news · 2020. 7. 29. · [email protected] july 29, 2020 • diluted eps of $2.18 • net...

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11011 Sunset Hills Road Reston, Virginia 20190 www.gd.com News Contact: Jeff A. Davis Tel: 703 876 3483 [email protected] July 29, 2020 Diluted EPS of $2.18 Net earnings of $625 million on revenue of $9.3 billion Free cash flow conversion 100% 32 aircraft delivered despite pandemic-caused delivery challenges RESTON, Va. General Dynamics (NYSE: GD) today reported second-quarter 2020 net earnings of $625 million on revenue of $9.3 billion. Diluted earnings per share (EPS) were $2.18. We have continued to operate throughout the COVID-19 pandemic, meeting our customers’ needs while keeping our people as safe as possible,” said Phebe N. Novakovic, chairman and chief executive officer. “We are focused on the basics of early and aggressive cost management, performance and cash conversion as we manage through this period.” Aircraft deliveries The company delivered 32 aircraft during the quarter, up from 23 last quarter, despite continued pandemic-related challenges to making international deliveries. Cash Net cash provided by operating activities in the quarter totaled $843 million, $552 million better than the year-ago quarter. Free cash flow from operations, defined as net cash provided by operating activities less capital expenditures, was $622 million, 100% of net

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Page 1: News · 2020. 7. 29. · press@generaldynamics.com July 29, 2020 • Diluted EPS of $2.18 • Net earnings of $625 million on revenue of $9.3 billion • Free cash flow conversion

11011 Sunset Hills Road

Reston, Virginia 20190

www.gd.com

News

Contact: Jeff A. Davis Tel: 703 876 3483

[email protected]

July 29, 2020

• Diluted EPS of $2.18

• Net earnings of $625 million on revenue of $9.3 billion

• Free cash flow conversion 100%

• 32 aircraft delivered despite pandemic-caused delivery challenges

RESTON, Va. – General Dynamics (NYSE: GD) today reported second-quarter 2020 net

earnings of $625 million on revenue of $9.3 billion. Diluted earnings per share (EPS)

were $2.18.

“We have continued to operate throughout the COVID-19 pandemic, meeting our

customers’ needs while keeping our people as safe as possible,” said Phebe N.

Novakovic, chairman and chief executive officer. “We are focused on the basics of early

and aggressive cost management, performance and cash conversion as we manage

through this period.”

Aircraft deliveries

The company delivered 32 aircraft during the quarter, up from 23 last quarter, despite

continued pandemic-related challenges to making international deliveries.

Cash

Net cash provided by operating activities in the quarter totaled $843 million, $552 million

better than the year-ago quarter. Free cash flow from operations, defined as net cash

provided by operating activities less capital expenditures, was $622 million, 100% of net

Page 2: News · 2020. 7. 29. · press@generaldynamics.com July 29, 2020 • Diluted EPS of $2.18 • Net earnings of $625 million on revenue of $9.3 billion • Free cash flow conversion

earnings. The company ended the quarter with $2.3 billion of cash on hand, $1.6 billion

more than at the end of second-quarter 2019.

Backlog

Total backlog at the end of second-quarter 2020 was $82.7 billion, 22% higher than the

year-ago quarter. Estimated potential contract value, representing management’s

estimate of value in unfunded indefinite delivery, indefinite quantity (IDIQ) contracts and

unexercised options, was $49.6 billion. Total estimated contract value, the sum of all

backlog components, was $132.2 billion at the end of the quarter, approximately 30%

more than the year-ago quarter.

Significant awards in the quarter included a contract to construct the first two Columbia-

class submarines which will be worth $11.5 billion when funding is received from

Congress; $320 million to upgrade Stryker vehicles to the double-V-hull A1 configuration;

$215 million from the U.S. Army to produce Hydra-70 rockets; $175 million from the Army

for computing and communications equipment under the Common Hardware Systems-5

program; $160 million in separate contracts from the U.S. Navy to provide missile

components for the Aegis Ballistic Missile Defense program and gun systems for the F-

35 Joint Strike Fighter; $130 million from the Centers for Medicare and Medicaid Services

for several contracts, including support of the agency’s Healthcare Integrated General

Ledger Accounting System (HIGLAS) application; and $125 million for several key

contracts to provide intelligence services to classified customers.

About General Dynamics

Headquartered in Reston, Virginia, General Dynamics is a global aerospace and defense

company that offers a broad portfolio of products and services in business aviation;

combat vehicles, weapons systems and munitions; IT services; C4ISR solutions; and

shipbuilding and ship repair. General Dynamics employs approximately 100,000 people

worldwide and generated $39.4 billion in revenue in 2019. More information is available

at www.gd.com.

Page 3: News · 2020. 7. 29. · press@generaldynamics.com July 29, 2020 • Diluted EPS of $2.18 • Net earnings of $625 million on revenue of $9.3 billion • Free cash flow conversion

Certain statements made in this press release, including any statements as to future results of operations and financial

projections, may constitute “forward-looking statements” within the meaning of the Private Securities Litigation

Reform Act of 1995, as amended. Forward-looking statements are based on management’s expectations, estimates,

projections and assumptions. These statements are not guarantees of future performance and involve risks and

uncertainties that are difficult to predict. Therefore, actual future results and trends may differ materially from what

is forecast in forward-looking statements due to a variety of factors. Additional information regarding these factors is

contained in the company’s filings with the Securities and Exchange Commission, including, without limitation, its

Annual Report on Form 10-K, its Quarterly Reports on Form 10-Q and its Current Reports on Form 8-K. All

forward-looking statements speak only as of the date they were made. The company does not undertake any obligation

to update or publicly release any revisions to forward-looking statements to reflect events, circumstances or changes

in expectations after the date of this press release.

WEBCAST INFORMATION: General Dynamics will webcast its second-quarter 2020 financial results conference

call at 9 a.m. EDT on Wednesday, July 29, 2020. The webcast will be a listen-only audio event available at

www.gd.com. An on-demand replay of the webcast will be available one hour after the end of the call and end on

August 5, 2020. To hear a recording of the conference call by telephone, please call 1-877-344-7529 (international:

1-412-317-0088) passcode 10144907. Charts furnished to investors and securities analysts in connection with

General Dynamics’ announcement of its financial results are available at www.gd.com.

Page 4: News · 2020. 7. 29. · press@generaldynamics.com July 29, 2020 • Diluted EPS of $2.18 • Net earnings of $625 million on revenue of $9.3 billion • Free cash flow conversion

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Page 10: News · 2020. 7. 29. · press@generaldynamics.com July 29, 2020 • Diluted EPS of $2.18 • Net earnings of $625 million on revenue of $9.3 billion • Free cash flow conversion

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Page 11: News · 2020. 7. 29. · press@generaldynamics.com July 29, 2020 • Diluted EPS of $2.18 • Net earnings of $625 million on revenue of $9.3 billion • Free cash flow conversion

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Page 13: News · 2020. 7. 29. · press@generaldynamics.com July 29, 2020 • Diluted EPS of $2.18 • Net earnings of $625 million on revenue of $9.3 billion • Free cash flow conversion

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Page 14: News · 2020. 7. 29. · press@generaldynamics.com July 29, 2020 • Diluted EPS of $2.18 • Net earnings of $625 million on revenue of $9.3 billion • Free cash flow conversion

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Page 15: News · 2020. 7. 29. · press@generaldynamics.com July 29, 2020 • Diluted EPS of $2.18 • Net earnings of $625 million on revenue of $9.3 billion • Free cash flow conversion

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