MINNEAPOLIS---ATK (Alliant Techsystems), a leading aerospace and defense company and one of the nation's largest suppliers of military ammunition, said fiscal year 2001 earnings per share from continuing operations rose 13 percent to a record $4.80 from $4.24 a year ago. (All per-share figures reflect a 3-for-2 common stock split effective Nov. 27, 2000).
Paul David Miller, chairman and chief executive officer, said, "Our results for FY01 reflect the continuing benefits of a number of key personnel, operational, financial, and strategic initiatives undertaken over the past few years. We are now better positioned and better focused on execution in our four lanes of excellence - munitions, precision capabilities, propulsion, and composite structures. These improvements combined with the acquisition of Thiokol Propulsion Corp. give us confidence that we will continue to deliver on our commitment to increase shareholder value."
Sales for fiscal year 2001, which ended March 31, rose 6 percent to $1.142 billion from $1.078 billion last year, driven primarily by revenues from a highly successful first year of small-caliber ammunition manufacturing operations at the Lake City Army Ammunition Plant in Independence, Mo.
The Conventional Munitions segment set the pace for revenue growth in fiscal year 2001, posting sales of $494 million - up 43 percent from $347 million a year ago. The growth reflects new small-caliber ammunition sales and higher volume from munitions propellant and medium-caliber ammunition programs following the relocation of medium-caliber integration operations to the Radford Army Ammunition Plant in Radford, Va.
Sales from the Aerospace segment declined to $506 million from $530 million a year ago primarily due to lower sales of solid propulsion systems for Titan and Delta space launch vehicles. The Defense Systems segment reported fiscal year 2001 sales of $181 million versus $221 million last year. The decline reflects primarily lower sales from an anti-tank barrier system contract that completed production. A new international order for this system was recently received.
On April 1, ATK combined the Conventional Munitions and Defense Systems segments to create a single business segment called Defense in a move aimed at better leveraging the product breadth of its total defense businesses and achieving cost efficiencies. ATK now operates under two business groups: Aerospace, which includes Thiokol Propulsion, and Defense.
Earnings before interest and income taxes (EBIT) for fiscal year 2001 increased 13 percent to $136.1 million from $120.6 million last year. The EBIT margin rate increased to a record 11.9 percent from 11.2 percent a year ago, reflecting continued strong program performance and savings resulting from facility consolidations.
Cash flow as indicated by earnings before interest, taxes, depreciation, and amortization (EBITDA) increased to an all-time high of $181 million or $12.79 per share from $168 million or $11.08 per share last year.
Free cash flow (cash from operations less capital expenditures) was $50 million versus $65 million last year. The decrease was the result of higher cash taxes and working capital requirements to promote growth at the Lake City Army Ammunition Plant. Additionally, the company performed work under contracts in the current year for which contract advances were received in the prior year. These higher uses of cash were offset by lower capital expenditures as several facility consolidation and start-up projects were completed in the prior year.
Orders booked during the year rose to $1.2 billion from $883 million last year. The increase reflects new orders for the Objective Individual Combat Weapon, small-caliber ammunition, launch vehicle composite structures, munitions propellant, and an international anti-tank barrier system. Funded backlog at the end of fiscal year 2001 remained strong at $2.2 billion or 24 months of sales, while total backlog, which includes multi-year contracts awarded but not yet funded, was $3.4 billion or 36 months of sales at year end.
Including Thiokol Propulsion, ATK's estimated funded and total backlog are $4 billion and $6 billion, respectively.
Earnings per share for fiscal year 2001 were $4.80 versus $4.86 in the previous year. Last year's results include income from discontinued operations of 62 cents per share from an insurance settlement related to the company's former demilitarization operations in Ukraine.
For the fourth quarter ended March 31, earnings per share from continuing operations rose 7 percent to $1.32 from $1.23 in the same period a year ago. Sales for the quarter were $324 million, an increase of 5 percent over $308 million last year.
ATK said it expects continued sales and earnings growth in fiscal year 2002 resulting from the acquisition of Thiokol Propulsion Corp. and ongoing benefits from key operational and financial initiatives. ATK's projection for FY02 earnings per share remains at $5.30 to $5.35, excluding any non-recurring charges associated with the Thiokol acquisition. Sales for the year are forecast between $1.625 billion and $1.650 billion. EBIT margins are expected to be between 13 percent and 14 percent, and EBITDA cash flow for the year is projected to be approximately $300 million.
For the first quarter, sales are expected to be between $375 million and $390 million and earnings per share between $1.18 and $1.20.
ATK is a $1.6 billion aerospace and defense company with leading positions in munitions, precision capabilities, propulsion, and composite structures. The company, which is headquartered in Hopkins, Minn., employs approximately 10,000 people and has two business segments: Aerospace and Defense. (ends)
Click here for full financial statement on ATK website
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ATK Reports Increased Earnings Per Share of $4.80 from Continuing Operations for Fiscal Year 2001
