Boston, MA 05/15/2014 (wallstreetpr) – Renowned Defense Contractual Operator in the United States, L-3 Communications Holdings, Inc. (NYSE:LLL) ended the last quarter on a remarkable note, as it pulled up earnings to $2.01 per share, in comparison to Year-over-Year profits estimating to $1.98 EPS. Despite budget uncertainties, LLL has carved out an exquisitely strong quarter, with exotic program execution, emphatic cost cutting initiatives and profits amassed from the extensive commercial international business endeavors.
Revenues and Earnings
L-3 Communications Holdings, Inc. (NYSE:LLL) has earned total revenues amounting to $2.971 billion in Q1-2014, though down by 6.7% Year-over-Year owing to rampant declines. In Q1-2014, LLL has dealt with Funded Orders worth $3 billion, up by 4.5% YoY! Funded Backlog declined meagerly by 0.4% – from $10.3 billion in Q4-2013 to $10.4 billion in Q1-2014.
However, the operating income of LLL declined by 2% YoY to $307 million, though its operating margin shot upwards by 80 basis points YoY due to a reduction in the pension expenditures. The net income procured at the end of Q1 is $180 million – down by 7% YoY!
Financial Position
Capital Expenses in Q1-2014 amounted to $29 million, compared to $48 million YoY; free cash flow came down by $7 million YoY and stood at $91 million! At the end of Q1, cash dividends per quarter escalated by 9% – 55 to 60 cents per-share!
Debt Redemption Strategies
L-3 Communications Holdings, Inc. (NYSE:LLL) was reeling under a comprehensive long term debt of $3.631 billion from Q4-2013. In this light, the company has taken a stand to fully redeem its outstanding 3% CODES (Comvertible Contingent Debt Securities), due 2035, to obtain an aggregate principal amount of $689.4 million. The redemption price is fixed at $1K for $1K CODES principal amount, plus unpaid or accrued interest. All CODES holders are entitled to pay this outright in cash!
Quite recently, the SVP of L-3, Richard Cody announced that he has sold off 15.965K shares! The transaction was valued at a whopping $1,821,948.75, with each share priced at $114.05.
Employees Laid Off— A Strategy To Cut Costs?
On May 1, 2014, L-3 Communications Holdings, Inc. (NYSE:LLL) let go 113 employees – mere seven months after the company sacked 61 employees! In 2013, the company has been in the news because of laying off 420 workers in its facility in Utah and 150 in Waco, Texas. Worldwide, L-3 has a formidable employee base of 48,000. The most recent laying off is definitely a clarion call for its employees to perform par excellence!
