Actionable news
0
All posts from Actionable news
Actionable news in RTN: RAYTHEON COMPANY,

Waltham, Mass., (October 22, 2015) - Raytheon Company (Nyse: Rtn) Announced Net Sales For The

The following excerpt is from the company's SEC filing.

third quarter 2015

$5.8 billion

compared to

$5.5 billion

in the

third quarter 2014

. Third quarter 2015 EPS from continuing operations was

. Third quarter 2015 EPS from continuing operations included, as expected, a

unfavorable impact associated with Raytheon|Websense (RW) acquisition accounting adjustments discussed in further detail below.

"I’m very pleased with our strong revenue growth and cash flow generation in the third quarter," said Thomas A. Kennedy, Raytheon Chairman and CEO. "The Raytheon team remains focused on driving future growt h by developing and delivering innovative solutions that address our global customers’ most complex challenges."

Operating cash flow from continuing operations for the

$1.1 billion

$0.4 billion

. The increase in operating cash flow from continuing operations in the third quarter 2015 was primarily due to favorable working capital in the quarter and the timing of cash taxes. Year-to-date operating cash flow from continuing operations was $1.5 billion in 2015 versus $1.2 billion for the comparable period in 2014. The increase in operating cash flow from continuing operations in 2015 was primarily due to the timing of required pension contributions and the collection of the eBorders settlement with the U.K. Home Office, which was resolved in the first quarter 2015, partially offset by higher cash taxes.

Summary Financial Results

3rd Quarter

Nine Months

($ in millions, except per share data)

Change

Bookings

17,366

16,943

Net Sales

16,919

16,683

Income from Continuing Operations attributable to

Raytheon Company

-13.0%

EPS from Continuing Operations

-10.9%

Operating Cash Flow from Continuing Operations

Workdays in Fiscal Reporting Calendar

The Company had bookings of $5.3 billion in the

$5.9 billion

. Year-to-date 2015 bookings were $17.4 billion, resulting in a year-to-date book-to-bill ratio of 1.03 and 1.06 on a trailing four quarter basis. Year-to-date 2014 bookings were

$16.9 billion

In the

, the Company repurchased 2.4 million shares of common stock for $250 million. Year-to-date 2015, the Company repurchased 7.0 million shares of common stock for $750 million.

The Company ended the

$2.3 billion

of net debt. Net debt is defined as total debt less cash and cash equivalents and short-term investments.

Third quarter 2015 results include items related to the Raytheon|Websense transaction which are excluded from segment operating performance since management does not consider those items in evaluating the segment.

Raytheon|Websense Acquisition Accounting Adjustments

Operating Income

Deferred Revenue Adjustment

Amortization of Intangibles

Acquisition Related Costs

Amounts excluded from segment results

See Attachment F for a reconciliation of how each of these items is calculated.

Deferred Revenue Adjustment represents the impact of fair value adjustments to deferred revenue related to Raytheon|Websense, including historical Raytheon Cyber Products acquisitions.

Backlog

($ in millions)

Period Ending

Q3 2015

Q3 2014

33,571

33,247

Funded Backlog

24,361

22,888

23,092

Backlog at the end of the

$33.6 billion

, an increase of approximately $0.3 billion compared to the

. Funded backlog was

$24.4 billion

, an increase of approximately $1.5 billion compared to the

Outlook

The Company has updated its financial outlook for 2015 for higher sales and to reflect actuarial updates to its pension plans. Charts containing additional information on the Company's 2015 outlook are available on the Company's website at www.raytheon.com/ir.

2015 Financial Outlook

Current

Prior (7/23/15)

Net Sales ($B)

23.0 - 23.3*

22.7 - 23.2

RW Deferred Revenue Adjustment ($M)

RW Amortization of Intangibles ($M)

FAS/CAS Adjustment ($M)

Interest Expense, net ($M)

(225) - (235)

Diluted Shares (M)

Approx. 305*

305 - 306

Effective Tax Rate

Approx. 27.0%

$6.47 - $6.62

Operating Cash Flow from Continuing Operations ($B)

2.5 - 2.7

Reflects a $12 million or $0.03 per share reduction in FAS/CAS Adjustment due to the annual update in Q3 2015 of our actuarial estimates for pension and other postretirement benefit plans.

RW Deferred Revenue Adjustment and RW Amortization of Intangibles represent the unfavorable impact of the acquisition accounting adjustments to record acquired deferred revenue at fair value and the amortization of acquired intangible assets, respectively, related to Raytheon|Websense, including historical Raytheon Cyber Products acquisitions.

* Denotes change from prior guidance.

Segment Results

The Company's reportable segments are: Integrated Defense Systems (IDS); Intelligence, Information and Services (IIS); Missile Systems (MS); Space and Airborne Systems (SAS); and Raytheon|Websense (RW).

% Change

Operating Margin

Integrated Defense Systems (IDS) had

net sales of

$1,533 million

, up 7 percent compared to

$1,428 million

. The increase in net sales was primarily driven by higher sales on international Patriot programs.

IDS recorded

$212 million

of operating income in the

$230 million

. The change in operating income in the third quarter 2015 was primarily due to a change in program mix.

During the quarter, IDS booked $158 million to continue development on the Air Defense Operations Center (ADOC) for Qatar.

Nine Months 2015 operating income includes the favorable $181 million impact of the first quarter 2015 eBorders settlement.

NM = Not...


More