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BE Aerospace Inc. Reports Operating Results (10-Q)

May 04, 2010 | About:
10qk

10qk

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BE Aerospace Inc. (BEAV) filed Quarterly Report for the period ended 2010-03-31.

Be Aerospace Inc. has a market cap of $3.09 billion; its shares were traded at around $30.26 with a P/E ratio of 20.7 and P/S ratio of 1.6. BEAV is in the portfolios of Arnold Schneider of Schneider Capital Management, John Buckingham of Al Frank Asset Management, Inc., RS Investment Management, Diamond Hill Capital of Diamond Hill Capital Management Inc, Jeremy Grantham of GMO LLC, Chuck Royce of Royce& Associates.

Highlight of Business Operations:

Revenues in the first quarter of 2010 of $463.5 decreased by $60.2, or 11.5%, as compared with the first quarter of the prior year. The decrease in revenues was the result of the $53.3, or 22.3%, decrease in revenues at the consumables management segment and an $11.1, or 19.0%, decrease in revenues at the business jet segment, both as a result of higher level of demand in the prior year period. As compared with the fourth quarter of 2009, consolidated revenues declined by 3.3%.

Earnings before income taxes for the three months ended March 31, 2010 of $51.2 decreased by $7.0, or 12.0%, as compared to earnings before income taxes of $58.2 in the same period in the prior year due to the $8.7 decrease in operating earnings described above, offset by a $1.7 decrease in interest expense.

Net earnings for the first quarter of 2010 were $33.8, or $0.34 per diluted share, as compared with net earnings of $37.9, or $0.38 per diluted share, in the first quarter of 2009. Net earnings decreased by $4.1, or 10.8%, as compared with the prior year period for the reasons described above.

As of March 31, 2010, our net debt-to-net capital ratio was 37.1%. Net debt was $864.5, which represented total debt of $1,018.4, less cash and cash equivalents of $153.9. There were no borrowings outstanding under the revolving credit facility of our Senior Credit Agreement and we have no debt maturities until 2014. Cash on hand at March 31, 2010 increased by $33.8 as compared with cash on hand at December 31, 2009.

Working capital as of March 31, 2010 was $1,314.6, an increase of $27.7 as compared with working capital at December 31, 2009. As of March 31, 2010, total current assets increased by $83.4 and total current liabilities increased by $55.7. The increase in current assets related to an increase in cash of $33.8, an increase in the accounts receivable of $42.1 on timing of billings and collections, and an increase in the inventory balances of $14.6, principally at the consumables management segment, to support future revenues. The increase in total current liabilities primarily related to an increase in accounts payable of $42.2, and an increase of $12.7 in the accrued interest on our long term debt.

As of March 31, 2010, our cash and cash equivalents were $153.9 compared to $120.1 at December 31, 2009. Cash generated from operating activities was $47.5 for the three months ended March 31, 2010, as compared to cash used in operating activities of $39.5 in the same period in the prior year. The primary source of cash from operations during the three months ended March 31, 2010 were net earnings of $33.8, adjusted by depreciation and amortization of $12.5, non-cash compensation of $6.9, $16.1 decrease in deferred tax asset and $51.0 increase in accounts payable and accrued liabilities. Offsetting these sources of cash were a $45.8 increase in accounts receivable and a $26.0 increase in inventories.

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