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/FIRST AND FINAL ADD -- HSTH007 -- Lockheed Martin Corporation/
PRNewswire
LOCKHEED MARTIN CORPORATION
Consolidated Results
Preliminary and Unaudited
(In millions, except for per share data and percentages)
QUARTER ENDED JUNE 30, YEAR TO DATE JUNE 30,
2000 1999 % Change 2000 1999 % Change
Net Sales $6,212 $6,203 -- % $11,774 $12,391 (5)%
Earnings before
Interest and
Taxes $325 $134 143 % $651 $750 (13)%
Interest
Expense $220 $191 15 % $447 $383 17%
Pre-tax
Earnings $105 ($57) 284 % $204 $367 (44)%
Income Taxes $63 ($16) 494 % $108 $140 (23)%
Effective
Tax Rate 60% 28% N/M 53% 38% N/M
Earnings before
Cumulative
Effect of
Change in
Accounting $42 ($41) 202 % $96 $227 (58)%
Cumulative Effect
of Change in
Accounting (a) -- -- N/M -- ($355) N/M
Net Earnings
(Loss) $42 ($41) 202 % $96 ($128) 175%
Basic Earnings
(Loss) Per Share:
Earnings (Loss)
before Cumulative
Effect of Change
in Accounting $0.11 ($0.11) 200 % $0.25 $0.59 (58)%
Cumulative Effect
of Change in
Accounting (a) -- -- N/M -- ($0.93) N/M
Earnings (Loss)
Per Share $0.11 ($0.11) 200 % $0.25 ($0.34) 174 %
Average Basic Shares
Outstanding 389.5 381.4 388.3 380.8
Diluted Earnings
(Loss) Per Share:
Earnings (Loss)
before
Cumulative
Effect of
Change in
Accounting $0.11 ($0.11) 200 % $0.25 $0.59 (58)%
Cumulative Effect
of Change in
Accounting(a) -- -- N/M -- ($0.93) N/M
Earnings (Loss)
Per Share $0.11 ($0.11) 200 % $0.25 ($0.34) 174%
Average Diluted Shares
Outstanding 391.2 383.9 389.3 383.3
(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.
LOCKHEED MARTIN CORPORATION
Segment Results Including Nonrecurring and Unusual Items
Preliminary and Unaudited
(In millions, except for percentages)
QUARTER ENDED JUNE 30, YEAR TO DATE JUNE 30,
2000 1999 % Change 2000 1999 % Change
Systems Integration (a)
Net Sales $2,334 $2,367 (1) % $4,405 $4,599 (4)%
Segment EBIT $202 $205 (1) % $370 $373 (1)%
Margins 8.7% 8.7% 8.4% 8.1%
Amortization of
Goodwill and
Contract
Intangibles $68 $68 $136 $137
Space Systems (a)
Net Sales $1,780 $1,728 3 % $3,452 $3,618 (5)%
Segment EBIT $128 $46 178 % $213 $210 1%
Margins 7.2% 2.7% 6.2% 5.8%
Amortization of
Goodwill and Contract
Intangibles $14 $14 $28 $28
Aeronautical Systems
Net Sales $1,253 $1,346 (7) % $2,289 $2,766 (17)%
Segment EBIT $89 ($118) 175 % $168 $46 265%
Margins 7.1% (8.8)% 7.3% 1.7%
Amortization of
Goodwill and
Contract
Intangibles $20 $20 $40 $40
Technology Services (b)
Net Sales $599 $537 12 % $1,063 $985 8%
Segment EBIT $36 $36 -- % $62 $68 (9)%
Margins 6.0% 6.7% 5.8% 6.9%
Amortization of
Goodwill and
Contract
Intangibles $5 $5 $9 $9
Corporate and Other (c)
Net Sales $246 $225 9 % $565 $423 34%
Segment EBIT ($130) ($35) N/M ($162) $53 N/M
Margins N/M N/M N/M N/M
Amortization of
Goodwill and
Contract
Intangibles $8 -- $16 $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) 2000 and 1999 results include the operations of commercial
information technology and state and local government services lines
of business as well as the operations of LM Global
Telecommunications, Inc. 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 JUNE 30, YEAR TO DATE JUNE 30,
2000 1999 % Change 2000 1999 % Change
Systems Integration (a)
Net Sales $2,334 $2,367 (1) % $4,405 $4,599 (4)%
Segment EBIT $202 $205 (1) % $370 $373 (1)%
Margins 8.7% 8.7% 8.4% 8.1%
Amortization of
Goodwill and
Contract
Intangibles $68 $68 $136 $137
Space Systems (a)
Net Sales $1,780 $1,728 3 % $3,452 $3,618 (5)%
Segment EBIT $128 $66 94 % $196 $230 (15)%
Margins 7.2% 3.8% 5.7 % 6.4%
Amortization of
Goodwill and
Contract
Intangibles $14 $14 $28 $28
Aeronautical Systems
Net Sales $1,253 $1,346 (7) % $2,289 $2,766 (17)%
Segment EBIT $89 ($118) 175 % $168 $46 265%
Margins 7.1% (8.8%) 7.3% 1.7%
Amortization of
Goodwill and
Contract
Intangibles $20 $20 $40 $40
Technology Services (b)
Net Sales $599 $537 12 % $1,063 $985 8%
Segment EBIT $36 $36 -- % $68 $68 --%
Margins 6.0% 6.7% 6.4% 6.9%
Amortization of
Goodwill and
Contract
Intangibles $5 $5 $9 $9
Corporate and Other (c)
Net Sales $246 $225 9 % $565 $423 34%
Segment EBIT ($22) ($35) N/M ($53) ($61) N/M
Margins N/M N/M N/M N/M
Amortization of
Goodwill and
Contract
Intangibles $8 -- $16 $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) 2000 and 1999 results include the operations of commercial
information technology and state and local government services lines
of business as well as the operations of LM Global
Telecommunications, Inc. 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 JUNE 30, YEAR TO DATE JUNE 30,
2000 1999 2000 1999
Net Earnings (Loss)
- As Reported $42 ($41) $96 ($128)
After Tax Loss on
Globalstar Guarantee $91 -- $91 --
After Tax Effect of
Reversal of Calcomp
Charge ($21) -- ($21) --
After Tax Gain on
L3 Disposition -- -- -- ($74)
After Tax Gain on Sale
of Surplus Real Estate -- -- ($10) --
After Tax Net Loss on
Divestitures and Other -- $12 $4 $12
Cumulative Effect of Change
in Accounting -- -- -- $355
Pro Forma Net Earnings
(Loss) $112 ($29) $160 $165
Pro Forma Effective
Tax Rate 47% 38% 47% 38%
Diluted Earnings (Loss)
Per Share -
As Reported $0.11 ($0.11) $0.25 ($0.34)
After Tax Loss on
Globalstar Guarantee $0.23 -- $0.23 --
After Tax Effect of
Reversal of Calcomp
Charge ($0.05) -- ($0.05) --
After Tax Gain on
L3 Disposition -- -- -- ($0.19)
After Tax Gain on Sale
of Surplus Real Estate -- -- ($0.03) --
After Tax Net Loss
on Divestitures and Other -- $0.03 $0.01 $0.03
Cumulative Effect
of Change in Accounting -- -- -- $0.93
Pro Forma Diluted Earnings
(Loss) Per Share $0.29 ($0.08) $0.41 $0.43
(a) Excludes nonrecurring and unusual items.
LOCKHEED MARTIN CORPORATION
Other Financial Information
Preliminary and Unaudited
(In millions, except for percentages)
QUARTER ENDED JUNE 30, YEAR TO DATE JUNE 30,
2000 1999 2000 1999
EBIT to Sales Margin 5.2% 2.2% 5.5% 6.1%
Amortization of Goodwill
and Contract Intangibles
Resulting from Prior
Acquisitions $115 $107 $229 $215
Depreciation and
Amortization $117 $126 $242 $248
EBITDA $557 $367 $1,122 $1,213
JUNE 30, DECEMBER 31,
2000 1999 (a)
Total Backlog $57,072 $45,913
Systems Integration $17,801 $13,971
Space Systems $15,181 $15,998
Aeronautical Systems $17,119 $9,003
Technology Services $4,454 $4,399
Corporate and Other $2,517 $2,542
Total Debt $11,461 $11,954
Long-term (including
current maturities) $11,453 $11,479
Short-term $8 $475
Cash and Cash Equivalents $1,249 $455
Stockholders' Equity $6,439 $6,361
Total Debt-to-Capital 64% 65%
Total Debt-to-Capital (net of
invested cash) 61% 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.
LOCKHEED MARTIN CORPORATION
Consolidated Condensed Balance Sheet
Preliminary and Unaudited
(In millions)
JUNE 30, DECEMBER 31,
2000 1999
Assets
Cash and cash equivalents $1,249 $455
Accounts receivable 4,182 4,348
Inventories 3,809 4,051
Other current assets 1,737 1,842
Total current assets 10,977 10,696
Property, plant and equipment 3,550 3,634
Goodwill and other
intangible assets 10,208 10,421
Other noncurrent assets 5,157 5,261
Total assets $29,892 $30,012
Liabilities and Stockholders' Equity
Short-term borrowings $8 $475
Other accrued expenses 8,720 8,285
Current portion of long-term debt 803 52
Total current liabilities 9,531 8,812
Long-term debt 10,650 11,427
Post-retirement and other
noncurrent liabilities 3,272 3,412
Stockholders' equity 6,439 6,361
Total liabilities and
stockholders' equity $29,892 $30,012
LOCKHEED MARTIN CORPORATION
Consolidated Condensed Statement of Cash Flows
Preliminary and Unaudited
(In millions)
YEAR TO DATE JUNE 30,
2000 1999
Operating Activities:
Earnings before cumulative
effect of change in accounting $96 $227
Adjustments to reconcile earnings
to net cash provided by operating activities:
Depreciation and amortization 471 463
Changes in operating assets and liabilities 1,031 (866)
Net cash provided by (used for)
operating activities 1,598 (176)
Investing Activities:
Expenditures for property,
plant & equipment (185) (276)
Sale of shares in L-3 Communications -- 182
Other (43) 3
Net cash used for investing activities (228) (91)
Financing Activities:
Net (repayments) borrowings of debt (490) 138
Common stock dividends (88) (171)
Other 2 15
Net cash used for financing activities (576) (18)
Net increase (decrease) in cash
and cash equivalents 794 (285)
Cash and cash equivalents
at beginning of period 455 285
Cash and cash equivalents
at end of period $1,249 $ --
LOCKHEED MARTIN CORPORATION
Operating Data
QUARTER ENDED JUNE 30, YEAR TO DATE JUNE 30,
2000 1999 2000 1999
Deliveries
F-16 12 30 26 58
C-130J 7 3 10 10
Launches
Atlas 3 1 5 2
Proton 1 2 2 4
Athena -- 1 -- 2
Titan II -- 1 -- 1
Titan IV 1 3 1 3
PRNewswire -- July 20
END FIRST AND FINAL ADD
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