L-3 Announces Second Quarter 2009 Results.* Diluted earnings per share diluted earnings per shareAn earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of of $1.90 * Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight increased 6% to $3.9 billion * Net cash from operating activities of $376 million * Funded orders of $3.3 billion and funded backlog of $11.2 billion * Updated financial guidance for 2009 NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- L-3 Communications
L-3 Communications Holdings, Inc. (NYSE: LLL) is a company that supplies command, control, communications, intelligence, surveillance and reconnaissance (C3ISR) systems and Holdings, Inc. (NYSE NYSE See: New York Stock Exchange : LLL LLL abbr. left lower lobe (of the lung) ) today reported diluted earnings per share (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. ) of $1.90 for the quarter ended June 26, 2009 (2009 second quarter) compared to $2.21(1)for the quarter ended June 27, 2008 (2008 second quarter). The 2008 second quarter included a $0.57 net gain for certain items, which are discussed below. Excluding these items from the 2008 second quarter results, diluted EPS of $1.90 for the 2009 second quarter increased 16% compared to $1.64 for the 2008 second quarter. Net sales increased 6% to $3.9 billion compared to $3.7 billion for the 2008 second quarter. "L-3 had solid performance during the second quarter of 2009 led by our ISR (Interrupt Service Routine) Software routine that is executed in response to an interrupt. businesses," said Michael T. Strianese, chairman, president and chief executive officer. "We delivered increased sales, and excluding the impact of a net gain for certain items in 2008, improved our 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. and diluted EPS despite challenging economic conditions. Our second quarter performance is an affirmation A solemn and formal declaration of the truth of a statement, such as an Affidavit or the actual or prospective testimony of a witness or a party that takes the place of an oath. An affirmation is also used when a person cannot take an oath because of religious convictions. of L-3's skilled and talented workforce, our strong and diverse portfolio of businesses, our quick reaction capabilities and our ability to deliver innovative solutions to our customers. We also continued to deploy the company's strong cash flow to increase shareholder value." Mr. Strianese continued, "We expect to continue to have opportunities to grow our businesses in the second half of 2009, maintain our strong program performance, deliver value for our customers and execute our plan for the year." [TABLE OMITTED] Second Quarter Results of Operations: For the 2009 second quarter, consolidated net sales increased 6% compared to the 2008 second quarter driven primarily by growth in the Command, Control, Communications, Intelligence, Surveillance and Reconnaissance Intelligence, Surveillance and Reconnaissance may refer to:
Transformation of a society from a rural and agrarian condition to a secular, urban, and industrial one. It is closely linked with industrialization. As societies modernize, the individual becomes increasingly important, gradually replacing the family, and Maintenance (AM&M) and Specialized spe·cial·ize v. spe·cial·ized, spe·cial·iz·ing, spe·cial·iz·es v.intr. 1. To pursue a special activity, occupation, or field of study. 2. Products reportable segments. These sales increases were partially offset by a decrease in the Government Services reportable segment driven primarily by lower linguist lin·guist n. 1. A person who speaks several languages fluently. 2. A specialist in linguistics. [Latin lingua, language; see services (discussed below under the Government Services segment). The increase in consolidated net sales from acquired businesses net of divestitures(2) was $41 million, or 1%. The 2009 second quarter operating income decreased by 17% compared to the 2008 second quarter. Higher pension expense in the 2009 second quarter compared to the 2008 second quarter reduced operating income by $16 million ($10 million after income taxes, or $0.09 per diluted share). The pension expense increase is primarily due to the actuarial ac·tu·ar·y n. pl. ac·tu·ar·ies A statistician who computes insurance risks and premiums. [Latin loss that we experienced in 2008 as a result of the decline in the fair value of our pension plan assets, which is being amortized as a component of pension expense beginning in 2009. The 2008 second quarter results were impacted by three items that, in the aggregate, increased operating income by $110 million ($71 million after income taxes, or $0.57 per diluted share) and reduced interest expense by $7 million. These three items are collectively referred to as the Q2 2008 Items and are comprised of: * A gain of $133 million ($81 million after income taxes, or $0.65 per diluted share) for the reversal of a $126 million liability as a result of a June 27, 2008 decision by the U.S. Court of Appeals which vacated an adverse 2006 jury verdict and $7 million of related accrued interest Accrued Interest The interest that has accumulated on a bond since the last interest payment up to but not including the settlement date. There are two methods for calculating accrued interest: 1) 360-day year method, used for corporate and municipal bonds. (the "Litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. Gain"), * A gain of $12 million ($7 million after income taxes, or $0.06 per diluted share) from the sale of a product line (the "Product Line Divestiture The breakup of AT&T. By federal court order, AT&T divested itself on January 1, 1984 of its 23 operating companies, which became known as the Regional Bell Operating Companies (RBOCs). Gain"), and * A non-cash impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. charge of $28 million ($17 million after income taxes, or $0.14 per diluted share) relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc a write-down of capitalized Capitalized Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year. software development costs for a general aviation product (the "Impairment Charge"). Operating income as a percentage of sales (operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: ) decreased by 290 basis points to 10.6% compared to 13.5% for the 2008 second quarter. Excluding the Q2 2008 Items, the 2008 second quarter operating margin was 10.5%. Higher margins primarily in the C3ISR businesses increased operating margin for the 2009 second quarter by 50 basis points compared to the 2008 second quarter. Higher pension expense reduced 2009 second quarter operating margin by 40 basis points compared to the 2008 second quarter. See segment results below for additional discussion of segment operating income and margin results. Net interest expense and other income increased compared to the same period last year primarily because of the reversal of $7 million of accrued interest during the 2008 second quarter in connection with the Litigation Gain. This increase was partially offset by lower interest expense on our term loans, which are based on variable interest rates. The effective tax rate for the 2009 second quarter decreased by 120 basis points compared to the same quarter last year. Excluding the Q2 2008 Items, the effective income tax rate for the 2009 second quarter decreased by 40 basis points. The decrease is primarily due to the U.S. Federal research and experimentation tax credit that was re-enacted during the quarter ended Dec. 31, 2008. In the 2009 second quarter as compared to the 2008 second quarter, net income attributable to L-3 decreased by $50 million, and diluted EPS decreased by 14%. Excluding the Q2 2008 Items, net income attributable to L-3 increased by $21 million and diluted EPS increased by 16% for the 2009 second quarter as compared to the 2008 second quarter. Diluted weighted average common shares outstanding declined by 5% due primarily to share repurchases Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. of L-3 common stock made during the past year. First Half Results of Operations: For the first half ended June 26, 2009 (2009 first half), consolidated net sales increased 5% compared to the first half ended June 27, 2008 (2008 first half) driven primarily by growth in the C3ISR, AM&M and Specialized Products reportable segments. These increases were partially offset by a decrease in the Government Services reportable segment driven primarily by lower linguist services (discussed below under the Government Services segment). The increase in consolidated net sales from acquired businesses net of divestitures was $117 million, or 2%. The 2009 first half operating income decreased by 9% compared to the 2008 first half. Operating income decreased by $110 million as a result of the Q2 2008 Items and by $35 million ($22 million after income taxes, or $0.18 per diluted share) because of higher pension expense in the 2009 first half. Operating margin decreased by 150 basis points to 10.5% compared to 12.0% for the 2008 first half. Excluding the Q2 2008 Items, the 2008 first half operating margin was 10.5%. Higher pension expense during the 2009 first half reduced operating margin by 50 basis points and were offset by higher margins primarily in the C3ISR businesses. See segment results below for additional discussion of segment operating income and margin results. Net interest expense and other income decreased compared to the same period last year driven by lower interest expense on our term loans substantially offset by $7 million of accrued interest reversed during the 2008 second quarter in connection with the Litigation Gain and lower interest income on cash investments. The effective tax rate for the 2009 first half decreased 90 basis points compared to the same period last year. Excluding the Q2 2008 Items, the effective tax rate for the 2009 first half decreased 40 basis points. The decrease is primarily due to the U.S. Federal research and experimentation tax credit that was re-enacted during the quarter ended Dec. 31, 2008, partially offset by higher income taxes on foreign income. In the 2009 first half as compared to the 2008 first half, net income attributable to L-3 decreased by $40 million and diluted EPS decreased by 4% to $3.56 from $3.72. Excluding the Q2 2008 Items, net income attributable to L-3 increased by $31 million and diluted EPS increased by 13% to $3.56 for the 2009 first half compared to $3.15 for the 2008 first half. Diluted weighted average common shares outstanding for the 2009 first half compared to the 2008 first half declined by 5% primarily due to share repurchases of L-3 common stock made during the past year. Orders: Funded orders for the 2009 second quarter decreased 20% to $3.3 billion compared to $4.2 billion from the 2008 second quarter and decreased 14% to $7.1 billion for the 2009 first half from $8.3 billion for the 2008 first half. Funded backlog decreased 3% to $11.2 billion compared to $11.6 billion at Dec. 31, 2008. Cash flow: Net cash from operating activities was $528 million for the 2009 first half, compared to $628 million for the 2008 first half. The decrease in cash from operating activities is primarily due to an increase in working capital to support sales growth in the C3ISR segment. Capital expenditures, net of dispositions of property, plant and equipment was $80 million for the 2009 first half, compared to $71 million for the 2008 first half. [TABLE OMITTED] Second Quarter: C3ISR net sales for the 2009 second quarter increased by 24% compared to the 2008 second quarter primarily due to increased demand and new business from the U.S. Department of Defense (DoD) for airborne ISR and networked communication systems for manned and unmanned platforms. C3ISR operating income for the 2009 second quarter increased by 42% compared to the 2008 second quarter. Operating margin increased by 160 basis points. Higher sales volume, improved contract performance and a more favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. sales mix sales mix See product mix. for airborne ISR and networked communication systems increased operating margin by 250 basis points. These increases were partially offset by higher pension expense of $7 million, which reduced operating margin by 90 basis points. First Half: C3ISR net sales for the 2009 first half increased by 26% compared to the 2008 first half primarily due to increased demand and new business from the DoD for airborne ISR and networked communication systems for manned and unmanned platforms. C3ISR operating income for the 2009 first half increased 34% compared to the 2008 first half. Operating margin increased by 80 basis points. Higher sales volume, improved contract performance and a more favorable sales mix for airborne ISR and networked communication systems increased operating margin by 160 basis points. Cost improvements on an international airborne ISR system contract due to a restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). of contract deliverables with a customer increased operating margin by 20 basis points. These increases were partially offset by higher pension expense of $15 million, which reduced operating margin by 100 basis points. [TABLE OMITTED] Second Quarter: Government Services net sales for the 2009 second quarter decreased by 3% compared to the 2008 second quarter. Sales declines in linguist services of $72 million were partially offset by increases primarily for information technology (IT) support services support services Psychology Non-health care-related ancillary services–eg, transportation, financial aid, support groups, homemaker services, respite services, and other services for the U.S. Special Operations Command A subordinate unified or other joint command established by a joint force commander to plan, coordinate, conduct, and support joint special operations within the joint force commander's assigned operational area. Also called SOC. See also special operations. (USSOCOM USSOCOM United States Special Operations Command ) and intelligence support and training services for the U.S. Army and U.S. Government agencies. Linguist services declined due to L-3's transition from a prime contractor to a subcontractor One who takes a portion of a contract from the principal contractor or from another subcontractor. When an individual or a company is involved in a large-scale project, a contractor is often hired to see that the work is done. on the current U.S. Army linguist contract on June 9, 2008. The increase in net sales from acquired businesses was $32 million, or 3%. Government Services operating income for the 2009 second quarter decreased by 17% compared to the 2008 second quarter. Operating margin for the 2008 second quarter decreased by 170 basis points. Lower margins on select contract renewals and higher profit margins on certain fixed-price contracts in the 2008 second quarter reduced operating margin by 160 basis points. Acquired businesses also reduced operating margin by 10 basis points. First Half: Government Services net sales for the 2009 first half decreased by 6% compared to the 2008 first half. Sales declines in linguist services of $203 million were partially offset by increases for IT support services for USSOCOM, systems and software engineering and sustainment services to the U.S. Army and logistics support services to the U.S. Marine Corps driven by new and existing contracts. The increase in net sales from acquired businesses was $49 million, or 2%. Government Services operating income for the 2009 first half decreased by 14% compared to the 2008 first half. Operating margin for the 2009 first half decreased by 90 basis points compared to the 2008 first half. Lower margins on select contract renewals and higher profit margins on certain fixed price contracts in the 2008 first half reduced operating margin by 80 basis points. Acquired businesses also reduced operating margin by 10 basis points. [TABLE OMITTED] Second Quarter: AM&M net sales for the 2009 second quarter increased by 6% compared to the 2008 second quarter. Sales increased for systems field support services for U.S. Army and U.S. Navy fixed and rotary Rotary can refer to:
abbr. chronic fatigue syndrome CFS, n.pr See syndrome, chronic fatigue. CFS Chronic fatigue syndrome, see there ) as fewer task orders were received because of more competitors on the current indefinite INDEFINITE. That which is undefined; uncertain. INDEFINITE, NUMBER. A number which may be increased or diminished at pleasure. 2. When a corporation is composed of an indefinite number of persons, any number of them consisting of a majority of those delivery/indefinite quantity contract that began on October 1, 2008. AM&M operating income for the 2009 second quarter increased by 21% compared to the 2008 second quarter. Operating margin increased by 80 basis points. The 2008 second quarter included $13 million of litigation charges for estimated costs to settle certain claims, which increased operating margin for the 2009 second quarter as compared to the 2008 second quarter by 180 basis points. This increase was partially offset by 50 basis points due to lower CFS volume and 50 basis points primarily for cost increases on an international aircraft modernization contract. First Half: AM&M net sales for the 2009 first half increased by 3% compared to the 2008 first half. Sales increased for systems field support services for U.S. Army and U.S. Navy training aircraft and U.S. Special Forces logistics support. These increases were partially offset by sales declines for CFS and lower international aircraft modernization sales due to contracts nearing completion. AM&M operating income for the 2009 first half increased 8% compared to the 2008 first half. Operating margin increased by 40 basis points. The 2008 first half included $13 million of litigation charges, which increased operating margin for the 2009 first half as compared to the 2008 first half by 100 basis points. This increase was partially offset by 40 basis points for lower CFS volume and 20 basis points primarily for cost increases on international aircraft modernization sales. [TABLE OMITTED] Second Quarter: Specialized Products net sales for the 2009 second quarter increased by 4% compared to the 2008 second quarter reflecting higher sales volume primarily for: (1) Electro-Optic/Infrared (EO/IR EO/IR Electro-Optical/Infra-Red ) products primarily due to demand and deliveries on new and existing contracts, (2) training & simulation primarily related to new and existing contracts, (3) combat propulsion systems Noun 1. propulsion system - a system that provides a propelling or driving force system - instrumentality that combines interrelated interacting artifacts designed to work as a coherent entity; "he bought a new stereo system"; "the system consists of a motor and a mostly from continued performance on existing contracts, (4) naval power & control systems due to follow-on contracts for tactical quiet generators for mobile electric power for the U.S. Armed Services The Constitution authorizes Congress to raise, support, and regulate armed services for the national defense. The President of the United States is commander in chief of all the branches of the services and has ultimate control over most military matters. , and (5) microwave products primarily due to deliveries of mobile and ground based satellite communications systems In telecommunication, a communications system is a collection of individual communications networks, transmission systems, relay stations, tributary stations, and data terminal equipment (DTE) usually capable of interconnection and interoperation to form an integrated whole. , tactical signal intelligence systems, and spare parts Spare parts, also referred to as Service Parts is a term used to indicate extra parts available and in proximity to the mechanical item, such as a automobile, boat, engine, for which they might be used. Spare parts are also called “spares. for the U.S. military. These increases were partially offset by a decrease for commercial aviation products and commercial shipbuilding products as a result of reduced demand caused by the global economic recession, and security and detection systems primarily due to the timing of certain deliveries. The increase in net sales from acquired businesses, net of divestitures, was $9 million, or 1%, and pertains mostly to the Electro-Optical Systems (EOS Eos (ē`ŏs), in Greek religion and mythology, goddess of dawn; daughter of the Titans Hyperion and Theia. Every morning she arose early and preceded her brother Helios into the heavens. ) business acquired on April 21, 2008 and Chesapeake Sciences Corporation acquired on January 30, 2009. Specialized Products operating income for the 2009 second quarter as compared to the 2008 second quarter increased by 18% to $170 million from $143 million and operating margin of 12.1% for the 2009 second quarter increased by 150 basis points. The 2008 second quarter included a gain of $12 million for the Product Line Divestiture Gain and a $28 million non-cash Impairment Charge, and excluding these two items, operating margin for the 2009 second quarter of 12.1% increased by 40 basis points compared to the 2008 second quarter. Higher sales volume and favorable sales mix primarily for naval power & control systems, EO/IR products and training & simulation increased operating margin by 120 basis points. Acquired businesses increased operating margin by 20 basis points. These margin increases were partially offset by higher pension expense of $9 million, which reduced operating margin by 70 basis points and lower sales volume for commercial aviation and commercial ship building products, which reduced operating margin by 30 basis points. First Half: Specialized Products net sales for the 2009 first half increased by 5% compared to the 2008 first half. The increase was driven by trends similar to the 2009 second quarter. The increase in net sales from acquired businesses, net of divestitures, was $68 million, or 3%, and pertains mostly to the EOS business and to Chesapeake Sciences Corporation. Specialized Products operating income for the 2009 first half as compared to the 2008 first half increased by 10% to $311 million from $284 million and operating margin of 11.7% for the 2009 first half increased by 50 basis points. Excluding the Product Line Divestiture Gain and non-cash Impairment Charge, operating margin for the 2009 first half of 11.7% decreased 10 basis points compared to the 2008 first half. Higher pension expense of $20 million reduced operating margin by 70 basis points and lower sales volume for commercial aviation products and commercial shipbuilding products reduced operating margin by 30 basis points. These operating margin decreases were partially offset by 70 basis points primarily for higher sales volume and favorable sales mix primarily for naval power & control systems, EO/IR products and microwave products. Acquired businesses increased operating margin by 20 basis points. Financial Outlook Based on information known as of today, the company revised its consolidated and segment financial guidance for the year ending Dec. 31, 2009, as presented in the tables below. [TABLE OMITTED] All financial guidance amounts for the year ending Dec. 31, 2009 are estimates subject to revisions in the future for matters discussed under the "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. " cautionary language on the next page, and the company undertakes no duty to update its guidance. The 2009 financial guidance includes approximately $170 million of estimated sales growth compared to 2008 sales from business acquisitions, net of divestitures. Additional financial information regarding the 2009 second quarter results is available on the company's Web site at www.L-3com.com. L-3 Announces Results for the 2009 Second Quarter Page 9 Conference Call In conjunction with this release, L-3 will host a conference call today, Thursday, July 23, 2009 at 11:00 a.m. EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT that will be simultaneously broadcast over the Internet. Michael T. Strianese, chairman, president and chief executive officer, Ralph G. D'Ambrosio, vice president and chief financial officer, and Karen C. Tripp, vice president of corporate communications Corporate communications is the process of facilitating information and knowledge exchanges with internal and key external groups and individuals that have a direct relationship with an enterprise. , will host the call. > > 11:00 a.m. EDT > > 10:00 a.m. CDT > > 9:00 a.m. MDT > > 8:00 a.m. PDT Listeners may access the conference call live over the Internet at the company's Web site at: http://www.L-3com.com Please allow fifteen minutes prior to the call to visit our Web site to download and install any necessary audio software. The archived version of the call may be accessed at our Web site or by dialing (888) 286-8010 (passcode: 57485380), beginning approximately two hours after the call ends and will be available until the company's next quarterly earnings release. Headquartered in New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. , L-3 employs over 66,000 people worldwide and is a prime contractor in aircraft modernization and maintenance, C(3)ISR (Command, Control, Communications, Intelligence, Surveillance and Reconnaissance) systems and government services. L-3 is also a leading provider of high technology products, subsystems and systems. The company reported 2008 sales of $14.9 billion. To learn more about L-3, please visit the company's Web site at www.L-3com.com. L-3 uses its Web site as a channel of distribution of material company information. Financial and other material information regarding L-3 is routinely posted on the company's Web site and is readily accessible. Forward-Looking Statements Certain of the matters discussed in this release that are predictive in nature, that depend upon or refer to events or conditions or that include words such as ''expects,'' ''anticipates,'' ''intends,'' ''plans,'' ''believes,'' ''estimates,'' and similar expressions constitute forward-looking statements. Although we believe that these statements are based upon reasonable assumptions, including projections of total sales growth, sales growth from business acquisitions, organic sales growth, consolidated operating margins, total segment operating margins, interest expense, earnings, cash flow, research and development costs, working capital, capital expenditures and other projections, they are subject to several risks and uncertainties that are difficult to predict, and therefore, we can give no assurance that these statements will be achieved. Such statements will also be influenced by factors which include, among other things: our dependence on the defense industry and the business risks peculiar to that industry; our reliance on contracts with a limited number of agencies of, or contractors to, the U.S. Government and the possibility of termination of government contracts by unilateral unilateral /uni·lat·er·al/ (-lat´er-al) affecting only one side. u·ni·lat·er·al adj. On, having, or confined to only one side. government action or for failure to perform; the extensive legal and regulatory requirements Regulatory requirements are part of the process of drug discovery and drug development. Regulatory requirements describe what is necessary for a new drug to be approved for marketing in any particular country. surrounding our contracts with the U.S. or foreign governments and the results of any investigation of our contracts undertaken by the U.S. or foreign governments; our ability to retain our existing business and related contracts (revenue arrangements); our ability to successfully compete for and win new business and related contracts (revenue arrangements) and to win re-competitions of our existing contracts; our ability to identify and acquire additional businesses in the future with terms that are attractive to L-3 and to integrate acquired business operations Business operations are those activities involved in the running of a business for the purpose of producing value for the stakeholders. Compare business processes. The outcome of business operations is the harvesting of value from assets ; our ability to maintain and improve our consolidated operating margin and total segment operating margin in future periods; our ability to obtain future government contracts (revenue arrangements) on a timely basis; the availability of government funding or cost-cutting initiatives and changes in customer requirements for our products and services; our significant amount of debt and the restrictions contained in our debt agreements; our ability to continue to retain and train our existing employees and to recruit and hire new qualified and skilled employees as well as our ability to retain and hire employees with U.S. Government Security clearances; actual future interest rates, volatility and other assumptions used in the determination of pension benefits and equity based compensation, as well as the market performance of benefit plan assets; our collective bargaining agreements The contractual agreement between an employer and a Labor Union that governs wages, hours, and working conditions for employees and which can be enforced against both the employer and the union for failure to comply with its terms. , our ability to successfully negotiate contracts with labor unions labor union: see union, labor. and our ability to favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. resolve labor disputes should they arise; the business, economic and political conditions in the markets in which we operate, including those for the commercial aviation, shipbuilding and communications market; global economic uncertainty; our ability to perform contracts on schedule; events beyond our control such as acts of terrorism; our international operations Internal Operations (I.O., IO or I/O) is a fictional American Intelligence Agency in Wildstorm comics. It was originally called International Operations. I.O. first appeared in WildC.A.T.S. volume 1 #1 (August, 1992) and was created by Brandon Choi and Jim Lee. ; our extensive use of fixed-price type contracts as compared to cost-reimbursable type and time-and-material type contracts; the rapid change of technology and high level of competition in the defense industry and the commercial industries in which our businesses participate; our introduction of new products into commercial markets or our investments in civil and commercial products or companies; the outcome of litigation matters; results of audits by U.S. Government agencies; anticipated cost savings from business acquisitions not fully realized or realized within the expected time frame; Titan's compliance with its plea agreement and consent to entry of judgment with the U.S. Government relating to the Foreign Corrupt Practices Act Foreign Corrupt Practices Act An amendment to the Securities Exchange Act created to sanction bribery of foreign officials by publicly held US companies. Foreign Corrupt Practices Act (FCPA FCPA Foreign Corrupt Practices Act FCPA Fairfax County Park Authority (Virginia) FCPA Fujitsu Computer Products of America FCPA Fair Campaign Practices Act FCPA Fellow of CPA Australia FCPA Florida Concrete & Products Association ), including Titan's ability to maintain its export licenses as well as the outcome of other FCPA matters; ultimate resolution of contingent matters, claims and investigations relating to acquired businesses, and the impact on the final purchase price allocations; competitive pressure among companies in our industry; and the fair values of our assets, which can be impaired or reduced by other factors, some of which are discussed above. For a discussion of other risks and uncertainties that could impair im·pair tr.v. im·paired, im·pair·ing, im·pairs To cause to diminish, as in strength, value, or quality: an injury that impaired my hearing; a severe storm impairing communications. our results of operations or financial condition, see ''Part I -- Item 1A -- Risk Factors'' and Note 18 to our audited consolidated financial statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge , included in our Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended Dec. 31, 2008. Our forward-looking statements are not guarantees of future performance and the actual results or developments may differ materially from the expectations expressed in the forward-looking statements. As for the forward-looking statements that relate to future financial results and other projections, actual results will be different due to the inherent uncertainties of estimates, forecasts and projections and may be better or worse than projected and such differences could be material. Given these uncertainties, you should not place any reliance on these forward-looking statements. These forward-looking statements also represent our estimates and assumptions only as of the date that they were made. We expressly disclaim dis·claim v. dis·claimed, dis·claim·ing, dis·claims v.tr. 1. To deny or renounce any claim to or connection with; disown. 2. To deny the validity of; repudiate. 3. a duty to provide updates to these forward-looking statements, and the estimates and assumptions associated with them, after the date of this release to reflect events or changes in circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or or changes in expectations or the occurrence of anticipated events. [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] |
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