DRS Technologies Reports Record First Quarter Results.Business Editors PARSIPPANY, N.J.--(BUSINESS WIRE)--Aug. 8, 2000 Operating Income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. , Net Earnings and Diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. Advance 36%, 96% and 80%, Respectively; Backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. At an All Time High DRS Technologies DRS Technologies, Inc. (commonly known as DRS; formerly known as Diagnostic/Retrieval Systems, Inc.) is a supplier of defense electronic products and systems to the United States Air Force, Army, Coast Guard, Marine Corps, Navy, aerospace and defense prime , Inc. (ASE (Adaptive Server Enterprise) A relational DBMS from Sybase that runs on Windows NT/2000, Linux and a variety of Unix platforms. ASE is a comprehensive and robust data management product with a long history dating back to the late 1980s. : DRS DRS Drives (street suffix) DRS Dispute Resolution Service DRS Doctorandus DRS Department of Rehabilitative Services DRS Direct Registration System (securities) DRS Department of Rehabilitation Services ) today reported record fiscal 2001 first quarter results. Strong bookings contributed to the highest funded order backlog in the company's history at the end of the period. Revenues for the three months ended June June: see month. 30, 2000 set a first quarter record at $94,521,000, up 10 percent compared with revenues from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the of $85,646,000 reported for the same period a year ago. Record first quarter operating income was $7,155,000, a 36 percent increase over $5,274,000 in operating income for the same quarter last year. Operating income as a percentage of sales was 7.6 percent, versus 6.2 percent for the first quarter of fiscal 2000, a 23 percent improvement. Earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
Net earnings increased 58 percent, setting a first quarter record at $1,898,000, or $0.18 per diluted share, compared with net earnings from continuing operations of $1,203,000, or $0.13 per diluted share, earned for the first three months of fiscal 2000. Net earnings for the first quarter of fiscal 2001 were 96 percent higher than net earnings of $968,000, or $0.10 per diluted share, after a charge of $235,000 from discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. , net of tax, for the first quarter last fiscal year. "The results for the first quarter of fiscal 2001 were outstanding by all measures," said Mark S. Newman, chairman, president and chief executive officer of DRS Technologies. "DRS continued the momentum achieved in the prior fiscal year, posting new first quarter records in revenues, operating income, earnings, bookings and backlog. Significantly increased profitability and higher operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: were clear indicators of progress achieved in operational improvements, reflecting the positive impact of the cost reduction and consolidation initiatives implemented in fiscal 2000." Record first quarter sales were primarily attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to higher shipments in the company's second generation ground electro-optical sighting systems and infrared detectors An infrared detector is a photodetector that reacts to infrared (IR) radiation. The two main types of detectors are thermal and photonic. The thermal effects of the incident IR radiation can be followed through many temperature dependent phenomena. , as well as to increases in electro-optical contract manufacturing services. Higher operating income for the first quarter was primarily the result of increased sales and lower operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. , as the result of the cost reduction and consolidation measures implemented by the company in the second half of last fiscal year. Mr. Newman continued, "During the quarter, we also expanded our business base and future growth potential by completing the acquisition of General Atronics Corporation, the leading global supplier of Link 11 Data Terminal Systems for NATO NATO: see North Atlantic Treaty Organization. NATO in full North Atlantic Treaty Organization International military alliance created to defend western Europe against a possible Soviet invasion. and allied international navies. Renamed DRS Communications Company Communications Company is a communications unit of the United States Marine Corps. They are part of Combat Logistics Regiment 37 , 3rd Marine Logistics Group (3MLG) and III Marine Expeditionary Force (III MEF). The unit is based out of the Marine Corps Base Camp Smedley D. , this new unit provides a value-added val·ue-add·ed adj. Of or relating to the estimated value that is added to a product or material at each stage of its manufacture or distribution: capability in integrated ship information management, positions DRS as a strong competitor for international combat system upgrade programs, and enhances our international customer base for radar systems and other products in growing areas of the defense technologies market place." The company booked a first quarter record amount of new orders valued at approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $93 million, 26 percent higher than the same period last year, increasing funded backlog at June 30, 2000 to approximately $408 million, versus backlog of $388 million at March 31, 2000, the company's fiscal 2000 year end. Backlog at the end of the first quarter was 17 percent higher than backlog of $349 million posted at the same time last year. Mr. Newman concluded, "Beginning the new fiscal year with a quarter of solid performance, strong bookings and record backlog, our outlook for fiscal 2001 is bright. Having successfully completed another strategic acquisition and consolidations within each of our operating segments, we are in a strong position to continue to demonstrate accelerated profitability and achieve long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. revenue growth. DRS remains one of the fastest growing defense technology companies in the world." DRS Technologies provides leading edge products and services to government and commercial customers worldwide. Focused on defense electronics, the company develops and manufactures a broad range of mission critical products, from rugged computers A rugged (or ruggedized) computer is a computer specifically designed to reliably operate in harsh usage environments and conditions, such as strong vibrations, extreme temperatures and wet or dusty conditions. and peripherals to systems and components in the areas of communications, data storage, digital imaging, electro-optics See electro-optic. , flight safety and space. Additional information is available on the company's web site at www.drs.com. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statement under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995: Except for historical information contained herein, the matters set forth in this news release are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . The forward-looking statements set forth above involve a number of risks and uncertainties that could cause actual results to differ materially from any such statement, and include, without limitation, demand and competition for the Company's products and other risks or uncertainties detailed in the Company's Securities and Exchange Commission filings.
DRS TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(UNAUDITED)
Three Months Ended June 30,
---------------------------
2000 1999
---- ----
Revenues $ 94,521,000 $ 85,646,000
Operating Income $ 7,155,000 $ 5,274,000
Earnings before Interest, Taxes,
Depreciation and Amortization
(EBITDA) $ 10,997,000 $ 9,394,000
Interest and Related Expenses $ 3,107,000 $ 3,145,000
Earnings from Continuing Operations
before Income Taxes $ 3,797,000 $ 1,950,000
Net Earnings from Continuing
Operations $ 1,898,000 $ 1,203,000
Loss from Discontinued Operations,
Net of Tax $ -- $ (235,000)
Net Earnings $ 1,838,000 $ 968,000
Net Earnings per Share of Common Stock:
Basic Earnings per Share:
Net Earnings from Continuing
Operations $ .20 $ .13
Loss from Discontinued Operations,
Net of Tax $ -- $ (.03)
Net Earnings $ .20 $ .10
Diluted Earnings per Share:
Net Earnings from Continuing
Operations $ .18 $ .13
Loss from Discontinued Operations,
Net of Tax $ -- $ (.03)
Net Earnings $ .18 $ .10
Weighted Average Number of Shares of
Common Stock Outstanding:
Basic 9,349,000 9,245,000
Diluted 11,963,000 9,376,000
NOTE: Certain fiscal 2000 results have been restated to reflect the
Company's current operating structure.
DRS TECHNOLOGIES, INC. AND SUBSIDIARIES
FIRST QUARTER SEGMENT RESULTS FROM CONTINUING OPERATIONS
(UNAUDITED)
Three Months Ended June 30,
---------------------------
2000 1999
---- ----
Electronic Systems Group
Revenues $ 41,537,000 $ 43,551,000
Operating Income $ 2,500,000 $ 3,187,000
Operating Margin 6.0% 7.3%
Bookings $ 41,316,000 $ 52,792,000
Backlog $ 134,839,000 $ 132,599,000
Electro-Optical Systems Group
Revenues $ 39,511,000 $ 29,029,000
Operating Income $ 3,830,000 $ 2,059,000
Operating Margin 9.7% 7.1%
Bookings $ 26,265,000 $ 13,751,000
Backlog $ 178,464,000 $ 167,020,000
Flight Safety and Communications Group
Revenues $ 11,291,000 $ 11,184,000
Operating Income $ 945,000 $ 912,000
Operating Margin 8.4% 8.2%
Bookings $ 22,438,000 $ 5,709,000
Backlog(a) $ 94,010,000 $ 47,604,000
Other
Revenues $ 2,182,000 $ 1,882,000
Operating Loss $ (120,000) $ (884,000)
Operating Margin (5.5)% (47.0)%
Bookings $ 2,575,000 $ 1,468,000
Backlog $ 1,155,000 $ 2,190,000
Total
Revenues $ 94,521,000 $ 85,646,000
Operating Income $ 7,155,000 $ 5,274,000
Operating Margin 7.6% 6.2%
Bookings $ 92,594,000 $ 73,720,000
Backlog $ 408,468,000 $ 349,413,000
(a) Fiscal 2001 first quarter results include backlog of approximately
$25.5 million from DRS Communications Company, LLC, as a result of
the acquisition of General Atronics Corporation on June 14, 2000.
NOTE: Certain fiscal 2000 results have been restated to reflect the
Company's current operating structure.
DRS TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
June 30, March 31,
2000 2000
---- ----
Assets
Cash and Cash Equivalents $ 6,391,000 $ 3,778,000
Other Current Assets 163,661,000 154,855,000
Total Current Assets 170,052,000 158,633,000
Property, Plant and Equipment, Net 29,779,000 29,006,000
Intangible and Other Assets 134,886,000 132,459,000
Total Assets $334,717,000 $320,098,000
Liabilities and Stockholders' Equity
Short-Term Debt $ 24,801,000 $ 17,781,000
Current Installments of Long-Term Debt 5,873,000 5,699,000
Accounts Payable and Other Current
Liabilities 110,742,000 113,769,000
Total Current Liabilities 141,416,000 137,249,000
Long-Term Debt, Excluding Current
Installments 102,512,000 97,695,000
Deferred Income Taxes and Other
Liabilities 8,214,000 6,970,000
Net Stockholders' Equity 82,575,000 78,184,000
Total Liabilities and Stockholders'
Equity $334,717,000 $320,098,000
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