FALLS CHURCH, Va., July 24, 2019 /PRNewswire/ --
- Revenue of $9.6 billion, up 4%
year-over-year
- Diluted earnings per share of $2.77, up 5.7% year-over-year
- Gulfstream G600 achieves FAA certification
General Dynamics (NYSE: GD) today reported second-quarter 2019
revenue of $9.6 billion, up 4 percent
year-over-year, with net earnings of $806
million. Diluted earnings per share were $2.77, an increase of 5.7 percent
year-over-year.
Operating margins increased sequentially by 50 basis points over
the previous quarter to 11.4 percent. In June, the all-new
Gulfstream G600 earned both its type and production certificates
from the U.S. Federal Aviation Administration.
"Our second-quarter results reflect our relentless focus on
driving down costs and improving performance," said Phebe Novakovic, chairman and chief executive
officer. "That focus on performance remains unwavering as we ramp
up production of new aircraft, begin construction of both a new
block and new class of submarines, and solidify our market-leading
position in Information Technology."
Backlog
General Dynamics' total backlog at the end of
second-quarter 2019 was $67.7
billion. Estimated potential contract value, representing
management's estimate of value in unfunded indefinite delivery,
indefinite quantity (IDIQ) contracts and unexercised options, was
$34.2 billion. Total estimated
contract value, the sum of all backlog components, was $101.9 billion, up 3 percent year-over-year.
Order activity remained strong across the aerospace and defense
portfolios. Aerospace booked $2.2
billion in orders in the quarter, a 1-to-1 book-to-bill on
12.7 percent year-over-year revenue growth. Significant awards in
defense portfolios in the quarter included $495 million from the U.S. Navy for industrial
base development and expansion in support of the Columbia-class
ballistic missile submarine program, $360
million in contracts to provide intelligence services to
classified customers, $270 million
from the Navy to support the joint U.S. and U.K. development of the
submarine Common Missile Compartment and $260 million from the U.S. Army for production of
munitions. Information Technology posted a strong book-to-bill of
1.2-to-1, driven by a $1 billion U.S.
Department of State contract to provide global engineering and
supply chain services.
About General Dynamics
Headquartered in Falls Church, Virginia, General Dynamics is a
global aerospace and defense company that offers a broad portfolio
of products and services in business aviation; combat vehicles,
weapons systems and munitions; IT services; C4ISR solutions; and
shipbuilding and ship repair. General Dynamics employs more than
100,000 people worldwide and generated $36.2
billion in revenue in 2018. More information is available at
www.generaldynamics.com.
Certain statements made in this press release, including any
statements as to future results of operations and financial
projections, may constitute "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995, as
amended. Forward-looking statements are based on management's
expectations, estimates, projections and assumptions. These
statements are not guarantees of future performance and involve
risks and uncertainties that are difficult to predict. Therefore,
actual future results and trends may differ materially from what is
forecast in forward-looking statements due to a variety of factors.
Additional information regarding these factors is contained in the
company's filings with the Securities and Exchange Commission,
including, without limitation, its Annual Report on Form 10-K and
its Quarterly Reports on Form 10-Q. All forward-looking statements
speak only as of the date they were made. The company does not
undertake any obligation to update or publicly release any
revisions to forward-looking statements to reflect events,
circumstances or changes in expectations after the date of this
press release.
WEBCAST INFORMATION: General Dynamics will webcast its
second-quarter 2019 financial results conference call at 9 a.m. EDT
on Wednesday, July 24, 2019. The
webcast will be a listen-only audio event available at
www.generaldynamics.com. An on-demand replay of the webcast will be
available by 12 p.m. on July 24 and will continue for 12 months. To hear
a recording of the conference call by telephone, please call
877-344-7529 (international: 412-317-0088); passcode 10132448. The
phone replay will be available through August 1, 2019.
Charts furnished to investors and securities analysts in
connection with General Dynamics' announcement of its financial
results for second-quarter 2019 are available at
www.generaldynamics.com.
EXHIBIT
A
|
CONSOLIDATED
STATEMENT OF EARNINGS - (UNAUDITED)
|
DOLLARS IN
MILLIONS, EXCEPT PER SHARE AMOUNTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Variance
|
|
June 30,
2019
|
|
July 1,
2018*
|
|
$
|
|
%
|
Revenue
|
$
|
9,555
|
|
|
$
|
9,186
|
|
|
$
|
369
|
|
|
4.0
|
%
|
Operating costs and
expenses
|
(8,465)
|
|
|
(8,098)
|
|
|
(367)
|
|
|
|
Operating
earnings
|
1,090
|
|
|
1,088
|
|
|
2
|
|
|
0.2
|
%
|
Interest,
net
|
(119)
|
|
|
(103)
|
|
|
(16)
|
|
|
|
Other, net
|
12
|
|
|
(15)
|
|
|
27
|
|
|
|
Earnings before
income tax
|
983
|
|
|
970
|
|
|
13
|
|
|
1.3
|
%
|
Provision for income
tax, net
|
(177)
|
|
|
(184)
|
|
|
7
|
|
|
|
Net
earnings
|
$
|
806
|
|
|
$
|
786
|
|
|
$
|
20
|
|
|
2.5
|
%
|
Earnings per
share—basic
|
$
|
2.80
|
|
|
$
|
2.65
|
|
|
$
|
0.15
|
|
|
5.7
|
%
|
Basic weighted
average shares outstanding
|
288.1
|
|
|
296.2
|
|
|
|
|
|
|
|
Earnings per
share—diluted
|
$
|
2.77
|
|
|
$
|
2.62
|
|
|
$
|
0.15
|
|
|
5.7
|
%
|
Diluted weighted
average shares outstanding
|
290.8
|
|
|
300.1
|
|
|
|
|
|
|
|
*
|
2018 results include
the unfavorable impact of one-time charges of approximately $70
associated with costs to complete the acquisition of CSRA Inc. In
the table above, approximately $45 of compensation-related costs
was reported in operating costs and expenses, and approximately $25
of transaction costs was reported in other, net.
|
EXHIBIT
B
|
CONSOLIDATED
STATEMENT OF EARNINGS - (UNAUDITED)
|
DOLLARS IN
MILLIONS, EXCEPT PER SHARE AMOUNTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months
Ended
|
|
Variance
|
|
June 30,
2019
|
|
July 1,
2018*
|
|
$
|
|
%
|
Revenue
|
$
|
18,816
|
|
|
$
|
16,721
|
|
|
$
|
2,095
|
|
|
12.5
|
%
|
Operating costs and
expenses
|
(16,712)
|
|
|
(14,625)
|
|
|
(2,087)
|
|
|
|
Operating
earnings
|
2,104
|
|
|
2,096
|
|
|
8
|
|
|
0.4
|
%
|
Interest,
net
|
(236)
|
|
|
(130)
|
|
|
(106)
|
|
|
|
Other, net
|
30
|
|
|
(36)
|
|
|
66
|
|
|
|
Earnings before
income tax
|
1,898
|
|
|
1,930
|
|
|
(32)
|
|
|
(1.7)
|
%
|
Provision for income
tax, net
|
(347)
|
|
|
(345)
|
|
|
(2)
|
|
|
|
Net
earnings
|
$
|
1,551
|
|
|
$
|
1,585
|
|
|
$
|
(34)
|
|
|
(2.1)
|
%
|
Earnings per
share—basic
|
$
|
5.39
|
|
|
$
|
5.35
|
|
|
$
|
0.04
|
|
|
0.7
|
%
|
Basic weighted
average shares outstanding
|
288.0
|
|
|
296.3
|
|
|
|
|
|
|
Earnings per
share—diluted
|
$
|
5.33
|
|
|
$
|
5.27
|
|
|
$
|
0.06
|
|
|
1.1
|
%
|
Diluted weighted
average shares outstanding
|
290.8
|
|
|
300.6
|
|
|
|
|
|
|
|
*
|
2018 results include
the unfavorable impact of one-time charges of approximately $75
associated with costs to complete the acquisition of CSRA Inc. In
the table above, approximately $45 of compensation-related costs
was reported in operating costs and expenses, and approximately $30
of transaction costs was reported in other, net.
|
EXHIBIT
C
|
REVENUE AND
OPERATING EARNINGS BY SEGMENT - (UNAUDITED)
|
DOLLARS IN
MILLIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Variance
|
|
June 30,
2019
|
|
July 1,
2018*
|
|
$
|
|
%
|
Revenue:
|
|
|
|
|
|
|
|
Aerospace
|
$
|
2,136
|
|
|
$
|
1,895
|
|
|
$
|
241
|
|
|
12.7
|
%
|
Combat
Systems
|
1,659
|
|
|
1,534
|
|
|
125
|
|
|
8.1
|
%
|
Information
Technology
|
2,158
|
|
|
2,442
|
|
|
(284)
|
|
|
(11.6)
|
%
|
Mission
Systems
|
1,277
|
|
|
1,147
|
|
|
130
|
|
|
11.3
|
%
|
Marine
Systems
|
2,325
|
|
|
2,168
|
|
|
157
|
|
|
7.2
|
%
|
Total
|
$
|
9,555
|
|
|
$
|
9,186
|
|
|
$
|
369
|
|
|
4.0
|
%
|
Operating
earnings:
|
|
|
|
|
|
|
|
Aerospace
|
$
|
331
|
|
|
$
|
386
|
|
|
$
|
(55)
|
|
|
(14.2)
|
%
|
Combat
Systems
|
242
|
|
|
236
|
|
|
6
|
|
|
2.5
|
%
|
Information
Technology
|
154
|
|
|
156
|
|
|
(2)
|
|
|
(1.3)
|
%
|
Mission
Systems
|
162
|
|
|
153
|
|
|
9
|
|
|
5.9
|
%
|
Marine
Systems
|
197
|
|
|
195
|
|
|
2
|
|
|
1.0
|
%
|
Corporate
|
4
|
|
|
(38)
|
|
|
42
|
|
|
110.5
|
%
|
Total
|
$
|
1,090
|
|
|
$
|
1,088
|
|
|
$
|
2
|
|
|
0.2
|
%
|
Operating
margin:
|
|
|
|
|
|
|
|
Aerospace
|
15.5
|
%
|
|
20.4
|
%
|
|
|
|
|
Combat
Systems
|
14.6
|
%
|
|
15.4
|
%
|
|
|
|
|
Information
Technology
|
7.1
|
%
|
|
6.4
|
%
|
|
|
|
|
Mission
Systems
|
12.7
|
%
|
|
13.3
|
%
|
|
|
|
|
Marine
Systems
|
8.5
|
%
|
|
9.0
|
%
|
|
|
|
|
Total
|
11.4
|
%
|
|
11.8
|
%
|
|
|
|
|
|
|
*
|
2018 results include
the unfavorable impact of approximately $45 of compensation-related
one-time charges associated with costs to complete the acquisition
of CSRA Inc. This amount was reported as a reduction of Corporate
operating earnings in the table above.
|
EXHIBIT
D
|
REVENUE AND
OPERATING EARNINGS BY SEGMENT - (UNAUDITED)
|
DOLLARS IN
MILLIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months
Ended
|
|
Variance
|
|
June 30,
2019
|
|
July 1,
2018*
|
|
$
|
|
%
|
Revenue:
|
|
|
|
|
|
|
|
Aerospace
|
$
|
4,376
|
|
|
$
|
3,720
|
|
|
$
|
656
|
|
|
17.6
|
%
|
Combat
Systems
|
3,295
|
|
|
2,974
|
|
|
321
|
|
|
10.8
|
%
|
Information
Technology
|
4,327
|
|
|
3,580
|
|
|
747
|
|
|
20.9
|
%
|
Mission
Systems
|
2,435
|
|
|
2,245
|
|
|
190
|
|
|
8.5
|
%
|
Marine
Systems
|
4,383
|
|
|
4,202
|
|
|
181
|
|
|
4.3
|
%
|
Total
|
$
|
18,816
|
|
|
$
|
16,721
|
|
|
$
|
2,095
|
|
|
12.5
|
%
|
Operating
earnings:
|
|
|
|
|
|
|
|
Aerospace
|
$
|
659
|
|
|
$
|
732
|
|
|
$
|
(73)
|
|
|
(10.0)
|
%
|
Combat
Systems
|
448
|
|
|
460
|
|
|
(12)
|
|
|
(2.6)
|
%
|
Information
Technology
|
310
|
|
|
257
|
|
|
53
|
|
|
20.6
|
%
|
Mission
Systems
|
310
|
|
|
299
|
|
|
11
|
|
|
3.7
|
%
|
Marine
Systems
|
377
|
|
|
379
|
|
|
(2)
|
|
|
(0.5)
|
%
|
Corporate
|
—
|
|
|
(31)
|
|
|
31
|
|
|
100.0
|
%
|
Total
|
$
|
2,104
|
|
|
$
|
2,096
|
|
|
$
|
8
|
|
|
0.4
|
%
|
Operating
margin:
|
|
|
|
|
|
|
|
Aerospace
|
15.1
|
%
|
|
19.7
|
%
|
|
|
|
|
Combat
Systems
|
13.6
|
%
|
|
15.5
|
%
|
|
|
|
|
Information
Technology
|
7.2
|
%
|
|
7.2
|
%
|
|
|
|
|
Mission
Systems
|
12.7
|
%
|
|
13.3
|
%
|
|
|
|
|
Marine
Systems
|
8.6
|
%
|
|
9.0
|
%
|
|
|
|
|
Total
|
11.2
|
%
|
|
12.5
|
%
|
|
|
|
|
|
|
*
|
2018 results include
the unfavorable impact of approximately $45 of compensation-related
one-time charges associated with costs to complete the acquisition
of CSRA Inc. This amount was reported as a reduction of Corporate
operating earnings in the table above.
|
EXHIBIT
E
|
CONSOLIDATED
BALANCE SHEET
|
DOLLARS IN
MILLIONS
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
June 30,
2019
|
|
December 31,
2018
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and
equivalents
|
$
|
702
|
|
|
$
|
963
|
|
Accounts
receivable
|
3,673
|
|
|
3,759
|
|
Unbilled
receivables
|
7,554
|
|
|
6,576
|
|
Inventories
|
6,480
|
|
|
5,977
|
|
Other current
assets
|
1,148
|
|
|
914
|
|
Total current
assets
|
19,557
|
|
|
18,189
|
|
Noncurrent
assets:
|
|
|
|
Property, plant and
equipment, net
|
4,091
|
|
|
3,978
|
|
Intangible assets,
net
|
2,457
|
|
|
2,585
|
|
Goodwill
|
19,662
|
|
|
19,594
|
|
Other
assets
|
2,307
|
|
|
1,062
|
|
Total noncurrent
assets
|
28,517
|
|
|
27,219
|
|
Total
assets
|
$
|
48,074
|
|
|
$
|
45,408
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Short-term debt and
current portion of long-term debt
|
$
|
4,960
|
|
|
$
|
973
|
|
Accounts
payable
|
2,860
|
|
|
3,179
|
|
Customer advances and
deposits
|
6,714
|
|
|
7,270
|
|
Other current
liabilities
|
3,480
|
|
|
3,317
|
|
Total current
liabilities
|
18,014
|
|
|
14,739
|
|
Noncurrent
liabilities:
|
|
|
|
Long-term
debt
|
8,975
|
|
|
11,444
|
|
Other
liabilities
|
8,208
|
|
|
7,493
|
|
Total noncurrent
liabilities
|
17,183
|
|
|
18,937
|
|
Shareholders'
equity:
|
|
|
|
Common
stock
|
482
|
|
|
482
|
|
Surplus
|
2,959
|
|
|
2,946
|
|
Retained
earnings
|
30,291
|
|
|
29,326
|
|
Treasury
stock
|
(17,379)
|
|
|
(17,244)
|
|
Accumulated other
comprehensive loss
|
(3,476)
|
|
|
(3,778)
|
|
Total shareholders'
equity
|
12,877
|
|
|
11,732
|
|
Total liabilities
and shareholders' equity
|
$
|
48,074
|
|
|
$
|
45,408
|
|
EXHIBIT
F
|
CONSOLIDATED
STATEMENT OF CASH FLOWS - (UNAUDITED)
|
DOLLARS IN
MILLIONS
|
|
|
|
|
|
|
|
|
|
Six Months
Ended
|
|
June 30,
2019
|
|
July 1,
2018
|
Cash flows from
operating activities—continuing operations:
|
|
|
|
Net
earnings
|
$
|
1,551
|
|
|
$
|
1,585
|
|
Adjustments to
reconcile net earnings to net cash from operating
activities:
|
|
|
|
Depreciation of
property, plant and equipment
|
232
|
|
|
206
|
|
Amortization of
intangible and finance lease right-of-use assets
|
183
|
|
|
121
|
|
Equity-based
compensation expense
|
72
|
|
|
71
|
|
Deferred income tax
benefit
|
(17)
|
|
|
(6)
|
|
(Increase) decrease
in assets, net of effects of business acquisitions:
|
|
|
|
Accounts
receivable
|
64
|
|
|
344
|
|
Unbilled
receivables
|
(1,074)
|
|
|
(1,030)
|
|
Inventories
|
(556)
|
|
|
(542)
|
|
Increase (decrease)
in liabilities, net of effects of business acquisitions:
|
|
|
|
Accounts
payable
|
(301)
|
|
|
(324)
|
|
Customer advances and
deposits
|
(607)
|
|
|
(159)
|
|
Other, net
|
(51)
|
|
|
25
|
|
Net cash (used)
provided by operating activities
|
(504)
|
|
|
291
|
|
Cash flows from
investing activities:
|
|
|
|
Capital
expenditures
|
(362)
|
|
|
(279)
|
|
Business
acquisitions, net of cash acquired
|
(17)
|
|
|
(10,039)
|
|
Other, net
|
16
|
|
|
74
|
|
Net cash used by
investing activities
|
(363)
|
|
|
(10,244)
|
|
Cash flows from
financing activities:
|
|
|
|
Proceeds from
commercial paper, net
|
1,394
|
|
|
2,786
|
|
Dividends
paid
|
(563)
|
|
|
(526)
|
|
Purchases of common
stock
|
(231)
|
|
|
(436)
|
|
Proceeds from
fixed-rate notes
|
—
|
|
|
6,461
|
|
Proceeds from
floating-rate notes
|
—
|
|
|
1,000
|
|
Repayment of CSRA
accounts receivable purchase agreement
|
—
|
|
|
(450)
|
|
Other, net
|
30
|
|
|
3
|
|
Net cash provided by
financing activities
|
630
|
|
|
8,838
|
|
Net cash used by
discontinued operations
|
(24)
|
|
|
(6)
|
|
Net decrease in
cash and equivalents
|
(261)
|
|
|
(1,121)
|
|
Cash and
equivalents at beginning of period
|
963
|
|
|
2,983
|
|
Cash and
equivalents at end of period
|
$
|
702
|
|
|
$
|
1,862
|
|
EXHIBIT
G
|
PRELIMINARY
FINANCIAL INFORMATION - (UNAUDITED)
|
DOLLARS IN
MILLIONS, EXCEPT PER SHARE AMOUNTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2019
|
|
|
|
2018
|
|
|
|
|
Second
Quarter
|
|
|
|
Second
Quarter
|
|
|
Other Financial
Information:
|
|
|
|
|
|
|
|
|
Debt-to-equity
(a)
|
|
108.2
|
%
|
|
|
|
119.0
|
%
|
|
|
Debt-to-capital
(b)
|
|
52.0
|
%
|
|
|
|
54.3
|
%
|
|
|
Book value per share
(c)
|
|
$
|
44.58
|
|
|
|
|
$
|
40.48
|
|
|
|
Income tax payments,
net
|
|
$
|
360
|
|
|
|
|
$
|
159
|
|
|
|
Company-sponsored
research and development (d)
|
|
$
|
120
|
|
|
|
|
$
|
90
|
|
|
|
Shares
outstanding
|
|
288,844,120
|
|
|
|
|
296,281,432
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Financial
Measures:
|
|
|
|
|
|
|
|
|
|
|
2019
|
|
2018
|
|
|
Second
Quarter
|
|
Six
Months
|
|
Second
Quarter
|
|
Six Months
|
Earnings before
interest, taxes, depreciation
and
amortization:
|
|
|
|
|
|
|
|
|
Net
earnings
|
|
$
|
806
|
|
|
$
|
1,551
|
|
|
$
|
786
|
|
|
$
|
1,585
|
|
Interest,
net
|
|
119
|
|
|
236
|
|
|
103
|
|
|
130
|
|
Provision for income
tax, net
|
|
177
|
|
|
347
|
|
|
184
|
|
|
345
|
|
Depreciation of
property, plant and equipment
|
|
118
|
|
|
232
|
|
|
117
|
|
|
206
|
|
Amortization of
intangible and finance lease right-of-use assets
|
|
92
|
|
|
183
|
|
|
101
|
|
|
121
|
|
Earnings before
interest, taxes, depreciation
and amortization
(e)
|
|
$
|
1,312
|
|
|
$
|
2,549
|
|
|
$
|
1,291
|
|
|
$
|
2,387
|
|
|
|
|
|
|
|
|
|
|
Free cash flow
from operations:
|
|
|
|
|
|
|
|
|
Net cash provided
(used) by operating activities
|
|
$
|
291
|
|
|
$
|
(504)
|
|
|
$
|
787
|
|
|
$
|
291
|
|
Capital
expenditures
|
|
(181)
|
|
|
(362)
|
|
|
(175)
|
|
|
(279)
|
|
Free cash flow from
operations (f)
|
|
$
|
110
|
|
|
$
|
(866)
|
|
|
$
|
612
|
|
|
$
|
12
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Debt-to-equity ratio
is calculated as total debt divided by total equity as of the end
of the period.
|
|
|
(b)
|
Debt-to-capital ratio
is calculated as total debt divided by the sum of total debt plus
total equity as of the end of the period.
|
|
|
(c)
|
Book value per share
is calculated as total equity divided by total outstanding shares
as of the end of the period.
|
|
|
(d)
|
Includes independent
research and development and Aerospace product-development
costs.
|
|
|
(e)
|
We believe earnings
before interest, taxes, depreciation and amortization (EBITDA) is a
useful measure for investors because it provides another measure of
our profitability and our ability to service our debt. We calculate
EBITDA by adding back interest, taxes, depreciation and
amortization to net earnings. The most directly comparable GAAP
measure to EBITDA is net earnings.
|
|
|
(f)
|
We believe free cash
flow from operations is a useful measure for investors because it
portrays our ability to generate cash from our businesses for
purposes such as repaying maturing debt, funding business
acquisitions, repurchasing our common stock and paying dividends.
We use free cash flow from operations to assess the quality of our
earnings and as a key performance measure in evaluating management.
The most directly comparable GAAP measure to free cash flow from
operations is net cash provided by operating activities.
|
EXHIBIT
H
|
BACKLOG -
(UNAUDITED)
|
DOLLARS IN
MILLIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Funded
|
|
Unfunded
|
|
Total
Backlog
|
|
Estimated
Potential
Contract Value*
|
|
Total Estimated
Contract
Value
|
Second Quarter
2019:
|
|
|
|
|
|
|
|
|
|
|
Aerospace
|
|
$
|
11,932
|
|
|
$
|
213
|
|
|
$
|
12,145
|
|
|
$
|
2,079
|
|
|
$
|
14,224
|
|
Combat
Systems
|
|
14,794
|
|
|
438
|
|
|
15,232
|
|
|
4,113
|
|
|
19,345
|
|
Information
Technology
|
|
4,446
|
|
|
4,405
|
|
|
8,851
|
|
|
17,983
|
|
|
26,834
|
|
Mission
Systems
|
|
4,925
|
|
|
258
|
|
|
5,183
|
|
|
6,847
|
|
|
12,030
|
|
Marine
Systems
|
|
18,344
|
|
|
7,899
|
|
|
26,243
|
|
|
3,223
|
|
|
29,466
|
|
Total
|
|
$
|
54,441
|
|
|
$
|
13,213
|
|
|
$
|
67,654
|
|
|
$
|
34,245
|
|
|
$
|
101,899
|
|
First Quarter
2019:
|
|
|
|
|
|
|
|
|
|
|
Aerospace
|
|
$
|
11,924
|
|
|
$
|
244
|
|
|
$
|
12,168
|
|
|
$
|
2,080
|
|
|
$
|
14,248
|
|
Combat
Systems
|
|
15,475
|
|
|
515
|
|
|
15,990
|
|
|
4,185
|
|
|
20,175
|
|
Information
Technology
|
|
4,770
|
|
|
3,584
|
|
|
8,354
|
|
|
16,666
|
|
|
25,020
|
|
Mission
Systems
|
|
5,081
|
|
|
234
|
|
|
5,315
|
|
|
7,186
|
|
|
12,501
|
|
Marine
Systems
|
|
19,935
|
|
|
7,446
|
|
|
27,381
|
|
|
3,831
|
|
|
31,212
|
|
Total
|
|
$
|
57,185
|
|
|
$
|
12,023
|
|
|
$
|
69,208
|
|
|
$
|
33,948
|
|
|
$
|
103,156
|
|
Second Quarter
2018:
|
|
|
|
|
|
|
|
|
|
|
Aerospace
|
|
$
|
12,187
|
|
|
$
|
157
|
|
|
$
|
12,344
|
|
|
$
|
2,282
|
|
|
$
|
14,626
|
|
Combat
Systems
|
|
16,646
|
|
|
376
|
|
|
17,022
|
|
|
2,840
|
|
|
19,862
|
|
Information
Technology
|
|
4,633
|
|
|
4,576
|
|
|
9,209
|
|
|
18,931
|
|
|
28,140
|
|
Mission
Systems
|
|
4,636
|
|
|
645
|
|
|
5,281
|
|
|
4,287
|
|
|
9,568
|
|
Marine
Systems
|
|
17,310
|
|
|
5,124
|
|
|
22,434
|
|
|
4,333
|
|
|
26,767
|
|
Total
|
|
$
|
55,412
|
|
|
$
|
10,878
|
|
|
$
|
66,290
|
|
|
$
|
32,673
|
|
|
$
|
98,963
|
|
|
|
*
|
The estimated
potential contract value includes work awarded on unfunded
indefinite delivery, indefinite quantity (IDIQ) contracts and
unexercised options associated with existing firm contracts,
including options and other agreements with existing customers to
purchase new aircraft and aircraft services. We recognize options
in backlog when the customer exercises the option and establishes a
firm order. For IDIQ contracts, we evaluate the amount of funding
we expect to receive and include this amount in our estimated
potential contract value. The actual amount of funding received in
the future may be higher or lower than our estimate of potential
contract value.
|
EXHIBIT H-1
BACKLOG -
(UNAUDITED)
DOLLARS IN MILLIONS
Photo
- https://mma.prnewswire.com/media/951121/EXHIBIT_H_1.jpg
EXHIBIT H-2
BACKLOG BY SEGMENT -
(UNAUDITED)
DOLLARS IN MILLIONS
Photo
- https://mma.prnewswire.com/media/951122/EXHIBIT_H_2_Aerospace.jpg
Photo -
https://mma.prnewswire.com/media/951123/EXHIBIT_H_2_Combat_Systems.jpg
Photo -
https://mma.prnewswire.com/media/951126/EXHIBIT_H_2_Information_Technology.jpg
Photo -
https://mma.prnewswire.com/media/951125/EXHIBIT_H_2_Mission_Systems.jpg
Photo -
https://mma.prnewswire.com/media/951127/EXHIBIT_H_2_Marine_Systems.jpg
Photo -
https://mma.prnewswire.com/media/951128/EXHIBIT_H_2_Key.jpg
EXHIBIT
I
|
SECOND QUARTER
2019 SIGNIFICANT ORDERS - (UNAUDITED)
|
DOLLARS IN
MILLIONS
|
|
We received the
following significant contract awards during the second quarter of
2019:
|
|
Combat
Systems:
|
|
|
•
|
$260 from the U.S.
Army for munitions production. The program has a maximum potential
contract value of $1.6 billion.
|
|
|
•
|
$100 for the
production of various high-performance warheads.
|
|
|
•
|
$60 for the
production of control actuator systems for the Excalibur artillery
system.
|
|
|
•
|
$35 from the Army for
various rounds of medium-caliber ammunition.
|
|
|
•
|
$25 from the Army to
provide systems technical support for Abrams main battle
tanks.
|
|
Information
Technology:
|
|
|
•
|
$1 billion from the
U.S. Department of State to provide global security engineering and
supply chain management services. The program has a maximum
potential contract value of over $2 billion.
|
|
|
•
|
$360 for several key
contracts to provide intelligence services to classified
customers.
|
|
|
•
|
A contract to provide
network monitoring, network engineering and system administration
services for the U.S. Air Force. The program has a maximum
potential value of approximately $215.
|
|
|
•
|
$85 from the Centers
for Medicare and Medicaid Services (CMS) for cloud hosting support
services.
|
|
|
•
|
$70 from the CMS to
provide hosting, operations and maintenance services for the
agency's Healthcare Integrated General Ledger Accounting System
(HIGLAS) application.
|
|
|
•
|
$50 from the U.S.
Navy to provide training and training-related program
support.
|
|
|
•
|
$45 from the CMS for
benefits recovery services. The program has a maximum potential
contract value of $275.
|
|
Mission
Systems:
|
|
|
•
|
$90 to provide
maintenance and support services for the United Kingdom's Bowman
tactical communications system.
|
|
|
•
|
$80 from the Army for
computing and communications equipment under the Common Hardware
Systems-5 (CHS-5) program.
|
|
|
•
|
$80 to provide
engineering and support services for the Army's mobile
communications network.
|
|
|
•
|
$45 to support the
engineering and manufacturing of the Navy's Air and Missile Defense
Radar (AMDR) program.
|
|
|
•
|
$35 to build space
encryption units for the Air Force.
|
|
|
•
|
$25 from the Air
Force for continued modernization of the global positioning
system.
|
|
Marine
Systems:
|
|
|
•
|
$495 from the Navy
for submarine industrial base development and expansion in support
of the Columbia-class ballistic missile submarine program and the
nuclear shipbuilding enterprise.
|
|
|
•
|
$270 from the Navy to
support the Common Missile Compartment work under joint development
for the Navy and the U.K. Royal Navy.
|
|
|
•
|
$85 from the Navy for
planning yard, engineering and technical support services for
in-service nuclear submarines.
|
|
|
•
|
$55 from the Navy to
provide ongoing lead yard services for the Arleigh Burke-class
(DDG-51) guided-missile destroyer program.
|
EXHIBIT
J
|
AEROSPACE
SUPPLEMENTAL DATA - (UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second
Quarter
|
|
Six
Months
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Gulfstream
Aircraft Deliveries (units):
|
|
|
|
|
|
|
|
|
Large-cabin
aircraft
|
|
23
|
|
|
18
|
|
|
50
|
|
|
37
|
|
Mid-cabin
aircraft
|
|
8
|
|
|
8
|
|
|
15
|
|
|
15
|
|
Total
|
|
31
|
|
|
26
|
|
|
65
|
|
|
52
|
|
Pre-owned Aircraft
Deliveries (units):
|
|
1
|
|
|
1
|
|
|
5
|
|
|
2
|
|
|
|
|
|
|
|
|
|
|
Aerospace
Book-to-Bill:
|
|
|
|
|
|
|
|
|
Orders*
|
|
$
|
2,198
|
|
|
$
|
2,291
|
|
|
$
|
5,329
|
|
|
$
|
3,736
|
|
Revenue (excluding
pre-owned aircraft sales)
|
|
2,134
|
|
|
1,894
|
|
|
4,332
|
|
|
3,710
|
|
Book-to-Bill
Ratio
|
|
1.03x
|
|
|
1.21x
|
|
|
1.23x
|
|
|
1.01x
|
|
|
|
*
|
Does not include
customer defaults, liquidated damages, cancellations, foreign
exchange fluctuations and other backlog adjustments.
|
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SOURCE General Dynamics