Printer Friendly

Orbital ATK (NYSE: OA).

Company Overview

Northrop Grumman - Northrop Grumman Completes Orbital ATK Acquisition, Blake Larson Elected to Lead New Innovation Systems Sector - 6/6/2018

Northrop Grumman Corporation (NYSE: NOC) today announced it has closed the acquisition of Orbital ATK Inc. ("Orbital ATK"), a global leader in aerospace and defense technologies. Orbital ATK is now Northrop Grumman Innovation Systems, a new, fourth business sector.

Northrop Grumman's board of directors has elected Blake Larson as corporate vice president and president of Northrop Grumman Innovation Systems, reporting to Kathy Warden, Northrop Grumman's president and chief operating officer. Larson previously served as the chief operating officer of Orbital ATK.

"We welcome Orbital ATK's talented employees," said Wes Bush, chairman and chief executive officer, Northrop Grumman. "We are delighted to have them join the Northrop Grumman team, and we are very excited about the value creation our combination represents for our customers, shareholders and employees. Together, through our leading technologies and innovation-focused culture, we look forward to developing enhanced mission capabilities and more competitive offerings in critical global security domains," said Bush.

"I am also excited to welcome Blake to our leadership team," Bush added. "He is a proven leader and I know that he will continue to focus on performance and innovation as the president of our new Innovation Systems sector."

As a global leader in aerospace and defense technologies, Orbital ATK designs, builds and delivers space, defense and aviation-related systems to customers around the world both as a prime contractor and as a merchant supplier. Our main products include launch vehicles and related propulsion systems; satellites and associated components and services; composite aerospace structures; tactical missiles, subsystems and defense electronics; and precision weapons, armament systems and ammunition. Headquartered in Dulles, Virginia, Orbital ATK employs more than 12,000 people in 20 states across the U.S. and several international locations.

Our company is comprised of three operating groups:

Flight Systems Group

* Leading provider of small- and medium-class space launch vehicles for civil, military and commercial missions.

* Premier producer of solid rocket propulsion systems and specialty energetic products.

* Major supplier of interceptor boosters and target vehicles for missile defense applications.

* World class manufacturer of composite structures for commercial and military aircraft and launch vehicles. Defense Systems Group

* An industry leader in propulsion and controls for air-, sea- and land-based tactical missiles and missile defense interceptors, fusing and warheads for tactical missiles and munitions.

* Supplier of advanced defense electronics for next-generation strike weapon systems, missile-warning and aircraft survivability, and special-mission aircraft.

* Leading producer of medium- and large-caliber ammunition, medium-caliber gun systems and precision munitions guidance kits.

* Largest U.S. producer of small-caliber ammunition. Space Systems Group

* An industry-leading provider of commercial satellites used for global communications and high-resolution Earth imaging.

* A leading provider of small and medium spacecraft that perform scientific research and national security missions for government customers.

* Provider of commercial cargo delivery services to the International Space Station and developer of advanced commercial space-launch systems.

* Premier provider of spacecraft components and subsystems and specialized engineering services.

Some general company facts and figures:

* Annual revenues of approximately $4.4 billion (Pro forma CY 2014) with total contract backlog of about $12 billion.

* Experienced workforce of over 12,000 employees dedicated to aerospace and defense including 4,300 engineers and scientists; 7,200 manufacturing and operations specialists; and 1,100 management and administration personnel.

* Modern industrial facilities - over 19 million square feet of state-of-the-art R&D, manufacturing, test and operations, and office space.

* Solid financial outlook and strong balance sheet - revenue and profit growth, strong cash flow and low debt levels.

* Leading producer of solid rocket propulsion systems... over 16,000 motors built for strategic, tactical and space applications.

* Largest manufacturer of small- and medium-caliber ammunition... more than 8 billion rounds produced in last five years.

* Primary supplier of long-range missile defense interceptors and target systems... more than 300 vehicles built or under contract.

* Major builder of satellites and related subsystems... over 225 space systems and more than 800 space components delivered or in production.

* Principal supplier of medium-caliber gun systems for U.S. and NATO... 15,000-unit installed base.

* Leading operator of small research rockets and high-altitude scientific balloons... about 30 missions conducted per year.

* Expertise in facility management and co-production... operator of the largest U.S. ammunitions manufacturing facility.

Orbital ATK Announces First Quarter 2018 Financial Results - 3/5/2018

Company Posts Strong Quarterly Revenue, Earnings and Orders

* Revenue Increases 21% in Quarter on Sales Gains in All Segments

* GAAP EPS Increases 51 % to $1.74 in Quarter on Higher Margins and Lower Taxes

* New Orders and Option Exercises Totaled $3.02 Billion in Quarter

Dulles, Virginia 3 May 2018--Orbital ATK, Inc. (NYSE: OA), a global leader in aerospace and defense technologies, today reported financial results for the first quarter ended April 1, 2018.

Orbital ATK generated revenues of $1,312 million in the first quarter of 2018, up 20.9% from $1,085 million in the first quarter of 2017. Income from operations(1) and operating margin were $153.6 million and 11.7%, respectively, compared to $121.1 million and 11.2%, respectively, in the first quarter of 2017. The company reported first quarter 2018 earnings per diluted share of $1.74 compared to $1.15 in the comparable quarter in 2017. Free cash flow(2), which is a non-GAAP measure defined as GAAP cash flow from operating activities of negative $237.0 million minus capital expenditures of $71.3 million, was negative $308.3 million in the first quarter of 2018 compared to negative $77.7 million in the first quarter of 2017. First quarter 2018 free cash flow was negatively impacted by the timing of milestone payments and disbursements as well as investments related to the company's growth.

For the first quarter of 2018, non-GAAP adjusted(2) operating income and operating margin, which exclude certain acquisition and restatement expenses, were $154.9 million and 11.8%, respectively, compared to $127.1 million and 11.7%, respectively, in the first quarter of 2017. Adjusted diluted earnings per share were $1.76 and $1.23 in the first quarters of 2018 and 2017, respectively. Adjusted free cash flow, which excludes certain acquisition and restatement-related cash expenses totaling $4.0 million, was negative $304.3 million in the first quarter of 2018 (see non-GAAP reconciliation tables in the Appendix for details).

(1) income from operations (or operating income) is income before interest, non-service pension costs, income taxes and non-controlling interest.

((2)) Free cash flow and adjusted financial results contained in this press release are non-GAAP financial measures. Please refer to the reconciliation tables contained in the Appendix- "Disclosure of Non-GAAP Financial Measures" of this press release for more details.

"Orbital ATK reported excellent first quarter financial results, reflecting strong revenue and earnings growth together with robust new business wins," said David W. Thompson, Orbital ATK's President and Chief Executive Officer. "Operationally, the company carried out numerous successful space and defense missions in the first quarter of 2018, while also delivering record quantities of tactical missiles, precision weapons, aerospace structures and related systems to government and commercial customers.

Consolidated Financial Highlights
                                         First Quarter
($ in millions, except per share data)   2018      2017

Revenues                                 $1,312    $1,085
Operating Income                            153.6     121.1
Net Income                                  101.0      66.4
Diluted Earnings Per Share                   $1.74     $1.15
Adjusted Operating Income (1)              $154.9    $127.1
Adjusted Net Income (1)                     102.1      70.7
Adjusted Diluted Earnings Per Share (1)      $1.76     $1.23

(1) Non-GAAP Results. See non-GAAP reconciliation tables in the
Appendix for details.

Revenues increased $227 million, or 20.9%, in the first quarter of 2018 compared to the first quarter of 2017 with increased sales in Flight Systems Group (FSG), Defense Systems Group (DSG) and Space Systems Group (SSG). Operating income increased $32.5 million, or 26.8%, in 2018 compared to 2017, due to increases in FSG and DSG operating income partly offset by lower SSG income.

Net income and earnings per share reflected income tax rates of 17.4% and 29.3% in the first quarters of 2018 and 2017, respectively. Adjusted net income and earnings per share reflect the same tax rates as the GAAP numbers.

"Orbital ATK reported very strong financial results in the first quarter, with substantial revenue and operating profit growth from strong new orders over the past two years," said Garrett E. Pierce, Orbital ATK's Chief Financial Officer.

Capital Allocation Activities

During the first quarter of 2018, Orbital ATK returned approximately $18 million to shareholders through dividends. As previously announced, the company halted its share repurchase program in connection with the signing of the Northrop Grumman acquisition transaction in September 2017. The company also invested about $100 million in research and development and capital equipment in the quarter.

New Business Summary

In the first quarter of 2018, Orbital ATK received new firm and option orders of approximately $1,950 million and existing option exercises of $1,070 million, for a total of $3,020 million in quarterly new business volume. These new awards increased firm contract backlog to approximately $9.4 billion and total backlog to approximately $16.6 billion as of April 1, 2018, representing increases of 14% and 12%, respectively, compared to backlog at April 2, 2017, as recast for the new revenue accounting standard (ASC 606) that the company adopted in the first quarter of 2018. The company's Flight Systems segment accounted for $1,830 million, or 60%, of the first quarter's new business volume, while Defense Systems added $650 million, or 22%, and Space Systems contributed $540 million, or 18%. The first quarter's firm book-to-bill ratio was 190%.

First Quarter Operational Highlights

Orbital ATK's strong operational execution led to the achievement of numerous milestones in the first quarter of 2018. These included the following important events:

* Flight Systems conducted its fifth IRBM target launch from a C-17 aircraft in the first quarter and delivered two additional target vehicles that were launched in April. The company completed major development milestones on its OmegA next-generation large-class launch vehicle and made good progress on its advanced GEM-63 solid rocket motors. Flight Systems also produced a record 25,000 aerostructures parts in the quarter, including the 5,000th F-35 military aircraft part.

* Defense Systems delivered 4,000 tactical rocket motors and warheads and conducted more than 160 motor tests in the quarter. In addition, the company produced over 3,200 artillery precision guidance kits, boosting cumulative deliveries to 25,000 kits during the last four years. Defense Systems also manufactured over 350 million rounds of small-caliber ammunition and continued flight testing of its advanced proximity-fuzed medium-caliber rounds in the first three months of 2018.

* Space Systems deployed its first two GEOStar-3 medium-class communications satellites in the first quarter, while also introducing its second-generation in-space satellite servicing technology for commercial operators. The company delivered four other commercial, scientific and defense satellites to launch sites in preparation for launches that took place in April. Finally, Space Systems shipped over 300 spacecraft and related components and conducted three scientific research rocket missions in the quarter.

"First quarter operational results were outstanding across all three business groups, as program execution and product quality metrics remained at very high levels for our customers. In addition, our major operational and test results were 100% successful throughout the first quarter of 2018," said Chief Operating Officer Blake E. Larson. "We are very proud of what our teams achieved in support of national security, civil government, commercial and international customers."
COPYRIGHT 2019 Acquisdata Pty Ltd.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2019 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Title Annotation:Leading Companies in the Industry
Publication:US Armaments
Date:Aug 14, 2019
Previous Article:Northrop Grumman (NYSE: NOC).
Next Article:Oskosh Defense (NYSE: OSK).

Terms of use | Privacy policy | Copyright © 2022 Farlex, Inc. | Feedback | For webmasters |