Sponsored by TCI International Inc.
www.tcibr.com
————————————————————————-
26 Nov 20. Avon Rubber’s momentum set to continue. New contract wins and the $130m acquisition of Team Wendy should propel further growth.
* After exiting the dairy equipment market, the group is focused on producing protective masks, helmets and body armour
* Further growth should still come on the back of new contracts and the acquisition of helmet specialist Team Wendy
Avon Rubber (AVON) has been a standout player in the UK defence sector, with its shares more than doubling in value so far this year. Full-year results are due to be published on 2 December, the question is whether the group’s stellar momentum can continue.
All signs currently point to the answer being ‘yes’. Having completed the disposal of its dairy equipment business in September, Avon Rubber has exited a more cyclical market and is now solely focused on producing protective gear for defence and security customers. It has continued to sign new deals, including a $93m (£70m) sole-source contract to supply next-generation ballistic helmets to the US army.
The group has wasted little time in reinvesting the dairy sale proceeds, acquiring helmet specialist Team Wendy for $130m earlier this month. Analysts at Peel Hunt reckon the tie-up will create a “tour de force in head protection systems”. While the broker is predicting that adjusted pre-tax profit will dip by 8 per cent in the year to 30 September 2020, to £29m, it forecasts that the Team Wendy purchase will help boost profits to £48m in 2021. Buy. Last IC View: Buy, 3,868p, 28 Aug 2020. (Source: Investors Chronicle)
26 Nov 20. Bodycote to restructure business again, expects aerospace market to remain weak. Bodycote Plc said on Thursday it would carry out another restructuring, similar to the one in the first half that included more than 900 job cuts, as it expects the civil aerospace market to remain weak for at least the next 18 months. The heat treatment and thermal processing company said the restructuring will be more focused on its aerospace, defence and energy business. The company’s employee headcount was down to 4,813 as of Oct. 31 from 5,764 at the beginning of the year. Group revenue fell 18% to 500.3m pounds ($668.95m) for the 10 months to Oct. 31, largely due to weakness in the civil aerospace business, Bodycote said. (Source: Google/Reuters)
25 Nov 20. Lockheed Martin [NYSE: LMT] has closed its acquisition of the Hypersonics portfolio of Integration Innovation Inc. (i3), a software and systems engineering company based in Huntsville, Alabama. This expands Lockheed Martin’s capabilities to design, develop and product integrated hypersonic weapon systems. This acquisition expands Lockheed Martin’s capabilities to design, develop and product integrated hypersonic weapon systems for its customers. Mike Wicks, the former CEO of i3, has been named vice president of the Hypersonic Engineering & Accelerated Technologies program within the Hypersonic Strike Portfolio for Lockheed Martin Space.
25 Nov 20. Melrose Industries PLC (“Melrose” or the “Group”) publishes the following trading update for the four months from 1 July 2020 to 31 October 2020 (the “Period”). All numbers are calculated at constant currency.
Trading update
Melrose is currently trading at the top end of the Board’s expectations for 2020. Your Board is encouraged by this, but clearly given the global uncertainty caution is required on any predictions for next year.
The performance of the Group in the Period reflected the faster than expected recovery in automotive markets, first seen over the summer, the continued strong performance in Nortek Air Management, and the more challenging, although currently stable, market conditions in Aerospace.
Divisional highlights
Aerospace
As expected, Aerospace did not see a recovery in its trading conditions with sales declining by 37% in the Period compared to the same period last year, a very similar trend to that seen since mid-March this year. The benefits of significant restructuring and cost saving actions are starting to feed through and we continue to expect the business broadly to break even for the full year.
Automotive & Powder Metallurgy
Both businesses saw an improvement in trading during the Period, with Automotive revenue down 3% and Powder Metallurgy 7% lower compared with the same period last year. There has, in both cases, been an improving trend through the Period, although it is fair to note that these stronger trends are boosted by the impact of the General Motors strike in the latter part of the same period last year.
Encouragingly, both businesses quickly returned to profitability with operating margins over 6% for the Period in Automotive and over 7% in Powder Metallurgy, reflecting the increasing benefits arising from the significant management actions taken.
Nortek Air Management
The business has continued to trade well in the Period with impressive revenue growth of 13% compared to the same period last year and nearly 3 percentage points of operating margin improvement. For the relevant Period this represents Nortek Air Management’s highest trading performance under Melrose ownership. The business has continued to grow despite the challenging macro conditions seen since mid-March due to the success of its new technologies, strong market positioning, adept operational and supply chain management, and a rebounding residential housing construction market.
Other Industrial
Other Industrial is trading in line with the Board’s expectations.
Net debt
Group cash generation in the Period was at the higher end of the Board’s expectations with significant restructuring actions continuing to be self-funded through an improving trading performance and ongoing working capital inflows. Even after significant expenditure on restructuring, it is expected that Group net debt will be reduced this year, ignoring currency fluctuations.
Melrose will be presenting its full year results on 4 March 2021.
Justin Dowley, Chairman of Melrose Industries PLC, said, “Trading in the Period has been encouraging in a number of our end markets and we are seeing the benefits of actions taken by management in our businesses’ performance. While short-term uncertainty remains, we are confident that our businesses can substantially improve their margins from today over the medium-term even without the need for full end market recovery.”
25 Nov 20. Babcock International Group PLC half year results for the period ended 30 September 2020. Resilient revenue but operating profit reflects disposals, the impact of civil nuclear insourcing, COVID-19 and weakness in civil aviation.
David Lockwood, Chief Executive Officer, said: “I have been enormously impressed by the way in which our people have adapted to the COVID-19 pandemic and continued to prioritise meeting the needs of our customers. Nevertheless, while demand for our critical services has remained resilient overall, the additional costs incurred and inefficiencies created have impacted our profitability. Our operating profit performance in the first half reflects this COVID-19 impact as well as disposals, the impact of government insourcing of Magnox and Dounreay, and weak trading in civil aviation. “In my first three months at Babcock I have spent time seeing many parts of the business. Our strengths are clear. We have many high-quality businesses, with a deep understanding of our customers, operating in markets where demand for our expertise is strong. At the same time, there are areas that need to be addressed if we are to achieve our full potential. The most important aspect will be delivering sustainable free cash flow. “In the coming months, we will be reviewing our strategic priorities, execution and delivery. I look forward to reporting back on this in May. In the meantime, we remain focused on delivering for our customers, employees and shareholders and continue to look to the future with confidence.”
Financial highlights
* Underlying revenue down 9% (down 7% excl. disposals and FX). Excluding Magnox, rest of businesses down 2%
* Underlying operating profit down 43% (down 39% excl. disposals and FX)
* Nuclear JVs profit declined £12 m year-on-year with the rest of the businesses down 34%, mainly reflecting COVID-19 and weak trading in our civil aviation businesses
* Statutory operating profit of £76m was down 55% on last year
* Exceptional items (net of tax) of £2m with a gain on disposals offset by new charges. Small associated net cash costs
* Free cash flow of £58m with working capital better than expected, including a £40m VAT timing benefit across Europe * Net debt (excl. leases) reduced to £871m, partly from self-help of Holdfast disposal
* Net debt/EBITDA of 2.0 times, well within covenant levels; BBB credit rating confirmed
* Significant liquidity with £1.4bn headroom at September 2020 * No interim dividend declared given continued uncertainty around the impact of COVID-19
Operational highlights
* COVID-19 saw a huge response across our businesses. Demand held up in the majority of areas but there was a disproportionate impact on profitability with additional costs and reduced efficiency limiting our margin in many areas
* Contract wins: Dreadnought programme, extensions to Met Police vehicle contract and c.£500m of new civil aviation contracts
* Type 31 UK frigate programme on track
* Dounreay contract to be taken in-house by the NDA in March 2021
* Restructuring programmes progressing for civil aviation and civil nuclear businesses * Progress on fleet rationalisation programme with more to follow
* Completed sales of Holdfast business (joint venture) in June for £85m and Conbras in October for £7m
Outlook
* Our performance is typically second half weighted. This weighting is expected to be more pronounced this year as we gradually improve our efficiency month by month under COVID-19
* Uncertainty remains around the impact of the pandemic in our markets including government and customer responses. Given this, we continue to not provide financial guidance for this financial year.
Third Bridge Comments on Babcock International: These comments are from Jack Winchester, Analyst at Third Bridge.
“As Babcock withdraws from sectors such as helicopters, oil and gas, they become ever more reliant on core defence markets, particularly the UK. Babcock’s sales pipeline provides some confidence in their operations over the next few years, but the strength of their relationship with the MoD will decide the company’s fortunes in the long term. The UK’s multi-billion increase in defence spending and efforts to drive up defence investment across Europe give Babcock a more favourable commercial environment in which to operate. The commercial interest in Babcock’s Type 31 platform is another opportunity for the company, with previous Babcock Marine CEO John Howie claiming there have been over 30 overseas expressions of interest in their frigate. The UK’s Department of International Trade is expected to play matchmaker between Babcock and potential governments.”
Third Bridge is a global primary research firm that interviews more than 6,000 internationally recognised industry experts and business leaders a year to compile 360 degree market intelligence for investors. If you would like to speak with Jack Winchester today, please do not hesitate to get in touch.
24 Nov 20. Volatus Aerospace Expands Drone Services in Ontario. Volatus Aerospace adds Canadian UAV Solutions Inc. to the fold. Volatus Aerospace, a fast-growing integrated provider of unmanned aircraft and drone services, has reached an agreement to acquire an equity interest in Canadian UAV Solutions Inc. of Wasaga Beach Ontario.
Canadian UAV Solutions has over seven years experience providing a full range of drone services throughout Ontario and Quebec. Specializing in surveying for Aggregate Pits & Quarry’s, Mining, Construction, Governmental and Environmental organizations, the company works closely with Ontario Land Surveyors and employs one of the only Photogrammetry Specialists certified by the Canadian Institute of Geomatics. General services include Topographic Mapping, Digital Elevation Models, Orthographic Mosaics, GIS Maps and Imagery, CAD Modelling, Inspections, Agricultural & Forestry Mapping, Thermal Imaging, as well as 4K Videos and Photos.
“Canadian UAV Solutions is a great addition to Volatus and greatly increases our strength in the Construction, Mining, and Municipal sectors” said Glen Lynch, President & CEO of Volatus Aerospace. “In addition to having a great team, their strength in data management and processing enhances our capability across our entire network”.
Murray Hunt, President Canadian UAV Solutions added “becoming part of the Volatus Aerospace Group will provide our company with the resources necessary necessary to grow our company to the next level. Combining our experience with their coast to coast pilot network, business resources, UAV fleet and sensor assets will no doubt result in an exciting next chapter in our corporate story”. (Source: ASD Network)
24 Nov 20. CAE to acquire TRU Simulation + Training Canada Inc..
* Acquisition strengthens CAE’s global civil training capabilities
* Expands addressable market for simulator lifecycle support
* Adds order backlog and access to new customers
* CAE’s second acquisition announcement in the last two weeks
(NYSE: CAE) (TSX: CAE) – CAE today announced that it has concluded a conditional agreement with Textron (NYSE: TXT) to acquire TRU Simulation + Training Canada Inc. (TRU Canada) for a cash consideration of approximately US$40m, excluding post-closing adjustments. The closing of the transaction is subject to customary conditions and regulatory approvals.
The acquisition of TRU Canada expands CAE’s global installed base of commercial flight simulators and customers, and the addressable market for simulator lifecycle support services. TRU Canada also brings with it a backlog of simulator orders, full-flight simulator assets and provides access to a number of airline customers globally.
TRU Canada is CAE’s second announced acquisition in the last two weeks and demonstrates the Company’s commitment to deploying the capital it is raising to strengthen the Company’s position across its markets. The acquisition is aligned with CAE’s strategic priorities and meets the strict financial parameters it has in place. It is expected to be accretive to earnings in its first full year.
“We look forward to integrating the TRU Canada business within CAE. This acquisition demonstrates our ability to bolster our position and expand our addressable market and our global customer base during this unprecedented period of disruption. Along with the recently announced FSC acquisition, we have been able to make investments that are expected to better enable CAE to meet the global demands of our customers in support of their training and simulation needs,” said Marc Parent, CAE’s President and Chief Executive Officer. (Source: PR Newswire)
25 Nov 20. Textron Inc. (NYSE: TXT) today announced that its TRU Simulation + Training Inc. subsidiary has reached a definitive agreement to sell certain of its non-U.S. businesses to CAE Inc., a global high-technology leader in training for civil aviation, defense and security, and healthcare, for a cash consideration of US$40m, excluding post-closing adjustments. Included in the transaction is the sale of TRU Simulation + Training Canada Inc., which includes its Montreal manufacturing operations, as well as ETOPS entities in France and Malaysia and a minority interest in a joint venture in Iceland. The transaction is subject to regulatory approvals and other customary closing conditions and is expected to close during the 4th Quarter of 2020 or early 2021. The businesses being sold by Textron operate as part of the Textron Systems segment. TRU Simulation + Training Inc. and its operations in Tampa, Florida, which remain focused on the development of simulators for Textron Aviation and rotorcraft platforms, are not included in the sale.
24 Nov 20. Elbit Systems Ltd. (NASDAQ: ESLT and TASE: ESLT) (the “Company” or “Elbit Systems”), reported consolidated results.
Backlog of orders at $10.9bn; Revenues at $1.1bn;
Non-GAAP net income of $73m; GAAP net income of $17m; Non-GAAP net EPS of $1.64; GAAP net EPS of $0.38
Elbit Systems Ltd. (NASDAQ: ESLT and TASE: ESLT) (the “Company” or “Elbit Systems”), the international high technology company, reported today its consolidated results for the quarter ended September 30, 2020.
In this release, the Company is providing US-GAAP results as well as additional non-GAAP financial data, which are intended to provide investors a more comprehensive understanding of the Company’s business results and trends. Unless otherwise stated, all financial data presented is GAAP financial data.
Bezhalel (Butzi) Machlis, President and CEO of Elbit Systems, commented: “I am pleased with the third quarter results, particularly with the improved operating performance in this challenging COVID-19 environment and despite the pandemic’s impact on our Commercial Aviation business, which resulted in a $60 m non-cash impairment of assets in the quarter. We are encouraged by our backlog of orders and the volume of opportunities we are facing around the world, which provides us with confidence in the Company’s future prospects.”
Third Quarter 2020 Results:
Revenues in the third quarter of 2020 were $1,134.2m, as compared to $1,101.2m in the third quarter of 2019.
Non-GAAP gross profit amounted to $302.3m (26.7% of revenues) in the third quarter of 2020, as compared to $290.0m (26.3% of revenues) in the third quarter of 2019. GAAP gross profit in the third quarter of 2020 was $237.4m (20.9% of revenues), as compared to $286.2 m (26.0% of revenues) in the third quarter of 2019. The decrease in GAAP gross profit in the third quarter of 2020 was a result of non-cash expenses related to impairment of assets and inventory write-offs due to the impact of COVID-19, in the amount of approximately $60m. These expenses were eliminated in the non-GAAP results.
Research and development expenses, net were $91.3m (8.0% of revenues) in the third quarter of 2020, as compared to $79.5m (7.2% of revenues) in the third quarter of 2019.
Marketing and selling expenses, net were $71.6m (6.3% of revenues) in the third quarter of 2020, as compared to $75.5m (6.9% of revenues) in the third quarter of 2019.
General and administrative expenses, net were $51.0m (4.5% of revenues) in the third quarter of 2020, as compared to $57.5m (5.2% of revenues) in the third quarter of 2019.
Other operating income, net in the third quarter of 2019 was $28.0m, resulting mainly from capital gains related to sale and lease back of buildings by a subsidiary in Israel.
Non-GAAP operating income was $93.1m (8.2% of revenues) in the third quarter of 2020, as compared to $80.7m (7.3% of revenues) in the third quarter of 2019. GAAP operating income in the third quarter of 2020 was $23.5m (2.1% of revenues), as compared to $101.7m (9.2% of revenues) in the third quarter of 2019.
Financial expenses, net were $9.7m in the third quarter of 2020, as compared to $18.5m in the third quarter of 2019. Financial expenses, net in the third quarter of 2019 included exchange rate differences of approximately $7m related to lease liabilities.
Other income, net in the third quarter of 2020 was $0.5m, as compared to other expenses of $2.8m in the third quarter of 2019.
Taxes on income were $2.2m (effective tax rate of 15.4%) in the third quarter of 2020, as compared to $7.6m (effective tax rate of 9.5%) in the third quarter of 2019.
Equity in net earnings (losses) of affiliated companies and partnerships were earnings of $4.9m in the third quarter of 2020, as compared to losses of $0.5m in the third quarter of 2019. The loss in the third quarter of 2019 was a result of the write-off of a $2.3m investment in an affiliated company in Israel.
Net income attributable to non-controlling interests in the third quarter of 2020 was $0.1m, as compared to $0.3m in the third quarter of 2019.
Non-GAAP net income attributable to the Company’s shareholders in the third quarter of 2020 was $72.7m (6.4% of revenues), as compared to $58.7m (5.3% of revenues) in the third quarter of 2019. GAAP net income attributable to the Company’s shareholders in the third quarter of 2020 was $17.0m (1.5% of revenues), as compared to $72.1m (6.5% of revenues) in the third quarter of 2019.
Non-GAAP diluted net earnings per share attributable to the Company’s shareholders were $1.64 for the third quarter of 2020, as compared to $1.33 for the third quarter of 2019. GAAP diluted earnings per share in the third quarter of 2020 were $0.38, as compared to $1.63 for the third quarter of 2019.
The Company’s backlog of orders as of September 30, 2020 totaled $10,858m, as compared to $9,796m as of September 30, 2019. Approximately 65% of the current backlog is attributable to orders from outside Israel. Approximately 46% of the current backlog is scheduled to be performed during the last quarter of 2020 and during 2021.
Operating cash flow in the nine months ended September 30, 2020 was a positive $106.7m, as compared to a negative operating cash flow in the nine months ended September 30, 2019 in the amount of $140.3m.
Impact of the COVID-19 Pandemic on the Company:
The Coronavirus disease 2019 (COVID-19) was declared a pandemic by the World Health Organization in March 2020. COVID-19 has had significant negative impacts on the worldwide economy, resulting in disruptions to supply chains and financial markets, significant travel restrictions, facility closures and shelter-in-place orders in various locations. Elbit Systems is closely monitoring the evolution of the COVID-19 pandemic and its impacts on the Company’s employees, customers and suppliers, as well as on the global economy.
As we last reported on August 13, 2020, we have been taking a number of actions to protect the safety of our employees as well as maintain business continuity and secure our supply chain. We also reported on a number of activities where we are leveraging our technological capabilities to assist hospital staffs and other first responders protecting our communities from the impact of the pandemic. All of these actions remain ongoing.
We have implemented a series of cost control measures to help limit the financial impact of the pandemic on the Company, in parallel to the measures we are taking to maintain business continuity and deliveries to our customers. We also are working on efficiency initiatives with a number of our suppliers. We continue to evaluate our operations on an ongoing basis in order to adapt to the evolving business environment.
During the first three quarters of 2020 our defense activities, which account for most of our business, were not materially impacted by the pandemic, although some of our businesses are experiencing certain disruptions due to government directed safety measures, travel restrictions and supply chain delays.
The significant slowdown in commercial air traffic, and the expectation that a commercial air traffic recovery to 2019 levels will likely take a number of years, have reduced the demand for products and services for the commercial aviation markets. Additionally, manufacturers of aircrafts for these markets have announced plans to reduce production rates to adapt to the lower demand.
Following a review of the economic impact on the Company’s assets overall, and those assets impacted by the commercial aviation industry in particular, the Company recorded in the third quarter of 2020 non-cash expenses related to impairment of assets and inventory write-offs, due to COVID-19, in the amount of approximately $60 m. These expenses were recorded mainly in the “Cost of Revenues” line item in the Consolidated Statement of Income and were eliminated in the non-GAAP results as a category of expenses that are not part of the Company’s recurring business.
We believe that as of September 30, 2020, Elbit Systems had a healthy balance sheet, adequate levels of cash and access to credit facilities that provide liquidity when necessary. We have given high priority to cash management and adequate cash reserves to run the business.
The extent of the impact of COVID-19 on the Company’s performance depends on future developments including the duration and spread of the pandemic, the measures adopted by governments to limit the spread of the pandemic and resulting actions that may be taken by our customers and our supply chain, all of which are uncertain. As noted in our annual report on Form 20-F, the preparation of financial reports such as our quarterly financial results requires us to make judgments, assumptions and estimates that affect the amounts reported. For our quarterly financial results for the quarter ended September 30, 2020, we considered the economic impact of the COVID-19 pandemic on our critical and significant accounting estimates. The expected impact of the COVID-19 pandemic did not have a material effect on our judgments, assumptions and estimates reflected in the results. However, our future results may differ materially from our estimates. As events continue to evolve in connection with the COVID-19 pandemic, the estimates we use in future periods may change materially.
19 Nov 20. Viasat Picks Up All Of Euro Broadband Services From Eutelsat Including KA-SAT. Viasat Inc. (NASDAQ: VSAT) will strengthen their European presence by purchasing the remaining 51% share of Euro Broadband Infrastructure (EBI), the wholesale broadband services business created as part of Viasat’s former partnering arrangement with Eutelsat Communications.
EBI provides fixed and mobile broadband services on a wholesale basis in the European and Mediterranean markets. In the initial partnering arrangement, Eutelsat contributed its existing European broadband operations to the wholesale business, including ownership of the KA-SAT satellite and related ground infrastructure.
Eutelsat initially owned 51% of EBI and Viasat the remaining 49% interest. The 51% controlling interest in EBI was acquired for 140 m euros, subject to customary net working capital and net debt adjustments. The purchase price will be funded with available cash, resulting in a cash outlay of 50 m euros, net of approximately 90 m euros of EBI’s cash on hand.
The wholesale business adds to Viasat’s established retail broadband services business in Europe where Viasat is offering enhanced home internet service in select European countries, including Spain, Norway and Poland. The Company also maintains a strong mobility presence, providing high-speed, high-quality in-flight connectivity (IFC) to seven European airlines as well as international airlines that fly into Europe.
These initiatives provide a foundation for growth in the retail and mobility services sectors ahead of the launch of the ViaSat-3 global constellation. The second ViaSat-3 class satellite in that constellation will cover Europe, Middle East and Africa (EMEA),
Under the agreement, Eutelsat and its subsidiaries will continue to provide transitional services for a limited period of time to Viasat’s EBI business, including the operation of the ground network for KA-SAT, while Viasat/EBI will provide service continuity to the KA-SAT subscriber base of Eutelsat’s Bigblu Broadband Europe division.
Two years following closing, the 140m euros in consideration may be adjusted up or down by up to 20m euros, depending on the performance of certain EBI financial metrics achieved over this period. The transaction is expected to be accretive to the Company’s earnings and EBITDA performance, and deleveraging with respect to the Company’s debt to trailing twelve months EBITDA ratios.
Closing of this transaction is expected to occur in the first quarter of 2021, subject to customary conditions precedent.
“This transaction accelerates Viasat’s European broadband objectives by strengthening our services footprint and facilitating further market penetration,” said Keven Lippert, CCO, Viasat. “By gaining full control of KA-SAT, Viasat can further expand its growing mobility business as well as establish operations and market presence ahead of our ViaSat-3 service launch, including the introduction of new capabilities enabling high-speed, high-bandwidth ‘ViaSat-3-like’ home internet service plans in select European markets. This earlier market roll-out will enable Viasat to build awareness and market knowledge ahead of the European service launch of the ViaSat-3 satellite platform. Additionally, through 100% ownership of EBI, Viasat will be better equipped to execute its distribution strategy ahead of the ViaSat-3 services launch by onboarding new local partners.” (Source: Satnews)
23 Nov 20. Amentum Completes Acquisition of DynCorp International. Amentum, a leading contractor to U.S. federal and allied governments, announced today that it has closed the acquisition of DynCorp International, a provider of sophisticated aviation, logistics, training, intelligence and operational solutions in over 30 countries worldwide. The deal has accelerated Amentum’s growth into new markets, enhanced and added to its industry leading capabilities, and furthered Amentum’s offering of differentiated solutions to its customers’ most challenging missions. The combination has also created one of the largest providers of mission critical support services to government customers, with 34,000 team members in 105 countries around the world.
“The addition of DynCorp International will make us a powerhouse with an enduring mission focus and market-leading positions in several key areas,” said John Vollmer, Amentum’s CEO. “The enhanced size, scope, and footprint of the combined organization will help ensure sustained delivery excellence to our customers and allow us to pursue transformational opportunities in the market.”
The financial terms of the transaction, originally announced on Sept. 24, were not disclosed.
RBC Capital Markets, LLC acted as financial advisor to Amentum, Cravath, Swaine & Moore LLP acted as legal counsel, and Covington & Burling LLP acted as regulatory and government contracts counsel. Citigroup Global Markets Inc. and Morgan Stanley & Co. LLC acted as DynCorp International’s financial advisors and Schulte Roth & Zabel LLP acted as legal counsel.
About Amentum
Amentum is a premier global services partner supporting critical programs of national significance across defense, security, intelligence, energy, and environment. Amentum draws from a century-old heritage of operational excellence, mission focus, and successful execution underpinned by a strong culture of safety and ethics. Headquartered in Germantown, Md., Amentum employs more than 34,000 people in all 50 states and 105 foreign countries and territories. Visit amentum.com to explore how Amentum delivers excellence for its customers’ most vital missions. (Source: BUSINESS WIRE)
18 Nov 20. Cubic Reports Record Fourth Quarter and Fiscal Year 2020 Results and Provides Fiscal Year 2021 Outlook. Cubic Corporation (NYSE: CUB) (“Cubic” or the “Company”) today announced its financial results for the fourth quarter and fiscal year ended September 30, 2020.
Fiscal Fourth Quarter 2020 Highlights
* Record sales of $475.4m, up 1% year-over-year
* Net income from continuing operations attributable to Cubic of $57.0 m, or $1.82 per share, compared to $41.6m, or $1.33 per share, in the fourth quarter of fiscal 2019
* Adjusted earnings per share of $2.82, up 52% year-over-year
* Record fourth quarter Adjusted EBITDA of $104.2m, up 36% year-over-year
* Net cash from operating activities of $95.1m; Adjusted Free Cash Flow of $87.5m
* Combined Cubic’s two defense business segments to drive customer value, operational effectiveness and cost savings
Full Year Fiscal 2020 Highlights
* Sales of $1.476bn, down 1% year-over-year
* Net loss from continuing operations attributable to Cubic of $3.7m, or $0.12 per share, compared to net income from continuing operations attributable to Cubic of $51.1m, or $1.67 per share, in fiscal 2019; prior year included $32.5m gain on sale of fixed assets
* Adjusted earnings per share of $3.32, up 6% year-over-year
* Record full year Adjusted EBITDA of $158.3m, up 8% year-over-year; Adjusted EBITDA margin of 10.7% increased 90 basis points year-over-year
* Net cash used in operating activities of $8.3m; Adjusted Free Cash Flow of $60.5m
* Year-end backlog of $3.7bn, up 8% year-over-year; book-to-bill ratio of 1.1 across all segments
* Announced guidance for Cubic’s fiscal year ending September 30, 2021: Sales of $1,550 to $1,600m; Adjusted EBITDA of $170 to $190m; Adjusted EPS of $3.00 to $3.60
“We ended the fiscal year on a strong note, delivering record fourth quarter Sales and Adjusted EBITDA and strong Adjusted Free Cash Flow,” said Bradley H. Feldmann, chairman, president and chief executive officer of Cubic Corporation. “We are grateful to our customers for their trust and to our employees for their unwavering commitment to delivering innovative, mission critical solutions, while safeguarding the well-being of their fellow CUBES. We are excited about the future as we embark on our recently announced NextCUBIC strategy, which we expect will drive strong organic sales growth and increase Adjusted EBITDA margins and return on invested capital to the mid-teens by fiscal 2025.” (Source: BUSINESS WIRE)
————————————————————————-
TCI International, Inc., is a wholly-owned subsidiary of SPX Corporation. TCI provides turn-key solutions for spectrum management and monitoring, direction finding, geolocation and communications intelligence to civilian, government, military and intelligence agencies as well as antennas for communications and high-power radio broadcasting. TCI is headquartered in Fremont, California, USA. For more information, visit www.tcibr.com.
————————————————————————-