L-3 Communications Announces 1997 Results; 1997 Pro Forma Net Income Increases 68 Pecent.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 , N.Y.--(BUSINESS WIRE)--Feb. 17, 1998--L-3 Communications today announced increased results in 1997 -- exceeding the goals established when the company was formed in April, 1997. For the year ended December 31, 1997, pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma net income was $16.3 million, a 68 percent increase compared to pro forma net income of $9.7 million for the same period in 1996. Pro forma 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. increased 16.8 percent to $65.2 million, compared to pro forma operating income of $55.8 million for the same period in 1996. As a percentage of sales, pro forma operating income increased to 9.3 percent for 1997, compared to 8.4 percent in 1996. Pro forma sales increased 6.1 percent to $703.6 million, compared to pro forma sales of $663.2 million for the same period in 1996 Pro forma EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become was $92.7 million, versus pro forma EBITDA of $82.4 million in the comparable 1996 period. The pro forma results of operations have been adjusted to reflect the formation 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 Corporation and the related acquisition and financing of the businesses and the disposition of Hycor as of January 1, 1996. 12th Largest U.S. Defense Business "I am particularly proud of our achievements in 1997," said Frank C. Lanza, chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of the defense electronics and communications company. "We exceeded all our financial targets for the year." "Our growth was driven by every segment of our business," he continued. "Secure communication systems, microwave components, avionics, displays and telemetry telemetry Highly automated communications process by which data are collected from instruments located at remote or inaccessible points and transmitted to receiving equipment for measurement, monitoring, display, and recording. and instrumentation products all outperformed for the fourth quarter of 1997 and for the year." Mr. Lanza said that these impressive results reflect consolidation of ten businesses purchased from Lockheed Martin when the company was formed in April, 1997. "We made significant improvements in our operating margins, and at the same time, we set sales, profit and cash goals for our divisions and they exceeded them." Mr. Lanza also noted that, along with its growth in defense electronics, the company also achieved an important milestone with its commercial technology. Recently, the company began to ship its first wireless data and telephony units to operators. In December of 1997, L-3 Communications initiated its strategy of making key acquisitions that enhance current products and also add to its product base. The company announced the purchase of Satellite Transmission Systems (STS (Synchronous Transport Signal) The electrical equivalent of the SONET optical signal. In SDH, the European counterpart of SONET, STS is known as STM (Synchronous Transport Module). ) from California Microwave, which was completed in February, 1998. This business is a leading global satellite communications and network provider, enhancing L-3 Communications' space and wireless products. Also in December, 1997, L-3 Communications signed a definitive agreement with Allied Signal for the purchase of Ocean Systems. Ocean Systems is a world leader in providing surface and underseas sonar products to the U.S. Navy, foreign fleets and commercial navigation customers. In February, 1998, the company announced that it had signed a definitive purchase agreement for the assets of ILEX Ilex a bush bearing berries containing saponins; cause vomiting, diarrhea. Called also holly. Systems, a leader in communications software support and related products to military and government intelligence markets. "With these acquisitions," continued Mr. Lanza, "L-3 Communications will reach another important milestone. Our annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. sales will exceed one billion dollars, making us the 12th largest U.S. defense business." Fourth Quarter Net income for the fourth quarter ended December 31, 1997 rose to $8.4 million, a 10.5 percent increase over pro forma net income of $7.6 million for the same period in 1996. Operating income for the fourth quarter was $22.9 million and included development contract costs of $3.3 million related to ongoing efforts for EDS (Electronic Data Systems, Plano, TX, www.eds.com) Founded in 1962 by H. Ross Perot (independent candidate for the President of the U.S. in 1992), EDS is the largest outsourcing and data processing services organization in the country. . These efforts were essentially completed in early January, 1998 and the company is preparing for FAA certification testing in the latter part of the first quarter of 1998. Excluding such EDS contract costs, operating income amounted to $27.8 million, an increase of 21.3 percent over pro forma operating income of $21.6 million for the comparable 1996 period. As a percentage of sales, excluding the aforementioned EDS contract costs, operating income increased to 12.9 percent in the fourth quarter, compared to 12.3 percent in the same period in 1996. Sales for the fourth quarter increased 15.7 percent to $203.7 million, compared to pro forma sales of $176 million for the same period in 1996. Funded orders were $204.3 million for the fourth quarter, compared to $284 million in the same period a year ago. For the year ended December 31, 1997, funded orders were $711.5 million, compared to $752.0 million for the same period in 1996. The reduction in funded orders for the fourth quarter and the year result from the acceleration of calendar 1997 awards on TRAC-A antennas for the E2-C aircraft as well as data link programs into 1996. Without this acceleration, funded orders would have increased by 7 percent for the year. Funded backlog was $516.9 million at December 31, 1997, compared to $542.5 million in 1996. 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.
A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. at December 31, 1997 was $132.7 million and cash totaled $77.5 million. During the fourth quarter, there were a number of important contract awards that were announced: In November, the Space and Naval Warfare Systems Command awarded Communication Systems - West in Salt Lake City, Utah For ships of the United States Navy of the same name, see . Salt Lake City is the capital and the most populous city of the U.S. state of Utah. The name of the city is often shortened to Salt Lake, or its initials, S.L.C. , a $25.5 million modification to a previously awarded contract. The program is known as Common High Bandwidth Data Link (CHBDL CHBDL Common High Bandwidth Data Link ), and on this contract, the division will provide data link systems and related services in support of reconnaissance/ surveillance data collection aboard aircraft carriers. Aviation Recorders won a significant contract in November to supply advanced solid-state Flight Data Recorders (FDRs) and Cockpit Voice Recorders for American Airlines' new Boeing aircraft. In addition, American will retrofit its existing aircraft with the divisions' FDRs. Total value of the order, with options, could exceed $16 million. Continental, Delta and Bombardier Aerospace also selected these recorders for their fleet. In October, Lockheed Martin Missiles and Space awarded a $9.5 million contract to the Conic and Communication Systems - East divisions. The Space-Based Infrared System  This article or section is in need of attention from an expert on the subject.Please help recruit one or [ improve this article] yourself. See the talk page for details. (SBIRS SBIRS Space-Based Infrared System SBIRS Space Based Infra-Red Surveillance ) contract includes a COMSEC/TRANSEC processor, which provides all decryption (cryptography) decryption - Any procedure used in cryptography to convert ciphertext (encrypted data) into plaintext. , encryption and transmission security capabilities for the R1, R2, R3 and R4 transmission links. The award also includes SGLS SGLS Space-Ground Link System (USAF) SGLS Space/Ground Link Subsystem SGLS Satellite Ground Link Set Transponders, which receive and process commands, data uploads and ranging signals and transmit telemetry and ranging data. Hughes Space and Communications Company announced in October that it selected the Telemetry and Instrumentation division to deliver seven Payload Control System (PCS (1) (Personal Communications Services) Refers to wireless services that emerged after the U.S. government auctioned commercial licenses in 1994 and 1995. This radio spectrum in the 1. ) Baseband Subsystems, comprising a total of 19 NeTstar(TM) PC satellite telemetry and command systems. These subsystems will support 12 Hughes HS 601 satellites being built for UK-based ICO ICO Icon (File Name Extension) ICO In Case Of ICO Information Commissioner's Office (UK) ICO Instituto de Crédito Oficial (Spain: Official Credit Institute) Global Communications. Other awards for the fourth quarter include: Narda sold 365 cell site safety monitors to AT&T Wireless Services for installation in cellular base stations throughout Florida for $3.5 million. In addition, Narda has now shipped in excess of 100,000 couplers to Motorola for use in various analog and digital base stations. The cumulative value of this order presently exceeds $20 million. Communication Systems - East was selected as the systems integrator for GTE GTE General Telephone & Electronics GTE Génie Thermique et Énergie (French) GTE Gas Turbine Engine GTE Global Tropospheric Experiment GTE Geothermal Energy GTE Gas Turbine Efficiency plc (Sweden & USA) , the prime contractor on the ViViD program, providing the next generation of interior/exterior communications for the LHA-1 class of ships. In addition, the division received a number of contracts, including $3.9 million from the US Army for its IREMBASS IREMBASS Improved Remotely Monitored Battlefield Sensor System equipment, an unattended ground sensor that detects, classifies and determines the direction of movement of personnel, wheeled vehicles and tracked vehicles. There was also a $3.2 million order for its tactical Secure Terminal Equipment (STE STE Saint (French) STE Suite (US Postal Service) STE Societe (French: Society) STE Spanning Tree Explorer STE Software Test Engineer ) from the US Army for an additional purchase of 700 terminals and the division received over $10 million in Intelligence Processing Systems contract awards and extensions. In November, Communication Systems - West division was awarded a $10.9 million contract to provide the Data Link System for the United Kingdom's Raptor (UK 1368) Program. Raptor is a Ministry of Defence program that provides near-real-time reconnaissance imagery using Tornado aircraft. L-3 Communications' division will supply the system to UK's Raytheon Systems Limited and the US's Raytheon Optical Systems, Inc., the prime contractor and supplier of the program's long range reconnaissance sensors. Aviation Recorders received an order from the US Navy for 66 shipsets of solid state Cockpit Voice Recorders and Flight Data Recorders. This contract is valued at $3.1 million. Conic Division continued to receive a high percentage of space product competitive wins in the fourth quarter. They include transponder A receiver/transmitter on a communications satellite. It receives a microwave signal from earth (uplink), amplifies it and retransmits it back to earth at a different frequency (downlink). A satellite has several transponders. and encryption contracts of $2.5 million on QUICKSAT with Ball Aerospace for a JPL (language) JPL - JAM Programming Language. experimental satellite, with Lockheed Martin on the Low Altitude Demonstration System (LADS) for the Low Earth SBIRS competition and on Clementine Clementine forty-niner’s drowned daughter; “lost and gone forever.” [Am. Music: Leach, 236] See : Grief II with Orbital Sciences for an NRL Noun 1. NRL - the United States Navy's defense laboratory that conducts basic and applied research for the Navy in a variety of scientific and technical disciplines Naval Research Laboratory mission. 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 Communications is an independent company, jointly owned by Frank C. Lanza, chairman and chief executive officer, Robert V. LaPenta, president and chief financial officer, Lehman Brothers Capital Partners III and Lockheed Martin. The company is an independent merchant supplier of secure communication systems and products, microwave components, avionics, and telemetry, instrumentation and wireless products. Its customers include the Department of Defense, selected U.S. government intelligence agencies, aerospace and defense prime contractors and commercial telecommunications and cellular customers. NOTE: Any reference to the development of products, growth rates Growth Rates The compounded annualized rate of growth of a company's revenues, earnings, dividends, or other figures. Notes: Remember, historically high growth rates don't always mean a high rate of growth looking into the future. or the continued success of the company's current product offerings constitutes forward-looking information and actual future results may vary materially. There can be no assurance of the rate of growth of the industry or of the company, that the company's products will enjoy continued success or that any products in development will ever be commercially released or that, if released, such products will contribute revenues to the company sufficient to recoup or exceed their development cost. For a discussion of these and other factors that could affect L-3 Communications' business and financial results, see information contained in the company's filings at the Securities and Exchange Commission. -0-
L-3 COMMUNICATIONS CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions)
Three Months Ended Year Ended
December 31, December 31,
1997 1996(a) 1997(a) 1996(a)
Sales $ 203.7 $ 176.0 $ 703.6 $ 663.2
Costs and Expenses 180.8 154.4 638.4 607.4
Operating Income 22.9 21.6 65.2 55.8
Interest Income .9 1.4
Interest Expense 10.1 9.9 39.8 39.7
Income Before
Income Taxes 13.7 11.7 26.8 16.1
Income Taxes 5.3 4.1 10.5 6.4
Net Income $ 8.4 $ 7.6 $ 16.3 $ 9.7
(a) The pro forma statements of operations assume the formation of L-3
Communications and the related acquisition and financing and the
disposition of Hycor had occurred on January 1, 1996.
L-3 COMMUNICATIONS CORPORATION
SELECTED FINANCIAL DATA
(In millions)
Three Months Ended Year Ended
December 31, December 31,
1997 1996(a) 1997(a) 1996(a)
EBITDA (b) $ 30.9 $ 27.7 $ 92.7 $ 82.4
Depreciation and Amortization $ 8.0 $ 6.1 $ 27.5 $ 26.6
(d)
Orders (Funded) $204.3 $284.0 $711.5 $752.0
Backlog (Funded) at
December 31, $516.9 $542.5
Cash & Cash Equivalents $ 77.5 (c)
Total Debt $397.0 (c)
Shareholders' Equity $132.7 (c)
(a) Pro forma selected financial data reflect the formation of L-3 Communications and the related acquisition and financing of the businesses and the disposition of Hycor as of January 1, 1996. (b) EBITDA is defined as operating income plus depreciation and amortization. (c) Not meaningful, businesses were divisions of other entities. (d) Excludes amortization of deferred financing costs. CONTACT: L-3 Communications Cynthia Swain 212/697-1111 |
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