you got that right <<<L-3 Communications Announces Strong First Quarter 2001 Results; Sales, operating income and earnings per share increase 22.5%, 35.2% and 25.0%, respectively
Business Wire - Wednesday, April 25, 2001
NEW YORK--(BUSINESS WIRE)--April 25, 2001--L-3 Communications (NYSE:LLL) today announced strong results for the first quarter of 2001, including significant increases in sales, operating income, and earnings per share compared to the same period a year ago.
For the 2001 first quarter, sales increased 22.5% to $461.9 million, compared to sales of $377.1 million for the same period in 2000.
Operating income in the first quarter of 2001 was $46.9 million, a 35.2% increase over operating income of $34.7 million for the same period in 2000. As a percentage of sales, operating income was 10.1% in the first quarter of 2001, versus 9.2% in the same period in 2000.
Earnings before interest, taxes, depreciation and amortization (EBITDA) was $67.2 million for the first quarter of 2001, compared to $50.4 million for the same period in 2000, or an increase of 33.3%.
Net income for the first quarter of 2001 rose 30.3% to $14.2 million, compared with net income of $10.9 million a year ago. Diluted earnings per share rose 25.0% to $0.40 per diluted share, versus $0.32 per diluted share for the same period in 2000.
The company reported free cash flow for the first quarter of 2001 of approximately $8.0 million compared with $10.7 million for the same period in 2000. Net capital expenditures increased to $9.2 million for the first quarter of 2001 from $4.4 million for the same period in 2000. The decline in free cash flow was also attributable to planned increases in inventory related to the fixed wireless access business and the continued effort to complete the AVCATT program, partially offset by an adjustment on a services agreement in connection with an acquisition. As of March 31, 2001, the company had $39.0 million in cash, compared to $32.7 million at December, 31, 2000.
Bookings for the company's products continued to exhibit strong growth, with funded orders in the first quarter of 2001 increasing 29.5% to $508.4 million, compared to $392.7 million in the same period a year ago. Funded backlog increased 15.5% to $1,400.5 million at March 31, 2001, compared to $1,212.5 million at March 31, 2000.
"We had a very good first quarter," said Frank C. Lanza, chairman and chief executive officer of L-3 Communications. "Our key divisions and products performed very well during the first quarter of 2001, including secure data links, training and simulation, avionics and microwave products."
"Our Department of Defense business was a strong contributor to our overall performance," continued Mr. Lanza. He noted that the training and simulation business received several contracts, including a U.S. Navy T-45C instrument flight trainer, U.S. Navy P-3C Partial Aircrew Coordination Trainers and virtual domain simulation of actual warfighting equipment, systems and munitions and an award from U.S. Army STRICOM.
"We also had some important milestones in our commercial businesses," continued Mr. Lanza. "In our telecommunications business, L-3 received a major contract to provide a fixed wireless access system for selected cities in South America. We are making good progress on this contract, and because our system is based on cutting-edge broadband technology, we believe we have excellent prospects for other international contracts in the future. In our transportation business, we have taken our leadership in aviation recorders and applied it to the maritime market to deliver our first production Hardened Voyage Recorder (HVR) for the largest cruise ferry, the Ulysses, owned and operated by Irish Ferries. Increased regulations in the maritime industry mandating recorder technology on cruise ships and ferry boats will create a new market into which L-3 can leverage its expertise."
Mr. Lanza cited a number of key high technology wins and milestones for L-3:
-- L-3 signed an agreement for the formation of a joint venture
company with Thales Avionics purchasing a 30% interest. This joint
venture will be called Aviation Communications & Surveillance
Systems (ACSS), an L-3 Communications and Thales Company. ACSS
will provide communications and surveillance systems and services
and support for the global aviation marketplace.
-- Display Systems received an award to provide the Army's new
Line-of-Sight-Anti-Tank Program with its advanced control and
display manager and battle view and tactical displays.
-- IEC has been selected to combine and miniaturize its GPS receiver
with its MEMS Internal Measurement Unit for inclusion in the Low
Cost Guidance and Navigation (LCGNU) program, which will be used
in a NATO initiative to upgrade "dumb" munitions to more
navigation capable "smart" weapons.
-- Space & Navigation received an award for an additional 70 Position
Navigation Units for the Army's Multiple Launch Rocket System
(MLRS). This award is the result of L-3's continued high
performance on this contract and maintains the division's position
as a leader in precision pointing and navigation products.
-- Conic was selected by Greece to supply state-of-the-art tuneable
microwave radios to support the 2004 Olympics. These high-speed
digital radios will be used to transmit both video and audio from
remote Olympic game sites to a central broadcast location for
worldwide broadcast coverage.
-- Northrop Grumman selected Randtron to supply several of its
advanced high frequency antennas to the Falcon Edge program, which
is an F-16 based Electronic Warfare platform for a foreign ally.
-- Ocean Systems received funding from the U.S. Navy to demonstrate
its new Untethered Mine/Hunter Destroyer, which is electronically
controlled and deployed from either a ship or helicopter to search
for and destroy mines.
-- L-3 Storm entered into a cooperative agreement with Inmarsat to
provide systems integration and satellite services, including
fully automated satellite command and control capabilities to the
global commercial satellite market.
-- The Federal Aviation Administration awarded L-3 two contracts,
purchasing a total of 14 of its eXaminer 3DX(TM) 6000 explosive
detection systems for deployments at U.S. Airports. Additionally,
the FAA certified L-3's eXaminer 3DX(TM) 3000 product for use in
smaller air carrier stations throughout the United States.
-- L-3 supplied its RIFCA (Redundant Inertial Flight Controller
Assembly) inertial guidance system for its 48th consecutive
successful Boeing Delta Rocket launch. L-3's RIFCA is expected to
fly on future Delta II, III and IV launches.
-- L-3 successfully demonstrated its Skyhawk UAV payload on the
Hunter Tactical UAV. In an industry first, L-3's Skyhawk can
detect and locate COMINT (communications intelligence) and (ELINT)
electronic intelligence emitters, providing real-time data
collection capabilities.
-- L-3 was selected by American Airlines to supply more than 600
FA2100 Solid State Cockpit Voice Recorders (CVRs) to retrofit
across its entire fleet.
-- L-3 formed Satellite Networks, a new division created by the
combination of its LNR and Satellite Transmission Systems
businesses to offer a wide range of satellite solutions, from
top-of-the-line satellite products such as frequency converters
and Fly Away Satellite Terminals, to complex satellite gateways,
systems and networks. In addition, Satellite Networks further
enhanced its product portfolio in the quarter with the acquisition
of the ISAT (Integrated Services Access Terminal) product line of
Gilat Florida.
-- L-3 assigned its newly acquired Coleman Research Corporation into
the organizational structure of the company's MPRI division to
provide increased business opportunities and operational
efficiencies.
"As we survey the acquisition landscape, the pipeline is full and there is a lot of opportunity for L-3," said Mr. Lanza. "We are currently looking at several key sectors at various size levels, and we have a solid financial structure to make both smaller and larger acquisitions."
"We are very pleased with the efforts that the new administration is making as it thoughtfully develops its defense plans," concluded Mr. Lanza. "President George W. Bush is honoring his campaign pledge to study the nation's military needs and is developing a realistic plan that reflects current and future threats. We believe that his goals to focus on the modernization of platforms and to move toward leapfrog technology will play to the strengths that L-3 has as a major defense electronics company. With our broad line of market leading products and an acquisition pipeline that remains favorable, we look forward to the rest of 2001."
The $508.4 million in first quarter bookings included the following notable contract awards:
-- Secure Communication Systems booked approximately $241.0 million
in funded orders. Key bookings included awards for the company's
core data link programs for the U-2, CHBDL, Predator and
Globalhawk UAVs, and an award for L-3's Strategic/Tactical
Airborne Recorder (S/TAR(TM)) on the SHARP (Shared Reconnaissance
Pod) program. Additional strong orders for the company's secure
terminal equipment (STE) and follow-on funding for communications
systems on the International Space Station and various Signal/Data
Link intelligence programs. In addition, L-3 received a follow-on
production order for additional eXaminer 3DX(TM)6000 Explosive
Detection Systems (EDS) for deployment at U.S. airports. The
simulation and training business was awarded a contract for the
U.S. Army's Simulation, Training and Instrumentation Command
(STRICOM) to provide virtual domain simulation of war fighting
equipment, follow-on orders for additional simulation and training
requirements were received for the F-22, F-117 and F-16. Also, the
company was awarded additional funding for the Army's ROTC
program.
-- Specialized Communication Products booked approximately $267.4
million in funded orders. Strong bookings in Ocean Products were
led by awards for the U.S. Navy's Towed Array programs and various
international orders for dipping sonars, follow-on orders for
LPD-17 switchgear, and an award from the U.S. Navy for funding on
the Untethered Mine Hunter/Destroyer program. In addition, L-3
received follow-on orders to provide cockpit displays for the
C-130J, T-38 and Jaguar platforms. The company was also awarded an
initial contract to provide display systems for the Line-of-Sight
Anti Tank program (LOSAT). Telemetry & Instrumentation and Space
products included initial awards for F-16 antennas, incremental
funding for the E2C TRAC-A, and follow-on funding for additional
position navigation units on the Multiple Launch Rocket System
(MLRS). Also booked were the initial award for L-3's upgraded TCM
900 Point to Point microwave radio from Hellenic Aerospace. In
addition, the company was awarded initial funding to develop a Low
Cost Guidance Navigation Unit (LCGNU).
In conjunction with this release, L-3 Communications will host a conference call, which will be simultaneously broadcast live over the Internet. Frank C. Lanza, Chairman and Chief Executive Officer, Robert V. LaPenta, President and Chief Financial Officer, and Cynthia Swain, Vice President-Corporate Communications, will host the call, which is scheduled for tomorrow, April 26, 2001 at 4:00 p.m. EDT. Listeners can access the conference call live and archived over the Internet at streetfusion.com. Please allow 15 minutes prior to the call to visit the site and download and install any necessary audio software.
Headquartered in New York City, L-3 Communications is a leading merchant supplier of secure communications systems and products, avionics and ocean products, training products, microwave components and telemetry, instrumentation, space and wireless products. Its customers include the Department of Defense, selected U.S. government intelligence agencies, aerospace prime contractors and commercial telecommunications and wireless customers.
To learn more about L-3 Communications, please visit the company's web site at www.L3Com.com.>>
Greg |
