Printer Friendly

ALLIANT TECHSYSTEMS REPORTS FY94 SECOND QUARTER NET INCOME OF $8.3 MILLION OR 82 CENTS PER SHARE

 MINNEAPOLIS, Oct. 28 /PRNewswire/ -- Alliant Techsystems (NYSE: ATK) today said net income for the second quarter of fiscal 1994, which ended Oct. 3, was $8.3 million or 82 cents per share, compared with a net loss of $5.8 million or 58 cents per share a year ago.
 Net income in the current quarter benefited from tax loss carryforwards related to restructuring charges recorded in fiscal year 1993.
 Toby G. Warson, president and chief executive officer, said results for the second quarter were generally in line with expectations. "Sales for the quarter were somewhat lower than anticipated; however, we expect volume to strengthen in the second half as shipments begin to accelerate," Warson said.
 Alliant Techsystems has traditionally recorded the majority of its sales in the last two quarters of its fiscal year.
 Second-quarter sales were $137.9 million, compared with $289.9 million a year ago. Sales from Defense Systems were $97.5 million, compared with $192.8 million last year reflecting the completion of several production programs. Marine Systems sales were $40.4 million versus $97.1 million a year ago primarily due to lower sales of torpedoes.
 As previously disclosed, Alliant Techsystems said it expects sales for fiscal 1994 to decline 20 to 25 percent from the $1.0 billion level reported in fiscal 1993.
 Operating profit in the second quarter was $9.7 million or 7.0 percent of sales, compared with $21.9 million or 7.5 percent of sales in the same period a year ago. (Operating profit is gross margin less operating expenses, exclusive of restructuring costs.)
 Profit from continuing operations before income taxes in the second quarter was $7.9 million or 5.8 percent of sales, compared with $16.9 million or 5.8 percent of sales last year.
 Warson said the company ended the second quarter with a strong cash balance. After restructuring expenses of approximately $11.0 million and debt payments of $13.9 million, the cash balance at the end of the quarter was $39.9 million, compared with $25 million a year ago. Cash flow from operations, excluding restructuring costs, was at break even in the second quarter. In the same quarter a year ago, operations used cash totaling $10 million.
 Backlog was up slightly from the end of the previous quarter to approximately $1.1 billion or approximately 16 months of sales. Second- quarter orders totaled $186 million.
 As previously announced, Alliant Techsystems completed the acquisition of the Accudyne and Kilgore subsidiaries of Astra UPC Corporation shortly after the end of the second quarter. Warson said the addition of the two companies will improve manufacturing cost competitiveness, strengthen core capabilities in areas such as fuzing mechanisms, and expand the company's base through the addition of new products.
 For the six months ended Oct. 3, 1993, net income was $16.7 million or $1.65 per share, compared with a net loss of $32.4 million or $3.23 a year ago.
 Sales in the first half were $306.4 million, compared with $470.4 million last year. Operating profit for the six-month period was $18.6 million versus $33.9 million last year.
 Alliant Techsystems supplies defense and marine systems to the U.S. government and its allies. The company is headquartered in Hopkins, Minn., and employs 4,900 people throughout the United States.
 ALLIANT TECHSYSTEMS
 INCOME STATEMENTS
 (Unaudited)
 (Dollars in thousands, except per share amounts)
 Quarter Ended Six Months Ended
 10/3/93 9/27/92 10/3/93 9/27/92
 Sales $137,923 $289,941 $306,410 $470,439
 Costs of sales 112,841 238,087 254,891 387,809
 Gross margin 25,082 51,854 51,519 82,630
 OPERATING EXPENSES
 Research and development 3,038 4,552 5,014 6,966
 Selling 6,583 14,032 15,126 23,823
 General and administrative 5,739 11,398 12,808 17,989
 Restructuring charges -- 1,134 -- 1,837
 Total operating expenses 15,360 31,116 32,948 50,615
 Income from operations 9,722 20,738 18,571 32,015
 OTHER INCOME (EXPENSE)
 Interest expense (2,150) (3,362) (4,646) (6,797)
 Interest income 632 68 1,338 404
 Miscellaneous income (257) (494) 1,434 1,036
 Total other income (expense) (1,775) (3,788) (1,874) (5,357)
 Income from continuing operations
 before income taxes 7,947 16,950 16,697 26,658
 Income tax provision (375) 6,791 -- 10,610
 Income from
 continuing operations 8,322 10,159 16,697 16,048
 Income (loss) from discontinued
 operations net of income taxes -- (15,978) -- (17,313)
 Cumulative effect of accounting
 change net of income taxes -- -- -- (31,181)
 Net income (loss) $8,322 $(5,819) $16,697 $(32,446)
 Primary and fully diluted earnings
 (loss) per common and common
 equivalent share:
 Continuing operations $.82 $1.01 $1.65 $1.60
 Discontinued operations -- (1.59) -- (1.73)
 Cumulative effect
 of accounting change -- -- -- (3.10)
 Net income (loss) $.82 $(.58) $1.65 $(3.23)
 Average number of common and
 common equivalent shares 10,150 9,984 10,108 10,001
 BALANCE SHEETS
 (Unaudited)
 (Dollars in thousands)
 10/3/93 3/31/93
 ASSETS
 Current assets:
 Cash and cash equivalents $39,871 $81,286
 Receivables 128,345 129,621
 Net inventory 114,645 111,506
 Income tax refunds receivable 5,400 5,400
 Deferred income tax asset 16,401 18,834
 Other current assets 5,176 3,683
 Total current assets 309,838 350,330
 Net property, plant and equipment 85,816 89,307
 Goodwill and other long-term assets 16,758 17,592
 Total assets $412,412 $457,229
 LIABILITIES AND STOCKHOLDERS' EQUITY
 Current liabilities:
 Current portion of long-term debt $28,094 $28,396
 Accounts payable 37,011 57,344
 Customer advances 38,717 22,042
 Accrued compensation 17,715 19,222
 Accrued income taxes 3,545 8,083
 Restructuring revenues -- current 26,730 48,539
 Other accrued liabilities 35,363 45,050
 Total current liabilities 187,175 228,676
 Long-term debt 46,335 65,485
 Deferred income tax liability 13,280 9,864
 Post-retirement benefits reserves 33,890 33,886
 Restructuring reserves -- long-term 25,000 30,000
 Pension and retirement liabilities 24,184 23,723
 Total liabilities 329,864 391,634
 Stockholders' equity
 Common stock -- $.01 par value; authorized --
 20,000,000 shares; issued and outstanding
 9,748,928 at Oct. 3, 1993, and 9,729,698
 at March 31, 1993 97 97
 Additional paid-in-capital 127,454 127,080
 Retained earnings (deficit) (44,268) (60,965)
 Unearned compensation (735) (535)
 Common stock in treasury, at cost -- (82)
 Total stockholders' equity 82,548 65,595
 Total liabilities and
 stockholders' equity $412,412 $457,229
 STATEMENTS OF CASH FLOWS
 (Unaudited)
 (Dollars in thousands)
 Six Months Ended
 10/3/93 9/27/92
 CASH FLOW FROM OPERATING ACTIVITIES:
 Net income (loss) $16,697 $(32,446)
 Adjustments to reconcile net income
 (loss) to cash provided by (used for)
 operations:
 Cumulative effect of change in
 accounting for postretirement
 medical benefit costs -- 31,181
 Depreciation 8,683 12,457
 Amortization 906 861
 (Gain) loss on disposal of property (1,065) 381
 Changes in:
 Receivables 1,276 (47,003)
 Inventory (3,139) (4,178)
 Accounts payable (20,333) 69
 Customer advances 16,675 (8,950)
 Accrued compensation costs (1,507) (3,156)
 Accrued income taxes (4,538) (7,600)
 Other assets and liabilities (31,548) (5,558)
 Discontinued operations -- non-cash
 charges and working capital charges -- 25,909
 Cash (used for) operations (17,893) (38,033)
 CASH FLOW FROM INVESTING ACTIVITIES:
 Capital expenditures (5,976) (4,405)
 Proceeds from disposition of property,
 plant, and equipment 1,849 53
 Other -- Discontinued operations -- (2,148)
 Cash (used for) investing activities (4,127) (6,500)
 CASH FLOW FROM FINANCING ACTIVITIES:
 Payments made on long-term debt (19,452) (5,750)
 Proceeds from exercised stock options 57 126
 Other -- net -- 673
 Cash provided by
 (used for) financing activities (19,395) (4,951)
 Net decrease in cash
 and cash equivalents (41,415) (49,484)
 Cash and cash equivalents -- beginning
 of period 81,286 74,451
 Cash and cash equivalents -- end of
 period $39,871 $24,967
 -0- 10/28/93
 /CONTACT: (Media) Rod Bitz, 612-931-5413; or Coleen Southwell, 612-931-4505; (Investors) Richard N. Jowett, 612-939-2777, all of Alliant Techsystems/
 (ATK)


CO: Alliant Techsystems ST: Minnesota IN: ARO SU: ERN

CP-DS -- MN001 -- 7693 10/28/93 07:59 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Oct 28, 1993
Words:1391
Previous Article:DIRECTV(TM) TO DELIVER MEDICAL PROGRAMMING BY SATELLITE TO PHYSICIANS' HOMES
Next Article:BED BATH & BEYOND REPORTS OCTOBER 1993 SALES
Topics:

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters