Armor Holdings Inc.
April 19, 2007: Military
armor and vehicle specialist Armor Holdings, Inc. (NYSE:AH)
doubled its revenue in the first quarter (ended March 31, 2007)
reporting totao revenues of $889 million, 100% over last year's
Q1 ($445 million). The company recorded a $2.7 Billion Funded
Backlog as of March 31, 2007. Net income before deduction of
special bonuses was $50, compared to $41 in Q1/06. However,
a generous bonus implemented as CEO Warren B. Kanders
and President & Chief Operating Officer Robert R.
Schiller met the goals of their compensation plan's
goals reduced net income to $39 million. ($0.94 per diluted
share).
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payment did not hurt the bottom line though, as Earnings before
interest, taxes, depreciation and amortization ("EBITDA")
increased by 17% to $83 million versus $71 million in the Q1/06.
The company expects revenues of $3.4 billion to $3.6 billion
in FY 2007. Armor Holdings plans to invest up to $120 million
in the expansion of medium vehicle production capacity and implementation
of the U.S. Army Long Term Armor Strategy (LTAS) for the Family
of Medium Tactical Vehicle (FMTV) trucks and M1151/52 (up Armored
Humvee). Other expansion plans address ballistic materials manufacturing
capability and soldier equipment products.
Robert R. Schiller, President & COO credited the ongoing
demand for support for military vehicles as a major contributor
for the company’s booming sales. "Better than anticipated
sales and earnings were driven primarily by outperformance from
our ground vehicle armoring operations, which benefited from
the ongoing demand for armor components, supplemental equipment
and spare parts for the military tactical truck fleet. Additionally,
our OEM truck business continued to achieve targeted rates of
production, and we received significant awards in each product
category of our soldier equipment business." The company
is also diversifying its activities in the armor field, and
is now producing armor components for armored
Humvees, as well as supplemental armor kits, including the
motorized gunner
protection kits and armored doors.
On May 7th, 2007 Armor Holdings Inc. (NYSE:
AH) announced its agreement to be acquired by BAE Systems
Inc. a subsidiary of UK based BAE Systems plc. BAE will take
over the outstanding Armor Holdings shares in a one-step merger.
BAE will allocate $4.1 billion to buy Armor's common share at
$88 per share. The transaction is expected to close in the third
quarter, subject to approval by Armor shareholders.
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