Orbital ATK, Inc. (NYSE: OA), a global leader in aerospace and defense technologies, today announced both GAAP and adjusted financial results for the second calendar quarter ended July 5, 2015. In addition to GAAP results, the company is presenting adjusted results because it believes these non-GAAP metrics are useful to understand the underlying operating performance of the company by including the pre-merger Orbital and ATK Aerospace and Defense results in comparable periods and excluding significant transaction and merger-related expenses and other non-operational expenses in all periods (for details see reconciliation tables at the end of this release).
Orbital ATK reported GAAP revenues of $1,130 million for the second quarter of 2015 compared to $714 million in the same quarter in 2014. GAAP operating income was $125.8 million in the quarter compared to operating income from continuing operations of $71.8 million in the comparable period last year. The company reported GAAP earnings per diluted share of $1.22 in the 2015 second quarter compared to earnings per diluted share of $0.96 in the comparable 2014 quarter. Free cash flow was negative $37.2 million in the quarter ended July 5, 2015.
The company reported adjusted revenues of $1,130 million in the second quarter of 2015 compared to adjusted revenues of $1,055 million in the comparable period of 2014. Adjusted operating income and adjusted profit margin were $131.6 million and 11.6%, respectively, in the second quarter of 2015 compared to $115.8 million and 11.0%, respectively, in the same quarter of 2014. Adjusted earnings per share in the quarter were $1.28 compared to $1.10 in the same period of 2014. Adjusted free cash flow was negative $5.5 million in the quarter ended July 5, 2015.
“Orbital ATK reported excellent second quarter financial results characterized by better-than-expected revenue and very strong earnings. These results benefited from outstanding new orders, as well as continued solid operational execution on our major programs. As a result, we are increasing the company’s outlook for sales and earnings this year and expanding our previously-announced capital deployment program as well,” said David W. Thompson, Orbital ATK’s President and Chief Executive Officer.
For the first six months of 2015, the company reported adjusted revenues of $2,246 million, adjusted operating income and profit margin of $248.3 million and 11.1%, respectively, adjusted earnings per share of $2.41 and adjusted free cash flow from continuing operations of $53.2 million.
The adjusted financial results contained in this press release are non-GAAP financial measures and are adjusted to give effect to the merger of Orbital Sciences Corporation (Orbital) and Alliant Techsystems Inc. (ATK) on February 9, 2015 as if it had occurred on January 1, 2014. In addition, adjusted results exclude significant transaction and merger-related expenses and other non-operational expenses in all periods. Please refer to the reconciliation tables contained in this press release for more details on the nature and amount of those adjustments.
