Exhibit 99.1
ALLIANT TECHSYSTEMS INC.
SELECTED FINANCIAL DATA
(Unaudited)
|
| Years Ended March 31 |
| |||||||||||||
(Amounts in thousands except per share data) |
| 2009 |
| 2008 |
| 2007 |
| 2006 |
| 2005 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Results of Operations |
|
|
|
|
|
|
|
|
|
|
| |||||
Sales |
| $ | 4,583,224 |
| $ | 4,171,725 |
| $ | 3,565,072 |
| $ | 3,216,142 |
| $ | 2,801,129 |
|
Cost of sales |
| 3,607,312 |
| 3,325,410 |
| 2,878,711 |
| 2,592,842 |
| 2,271,040 |
| |||||
Gross profit |
| 975,912 |
| 846,315 |
| 686,361 |
| 623,300 |
| 530,089 |
| |||||
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
| |||||
Research and development |
| 81,529 |
| 68,333 |
| 61,533 |
| 51,506 |
| 39,117 |
| |||||
Selling |
| 161,805 |
| 131,068 |
| 99,687 |
| 85,123 |
| 68,811 |
| |||||
General and administrative |
| 239,621 |
| 216,386 |
| 185,413 |
| 159,522 |
| 137,169 |
| |||||
Goodwill impairment (4) |
| 108,500 |
| — |
| — |
| — |
| — |
| |||||
Income before interest, income taxes, and noncontrolling interest |
| 384,457 |
| 430,528 |
| 339,728 |
| 327,149 |
| 284,992 |
| |||||
Interest expense, net (1) |
| (86,408 | ) | (102,473 | ) | (91,651 | ) | (111,202 | ) | (73,729 | ) | |||||
Income before income taxes and noncontrolling interest |
| 298,049 |
| 328,055 |
| 248,077 |
| 215,947 |
| 211,263 |
| |||||
Income tax provision |
| 157,096 |
| 118,678 |
| 73,530 |
| 68,607 |
| 62,838 |
| |||||
Income before noncontrolling interest |
| 140,953 |
| 209,377 |
| 174,548 |
| 147,340 |
| 148,425 |
| |||||
Less net income attributable to noncontrolling interest |
| 187 |
| 376 |
| 451 |
| 404 |
| 451 |
| |||||
Net income attributable to Alliant Techsystems Inc. |
| $ | 140,766 |
| $ | 209,001 |
| $ | 174,097 |
| $ | 146,936 |
| $ | 147,974 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Basic shares |
| 32,730 |
| 32,924 |
| 33,885 |
| 36,730 |
| 37,576 |
| |||||
Diluted shares |
| 34,013 |
| 35,208 |
| 34,591 |
| 37,402 |
| 38,145 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Alliant Techsystems Inc.’s earnings per common share outstanding: |
|
|
|
|
|
|
|
|
|
|
| |||||
Basic |
| $ | 4.30 |
| $ | 6.35 |
| $ | 5.14 |
| $ | 4.00 |
| $ | 3.94 |
|
Diluted |
| $ | 4.14 |
| $ | 5.94 |
| $ | 5.03 |
| $ | 3.93 |
| $ | 3.88 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Financial Position |
|
|
|
|
|
|
|
|
|
|
| |||||
Net current assets |
| $ | 573,434 |
| $ | 617,029 |
| $ | 525,746 |
| $ | 348,507 |
| $ | 401,674 |
|
Net property, plant, and equipment |
| 540,041 |
| 492,336 |
| 454,748 |
| 453,958 |
| 456,310 |
| |||||
Total assets (3) |
| 3,577,345 |
| 3,196,194 |
| 2,874,682 |
| 2,901,980 |
| 3,015,810 |
| |||||
Long-term debt (including current portion) |
| 1,387,603 |
| 1,364,301 |
| 1,341,974 |
| 1,046,631 |
| 1,043,470 |
| |||||
Total ATK’s stockholders’ equity (2)(3) |
| 665,971 |
| 810,344 |
| 644,131 |
| 675,757 |
| 740,704 |
| |||||
Other Data |
|
|
|
|
|
|
|
|
|
|
| |||||
Depreciation and amortization of intangible assets |
| 85,753 |
| 77,486 |
| 76,152 |
| 78,334 |
| 78,586 |
| |||||
Capital expenditures (5) |
| 111,481 |
| 100,709 |
| 81,086 |
| 65,352 |
| 62,600 |
| |||||
Gross margin (gross profit as a percentage of sales) |
| 21.3 | % | 20.3 | % | 19.3 | % | 19.4 | % | 18.9 | % |
(1) In fiscal 2006, ATK made a cash tender offer for its outstanding $400 million principal aggregate amount 8.50% Senior Subordinated Notes. Fiscal 2006 interest expense reflects $18.8 million for the premium to extinguish the debt, $7.1 million related to deferred financing costs that were written off, and $6.0 million for termination of the related interest-rate swaps.
(2) In fiscal 2007, ATK adopted the recognition provisions of Statement of Financial Accounting Standards (SFAS) No. 158, Employers’ Accounting for Defined Benefit Pension and Other Postretirement Plans — an amendment of FASB Statements No. 87, 88, 106 and 132(R) (“SFAS No. 158”), which required recognition of the funded status of defined benefit pension and other postretirement plans, with a corresponding after-tax adjustment to accumulated other comprehensive loss. The adoption of SFAS No. 158 resulted in a net $368.8 million decrease in total stockholders’ equity. See Note 10 to the consolidated financial statements in the Annual Report on Form 10-K for the fiscal year ended March 31, 2009.
(3) In fiscal 2008, ATK adopted the measurement provisions of SFAS No. 158 and remeasured its defined benefit pension and other postretirement plan assets and benefit obligations. The after-tax cumulative effect changes of this adoption included a net decrease in total stockholders’ equity of $38.6 million and an increase of $30.7 million in total assets. See Note 10 to the consolidated financial statements in the Annual Report on Form 10-K for the fiscal year ended March 31, 2009.
(4) As part of ATK’s annual goodwill impairment testing, ATK recorded a goodwill impairment charge of $108.5 million in fiscal 2009. See Note 7 to the consolidated financial statements in the Annual Report on Form 10-K for the fiscal year ended March 31, 2009.
(5) Capital expenditures are shown net of capital expenditures included in accounts payable and financed through operating leases.
ALLIANT TECHSYSTEMS INC.
CONSOLIDATED INCOME STATEMENTS
(Unaudited)
|
| Years ended March 31 |
| ||||
(Amounts in thousands except per share data) |
| 2009 |
| 2008 |
| ||
|
|
|
|
|
| ||
Sales |
| $ | 4,583,224 |
| $ | 4,171,725 |
|
Cost of sales |
| 3,607,312 |
| 3,325,410 |
| ||
Gross profit |
| 975,912 |
| 846,315 |
| ||
Operating expenses: |
|
|
|
|
| ||
Research and development |
| 81,529 |
| 68,333 |
| ||
Selling |
| 161,805 |
| 131,068 |
| ||
General and administrative |
| 239,621 |
| 216,386 |
| ||
Goodwill impairment |
| 108,500 |
| — |
| ||
Income before interest, income taxes, and noncontrolling interest |
| 384,457 |
| 430,528 |
| ||
Interest expense |
| (87,313 | ) | (103,904 | ) | ||
Interest income |
| 905 |
| 1,431 |
| ||
Income before income taxes and noncontrolling interest |
| 298,049 |
| 328,055 |
| ||
Income tax provision |
| 157,096 |
| 118,678 |
| ||
Income before noncontrolling interest |
| 140,953 |
| 209,377 |
| ||
Less net income attributable to noncontrolling interest |
| 187 |
| 376 |
| ||
Net income attributable to Alliant Techsystems Inc. |
| $ | 140,766 |
| $ | 209,001 |
|
|
|
|
|
|
| ||
Alliant Techsystems Inc.’s earnings per common share: |
|
|
|
|
| ||
Basic |
| $ | 4.30 |
| $ | 6.35 |
|
Diluted |
| $ | 4.14 |
| $ | 5.94 |
|
|
|
|
|
|
| ||
Alliant Techsystems Inc.’s weighted average number of common shares outstannding |
|
|
|
|
| ||
Basic |
| 32,730 |
| 32,924 |
| ||
Diluted |
| 34,013 |
| 35,208 |
|
ALLIANT TECHSYSTEMS INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
|
| March 31 |
| ||||
(In thousands except share data) |
| 2009 |
| 2008 |
| ||
Assets |
|
|
|
|
| ||
Current assets: |
|
|
|
|
| ||
Cash and cash equivalents |
| $ | 336,700 |
| $ | 119,773 |
|
Net receivables |
| 899,543 |
| 798,468 |
| ||
Net inventories |
| 238,600 |
| 205,825 |
| ||
Income tax receivable |
| 34,835 |
| — |
| ||
Deferred income tax assets |
| 29,223 |
| 88,282 |
| ||
Other current assets |
| 39,843 |
| 35,568 |
| ||
Total current assets |
| 1,578,744 |
| 1,247,916 |
| ||
Net property, plant, and equipment |
| 540,041 |
| 492,336 |
| ||
Goodwill |
| 1,195,986 |
| 1,236,196 |
| ||
Prepaid and intangible pension assets |
| — |
| 25,280 |
| ||
Deferred income tax assets |
| 69,582 |
| — |
| ||
Deferred charges and other non-current assets |
| 192,992 |
| 194,466 |
| ||
Total assets |
| $ | 3,577,345 |
| $ | 3,196,194 |
|
Liabilities and Stockholders’ Equity |
|
|
|
|
| ||
Current liabilities: |
|
|
|
|
| ||
Cash overdrafts |
| $ | — |
| $ | — |
|
Current portion of long-term debt |
| 289,859 |
| — |
| ||
Accounts payable |
| 294,971 |
| 215,755 |
| ||
Contract advances and allowances |
| 86,080 |
| 81,624 |
| ||
Accrued compensation |
| 168,059 |
| 147,287 |
| ||
Accrued income taxes |
| — |
| 41,681 |
| ||
Other accrued liabilities |
| 166,341 |
| 144,540 |
| ||
Total current liabilities |
| 1,005,310 |
| 630,887 |
| ||
Long-term debt (non-convertible) |
| 1,097,744 |
| 1,364,301 |
| ||
Deferred income tax liabilities |
| — |
| 59,780 |
| ||
Postretirement and postemployment benefits liabilities |
| 121,689 |
| 138,378 |
| ||
Accrued pension liability |
| 552,671 |
| 84,267 |
| ||
Other long-term liabilities |
| 125,362 |
| 99,827 |
| ||
Total liabilities |
| 2,902,776 |
| 2,377,440 |
| ||
Contingencies |
|
|
|
|
| ||
Common stock - $.01 par value Authorized - 90,000,000 shares Issued and outstanding 32,783,496 shares at March 31, 2009 and 32,795,800 at March 31, 2008 |
| 328 |
| 328 |
| ||
Additional paid-in-capital |
| 574,674 |
| 573,321 |
| ||
Retained earnings |
| 1,420,462 |
| 1,279,696 |
| ||
Unearned compensation |
| (651,652 | ) | (376,636 | ) | ||
Accumulated other comprehensive loss |
| — |
| — |
| ||
Common stock in treasury, at cost, 8,771,565 shares held at March 31, 2009 and 8,759,261 at March 31, 2008 |
| (677,841 | ) | (666,365 | ) | ||
Total ATK’s stockholders’ equity |
| 665,971 |
| 810,344 |
| ||
Noncontrolling interest |
| 8,598 |
| 8,411 |
| ||
Total equity |
| 674,569 |
| 818,755 |
| ||
Total liabilities and stockholders’ equity |
| $ | 3,577,345 |
| $ | 3,196,194 |
|
ALLIANT TECHSYSTEMS INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
|
| Years ended March 31 |
| ||||
(In thousands) |
| 2009 |
| 2008 |
| ||
Operating activities |
|
|
|
|
| ||
Net income |
| $ | 140,953 |
| $ | 209,377 |
|
Adjustments to net income to arrive at cash provided by operating activities: |
|
|
|
|
| ||
Depreciation |
| 80,137 |
| 71,511 |
| ||
Amortization of intangible assets |
| 5,616 |
| 5,975 |
| ||
Amortization of debt discount |
| 23,921 |
| 22,326 |
| ||
Amortization of deferred financing costs |
| 2,857 |
| 3,851 |
| ||
Impairment of goodwill |
| 108,500 |
| — |
| ||
Write-off of debt issuance costs associated with convertible notes |
| — |
| 5,600 |
| ||
Write-off of acquisition related costs |
| — |
| 6,567 |
| ||
Deferred income taxes |
| 108,353 |
| (21,054 | ) | ||
Loss on disposal of property |
| 9,030 |
| 2,505 |
| ||
Share-based plans expense |
| 18,952 |
| 23,415 |
| ||
Excess tax benefits from share-based plans |
| (3,287 | ) | (9,459 | ) | ||
Changes in assets and liabilities: |
|
|
|
|
| ||
Net receivables |
| (94,239 | ) | (27,508 | ) | ||
Net inventories |
| (15,610 | ) | (33,608 | ) | ||
Accounts payable |
| 64,345 |
| 49,066 |
| ||
Contract advances and allowances |
| 4,456 |
| 720 |
| ||
Accrued compensation |
| 15,312 |
| (1,143 | ) | ||
Accrued income taxes |
| (70,019 | ) | 48,469 |
| ||
Pension and other postretirement benefits |
| 23,306 |
| 33,865 |
| ||
Other assets and liabilities |
| 2,403 |
| (7,725 | ) | ||
Cash provided by operating activities |
| 424,987 |
| 382,751 |
| ||
Investing activities |
|
|
|
|
| ||
Capital expenditures |
| (111,481 | ) | (100,709 | ) | ||
Acquisition of business, net of cash acquired |
| (75,615 | ) | (103,685 | ) | ||
Proceeds from the disposition of property, plant, and equipment |
| 569 |
| 362 |
| ||
Cash used for investing activities |
| (186,527 | ) | (204,032 | ) | ||
Financing activities |
|
|
|
|
| ||
Payments made to extinguish debt |
| (618 | ) | — |
| ||
Payments made for debt issue costs |
| (5 | ) | (740 | ) | ||
Net purchase of treasury shares |
| (31,609 | ) | (100,068 | ) | ||
Proceeds from employee stock compensation plans |
| 7,412 |
| 16,310 |
| ||
Excess tax benefits from share-based plans |
| 3,287 |
| 9,459 |
| ||
Cash used for financing activities |
| (21,533 | ) | (75,039 | ) | ||
Increase in cash and cash equivalents |
| 216,927 |
| 103,680 |
| ||
Cash and cash equivalents - beginning of period |
| 119,773 |
| 16,093 |
| ||
Cash and cash equivalents - end of period |
| $ | 336,700 |
| $ | 119,773 |
|
ALLIANT TECHSYSTEMS INC.
QUARTERLY FINANCIAL DATA
(Unaudited)
|
| QUARTER |
| QUARTER |
| QUARTER |
| QUARTER |
| SIX |
| NINE |
| ||||||
|
| June 29, |
| September 28, |
| December 28, |
| March 31, |
| September 28, |
| December 28, |
| ||||||
(Amounts in thousands except per share data) |
| 2008 |
| 2008 |
| 2008 |
| 2009 |
| 2008 |
| 2008 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Sales |
| $ | 1,124,865 |
| $ | 1,091,951 |
| $ | 1,109,450 |
| $ | 1,256,958 |
| $ | 2,216,816 |
| $ | 3,326,266 |
|
Cost of sales |
| 905,593 |
| 851,720 |
| 879,866 |
| 970,134 |
| 1,757,313 |
| 2,637,179 |
| ||||||
Gross profit |
| 219,272 |
| 240,231 |
| 229,584 |
| 286,824 |
| 459,503 |
| 689,087 |
| ||||||
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Research and development |
| 21,721 |
| 25,419 |
| 16,105 |
| 18,284 |
| 47,140 |
| 63,245 |
| ||||||
Selling |
| 38,687 |
| 39,121 |
| 39,584 |
| 44,413 |
| 77,808 |
| 117,392 |
| ||||||
General and administrative |
| 50,532 |
| 55,046 |
| 54,611 |
| 79,432 |
| 105,578 |
| 160,189 |
| ||||||
Goodwill impairment |
| — |
| — |
| — |
| 108,500 |
| — |
| — |
| ||||||
Income before interest, income taxes, and noncontrolling interest |
| 108,332 |
| 120,645 |
| 119,284 |
| 36,195 |
| 228,977 |
| 348,261 |
| ||||||
Interest expense |
| (22,550 | ) | (22,728 | ) | (21,551 | ) | (20,484 | ) | (45,277 | ) | (66,828 | ) | ||||||
Interest income |
| 367 |
| 232 |
| 142 |
| 164 |
| 599 |
| 741 |
| ||||||
Income before income taxes and noncontrolling interest |
| 86,149 |
| 98,149 |
| 97,875 |
| 15,875 |
| 184,299 |
| 282,174 |
| ||||||
Income tax provision |
| 31,667 |
| 36,672 |
| 36,528 |
| 52,229 |
| 68,339 |
| 104,867 |
| ||||||
Income before noncontrolling interest |
| 54,482 |
| 61,478 |
| 61,347 |
| (36,355 | ) | 115,960 |
| 177,307 |
| ||||||
Less net income attributable to noncontrolling interest |
| 90 |
| 16 |
| (61 | ) | 142 |
| 106 |
| 45 |
| ||||||
Net income attributable to Alliant Techsystems Inc. |
| $ | 54,392 |
| $ | 61,462 |
| $ | 61,408 |
| $ | (36,497 | ) | $ | 115,854 |
| $ | 177,262 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Alliant Techsystems Inc.’s earnings per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Basic |
| $ | 1.66 |
| $ | 1.87 |
| $ | 1.88 |
| $ | (1.12 | ) | $ | 3.53 |
| $ | 5.41 |
|
Diluted |
| $ | 1.55 |
| $ | 1.77 |
| $ | 1.85 |
| $ | (1.12 | ) | $ | 3.31 |
| $ | 5.17 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Alliant Techsystems Inc.’s weighted average number of common shares outstannding |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Basic |
| 32,826 |
| 32,819 |
| 32,628 |
| 32,647 |
| 32,823 |
| 32,758 |
| ||||||
Diluted |
| 35,184 |
| 34,796 |
| 33,117 |
| 32,647 | * | 34,994 |
| 34,283 |
|
* Excludes 620 shares that are anti-dilutive |
ALLIANT TECHSYSTEMS INC.
QUARTERLY CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
|
| QUARTER |
| SIX |
| NINE |
| |||
|
| June 29, |
| September 28, |
| December 28, |
| |||
|
| 2008 |
| 2008 |
| 2008 |
| |||
Operating activities |
|
|
|
|
|
|
| |||
Net income |
| $ | 54,482 |
| $ | 115,960 |
| $ | 177,307 |
|
Adjustments to net income to arrive at cash provided by operating activities: |
|
|
|
|
|
|
| |||
Depreciation |
| 18,781 |
| 38,148 |
| 57,412 |
| |||
Amortization of intangible assets |
| 1,405 |
| 2,808 |
| 4,213 |
| |||
Amortization of debt discount |
| 5,841 |
| 11,718 |
| 17,751 |
| |||
Amortization of deferred financing costs |
| 728 |
| 1,438 |
| 2,148 |
| |||
Deferred income taxes |
| 59 |
| (18 | ) | 18,431 |
| |||
Loss on disposal of property |
| 58 |
| 314 |
| 331 |
| |||
Share-based plans expense |
| 4,898 |
| 9,718 |
| 14,753 |
| |||
Excess tax benefits from share-based plans |
| (2,392 | ) | (3,151 | ) | (3,235 | ) | |||
Changes in assets and liabilities: |
|
|
|
|
|
|
| |||
Net receivables |
| (147,604 | ) | (147,178 | ) | (121,375 | ) | |||
Net inventories |
| 18,055 |
| 2,934 |
| 295 |
| |||
Accounts payable |
| (12,482 | ) | (10,063 | ) | (16,299 | ) | |||
Contract advances and allowances |
| (8,283 | ) | (6,036 | ) | 1,385 |
| |||
Accrued compensation |
| (54,614 | ) | (32,606 | ) | (24,075 | ) | |||
Accrued income taxes |
| 11,520 |
| (17,004 | ) | (32,052 | ) | |||
Pension and other postretirement benefits |
| 7,565 |
| 13,435 |
| 19,744 |
| |||
Other assets and liabilities |
| 24,470 |
| 51,168 |
| 40,779 |
| |||
Cash (used for) provided by operating activities |
| (77,513 | ) | 31,586 |
| 157,514 |
| |||
Investing activities |
|
|
|
|
|
|
| |||
Capital expenditures |
| (31,579 | ) | (59,000 | ) | (80,352 | ) | |||
Acquisition of business |
| (7,511 | ) | (7,511 | ) | (13,560 | ) | |||
Proceeds from the disposition of property, plant, and equipment |
| 106 |
| 321 |
| 489 |
| |||
Cash used for investing activities |
| (38,984 | ) | (66,190 | ) | (93,423 | ) | |||
Financing activities |
|
|
|
|
|
|
| |||
Change in cash overdrafts |
| 10,598 |
| — |
| — |
| |||
Payments made to extinguish debt |
| — |
| — |
| (10 | ) | |||
Payments made for debt issue costs |
| (5 | ) | (5 | ) | (5 | ) | |||
Net purchase of treasury shares |
| — |
| (31,616 | ) | (31,609 | ) | |||
Proceeds from employee stock compensation plans |
| 3,887 |
| 6,454 |
| 6,617 |
| |||
Excess tax benefits from share-based plans |
| 2,392 |
| 3,151 |
| 3,235 |
| |||
Cash provided by (used for) financing activities |
| 16,872 |
| (22,016 | ) | (21,772 | ) | |||
Decrease (increase) in cash and cash equivalents |
| (99,625 | ) | (56,620 | ) | 42,319 |
| |||
Cash and cash equivalents - beginning of period |
| 119,773 |
| 119,773 |
| 119,773 |
| |||
Cash and cash equivalents - end of period |
| $ | 20,148 |
| $ | 63,153 |
| $ | 162,092 |
|