Orbital Announces Fourth Quarter and Full Year 2009 Financial Results
17 February 2010
Orbital Sciences Corporation reported its financial results for the fourth quarter and full year 2009. Fourth quarter 2009 revenues were $282.3 million, compared to $305.2 million in the fourth quarter of 2008. Fourth quarter 2009 operating income was $14.7 million, compared to $16.8 million in the fourth quarter of 2008.
Net income was $9.3 million, or $0.16 diluted earnings per share, in the fourth quarter of 2009, compared to net income of $9.0 million, or $0.15 diluted earnings per share, in the fourth quarter of 2008. Orbital generated $8.3 million of free cash flow* in the fourth quarter of 2009 compared to free cash flow of $14.1 million in the fourth quarter of 2008.
Full year 2009 revenues were $1,125.3 million, compared to $1,168.6 million in 2008. Operating income was $52.3 million in 2009, compared to $84.3 million in 2008. Net income was $36.6 million, or $0.63 diluted earnings per share in 2009, compared to income from continuing operations of $42.6 million, or $0.70 per diluted share in 2008. Orbital generated $58.7 million of free cash flow in 2009, compared to $82.3 million in 2008.
Mr. David W. Thompson, Orbital’s Chairman and Chief Executive Officer, said, “Orbital ended 2009 with its best quarter of the year for new business and with its busiest period for operational activity. In addition, the company’s fourth quarter financial results were better than expected, due in large measure to strong revenue growth in advanced space programs and solid profit margins in satellites and space systems.”
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| * “Free cash flow” is a non-GAAP financial measure discussed in this release. For additional details, please refer to the sections of this press release entitled “Cash Flow” and “Disclosure of Non-GAAP Financial Measure.” |
Fourth Quarter Financial Highlights
Summary financial results were as follows:
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Fourth Quarter |
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Full Year |
| ($ in millions, except per share data) |
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2009 |
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2008 |
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2009 |
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2008 |
| Revenues |
|
$ |
282.3 |
|
$ |
305.2 |
|
$ |
1,125.3 |
|
$ |
1,168.6 |
| Operating Income |
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14.7 |
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16.8 |
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52.3 |
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84.3 |
| Income from Continuing Operations |
|
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9.3 |
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9.0 |
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36.6 |
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42.6 |
| Income from Discontinued Operations |
|
|
- |
|
|
- |
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- |
|
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15.9 |
| Net Income |
|
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9.3 |
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9.0 |
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36.6 |
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|
58.5 |
| Diluted Earnings per Share: |
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| Continuing Operations |
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$ |
0.16 |
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$ |
0.15 |
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$ |
0.63 |
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$ |
0.70 |
| Discontinued Operations |
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- |
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- |
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- |
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0.26 |
| Net Income |
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0.16 |
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0.15 |
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0.63 |
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0.96 |
Revenues decreased $22.9 million, or 8%, in the fourth quarter of 2009 compared to the fourth quarter of 2008 primarily due to decreased contract activity on communications satellite, missile defense and Orion programs, partially offset by increased activity on the International Space Station Commercial Resupply Services (CRS) contract awarded by NASA at the end of 2008.
Operating income decreased $2.1 million, or 13%, in the fourth quarter of 2009 compared to the fourth quarter of 2008. This was due to a $4.1 million decrease in operating income related to a net reduction in contract activity and a $3.6 million increase in unrecovered research and development (R&D) expenses. The fourth quarter of 2008 included a $5.6 million profit reduction related to a launch failure.
Net income in the fourth quarter of 2009 was $9.3 million, or $0.16 diluted earnings per share, compared to $9.0 million, or $0.15 diluted earnings per share in the fourth quarter of 2008. The increase in net income was due to a $6.2 million reduction in investment impairment charges offset by a $2.1 million reduction in operating income, a $2.6 million increase in income tax expense and a $1.2 million reduction in other income.
Diluted weighted-average shares outstanding were 57.5 million in the fourth quarter of 2009, down from 59.3 million in the fourth quarter of 2008 due to share repurchases made by the company in the first half of 2009.
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