UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported): May 11, 2007 (May 11, 2007)
DRS TECHNOLOGIES, INC.
(Exact name of registrant as specified in its charter)
Delaware 1-08533 13-2632319
(State or other jurisdiction of (Commission (IRS Employer
incorporation or organization) File Number) Identification Number)
5 Sylvan Way, Parsippany, New Jersey 07054
(Address of principal executive offices)
(973) 898-1500
(Registrant's telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:
[_] Written communications pursuant to Rule 425 under the Securities Act (17
CFR 230.425)
[_] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
[_] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[_] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION
On May 11, 2007, DRS Technologies, Inc. announced financial results for the
fiscal 2007 fourth quarter and full year ended March 31, 2007. The press release
is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is
incorporated herein by reference.
The press release includes the non-GAAP financial measures "EBITDA" and
"free cash flow." We reference these non-GAAP financial measures frequently in
our decision-making because it provides supplemental information that
facilitates internal comparisons to historical operating performance of prior
periods and external comparisons to competitors' historical operating
performance. We define EBITDA as net earnings before net interest and related
expenses (primarily the amortization and write-off of debt premium and issuance
costs), income taxes, depreciation and amortization. EBITDA is presented as
additional information because we believe it to be a useful indicator of an
entity's debt capacity and its ability to service its debt. EBITDA is not a
substitute for operating income, net earnings or cash flows provided by
operating activities, as determined in accordance with generally accepted
accounting principles (GAAP). EBITDA is not a complete cash flow measure because
EBITDA is a measure of liquidity that does not include reductions for cash
payments for an entity's obligation to service its debt, fund its working
capital, business acquisitions and capital expenditures, and pay its income
taxes. Rather, EBITDA is one potential indicator of an entity's ability to fund
these cash requirements. EBITDA also is not a complete measure of an entity's
profitability because it does not include costs and expenses for depreciation
and amortization, interest and related expenses, and income taxes. We disclose
free cash flow because we believe that it is a measurement of cash flow
generated that is available for investing and financing activities. Free cash
flow is defined as net cash provided by operating activities less capital
expenditures. We believe that the most directly comparable GAAP financial
measure to free cash flow is net cash provided by operating activities. Free
cash flow represents cash generated after paying for interest on borrowings,
income taxes, capital expenditures and changes in working capital, but before
repaying outstanding debt, investing cash to acquire businesses and making other
strategic investments. Thus, key assumptions underlying free cash flow are that
the Company will be able to refinance its existing debt when it matures with new
debt and that the Company will be able to finance any new acquisitions it makes
by raising new debt or equity capital.
The information furnished pursuant to this Current Report on Form 8-K
shall be considered to be "filed" under the Securities Exchange Act of 1934, as
amended (other than information under the headings "New Contract Awards and
Backlog" and "Outlook," and information related to organic revenue growth and
projections regarding future performance).
ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits
The following press release is included as an exhibit to this report:
Exhibit No. Description
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99.1 DRS Technologies, Inc. Press Release
(including financial tables) dated May 11, 2007.
DRS TECHNOLOGIES, INC.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
DRS TECHNOLOGIES, INC.
(Registrant)
Date: May 11, 2007 By:/s/ RICHARD A. SCHNEIDER
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Richard A. Schneider
Executive Vice President, Chief Financial Officer
INDEX TO EXHIBITS
Exhibit No. Description
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99.1 DRS Technologies, Inc. Press Release
(including financial tables) dated May 11, 2007.