Attached files
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|---|---|
| 8-K - AEROJET ROCKETDYNE HOLDINGS, INC. | v209434_8k.htm |
Exhibit
99.1
News
Release
For
Immediate Release
GenCorp
Reports 2010 Annual and Fourth Quarter Results
SACRAMENTO, Calif. – February
1, 2011 – GenCorp Inc. (NYSE: GY) today reported results for the fiscal year and
fourth quarter ended November 30, 2010.
Financial
Overview
The
Company provides Non-GAAP measures as a supplement to financial results based on
GAAP. A reconciliation of the Non-GAAP measures to the most directly comparable
GAAP measures is included at the end of the release.
Fiscal
2010 compared to Fiscal 2009
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|
·
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Net
sales for 2010 increased by 7.9% and totaled $857.9 million compared to
$795.4 million for 2009.
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|
·
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Adjusted
EBITDAP for
2010 was $110.7 million or 12.9% of net sales, compared to $96.4 million
or 12.1% of net sales, for 2009.
|
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·
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Segment
performance before environmental remediation provision adjustments,
retirement benefit plan expense (benefit), and unusual items was $104.9
million for 2010, compared to $88.8 million for
2009.
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·
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Net
income for 2010 was $6.8 million, or $0.12 diluted earnings per share,
compared to net income of $52.2 million, or $0.86 diluted earnings per
share, for 2009.
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|
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·
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Cash
provided by operating activities in 2010 totaled $148.1 million, compared
to $50.3 million in 2009.
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·
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Free
cash flow (defined as cash provided by operating activities less capital
expenditures) in 2010 totaled $131.2 million, compared to $36.0 million in
2009.
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·
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As
of November 30, 2010, the Company had $188.5 million in net debt (defined
as debt principal less cash and marketable securities) compared to $312.3
million in net debt as of November 30,
2009.
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Fourth
Quarter of 2010 compared to Fourth Quarter of 2009
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·
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Net
sales for the fourth quarter of 2010 totaled $226.3 million compared to
$240.1 million for the fourth quarter of
2009.
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·
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Adjusted
EBITDAP for
the fourth quarter of 2010 was $25.6 million or 11.3% of net sales,
compared to $29.3 million or 12.2% of net sales, for the fourth quarter of
2009.
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·
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Segment
performance before environmental remediation provision adjustments,
retirement benefit plan expense (benefit), and unusual items was $26.5
million for the fourth quarter of 2010, compared to $30.7 million for the
fourth quarter of 2009.
|
|
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·
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Net
loss for the fourth quarter of 2010 was $0.6 million, or $0.01 diluted
loss per share, compared to net income of $13.3 million, or $0.22 diluted
earnings per share, for the fourth quarter of
2009.
|
“Our 2010
core operating results reflect the effectiveness of the initiatives we have
implemented to drive sales, cash, margin expansion and net debt reduction,” said
GenCorp Inc. President and CEO, and President, Aerojet - General Corporation,
Scott J. Seymour. “We enter 2011 with a portfolio well positioned to meet the
needs of our customers, and a team that remains committed to delivering
excellent program performance and creating value for our
shareholders."
-more-
Operations
Review
Aerospace
and Defense Segment
Sales for
2010 increased to $850.7 million from $787.2 million in 2009. The increase
in net sales in fiscal 2010 compared to fiscal 2009 was primarily due to the
following: (i) awards received in fiscal 2009 on divert and attitude control
system programs generating $41.6 million of additional net sales; (ii) increased
deliveries on the Guided Multiple Launch Rocket System program generating $19.9
million of additional net sales; and (iii) the release of NASA funding
constraints on the Orion crew module and service module propulsion program
generating $18.0 million of additional net sales. The increase in net sales was
partially offset by a decline in deliveries of rocket motors under the Atlas V
program in the current year of $21.4 million compared to the prior
year.
Sales for
the fourth quarter of 2010 totaled $224.5 million compared to $238.3 million in
the fourth quarter of 2009. The decrease in net sales was primarily due to
declines in deliveries under the Standard Missile-1 and Atlas V programs,
partially offset by an increase in the divert and attitude control system
programs generating $16.6 million of additional net sales.
Segment
performance was income of $67.3 million in 2010 compared to income of $90.3
million in 2009. Segment performance for the fourth quarter of 2010 was
income of $15.6 million compared to income of $31.8 million in the fourth
quarter of 2009. The decrease in segment performance for both periods was
primarily the result of an increase in non-cash retirement benefit plan
expense in 2010 partially offset by an increase in contract gross profit as a
result of overall improvement in contract performance in the current period
compared to the prior period.
A summary
of our backlog is as follows:
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November 30,
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November 30,
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2010
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2009
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(In millions)
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||||||||
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Funded
backlog
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$ | 804.4 | $ | 811.2 | ||||
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Unfunded
backlog
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572.9 | 379.6 | ||||||
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Total
contract backlog
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$ | 1,377.3 | $ | 1,190.8 | ||||
Total
backlog includes both funded backlog (the amount for which money has been
directly appropriated by the U.S. Congress, or for which a purchase order has
been received from a commercial 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 our control.
Real
Estate Segment
Sales and
segment performance for 2010 were $7.2 million and $5.3 million, respectively,
compared to $8.2 million and $4.4 million for 2009, respectively. Sales
and segment performance for the fourth quarter of 2010 were $1.8 million and
$1.3 million, respectively, compared to $1.8 million and $0.9 million for the
fourth quarter of 2009, respectively. Net sales and segment performance
consist primarily of rental property operations.
Additional
Information
Debt
Activity
As of
November 30, 2010, the borrowing limit under the revolving credit facility was
$65.0 million with all of it available. Also, as of November 30, 2010, the
Company had $69.4 million outstanding letters of credit under the
$100.0 million letter of credit subfacility and had permanently reduced the
amount of its term loan subfacility to the $51.1 million
outstanding.
-more-
The
Company’s borrowing / repayment activity during 2010 was as
follows:
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November 30,
2009
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Additions
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Debt
Discount
Amortization
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Cash
Payments
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Non-cash
Repurchase
Activity
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November 30,
2010
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(In millions)
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Term
loan
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$ | 68.3 | $ | — | $ | — | $ | (17.2 | ) | $ | — | $ | 51.1 | |||||||||||
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9½%
Senior Subordinated Notes
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97.5 | — | — | (23.0 | ) | 0.5 | 75.0 | |||||||||||||||||
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4%
Contingent Convertible Subordinated Notes
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125.0 | — | — | (125.0 | ) | — | — | |||||||||||||||||
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4.0625% Convertible
Subordinated Debentures
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— | 200.0 | — | — | — | 200.0 | ||||||||||||||||||
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2¼%
Convertible Subordinated Debentures (“2¼% Debentures”)
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146.4 | — | — | (74.3 | ) | (3.5 | ) | 68.6 | ||||||||||||||||
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Debt
discount on 2¼% Debentures
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(17.0 | ) | — | 6.7 | — | 6.3 | (4.0 | ) | ||||||||||||||||
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Other
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1.4 | 1.3 | — | (0.7 | ) | — | 2.0 | |||||||||||||||||
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Total
Debt and Borrowing Activity
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$ | 421.6 | $ | 201.3 | $ | 6.7 | $ | (240.2 | ) | $ | 3.3 | $ | 392.7 | |||||||||||
Subsequent
to November 30, 2010, the Company repurchased $6.5 million principal amount of
its 2¼% Debentures at various prices ranging from 99.0% of par to 99.1% of par,
plus accrued and unpaid interest.
Retirement
Benefit Plans
Components
of retirement benefit expense (benefit) are as follows:
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Three months ended November 30,
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Year ended November 30,
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2010
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2009
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2010
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2009
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(In millions)
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Service
cost
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$ | 1.1 | $ | 1.1 | $ | 4.6 | $ | 6.5 | ||||||||
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Interest
cost on benefit obligation
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22.6 | 23.7 | 90.1 | 94.3 | ||||||||||||
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Assumed
return on plan assets
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(27.1 | ) | (26.1 | ) | (107.8 | ) | (103.8 | ) | ||||||||
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Amortization
of prior service costs
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0.1 | 0.1 | 0.1 | 0.1 | ||||||||||||
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Recognized
net actuarial losses (gains)
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13.7 | (2.3 | ) | 54.9 | (9.0 | ) | ||||||||||
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Retirement
benefit expense (benefit)
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$ | 10.4 | $ | (3.5 | ) | $ | 41.9 | $ | (11.9 | ) | ||||||
The
increase in retirement benefit expense reflects higher actuarial losses
recognized in 2010 compared to 2009. The increase was primarily the result
of (i) a decrease in the discount rate, due to lower market interest rates used
to determine the Company’s retirement benefit obligation, to 5.65% as of
November 30, 2009 compared to 7.10% as of August 31, 2008 and (ii) an increase
in the impact of amortization of prior years’ net investment losses, including
the fourth quarter of 2008 which was not previously recognized due to the August
31, 2008 valuation date.
The
Company currently estimates that retirement benefit expense will be
approximately $46 million in 2011 compared to $41.9 million in
2010.
As of November 30, 2010, the Company’s
defined benefit pension plan assets and projected benefit obligations were
approximately $1.4 billion and $1.6 billion, respectively. The Pension
Protection Act (the “PPA”) requires underfunded pension plans to improve their
funding ratios within prescribed intervals based on the funded status of the
plan as of specified measurement dates. The funded ratio as of November 30, 2009
under the PPA for our tax-qualified defined benefit pension plan was 95.6% which
was above the 94.0% ratio required under the PPA. The required ratio to be met
as of the November 30, 2010 measurement date is 96%. The final
calculated PPA funded ratio as of November 30, 2010 is expected to be completed
in the second half of 2011.
In
general, the PPA requires companies with underfunded plans to make up the
shortfall over a seven year period. These values are based on assumptions
specified by the IRS, and are typically not the same as the amounts used for
corporate financial reporting. On June 25, 2010, the president signed the
Preservation of Access to Care for Medicare Beneficiaries and Pension Relief Act
of 2010 (“Pension Relief Act”) into law. The Pension Relief Act will allow
pension plan sponsors to extend the shortfall amortization period from the seven
years required under the PPA to either nine years (with interest-only payments
for the first two years) or 15 years for shortfall amortization bases created
during the years for which relief is elected. This election could be made for
any two plan years during the period 2008-2011. The Company expects to elect the
funding relief for plan years beginning 2010 and 2011 using the 15-year
alternative amortization.
-more-
The value
of the unfunded accrued benefits and amount of required contribution each year
are based on a number of factors, including plan investment experience and
interest rate environment and, as such, can fluctuate significantly from year to
year. Companies may prepay contributions and, under certain circumstances,
use those prepayment credits to satisfy the required funding of the pension
plan's annual required contribution thereby allowing the Company to defer cash
payments into the pension plan. The Company has accumulated $62.7 million
in such prepayment credits as of November 30, 2010. For 2011, the Company is
not expecting to make a cash contribution to the pension plan.
Forward-Looking
Statements
This
release may contain 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 may 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. Some 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:
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•
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the
earnings and cash flow of the Company’s subsidiaries and the distribution
of those earnings to the Company;
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•
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cancellation
or material modification of one or more significant
contracts;
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•
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future
reductions or changes in U.S. government
spending;
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•
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negative
audit of the Company’s business by the U.S.
government;
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•
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cost
overruns on the Company’s contracts that require the Company to absorb
excess costs;
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•
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failure
of the Company’s subcontractors or suppliers to perform their contractual
obligations;
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•
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failure
to secure contracts;
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•
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failure
to comply with regulations applicable to contracts with the U.S.
government;
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•
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costs
and time commitment related to potential acquisition
activities;
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•
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significant
competition and the Company’s inability to adapt to rapid technological
changes;
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•
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failure
of the Company’s information technology
infrastructure;
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•
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product
failures, schedule delays or other problems with existing or new products
and systems;
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•
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the
release or explosion of dangerous materials used in the Company’s
businesses;
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•
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loss
of key qualified suppliers of technologies, components, and
materials;
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•
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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;
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•
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effects
of changes in discount rates, actual returns on plan assets, and
government regulations of defined benefit pension
plans;
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•
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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;
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•
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environmental
claims related to the Company’s current and former businesses and
operations;
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•
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changes
in the amount recoverable from environmental
claims;
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•
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the
results of significant litigation;
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•
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occurrence
of liabilities that are inadequately covered by indemnity or
insurance;
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•
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the
cost of servicing the Company’s debt and the Company’s ability to comply
with the financial and other covenants contained in the Company’s debt
agreements;
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•
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risks
inherent to the real estate market;
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•
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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;
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•
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the
Company’s ability to execute its real estate business plan including our
ability to obtain, or cause to be obtained, the necessary final
governmental zoning, land use and environmental approvals and building
permits;
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•
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additional
costs related to the Company’s
divestitures;
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•
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a
strike or other work stoppage or the Company’s inability to renew
collective bargaining agreements on favorable
terms;
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•
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the
loss of key employees and shortage of available skilled employees to
achieve anticipated growth;
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•
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fluctuations
in sales levels causing the Company’s quarterly operating results and cash
flows to fluctuate;
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•
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changes
in the Company’s contract-related accounting
estimates;
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-more-
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•
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new
accounting standards that could result in changes to the Company’s methods
of quantifying and recording accounting
transactions;
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•
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failure
to maintain effective internal controls in accordance with the
Sarbanes-Oxley Act; and
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•
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those
risks detailed from time to time in the Company’s reports filed with the
SEC.
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About
GenCorp
GenCorp
is a leading 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.
Additional information about the Company can be obtained by visiting the
Company's website at http://www.GenCorp.com.
Contact
information:
Investors:
Kathy Redd, chief financial officer 916.355.2361
Media:
Glenn Mahone, vice president, communications 703.650.0278
(Tables
to follow)
-more-
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GenCorp Inc.
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Condensed Consolidated Statements of Operations
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||||||||||||||||
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(In millions, except per share amounts)
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Three months ended November 30,
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Year ended November 30,
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2010
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2009
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2010
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2009
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(Unaudited)
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Net
Sales
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$ | 226.3 | $ | 240.1 | $ | 857.9 | $ | 795.4 | ||||||||
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Operating
costs and expenses:
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||||||||||||||||
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Cost
of sales (exclusive of items shown separately below)
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197.9 | 200.2 | 753.9 | 674.0 | ||||||||||||
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Selling,
general and administrative
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8.2 | 4.4 | 26.7 | 10.2 | ||||||||||||
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Depreciation
and amortization
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8.7 | 7.2 | 27.9 | 25.7 | ||||||||||||
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Other
expense, net
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5.0 | 2.7 | 8.5 | 2.9 | ||||||||||||
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Unusual items:
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||||||||||||||||
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Executive severance agreements
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— | — | 1.4 | 3.1 | ||||||||||||
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Loss
on legal matters and settlements
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0.3 | 0.2 | 2.8 | 1.3 | ||||||||||||
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Loss
on bank amendment
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— | — | 0.7 | 0.2 | ||||||||||||
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Loss
on debt repurchased
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0.1 | — | 1.2 | — | ||||||||||||
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Gain
on legal settlement
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(2.7 | ) | — | (2.7 | ) | — | ||||||||||
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Total
operating costs and expenses
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217.5 | 214.7 | 820.4 | 717.4 | ||||||||||||
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Operating
income
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8.8 | 25.4 | 37.5 | 78.0 | ||||||||||||
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Non-operating
(income) expense
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Interest
expense
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8.4 | 9.5 | 37.0 | 38.6 | ||||||||||||
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Interest
income
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(0.4 | ) | (0.5 | ) | (1.6 | ) | (1.9 | ) | ||||||||
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Total
non-operating expense, net
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8.0 | 9.0 | 35.4 | 36.7 | ||||||||||||
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Income
from continuing operations before income taxes
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0.8 | 16.4 | 2.1 | 41.3 | ||||||||||||
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Income
tax provision (benefit)
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1.3 | 2.1 | (3.9 | ) | (17.6 | ) | ||||||||||
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(Loss)
income from continuing operations
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(0.5 | ) | 14.3 | 6.0 | 58.9 | |||||||||||
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(Loss)
income from discontinued operations, net of income taxes
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(0.1 | ) | (1.0 | ) | 0.8 | (6.7 | ) | |||||||||
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Net
(loss) income
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$ | (0.6 | ) | $ | 13.3 | $ | 6.8 | $ | 52.2 | |||||||
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(Loss)
Income Per Share of Common Stock
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Basic:
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(Loss)
income per share from continuing operations
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$ | (0.01 | ) | $ | 0.24 | $ | 0.11 | $ | 1.00 | |||||||
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(Loss)
income per share from discontinued operations, net of income
taxes
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— | (0.01 | ) | 0.01 | (0.11 | ) | ||||||||||
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Net
(loss) income per share
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$ | (0.01 | ) | $ | 0.23 | $ | 0.12 | $ | 0.89 | |||||||
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Diluted:
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(Loss)
income per share from continuing operations
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$ | (0.01 | ) | $ | 0.23 | $ | 0.11 | $ | 0.96 | |||||||
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(Loss)
income per share from discontinued operations, net of income
taxes
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— | (0.01 | ) | 0.01 | (0.10 | ) | ||||||||||
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Net
(loss) income per share
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$ | (0.01 | ) | $ | 0.22 | $ | 0.12 | $ | 0.86 | |||||||
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Weighted
average shares of common stock outstanding
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58.6 | 58.5 | 58.5 | 58.4 | ||||||||||||
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Weighted
average shares of common stock outstanding, assuming
dilution
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58.6 | 66.6 | 58.6 | 66.5 | ||||||||||||
-more-
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GenCorp Inc.
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Operating Segment Information
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(In millions)
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Three months ended November 30,
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Year ended November 30,
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2010
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2009
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2010
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2009
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(Unaudited)
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| Net Sales: | ||||||||||||||||
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Aerospace and Defense
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$ | 224.5 | $ | 238.3 | $ | 850.7 | $ | 787.2 | ||||||||
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Real
Estate
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1.8 | 1.8 | 7.2 | 8.2 | ||||||||||||
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Total
Net Sales
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$ | 226.3 | $ | 240.1 | $ | 857.9 | $ | 795.4 | ||||||||
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Segment
Performance:
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Aerospace
and Defense
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$ | 25.2 | $ | 29.8 | $ | 99.6 | $ | 84.4 | ||||||||
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Environmental
remediation provision adjustments
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(1.9 | ) | (0.3 | ) | (0.2 | ) | (0.7 | ) | ||||||||
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Retirement
benefit plan (expense) benefit
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(7.4 | ) | 2.5 | (29.3 | ) | 7.9 | ||||||||||
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Unusual
items
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(0.3 | ) | (0.2 | ) | (2.8 | ) | (1.3 | ) | ||||||||
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Aerospace
and Defense Total
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15.6 | 31.8 | 67.3 | 90.3 | ||||||||||||
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Real
Estate
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1.3 | 0.9 | 5.3 | 4.4 | ||||||||||||
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Total
Segment Performance
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$ | 16.9 | $ | 32.7 | $ | 72.6 | $ | 94.7 | ||||||||
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Reconciliation
of segment performance to income from continuing operations before income
taxes:
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Segment
performance
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$ | 16.9 | $ | 32.7 | $ | 72.6 | $ | 94.7 | ||||||||
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Interest
expense
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(8.4 | ) | (9.5 | ) | (37.0 | ) | (38.6 | ) | ||||||||
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Interest
income
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0.4 | 0.5 | 1.6 | 1.9 | ||||||||||||
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Stock-based
compensation
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(0.8 | ) | (2.0 | ) | (0.4 | ) | (2.9 | ) | ||||||||
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Corporate
retirement benefit plan (expense) benefit
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(3.0 | ) | 1.0 | (12.6 | ) | 4.0 | ||||||||||
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Corporate
and other
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(6.9 | ) | (6.3 | ) | (21.5 | ) | (14.5 | ) | ||||||||
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Unusual
items
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2.6 | — | (0.6 | ) | (3.3 | ) | ||||||||||
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Income
from continuing operations before income taxes
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$ | 0.8 | $ | 16.4 | $ | 2.1 | $ | 41.3 | ||||||||
The
Company evaluates its operating segments based on several factors, of which the
primary financial measure is segment performance. Segment performance
represents net sales from continuing operations less applicable costs, expenses,
and provisions for restructuring and unusual items relating to operations.
Segment performance excludes corporate income and expenses, income or expenses
related to divested businesses, provisions for unusual items not related to the
operations, stock-based compensation, interest expense, interest income, and
income taxes. The Company believes that segment performance provides
information useful to investors in understanding its underlying operational
performance. Specifically, the Company believes the exclusion of the items
listed above permits an evaluation and a comparison of results for on-going
business operations. It is on this basis that management internally assesses the
financial performance of its segments.
-more-
|
GenCorp Inc.
|
||||||||
|
Condensed Consolidated Balance Sheets
|
||||||||
|
(In millions)
|
November 30,
2010
|
November 30,
2009
|
||||||
|
ASSETS
|
||||||||
|
Current
Assets
|
||||||||
|
Cash
and cash equivalents
|
$ | 181.5 | $ | 126.3 | ||||
|
Marketable
securities
|
26.7 | — | ||||||
|
Accounts
receivable
|
106.7 | 116.3 | ||||||
|
Inventories
|
51.1 | 61.8 | ||||||
|
Recoverable
from the U.S. government and other third parties for environmental
remediation costs and other
|
32.0 | 30.6 | ||||||
|
Grantor
trust
|
1.8 | 2.4 | ||||||
|
Other
receivables, prepaid expenses and other
|
25.3 | 32.8 | ||||||
|
Income
taxes
|
7.5 | 2.4 | ||||||
|
Total
Current Assets
|
432.6 | 372.6 | ||||||
|
Noncurrent
Assets
|
||||||||
|
Property,
plant and equipment, net
|
126.4 | 129.9 | ||||||
|
Real
estate held for entitlement and leasing
|
59.9 | 55.3 | ||||||
|
Recoverable
from the U.S. government and other third parties for environmental
remediation costs and other
|
151.5 | 154.3 | ||||||
|
Grantor
trust
|
14.5 | 17.8 | ||||||
|
Goodwill
|
94.9 | 94.9 | ||||||
|
Intangible
assets
|
16.9 | 18.5 | ||||||
|
Other
noncurrent assets, net
|
94.8 | 91.6 | ||||||
|
Total
Noncurrent Assets
|
558.9 | 562.3 | ||||||
|
Total
Assets
|
$ | 991.5 | $ | 934.9 | ||||
|
LIABILITIES,
REDEEMABLE COMMON STOCK, AND SHAREHOLDERS’ DEFICIT
|
||||||||
|
Current
Liabilities
|
||||||||
|
Short-term
borrowings and current portion of long-term debt
|
$ | 66.0 | $ | 17.8 | ||||
|
Accounts
payable
|
27.1 | 18.4 | ||||||
|
Reserves
for environmental remediation costs
|
40.7 | 44.5 | ||||||
|
Postretirement
medical and life benefits
|
7.1 | 7.2 | ||||||
|
Advance
payments on contracts
|
110.0 | 66.0 | ||||||
|
Other
current liabilities
|
110.3 | 107.5 | ||||||
|
Total
Current Liabilities
|
361.2 | 261.4 | ||||||
|
Noncurrent
Liabilities
|
||||||||
|
Senior
debt
|
50.6 | 51.2 | ||||||
|
Senior
subordinated notes
|
75.0 | 97.5 | ||||||
|
Convertible
subordinated notes
|
200.0 | 254.4 | ||||||
|
Other
debt
|
1.1 | 0.7 | ||||||
|
Deferred
income taxes
|
7.6 | 9.6 | ||||||
|
Reserves
for environmental remediation costs
|
177.0 | 178.2 | ||||||
|
Pension
benefits
|
175.5 | 210.3 | ||||||
|
Postretirement
medical and life benefits
|
71.8 | 75.7 | ||||||
|
Other
noncurrent liabilities
|
66.8 | 68.8 | ||||||
|
Total
Noncurrent Liabilities
|
825.4 | 946.4 | ||||||
|
Total
Liabilities
|
1,186.6 | 1,207.8 | ||||||
|
Redeemable
common stock
|
5.1 | 6.0 | ||||||
|
Shareholders’
Deficit
|
||||||||
|
Common
stock
|
5.9 | 5.9 | ||||||
|
Other
capital
|
257.3 | 258.0 | ||||||
|
Accumulated
deficit
|
(182.2 | ) | (189.0 | ) | ||||
|
Accumulated
other comprehensive loss, net of income taxes
|
(281.2 | ) | (353.8 | ) | ||||
|
Total
Shareholders’ Deficit
|
(200.2 | ) | (278.9 | ) | ||||
|
Total
Liabilities, Redeemable Common Stock and Shareholders’
Deficit
|
$ | 991.5 | $ | 934.9 | ||||
-more-
|
GenCorp Inc.
|
||||||||
|
Condensed Consolidated Statements of Cash Flows
|
||||||||
|
Year Ended
|
||||||||
|
November 30,
|
November 30,
|
|||||||
|
(In millions)
|
2010
|
2009
|
||||||
|
Operating
Activities
|
||||||||
|
Net
income
|
$ | 6.8 | $ | 52.2 | ||||
|
Adjustments
to reconcile net income to net cash provided by operating
activities:
|
||||||||
|
(Income) loss from discontinued operations
|
(0.8 | ) | 6.7 | |||||
|
Depreciation and amortization
|
27.9 | 25.7 | ||||||
|
Amortization of debt discount and financing costs
|
10.5 | 12.7 | ||||||
|
Stock-based compensation and savings plan expense, net
|
0.4 | 4.4 | ||||||
|
Impairment of long-lived asset
|
1.6 | — | ||||||
|
Loss on debt repurchased and bank amendment
|
1.9 | 0.2 | ||||||
|
Changes in assets and liabilities other than grantor trust
|
97.0 | (61.1 | ) | |||||
|
Grantor trust
|
3.9 | 10.7 | ||||||
|
Net cash provided by continuing
operations
|
149.2 | 51.5 | ||||||
|
Net cash used in discontinued
operations
|
(1.1 | ) | (1.2 | ) | ||||
|
Net Cash Provided by Operating
Activities
|
148.1 | 50.3 | ||||||
|
Investing
Activities
|
||||||||
|
Marketable
securities activity, net
|
(26.6 | ) | — | |||||
|
Capital
expenditures
|
(16.9 | ) | (14.3 | ) | ||||
|
Net Cash Used in Investing Activities
|
(43.5 | ) | (14.3 | ) | ||||
|
Financing
Activities
|
||||||||
|
Proceeds
from issuance of debt
|
200.0 | — | ||||||
|
Debt
issuance costs
|
(7.7 | ) | (0.4 | ) | ||||
|
Vendor
financing repayments
|
(1.5 | ) | — | |||||
|
Debt
repayments
|
(240.2 | ) | (2.0 | ) | ||||
|
Net Cash Used in Financing Activities
|
(49.4 | ) | (2.4 | ) | ||||
|
Net
Increase in Cash and Cash Equivalents
|
55.2 | 33.6 | ||||||
|
Cash
and Cash Equivalents at Beginning of Year
|
126.3 | 92.7 | ||||||
|
Cash
and Cash Equivalents at End of Year
|
$ | 181.5 | $ | 126.3 | ||||
-more-
Use
of Non-GAAP Financial Measures
In
addition to segment performance (discussed earlier in this release), the Company
provides Non-GAAP financial measure of the Company’s operational performance
called Adjusted EBITDAP. Management uses this metric to further its own
understanding of the Company’s historical and prospective consolidated core
operating performance of its segments, net of expenses incurred by its corporate
activities in the ordinary, ongoing and customary course of its
operations. Further, the Company believes that to effectively compare the
core operating performance metric from period to period on a historical and
prospective basis, the metric should exclude items relating to retirement
benefits (pension and postretirement benefits), significant non-cash expenses,
the impacts of financing decisions on the earnings of the Company, and items
incurred outside the ordinary, ongoing and customary course of its
operations. Accordingly, management defines Adjusted EBITDAP as GAAP
income before income taxes adjusted by interest expense, interest income,
depreciation and amortization, retirement benefit plan costs (pension and
postretirement benefits), and unusual items which management does not believe
are reflective of such ordinary, ongoing and customary course
activities.
The
Company believes that providing this additional information is useful to better
understand and assess the Company's operating performance. The measure
allows investors, analysts, lenders, and other parties to better evaluate the
Company's financial performance and prospects in the same manner as
management. Because the Company's method for calculating the Non-GAAP
measure may differ from other companies’ methods, the Non-GAAP measure presented
below may not be comparable to similarly titled measures reported by other
companies. This measure is 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.
|
GenCorp Inc.
|
||||||||||||||||
|
Reconciliation of GAAP measure to Non-GAAP measure
|
||||||||||||||||
|
( In millions, except percentage amounts )
|
Three months ended November 30,
|
Year ended November 30,
|
||||||||||||||
|
2010
|
2009
|
2010
|
2009
|
|||||||||||||
|
(Unaudited)
|
||||||||||||||||
|
GAAP
income from continuing operations before income taxes
|
$ | 0.8 | $ | 16.4 | $ | 2.1 | $ | 41.3 | ||||||||
|
Interest
expense
|
8.4 | 9.5 | 37.0 | 38.6 | ||||||||||||
|
Interest
income
|
(0.4 | ) | (0.5 | ) | (1.6 | ) | (1.9 | ) | ||||||||
|
Depreciation
and amortization
|
8.7 | 7.2 | 27.9 | 25.7 | ||||||||||||
|
Retirement
benefit plan expense (benefit)
|
10.4 | (3.5 | ) | 41.9 | (11.9 | ) | ||||||||||
|
Unusual
items
|
(2.3 | ) | 0.2 | 3.4 | 4.6 | |||||||||||
|
Adjusted
EBITDAP
|
$ | 25.6 | $ | 29.3 | $ | 110.7 | $ | 96.4 | ||||||||
|
Adjusted
EBITDAP as a percentage of net sales
|
11.3 | % | 12.2 | % | 12.9 | % | 12.1 | % | ||||||||