This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to future events or our future financial performance. In some cases, you can identify forward-looking statements by terminology such as "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "might," "plan," "potential," "predict," "should" or "will," or the negative of such terms, or other comparable terminology. These forward-looking statements are only predictions based on the current intent and expectations of the management of Esterline, are not guarantees of future performance or actions, and involve risks and uncertainties that are difficult to predict and may cause Esterline's or its industry's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Esterline's actual results and the timing and outcome of events may differ materially from those expressed in or implied by the forward-looking statements due to risks detailed in Esterline's public filings with the Securities and Exchange Commission including its most recent Annual Report on Form 10-K.
ESTERLINE TECHNOLOGIES CORPORATION
Consolidated Statement of Operations (unaudited)
In thousands, except per share amounts
Three months ended Six months ended
May 1, May 2, May 1, May 2,
2009 2008 2009 2008
---------- ---------- ---------- ----------
Segment Sales
Avionics & Controls $ 169,111 $ 147,174 $ 297,579 $ 290,082
Sensors & Systems 86,755 97,332 171,310 190,873
Advanced Materials 103,636 113,527 200,330 234,403
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Net Sales 359,502 358,033 669,219 715,358
Cost of Sales 246,904 236,646 454,469 478,758
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112,598 121,387 214,750 236,600
Expenses
Selling, General and
Administrative 54,619 57,697 114,344 117,125
Research, Development and
Engineering 18,294 25,046 35,692 46,678
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Total Expenses 72,913 82,743 150,036 163,803
Other
Other Expense 2,714 86 7,728 86
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Total Other 2,714 86 7,728 86
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Operating Earnings From
Continuing Operations 36,971 38,558 56,986 72,711
Interest Income (370) (939) (781) (2,231)
Interest Expense 7,610 7,272 14,346 15,178
Gain on Derivative
Financial Instruments -- -- -- (1,850)
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Other Expense, Net 7,240 6,333 13,565 11,097
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Income From Continuing
Operations Before Income
Taxes 29,731 32,225 43,421 61,614
Income Tax Expense 4,316 8,107 6,484 7,749
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Income From Continuing
Operations Before Minority
Interest 25,415 24,118 36,937 53,865
Minority Interest (77) (171) (112) (193)
---------- ---------- ---------- ----------
Income From Continuing
Operations 25,338 23,947 36,825 53,672
Income From Discontinued
Operations, Net of Tax 375 1,238 15,831 2,497
---------- ---------- ---------- ----------
Net Earnings $ 25,713 $ 25,185 $ 52,656 $ 56,169
========== ========== ========== ==========
Earnings Per Share Basic:
Continuing Operations $ .85 $ .81 $ 1.24 $ 1.82
Discontinued Operations .02 .05 .53 .09
---------- ---------- ---------- ----------
Earnings Per Share - Basic $ .87 $ .86 $ 1.77 $ 1.91
========== ========== ========== ==========
Earnings Per Share Diluted:
Continuing Operations $ .85 $ .80 $ 1.23 $ 1.80
Discontinued Operations .01 .04 .53 .08
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Earnings Per Share -
Diluted $ .86 $ .84 $ 1.76 $ 1.88
========== ========== ========== ==========
Weighted Average Number
of Shares Outstanding
Basic 29,705 29,442 29,684 29,413
Weighted Average Number
of Shares Outstanding
Diluted 29,829 29,882 29,847 29,846
Consolidated Balance Sheet (unaudited)
In thousands May 1, May 2,
2009 2008
------------ ------------
Assets
Current Assets
Cash and cash equivalents $ 115,406 $ 109,626
Short-term investments -- 12,050
Accounts receivable, net 266,589 248,708
Inventories 286,194 289,678
Income tax refundable 7,635 6,965
Deferred income tax benefits 32,563 30,986
Prepaid expenses 15,036 16,953
Other current assets 55 --
------------ ------------
Total Current Assets 723,478 714,966
Property, Plant and Equipment, Net 219,820 216,630
Other Non-Current Assets
Goodwill 690,518 652,965
Intangibles, net 410,050 345,236
Debt issuance costs, net 8,151 8,326
Deferred income tax benefits 60,597 44,375
Other assets 38,137 26,696
------------ ------------
$ 2,150,751 $ 2,009,194
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Liabilities and Shareholders' Equity
Current Liabilities
Accounts payable $ 78,205 $ 93,423
Accrued liabilities 201,074 160,226
Credit facilities 2,398 6,819
Current maturities of long-term debt 12,482 7,699
Federal and foreign income taxes 316 10,744
------------ ------------
Total Current Liabilities 294,475 278,911
Long-Term Liabilities
Long-term debt, net of current
maturities 513,559 393,594
Deferred income taxes liabilities 122,499 122,394
Other liabilities 123,452 53,118
Commitments and Contingencies -- --
Minority Interest 2,909 3,161
Shareholders' Equity 1,093,857 1,158,016
------------ ------------
$ 2,150,751 $ 2,009,194
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Contact Information: Contact: Brian Keogh 425-453-9400