ATK Receives $50 Million DHS Maritime Patrol Contract on Day One after MRC Acquisition
MRC to Equip Two Aircraft with Advanced Suite of Sensors
Mar 17, 2004
Minneapolis, March 17, 2004 – On the first day after acquiring Mission Research Corporation (MRC), ATK (Alliant Techsystems, NYSE: ATK) received a sensor system integration contract to equip two Bombardier-8 aircraft with advanced sensor suites and mission system operator workstations. The aircraft will serve the Department of Homeland Security (DHS), Immigration and Customs Enforcement (ICE) division. The contract value is approximately $50 million, half of which is funded for 2004.
Work on the Maritime Patrol Aircraft (MPA) will be performed at the ATK Mission Research facility in Fort Worth, Texas. The aircraft will be outfitted with electro-optical and infrared sensors, a communications suite, and a workstation capable of observation at night and in adverse weather.
Steve McCool, ATK Mission Research sector manager, said, "ATK sensors, communications technology, and our world-class aircraft retrofit capabilities give DHS important tools to help secure our nation’s borders."
Dan Murphy, ATK chief executive officer, added, "ATK Mission Research is developing the sensor system integration technology needed to meet a broad spectrum of complex security requirements. We are pleased to have added this important capability to ATK’s business base."
The $215 million acquisition closed on Monday, March 15, following federal regulatory approval and MRC shareholder approval. ATK expects it to be immediately accretive and add approximately $170-180 million in revenues during the fiscal year beginning April 1, 2004. Including today’s contract win, MRC backlog is approximately $200 million.
As previously stated, ATK’s financial guidance for FY ’05 (including MRC) stipulates revenue growth of approximately 12-15 percent over the current year and earnings of $3.80 – 3.95 per share. The new business will remain headquartered in Santa Barbara, Calif.
The acquisition, which gives ATK a leadership position in sensor integration and emerging technologies, will serve as an organic growth accelerator for the company.
ATK is a $2.2 billion aerospace and defense company with strong positions in propulsion, composite structures, munitions, precision capabilities, and civil and sporting ammunition. The company, which is headquartered in Edina, Minn., employs approximately 13,100 people and has three business groups: Precision Systems, Aerospace, and Ammunition and Related Products. ATK news and information can be found on the Internet at www.atk.com.
Certain information discussed in this press release constitutes forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Although ATK believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be achieved. Forward-looking information is subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected. Among those factors are: delivery time lines for sensor system integration suites, changes in governmental spending and budgetary policies, economic conditions, equity market returns, the company's competitive environment, the timing of awards and contracts, the outcome of contingencies, including litigation and environmental remediation, program performance, and sales projections. ATK undertakes no obligation to update any forward-looking statements. For further information on factors that could impact ATK, and statements contained herein, reference should be made to ATK’s filings with the Securities and Exchange Commission, including quarterly reports on Form 10-Q, current reports on Form 8-K and annual reports on Form 10-K.
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