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I guess it's academic now, but we have grown by 30% year over year again.

Gulfstream Reports 30 Percent Increase in Earnings Per Share for Second Quarter 1999

July 15, 1999 09:32 AM
SAVANNAH, Ga.--(BUSINESS WIRE)--July 15, 1999--

First Half EPS Up 37 Percent; Company Meeting All Financial and Operating Goals

Gulfstream Aerospace Corporation GAC today reported revenues of $707.8 million for the second quarter ended June 30, 1999, an increase of 27 percent from revenues of $557.0 million in the 1998 second quarter. Net income for the 1999 quarter was $69.8 million, up 26 percent from net income of $55.6 million in the same period last year. Diluted earnings per share for the 1999 second quarter were $0.95, up 30 percent from $0.73 in the second quarter 1998.

The Company's income from operations for the second quarter was $115.5 million, an increase of 26 percent from $91.6 million in the second quarter of 1998. Gulfstream delivered 17 aircraft (nine Gulfstream IV-SPs, eight Gulfstream Vs) in the 1999 second quarter, versus 15 aircraft (eight Gulfstream IV-SPs and seven Gulfstream Vs) in the second quarter last year. As a percentage of revenues, second quarter gross margin, excluding pre-owned aircraft, was 24.3 percent, versus 24.0 percent for the three months ended June 30, 1998.

"Gulfstream has again delivered excellent financial performance for the quarter," said Theodore J. Forstmann, Gulfstream chairman and chief executive officer. "We're seeing strong demand for both the Gulfstream IV-SP and Gulfstream V in the United States and internationally and we remain on track to meet our earnings per share goal of at least $3.75 in 1999."

As expected, Gulfstream recorded 10 aircraft orders (five Gulfstream IV-SPs and five Gulfstream Vs) for the three months ended June 30, 1999. The total number of contracts signed to date in 1999 was 21 bringing the Company's backlog, including 18 options and ten undelivered aircraft on order for the Middle East Shares program, to 122 aircraft (56 Gulfstream IV-SPs and 66 Gulfstream Vs) valued at approximately $3.9 billion as of June 30, 1999. The Company has sold 146 Gulfstream Vs since its introduction - with nearly 50 of them in operational service today.

For the six months ended June, 30, 1999, revenues were $1.33 billion, up 26 percent from the comparable 1998 period. Net income increased 34 percent to $128.3 million in the first six months of 1999, from net income of $96.1 million in the first half of 1998. Diluted earnings per share were $1.74, an increase of 37 percent from $1.27 in the same period one year ago. Gross margin, as a percentage of revenues (excluding pre-owned aircraft) for the first half was 24.1 percent versus 23.1 percent a year ago.

In May, Gulfstream and General Dynamics announced that they had entered into a definitive agreement for General Dynamics to acquire Gulfstream in a one-for-one stock swap. The transaction, which will be accounted for as a pooling of interests, is expected to be tax-free to Gulfstream shareholders. A special meeting of stockholders of Gulfstream will be held on Friday, July 30, 1999 to consider and vote on the proposal to adopt and approve the Agreement and Plan of Merger.


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