atk9292013xEX99.1
Exhibit 99.1
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News Release | Corporate Communications 1300 Wilson Boulevard Suite 400 Arlington, Virginia 22209 | Phone: 703-412-3231 Fax: 703-412-3220 |
For Immediate Release
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Media Contact: | Investor Contact: |
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Amanda Covington | Michael Pici |
Phone: 703-412-3231 | Phone: 703-412-3216 |
E-mail: amanda.covington@atk.com | E-mail: michael.pici@atk.com |
ATK Reports FY14 Second Quarter Operating Results
Second Quarter Sales Increase 7 Percent and EPS Increases 43 Percent Year Over Year
ATK Increases FY14 Full-Year Sales, EPS and Free Cash Flow Guidance
Arlington, Va., Nov. 7, 2013 — ATK (NYSE: ATK) today reported operating results for the second quarter of its Fiscal Year 2014 (FY14), which ended on Sept. 29, 2013. Orders for the quarter were up 17 percent to $1.5 billion, which represents a book-to-bill ratio of 1.3. Second quarter year-over-year sales were up 7 percent to $1.1 billion. The increase in sales was due to increased sales in the Sporting Group, partially offset by a sales decline in the Defense Group.
Operating profit in the second quarter increased approximately $38 million. On an adjusted basis, it increased $46 million (see reconciliation table for details). Improved operating profit was primarily driven by both the Sporting and Aerospace Groups, and lower pension expense, partially offset by lower operating profit in the Defense Group. Net income for the quarter increased 42 percent to $93 million compared to $65 million in the prior-year quarter. On an adjusted basis, net income was $91 million compared to $61 million in the prior-year period (see reconciliation tables for details). Fully diluted earnings per share were $2.86 compared to $2.00 in the prior-year period. On an adjusted basis, EPS was $2.82 compared to $1.88 in the prior-year period (see reconciliation tables for details). The increases in adjusted net income and adjusted EPS are due to higher operating profit and lower interest expense.
During the quarter, ATK reported strong, year-over-year organic growth in the Sporting Group, while successfully executing the Savage integration plan. On Nov. 1, 2013, ATK also completed the acquisition of Bushnell Group Holdings, Inc. (Bushnell). The acquisition will be integrated into ATK's Sporting Group and will increase the company's presence in higher-growth shooting sports and outdoor markets. With the addition of Bushnell and Savage, the Sporting Group will account for approximately 45 percent of total ATK revenue, and across the enterprise, commercial and international sales will account for approximately 50 percent of ATK total revenue.
In addition, ATK recorded a number of new program wins and program milestones in the second quarter. ATK secured a strategic commercial launch contract from Orbital Sciences to provide large-diameter propulsion for the Air Launch Vehicle that Orbital is designing for Stratolaunch Systems Corporation. ATK also completed delivery of the James Webb Space Telescope’s primary mirror backplane support structure. This was a critical milestone for the world’s most powerful space telescope. ATK delivered the 100th Advanced Anti-Radiation Guided Missile to the U.S. Navy and received a production contract from the U.S. Army for the Precision Guidance Kit, demonstrating innovative and affordable technology solutions for current and emerging customer needs.
"We are delivering year-over-year revenue and profit growth that is aligned with our vision and strategy of strengthening our leadership positions," said Mark DeYoung, ATK President and Chief Executive Officer. "ATK continues to
win new business that supports our core capabilities, and we are delivering significant value to our customers. With our recent acquisition of Bushnell, ATK's comprehensive product offering will position us for future expansion into new and adjacent outdoor recreation markets. Our objective is to efficiently deliver quality products to an array of aerospace, defense and commercial customers, resulting in superior shareholder returns and a healthy balance sheet."
SUMMARY OF REPORTED RESULTS
The following table presents the company’s results for the second quarter of the fiscal year, which ended Sept. 29, 2013 (in thousands).
Sales:
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| | Quarters Ended | | Six Months Ended |
| | September 29, 2013 | | September 30, 2012 | | $ Change | | % Change | | September 29, 2013 | | September 30, 2012 | | $ Change | | % Change |
Aerospace Group | | $ | 319,403 |
| | $ | 315,071 |
| | $ | 4,332 |
| | 1.4 | % | | $ | 626,590 |
| | $ | 615,012 |
| | $ | 11,578 |
| | 1.9 | % |
Defense Group | | 471,900 |
| | 520,847 |
| | (48,947 | ) | | (9.4 | )% | | 946,716 |
| | 1,067,019 |
| | (120,303 | ) | | (11.3 | )% |
Sporting Group | | 421,359 |
| | 284,489 |
| | 136,870 |
| | 48.1 | % | | 779,666 |
| | 563,453 |
| | 216,213 |
| | 38.4 | % |
Eliminations | | (70,281 | ) | | (50,620 | ) | | (19,661 | ) | | 38.8 | % | | (131,850 | ) | | (93,395 | ) | | (38,455 | ) | | 41.2 | % |
Total sales | | $ | 1,142,381 |
| | $ | 1,069,787 |
| | $ | 72,594 |
| | 6.8 | % | | $ | 2,221,122 |
| | $ | 2,152,089 |
| | $ | 69,033 |
| | 3.2 | % |
Income before Interest, Loss on Extinguishment of Debt, Income Taxes, and Noncontrolling Interest (Operating Profit):
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| | Quarters Ended | | Six Months Ended |
| | September 29, 2013 | | September 30, 2012 | | $ Change | | % Change | | September 29, 2013 | | September 30, 2012 | | $ Change | | % Change |
Aerospace Group | | $ | 40,570 |
| | $ | 37,077 |
| | $ | 3,493 |
| | 9.4 | % | | $ | 77,656 |
| | $ | 72,028 |
| | $ | 5,628 |
| | 7.8 | % |
Defense Group | | 55,071 |
| | 64,546 |
| | (9,475 | ) | | (14.7 | )% | | 117,159 |
| | 155,907 |
| | (38,748 | ) | | (24.9 | )% |
Sporting Group | | 57,823 |
| | 25,133 |
| | 32,690 |
| | 130.1 | % | | 101,939 |
| | 45,927 |
| | 56,012 |
| | 122.0 | % |
Corporate | | (5,198 | ) | | (16,199 | ) | | 11,001 |
| | (67.9 | )% | | (22,865 | ) | | (32,617 | ) | | 9,752 |
| | (29.9 | )% |
Total operating profit | | $ | 148,266 |
| | $ | 110,557 |
| | $ | 37,709 |
| | 34.1 | % | | $ | 273,889 |
| | $ | 241,245 |
| | $ | 32,644 |
| | 13.5 | % |
SEGMENT RESULTS
ATK operates in a three business group structure: the Aerospace Group, the Defense Group and the Sporting Group.
AEROSPACE GROUP
Second quarter sales increased 1 percent to $319 million compared to $315 million in the prior-year quarter. The increase reflects increased sales in the Space Components and Space Systems Operations divisions.
Operating profit in the quarter increased 9 percent to $41 million compared to $37 million in the prior-year quarter, reflecting higher profit expectations on a significant, multi-year commercial program.
DEFENSE GROUP
Sales in the second quarter decreased 9 percent to $472 million compared to $521 million in the prior-year quarter, reflecting reduced sales in the Small Caliber Systems division, partially offset by increases in the Missile Products division.
Operating profit for the quarter declined 15 percent to $55 million compared to $65 million in the prior-year quarter. This is a result of reduced sales as mentioned above, partially offset by a change in profit expectations of $22 million due to operational efficiencies, a successful in-sourcing initiative, and reduced operational risk as a contract nears completion.
SPORTING GROUP
Second quarter sales increased 48 percent to $421 million compared to $284 million in the prior-year quarter. The increase in sales was driven by higher volume in ammunition, sales from Savage of $57 million, and a previously announced ammunition price increase, partially offset by a decline in sales in tactical military accessories. Organic sales increased 28 percent year over year.
Operating profit in the second quarter increased 130 percent to $58 million compared to $25 million in the prior-year quarter. On an adjusted basis, operating profit for the quarter was $66 million (see reconciliation table for details). The increase is due to ammunition price increases and sales volume as noted above, product mix, and Savage operating profit, partially offset by restructuring and facility rationalization costs in tactical military accessories. Savage contributed approximately $5 million, which is net of $8 million of inventory step-up.
CORPORATE AND OTHER
In the second quarter, corporate and other expenses totaled $5 million compared to $16 million in the prior-year quarter, reflecting lower pension expense, partially offset by transaction costs related to acquisitions. The tax rate for the quarter was 30.3 percent compared to 19.4 percent in the prior-year quarter. The increase reflects the absence of a favorable settlement of the IRS audit of the company's tax returns recorded in the prior-year quarter, partially offset by a discrete impact of several tax law changes in the current quarter. Interest expense was $15 million compared to $18 million in the prior-year quarter, reflecting both a lower average debt level and a lower average borrowing rate during the quarter.
Year-to-date free cash flow use was $10 million compared to a use of $73 million in the prior-year period (see reconciliation table for details). The decreased use reflects lower pension contributions and the absence of the LUU flare settlement payment made in the prior year, partially offset by the absence of a collection of a significant receivable in the prior year. Year-to-date capital expenditures were $52 million compared to $40 million in the prior year, primarily driven by the Small Caliber Systems division, the Aerospace Structures division and the Sporting Group.
A total of $24 million in shares was repurchased in the second quarter, bringing the total value of share repurchases to $108 million since ATK's Board of Directors established the two-year repurchase program.
In conjunction with the Bushnell acquisition, ATK raised $2.26 billion of financing, including $1.96 billion of Senior Secured Credit Facilities and $300 million, eight-year Senior Notes at 5.25 percent per annum. The proceeds from the financing were used to finance the acquisition, refinance in full all indebtedness under the existing Senior Credit Facilities, and pay fees and expenses incurred in connection with the transactions. The financing was well supported in the market and provides ATK with a strong balance sheet with debt maturities in the 2018 to 2021 time frame.
OUTLOOK
FY14 expectations for the Bushnell acquisition are as follows: sales of $225 million to $250 million, and EBIT in the range of a loss of $3 million to a profit of $3 million, which reflects $6 million of inventory step-up and $22 million to $25 million of transaction and transition costs.
ATK is raising its full-year FY14 sales guidance, including Bushnell, to a range of approximately $4.68 billion to $4.73 billion, up from previous guidance of $4.3 billion to $4.38 billion. The increase is due to Bushnell and strong operating performance. ATK now expects full-year interest expense of approximately $80 million, reflecting the refinancing of existing debt, including an approximately $6 million write-off of unamortized financing costs, and the financing of the Bushnell acquisition. ATK also expects a full-year tax rate of approximately 34.5 percent, down from its previous guidance of approximately 35 percent.
Full-year FY14 EPS guidance is now $9.10 to $9.40 up from previous guidance of $8.60 to $9.00, reflecting strong operating performance and an approximately $0.50 dilutive effect of the Bushnell acquisition due to the stub period, transaction expenses and purchase accounting. ATK expects its full-year FY14 free cash flow guidance in the range of $210 million to $230 million, up from previous guidance of $200 million to $225 million (see reconciliation table for details).
ATK's FY14 guidance assumes that an appropriations bill or continuing resolution for Government Fiscal Year 2014 will continue to support and fund ATK's programs beyond the current Jan. 15, 2014 deadline. FY14 guidance also assumes no disruption of programs or payments during any potential future shutdown of government operations and no cancellation or termination of any of ATK's significant programs.
As previously communicated, ATK's FY14 guidance assumes lower margin rates in the second half of the year in the Small Caliber Systems division as the company begins to operate under a new contract.
"ATK's updated guidance reflects the company's growth through disciplined investing in our leadership positions, including organic growth as well as our strategic acquisitions of Savage and Bushnell," said Neal Cohen, Executive Vice President and Chief Financial Officer of ATK. "We are committed to execution excellence and quality through our Performance Enterprise System business model, continued earnings and free cash flow growth, and maintaining a strong balance sheet."
Reconciliation of Non-GAAP Financial Measures
Sales, Margins, and Earnings Per Share
The Sales, Margins, and Earnings Per Share (EPS) excluding the Savage inventory step-up, early extinguishment of debt, and the tax settlement and several tax law changes 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, Margin 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. Amounts in the following tables are in thousands (except EPS data).
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Total ATK for the Quarter Ended | | | | | | | | | | | | |
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September 29, 2013: | | | | | | | | | | | | | | |
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| | Sales | | EBIT | | Margin | | Loss on Extinguishment of Debt | | Taxes | | After-tax | | EPS |
As reported | | $ | 1,142,381 |
| | $ | 148,266 |
| | 13.0 | % | | $ | — |
| | $ | 40,376 |
| | $ | 92,591 |
| | $ | 2.86 |
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Inventory step-up | | | | 7,809 |
| | | | | | 2,889 |
| | 4,920 |
| | 0.15 |
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Tax law changes | | | | | | | | | | 6,048 |
| | (6,048 | ) | | (0.19 | ) |
As adjusted | | $ | 1,142,381 |
| | $ | 156,075 |
| | 13.7 | % | | $ | — |
| | $ | 49,313 |
| | $ | 91,463 |
| | $ | 2.82 |
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Total ATK for the Quarter Ended | | | | | | | | | | | | |
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September 30, 2012: | | | | | | | | | | | | | | |
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| | Sales | | EBIT | | Margin | | Loss on Extinguishment of Debt | | Taxes | | After-tax | | EPS |
As reported | | $ | 1,069,787 |
| | $ | 110,557 |
| | 10.3 | % | | $ | 11,773 |
| | $ | 15,640 |
| | $ | 65,061 |
| | $ | 2.00 |
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Early debt extinguishment | | | | | | | | (11,773 | ) | | 4,591 |
| | 7,182 |
| | 0.22 |
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FY 09 and 10 tax settlement | |
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| | | | 11,123 |
| | (11,123 | ) | | (0.34 | ) |
As adjusted | | $ | 1,069,787 |
| | $ | 110,557 |
| | 10.3 | % | | $ | — |
| | $ | 31,354 |
| | $ | 61,120 |
| | $ | 1.88 |
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Sporting Group for the Quarter Ended | | | | |
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September 29, 2013: | | | | | | |
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| | Sales | | EBIT | | Margin |
As reported | | $ | 421,359 |
| | $ | 57,823 |
| | 13.7 | % |
Inventory step up | | | | 7,809 |
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As adjusted | | $ | 421,359 |
| | $ | 65,632 |
| | 15.6 | % |
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Free Cash Flow
Free cash flow is defined as cash provided by (used for) operating activities less capital expenditures. 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. Amounts in the following table are in thousands.
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$ in thousands | | Six Months Ended September 30, 2012 | | Six Months Ended September 29, 2013 | | Projected Year Ending March 31, 2014 |
Cash (used for) provided by operating activities | | $ | (32,788 | ) | | $ | 42,553 |
| | $355,000–$375,000 |
Capital expenditures | | (40,182 | ) | | (52,262 | ) | | ~(145,000) |
Free cash flow | | $ | (72,970 | ) | | $ | (9,709 | ) | | $210,000–$230,000 |
ATK is an aerospace, defense and commercial products company with operations in 22 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 risk that the anticipated benefits and cost savings from the Bushnell transaction 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 following completion of the transaction; and changes in the 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; assumptions regarding orders; the terms and timing of awards and contracts; program performance; program terminations; changes in 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.
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ALLIANT TECHSYSTEMS INC.
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
(preliminary and unaudited)
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| | QUARTERS ENDED | | SIX MONTHS ENDED |
(Amounts in thousands except per share data) | | September 29, 2013 | | September 30, 2012 | | September 29, 2013 | | September 30, 2012 |
Sales | | $ | 1,142,381 |
| | $ | 1,069,787 |
| | $ | 2,221,122 |
| | $ | 2,152,089 |
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Cost of sales | | 874,955 |
| | 841,520 |
| | 1,711,685 |
| | 1,674,199 |
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Gross profit | | 267,426 |
| | 228,267 |
| | 509,437 |
| | 477,890 |
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Operating expenses: | | |
| | |
| | |
| | |
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Research and development | | 11,801 |
| | 15,914 |
| | 22,226 |
| | 29,921 |
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Selling | | 46,899 |
| | 39,609 |
| | 89,664 |
| | 80,136 |
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General and administrative | | 60,460 |
| | 62,187 |
| | 123,658 |
| | 126,588 |
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Income before interest, loss on extinguishment of debt, income taxes, and noncontrolling interest | | 148,266 |
| | 110,557 |
| | 273,889 |
| | 241,245 |
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Interest expense | | (15,242 | ) | | (18,098 | ) | | (29,132 | ) | | (37,913 | ) |
Interest income | | 23 |
| | 123 |
| | 91 |
| | 187 |
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Loss on extinguishment of debt | | — |
| | (11,773 | ) | | — |
| | (11,773 | ) |
Income before income taxes and noncontrolling interest | | 133,047 |
| | 80,809 |
| | 244,848 |
| | 191,746 |
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Income tax provision | | 40,376 |
| | 15,640 |
| | 80,037 |
| | 55,637 |
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Net income | | 92,671 |
| | 65,169 |
| | 164,811 |
| | 136,109 |
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Less net income attributable to noncontrolling interest | | 80 |
| | 108 |
| | 183 |
| | 220 |
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Net income attributable to Alliant Techsystems Inc. | | $ | 92,591 |
| | $ | 65,061 |
| | $ | 164,628 |
| | $ | 135,889 |
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Alliant Techsystems Inc.’s earnings per common share: | | |
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Basic | | $ | 2.92 |
| | $ | 2.01 |
| | $ | 5.18 |
| | $ | 4.18 |
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Diluted | | $ | 2.86 |
| | $ | 2.00 |
| | $ | 5.10 |
| | $ | 4.16 |
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Cash dividends paid per share | | $ | 0.26 |
| | $ | 0.20 |
| | $ | 0.52 |
| | $ | 0.40 |
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Alliant Techsystems Inc.’s weighted-average number of common shares outstanding: | | |
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| | |
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Basic | | 31,671 |
| | 32,406 |
| | 31,781 |
| | 32,519 |
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Diluted | | 32,385 |
| | 32,591 |
| | 32,256 |
| | 32,685 |
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Net income (from above) | | $ | 92,671 |
| | $ | 65,169 |
| | $ | 164,811 |
| | $ | 136,109 |
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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 $2,790, $841, $5,620, and $1,683 | | (4,552 | ) | | (1,352 | ) | | (9,063 | ) | | (2,703 | ) |
Reclassification of net actuarial loss for pension and postretirement benefit plans recorded to net income, net of tax expense of $(14,077), $(12,297), and $(28,396) $(24,619) | | 22,968 |
| | 19,501 |
| | 45,694 |
| | 39,041 |
|
Valuation adjustment for pension and postretirement benefit plans, net of tax (expense) benefit of $0, $0, $0, and $(732) | | — |
| | — |
| | — |
| | 1,268 |
|
Change in fair value of derivatives, net of tax benefit (expense) of $(2,097), $(1,971), $1,721 and $847, respectively | | 3,222 |
| | 3,073 |
| | (2,759 | ) | | (1,334 | ) |
Change in fair value of available-for-sale securities, net of tax benefit of $52, $91, $64, and $148, respectively | | (83 | ) | | (142 | ) | | (103 | ) | | (232 | ) |
Total other comprehensive income | | $ | 21,555 |
| | $ | 21,080 |
| | $ | 33,769 |
| | $ | 36,040 |
|
Comprehensive income | | 114,226 |
| | 86,249 |
| | 198,580 |
| | 172,149 |
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Less comprehensive income attributable to noncontrolling interest | | 80 |
| | 108 |
| | 183 |
| | 220 |
|
Comprehensive income attributable to Alliant Techsystems Inc. | | $ | 114,146 |
| | $ | 86,141 |
| | $ | 198,397 |
| | $ | 171,929 |
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ALLIANT TECHSYSTEMS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(preliminary and unaudited)
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(Amounts in thousands except share data) | | September 29, 2013 | | March 31, 2013 |
Assets | | |
| | |
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Current assets: | | |
| | |
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Cash and cash equivalents | | $ | 112,911 |
| | $ | 417,289 |
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Net receivables | | 1,391,320 |
| | 1,312,573 |
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Net inventories | | 392,021 |
| | 315,064 |
|
Income tax receivable | | — |
| | 22,066 |
|
Deferred income tax assets | | 61,906 |
| | 106,566 |
|
Other current assets | | 49,965 |
| | 45,174 |
|
Total current assets | | 2,008,123 |
| | 2,218,732 |
|
Net property, plant, and equipment | | 625,277 |
| | 602,320 |
|
Goodwill | | 1,411,831 |
| | 1,251,536 |
|
Noncurrent deferred income tax assets | | 65,936 |
| | 95,007 |
|
Deferred charges and other non-current assets | | 334,191 |
| | 215,415 |
|
Total assets | | $ | 4,445,358 |
| | $ | 4,383,010 |
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Liabilities and Equity | | |
| | |
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Current liabilities: | | |
| | |
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Current portion of long-term debt | | $ | 334,996 |
| | $ | 50,000 |
|
Accounts payable | | 216,639 |
| | 337,713 |
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Contract advances and allowances | | 110,735 |
| | 119,491 |
|
Accrued compensation | | 90,574 |
| | 137,630 |
|
Accrued income taxes | | 16,154 |
| | — |
|
Other accrued liabilities | | 314,632 |
| | 262,021 |
|
Total current liabilities | | 1,083,730 |
| | 906,855 |
|
Long-term debt | | 820,000 |
| | 1,023,877 |
|
Postretirement and postemployment benefits liabilities | | 87,955 |
| | 94,087 |
|
Accrued pension liability | | 679,633 |
| | 719,172 |
|
Other long-term liabilities | | 118,429 |
| | 126,458 |
|
Total liabilities | | 2,789,747 |
| | 2,870,449 |
|
Commitments and contingencies | | |
| | |
|
Common stock - $.01 par value: | | |
| | |
|
Authorized—180,000,000 shares, Issued and outstanding—31,857,974 shares at September 29, 2013 and 32,318,295 shares at March 31, 2013 | | 319 |
| | 323 |
|
Additional paid-in-capital | | 535,015 |
| | 534,137 |
|
Retained earnings | | 2,631,432 |
| | 2,483,483 |
|
Accumulated other comprehensive loss | | (794,535 | ) | | (828,304 | ) |
Common stock in treasury, at cost—9,697,475 shares held at September 29, 2013 and 9,237,154 shares held at March 31, 2013 | | (727,195 | ) | | (687,470 | ) |
Total Alliant Techsystems Inc. stockholders’ equity | | 1,645,036 |
| | 1,502,169 |
|
Noncontrolling interest | | 10,575 |
| | 10,392 |
|
Total equity | | 1,655,611 |
| | 1,512,561 |
|
Total liabilities and equity | | $ | 4,445,358 |
| | $ | 4,383,010 |
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ALLIANT TECHSYSTEMS INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(preliminary and unaudited)
|
| | | | | | | | |
| | SIX MONTHS ENDED |
(Amounts in thousands) | | September 29, 2013 | | September 30, 2012 |
Operating Activities | | |
| | |
|
Net income | | $ | 164,811 |
| | $ | 136,109 |
|
Adjustments to net income to arrive at cash used for operating activities: | | |
| | |
|
Depreciation | | 46,442 |
| | 52,518 |
|
Amortization of intangible assets | | 7,106 |
| | 5,735 |
|
Amortization of debt discount | | 3,619 |
| | 3,378 |
|
Amortization of deferred financing costs | | 1,798 |
| | 1,979 |
|
Deferred income taxes | | 3,577 |
| | (5,330 | ) |
Loss on extinguishment of debt | | — |
| | 11,773 |
|
Loss on disposal of property | | 1,581 |
| | 576 |
|
Share-based plans expense | | 6,308 |
| | 6,437 |
|
Excess tax benefits from share-based plans | | (713 | ) | | — |
|
Changes in assets and liabilities: | | |
| | |
|
Net receivables | | (44,550 | ) | | 45,251 |
|
Net inventories | | (40,458 | ) | | (40,102 | ) |
Accounts payable | | (129,474 | ) | | (118,345 | ) |
Contract advances and allowances | | (8,756 | ) | | (1,818 | ) |
Accrued compensation | | (49,880 | ) | | (19,965 | ) |
Accrued income taxes | | 27,983 |
| | 2,181 |
|
Pension and other postretirement benefits | | 13,735 |
| | (68,833 | ) |
Other assets and liabilities | | 39,424 |
| | (44,332 | ) |
Cash provided by (used for) operating activities | | 42,553 |
| | (32,788 | ) |
Investing Activities | | |
| | |
|
Capital expenditures | | (52,262 | ) | | (40,182 | ) |
Acquisition of business, net of cash acquired | | (313,963 | ) | | — |
|
Proceeds from the disposition of property, plant, and equipment | | 5,363 |
| | 19 |
|
Cash used for investing activities | | (360,862 | ) | | (40,163 | ) |
Financing Activities | | |
| | |
|
Borrowings on line of credit | | 235,000 |
| | — |
|
Repayments of line of credit | | (145,000 | ) | | — |
|
Payments made on bank debt | | (12,500 | ) | | (10,000 | ) |
Payments made to extinguish debt | | — |
| | (409,000 | ) |
Proceeds from issuance of long-term debt | | — |
| | 200,000 |
|
Payments made for debt issue costs | | — |
| | (1,458 | ) |
Purchase of treasury shares | | (48,259 | ) | | (24,997 | ) |
Dividends paid | | (16,679 | ) | | (13,064 | ) |
Proceeds from employee stock compensation plans | | 656 |
| | — |
|
Excess tax benefits from share-based plans | | 713 |
| | — |
|
Cash provided by (used for) financing activities | | 13,931 |
| | (258,519 | ) |
Decrease in cash and cash equivalents | | (304,378 | ) | | (331,470 | ) |
Cash and cash equivalents at beginning of period | | 417,289 |
| | 568,813 |
|
Cash and cash equivalents at end of period | | $ | 112,911 |
| | $ | 237,343 |
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