- Book-to-bill ratio of greater than 1.0x; Revenue from international
customers up 11 percent over full-year 2013
- Fourth quarter earnings from continuing operations up 43 percent
over same period in 2013; Full-year earnings from continuing
operations up 29 percent over 2013
- Year-end cash position of $510 million
Company Website:
http://www.exelisinc.com
MCLEAN, Va. -- (Business Wire)
Exelis (NYSE: XLS) reported 2014 financial results for the fourth
quarter and full year of 2014. Fourth-quarter revenue from continuing
operations was $933 million, a one percent increase from the fourth
quarter of 2013. Fourth-quarter earnings from continuing operations were
$0.45 per share, a 45 percent increase from the fourth quarter of 2013.
Adjusted earnings from continuing operations, which exclude costs
related to the spin-off of Vectrus, were $0.47 per share for the fourth
quarter, up 38 percent from the same period in 2013. The company
generated $112 million in free cash flow in the fourth quarter of 2014.
For the full-year 2014, Exelis reported revenue from continuing
operations of $3.3 billion, a 2 percent decline from 2013, and earnings
from continuing operations of $1.19 per share, a 28 percent increase
compared to 2013. Adjusted earnings were $1.23 per share, 29 percent
greater than 2013. Earnings and adjusted earnings for the full year were
driven by lower restructuring charges, lower SG&A expenses and lower
full year tax expense. Free cash flow for the year was $114 million,
which reflects $145 million in payments made by the company to its
pension plans.
Results from continuing operations reflect the September spin-off
of the former Mission Systems business into Vectrus, an independent,
publicly traded company. Exelis shareholders at the time of the spin-off
received one share of Vectrus common stock for every 18 shares of Exelis
common stock held on the spin-off record date.
The company secured $3.3 billion in orders in 2014, earning significant
new business within our four Strategic Growth Platforms, and continuing
steady orders in our more mature business areas. Key new business for
the year included:
-
More than $250 million in orders from NASA and a Japanese customer for
satellite payloads that will monitor climate conditions and improve
weather forecasting;
-
Nearly $200 million in contracts for airborne electronic warfare
equipment from the U.S. Navy, Turkey, Pakistan and other international
customers, as well as electronic support measures technologies that
will provide Swedish submarines with situational awareness,
self-protection and surveillance capabilities;
-
More than $200 million in orders, primarily from international
customers, for our battle-tested, world-class night vision and
networked communications equipment; and
-
Continued expansion of our composite aerostructures business with key
customers, including Airbus, Lockheed Martin and Boeing.
“We delivered results in line with full-year expectations in 2014,
increased our international sales, continued to book strategic new
business and ended the year in a very favorable cash position – all
while successfully executing the spin-off of Vectrus,” said Exelis CEO
and President David F. Melcher. “Looking to the future, I believe the
merger agreement, signed February 5th with Harris Corporation,
represents an excellent opportunity for Exelis businesses and employees
to achieve our stated growth strategy and bring our customers and
shareholders greater capabilities and value.”
Segment Results
C4ISR Electronics and Systems
C4ISR Electronics and Systems fourth-quarter 2014 revenue was $636
million, up 2 percent from the same period in 2013. Full-year revenue
for the segment was $2.1 billion, nearly identical to 2013, as more
volume in airborne and ship-based electronic warfare equipment was
somewhat offset by declines in sales of communications solutions
products. Fourth-quarter 2014 adjusted operating income was $107
million, up 19 percent from the fourth quarter of 2013. Full-year 2014
adjusted operating income was $273 million, 33 percent better than 2013,
driven by decreased restructuring and SG&A costs.
Information and Technical Services
Information and Technical Services fourth-quarter 2014 revenue from
continuing operations was $297 million, a decrease of 1 percent from the
same period in 2013. Full-year revenue for the segment was $1.1 billion,
a 6 percent decline from 2013, driven by lower activity on the U.S. Air
Force Spacelift Range Services program and several other services
contracts, partially offset by increased revenue from Federal Aviation
Administration programs. Fourth-quarter adjusted operating income from
continuing operations was $38 million, up 19 percent from the fourth
quarter of 2013. Full-year 2014 adjusted operating income was $135
million, 5 percent higher than 2013 due to improved contract
performance, operational efficiencies and lower restructuring costs.
About Exelis
Exelis is a diversified, top-tier global aerospace, defense, information
and services company that leverages a greater than 50-year legacy of
deep customer knowledge and technical expertise to deliver affordable,
mission-critical solutions for global customers. Exelis is a leader in
positioning and navigation, sensors, air traffic management solutions,
image processing and distribution, communications and information
systems; and focused on strategic growth in the areas of critical
networks, ISR and analytics, electronic warfare and composite
aerostructures. Headquartered in McLean, Virginia, Exelis employs
approximately 10,000 people and generated 2014 sales of approximately
$3.3 billion. For more information, visit our website at www.exelisinc.com
or connect with us on Facebook, Twitter, LinkedIn and YouTube. For more
information, visit our website at www.exelisinc.com
or connect with us on Facebook,
Twitter
and YouTube.
“Safe Harbor” Statement under the Private
Securities Litigation Reform Act of 1995
This communication contains “forward-looking” statements within the
meaning of Section 21E of the Securities Exchange Act of 1934, as
amended, and the Private Securities Litigation Reform Act of 1995, known
as the PSLRA. These statements, as they relate to Exelis and Harris, the
management of either such company or the proposed transaction between
Exelis and Harris, involve risks and uncertainties that may cause
results to differ materially from those set forth in the statements.
These statements are based on current plans, estimates and projections,
and therefore, you are cautioned not to place undue reliance on them. No
forward-looking statement can be guaranteed, and actual results may
differ materially from those projected. Exelis and Harris undertake no
obligation to publicly update any forward-looking statement, whether as
a result of new information, future events or otherwise, except to the
extent required by law. Forward-looking statements are not historical
facts, but rather are based on current expectations, estimates,
assumptions and projections about the business and future financial
results, and other legal, regulatory and economic developments. We use
words such as “anticipates,” “believes,” “plans,” “expects,” “projects,”
“future,” “intends,” “may,” “will,” “should,” “could,” “estimates,”
“predicts,” “potential,” “continue,” “guidance,” and similar expressions
to identify these forward-looking statements that are intended to be
covered by the safe harbor provisions of the PSLRA. Actual results could
differ materially from the results contemplated by these forward-looking
statements due to a number of factors, including: the risk that the
businesses will not be integrated successfully; the risk that the cost
savings and any other synergies from the transaction may not be fully
realized or may take longer to realize than expected; restrictions
imposed by outstanding indebtedness and indebtedness incurred in
connection with the transactions; worldwide and regional economic,
business, and political conditions; changes in customer demand and
requirements; business cycles and other industry conditions; the timing
of new services or facilities; ability to compete with others in the
industries in which Exelis and Harris operate; effects of compliance
with laws; fluctuations in the value of currencies in major areas where
operations are located; matters relating to operating facilities; effect
and costs of claims (known or unknown) relating to litigation and
environmental remediation; ability to develop and further enhance
technology and proprietary know-how; ability to attract and retain key
personnel; escalation in the cost of providing employee health care;
disruption from the transaction making it more difficult to maintain
relationships with customers, employees or suppliers; the failure to
obtain governmental approvals of the transaction on the proposed terms
and schedule, and any conditions imposed on the combined company in
connection with consummation of the merger; the failure to obtain
approval of the merger by the shareholders of Exelis and the failure to
satisfy various other conditions to the closing of the merger
contemplated by the merger agreement; and the risks that are described
from time to time in Exelis’ and Harris’ respective reports filed with
the SEC, including Exelis’ annual report on Form 10-K for the year ended
December 31, 2014, and Harris’ annual report on Form 10-K for the year
ended June 27, 2014 and quarterly reports on Form 10-Q for the quarters
ended September 26, 2014, and January 2, 2015, in each case, as such
reports may have been amended. This document speaks only as of its date,
and Exelis and Harris each disclaims any duty to update the information
herein.
Additional Information and Where to Find It
In connection with the proposed transaction, a registration statement on
Form S-4 will be filed with the SEC. EXELIS SHAREHOLDERS ARE ENCOURAGED
TO READ THE REGISTRATION STATEMENT AND ANY OTHER RELEVANT DOCUMENTS
FILED WITH THE SEC, INCLUDING THE PROXY STATEMENT/PROSPECTUS THAT WILL
BE PART OF THE REGISTRATION STATEMENT, WHEN THEY BECOME AVAILABLE,
BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED
MERGER. The final proxy statement/prospectus will be mailed to
shareholders of Exelis. Investors and security holders will be able to
obtain the documents free of charge at the SEC’s web site, www.sec.gov,
from Harris at its web site, www.Harris.com,
or from Exelis at its web site, www.Exelisinc.com,
or 1650 Tysons Blvd. Suite 1700, McLean, VA 22102, attention: Corporate
Secretary.
Participants In Solicitation
Exelis and Harris and their respective directors and executive officers
and other members of management and employees may be deemed to be
participants in the solicitation of proxies in respect of the proposed
merger. Information concerning Exelis’ participants is set forth in the
proxy statement, dated March 26, 2014, for Exelis’ 2014 annual meeting
of shareholders as filed with the SEC on Schedule 14A. Information
concerning Harris’ participants is set forth in the proxy statement,
dated September 9, 2014, for Harris’ 2014 annual meeting of shareholders
as filed with the SEC on Schedule 14A. Additional information regarding
the interests of participants of Exelis and Harris in the solicitation
of proxies in respect of the proposed merger will be included in the
registration statement and proxy statement/prospectus and other relevant
materials to be filed with the SEC when they become available.
This communication shall not constitute an offer to sell or the
solicitation of an offer to sell or the solicitation of an offer to buy
any securities, nor shall there be any sale of securities in any
jurisdiction in which such offer, solicitation or sale would be unlawful
prior to registration or qualification under the securities laws of any
such jurisdiction. No offer of securities shall be made except by means
of a prospectus meeting the requirements of Section 10 of the Securities
Act of 1933, as amended.
|
EXELIS INC. |
CONSOLIDATED STATEMENTS OF OPERATIONS |
(unaudited) |
|
| |
| |
| |
(IN MILLIONS, EXCEPT PER SHARE AMOUNTS) | |
Year ended December 31,
|
|
| 2014 |
|
2013
|
|
2012
|
Product revenue
| | $ | 2,142 | | |
$
|
2,136
| |
$
|
2,487
|
Service revenue
|
|
| 1,135 |
|
|
|
1,205
|
|
|
1,243
|
Total revenue
|
|
| 3,277 |
|
|
|
3,341
|
|
|
3,730
|
Costs of product revenue
| | | 1,538 | | | |
1,517
| | |
1,726
|
Costs of service revenue
| | | 898 | | | |
967
| | |
1,027
|
Selling, general and administrative expenses
| | | 372 | | | |
395
| | |
459
|
Research and development expenses
| | | 60 | | | |
54
| | |
67
|
Restructuring and asset impairment charges
|
|
| 12 |
|
|
|
80
|
|
|
19
|
Operating income
| | | 397 | | | |
328
| | |
432
|
Interest expense, net
| | | 37 | | | |
37
| | |
37
|
Other expense (income), net
|
|
| (5 | ) |
|
|
3
|
|
|
3
|
Income from continuing operations before income tax expense
| | | 365 | | | |
288
| | |
392
|
Income tax expense
|
|
| 135 |
|
|
|
110
|
|
|
146
|
Income from continuing operations
| | | 230 | | | |
178
| | |
246
|
Income from discontinued operations, net of tax
|
|
| 19 |
|
|
|
103
|
|
|
84
|
Net income |
| $ | 249 |
|
|
$
|
281
|
|
$
|
330
|
Earnings Per Share
| | | | | | |
Basic
| | | | | | |
Continuing Operations
| | $ | 1.22 | | |
$
|
0.94
| |
$
|
1.31
|
Discontinued Operations
| | $ | 0.10 | | |
$
|
0.55
| |
$
|
0.45
|
Net income
| | $ | 1.32 | | |
$
|
1.49
| |
$
|
1.76
|
Diluted
| | | | | | |
Continuing Operations
| | $ | 1.19 | | |
$
|
0.93
| |
$
|
1.30
|
Discontinued Operations
| | $ | 0.10 | | |
$
|
0.54
| |
$
|
0.45
|
Net income
| | $ | 1.29 | | |
$
|
1.46
| |
$
|
1.75
|
Weighted average common shares outstanding – basic
| | | 188.3 | | | |
188.5
| | |
187.4
|
Weighted average common shares outstanding – diluted
| | | 193.2 | | | |
192.0
| | |
188.6
|
Cash dividends declared per common share
|
| $ | 0.41 |
|
|
$
|
0.41
|
|
$
|
0.41
|
| | | | | | | | |
|
|
EXELIS INC. |
CONSOLIDATED BALANCE SHEETS |
(unaudited) |
|
| |
| |
| | | |
|
(IN MILLIONS) | |
December 31,
|
|
| 2014 |
|
2013
|
Assets | | | | |
Current assets
| | | | |
Cash and cash equivalents
| | $ | 510 | | |
$
|
459
| |
Receivables, net
| | | 824 | | | |
715
| |
Inventories, net
| | | 225 | | | |
240
| |
Deferred tax asset
| | | 56 | | | |
38
| |
Other current assets
| | | 47 | | | |
59
| |
Current assets of discontinued operations
|
|
|
—
|
|
|
|
229
|
|
Total current assets
|
|
| 1,662 |
|
|
|
1,740
|
|
Plant, property and equipment, net
| | | 437 | | | |
489
| |
Goodwill
| | | 1,976 | | | |
1,967
| |
Other intangible assets, net
| | | 150 | | | |
167
| |
Deferred tax asset
| | | 566 | | | |
300
| |
Other non-current assets
| | | 87 | | | |
77
| |
Non-current assets of discontinued operations
|
|
|
—
|
|
|
|
144
|
|
Total non-current assets
|
|
| 3,216 |
|
|
|
3,144
|
|
Total assets |
| $ | 4,878 |
|
|
$
|
4,884
|
|
Liabilities and Shareholders' Equity | | | | |
Current liabilities
| | | | |
Accounts payable
| | $ | 238 | | |
$
|
257
| |
Advance payments and billings in excess of costs
| | | 242 | | | |
290
| |
Compensation and other employee benefits
| | | 170 | | | |
153
| |
Other accrued liabilities
| | | 124 | | | |
149
| |
Current liabilities of discontinued operations
|
|
|
—
|
|
|
|
195
|
|
Total current liabilities
|
|
| 774 |
|
|
|
1,044
|
|
Defined benefit plans
| | | 2,072 | | | |
1,407
| |
Long-term debt
| | | 649 | | | |
649
| |
Deferred tax liabilities
| | | 2 | | | |
2
| |
Other non-current liabilities
| | | 134 | | | |
127
| |
Non-current liabilities of discontinued operations
|
|
|
—
|
|
|
|
3
|
|
Total non-current liabilities
|
|
| 2,857 |
|
|
|
2,188
|
|
Total liabilities
|
|
| 3,631 |
|
|
|
3,232
|
|
Commitments and contingencies
| | | | |
Shareholders' equity
| | | | |
Common stock
| | | 2 | | | |
2
| |
Additional paid-in capital
| | | 2,607 | | | |
2,623
| |
Treasury stock
| | | (128 | ) | | |
(16
|
)
|
Retained earnings
| | | 645 | | | |
475
| |
Accumulated other comprehensive loss
|
|
| (1,879 | ) |
|
|
(1,432
|
)
|
Total shareholders' equity
|
|
| 1,247 |
|
|
|
1,652
|
|
Total liabilities and shareholders' equity |
| $ | 4,878 |
|
|
$
|
4,884
|
|
| | | | | |
|
|
| |
| |
| |
EXELIS INC. |
CONSOLIDATED STATEMENTS OF CASH FLOWS |
(unaudited) |
| | | | | |
|
| | | | | |
|
(IN MILLIONS) | |
Year Ended December 31,
|
|
| 2014 |
|
2013
|
|
2012
|
Operating activities | | | | | | |
Net income
| | $ | 249 | | |
$
|
281
| | |
$
|
330
| |
Less income from discontinued operations
|
|
| 19 |
|
|
|
103
|
|
|
|
84
|
|
Income from continuing operations
| | | 230 | | | |
178
| | | |
246
| |
Adjustments to reconcile net income to net cash provided by
operating activities from continuing operations:
| | |
Depreciation and amortization
| | | 106 | | | |
107
| | | |
127
| |
Stock-based compensation
| | | 26 | | | |
32
| | | |
24
| |
Restructuring and asset impairment charges
| | | 12 | | | |
80
| | | |
19
| |
Payments for restructuring
| | | (26 | ) | | |
(57
|
)
| | |
(20
|
)
|
Defined benefit plans expense
| | | 58 | | | |
87
| | | |
43
| |
Defined benefit plans payments
| | | (145 | ) | | |
(206
|
)
| | |
(290
|
)
|
Change in assets and liabilities
| | | | | | |
Change in receivables
| | | (107 | ) | | |
(49
|
)
| | |
18
| |
Change in inventories
| | | 18 | | | |
41
| | | |
51
| |
Change in other assets
| | | 20 | | | |
(20
|
)
| | |
(2
|
)
|
Change in accounts payable
| | | (19 | ) | | |
(24
|
)
| | |
(22
|
)
|
Change in advance payments and billings in excess of costs
| | | (48 | ) | | |
(20
|
)
| | |
(52
|
)
|
Change in deferred taxes
| | | 13 | | | |
144
| | | |
120
| |
Change in other liabilities
| | | 26 | | | |
(100
|
)
| | |
(3
|
)
|
Other, net
|
|
| (4 | ) |
|
|
1
|
|
|
|
2
|
|
Net cash provided by operating activities from continuing
operations |
|
| 160 |
|
|
|
194
|
|
|
|
261
|
|
Investing activities | | | | | | |
Capital expenditures
| | | (53 | ) | | |
(76
|
)
| | |
(116
|
)
|
Proceeds from the sale of assets
| | | 9 | | | |
9
| | | |
2
| |
Acquisitions, net of cash acquired
| | | (23 | ) | | |
(16
|
)
| | |
(43
|
)
|
Other, net
|
|
| 1 |
|
|
|
2
|
|
|
|
1
|
|
Net cash used in investing activities from continuing operations |
|
| (66 | ) |
|
|
(81
|
)
|
|
|
(156
|
)
|
Financing activities | | | | | | |
Dividends paid
| | | (80 | ) | | |
(58
|
)
| | |
(77
|
)
|
Common stock repurchased
| | | (112 | ) | | |
(16
|
)
| | |
—
| |
Proceeds from the exercise of stock options
| | | 18 | | | |
23
| | | |
19
| |
Net cash distribution received from Vectrus
| | | 133 | | | |
—
| | | |
—
| |
Transfer (to) from Vectrus, net
| | | (32 | ) | | |
4
| | | |
(4
|
)
|
Other, net
|
|
| 1 |
|
|
|
—
|
|
|
|
1
|
|
Net cash used in financing activities from continuing operations |
|
| (72 | ) |
|
|
(47
|
)
|
|
|
(61
|
)
|
Exchange rate effects on cash and cash equivalents
| | | (7 | ) | | |
1
| | | |
7
| |
Net cash from discontinued operations
|
|
| 36 |
|
|
|
114
|
|
|
|
121
|
|
Net change in cash and cash equivalents
| | | 51 | | | |
181
| | | |
172
| |
Cash and cash equivalents – beginning of year
|
|
| 459 |
|
|
|
278
|
|
|
|
106
|
|
Cash and cash equivalents – end of year |
| $ | 510 |
|
|
$
|
459
|
|
|
$
|
278
|
|
Supplemental disclosures of cash flow information | | | | | | |
Cash paid during the year for
| | | | | | |
Income taxes (net of refunds received)
| | $ | 70 | | |
$
|
97
| | |
$
|
28
| |
Interest
|
| $ | 34 |
|
|
$
|
34
|
|
|
$
|
37
|
|
| | | | | |
|
Key Performance Indicators and Non-GAAP Financial Measures
Management reviews key performance indicators including revenue, segment
operating income and margins, orders growth, and backlog, among other
metrics on a regular basis. In addition, we consider certain additional
measures to be useful to management and investors evaluating our
operating performance for the periods presented, and provide a tool for
evaluating our ongoing operations, liquidity and management of assets.
This information can assist investors in assessing our financial
performance and measures our ability to generate capital for deployment
among competing strategic alternatives and initiatives, including, but
not limited to, acquisitions and debt repayment. These metrics, however,
are not measures of financial performance under accounting principles
generally accepted in the United States of America (GAAP) and should not
be considered a substitute for revenue, operating income, income from
continuing operations, or net cash from continuing operations as
determined in accordance with GAAP. We consider the following non-GAAP
measure, which may not be comparable to similarly titled measures
reported by other companies, to be a key performance indicator:
“Adjusted net income from continuing operations” defined as net
income from continuing operations, adjusted to exclude items that
include, but are not limited to, significant charges or credits that
impact current results, but are not related to our ongoing operations,
unusual and infrequent non-operating items and non-operating tax
settlements or adjustments.
“Segment adjusted operating income from continuing operations” defined
as operating income from continuing operations of our two segments,
adjusted to exclude items that include, but are not limited to,
significant charges or credits that impact current results, but are not
related to our ongoing operations, unusual and infrequent non-operating
items and non-operating tax settlements or adjustments.
“Segment adjusted operating margin from continuing operations” defined
as segment adjusted operating income from continuing operations as
defined above, divided by revenue from continuing operations.
“Free cash flow from continuing operations” defined as GAAP net
cash provided by operating activities from continuing operations, less
capital expenditures plus separation costs. This metric does not include
dividend payments.
|
Exelis Inc. |
Non-GAAP Financial Measures - Adjusted Net Income & Adjusted EPS |
|
| |
| |
| |
| |
| |
Three Months Ended
| |
Twelve Months Ended
|
| |
December 30,
| |
December 30,
|
($ million, except per share)
|
| 2014 |
|
2013
| | 2014 |
|
2013
|
Net Income from Continuing Operations
| | | 87 | | |
61
| | | 230 | | |
178
|
|
|
|
|
| |
|
|
|
Separation Costs for Vectrus Spin-off, net of tax
| | | 3 | | |
-
| | | 7 | | |
-
|
Tax-related special items for the 2011 ITT Spin-off, net of tax
|
|
| - |
|
|
5
| |
| - |
|
|
5
|
Adjusted Net Income from Continuing Operations
|
|
| 90 |
|
|
66
| |
| 237 |
|
|
183
|
|
|
|
|
| |
|
|
|
Net Income from Continuing Operations per fully diluted share
| | $ | 0.45 | |
$
|
0.31
| | $ | 1.19 | |
$
|
0.93
|
Adjusted Net Income from Continuing Operations per fully diluted
share
|
| $ | 0.47 |
|
$
|
0.34
| | $ | 1.23 |
|
$
|
0.95
|
| | | | | | | |
|
Weighted Average Shares Outstanding, Diluted
| | | 191.3 | | |
194.2
| | | 193.2 | | |
192.0
|
| | | | | | | |
|
|
Exelis Inc. |
Non-GAAP Financial Measures - Adjusted Segment Operating Income &
Operating Margin |
|
| |
| |
| |
| |
| |
Three Months Ended
| |
Twelve Months Ended
|
| |
December 30,
| |
December 30,
|
($ million)
|
| 2014 |
|
2013
| | 2014 |
|
2013
|
Revenue from Continuing Operations
| | 933 | |
922
| | 3,277 | |
3,341
|
C4ISR
| | 636 | |
621
| | 2,142 | |
2,136
|
I&TS
|
| 297 |
|
301
| | 1,135 |
|
1,205
|
|
|
|
|
| |
|
|
|
Segment Operating Income from Continuing Operations, As Reported
| | 141 | |
116
| | 397 | |
328
|
C4ISR
| | 105 | |
86
| | 266 | |
202
|
I&TS
|
| 36 |
|
30
| | 131 |
|
126
|
|
|
|
|
| |
|
|
|
Separation Costs for Vectrus Spin-off and Tax-related special items
for the 2011 ITT Spin-off, pre tax
| | 4 | |
6
| | 11 | |
6
|
C4ISR
| | 2 | |
4
| | 7 | |
4
|
I&TS
|
| 2 |
|
2
| | 4 |
|
2
|
|
|
|
|
| |
|
|
|
Segment Operating Income from Continuing Operations, Adjusted
| | 145 | |
122
| | 408 | |
334
|
C4ISR
| | 107 | |
90
| | 273 | |
206
|
I&TS
|
| 38 |
|
32
| | 135 |
|
128
|
|
|
|
|
| |
|
|
|
Segment Operating Margin from Continuing Operations, As Reported
| | | | | | |
C4ISR
| | 16.5% | |
13.8%
| | 12.4% | |
9.5%
|
I&TS
|
| 12.1% |
|
10.0%
| | 11.5% |
|
10.5%
|
|
|
|
|
| |
|
|
|
Segment Operating Margin from Continuing Operations, Adjusted
| |
| |
| |
| |
|
C4ISR
| | 16.8% | |
14.5%
| | 12.7% | |
9.6%
|
I&TS
|
| 12.8% |
|
10.6%
| | 11.9% |
|
10.6%
|
|
|
|
|
| |
|
|
|
Operating Margin from Continuing Operations, As Reported
| | 15.1% | |
12.6%
| | 12.1% | |
9.8%
|
Operating Margin from Continuing Operations, Adjusted
|
| 15.5% |
|
13.2%
| | 12.5% |
|
10.0%
|
| | | | | | | |
|
Exelis Inc. |
Free Cash Flow Year-to-Date |
|
| |
| |
| | Twelve Months Ended | |
Twelve Months Ended
|
| | December 30, |
|
December 30,
|
($ million)
|
| 2014 |
|
2013
|
Cash Flow From Operating Activities from Continuing Operations
|
| 160 |
|
|
194
|
|
| | | |
|
Subtract:
|
|
|
|
|
Capital Expenditures
|
| (53 | ) |
|
(76
|
)
|
Free Cash Flow from Continuing Operations
|
| 107 |
|
|
118
|
|
| | | |
|
Add:
|
|
|
|
|
Separation Costs for Vectrus Spin-off, net of tax
|
| 7 |
|
|
-
|
|
Free Cash Flow from Continuing Operations, as Adjusted
|
| 114 |
|
|
118
|
|
| | | | | |
|
|
Exelis Inc. |
Free Cash Flow Quarter-to-Date |
|
| |
| |
| |
| | | | | |
|
| | Three Months Ended | |
Twelve Months Ended
| |
Nine Months Ended
|
| | December 30, | |
December 30,
|
|
September 30,
|
($ million)
|
| 2014 | |
2014
|
|
2014
|
Cash Flow From Operating Activities from Continuing Operations
|
| 127 |
| |
160
|
|
|
33
|
|
| | | | | |
|
Subtract:
|
|
| |
|
|
|
Capital Expenditures
| | (18 | ) | |
(53
|
)
| |
(35
|
)
|
|
|
| |
|
|
|
Free Cash Flow from Continuing Operations
|
| 109 |
| |
107
|
|
|
(2
|
)
|
| | | | | |
|
Add:
|
|
| |
|
|
|
Separation Costs for Vectrus Spin-off, net of tax
|
| 3 |
| |
7
|
|
|
4
|
|
Free Cash Flow from Continuing Operations, as Adjusted
|
| 112 |
| |
114
|
|
|
2
|
|
| | | | | |
|
Contacts:
Exelis
Investors
Katy Herr, 703-790-6376
Katy.Herr@exelisinc.com
or
Media
B.J.
Talley, 703-790-6349
William.Talley@exelisinc.com
Source: Exelis
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