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L3 Releases Third Quarter 2017 Results
October 31, 2017 | L3 TechnologiesEstimated reading time: 2 minutes
L3 Technologies, Inc. today reported diluted EPS from continuing operations of $0.29 and adjusted diluted EPS from continuing operations of $1.96 for the quarter ended September 29, 2017 (2017 third quarter). Adjusted diluted EPS excludes a previously disclosed goodwill impairment charge of $1.67 per diluted share for Vertex Aerospace. Diluted EPS from continuing operations for the quarter ended September 23, 2016 (2016 third quarter) was $1.88. Net sales of $2,646 million for the 2017 third quarter increased by 6% compared to the 2016 third quarter.
Summary:
- Net sales increased 6% to $2,646 million
- Diluted earnings per share (EPS) from continuing operations of $0.29, including a goodwill impairment charge for Vertex Aerospace of $187 million, or $1.67 per diluted share
- Adjusted diluted EPS from continuing operations(1) of $1.96
- Net cash from operating activities from continuing operations of $316 million
- Book-to-bill ratio of 1.18x on funded orders of $3.1 billion
“Our third quarter results demonstrated that we are on a disciplined growth trajectory, with increased orders, sales, book-to-bill ratio and segment operating margins,” said Michael T. Strianese, L3’s Chairman and Chief Executive Officer. “We also achieved organic sales growth, primarily through strong performance in our Electronic and Communication Systems segments. During the quarter, we restructured our businesses in the Aerospace Systems segment, and as a result of the Fort Rucker recompetition loss, we recorded an impairment charge related to the Vertex Aerospace goodwill. We also began to evaluate strategic alternatives for Vertex Aerospace. Looking ahead, we are making good progress on our strategic priorities: improving operating efficiencies, making beneficial acquisitions, and driving topline growth.”
During the 2017 third quarter the company recorded a goodwill impairment charge of $187 million ($133 million after income taxes), or $1.67 per diluted share related to the decline in the estimated fair value of the Vertex Aerospace reporting unit due to the Fort Rucker Aviation Maintenance and Support contract recompetition loss. The goodwill impairment charge is included in consolidated operating income. Segment operating income represents earnings from the company’s business segments before the goodwill impairment charge. Segment operating income is used by management for purposes of evaluating the operating performance of the company’s business segments.
About L3 Technologies
Headquartered in New York City, L3 Technologies employs approximately 38,000 people worldwide and is a leading provider of a broad range of communication, electronic and sensor systems used on military, homeland security and commercial platforms. L3 is also a prime contractor in aerospace systems, security and detection systems and pilot training.
To learn more about L3, please visit the company’s website here.
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