of Operations and Financial Condition
On November 1, 2022, the Company issued a press release summarizing the Company's financial results for the fiscal quarter ended September 30, 2022. A copy of this press release is furnished as Exhibit 99.1 hereto and is incorporated herein by reference.
A conference call has been scheduled for tomorrow, November 2, 2022, 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 available two hours after the call. Registration and webcast can be accessed at http://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 the press release, furnished herewith, a copy of which can be accessed in the investor relations section of the Company's website.
Item 9.01. Financial Statements and Exhibits
(c) Exhibits
The following document is furnished as an Exhibit pursuant to Item 2.02 hereof:
Exhibit 99.1 - Press Release of the Company, November 1, 2022, regarding financial performance for the fiscal quarter ended September 30, 2022.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| KAMAN CORPORATION | ||||||||
| By: | /s/ James G. Coogan | |||||||
| James G. Coogan | ||||||||
| Senior Vice President and | ||||||||
| Chief Financial Officer | ||||||||
Date: November 1, 2022
KAMAN CORPORATION AND SUBSIDIARIES
Index to Exhibits
| Exhibit | Description | |||||||
| 99.1 | Attached | |||||||
| 104 | Cover Page Interactive Data File, formatted in iXBRL and contained in Exhibit 101 | |||||||
NEWS RELEASE
November 1, 2022
KAMAN REPORTS THIRD QUARTER 2022 RESULTS
Third Quarter 2022 Highlights:
•Completed acquisition of Parker-Hannifin's Aircraft Wheel & Brake division, the largest in the history of the company
•Consolidated results supported by strength in Engineered Products amid program and supplier challenges
•Net sales: $172 million
•Gross Margin: 32.5%
•Net earnings: $0.6 million
•Adjusted EBITDA*: $20.6 million; Adjusted EBITDA margin*: 12.0%
•Diluted earnings per share: $0.02 per share, $0.32 per share adjusted*
| Table 1. Summary of Financial Results (unaudited) | ||||||||||||||||||||||||||||||||
| Thousands of U.S. dollars (except share data) | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||
| September 30, 2022 | July 1, 2022 | October 1, 2021 | September 30, 2022 | October 1, 2021 | ||||||||||||||||||||||||||||
| Net sales | $ | 172,004 | $ | 160,766 | $ | 179,836 | $ | 490,818 | $ | 533,846 | ||||||||||||||||||||||
| Net earnings | 625 | 4,064 | 14,667 | 8,717 | 34,507 | |||||||||||||||||||||||||||
| Adjusted EBITDA* | 20,614 | 16,429 | 27,816 | 49,229 | 71,873 | |||||||||||||||||||||||||||
| Adjusted EBITDA margin* | 12.0 | % | 10.2 | % | 15.5 | % | 10.0 | % | 13.5 | % | ||||||||||||||||||||||
| Diluted earnings per share | $ | 0.02 | $ | 0.14 | $ | 0.53 | $ | 0.31 | $ | 1.24 | ||||||||||||||||||||||
| Adjusted diluted earnings per share* | $ | 0.32 | $ | 0.31 | $ | 0.60 | $ | 0.77 | $ | 1.45 | ||||||||||||||||||||||
*See the end of this release for an explanation of the Company's use of Adjusted EBITDA, Adjusted EBITDA margin, Free cash flow and Adjusted diluted earnings per share. See tables 6-13 for reconciliations to the most comparable GAAP measure.
BLOOMFIELD, Conn. (November 1, 2022) - Kaman Corp. (NYSE:KAMN) today reported financial results for the third fiscal quarter ended September 30, 2022.
“In September, we executed on our growth strategy with the acquisition of Parker-Hannifin’s Aircraft Wheel and Brake division, the largest in our company's history. This acquisition expands the breadth of our product offerings and will drive meaningful margin and cash flow accretion. During the quarter, consolidated results benefited from strong performance in Engineered Products while some program and supplier challenges pressured current results and full year expectations. We continue to see strength in market demand with healthy order rates for our most profitable bearings, springs, seals and contacts products. In addition, demand in the commercial aerospace market is ramping, as sales increased to Boeing and Airbus for the fifth quarter in a row,” said Ian K. Walsh, Chairman, President and Chief Executive Officer.
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“In the third quarter, our Engineered Products segment delivered excellent performance with year over year sales growth of 9% which was 11% excluding the increase from Aircraft Wheel and Brake and foreign exchange pressures. Additionally, order rates remained strong with backlog growing organically by nearly 40 percent since the beginning of the year. Margins were slightly tempered by some supply chain challenges in this segment; however, we are pleased with the way our teams have been managing these issues in order to limit disruptions, while continuing to meet our customer requirements.”
“In Precision Products, our fuze delivery plan is slightly below our prior expectations due to a delay in receipt of a supplied component. This has shifted the timing of deliveries, which will postpone a significant portion of our cash receipts to 2023. With regard to our air vehicles program, we are excited to announce that the Marine Corps selected KARGO UAV for its MULS-A program. They will be funding a prototype build starting in 2023 with a customer Field User Capability Assessment to follow.”
“In our Structures segment, certain program and supplier challenges are delaying the recovery we had anticipated, impacting our expected earnings and cash flow performance for the full year. We remain focused on improving the operational performance of this segment and winning new business opportunities in complex structural programs,” said Walsh.
Outlook
"Kaman is seeing sustained strength in our backlog of greater than $765 million and robust revenue, margins and backlog for bearings, seals, springs and contacts products driven by persistently strong demand. Guidance for the full year 2022 is being revised to include Aircraft Wheel and Brake and account for a decrease from our prior expectations based on a combination of execution on our programs and supplier challenges in Precision Products and Structures. The most meaningful change is the reduction in our cash flow for the year driven mostly by a delay in cash collections which will shift to 2023 due to the push out of deliveries."
"Over the long term, Kaman is positioned to provide meaningful shareholder returns. We will remain disciplined in our approach to capital allocation and our main priority is to deleverage our balance sheet. We will continue to invest in research and development of new products and remain thoughtful in our strategy to achieve top quartile EBITDA margin, free cash flow and return on invested capital,” Walsh said.
See Table 5 of this release for an updated outlook summary for 2022.
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KAMAN BUSINESS RESULTS DISCUSSION
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 | Nine Months Ended | ||||||||||||||||||||||||||||||
| September 30, 2022 | July 1, 2022 | October 1, 2021 | September 30, 2022 | October 1, 2021 | ||||||||||||||||||||||||||||
| Net sales | $ | 92,052 | $ | 89,765 | $ | 84,399 | $ | 263,269 | $ | 235,134 | ||||||||||||||||||||||
| Operating income | 14,156 | 15,467 | 14,931 | 40,665 | 29,595 | |||||||||||||||||||||||||||
| Adjusted EBITDA | 21,772 | 21,614 | 21,488 | 60,655 | 49,321 | |||||||||||||||||||||||||||
| Adjusted EBITDA margin | 23.7 | % | 24.1 | % | 25.5 | % | 23.0 | % | 21.0 | % | ||||||||||||||||||||||
Three months ended September 30, 2022 versus three months ended July 1, 2022 - Operating income decreased $1.3 million, and Adjusted EBITDA and margin were relatively unchanged compared to the second quarter of 2022. Within the third quarter of 2022, we incurred an inventory step-up of $0.8 million related to the acquisition of Aircraft Wheel & Brake. Results for Adjusted EBITDA and margin were impacted by lower sales of engine aftermarket products and industrial bearings. This was mostly offset by higher commercial aerospace bearings sales.
Three months ended September 30, 2022 versus three months ended October 1, 2021 - Operating income decreased $0.8 million, Adjusted EBITDA increased $0.3 million and margin decreased 180 basis points versus the third quarter of 2021. Within the third quarter 2022, we incurred an inventory step-up of $0.8 million dollars related to the acquisition of Aircraft Wheel & Brake. Compared to the prior period, results for Adjusted EBITDA and margin were impacted by lower sales of defense and industrial bearings. This was partially offset by higher sales of commercial aerospace bearings and seals, springs and contacts in industrial applications.
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; manufacture and support of our heavy lift K-MAX® manned helicopter, the K-MAX TITAN unmanned aerial system and 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 | Nine Months Ended | ||||||||||||||||||||||||||||||
| September 30, 2022 | July 1, 2022 | October 1, 2021 | September 30, 2022 | October 1, 2021 | ||||||||||||||||||||||||||||
| Net sales | $ | 46,282 | $ | 41,267 | $ | 63,584 | $ | 135,098 | $ | 195,656 | ||||||||||||||||||||||
| Operating income | 5,730 | 2,550 | 13,792 | 11,689 | 46,274 | |||||||||||||||||||||||||||
| Adjusted EBITDA | 6,534 | 3,593 | 14,814 | 14,567 | 49,381 | |||||||||||||||||||||||||||
| Adjusted EBITDA margin | 14.1 | % | 8.7 | % | 23.3 | % | 10.8 | % | 25.2 | % | ||||||||||||||||||||||
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Three months ended September 30, 2022 versus three months ended July 1, 2022 - Operating income increased $3.2 million, Adjusted EBITDA increased $2.9 million and margin increased 540 basis points versus the second quarter of 2022. Compared to the prior period, results improved driven by higher sales and associated gross profit for our JPF program partially offset by lower sales and margins for K-MAX® spares and support as well as for our SH-2G program.
Three months ended September 30, 2022 versus three months ended October 1, 2021 - Operating income decreased $8.1 million, Adjusted EBITDA decreased $8.3 million and margin decreased 920 basis points versus the third quarter of 2021. Results declined compared to the same period last year, primarily due to lower sales and associated gross profit for our JPF program and our K-MAX® program and higher research and development expense.
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 | Nine Months Ended | ||||||||||||||||||||||||||||||
| September 30, 2022 | July 1, 2022 | October 1, 2021 | September 30, 2022 | October 1, 2021 | ||||||||||||||||||||||||||||
| Net sales | $ | 33,670 | $ | 29,734 | $ | 31,853 | $ | 92,451 | $ | 103,056 | ||||||||||||||||||||||
| Operating income (loss) | 71 | (830) | 330 | (1,376) | (871) | |||||||||||||||||||||||||||
| Adjusted EBITDA | 941 | 57 | 1,187 | 1,287 | 1,702 | |||||||||||||||||||||||||||
| Adjusted EBITDA margin | 2.8 | % | 0.2 | % | 3.7 | % | 1.4 | % | 1.7 | % | ||||||||||||||||||||||
Three months ended September 30, 2022 versus three months ended July 1, 2022 - Operating income and Adjusted EBITDA increased $0.9 million and margin increased 260 basis points versus the second quarter of 2022. Results improved primarily due to increased sales and margin in our Sikorsky UH-60 Black Hawk program.
Three months ended September 30, 2022 versus three months ended October 1, 2021 - Operating income, Adjusted EBITDA and margin were relatively unchanged compared to the third quarter of 2021. Compared to the prior period, sales and associated gross profit for certain composites programs declined mostly offset by increases in our sales and margin for our Boeing P-8A program and our Rolls Royce programs.
Please see the MD&A section of the Company's Form 10-Q filed with the Securities and Exchange Commission concurrently with the issuance of this release for greater detail on our results and various company programs.
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OUTLOOK
Table 5. Outlook | |||||||||||
| Millions of U.S. dollars (except share data) | 2022 Outlook | ||||||||||
| Low End | High End | ||||||||||
| Net Sales | $ | 695.0 | $ | 710.0 | |||||||
| Earnings from continuing operations | $ | 12.1 | $ | 16.3 | |||||||
| Adjusted EBITDA | $ | 72.5 | $ | 77.5 | |||||||
| Adjusted EBITDA margin | 10.4 | % | 10.9 | % | |||||||
| Adjusted diluted earnings per share | $ | 0.95 | $ | 1.10 | |||||||
| Cash flow from operating activities | $ | 15.0 | $ | 30.0 | |||||||
| Adjusted free cash flow | $ | (10.0) | $ | 5.0 | |||||||
Please see the supplemental presentation relating to the third quarter 2022 on our Company's website for a full outlook summary.
CONFERENCE CALL
A webcast and conference call has been scheduled for tomorrow, November 2, 2022, 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 third 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; manufacture and support of our heavy lift K-MAX® manned helicopter, the K-MAX TITAN unmanned helicopter and 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) 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:
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Adjusted EBITDA and Adjusted EBITDA margin - 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 6. Adjusted EBITDA and Adjusted EBITDA Margin (unaudited) | ||||||||||||||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||||||||||||||
| Thousands of U.S. dollars | September 30, 2022 | |||||||||||||||||||||||||||||||
| Consolidated | Engineered Products | Precision Products | Structures | Corp/Elims** | ||||||||||||||||||||||||||||
| 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 (income), 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 is shown on the Condensed Consolidated Statement of Earnings as their own line items.
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Table 7. Adjusted EBITDA and Adjusted EBITDA margin (unaudited) | ||||||||||||||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||||||||||||||
| Thousands of U.S. dollars | July 1, 2022 | |||||||||||||||||||||||||||||||
| Consolidated | Engineered Products | Precision Products | Structures | Corp/Elims** | ||||||||||||||||||||||||||||
| Net sales | $ | 160,766 | $ | 89,765 | $ | 41,267 | $ | 29,734 | $ | — | ||||||||||||||||||||||
| Net earnings | 4,064 | |||||||||||||||||||||||||||||||
| Interest expense, net | 1,993 | |||||||||||||||||||||||||||||||
| Income tax expense (benefit) | 557 | |||||||||||||||||||||||||||||||
| Non-service pension and post retirement benefit income | (5,024) | |||||||||||||||||||||||||||||||
| Other expense (income), net | 690 | |||||||||||||||||||||||||||||||
| Operating income (loss) | $ | 2,280 | $ | 15,467 | $ | 2,550 | $ | (830) | $ | (14,907) | ||||||||||||||||||||||
| Depreciation and amortization | 8,822 | 6,147 | 1,043 | 887 | 745 | |||||||||||||||||||||||||||
| Restructuring and severance costs | 2,927 | — | — | — | 2,927 | |||||||||||||||||||||||||||
| Cost associated with corporate development activities | 2,400 | — | — | — | 2,400 | |||||||||||||||||||||||||||
| Other Adjustments | $ | 14,149 | $ | 6,147 | $ | 1,043 | $ | 887 | $ | 6,072 | ||||||||||||||||||||||
| Adjusted EBITDA | $ | 16,429 | $ | 21,614 | $ | 3,593 | $ | 57 | $ | (8,835) | ||||||||||||||||||||||
| Adjusted EBITDA margin | 10.2 | % | 24.1 | % | 8.7 | % | 0.2 | % | ||||||||||||||||||||||||
**Corp/Elims Operating income (loss) represents the Corporate office expenses and $2.9 million of unallocated expenses that are shown on the Condensed Consolidated Statement of Earnings as their own line items.
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Table 8. Adjusted EBITDA and Adjusted EBITDA margin (unaudited) | ||||||||||||||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||||||||||||||
| Thousands of U.S. dollars | October 1, 2021 | |||||||||||||||||||||||||||||||
| Consolidated | Engineered Products | Precision Products | Structures | Corp/Elims** | ||||||||||||||||||||||||||||
| Net sales | $ | 179,836 | $ | 84,399 | $ | 63,584 | $ | 31,853 | $ | — | ||||||||||||||||||||||
| Net earnings | 14,667 | |||||||||||||||||||||||||||||||
| Interest expense, net | 3,646 | |||||||||||||||||||||||||||||||
| Income tax expense (benefit) | 4,447 | |||||||||||||||||||||||||||||||
| Non-service pension and post retirement benefit income | (6,612) | |||||||||||||||||||||||||||||||
| Income from TSA | (14) | |||||||||||||||||||||||||||||||
| Other expense (income), net | (172) | |||||||||||||||||||||||||||||||
| Operating income (loss) | $ | 15,962 | $ | 14,931 | $ | 13,792 | $ | 330 | $ | (13,091) | ||||||||||||||||||||||
| Depreciation and amortization | 9,083 | 6,557 | 1,022 | 857 | 647 | |||||||||||||||||||||||||||
| Restructuring and severance costs | 2,611 | — | — | — | 2,611 | |||||||||||||||||||||||||||
| Costs associated with corporate development activities | 136 | — | — | — | 136 | |||||||||||||||||||||||||||
| Costs from transition service agreement | 24 | — | — | — | 24 | |||||||||||||||||||||||||||
| Other Adjustments | $ | 11,854 | $ | 6,557 | $ | 1,022 | $ | 857 | $ | 3,418 | ||||||||||||||||||||||
| Adjusted EBITDA | $ | 27,816 | $ | 21,488 | $ | 14,814 | $ | 1,187 | $ | (9,673) | ||||||||||||||||||||||
| Adjusted EBITDA margin | 15.5 | % | 25.5 | % | 23.3 | % | 3.7 | % | ||||||||||||||||||||||||
**Corp/Elims Operating income (loss) represents the Corporate office expenses and $2.6 million of unallocated expenses that are shown on the Condensed Consolidated Statement of Earnings as their own line items.
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Table 9. Adjusted EBITDA and Adjusted EBITDA margin (unaudited) | ||||||||||||||||||||||||||||||||
| Nine Months Ended | ||||||||||||||||||||||||||||||||
| Thousands of U.S. dollars | September 30, 2022 | |||||||||||||||||||||||||||||||
| Consolidated | Engineered Products | Precision Products | Structures | Corp/Elims** | ||||||||||||||||||||||||||||
| Net sales | $ | 490,818 | $ | 263,269 | $ | 135,098 | $ | 92,451 | $ | — | ||||||||||||||||||||||
| Net earnings | 8,717 | |||||||||||||||||||||||||||||||
| Interest expense, net | 8,088 | |||||||||||||||||||||||||||||||
| Income tax expense (benefit) | 1,992 | |||||||||||||||||||||||||||||||
| Non-service pension and post retirement benefit income | (15,429) | |||||||||||||||||||||||||||||||
| Other expense (income), net | 2,415 | |||||||||||||||||||||||||||||||
| Operating income (loss) | $ | 5,783 | $ | 40,665 | $ | 11,689 | $ | (1,376) | $ | (45,195) | ||||||||||||||||||||||
| Depreciation and amortization | 27,037 | 19,230 | 2,878 | 2,663 | 2,266 | |||||||||||||||||||||||||||
| Restructuring and severance costs | 2,853 | — | — | — | 2,853 | |||||||||||||||||||||||||||
| Cost associated with corporate development activities | 13,253 | — | — | — | 13,253 | |||||||||||||||||||||||||||
| Inventory step-up associated with acquisition | 760 | 760 | — | — | — | |||||||||||||||||||||||||||
| (Gain) loss on sale of business | (457) | — | — | — | (457) | |||||||||||||||||||||||||||
| Other Adjustments | $ | 43,446 | $ | 19,990 | $ | 2,878 | $ | 2,663 | $ | 17,915 | ||||||||||||||||||||||
| Adjusted EBITDA | $ | 49,229 | $ | 60,655 | $ | 14,567 | $ | 1,287 | $ | (27,280) | ||||||||||||||||||||||
| Adjusted EBITDA margin | 10.0 | % | 23.0 | % | 10.8 | % | 1.4 | % | ||||||||||||||||||||||||
**Corp/Elims Operating income (loss) represents the Corporate office expenses and $2.5 million of unallocated expenses that are shown on the Condensed Consolidated Statement of Earnings as their own line items.
9
Table 10. Adjusted EBITDA and Adjusted EBITDA margin (unaudited) | ||||||||||||||||||||||||||||||||
| Nine Months Ended | ||||||||||||||||||||||||||||||||
| Thousands of U.S. dollars | October 1, 2021 | |||||||||||||||||||||||||||||||
| Consolidated | Engineered Products | Precision Products | Structures | Corp/Elims** | ||||||||||||||||||||||||||||
| Net sales | $ | 533,846 | $ | 235,134 | $ | 195,656 | $ | 103,056 | $ | — | ||||||||||||||||||||||
| Net earnings | $ | 34,507 | ||||||||||||||||||||||||||||||
| Interest expense, net | 12,232 | |||||||||||||||||||||||||||||||
| Income tax expense (benefit) | 10,156 | |||||||||||||||||||||||||||||||
| Non-service pension and post retirement benefit income | (19,832) | |||||||||||||||||||||||||||||||
| Income from TSA | (931) | |||||||||||||||||||||||||||||||
| Other expense (income), net | 275 | |||||||||||||||||||||||||||||||
| Operating income (loss) | $ | 36,407 | $ | 29,595 | $ | 46,274 | $ | (871) | $ | (38,591) | ||||||||||||||||||||||
| Depreciation and amortization | 27,474 | 19,726 | 3,107 | 2,573 | 2,068 | |||||||||||||||||||||||||||
| Restructuring and severance costs | 5,479 | — | — | — | 5,479 | |||||||||||||||||||||||||||
| Costs from transition service agreement | 1,728 | — | — | — | 1,728 | |||||||||||||||||||||||||||
| Cost associated with corporate development activities | 551 | — | — | — | 551 | |||||||||||||||||||||||||||
| (Gain) loss on sale of business | 234 | — | — | — | 234 | |||||||||||||||||||||||||||
| Other Adjustments | $ | 35,466 | $ | 19,726 | $ | 3,107 | $ | 2,573 | $ | 10,060 | ||||||||||||||||||||||
| Adjusted EBITDA | $ | 71,873 | $ | 49,321 | $ | 49,381 | $ | 1,702 | $ | (28,531) | ||||||||||||||||||||||
| Adjusted EBITDA margin | 13.5 | % | 21.0 | % | 25.2 | % | 1.7 | % | ||||||||||||||||||||||||
10
Adjusted Net Earnings and Adjusted Diluted Earnings Per Share - Adjusted net earnings and adjusted diluted earnings per share are defined as GAAP "Net earnings" and "Diluted earnings per share", less items that are not indicative of the operating performance of the business for the periods presented. Management uses adjusted net earnings 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 net earnings and adjusted diluted earnings per share:
| Table 11. Adjusted Net Earnings and Adjusted Diluted Earnings per Share (unaudited) | ||||||||||||||||||||||||||||||||||||||
| Thousands of U.S. dollars (except share data) | ||||||||||||||||||||||||||||||||||||||
| Three Months Ended | Three Months Ended | |||||||||||||||||||||||||||||||||||||
| September 30, 2022 | October 1, 2021 | |||||||||||||||||||||||||||||||||||||
| Pre-Tax | Tax-Effected | Diluted EPS | Pre-Tax | Tax-Effected | Diluted EPS | |||||||||||||||||||||||||||||||||
| Net earnings | $ | 753 | $ | 625 | $ | 0.02 | $ | 19,114 | $ | 14,667 | $ | 0.53 | ||||||||||||||||||||||||||
| Adjustments: | ||||||||||||||||||||||||||||||||||||||
| Restructuring and severance costs | (243) | (189) | (0.01) | 2,611 | 2,003 | 0.07 | ||||||||||||||||||||||||||||||||
| Costs associated with corporate development activities | 10,725 | 8,363 | 0.30 | 136 | 104 | — | ||||||||||||||||||||||||||||||||
| Inventory step-up associated with acquisition | 760 | 593 | 0.02 | — | — | — | ||||||||||||||||||||||||||||||||
| Costs from transition services agreement | — | — | — | 24 | 18 | — | ||||||||||||||||||||||||||||||||
| Income from transition services agreement | — | — | — | (14) | (11) | — | ||||||||||||||||||||||||||||||||
| (Gain) loss on sale of business | (457) | (356) | (0.01) | — | — | — | ||||||||||||||||||||||||||||||||
| Adjustments | $ | 10,785 | $ | 8,411 | $ | 0.30 | $ | 2,757 | $ | 2,114 | $ | 0.07 | ||||||||||||||||||||||||||
| Adjusted net earnings | $ | 11,538 | $ | 9,036 | $ | 0.32 | $ | 21,871 | $ | 16,781 | $ | 0.60 | ||||||||||||||||||||||||||
| Diluted weighted average shares outstanding | 28,088 | 27,888 | ||||||||||||||||||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||||||||||||||||||||
| July 1, 2022 | ||||||||||||||||||||||||||||||||||||||
| Pre-Tax | Tax-Effected | Diluted EPS | ||||||||||||||||||||||||||||||||||||
| Net earnings | $ | 4,621 | $ | 4,064 | $ | 0.14 | ||||||||||||||||||||||||||||||||
| Adjustments: | ||||||||||||||||||||||||||||||||||||||
| Restructuring and severance costs | 2,927 | 2,574 | 0.09 | |||||||||||||||||||||||||||||||||||
| Costs associated with corporate development activities | 2,400 | 2,111 | 0.08 | |||||||||||||||||||||||||||||||||||
| Adjustments | $ | 5,327 | $ | 4,685 | $ | 0.17 | ||||||||||||||||||||||||||||||||
| Adjusted net earnings | $ | 9,948 | $ | 8,749 | $ | 0.31 | ||||||||||||||||||||||||||||||||
| Diluted weighted average shares outstanding | 28,059 | |||||||||||||||||||||||||||||||||||||
11
| Table 12. Adjusted Net Earnings and Adjusted Diluted Earnings per Share (unaudited) | ||||||||||||||||||||||||||||||||||||||
| Thousands of U.S. dollars (except share data) | ||||||||||||||||||||||||||||||||||||||
| Nine Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||
| September 30, 2022 | October 1, 2021 | |||||||||||||||||||||||||||||||||||||
| Pre-Tax | Tax-Effected | Diluted EPS | Pre-Tax | Tax-Effected | Diluted EPS | |||||||||||||||||||||||||||||||||
| Net earnings | $ | 10,709 | $ | 8,717 | $ | 0.31 | $ | 44,663 | $ | 34,507 | $ | 1.24 | ||||||||||||||||||||||||||
| Adjustments: | ||||||||||||||||||||||||||||||||||||||
| Restructuring and severance costs | 2,853 | 2,225 | 0.08 | 5,479 | 4,280 | 0.15 | ||||||||||||||||||||||||||||||||
| Costs associated with corporate development activities | 13,253 | 10,334 | 0.37 | 551 | 432 | 0.02 | ||||||||||||||||||||||||||||||||
| Inventory step-up associated with acquisition | 760 | 593 | 0.02 | — | — | — | ||||||||||||||||||||||||||||||||
| Costs from transition services agreement | — | — | — | 1,728 | 1,370 | 0.05 | ||||||||||||||||||||||||||||||||
| Income from transition services agreement | — | — | — | (931) | (739) | (0.03) | ||||||||||||||||||||||||||||||||
| Tax expense on sale of UK operations | — | — | — | 287 | 287 | 0.01 | ||||||||||||||||||||||||||||||||
| (Gain) loss on sale of business | (457) | (356) | (0.01) | 234 | 234 | 0.01 | ||||||||||||||||||||||||||||||||
| Adjustments | $ | 16,409 | $ | 12,796 | $ | 0.46 | $ | 7,348 | $ | 5,864 | $ | 0.21 | ||||||||||||||||||||||||||
| Adjusted net earnings | $ | 27,118 | $ | 21,513 | $ | 0.77 | $ | 52,011 | $ | 40,371 | $ | 1.45 | ||||||||||||||||||||||||||
| Diluted weighted average shares outstanding | 28,076 | 27,889 | ||||||||||||||||||||||||||||||||||||
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 13. Free Cash Flow (unaudited) | ||||||||||||||||||||||||||||||||
| Thousands of U.S. dollars | Three Months Ended | Last Twelve Months | ||||||||||||||||||||||||||||||
| December 31, 2021 | April 1, 2022 | July 1, 2022 | September 30, 2022 | September 30, 2022 | ||||||||||||||||||||||||||||
| Net cash provided by (used in) operating activities | $ | 34,575 | $ | (1,017) | $ | (25,937) | $ | (6,746) | $ | 875 | ||||||||||||||||||||||
| Expenditures for property, plant & equipment | (6,166) | (6,877) | (3,643) | (7,106) | (23,792) | |||||||||||||||||||||||||||
| Free cash flow | $ | 28,409 | $ | (7,894) | $ | (29,580) | $ | (13,852) | $ | (22,917) | ||||||||||||||||||||||
12
FORWARD-LOOKING STATEMENTS
This release 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 and the receipt of orders for new aircraft sufficient to recover our investments in the K-MAX® production line; (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, including the ultimate determination of the USG's share of any pension curtailment adjustment calculated in accordance with CAS 413; (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
13
uncertainties set forth herein and in our 2021 Form 10-K and our third quarter 2022 Form 10-Q filed November 1, 2022.
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.
Contact:
Kary Bare
Investor Relations
(860) 243-7485
kary.bare@kaman.com
14
KAMAN CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(Thousands of U.S. dollars, except share data) (unaudited)
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
| September 30, 2022 | October 1, 2021 | September 30, 2022 | October 1, 2021 | |||||||||||||||||||||||
| Net sales | $ | 172,004 | $ | 179,836 | $ | 490,818 | $ | 533,846 | ||||||||||||||||||
| Cost of sales | 116,179 | 116,771 | 332,299 | 355,930 | ||||||||||||||||||||||
| Gross profit | 55,825 | 63,065 | 158,519 | 177,916 | ||||||||||||||||||||||
| Selling, general and administrative expenses | 49,009 | 39,335 | 127,980 | 116,182 | ||||||||||||||||||||||
| Research and development costs | 3,937 | 2,540 | 14,265 | 10,004 | ||||||||||||||||||||||
| Intangible asset amortization expense | 3,118 | 2,624 | 8,024 | 7,898 | ||||||||||||||||||||||
| Costs from transition services agreement | — | 24 | — | 1,728 | ||||||||||||||||||||||
| Restructuring and severance costs | (243) | 2,611 | 2,853 | 5,479 | ||||||||||||||||||||||
| (Gain) loss on sale of business | (457) | — | (457) | 234 | ||||||||||||||||||||||
| Net loss (gain) on sale of assets | 15 | (31) | 71 | (16) | ||||||||||||||||||||||
| Operating income | 446 | 15,962 | 5,783 | 36,407 | ||||||||||||||||||||||
| Interest expense, net | 3,614 | 3,646 | 8,088 | 12,232 | ||||||||||||||||||||||
| Non-service pension and post retirement benefit income | (5,142) | (6,612) | (15,429) | (19,832) | ||||||||||||||||||||||
| Income from transition services agreement | — | (14) | — | (931) | ||||||||||||||||||||||
| Other income, net | 1,221 | (172) | 2,415 | 275 | ||||||||||||||||||||||
| Net earnings before income taxes | 753 | 19,114 | 10,709 | 44,663 | ||||||||||||||||||||||
| Income tax expense | 128 | 4,447 | 1,992 | 10,156 | ||||||||||||||||||||||
| Net earnings | $ | 625 | $ | 14,667 | $ | 8,717 | $ | 34,507 | ||||||||||||||||||
| Earnings per share: | ||||||||||||||||||||||||||
| Basic earnings per share | $ | 0.02 | $ | 0.53 | $ | 0.31 | $ | 1.24 | ||||||||||||||||||
| Diluted earnings per share | $ | 0.02 | $ | 0.53 | $ | 0.31 | $ | 1.24 | ||||||||||||||||||
| Average shares outstanding: | ||||||||||||||||||||||||||
| Basic | 28,037 | 27,882 | 27,997 | 27,855 | ||||||||||||||||||||||
| Diluted | 28,088 | 27,888 | 28,076 | 27,889 | ||||||||||||||||||||||
15
KAMAN CORPORATION AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(Thousands of U.S. dollars, except share data) (unaudited)
| September 30, 2022 | December 31, 2021 | |||||||||||||
| Assets | ||||||||||||||
| Current assets: | ||||||||||||||
| Cash and cash equivalents | $ | 31,358 | $ | 140,800 | ||||||||||
| Accounts receivable, net | 102,477 | 73,524 | ||||||||||||
| Contract assets | 117,828 | 112,354 | ||||||||||||
| Contract costs, current portion | 822 | 850 | ||||||||||||
| Inventories | 221,815 | 193,100 | ||||||||||||
| Income tax refunds receivable | 15,865 | 13,832 | ||||||||||||
| Other current assets | 15,749 | 12,083 | ||||||||||||
| Total current assets | 505,914 | 546,543 | ||||||||||||
Property, plant and equipment, net of accumulated depreciation of $260,640 and $251,888, respectively | 198,866 | 197,822 | ||||||||||||
| Operating right-of-use assets, net | 7,523 | 11,011 | ||||||||||||
| Goodwill | 390,734 | 240,681 | ||||||||||||
| Other intangible assets, net | 385,478 | 138,074 | ||||||||||||
| Deferred income taxes | 15,711 | 15,717 | ||||||||||||
| Contract costs, noncurrent portion | 9,865 | 10,249 | ||||||||||||
| Investment in Near Earth Autonomy | 10,000 | — | ||||||||||||
| Other assets | 40,443 | 38,385 | ||||||||||||
| Total assets | $ | 1,564,534 | $ | 1,198,482 | ||||||||||
| Liabilities and Shareholders’ Equity | ||||||||||||||
| Current liabilities: | ||||||||||||||
| Accounts payable – trade | $ | 37,267 | $ | 42,134 | ||||||||||
| Accrued salaries and wages | 31,952 | 38,892 | ||||||||||||
| Contract liabilities, current portion | 3,932 | 2,945 | ||||||||||||
| Operating lease liabilities, current portion | 3,633 | 4,502 | ||||||||||||
| Income taxes payable | 183 | 386 | ||||||||||||
| Other current liabilities | 38,404 | 32,076 | ||||||||||||
| Total current liabilities | 115,371 | 120,935 | ||||||||||||
| Long-term debt, excluding current portion, net of debt issuance costs | 609,800 | 189,421 | ||||||||||||
| Deferred income taxes | 6,194 | 6,506 | ||||||||||||
| Underfunded pension | 5,574 | 21,786 | ||||||||||||
| Contract liabilities, noncurrent portion | 20,477 | 16,528 | ||||||||||||
| Operating lease liabilities, noncurrent portion | 4,569 | 7,140 | ||||||||||||
| Other long-term liabilities | 35,940 | 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; 30,620,003 and 30,434,269 shares issued, respectively | 30,620 | 30,434 | ||||||||||||
| Additional paid-in capital | 243,330 | 248,153 | ||||||||||||
| Retained earnings | 749,007 | 750,445 | ||||||||||||
| Accumulated other comprehensive income (loss) | (134,256) | (111,385) | ||||||||||||
Less 2,604,564 and 2,573,896 shares of common stock, respectively, held in treasury, at cost | (122,092) | (121,318) | ||||||||||||
| Total shareholders’ equity | 766,609 | 796,329 | ||||||||||||
| Total liabilities and shareholders’ equity | $ | 1,564,534 | $ | 1,198,482 | ||||||||||
16
KAMAN CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(Thousands of U.S. dollars) (unaudited)
| Nine Months Ended | ||||||||||||||
| September 30, 2022 | October 1, 2021 | |||||||||||||
| Cash flows from operating activities: | ||||||||||||||
| Net earnings | $ | 8,717 | $ | 34,507 | ||||||||||
| Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: | ||||||||||||||
| Depreciation and amortization | 27,037 | 27,474 | ||||||||||||
| Amortization of debt issuance costs | 1,882 | 1,406 | ||||||||||||
| Accretion of convertible notes discount | — | 2,191 | ||||||||||||
| Provision for doubtful accounts | 619 | 373 | ||||||||||||
| (Gain) loss on sale of business | (457) | 234 | ||||||||||||
| Net loss (gain) on sale of assets | 71 | (16) | ||||||||||||
| Net loss on derivative instruments | 2,670 | 815 | ||||||||||||
| Stock compensation expense | 6,145 | 5,684 | ||||||||||||
| Non-cash consideration received for blade exchange | (827) | — | ||||||||||||
| Deferred income taxes | 1,600 | 4,822 | ||||||||||||
| Changes in assets and liabilities, excluding effects of acquisitions/divestitures: | ||||||||||||||
| Accounts receivable | (23,640) | 71,434 | ||||||||||||
| Contract assets | (5,405) | (19,940) | ||||||||||||
| Contract costs | 452 | (99) | ||||||||||||
| Inventories | (21,187) | (12,435) | ||||||||||||
| Income tax refunds receivable | (2,040) | 3,145 | ||||||||||||
| Operating right of use assets | 3,347 | 1,739 | ||||||||||||
| Other assets | (3,682) | 1,042 | ||||||||||||
| Accounts payable - trade | (8,780) | (21,829) | ||||||||||||
| Contract liabilities | 4,246 | (24,036) | ||||||||||||
| Operating lease liabilities | (3,296) | (1,810) | ||||||||||||
| Acquired retention plan payments | — | (25,108) | ||||||||||||
| Other current liabilities | (4,591) | (2,698) | ||||||||||||
| Income taxes payable | (227) | 1,173 | ||||||||||||
| Pension liabilities | (13,309) | (29,256) | ||||||||||||
| Other long-term liabilities | (3,045) | (4,689) | ||||||||||||
| Net cash used in operating activities | (33,700) | 14,123 | ||||||||||||
| Cash flows from investing activities: | ||||||||||||||
| Proceeds from sale of business, net of cash on hand | 1,200 | (3,428) | ||||||||||||
| Expenditures for property, plant & equipment | (17,626) | (11,364) | ||||||||||||
| Investment in Near Earth Autonomy | (10,000) | — | ||||||||||||
| Acquisition of businesses | (441,340) | — | ||||||||||||
| Other, net | 1,238 | (502) | ||||||||||||
| Net cash used in investing activities | (466,528) | (15,294) | ||||||||||||
| Cash flows from financing activities: | ||||||||||||||
| Net borrowings under revolving credit agreement | 412,000 | — | ||||||||||||
| Purchase of treasury shares | (762) | (459) | ||||||||||||
| Dividends paid | (16,760) | (16,672) | ||||||||||||
| Debt issuance costs | (4,285) | — | ||||||||||||
| Other, net | 1,725 | 4,086 | ||||||||||||
| Net cash provided by (used in) financing activities | 391,918 | (13,045) | ||||||||||||
| Net decrease in cash and cash equivalents | (108,310) | (14,216) | ||||||||||||
| Effect of exchange rate changes on cash and cash equivalents | (1,132) | (415) | ||||||||||||
| 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 | $ | 31,358 | $ | 121,458 | ||||||||||
17