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/SECOND AND FINAL ADD -- DCTH006 -- Lockheed Martin Corporation/
PRNewswire
LOCKHEED MARTIN CORPORATION
Consolidated Results
Preliminary and Unaudited
(In millions, except for per share data and percentages)
Quarter Ended Year To Date
September 30, September 30,
% %
2000 1999 Change 2000 1999 Change
Net Sales $5,960 $6,157 -3% $17,734 $18,548 -4%
Earnings (Loss)
before Interest
and Taxes -$26 $558 -105% $625 $1,308 -52%
Interest Expense $229 $200 15% $676 $583 16%
Pre-tax
Earnings (Loss) -$255 $358 -171% -$51 $725 -107%
Income Taxes $449 $141 218% $557 $281 98%
Effective Tax
Rate N/M 39% N/M N/M 39% N/M
Earnings (Loss)
before Cumulative
Effect of Change
in Accounting -$704 $217 -424% -$608 $444 -237%
Cumulative Effect
of Change in
Accounting (a) $0 $0 N/M $0 -$355 N/M
Net Earnings
(Loss) -$704 $217 -424% -$608 $89 -783%
Basic Earnings
(Loss) Per
Share:
Earnings (Loss)
before
Cumulative
Effect of Change
in Accounting -$1.74 $0.57 -405% -$1.54 $1.16 -233%
Cumulative Effect
of Change in
Accounting (a) $0.00 $0.00 N/M $0.00 -$0.93 N/M
Earnings (Loss)
Per Share -$1.74 $0.57 -405% -$1.54 $0.23 -770%
Average Basic
Shares
Outstanding 405.6 382.8 394.1 381.5
Diluted Earnings
(Loss) Per
Share:
Earnings (Loss)
before
Cumulative Effect
of Change in
Accounting -$1.74 $0.57 -405% -$1.54 $1.16 -233%
Cumulative Effect
of Change in
Accounting (a) $0.00 $0.00 N/M $0.00 -$0.93 N/M
Earnings (Loss)
Per Share -$1.74 $0.57 -405% -$1.54 $0.23 -770%
Average Diluted
Shares
Outstanding 405.6 (b) 384.7 394.1(b) 383.8
(a) The Corporation adopted the American Institute of Certified Public
Accountants' Statement of Position (SOP) No. 98-5, "Reporting on the
Costs of Start-Up Activities" effective January 1, 1999.
(b) Due to Antidilution, Basic shares are utilized as Diluted shares.
LOCKHEED MARTIN CORPORATION
Segment Results Including Nonrecurring and Unusual Items
Preliminary and Unaudited
(In millions, except for percentages)
Quarter Ended Year To Date
September 30, September 30,
% %
2000 1999 Change 2000 1999 Change
Systems
Integration (a)
Net Sales $2,325 $2,329 0% $6,730 $6,928 -3%
Segment EBIT -$215 $271 -179% $155 $644 -76%
Margins -9.2% 11.6% 2.3% 9.3%
Amortization of
Goodwill and
Contract
Intangibles $59 $69 $195 $206
Space Systems (a)
Net Sales $1,640 $1,779 -8% $5,092 $5,397 -6%
Segment EBIT $113 $126 -10% $326 $336 -3%
Margins 6.9% 7.1% 6.4% 6.2%
Amortization of
Goodwill and
Contract
Intangibles $14 $15 $42 $43
Aeronautical
Systems
Net Sales $1,038 $1,214 -14% $3,327 $3,980 -16%
Segment EBIT $77 $105 -27% $245 $151 62%
Margins 7.4% 8.6% 7.4% 3.8%
Amortization of
Goodwill and
Contract
Intangibles $20 $20 $60 $60
Technology
Services (b)
Net Sales $566 $584 -3% $1,629 $1,569 4%
Segment EBIT $18 $29 -38% $80 $97 -18%
Margins 3.2% 5.0% 4.9% 6.2%
Amortization of
Goodwill and
Contract
Intangibles $5 $4 $14 $13
Global
Telecommunications
(c)
Net Sales $214 $85 152% $498 $260 92%
Segment EBIT -$23 -$21 -10% -$81 -$75 -8%
Margins -10.7% -24.7% -16.3% -28.8%
Amortization of
Goodwill and
Contract
Intangibles $15 $0 $30 $0
Corporate
and Other (d)
Net Sales $177 $166 7% $458 $414 11%
Segment EBIT $4 $48 N/M -$100 $155 N/M
Margins N/M N/M N/M N/M
Amortization of
Goodwill and
Contract
Intangibles $0 $0 $1 $1
(a) 2000 and 1999 results have been restated to reflect the transfer of
the Management and Data Systems operating unit and the Space
Applications Systems product line from the Systems Integration
business area to the Space Systems business area.
(b) 1999 results include the operations of LM Hanford Company, which
was divested during 1999.
(c) A new segment called Global Telecommunications is presented. This
new segment reflects the operations of Lockheed Martin Global
Telecommunications (LMGT), which includes COMSAT and Integrated
Business Solutions (IBS). The operations of both LMGT and IBS were
previously included in the Corporate and Other business segment.
(d) 2000 and 1999 results include the operations of state and local
government services lines of business. 1999 results include the
operations of Real3D, Inc. and the communications industry services
line of business which were divested during 1999.
LOCKHEED MARTIN CORPORATION
Segment Results Excluding Nonrecurring and Unusual Items
Preliminary and Unaudited
(In millions, except for percentages)
Quarter Ended Year to Date
September 30, September 30,
% %
2000 1999 Change 2000 1999 Change
Systems
Integration (a)
Net Sales $2,325 $2,329 0% $6,730 $6,928 -3%
Segment EBIT $240 $271 -11% $610 $644 -5%
Margins 10.3% 11.6% 9.1% 9.3%
Amortization of
Goodwill and
Contract
Intangibles $59 $69 $195 $206
Space Systems (a)
Net Sales $1,640 $1,779 -8% $5,092 $5,397 -6%
Segment EBIT $113 $107 6% $309 $337 -8%
Margins 6.9% 6.0% 6.1% 6.2%
Amortization of
Goodwill and
Contract
Intangibles $14 $15 $42 $43
Aeronautical
Systems
Net Sales $1,038 $1,214 -14% $3,327 $3,980 -16%
Segment EBIT $77 $105 -27% $245 $151 62%
Margins 7.4% 8.6% 7.4% 3.8%
Amortization of
Goodwill and
Contract
Intangibles $20 $20 $60 $60
Technology
Services (b)
Net Sales $566 $584 -3% $1,629 $1,569 4%
Segment EBIT $46 $29 59% $114 $97 18%
Margins 8.1% 5.0% 7.0% 6.2%
Amortization of
Goodwill and
Contract
Intangibles $5 $4 $14 $13
Global
Telecommunications (c)
Net Sales $214 $85 152% $498 $260 92%
Segment EBIT -$23 -$21 -10% -$81 -$75 -8%
Margins -10.7% -24.7% -16.3% -28.8%
Amortization of
Goodwill and
Contract
Intangibles $15 $0 $30 $0
Corporate
and Other (d)
Net Sales $177 $166 7% $458 $414 11%
Segment EBIT $4 $14 N/M $9 $7 N/M
Margins N/M N/M N/M N/M
Amortization of
Goodwill and
Contract
Intangibles $0 $0 $1 $1
(a) 2000 and 1999 results have been restated to reflect the transfer of
the Management and Data Systems operating unit and the Space
Applications Systems product line from the Systems Integration
business area to the Space Systems business area.
(b) 1999 results include the operations of LM Hanford Company, which was
divested during 1999.
(c) A new segment called Global Telecommunications is presented. This new
segment reflects the operations of Lockheed Martin Global
Telecommunications (LMGT), which includes COMSAT and Integrated
Business Solutions (IBS). The operations of both LMGT and IBS were
previously included in the Corporate and Other business segment.
(d) 2000 and 1999 results include the operations of state and local
government services lines of business. 1999 results include the
operations of Real3D, Inc. and the communications industry services
line of business which were divested during 1999.
LOCKHEED MARTIN CORPORATION
Reconciliation of Pro Forma Net Earnings (a)
Preliminary and Unaudited
(In millions, except for per share amounts and percentages)
Quarter Ended Year To Date
September 30, September 30,
2000 1999 2000 1999
Net Earnings (Loss) --
As Reported -$704 $217 -$608 $89
After Tax Impairment
Loss on AES Businesses $980 $0 $980 $0
After Tax Gain on
Control Systems
Divestiture -$180 $0 -$180 $0
After Tax Loss on
Globalstar Guarantee $0 $0 $91 $0
After Tax Effect of
Reversal of Calcomp
Charge $0 $0 -$21 $0
After Tax Gain on
L3 Disposition $0 $0 $0 -$74
After Tax Gain on Sale
of Surplus Real Estate -$3 -$15 -$13 -$15
After Tax Net (Gain)
Loss on Divestitures
and Other $22 -$19 $26 -$7
Cumulative Effect of
Change in Accounting $0 $0 $0 $355
Pro Forma Net Earnings $115 $183 $275 $348
Pro Forma Effective
Tax Rate 49.3% 39.5% 48.0% 39.5%
Diluted Earnings (Loss)
Per Share -- As
Reported (b) -$1.74 $0.57 -$1.54 $0.23
After Tax Impairment
Loss on AES
Businesses (b) $2.42 $0.00 $2.49 $0.00
After Tax Gain on Control
Systems
Divestiture (b) -$.44 $0.00 -$0.46 $0.00
After Tax Loss on
Globalstar Guarantee $0.00 $0.00 $0.23 $0.00
After Tax Effect of
Reversal of
Calcomp Charge $0.00 $0.00 -$0.05 $0.00
After Tax Gain on
L3 Disposition $0.00 $0.00 $0.00 -$0.19
After Tax Gain on
Sale of Surplus
Real Estate (b) -$0.01 -$0.04 -$0.03 -$0.04
After Tax Net (Gain)
Loss on Divestitures
and Other $0.05 -$0.05 $0.06 -$0.02
Cumulative Effect of
Change in Accounting $0.00 $0.00 $0.00 $0.93
Pro Forma Diluted
Earnings Per Share $0.28 $0.48 $0.70 $0.91
(a) Excludes nonrecurring and unusual items.
(b) Due to the impact that the issuance of Lockheed Martin shares in
the merger with COMSAT had on the weighted average number of
shares outstanding used in computing earnings per share, the earnings
per share effects of individual transactions may be different for the
quarter versus the nine months ended September 30, 2000.
LOCKHEED MARTIN CORPORATION
Other Financial Information
Preliminary and Unaudited
(In millions, except for per share amounts and percentages)
Quarter Ended Year to Date
September 30, September 30,
2000 1999
Pro Forma EBIT $457 $505 $1,206 $1,161
Pro Forma EBIT to
Sales Margin 7.7% 8.2% 6.8% 6.3%
Amortization of
Goodwill and Contract
Intangibles Resulting
from PriorAcquisitions $113 $108 $342 $323
Depreciation and
Amortization $131 $134 $382 $382
Pro Forma EBITDA $701 $747 $1,930 $1,866
September 30, December 31,
2000 1999(a)
Total Backlog $55,906 $45,913
Systems Integration $16,953 $13,971
Space Systems $15,446 $15,998
Aeronautical Systems $16,744 $9,003
Technology Services $4,352 $4,399
Global Telecommunications $1,524 $1,533
Corporate and Other $887 $1,009
Total Debt $11,844 $11,954
Long-term (including
current maturities) $11,841 $11,479
Short-term $3 $475
Cash and Cash Equivalents $1,938 $455
Stockholders' Equity $7,082 $6,361
Total Debt-to-Capital 63% 65%
Total Debt-to-Capital
(net of invested cash) 58% 64%
(a) 1999 results have been restated to reflect the transfer of the
Management and Data Systems operating unit and the Space Applications
Systems product line from the Systems Integration business area to
the Space Systems business area. Additionally, a new segment called
Global Telecommunications is presented. This new segment reflects the
operations of Lockheed Martin Global Telecommunications (LMGT), which
includes COMSAT and Integrated Business Solutions (IBS). The
operations of both LMGT and IBS were previously included in the
Corporate and Other business segment.
LOCKHEED MARTIN CORPORATION
Consolidated Condensed Balance Sheet
Preliminary and Unaudited
(In millions)
September 30, December 31,
2000 1999
Assets
Cash and cash equivalents $ 1,938 $455
Accounts Receivable 4,202 4,348
Inventories 4,216 4,051
Other current assets 2,982 1,842
Total current assets 13,338 10,696
Property, plant and equipment 3,439 3,634
Goodwill and other intangible assets 9,917 10,421
Other noncurrent assets 5,577 5,261
Total assets $32,271 $30,012
Liabilities and Stockholders' Equity
Short-term borrowings $3 $475
Other accrued expenses 9,455 8,285
Current portion of long-term debt 879 52
Total current liabilities 10,337 8,812
Long-term debt 10,962 11,427
Post-retirement and
other noncurrent liabilities 3,890 3,412
Stockholders' equity 7,082 6,361
Total liabilities and
stockholders' equity $32,271 $30,012
LOCKHEED MARTIN CORPORATION
Consolidated Condensed Statement of Cash Flows
Preliminary and Unaudited
(In millions)
Year To September
Date 30,
2000 1999
Operating Activities:
Earnings before cumulative effect of
change in accounting $-608 $444
Adjustments to reconcile earnings to net cash
provided by operating activities:
Depreciation and amortization 724 705
Changes in operating assets and liabilities 1,629 -766
Net cash provided by operating activities 1,745 383
Investing Activities:
Expenditures for property, plant & equipment -283 -442
Sale of Control Systems 510 --
Consummation of COMSAT tender offer -- -1,197
Sale of shares in L-3 Communications -- 182
Other 152 -108
Net cash provided by (used for)
investing activities 379 -1,565
Financing Activities:
Net (decrease) increase in short-term borrowings -475 1,881
Net repayments of debt -40 -743
Issuance of common stock 6 17
Common stock dividends -132 -258
Net cash provided by (used for)
financing activities -641 897
Net increase (decrease) in cash and
cash equivalents 1,483 -285
Cash and cash equivalents at beginning
of period 455 285
Cash and cash equivalents at end of period $1,938 --
LOCKHEED MARTIN CORPORATION
Operating Data
Quarter Ended Year To Date
September 30, September 30,
2000 1999
Deliveries
F-16 8 28 34 86
C-130J 4 8 14 18
Launches
Atlas 1 1 6 3
Proton 1 1 3 5
Athena -- 1 -- 3
Titan II 1 -- 1 1
Titan IV 1 -- 2 3
PRNewswire -- Oct. 26
END SECOND AND FINAL ADD
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