Exhibit 99.1
NEWS RELEASE
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Hexcel Corporation, 281 Tresser Boulevard, Stamford, CT 06901 (203) 969-0666
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Contact: Investors:
Stephen C. Forsyth
(203) 969-0666 ext. 425
[email protected]
Media:
Michael Bacal
(203) 969-0666 ext. 426
[email protected]
HEXCEL REPORTS 2000 FOURTH QUARTER AND YEAR-END RESULTS
Adjusted EBITDA is $37.1 million for the Fourth Quarter
and $144.9 million for the Year
2000 Net Income, Adjusted to Exclude the Gain on the Sale of the Bellingham
Aircraft Interiors Business and Business Consolidation Expenses, is
$17.2 million or $0.46 per Diluted Share
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<CAPTION>
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QUARTER ENDED DECEMBER 31, YEAR ENDED DECEMBER 31,
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<S> <C> <C> <C> <C>
(In millions, except per share data) 2000 1999 2000 1999
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PRO FORMA (a):
Sales $256.9 $247.3 $1,036.8 $1,081.5
Adjusted EBITDA (b) $37.1 $26.4 $144.0 $141.3
Adjusted net income (loss) (c) $5.0 $(2.3) $18.8 $9.7
Adjusted diluted earnings (loss) per share $0.13 $(0.06) $0.50 $0.27
(c)
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AS REPORTED:
Sales $256.9 $268.6 $1,055.7 $1,151.5
Gross margin % 22.2% 20.1% 21.9% 21.1%
Adjusted operating income % (c) 8.8% 6.1% 8.2% 7.7%
Adjusted EBITDA (b) $37.1 $30.7 $144.9 $150.4
Net income (loss) $1.0 $(2.7) $54.2 $(23.3)
Adjusted net income (loss) (c) $5.0 $(1.2) $17.2 $9.6
Diluted earnings (loss) per share $0.03 $(0.07) $1.32 $(0.64)
Adjusted diluted earnings (loss) per share (c) $0.13 $(0.03) $0.46 $0.26
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(a) Pro forma results give effect to the April 26, 2000 sale of the Bellingham
aircraft interiors business as if the transaction had occurred at the
beginning of the period.
(b) Excludes business consolidation expenses, interest, taxes, depreciation,
amortization, and equity in earnings and a write-down of an investment in
affiliated companies.
(c) Excludes business consolidation expenses, the gain on the disposal of the
Bellingham business, and a write-down of an investment in an affiliated
company in 1999.
STAMFORD, CT, January 18, 2001 - Hexcel Corporation (NYSE/PCX: HXL) today
reported results for the fourth quarter of 2000. Net income for the 2000 fourth
quarter was $1.0 million, compared with a net loss of $2.7 million for the
fourth quarter of 1999. Net income adjusted to exclude business consolidation
expenses was $5.0 million for the fourth quarter of 2000, or $0.13 per diluted
share, versus a comparably adjusted net loss of $1.2 million, or $0.03 per
diluted share, for the fourth quarter of 1999. Results for the 2000 fourth
quarter include $3.3 million of after-tax income attributable to certain changes
in the Company's U.S. retirement benefit plans, and $1.4 million of after-tax
expenses incurred in connection with the purchase by an investor group led by
Goldman Sachs of approximately 14.5 million shares of Hexcel common stock from
Ciba Specialty Chemicals.
Adjusted EBITDA for the fourth quarter of 2000 was $37.1 million, including $2.9
million contributed by changes in U.S. retirement benefit plans, net of the
costs resulting from the purchase of Hexcel common stock by the Goldman Sachs
investor group. Adjusted EBITDA for the fourth quarter of 1999 was $30.7
million, of which $4.3 million was attributable to the Bellingham aircraft
interiors business that the Company sold on April 26, 2000.
For the year, net income was $54.2 million, compared with a net loss of $23.3
million for 1999. Net income adjusted to exclude business consolidation expenses
and the $44 million after-tax gain from the sale of the Bellingham aircraft
interiors business was $17.2 million for 2000, or $0.46 per diluted share.
Comparably adjusted net income for 1999 was $9.6 million, or $0.26 per diluted
share.
Adjusted EBITDA for 2000 was $144.9 million, of which $0.9 million was
attributable to the Bellingham aircraft interiors business. For 1999, Adjusted
EBITDA was $150.4 million, of which $9.1 million was attributable to the
Bellingham business.
CHAIRMAN'S COMMENTS
Mr. John J. Lee, Chairman and CEO, observed, "Fourth quarter operational
performance was in line with our expectations. We began to make improvements in
the performance of our engineered products business, but we still have a way to
go to return this business segment to its historic performance levels. Revenues
from the sale of electronic glass fabrics remained buoyant and commercial
aerospace revenues showed some growth compared to the fourth quarter of 1999 on
a constant currency basis."
Mr. Lee continued, "The improvement in Adjusted EBITDA in the fourth quarter of
2000 compared to the fourth quarter of 1999 demonstrates the progress the
Company has made in the last year. In 2000 we have seen the benefits from our
strategy of growth from diversification, with electronics, ballistic protection,
automotive and wind energy markets all contributing to increased profitability.
In addition, we have seen the benefit from cost reductions resulting from our
business consolidation and lean initiatives. Meanwhile, commercial aerospace
market demand has stabilized, providing us with a platform from which to grow in
2001. The Bellingham transaction earlier in the year enabled us to significantly
reduce the Company's debt. All of these factors have contributed to the strong
earnings improvement during the year."
<PAGE>
REVENUE TRENDS
Revenue of $256.9 million for the fourth quarter of 2000 was 4% higher than 1999
fourth quarter pro forma revenue of $247.3 million, which gives effect to the
sale of the Bellingham aircraft interiors business as if it had occurred at the
beginning of the period. Had the same U.S. dollar, British pound and Euro
exchange rates applied in the fourth quarter of 2000 as in the fourth quarter of
1999, revenue for the 2000 quarter would have been $271.4 million, or 10% higher
than the pro forma total for the 1999 quarter. This revenue growth primarily
reflects:
o Increased sales of composite materials for use on certain space and
defense programs, including military helicopter, transport and munitions
programs.
o Continued growth in sales of lightweight reinforcement fabrics for use in
multi-layer printed wiring boards, driven by strong worldwide demand for
increasingly sophisticated electronic devices. Hexcel has undertaken an
expansion of its lightweight glass fabric manufacturing capacity in order
to satisfy customer demand for materials used in high-performance
applications.
o Higher sales of reinforcement fabrics for soft body armor, and growing
sales of composite materials to automotive, wind energy and ski and
snowboard customers.
For the year, 2000 pro forma revenue of $1,036.8 million was 4% lower than 1999
pro forma revenue of $1,081.5 million. Adjusting for changes in currency
exchange rates, 2000 pro forma revenue would have been $1,082.3 million, roughly
equivalent to 1999 pro forma revenue. Commercial aerospace revenues in 2000 were
lower than 1999 as a result of Boeing's reduction in aircraft production rates,
combined with some product substitutions and price reductions on certain
products. Sales to space and defense markets were lower as the result of the
phase out of a military program and the continued weakness in the satellite and
launch vehicle markets. In constant currency terms, these revenue reductions
were offset by the strong growth in sales to electronics, ballistics protection,
automotive and wind energy markets.
GROSS MARGIN AND ADJUSTED OPERATING INCOME
Gross margin for the fourth quarter of 2000 was $57.0 million or 22.2% of sales,
compared with $48.4 million or 19.6% of sales on a pro forma basis for the
fourth quarter of 1999. Operating income, adjusted to exclude business
consolidation expenses, was $22.5 million for the 2000 quarter, or 8.8% of
sales. This represents a significant improvement over pro forma adjusted
operating income for the fourth quarter of 1999 of $12.5 million or 5.1% of
sales. The increases in gross margin and adjusted operating income reflect the
impact of increased sales to attractive electronics and industrial markets, as
well as cost reductions resulting from Hexcel's business consolidation and lean
enterprise initiatives. The fourth quarter of 2000 also benefited from the
impact of changes in U.S. retirement benefit plans which, net of the costs
incurred in connection with the purchase of Hexcel common stock by the Goldman
Sachs investor group, contributed $2.9 million of adjusted operating income.
For the full year, on a pro forma basis to reflect the sale of Bellingham, 2000
gross margin was $226.8 million or 21.9% of sales, compared to $227.6 million or
21.0% of sales for 1999. Pro forma adjusted operating income was $86.0 million
or 8.3% of sales for 2000, versus $81.0 million or 7.5% of sales for 1999.
BUSINESS CONSOLIDATION ACTIVITIES
During the fourth quarter of 2000, Hexcel incurred $6.4 million of business
consolidation expenses, including $3.5 million resulting from the decision to
add two further actions to the program. In light of the success of the business
consolidation program, Hexcel has concluded to close the two smaller of its four
U.S. prepreg manufacturing facilities - one in Lancaster, Ohio and another in
Gilbert, Arizona. The manufacturing output from these two plants will now be
produced by the two remaining U.S. prepreg facilities in Livermore, California
and Salt Lake City, Utah. The Company expects to incur a total of $4 million in
cash costs and $3 million in non-cash charges to close the two facilities, and
anticipates recognizing additional business consolidation expenses for these
actions over the next eighteen months of $2.4 million. The closing of these two
facilities is expected to generate additional cost savings of more than $4
million per year.
Hexcel's previously announced business consolidation initiatives have continued
as planned, and are expected to be completed in early 2002. Total business
consolidation expenses were $10.9 million for 2000, compared with $20.1 million
for 1999, while cash expenditures for business consolidation activities totaled
$11.8 million and $9.5 million for each year, respectively.
EQUITY IN EARNINGS OF AFFILIATED COMPANIES
Equity in earnings of affiliated companies for the 2000 fourth quarter were $1.6
million, reflecting the strong performance of Hexcel's electronics fabrics
venture in Asia, partially offset by the initial start-up costs of the Company's
engineered products ventures in China and Malaysia. For the year, equity in
earnings were $5.5 million for 2000, compared with equity in losses and a
write-down of an investment in an affiliated company totaling $20.0 million for
1999.
OUTLOOK
Mr. Lee continued, "Like most companies we are carefully watching to see if
changes in the global economy will affect the outlook for any of our markets in
2001. The most recent aircraft delivery projections from Airbus and Boeing
suggest we can expect modest growth in commercial aerospace revenues during the
year. The ramp up of funded new military aircraft programs should start to make
a contribution before the end of 2001, despite continued weakness in satellite
and launch vehicle markets. While the industry outlook for both the electronics
and automotive markets is harder to predict, we continue to expect year-on-year
growth from the sale of our products to these markets as well as the wind energy
market. The consolidated effect of these trends is anticipated to be a return to
revenue growth for Hexcel in 2001."
"At the same time," noted Mr. Lee, "our cost reduction activities should enable
us to continue to gradually but steadily improve our operating margins and
EBITDA. In 2001, the equity earnings from our joint ventures will be lower than
in 2000. While we expect our existing joint ventures to continue to perform
well, we will reflect the start-up losses of the China and Malaysia joint
ventures as they ramp up their manufacturing operations. The consolidated impact
of these performance trends will be further growth in the Hexcel's net earnings
and earnings per share in 2001 over that achieved in 2000."
Mr. Lee observed, "Hexcel remains committed to generating free cash flow to
repay debt. While seasonal factors will cause the Company to use cash in the
first quarter as it has in prior years, we anticipate generating cash over the
balance of the year. Capital expenditures are planned at a level of
approximately $50 million for 2001, but actual spending will be carefully
controlled against the outlook for the Company's markets."
Mr. Lee concluded, "2000 has been a successful year of transition. Our
initiatives to develop industrial markets for our products have resulted in
stable year-on-year revenues for the Company despite the cyclical decline in
commercial aerospace demand. The implementation of our cost reduction
initiatives has driven margin improvement and we have considerably reduced our
debt. As a result, we have delivered a significant improvement in earnings.
Hexcel now looks forward to 2001 with excitement as the Company returns to
growth. Higher revenues in many of the markets we serve combined with the
continued benefit of cost reduction will deliver further earnings improvements."
* * *
Hexcel Corporation is the world's leading advanced structural materials company.
It develops, manufactures and markets lightweight, high-performance
reinforcement products, composite materials and engineered products for use in
commercial aerospace, space and defense, electronics, and industrial
applications.
DISCLAIMER ON FORWARD LOOKING STATEMENTS
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This press release contains statements that are forward looking, including
statements relating to market conditions (including commercial and military
aircraft build rates and demand for electronics and industrial products), sales
volumes, cost reductions, production efficiencies and improvements, business
consolidation activities, EBITDA, equity in earnings of joint ventures, net
earnings, earnings per share, free cash flow and capital expenditures. These
statements are not projections or assured results. Actual results may differ
materially from the results anticipated in the forward looking statements due to
a variety of factors, including but not limited to, changing market conditions,
increased competition, product mix, inability to achieve planned manufacturing
improvements and cost reductions, and changes in currency exchange rates.
Additional risk factors are described in the Company's filings with the SEC. The
Company does not undertake an obligation to update its forward looking
statements to reflect future events or circumstances.
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13
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HEXCEL CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
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UNAUDITED
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QUARTER ENDED DECEMBER 31, YEAR-ENDED DECEMBER 31,
<S> <C> <C> <C> <C>
(In millions, except per share data) 2000 1999 2000 1999
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Net sales $ 256.9 $ 268.6 $1,055.7 $ 1,151.5
Cost of sales 199.9 214.6 824.3 909.0
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Gross margin 57.0 54.0 231.4 242.5
Selling, general and administrative expenses 29.9 31.3 123.9 128.7
Research and technology expenses 4.6 6.2 21.2 24.8
Business consolidation expenses 6.4 2.3 10.9 20.1
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Operating income 16.1 14.2 75.4 68.9
Gain on sale of
Bellingham aircraft interiors business - - 68.3 -
Interest expense 17.1 18.0 68.7 73.9
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Income (loss) before income taxes (1.0) (3.8) 75.0 (5.0)
Provision for (benefit from) income taxes (0.4) (1.3) 26.3 (1.7)
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Income (loss) before equity in earnings (0.6) (2.5) 48.7 (3.3)
Equity in earnings (loss) and write-down of an
investment in affiliated companies 1.6 (0.2) 5.5 (20.0)
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Net income (loss) $ 1.0 $ (2.7) $ 54.2 $ (23.3)
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Net income (loss) per share:
Basic $ 0.03 $ (0.07) $ 1.47 $ (0.64)
Diluted 0.03 (0.07) 1.32 (0.64)
Diluted, excluding goodwill amortization 0.08 (0.01) 1.51 (0.40)
Weighted average shares:
Basic 37.0 36.5 36.8 36.4
Diluted 38.1 36.5 45.7 36.4
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</TABLE>
The Company's convertible subordinated notes, due 2003, and its convertible
subordinated debentures, due 2011, were excluded from the 1999 and fourth
quarter 2000 computations of net income (loss) per diluted share, as they were
antidilutive.
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HEXCEL CORPORATION AND SUBSIDIARIES
ACTUAL AND PRO FORMA NET SALES TO THIRD-PARTY CUSTOMERS BY PRODUCT GROUP AND MARKET SEGMENT
------------------------------------------ -------------------------------------------------------------------------
UNAUDITED
------------- --------------- --------------- --------------- -----------
<S> <C> <C> <C> <C> <C>
COMMERCIAL SPACE &
(IN MILLIONS) AEROSPACE DEFENSE ELECTRONICS INDUSTRIAL TOTAL
------------------------------------------ ------------- --------------- --------------- --------------- -----------
FOURTH QUARTER 2000 NET SALES
Reinforcement products $ 13.6 $ 3.4 $ 46.1 $ 26.0 $ 89.1
Composite materials 86.2 25.2 - 29.0 140.4
Engineered products 24.9 2.5 - - 27.4
------------------------------------------ --- --------- ---- ---------- ------ -------- ---- --------- -- ---------
Total $ 124.7 $ 31.1 $ 46.1 $ 55.0 $ 256.9
49% 12% 18% 21% 100%
------------------------------------------ --- --------- ---- ---------- ------ -------- ---- --------- -- ---------
THIRD QUARTER 2000 NET SALES
Reinforcement products $ 14.3 $ 2.6 $ 44.7 $ 26.8 $ 88.4
Composite materials 80.0 24.3 - 28.8 133.1
Engineered products 23.9 2.1 - - 26.0
------------------------------------------ --- --------- ---- ---------- ------ -------- ---- --------- -- ---------
Total $ 118.2 $ 29.0 $ 44.7 $ 55.6 $ 247.5
48% 12% 18% 22% 100%
------------------------------------------ --- --------- ---- ---------- ------ -------- ---- --------- -- ---------
PRO FORMA FOURTH QUARTER 1999 NET SALES
Reinforcement products $ 10.9 $ 3.0 $ 41.3 $ 25.3 $ 80.5
Composite materials 85.6 19.7 - 30.5 135.8
Engineered products 28.2 2.8 - - 31.0
------------------------------------------ --- --------- ---- ---------- ------ -------- ---- --------- -- ---------
Total $ 124.7 $ 25.5 $ 41.3 $ 55.8 $ 247.3
50% 10% 17% 23% 100%
------------------------------------------ --- --------- ---- ---------- ------ -------- ---- --------- -- ---------
2000 PRO FORMA NET SALES
Reinforcement products $ 60.6 $ 13.6 $ 181.2 $ 103.8 $ 359.2
Composite materials 347.9 95.4 - 123.7 567.0
Engineered products 101.4 9.2 - - 110.6
------------------------------------------ --- --------- ---- ---------- ------ -------- ---- --------- -- ---------
Total $ 509.9 $ 118.2 $ 181.2 $ 227.5 $ 1,036.8
49% 11% 18% 22% 100%
------------------------------------------ --- --------- ---- ---------- ------ -------- ---- --------- -- ---------
1999 PRO FORMA NET SALES
Reinforcement products $ 52.0 $ 18.2 $ 166.4 $ 94.3 $ 330.9
Composite materials 387.9 101.0 - 117.0 605.9
Engineered products 131.7 13.0 - - 144.7
------------------------------------------ --- --------- ---- ---------- ------ -------- ---- --------- -- ---------
Total $ 571.6 $ 132.2 $ 166.4 $ 211.3 $ 1,081.5
53% 12% 15% 20% 100%
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HEXCEL CORPORATION AND SUBSIDIARIES
ACTUAL AND PRO FORMA SEGMENT DATA
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UNAUDITED
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<S> <C> <C> <C> <C> <C>
REINFORCEMENT COMPOSITE ENGINEERED CORPORATE
(In millions) PRODUCTS MATERIALS PRODUCTS & OTHER 1 TOTAL
------------------------------------- ----------------- --------------- -------------- ------------- ---------------
FOURTH QUARTER 2000
---------------------------------------- -- ----------- ---- ---------- --- ---------- -- ---------- --- -----------
Net sales to external customers $ 89.1 $ 140.4 $ 27.4 $ - $ 256.9
Intersegment sales 24.3 1.7 - - 26.0
---------------------------------------- -- ----------- ---- ---------- --- ---------- -- ---------- --- -----------
Total sales 113.4 142.1 27.4 - 282.9
Adjusted EBIT 2 11.6 16.3 1.1 (6.5) 22.5
Depreciation and amortization 8.6 4.5 0.7 0.8 14.6
Business consolidation expenses 0.6 5.7 0.1 - 6.4
Capital expenditures 7.1 9.5 0.2 0.6 17.4
---------------------------------------- ----------- ---- ---------- --- ---------- -- ---------- --- -----------
THIRD QUARTER 2000
---------------------------------------- -- ----------- ---- ---------- --- ---------- -- ---------- --- -----------
Net sales to external customers $ 88.4 $ 133.1 26.0 $ - $ 247.5
Intersegment sales 20.9 1.8 - - 22.7
---------------------------------------- -- ----------- ---- ---------- --- ---------- -- ---------- --- -----------
Total sales 109.3 134.9 26.0 - 270.2
Adjusted EBIT 11.4 14.7 0.2 (9.4) 16.9
Depreciation and amortization 8.3 4.5 0.7 0.6 14.1
Business consolidation expenses 0.2 2.7 0.4 - 3.3
Capital expenditures 4.2 4.1 0.4 0.5 9.2
---------------------------------------- -- ----------- ---- ---------- --- ---------- -- ---------- --- -----------
PRO FORMA FOURTH QUARTER 1999
---------------------------------------- -- ----------- ---- ---------- --- ---------- -- ---------- --- -----------
Net sales to external customers $ 80.5 $ 135.8 $ 31.0 $ - $ 247.3
Intersegment sales 23.3 2.1 - - 25.4
---------------------------------------- -- ----------- ---- ---------- --- ---------- -- ---------- --- -----------
Total sales 103.8 137.9 31.0 - 272.7
Adjusted EBIT 6.0 12.1 2.9 (8.5) 12.5
Depreciation and amortization 7.8 4.9 0.6 0.6 13.9
Business consolidation expenses 0.4 1.5 - 0.4 2.3
Capital expenditures 3.6 4.3 0.4 0.3 8.6
---------------------------------------- -- ----------- ---- ---------- --- ---------- -- ---------- --- -----------
PRO FORMA 2000
---------------------------------------- -- ----------- ---- ---------- --- ---------- -- ---------- --- -----------
Net sales to external customers $ 359.2 $ 567.0 $ 110.6 $ - $ 1,036.8
Intersegment sales 97.5 7.1 - - 104.6
---------------------------------------- -- ----------- ---- ---------- --- ---------- -- ---------- --- -----------
Total sales 456.7 574.1 110.6 - 1,141.4
Adjusted EBIT 46.2 68.5 5.5 (34.2) 86.0
Depreciation and amortization 34.1 18.5 2.8 2.6 58.0
Business consolidation expenses (1.4) 10.9 1.4 - 10.9
Capital expenditures 15.6 21.2 1.1 1.7 39.6
---------------------------------------- -- ----------- ---- ---------- --- ---------- -- ---------- --- -----------
PRO FORMA 1999
---------------------------------------- -- ----------- ---- ---------- --- ---------- -- ---------- --- -----------
Net sales to external customers $ 330.9 $ 605.9 $ 144.7 $ - $ 1,081.5
Intersegment sales 111.0 8.0 - - 119.0
---------------------------------------- -- ----------- ---- ---------- --- ---------- -- ---------- --- -----------
Total sales 441.9 613.9 144.7 - 1,200.5
Adjusted EBIT 33.7 68.0 14.4 (35.0) 81.1
Depreciation and amortization 34.4 20.3 2.7 2.8 60.2
Business consolidation expenses 6.7 9.7 1.6 2.1 20.1
Write-down of investment in an
affiliated company 20.0 - - - 20.0
Capital expenditures 14.0 16.1 1.5 0.5 32.1
---------------------------------------- -- ----------- ---- ---------- --- ---------- -- ---------- --- -----------
</TABLE>
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1 The Company does not allocate corporate expenses to its business segments.
2 Consists of earnings before interest, taxes, and business consolidation
expenses.
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HEXCEL CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
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UNAUDITED
--------------------------------------------
<S> <C> <C>
DECEMBER 31, December 31,
(In millions, except per share data) 2000 1999
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ASSETS
Current assets:
Cash and cash equivalents $ 5.1 $ 0.2
Accounts receivable 150.3 158.6
Inventories 155.4 153.7
Prepaid expenses and other assets 5.5 5.1
Deferred tax asset 9.7 10.2
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Total current assets 326.0 327.8
Property, plant and equipment 615.3 614.5
Less accumulated depreciation (255.6) (222.4)
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Net property, plant and equipment 359.7 392.1
Goodwill and other purchased intangibles, net of accumulated
amortization of $36.1 in 2000 and $24.9 in 1999 391.7 411.2
Investments in affiliated companies and other assets 134.0 130.8
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Total assets $ 1,211.4 $ 1,261.9
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Notes payable and current maturities of capital lease obligations $ 22.1 $ 34.3
Accounts payable 69.4 80.3
Accrued liabilities 106.4 95.9
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Total current liabilities 197.9 210.5
Long-term notes payable and capital lease obligations 627.1 712.5
Indebtedness to related parties 24.4 24.1
Other non-current liabilities 46.3 44.7
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Total liabilities 895.7 991.8
Stockholders' equity:
Preferred stock, no par value, 20.0 shares of stock authorized,
no shares issued or outstanding in 2000 and 1999 - -
Common stock, $0.01 par value, 100.0 shares of stock authorized,
shares issued and outstanding of 38.0 in 2000 and 37.4 in 1999 0.4 0.4
Additional paid-in capital 280.7 273.6
Retained earnings 65.8 11.6
Minimum pension obligation adjustment (5.0) -
Accumulated other comprehensive loss (15.0) (4.8)
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326.9 280.8
Less - Treasury stock, at cost, 0.9 shares in 2000 and 0.8 in 1999 (11.2) (10.7)
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Total stockholders' equity 315.7 270.1
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Total liabilities and stockholders' equity $ 1,211.4 $ 1,261.9
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Total debt, net of cash $ 668.5 $ 770.7
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HEXCEL CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
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UNAUDITED
----------------------------------------------------------
QUARTER ENDED DECEMBER 31, YEAR-ENDED DECEMBER 31,
<S> <C> <C> <C> <C>
(In millions) 2000 1999 2000 1999
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CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss) $ 1.0 $ (2.7) $ 54.2 $ (23.3)
Reconciliation to net cash provided by operating activities:
Depreciation and amortization 14.6 14.2 58.7 61.3
Deferred income taxes (3.2) (5.0) 8.6 (15.8)
Gain on sale of Bellingham aircraft interiors business - - (68.3) -
Business consolidation expenses 6.4 2.3 10.9 20.1
Business consolidation payments (3.6) (1.7) (11.8) (9.5)
Equity in income and write-down of an investment in
affiliated companies (1.6) 0.2 (5.5) 20.0
Gain on curtailment of pension plan (5.1) - (5.1) -
Working capital changes and other 11.7 37.3 (8.7) 80.9
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Net cash provided by operating activities 20.2 44.6 33.0 133.7
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CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures (17.4) (8.9) (39.6) (35.6)
Proceeds from sale of Bellingham aircraft interiors business - - 113.3 -
Proceeds from sale of other assets - - 3.4 -
Investments in affiliated companies (2.3) (2.7) (8.3) (4.7)
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Net cash provided by (used for) investing activities (19.7) (11.6) 68.8 (40.3)
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CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds (repayments) of credit facilities, net (1.1) (38.7) 29.5 (312.1)
Proceeds (repayments) of long-term debt and capital lease
obligations, net (7.3) (1.4) (126.0) 222.2
Debt issuance costs - (0.2) (0.9) (11.0)
Activity under stock plans 0.2 0.1 2.4 1.4
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Net cash used for financing activities (8.2) (40.2) (95.0) (99.5)
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Effect of exchange rate changes on cash and cash equivalents (1.0) (0.4) (1.9) (1.2)
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Net increase (decrease) in cash and cash equivalents (8.7) (7.6) 4.9 (7.3)
Cash and cash equivalents at beginning of period 13.8 7.8 0.2 7.5
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Cash and cash equivalents at end of period $ 5.1 $ 0.2 $ 5.1 $ 0.2
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CASH PAID FOR:
Interest $ 7.1 $ 7.6 $ 63.3 $ 59.1
Taxes 5.4 10.0 11.5 17.7
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