<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) MARCH 2, 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
The Registrant announced its earnings for the first quarter of 1998. A
copy of the press release dated March 2, 1998 is attached hereto as Exhibit
99.1.
The Registrant also restated its Selected Financial Data and Quarterly
Financial Data to reflect the effect of Financial Accounting Standards No.
128 "Earnings Per Share." During 1997 the Financial Accounting Standards
Board issued Financial Accounting Standards No. 128 "Earnings Per Share"
which is effective for the Registrant beginning with the first quarter of
fiscal 1998. Statement 128 replaces the previously reported primary and
fully diluted earnings per share with basic and diluted earnings per share.
Unlike primary earnings per share, basic earnings per share excludes the
potential dilutive effect of common stock equivalents such as stock
options, warrants and convertible securities. Diluted earnings per share is
similar to the Registrant's previously reported primary and fully diluted
earnings per share.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(C) EXHIBITS
Exhibit No. Description
----------- -----------
99.1 Press Release, dated March 2, 1998.
99.2 Selected Financial Data and Quarterly Financial Data
(Restated under FAS No. 128)
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 and General Counsel
Dated: March 2, 1998
2
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EXHIBIT INDEX
-------------
Exhibit No. Description
- ----------- -----------
99.1 Press Release, dated March 2, 1998.
99.2 Selected Financial Data and Quarterly Financial Data
(Restated under FAS No. 128)
3
<PAGE>
EXHIBIT 99.1
[LOGO OF WHITTAKER] NEWS RELEASE
WHITTAKER CORPORATION
1955 N. Surveyor Avenue, Simi Valley, California 93063
805/526-5700
Release: March 2, 1998
Contact: John Otto
Chief Financial Officer
(805) 526-5700, ext. 662
WHITTAKER CORPORATION FIRST QUARTER 1998 OPERATING PROFIT UP 384%
SIMI VALLEY, CA, MARCH 2, 1998-- Whittaker Corporation (NYSE: WKR)
today announced the results of its operations for the first quarter ended
January 31, 1998.
Commenting on the quarter, Joseph F. Alibrandi, Chairman and Chief
Executive Officer said, "The first quarter of 1998 marks our return to
profitability after a difficult 1997. The Aerospace group results
demonstrate the strength and vitality of our aerospace business. The Safety
Systems division of our Aerospace group has overcome the difficulties it
experienced in moving from Concord, California to our Simi Valley, California
campus and is poised for a strong year in 1998. In addition, since the end
of the first quarter, debt has been further reduced by $39 million. This
reduction will reduce interest expense going forward and enable us to
refinance the remaining bank debt at substantially lower interest rates."
CONTINUING OPERATIONS
---------------------
Sales from continuing operations for the current quarter were
$31,799,000, compared to $19,690,000 for the first quarter of fiscal year
1997. Operating profit from continuing operations for the first quarter of
1998 was $5,498,000 compared to $1,136,000 for the first quarter last year.
Net income from continuing operations for the current quarter was $322,000,
or $0.03 per share, compared to a net loss from continuing operations of
$2,549,000, or $0.23 per share, for the first quarter last year.
DISCONTINUED OPERATIONS
-----------------------
The Company is also reporting a gain on disposal of discontinued
operations in the first quarter of 1998 of $10,085,000, or $0.90 per share,
resulting largely from the sale of Whittaker Xyplex, Inc., during the first
quarter.
CREDIT AGREEMENT
----------------
The Company also announced that its bank lending group has waived
compliance with certain financial ratio covenants in the Company's credit
agreement until March 31, 1998.
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Statements made herein that are not based on historical fact are
"forward looking statements" within the meaning of the Private Litigation
Reform Act of 1995. Actual results could differ from these forward looking
statements for many reasons including failure to retain customers or to
attract new customers, development of competing products, and delays in
developing new products and markets.
Whittaker Corporation develops innovative fluid control and fire safety
systems for aerospace and industrial applications and turnkey data networking
solutions for hospitals and other enterprises. For additional information on
Whittaker, contact the Internet Home Page at http://www.wkr.com.
# # #
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WHITTAKER CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
($ in 000)
UNAUDITED
<TABLE>
<CAPTION>
For the Three Months
Ended January 31,
1998 1997
------------- --------------
<S> <C> <C>
(restated)
Sales..................................................................... $ 31,799 $ 19,690
Costs and expenses
Cost of sales........................................................... 18,689 12,253
Engineering and development............................................. 337 224
Selling, general and administrative..................................... 7,275 6,077
------------- --------------
Operating Profit 5,498 1,136
Interest expense........................................................ 4,906 3,828
Interest income......................................................... (218) (149)
Other expense........................................................... 482 6
------------- --------------
Income (loss) from continuing operations before provision
(benefit) for taxes....................................................... 328 (2,549)
Provision (benefit) for taxes............................................. 6 --
------------- --------------
Income (loss) from continuing operations.................................. 322 (2,549)
Discontinued operations
Loss from discontinued operations....................................... -- (15,534)
Gain on disposal of discontinued operations............................. 10,085 --
------------- --------------
Net income (loss)......................................................... $ 10,407 $ (18,083)
============= ==============
Average common shares outstanding (000)................................... 11,205 11,116
============= ==============
Basic income (loss) per share
Continuing operations................................................... $ .03 $ (.23)
Discontinued operations
Loss from discontinued operations..................................... -- (1.40)
Gain (loss) on disposal of discontinued operations.................... .90 --
------------- --------------
Net income (loss) per share............................................... $ .93 $ (1.63)
============= ==============
Diluted income (loss) per share
Continuing operations................................................... $ .03 $ (.23)
Discontinued operations
Loss from discontinued operations..................................... -- (1.40)
Gain (loss) on disposal of discontinued operations.................... .88 --
------------- --------------
Net income (loss) per share............................................... $ .91 $ (1.63)
============= ==============
</TABLE>
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WHITTAKER CORPORATION
CONSOLIDATED BALANCE SHEETS
($ in 000)
<TABLE>
<CAPTION>
At January 31, At October 31,
1998 1997
--------------- ---------------
(Unaudited)
<S> <C> <C>
ASSETS
- ------
Current Assets
- --------------
Cash.................................................... $ 37,550 $ 6,366
Receivables............................................. 24,597 27,337
Inventories............................................. 38,194 37,032
Other current assets.................................... 1,777 914
Income taxes recoverable................................ 3,238 3,238
Deferred income taxes................................... 11,291 11,244
Net current assets of discontinued operations........... (428) 7,766
--------------- ---------------
Total Current Assets.................................... 116,219 93,897
--------------- ---------------
Property and equipment, at cost......................... 31,850 31,381
Less accumulated depreciation and amortization.......... (22,060) (21,550)
--------------- ---------------
Net Property and Equipment.............................. 9,790 9,831
--------------- ---------------
Other Assets
- ------------
Goodwill, net of amortization........................... 13,942 14,032
Other intangible assets, net of amortization............ 1,070 1,119
Notes and other noncurrent receivables.................. 3,380 3,443
Other noncurrent assets................................. 9,081 7,672
Net assets held for sale or development................. 15,214 15,214
Net noncurrent assets of discontinued operations........ -- 22,234
--------------- ---------------
Total Other Assets...................................... 42,687 63,714
--------------- ---------------
Total Assets $ 168,696 $ 167,442
=============== ===============
LIABILITIES AND STOCKHOLDERS' EQUITY
- ------------------------------------
Current Liabilities
- -------------------
Current maturities of long-term debt.................... $ 127,313 $ 129,353
Accounts payable........................................ 10,126 9,579
Accrued liabilities..................................... 25,876 31,331
--------------- ---------------
Total Current Liabilities............................... 163,315 170,263
--------------- ---------------
Other Liabilities
- -----------------
Long-term debt.......................................... 91 222
Other noncurrent liabilities............................ 12,174 12,603
Deferred income taxes................................... 13,432 15,077
--------------- ---------------
Total Other Liabilities................................. 25,697 27,902
--------------- ---------------
Stockholders' Equity
- --------------------
Capital stock
Preferred stock....................................... 1 1
Common Stock.......................................... 112 112
Additional paid-in capital.............................. 72,041 72,041
Retained earnings....................................... (92,470) (102,877)
--------------- ---------------
Total Stockholders' Equity.............................. (20,316) (30,723)
--------------- ---------------
Total Liabilities and Stockholders' Equity $ 168,696 $ 167,442
=============== ===============
</TABLE>
<PAGE>
WHITTAKER CORPORATION
INDUSTRY SEGMENT DATA
($ in 000)
UNAUDITED
<TABLE>
<CAPTION>
For the Three Months
Ended January 31,
1998 1997
------------- ---------------
(restated)
<S> <C> <C>
SALES:
Aerospace............................... $ 28,980 $ 19,690
Integration Services.................... 2,819 --
------------- ---------------
$ 31,799 $ 19,690
============= ===============
OPERATING PROFIT (LOSS):
Aerospace............................... $ 8,078 $ 3,485
Integration Services.................... (538) --
Corporate and Other..................... (2,042) (2,349)
------------- ---------------
$ 5,498 $ 1,136
============= ===============
</TABLE>
<PAGE>
Exhibit 99.2
SELECTED FINANCIAL DATA
AND
QUARTERLY FINANCIAL DATA
(Restated Under FAS No.128)
During 1997 the Financial Accounting Standards Board issued Financial
Accounting Standards No. 128 "Earnings Per Share" which is effective for the
Company beginning with the first quarter of fiscal 1998. Statement 128 replaces
the previously reported primary and fully diluted earnings per share with basic
and diluted earnings per share. Unlike primary earnings per share, basic
earnings per share excludes the potential dilutive effect of common stock
equivalents such as stock options, warrants and convertible securities. Diluted
earnings per share is similar to the previously reported primary and fully
diluted earnings per share. Following are restated earnings per share amounts
for prior periods computed in compliance with Statement 128 as well as other
required disclosures.
<TABLE>
<CAPTION>
Selected Financial Data:
1997 1996 1995 1994 1993
---- ---- ---- ---- ----
Earnings (loss) per share
- -------------------------
<S> <C> <C> <C> <C> <C>
Basic earnings (loss) per share -
Continuing operations, before accounting
change and extraordinary item (2.95) 0.98 0.78 0.71 0.16
Accounting change 0.00 0.00 0.00 0.00 0.18
Discontinued operations (11.42) (2.69) 0.15 0.48 0.54
Extraordinary item (0.31) 0.00 0.00 0.00 0.00
Net income (loss) (14.68) (1.71) 0.93 1.19 0.88
Diluted earnings (loss) per share -
Continuing operations, before accounting
change and extraordinary item (2.95) 0.93 0.69 0.64 0.13
Accounting change 0.00 0.00 0.00 0.00 0.16
Discontinued operations (11.42) (2.56) 0.13 0.42 0.47
Extraordinary item (0.31) 0.00 0.00 0.00 0.00
Net income (loss) (14.68) (1.63) 0.82 1.06 0.76
</TABLE>
<PAGE>
Quarterly Financial Data:
<TABLE>
<CAPTION>
First Second Third Fourth
Quarter Quarter Quarter Quarter Year
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
1997
Loss per share
- --------------
Basic loss per share -
Continuing operations (0.23) (0.42) (0.71) (1.60) (2.95)
Discontinued operations (1.40) (2.67) (1.72) (5.61) (11.42)
Extraordinary item 0.00 0.00 0.00 (0.31) (0.31)
Net loss (1.63) (3.09) (2.43) (7.52) (14.68)
Diluted loss per share -
Continuing operations (0.23) (0.42) (0.71) (1.60) (2.95)
Discontinued operations (1.40) (2.67) (1.72) (5.61) (11.42)
Extraordinary item 0.00 0.00 0.00 (0.31) (0.31)
Net loss (1.63) (3.09) (2.43) (7.52) (14.68)
1996
Earnings (loss) per share
- -------------------------
Basic earnings (loss) per share -
Continuing operations 0.29 0.59 0.07 0.08 0.98
Discontinued operations (0.07) (1.10) (0.61) (0.82) (2.69)
Net income (loss) 0.22 (0.51) (0.54) (0.74) (1.71)
Diluted income (loss) per share -
Continuing operations 0.25 0.55 0.07 0.08 0.93
Discontinued operations (0.05) (1.02) (0.58) (0.79) (2.56)
Net income (loss) 0.20 (0.47) (0.51) (0.71) (1.63)
</TABLE>
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<PAGE>
The following table sets forth the computation of basic and diluted earnings
(loss) per share:
<TABLE>
<CAPTION>
(Dollar amounts in thousands except per share amounts)
F/Y 1997 F/Y 1996 F/Y 1995
-------- -------- --------
<S> <C> <C> <C>
Basic Earnings (Loss) Per Share
- -------------------------------
Income (loss) from continuing operations (32,930) 9,817 6,627
Less preferred dividends - 1 4
---------- ---------- ---------
Income (loss) from continuing operations available
for common stockholders (32,930) 9,816 6,623
========== ========== =========
Weighted average common shares outstanding 11,144,087 10,009,666 8,531,529
Adjustments - - -
---------- ---------- ---------
Common shares used for basic earnings (loss) per
share computations 11,144,087 10,009,666 8,531,529
========== ========== =========
Basic earnings (loss) per share from continuing operations (2.95) 0.98 0.78
========== ========== =========
Diluted Earnings (Loss) Per Share
- ---------------------------------
Income (loss) from continuing operations used in basic
earnings (loss) computations, above (32,930) 9,816 6,623
Adjustments - - -
---------- ---------- ---------
Income (loss) from continuing operations used in
diluted earnings (loss) per share calculations (32,930) 9,816 6,623
========== ========== =========
Common shares used for basic earnings (loss) per
share computations, above 11,144,087 10,009,666 8,531,529
Effect of dilutive securities -
Series D convertible preferred stock - 212,429 292,304
Stock options, using the treasury stock method - 291,115 801,661
---------- ---------- ---------
Common shares used for diluted earnings (loss) per
share computations 11,144,087 10,513,210 9,625,494
========== ========== =========
Diluted earnings (loss) per share from continuing
operations (2.95) 0.93 0.69
========== ========== =========
</TABLE>
The following potentially dilutive securities were excluded from the above
diluted earnings (loss) per share calculations because their inclusion would
have been anti-dilutive.
<TABLE>
<CAPTION>
F/Y 1997 F/Y 1996 F/Y 1995
-------- -------- --------
<S> <C> <C> <C>
Stock options 829,298 630,427 115,178
Common shares issuable upon conversion
of convertible subordinated debt 618,556 618,556 333,069
</TABLE>
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