Aerojet Rocketdyne Holdings, Inc. (NYSE:AJRD) (the “Company”) today
reported results for the three months ended March 31, 2023.
Financial Overview
|
Three months ended March 31, |
|
|
2023 |
|
|
|
2022 |
|
|
(In millions, except percentage and per share
amounts) |
Net sales |
$ |
566.3 |
|
|
$ |
511.1 |
|
Net income |
|
27.8 |
|
|
|
27.8 |
|
Net income as a percentage of net
sales |
|
4.9 |
% |
|
|
5.4 |
% |
Adjusted Net Income (Non-GAAP
measure*) |
|
34.4 |
|
|
|
36.9 |
|
Adjusted Net Income (Non-GAAP
measure*) as a percentage of net sales |
|
6.1 |
% |
|
|
7.2 |
% |
Earnings Per Share (“EPS”) -
Diluted |
|
0.34 |
|
|
|
0.33 |
|
Adjusted EPS (Non-GAAP
measure*) |
|
0.43 |
|
|
|
0.44 |
|
Adjusted EBITDAP (Non-GAAP
measure*) |
|
58.7 |
|
|
|
69.3 |
|
Adjusted EBITDAP (Non-GAAP
measure*) as a percentage of net sales |
|
10.4 |
% |
|
|
13.6 |
% |
Cash used in operating
activities |
|
(32.8 |
) |
|
|
(75.0 |
) |
Free cash flow (Non-GAAP
measure*) |
|
(34.4 |
) |
|
|
(77.2 |
) |
_________* The Company provides Non-GAAP measures as a
supplement to financial results based on accounting principles
generally accepted in the United States (“GAAP”). A reconciliation
of the Non-GAAP measures to the most directly comparable GAAP
measures is included at the end of the release.
Aerojet Rocketdyne Holdings, Inc. increased its top line by 11%
year over year, achieving its highest ever first quarter sales at
$566 million. Backlog of $6.8 billion is an increase of 6% from
$6.4 billion a year ago, with $2.4 billion currently expected to
convert to sales in the next 12 months. Backlog includes an award
announced in the quarter from Lockheed Martin Corporation to power
additional Terminal High Altitude Area Defense (“THAAD”)
interceptors. The award is for lots 13/14 as well as foreign
military sales. The Adjusted EBITDAP margin of 10.4% in the quarter
includes a one-time, out of period adjustment of $6.5 million
related to excess costs on fixed-price contracts in nearly complete
or inactive status as well as $5 million additional stock
compensation related to changes in the fair value of previously
granted stock appreciation rights. Excluding changes in contract
estimates and stock compensation, the Adjusted EBITDAP margin was
13.7% in the first quarter compared with 13.9% in the prior year.
Free cash outflow of $34 million is significantly improved from an
outflow of $77 million in the first quarter of 2022.
“We continue to win important new programs as evidenced by our
steady backlog position, and we started the year strong with our
highest sales quarter ever. We’re also pleased to have entered into
a $216 million cooperative agreement with the Department of
Defense’s Office of Manufacturing Capability Expansion and
Investment Prioritization (“MCEIP”) which will allow us to build
additional modernized facilities, purchase advanced equipment, and
automate manufacturing processes at our Arkansas, Alabama and
Virginia sites,” said Eileen P. Drake, Aerojet Rocketdyne CEO and
president. “These funds will support increased production of rocket
propulsion for Javelin, Stinger and the Guided Multiple Launch
Rocket System (“GMLRS”) and will build on Aerojet Rocketdyne’s
ongoing investments in modern, efficient facilities and innovative
technologies and processes to support the development of next
generation capabilities for Tactical missile systems, advanced
Hypersonics, Strategic Missile and Missile Defense systems,
including the Next Generation Interceptor (“NGI”) and the Sentinel
Ground Based Strategic Deterrent. This agreement reflects the
continued support and commitment to excellence of the Company, our
customers and the end users of our products.”
First quarter of 2023 compared with
first quarter of 2022
The increase in net sales was primarily driven by an increase on
the NGI, RL10, and Patriot GEM-T programs. Net income was unchanged
for the periods.
Backlog
As of March 31, 2023, the Company's total remaining
performance obligations, also referred to as backlog, totaled $6.8
billion. The Company expects to recognize approximately 35%, or
$2.4 billion, of the remaining performance obligations as sales
over the next twelve months, an additional 27% the following twelve
months, and 38% thereafter. A summary of the Company's backlog is
as follows:
|
March 31, 2023 |
|
December 31, 2022 |
|
(In billions) |
Funded backlog |
$ |
3.0 |
|
$ |
3.1 |
Unfunded backlog |
|
3.8 |
|
|
3.7 |
Total backlog |
$ |
6.8 |
|
$ |
6.8 |
Total backlog includes both funded backlog (unfilled orders for
which funding is authorized, appropriated and contractually
obligated by the customer) and unfunded backlog (firm orders for
which funding has not been appropriated). Indefinite delivery and
quantity contracts and unexercised options are not reported in
total backlog. Backlog is subject to funding delays or program
restructurings/cancellations, which are beyond the Company's
control.
L3Harris Technologies, Inc. (“L3Harris”) Merger
Agreement
On December 17, 2022, the Company entered into an Agreement and
Plan of Merger (the “Merger Agreement”), with L3Harris and Aquila
Merger Sub Inc., a Delaware corporation and a wholly-owned
subsidiary of L3Harris (“Merger Sub”), pursuant to which, subject
to the terms and conditions thereof, Merger Sub will merge with and
into the Company (the “Merger”) with the Company being the
surviving corporation and a wholly-owned subsidiary of
L3Harris.
Subject to the terms and conditions set forth in the Merger
Agreement, each share of the Company's common stock outstanding as
of immediately prior to the effective time of the Merger will be
canceled and converted into the right to receive $58.00 in cash,
without interest, plus, if the closing occurs after September 17,
2023, $0.0025 for each calendar day elapsed after such date up to
and including the closing date.
On March 15, 2023, the Company received a request for additional
information from the Federal Trade Commission as part of the
regulatory review process for the acquisition of the Company by
L3Harris.
On March 16, 2023, the stockholders of the Company voted in
favor of approving the Merger Agreement at a special meeting.
Closing of the Merger is anticipated to occur in 2023, subject
to various customary conditions, including regulatory clearance
under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as
amended.
In the three months ended March 31, 2023, the Company recorded
$20.0 million of costs associated with the Merger with L3Harris.
The components of the Merger costs are as follows (in
millions):
Consulting and other professional costs |
$ |
11.4 |
Legal |
|
4.6 |
Internal labor (including $0.8
million of recurring employee costs) |
|
4.0 |
|
$ |
20.0 |
Out of Period Adjustment
During the three months ended March 31, 2023, the Company
recorded an out of period adjustment related to the completeness
and accuracy of its accounting for excess costs on fixed-price
contracts in nearly complete or inactive status. The out of period
adjustment resulted in a decrease in net sales of
$6.0 million, an increase in cost of sales of
$0.5 million, and a decrease in the income tax provision of
$1.7 million in the three months ended March 31, 2023. The
Company has evaluated the effects of this error, both qualitatively
and quantitatively, and does not believe the correction was
material to any current or prior interim or annual periods that
were affected.
Forward-Looking Statements
This release contains certain “forward-looking statements”
within the meaning of the United States Private Securities
Litigation Reform Act of 1995. Such statements in this release and
in subsequent discussions with the Company’s management are based
on management’s current expectations and are subject to risks,
uncertainty and changes in circumstances, which could cause actual
results, performance or achievements to differ materially from
anticipated results, performance or achievements. All statements
contained herein and in subsequent discussions with the Company’s
management that are not clearly historical in nature are forward
looking and the words “anticipate,” “believe,” “expect,”
“estimate,” “plan,” and similar expressions are generally intended
to identify forward-looking statements. A variety of factors could
cause actual results or outcomes to differ materially from those
expected and expressed in the Company’s forward-looking statements.
Important risk factors that could cause actual results or outcomes
to differ from those expressed in the forward-looking statements
include, but are not limited to, the following:
- failure to complete the proposed merger with L3Harris;
- litigation risk and contractual restrictions on the Company
while the proposed merger with L3Harris is pending;
- other effects of the proposed merger with L3Harris, including
its potential to distract management’s focus from the day-to-day
operations of the Company and the negative impact the pending
merger may have on employee retention;
- reductions, delays or changes in U.S. government spending;
- cancellation or material modification of one or more
significant contracts;
- failure of the Company's subcontractors or suppliers to perform
their contractual obligations;
- loss of key qualified suppliers of technologies, components,
and materials;
- impacts of the war in Ukraine;
- the release, unplanned ignition, explosion, or improper
handling of dangerous materials used in the Company's
businesses;
- risks inherent to the real estate market;
- impacts of climate change;
- cost overruns on the Company's contracts that require the
Company to absorb excess costs;
- failure of the Company's information technology infrastructure,
including a successful cyber-attack, accident, unsuccessful
outsourcing of certain information technology and cyber security
functions, or security breach that could result in disruptions to
the Company's operations;
- changes in economic and other conditions in the Sacramento,
California metropolitan area real estate market or changes in
interest rates affecting real estate values in that market;
- the loss of key employees and shortage of available skilled
employees to achieve anticipated growth;
- a strike or other work stoppage or the Company's inability to
renew collective bargaining agreements on favorable terms;
- changes in estimates related to contract accounting;
- the funded status of the Company's defined benefit pension plan
and the Company's obligation to make cash contributions in excess
of the amount that the Company can recover in its current period
overhead rates;
- the substantial amount of debt that places significant demands
on the Company's cash resources and could limit the Company's
ability to borrow additional funds or expand its operations;
- the Company's ability to comply with the financial and other
covenants contained in the Company's debt agreements;
- failure to secure contracts;
- costs and time commitment related to potential and/or actual
acquisition activities may exceed expectations;
- failure to comply with regulations applicable to contracts with
the U.S. government;
- failure of the Company's information technology infrastructure
or failure to perform by the Company's third party service
providers;
- product failures, schedule delays or other problems with
existing or new products and systems;
- the possibility that environmental and other government
regulations that impact the Company become more stringent or
subject the Company to material liability in excess of its
established reserves;
- environmental claims related to the Company's current and
former businesses and operations including the inability to protect
or enforce previously executed environmental agreements;
- reductions in the amount recoverable from environmental
claims;
- significant risk exposures and potential liabilities that are
inadequately covered by insurance;
- limitations associated with our stockholders' ability to obtain
favorable judgement from the Court of Chancery in the State of
Delaware;
- failure to fully remediate the existing material weakness and
maintain effective internal controls;
- business disruptions to the extent not covered by
insurance;
- changes or clarifications to current tax law or procedural
guidance could adversely impact the Company’s tax liabilities and
effective tax rate;
- exposures and uncertainties related to claims and
litigation;
- effects of changes in discount rates and actuarial estimates,
actual returns on plan assets, and government regulations on
defined benefit pension plans;
- inability to protect the Company's patents and proprietary
rights; and
- those risks detailed in the Company's reports filed with the
SEC.
About Aerojet Rocketdyne Holdings,
Inc.
Aerojet Rocketdyne Holdings, Inc., headquartered in El Segundo,
California, is an innovative technology-based manufacturer of
aerospace and defense products and systems, with a real estate
segment that includes activities related to the entitlement, sale,
and leasing of the Company’s excess real estate assets. More
information can be obtained by visiting the Company’s websites at
www.rocket.com or www.aerojetrocketdyne.com.
Contact information:Investors: Kelly Anderson,
investor relations 310.252.8155
Aerojet Rocketdyne
Holdings, Inc. |
|
|
|
Unaudited
Condensed Consolidated Statement of Operations |
|
|
|
Three months ended March 31, |
|
|
2023 |
|
|
|
2022 |
|
(In millions, except per share amounts) |
Net sales |
$ |
566.3 |
|
|
$ |
511.1 |
Operating costs and
expenses: |
|
|
|
Cost of sales (exclusive of items shown separately below) |
|
488.2 |
|
|
|
425.5 |
Selling, general and administrative expense |
|
10.3 |
|
|
|
8.2 |
Depreciation and amortization |
|
13.3 |
|
|
|
14.4 |
Other expense, net |
|
|
|
Merger |
|
20.0 |
|
|
|
— |
Legal matters |
|
— |
|
|
|
16.1 |
Other |
|
1.2 |
|
|
|
4.2 |
Total operating costs and expenses |
|
533.0 |
|
|
|
468.4 |
Operating income |
|
33.3 |
|
|
|
42.7 |
Non-operating: |
|
|
|
Retirement benefits (income) expense |
|
(2.4 |
) |
|
|
0.3 |
Interest income and other |
|
(3.8 |
) |
|
|
0.2 |
Interest expense |
|
5.7 |
|
|
|
3.9 |
Total non-operating (income) expense, net |
|
(0.5 |
) |
|
|
4.4 |
Income before income taxes |
|
33.8 |
|
|
|
38.3 |
Income tax provision |
|
6.0 |
|
|
|
10.5 |
Net income |
$ |
27.8 |
|
|
$ |
27.8 |
Earnings per share of
common stock |
|
|
Basic earnings per share |
$ |
0.34 |
|
|
$ |
0.34 |
Diluted earnings per share |
$ |
0.34 |
|
|
$ |
0.33 |
Weighted average shares of common
stock outstanding, basic |
|
80.6 |
|
|
|
80.2 |
Weighted average shares of common
stock outstanding, diluted |
|
80.7 |
|
|
|
85.8 |
Aerojet Rocketdyne
Holdings, Inc. |
|
|
|
Unaudited Operating
Segment Information |
|
|
|
|
Three months ended March 31, |
|
|
2023 |
|
|
|
2022 |
|
|
(In millions) |
Net Sales: |
|
|
|
Aerospace and Defense |
$ |
565.7 |
|
|
$ |
510.5 |
|
Real Estate |
|
0.6 |
|
|
|
0.6 |
|
Total Net Sales |
$ |
566.3 |
|
|
$ |
511.1 |
|
Segment Performance: |
|
|
|
Aerospace and Defense |
$ |
55.7 |
|
|
$ |
62.7 |
|
Environmental remediation provision adjustments |
|
(0.3 |
) |
|
|
(0.4 |
) |
GAAP/Cost Accounting Standards retirement benefits expense
difference |
|
9.5 |
|
|
|
9.2 |
|
Unusual items |
|
(3.8 |
) |
|
|
(16.3 |
) |
Aerospace and Defense Total |
|
61.1 |
|
|
|
55.2 |
|
Real Estate |
|
(0.3 |
) |
|
|
(0.1 |
) |
Total Segment Performance |
$ |
60.8 |
|
|
$ |
55.1 |
|
Reconciliation of segment
performance to income before income taxes: |
|
|
|
Segment performance |
$ |
60.8 |
|
|
$ |
55.1 |
|
Interest expense |
|
(5.7 |
) |
|
|
(3.9 |
) |
Interest income and other |
|
3.8 |
|
|
|
(0.2 |
) |
Stock-based compensation |
|
(4.5 |
) |
|
|
0.9 |
|
Corporate retirement benefits |
|
0.8 |
|
|
|
— |
|
Corporate and other |
|
(5.2 |
) |
|
|
(8.2 |
) |
Unusual items |
|
(16.2 |
) |
|
|
(5.4 |
) |
Income before income taxes |
$ |
33.8 |
|
|
$ |
38.3 |
|
The Company evaluates its operating segments based on several
factors, of which the primary financial measure is segment
performance. Segment performance represents net sales less
applicable costs, expenses and provisions for unusual items
relating to the segment. Excluded from segment performance are:
corporate income and expenses, interest expense, interest income,
income taxes, and unusual items not related to the segment. The
Company believes that segment performance provides information
useful to investors in understanding its underlying operational
performance.
Aerojet Rocketdyne
Holdings, Inc. |
|
|
|
Unaudited Condensed
Consolidated Balance Sheet |
|
|
|
|
March 31,2023 |
|
December 31, 2022 |
|
(In millions) |
ASSETS |
Current Assets |
|
|
|
Cash and cash equivalents |
$ |
272.5 |
|
|
$ |
322.1 |
|
Restricted cash |
|
3.1 |
|
|
|
3.1 |
|
Marketable securities |
|
11.2 |
|
|
|
10.5 |
|
Accounts receivable |
|
177.4 |
|
|
|
126.6 |
|
Contract assets |
|
417.0 |
|
|
|
451.1 |
|
Other current assets |
|
116.8 |
|
|
|
155.6 |
|
Total Current Assets |
|
998.0 |
|
|
|
1,069.0 |
|
Noncurrent Assets |
|
|
|
Right-of-use assets |
|
51.4 |
|
|
|
54.5 |
|
Property, plant and equipment,
net |
|
411.9 |
|
|
|
420.2 |
|
Recoverable environmental
remediation costs |
|
216.1 |
|
|
|
221.5 |
|
Deferred income taxes |
|
240.1 |
|
|
|
208.7 |
|
Goodwill |
|
161.4 |
|
|
|
161.4 |
|
Intangible assets |
|
26.6 |
|
|
|
28.3 |
|
Other noncurrent assets |
|
207.5 |
|
|
|
208.2 |
|
Total Noncurrent Assets |
|
1,315.0 |
|
|
|
1,302.8 |
|
Total Assets |
$ |
2,313.0 |
|
|
$ |
2,371.8 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
Current Liabilities |
|
|
|
Current portion of long-term
debt |
$ |
14.8 |
|
|
$ |
14.7 |
|
Accounts payable |
|
122.8 |
|
|
|
142.1 |
|
Reserves for environmental
remediation costs |
|
37.9 |
|
|
|
36.9 |
|
Contract liabilities |
|
307.6 |
|
|
|
334.7 |
|
Other current liabilities |
|
167.2 |
|
|
|
218.7 |
|
Total Current Liabilities |
|
650.3 |
|
|
|
747.1 |
|
Noncurrent Liabilities |
|
|
|
Long-term debt |
|
284.9 |
|
|
|
288.4 |
|
Reserves for environmental
remediation costs |
|
247.4 |
|
|
|
253.6 |
|
Pension benefits |
|
227.2 |
|
|
|
229.3 |
|
Operating lease liabilities |
|
44.5 |
|
|
|
46.2 |
|
Other noncurrent liabilities |
|
295.9 |
|
|
|
265.9 |
|
Total Noncurrent Liabilities |
|
1,099.9 |
|
|
|
1,083.4 |
|
Total Liabilities |
|
1,750.2 |
|
|
|
1,830.5 |
|
Commitments and
contingencies |
|
|
|
Stockholders’ Equity |
|
|
|
Common stock |
|
8.1 |
|
|
|
8.0 |
|
Other capital |
|
501.0 |
|
|
|
507.2 |
|
Treasury stock |
|
(63.0 |
) |
|
|
(63.0 |
) |
Retained earnings |
|
204.8 |
|
|
|
176.6 |
|
Accumulated other comprehensive
loss, net of income taxes |
|
(88.1 |
) |
|
|
(87.5 |
) |
Total Stockholders’ Equity |
|
562.8 |
|
|
|
541.3 |
|
Total Liabilities and Stockholders’ Equity |
$ |
2,313.0 |
|
|
$ |
2,371.8 |
|
Aerojet Rocketdyne
Holdings, Inc. |
|
|
|
Unaudited Condensed
Consolidated Statements of Cash Flows |
|
|
|
|
Three months ended March 31, |
|
|
2023 |
|
|
|
2022 |
|
|
(In millions) |
Operating
Activities |
|
|
|
Net income |
$ |
27.8 |
|
|
$ |
27.8 |
|
Adjustments to reconcile net
income to net cash used in operating activities: |
|
|
|
Depreciation and amortization |
|
13.3 |
|
|
|
14.4 |
|
Stock-based compensation |
|
4.5 |
|
|
|
(0.9 |
) |
Retirement benefits, net |
|
(3.3 |
) |
|
|
(6.6 |
) |
Other, net |
|
(0.5 |
) |
|
|
0.9 |
|
Changes in assets and liabilities: |
|
|
|
Accounts receivable |
|
(50.8 |
) |
|
|
(82.8 |
) |
Contract assets |
|
34.1 |
|
|
|
(17.8 |
) |
Other current assets |
|
38.9 |
|
|
|
5.9 |
|
Recoverable environmental remediation costs |
|
5.4 |
|
|
|
5.5 |
|
Other noncurrent assets |
|
0.5 |
|
|
|
6.8 |
|
Accounts payable |
|
(20.3 |
) |
|
|
(19.0 |
) |
Contract liabilities |
|
(27.1 |
) |
|
|
0.2 |
|
Other current liabilities |
|
(49.6 |
) |
|
|
45.3 |
|
Deferred income taxes |
|
(31.2 |
) |
|
|
(45.8 |
) |
Reserves for environmental remediation costs |
|
(5.2 |
) |
|
|
(2.7 |
) |
Other noncurrent liabilities |
|
30.7 |
|
|
|
(6.2 |
) |
Net Cash Used in Operating Activities |
|
(32.8 |
) |
|
|
(75.0 |
) |
Investing
Activities |
|
|
|
Capital expenditures |
|
(1.6 |
) |
|
|
(2.2 |
) |
Net Cash Used in Investing Activities |
|
(1.6 |
) |
|
|
(2.2 |
) |
Financing
Activities |
|
|
|
Dividend payments |
|
(0.5 |
) |
|
|
(1.2 |
) |
Debt repayments |
|
(3.9 |
) |
|
|
(7.1 |
) |
Repurchase of shares for
withholding taxes under equity plans |
|
(14.1 |
) |
|
|
(4.3 |
) |
Proceeds from shares issued under
equity plans |
|
3.3 |
|
|
|
0.3 |
|
Net Cash Used in Financing Activities |
|
(15.2 |
) |
|
|
(12.3 |
) |
Net Decrease in Cash,
Cash Equivalents and Restricted Cash |
|
(49.6 |
) |
|
|
(89.5 |
) |
Cash, Cash Equivalents and
Restricted Cash at Beginning of Period |
|
325.2 |
|
|
|
703.4 |
|
Cash, Cash Equivalents and
Restricted Cash at End of Period |
$ |
275.6 |
|
|
$ |
613.9 |
|
Use of Unaudited Non-GAAP Financial
Measures
Adjusted EBITDAP, Adjusted Net Income and Adjusted EPS
The Company provides the Non-GAAP financial measures of its
performance called Adjusted EBITDAP, Adjusted Net Income and
Adjusted EPS. The Company uses these metrics to measure its
operating and total Company performance. The Company believes that
for management and investors to effectively compare core
performance from period to period, the metrics should exclude items
that are not indicative of, or are unrelated to, results from the
ongoing business operations, such as retirement benefits (pension
and postretirement benefits), significant non-cash expenses, the
impacts of financing decisions on earnings, and items incurred
outside the ordinary, ongoing and customary course of business.
Accordingly, the Company defines Adjusted EBITDAP as GAAP net
income adjusted to exclude interest expense, interest income,
income taxes, depreciation and amortization, retirement benefits
net of amounts that are recoverable under the Company's U.S.
government contracts, and unusual items. Adjusted Net Income and
Adjusted EPS exclude retirement benefits net of amounts that are
recoverable under its U.S. government contracts and unusual items
which the Company does not believe are reflective of such ordinary,
ongoing and customary activities. Adjusted Net Income and Adjusted
EPS do not represent, and should not be considered an alternative
to, net income or diluted EPS as determined in accordance with
GAAP.
|
Three months ended March 31, |
|
|
2023 |
|
|
|
2022 |
|
|
(In millions, except per share and percentage
amounts) |
Net income |
$ |
27.8 |
|
|
$ |
27.8 |
|
Interest expense |
|
5.7 |
|
|
|
3.9 |
|
Interest income and other |
|
(3.8 |
) |
|
|
0.2 |
|
Income tax provision |
|
6.0 |
|
|
|
10.5 |
|
Depreciation and
amortization |
|
13.3 |
|
|
|
14.4 |
|
GAAP retirement benefits (income)
expense |
|
(2.4 |
) |
|
|
0.3 |
|
CAS recoverable retirement
benefits expense |
|
(7.9 |
) |
|
|
(9.5 |
) |
Unusual items |
|
20.0 |
|
|
|
21.7 |
|
Adjusted EBITDAP |
$ |
58.7 |
|
|
$ |
69.3 |
|
Net income as a percentage of net
sales |
|
4.9 |
% |
|
|
5.4 |
% |
Adjusted EBITDAP as a percentage
of net sales |
|
10.4 |
% |
|
|
13.6 |
% |
Net income |
$ |
27.8 |
|
|
$ |
27.8 |
|
GAAP retirement benefits
expense |
|
(2.4 |
) |
|
|
0.3 |
|
CAS recoverable retirement
benefits expense |
|
(7.9 |
) |
|
|
(9.5 |
) |
Unusual items |
|
20.0 |
|
|
|
21.7 |
|
Income tax impact of adjustments
(1) |
|
(3.1 |
) |
|
|
(3.4 |
) |
Adjusted Net Income |
$ |
34.4 |
|
|
$ |
36.9 |
|
Diluted EPS |
$ |
0.34 |
|
|
$ |
0.33 |
|
Adjustments |
|
0.09 |
|
|
|
0.11 |
|
Adjusted EPS |
$ |
0.43 |
|
|
$ |
0.44 |
|
Diluted weighted average shares,
as reported and adjusted |
|
80.7 |
|
|
|
85.8 |
|
_________
(1) The income tax impact is calculated using the federal
and state statutory rates in the corresponding period.
Free Cash Flow
The Company also provides the Non-GAAP financial measure of Free
Cash Flow. Free Cash Flow is defined as cash flow from operating
activities less capital expenditures. Free Cash Flow should not be
considered in isolation, as a measure of residual cash flow
available for discretionary purposes, or as an alternative to cash
flows from operations presented in accordance with GAAP. The
Company uses Free Cash Flow, both in presenting its results to
stakeholders and the investment community, and in the Company's
internal evaluation and management of the business. Management
believes that this financial measure is useful because it provides
supplemental information to assist investors in viewing the
business using the same tools that management uses to evaluate
progress in achieving the Company's goals. The following table
summarizes Free Cash Flow:
|
Three months ended March 31, |
|
|
2023 |
|
|
|
2022 |
|
|
(In millions) |
Net cash used in operating
activities |
$ |
(32.8 |
) |
|
$ |
(75.0 |
) |
Capital expenditures |
|
(1.6 |
) |
|
|
(2.2 |
) |
Free Cash Flow |
$ |
(34.4 |
) |
|
$ |
(77.2 |
) |
Because the Company's method for calculating these Non-GAAP
measures may differ from other companies’ methods, the Non-GAAP
measures presented above may not be comparable to similarly titled
measures reported by other companies. These measures are not
recognized in accordance with GAAP, and the Company does not intend
for this information to be considered in isolation or as a
substitute for GAAP measures.
Grafico Azioni Aerojet Rocketdyne (NYSE:AJRD)
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