RESTON, Va., Oct. 23, 2019 /PRNewswire/ -- General Dynamics
(NYSE: GD) today reported third-quarter 2019 revenue of
$9.8 billion, operating earnings of
$1.2 billion, net earnings from
continuing operations of $913 million
and diluted earnings per share from continuing operations of
$3.14, up 25
cents from the year-ago quarter.
"Margins advanced nicely in the quarter due to Gulfstream's
continuing ability to efficiently transition its production to new
models, coupled with solid operating performance at the defense
businesses," said Phebe N.
Novakovic, chairman and chief executive officer. "Our
continued focus on operating excellence and driving cost
efficiencies, coupled with new business opportunities, should
enable us to build on these results."
Operating performance
Operating margin was 12.5
percent in the quarter, up 110 basis points sequentially. Customer
deliveries of the Gulfstream G600 began in August, less than two
months after receiving FAA type and production certificates.
Cash
Net cash provided by operating activities in the
quarter totaled $1.1 billion. Free
cash flow from operations, defined as net cash provided by
operating activities less capital expenditures, was $847 million.
Capital deployment
The company paid $295 million in dividends and repaid
approximately $450 million of its
outstanding commercial paper in the third quarter. Capital
expenditures totaled $244 million, up
$76 million from the year-ago
quarter, driven by continued strategic investments in Marine
Systems.
Backlog
Total backlog at the end of third-quarter 2019
was $67.4 billion. Estimated
potential contract value, representing management's estimate of
value in unfunded indefinite delivery, indefinite quantity (IDIQ)
contracts and unexercised options, was $35.6
billion. Total estimated contract value, the sum of all
backlog components, was $103
billion.
Orders
Order activity remained strong across the
aerospace and defense portfolios, with a book-to-bill of 1-to-1 on
7.3 percent year-over-year revenue growth. Significant awards in
the defense portfolios in the quarter included $1.3 billion from the Canadian government for
production of armored combat support vehicles; $1.1 billion from the U.S. Navy for design and
construction of two Expeditionary Sea Base auxiliary support ships
and a $550 million option for an
additional ship; $390 million from
the Navy for Advanced Nuclear Plant Studies in support of the
Columbia-class submarine program; $155
million from the U.S. Army for various munitions and
ordnance; $325 million to provide
program management and engineering services to the Cybersecurity
and Infrastructure Security Agency's emergency communications
infrastructure; and $265 million from
the Army for computing and communications equipment under the
Common Hardware Systems-5 (CHS-5) program.
About General Dynamics
Headquartered in Reston, 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.gd.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
third-quarter 2019 financial results conference call at 9 a.m. EDT
on Wednesday, October 23, 2019. The
webcast will be a listen-only audio event available at
www.gd.com. An on-demand replay of the webcast will be
available one hour after the end of the call and end on
October 30. To hear a recording of
the conference call by telephone, please call 1-877-344-7529
(international: 1-412-317-0088) passcode 10135319. Charts furnished
to investors and securities analysts in connection with General
Dynamics' announcement of its financial results for third-quarter
2019 are available at www.gd.com.
EXHIBIT
A
|
CONSOLIDATED
STATEMENT OF EARNINGS - (UNAUDITED)
|
DOLLARS IN
MILLIONS, EXCEPT PER SHARE AMOUNTS
|
|
|
|
Three Months
Ended
|
|
|
Variance
|
|
|
September 29,
2019
|
|
September 30,
2018
|
|
$
|
|
%
|
Revenue
|
|
$
|
9,761
|
|
|
$
|
9,094
|
|
|
$
|
667
|
|
|
7.3
|
%
|
Operating costs and
expenses
|
|
(8,545)
|
|
|
(7,959)
|
|
|
(586)
|
|
|
|
Operating
earnings
|
|
1,216
|
|
|
1,135
|
|
|
81
|
|
|
7.1
|
%
|
Interest,
net
|
|
(114)
|
|
|
(114)
|
|
|
—
|
|
|
|
Other,
net
|
|
(12)
|
|
|
2
|
|
|
(14)
|
|
|
|
Earnings from
continuing operations before income tax
|
|
1,090
|
|
|
1,023
|
|
|
67
|
|
|
6.5
|
%
|
Provision for income
tax, net
|
|
(177)
|
|
|
(159)
|
|
|
(18)
|
|
|
|
Earnings from
continuing operations
|
|
913
|
|
|
864
|
|
|
49
|
|
|
5.7
|
%
|
Discontinued
operations, net of tax
|
|
—
|
|
|
(13)
|
|
|
13
|
|
|
|
Net
earnings
|
|
$
|
913
|
|
|
$
|
851
|
|
|
$
|
62
|
|
|
7.3
|
%
|
Earnings per
share—basic
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
$
|
3.17
|
|
|
$
|
2.92
|
|
|
$
|
0.25
|
|
|
8.6
|
%
|
Discontinued
operations
|
|
—
|
|
|
(0.04)
|
|
|
0.04
|
|
|
|
|
Net
earnings
|
|
$
|
3.17
|
|
|
$
|
2.88
|
|
|
$
|
0.29
|
|
|
10.1
|
%
|
Basic weighted
average shares outstanding
|
|
288.4
|
|
|
295.3
|
|
|
|
|
|
Earnings per
share—diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
$
|
3.14
|
|
|
$
|
2.89
|
|
|
$
|
0.25
|
|
|
8.7
|
%
|
Discontinued
operations
|
|
—
|
|
|
(0.04)
|
|
|
0.04
|
|
|
|
Net
earnings
|
|
$
|
3.14
|
|
|
$
|
2.85
|
|
|
$
|
0.29
|
|
|
10.2
|
%
|
Diluted weighted
average shares outstanding
|
|
290.9
|
|
|
299.1
|
|
|
|
|
|
EXHIBIT
B
CONSOLIDATED
STATEMENT OF EARNINGS - (UNAUDITED)
DOLLARS IN
MILLIONS, EXCEPT PER SHARE AMOUNTS
|
|
|
Nine Months
Ended
|
|
Variance
|
|
September 29,
2019
|
|
September 30,
2018*
|
|
$
|
|
%
|
Revenue
|
$
|
28,577
|
|
|
$
|
25,815
|
|
|
$
|
2,762
|
|
|
10.7
|
%
|
Operating costs and
expenses
|
(25,257)
|
|
|
(22,584)
|
|
|
(2,673)
|
|
|
|
Operating
earnings
|
3,320
|
|
|
3,231
|
|
|
89
|
|
|
2.8
|
%
|
Interest,
net
|
(350)
|
|
|
(244)
|
|
|
(106)
|
|
|
|
Other, net
|
18
|
|
|
(34)
|
|
|
52
|
|
|
|
Earnings from
continuing operations before income tax
|
2,988
|
|
|
2,953
|
|
|
35
|
|
|
1.2
|
%
|
Provision for income
tax, net
|
(524)
|
|
|
(504)
|
|
|
(20)
|
|
|
|
Earnings from
continuing operations
|
2,464
|
|
|
2,449
|
|
|
15
|
|
|
0.6
|
%
|
Discontinued
operations, net of tax
|
—
|
|
|
(13)
|
|
|
13
|
|
|
|
Net
earnings
|
$
|
2,464
|
|
|
$
|
2,436
|
|
|
$
|
28
|
|
|
1.1
|
%
|
Earnings per
share—basic
|
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
$
|
8.55
|
|
|
$
|
8.27
|
|
|
$
|
0.28
|
|
|
3.4
|
%
|
Discontinued
operations
|
—
|
|
|
(0.04)
|
|
|
0.04
|
|
|
|
Net earnings
|
$
|
8.55
|
|
|
$
|
8.23
|
|
|
$
|
0.32
|
|
|
3.9
|
%
|
Basic weighted
average shares outstanding
|
288.1
|
|
|
296.0
|
|
|
|
|
|
|
Earnings per
share—diluted
|
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
$
|
8.47
|
|
|
$
|
8.16
|
|
|
$
|
0.31
|
|
|
3.8
|
%
|
Discontinued
operations
|
—
|
|
|
(0.04)
|
|
|
0.04
|
|
|
|
Net earnings
|
$
|
8.47
|
|
|
$
|
8.12
|
|
|
$
|
0.35
|
|
|
4.3
|
%
|
Diluted weighted
average shares outstanding
|
290.8
|
|
|
300.1
|
|
|
|
|
|
|
|
*
|
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
|
|
September 29,
2019
|
|
September 30,
2018
|
|
$
|
|
%
|
Revenue:
|
|
|
|
|
|
|
|
Aerospace
|
$
|
2,495
|
|
|
$
|
2,031
|
|
|
$
|
464
|
|
|
22.8
|
%
|
Combat
Systems
|
1,740
|
|
|
1,523
|
|
|
217
|
|
|
14.2
|
%
|
Information
Technology
|
2,071
|
|
|
2,307
|
|
|
(236)
|
|
|
(10.2)
|
%
|
Mission
Systems
|
1,220
|
|
|
1,230
|
|
|
(10)
|
|
|
(0.8)
|
%
|
Marine
Systems
|
2,235
|
|
|
2,003
|
|
|
232
|
|
|
11.6
|
%
|
Total
|
$
|
9,761
|
|
|
$
|
9,094
|
|
|
$
|
667
|
|
|
7.3
|
%
|
Operating
earnings:
|
|
|
|
|
|
|
|
Aerospace
|
$
|
393
|
|
|
$
|
376
|
|
|
$
|
17
|
|
|
4.5
|
%
|
Combat
Systems
|
264
|
|
|
241
|
|
|
23
|
|
|
9.5
|
%
|
Information
Technology
|
146
|
|
|
157
|
|
|
(11)
|
|
|
(7.0)
|
%
|
Mission
Systems
|
185
|
|
|
179
|
|
|
6
|
|
|
3.4
|
%
|
Marine
Systems
|
209
|
|
|
169
|
|
|
40
|
|
|
23.7
|
%
|
Corporate
|
19
|
|
|
13
|
|
|
6
|
|
|
46.2
|
%
|
Total
|
$
|
1,216
|
|
|
$
|
1,135
|
|
|
$
|
81
|
|
|
7.1
|
%
|
Operating
margin:
|
|
|
|
|
|
|
|
Aerospace
|
15.8
|
%
|
|
18.5
|
%
|
|
|
|
|
Combat
Systems
|
15.2
|
%
|
|
15.8
|
%
|
|
|
|
|
Information
Technology
|
7.0
|
%
|
|
6.8
|
%
|
|
|
|
|
Mission
Systems
|
15.2
|
%
|
|
14.6
|
%
|
|
|
|
|
Marine
Systems
|
9.4
|
%
|
|
8.4
|
%
|
|
|
|
|
Total
|
12.5
|
%
|
|
12.5
|
%
|
|
|
|
|
EXHIBIT
D
REVENUE AND
OPERATING EARNINGS BY SEGMENT - (UNAUDITED)
DOLLARS IN
MILLIONS
|
|
|
Nine Months
Ended
|
|
Variance
|
|
September 29,
2019
|
|
September 30,
2018*
|
|
$
|
|
%
|
Revenue:
|
|
|
|
|
|
|
|
Aerospace
|
$
|
6,871
|
|
|
$
|
5,751
|
|
|
$
|
1,120
|
|
|
19.5
|
%
|
Combat
Systems
|
5,035
|
|
|
4,497
|
|
|
538
|
|
|
12.0
|
%
|
Information
Technology
|
6,398
|
|
|
5,887
|
|
|
511
|
|
|
8.7
|
%
|
Mission
Systems
|
3,655
|
|
|
3,475
|
|
|
180
|
|
|
5.2
|
%
|
Marine
Systems
|
6,618
|
|
|
6,205
|
|
|
413
|
|
|
6.7
|
%
|
Total
|
$
|
28,577
|
|
|
$
|
25,815
|
|
|
$
|
2,762
|
|
|
10.7
|
%
|
Operating
earnings:
|
|
|
|
|
|
|
|
Aerospace
|
$
|
1,052
|
|
|
$
|
1,108
|
|
|
$
|
(56)
|
|
|
(5.1)
|
%
|
Combat
Systems
|
712
|
|
|
701
|
|
|
11
|
|
|
1.6
|
%
|
Information
Technology
|
456
|
|
|
414
|
|
|
42
|
|
|
10.1
|
%
|
Mission
Systems
|
495
|
|
|
478
|
|
|
17
|
|
|
3.6
|
%
|
Marine
Systems
|
586
|
|
|
548
|
|
|
38
|
|
|
6.9
|
%
|
Corporate
|
19
|
|
|
(18)
|
|
|
37
|
|
|
205.6
|
%
|
Total
|
$
|
3,320
|
|
|
$
|
3,231
|
|
|
$
|
89
|
|
|
2.8
|
%
|
Operating
margin:
|
|
|
|
|
|
|
|
Aerospace
|
15.3
|
%
|
|
19.3
|
%
|
|
|
|
|
Combat
Systems
|
14.1
|
%
|
|
15.6
|
%
|
|
|
|
|
Information
Technology
|
7.1
|
%
|
|
7.0
|
%
|
|
|
|
|
Mission
Systems
|
13.5
|
%
|
|
13.8
|
%
|
|
|
|
|
Marine
Systems
|
8.9
|
%
|
|
8.8
|
%
|
|
|
|
|
Total
|
11.6
|
%
|
|
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)
|
|
|
|
September 29,
2019
|
|
December 31,
2018
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and
equivalents
|
$
|
974
|
|
|
$
|
963
|
|
Accounts
receivable
|
3,489
|
|
|
3,759
|
|
Unbilled
receivables
|
8,077
|
|
|
6,576
|
|
Inventories
|
6,573
|
|
|
5,977
|
|
Other current
assets
|
1,038
|
|
|
914
|
|
Total current
assets
|
20,151
|
|
|
18,189
|
|
Noncurrent
assets:
|
|
|
|
Property, plant and
equipment, net
|
4,217
|
|
|
3,978
|
|
Intangible assets,
net
|
2,376
|
|
|
2,585
|
|
Goodwill
|
19,617
|
|
|
19,594
|
|
Other
assets
|
2,427
|
|
|
1,062
|
|
Total noncurrent
assets
|
28,637
|
|
|
27,219
|
|
Total
assets
|
$
|
48,788
|
|
|
$
|
45,408
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Short-term debt and
current portion of long-term debt
|
$
|
4,661
|
|
|
$
|
973
|
|
Accounts
payable
|
2,999
|
|
|
3,179
|
|
Customer advances and
deposits
|
6,854
|
|
|
7,270
|
|
Other current
liabilities
|
3,713
|
|
|
3,317
|
|
Total current
liabilities
|
18,227
|
|
|
14,739
|
|
Noncurrent
liabilities:
|
|
|
|
Long-term
debt
|
8,989
|
|
|
11,444
|
|
Other
liabilities
|
8,059
|
|
|
7,493
|
|
Total noncurrent
liabilities
|
17,048
|
|
|
18,937
|
|
Shareholders'
equity:
|
|
|
|
Common
stock
|
482
|
|
|
482
|
|
Surplus
|
2,999
|
|
|
2,946
|
|
Retained
earnings
|
30,909
|
|
|
29,326
|
|
Treasury
stock
|
(17,346)
|
|
|
(17,244)
|
|
Accumulated other
comprehensive loss
|
(3,531)
|
|
|
(3,778)
|
|
Total shareholders'
equity
|
13,513
|
|
|
11,732
|
|
Total liabilities
and shareholders' equity
|
$
|
48,788
|
|
|
$
|
45,408
|
|
EXHIBIT
F
CONSOLIDATED
STATEMENT OF CASH FLOWS - (UNAUDITED)
DOLLARS IN
MILLIONS
|
|
|
Nine Months
Ended
|
|
September 29,
2019
|
|
September 30,
2018
|
Cash flows from
operating activities—continuing operations:
|
|
|
|
Net earnings
|
$
|
2,464
|
|
$
|
2,436
|
Adjustments to
reconcile net earnings to net cash from operating
activities:
|
|
|
|
Depreciation
of property, plant and equipment
|
352
|
|
315
|
Amortization
of intangible and finance lease right-of-use assets
|
273
|
|
227
|
Equity-based
compensation expense
|
103
|
|
110
|
Deferred
income tax benefit
|
(72)
|
|
(66)
|
Discontinued
operations, net of tax
|
—
|
|
13
|
(Increase) decrease in
assets, net of effects of business acquisitions:
|
|
|
|
Accounts
receivable
|
253
|
|
472
|
Unbilled
receivables
|
(1,603)
|
|
(1,625)
|
Inventories
|
(646)
|
|
(854)
|
Increase (decrease) in
liabilities, net of effects of business acquisitions:
|
|
|
|
Accounts
payable
|
(164)
|
|
(324)
|
Customer
advances and deposits
|
(565)
|
|
112
|
Other, net
|
192
|
|
265
|
Net cash provided by
operating activities
|
587
|
|
1,081
|
Cash flows from
investing activities:
|
|
|
|
Capital
expenditures
|
(606)
|
|
(447)
|
Business acquisitions,
net of cash acquired
|
(19)
|
|
(10,039)
|
Other, net
|
21
|
|
169
|
Net cash used by
investing activities
|
(604)
|
|
(10,317)
|
Cash flows from
financing activities:
|
|
|
|
Proceeds from
commercial paper, net
|
947
|
|
1,668
|
Dividends
paid
|
(858)
|
|
(801)
|
Purchases of common
stock
|
(231)
|
|
(533)
|
Proceeds from
fixed-rate notes
|
—
|
|
6,461
|
Proceeds from
floating-rate notes
|
—
|
|
1,000
|
Repayment of CSRA
accounts receivable purchase agreement
|
—
|
|
(450)
|
Other, net
|
207
|
|
(68)
|
Net cash provided by
financing activities
|
65
|
|
7,277
|
Net cash used by
discontinued operations
|
(37)
|
|
(14)
|
Net increase
(decrease) in cash and equivalents
|
11
|
|
(1,973)
|
Cash and
equivalents at beginning of period
|
963
|
|
2,983
|
Cash and
equivalents at end of period
|
$
|
974
|
|
$
|
1,010
|
EXHIBIT
G
PRELIMINARY
FINANCIAL INFORMATION - (UNAUDITED)
DOLLARS IN
MILLIONS, EXCEPT PER SHARE AMOUNTS
|
|
Other Financial
Information:
|
|
|
|
|
|
|
|
|
|
|
|
|
September 29,
2019
|
|
December 31,
2018
|
|
|
|
|
Debt-to-equity
(a)
|
101.0
|
%
|
|
105.8
|
%
|
|
|
|
|
Debt-to-capital
(b)
|
50.3
|
%
|
|
51.4
|
%
|
|
|
|
|
Book value per share
(c)
|
$
|
46.71
|
|
|
$
|
40.64
|
|
|
|
|
|
Shares
outstanding
|
289,306,108
|
|
|
288,698,149
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third
Quarter
|
|
Nine
Months
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Income tax payments,
net
|
$
|
90
|
|
|
$
|
150
|
|
|
$
|
487
|
|
|
$
|
305
|
|
Company-sponsored
research and
development (d)
|
$
|
110
|
|
|
$
|
126
|
|
|
$
|
352
|
|
|
$
|
356
|
|
|
|
|
|
|
|
|
|
Non-GAAP Financial
Measures:
|
|
|
|
|
|
|
|
|
Third
Quarter
|
|
Nine
Months
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Earnings before
interest, taxes,
depreciation and amortization:
|
|
|
|
|
|
|
|
Earnings from
continuing operations
|
$
|
913
|
|
|
$
|
864
|
|
|
$
|
2,464
|
|
|
$
|
2,449
|
|
Interest,
net
|
114
|
|
|
114
|
|
|
350
|
|
|
244
|
|
Provision for income
tax, net
|
177
|
|
|
159
|
|
|
524
|
|
|
504
|
|
Depreciation of
property, plant and
equipment
|
120
|
|
|
109
|
|
|
352
|
|
|
315
|
|
Amortization of
intangible and
finance lease right-of-use assets
|
90
|
|
|
106
|
|
|
273
|
|
|
227
|
|
Earnings
before interest, taxes,
depreciation and amortization (e)
|
$
|
1,414
|
|
|
$
|
1,352
|
|
|
$
|
3,963
|
|
|
$
|
3,739
|
|
|
|
|
|
|
|
|
|
Free cash flow
from operations:
|
|
|
|
|
|
|
|
Net cash provided by
operating
activities
|
$
|
1,091
|
|
|
$
|
790
|
|
|
$
|
587
|
|
|
$
|
1,081
|
|
Capital
expenditures
|
(244)
|
|
|
(168)
|
|
|
(606)
|
|
|
(447)
|
|
Free cash flow from
operations (f)
|
$
|
847
|
|
|
$
|
622
|
|
|
$
|
(19)
|
|
|
$
|
634
|
|
|
|
|
|
(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 earnings from continuing operations. The most
directly comparable GAAP measure to EBITDA is earnings from
continuing operations.
|
|
|
|
|
(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
|
Third Quarter
2019:
|
|
|
|
|
|
|
|
|
|
|
Aerospace
|
|
$
|
11,195
|
|
|
$
|
188
|
|
|
$
|
11,383
|
|
|
$
|
2,065
|
|
|
$
|
13,448
|
|
Combat
Systems
|
|
15,069
|
|
|
449
|
|
|
15,518
|
|
|
4,255
|
|
|
19,773
|
|
Information
Technology
|
|
4,782
|
|
|
4,381
|
|
|
9,163
|
|
|
18,063
|
|
|
27,226
|
|
Mission
Systems
|
|
5,152
|
|
|
307
|
|
|
5,459
|
|
|
6,764
|
|
|
12,223
|
|
Marine
Systems
|
|
17,801
|
|
|
8,072
|
|
|
25,873
|
|
|
4,497
|
|
|
30,370
|
|
Total
|
|
$
|
53,999
|
|
|
$
|
13,397
|
|
|
$
|
67,396
|
|
|
$
|
35,644
|
|
|
$
|
103,040
|
|
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
|
|
Third Quarter
2018:
|
|
|
|
|
|
|
|
|
|
|
Aerospace
|
|
$
|
11,696
|
|
|
$
|
173
|
|
|
$
|
11,869
|
|
|
$
|
2,239
|
|
|
$
|
14,108
|
|
Combat
Systems
|
|
15,865
|
|
|
395
|
|
|
16,260
|
|
|
3,857
|
|
|
20,117
|
|
Information
Technology
|
|
5,222
|
|
|
4,731
|
|
|
9,953
|
|
|
17,365
|
|
|
27,318
|
|
Mission
Systems
|
|
5,024
|
|
|
587
|
|
|
5,611
|
|
|
7,453
|
|
|
13,064
|
|
Marine
Systems
|
|
16,615
|
|
|
9,221
|
|
|
25,836
|
|
|
3,797
|
|
|
29,633
|
|
Total
|
|
$
|
54,422
|
|
|
$
|
15,107
|
|
|
$
|
69,529
|
|
|
$
|
34,711
|
|
|
$
|
104,240
|
|
|
|
*
|
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/1015481/EXHIBIT_H_1_Consolidated.jpg
EXHIBIT H-2
BACKLOG BY SEGMENT -
(UNAUDITED)
DOLLARS IN MILLIONS
Photo -
https://mma.prnewswire.com/media/1015480/EXHIBIT_H_2_Aerospace.jpg
Photo -
https://mma.prnewswire.com/media/1015479/EXHIBIT_H_2_Combat_Systems.jpg
Photo -
https://mma.prnewswire.com/media/1015478/EXHIBIT_H_2_Information_Technology.jpg
Photo -
https://mma.prnewswire.com/media/1015477/EXHIBIT_H_2_Mission_Systems.jpg
Photo -
https://mma.prnewswire.com/media/1015476/EXHIBIT_H_2_Marine_Systems.jpg
Photo -
https://mma.prnewswire.com/media/1015526/EXHIBIT_H_2_Key.jpg
EXHIBIT I
THIRD QUARTER 2019
SIGNIFICANT ORDERS - (UNAUDITED)
DOLLARS IN
MILLIONS
We received the following significant contract awards during the
third quarter of 2019:
Combat Systems:
- $1.3 billion from the Canadian
government to produce armored combat support vehicles (ACSVs) and
provide associated support services.
- $155 from the U.S. Army for
various munitions and ordnance.
- $70 to produce gun systems for
the F-35 Joint Strike Fighter.
- $55 from the Army for various
maintenance and enhancements at the Lima Army Tank Plant in
Lima, Ohio.
Information Technology:
- An IDIQ contract to provide command, control, communications,
computers, intelligence, surveillance and reconnaissance (C4ISR)
installation services for the U.S. Navy. The program has a maximum
potential value of $2.5 billion among
6 awardees.
- A contract to provide program management and engineering
services to the Cybersecurity and Infrastructure Security Agency's
(CISA) emergency communications infrastructure. The contract has a
maximum potential value of $325.
- A contract from the U.S. Department of Veterans Affairs under
the Veterans Intake, Conversion and Communications Services (VICCS)
program to provide support and communication services to U.S.
veterans. The contract has a maximum potential value of
$280.
- $155 from the U.S. Department of
State to provide business process support services for the Bureau
of Consular Affairs' Global Support Strategy (GSS) program for visa
services.
- $125 to provide design,
development, testing, installation, maintenance, logistics support
and modernization services for Navy airborne and shipboard
platforms.
- $95 from the Centers for Medicare
and Medicaid Services for several key contracts, including support
of the Medicare Secondary Payer (MSP) program. These contracts have
a maximum potential value of $220.
Mission Systems:
- $265 from the Army for computing
and communications equipment under the Common Hardware Systems-5
program.
- $95 from the Army to provide
continued software support and engineering for the Warfighter
Information Network-Tactical (WIN-T) Increment 2 program.
- $65 from the Navy to provide fire
control system modifications for ballistic-missile and
guided-missile submarines.
- $45 from the Navy to produce five
Knifefish surface mine countermeasure systems and associated
support equipment.
- $25 from the Army for the
production of Prophet enhanced ground-based signals intelligence
and electronic warfare systems. The contract has a maximum
potential value of $295.
Marine Systems:
- $1.1 billion from the Navy for
design and construction of two Expeditionary Sea Base (ESB)
auxiliary support ships and an option totaling approximately
$550 for an additional ship.
- $175 from the Navy to provide
engineering, technical, design and planning yard support services
for operational strategic and attack submarines. The program has a
maximum potential value of $1
billion.
- $390 from the Navy for Advanced
Nuclear Plant Studies (ANPS) in support of the Columbia-class
submarine program.
- $110 from the Navy to provide
maintenance and repair services for the USS Kearsarge, an
amphibious assault ship.
EXHIBIT
J
AEROSPACE
SUPPLEMENTAL DATA - (UNAUDITED)
|
|
|
|
Third
Quarter
|
|
Nine
Months
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Gulfstream
Aircraft Deliveries (units):
|
|
|
|
|
|
|
|
|
Large-cabin
aircraft
|
|
29
|
|
|
21
|
|
|
79
|
|
|
58
|
Mid-cabin
aircraft
|
|
9
|
|
|
6
|
|
|
24
|
|
|
21
|
Total
|
|
38
|
|
|
27
|
|
|
103
|
|
|
79
|
Pre-owned Aircraft
Deliveries (units):
|
|
4
|
|
|
2
|
|
|
9
|
|
|
4
|
|
|
|
|
|
|
|
|
|
Aerospace
Book-to-Bill:
|
|
|
|
|
|
|
|
|
Orders*
|
|
$
|
1,693
|
|
|
$
|
1,743
|
|
|
$
|
7,022
|
|
|
$
|
5,479
|
Revenue (excluding
pre-owned aircraft sales)
|
|
2,404
|
|
|
1,962
|
|
|
6,735
|
|
|
5,672
|
Book-to-Bill
Ratio
|
|
0.70x
|
|
|
0.89x
|
|
|
1.04x
|
|
|
0.97x
|
|
|
*
|
Does not include
customer defaults, liquidated damages, cancellations, foreign
exchange fluctuations and other backlog adjustments.
|
View original
content:http://www.prnewswire.com/news-releases/general-dynamics-reports-third-quarter-2019-results-300943615.html
SOURCE General Dynamics