First Quarter Conference Call Fiscal 2004 Archive
02 / 02 / 2004Highlights
INTRODUCTION FOR CONFERENCE CALLAircraft Group Q1’04Space & Missiles Q1’04Industrial Segment Q1’04SummaryAttachments
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Before we begin, we call your attention to the fact that we may make forward-looking statements during the course of this conference call. These forward-looking statements are not guarantees of our future performance and are subject to risks, uncertainties and other factors that could cause actual performance to differ materially from such statements. A description of these risks, uncertainties and other factors is contained in our news release of today’s date, our Form 10-K for the year ended September 27, 2003, and in certain of our other public filings with the SEC. Non-GAAP numbers referred to in our remarks today are reconciled to the closest GAAP financial measure on a form that is posted on our website along with today’s prepared remarks.
Good morning. Thanks for joining us. This morning we’re pleased to be reporting results for the first quarter of fiscal ’04. This is the first quarter that will include the results of our Litton Poly-Scientific acquisition which we’re now referring to as the Components Group.
Sales for the quarter of $226 million were up 26% from a year ago at this time. It’s a big sales increase because of the acquisition. Without the acquisition, it would have been an 8% sales increase.
Earnings were $12.7 million, up 29% from a year ago. You’ll remember that we sold two million plus shares to partly pay for the acquisition. So, we have 15% more shares outstanding. On an earnings-per-share basis, the quarter was 72 cents, up 13% from 64 cents a year ago.
Perhaps it’s needless to say that this set of results, at this point in the year, makes us very happy.
If we look at the puts and takes in the P&L, we can explain a 29% earnings increase from a 26% sales increase in this fashion. Gross margins were actually down slightly, for reasons that will become clearer as we go through the segment reports. SG&A, after adding in the Components Group, is a percentage of sales quite comparable to what we experienced before the acquisition. On the other hand, R&D is down substantially and we’re paying much lower interest this year than we were last year at this time. You may recall that last year we still had high-yield debt outstanding which we called in May. The net result is that our operating expenses were 21.3% of sales vs. 23.6%. As a result, pre-tax and after-tax earnings were up significantly over the first quarter a year ago.
Bob Banta will discuss cash flow and debt levels in just a few moments. All in all, this was a great start for fiscal year ’04. So, now on to the segments.
INTRODUCTION FOR CONFERENCE CALL
Before we begin, we call your attention to the fact that we may make forward-looking statements during the course of this conference call. These forward-looking statements are not guarantees of our future performance and are subject to risks, uncertainties and other factors that could cause actual performance to differ materially from such statements. A description of these risks, uncertainties and other factors is contained in our news release of today’s date, our Form 10-K for the year ended September 27, 2003, and in certain of our other public filings with the SEC. Non-GAAP numbers referred to in our remarks today are reconciled to the closest GAAP financial measure on a form that is posted on our website along with today’s prepared remarks.
Good morning. Thanks for joining us. This morning we’re pleased to be reporting results for the first quarter of fiscal ’04. This is the first quarter that will include the results of our Litton Poly-Scientific acquisition which we’re now referring to as the Components Group.
Sales for the quarter of $226 million were up 26% from a year ago at this time. It’s a big sales increase because of the acquisition. Without the acquisition, it would have been an 8% sales increase.
Earnings were $12.7 million, up 29% from a year ago. You’ll remember that we sold two million plus shares to partly pay for the acquisition. So, we have 15% more shares outstanding. On an earnings-per-share basis, the quarter was 72 cents, up 13% from 64 cents a year ago.
Perhaps it’s needless to say that this set of results, at this point in the year, makes us very happy.
If we look at the puts and takes in the P&L, we can explain a 29% earnings increase from a 26% sales increase in this fashion. Gross margins were actually down slightly, for reasons that will become clearer as we go through the segment reports. SG&A, after adding in the Components Group, is a percentage of sales quite comparable to what we experienced before the acquisition. On the other hand, R&D is down substantially and we’re paying much lower interest this year than we were last year at this time. You may recall that last year we still had high-yield debt outstanding which we called in May. The net result is that our operating expenses were 21.3% of sales vs. 23.6%. As a result, pre-tax and after-tax earnings were up significantly over the first quarter a year ago.
Bob Banta will discuss cash flow and debt levels in just a few moments. All in all, this was a great start for fiscal year ’04. So, now on to the segments.
Aircraft Group Q1’04
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