Orbital Revenues Up 6% in 2013
Dulles, VA, February 13, 2014— Orbital Sciences Corporation today reported its fourth quarter and full year 2013 financial results. Fourth quarter 2013 revenues were US$ 375.4 million, a new quarterly record for the company, compared to US$ 354.6 million in the fourth quarter of 2012. Fourth quarter 2013 operating income was US$ 30.5 million, or 8.1% operating margin, compared to US$ 31.3 million, or 8.8% operating margin, in the fourth quarter of 2012.
Net income in the fourth quarter of 2013 was US$ 16.9 million, or $0.28 diluted earnings per share, compared to US$ 13.9 million, or $0.23 diluted earnings per share, in the fourth quarter of 2012. Adjusted net income was US$ 18.2 million, or $0.30 adjusted diluted earnings per share*, in the fourth quarter of 2013. Orbital's free cash flow* in the fourth quarter of 2013 was US$ 12.7 million compared to $0.3 million in the fourth quarter of 2012.
Full year 2013 revenues were US$ 1,365.3 million, compared to US$ 1,436.8 million in 2012. Operating income was US$ 113.5 million in 2013, or 8.3% operating margin, compared to US$ 112.6 million, or 7.8% operating margin, in 2012. Full year 2013 net income was US$ 68.4 million, or US$ 1.13 diluted earnings per share, compared to $61.0 million, or $1.02 diluted earnings per share, in 2012. Adjusted net income was $69.7 million, or $1.15 adjusted diluted earnings per share, in 2013. Full year free cash flow was positive US$ 17.0 million in 2013, compared to negative US$ 34.3 million in 2012.
Mr. David W. Thompson, Orbital's Chairman and Chief Executive Officer, said, "Orbital's fourth quarter financial results reflected solid growth in revenues, earnings per share and free cash flow, and capped a very successful year in 2013. The company's operations last year were highlighted by the successful introduction of our Antares medium-class space launch vehicle and Cygnus cargo logistics spacecraft, as we concluded a multi-year research and development program to create these products and set the stage for expanded operational performance in 2014 and beyond." He added, "With new orders and option exercises for 38 major launch vehicles and satellites and other new business wins last year valued at $2.3 billion, Orbital looks forward to a promising year in 2014."
New Business Highlights
In the fourth quarter of 2013, Orbital recorded approximately $155 million in new firm and option contract bookings. In addition, the company received approximately US$ 470 million of option exercises under existing contracts. For full year 2013, Orbital received approximatelyUS $1.70 billion in firm and option bookings and approximately $640 million of option exercises under existing contracts. As of December 31, 2013, the company's firm contract backlog was approximately $2.15 billion and its total backlog (including options, indefinite-quantity contracts and undefinitized orders) was approximately $5.16 billion.
Operational Highlights
In the fourth quarter of 2013, Orbital successfully carried out several important satellite and launch vehicle missions for its customers, highlighted by the completion of the Commercial Orbital Transportation Services (COTS) demonstration mission to the International Space Station (ISS) for NASA in October. This successful demonstration mission marked the completion of the research and development phase of the Antares rocket and Cygnus spacecraft projects, paving the way for the company's first operational cargo delivery mission to the ISS under the CRS contract, which was launched in January 2014. Also in the fourth quarter, the company launched its 25th Minotaur rocket for the U.S. Air Force from Wallops Island, Virginia, deployed the SES-8 commercial communications satellite for SES of Luxembourg, conducted two short-range Coyote target launches for the U.S. Navy, and launched four suborbital research rockets carrying scientific experiments for NASA. For all of 2013, Orbital averaged approximately one satellite or rocket mission, major test event or product delivery to customers per week, making it one of the busiest periods in the company's history.
Orbital expects another active year of operations in 2014, with up to 60 operational events planned this year. These will include three CRS missions (including the CRS-1 mission launched in January) using the Antares rocket and Cygnus spacecraft, the deployment of an Earth science satellite for NASA and commercial communications satellites for Thaicom of Thailand and Hispasat of Spain, as well as numerous launches of missile defense vehicles and smaller research rockets, and product deliveries to customers for future use.
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