Orbital Reports Fourth Quarter And Full Year Financial Results

Orbital Sciences has reported financial results for the fourth quarter and full year 2006. Orbital reported fourth quarter 2006 revenues of $215.8 million, an 8% increase compared to revenues of $199.6 million in the fourth quarter of 2005. The company's fourth quarter 2006 operating income rose 50% to $20.4 million as compared to $13.6 million of operating income in the comparable quarter in 2005.

Fourth quarter adjusted net income* was $12.5 million in 2006, compared to net income of $7.5 million in 2005, and adjusted diluted earnings per share* (EPS) was $0.20, compared to diluted EPS of $0.12 in the fourth quarter of 2005. Orbital reported fourth quarter 2006 free cash flow* of $2.9 million compared to free cash flow of $26.5 million a year ago.

For the full year, Orbital reported revenues of $802.8 million in 2006, up 14% as compared to $703.5 million in 2005. Operating income was $67.9 million in 2006, up 29% as compared to $52.5 million in 2005. Adjusted net income was $39.6 million in 2006, or $0.63 adjusted diluted EPS, compared to net income of $27.8 million, or $0.45 diluted EPS, in 2005. Orbital reported $78.5 million of free cash flow for the full year of 2006, compared to $59.1 million in 2005.

Commenting on Orbital's financial results, Mr. David W. Thompson, Chairman and Chief Executive Officer, said, "With exceptionally strong fourth quarter results, Orbital completed an outstanding year in 2006. The company's commercial satellite business generated strong revenue growth and significantly higher operating profit margins as compared to last year.

"Our missile defense programs also continued to post solid results, as did the other products in our launch vehicles segment. In addition, we completed a long-term debt refinancing late in 2006, enhancing our capital structure and significantly reducing future interest costs. We also expect these positive operational and financial trends to continue in 2007, as we add human space exploration projects as a new contributor to revenue growth and profitability for the company."