Leonardo DRS Announces Financial Results for Third Quarter 2024
Leonardo DRS reported strong Q3 2024 financial results with revenue up 16% to $812 million and net earnings up 21% to $57 million year-over-year. The company achieved significant growth across key metrics, including Adjusted EBITDA increasing 22% to $100 million and diluted EPS rising 17% to $0.21. Bookings reached $1.1 billion with a book-to-bill ratio of 1.3x, while backlog grew 75% to $8.3 billion. Based on strong performance, the company raised its 2024 guidance and provided preliminary 2025 outlook projecting 5-8% revenue growth.
Leonardo DRS ha riportato risultati finanziari solidi per il terzo trimestre del 2024, con un incremento del fatturato del 16% a $812 milioni e un aumento degli utili netti del 21% a $57 milioni rispetto all'anno precedente. L'azienda ha registrato una crescita significativa in vari indicatori chiave, inclusi EBITDA rettificato in aumento del 22% a $100 milioni e utile per azione diluito in crescita del 17% a $0,21. Gli ordini hanno raggiunto $1,1 miliardo con un rapporto ordini/fatturato di 1,3x, mentre l'arretrato è cresciuto del 75% a $8,3 miliardi. Basandosi su questa forte performance, l'azienda ha alzato le proprie previsioni per il 2024 e fornito una proiezione preliminare per il 2025 prevedendo una crescita del fatturato tra il 5% e l'8%.
Leonardo DRS informó resultados financieros sólidos para el tercer trimestre de 2024, con un aumento de ingresos del 16% a $812 millones y aumento de ganancias netas del 21% a $57 millones en comparación con el año anterior. La compañía logró un crecimiento significativo en métricas clave, incluyendo EBITDA ajustado que creció un 22% a $100 millones y utilidad por acción diluida que subió un 17% a $0.21. Las reservas alcanzaron $1.1 mil millones con una relación de reservas a facturación de 1.3x, mientras que el backlog creció un 75% a $8.3 mil millones. Basándose en este sólido desempeño, la empresa elevó su guía para 2024 y proporcionó una proyección preliminar para 2025, anticipando un crecimiento de ingresos del 5% al 8%.
레오나르도 DRS는 2024년 3분기에 대한 강력한 재무 결과를 보고했으며, 매출이 16% 증가하여 8억 1200만 달러에 이르고 순이익이 21% 증가하여 5700만 달러에 도달했습니다. 이 회사는 조정 EBITDA가 22% 증가하여 1억 달러에 달하고 희석 주당순이익이 17% 상승하여 0.21 달러에 이르는 등 주요 지표에서 상당한 성장을 달성했습니다. 수주량은 11억 달러에 이르렀고 수주 대 매출 비율은 1.3배를 기록했으며, 잔고는 75% 증가하여 83억 달러에 달했습니다. 이러한 강력한 성과를 바탕으로, 회사는 2024년 가이드를 상향 조정하고 2025년 전망을 발표하며 5-8%의 매출 성장을 예측했습니다.
Leonardo DRS a annoncé de solides résultats financiers pour le troisième trimestre 2024, avec un chiffre d'affaires en hausse de 16% à 812 millions de dollars et un bénéfice net en hausse de 21% à 57 millions de dollars par rapport à l'année précédente. L'entreprise a réalisé une croissance significative dans plusieurs indicateurs clés, y compris un EBITDA ajusté en hausse de 22% à 100 millions de dollars et un bénéfice par action dilué en augmentation de 17% à 0,21 dollar. Les nouvelles commandes ont atteint 1,1 milliard de dollars avec un rapport commandes/facturation de 1,3x, tandis que le carnet de commandes a augmenté de 75% pour atteindre 8,3 milliards de dollars. Sur la base de cette performance solide, l'entreprise a relevé ses prévisions pour 2024 et a fourni une perspective préliminaire pour 2025, prévoyant une croissance du chiffre d'affaires de 5 à 8%.
Leonardo DRS meldete starke Finanzzahlen für das dritte Quartal 2024, mit einem Umsatzanstieg von 16% auf 812 Millionen Dollar und einem Anstieg des Nettogewinns um 21% auf 57 Millionen Dollar im Jahresvergleich. Das Unternehmen erzielte ein signifikantes Wachstum in mehreren wichtigen Kennzahlen, wobei bereinigtes EBITDA um 22% auf 100 Millionen Dollar und verwässerter Gewinn pro Aktie um 17% auf 0,21 Dollar anstieg. Die Buchungen erreichten 1,1 Milliarden Dollar mit einem Buch-zu-Rechnung-Verhältnis von 1,3x, während der Auftragsbestand um 75% auf 8,3 Milliarden Dollar wuchs. Basierend auf dieser starken Leistung hob das Unternehmen seine Prognose für 2024 an und gab eine vorläufige Aussicht für 2025 mit einem prognostizierten Umsatzwachstum von 5-8% bekannt.
- Revenue increased 16% YoY to $812 million
- Net earnings grew 21% YoY to $57 million
- Adjusted EBITDA up 22% to $100 million with margin expansion of 60 bps
- Backlog reached record $8.3 billion, up 75% YoY
- Raised 2024 guidance across all metrics
- Strong book-to-bill ratio of 1.3x with $1.1 billion in new bookings
- None.
Insights
The Q3 2024 results demonstrate robust financial performance across key metrics. Revenue growth of
Particularly noteworthy is the margin expansion, with Adjusted EBITDA margin improving by
The strong performance in advanced infrared sensing, force protection and tactical radars aligns with current defense priorities and modernization efforts. The significant
The company's positioning in critical defense technologies, particularly in the ASC segment, suggests continued growth potential amid rising global security concerns. The robust bookings in naval network computing and electric power and propulsion systems indicate strong alignment with the U.S. Navy's modernization initiatives.
-
Revenue:
, up$812 million 16% year-over-year -
Net Earnings:
, up$57 million 21% year-over-year -
Adjusted EBITDA:
, up$100 million 22% year-over-year -
Diluted EPS:
, up$0.21 17% year-over-year -
Adjusted Diluted EPS:
, up$0.24 20% year-over-year -
Bookings:
(book-to-bill ratio of 1.3x)$1.1 billion -
Backlog:
, up$8.3 billion 75% year-over-year - Raises 2024 guidance across all metrics
- Initiates preliminary 2025 guidance framework
CEO Commentary
“We delivered strong third quarter results, highlighted by robust bookings, mid-teens organic revenue growth, increases to all of our key profit metrics and healthy free cash flow generation. Our strategy, execution focus and steadfast commitment to our customers are driving outcomes that continue to exceed our expectations,” said Bill Lynn, Chairman and CEO of Leonardo DRS.
Summary Financial Results
(In millions, except per share amounts) |
Three Months Ended |
|
|
|
Nine Months Ended |
|
|
||||||||||||||
September 30, |
|
|
|
September 30, |
|
|
|||||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
Change |
|
|
2024 |
|
|
|
2023 |
|
|
Change |
||
Revenues |
$ |
812 |
|
|
$ |
703 |
|
|
16 |
% |
|
$ |
2,253 |
|
|
$ |
1,900 |
|
|
19 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net Earnings |
$ |
57 |
|
|
$ |
47 |
|
|
21 |
% |
|
$ |
124 |
|
|
$ |
94 |
|
|
32 |
% |
Diluted weighted average number of shares outstanding (WASO) |
|
268.299 |
|
|
|
265.000 |
|
|
|
|
|
267.357 |
|
|
|
263.675 |
|
|
|
||
Diluted Earnings Per Share (EPS) |
$ |
0.21 |
|
|
$ |
0.18 |
|
|
17 |
% |
|
$ |
0.46 |
|
|
$ |
0.36 |
|
|
28 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Non-GAAP Financial Measures (1) |
|
|
|
|
|
||||||||||||||||
Adjusted EBITDA |
$ |
100 |
|
|
$ |
82 |
|
|
22 |
% |
|
$ |
252 |
|
|
$ |
193 |
|
|
31 |
% |
Adjusted EBITDA Margin |
|
12.3 |
% |
|
|
11.7 |
% |
|
60 bps |
|
|
11.2 |
% |
|
|
10.2 |
% |
|
100 bps |
||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted Net Earnings |
$ |
64 |
|
|
$ |
53 |
|
|
21 |
% |
|
$ |
149 |
|
|
$ |
111 |
|
|
34 |
% |
Adjusted Diluted EPS |
$ |
0.24 |
|
|
$ |
0.20 |
|
|
20 |
% |
|
$ |
0.56 |
|
|
$ |
0.42 |
|
|
33 |
% |
(1) The company reports its financials in accordance with
Year-over-year revenue growth reflected strong continued momentum and was
Higher volume was the primary driver for the year-over-year adjusted EBITDA growth and margin expansion in the quarter. Our volume expansion coupled with crisp operational performance translated to increases in our bottom-line metrics with quarterly net earnings, adjusted net earnings, diluted EPS and adjusted diluted EPS all higher compared to the prior year, despite a higher tax rate and expense.
Cash Flow and Balance Sheet
Net cash flow provided by operating activities was
Bookings and Backlog
(Dollars in millions) |
Three Months Ended |
|
Nine Months Ended |
||||||||
|
September 30, |
|
September 30, |
||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||
Bookings |
$ |
1,051 |
|
$ |
1,055 |
|
$ |
2,807 |
|
$ |
2,502 |
Book-to-Bill |
1.3x |
|
1.5x |
|
1.2x |
|
1.3x |
||||
Backlog |
$ |
8,264 |
|
$ |
4,719 |
|
$ |
8,264 |
|
$ |
4,719 |
The company recorded
Segment Results
Advanced Sensing and Computing (“ASC”) Segment
(Dollars in millions) |
Three Months Ended |
|
|
|
Nine Months Ended |
|
|
||||||||||||||
|
September 30, |
|
|
|
September 30, |
|
|
||||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
Change |
|
|
2024 |
|
|
|
2023 |
|
|
Change |
||
Revenues |
$ |
533 |
|
|
$ |
431 |
|
|
24 |
% |
|
$ |
1,458 |
|
|
$ |
1,226 |
|
|
19 |
% |
Adjusted EBITDA |
$ |
64 |
|
|
$ |
48 |
|
|
33 |
% |
|
$ |
160 |
|
|
$ |
121 |
|
|
32 |
% |
Adjusted EBITDA Margin |
|
12.0 |
% |
|
|
11.1 |
% |
|
90 bps |
|
|
11.0 |
% |
|
|
9.9 |
% |
|
110 bps |
||
Bookings |
$ |
685 |
|
|
$ |
820 |
|
|
|
|
$ |
1,888 |
|
|
$ |
1,693 |
|
|
|
||
Book-to-Bill |
1.3x |
|
1.9x |
|
|
|
1.3x |
|
1.4x |
|
|
While ASC bookings for the third quarter were lower than the prior year, Q3 bookings continued to reflect solid customer demand for our naval network computing, advanced infrared sensing and tactical communications technologies. Revenue growth on advanced infrared sensing and tactical radar programs remained as the major contributors for the year-over-year increase in the segment. Favorable program mix, improved program execution and higher volume drove the adjusted EBITDA growth and margin expansion for the quarter.
Integrated Mission Systems (“IMS”) Segment
(Dollars in millions) |
Three Months Ended |
|
|
|
Nine Months Ended |
|
|
||||||||||||||
|
September 30, |
|
|
|
September 30, |
|
|
||||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
Change |
|
|
2024 |
|
|
|
2023 |
|
|
Change |
||
Revenues |
$ |
285 |
|
|
$ |
277 |
|
|
3 |
% |
|
$ |
812 |
|
|
$ |
692 |
|
|
17 |
% |
Adjusted EBITDA |
$ |
36 |
|
|
$ |
34 |
|
|
6 |
% |
|
$ |
92 |
|
|
$ |
72 |
|
|
28 |
% |
Adjusted EBITDA Margin |
|
12.6 |
% |
|
|
12.3 |
% |
|
30 bps |
|
|
11.3 |
% |
|
|
10.4 |
% |
|
90 bps |
||
Bookings |
$ |
366 |
|
|
$ |
235 |
|
|
|
|
$ |
919 |
|
|
$ |
809 |
|
|
|
||
Book-to-Bill |
1.3x |
|
0.8x |
|
|
|
1.1x |
|
1.2x |
|
|
Demand for our capabilities in electric power and propulsion and force protection drove quarterly bookings in the segment. The modest revenue growth in the segment reflects increases from our force protection programs. Adjusted EBITDA increased as a result of higher volume and slightly improved net program execution in Q3.
2024 Guidance
Leonardo DRS is increasing its 2024 guidance as specified in the table below:
Measure |
Current 2024 Guidance |
|
Prior 2024 Guidance |
Revenue |
|
|
|
Adjusted EBITDA |
|
|
|
Tax Rate |
|
|
|
Diluted WASO |
268.0 million |
|
268.0 million |
Adjusted Diluted EPS |
|
|
|
Preliminary 2025 Guidance Framework
The company is anticipating
The company does not provide a reconciliation of forward-looking adjusted EBITDA and adjusted diluted EPS, due to the inherent difficulty in forecasting and quantifying the adjustments that are necessary to calculate such non-GAAP measures without unreasonable effort. Material changes to any one of these items could have a significant effect on future GAAP results.
Conference Call
Leonardo DRS management will host a conference call beginning at 10:00 a.m. ET on October 30, 2024 to discuss the financial results for its third quarter 2024.
A live audio broadcast of the conference call along with a supplemental presentation will be available to the public through links on the Leonardo DRS Investor Relations website (https://investors.leonardodrs.com).
A replay of the conference call will be available on the Leonardo DRS website approximately 2 hours after the conclusion of the conference call.
About Leonardo DRS
Headquartered in
Forward-Looking Statements
In this press release, when using the terms the “company”, “DRS”, “we”, “us” and “our,” unless otherwise indicated or the context otherwise requires, we are referring to Leonardo DRS, Inc. This press release contains forward-looking statements and cautionary statements within the meaning of the Private Securities Litigation Reform Act of 1995. Some of the forward-looking statements can be identified by the use of forward-looking terms such as “believes,” “expects,” “may,” “will,” “shall,” “should,” “would,” “could,” “seeks,” “aims,” “strives,” “targets,” “projects,” “guidance,” “intends,” “plans,” “estimates,” “anticipates” or other comparable terms. Forward-looking statements include, without limitation, all matters that are not historical facts. They appear in a number of places throughout this press release and include, without limitation, statements regarding our intentions, beliefs, assumptions or current expectations concerning, among other things, financial goals, financial position, results of operations, cash flows, prospects, strategies or expectations, and the impact of prevailing economic conditions.
Forward-looking statements are subject to known and unknown risks and uncertainties, many of which may be beyond our control. We caution you that forward-looking statements are not guarantees of future performance or outcomes and that actual performance and outcomes may differ materially from those made in or suggested by the forward-looking statements contained in this press release. In addition, even if future performance and outcomes are consistent with the forward-looking statements contained in this press release, those results or developments may not be indicative of results or developments in subsequent periods. New factors emerge from time to time that may cause our business not to develop as we expect, and it is not possible for us to predict all of them. Factors that could cause actual results and outcomes to differ from those reflected in forward-looking statements include, without limitation: disruptions or deteriorations in our relationship with the relevant agencies of the
You should read this press release completely and with the understanding that actual future results may be materially different from expectations. All forward-looking statements made in this press release are qualified by these cautionary statements. These forward-looking statements are made only as of the date of this filing, and we do not undertake any obligation, other than as may be required by law, to update or revise any forward-looking or cautionary statements to reflect changes in assumptions, the occurrence of events, unanticipated or otherwise, and changes in future operating results over time or otherwise.
Other risks, uncertainties and factors, including those discussed in our latest SEC filings under “Risk Factors” of our latest Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, all of which may be viewed or obtained through the investor relations section of our website at www.LeonardoDRS.com, could cause our actual results to differ materially from those projected in any forward-looking statements we make. Readers should read the discussion of these factors carefully to better understand the risks and uncertainties inherent in our business and underlying any forward-looking statements.
Consolidated Statements of Earnings (Unaudited)
(Dollars in millions, except per share amounts) |
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
September 30, |
|
September 30, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Revenues: |
|
|
|
|
|
|
|
||||||||
Products |
$ |
762 |
|
|
$ |
651 |
|
|
$ |
2,116 |
|
|
$ |
1,761 |
|
Services |
|
50 |
|
|
|
52 |
|
|
|
137 |
|
|
|
139 |
|
Total revenues |
|
812 |
|
|
|
703 |
|
|
|
2,253 |
|
|
|
1,900 |
|
Cost of revenues: |
|
|
|
|
|
|
|
||||||||
Products |
|
(601 |
) |
|
|
(504 |
) |
|
|
(1,661 |
) |
|
|
(1,365 |
) |
Services |
|
(32 |
) |
|
|
(37 |
) |
|
|
(91 |
) |
|
|
(97 |
) |
Total cost of revenues |
|
(633 |
) |
|
|
(541 |
) |
|
|
(1,752 |
) |
|
|
(1,462 |
) |
Gross profit |
|
179 |
|
|
|
162 |
|
|
|
501 |
|
|
|
438 |
|
General and administrative expenses |
|
(98 |
) |
|
|
(96 |
) |
|
|
(306 |
) |
|
|
(286 |
) |
Amortization of intangibles |
|
(6 |
) |
|
|
(5 |
) |
|
|
(17 |
) |
|
|
(16 |
) |
Other operating expenses, net |
|
— |
|
|
|
(2 |
) |
|
|
(5 |
) |
|
|
(10 |
) |
Operating earnings |
|
75 |
|
|
|
59 |
|
|
|
173 |
|
|
|
126 |
|
Interest expense |
|
(5 |
) |
|
|
(10 |
) |
|
|
(17 |
) |
|
|
(27 |
) |
Other, net |
|
(1 |
) |
|
|
(1 |
) |
|
|
(3 |
) |
|
|
(2 |
) |
Earnings before taxes |
|
69 |
|
|
|
48 |
|
|
|
153 |
|
|
|
97 |
|
Income tax provision |
|
12 |
|
|
|
1 |
|
|
|
29 |
|
|
|
3 |
|
Net earnings |
$ |
57 |
|
|
$ |
47 |
|
|
$ |
124 |
|
|
$ |
94 |
|
|
|
|
|
|
|
|
|
||||||||
Net earnings per share from common stock: |
|
|
|
|
|
|
|
||||||||
Basic earnings per share |
$ |
0.22 |
|
|
$ |
0.18 |
|
|
$ |
0.47 |
|
|
$ |
0.36 |
|
Diluted earnings per share |
$ |
0.21 |
|
|
$ |
0.18 |
|
|
$ |
0.46 |
|
|
$ |
0.36 |
|
Consolidated Balance Sheets (Unaudited)
(Dollars in millions, except per share amounts) |
|
September 30, |
|
December 31, |
||||
|
|
|
2024 |
|
|
|
2023 |
|
ASSETS |
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
198 |
|
|
$ |
467 |
|
Accounts receivable, net |
|
|
237 |
|
|
|
151 |
|
Contract assets |
|
|
997 |
|
|
|
908 |
|
Inventories |
|
|
363 |
|
|
|
329 |
|
Prepaid expenses |
|
|
29 |
|
|
|
21 |
|
Other current assets |
|
|
36 |
|
|
|
42 |
|
Total current assets |
|
|
1,860 |
|
|
|
1,918 |
|
Noncurrent assets: |
|
|
|
|
||||
Property, plant and equipment, net |
|
|
415 |
|
|
|
402 |
|
Intangible assets, net |
|
|
138 |
|
|
|
151 |
|
Goodwill |
|
|
1,238 |
|
|
|
1,238 |
|
Deferred tax assets |
|
|
124 |
|
|
|
123 |
|
Other noncurrent assets |
|
|
86 |
|
|
|
89 |
|
Total noncurrent assets |
|
|
2,001 |
|
|
|
2,003 |
|
Total assets |
|
$ |
3,861 |
|
|
$ |
3,921 |
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Short-term borrowings and current portion of long-term debt |
|
$ |
22 |
|
|
$ |
57 |
|
Accounts payable |
|
|
292 |
|
|
|
398 |
|
Contract liabilities |
|
|
315 |
|
|
|
335 |
|
Other current liabilities |
|
|
251 |
|
|
|
288 |
|
Total current liabilities |
|
|
880 |
|
|
|
1,078 |
|
Noncurrent liabilities: |
|
|
|
|
||||
Long-term debt |
|
|
345 |
|
|
|
349 |
|
Pension and other postretirement benefit plan liabilities |
|
|
34 |
|
|
|
36 |
|
Deferred tax liabilities |
|
|
6 |
|
|
|
4 |
|
Other noncurrent liabilities |
|
|
122 |
|
|
|
129 |
|
Total noncurrent liabilities |
|
|
507 |
|
|
|
518 |
|
Shareholders' equity: |
|
|
|
|
||||
Preferred stock, |
|
|
— |
|
|
|
— |
|
Common stock, |
|
|
3 |
|
|
|
3 |
|
Additional paid-in capital |
|
|
5,200 |
|
|
|
5,175 |
|
Accumulated deficit |
|
|
(2,682 |
) |
|
|
(2,806 |
) |
Accumulated other comprehensive loss |
|
|
(47 |
) |
|
|
(47 |
) |
Total shareholders' equity |
|
|
2,474 |
|
|
|
2,325 |
|
Total liabilities and shareholders' equity |
|
$ |
3,861 |
|
|
$ |
3,921 |
|
Consolidated Statements of Cash Flows (Unaudited)
(Dollars in millions) |
|
Nine Months Ended |
||||
|
|
September 30, |
||||
|
|
2024 |
|
2023 |
||
Operating activities |
|
|
|
|
||
Net earnings |
|
|
|
|
|
|
Adjustments to reconcile net earnings to net cash used in operating activities: |
|
|
|
|
||
Depreciation and amortization |
|
68 |
|
|
63 |
|
Deferred income taxes |
|
1 |
|
|
(13 |
) |
Share-based compensation expense |
|
16 |
|
|
12 |
|
Other |
|
1 |
|
|
1 |
|
Changes in assets and liabilities: |
|
|
|
|
||
Accounts receivable |
|
(86 |
) |
|
(34 |
) |
Contract assets |
|
(89 |
) |
|
(189 |
) |
Inventories |
|
(34 |
) |
|
(64 |
) |
Prepaid expenses |
|
(8 |
) |
|
3 |
|
Other current assets |
|
6 |
|
|
(8 |
) |
Other noncurrent assets |
|
14 |
|
|
13 |
|
Defined benefit obligations |
|
(2 |
) |
|
(8 |
) |
Other current liabilities |
|
(36 |
) |
|
(82 |
) |
Other noncurrent liabilities |
|
(21 |
) |
|
6 |
|
Accounts payable |
|
(106 |
) |
|
(129 |
) |
Contract liabilities |
|
(20 |
) |
|
25 |
|
Net cash used in operating activities |
|
( |
) |
|
( |
) |
Investing activities |
|
|
|
|
||
Capital expenditures |
|
(56 |
) |
|
(42 |
) |
Proceeds from sales of assets |
|
1 |
|
|
— |
|
Net cash used in investing activities |
|
( |
) |
|
( |
) |
Financing activities |
|
|
|
|
||
Net decrease in third party borrowings (maturities of 90 days or less) |
|
(35 |
) |
|
(11 |
) |
Repayment of third party debt |
|
(238 |
) |
|
(454 |
) |
Borrowings of third party debt |
|
230 |
|
|
555 |
|
Proceeds from stock issuance |
|
13 |
|
|
8 |
|
Cash outlay to reacquire equity instruments |
|
(4 |
) |
|
(1 |
) |
Other |
|
(8 |
) |
|
(4 |
) |
Net cash (used in) provided by financing activities |
|
( |
) |
|
|
|
Effect of exchange rate changes on cash and cash equivalents |
|
— |
|
|
— |
|
Net decrease in cash and cash equivalents |
|
( |
) |
|
( |
) |
Cash and cash equivalents at beginning of year |
|
467 |
|
|
306 |
|
Cash and cash equivalents at end of period |
|
|
|
|
|
|
Non-GAAP Financial Measures (Unaudited)
In addition to the results reported in accordance with
We believe the non-GAAP financial measures presented in this document will help investors understand our financial condition and operating results and assess our future prospects. We believe these non-GAAP financial measures, each of which is discussed in greater detail below, are important supplemental measures because they exclude unusual or non-recurring items as well as non-cash items that are unrelated to or may not be indicative of our ongoing operating results. Further, when read in conjunction with our GAAP results, these non-GAAP financial measures provide a baseline for analyzing trends in our underlying businesses and can be used by management as a tool to help make financial, operational and planning decisions. Finally, these measures are often used by analysts and other interested parties to evaluate companies in our industry by providing more comparable measures that are less affected by factors such as capital structure.
We recognize that these non-GAAP financial measures have limitations, including that they may be calculated differently by other companies or may be used under different circumstances or for different purposes, thereby affecting their comparability from company to company. In order to compensate for these and the other limitations discussed below, management does not consider these measures in isolation from or as alternatives to the comparable financial measures determined in accordance with
We define these non-GAAP financial measures as:
Adjusted EBITDA and Adjusted EBITDA Margin are defined as net earnings before income taxes, interest expense, amortization of acquired intangible assets, depreciation, deal-related transaction costs, restructuring costs and other one-time non-operational events (which include non-service pension expense, legal liability accrual reversals and foreign exchange impacts), then in the case of adjusted EBITDA margin dividing adjusted EBITDA by revenues.
(Dollars in millions) |
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
September 30, |
|
September 30, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net earnings |
$ |
57 |
|
|
$ |
47 |
|
|
$ |
124 |
|
|
$ |
94 |
|
Income tax provision |
|
12 |
|
|
|
1 |
|
|
|
29 |
|
|
|
3 |
|
Interest expense |
|
5 |
|
|
|
10 |
|
|
|
17 |
|
|
|
27 |
|
Amortization of intangibles |
|
6 |
|
|
|
5 |
|
|
|
17 |
|
|
|
16 |
|
Depreciation |
|
17 |
|
|
|
16 |
|
|
|
51 |
|
|
|
47 |
|
Deal-related transaction costs |
|
1 |
|
|
|
1 |
|
|
|
5 |
|
|
|
4 |
|
Restructuring costs |
|
— |
|
|
|
2 |
|
|
|
5 |
|
|
|
10 |
|
Other one-time non-operational events |
|
2 |
|
|
|
— |
|
|
|
4 |
|
|
|
(8 |
) |
Adjusted EBITDA |
$ |
100 |
|
|
$ |
82 |
|
|
$ |
252 |
|
|
$ |
193 |
|
Adjusted EBITDA Margin |
|
12.3 |
% |
|
|
11.7 |
% |
|
|
11.2 |
% |
|
|
10.2 |
% |
Adjusted Net Earnings and Adjusted Diluted EPS are defined as net earnings excluding amortization of acquired intangible assets, deal-related transaction costs, restructuring costs and other one-time non-operational events (which include non-service pension expense, legal liability accrual reversals and foreign exchange impacts), and the related tax impacts, then in the case of adjusted diluted EPS dividing adjusted net earnings by the diluted weighted average number of shares outstanding (WASO).
(In millions, except per share amounts) |
Three Months Ended |
|
Nine Months Ended |
||||||||||||
September 30, |
|
September 30, |
|||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net earnings |
$ |
57 |
|
|
$ |
47 |
|
|
$ |
124 |
|
|
$ |
94 |
|
Amortization of intangibles |
|
6 |
|
|
|
5 |
|
|
|
17 |
|
|
|
16 |
|
Deal-related transaction costs |
|
1 |
|
|
|
1 |
|
|
|
5 |
|
|
|
4 |
|
Restructuring costs |
|
— |
|
|
|
2 |
|
|
|
5 |
|
|
|
10 |
|
Other one-time non-operational events |
|
2 |
|
|
|
— |
|
|
|
4 |
|
|
|
(8 |
) |
Tax effect of adjustments (1) |
|
(2 |
) |
|
|
(2 |
) |
|
|
(6 |
) |
|
|
(5 |
) |
Adjusted Net Earnings |
$ |
64 |
|
|
$ |
53 |
|
|
$ |
149 |
|
|
$ |
111 |
|
|
|
|
|
|
|
|
|
||||||||
Per share information |
|
|
|
|
|
|
|
||||||||
Diluted WASO |
|
268.299 |
|
|
|
265.000 |
|
|
|
267.357 |
|
|
|
263.675 |
|
|
|
|
|
|
|
|
|
||||||||
Diluted EPS |
$ |
0.21 |
|
|
$ |
0.18 |
|
|
$ |
0.46 |
|
|
$ |
0.36 |
|
Adjusted Diluted EPS |
$ |
0.24 |
|
|
$ |
0.20 |
|
|
$ |
0.56 |
|
|
$ |
0.42 |
|
(1) Calculation uses an estimated statutory tax rate on non-GAAP adjustments.
Free Cash Flow is defined as the sum of the cash flows provided by (used in) operating activities, transaction-related expenditures (net of tax), capital expenditures and proceeds from sale of assets.
(Dollars in millions) |
Three Months Ended |
|
Nine Months Ended |
||||||||
|
September 30, |
|
September 30, |
||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||
Net cash provided by (used in) operating activities |
|
|
|
|
|
|
( |
) |
|
( |
) |
Transaction-related expenditures, net of tax |
— |
|
|
1 |
|
|
1 |
|
|
17 |
|
Capital expenditures |
(12 |
) |
|
(15 |
) |
|
(56 |
) |
|
(42 |
) |
Proceeds from sales of assets |
1 |
|
|
(1 |
) |
|
1 |
|
|
— |
|
Free Cash Flow |
|
|
|
|
|
|
( |
) |
|
( |
) |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241030657738/en/
Investors
Steve Vather
SVP, Investor Relations & Corporate Finance
+1 703 409 2906
stephen.vather@drs.com
Media
Michael Mount
VP, Communications & Public Affairs
+1 571 447 4624
mmount@drs.com
Source: Leonardo DRS, Inc.
FAQ
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