CALGARY, ALBERTA--(Marketwire - Nov. 11, 2009) - Pengrowth Corporation, administrator of Pengrowth Energy Trust (TSX: PGF.UN) (NYSE: PGH) (collectively, "Pengrowth"), today announced that John B. Zaozirny, formerly Vice Chairman and Lead Independent Director, has been appointed by the Board of Directors as the new Chairman of Pengrowth Corporation. Mr. Zaozirny joined the Corporation's Board of Directors in 1988. Mr. Zaozirny is Vice Chairman of Canaccord Capital Corporation and currently serves as a Director of a number of Canadian and international corporations. Mr. Zaozirny was Minister of Energy and Natural Resources for the Province of Alberta from 1982 to 1986.
About Pengrowth:
Founded in 1988, Pengrowth Energy Trust is the third largest Canadian conventional oil and gas energy trust as measured by production. Pengrowth is traded on both the New York (PGH) and Toronto stock exchanges (PGF.UN), and has a current enterprise value of approximately $4.4 billion (CDN) and more than 600 team members who support its operations and activities. Pengrowth is recognized as a pioneer and leader in the Canadian energy trust sector.
PENGROWTH CORPORATION
Derek Evans, President and Chief Executive Officer
FOR FURTHER INFORMATION PLEASE CONTACT:
Pengrowth
Investor Relations
(403) 233-0224 or Toll Free: 1-888-744-1111
Fax: (403) 693-8889 (FAX)
Pengrowth
Media Inquiries
(403) 213-8684
Fax: (403) 781-9757 (FAX)
www.pengrowth.com
Source: Pengrowth Energy Trust
CALGARY, ALBERTA -- (MARKET WIRE) -- 11/11/09 -- Pengrowth Corporation, administrator of Pengrowth Energy Trust (TSX: PGF.UN) (NYSE: PGH) (collectively, "Pengrowth"), today announced that John B. Zaozirny, formerly Vice Chairman and Lead Independent Director, has been appointed by the Board of Directors as the new Chairman of Pengrowth Corporation. Mr. Zaozirny joined the Corporation's Board of Directors in 1988. Mr. Zaozirny is Vice Chairman of Canaccord Capital Corporation and currently serves as a Director of a number of Canadian and international corporations. Mr. Zaozirny was Minister of Energy and Natural Resources for the Province of Alberta from 1982 to 1986.
About Pengrowth:
Founded in 1988, Pengrowth Energy Trust is the third largest Canadian conventional oil and gas energy trust as measured by production. Pengrowth is traded on both the New York (PGH) and Toronto stock exchanges (PGF.UN), and has a current enterprise value of approximately $4.4 billion (CDN) and more than 600 team members who support its operations and activities. Pengrowth is recognized as a pioneer and leader in the Canadian energy trust sector.
PENGROWTH CORPORATION
Derek Evans, President and Chief Executive Officer
Contacts: Pengrowth Investor Relations (403) 233-0224 or Toll Free: 1-888-744-1111 (403) 693-8889 (FAX) Pengrowth Media Inquiries (403) 213-8684 (403) 781-9757 (FAX) www.pengrowth.com
CALGARY, ALBERTA--(Marketwire - Nov. 11, 2009) - Norex Exploration Services Inc. (TSX: NRX) ("Norex" or the "Company") today announced its 2009 third quarter and nine month operating and financial results.
Third quarter highlights:
- As a result of vigilant cost control, the Company reported significantly improved results in the third quarter of 2009 over the comparable quarter of 2008. Despite a 45% drop in third quarter revenue to $10.9 million, the Company reported improved EBITDA of negative $0.7 million, compared to negative EBITDA of $1.5 million in the third quarter of 2008.
- Operations in Canada and the United States continued to expand geographically during the quarter. The Company's Canadian operations maintained a crew in the Utica shale gas play in Quebec. In the United States, the Company operated a crew in California where there has been a renaissance in oil-directed drilling.
- The Company maintained a strong balance sheet in the quarter and exited September with $2.7 million in cash on hand, $4.3 million in working capital and a manageable debt load.
- Norex was successful in extending the maturities on capital leases due in September and October 2009. The Company expects to extend maturities on additional leases that come due in November 2009 and May 2010.
- On November 9, 2009, the Company announced the renewal of its service contract with WesternGeco, a Schlumberger business segment, for the provision of seismic data acquisition services in the United States.
Consolidated revenue, which includes revenue from procuring third party sub-contractor services, decreased 45% to $10.9 million in the three months ended September 30, 2009 compared to $19.9 million in the three months ended September 30, 2008. Seismic acquisition revenue from services performed directly by Norex decreased 69% in the third quarter of 2009 to $4.3 million compared to $13.6 million in the third quarter of 2008. This decrease was due to reduced customer spending resulting from current economic conditions and weak commodity prices, and pricing pressures for our services as a result of increased competition in our industry.
Consolidated gross profit was $0.1 million, or 0.9% of total revenue for the three months ended September 30, 2009, compared to $0.2 million, or 1.0% of total revenue in the same period of 2008. As a percentage of seismic acquisition revenue, excluding sub-contractor services revenue, consolidated gross profit was 2.2% in the third quarter of 2009 compared to 1.4% for the same period last year. The low gross profit and gross profit percentages in the current quarter reflect competitive pricing pressures for the Company's services in both Canada and the United States and a reduction in activity in the quarter. To combat these issues, the Company aggressively reduced its staffing levels in the first half of the year, implemented salary and wage reductions and took steps to reduce its operating and administrative costs.
Consolidated EBITDA for the third quarter of 2009 was negative $0.7 million ($0.02 per share) compared to negative $1.5 million ($0.04 per share) for the third quarter of 2008. Our results for the third quarter of 2009 highlight the effectiveness of the cost reduction initiatives implemented earlier in 2009. The consolidated net loss was $2.4 million, ($0.04 per diluted share), compared to $3.1 million, ($0.08 per diluted share), in the same quarter of last year.
Year-to-date highlights:
- During the first nine months of 2009, the Company continued to build on its presence in the resource plays in North America and has expanded its geographic diversification. The Company was active in the oil sands of Alberta, the potash industry in Saskatchewan, the Marcellus shale in the northeastern United States, the Bakken oil play in Saskatchewan and North Dakota, California with renewed industry oil exploration and development, and the Utica shale gas play in Quebec.
- Consolidated revenue for the nine month period ended September 30, 2009 was $46.4 million compared to $76.2 million in the same period last year. Seismic acquisition revenue decreased 40% to $31.7 million for the first nine months of 2009 compared to $53.1 million in the first nine months of 2008. Gross profit as a percentage of seismic acquisition revenue decreased to 16.9% for the nine months ended September 30, 2009 compared to 22.3% in the similar period of 2008.
- While persistent low commodity prices and the downturn in the economy continued to plague activity in the industry, EBITDA was $1.9 million ($0.04 per share) in the first nine months of 2009, compared to $7.1 million ($0.18 per share) in the same period of 2008.
- The Company reported a net loss of $3.7 million ($0.08 per diluted share) compared to net earnings of $3,000 ($0.00 per diluted share) in the nine months ended September 30, 2008.
Financial Highlights
Three Months Nine Months
Ended Sept. 30 % Ended Sept. 30 %
($000's, except per (Unaudited) Increase (Unaudited) Increase
share data) 2009 2008 (decrease) 2009 2008 (decrease)
----------------------------------------------------------------------------
Revenue 10,945 19,863 (45) 46,372 76,172 (39)
Seismic acquisition
revenue(4) 4,277 13,645 (69) 31,670 53,065 (40)
Gross Profit (2) 93 197 (53) 5,359 11,830 (55)
EBITDA (1) (723) (1,533) 1,924 7,070 (73)
- Per share ($0.02) ($0.04) $0.04 $0.18 (78)
Trailing 12 months
EBITDA (1) 5,789 12,322 (53)
Net (Loss) Earnings (2,386) (3,091) (3,713) 3
- Per share, basic and
diluted ($0.04) ($0.08) ($0.08) $0.00
Working capital 4,277 (3,205) 4,277 (3,205) 233
Total long term
borrowings (3) 9,272 12,484 9,272 12,484 (26)
Capital expenditures 14 6,454 68 14,611 (99)
Weighted avg. shares
outstanding (000's) 55,317 38,606 46,958 38,603
Shares outstanding,
end of period (000's) 55,317 38,606 55,317 38,606
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Outlook
While low natural gas prices plagued activity in the third quarter of 2009 recent improvements in natural gas and oil prices have had a positive effect on our customers' plans to complete seismic programs in the fourth quarter of 2009 and the first quarter of 2010. In particular, healthy activity levels are expected in the oil sands and the Horn River shale gas play during the upcoming winter. Our United States operation continues to feel the effects of lower industry capital spending and severe price competition. Norex's ability to operate some of the most efficient field crews in the industry, its deployment of state of the art equipment, and the implementation of cost reduction initiatives has partially cushioned the impact of these competitive pressures.
The Company expects sequentially improved activity levels in the fourth quarter of 2009 and the first quarter of 2010 compared to the second and third quarters of 2009. The Company has implemented significant cost cutting measures during the first quarter of 2009; the benefit of which has been evident in subsequent quarters. The Company continues to look for further cost savings but is mindful of maintaining its capacity to fully participate in a recovery expected to begin in 2010.
Notes
(1) "EBITDA" is a financial measure that does not have any standardized meaning prescribed by Canadian generally accepted accounting principles ("GAAP") and may not be comparable to similar measures presented by other companies. EBITDA is a measure of the Company's operating profitability. EBITDA provides an indication of the results generated by the Company's principal business activities prior to how these activities are financed, assets are amortized or how the results are taxed in various jurisdictions. EBITDA is calculated from the Consolidated Statements of (Loss) Earnings and is calculated as net earnings (loss) plus or minus interest expense, income taxes, depreciation and amortization, stock based compensation, gains or losses on disposal of equipment and foreign exchange gains or losses.
(2) "Gross profit" is a financial measure that does not have any standardized meaning prescribed by Canadian generally accepted accounting principles ("GAAP") and may not be comparable to similar measures presented by other companies. Gross profit is provided to assist investors in determining Norex's ability to generate earnings from its field operations and is calculated by subtracting direct field expenses and subcontractor expenses from revenue. These measures do not have any standardized meaning prescribed by GAAP and may not be comparable to similar measures presented by other companies.
(3) Includes long term debt and capital lease obligations, including current portions thereof.
(4) "Seismic acquisition revenue" is revenue generated on services performed directly by Norex. A significant portion of the Company's revenue includes the provision of subcontracted services from which the Company generates a nominal profit. Prior to seismic data acquisition, many customers look to Norex to procure and manage third-party services related to the use of shot hole drilling, ground surveying and line-clearing. The Company is reimbursed for these expenses by its clients, plus an administration fee. In accordance with generally accepted accounting principles, these subcontract revenue and costs are included at their gross amounts in revenue and expenses. Because subcontracted services as a percentage of total revenue will vary from job to job, they may distort the movement of the actual gross margins for the seismic acquisition recording services performed directly by Norex. In order to assist readers to more clearly understand the changes in gross profits for the services directly provided by Norex, and understand the profitability of the seismic data acquisition services provided by Norex, the following table details gross profit as a percentage of seismic acquisition revenue. (note: the nominal administration fee earned on the "flow-through" of subcontracted services has been included in seismic acquisition revenue):
----------------------------------------------------------------------------
Three Months Nine Months
Ended Sept. 30 Ended Sept. 30
($000's) 2009 2008 2009 2008
----------------------------------------------------------------------------
Seismic acquisition revenue (A) 4,277 13,645 31,670 53,065
Subcontractor revenue 6,668 6,218 14,702 23,107
----------------------------------------------------------------------------
Total revenue (B) 10,945 19,863 46,372 76,172
Less:
Direct costs 4,184 13,448 26,311 41,235
Subcontractor costs 6,668 6,218 14,702 23,107
----------------------------------------------------------------------------
Gross Profit (C) 93 197 5,359 11,830
Gross Profit as % of seismic
acquisition rev (C/A) 2.2% 1.4% 16.9% 22.3%
Gross Profit as % of total revenue (C/B) 0.9% 1.0% 11.6% 15.5%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
NOREX EXPLORATION SERVICES INC.
Consolidated Balance Sheets
As at September 30, 2009 and December 31, 2008
(in thousands of dollars) (unaudited)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
September 30 December 31
2009 2008
----------------------------------------------------------------------------
Assets
Current assets:
Cash $ 2,709 $ 3,176
Accounts receivable 12,171 24,812
Prepaid expenses and deposits 916 1,152
Income taxes receivable 2,624 3,092
----------------------------------------------------------------------------
18,420 32,232
Property and equipment 34,462 44,582
Intangible assets 1,068 1,368
----------------------------------------------------------------------------
$ 53,950 $ 78,182
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Liabilities and Shareholders' Equity
Current liabilities:
Operating line of credit $ - $ 5,591
Accounts payable and accrued liabilities 9,855 17,519
Income taxes payable - 954
Current portion of long-term debt 2,340 2,875
Current portion of capital lease obligations 1,948 3,681
----------------------------------------------------------------------------
14,143 30,620
Long-term debt 4,889 7,719
Capital lease obligations 95 420
Future income taxes 2,275 4,623
----------------------------------------------------------------------------
21,402 43,382
Shareholders' equity:
Share capital 27,389 23,358
Contributed surplus 3,167 3,047
Accumulated other comprehensive income 182 2,872
Retained earnings 1,810 5,523
----------------------------------------------------------------------------
32,548 34,800
----------------------------------------------------------------------------
$ 53,950 $ 78,182
----------------------------------------------------------------------------
----------------------------------------------------------------------------
NOREX EXPLORATION SERVICES INC.
Consolidated Statements of (Loss) Earnings and Comprehensive (Loss) Income
For the three and nine months ended September 30, 2009 and 2008
(in thousands of dollars, except per share amounts)
(unaudited)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Three months ended Nine months ended
September 30 September 30
2009 2008 2009 2008
----------------------------------------------------------------------------
Revenue $ 10,945 $ 19,863 $ 46,372 $ 76,172
Operating expenses:
Direct costs 4,184 13,448 26,311 41,235
Subcontractors 6,668 6,218 14,702 23,107
General and administrative
expenses 816 1,730 3,435 4,760
Depreciation and amortization 2,265 2,240 6,973 6,261
Interest expense 137 216 496 674
----------------------------------------------------------------------------
(Loss) earnings before other
items (3,125) (3,989) (5,545) 135
----------------------------------------------------------------------------
Other items:
Loss (gain) on disposal of
equipment 124 14 120 (59)
Stock-based compensation 65 215 120 700
Foreign exchange loss (gain) 94 (743) 421 (1,134)
----------------------------------------------------------------------------
(Loss) earnings before income
taxes (3,408) (3,475) (6,206) 628
----------------------------------------------------------------------------
Income taxes (recovery):
Current (845) (1,857) (20) (222)
Future (177) 1,473 (2,473) 847
----------------------------------------------------------------------------
(1,022) (384) (2,493) 625
----------------------------------------------------------------------------
Net (loss) earnings for the
period (2,386) (3,091) (3,713) 3
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Cumulative translation
adjustment (1,865) 758 (2,690) 633
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Comprehensive (loss) income $ (4,251) $ (2,333) $ (6,403) $ 636
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Net (loss) earnings per
share:
Basic and Diluted $ (0.04) $ (0.08) $ (0.08) $ -
----------------------------------------------------------------------------
----------------------------------------------------------------------------
NOREX EXPLORATION SERVICES INC.
Consolidated Statements of Retained Earnings and Accumulated Other
Comprehensive Income
For the three and nine months ended September 30, 2009 and 2008
(in thousands of dollars)
(unaudited)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Three months ended Nine months ended
September 30 September 30
2009 2008 2009 2008
----------------------------------------------------------------------------
Retained earnings, beginning of
period $ 4,196 $ 16,799 $ 5,523 $ 13,705
Net (loss) earnings for the
period (2,386) (3,091) (3,713) 3
----------------------------------------------------------------------------
Retained earnings, end of
period $ 1,810 $ 13,708 $ 1,810 $ 13,708
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Accumulated other comprehensive
income (loss), beginning of
period $ 2,047 $ (125) $ 2,872 $ -
Cumulative translation adjustment
for the period (1,865) 758 (2,690) 633
----------------------------------------------------------------------------
Accumulated other comprehensive
income, end of period $ 182 $ 633 $ 182 $ 633
----------------------------------------------------------------------------
----------------------------------------------------------------------------
NOREX EXPLORATION SERVICES INC.
Consolidated Statements of Cash Flows
For the three and nine months ended September 30, 2009 and 2008
(in thousands of dollars) (unaudited)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Three months ended Nine months ended
September 30 September 30
2009 2008 2009 2008
----------------------------------------------------------------------------
Cash provided by (used in):
Operations:
Net (loss) earnings for
the period $ (2,386) $ (3,091) $ (3,713) $ 3
Items not involving cash:
Depreciation and
amortization 2,265 2,240 6,973 6,261
Loss (gain) on disposal of
equipment 124 14 120 (59)
Stock-based compensation 65 215 120 700
Unrealized foreign
exchange loss (gain) 92 (724) 479 (1,072)
Future income taxes
(reduction) (177) 1,473 (2,473) 847
----------------------------------------------------------------------------
(17) 127 1,506 6,680
Change in non-cash operating
working capital (338) 1,424 4,820 4,756
----------------------------------------------------------------------------
(355) 1,551 6,326 11,436
Investing:
Acquisition of property
and equipment (14) (6,454) (68) (14,611)
Proceeds on disposal of
equipment 205 100 702 431
Acquisition of intangible
assets - (1,005) - (1,025)
Change in non-cash working
capital - 4,492 - 4,492
----------------------------------------------------------------------------
191 (2,867) 634 (10,713)
Financing:
Change in operating lines
of credit (net) - 569 (5,591) (313)
Repayment of long-term
debt (585) (638) (4,365) (1,703)
Proceeds on long-term debt - 4,500 1,000 7,500
Repayment of capital lease
obligations (572) (1,102) (2,058) (3,412)
Issuance of common shares
- net - 4 3,755 4
----------------------------------------------------------------------------
(1,157) 3,333 (7,259) 2,076
Effect of exchange rate changes
on cash position (130) 143 (168) 143
----------------------------------------------------------------------------
(Decrease) increase in cash (1,451) 2,160 (467) 2,942
Cash, beginning of period 4,160 782 3,176 -
----------------------------------------------------------------------------
Cash, end of period $ 2,709 $ 2,942 $ 2,709 $ 2,942
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Supplemental cash flow
information:
Interest and financing
costs paid $ 134 $ 175 $ 487 $ 656
Taxes paid (383) 478 522 2,633
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Forward-looking Statements
Certain information set forth in this news release, including management's assessment of the Company's future plans and operations, contains forward-looking statements, which are based on the Company's current internal expectations, estimates, projections, assumptions and beliefs, which may prove to be incorrect. Some of the forward-looking statements may be identified by words such as "outlook", "expects", "anticipates", "believes", "projects", "intends", "continues", "estimates", "objective", "ongoing", "may", "will", "should", "might", "plans" and similar expressions. These statements are not guarantees of future performance and undue reliance should not be placed on them. Such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause the Company's actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. The Company provides seismic data acquisition services and is exposed to a number of risks and uncertainties that are common to companies in the same business. These risks and uncertainties include demand for the Company's services which is affected by, among other things, the speculative nature of resource exploration and development activities, changes in commodity prices, general economic, market and business conditions; changes in customer exploitation budgets; competition for capital and skilled personnel and shortages thereof; the competitive nature of the seismic industry; the ability to keep pace with constantly changing technology; uncertainty in various factors in the oil and gas industry, including the ability to comply with current and future health, safety, environmental and other laws; the general risk inherent to seismic data acquisition activities; risks relating to expansion including pressure on operational and technical resources; risks relating to the reliance on key officers, employees and consultants, including an unexpected loss or departure of any one of them; cancellation of work previously awarded to the Company; the possibility of a conflict of interest arising for the directors and officers of Norex who are participants in other sectors of the oil and gas industry; risks relating to having shareholders who are able to exert influence over the affairs of Norex; the possibility of the need for future financing, which may not be available on favourable terms; the risk of not renewing current credit facilities; the volatility of, and lack of liquidity in, the trading market for the shares of Norex; actions by governmental or regulatory authorities including increasing taxes and changes in other regulations; and the occurrence of unexpected events involved in resource exploration including, but not limited to, adverse weather conditions and wind. Adverse weather or field operating conditions can also negatively impact field productivity and, as a result, the Company's overall profitability. Certain jobs awarded to the Company are on a "turnkey" pricing basis where the Company bears the risk of lost productivity, increased input and/or subcontractor costs. As a result, factors reducing field productivity and any in increases in the Company's input costs could have a material affect on the Company's profitability.
The forward-looking information and statements included in this press release are not guarantees of future performance and should not be unduly relied upon. Forward-looking statements are based on current expectations, estimates and projections that involved a number of risks and uncertainties, which could cause actual results to differ materially from those anticipated and described in the forward-looking statements.
The information contained in this press release should not be considered all-inclusive as it excludes changes that may occur in general economic, political and environmental conditions. The Company cautions that actual performance will be affected by a number of factors, many of which are beyond its control. Investors are cautioned against attributing undue certainty to forward-looking statements. The forward-looking information and statements contained in this press release speak only as of the date hereof and, subject to its obligations under applicable law, the Company does not intend, and does not assume any obligation, to update these forward looking statements if conditions or opinions should change.
Norex, and its divisions Conquest Seismic Services and US subsidiary, Conquest Seismic Services, Inc., provide premium 2D, 3D, 4D and 3C land-based seismic data acquisition services in Canada and the United States. Norex is the largest operator of ARAM-ARIES(R) recording equipment in Canada and provides state-of-the-art technology to the North American oil and gas industry. Norex trades on the TSX under the symbol "NRX"
Requests for shareholder information should be directed to the contacts below.
FOR FURTHER INFORMATION PLEASE CONTACT:
Norex Exploration Services Inc.
Mr. Paul Crilly
President and CEO
(403) 216-5929
Norex Exploration Services Inc.
Mr. Graham Reid, CA
VP Finance and CFO
(403) 216-5929
Source: Norex Exploration Services Inc.
MINNEAPOLIS, Nov. 11 /PRNewswire-FirstCall/ -- Alliant Techsystems (NYSE: ATK) today reported that fully diluted earnings per share (EPS) in the second quarter of fiscal year 2010 (FY10), which ended on October 4, 2009, rose 24 percent to $2.19, compared to $1.77(1) in the prior-year quarter. The results were driven by top line sales growth, improved operating margins, a reduced diluted share count, and reduced interest expense, partially offset by increased pension expense. Based on the strength of the company's performance through the first half of the year, ATK is raising its full-year EPS, sales and cash flow forecast.
Sales for the quarter rose 11 percent to $1.2 billion, driven by continued strength in the company's Armament Systems and Mission Systems groups, partially offset by expected lower sales in the company's Space Systems group. Net income in the second quarter was up 18 percent to $73 million. Second quarter margins reached 11.2 percent. Orders in the quarter of $1.1 billion were in line with the company's expectations.
"ATK's second quarter performance was strong. We achieved double-digit sales and earnings growth, improved company-wide margins, and generated significant free cash flow," said John Shroyer, interim CEO, Senior Vice President, and CFO. "I am particularly pleased with the growth of our commercial businesses both in ammunition, aircraft structures and elsewhere across the company. We are well positioned for continued strength in the second half of the year and are raising our full-year guidance."
SUMMARY OF REPORTED RESULTS
The following table presents the company's results for the second quarter of fiscal year 2010, which ended on October 4, 2009 (in thousands).
Sales:
Quarters Ended
--------------
October 4, September 28, $ %
2009 2008 Change Change
------- --------- ------ ------
ATK Armament
Systems $553,969 $422,862 $131,107 31.0%
ATK Mission
Systems 304,392 280,542 23,850 8.5%
ATK Space
Systems 349,603 388,547 (38,944) (10.0)%
------- ------- -------
Total sales $1,207,964 $1,091,951 $116,013 10.6%
========== ========== ========
Six Months Ended
----------------
October 4, September 28, $ %
2009 2008 Change Change
---- ----- ------ ------
ATK Armament
Systems $1,106,384 $864,436 $241,948 28.0%
ATK Mission
Systems 596,943 557,045 39,898 7.2%
ATK Space
Systems 713,771 795,335 (81,564) (10.3)%
------- ------- -------
Total sales $2,417,098 $2,216,816 $200,282 9.0%
========== ========== ========
Income before Interest, Income Taxes, and Noncontrolling Interest (Operating Profit):
Quarters Ended
--------------
October 4, September 28, $ %
2009 2008 Change Change
------ ----- ------ ------
ATK Armament
Systems $67,718 $42,969 $24,749 57.6%
ATK Mission
Systems 32,962 35,785 (2,823) (7.9)%
ATK Space
Systems 38,722 47,982 (9,260) (19.3)%
Corporate (4,528) (6,091) 1,563 25.7%
------ ------ -----
Total operating
profit $134,874 $120,645 $14,229 11.8%
======== ======== =======
Six Months Ended
----------------
October 4, September 28, $ %
2009 2008 Change Change
------- --------- ------ ------
ATK Armament
Systems $128,933 $87,129 $41,804 48.0%
ATK Mission
Systems 66,213 68,619 (2,406) (3.5)%
ATK Space
Systems 79,845 84,224 (4,379) (5.2)%
Corporate (8,745) (10,995) 2,250 20.5%
------ ------- -----
Total operating
profit $266,246 $228,977 $37,269 16.3%
======== ======== =======
SEGMENT RESULTS
ATK operates three principal business groups: Armament Systems; Mission Systems; and Space Systems.
ATK ARMAMENT SYSTEMS
Sales in the second quarter of FY10 increased 31 percent to $554 million, compared to $423 million in the prior-year quarter. Eagle Industries, which is now the Tactical Systems division, contributed $14 million of sales in the quarter. Organic sales increased 28 percent, driven by the company's non-standard ammunition contract for Afghan Security Forces, higher military ammunition sales, higher sales volume in commercial ammunition across all channels (retail, law enforcement and international), and increased facility modernization funds.
Earnings before interest, taxes, and noncontrolling interest (operating profit) in the second quarter rose 58 percent to $68 million, compared to $43 million in the prior-year quarter. The increase was driven by additional sales volume and improved profitability across Armament Systems. Demand remained strong for ATK's commercial ammunition brands and products. The higher operating profit was partially offset by $11 million of non-cash charges primarily due to the early retirement of assets related to the company's TNT production facility, and higher pension expense.
ATK MISSION SYSTEMS
Second quarter sales rose nine percent to $304 million compared to $281 million in the prior-year quarter. The increase reflects higher sales volume in commercial and military aircraft structures, and advanced weapons programs, partially offset by lower sales of special mission aircraft.
Operating profit of $33 million was down slightly from $36 million in the prior-year quarter. The decline was driven by additional investments made on advanced weapons programs, reduced incentive fees on a missile defense program, and higher pension expense, partially offset by higher volumes of commercial and military aircraft structures.
ATK SPACE SYSTEMS
Second quarter sales in the Space Systems group of $350 million were in line with the company's expectations, and down 10 percent from $389 million in the prior-year quarter. The decrease reflects the expected draw down of the Minuteman III program and the termination of the Kinetic Energy Interceptor, partially offset by higher sales in spacecraft structures and components.
Operating profit for the group was $39 million, also in-line with expectations, and down 19 percent from the prior-year quarter. The decrease reflects the draw down of the Minuteman III program and higher pension expense.
CORPORATE AND OTHER
In the second quarter, corporate and other expenses totaled $5.0 million compared to $6.0 million recorded in the prior-year quarter. The share count was 33.1 million, compared to 34.8 million in the prior-year quarter.
OUTLOOK
Based on the continued strong operating performance of the company, and better visibility into the remainder of the year, ATK is raising its full-year sales, EPS and free cash flow guidance. ATK now expects full-year FY10 fully diluted EPS in a range of $8.60 - $8.75, up from previous guidance of $8.45 - $8.60. Full-year sales are now expected to be in a range of $4.825 -$4.875 billion, up from previous expectations of $4.80 - $4.85 billion. The company now expects to generate free cash flow of approximately $150 million, up from previous expectations of $110 - $130 million. The free cash flow expectation includes the impact of the $150 million pension contribution made in the first quarter of FY10 (see reconciliation table for details). The company continues to expect an average share count of approximately 33.5 million, and an effective tax rate for the year of approximately 37 percent. Full-year pension expenses are expected to be approximately $70 million. Capital expenditures in FY10 are anticipated to be approximately $130 million.
Reconciliation of Non-GAAP Financial Measures
Free Cash Flow
Free cash flow is defined as cash provided by operating activities less capital expenditures. ATK management believes free cash flow provides investors with an important perspective on the cash available for debt repayment, share repurchase, and acquisitions after making the capital investments required to support ongoing business operations. ATK management uses free cash flow internally to assess both business performance and overall liquidity.
Projected Year
Ending
March 31, 2010
--------------
Cash provided by operating ~ $280,000
activities
Capital expenditures ~(130,000)
---------
Free cash flow ~ $150,000*
=========
* Includes the impact of the $150 million pension contribution made in
the first quarter of FY10
ATK is a premier aerospace and defense company with more than 18,000 employees in 22 states, Puerto Rico and internationally, and revenues in excess of $4.8 billion. News and information can be found on the Internet at www.atk.com.
Certain information discussed in this press release constitutes forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Although ATK believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be achieved. Forward-looking information is subject to certain risks, trends, and uncertainties that could cause actual results to differ materially from those projected. Among these factors are: assumptions related to the Ares I and Ares V programs for NASA; changes in governmental spending, budgetary policies and product sourcing strategies; the company's competitive environment; risks inherent in the development and manufacture of advanced technology; increases in commodity costs, energy prices, and production costs; the terms and timing of awards and contracts; program performance; program terminations; changes in cost estimates related to relocation of facilities; the outcome of contingencies, including litigation and environmental remediation; actual pension asset returns and assumptions regarding future returns, discount rates and service costs; capital market volatility and corresponding assumptions related to the company's shares outstanding; the availability of capital market financing; changes to accounting standards; changes in tax rules or pronouncements; economic conditions; and the company's capital deployment strategy, including debt repayment, share repurchases, pension funding, mergers and acquisitions and any integration thereof. ATK undertakes no obligation to update any forward-looking statements. For further information on factors that could impact ATK, and statements contained herein, please refer to ATK's most recent Annual Report on Form 10-K and any subsequent quarterly reports on Form 10-Q and current reports on Form 8-K filed with the U.S. Securities and Exchange Commission.
(1) At the beginning of the company's fiscal year on April 1, 2009, ATK retrospectively adopted FSP APB14-1 "Accounting for Convertible Debt Instruments that may be settled is cash upon conversion" (FSP 14-1) and was required to restate certain financial information for all prior periods. The adoption resulted in an increase to non-cash interest expense of $11.718 million ($6.995 million net of tax, or $0.20 diluted EPS) for the quarter ended September 28, 2008. All fiscal 2009 financial amounts included in this press release have been restated to reflect the adoption of FSP 14-1.
Media Contact: Investor Contact:
Bryce Hallowell Jeff Huebschen
Phone: 952-351-3087 Phone: 952-351-2929
E-mail: bryce.hallowell@atk.com E-mail: jeff.huebschen@atk.com
ALLIANT TECHSYSTEMS INC.
CONDENSED CONSOLIDATED INCOME STATEMENTS
(Unaudited)
QUARTERS ENDED SIX MONTHS ENDED
------------------ -------------------
(In thousands except
per share data) October September October September
4, 2009 28, 2008(1) 4, 2009 28, 2008(1)
Sales $1,207,964 $1,091,951 $2,417,098 $2,216,816
Cost of sales 962,262 851,720 1,911,551 1,757,313
------- ------- --------- ---------
Gross profit 245,702 240,231 505,547 459,503
Operating expenses:
Research and development 15,886 25,419 31,264 47,140
Selling 45,202 39,121 90,296 77,808
General and administrative 49,740 55,046 117,741 105,578
------ ------ ------- -------
Income before interest,
income taxes, and
noncontrolling interest 134,874 120,645 266,246 228,977
Interest expense (19,361) (22,727) (40,296) (45,277)
Interest income 124 232 210 599
--- --- --- ---
Income before income taxes
and noncontrolling interest 115,637 98,150 226,160 184,299
Income tax provision 43,020 36,672 84,060 68,339
------ ------ ------ ------
Net income 72,617 61,478 142,100 115,960
Less net income attributable
to noncontrolling interest 107 16 159 106
--- -- --- ---
Net income attributable
to Alliant Techsystems Inc. $72,510 $61,462 $141,941 $115,854
======= ======= ======== ========
Alliant Techsystems Inc.'s
earnings per common share:
Basic $2.21 $1.87 $4.33 $3.53
Diluted 2.19 1.77 4.28 3.31
Alliant Techsystems Inc.'s
weighted-average number of
common shares outstanding:
Basic 32,829 32,819 32,793 32,823
Diluted 33,139 34,796 33,151 34,994
(1) Restated due to the adoption of new accounting standards
ALLIANT TECHSYSTEMS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands except share data)
October 4, March 31,
2009 2009(1)
------- -----
ASSETS
Current assets:
Cash and cash equivalents $224,979 $336,700
Net receivables 932,860 899,543
Net inventories 192,893 238,600
Income tax receivable 10,966 34,835
Deferred income tax assets 47,583 29,223
Other current assets 52,487 39,843
------ ------
Total current assets 1,461,768 1,578,744
Net property, plant, and
equipment 529,583 540,041
Goodwill 1,190,984 1,195,986
Deferred income tax assets 35,796 69,582
Deferred charges and other
non-current assets 266,804 192,992
------- -------
Total assets $3,484,935 $3,577,345
========== ==========
LIABILITIES AND EQUITY
Current liabilities:
Current portion of
long-term debt $13,750 $289,859
Accounts payable 165,009 294,971
Contract advances and
allowances 95,955 86,080
Accrued compensation 119,127 168,059
Other accrued liabilities 193,080 166,341
------- -------
Total current liabilities 586,921 1,005,310
Long-term debt 1,378,520 1,097,744
Postretirement and
postemployment benefits
liabilities 118,698 121,689
Accrued pension liability 421,292 552,671
Other long-term
liabilities 127,013 125,362
------- -------
Total liabilities 2,632,444 2,902,776
Contingencies
Common stock - $.01 par
value Authorized - 90,000,000
shares Issued and outstanding -
32,927,959 shares at
October 4, 2009 and
32,783,496 at March 31, 2009 329 328
Additional paid-in-capital 577,786 574,674
Retained earnings 1,562,403 1,420,462
Accumulated other
comprehensive loss (629,767) (651,652)
Common stock in treasury,
at cost - 8,627,489
shares held at October 4,
2009 and 8,771,565 shares
held at March 31, 2009 (667,017) (677,841)
-------- --------
Total Alliant Techsystems
Inc. stockholders' equity 843,734 665,971
Noncontrolling interest 8,757 8,598
----- -----
Total equity 852,491 674,569
------- -------
Total liabilities and
equity $3,484,935 $3,577,345
========== ==========
(1) Restated due to the adoption of new accounting standards
ALLIANT TECHSYSTEMS INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
SIX MONTHS ENDED
----------------
(In thousands) October 4, September 28,
2009 2008(1)
---- ------
Operating activities
Net income $142,100 $115,960
Adjustments to net income
to arrive at cash used for
operating activities:
Depreciation 49,571 38,148
Amortization of intangible
assets 2,479 2,808
Amortization of debt
discount 11,708 11,718
Amortization of deferred
financing costs 1,419 1,438
Asset impairment 11,405 3,753
Deferred income taxes 1,365 (18)
Gain on disposal of
property (483) (3,439)
Share-based plans expense 8,580 9,718
Excess tax benefits from
share-based plans (981) (3,151)
Changes in assets and
liabilities:
Net receivables (33,317) (147,178)
Net inventories 45,707 2,934
Accounts payable (113,315) (10,063)
Contract advances and
allowances 9,875 (6,036)
Accrued compensation (54,405) (32,606)
Accrued income taxes 33,260 (17,003)
Pension and other
postretirement benefits (124,960) 13,435
Other assets and
liabilities (37,442) 51,168
------- ------
Cash (used for) provided by
operating activities (47,434) 31,586
Investing activities
Capital expenditures (67,147) (59,000)
Acquisition of business,
net 5,002 (7,511)
Proceeds from the
disposition of property,
plant, and equipment 1,267 321
----- ---
Cash used for investing
activities (60,878) (66,190)
Financing activities
Payments made on bank debt (7,041) -
Payments made for debt
issue costs - (5)
Net purchase of treasury
shares - (31,616)
Proceeds from employee
stock compensation plans 2,651 6,454
Excess tax benefits from
share-based plans 981 3,151
--- -----
Cash used for financing
activities (3,409) (22,016)
------ -------
Decrease in cash and cash
equivalents (111,721) (56,620)
Cash and cash equivalents -
beginning of period 336,700 119,773
------- -------
Cash and cash equivalents -
end of period $224,979 $63,153
======== =======
Supplemental Cash Flow
Disclosure:
Noncash investing activity:
Capital expenditures
included in accounts payable $3,891 $3,387
====== ======
Acquisition costs included
in other accrued liabilities $- $7,500
== ======
(1) Restated due to the adoption of new accounting standards
SOURCE ATK
LOS ANGELES, Nov. 11 /PRNewswire/ -- FAMILY ARMOR, reality TV's newest entry, introduces viewers to the world of vehicle armoring and bulletproofing. Debuting on November 19th at 10:00pm (ET/PT), this one hour special follows two Mormon brothers-in-law, who own Texas Armoring Corporation (TAC)--the leading worldwide supplier of armored passenger vehicles, bulletproof cars, cash-in-transit vehicles, armored SWAT trucks, and custom luxury limousines. This one-hour TLC special, produced by STILETTO Television and executive produced by Mark C. Grove, Garry C. Kief and Troy P. Queen, is one of the first to follow the everyday lives of a devout Mormon family on reality television.
FAMILY ARMOR follows the dynamic in-laws as they balance faith and family life with their dangerous business--transforming everyday cars into 007-esque, bomb-resistant and gadget-filled fortresses for domestic and international corporate executives, celebrities, diplomats and soccer moms. Led by charismatic Trent Kimball and his younger brother-in-law, Jason, TAC is aided and abetted by a motley crew of expert engineers. When not at the factory, Trent is the father of six rowdy children and married to his live-wire of a wife, Courtney. Jason and his wife Lacy are first-time parents, working to catch up in the baby race. Trent and Jason devote their time to work, kin and religion...and along the way, they get to shoot guns and blow things up.
"Cars, guns and God...this show has it all," Grove said. "The charismatic Kimball and Forston families are a blast to watch as they guide us through the complex art of bulletproofing vehicles, all the while lifting the veil on their mysterious Mormon faith."
For additional information about FAMILY ARMOR please visit press.discovery.com.
About STILETTO Television
STILETTO Television develops, produces and distributes original programs designed to entertain, inform and captivate. STILETTO Television's work includes Emmy Award-winning specials, the first original musical movie made for television, and provocative docuseries on American life for ABC, A&E, BBC, CBS, MTV, MTV Networks/LOGO, NBC, PBS, Showtime, TLC and VH1. STILETTO Television's diverse background in the music industry, broadcast news, and documentaries provides the foundation for innovative scripted dramas, reality and variety programs. For more information on STILETTO Television, visit www.stilettotelevision.com.
About Texas Armoring Corporation
Texas Armoring Corporation is the leading worldwide supplier of lightweight armored passenger vehicles, bulletproof cars, cash-in-transit vehicles, armored SWAT trucks, and custom luxury limousines. Texas Armoring specializes in lightweight armor, superior protection, remarkable finishing, and comprehensive support. The firm's origins date back to the 1970s when key staff members pioneered the luxury bulletproofing industry through producing bulletproof cars for world leaders. For more information on armored vehicles and Texas Armoring Corporation, please visit http://www.texasarmoring.com.
SOURCE STILETTO Television
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