
ATK Completes Acquisition of PSI Group
ATK Increases FY05 Earnings Guidance to $3.90 - $4.00 Per Share *ATK Increases FY05 Sales Guidance to $2.75 Billion *Acquisition Paves Way for Growth in Space Systems and Subsystems
Sep 23, 2004
Minneapolis, September 23, 2004 – ATK (NYSE: ATK) has completed its acquisition of the PSI Group following regulatory review from the Federal Trade Commission.
The PSI Group is a leader in the design and manufacture of components for military and commercial space-based applications, including global positioning, navigation and communication satellites, satellite bus structures, struts, reflectors and deployable mast booms. The acquisition strengthens ATK’s advanced space systems portfolio and positions it to capture emerging opportunities in spacecraft integration and satellite technology. The company expects to increase its content on missions while expanding into new advanced space technology roles. The $165 million purchase price represents approximately eight times PSI’s anticipated full year earnings before income, taxes, depreciation and amortization (EBITDA).
ATK is raising its FY05 earnings per share guidance to $3.90 to $4.00 per share. Previous guidance was $3.85 to $3.95 per share. In addition, the company is increasing its FY05 sales guidance to $2.75 billion from $2.7 billion. With planned pre-payments in excess of $100 million, ATK now expects FY05 year-end debt to be less than $1.15 billion.
ATK is a $2.4 billion advanced weapon and space systems company employing 13,500 people in 23 states. 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: 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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