Exhibit 99.2
ALLIANT TECHSYSTEMS INC.
INDEX TO PRO FORMA CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS
PAGE
----
Pro Forma Condensed Consolidated Balance Sheet -
December 29, 1996 -1-
Notes to Pro Forma Condensed Consolidated Balance Sheet -2-
Pro Forma Condensed Consolidated Statement of Income - Year
ended March 31, 1996 -3-
Notes to Pro Forma Condensed Consolidated Statement of Income -4-
The following unaudited pro forma consolidated financial statements should be
read in conjunction with the unaudited consolidated financial statements and
notes thereto included in Alliant Techsystems Inc.'s (the Company) Quarterly
Report on Form 10-Q for the quarterly period ended December 29, 1996 and the
audited consolidated financial statements and notes thereto included in the
Company's Annual Report on Form 10-K for the year ended March 31, 1996. The pro
forma information may not be indicative of what the financial condition or
results of operations of the Company would have been, had the sale been
completed on the dates assumed, nor is such information necessarily indicative
of the financial condition or results of operations of the Company that may
exist in the future.
No pro forma condensed consolidated statement of income for the nine months
ended December 29, 1996 is presented herein. Such pro forma amounts would be the
same amounts as reflected in the Company's unaudited consolidated statement of
income for the nine months ended December 29, 1996 included in its Quarterly
Report on Form 10-Q for the quarter ended December 29, 1996, as previously filed
with the Commission.
ALLIANT TECHSYSTEMS INC. (ATK)
PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET
December 29, 1996
(Unaudited)
Pro Forma Adjustments
(In millions) ATK ---------------------
Historical I II Pro Forma
---------- -------- -------- ---------
Assets
Current assets:
Cash and cash equivalents $ 38.4 $ 138.0 $ (88.6) $ 87.8
Receivables 188.7 188.7
Net inventory 76.4 76.4
Other current assets 37.5 (10.6) 26.9
---------- -------- -------- ---------
Total current assets 341.0 127.4 (88.6) 379.8
Net property, plant, and equipment 364.2 (3.5) 360.7
Goodwill 124.2 124.2
Other assets 117.7 (70.0) 47.7
---------- -------- -------- ---------
Total assets $ 947.1 $ 53.9 $ (88.6) $ 912.4
========== ======== ======== =========
Liabilities and Stockholders' Equity
Current liabilities:
Notes payable and current long-term debt $ 61.1 $ $ (20.5) $ 40.6
Accounts payable 71.5 71.5
Contract advances and allowances 41.6 41.6
Other current liabilities 127.6 36.3 163.9
---------- -------- -------- ---------
Total current liabilities 301.8 36.3 (20.5) 317.6
Long-term debt 312.5 (68.1) 244.4
Other long-term liabilities 132.5 (1.9) 130.6
---------- -------- -------- ---------
Total liabilities 746.8 34.4 (88.6) 692.6
Stockholders' Equity:
Common stock and additional paid-in-capital 249.7 249.7
Retained earnings (deficit) (14.8) 19.5 4.7
Common stock in treasury and other (34.6) (34.6)
---------- -------- -------- ---------
Total stockholders' equity 200.3 19.5 219.8
---------- -------- -------- ---------
Total liabilities and stockholders' equity $ 947.1 $ 53.9 $ (88.6) $ 912.4
========== ======== ======== =========
See Notes to Pro Forma Condensed Consolidated Balance Sheet
-1-
ALLIANT TECHSYSTEMS INC.
NOTES TO PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET
(Unaudited)
1. Basis of Presentation - The Pro Forma Condensed Consolidated Balance Sheet
assumes that the sale of the Company's Marine Systems Group to Hughes
Aircraft Company (the transaction), as described in Item 2 of this Report on
Form 8-K dated March 13, 1997, occurred on December 29, 1996. It also
assumes that, as a result of the transaction, the Company would prepay a
portion of its Bank Term Loan.
2. Pro Forma Adjustments:
I. Reflects the sale of substantially all of the assets of the Marine
Systems Group to Hughes Aircraft Company and all costs/liabilities
resulting from the sale. Cash consideration received in the sale is
shown net of related transaction costs. The effective tax rate related
to the pre-tax gain on disposal is 35 percent.
II. Reflects the required prepayment of $88.6 million of the Company's
Bank Term Loan. Under the terms of the Bank Term Loan agreement, the
Company's prepayment will reduce each future minimum required payment by
approximately 42 percent.
-2-
ALLIANT TECHSYSTEMS INC. (ATK)
PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF INCOME
Year ended March 31, 1996
(Unaudited)
(In millions except ATK Pro Forma
per share data) Historical Adjustments Pro Forma
----------- ------------ ----------
Sales $1,193.8 $(173.2) $1,020.6
Cost of sales 971.6 (137.3) 834.3
-------- ------- --------
Gross Margin 222.2 (35.9) 186.3
Operating expenses
Research and development 16.6 (2.5) 14.1
Selling 41.4 (8.3) 33.1
General and administrative 49.9 (6.5) 43.4
Restructuring charges (recovery) (3.2) (3.2)
-------- ------- --------
Total operating expenses 104.7 (17.3) 87.4
-------- ------- --------
Income from operations 117.5 (18.6) 98.9
Other income (expense)
Interest expense (45.1) 5.8 (39.3)
Other income (net) 4.0 (1.5) 2.5
-------- ------- --------
Total other expense (41.1) 4.3 (36.8)
Income from continuing operations
before income taxes 76.4 (14.3) 62.1
Income tax provision 16.8 (3.1) 13.7
-------- ------- --------
Income from continuing operations $ 59.6 $ (11.2) $ 48.4
-------- ------- --------
Earnings from continuing operations
per common and common equivalent
share: $ 4.43 $ (0.83) $ 3.61
-------- ------- --------
Average number of common and
common equivalent shares (millions) 13.4 13.4 13.4
-------- ------- --------
See Notes to Pro Forma Condensed Consolidated Statement on Income
-3-
ALLIANT TECHSYSTEMS INC.
NOTES TO PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF INCOME
(Unaudited)
1. Basis of Presentation - The Pro Forma Condensed Consolidated Statement of
Income assumes that the sale of substantially all of the assets of the
Company's Marine Systems Group, as described in Item 2 of this Report on Form
8-K dated March 13, 1997, occurred as of April 1, 1995.
2. Pro Forma Adjustments - Reflect the elimination of the Marine Systems Group's
historical results of operations, as previously included in the Company's
consolidated statement of income. In future filings, the Company will report
Marine Systems Group's results of operations as discontinued operations.
-4-