Exhibit 99.1
![]() | ![]() Credit Suisse First Boston Aerospace Finance Conference Paul David Miller—PDM Chairman and Chief Executive Officer 15 May 2001 |
All forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties including the effects of government budgets and requirements, contracting practices of the company's current and prospective customers, economic conditions, competitive environment, program performance, and timing of awards and contracts. Therefore, actual results may differ materially from anticipated results. Additional information concerning factors that could cause actual results to differ materially from those in the forward looking statements is contained in the Company's SEC reports, including but not limited to, the report on Form 10K for the year ended 31 March 2000. All guidance and forward looking statements contained herein reflect guidance provided by the Company in its 5/9/01 earnings teleconference and represents management's expectations thereon. Nothing herein is intended to update or change the guidance provided thereon, unless explicitly so stated.
The New ATK
Leader in Our Battlespace
Evolution of ATK
![]() Spin-off | + | [HERCULES LOGO] Acquisition | + | [Thiokol LOGO] Acquisition | ||||
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ATK is a Much Stronger Company Today
ATK Investment Highlights
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- Solid, long-term business—earnings and revenue visibility
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- Outstanding operating performance—record margins with upside
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- Strong and provenleadership team
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- Strong cash flows—more with Thiokol
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- Leading market positions—number 1 or 2
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- Diverse program and platform participation—land, sea, air and space
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- Excellent product mix—today, tomorrow, and next generation
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- Tactically poised andexecuting
Hallmark: Ability to consistently deliver on commitments
Leadership Driving Performance
Streamlined and Accountable Organization
ATK's Lanes of Excellence
Defense | Aerospace | |||||
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• Long-term contracts | • Target rich environment | • Growth opportunity | • Long-term business | |||
• All caliber capability | • Development pipeline | • Expanded capability | • 100% mission success |
Thiokol Propulsion
![]() | ![]() | Major Programs: • Space Shuttle RSRM • Navy Theater Wide • Standard Missile • LEAP—Missile Defense KV • ERGM—Extended Range • Minuteman • Trident II • CASTOR® Motors • STAR™ Motors | ||||
Space Propulsion | ![]() | Missile Defense | ![]() | |||
Strategic Propulsion | Tactical Propulsion |
The New ATK—Vitals With Thiokol
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- Strong leadership with 10,000 employees
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- Sales of ~ $1.7 billion (full year)
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- Backlog of $4 billion ($6 billion with multi-year contracts and options)
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- EBITDA of approximately $300 million
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- Operating margins of 13%+ "Best in class"
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- Expanded R&D capability
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- Increased capability for growth—missile defense, stand-off capability
First Step in Forming the "Tough" Company
Thiokol Acquisition and Integration Plan
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- Acquisition closed 20 April 2001
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- Day One meeting held with Thiokol leadership
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- Leadership and organization defined
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- Detailed integration plans are completed
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- Majority of integration to be complete in FY02
The Next Three Years
Commitment to Grow Average Annual EPS by 15% from FY02 to FY04
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- Growth—Continue top-line organic growth in mid single digits
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- Margins—Continue margin improvement—Another 1 to 2%
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- Cash Flow—Continue strong cash flow performance for:
Future Value Drivers
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- Leadership
— Debt Repayment
— Strategic acquisitions in our lanes
Achievable Path To 15% Average Annual EPS Growth
Growth—DoD Strategic Initiatives
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![]() | Precision and Extended Range Capability | ![]() | ||
Army Transformation Initiatives | ![]() | Missile Defense Land & Sea |
ATK—Positioned to Support Future Requirements
Margins—Additional Upside
Leadership Incentivized for Outstanding Performance
Cash Flow Deployment—Thiokol Adds Significant Capacity
Proven History of Rapid Deleveraging
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- Assumes combined ATK/Thiokol EBITDA currently expected for FY02 (as provided in 5/9/01 earnings teleconference). Debt level reflects total debt as of acquisition closed on 4/1/01.
$100M of Deleverage Adds 33-34 Cents to EPS
ATK Outlook and Guidance
| FY01 | FY02E | FY03E | |||
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Sales | $1,142M | $1,625-1,650M | $1,725-1,750M | |||
EBIT% | 11.9% | 13-14% | 13.5-14% | |||
EBITDA | $181M | ~ $300M | ~ $320M | |||
EPS | $4.80 | $5.30-5.35 | $6.05-6.20 |
Guidance estimates as provided in 5/9/01 earnings teleconference and webcast
ATK committed to continued double digit EPS growth
Summary—ATK "Is About"
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- Strong Leadership
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- Solid, long-term business with upside
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- Outstanding operating performance
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- Generating strong cash flow
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- Double digit annual EPS growth
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- The New ATK—tactically poised andexecuting
Outlook for ATK is Outstanding
ATK Will Continue to Deliver on it's Commitments