- Revenue: $820 million for the fourth quarter and $2.7
billion for the year
- Net Earnings: $65 million for the fourth quarter and
$405 million for the year
- Adjusted EBITDA: $120 million for the fourth quarter and
$318 million for the year
- Diluted EPS: $0.28 for the fourth quarter and $1.88 for
the year
- Adjusted Diluted EPS: $0.35 for the fourth quarter and
$0.83 for the year
- Bookings: $852 million for the fourth quarter and $3.2
billion for the year (book-to-bill ratio of 1.2)
- Backlog: A record $4.3 billion, up 49% as result of a
multi-boat Columbia Class electric power and propulsion
contract
- Initiates solid 2023 guidance
Leonardo DRS (Nasdaq and TASE: DRS), a leading provider of
advanced defense technologies, today reported financial results for
the fourth quarter and year ended December 31, 2022.
CEO Commentary
“2022 was a transformative year for Leonardo DRS. We executed on
several strategic actions to strengthen our position in core
technology markets. The team delivered solid results in a dynamic
operating environment particularly with respect to a challenging
supply chain, persisting inflation and tight labor availability. We
continue to see strong demand for our innovative technologies and
differentiated capabilities providing a path for long-term growth
acceleration. In 2023, our steadfast focus is on operational
execution to meet our commitments and deliver value for our
customers and shareholders,” said Bill Lynn, Chairman and CEO of
Leonardo DRS.
Summary Financial Results
(In millions, except per share
amounts)
Fourth Quarter
Full Year
2022
2021
Change
2022
2021
Change
Revenues
$820
$820
—%
$2,693
$2,879
(6%)
Net Earnings
$65
$58
12%
$405
$154
163%
Diluted WASO
229.045
210.445
215.133
210.445
Diluted Earnings Per Share (EPS)
$0.28
$0.28
3%
$1.88
$0.73
157%
Non-GAAP
Financial Measures (1)
Adjusted EBITDA
$120
$100
21%
$318
$310
3%
Adjusted EBITDA Margin
14.7%
12.1%
260 bps
11.8%
10.8%
100 bps
Adjusted Net Earnings (2)
$81
$63
28%
$179
$174
3%
Adjusted Diluted EPS (2)
$0.35
$0.30
17%
$0.83
$0.83
1%
(1) Information about the company’s use of
non-GAAP financial measures, including a reconciliation of the
non-GAAP financial measures to the most comparable financial
measures calculated and presented in accordance with U.S. GAAP, is
provided under "Non-GAAP Financial Measures."
(2) The company changed its definitions
for adjusted net earnings and adjusted diluted EPS from its latest
form 10-Q filing. The revised methodology now mirrors the same
adjustments made to adjusted EBITDA with the exception of interest,
taxes and depreciation and now is also tax effecting all
adjustments made to adjusted net earnings and adjusted diluted EPS.
Supplemental quarterly 2022 data for both metrics have been
included in the “Non-GAAP Financial Measures” section for
reference.
Revenues for the quarter were flat as greater demand in our
Advanced Sensing and Computing (ASC) segment outweighed reductions
in our Integrated Mission Systems (IMS) segment. For the year,
revenues declined largely due to the contribution differences
resulting from the timing and relative size of our divestiture of
our Global Enterprise Solutions (GES) business versus our
acquisition of RADA Electronic Industries (RADA) (collectively
referred to as the “net divestiture impact”) as well as the supply
chain disruptions that continued to limit the availability and
delivery lead times of electronic components.
Adjusted EBITDA growth and adjusted EBITDA margin expansion for
the quarter and full year were driven by improved program
performance, the strength of which was partly offset by unfavorable
volume, inflation and the net divestiture impact.
For the quarter, strong operating performance and a favorable
tax rate drove net earnings growth. The gain on the divestitures of
GES and our Advanced Acoustic Concepts Joint Venture positively
impacted net earnings and diluted earnings per share for the year.
The increase in adjusted net earnings for the quarter and year were
driven by solid operating performance. Additionally, the increase
in share count resulting from our all-stock merger with RADA was a
headwind to the year-over-year comparisons for diluted EPS and for
adjusted diluted EPS.
Cash Flow, Balance Sheet and Strategic Actions
Net cash flow provided by operating activities was $279 million
for the fourth quarter and $33 million for the full year. For both
the quarter and full year, both cash outflows for tax payments on
disposals and payments related to our M&A activities have been
recorded in operating activities, while the related cash inflows
from the proceeds from sales of businesses are categorized in
investing activities and the subsequent dividend of net proceeds
issued to US Holdings is shown in financing activities.
Consistent with the historical patterns of the business, the
company generated strong free cash flow in the fourth quarter of
$336 million. Full year free cash flow was $74 million, which was
hampered by supply chain disruptions that led to less working
capital efficiency.
In conjunction with the company’s public listing in November
2022, it entered into a $500 million credit agreement comprised of
a $225 million five-year term loan A facility and a five-year $275
million revolving credit facility. At year end, the balance sheet
had $306 million of cash and $225 million of outstanding borrowings
under its credit facility, which still leaves the company with
ample financial capacity to deploy capital for growth, while
maintaining a strong balance sheet.
During the fiscal year, Leonardo DRS completed two divestitures
and a strategic acquisition to reshape the future growth trajectory
of the company. On November 28, 2022, the company completed its
all-stock combination with RADA. On August 1, 2022, the company
completed its divestiture of its Global Enterprise Solutions
business to SES Government Solutions for $427 million (net of
working capital adjustments). On July 8, 2022, the company
completed its divestiture of its 51% stake in the Advanced Acoustic
Concepts Joint Venture to Thales Defense & Security for $56
million. The company issued a dividend for the net divestiture
proceeds to its sole shareholder (at the time) in the third quarter
of 2022.
Bookings and Backlog
(Dollars in millions)
Fourth Quarter
Full Year
2022
2021
2022
2021
Bookings
$852
$676
$3,156
$2,595
Book-to-Bill
1.0x
0.8x
1.2x
0.9x
Backlog
$4,269
$2,861
$4,269
$2,861
The company received $852 million in new funded awards during
the quarter and $3.2 billion for the year. Strong bookings were
driven by the increased demand for the company’s solutions across
its four key technology areas of advanced sensing, network
computing, force protection and electric power and propulsion. As a
result of the strong bookings across the company and the multi-boat
contract for our Columbia Class electric power and propulsion
system valued at approximately $1 billion, backlog increased by 49%
to a record $4.3 billion.
Segment Results
Advanced Sensing and Computing (“ASC”) Segment
(Dollars in millions)
Fourth Quarter
Full Year
2022
2021
Change
2022
2021
Change
Revenues
$485
$452
7%
$1,733
$1,940
(11%)
Adjusted EBITDA
$74
$49
50%
$199
$220
(10%)
Adjusted EBITDA Margin
15.3%
10.9%
440 bps
11.5%
11.3%
20 bps
Bookings
$402
$332
$1,975
$1,691
Book-to-Bill
0.8x
0.7x
1.1x
0.9x
Fourth quarter ASC revenues were up despite the unfavorable net
divestiture impact due to increased demand for our sensing
capabilities and a stabilization in the timing of electronic
component availability. Full year revenues in the segment declined
due to the net divestiture headwind as well as the continued impact
of supply chain disruptions.
In the fourth quarter, Adjusted EBITDA and adjusted EBITDA
margins increased with improved program efficiencies and better
volumes as the primary driving factors. For the full year, adjusted
EBITDA declined on lower volumes driven but program efficiencies
helped drive a slight increase in adjusted EBITDA margins.
The increased demand for advanced battle management systems,
ground vehicle sensing and dismounted sensing systems drove growth
in bookings for ASC in the quarter and the full year.
Integrated Mission Systems (“IMS”) Segment
(Dollars in millions)
Fourth Quarter
Full Year
2022
2021
Change
2022
2021
Change
Revenues
$349
$375
(7%)
$983
$959
3%
Adjusted EBITDA
$46
$51
(10%)
$119
$90
32%
Adjusted EBITDA Margin
13.2%
13.6%
(40) bps
12.1%
9.4%
270 bps
Bookings
$450
$344
$1,181
$904
Book-to-Bill
1.3x
0.9x
1.2x
0.9x
Program delays slipped revenue into Q4 2021, elevating the prior
period and made for a tough compare. Revenues for the full year
increased due to greater contribution from electric power and
propulsion and force protection programs.
Adjusted EBITDA and adjusted EBITDA margin declined in the
quarter due to lower volume. For the full year, adjusted EBITDA was
up and adjusted EBITDA margins expanded due to stronger program
execution efficiency and slightly better volume.
The positive momentum in shipbuilding is adding to our electric
power and propulsion programs and increased demand related to C-UAS
and air defense systems drove IMS segment bookings for the quarter
and year.
2023 Guidance
Leonardo DRS is initiating 2023 guidance as specified in the
table below:
Measure
2023
Guidance
Revenue
$2.7 billion - $2.8 billion
Adjusted EBITDA
$315 million - $330 million
Adjusted Diluted EPS
$0.64 - $0.69
The company does not provide a reconciliation of forward-looking
adjusted EBITDA and adjusted diluted EPS, due to inherent
difficulty in forecasting and quantifying the adjustments that are
necessary to calculate such non-GAAP measures without unreasonable
efforts. Material changes to any one of these items could have a
significant effect on future GAAP results.
Conference Call
Leonardo DRS management will host a conference call beginning at
10:30 a.m. ET on March 28, 2023 to discuss the financial results
for its fourth quarter and fiscal year 2022.
A live audio broadcast of the conference call along with a
supplemental presentation will be available to the public through
links on the Leonardo DRS Investor Relations website
(https://investors.leonardodrs.com).
A replay of the conference call will be available on the
Leonardo DRS website approximately 2 hours after the conclusion of
the conference call.
About Leonardo DRS
Headquartered in Arlington, VA, Leonardo DRS, Inc. is an
innovative and agile provider of advanced defense technology to
U.S. national security customers and allies around the world. We
specialize in the design, development and manufacture of advanced
sensing, network computing, force protection, and electric power
and propulsion, and other leading mission-critical technologies.
Our innovative people are leading the way in developing disruptive
technologies for autonomous, dynamic, interconnected, and
multi-domain capabilities to defend against new and emerging
threats. For more information and to learn more about our full
range of capabilities, visit www.LeonardoDRS.com.
Forward-Looking Statements
In this press release, when using the terms the “company”,
“DRS”, “we”, “us” and “our,” unless otherwise indicated or the
context otherwise requires, we are referring to Leonardo DRS, Inc.
This press release contains forward-looking statements and
cautionary statements within the meaning of the Private Securities
Litigation Reform Act of 1995. Some of the forward-looking
statements can be identified by the use of forward-looking terms
such as “believes,” “expects,” “may,” “will,” “shall,” “should,”
“would,” “could,” “seeks,” “aims,” “strives,” “targets,”
“projects,” “guidance,” “intends,” “plans,” “estimates,”
“anticipates” or other comparable terms. Forward-looking statements
include, without limitation, all matters that are not historical
facts. They appear in a number of places throughout this press
release and include, without limitation, statements regarding our
intentions, beliefs, assumptions or current expectations
concerning, among other things, financial goals, financial
position, results of operations, cash flows, prospects, strategies
or expectations, and the impact of prevailing economic
conditions.
Forward-looking statements are subject to known and unknown
risks and uncertainties, many of which may be beyond our control.
We caution you that forward-looking statements are not guarantees
of future performance or outcomes and that actual performance and
outcomes may differ materially from those made in or suggested by
the forward-looking statements contained in this press release. In
addition, even if future performance and outcomes are consistent
with the forward-looking statements contained in this press
release, those results or developments may not be indicative of
results or developments in subsequent periods. New factors emerge
from time to time that may cause our business not to develop as we
expect, and it is not possible for us to predict all of them.
Factors that could cause actual results and outcomes to differ from
those reflected in forward-looking statements include, without
limitation: disruptions or deteriorations in our relationship with
the relevant agencies of the U.S. government, as well as any
failure to pass routine audits or otherwise comply with
governmental requirements including those related to security
clearance or procurement rules, including the False Claims Act;
significant delays or reductions in appropriations for our programs
and changes in U.S. government priorities and spending levels more
broadly; any failure to comply with the proxy agreement with the
U.S. Department of Defense (the “DoD”); failure to properly contain
a global pandemic in a timely manner could materially affect how we
and our business partners operate; the effect of inflation on our
supply chain and/or our labor costs; our mix of fixed-price,
cost-plus and time-and-material type contracts and any resulting
impact on our cash flows due to cost overruns; failure to properly
comply with various covenants of the agreements governing our debt
could negatively impact our business; our dependence on U.S.
government contracts, which often are only partially funded and are
subject to immediate termination, some of which are classified, and
the concentration of our customer base in the U.S. defense
industry; our use of estimates in pricing and accounting for many
of our programs that are inherently uncertain and which may not
prove to be accurate; our ability to realize the full value of our
backlog; our ability to predict future capital needs or to obtain
additional financing if we need it; our ability to respond to the
rapid technological changes in the markets in which we compete; the
effect of global and regional economic downturns and rising
interest rates; our ability to meet the requirements of being a
public company; our ability to maintain an effective system of
internal control over financial reporting; our inability to
appropriately manage our inventory; our inability to fully realize
the value of our total estimated contract value or bookings; our
ability to compete efficiently, including due to U.S. government
organizational conflict of interest rules which may limit new
contract opportunities or require us to wind down existing
contracts; our relationships with other industry participants,
including any contractual disputes or the inability of our key
suppliers to timely deliver our components, parts or services;
preferences for set-asides for minority-owned, small and small
disadvantaged businesses could impact our ability to be a prime
contractor; any failure to meet our contractual obligations
including due to potential impacts to our business from supply
chain risks, such as longer lead times and shortages of electronics
and other components; any security breach, including any
cyber-attack, cyber intrusion, insider threat, or other significant
disruption of our IT networks and related systems as well as any
act of terrorism or other threat to our physical security and
personnel; our ability to fully exploit or obtain patents or other
intellectual property protections necessary to secure our
proprietary technology, including our ability to avoid infringing
upon the intellectual property of third parties or prevent third
parties from infringing upon our own intellectual property; the
conduct of our employees, agents, affiliates, subcontractors,
suppliers, business partners or joint ventures in which we
participate which may impact our reputation and ability to do
business; our compliance with environmental laws and regulations,
and any environmental liabilities that may affect our reputation or
financial position; the outcome of litigation, arbitration,
investigations, claims, disputes, enforcement actions and other
legal proceedings in which we are involved; various geopolitical
and economic factors, laws and regulations including the Foreign
Corrupt Practices Act (“FCPA”), the Export Control Act, the
International Traffic in Arms Regulations (“ITAR”), the Export
Administration Regulations (“EAR”), and those that we are exposed
to as a result of our international business; our ability to obtain
export licenses necessary to conduct certain operations abroad,
including any attempts by Congress to prevent proposed sales to
certain foreign governments; our ability to attract and retain
technical and other key personnel; the occurrence of prolonged work
stoppages; the unavailability or inadequacy of our insurance
coverage, customer indemnifications or other liability protections
to cover all of our significant risks or to pay for material losses
we incur; future changes in U.S. tax laws and regulations or
interpretations thereof; certain limitations on our ability to use
our net operating losses to offset future taxable income;
termination of our leases or our inability to renew our leases on
acceptable terms; changes in estimates used in accounting for our
pension plans, including in respect of the funding status thereof;
changes in future business or other market conditions that could
cause business investments and/or recorded goodwill or other
long-term assets to become impaired; adverse consequences from any
acquisitions such as operating difficulties, dilution and other
harmful consequences or any modification, delay or prevention of
any future acquisition or investment activity by the Committee on
Foreign Investment in the United States (“CFIUS”); natural
disasters or other significant disruptions; or any conflict of
interest that may arise because Leonardo US Holding, LLC (“US
Holding”), our majority stockholder, or Leonardo S.p.A., our
ultimate majority stockholder, may have interests that are
different from, or conflict with, those of our other stockholders,
including as a result of any ongoing business relationships
Leonardo S.p.A. may have with us, and their significant ownership
in us may discourage change of control transactions (our amended
and restated certificate of incorporation provides that we waive
any interest or expectancy in corporate opportunities presented to
Leonardo S.p.A); or our obligations to provide certain services to
Leonardo S.p.A., which may divert human and financial resources
from our business.
You should read this press release completely and with the
understanding that actual future results may be materially
different from expectations. All forward-looking statements made in
this press release are qualified by these cautionary statements.
These forward-looking statements are made only as of the date of
this filing, and we do not undertake any obligation, other than as
may be required by law, to update or revise any forward-looking or
cautionary statements to reflect changes in assumptions, the
occurrence of events, unanticipated or otherwise, and changes in
future operating results over time or otherwise.
Other risks, uncertainties and factors, including those
discussed in our latest SEC filings under “Risk Factors” of our
latest Annual Report on Form 10-K and Quarterly Reports on Form
10-Q, all of which may be viewed or obtained through the investor
relations section of our website https://www.leonardodrs.com, could
cause our actual results to differ materially from those projected
in any forward-looking statements we make. Readers should read
carefully the discussion of these factors to better understand the
risks and uncertainties inherent in our business and underlying any
forward-looking statements.
Consolidated Statement of Earnings
(Unaudited)
(Dollars in millions, except per share
amounts)
Three Months Ended
Twelve Months Ended
December 31,
December 31,
2022
2021
2022
2021
Revenues
Products
$773
$767
$2,443
$2,505
Services
47
53
250
374
Total revenues
820
820
2,693
2,879
Cost of revenues
Products
(600
)
(642
)
(1,928
)
(2,067
)
Services
(36
)
(25
)
(190
)
(265
)
Total cost of revenues
(636
)
(667
)
(2,118
)
(2,332
)
Gross profit
184
153
575
547
General and administrative expenses
(96
)
(68
)
(357
)
(293
)
Amortization of intangibles
(3
)
(2
)
(10
)
(9
)
Other operating income (expenses), net
2
(2
)
353
(9
)
Operating earnings
87
81
561
236
Interest expense
(7
)
(8
)
(34
)
(35
)
Other, net
(2
)
—
(2
)
(1
)
Earnings before taxes
78
73
525
200
Income tax provision
13
15
120
46
Net earnings
$65
$58
$405
$154
Net earnings per share from common
stock
Basic earnings per share:
$0.28
$0.28
$1.88
$0.73
Diluted earnings per share:
$0.28
$0.28
$1.88
$0.73
Consolidated Balance Sheets
(Unaudited)
(Dollars in millions)
December 31,
2022
2021
ASSETS
Current assets:
Cash and cash equivalents
$306
$240
Accounts receivable, net
166
156
Contract assets
872
743
Inventories
319
205
Related party note receivable
—
—
Prepaid expenses
20
23
Other current assets
24
22
Total current assets
1,707
1,389
Noncurrent assets:
Property plant and equipment, net
404
364
Intangible assets, net
172
52
Goodwill
1,236
1,071
Deferred tax assets
66
56
Other noncurrent assets
92
137
Total noncurrent assets
1,970
1,680
Total assets
$3,677
$3,069
LIABILITIES AND SHAREHOLDERS'
EQUITY
Current liabilities:
Short-term borrowings and current portion
of long-term debt
$29
$41
Accounts payable
457
479
Contract liabilities
233
174
Other current liabilities
323
295
Total current liabilities
1,042
989
Noncurrent liabilities:
Long-term debt
365
352
Pension and other postretirement benefit
plan liabilities
45
61
Other noncurrent liabilities
98
74
Total noncurrent liabilities
$508
$487
Shareholders' equity
Preferred stock, $0.01 par value:
10,000,000 shares authorized; none issued
$—
$—
Common stock, $0.01 par value: 350,000,000
shares authorized; 260,234,033 shares issued and outstanding
3
2
Additional paid-in capital
5,147
4,632
Accumulated deficit
(2,974
)
(2,983
)
Accumulated other comprehensive loss
(49
)
(58
)
Total shareholders' equity
2,127
1,593
Total liabilities and shareholders'
equity
$3,677
$3,069
Consolidated Statement of Cash Flows
(Unaudited)
(Dollars in millions)
Year Ended
December 31,
2022
2021
Operating activities
Net earnings
$405
$154
Adjustments to reconcile net earnings
(loss) to net cash from operating activities:
Depreciation and amortization
65
58
Deferred income taxes
(6
)
31
Gain from divestitures
(354
)
—
Other
5
—
Changes in assets and liabilities:
Accounts receivable
(1
)
(54
)
Contract assets
(134
)
(71
)
Inventories
(33
)
42
Prepaid expenses
(1
)
10
Other current assets
3
12
Other noncurrent assets
24
19
Defined benefit obligations
(4
)
(13
)
Other current liabilities
14
28
Other noncurrent liabilities
(8
)
(36
)
Accounts payable
(14
)
1
Contract liabilities
72
(3
)
Net cash provided by operating
activities
33
178
Investing activities
Capital expenditures
(65
)
(60
)
Business acquisitions, net of cash
acquired
19
(14
)
Proceeds from sales of assets
—
—
Proceeds from sales of businesses
482
—
Net repayments received (advances) on
related party note receivable
—
115
Cost method investment
—
(2
)
Net cash provided by (used in) investing
activities
436
39
Financing activities
Net (decrease) increase in third party
borrowings (maturities of 90 days or less)
(8
)
(18
)
Repayment of third party debt
—
—
Borrowings of third party debt
223
—
Repayment of related party debt
(992
)
(950
)
Borrowings from related parties
775
930
Dividend to US Holding
(396
)
—
Dividend from investment
3
—
Other
(8
)
—
Net cash used in financing activities
(403
)
(38
)
Effect of exchange rate changes on cash
and cash equivalents
—
—
Net increase (decrease) in cash and cash
equivalents
66
179
Cash and cash equivalents at beginning of
year
240
61
Cash and cash equivalents at end of
year
$306
$240
Non-GAAP Financial Measures (Unaudited)
In addition to the results reported in accordance with U.S. GAAP
included throughout this document, the company has provided
information regarding “Adjusted EBITDA,” “Adjusted EBITDA Margin,”
“Adjusted Net Earnings,” “Adjusted Diluted Earnings Per Share,” and
“Free Cash Flow” (each, a non-GAAP financial measure).
We believe the non-GAAP financial measures presented in this
document will help investors understand our financial condition and
operating results and assess our future prospects. We believe these
non-GAAP financial measures, each of which is discussed in greater
detail below, are important supplemental measures because they
exclude unusual or non-recurring items as well as non-cash items
that are unrelated to or may not be indicative of our ongoing
operating results. Further, when read in conjunction with our GAAP
results, these non-GAAP financial measures provide a baseline for
analyzing trends in our underlying businesses and can be used by
management as a tool to help make financial, operational and
planning decisions. Finally, these measures are often used by
analysts and other interested parties to evaluate companies in our
industry by providing more comparable measures that are less
affected by factors such as capital structure.
We recognize that these non-GAAP financial measures have
limitations, including that they may be calculated differently by
other companies or may be used under different circumstances or for
different purposes, thereby affecting their comparability from
company to company. In order to compensate for these and the other
limitations discussed below, management does not consider these
measures in isolation from or as alternatives to the comparable
financial measures determined in accordance with U.S. GAAP. Readers
should review the reconciliations below and should not rely on any
single financial measure to evaluate our business.
We define these non-GAAP financial measures as follows:
Adjusted EBITDA and Adjusted EBITDA Margin are
defined as net earnings before income taxes, interest expense,
amortization of acquired intangible assets, depreciation, deal
related transaction costs, restructuring costs, other non-operating
expense (which includes non-service pension expense, COVID-19
response costs and foreign exchange impacts) and gain on sale of
dispositions, then in the case of adjusted EBITDA margin dividing
adjusted EBITDA by revenues.
(Dollars in millions)
Three Months Ended
Twelve Months Ended
December 31,
December 31,
2022
2021
2022
2021
Net earnings
$65
$58
$405
$154
Income tax provision
13
15
120
46
Interest expense
7
8
34
35
Amortization of intangibles
3
2
10
9
Depreciation
14
12
55
49
Deal related transaction costs
17
1
43
5
Restructuring costs
3
5
3
5
Other non-operating expense
2
(1
)
2
7
Gain on sale of dispositions
(4
)
—
(354
)
—
Adjusted EBITDA
$120
$100
$318
$310
Adjusted EBITDA Margin
14.7
%
12.1
%
11.8
%
10.8
%
Adjusted Net Earnings and Adjusted Diluted EPS are
defined as net earnings excluding amortization of acquired
intangible assets, deal related transaction costs, restructuring
costs, other non-operating expense (which includes non-service
pension expense, COVID-19 response costs, foreign exchange
impacts), gain on sale of dispositions (net of taxes) and the
related tax impact from net earnings, then in the case of adjusted
diluted EPS dividing adjusted net earnings by the diluted weighted
average shares outstanding.
(In millions, except per share
amounts)
Three Months Ended
Twelve Months Ended
December 31,
December 31,
2022
2021
2022
2021
Net earnings
$65
$58
$405
$154
Amortization of intangibles
3
2
10
9
Deal related transaction costs
17
1
43
5
Restructuring costs
3
5
3
5
Other non-operating expense
2
(1
)
2
7
Gain on sale of dispositions, net of
taxes
(5
)
—
(275
)
—
Tax effect of adjustments (1)
(4
)
(2
)
(9
)
(6
)
Adjusted Net Earnings
$81
$63
$179
$174
Per share
information
Diluted weighted average common shares
229.045
210.445
215.133
210.445
Diluted earnings per share
$0.28
$0.28
$1.88
$0.73
Adjusted Diluted EPS
$0.35
$0.30
$0.83
$0.83
(In millions, except per share
amounts)
2022 (Three Months
Ended)
Mar 31
Jun 30
Sep 30
Dec 31
Q1
Q2
Q3
Q4
Net earnings
$36
$25
$279
$65
Amortization of intangibles
2
2
3
3
Deal related transaction costs
2
8
16
17
Restructuring costs
—
—
—
3
Other non-operating expense
—
1
(1
)
2
Gain on sale of dispositions, net of
taxes
—
—
(270
)
(5
)
Tax effect of adjustments (1)
(1
)
(2
)
(2
)
(4
)
Adjusted Net Earnings
$39
$34
$25
$81
Per share
information
Diluted weighted average common shares
210.445
210.445
210.445
229.045
Diluted earnings per share
$0.17
$0.12
$1.33
$0.28
Adjusted Diluted EPS
$0.19
$0.16
$0.12
$0.35
(1) Calculation uses an estimated
statutory tax rate on non-GAAP adjustments.
Free Cash Flow is defined as the sum of the cash flows
provided by (used in) operating activities, transaction related
expenditures (net of tax), tax payments on disposals, capital
expenditures, proceeds from sale of assets and dividends from
investments.
(Dollars in millions)
Three Months Ended
Twelve Months Ended
December 31,
December 31,
2022
2021
2022
2021
Net cash provided by operating
activities
$279
$289
$33
$178
Transaction related expenditures, net of
tax
6
—
25
4
Tax payments on disposals
78
—
78
—
Capital expenditures
(30
)
(18
)
(65
)
(60
)
Proceeds from sales of assets
—
—
—
—
Dividends from investments
3
—
3
—
Free Cash Flow
$336
$271
$74
$122
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230328005240/en/
Leonardo DRS Contacts Investors Steve Vather VP, Investor Relations
& Corporate Finance +1 703 409 2906 stephen.vather@drs.com
Media Michael Mount VP,
Communications & Public Affairs +1 571 447 4624
mmount@drs.com
Leonardo DRS (NASDAQ:DRS)
Historical Stock Chart
From Jun 2024 to Jul 2024
Leonardo DRS (NASDAQ:DRS)
Historical Stock Chart
From Jul 2023 to Jul 2024