Dulles, Virginia 2 November 2016 – Orbital ATK, Inc. (NYSE: OA), a global leader in aerospace and defense technologies, today announced that its Board of Directors has declared a quarterly cash dividend of $0.30 per share. The dividend will be payable December 1, 2016 to stockholders of record as of November 16, 2016.
Orbital ATK’s Board also authorized an expansion of the company’s stock repurchase program, increasing the aggregate amount of common stock that may be purchased under the program from the lesser of $250 million or 3.25 million shares to the lesser of $300 million or 4.0 million shares through the end of the first quarter of 2017. As part of its spinoff of Vista Outdoor on February 9, 2015, Orbital ATK is prohibited for two years from repurchasing its capital stock except under exceptions that have permitted the share repurchases to date. After February 9, 2017, the Board may, at its discretion, decide to expand and extend the share repurchase program for future periods.
“We are very pleased to announce that the Board has approved additional share repurchases through the first quarter of 2017 as we continue to execute our balanced capital deployment strategy that includes dividends, share repurchases, debt reduction and internal investments for future organic growth,” said David W. Thompson, Orbital ATK’s President and Chief Executive Officer.
Shares of common stock may be purchased in the open market, subject to compliance with applicable securities laws and regulations and the company’s debt covenants and other agreements, depending upon market conditions and other factors. The company currently repurchases shares through a pre-existing Rule 10b5-1 trading plan which expires in December 2016. There can be no assurance as to the amount or timing of any repurchases, including under the trading plan.
About Orbital ATK
Orbital ATK is a global leader in aerospace and defense technologies. The company designs, builds and delivers space, defense and aviation systems for customers aroundthe world, both as a prime contractor and merchant supplier. Its main products include launch vehicles and related propulsion systems; missile products, subsystems and defense electronics; precision weapons, armament systems and ammunition; satellites and associated space components and services; and advanced aerospace structures. Headquartered in Dulles, Virginia, Orbital ATK employs approximately 12,000 people in 18 states across the U.S. and in several international locations. For more information, visit www.orbitalatk.com.
“Safe Harbor” Statement Under the Private Securities Litigation Reform Act of 1995
Certain information discussed in this press release constitutes forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995, including expectations for share repurchases, dividends, internal investments and debt repayment. Forward-looking information is subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected. In particular, the amount and timing of our share repurchases in the open market is subject to risks and uncertainties. In addition, among other factors that may impact these forward-looking statements are decisions related to capital deployment which may be impacted by the company’s performance and the market price for the company’s common stock among other factors; the company’s previously announced restatement and any related matters; the potential inability to maintain and grow customer relationships; reductions or changes in U.S. Government military or NASA spending; timing of payments and budgetary policies; changes in cost and revenue estimates and/or timing of programs; the potential termination of U.S. Government contracts and the potential inability to recover termination costs; costs of servicing debt, including cash requirements and interest rate fluctuations; potential customer loss and business disruption; potential difficulties in retaining key employees; and the costs and ultimate outcome of litigation matters and other legal or regulatory proceedings, including in connection with the company’s restatement. Orbital ATK undertakes no obligation to update any forward-looking statements. For further information on factors that could impact Orbital ATK, and statements contained herein, please refer to the company’s most recent Annual Report on Form 10-K and any subsequent quarterly reports on Form 10-Q and current reports on Form 8-K filed with the U.S. Securities and Exchange Commission.
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