EXHIBIT 99.1

Aerojet Rocketdyne Holdings, Inc. Reports 2020 First Quarter Results

EL SEGUNDO, Calif., April 28, 2020 (GLOBE NEWSWIRE) -- Aerojet Rocketdyne Holdings, Inc. (NYSE:AJRD) today reported results for the three months ended March 31, 2020.

Financial Overview

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* The Company provides Non-GAAP measures as a supplement to financial results based on accounting principles generally accepted in the United States (“GAAP”). A reconciliation of the Non-GAAP measures to the most directly comparable GAAP measures is included at the end of the release.

“The first quarter of 2020 brought unprecedented times for our country and the world with the outbreak of COVID-19. Our first priority is the safety and well-being of our employees and we implemented a number of safety protocols during the quarter, that are still in place, in an effort to keep our employees and their families safe and healthy,” said Eileen Drake, CEO and President of Aerojet Rocketdyne Holdings, Inc. “Throughout all of this, I am very proud of the Aerojet Rocketdyne team and their ability to stay focused and productive.”

“Total backlog at March 31, 2020 was $5.2 billion, up 37% from $3.8 billion a year ago primarily driven by multi-year awards on THAAD and various Raytheon programs, mainly Standard Missile,” said Drake. “We anticipate $2.0 billion of that to convert to sales over the next 12 months. We ended the quarter with strong EBITDAP margins of 13.1%, on sales of $476.1 million. Sales were down 3% year over year driven by lower sales from the Commercial Crew Development program, the shipment of the final AJ-60 solid rocket motor that occurred in the first quarter of 2019 and headwinds from the canceled RKV program. While the full impacts of the COVID-19 pandemic on Aerojet Rocketdyne are not yet known, I am very pleased with how our employees have been flexible, maintained discipline and continue to deliver the products necessary to defend our nation and further space exploration.”

First quarter of 2020 compared with first quarter of 2019

The decrease in net sales was primarily due to a decline of $21.3 million in space program sales primarily driven by (i) lower sales in the Commercial Crew Development program and (ii) the final shipment of the AJ-60 solid rocket motor that occurred in the first quarter of 2019, partially offset by growth in the RS-25 program. The decline in net sales was partially offset by an increase of $5.7 million in defense program sales primarily driven by the Guided Multiple Launch Rocket System (“GMLRS”) and hypersonic booster programs, partially offset by declines in the Redesigned Exoatmospheric Kill Vehicle (“RKV”) program which was canceled in 2019.

The decrease in net income was impacted by (i) 2020 cost growth on a portion of the Standard Missile program and the reserve release upon the final AJ-60 solid rocket motor delivery in 2019 and (ii) higher retirement benefits expense, partially offset by lower stock-based compensation. The Company had $1.9 million of favorable changes in contract estimates on net income in the current period compared with favorable changes of $9.7 million in the first quarter of 2019.

Backlog

As of March 31, 2020, the Company’s total remaining performance obligations, also referred to as backlog, totaled $5.2 billion. The Company expects to recognize approximately 38%, or $2.0 billion, of the remaining performance obligations as sales over the next twelve months, an additional 24% the following twelve months, and 38% thereafter. A summary of the Company’s backlog is as follows:

Total backlog includes both funded backlog (unfilled orders for which funding is authorized, appropriated and contractually obligated by the customer) and unfunded backlog (firm orders for which funding has not been appropriated). Indefinite delivery and quantity contracts and unexercised options are not reported in total backlog. Backlog is subject to funding delays or program restructurings/cancellations which are beyond the Company’s control.

COVID-19

During the three months ended March 31, 2020, there was minimal impact to the Company’s financial results and operations as a result of the COVID-19 outbreak that began in late 2019, and was declared a pandemic by the World Health Organization on March 11, 2020. The safety and welfare of employees is a top priority, and in the quarter, a number of safety protocols were established. Selected and site-specific work and travel restrictions, in addition to other measures intended to reduce the spread of COVID-19, were introduced. Although the Company did not experience significant absenteeism or supply chain disruption, the extent to which the COVID-19 pandemic impacts the Company’s financial results and operations for 2020 and beyond will depend on future developments which are highly uncertain and cannot be predicted, including new information which may emerge concerning the severity of the pandemic and the actions being taken to contain and treat it, and other indirect effects that may come as a result of actions taken by governments, companies, and individuals in response to the pandemic and its economic impact.

Forward-Looking Statements

This release contains certain “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995. Such statements in this release and in subsequent discussions with the Company’s management are based on management’s current expectations and are subject to risks, uncertainty and changes in circumstances, which could cause actual results, performance or achievements to differ materially from anticipated results, performance or achievements. All statements contained herein and in subsequent discussions with the Company’s management that are not clearly historical in nature are forward-looking and the words “anticipate,” “believe,” “expect,” “estimate,” “plan,” and similar expressions are generally intended to identify forward-looking statements. A variety of factors could cause actual results or outcomes to differ materially from those expected and expressed in the Company’s forward-looking statements. Important risk factors that could cause actual results or outcomes to differ from those expressed in the forward-looking statements include, but are not limited to, the following:

• the COVID-19 pandemic and its impact on economic and other conditions worldwide, including global spending, sourcing and the business operations of the Company and its customers and suppliers, among others;
• reductions, delays or changes in U.S. government spending;
• cancellation or material modification of one or more significant contracts;
• cost overruns on the Company’s contracts that require the Company to absorb excess costs;
• changes in estimates related to contract accounting;
• failure to secure contracts;
• failure of the Company’s subcontractors or suppliers to perform their contractual obligations;
• failure to comply with regulations applicable to contracts with the U.S. government;
• the release, unplanned ignition, explosion, or improper handling of dangerous materials used in the Company’s businesses;
• loss of key qualified suppliers of technologies, components, and materials;
• failure of the Company’s information technology infrastructure, including a successful cyber-attack, accident, unsuccessful outsourcing of certain information technology and cyber security functions, or security breach that could result in disruptions to the Company’s operations;
  
• the Company’s Competitive Improvement Program may not be successful in aligning the Company’s operations to current market conditions;
• the funded status of the Company’s defined benefit pension plan and the Company’s obligation to make cash contributions in excess of the amount that the Company can recover in its current period overhead rates;
• effects of changes in discount rates and actuarial estimates, actual returns on plan assets, and government regulations on defined benefit pension plans;
• costs and time commitment related to potential and/or actual acquisition activities may exceed expectations;
• failure of the Company’s information technology infrastructure or failure to perform by the Company’s third party service providers;
• product failures, schedule delays or other problems with existing or new products and systems;
• the possibility that environmental and other government regulations that impact the Company become more stringent or subject the Company to material liability in excess of its established reserves;
• environmental claims related to the Company’s current and former businesses and operations including the inability to protect or enforce previously executed environmental agreements;
• reductions in the amount recoverable from environmental claims;
• significant risk exposures and potential liabilities that are inadequately covered by insurance;
• inability to protect the Company’s patents and proprietary rights;
• business disruptions to the extent not covered by insurance;
• changes or clarifications to current tax law or procedural guidance could adversely impact the Company’s tax liabilities and effective tax rate;
• the substantial amount of debt that places significant demands on the Company’s cash resources and could limit the Company’s ability to borrow additional funds or expand its operations;
• the Company’s ability to comply with the financial and other covenants contained in the Company’s debt agreements;
• changes in LIBOR reporting practices or the method by which LIBOR is determined;
• risks inherent to the real estate market;
• changes in economic and other conditions in the Sacramento, California metropolitan area real estate market or changes in interest rates affecting real estate values in that market;
• the loss of key employees and shortage of available skilled employees to achieve anticipated growth;
• a strike or other work stoppage or the Company’s inability to renew collective bargaining agreements on favorable terms; and
• those risks detailed in the Company’s reports filed with the SEC.

About Aerojet Rocketdyne Holdings, Inc.

Aerojet Rocketdyne Holdings, Inc., headquartered in El Segundo, California, is an innovative technology-based manufacturer of aerospace and defense products and systems, with a real estate segment that includes activities related to the entitlement, sale, and leasing of the Company’s excess real estate assets. More information can be obtained by visiting the Company’s websites at www.rocket.com or www.aerojetrocketdyne.com.

Contact information:
Investors: Kelly Anderson, investor relations 310.252.8155

The Company evaluates its operating segments based on several factors, of which the primary financial measure is segment performance. Segment performance represents net sales less applicable costs, expenses and provisions for unusual items relating to the segment. Excluded from segment performance are: corporate income and expenses, interest expense, interest income, income taxes, and unusual items not related to the segment. The Company believes that segment performance provides information useful to investors in understanding its underlying operational performance.

Use of Unaudited Non-GAAP Financial Measures

Adjusted EBITDAP, Adjusted Net Income, and Adjusted EPS

The Company provides the Non-GAAP financial measures of its performance called Adjusted EBITDAP, Adjusted Net Income, and Adjusted EPS. The Company uses these metrics to measure its operating and total Company performance. The Company believes that for management and investors to effectively compare core performance from period to period, the metrics should exclude items that are not indicative of, or are unrelated to, results from the ongoing business operations such as retirement benefits (pension and postretirement benefits), significant non-cash expenses, the impacts of financing decisions on earnings, and items incurred outside the ordinary, ongoing and customary course of business. Accordingly, the Company defines Adjusted EBITDAP as GAAP net income adjusted to exclude interest expense, interest income, income taxes, depreciation and amortization, retirement benefits net of amounts that are recoverable under the Company’s U.S. government contracts, and unusual items which the Company does not believe are reflective of such ordinary, ongoing and customary activities. Adjusted Net Income and Adjusted EPS exclude retirement benefits net of amounts that are recoverable under its U.S. government contracts and unusual items which the Company does not believe are reflective of such ordinary, ongoing and customary activities. Adjusted Net Income and Adjusted EPS do not represent, and should not be considered an alternative to, net income or diluted EPS as determined in accordance with GAAP.

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(1)   The income tax impact is calculated using the federal and state statutory rates in the corresponding period.

Free Cash Flow

The Company also provides the Non-GAAP financial measure of Free Cash Flow. Free Cash Flow is defined as cash flow from operating activities less capital expenditures. Free Cash Flow should not be considered in isolation, as a measure of residual cash flow available for discretionary purposes, or as an alternative to cash flows from operations presented in accordance with GAAP. The Company uses Free Cash Flow, both in presenting its results to stakeholders and the investment community, and in the Company’s internal evaluation and management of the business. Management believes that this financial measure is useful because it provides supplemental information to assist investors in viewing the business using the same tools that management uses to evaluate progress in achieving the Company’s goals. The following table summarizes Free Cash Flow:

Because the Company’s method for calculating these Non-GAAP measures may differ from other companies’ methods, the Non-GAAP measures presented above may not be comparable to similarly titled measures reported by other companies. These measures are not recognized in accordance with GAAP, and the Company does not intend for this information to be considered in isolation or as a substitute for GAAP measures.