BE Aerospace Inc. (NASDAQ:BEAV) filed Quarterly Report for the period ended 2011-03-31.
Be Aerospace Inc. has a market cap of $3.83 billion; its shares were traded at around $37.5 with a P/E ratio of 21.3 and P/S ratio of 2.
Highlight of Business Operations:Research, development and engineering expense for the first quarter of 2011 was $37.2, or 6.2% of sales as compared with $27.1, or 5.8% of sales in the same period in 2010. The $10.1 increase in spending is primarily due to new product development activities in our commercial aircraft segment associated with our record $3.2 billion backlog.
Net earnings for the first quarter 2011 of $50.3 and net earnings per diluted share of $0.49 increased $16.5 and $0.15, respectively, as compared with the prior year period for the reasons described above.
First quarter 2011 business jet segment revenues of $59.1 increased by $11.8, or 24.9% as compared with the prior year period. Operating earnings of $6.2 increased $4.8, or 342.9% as compared with the prior year period. First quarter 2011 operating margin of 10.5% expanded by 750 basis points, reflecting both the increase in revenues and an improved mix of revenues.
As of March 31, 2011, our net debt-to-net capital ratio was 40.0%. Net debt was $1,124.8, which represented total debt of $1,245.6, less cash and cash equivalents of $120.8. At March 31, 2011, net capital (total debt plus total stockholders equity less cash and cash equivalents) was $2,814.3. As of March 31, 2011, long-term debt consisted of $644.4 of the Company s 6.875% Senior Unsecured Notes (net of original issue discount) due 2020 (the “6.875% Notes”) and $600.0 aggregate principal amount of the Company s 8.5% Senior Unsecured Notes due 2018 (the “8.5% Notes”). At March 31, 2011 there were no amounts outstanding under the Revolving Credit Facility (as defined below). Cash on hand at March 31, 2011 increased by $42.1 as compared with cash on hand at December 31, 2010 as a result of cash flows from operating activities less capital expenditures of $10.3 and acquisitions of $17.5. Our liquidity requirements consist of working capital needs, ongoing capital expenditures and payments of interest and principal on our indebtedness. Our primary requirements for working capital are directly related to the level of our operations.
Working capital as of March 31, 2011 was $1,426.7, an increase of $71.1 as compared with working capital at December 31, 2010. As of March 31, 2011, total current assets increased by $130.8 and total current liabilities increased by $59.7. The increase in current assets related to an increase in cash of $42.1 (as described above) and a $51.5 increase in accounts receivable. Inventories increased by $40.8, principally at the commercial aircraft segment, to support future revenue growth. The increase in total current liabilities was primarily due to an increase in accounts payable of $49.2 and an increase in accrued liabilities of $10.5. Accounts payable were higher at March 31, 2011 due to the increase in business activity. Accrued liabilities increased at March 31, 2011 as compared with December 31, 2010 primarily due to deferred revenues ($8.4) and accrued warranties ($5.7), offset by accrued compensation expense ($10.1).
As of March 31, 2011, our cash and cash equivalents were $120.8 compared to $78.7 at December 31, 2010. Cash generated from operating activities was $60.8 for the three months ended March 31, 2011, as compared to $47.5 in the same period in the prior year. The primary sources of cash from operations during the three months ended March 31, 2011 were net earnings of $50.3, adjusted by depreciation and amortization of $15.5, non-cash compensation of $6.4, a $14.2 decrease in deferred income taxes and a $51.5 increase in accounts payable and accrued liabilities. Offsetting these sources of cash were a $45.3 increase in accounts receivable as a result of increased revenues and a $31.8 increase in inventories as a result of our record backlog.
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