07 Nov 03. DRS Technologies, Inc. (NYSE: DRS – News) today reported record financial results for the second quarter and first six months of fiscal 2004. Results for both periods included significant gains in revenues, operating income and net earnings. Second quarter record new orders for products and services increased funded backlog at the end of the period to the highest level in the company’s history.
Fiscal 2004 Second Quarter Results
For the second quarter ended September 30, 2003, revenues were $206.2m
, a 28 percent increase over revenues of $161.2m for last year’s second quarter. Record revenues for the fiscal 2004 three-month period were attributable to solid organic growth and acquisitions completed in fiscal 2003.
Operating income of $21.2m was 27 percent higher than the $16.7m reported for the same quarter of fiscal 2003. Fiscal 2004 second quarter record operating income was attributable to the higher overall sales volume. Operating income as a percentage of sales was 10.3 percent. Net earnings before interest, taxes, depreciation and amortization (EBITDA) were $26.4m for the second quarter, 27 percent higher than EBITDA of $20.9m reported for the comparable period a year earlier.
Net earnings for the three-month period were 23 percent higher than a year
ago at $9.4m, or $0.41 per diluted share, on 23.0 million diluted shares outstanding. Second quarter net earnings last year were $7.7m, or $0.44 per diluted share, on 17.6 million diluted shares outstanding. Free cash flow (cash flow from operations less capital expenditures) for the second quarter was strong at $19.2 million.
“DRS’s fiscal 2004 second quarter operating results were excellent,” said Mark S. Newman, chairman, president and chief executive officer of DRS Technologies. “The company achieved new records for the period in sales and profitability, and robust new order flow produced record backlog, positioning the company for a strong second half.”
New Contract Awards and Backlog
DRS secured a second quarter record of $220.5m in new orders for products and services during the period, reflecting an increase of 69 percent above $130.6m in bookings for the comparable prior-year period. For the first half of fiscal 2004, the company was awarded $413.9m in new contracts, 53 percent higher than the same six-month period in the previous year. Funded backlog at September 30, 2003 climbed to $899.8m, 38 percent above backlog of $651.5 million at the end of the second quarter of fiscal 2003.
New contract awards during the second quarter included:
$46m in awards for computers and peripheral equipment supporting battlefield digitization efforts for U.S. Army, international military and U.S. intelligence operations. The largest contract was associated with the United Kingdom’s BOWMAN program; $45m in new orders for infrared sighting and targeting systems supporting the U.S. Army and U.S. Navy. The most significant bookings related to the Mast Mounted Sight, Javelin Anti-Tank Weapon System and Improved Bradley Acquisition Subsystem programs; $43m in funding for power generation, distribution, motor control and propulsion systems primarily for U.S. Navy surface ships and submarines, including significant orders supporting the Navy’s next generation DD(X) destroyer, and ship control systems and nuclear
products for Navy ships, carriers and submarines;$26m in contracts for infrared sensors and advanced electro-optical technology development supporting weapons, remote surveillance, soldier systems and electronic countermeasures;$23m in new orders to provide engineering and manufacturing services for combat display systems associated with the U.S. Navy’s AN/UYQ-70 Advanced Display Systems program supporting ships, aircraft and submarines; and $22m in new contracts for communications systems, high-speed digital imaging systems, avionics and mission recording systems for U.S. and interna