Alliant Techsystems Inc. (ATK, Financial) filed Quarterly Report for the period ended 2009-07-05.
ATK is an aerospace and defense company with leading market positions in munitions smart weapons and precision capabilities propulsion and composite structures. They have three business segments: Conventional Munitions Aerospace and Defense Systems (company press release). Alliant Techsystems Inc. has a market cap of $2.56 billion; its shares were traded at around $77.99 with a P/E ratio of 9.5 and P/S ratio of 0.6. Alliant Techsystems Inc. had an annual average earning growth of 18.9% over the past 10 years. GuruFocus rated Alliant Techsystems Inc. the business predictability rank of 4.5-star.
Net income for the quarter ended July 5, 2009 was $69,483, an increase of $15,001 compared to $54,482 in the comparable period of
fiscal 2009. This increase was due to an increase of $40,573 in gross profit and a decrease in net interest expense of $1.334, partially offset by increases in operating expenses of $17,533 and income tax expense of $9,373.
Cash used for operating activities for the quarter ended July 5, 2009 totaled $150,336, compared to $77,513 used in the first quarter of the prior year. The increase was primarily due to a $150,000 funding payment to the pension trust in fiscal 2010. This increase was partially offset by a $41,642 decrease in cash used for working capital (defined as net receivables plus net inventories less accounts payable less contract advances and allowances), primarily resulting from the timing of collections. In the current year, ATK also received a net income tax refund of $28,400 compared to a payment of $20,000 in the prior year period resulting in a benefit of $48,400, Additionally, ATK also had a $15,001 increase in net income over the prior year comparable period.
Cash used for investing activities totaled $30,912, a decrease of $8,072 compared to $38,984 used in the first quarter of the prior year primarily as a result of the a small acquisition for $7,511 during fiscal 2009 as well as additional proceeds from the sale of capital assets during the current year. This decrease was partially offset by a slight increase in capital expenditures.
Cash used for financing activities totaled $529, a decrease of $17,401 compared to cash of $16,872 provided by financing activities in the first quarter of the prior year. The decrease was driven by the absence of cash overdrafts of $10,598 due to timing of payments to vendors, payments of $3,438 on ATKs Term A Loan due 2012, and a reduction in proceeds from employee stock compensation plans resulting from a reduction in stock options exercised.
Read the The complete ReportATK is in the portfolios of Jean-Marie Eveillard of Arnhold & S. Bleichroeder Advisers, LLC, Jean-Marie Eveillard of Arnhold & S. Bleichroeder Advisers, LLC, David Dreman of Dreman Value Management.
ATK is an aerospace and defense company with leading market positions in munitions smart weapons and precision capabilities propulsion and composite structures. They have three business segments: Conventional Munitions Aerospace and Defense Systems (company press release). Alliant Techsystems Inc. has a market cap of $2.56 billion; its shares were traded at around $77.99 with a P/E ratio of 9.5 and P/S ratio of 0.6. Alliant Techsystems Inc. had an annual average earning growth of 18.9% over the past 10 years. GuruFocus rated Alliant Techsystems Inc. the business predictability rank of 4.5-star.
Highlight of Business Operations:
As discussed in Note 2, New Accounting Pronouncements, to the unaudited condensed consolidated financial statements, on April 1, 2009, ATK retrospectively adopted FSP APB 14-1. The provisions of this FSP apply to ATKs $199,453 aggregate principal amount of 3.00% Convertible Notes due 2024, the $279,929 aggregate principal amount of 2.75% Convertible Notes due 2024, and the $300,000 aggregate principal amount of 2.75% Convertible Notes due 2011, discussed in Note 10, Long-Term Debt. The adoption resulted in an increase of $6,228 and $5,841 to non-cash interest expense the quarters ended July 5, 2009 and June 29, 2008, respectively. The increase to fiscal 2005 through fiscal 2009 non-cash interest expense ranged from $9,300 to $23,800 per year. The impact to fiscal 2010 non-cash interest expense is expected to be an increase of approximately $19,900 with a declining impact in future fiscal years.Net income for the quarter ended July 5, 2009 was $69,483, an increase of $15,001 compared to $54,482 in the comparable period of
fiscal 2009. This increase was due to an increase of $40,573 in gross profit and a decrease in net interest expense of $1.334, partially offset by increases in operating expenses of $17,533 and income tax expense of $9,373.
Cash used for operating activities for the quarter ended July 5, 2009 totaled $150,336, compared to $77,513 used in the first quarter of the prior year. The increase was primarily due to a $150,000 funding payment to the pension trust in fiscal 2010. This increase was partially offset by a $41,642 decrease in cash used for working capital (defined as net receivables plus net inventories less accounts payable less contract advances and allowances), primarily resulting from the timing of collections. In the current year, ATK also received a net income tax refund of $28,400 compared to a payment of $20,000 in the prior year period resulting in a benefit of $48,400, Additionally, ATK also had a $15,001 increase in net income over the prior year comparable period.
Cash used for investing activities totaled $30,912, a decrease of $8,072 compared to $38,984 used in the first quarter of the prior year primarily as a result of the a small acquisition for $7,511 during fiscal 2009 as well as additional proceeds from the sale of capital assets during the current year. This decrease was partially offset by a slight increase in capital expenditures.
Cash used for financing activities totaled $529, a decrease of $17,401 compared to cash of $16,872 provided by financing activities in the first quarter of the prior year. The decrease was driven by the absence of cash overdrafts of $10,598 due to timing of payments to vendors, payments of $3,438 on ATKs Term A Loan due 2012, and a reduction in proceeds from employee stock compensation plans resulting from a reduction in stock options exercised.
Read the The complete ReportATK is in the portfolios of Jean-Marie Eveillard of Arnhold & S. Bleichroeder Advisers, LLC, Jean-Marie Eveillard of Arnhold & S. Bleichroeder Advisers, LLC, David Dreman of Dreman Value Management.
