GenCorp announce 2014 Q3 results - net sales up $50m

By Tom Frew

PUBLISHED: 12 Oct 2014 @ 10:58 | Comments (0) |

GenCorp Inc. (NYSE:GY) has announced results for the third quarter ended August 31, 2014.

Financial Overview:

Third Quarter of Fiscal 2014 compared to Third Quarter of Fiscal 2013:

– Net sales for the third quarter of fiscal 2014 totaled $419.5 million compared to $367.5 million for the third quarter of fiscal 2013.
– Net loss for the third quarter of fiscal 2014 was $(9.5) million, or $(0.17) loss per share, compared to a net income of $197.4 million, or $2.39 diluted income per share, for the third quarter of fiscal 2013. The net loss for the third quarter of fiscal 2014 included a pre-tax contract loss of $17.5 million on the Antares AJ-26 program and a pre-tax charge of $9.8 million related to the repurchase of $9.4 million of principal of the Company’s 4.0625% Convertible Subordinated Debentures. The net income for the third quarter of fiscal 2013 included a $206.6 million income tax benefit primarily associated with the release of deferred tax asset valuation allowance reserves.
– Adjusted EBITDAP for the third quarter of fiscal 2014 was $38.1 million, or 9.1% of net sales, compared to $41.9 million, or 11.4% of net sales, for the third quarter of fiscal 2013.
– Segment performance before environmental remediation provision adjustments, retirement benefit plan expense, and unusual items was $34.4 million for the third quarter of fiscal 2014, compared to $36.8 million for the third quarter of fiscal 2013.
– Cash provided by operating activities in the third quarter of fiscal 2014 totaled $56.4 million, compared to $7.6 million in the third quarter of fiscal 2013.
– Free cash flow (Non-GAAP measure*) in the third quarter of fiscal 2014 totaled $43.0 million, compared to $(9.4) million in the third quarter of fiscal 2013.
– As of August 31, 2014, the Company had $628.6 million in net debt (Non-GAAP measure*) compared to $523.2 million as of August 31, 2013.
– As of August 31, 2014, the Company had $2.1 billion of funded backlog compared to $1.7 billion as of November 30, 2013.

First Nine Months of Fiscal 2014 compared to First Nine Months of Fiscal 2013:

– Net sales for the first nine months of fiscal 2014 totaled $1,152.3 million compared to $897.8 million for the first nine months of fiscal 2013. Beginning in the third quarter of fiscal 2013, net sales included the Rocketdyne Business.
– Net loss for the first nine months of fiscal 2014 was $(61.8) million, or $(1.06) loss per share, compared to a net income of $171.6 million, or $2.13 diluted income per share, for the first nine months of fiscal 2013. The net loss for the first nine months of fiscal 2014 included a pre-tax contract loss of $31.4 million on the Antares AJ-26 program and a pre-tax charge of $60.6 million related to the repurchase of $59.6 million of principal of the Company’s 4 1/16% Debentures. The net income for the first nine months of fiscal 2013 included a $199.6 million income tax benefit primarily associated with the release of deferred tax asset valuation allowance reserves.
– Adjusted EBITDAP (Non-GAAP measure*) for the first nine months of fiscal 2014 was $112.5 million, or 9.8% of net sales, compared to $102.3 million, or 11.4% of net sales, for the first nine months of fiscal 2013.
– Segment performance (Non-GAAP measure*) before environmental remediation provision adjustments, retirement benefit plan expense, and unusual items was $93.2 million for the first nine months of fiscal 2014, compared to $104.4 million for the first nine months of fiscal 2013.
– Cash provided by operating activities in the first nine months of fiscal 2014 totaled $34.1 million, compared to $26.5 million in the first nine months of fiscal 2013.
– Free cash flow (Non-GAAP measure*) in the first nine months of fiscal 2014 totaled $2.2 million, compared to $(12.2) million in the first nine months of fiscal 2013.
– Repurchased 3.5 million of the Company’s common shares at a cost of $64.5 million during the first nine months of fiscal 2014.

“The third quarter was particularly notable as Aerojet Rocketdyne space propulsion products once again delivered 100% mission success supporting a wide range of customer launch vehicles for U.S. military, NASA and commercial missions that included Atlas V, Delta IV, and Delta II. We also continued to reinforce the strength of our Missile Defense and Strategic Systems contract portfolio in the third quarter by supporting a critical intercept flight test on the Ground Based Missile Defense Program, and a successful ground test of a second stage booster motor for the U.S. Air Force Propulsion Applications Program,” said GenCorp President and Chief Executive Officer Scott Seymour.

“Our ongoing efforts integrating Aerojet Rocketdyne continued, including the project to transition to a common I.T. system, while maintaining our focus on realizing the efficiency improvements and infrastructure reductions required to meet our affordability goals.”

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