Force Protection Inc. - Conference Presentation Calls

Force Protection Inc. reported consolidated unaudited financial results for the third quarter and nine months ended Sept. 30, 2009. The company's net income was $3.2 million, or $0.05 per diluted share compared to net income of $19.9 million, or $0.29 per diluted share, for the third quarter of 2008. In the third quarter of 2009, the company reported net sales of $316.2 million versus $343.3 million in the third quarter of 2008. The company's adjusted net income for the third quarter 2009 was $16.1 million, and adjusted net income per share was $0.23. Adjusted net income and adjusted net income per share reflect the exclusion of the one-time charge related to the company's previous decision to build 50 Cheetah vehicles in anticipation of a contract award. Operating income was $3.101 million against $31.654 million for the same period a year ago. Income before income tax was $3.307 million against $32.092 million for the same period a year ago. For the first nine months of 2009, the company reported net income of $11.0 million, or $0.16 per diluted share, on sales of $688.0 million. During the comparable period in fiscal 2008, net income was $35.2 million, or $0.51 per diluted share, on sales of $1,087.3 million. The company's adjusted net income for the first nine months of 2009 was $23.9 million, and adjusted net income per share was $0.35 cents. The $399.3 million decrease in sales during the first nine months of fiscal 2009 is largely attributable to lower vehicle sales, including the $446.6 million of vehicles sold by General Dynamics Land Systems in the first nine months of 2008 on a pass through basis, which had minimal associated gross margins. The change in net income per share is primarily attributed to the impact on income of lower vehicle sales and the costs and charges associated with the M-ATV competition. Operating activity provided net cash of $21.9 million in the first nine months of 2009 compared with operating activity used net cash of $1.3 million in the first nine months of 2008. Operating income was $15.196 million against $55.287 million for the same period a year ago. Income before income tax was $15.174 million against $56.473 million for the same period a year ago.

Force Protection Inc., Q3 2009 Earnings Call, Nov-09 2009