Orbital Sciences Corporation (NYSE:ORB) today reported its financial results for the second quarter of 2014. Second quarter 2014 revenues were $318.1 million, compared to $333.1 million in the second quarter of 2013. Second quarter 2014 operating income was $15.3 million. Adjusted operating income* in the second quarter of 2014 was $21.9 million, or 6.9% of revenues, compared to $26.3 million, or 7.9% of revenues, in the second quarter of 2013.
Net income in the second quarter of 2014 was $16.5 million. Adjusted net income* in the second quarter of 2014 was $20.7 million, or $0.34 adjusted diluted earnings per share*, compared to net income of $16.3 million, or $0.27 diluted earnings per share, in the second quarter of 2013. Orbital’s free cash flow* in the second quarter and first half of 2014 was $16.7 million and $103.7 million, respectively, compared to positive $6.9 million and negative $27.3 million in the second quarter and first half of 2013.
“While revenues were down due to the delayed start of several satellite contracts, the quarter’s adjusted earnings per share and year-to-date free cash flow were well ahead of last year’s results,” said Mr. David W. Thompson, Orbital’s Chairman and Chief Executive Officer. “In addition to carrying out a series of important space missions and booking $550 million of new business, the company’s big news in the second quarter was the announcement of a proposed merger-of-equals combination of Orbital and ATK’s Aerospace and Defense Groups. Transition planning and related activities for the merger are on track for an anticipated closing in the fourth quarter,” he added.
________* “Adjusted operating income,” “adjusted net income” and “adjusted diluted earnings per share” exclude professional fees and other costs incurred in 2014 pertaining to the planned merger of Orbital and the Aerospace and Defense Groups of Alliant Techsystems Inc. (“ATK”) pursuant to an April 28, 2014 definitive transaction agreement. These financial measures, together with “free cash flow,” are non-GAAP financial measures. For additional details concerning these measures, please refer to the sections of this press release entitled “Cash Flow” and “Disclosure of Non-GAAP Financial Measures.”
First Six Months
|($ in millions, except per share data)||2014||2013||2014||2013|
|Revenues||$318||.1||$ 333||.1||$ 641||.4||$ 667||.9|
|Adjusted Operating Income||21||.9 (1)||n/a||44||.8 (1)||n/a|
|Adjusted Net Income||20||.7 (1)||n/a||34||.5 (1)||n/a|
|Diluted Earnings Per Share||$ 0||.27||$ 0||.27||$ 0||.50||$ 0||.59|
|Adjusted Diluted Earnings Per Share||$ 0||.34 (1)||
|$ 0||.57 (1)||n/a|
|(1) Adjusted to exclude $6.6 million ($4.2 million after tax) of merger transaction costs.|