Orbital Sciences Corporation (NYSE:ORB) today reported its financial results for the third quarter of 2014. Third quarter 2014 revenues were $338.2 million, compared to $322.0 million in the third quarter of 2013. Third quarter 2014 operating income was $33.3 million. Adjusted operating income* in the third quarter of 2014 was $36.5 million, or 10.8% of revenues, compared to $25.6 million, or 8.0% of revenues, in the third quarter of 2013.
Net income in the third quarter of 2014 was $21.2 million or $0.35 diluted earnings per share. Adjusted net income* in the third quarter of 2014 was $23.3 million, or $0.38 adjusted diluted earnings per share*, compared to net income of $15.6 million, or $0.26 diluted earnings per share, in the third quarter of 2013. Orbital’s free cash flow* in the third quarter and first nine months of 2014 was $61.9 million and $165.6 million, respectively, compared to $31.5 million and $4.3 million in the third quarter and first nine months of 2013.
“Orbital’s third quarter financial results reflected good revenue growth, strong earnings and free cash flow, and robust new business activity,” said Mr. David W. Thompson, Orbital’s Chairman and Chief Executive Officer. “The company’s operational results were highlighted by the successful execution of eight space missions, including our second operational Antares/Cygnus mission to the International Space Station for NASA as well as four other satellite deployments for government customers.”
“In addition, we are pleased with how the activities related to the planned merger of Orbital and ATK’s Aerospace and Defense Groups are proceeding, with transition teams from both companies working hard to complete all aspects of the transaction. We are also continuing to target the end of the calendar year to complete all required regulatory reviews. However, if these approvals are received during the holiday season, the closing date would likely be in January,” he added.
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* “Adjusted operating income,” “adjusted net income” and “adjusted diluted earnings per share” exclude merger transaction 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.”
