Orbital ATK, Inc. (NYSE: OA), a global leader in aerospace and defense technologies, today announced both GAAP and adjusted financial results for the fourth calendar quarter and calendar year ended December 31, 2015. 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 $1,137 million for the fourth quarter of 2015, compared to $747 million in the same quarter in 2014. GAAP operating income and profit margin were $87.3 million and 7.7%, respectively, in the fourth quarter of 2015 compared to $81.0 million and 10.8%, respectively, in the same quarter of 2014. The company reported GAAP earnings per diluted share of $0.88 in the fourth quarter of 2015 compared to earnings per diluted share of $0.74 in the fourth quarter of 2014. Net cash provided by operating activities was $170.3 million in the quarter ended December 31, 2015.
Orbital ATK reported adjusted revenues of $1,137 million in the fourth quarter of 2015 compared to adjusted revenues of $1,116 million in the comparable period of 2014. Adjusted operating income and profit margin were $133.0 million and 11.7%, respectively, in the fourth quarter of 2015, compared to $127.7 million and 11.4%, respectively, in the same quarter of 2014. Adjusted diluted earnings per share in the quarter were $1.45, compared to $1.26 for the fourth quarter of 2014. Free cash flow was $122.2 million in the quarter ended December 31, 2015.
Full year 2015 GAAP revenues were $4,369 million, compared to $2,995 million in 2014. GAAP operating income and profit margin were $319.6 million and 7.3%, respectively, in 2015, compared to $311.1 million and 10.4%, respectively, in 2014. GAAP earnings per diluted share in 2015 were $2.85 compared to $2.78 in 2014. Net cash provided by operating activities was $443.5 million in 2015.
Full year 2015 adjusted revenues were $4,515 million, compared to $4,438 million in 2014. Adjusted operating income and profit margin were $499.8 million and 11.1%, respectively, in 2015, compared to $438.2 million and 9.9%, respectively, in 2014. Adjusted diluted earnings per share in 2015 were $5.02, compared to $4.18 in 2014. Adjusted free cash flow was $290.0 million in 2015.
“Orbital ATK completed the year with strong financial and operational results for both the fourth quarter and full year,” said David W. Thompson, Orbital ATK’s President and Chief Executive Officer. “In the fourth quarter, our revenue, profit margin, earnings per share and cash flow all exceeded our expectations. For the full year, record new orders generated a very strong 116% book-to-bill ratio, giving us excellent visibility into the work we will perform for our customers over the next several years.”
Mr. Thompson added, “We recently marked the one-year anniversary of completing the merger between Orbital and ATK Aerospace and Defense. I want to thank our customers, employees and shareholders for their encouragement, hard work and support throughout the year, which helped make the transition and integration such a success in a relatively short period of time.”
