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ALLIANT TECHSYSTEMS REPORTS SECOND QUARTER INCOME FROM CONTINUING OPERATIONS OF $10.2 MILLION

 ALLIANT TECHSYSTEMS REPORTS SECOND QUARTER INCOME FROM
 CONTINUING OPERATIONS OF $10.2 MILLION
 MINNEAPOLIS, Oct. 22 /PRNewswire/ -- Alliant Techsystems (NYSE: ATK) today reported income from continuing operations for the second quarter, which ended Sept. 27, of $10.2 million or $1.02 per share, compared with $10.5 million or $1.04 per share a year ago.
 The current quarter's results include restructuring charges of $.07 per share related to an ongoing program to consolidate and streamline operations in anticipation of continuing changes in the defense industry marketplace.
 Sales from continuing operations in the second quarter were $289.9 million versus $219.1 million a year ago.
 Toby G. Warson, president and chief executive officer, said the company is pleased with its operating results in the second quarter.
 "As expected, our shipments were stronger than in the first quarter," Watson said. "Looking ahead to the third and fourth quarters, we expect sales to exceed first-half levels."
 Sales from Defense Systems were $192.8 million in the second quarter, compared with $116.2 million a year ago. Marine Systems reported second-quarter sales of $97.1 million versus $102.9 million last year.
 Operating profit in the second quarter was $21.9 million, compared with $21.5 million last year. Defense Systems reported higher operating profit for the quarter, while Marine Systems reported a decline in second-quarter operating profit. (Operating profit is gross margin less operating expenses, exclusive of restructuring costs.)
 Second-quarter cash flow from operations was $10 million. The positive cash flow came despite an increase in accounts receivable due to a higher level of sales during the second quarter. These receivables are expected to be collected within the next four to five weeks. The cash balance at the end of the quarter was $25 million.
 During the second quarter, Alliant Techsystems and Olin Corporation signed a definitive agreement for the exchange of Olin's Ordnance Division and Physics International Company, including approximately $65 million of debt, for 2.82 million shares of Alliant Techsystems common stock. The transaction is subject to certain conditions, including third party consents, the expiration or termination of all waiting periods under the Hart-Scott-Rodino Antitrust Improvements Act, and approval by Alliant Techsystems shareholders at the company's annual meeting on Nov. 24.
 For the six months ended Sept. 27, income from continuing operations was $16.0 million or $1.60 per share, compared with $26.2 million or $2.61 per share in the same period a year ago. Last year's results benefited significantly from the one-time recognition of income resulting from cost and performance incentives on several torpedo contracts nearing completion.
 Sales from continuing operations in the first half were $470.4 million, compared with $458.1 million last year. Operating profit for the six-month period was $33.9 million versus $47.4 million last year.
 Loss From Discontinued Operations
 Alliant Techsystems reported a net loss from discontinued operations of $16.0 million in the second quarter. The loss consists of a $2.7 million net operating loss from Metrum Information Storage and an anticipated loss of $13.3 million on the expected sale of the business. In the second quarter a year ago, Metrum reported an operating loss of $197,000.
 For the six-month period, the loss from discontinued operations totaled $17.3 million. In the six-month period last year, Metrum reported a loss of $5.8 million.
 Metrum's results have been reported as discontinued operations since March, when the company's board of directors authorized a plan to divest the business.
 On Sept. 30, Alliant Techsystems announced that it had signed a letter of intent to sell Metrum to Group Technologies Corporation of Tampa, Fla. The transaction, which is subject to the execution of a definitive agreement, is expected to be completed before the end of the third fiscal quarter, which ends Dec. 27.
 Alliant Techsystems supplies defense and marine systems to the U.S. government and its allies. The company is headquartered in Edina, Minn., and employs 5,700 people throughout the United States.
 ALLIANT TECHSYSTEMS INC.
 Income Statements (Unaudited)
 (In thousands except per share amounts)
 Period ended Quarter Six Months
 9/27/92 9/29/91 9/27/92 9/29/91
 Sales $289,941 $219,138 $470,439 $458,089
 Cost of sales 238,087 175,865 387,809 367,456
 Gross margin 51,854 43,273 82,630 90,633
 Operating expenses:
 Research and
 development 4,552 4,249 6,966 8,534
 Selling 14,032 10,541 23,823 20,311
 General and
 administrative 11,398 6,986 17,989 14,396
 Restructuring
 charges 1,134 -- 1,837 --
 Total oper.
 expenses 31,116 21,776 50,615 43,241
 Income from opers. 20,738 21,497 32,015 47,392
 Other income (expense):
 Interest expense (3,362) (4,315) (6,797) (8,428)
 Interest income 68 118 404 363
 Miscellaneous income
 (expense) (494) (178) 1,036 2,706
 Total other income
 (expense) (3,788) (4,375) (5,357) (5,359)
 Income from continuing
 opers. before income
 taxes 16,950 17,122 26,658 42,033
 Provision for income
 taxes 6,791 6,663 10,610 15,817
 Income from continuing
 operations 10,159 10,459 16,048 26,216
 Losses from discont.
 opers. net of
 income taxes (15,978) (197) (17,313) (5,791)
 Net income (loss) $ (5,819) $10,262 $(1,265) $20,425
 Primary earnings
 (losses) per common
 and common equivalent
 share:
 Continuing opers. $ 1.02 $ 1.04 $ 1.60 $ 2.61
 Discontinued opers. (1.60) (.02) (1.73) (.58)
 Net income (losses) (.58) 1.02 (.13) 2.03
 Fully diluted earnings
 (losses) per common
 and common equivalent
 share:
 Continuing opers. 1.01 1.04 1.60 2.61
 Discontinued opers. (1.59) (.02) (1.73) (.58)
 Net income (loss) (.58) 1.02 (.13) 2.03
 Avg. number of common
 and common equivalent
 shares:
 Primary basis 9,984 10,021 10,001 10,043
 Fully diluted basis 10,050 10,021 10,051 10,043
 ALLIANT TECHSYSTEMS INC.
 Balance Sheets
 (Unaudited, Dollars in thousands)
 9/27/92 3/31/92
 Assets:
 Current Assets:
 Cash and cash equivalents $24,967 $74,451
 Receivables 152,956 105,953
 Net inventory 155,378 151,200
 Deferred income taxes 8,101 8,101
 Other current assets 10,292 4,997
 Total current assets 351,694 344,702
 Net property, plant and equipment 113,346 121,832
 Goodwill and other long-term assets 17,937 18,644
 Net assets of discontinued opers. 21,707 36,599
 Total assets 504,694 521,777
 Liabilities and stockholders' equity:
 Current Liabilities:
 Current portion of long-term debt 38,750 23,000
 Accounts payable 75,700 75,631
 Customer advances 23,194 32,144
 Accrued compensation 17,898 21,054
 Accrued income taxes -- 7,600
 Other accrued liabilities 55,852 49,115
 Total current liabilities 211,394 208,544
 Long-term debt 86,000 107,500
 Deferred income tax liability 12,644 12,606
 Other long-term liabilities 17,470 14,972
 Total liabilities 327,508 343,622
 Stockholders' equity:
 Common stock -- $.01 per value;
 authorized -- 20,000,000 shares;
 issued and outstanding 9,631,435
 at Sept. 27, 1992 and 9,625,173
 at Mar. 31, 1992 96 96
 Additional paid-in-capital 125,701 125,606
 Retained earnings 51,967 53,232
 Unearned compensation (588) (779)
 Total stockholders' equity 177,176 178,155
 Total liabilities and
 stockholders' equity $504,684 $521,777
 ALLIANT TECHSYSTEMS INC.
 Statements of Cash Flows
 (Unaudited, Dollars in Thousands)
 Six Months Ended 9/27/92 9/29/91
 Cash flow from operating
 activities:
 Net income (loss) $(1,265) $20,425
 Adjustments to reconcile net income
 to cash (used for) provided by
 operations:
 Depreciation 12,457 13,796
 Amortization 861 854
 Losses on disposition of property 381 593
 Changes in:
 Receivables (47,003) (9,889)
 Inventory (4,178) (34,605)
 Accounts payable 69 14,558
 Customer advances (8,950) 3,533
 Accrued compensation costs (3,156) (1,065)
 Accrued income taxes (7,600) (1,578)
 Other assets and liabilities (5,558) (13,168)
 Discontinued opers. non-cash
 charges and working capital
 changes 25,909 1,023
 Cash provided by (used for) opers. (38,033) (5,523)
 Cash flow from investing activities:
 Capital expenditures (4,405) (7,912)
 Proceeds from disposition of
 property, plant and equipment 53 302
 Other -- discontinued opers. (2,148) (2,168)
 Cash (used for) investing
 activities (6,500) (9,778)
 Cash flow from financing activities:
 Payments made on long-term debt (5,750) (5,750)
 Increase in bank credit line debt -- 5,000
 Proceeds from exercised stock options 126 1,196
 Other -- net 673 (2,570)
 Cash (used for) financing
 activities (4,951) (2,124)
 Net (decrease) in cash and cash
 equivalents (49,484) (17,425)
 Cash and cash equivalents --
 beginning of period 74,451 22,658
 Cash and cash equivalents --
 end of period $ 24,967 $ 5,233
 -0- 10/22/92
 /CONTACT: Rod Bitz, 612-939-2646, or Richard N. Jowett, 612-939-2777, both of Alliant Techsystems, Inc./
 (ATK) CO: Alliant Techsystems ST: Minnesota IN: ARO SU: ERN


PS-LD -- MN006 -- 3287 10/22/92 08:14 EDT
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Date:Oct 22, 1992
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