<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported) MAY 26, 1998
WHITTAKER CORPORATION
(Exact Name of Registrant as Specified in Its Charter)
DELAWARE
(State or Other Jurisdiction of Incorporation)
0-20609 95-4033076
(Commission File Number) (I.R.S. Employer Identification No.)
1955 N. SURVEYOR AVENUE, SIMI VALLEY, CA 93063
(Address of Principal Executive Offices)
(805) 526-5700
(Registrant's Telephone Number, Including Area Code)
<PAGE>
ITEM 5. OTHER EVENTS
On May 26, 1998, the Registrant announced its earnings for its second
fiscal quarter, ended April 30, 1998. A copy of the press release is
attached hereto as Exhibit 99.1.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) EXHIBITS
<TABLE>
<CAPTION>
Exhibit No. Description
----------- -----------
<S> <C>
99.1 Press Release, dated May 26, 1998.
</TABLE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
WHITTAKER CORPORATION
By: /s/ Lynne M. O. Brickner
---------------------------------------
Lynne M. O. Brickner
Vice President, Secretary and General Counsel
Dated: May 26, 1998
2
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EXHIBIT INDEX
-------------
<TABLE>
<CAPTION>
Exhibit No. Description
- ----------- -----------
<S> <C>
99.1 Press Release, dated May 26, 1998.
</TABLE>
3
<PAGE>
Exhibit 99.1
[LOGO OF WHITTAKER]NEWS RELEASE
WHITTAKER CORPORATION
1955 N. Surveyor Avenue, Simi Valley, California 93063
805/526-5700
Release: May 26, 1998
Contact: John Otto
Chief Financial Officer
(805) 526-5700, ext. 662
WHITTAKER CORPORATION ANNOUNCES SECOND QUARTER FY1998 RESULTS
SIMI VALLEY, CA, MAY 26, 1998--Whittaker Corporation (NYSE: WKR) today
announced the results of its operations for the second quarter ended April 30,
1998.
Commenting on the quarter, Joseph F. Alibrandi, Chairman and Chief
Executive Officer said, "This quarter's operating results demonstrate that
Whittaker is well positioned to continue to benefit from strong aerospace
industry fundamentals. In addition, our new credit facility will enable us to
finance selective acquisitions that will enhance our aerospace controls and
safety systems businesses."
CONTINUING OPERATIONS
- ---------------------
Sales from continuing operations for the current quarter were $34,959,000,
compared to $22,936,000 for the second quarter of fiscal year 1997. Operating
profit from continuing operations for the second quarter of 1998 was $9,200,000,
compared to $634,000 for the second quarter last year. Net income from
continuing operations for the current quarter was $5,863,000, or $0.52 per
share, compared to a net loss from continuing operations of $4,654,000, or $0.42
per share, for the second quarter last year.
For the six month period ended April 30, 1998, sales from continuing
operations were $66,758,000, compared to $42,626,000 for the previous year.
Operating profit from continuing operations for the first six months of 1998 was
$14,698,000, compared to $1,770,000 for the first six months of 1997. For the
first six months of 1998, net income from continuing operations was $6,185,000,
or $0.55 per share, compared to a net loss from continuing operations of
$7,203,000, or $0.65 per share for the first six months of 1997.
DISCONTINUED OPERATIONS
- -----------------------
Included in the Company's net income of $16,270,000 for the first six
months of 1998 is income of $10,085,000, or $0.90 per share, resulting largely
from the sale of Whittaker Xyplex, Inc., during the first quarter of 1998.
<PAGE>
NEW CREDIT FACILITY
- -------------------
The Company expects to enter into a new $85,000,000 credit agreement with a
group of lenders led by CIBC Oppenheimer prior to the end of May. The facility
will consist of a $40,000,000 five-year term loan and a $45,000,000 three-year
revolving credit facility. Interest rates under the new credit agreement will
be substantially lower than under the current agreement. Proceeds from the new
credit facility will be used to repay all of the indebtedness outstanding under
the Company's current credit facility. The new facility will provide additional
availability to fund working capital requirements and acquisitions.
* * *
Statements made herein that are not based on historical fact are "forward
looking statements" within the meaning of the Private Litigation Reform Act of
1995. Actual results could differ from these forward looking statements for
many reasons including failure to retain customers or to attract new customers,
development of competing products, and delays in developing new products and
markets.
Whittaker Corporation develops innovative fluid control and fire safety
systems for aerospace and industrial applications and turnkey data networking
solutions for hospitals and other enterprises. For additional information on
Whittaker, contact the Internet Home Page at http://www.wkr.com.
# # #
<PAGE>
WHITTAKER CORPORATION
Consolidated Statements of Income
($ IN 000)
UNAUDITED
<TABLE>
<CAPTION>
FOR THE THREE MONTHS FOR THE SIX MONTHS
ENDED APRIL 30, ENDED APRIL 30,
1998 1997 1998 1997
--------- ------------ --------- ------------
(restated) (restated)
<S> <C> <C> <C> <C>
Sales................................................ $ 34,959 $ 22,936 $ 66,758 $ 42,626
Costs and expenses
Cost of sales....................................... 18,607 14,897 37,296 27,150
Engineering and development......................... 211 286 548 510
Selling, general and administrative................. 6,941 7,119 14,216 13,196
--------- ------------ --------- ------------
Operating Profit 9,200 634 14,698 1,770
Interest expense.................................... 3,237 4,529 8,143 8,357
Interest income..................................... (762) (97) (980) (246)
Other expense....................................... 769 856 1,251 862
--------- ------------ --------- ------------
Income (loss) from continuing operations before 5,956 (4,654) 6,284 (7,203)
provision (benefit) for taxes.......................
Provision (benefit) for taxes........................ 93 -- 99 --
--------- ------------ --------- ------------
Income (loss) from continuing operations............. 5,863 (4,654) 6,185 (7,203)
Discontinued operations
Loss from discontinued operations................... -- (29,789) (45,323)
Gain on disposal of discontinued operations......... -- -- 10,085 --
--------- ------------ --------- ------------
Net income (loss).................................... $ 5,863 $ (34,443) $ 16,270 $ (52,526)
========= ============ ========= ============
Average common shares outstanding (000).............. 11,205 11,149 11,205 11,131
========= ============ ========= ============
Basic income (loss) per share
Continuing operations............................... $ 0.52 $ (0.42) $ 0.55 $ (0.65)
Discontinued operations
Loss from discontinued operations.................. -- (2.67) -- (4.07)
Gain on disposal of discontinued operations........ -- -- 0.90 --
--------- ------------ --------- ------------
Net income (loss) per share.......................... $ 0.52 $ (3.09) $ 1.45 $ (4.72)
========= ============ ========= ============
Diluted income (loss) per share
Continuing operations............................... $ 0.51 $ (0.42) $ 0.54 $ (0.65)
Discontinued operations
Loss from discontinued operations.................. -- (2.67) -- (4.07)
Gain on disposal of discontinued operations........ -- -- 0.87 --
--------- ------------ --------- ------------
Net income (loss) per share.......................... $ 0.51 $ (3.09) $ 1.41 $ (4.72)
========= ============ ========= ============
</TABLE>
<PAGE>
WHITTAKER CORPORATION
Consolidated Balance Sheets
($ in 000)
<TABLE>
<CAPTION>
AT APRIL 30, AT OCTOBER 31,
1998 1997
--------------- ---------------
(UNAUDITED)
<S> <C> <C>
ASSETS
- ------
Current Assets
- --------------
Cash.................................................... $ 434 $ 6,366
Receivables............................................. 23,936 27,337
Inventories............................................. 41,013 37,032
Other current assets.................................... 1,626 914
Income taxes recoverable................................ 2,261 3,238
Deferred income taxes................................... 10,893 11,244
Net current assets of discontinued operations........... (423) 7,766
--------- ---------
Total Current Assets.................................... 79,740 93,897
--------- ---------
Property and equipment, at cost......................... 30,939 31,381
Less accumulated depreciation and amortization.......... (21,473) (21,550)
--------- ---------
Net Property and Equipment.............................. 9,466 9,831
--------- ---------
Other Assets
- ------------
Goodwill, net of amortization........................... 13,854 14,032
Other intangible assets, net of amortization............ 1,025 1,119
Notes and other noncurrent receivables.................. 3,282 3,443
Other noncurrent assets................................. 8,931 7,672
Net assets held for sale or development................. 15,214 15,214
Net noncurrent assets of discontinued operations........ -- 22,234
--------- ---------
Total Other Assets...................................... 42,306 63,714
--------- ---------
Total Assets $ 131,512 $ 167,442
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
- ------------------------------------
Current Liabilities
- -------------------
Current maturities of long-term debt.................... $ 86,776 $ 129,353
Accounts payable........................................ 8,588 9,579
Accrued liabilities..................................... 25,501 31,331
--------- ---------
Total Current Liabilities............................... 120,865 170,263
--------- ---------
Other Liabilities
- -----------------
Long-term debt.......................................... 25 222
Other noncurrent liabilities............................ 11,508 12,603
Deferred income taxes................................... 13,567 15,077
--------- ---------
Total Other Liabilities................................. 25,100 27,902
--------- ---------
Stockholders' Equity
- --------------------
Capital stock
Preferred stock........................................ 1 1
Common Stock........................................... 112 112
Additional paid-in capital.............................. 72,041 72,041
Retained deficit........................................ (86,607) (102,877)
--------- ---------
Total Stockholders' Deficit............................. (14,453) (30,723)
--------- ---------
Total Liabilities and Stockholders' Equity $ 131,512 $ 167,442
========= =========
</TABLE>
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WHITTAKER CORPORATION
Industry Segment Data
($ IN 000)
UNAUDITED
<TABLE>
<CAPTION>
For the Three Months For the Six Months
Ended April 30, Ended April 30,
1998 1997 1998 1997
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Sales:
Aerospace................................ $ 33,043 $ 21,228 $ 62,023 $ 40,918
Integration Services..................... 1,916 1,708 4,735 1,708
-------- -------- -------- --------
$ 34,959 $ 22,936 $ 66,758 $ 42,626
======== ======== ======== ========
OPERATING PROFIT (LOSS):
Aerospace................................ $ 11,618 $ 4,992 $ 19,696 $ 8,477
Integration Services..................... (971) (1,094) (1,509) (1,094)
Corporate and Other...................... (1,447) (3,264) (3,489) (5,613)
-------- -------- -------- --------
$ 9,200 $ 634 $ 14,698 $ 1,770
======== ======== ======== ========
</TABLE>
