ARLINGTON, Va., Jan. 28, 2015 /PRNewswire/ -- Alliant
Techsystems Inc. ("ATK") (NYSE: ATK) today reported operating
results for the third quarter of its Fiscal Year 2015, which ended
on December 28, 2014.
Third quarter sales were $1.3
billion, up 4 percent from the prior-year quarter of
$1.2 billion, due to increased sales
in the Defense and Aerospace Groups, partially offset by a decrease
in the Sporting Group.
Operating profit in the third quarter was $105 million, compared to $146 million in the prior-year period. Excluding
goodwill/trade name impairments, transaction costs, deferred
financing costs, and inventory step-up, adjusted operating profit
in the third quarter increased $4
million to $162 million (see
reconciliation tables for details). Adjusted operating profit
increased primarily due to higher sales in the Aerospace Group and
lower pension expense.
As previously announced, during the third quarter, ATK recorded
a $52 million ($48 million, net of tax, or $1.50 per share) non-cash, goodwill/trade name
impairment charge associated with the Savage acquisition with only
partial tax benefits. The basis for this impairment charge is due
to the current market correction impacting demand for firearms. A
major factor to this impairment is the significant impact to the
valuations of other firearms market participants, which was
considered as a basis for this impairment. Also contributing to
this impairment is a decline in the company's near-term projected
cash flows in the firearms business as reflected in ATK's previous
guidance.
Net income in the third quarter was $46
million, down from $80 million
in the prior-year period. Adjusted net income in the third quarter
was $97 million, compared to
$93 million in the prior year (see
reconciliation table for details). Fully diluted earnings per share
(EPS) were $1.43 compared to
$2.46 in the prior-year period. On an
adjusted basis, fully diluted EPS was $3.02 compared to $2.87 in the prior year (see reconciliation
tables for details). Adjusted net income was relatively flat and
adjusted EPS increased due to decreased share count as a result of
the payoff of the convertible notes in the second quarter of
FY15.
Orders for the quarter were $1
billion, down from $1.3
billion in the prior-year quarter. The decrease was driven
by lower orders in the Aerospace and Sporting Groups, partially
offset by an increase in the Defense Group. The company maintains a
backlog of $6.7 billion.
During the third quarter, ATK achieved several strategic
accomplishments, such as supporting the successful launch and test
of an unmanned Orion capsule on a Delta IV rocket, completing a
critical milestone toward America's exploration of deep space. The
company completed critical testing for a precision-guided artillery
fuze and received several industry awards and recognition for
well-recognized brands like Bollé Sport protective eyewear,
Bushnell Golf rangefinders, BLACKHAWK! holsters and Gold Tip
arrows.
As previously announced, ATK and Orbital Sciences Corporation
("Orbital") (NYSE: ORB) have entered into a transaction agreement,
whereby ATK's Aerospace and Defense Groups will merge with Orbital
immediately following the spin-off of ATK's Sporting Group business
into Vista Outdoor Inc. On January
27, during separate, special stockholder meetings, ATK
stockholders approved the issuance of shares to stockholders of
Orbital in connection with the merger, and Orbital stockholders
approved the merger. ATK anticipates completing the transaction on
February 9, 2015, subject to the
satisfaction of remaining closing conditions.
"Strong execution in the quarter, and throughout the fiscal
year, translated into the best third quarter in sales in company
history," said Mark DeYoung, ATK
President and Chief Executive Officer. "In the Aerospace and
Defense Groups, we achieved year-over-year revenue increases and
maintained double-digit margins. Our Aerospace Group continues to
secure new programs and deliver strong results, while strategically
positioning the company for future with key wins in commercial
aerospace and space exploration. We have demonstrated our ability
to acquire and integrate new and adjacent businesses into our
existing framework, and I'm pleased with Bushnell's strong
performance in operating profit for the quarter. With shareholder
and regulatory approvals achieved, we are looking forward to
closing the transactions and commencing on the strategies to
deliver growth and shareholder value.
"Looking back on my five years as CEO, I'm proud of ATK's
ability to deliver consistent earnings and cash flow growth. We
delivered value to our shareholders through a balanced capital
deployment strategy, including the completion of three strategic
acquisitions, the implementation of a share repurchase program and
the initiation of a quarterly cash dividend. ATK is an impressive
company with innovative products, dedicated employees and a focus
on execution excellence and shareholder value. We have
strategically positioned ATK to create two leading companies, Vista
Outdoor and Orbital ATK."
Please see segment and corporate results below.
SUMMARY OF REPORTED RESULTS
The following table presents the company's results for the third
quarter of the fiscal year, which ended Dec.
28, 2014 (in thousands).
Sales:
|
|
Quarters Ended
|
|
|
December 28,
2014
|
|
December 29,
2013
|
|
$
Change
|
|
%
Change
|
Aerospace
Group
|
|
$
|
324,633
|
|
|
$
|
318,078
|
|
|
$
|
6,555
|
|
|
2.1%
|
Defense
Group
|
|
466,016
|
|
|
455,249
|
|
|
10,767
|
|
|
2.4%
|
Sporting
Group
|
|
506,881
|
|
|
524,228
|
|
|
(17,347)
|
|
|
(3.3)%
|
Eliminations
|
|
(46,152)
|
|
|
(89,151)
|
|
|
42,999
|
|
|
(48.2)%
|
Total
sales
|
|
$
|
1,251,378
|
|
|
$
|
1,208,404
|
|
|
$
|
42,974
|
|
|
3.6%
|
Income before Interest, Income Taxes, and Noncontrolling
Interest (Operating Profit):
|
|
Quarters Ended
|
|
|
December 28,
2014
|
|
December 29,
2013
|
|
$
Change
|
|
%
Change
|
Aerospace
Group
|
|
$
|
40,000
|
|
|
$
|
33,383
|
|
|
$
|
6,617
|
|
|
19.8%
|
Defense
Group
|
|
48,553
|
|
|
53,078
|
|
|
(4,525)
|
|
|
(8.5)%
|
Sporting
Group
|
|
18,322
|
|
|
81,119
|
|
|
(62,797)
|
|
|
(77.4)%
|
Corporate
|
|
(2,104)
|
|
|
(21,605)
|
|
|
19,501
|
|
|
90.3%
|
Total operating
profit
|
|
$
|
104,771
|
|
|
$
|
145,975
|
|
|
$
|
(41,204)
|
|
|
(28.2)%
|
SEGMENT RESULTS
ATK operates in a three business group structure: the Aerospace
Group, the Defense Group and the Sporting Group.
AEROSPACE GROUP
Third quarter sales increased 2 percent to $325 million, compared to $318 million in the prior-year quarter,
reflecting increased sales in the Aerospace Structures division,
due to higher volumes and improved profit expectations. The
increase was partially offset by a decrease in the Space Systems
Operations division.
Operating profit in the quarter was $40
million, up 20 percent compared to $33 million in the prior-year quarter, reflecting
the increased sales noted above.
DEFENSE GROUP
Sales in the third quarter increased 2 percent to $466 million, compared to $455 million in the prior-year quarter, driven by
increased sales in the Missile Products and Armament Systems
divisions, offset by decreases in the Small Caliber Systems and
Defense Electronic Systems divisions.
Operating profit for the quarter was $49
million, down 9 percent, compared to $53 million in the prior-year period, reflecting
the lower sales and program mix in the Small Caliber Systems
division due to the transition to the new contract at the Lake City
Army Ammunition Plant, partially offset by sales increases noted
above.
SPORTING GROUP
Third quarter sales decreased 3 percent to $507 million, compared to $524 million in the prior-year quarter. Third
quarter sales results were driven by a decrease in volume of
.223/5.56 ammunition and firearms, and were partially offset by
sales of $151 million from Bushnell,
reflecting a full quarter of sales and year-over-year growth,
compared to $85 million of sales from
the November 2013 Bushnell
acquisition.
Operating profit was $18 million
in the third quarter, compared to $81
million in the prior-year quarter. Excluding the
goodwill/trade name impairment and inventory step-up, adjusted
operating profit was $71 million down
14 percent, compared to $82 million
(see reconciliation tables for details). Adjusted operating profit
decreased due to lower sales noted above, product mix and increased
promotional activity in response to current market conditions.
Operating profit from the Bushnell acquisition was $20 million or 13 percent, compared to
$4 million of operating profit from
the Bushnell acquisition in the prior year, including transition
costs.
For additional information on the results of the Sporting Group
please refer to the press release issued by Vista Outdoor on
January 28, 2015 detailing the Vista
Outdoor FY15 third quarter operating results.
CORPORATE AND OTHER
In the third quarter, corporate and other expenses totaled
$2 million, compared to $22 million in the prior-year quarter. On an
adjusted basis, corporate and other was income of $2.6 million compared to expense of $11.4 million in the prior-year quarter (see
reconciliation table for details), primarily reflecting lower
pension expense and intercompany profit eliminations. Pension
expense primarily relates to the Aerospace and Defense Groups.
The tax rate for the quarter was 45.1 percent, reflecting the
non-deductibility for tax purposes of the goodwill impairment.
Excluding this item, the effective tax rate was 30.2 percent (see
reconciliation table for details) compared to 32.7 percent in the
prior year. The lower tax rate reflects the retroactive extension
of the Federal R&D tax credit through December 31, 2014, as a result of the Tax
Increase Prevention Act of 2014, signed into law on December 19, 2014 and the absence of
nondeductible acquisition-related costs from the prior year.
Interest expense was $21 million
compared to $29 million in the
prior-year quarter, reflecting a lower interest rate and the
absence of a prior-year write off of deferred financing costs.
Year-to-date free cash flow was $72
million compared to free cash flow of $142 million in the prior-year period (see
reconciliation table for details). The decrease in free cash flow
primarily reflects increased pension contributions, cash taxes paid
and capital expenditures, and quarterly timing of working capital,
partially offset by the collection of the pension segment close-out
payment at the Radford Army Ammunition Plant.
"In addition to strong sales performance in the quarter, ATK
recorded the highest adjusted EPS in company history," said
Neal Cohen, ATK Executive Vice
President and Chief Financial Officer. "The company's operational
and financial success have established a strong foundation for both
Orbital ATK and Vista Outdoor."
OUTLOOK
On the anticipated closing date, February
9, 2015, ATK stockholders as of the applicable record date,
February 2, will receive two shares
of Vista Outdoor common stock for every one share of ATK common
stock they hold. In connection with the merger, Orbital
stockholders will receive 0.449 shares of ATK common stock for each
share of Orbital common stock that they hold. Upon the closing of
the transaction, ATK stockholders will own approximately 53.8
percent of Orbital ATK on a fully diluted basis and Orbital
stockholders will own the remaining approximately 46.2 percent of
Orbital ATK on a fully diluted basis.
Vista Outdoor common stock is expected to trade on a
"when-issued" basis on the NYSE from January
29 through February 9. On the first trading day following
the closing, which is expected to be February 10, "regular way" trading of Vista
Outdoor common stock under the symbol "VSTO" will begin. Additional
information concerning Vista Outdoor and the proposed spin-off is
contained in Vista Outdoor's registration statement on Form 10.
Due to the pending closing of the anticipated transaction, ATK
is not discussing its outlook or issuing financial guidance.
Reconciliation of Non-GAAP Financial Measures
Sales, Margins, and Earnings Per Share
The Sales, Margins, and Earnings Per Share (EPS) excluding
goodwill/trade name impairment, transaction costs for the Bushnell
acquisition and proposed transactions, Bushnell inventory step-up,
and the write-off of deferred financing charges are non-GAAP
financial measures that ATK defines as Sales, Margins, and EPS
excluding the impact of these items. ATK management is presenting
these measures so a reader may compare Sales, Margins, and EPS
excluding these items as the measures provide investors with an
important perspective on the operating results of the Company. ATK
management uses these measurements internally to assess business
performance, and ATK's definition may differ from those used by
other companies.
Total ATK for
the Quarter Ending
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 28,
2014:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
|
|
EBIT
|
|
Margin
|
|
Interest
Expense
|
|
Taxes
|
|
After-tax
|
|
EPS
|
As
reported
|
|
$
|
1,251,378
|
|
|
$
|
104,771
|
|
|
8.4
|
%
|
|
$
|
21,394
|
|
|
$
|
37,617
|
|
|
$
|
45,647
|
|
|
$
|
1.43
|
|
Goodwill/trade name
impairment
|
|
|
|
|
52,220
|
|
|
|
|
|
|
|
|
4,144
|
|
|
48,076
|
|
|
1.50
|
|
Transaction
costs
|
|
—
|
|
|
4,749
|
|
|
|
|
|
|
|
|
1,828
|
|
|
2,921
|
|
|
0.09
|
|
As
adjusted
|
|
$
|
1,251,378
|
|
|
$
|
161,740
|
|
|
12.9
|
%
|
|
$
|
21,394
|
|
|
$
|
43,589
|
|
|
$
|
96,644
|
|
|
$
|
3.02
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 29,
2013:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
|
|
EBIT
|
|
Margin
|
|
Interest
Expense
|
|
Taxes
|
|
After-tax
|
|
EPS
|
As
reported
|
|
$
|
1,208,404
|
|
|
$
|
145,975
|
|
|
12.1
|
%
|
|
$
|
28,501
|
|
|
$
|
38,954
|
|
|
$
|
80,286
|
|
|
$
|
2.46
|
|
Transaction
costs
|
|
—
|
|
|
10,200
|
|
|
|
|
|
|
|
|
1,809
|
|
|
8,391
|
|
|
0.26
|
|
Deferred financing
costs written off
|
|
—
|
|
|
—
|
|
|
|
|
|
(6,166)
|
|
|
2,374
|
|
|
3,792
|
|
|
0.12
|
|
Inventory
step-up
|
|
—
|
|
|
1,377
|
|
|
|
|
|
|
|
|
530
|
|
|
847
|
|
|
0.03
|
|
As
adjusted
|
|
$
|
1,208,404
|
|
|
$
|
157,552
|
|
|
13.0
|
%
|
|
$
|
22,335
|
|
|
$
|
43,667
|
|
|
$
|
93,316
|
|
|
$
|
2.87
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sporting Group
for the Quarter Ending
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 28,
2014:
|
|
|
|
|
|
|
|
|
|
|
|
Sales
|
|
EBIT
|
|
Margin
|
As
reported
|
|
$
|
506,881
|
|
|
$
|
18,322
|
|
|
3.6
|
%
|
Goodwill/trade name
impairment
|
|
—
|
|
|
52,220
|
|
|
|
|
As
adjusted
|
|
$
|
506,881
|
|
|
$
|
70,542
|
|
|
13.9
|
%
|
|
|
|
|
|
|
|
|
|
|
December 29,
2013:
|
|
|
|
|
|
|
|
|
|
|
|
Sales
|
|
EBIT
|
|
Margin
|
As
reported
|
|
$
|
524,228
|
|
|
$
|
81,119
|
|
|
15.5
|
%
|
Inventory
step-up
|
|
—
|
|
|
1,377
|
|
|
|
|
As
adjusted
|
|
$
|
524,228
|
|
|
$
|
82,496
|
|
|
15.7
|
%
|
|
|
|
|
|
|
|
|
|
|
Corporate for
the Quarter Ended
|
|
|
|
|
|
|
|
|
|
December 28,
2014:
|
|
|
|
|
|
|
|
EBIT
|
As
reported
|
|
|
$
|
(2,104)
|
|
Transaction
costs
|
|
|
4,749
|
|
As
adjusted
|
|
|
$
|
2,645
|
|
|
|
|
|
|
December 29,
2013:
|
|
|
|
|
|
|
|
EBIT
|
As
reported
|
|
|
$
|
(21,605)
|
|
Transaction
costs
|
|
|
10,200
|
|
As
adjusted
|
|
|
$
|
(11,405)
|
|
|
|
|
|
|
Effective Tax Rate
The effective tax rate excluding the effect of the
non-deductibility for tax purposes of the goodwill impairment
charge is a non-GAAP financial measure. ATK management is
presenting this measure so that a reader may compare the effective
tax rate excluding this item. ATK's definition may differ from that
used by other companies.
|
|
|
|
|
|
|
|
|
|
December 28,
2014:
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax
Income
|
|
Tax
Expense
|
|
Tax
Rate
|
As
reported
|
|
$
|
83,405
|
|
|
$
|
37,617
|
|
|
45.1
|
%
|
Goodwill
impairment
|
|
41,020
|
|
|
—
|
|
|
|
|
As
adjusted
|
|
$
|
124,425
|
|
|
$
|
37,617
|
|
|
30.2
|
%
|
|
|
|
|
|
|
|
|
|
|
Free Cash Flow
Free cash flow is defined as cash provided by operating
activities less capital expenditures, and excluding transaction
costs incurred to date. ATK management believes free cash flow
provides investors with an important perspective on the cash
available for debt repayment, cash dividends, share repurchases and
acquisitions after making the capital investments required to
support ongoing business operations. ATK management uses free cash
flow internally to assess both business performance and overall
liquidity.
|
|
Nine months
ended
December 28,
2014
|
|
Nine months
ended
December 29,
2013
|
Cash provided by
operating activities
|
|
$
|
154,186
|
|
|
$
|
222,284
|
|
Capital
expenditures
|
|
(91,991)
|
|
|
(80,580)
|
|
Transaction costs
incurred to date, net of tax
|
|
10,124
|
|
|
—
|
|
Free cash
flow
|
|
$
|
72,319
|
|
|
$
|
141,704
|
|
ATK is an aerospace, defense and outdoor sports and recreation
company with operations in 21 states, Puerto Rico and internationally. News and
information can be found on the Internet at www.atk.com, on
Facebook at www.facebook.com/atk or on Twitter @ATK.
Certain information discussed in this press release constitutes
forward-looking statements as defined in the Private Securities
Litigation Reform Act of 1995. Although ATK believes that the
expectations reflected in such forward-looking statements are based
on reasonable assumptions, it can give no assurance that its
expectations will be achieved. Forward-looking information is
subject to certain risks, trends, and uncertainties that could
cause actual results to differ materially from those projected.
Among these factors are: the parties' ability to satisfy the
conditions to the proposed transaction to spin-off ATK's sporting
business and merge ATK's aerospace and defense businesses with
Orbital Sciences Corporation; the parties' ability to meet
expectations regarding the timing, completion, and accounting and
tax treatments of the proposed transaction; the risk that the
anticipated benefits and cost savings from the Bushnell acquisition
may not be fully realized or may take longer than expected to
realize; assumptions regarding the demand for Bushnell's products;
the ability of ATK to retain and hire key personnel and maintain
relationships with customers, suppliers and other business partners
of Bushnell; costs or difficulties related to the integration of
Bushnell; and changes in Bushnell's business, industry or economic
conditions or competitive environment; assumptions related to the
profitability of commercial aerospace structures programs;
uncertainties related to the development of NASA's new Space Launch
System; demand for commercial and military ammunition; sales levels
of firearms; changes in federal and state firearms and ammunition
regulation; changes in governmental spending, budgetary policies,
including the impacts of sequestration under the Budget Control Act
of 2011, and product sourcing strategies; the company's competitive
environment; risks inherent in the development and manufacture of
advanced technology; risks associated with compliance and
diversification into new markets, including international markets;
assumptions regarding the company's long-term growth strategy;
assumptions regarding growth opportunities in international and
commercial markets; increases in commodity costs, energy prices and
production costs; foreign currency exchange rates and fluctuations
in those rates; assumptions regarding orders; the terms and timing
of awards and contracts; program performance; program terminations;
changes in projections or cost estimates related to relocation of
facilities; the outcome of contingencies, including litigation and
environmental remediation; cybersecurity and other industrial and
physical security threats; actual pension asset returns and
assumptions regarding future returns, discount rates and service
costs; capital market volatility and corresponding assumptions
related to the company's shares outstanding; the availability of
capital market financing; changes to accounting standards or
policies; changes in tax rules or pronouncements; economic
conditions; and the company's capital deployment strategy,
including debt repayment, dividend payments, share repurchases,
pension funding, mergers and acquisitions — including the related
costs and any integration thereof. ATK undertakes no obligation to
update any forward-looking statements. For further information on
factors that could impact ATK, and statements contained herein,
please refer to ATK's most recent Annual Report on Form 10-K and
any subsequent quarterly reports on Form 10-Q and current reports
on Form 8-K filed with the U.S. Securities and Exchange
Commission.
ALLIANT
TECHSYSTEMS INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
|
(preliminary and
unaudited)
|
|
|
|
Quarter
Ended
|
|
Nine Months
Ended
|
(Amounts in
thousands except per share data)
|
|
December 28,
2014
|
|
December 29,
2013
|
|
December 28,
2014
|
|
December 29,
2013
|
Sales
|
|
$
|
1,251,378
|
|
|
$
|
1,208,404
|
|
|
$
|
3,800,017
|
|
|
$
|
3,429,526
|
|
Cost of
sales
|
|
947,534
|
|
|
919,234
|
|
|
2,885,513
|
|
|
2,630,919
|
|
Gross
profit
|
|
303,844
|
|
|
289,170
|
|
|
914,504
|
|
|
798,607
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
12,194
|
|
|
11,899
|
|
|
31,024
|
|
|
34,126
|
|
Selling
|
|
62,122
|
|
|
56,952
|
|
|
185,366
|
|
|
146,617
|
|
General and
administrative
|
|
72,537
|
|
|
74,344
|
|
|
224,891
|
|
|
198,003
|
|
Goodwill and
tradename impairment
|
|
52,220
|
|
|
—
|
|
|
52,220
|
|
|
—
|
|
Income before
interest, income taxes, and noncontrolling interest
|
|
104,771
|
|
|
145,975
|
|
|
421,003
|
|
|
419,861
|
|
Interest
expense
|
|
(21,394)
|
|
|
(28,501)
|
|
|
(68,169)
|
|
|
(57,634)
|
|
Interest
income
|
|
28
|
|
|
1,793
|
|
|
72
|
|
|
1,884
|
|
Income before income
taxes and noncontrolling interest
|
|
83,405
|
|
|
119,267
|
|
|
352,906
|
|
|
364,111
|
|
Income
taxes
|
|
37,617
|
|
|
38,954
|
|
|
126,262
|
|
|
118,991
|
|
Net income before
noncontrolling interest
|
|
45,788
|
|
|
80,313
|
|
|
226,644
|
|
|
245,120
|
|
Less net income
attributable to noncontrolling interest
|
|
141
|
|
|
27
|
|
|
291
|
|
|
210
|
|
Net income
attributable to Alliant Techsystems Inc
|
|
$
|
45,647
|
|
|
$
|
80,286
|
|
|
$
|
226,353
|
|
|
$
|
244,910
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Alliant
Techsystems Inc. earnings per common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
1.44
|
|
|
$
|
2.55
|
|
|
$
|
7.15
|
|
|
$
|
7.73
|
|
Diluted
|
|
$
|
1.43
|
|
|
$
|
2.46
|
|
|
$
|
6.98
|
|
|
$
|
7.55
|
|
Cash dividends paid
per share
|
|
$
|
0.32
|
|
|
$
|
0.26
|
|
|
$
|
0.96
|
|
|
$
|
0.78
|
|
Alliant
Techsystems Inc. weighted-average number of common shares
outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
31,693
|
|
|
31,536
|
|
|
31,676
|
|
|
31,701
|
|
Diluted
|
|
31,998
|
|
|
32,613
|
|
|
32,410
|
|
|
32,418
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income before
noncontrolling interest
|
|
$
|
45,788
|
|
|
$
|
80,313
|
|
|
$
|
226,644
|
|
|
$
|
245,120
|
|
Other comprehensive
income (loss), net of tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
Pension and other
postretirement benefit liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Reclassification of
prior service credits for pension and postretirement benefit plans
recorded to net income, net of tax benefit of $2,955, $2,810,
$8,864, and $8,430, respectively
|
|
(4,761)
|
|
|
(4,531)
|
|
|
(14,285)
|
|
|
(13,594)
|
|
Reclassification of
net actuarial loss for pension and postretirement benefit plans
recorded to net income, net of tax expense of $(11,582), $(14,198),
and $(34,747) $(42,594), respectively
|
|
18,638
|
|
|
22,847
|
|
|
55,919
|
|
|
68,541
|
|
Change in fair value
of derivatives, net of tax benefit (expense) of $1,623, $(1,406),
$(885) and $342, respectively
|
|
(2,592)
|
|
|
2,246
|
|
|
1,414
|
|
|
(547)
|
|
Change in fair value
of available-for-sale securities, net of tax (expense)
benefit of $(18), $(35), $(172), and $29,
respectively
|
|
30
|
|
|
56
|
|
|
276
|
|
|
(47)
|
|
Change in cumulative
translation adjustment, net of tax benefits of $4,806, $1,035,
$9,650, and $1,011, respectively
|
|
(7,677)
|
|
|
(1,654)
|
|
|
(15,415)
|
|
|
(1,620)
|
|
Total other
comprehensive income
|
|
3,638
|
|
|
18,964
|
|
|
27,909
|
|
|
52,733
|
|
Comprehensive
income
|
|
49,426
|
|
|
99,277
|
|
|
254,553
|
|
|
297,853
|
|
Less comprehensive
income attributable to noncontrolling interest
|
|
141
|
|
|
27
|
|
|
291
|
|
|
210
|
|
Comprehensive income
attributable to Alliant Techsystems Inc
|
|
$
|
49,285
|
|
|
$
|
99,250
|
|
|
$
|
254,262
|
|
|
$
|
297,643
|
|
ALLIANT
TECHSYSTEMS INC
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(preliminary and
unaudited)
|
|
(Amounts in
thousands except share data)
|
|
December 28,
2014
|
|
March 31,
2014
|
ASSETS
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
112,920
|
|
|
$
|
266,632
|
|
Net
receivables
|
|
1,711,654
|
|
|
1,473,820
|
|
Net
inventories
|
|
552,390
|
|
|
558,250
|
|
Income tax
receivable
|
|
33,233
|
|
|
—
|
|
Deferred income
taxes
|
|
97,855
|
|
|
93,616
|
|
Other current
assets
|
|
81,400
|
|
|
69,280
|
|
Total current
assets
|
|
2,589,452
|
|
|
2,461,598
|
|
Net property, plant,
and equipment
|
|
692,992
|
|
|
697,551
|
|
Goodwill
|
|
1,883,711
|
|
|
1,916,921
|
|
Net
intangibles
|
|
537,168
|
|
|
577,850
|
|
Deferred charges and
other noncurrent assets
|
|
116,396
|
|
|
117,226
|
|
Total
assets
|
|
$
|
5,819,719
|
|
|
$
|
5,771,146
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Current portion of
long-term debt
|
|
$
|
159,997
|
|
|
$
|
249,228
|
|
Accounts
payable
|
|
341,697
|
|
|
315,605
|
|
Contract advances and
allowances
|
|
142,742
|
|
|
105,787
|
|
Accrued
compensation
|
|
100,317
|
|
|
128,821
|
|
Accrued income
taxes
|
|
—
|
|
|
7,877
|
|
Other accrued
liabilities
|
|
315,129
|
|
|
322,832
|
|
Total current
liabilities
|
|
1,059,882
|
|
|
1,130,150
|
|
Long-term
debt
|
|
1,908,503
|
|
|
1,843,750
|
|
Noncurrent deferred
income taxes
|
|
141,358
|
|
|
117,515
|
|
Postretirement and
postemployment benefits
|
|
67,253
|
|
|
74,874
|
|
Pension
|
|
464,869
|
|
|
557,775
|
|
Other noncurrent
liabilities
|
|
128,707
|
|
|
124,944
|
|
Total
liabilities
|
|
3,770,572
|
|
|
3,849,008
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
Common stock—$.01 par
value:
|
|
|
|
|
|
|
Authorized—180,000,000 shares, Issued and
outstanding—31,938,188 shares at December 28, 2014 and 31,842,642
shares at March 31, 2014
|
|
319
|
|
|
318
|
|
Additional
paid-in-capital
|
|
435,746
|
|
|
534,015
|
|
Retained
earnings
|
|
2,984,960
|
|
|
2,789,264
|
|
Accumulated other
comprehensive loss
|
|
(652,900)
|
|
|
(680,809)
|
|
Common stock in
treasury, at cost—9,638,009 shares held at December 28, 2014 and
9,712,877 shares held at March 31, 2014
|
|
(729,832)
|
|
|
(731,213)
|
|
Total Alliant
Techsystems Inc. stockholders' equity
|
|
2,038,293
|
|
|
1,911,575
|
|
Noncontrolling
interest
|
|
10,854
|
|
|
10,563
|
|
Total
equity
|
|
2,049,147
|
|
|
1,922,138
|
|
Total liabilities and
equity
|
|
$
|
5,819,719
|
|
|
$
|
5,771,146
|
|
ALLIANT
TECHSYSTEMS INC
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(preliminary and
unaudited)
|
|
|
|
Nine Months
Ended
|
(Amounts in
thousands)
|
|
December 28,
2014
|
|
December 29,
2013
|
Operating
Activities:
|
|
|
|
|
|
|
Net income before
noncontrolling interest
|
|
$
|
226,644
|
|
|
$
|
245,120
|
|
Adjustments to net
income to arrive at cash provided by operating
activities:
|
|
|
|
|
|
|
Depreciation
|
|
78,605
|
|
|
70,160
|
|
Amortization of
intangibles
|
|
25,433
|
|
|
17,239
|
|
Amortization of debt
discount
|
|
3,212
|
|
|
5,481
|
|
Amortization of
deferred financing costs
|
|
3,887
|
|
|
9,047
|
|
Goodwill and
tradename impairment
|
|
52,220
|
|
|
—
|
|
Deferred income
taxes
|
|
31,920
|
|
|
12,170
|
|
Loss on disposal of
property
|
|
2,448
|
|
|
3,908
|
|
Share-based plans
expense
|
|
12,005
|
|
|
9,437
|
|
Excess tax benefits
from share-based plans
|
|
(6,983)
|
|
|
(833)
|
|
Changes in assets and
liabilities net of effects of business acquisitions:
|
|
|
|
|
|
|
Net
receivables
|
|
(241,072)
|
|
|
46,217
|
|
Net
inventories
|
|
3,515
|
|
|
(47,679)
|
|
Accounts
payable
|
|
39,455
|
|
|
(177,435)
|
|
Contract advances and
allowances
|
|
36,955
|
|
|
(11,910)
|
|
Accrued
compensation
|
|
(32,445)
|
|
|
(35,570)
|
|
Accrued income
taxes
|
|
(22,135)
|
|
|
9,726
|
|
Pension and other
postretirement benefits
|
|
(33,006)
|
|
|
41,284
|
|
Other assets and
liabilities
|
|
(26,472)
|
|
|
25,922
|
|
Cash provided by
operating activities
|
|
154,186
|
|
|
222,284
|
|
Investing
Activities:
|
|
|
|
|
|
|
Capital
expenditures
|
|
(91,991)
|
|
|
(80,580)
|
|
Acquisition of
business, net of cash acquired
|
|
—
|
|
|
(1,301,597)
|
|
Proceeds from the
disposition of property, plant, and equipment
|
|
2,154
|
|
|
5,326
|
|
Cash used for
investing activities
|
|
(89,837)
|
|
|
(1,376,851)
|
|
Financing
Activities:
|
|
|
|
|
|
|
Borrowings on line of
credit
|
|
635,000
|
|
|
280,000
|
|
Repayments of line of
credit
|
|
(535,000)
|
|
|
(280,000)
|
|
Payments made on bank
debt
|
|
(28,250)
|
|
|
(25,000)
|
|
Payments made to
extinguish debt
|
|
(404,462)
|
|
|
(510,000)
|
|
Proceeds from
issuance of long-term debt
|
|
150,000
|
|
|
1,560,000
|
|
Payments made for
debt issue costs
|
|
(1,008)
|
|
|
(21,641)
|
|
Purchase of treasury
shares
|
|
(9,001)
|
|
|
(53,270)
|
|
Dividends
paid
|
|
(30,657)
|
|
|
(24,951)
|
|
Proceeds from
employee stock compensation plans
|
|
—
|
|
|
729
|
|
Excess tax benefits
from share-based plans
|
|
6,983
|
|
|
833
|
|
Cash provided by
(used for) financing activities
|
|
(216,395)
|
|
|
926,700
|
|
Effect of foreign
currency exchange rate fluctuations on cash
|
|
(1,666)
|
|
|
335
|
|
Decrease in cash and
cash equivalents
|
|
(153,712)
|
|
|
(227,532)
|
|
Cash and cash
equivalents at beginning of period
|
|
266,632
|
|
|
417,289
|
|
Cash and cash
equivalents at end of period
|
|
$
|
112,920
|
|
|
$
|
189,757
|
|
|
|
Media
Contact:
|
Investor
Contact:
|
|
|
Amanda
Covington
|
Michael
Pici
|
Phone:
703-412-3231
|
Phone:
703-412-3216
|
E-mail:
amanda.covington@atk.com
|
E-mail:
michael.pici@atk.com
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/atk-reports-fy15-third-quarter-operating-results-300027362.html
SOURCE ATK