Exhibit 99.1
| | | |
NEWS
RELEASE | |  |
| | | |
| For Immediate Release | | For More Information Contact: |
| | | Barron Beneski (703) 406-5528 |
| | | Public and Investor Relations |
| | | beneski.barron@orbital.com |
ORBITAL REPORTS SECOND QUARTER 2008 FINANCIAL RESULTS
— Revenues Increase 15%, Operating Income Rises 27%, EPS Up 87% —
— Company Completes Sale of TMS Business Unit in Second Quarter —
(Dulles, VA 17 July 2008) – Orbital Sciences Corporation (NYSE: ORB) today announced its financial results for the second quarter of 2008. Orbital’s second quarter revenues increased 15% to $301.2 million in 2008, compared to $261.2 million in 2007. The company’s second quarter operating income rose 27% to $26.5 million in 2008, as compared to $20.9 million in 2007. Adjusted income from continuing operations* was $21.4 million, or $0.35 adjusted diluted earnings per share*, in the second quarter of 2008, compared to income from continuing operations of $13.5 million, or $0.22 diluted earnings per share, in the second quarter of 2007. Orbital reported second quarter 2008 free cash flow* of $13.3 million compared to free cash flow of $17.3 million in the second quarter of 2007.
Commenting on Orbital’s second quarter results, Mr. David W. Thompson, Chairman and Chief Executive Officer, said, “Orbital continued its strong financial performance through the second quarter of 2008. The company’s advanced space programs and launch vehicles segments led the way in revenue gains this quarter, while our launch vehicles and satellites and space systems segments both recorded profit margin increases.” Mr. Thompson added, “We were also pleased to announce during the second quarter the successful completion of the sale of our transportation management systems business, resulting in net cash proceeds to the company of about $40 million.”
For the first half of 2008, Orbital reported revenues of $584.8 million, up 22% as compared to $479.2 million in the first half of 2007. The company’s operating income for the first half of 2008 was $46.5 million, up 24% compared to $37.4 million in 2007. Adjusted income from continuing operations for the first half of 2008 was $34.1 million, or $0.57 adjusted diluted earnings per share, compared to income from continuing operations of $24.3 million, or $0.40 diluted earnings per
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| * | | “Adjusted income from continuing operations,” “adjusted diluted earnings per share from continuing operations” and “free cash flow” are non-GAAP financial measures discussed in this release. For additional details, please refer to the sections of this press release entitled “Cash Flow and Balance Sheet” and “Disclosure of Non-GAAP Financial Measures.” |
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Orbital Sciences Corporations 21839 Atlantic Blvd., Dulles, VA 20166s 703-406-5000
Orbital Reports Second Quarter 2008 Financial Results
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share, in the first half of 2007. Orbital generated $31.1 million of free cash flow in the first half of 2008, compared to $21.2 million during the same period in 2007.
The company also announced that, during the second quarter, the U.S. Department of Justice closed its criminal investigation initiated in 2005 into suspected violations of Government contracting laws in connection with certain U.S. Government launch vehicle programs without any charges or other actions against the company or its directors and employees. A related civil lawsuit was also dismissed.
Financial Highlights
During the second quarter of 2008, the company completed the sale of its Transportation Management Systems (TMS) business unit. The gain on the sale of TMS as well as the income from TMS’ operations for all periods are reported as discontinued operations.
Summary financial results for the second quarter were as follows (in millions, except per share data):
| | | | | | | | | |
| | | Second Quarter |
| | | 2008 | | 2007 |
| Revenues | | $ | 301.2 | | | $ | 261.2 | |
| Operating Income | | | 26.5 | | | | 20.9 | |
| Income from Continuing Operations | | | 10.8 | | | | 13.5 | |
| Adjusted Income from Continuing Operations | | | 21.4 | (1) | | | n/a | |
| Gain on Sale of TMS and Income from Discontinued Operations | | | 15.0 | (2) | | | 0.3 | |
| Net Income | | | 25.8 | | | | 13.8 | |
| Diluted Earnings per Share: | | | | | | | | |
| Continuing Operations | | $ | 0.18 | | | $ | 0.22 | |
| Adjusted Continuing Operations | | | 0.35 | (1) | | | n/a | |
| Gain on Sale of TMS and Income from Discontinued Operations | | | 0.25 | (2) | | | 0.01 | |
| Net Income | | | 0.43 | | | | 0.23 | |
| | |
| (1) | | Adjusted to exclude a $10.6 million investment impairment charge in the second quarter of 2008. |
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| (2) | | Includes a $14.8 million after-tax gain, or $0.24 diluted earnings per share, on the sale of the TMS business unit. |
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Orbital Reports Second Quarter 2008 Financial Results
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Summary financial results for the first six months were as follows (in millions, except per share data):
| | | | | | | | | |
| | | First Six Months |
| | | 2008 | | 2007 |
| Revenues | | $ | 584.8 | | | $ | 479.2 | |
| Operating Income | | | 46.5 | | | | 37.4 | |
| Income from Continuing Operations | | | 23.5 | | | | 24.3 | |
| Adjusted Income from Continuing Operations | | | 34.1 | (1) | | | n/a | |
| Gain on Sale of TMS and Income from Discontinued Operations | | | 15.9 | (2) | | | 1.0 | |
| Net Income | | | 39.4 | | | | 25.3 | |
| Diluted Earnings per Share: | | | | | | | | |
| Continuing Operations | | $ | 0.39 | | | $ | 0.40 | |
| Adjusted Continuing Operations | | | 0.57 | (1) | | | n/a | |
| Gain on Sale of TMS and Income from Discontinued Operations | | | 0.26 | (2) | | | 0.01 | |
| Net Income | | | 0.65 | | | | 0.41 | |
| | |
| (1) | | Adjusted to exclude a $10.6 million investment impairment charge in the second quarter of 2008. |
| |
| (2) | | Includes a $14.8 million after-tax gain, or $0.25 diluted earnings per share, on the sale of the TMS business unit. |
Revenues
Revenues by segment for the second quarter were as follows (in millions):
| | | | | | | | | |
| | | Second Quarter | |
| | | 2008 | | | 2007 | |
| Launch Vehicles | | $ | 115.0 | | | $ | 102.2 | |
| Satellites and Space Systems | | | 108.1 | | | | 118.5 | |
| Advanced Space Programs | | | 79.7 | | | | 41.5 | |
| Eliminations | | | (1.6 | ) | | | (1.0 | ) |
| | | | | | | |
| Total Revenues | | $ | 301.2 | | | $ | 261.2 | |
| | | | | | | |
Orbital’s second quarter 2008 revenues were $301.2 million, up 15% compared to second quarter 2007 revenues of $261.2 million, primarily due to significant revenue growth in the company’s advanced space programs and launch vehicles segments. Advanced space programs segment revenues grew $38.2 million, or 92%, driven by significant increases in contract activity on the Orion human spacecraft program for NASA and on national security satellite programs. Launch vehicles segment revenues increased $12.8 million, or 13%, principally due to increased contract activity on missile defense and space launch vehicle programs. In addition, the launch vehicles segment results include $4.0 million of revenues related to the recovery under U.S. Government contracts of certain costs that were incurred in connection with the U.S. Government investigation that was closed in the second quarter of 2008. Satellites and space systems segment revenues decreased $10.4 million, or 9%, primarily due to decreased activity on science and technology satellite contracts, partially offset by an increase in communications satellite revenues.
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Orbital Reports Second Quarter 2008 Financial Results
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Revenues by segment for the first six months were as follows (in millions):
| | | | | | | | | |
| | | First Six Months | |
| | | 2008 | | | 2007 | |
| Launch Vehicles | | $ | 220.3 | | | $ | 190.4 | |
| Satellites and Space Systems | | | 214.5 | | | | 222.8 | |
| Advanced Space Programs | | | 152.3 | | | | 67.8 | |
| Eliminations | | | (2.3 | ) | | | (1.8 | ) |
| | | | | | | |
| Total Revenues | | $ | 584.8 | | | $ | 479.2 | |
| | | | | | | |
For the first half of 2008, Orbital reported $584.8 million in revenues, up 22% over the same period last year, primarily due to significant revenue growth in the company’s advanced space programs and launch vehicles segments. Advanced space programs segment revenues increased $84.5 million, or 125%, due to significant increases in contract activity on the Orion program and national security satellite programs. Launch vehicles segment revenues increased $29.9 million, or 16%, principally due to increased contract activity on missile defense and space launch vehicle programs, and revenues related to the closure of the U.S. Government investigation discussed above. Satellite and space systems segment revenues declined $8.3 million, or 4%, primarily due to decreased activity on science and technology contracts, partially offset by an increase in communications satellite revenues.
Operating Income
Operating income by segment for the second quarter was as follows (in millions):
| | | | | | | | | |
| | | Second Quarter | |
| | | 2008 | | | 2007 | |
| Launch Vehicles | | $ | 13.4 | | | $ | 10.5 | |
| Satellites and Space Systems | | | 7.6 | | | | 7.6 | |
| Advanced Space Programs | | | 5.7 | | | | 3.1 | |
| Corporate and Other | | | (0.2 | ) | | | (0.3 | ) |
| | | | | | | |
| Total Operating Income | | $ | 26.5 | | | $ | 20.9 | |
| | | | | | | |
Orbital reported operating income of $26.5 million in the second quarter of 2008, up 27% compared to operating income of $20.9 million in the second quarter of 2007, due to higher operating income in the advanced space programs and launch vehicles segments. Advanced space programs segment operating income increased $2.6 million, or 80%, primarily due to increased contract activity on the Orion program. Launch vehicles segment operating income increased $2.9 million, or 27%, primarily due to increased contract activity on missile defense programs and the $4.0 million favorable profit adjustment recorded in connection with the closure of the U.S. Government investigation discussed above. The operating income improvements in the launch vehicles segment were partially offset by increased research and development expenses discussed below and by a decrease in space launch vehicle operating income due to cost increases on Pegasus contracts in the second quarter of 2008. Satellites and space systems segment operating income was unchanged at $7.6 million despite the decline in segment revenues, primarily
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Orbital Reports Second Quarter 2008 Financial Results
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due to higher operating profit margins from communications satellite contracts and a favorable $1.1 million adjustment recorded in the second quarter of 2008 pertaining to the settlement of a contract dispute.
The company’s research and development expenses totaled $10.2 million in the second quarter of 2008, a $6.3 million, or 162%, increase compared to the second quarter of 2007, that was primarily driven by activity in the Taurus II launch vehicle development program. Certain of the company’s research and development expenses are recoverable under U.S. Government contracts. In the second quarter of 2008, discretionary research and development expenses incurred in excess of amounts recovered under U.S. Government contracts resulted in a $1.7 million reduction in operating income in the launch vehicles segment. Operating income in the launch vehicles segment before these unrecovered research and development expenses was $15.1 million* in the second quarter of 2008, an increase of $4.6 million, or 44%, compared to the second quarter of 2007.
Operating income by segment for the first six months was as follows (in millions):
| | | | | | | | | |
| | | First Six Months | |
| | | 2008 | | | 2007 | |
| Launch Vehicles | | $ | 21.0 | | | $ | 18.4 | |
| Satellites and Space Systems | | | 15.5 | | | | 14.4 | |
| Advanced Space Programs | | | 10.6 | | | | 5.3 | |
| Corporate and Other | | | (0.6 | ) | | | (0.7 | ) |
| | | | | | | |
| Total Operating Income | | $ | 46.5 | | | $ | 37.4 | |
| | | | | | | |
Orbital reported operating income of $46.5 million in the first half of 2008, up 24% compared to operating income of $37.4 million in the first half of 2007, due to higher operating income in the advanced space programs and launch vehicles segments. Advanced space programs segment operating income increased $5.3 million, or 100%, primarily due to increased contract activity on the Orion program. Launch vehicles segment operating income increased $2.6 million, or 14%, primarily due to increased contract activity on missile defense programs and the $4.0 million favorable profit adjustment recorded in connection with the closure of the U.S. Government investigation discussed above, offset partially by increased research and development expenses attributable to the Taurus II launch vehicle development program. Launch vehicles segment operating income for the first half of 2008 is net of $3.9 million of discretionary research and development expenses incurred in excess of amounts recovered under U.S. Government contracts. Satellites and space systems segment operating income increased $1.1 million, or 7%, driven by improved results from communications satellite contracts and a favorable $1.1 million adjustment recorded in the second quarter of 2008 pertaining to the settlement of a contract dispute.
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| * | | This is a non-GAAP financial measure calculated by adding back the $1.7 million reduction attributable to the unrecovered research and development expense to launch vehicles segment reported operating income of $13.4 million. Management believes the presentation of launch vehicles segment operating income without the effect of the unrecovered research and development expenses provides a more meaningful perspective on the actual operating results for the segment. |
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Orbital Reports Second Quarter 2008 Financial Results
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Net Income
Net income for the second quarter of 2008 was $25.8 million, or $0.43 diluted earnings per share, up from $13.8 million, or $0.23 diluted earnings per share, for the second quarter of 2007. Net income for the second quarter of 2008 included a $10.6 million charge to record the impairment of certain investments in auction rate securities. The income tax provision in the second quarter 2008 included $4.9 million of certain non-recurring income tax benefits primarily related to the TMS business unit that was sold in the second quarter of 2008. Net income for the second quarter of 2008 included income from discontinued operations of $15.0 million, or $0.25 per diluted share, which consisted primarily of a $14.8 million after-tax gain on the sale of the company’s TMS business unit. Diluted weighted-average shares outstanding decreased to 60.6 million in the second quarter of 2008 compared to 61.3 million in the second quarter of 2007, mainly due to share repurchases made by the company.
Net income for the first half of 2008, including income from discontinued operations, was $39.4 million, or $0.65 diluted earnings per share, up from $25.3 million, or $0.41 diluted earnings per share, for the first half of 2007.
Cash Flow and Balance Sheet
The company reported free cash flow of $13.3 million for the second quarter of 2008. Orbital’s unrestricted cash balance was $303.6 million as of June 30, 2008. The company’s cash flow was as follows (in millions):
| | | | | | | | | |
| | | 2008 | |
| | | Second | | | First | |
| | | Quarter | | | Six Months | |
| Net Cash Provided by Operating Activities | | $ | 18.4 | | | $ | 42.9 | |
| Capital Expenditures | | | (5.1 | ) | | | (11.8 | ) |
| | | | | | | |
| Free Cash Flow | | | 13.3 | | | | 31.1 | |
| Net Proceeds from Sale of TMS Business Unit | | | 39.9 | | | | 39.9 | |
| Repurchase of Common Stock | | | (3.4 | ) | | | (15.1 | ) |
| Proceeds from Issuance of Common Stock and Other | | | 9.5 | | | | 11.9 | |
| | | | | | | |
| Net Increase in Cash | | | 59.3 | | | | 67.8 | |
| Beginning Cash Balance | | | 244.3 | | | | 235.8 | |
| | | | | | | |
| Ending Cash Balance | | $ | 303.6 | | | $ | 303.6 | |
| | | | | | | |
Summary balance sheet data as of June 30, 2008 was as follows (in millions):
| | | | | | | | | |
Assets
| Liabilities and Equity |
| Cash | | $ | 303.6 | | Current Liabilities | | $ | 233.2 |
| Other Current Assets | | | 283.8 | | Long-Term Debt and Other | | | 150.1 |
| Non-Current Assets | | | 269.5 | | Stockholders’ Equity | | | 473.6 |
| | | | | | | | |
| Total Assets | | $ | 856.9 | | Total Liabilities and Equity | | $ | 856.9 |
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Orbital Reports Second Quarter 2008 Financial Results
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New Business Highlights
During the second quarter of 2008, Orbital received approximately $230 million in new firm contract bookings and $145 million in new option contract bookings. In addition, the company received approximately $50 million of option exercises under existing contracts. As of June 30, 2008, the company’s firm contract backlog was approximately $2.1 billion, and its total backlog (including options, indefinite-quantity contracts and undefinitized orders) was approximately $4.2 billion.
Operational Highlights
In the second quarter of 2008, Orbital carried out three major space missions and delivered two launch vehicles for operational missions to be carried out in the future. In April, Orbital’s Pegasusspace launch vehicle successfully launched a U.S. Air Force satellite into low Earth-orbit, marking the 25thconsecutive successful launch of Pegasus. Also in the second quarter, Orbital successfully launched a medium-range air-launched target rocket in support of a U.S. Missile Defense Agency test over the Pacific Ocean and supported the deployment of six company-built space payloads for a commercial customer. In addition to these operational missions, Orbital delivered a Coyote supersonic target vehicle and began final launch preparations for a Minotaur II target vehicle, both for upcoming missions.
In the second half of 2008, Orbital expects to carry out approximately 15 space missions and missile launches. Included in this total are the delivery and launch of three commercial communications satellites, two space launch vehicle missions with Pegasus and Minotaur rockets, the launch of an Orbital Boost Vehicle (OBV) missile interceptor, the deployment of one scientific satellite for NASA, and the launches of numerous long-, medium- and short-range target vehicles. Orbital also expects to deliver several other launch vehicles and space systems for future missions, including major elements of the first flight test unit for NASA’s Orion Launch Abort System and several additional OBV missile defense interceptors.
2008 Financial Guidance
The company updated its financial guidance for full year 2008, reflecting the sale of its TMS business, the related second quarter 2008 tax benefits and an improved profit outlook, as follows:
| | | | | | | | | |
| Full Year 2008 | | Current | | Previous |
| Revenues (in millions) | | | $1,100 - $1,125 | | | | $1,160 - $1,185 | |
| Operating Income Margin | | | 7.25% - 7.5% | | | | 7.0% - 7.5% | |
Adjusted Diluted Earnings per Share(1) | | | $0.93 - $0.97 | | | | $0.84 - $0.89 | |
| Free Cash Flow (in millions) | | | $80 - $85 | | | | $80 - $85 | |
| | |
| (1) | | Adjusted diluted earnings per share from continuing operations exclude a $10.6 million investment impairment charge. |
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Orbital Reports Second Quarter 2008 Financial Results
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Disclosure of Non-GAAP Financial Measures
Free cash flow is defined as GAAP (Generally Accepted Accounting Principles) net cash provided by operating activities (the most directly comparable GAAP financial measure) less capital expenditures for property, plant and equipment. A quantitative reconciliation of free cash flow to net cash provided by operating activities is included above in the section entitled “Cash Flow and Balance Sheet.” Management believes that the company’s presentation of free cash flow is useful because it provides investors with an important perspective on the company’s liquidity, financial flexibility and ability to fund operations and service debt. Orbital does not intend for this non-GAAP financial measure to be considered in isolation or as a substitute for the related GAAP measure. Other companies may define this measure differently.
Adjusted income from continuing operations for 2008 is defined as GAAP income from continuing operations (the most directly comparable GAAP financial measure) adjusted to exclude an investment impairment charge. Adjusted diluted earnings per share from continuing operations is equal to adjusted income from continuing operations divided by diluted shares. These measures are provided so investors can more easily compare 2008 results to 2007 results. The reconciliation of these financial measures is as follows (in millions, except per share data):
| | | | | | | | | |
| | | Quarter Ended | | | Six Months Ended | |
| | | June 30, 2008 | | | June 30, 2008 | |
| Reported Income from Continuing Operations | | $ | 10.8 | | | $ | 23.5 | |
| Add Investment Impairment Charge | | | 10.6 | | | | 10.6 | |
| | | | | | | |
| Adjusted Income from Continuing Operations | | $ | 21.4 | | | $ | 34.1 | |
| | | | | | | |
| Adjusted Diluted Earnings Per Share from Continuing Operations | | $ | 0.35 | | | $ | 0.57 | |
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About Orbital
Orbital develops and manufactures small rockets and space systems for commercial, military and civil government customers. The company’s primary products are satellites and launch vehicles, including low-Earth orbit, geosynchronous-Earth orbit and planetary spacecraft for communications, remote sensing, scientific and defense missions; human-rated space systems for Earth-orbit, lunar and other missions; ground- and air-launched rockets that deliver satellites into orbit; and missile defense systems that are used as interceptor and target vehicles. Orbital also provides satellite subsystems and space-related technical services to government agencies and laboratories.
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Orbital Reports Second Quarter 2008 Financial Results
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“Safe Harbor” Statement Under the Private Securities Litigation Reform Act of 1995
Certain statements in this press release are forward-looking in nature or “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks, trends and uncertainties that could cause the actual results or performance of the company to be materially different from the forward-looking statement. Uncertainty surrounding factors such as continued government support and funding for key space and defense programs, new product development programs, product performance and market acceptance of products and technologies, as well as other risk factors and business considerations described in the company’s SEC filings, including its annual report on Form 10-K, could impact Orbital’s actual financial and operational results. Orbital assumes no obligation to update the information contained in this press release.
A transcript of the earnings teleconference call will be available on Orbital’s website at http://www.orbital.com/Investor.
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Orbital Reports Second Quarter 2008 Financial Results
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ORBITAL SCIENCES CORPORATION
Condensed Consolidated Income Statements
(in thousands, except per share data)
| | | | | | | | | |
| | | Second Quarter | |
| | | 2008 | | | 2007 | |
| Revenues | | $ | 301,223 | | | $ | 261,214 | |
| Cost of revenues | | | 242,789 | | | | 217,278 | |
| Research and development expenses | | | 10,202 | | | | 3,944 | |
| Selling, general and administrative expenses | | | 21,745 | | | | 19,074 | |
| | | | | | | |
Income from operations | | | 26,487 | | | | 20,918 | |
| Investment impairment charge | | | (10,600 | ) | | | — | |
| Interest income and other | | | 1,452 | | | | 3,064 | |
| Interest expense | | | (1,098 | ) | | | (1,117 | ) |
| | | | | | | |
| Income before income taxes | | | 16,241 | | | | 22,865 | |
| Income taxes | | | (5,459 | ) | | | (9,380 | ) |
| | | | | | | |
Income from continuing operations | | | 10,782 | | | | 13,485 | |
| Discontinued operations, net of taxes*: | | | | | | | | |
| Income from operations | | | 169 | | | | 345 | |
| Gain on sale of business | | | 14,800 | | | | — | |
| | | | | | | |
| Income from discontinued operations, net of taxes | | | 14,969 | | | | 345 | |
| | | | | | | |
Net income | | $ | 25,751 | | | $ | 13,830 | |
| | | | | | | |
| | | | | | | | | |
Basic income per share: | | | | | | | | |
| Continuing operations | | $ | 0.18 | | | $ | 0.23 | |
| Discontinued operations | | | 0.26 | | | | — | |
| | | | | | | |
| Net income | | $ | 0.44 | | | $ | 0.23 | |
| | | | | | | |
| | | | | | | | | |
Diluted income per share: | | | | | | | | |
| Continuing operations | | $ | 0.18 | | | $ | 0.22 | |
| Discontinued operations | | | 0.25 | | | | 0.01 | |
| | | | | | | |
| Net income | | $ | 0.43 | | | $ | 0.23 | |
| | | | | | | |
| | | | | | | | | |
| Shares used in computing basic income per share | | | 58,656 | | | | 59,479 | |
| Shares used in computing diluted income per share | | | 60,557 | | | | 61,296 | |
| | |
| * | | Certain amounts in the company’s income statements have been reclassified as discontinued operations to give effect to the sale of the TMS business unit that occurred in the second quarter of 2008. |
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Orbital Reports Second Quarter 2008 Financial Results
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ORBITAL SCIENCES CORPORATION
Condensed Consolidated Income Statements
(in thousands, except per share data)
| | | | | | | | | |
| | | First Six Months | |
| | | 2008 | | | 2007 | |
| Revenues | | $ | 584,768 | | | $ | 479,160 | |
| Cost of revenues | | | 477,471 | | | | 397,916 | |
| Research and development expenses | | | 18,406 | | | | 6,172 | |
| Selling, general and administrative expenses | | | 42,413 | | | | 37,655 | |
| | | | | | | |
Income from operations | | | 46,478 | | | | 37,417 | |
| Investment impairment charge | | | (10,600 | ) | | | — | |
| Interest income and other | | | 3,838 | | | | 6,075 | |
| Interest expense | | | (2,143 | ) | | | (2,265 | ) |
| | | | | | | |
| Income before income taxes | | | 37,573 | | | | 41,227 | |
| Income taxes | | | (14,058 | ) | | | (16,914 | ) |
| | | | | | | |
Income from continuing operations | | | 23,515 | | | | 24,313 | |
| Discontinued operations, net of taxes*: | | | | | | | | |
| Income from operations | | | 1,118 | | | | 969 | |
| Gain on sale of business | | | 14,800 | | | | — | |
| | | | | | | |
| Income from discontinued operations, net of taxes | | | 15,918 | | | | 969 | |
| | | | | | | |
Net income | | $ | 39,433 | | | $ | 25,282 | |
| | | | | | | |
| | | | | | | | | |
Basic income per share: | | | | | | | | |
| Continuing operations | | $ | 0.40 | | | $ | 0.41 | |
| Discontinued operations | | | 0.27 | | | | 0.02 | |
| | | | | | | |
| Net income | | $ | 0.67 | | | $ | 0.43 | |
| | | | | | | |
| | | | | | | | | |
Diluted income per share: | | | | | | | | |
| Continuing operations | | $ | 0.39 | | | $ | 0.40 | |
| Discontinued operations | | | 0.26 | | | | 0.01 | |
| | | | | | | |
| Net income | | $ | 0.65 | | | $ | 0.41 | |
| | | | | | | |
| | | | | | | | | |
| Shares used in computing basic income per share | | | 58,575 | | | | 59,286 | |
| Shares used in computing diluted income per share | | | 60,283 | | | | 61,126 | |
| | |
| * | | Certain amounts in the company’s income statements have been reclassified as discontinued operations to give effect to the sale of the TMS business unit that occurred in the second quarter of 2008. |
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Orbital Reports Second Quarter 2008 Financial Results
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ORBITAL SCIENCES CORPORATION
Condensed Consolidated Balance Sheets
(in thousands)
| | | | | | | | | |
| | | June 30, | | | December 31, | |
| | | 2008 | | | 2007 | |
Assets | | | | | | | | |
| Cash | | $ | 303,558 | | | $ | 235,822 | |
| Receivables, net | | | 209,581 | | | | 183,507 | |
| Inventory | | | 25,795 | | | | 26,549 | |
| Deferred income taxes, net | | | 44,212 | | | | 44,420 | |
| Other current assets | | | 4,238 | | | | 5,508 | |
| | | | | | | |
| Total current assets | | | 587,384 | | | | 495,806 | |
| Non-current investments | | | 22,600 | | | | 28,000 | |
| Property, plant and equipment, net | | | 99,672 | | | | 95,713 | |
| Goodwill | | | 55,551 | | | | 55,551 | |
| Deferred income taxes, net | | | 83,828 | | | | 103,792 | |
| Other non-current assets | | | 7,854 | | | | 9,456 | |
| | | | | | | |
| Total Assets | | $ | 856,889 | | | $ | 788,318 | |
| | | | | | | |
| | | | | | | | | |
Liabilities and Stockholders’ Equity | | | | | | | | |
| Accounts payable and accrued expenses | | $ | 175,625 | | | $ | 131,805 | |
| Deferred revenues and customer advances | | | 57,551 | | | | 79,339 | |
| | | | | | | |
| Total current liabilities | | | 233,176 | | | | 211,144 | |
| Long-term debt | | | 143,750 | | | | 143,750 | |
| Other non-current liabilities | | | 6,379 | | | | 325 | |
| Total stockholders’ equity | | | 473,584 | | | | 433,099 | |
| | | | | | | |
| Total Liabilities and Stockholders’ Equity | | $ | 856,889 | | | $ | 788,318 | |
| | | | | | | |
—more—
Orbital Reports Second Quarter 2008 Financial Results
Page 13
ORBITAL SCIENCES CORPORATION
Condensed Consolidated Statements of Cash Flows
(in thousands)
| | | | | | | | | |
| | | June 30, 2008 | |
| | | Second Quarter | | | Six Months | |
| Net income | | $ | 25,751 | | | $ | 39,433 | |
| Gain on sale of business, net of tax | | | (14,800 | ) | | | (14,800 | ) |
| Impairment of non-current investments | | | 10,600 | | | | 10,600 | |
| Depreciation | | | 4,621 | | | | 9,156 | |
| Deferred taxes | | | 3,144 | | | | 10,927 | |
| Changes in assets and liabilities | | | (13,039 | ) | | | (16,656 | ) |
| Other | | | 2,097 | | | | 4,263 | |
| | | | | | | |
Net cash provided by operating activities | | | 18,374 | | | | 42,923 | |
| | | | | | | |
| Capital expenditures | | | (5,119 | ) | | | (11,855 | ) |
| Net proceeds from sale of business | | | 39,882 | | | | 39,882 | |
| Net proceeds from sale of property | | | 2,193 | | | | 2,193 | |
| Other | | | 1,081 | | | | 1,081 | |
| | | | | | | |
Net cash provided by investing activities | | | 38,037 | | | | 31,301 | |
| | | | | | | |
| Repurchase of common stock | | | (3,350 | ) | | | (15,131 | ) |
| Net proceeds from issuance of common stock | | | 4,560 | | | | 6,216 | |
| Other | | | 1,684 | | | | 2,427 | |
| | | | | | | |
Net cash provided by (used in) financing activities | | | 2,894 | | | | (6,488 | ) |
| | | | | | | |
Net increase in cash | | | 59,305 | | | | 67,736 | |
| Cash, beginning of period | | | 244,253 | | | | 235,822 | |
| | | | | | | |
Cash, end of period | | $ | 303,558 | | | $ | 303,558 | |
| | | | | | | |
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