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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 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): April 29, 1999
ORBITAL SCIENCES CORPORATION
Delaware 0-18287 06-1209561
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(State or other jurisdiction of (Commission File (I.R.S. Employer
incorporation or organization) Number) Identification No.)
21700 Atlantic Boulevard
Dulles, Virginia 20166
(703) 406-5000
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(Address of principal executive offices) (Zip Code)
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ITEM 5. OTHER EVENTS.
On April 29, 1999, Orbital Sciences Corporation ("Orbital" or the
"company") announced its first quarter 1999 financial results. On a consolidated
basis, the company reported revenues of $204,338,000 in the first quarter of
1999, up approximately 10% from first quarter 1998 revenues of $186,159,000.
Alternatively, first quarter 1999 revenues increased 16% from fourth quarter
1998 revenues. EBITDA (as defined below) totaled approximately $15,044,000 in
the first quarter of 1999 as compared to $22,168,000 in the comparable 1998
quarter. The company generated a consolidated quarterly net loss of
approximately $15,871,000 (or $0.43 per share) in 1999 compared to net income
of $4,745,000 (or $0.13 per share) in 1998.
The company's quarterly financial results by business sector were as
follows:
Orbital's space and ground infrastructure systems sector, including
launch vehicles, satellites, electronics and sensors, transportation management
systems, and ground systems, reported revenues of $175,200,000 in the first
quarter, an increase of approximately 10% from first quarter 1998 revenues of
$159,600,000. The sector produced net income of $14,600,000 in the quarter
compared to first quarter 1998 net income of $15,200,000. EBITDA in the first
quarter of 1999 was approximately $23,500,000 as compared to $26,200,000 in
the comparable 1998 quarter
Orbital's satellite access products sector, consisting of its
Magellan satellite navigation, positioning and communications products, reported
revenues of $26,200,000 in the first quarter, comparable to first quarter 1998
revenues of $26,500,000. Due to product price increases and cost structure
reductions, the sector generated a reduced net loss of $1,566,000 in the first
quarter of 1999 compared to a net loss of $1,766,000 in the first quarter of
1998. This sector generated an EBITDA loss in this year's first quarter of
approximately $900,000 compared to an EBITDA loss of $2,400,000 in the
comparable 1998 quarter.
The company's satellite services sector consists of its ORBCOMM and
ORBIMAGE affiliates as well as the company's recently formed ORBNAV subsidiary,
which is developing satellite-aided automotive information services, and other
new satellite-based service businesses. Satellite services revenues were
approximately $12,900,000 in the first quarter, up 360% compared to $2,800,000
in the first quarter of 1998. (Orbital generally does not include the revenue of
its ORBCOMM and ORBIMAGE satellite services affiliates in its consolidated
revenues.) Total sector EBITDA losses were $8,000,000, while net losses were
approximately $28,900,000. The losses were primarily attributable to ORBCOMM but
also included start-up losses related to the joint venture between ORBNAV and
Hertz and other emerging satellite services.
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Orbital Sciences Corporation
First Quarter Financial Results Summary
<TABLE>
<CAPTION>
March 31, 1999 March 31, 1998
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<S> <C> <C>
Revenues $ 204,338,000 $ 186,159,000
Gross Profit 46,311,000 51,374,000
EBITDA(1) 15,044,000 22,168,000
Operating Income 3,636,000 13,365,000
Net Income (Loss) (15,871,000) 4,475,000
Diluted Earnings Per Share (0.43) 0.13
</TABLE>
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(1) Represents earnings before interest, taxes, depreciation, amortization and
equity method adjustments ("EBITDA"). EBITDA is provided because it is a
measure often used in the industry. EBITDA should not be considered as an
alternative to operating or net income (as determined in accordance with GAAP)
as an indicator of our performance or to cash flow from operations (as
determined in accordance with GAAP) as a measure of liquidity. EBITDA is not
necessarily comparable with similarly titled measures for other companies.
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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.
ORBITAL SCIENCES CORPORATION
Date: May 3, 1999 By: /s/ Jeffrey V. Pirone
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Jeffrey V. Pirone
Executive Vice President and
Chief Financial Officer
