Orbital Reports Strong Fourth Quarter and Full Year 2004 Financial Results; Annual Earnings and Cash Flow Set New Company Records; Company Updates 2005 Financial Guidance.DULLES Dul·les , Allen Welsh 1893-1969. American public official. Director of the CIA (1953-1961), he resigned after the failed invasion of the Bay of Pigs. Noun 1. , Va. -- Orbital Sciences Corporation Orbital Sciences Corporation (OSC, though commonly referred to as Orbital) is a Dulles, Virginia company which specializes in satellite launch and manufacture. Its Launch Systems Group is heavily involved with missile defense launch systems. (NYSE NYSE See: New York Stock Exchange :ORB (Object Request Broker) Software that handles the communication of messages from the requesting program (client) to the object as well as any return values from the object back to the calling program. See CORBA and DCOM. See also ORB disk. )
Fourth Quarter 2004 Financial Highlights
-- Revenues Increase 11% to $175 Million
-- $156 Million Tax Benefit Recorded
-- Firm Contract Backlog Increases to $1.17 Billion
Full Year 2004 Financial Highlights
-- Annual Revenues Increase 16% to $676 Million
-- Operating Income Increases 56% to $55 Million
-- Free Cash Flow Reaches $53 Million
Orbital Sciences Corporation (NYSE:ORB) today announced its financial results for the fourth quarter and full year 2004, reporting strong increases in revenue, 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 income and cash flow. Orbital's fourth quarter 2004 revenues were $175.2 million, up 11% over fourth quarter 2003 revenues of $157.8 million. Operating income was $12.3 million, as compared to $13.5 million in the same quarter last year. Net income was $166.1 million, or $2.58 per 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. share, in the fourth quarter of 2004, versus $51.7 million, or $0.82 per diluted share, in the same quarter last year. Adjusted net income(1) was $10.6 million, or $0.16 adjusted diluted earnings per share diluted earnings per share An 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 (1), in the fourth quarter of 2004, compared to $11.1 million, or $0.18 adjusted diluted earnings per share, for the fourth quarter of 2003. Adjusted net income for the fourth quarter of 2004 excludes a $156.5 million non-cash tax benefit resulting from the release of a valuation allowance for deferred tax assets. Adjusted net income for the fourth quarter of 2003 excludes a one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. non-cash $40.6 million gain. For the full year, Orbital's 2004 revenues increased 16% to $675.9 million, compared to 2003 revenues of $581.5 million. Operating income was $55.3 million in 2004, up 56% over last year's operating income of $35.6 million. Net income was $200.0 million for the full year, or $3.08 per diluted share, compared to $20.2 million, or $0.35 per diluted share, in 2003. Adjusted net income, which excludes the $156.5 million release of the tax valuation allowance and $2.1 million of debt extinguishment The destruction or cancellation of a right, a power, a contract, or an estate. Extinguishment is sometimes confused with merger, though there is a clear distinction between them. expenses, was $45.6 million for 2004, or $0.70 adjusted diluted earnings per share. These results are significantly higher than the 2003 adjusted net income of $18.4 million, or $0.32 adjusted diluted earnings per share. Orbital orbital Mathematical expression, called a wave function, that describes properties characteristic of no more than two electrons near an atomic nucleus or molecule. An orbital can be considered a three-dimensional region in which there is a 95% probability of finding an reported $52.7 million of full-year free cash flow(1) for 2004, a substantial increase over the $36.9 million of free cash flow for 2003. Commenting on 2004, David W. Thompson Thompson, city, Canada Thompson, city (1991 pop. 14,977), central Man., Canada, on the Burntwood River. A mining town, it developed after large nickel deposits were discovered in the area in 1956. , Chairman and Chief Executive Officer, said, "We are very pleased with our strong financial results for 2004 which reflect positively on our outstanding operational performance last year. The company is beginning 2005 on a very solid footing and we are looking forward to a busy and productive year."
(1) "Free cash flow," "adjusted net income" and "adjusted diluted
earnings per share" are non-GAAP financial measures discussed in
this release. For additional details, please refer to the section
of this press release entitled "Disclosure of Non-GAAP Financial
Measures."
Financial Highlights Summary financial results were as follows (in millions, except per share data):
Fourth Quarter
2004 2003
------- -------
Revenues $175.2 $157.8
Operating Income 12.3 13.5
Net Income 166.1 51.7
Diluted Net Income per Share $2.58 $0.82
Full Year
2004 2003
------- -------
Revenues $675.9 $581.5
Operating Income 55.3 35.6
Net Income 200.0 20.2
Diluted Net Income per Share $3.08 $0.35
Supplemental Financial Information The following information presents the company's adjusted net income, reconciled rec·on·cile v. rec·on·ciled, rec·on·cil·ing, rec·on·ciles v.tr. 1. To reestablish a close relationship between. 2. To settle or resolve. 3. to reported net income, and adjusted diluted earnings per share (see the section of this press release entitled en·ti·tle tr.v. en·ti·tled, en·ti·tling, en·ti·tles 1. To give a name or title to. 2. To furnish with a right or claim to something: "Disclosure of Non-GAAP Financial Measures") (in millions, except per share data):
Fourth Quarter
2004 2003
------- ------
Reported Net Income $166.1 $51.7
Add Debt Extinguishment Expense 1.0 --
Subtract Gain on Reversal of Allocated Losses of
Affiliate -- (40.6)
Subtract Benefit from Reversal of Deferred Tax Asset
Valuation Allowance (156.5) --
------- ------
Adjusted Net Income $10.6 $11.1
------- ------
Adjusted Diluted Earnings Per Share $0.16 $0.18
Diluted Shares 64.3 62.9
Full Year
2004 2003
------- ------
Reported Net Income $200.0 $20.2
Add Debt Extinguishment Expense 2.1 38.8
Subtract Gain on Reversal of Allocated Losses of
Affiliate -- (40.6)
Subtract Benefit from Reversal of Deferred Tax Asset
Valuation Allowance (156.5) --
------- ------
Adjusted Net Income $45.6 $18.4
------- ------
Adjusted Diluted Earnings Per Share $0.70 $0.32
Diluted Shares 65.0 58.2
Revenues Orbital's fourth quarter 2004 revenues were $175.2 million, up 11% over fourth quarter 2003 revenues of $157.8 million. This increase was primarily driven by growth in revenues from science, technology and defense satellite contracts within the company's satellites and related space systems segment. Revenues by segment for the fourth quarter were as follows (in millions):
Fourth Quarter
2004 2003
------- -------
Launch Vehicles $80.1 $89.3
Satellites and Related Space Systems 90.0 60.8
Transportation Management Systems 6.7 9.7
Eliminations (1.6) (2.0)
------- -------
Total Revenues $175.2 $157.8
For the full year, Orbital reported revenues of $675.9 million in 2004, up 16% from $581.5 million in 2003. As in the fourth quarter, this increase was primarily attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to very strong revenue growth in the company's satellites and related space systems segment. Revenues by segment for the year were as follows (in millions):
Full Year
2004 2003
------- -------
Launch Vehicles $323.3 $333.3
Satellites and Related Space Systems 331.7 218.6
Transportation Management Systems 29.1 36.6
Eliminations (8.2) (7.0)
------- -------
Total Revenues $675.9 $581.5
Operating Income Orbital reported operating income of $12.3 million in the fourth quarter of 2004 compared to $13.5 million in the fourth quarter of 2003. Launch vehicles This is a list of space launch vehicles sorted by country/operator in alphabetical order, commercial vehicles are listed under their corresponding country.
Brazil
adj. 1. Of, relating to, located at, or constituting a margin, a border, or an edge: the marginal strip of beach; a marginal issue that had no bearing on the election results. 2. , but this improvement was more than offset by lower satellites and related space systems segment income. The launch vehicles segment results included a $2.0 million early termination fee termination fee The one-time charge for terminating or transferring an individual retirement account. If a financial institution charges a termination fee, the fee must be spelled out in the original agreement that is signed when the account is opened. related to a cancelled can·cel v. can·celed also can·celled, can·cel·ing also can·cel·ling, can·cels also can·cels v.tr. 1. To cross out with lines or other markings. See Synonyms at erase. 2. space launch vehicle contract. This termination fee was offset by a $2.0 million loss in the quarter on a Pegasus Pegasus, in astronomy Pegasus (pĕg`əsəs), in astronomy, northern constellation lying SW of Andromeda and SE of Cygnus. It is named for the mythological winged horse Pegasus. contract due to cost growth resulting from launch delays. The decrease in satellites and related space systems segment income in the fourth quarter of 2004 was largely the result of a loss in the company's communications satellites communications satellite artificial satellite that functions as part of a global radio-communications network. Echo 1, the first communications satellite, launched in 1960, was an instrumented inflatable sphere that passively reflected radio signals back to product line due to cost growth on one contract and an operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. on a contract awarded late in 2003. Operating income by segment for the fourth quarter was as follows (in millions):
Fourth Quarter
2004 2003
------ ------
Launch Vehicles $7.9 $7.5
Satellites and Related Space Systems 4.1 5.9
Transportation Management Systems 0.3 0.3
Corporate and Other -- (0.2)
------ ------
Total Operating Income $12.3 $13.5
For the full year, operating income was $55.3 million, a 56% increase over operating income of $35.6 million in 2003. Launch vehicles segment operating income for the year decreased largely in line with the decrease in the revenues in the segment. Satellites and related space systems segment operating income increased 47% largely due to a $12.6 million profit growth in the science, technology and defense satellite product line, driven by significantly higher revenues in this product line, offset by lower profit in the company's communications satellites product line. The decrease in communications satellite income was primarily attributable to the completion and launch of the BSAT-2c satellite in 2003, the receipt in 2003 of a $2.0 million fee associated with the cancellation cancellation (See: cancel) CANCELLATION. Its general acceptation, is the act of crossing a writing; it is used sometimes to signify the manual operation of tearing or destroying the instrument itself. Hyde v. Hyde, 1 Eq. Cas. Abr. 409; Rob. of a contract and an operating loss in 2004 on a contract awarded in late 2003. Transportation management systems segment results improved by $8.8 million in full year 2004, compared to a loss in that segment last year resulting from contract cost increases and other expenses that did not recur in 2004. Two additional factors that are not attributable to the company's operating segments added to the year-over-year growth in operating income. First, a $2.5 million non-recurring gain was recorded in the first quarter of 2004 on the sale of notes that the company had received from a former affiliate Affiliate Relationship between two companies when one company owns substantial interest, but less than a majority of the voting stock of another company, or when two companies are both subsidiaries of a third company. See: Subsidiaries, parent company. , and second, the company recorded $4.8 million in 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. settlement charges in 2003. Operating income by segment for the year was as follows (in millions):
Full Year
2004 2003
------ ------
Launch Vehicles $30.1 $32.8
Satellites and Related Space Systems 21.5 14.6
Transportation Management Systems 1.2 (7.6)
Corporate and Other 2.5 (4.2)
------ ------
Total Operating Income $55.3 $35.6
Release of Tax Valuation Allowance Until the fourth quarter of 2004, Orbital had recorded a valuation allowance to fully reserve its net deferred tax assets. In the fourth quarter, the company determined that it is more likely than not that the company will be able to utilize a substantial portion of its net operating loss carryforwards Net operating loss carryforwards Application of losses to offset earnings in future years. and other deferred tax assets prior to their expiration EXPIRATION. Cessation; end. As, the expiration of, a lease, of a contract, or statute. 2. In general, the expiration of a contract puts an end to all the engagements of the parties, except to those which arise from the non- fulfillment of obligations created . As a result, the company released $212.6 million of its deferred tax asset valuation allowance and recorded a $156.5 million income tax benefit on the company's income statement. The remaining portion of the valuation release was recorded as a $39.7 million reduction in goodwill and a $16.4 million increase to additional paid-in capital additional paid-in capital Stockholder contributions that are in excess of a stock's stated or par value. For example, if a firm issues stock with a par value of $1 per share but sells the stock to investors at $10 per share, the firm's financial statements on the balance sheet. The portion of the release recorded as a reduction in goodwill relates to valuation allowances established in prior years in connection with business acquisitions. The portion of the release recorded as an increase to additional paid-in capital is primarily related to tax benefits associated with stock option exercises in 2004 and prior years. As of December December: see month. 31, 2004, Orbital had approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $560 million of net deferred tax assets, including nearly $440 million of net operating loss carryforwards, which will be available to offset future taxable income Under the federal tax law, gross income reduced by adjustments and allowable deductions. It is the income against which tax rates are applied to compute an individual or entity's tax liability. The essence of taxable income is the accrual of some gain, profit, or benefit to a taxpayer. . Net Income Net income for the fourth quarter of 2004 was $166.1 million, or $2.58 per diluted share, as compared to $51.7 million, or $0.82 per diluted share, in the fourth quarter of 2003. The fourth quarter of 2004 includes the $156.5 million, or $2.43 per diluted share valuation allowance release discussed above, and debt extinguishment expenses related to the replacement of a prior credit agreement with a new credit agreement. Last year's fourth quarter net income included a $40.6 million gain on reversal reversal n. the decision of a court of appeal ruling that the judgment of a lower court was incorrect and is reversed. The result is that the lower court which tried the case is instructed to dismiss the original action, retry the case, or is ordered to change its of allocated losses of a former affiliate. Adjusted net income, which excludes the valuation allowance release and the debt extinguishment expenses, was $10.6 million for the fourth quarter of 2004. Adjusted net income for the same quarter last year was $11.1 million, excluding the $40.6 million gain. Full year 2004 net income was $200.0 million, or $3.08 per diluted share, versus $20.2 million, or $0.35 per diluted share, in 2003. Net income in 2004 included the tax valuation allowance release discussed above and $2.1 million of debt extinguishment expenses. Net income in 2003 included the $40.6 million gain on reversal of allocated losses of a former affiliate referred to above, offset by $38.8 million in debt extinguishment expenses related to debt refinancing Refinancing An extension and/or increase in amount of existing debt. transactions. Adjusted net income in 2004 was $45.6 million, compared to adjusted net income of $18.4 million in 2003. The significant improvement in adjusted net income is due primarily to the $19.8 million increase in operating income, in addition to a $7.3 million reduction in interest expense resulting from the 2003 refinancing transactions. Cash Flow and Balance Sheet The company reported free cash flow of $52.7 million for the full year 2004 resulting from solid operating results and sound working capital management. In addition, $10.9 million in cash became unrestricted in 2004 due to a decrease in cash restricted for letters of credit. The company also received $18.1 million in 2004 from the issuance of common stock, primarily in connection with exercises of stock options and warrants. In addition, the company repurchased and retired 595,000 common shares for $7.0 million and repurchased and cancelled $8.6 million of its 9% senior notes at a cost of $9.6 million. In December 2004, Orbital entered into a new five-year $50 million credit agreement, replacing its prior credit agreement. The new credit agreement gives Orbital greater flexibility and more favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. terms. Orbital's unrestricted cash balance was $125.5 million as of December 31, 2004. The company's cash flow was as follows (in millions):
Fourth
Quarter Full Year
2004 2004
--------- ---------
Net Cash Provided by Operating Activities $5.8 $67.0
Capital Expenditures (5.8) (14.3)
--------- ---------
Free Cash Flow -- 52.7
Net Decrease in Cash Restricted for Letters of
Credit 5.3 10.9
Repayment of Debt and Other (0.4) (10.1)
Repurchase of Common Stock -- (7.0)
Proceeds from Issuance of Common Stock 0.9 18.1
--------- ---------
Net Increase in Cash 5.8 64.6
Beginning Cash Balance 119.7 60.9
--------- ---------
Ending Cash Balance $125.5 $125.5
Summary balance sheet data as of December 31, 2004 is as follows (in millions):
Assets Liabilities and Equity
------------------------------- --------------------------------------
Cash and Equivalents $125.5 Short-Term Debt $0.2
Other Current Assets 201.9 Other Current Liabilities 140.9
Property and Equipment 83.2 Long-Term Debt 128.4
Goodwill 55.6 Other Non-Current Liabilities 0.2
Other Assets 197.6 Stockholders' Equity 394.1
------- -------
Total Assets $663.8 Total Liabilities and Equity $663.8
New Business Highlights During the fourth quarter of 2004, Orbital received approximately $120 million in new firm and option contract bookings. In addition, the company received approximately $510 million of option exercises under existing contracts. For the year as a whole, Orbital received about $505 million in new firm and option contracts and $665 million of option exercises under existing contracts. As of December 31, 2004, the company's firm contract 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. was approximately $1.17 billion and its total backlog (including options, indefinite-quantity contracts and undefinitized orders) was approximately $2.31 billion. Operational Highlights In the fourth quarter of 2004, Orbital conducted four major launch systems missions. These included two ballistic bal·lis·tic adj. 1. a. Of or relating to the study of the dynamics of projectiles. b. Of or relating to the study of the internal action of firearms. 2. target vehicles for the Missile Defense Missile defence is an air defence system, weapon program, or technology involved in the detection, tracking, interception and destruction of attacking missiles. Originally conceived as a defence against nuclear-armed ICBMs, its application has broadened to include shorter-ranged Agency (MDA (1) (Monochrome Display Adapter) The first IBM PC monochrome video display standard for text. Due to its lack of graphics, MDA cards were often replaced with Hercules cards, which provided both text and graphics. See PC display modes and Hercules Graphics. ), one high-speed high-speed adj. 1. Operated or designed for operation at high speed: a high-speed food processor. 2. Taking place at high speed: a high-speed chase. 3. sea-skimming cruise missile cruise missile, low-flying, continuously powered offensive missile designed to evade defense systems. Although the German V-1 (1944) was a simple cruise missile, the cruise missile did not realize its potential until the 1970s, when the United States sought to target (SSST SSST Southeastern Symposium on System Theory SSST Supersonic Sea Skimming Target SSST Short Scottish Secure Tenancy (Scottish law) SSST Stealth Satellite System Terminator SSST Space Station Systems Trainer ) for the U.S. Navy and the third launch of the Hyper-X launch vehicle that propelled NASA's X-43A scramjet scramjet: see jet propulsion. to a new world speed record for an air-breathing Adj. 1. air-breathing - deriving oxygen from the air; "he studied respiration in marine air-breathing vertebrates"; "large air-breathing ichthyosaurs had hydrofoils" engine. The company also delivered two satellites for future space missions and three additional Orbital Boost Vehicle (OBV OBV Obviously OBV On Balance Volume (market momentum indicator that relates volume to price change; developed by Joseph Granville) OBV Orbital Boost Vehicle OBV On Board Video OBV Obligated Volunteer ) interceptors for the national missile defense National Missile Defense (NMD) as a generic term is a military strategy and associated systems to shield an entire country against incoming Intercontinental Ballistic Missiles (ICBMs). The missiles could be intercepted by other missiles, or possibly by lasers. system. "For the year as a whole, Orbital carried out 11 successful space missions in 2004, while also delivering an additional 20 rockets The following a list of rockets. Launch systems Known as "space rockets", these vehicle families have had launch attempts.
In 2005, Orbital expects to carry out more than 30 space missions and to complete and deliver an additional 12 to 14 satellites and launch vehicles for future missions. The company plans to produce and deliver 12 or 13 OBV interceptors in 2005, including another 10 operational vehicles for on-alert deployment Installing, setting up, testing and running. This military term, which means the placement of troops and equipment in the field, is widely used with computers as an alternate to the word "implementation. and several vehicles for flight tests. During the year, the company expects to launch about 15 target vehicles, including the first production vehicles of the SSST program for the U.S. Navy and numerous medium- and long-range long-range adj. 1. Of, suitable for, or reaching long distances: long-range missiles. 2. Requiring or involving an extended span of time: long-range planning. ballistic targets for MDA flight test programs. Orbital is currently scheduled to launch two Pegasus and three Minotaur Minotaur: see Minos. Minotaur In Greek mythology, a monster of Crete with the body of a man and the head of a bull. It was the offspring of Pasiphaë, wife of King Minos, and a snow-white bull sent by Poseidon and intended for sacrifice. space launch vehicles this year as well. Orbital is also on track to complete, deliver and deploy three geosynchronous Aligned with the earth's rotational speed. Refers to satellites that travel at the same speed as the earth, but may not always be at the same distance from the earth. See geostationary. communications satellites and eight science and defense satellites for U.S. and international government and commercial customers in 2005. 2005 Guidance Update The company updated its financial guidance, indicating that it expects that 2005 revenues will be in the $700 to $725 million range and operating income margin will be in the 8.0% to 8.5% range. Beginning in 2005, Orbital will record income tax expense on current earnings at an effective tax rate of approximately 40%. However, the company does not expect to pay significant cash income taxes in the foreseeable fore·see tr.v. fore·saw , fore·seen , fore·see·ing, fore·sees To see or know beforehand: foresaw the rapid increase in unemployment. future since it will utilize net operating loss carryforwards and other deferred tax assets to offset taxable income. The company expects to pay cash taxes at a nominal Trifling, token, or slight; not real or substantial; in name only. Nominal capital, for example, refers to extremely small or negligible funds, the use of which in a particular business is incidental. NOMINAL. Relating to a name. rate of approximately 2% attributable to alternative minimum taxes. Orbital expects to adopt SFAS SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System No. 123(R) in the third quarter of 2005. The new accounting standard requires companies to record compensation expense for its employee share-based awards such as stock options. Including non-cash tax expense and SFAS No. 123(R) compensation expense, the company expects that 2005 diluted earnings per share will be in the $0.40 to $0.45 range, based on estimated average diluted shares of 65 to 67 million. The company is expecting free cash flow of $40 to $45 million for 2005. Disclosure of Non-GAAP Financial Measures The following are provided as definitions of non-GAAP (Generally Accepted Accounting Principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting ) financial measures used by the company within this press release. Orbital does not intend for the information to be considered in isolation or as a substitute for the related GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). measures. Other companies may define these measures differently. Free cash flow is defined as GAAP net cash provided by operating activities (the most directly comparable GAAP financial measure) less capital expenditures for property, plant and equipment. Management believes that free cash flow provides investors with an important perspective on the company's liquidity, financial flexibility and ability to fund operations and service debt. Adjusted net income is defined as GAAP net income (the most directly comparable GAAP financial measure) excluding: (i) debt extinguishment expenses, (ii) gain on reversal of allocated losses of affiliate, (iii) the income tax benefit related to the reversal of the deferred tax asset valuation allowance, (iv) the portion of income tax expense that will be offset by currently available net operating losses Net operating losses Losses that a firm can take advantage of to reduce taxes. and other deferred tax assets and (v) compensation expense related to employee share-based awards. Adjusted diluted earnings per share is equal to adjusted net income divided by diluted shares. Management believes these measures provide investors with a more complete understanding of the company's operational performance during these periods without regard to debt extinguishment expenses, gain on reversal of allocated losses of affiliate and the income tax benefit described above. About Orbital Orbital develops and manufactures small space and rocket systems for commercial, military and civil government customers. The company's primary products are satellites and launch vehicles, including low-orbit, geosynchronous and planetary plan·e·tar·y adj. 1. Of, relating to, or resembling the physical or orbital characteristics of a planet or the planets. 2. a. spacecraft spacecraft Vehicle designed to operate, with or without a crew, in a controlled flight pattern above Earth's lower atmosphere. Since streamlining is not needed in the high vacuum of this environment, a spacecraft's shape is designed according to its mission (see for communications, remote sensing Deriving digital models of an area on the earth. Using special cameras from airplanes or satellites, either the sun's reflections or the earth's temperature is turned into digital maps of the area. , scientific and defense missions; ground- and air-launched rockets that deliver satellites into orbit; and missile defense systems Noun 1. missile defense system - naval weaponry providing a defense system missile defence system naval weaponry - weaponry for warships that are used as interceptor and target vehicles. Orbital also offers space-related technical services to government agencies and develops and builds satellite-based transportation management systems for public transit transit, in astronomy, passage of a body across a meridian or passage of a small body across the visible disk of a larger one. (The passage of a large body across a smaller one is called an eclipse or occultation. agencies and private vehicle fleet operators. 2005 Annual Stockholders Meeting Orbital's annual stockholders meeting will be held at 9:00 a.m. on Thursday Thursday: see week. , April 28, 2005, at the company's headquarters in Dulles, Virginia Dulles, Virginia is an unincorporated census-designated place located in Loudoun County, Virginia, part of the Washington Metropolitan Area. The headquarters of AOL, Orbital Sciences Corporation and ODIN technologies and the former headquarters of MCI Inc. are located in Dulles. . A transcript A generic term for any kind of copy, particularly an official or certified representation of the record of what took place in a court during a trial or other legal proceeding. A transcript of record of the earnings teleconference call will be available on Orbital's website at http://www.orbital.com/Investor "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 Certain statements in this press release may be forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. in nature or "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. " as defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks, trends and uncertainties that could cause the actual results or performance of the company to be materially different from the forward-looking statement. Uncertainty surrounding sur·round tr.v. sur·round·ed, sur·round·ing, sur·rounds 1. To extend on all sides of simultaneously; encircle. 2. To enclose or confine on all sides so as to bar escape or outside communication. n. factors such as continued government support and funding for key space and defense programs, product performance and market acceptance of products and technologies, as well as other risk factors and business considerations described in the company's SEC filings, including the 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. , as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. , could impact Orbital's actual financial and operational results. Orbital assumes no obligation for updating the information contained in this press release.
-- attachments below --
ORBITAL SCIENCES CORPORATION
Condensed Consolidated Income Statements
(in thousands, except per share data)
Fourth Quarter
2004 2003
--------- ---------
Revenues $175,185 $157,790
Costs of goods sold 149,843 128,184
--------- ---------
Gross profit 25,342 29,606
Research and development expenses 1,656 2,605
Selling, general and administrative expenses 11,400 13,220
Settlement expense -- 284
--------- ---------
Income from operations 12,286 13,497
Other income, net 1,117 220
Interest expense (2,742) (2,915)
Gain on reversal of allocated losses of affiliate -- 40,586
Debt extinguishment expense (961) --
--------- ---------
Income before income taxes 9,700 51,388
Income tax benefit 156,358 265
--------- ---------
Net income $166,058 $51,653
========= =========
Basic net income per share $3.22 $1.09
========= =========
Diluted net income per share $2.58 $0.82
========= =========
Shares used in computing basic net income per
share 51,526 47,563
Shares used in computing diluted net income per
share 64,322 62,906
ORBITAL SCIENCES CORPORATION
Condensed Consolidated Income Statements
(in thousands, except per share data)
Full Year
2004 2003
--------- ---------
Revenues $675,935 $581,500
Costs of goods sold 566,787 477,273
--------- ---------
Gross profit 109,148 104,227
Research and development expenses 6,311 7,835
Selling, general and administrative expenses 50,052 56,963
Settlement expense (2,538) 3,871
--------- ---------
Income from operations 55,323 35,558
Other income, net 2,290 1,347
Interest expense (11,386) (18,683)
Gain on reversal of allocated losses of affiliate -- 40,586
Debt extinguishment expense (2,099) (38,836)
--------- ---------
Income before income taxes 44,128 19,972
Income tax benefit 155,872 265
--------- ---------
Net income $200,000 $20,237
========= =========
Basic net income per share $4.03 $0.43
========= =========
Diluted net income per share $3.08 $0.35
========= =========
Shares used in computing basic net income per
share 49,658 46,718
Shares used in computing diluted net income per
share 65,022 58,221
ORBITAL SCIENCES CORPORATION
Condensed Consolidated Balance Sheets
(in thousands)
December 31,
2004 2003
--------- ---------
Assets
Cash $125,504 $60,900
Receivables, net 149,480 149,508
Inventory 13,565 12,642
Deferred income taxes, net 26,710 --
Other current assets 12,195 24,754
--------- ---------
Total current assets 327,454 247,804
Property, plant and equipment, net 83,154 82,364
Goodwill 55,551 95,293
Deferred income taxes, net 185,940 --
Other non-current assets 11,671 13,839
--------- ---------
Total Assets $663,770 $439,300
========= =========
Liabilities and Stockholders' Equity
Short-term borrowings $161 $297
Accounts payable and accrued expenses 121,454 116,026
Deferred revenues 19,478 16,292
--------- ---------
Total current liabilities 141,093 132,615
Long-term debt 128,375 137,116
Other non-current liabilities 178 2,692
Total stockholders' equity 394,124 166,877
--------- ---------
Total Liabilities and Stockholders' Equity $663,770 $439,300
========= =========
ORBITAL SCIENCES CORPORATION
Condensed Consolidated Statements of Cash Flows
(in thousands)
Fourth Full
Quarter Year
2004 2004
--------- ---------
Net income $166,058 $200,000
Depreciation and amortization 4,043 15,009
Deferred income taxes, net (156,471) (156,471)
Amortization of debt costs 195 860
Debt extinguishment expense 961 2,099
Changes in assets and liabilities (9,033) 5,819
Other 57 (318)
--------- ---------
Net cash provided by operating activities 5,810 66,998
--------- ---------
Capital expenditures (5,778) (14,340)
Decrease in cash restricted for letters of credit,
net 5,360 10,941
--------- ---------
Net cash used in investing activities (418) (3,399)
--------- ---------
Repayment of debt and other (437) (10,109)
Repurchase of common stock -- (7,000)
Net proceeds from issuance of common stock 886 18,114
--------- ---------
Net cash provided by financing activities 449 1,005
--------- ---------
Net increase in cash 5,841 64,604
Cash, beginning of period 119,663 60,900
--------- ---------
Cash, end of period $125,504 $125,504
========= =========
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