ARLINGTON, Va., Jan. 28, 2015 /PRNewswire/ -- Alliant Techsystems Inc. ("ATK") (NYSE: ATK) today reported operating results for the third quarter of its Fiscal Year 2015, which ended on December 28, 2014.

Third quarter sales were $1.3 billion, up 4 percent from the prior-year quarter of $1.2 billion, due to increased sales in the Defense and Aerospace Groups, partially offset by a decrease in the Sporting Group.

Operating profit in the third quarter was $105 million, compared to $146 million in the prior-year period. Excluding goodwill/trade name impairments, transaction costs, deferred financing costs, and inventory step-up, adjusted operating profit in the third quarter increased $4 million to $162 million (see reconciliation tables for details). Adjusted operating profit increased primarily due to higher sales in the Aerospace Group and lower pension expense.

As previously announced, during the third quarter, ATK recorded a $52 million ($48 million, net of tax, or $1.50 per share) non-cash, goodwill/trade name impairment charge associated with the Savage acquisition with only partial tax benefits. The basis for this impairment charge is due to the current market correction impacting demand for firearms. A major factor to this impairment is the significant impact to the valuations of other firearms market participants, which was considered as a basis for this impairment. Also contributing to this impairment is a decline in the company's near-term projected cash flows in the firearms business as reflected in ATK's previous guidance.

Net income in the third quarter was $46 million, down from $80 million in the prior-year period. Adjusted net income in the third quarter was $97 million, compared to $93 million in the prior year (see reconciliation table for details). Fully diluted earnings per share (EPS) were $1.43 compared to $2.46 in the prior-year period. On an adjusted basis, fully diluted EPS was $3.02 compared to $2.87 in the prior year (see reconciliation tables for details). Adjusted net income was relatively flat and adjusted EPS increased due to decreased share count as a result of the payoff of the convertible notes in the second quarter of FY15.

Orders for the quarter were $1 billion, down from $1.3 billion in the prior-year quarter. The decrease was driven by lower orders in the Aerospace and Sporting Groups, partially offset by an increase in the Defense Group. The company maintains a backlog of $6.7 billion.

During the third quarter, ATK achieved several strategic accomplishments, such as supporting the successful launch and test of an unmanned Orion capsule on a Delta IV rocket, completing a critical milestone toward America's exploration of deep space. The company completed critical testing for a precision-guided artillery fuze and received several industry awards and recognition for well-recognized brands like Bollé Sport protective eyewear, Bushnell Golf rangefinders, BLACKHAWK! holsters and Gold Tip arrows.

As previously announced, ATK and Orbital Sciences Corporation ("Orbital") (NYSE: ORB) have entered into a transaction agreement, whereby ATK's Aerospace and Defense Groups will merge with Orbital immediately following the spin-off of ATK's Sporting Group business into Vista Outdoor Inc. On January 27, during separate, special stockholder meetings, ATK stockholders approved the issuance of shares to stockholders of Orbital in connection with the merger, and Orbital stockholders approved the merger. ATK anticipates completing the transaction on February 9, 2015, subject to the satisfaction of remaining closing conditions.

"Strong execution in the quarter, and throughout the fiscal year, translated into the best third quarter in sales in company history," said Mark DeYoung, ATK President and Chief Executive Officer. "In the Aerospace and Defense Groups, we achieved year-over-year revenue increases and maintained double-digit margins. Our Aerospace Group continues to secure new programs and deliver strong results, while strategically positioning the company for future with key wins in commercial aerospace and space exploration. We have demonstrated our ability to acquire and integrate new and adjacent businesses into our existing framework, and I'm pleased with Bushnell's strong performance in operating profit for the quarter. With shareholder and regulatory approvals achieved, we are looking forward to closing the transactions and commencing on the strategies to deliver growth and shareholder value.

"Looking back on my five years as CEO, I'm proud of ATK's ability to deliver consistent earnings and cash flow growth. We delivered value to our shareholders through a balanced capital deployment strategy, including the completion of three strategic acquisitions, the implementation of a share repurchase program and the initiation of a quarterly cash dividend. ATK is an impressive company with innovative products, dedicated employees and a focus on execution excellence and shareholder value. We have strategically positioned ATK to create two leading companies, Vista Outdoor and Orbital ATK."

Please see segment and corporate results below.

SUMMARY OF REPORTED RESULTS

The following table presents the company's results for the third quarter of the fiscal year, which ended Dec. 28, 2014 (in thousands).

Sales:



                                                        Quarters Ended
                                                        --------------

                   December 28, 2014            December 29, 2013                       $              %

                                                                                 Change              Change
                                                                                 ------              ------

    Aerospace
     Group                             $324,633                                             $318,078              $6,555  2.1%


    Defense Group            466,016                                     455,249                         10,767      2.4%


    Sporting Group           506,881                                     524,228                       (17,347)   (3.3)%

    Eliminations            (46,152)                                   (89,151)                        42,999   (48.2)%
                                                                                                       ------

    Total sales                      $1,251,378                                           $1,208,404             $42,974  3.6%


Income before Interest, Income Taxes, and Noncontrolling Interest (Operating Profit):



                                                      Quarters Ended
                                                      --------------

                   December 28, 2014          December 29, 2013                       $            %
                                                                               Change            Change
                                                                               ------            ------

    Aerospace
     Group                            $40,000                                            $33,383               $6,617    19.8%


    Defense Group             48,553                                    53,078                      (4,525)    (8.5)%

    Sporting Group            18,322                                    81,119                     (62,797)   (77.4)%

    Corporate                (2,104)                                 (21,605)                      19,501      90.3%



    Total
     operating
     profit                          $104,771                                           $145,975            $(41,204) (28.2)%
                                     ========                                           ========             ========

SEGMENT RESULTS

ATK operates in a three business group structure: the Aerospace Group, the Defense Group and the Sporting Group.

AEROSPACE GROUP

Third quarter sales increased 2 percent to $325 million, compared to $318 million in the prior-year quarter, reflecting increased sales in the Aerospace Structures division, due to higher volumes and improved profit expectations. The increase was partially offset by a decrease in the Space Systems Operations division.

Operating profit in the quarter was $40 million, up 20 percent compared to $33 million in the prior-year quarter, reflecting the increased sales noted above.

DEFENSE GROUP

Sales in the third quarter increased 2 percent to $466 million, compared to $455 million in the prior-year quarter, driven by increased sales in the Missile Products and Armament Systems divisions, offset by decreases in the Small Caliber Systems and Defense Electronic Systems divisions.

Operating profit for the quarter was $49 million, down 9 percent, compared to $53 million in the prior-year period, reflecting the lower sales and program mix in the Small Caliber Systems division due to the transition to the new contract at the Lake City Army Ammunition Plant, partially offset by sales increases noted above.

SPORTING GROUP

Third quarter sales decreased 3 percent to $507 million, compared to $524 million in the prior-year quarter. Third quarter sales results were driven by a decrease in volume of .223/5.56 ammunition and firearms, and were partially offset by sales of $151 million from Bushnell, reflecting a full quarter of sales and year-over-year growth, compared to $85 million of sales from the November 2013 Bushnell acquisition.

Operating profit was $18 million in the third quarter, compared to $81 million in the prior-year quarter. Excluding the goodwill/trade name impairment and inventory step-up, adjusted operating profit was $71 million down 14 percent, compared to $82 million (see reconciliation tables for details). Adjusted operating profit decreased due to lower sales noted above, product mix and increased promotional activity in response to current market conditions. Operating profit from the Bushnell acquisition was $20 million or 13 percent, compared to $4 million of operating profit from the Bushnell acquisition in the prior year, including transition costs.

For additional information on the results of the Sporting Group please refer to the press release issued by Vista Outdoor on January 28, 2015 detailing the Vista Outdoor FY15 third quarter operating results.

CORPORATE AND OTHER

In the third quarter, corporate and other expenses totaled $2 million, compared to $22 million in the prior-year quarter. On an adjusted basis, corporate and other was income of $2.6 million compared to expense of $11.4 million in the prior-year quarter (see reconciliation table for details), primarily reflecting lower pension expense and intercompany profit eliminations. Pension expense primarily relates to the Aerospace and Defense Groups.

The tax rate for the quarter was 45.1 percent, reflecting the non-deductibility for tax purposes of the goodwill impairment. Excluding this item, the effective tax rate was 30.2 percent (see reconciliation table for details) compared to 32.7 percent in the prior year. The lower tax rate reflects the retroactive extension of the Federal R&D tax credit through December 31, 2014, as a result of the Tax Increase Prevention Act of 2014, signed into law on December 19, 2014 and the absence of nondeductible acquisition-related costs from the prior year.

Interest expense was $21 million compared to $29 million in the prior-year quarter, reflecting a lower interest rate and the absence of a prior-year write off of deferred financing costs. Year-to-date free cash flow was $72 million compared to free cash flow of $142 million in the prior-year period (see reconciliation table for details). The decrease in free cash flow primarily reflects increased pension contributions, cash taxes paid and capital expenditures, and quarterly timing of working capital, partially offset by the collection of the pension segment close-out payment at the Radford Army Ammunition Plant.

"In addition to strong sales performance in the quarter, ATK recorded the highest adjusted EPS in company history," said Neal Cohen, ATK Executive Vice President and Chief Financial Officer. "The company's operational and financial success have established a strong foundation for both Orbital ATK and Vista Outdoor."

OUTLOOK

On the anticipated closing date, February 9, 2015, ATK stockholders as of the applicable record date, February 2, will receive two shares of Vista Outdoor common stock for every one share of ATK common stock they hold. In connection with the merger, Orbital stockholders will receive 0.449 shares of ATK common stock for each share of Orbital common stock that they hold. Upon the closing of the transaction, ATK stockholders will own approximately 53.8 percent of Orbital ATK on a fully diluted basis and Orbital stockholders will own the remaining approximately 46.2 percent of Orbital ATK on a fully diluted basis.

Vista Outdoor common stock is expected to trade on a "when-issued" basis on the NYSE from January 29 through February 9. On the first trading day following the closing, which is expected to be February 10, "regular way" trading of Vista Outdoor common stock under the symbol "VSTO" will begin. Additional information concerning Vista Outdoor and the proposed spin-off is contained in Vista Outdoor's registration statement on Form 10.

Due to the pending closing of the anticipated transaction, ATK is not discussing its outlook or issuing financial guidance.

Reconciliation of Non-GAAP Financial Measures

Sales, Margins, and Earnings Per Share

The Sales, Margins, and Earnings Per Share (EPS) excluding goodwill/trade name impairment, transaction costs for the Bushnell acquisition and proposed transactions, Bushnell inventory step-up, and the write-off of deferred financing charges are non-GAAP financial measures that ATK defines as Sales, Margins, and EPS excluding the impact of these items. ATK management is presenting these measures so a reader may compare Sales, Margins, and EPS excluding these items as the measures provide investors with an important perspective on the operating results of the Company. ATK management uses these measurements internally to assess business performance, and ATK's definition may differ from those used by other companies.



    Total ATK for the Quarter Ending


    ---


    December 28, 2014:



                                     Sales              EBIT        Margin          Interest Expense Taxes            After-tax EPS
                                     -----              ----        ------          ---------------- -----            --------- ---

    As reported                              $1,251,378                    $104,771                      8.4%                   $21,394        $37,617       $45,647 $1.43

    Goodwill/trade name impairment                           52,220                                                              4,144  48,076          1.50

    Transaction costs                      -                  4,749                                                              1,828   2,921          0.09

    As adjusted                              $1,251,378                    $161,740                     12.9%                   $21,394        $43,589       $96,644 $3.02
                                             ==========                    ========                                             =======        =======       ======= =====


    December 29, 2013:

                                     Sales              EBIT        Margin          Interest Expense Taxes            After-tax EPS
                                     -----              ----        ------          ---------------- -----            --------- ---

    As reported                              $1,208,404                    $145,975                     12.1%                   $28,501        $38,954       $80,286 $2.46

    Transaction costs                      -                 10,200                                                              1,809   8,391          0.26

    Deferred financing costs
     written off                           -                      -                                           (6,166)           2,374   3,792          0.12

    Inventory step-up                      -                  1,377                                                                530     847          0.03

    As adjusted                              $1,208,404                    $157,552                     13.0%                   $22,335        $43,667       $93,316 $2.87
                                             ==========                    ========                                             =======        =======       ======= =====

    Sporting Group for the Quarter Ending
    -------------------------------------


    December 28,
     2014:



                                            Sales              EBIT          Margin
                                            -----              ----          ------

    As reported                                     $506,881                        $18,322  3.6%

    Goodwill/
     trade name
     impairment                                   -                 52,220

    As adjusted                                     $506,881                        $70,542 13.9%
                                                    ========                        =======


    December 29,
     2013:



                                          Sales              EBIT          Margin
                                          -----              ----          ------

    As reported                                     $524,228                        $81,119 15.5%

    Inventory
     step-up                                      -                  1,377

    As adjusted                                     $524,228                        $82,496 15.7%
                                                    ========                        =======



    Corporate for the Quarter Ended
    -------------------------------


    December 28, 2014:

                                       EBIT
                                       ----

    As reported                                 $(2,104)

    Transaction costs                    4,749
                                         -----

    As adjusted                                   $2,645
                                                  ======


    December 29, 2013:

                                    EBIT
                                    ----

    As reported                                $(21,605)

    Transaction costs                   10,200

    As adjusted                                $(11,405)
                                                ========

Effective Tax Rate

The effective tax rate excluding the effect of the non-deductibility for tax purposes of the goodwill impairment charge is a non-GAAP financial measure. ATK management is presenting this measure so that a reader may compare the effective tax rate excluding this item. ATK's definition may differ from that used by other companies.


    December 28, 2014:



                        Pre-tax Income          Tax Expense   Tax Rate
                        --------------          -----------   --------

    As reported                         $83,405                        $37,617 45.1%

    Goodwill impairment         41,020                      -

    As adjusted                        $124,425                        $37,617 30.2%
                                       ========                        =======

Free Cash Flow

Free cash flow is defined as cash provided by operating activities less capital expenditures, and excluding transaction costs incurred to date. ATK management believes free cash flow provides investors with an important perspective on the cash available for debt repayment, cash dividends, share repurchases and acquisitions after making the capital investments required to support ongoing business operations. ATK management uses free cash flow internally to assess both business performance and overall liquidity.



                    Nine months ended          Nine months ended

                    December 28, 2014          December 29, 2013
                    -----------------          -----------------

    Cash provided
     by operating
     activities                       $154,186                      $222,284

    Capital
     expenditures            (91,991)                     (80,580)

    Transaction
     costs incurred
     to date, net
     of tax                    10,124                             -
                               ------                           ---

    Free cash flow                     $72,319                      $141,704
                                       =======                      ========

ATK is an aerospace, defense and outdoor sports and recreation company with operations in 21 states, Puerto Rico and internationally. News and information can be found on the Internet at www.atk.com, on Facebook at www.facebook.com/atk or on Twitter @ATK.

Certain information discussed in this press release constitutes forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Although ATK believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be achieved. Forward-looking information is subject to certain risks, trends, and uncertainties that could cause actual results to differ materially from those projected. Among these factors are: the parties' ability to satisfy the conditions to the proposed transaction to spin-off ATK's sporting business and merge ATK's aerospace and defense businesses with Orbital Sciences Corporation; the parties' ability to meet expectations regarding the timing, completion, and accounting and tax treatments of the proposed transaction; the risk that the anticipated benefits and cost savings from the Bushnell acquisition may not be fully realized or may take longer than expected to realize; assumptions regarding the demand for Bushnell's products; the ability of ATK to retain and hire key personnel and maintain relationships with customers, suppliers and other business partners of Bushnell; costs or difficulties related to the integration of Bushnell; and changes in Bushnell's business, industry or economic conditions or competitive environment; assumptions related to the profitability of commercial aerospace structures programs; uncertainties related to the development of NASA's new Space Launch System; demand for commercial and military ammunition; sales levels of firearms; changes in federal and state firearms and ammunition regulation; changes in governmental spending, budgetary policies, including the impacts of sequestration under the Budget Control Act of 2011, and product sourcing strategies; the company's competitive environment; risks inherent in the development and manufacture of advanced technology; risks associated with compliance and diversification into new markets, including international markets; assumptions regarding the company's long-term growth strategy; assumptions regarding growth opportunities in international and commercial markets; increases in commodity costs, energy prices and production costs; foreign currency exchange rates and fluctuations in those rates; assumptions regarding orders; the terms and timing of awards and contracts; program performance; program terminations; changes in projections or cost estimates related to relocation of facilities; the outcome of contingencies, including litigation and environmental remediation; cybersecurity and other industrial and physical security threats; actual pension asset returns and assumptions regarding future returns, discount rates and service costs; capital market volatility and corresponding assumptions related to the company's shares outstanding; the availability of capital market financing; changes to accounting standards or policies; changes in tax rules or pronouncements; economic conditions; and the company's capital deployment strategy, including debt repayment, dividend payments, share repurchases, pension funding, mergers and acquisitions -- including the related costs and any integration thereof. ATK undertakes no obligation to update any forward-looking statements. For further information on factors that could impact ATK, and statements contained herein, please refer to ATK's most recent Annual Report on Form 10-K and any subsequent quarterly reports on Form 10-Q and current reports on Form 8-K filed with the U.S. Securities and Exchange Commission.



                                                                                         ALLIANT TECHSYSTEMS INC.

                                                                        CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

                                                                                       (preliminary and unaudited)


                                                               Quarter Ended                                                      Nine Months Ended
                                                               -------------                                                      -----------------

    (Amounts in thousands except per share
     data)                                   December 28, 2014                 December 29, 2013                  December 28, 2014               December 29, 2013
    --------------------------------------   -----------------                 -----------------                  -----------------               -----------------

    Sales                                                         $1,251,378                                                $1,208,404                              $3,800,017  $3,429,526

    Cost of sales                                      947,534                                919,234                                     2,885,513                   2,630,919

    Gross profit                                       303,844                                289,170                                       914,504                     798,607

    Operating expenses:

    Research and development                            12,194                                 11,899                                        31,024                      34,126

    Selling                                             62,122                                 56,952                                       185,366                     146,617

    General and administrative                          72,537                                 74,344                                       224,891                     198,003

    Goodwill and tradename impairment                   52,220                                      -                                       52,220                           -
                                                        ------                                    ---                                       ------                         ---

    Income before interest, income taxes,
     and noncontrolling interest                       104,771                                145,975                                       421,003                     419,861

    Interest expense                                  (21,394)                              (28,501)                                     (68,169)                   (57,634)

    Interest income                                         28                                  1,793                                            72                       1,884

    Income before income taxes and
     noncontrolling interest                            83,405                                119,267                                       352,906                     364,111

    Income taxes                                        37,617                                 38,954                                       126,262                     118,991

    Net income before noncontrolling
     interest                                           45,788                                 80,313                                       226,644                     245,120

    Less net income attributable to
     noncontrolling interest                               141                                     27                                           291                         210

    Net income attributable to Alliant
     Techsystems Inc                                                 $45,647                                                   $80,286                                $226,353    $244,910
                                                                                                                                                                    ========    ========


    Alliant Techsystems Inc. earnings per
     common share:

    Basic                                                              $1.44                                                     $2.55                                   $7.15       $7.73

    Diluted                                                            $1.43                                                     $2.46                                   $6.98       $7.55

    Cash dividends paid per share                                      $0.32                                                     $0.26                                   $0.96       $0.78

    Alliant Techsystems Inc. weighted-
     average number of common shares
     outstanding:

    Basic                                               31,693                                 31,536                                        31,676                      31,701

    Diluted                                             31,998                                 32,613                                        32,410                      32,418


    Comprehensive income:

    Net income before noncontrolling
     interest                                                        $45,788                                                   $80,313                                $226,644    $245,120

    Other comprehensive income (loss), net
     of tax:

    Pension and other postretirement benefit
     liabilities:

    Reclassification of prior service
     credits for pension and postretirement
     benefit plans recorded to net income,
     net of tax benefit of $2,955, $2,810,
     $8,864, and $8,430, respectively                  (4,761)                               (4,531)                                     (14,285)                   (13,594)

    Reclassification of net actuarial loss
     for pension and postretirement benefit
     plans recorded to net income, net of
     tax expense of $(11,582), $(14,198),
     and $(34,747) $(42,594), respectively              18,638                                 22,847                                        55,919                      68,541

    Change in fair value of derivatives, net
     of tax benefit (expense) of $1,623,
     $(1,406), $(885) and $342, respectively           (2,592)                                 2,246                                         1,414                       (547)

    Change in fair value of available-for-
     sale securities, net of tax (expense)
     benefit  of $(18), $(35), $(172), and
     $29, respectively                                      30                                     56                                           276                        (47)

    Change in cumulative translation
     adjustment, net of tax benefits of
     $4,806, $1,035, $9,650, and $1,011,
     respectively                                      (7,677)                               (1,654)                                     (15,415)                    (1,620)
                                                        ------                                 ------                                       -------                      ------

    Total other comprehensive income                     3,638                                 18,964                                        27,909                      52,733
                                                         -----                                 ------                                        ------                      ------

    Comprehensive income                                49,426                                 99,277                                       254,553                     297,853

    Less comprehensive income attributable
     to noncontrolling interest                            141                                     27                                           291                         210

    Comprehensive income attributable to
     Alliant Techsystems Inc                                         $49,285                                                   $99,250                                $254,262    $297,643
                                                                     =======                                                   =======                                ========    ========



                                                        ALLIANT TECHSYSTEMS INC

                                                 CONDENSED CONSOLIDATED BALANCE SHEETS

                                                      (preliminary and unaudited)


    (Amounts in thousands except share data)                    December 28, 2014               March 31, 2014
    ---------------------------------------                     -----------------               --------------

    ASSETS

    Current assets:

    Cash and cash equivalents                                                          $112,920                      $266,632

    Net receivables                                                     1,711,654                        1,473,820

    Net inventories                                                       552,390                          558,250

    Income tax receivable                                                  33,233                                -

    Deferred income taxes                                                  97,855                           93,616

    Other current assets                                                   81,400                           69,280

    Total current assets                                                2,589,452                        2,461,598

    Net property, plant, and equipment                                    692,992                          697,551

    Goodwill                                                            1,883,711                        1,916,921

    Net intangibles                                                       537,168                          577,850

    Deferred charges and other noncurrent assets                          116,396                          117,226

    Total assets                                                                     $5,819,719                    $5,771,146

    LIABILITIES AND EQUITY

    Current liabilities:

    Current portion of long-term debt                                                  $159,997                      $249,228

    Accounts payable                                                      341,697                          315,605

    Contract advances and allowances                                      142,742                          105,787

    Accrued compensation                                                  100,317                          128,821

    Accrued income taxes                                                        -                           7,877

    Other accrued liabilities                                             315,129                          322,832

    Total current liabilities                                           1,059,882                        1,130,150

    Long-term debt                                                      1,908,503                        1,843,750

    Noncurrent deferred income taxes                                      141,358                          117,515

    Postretirement and postemployment benefits                             67,253                           74,874

    Pension                                                               464,869                          557,775

    Other noncurrent liabilities                                          128,707                          124,944

    Total liabilities                                                   3,770,572                        3,849,008

    Commitments and contingencies

    Common stock-$.01 par value:

    Authorized-180,000,000 shares, Issued and
     outstanding-31,938,188 shares at December
     28, 2014 and 31,842,642 shares at March 31,
     2014                                                                     319                              318

    Additional paid-in-capital                                            435,746                          534,015

    Retained earnings                                                   2,984,960                        2,789,264

    Accumulated other comprehensive loss                                (652,900)                       (680,809)

    Common stock in treasury, at cost-9,638,009
     shares held at December 28, 2014 and
     9,712,877 shares held at March 31, 2014                            (729,832)                       (731,213)

    Total Alliant Techsystems Inc. stockholders'
     equity                                                             2,038,293                        1,911,575

    Noncontrolling interest                                                10,854                           10,563

    Total equity                                                        2,049,147                        1,922,138

    Total liabilities and equity                                                     $5,819,719                    $5,771,146
                                                                                     ==========                    ==========



                                                   ALLIANT TECHSYSTEMS INC

                                       CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

                                                 (preliminary and unaudited)


                                                                       Nine Months Ended
                                                                       -----------------

    (Amounts in thousands)                         December 28, 2014               December 29, 2013
    ---------------------                          -----------------               -----------------

    Operating Activities:

    Net income before noncontrolling
     interest                                                           $226,644                                  $245,120

    Adjustments to net income to
     arrive at cash provided by
     operating activities:

    Depreciation                                              78,605                                       70,160

    Amortization of intangibles                               25,433                                       17,239

    Amortization of debt discount                              3,212                                        5,481

    Amortization of deferred financing
     costs                                                     3,887                                        9,047

    Goodwill and tradename impairment                         52,220                                            -

    Deferred income taxes                                     31,920                                       12,170

    Loss on disposal of property                               2,448                                        3,908

    Share-based plans expense                                 12,005                                        9,437

    Excess tax benefits from share-
     based plans                                             (6,983)                                       (833)

    Changes in assets and liabilities
     net of effects of business
     acquisitions:

    Net receivables                                        (241,072)                                      46,217

    Net inventories                                            3,515                                     (47,679)

    Accounts payable                                          39,455                                    (177,435)

    Contract advances and allowances                          36,955                                     (11,910)

    Accrued compensation                                    (32,445)                                    (35,570)

    Accrued income taxes                                    (22,135)                                       9,726

    Pension and other postretirement
     benefits                                               (33,006)                                      41,284

    Other assets and liabilities                            (26,472)                                      25,922

    Cash provided by operating
     activities                                              154,186                                      222,284

    Investing Activities:

    Capital expenditures                                    (91,991)                                    (80,580)

    Acquisition of business, net of
     cash acquired                                                 -                                 (1,301,597)

    Proceeds from the disposition of
     property, plant, and equipment                            2,154                                        5,326

    Cash used for investing activities                      (89,837)                                 (1,376,851)

    Financing Activities:

    Borrowings on line of credit                             635,000                                      280,000

    Repayments of line of credit                           (535,000)                                   (280,000)

    Payments made on bank debt                              (28,250)                                    (25,000)

    Payments made to extinguish debt                       (404,462)                                   (510,000)

    Proceeds from issuance of long-
     term debt                                               150,000                                    1,560,000

    Payments made for debt issue costs                       (1,008)                                    (21,641)

    Purchase of treasury shares                              (9,001)                                    (53,270)

    Dividends paid                                          (30,657)                                    (24,951)

    Proceeds from employee stock
     compensation plans                                            -                                         729

    Excess tax benefits from share-
     based plans                                               6,983                                          833
                                                               -----                                          ---

    Cash provided by (used for)
     financing activities                                  (216,395)                                     926,700

    Effect of foreign currency
     exchange rate fluctuations on
     cash                                                    (1,666)                                         335
                                                              ------                                          ---

    Decrease in cash and cash
     equivalents                                           (153,712)                                   (227,532)

    Cash and cash equivalents at
     beginning of period                                     266,632                                      417,289

    Cash and cash equivalents at end
     of period                                                          $112,920                                  $189,757
                                                                        ========                                  ========


    Media Contact:                   Investor Contact:


    Amanda Covington                 Michael Pici

    Phone: 703-412-3231              Phone: 703-412-3216

    E-mail: amanda.covington@atk.com E-mail: michael.pici@atk.com

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/atk-reports-fy15-third-quarter-operating-results-300027362.html

SOURCE ATK