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Author: wolfeman Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 294  
Subject: Earnings In Line Date: 4/19/1999 9:22 PM
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SAVANNAH, GA. (April 19) BUSINESS WIRE -April 19, 1999--

Strong Sales Momentum Continues; Company On Target To Increase

EPS By At Least 25 Percent In 1999
Gulfstream Aerospace Corporation (NYSE: GAC) today reported revenues of $625.1 million for the first quarter ended March 31, 1999, an increase of 24 percent from revenues of $503.4 million in the 1998 first quarter. Net income for the 1999 quarter was $58.5 million, up 44 percent from net income of $40.5 million in the same period last year. Diluted earnings per share for the 1999 first quarter were $0.79, up 46 percent from $0.54 in the first quarter 1998.

The Company's income from operations for the first quarter was $97.3 million, an increase of 41 percent from $69.2 million in the first quarter of 1998. As a percentage of revenues, first quarter gross margin, excluding pre-owned aircraft, was 23.9 percent, versus 22.1 percent in the three months ended March 31, 1998. Gulfstream delivered 17 aircraft (ten Gulfstream IV-SPs and seven Gulfstream Vs) in the 1999 first quarter, versus 13 aircraft (six Gulfstream IV-SPs and seven Gulfstream Vs) in the first quarter last year.

Gulfstream recorded 12 aircraft orders (seven Gulfstream IV-SPs and five Gulfstream Vs) for the three months ended March 31, 1999, compared with 13 aircraft in the same period last year. First quarter 1999 orders included 11 new contracts plus the recording of the second of 12 Middle East Shares aircraft. The Middle East Shares contract was signed in the first quarter 1998. Orders for that program are recorded at green aircraft delivery. Including the Middle East Shares contract and 18 options for new aircraft, the Company's backlog totaled 129 aircraft (60 Gulfstream IV-SPs and 69 Gulfstream Vs) valued at $4.1 billion at March 31, 1999.

"Gulfstream delivered another outstanding quarter," said Theodore J. Forstmann, Gulfstream chairman and chief executive officer. "In addition to achieving impressive operating and financial performance, we continue to see strong demand for our products. The U.S. Air Force's recent decision to expand its fleet of Gulfstream V aircraft is a strong endorsement of the value this remarkable aircraft brings to the government and special mission market.

"The outlook for 1999 for Gulfstream is excellent," continued Forstmann. "We expect to meet our goals for 1999 which include the delivery of 65 production aircraft, continued margin improvement and at least 25 percent growth in earnings per share to $3.75. We also remain confident that we will grow earnings at least 15 percent in 2000." FIRST QUARTER 1999 HIGHLIGHTS -- In February, Gulfstream announced its intention to purchase up to

$200 million of the Company's common stock from time to time in

the open market. For the quarter ended March 31, 1999, Gulfstream
had purchased 960,000 shares valued at approximately $45 million. -- The United States Air Force ordered an additional three

Gulfstream V aircraft, bringing the total number of Gulfstream V

aircraft ordered by the United States Government to six. The
three new aircraft will be used to support the  Commanders-in-Chief, and for counter terrorism and disaster

response missions. 125 Gulfstream aircraft are in government  service in 34 countries worldwide. -- Gulfstream delivered the second green aircraft into the Middle

East Shares fractional ownership program. The aircraft will enter  operational service later this year.

Gulfstream Aerospace Corporation is the leading designer, developer, manufacturer and marketer of the world's most technologically advanced intercontinental business jet aircraft. The Company has produced more than 1,000 aircraft for customers around the world since 1958. Gulfstream offers a range of aircraft products and services to meet the aviation needs of its customers, including the Gulfstream IV-SP(R), the ultra-long range Gulfstream V(R), Gulfstream Shares(R), Gulfstream Financial Services, Gulfstream LeaseSM, Gulfstream Pre-Owned Aircraft Sales, Gulfstream Charter ServicesSM, Gulfstream Management ServicesSM and Gulfstream ServiceCareSM. In 1998, Gulfstream reported revenues of $2.4 billion. The Company employs approximately 7,800 people at eight locations.

This press release includes forward-looking statements which are subject to risks and uncertainties. Actual results might differ materially from those projected in the forward-looking statements. Additional information concerning factors that could cause actual results to materially differ from those in the forward-looking statements is contained in the Company's Securities and Exchange Commission filings.

Note to Editors - See Financial Table Attached

   GULFSTREAM AEROSPACE CORPORATION  ($ in millions, except per share data)  Condensed Statement of Income Information (1)   Quarter ended March 31,  ----------------------  1999 1998  ---------- ----------   (Unaudited)  Net revenues $ 625.1 $ 503.4 Gross margin 134.7 99.3 Income from operations 97.3 69.2 Net income (2) 58.5 40.5  Earnings Per Share: (3)   Earnings per share - basic $ .81 $ .56  Earnings per share - diluted .79 .54  ----------------------------------------------------------------------  Aircraft orders (4) 11 13 Mid East Shares orders 1 -  ---------- ----------  Total New Aircraft orders 12 13 Aircraft contracted - not in  Financial Contract Backlog (4) - 12  New Aircraft deliveries:   Green - GIV-SP 10 6  Green - GV 7 7  ---------- ----------  Total Green deliveries 17 13   Completion - Gulfstream Aircraft 10 7  - Non - Gulfstream Aircraft 1 N/A  ---------- ----------  Total Completion deliveries 11 7  Pre-Owned Aircraft deliveries 2 3 ----------------------------------------------------------------------   Financial Contract Backlog (4)   March 31, December 31,  1999 1998  ---------- ----------  Units 101 106 Dollars (in billions) $ 3.2 $ 3.3 ----------------------------------------------------------------------   Selected Business Segment Information (5)   Quarter ended March 31,  ----------------------  1999 1998  ---------- ---------- Net Revenues  New Aircraft $ 489.4 $ 386.8  Aircraft Services 83.1 49.9  Segment Gross Margin  New Aircraft $ 120.8 $ 87.4  Aircraft Services 15.8 9.9 ----------------------------------------------------------------------   See notes on the accompanying page.   GULFSTREAM AEROSPACE CORPORATION  ($ in millions, except per share data)  Condensed Balance Sheet Information   March 31, December 31,  1999 1998  ---------- ----------  Cash and cash equivalents $ 75.2 $ 38.1 Inventories 752.9 729.9 Total current assets 1,171.1 1,055.6 Customer deposits 653.7 582.7 Long-term debt 342.3 361.0 Total stockholders' equity (6) 215.2 195.7  ----------------------------------------------------------------------  (1) The Company's financial results for the quarter ended March 31,  1999 include the results of operations of K-C Aviation. This  acquisition took place during the third quarter of 1998.  Acquisition related charges of inventory step-up and goodwill  amortization totaled $1.7 million for the quarter and are  included in Income from operations.  (2) In the quarter ended March 31,1999, the Company recorded an  income tax provision of $33.6 million based on an estimated  effective tax rate of 36.5% compared with an income tax provision  of $24.3 million based on an estimated effective tax rate of  37.5% in the quarter ended March 31, 1998.  (3) Basic earnings per share ("EPS") is computed based on net income  divided by the weighted average common shares outstanding.  Diluted EPS is computed by dividing net income by the weighted  average common shares outstanding plus the incremental shares  that would have been outstanding under stock option plans.  (4) During the first quarter of 1998, the Company signed a $335  million contract for 12 Gulfstream IV-SPs to expand its highly  successful Gulfstream Shares fractional ownership program to the  Middle East region. In 1993, the Company established very  stringent deposit requirements for recording aircraft into its  backlog. The contract for the Middle East Shares expansion  includes modestly different deposit requirements early in the  program. The Company has decided for the initial phase of the  program to record these orders into backlog when the aircraft are  delivered. The first green aircraft delivery for this Program  occurred during the third quarter of 1998 and the second delivery  occurred in the first quarter of 1999. The remaining 10  undelivered aircraft are not included in the Company's financial  contract backlog.  (5) The Company operates in three reportable segments: New Aircraft,  Aircraft Services and Pre-Owned Aircraft. See Note 15 to the  Company's 1998 Annual Report to Stockholders for a detailed  description of the Company's reportable segments.  (6) During March 1999, the Company established a program to  repurchase up to an additional $200 million of its common stock.  The purchases will be made from time to time in the open market  or through negotiated transactions as market conditions warrant.  At March 31, 1999, the Company had repurchased 960,000 shares, at  an average price of $46.79 per share, for an aggregate amount of  $44.9 million. 

wolfeman
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