All the accounts of Leonardo Drs (and what Profumo will do with the listing)
How are the accounts of Drs, Leonardo's US subsidiary that works for the Pentagon, which Leonardo will list with a minority stake
Last Friday, after the close of the stock exchange, Leonardo announced that its subsidiary Leonardo Drs "filed the registration document" on the "S-1" prospectus with the Sec, "relating to an initial public offering of a share of minority of its ordinary shares ". All the shares will be placed by Leonardo Us Holding, a company of which Leonardo is the sole shareholder. The shares to be placed and the price range of the placement have not yet been determined ».
TIMES
"The completion of the transaction is expected by the end of March 2021", the company specifies.
THE ADVISORS
It has been made official that Goldman Sachs, BofA and Jp Morgan will be lead book-running managers and Barclays, Citigroup, Credit Suisse and Morgan Stanley will act as book-running managers of the offering. Mediobanca will be Leonardo's financial advisor.
WHAT LEONARDO WILL DO WITH DRS
Il Sole 24 Ore wrote: “The entire Drs could be valued at more than three billion euros. Leonardo could collect over a billion. It will be able to reduce the debt, estimated in the "guidance" at at least 3.3 billion at the end of 2020, but it could be higher. Leonardo also evaluates possible acquisitions. From the placement Leonardo will also derive a nice capital gain. The carrying amount of Drs is not indicated in the group's financial statements. Leonardo Us Holding has a book value of 1,944 million euros at the end of 2019 ″.
WHEN LEONARDO PURCHASED DRS
In October 2008, the former Finmeccanica acquired for 3.4 billion euros the company Drs Technologies, a company specialized in the sector of services and integrated electronic products for defense founded in 1968. At the moment Leonardo Drs is the largest subsidiary of Leonardo in the United States with about 2 billion dollars in revenue (as stated on the website ) and 6 thousand employees.
WHAT DOES DRS
Drs produces cutting-edge devices and software for military forces and spy agencies.
THE TOP OF DRS
William J. Lynn III is the CEO of Leonardo Drs, John Baylouny holds the role of executive vice president, Chief Operating Officer and Michael Dippold that of executive vice president, Chief Financial Officer.
THE 2020 ACCOUNTS OF DRS
The 2020 consolidated financial statements of Drs declares – wrote Gianni Dragoni del Sole 24 Ore last Saturday – an increase in revenues from 2,714 to 2,778 million dollars, operating profit from 163 to 181 million and net profit from 75 to 85 million . Shareholders' equity is 1,427 million. Drs has an order book of 3,291 million.
THE RESULTS OF DRS IN THE 9 MONTHS OF 2020
In the nine months of 2020, Leonardo Drs completed orders for € 2.262 billion, marking an increase of 12.8% compared to the € 2.005 billion of the same period of 2019. Revenues stood at € 1.719 billion, up by 6.4% compared to the 1.616 billion in the nine months of 2019. The EBITA was equal to 101 million euros, down by 1.9% compared to the 103 million euros of the same period of 2019. The Ros is increased to 5.9% compared to 6.4% in the nine months of 2019.
THE WEIGHT OF DRS IN THE ACCOUNTS OF LEONARDO SPA
Leonardo Drs orders represented 26.58% of the total orders placed by Leonardo Spa in the first nine months of 2020 (8.51 billion euros), revenues 19% of the total turnover of the group (9.025 billion euros ) and EBITA 20.32% (497 million euros).
DRS DATA IN 2019
In 2019, Leonardo Drs completed orders for € 2.611 billion, marking an increase of 7.1% compared to the € 2.438 billion of 2018. Revenues amounted to € 2.438 billion, up 23.1% compared to to 1.98 billion in 2018. EBITA was 186 million euros, an increase of 45.3% compared to 128 million euros in 2018. Ros went up to 7.6% compared to 6.5 % of 2018.
Leonardo Drs orders represented 18.51% of the total orders placed by Leonardo Spa in 2019 (14.105 billion euros), revenues 17.68% of the total turnover of the group (13.784 billion euros) and EBITA 14.86% (1.251 billion euros).
THE LATEST ORDERS
Among the main acquisitions of the period for Leonardo DRS, we note the further orders for the production of the new generation computer systems, called Mounted Family of Computer Systems (MFoCS) for the mission commands of the US Army worth 206 million dollars and the order for the supply of propulsion equipment, panels and controls for the ships CVN 80 and CVN 81 for the United States Navy, confirming the good commercial performance recorded in the same period of the previous year.
PROXY MATTER
"A new proxy agreement will enter into force with the US Department of Defense to allow Leonardo Drs to continue to compete and work on classified programs," said Leonardo. According to the proxy, Drs is shielded from interference by the Italian shareholder. At least five proxy holders, equivalent to directors, are appointed by Leonardo Us, after consultation with Leonardo in Italy. "They must be American, independent from the Italian group and subject to the approval of the US Defense Department," commented Il Sole 24 Ore . Leonardo's balance sheet explains that "their business is conducted in the interest of the shareholders and in line with the needs of US national security". “In short, the owner of DRS is in fact the Pentagon, Leonardo is similar to a financial investor – explained Gianni Dragoni of Sole 24 Ore – It wasn't like that when the company was bought in 2008 by Pier Francesco Guarguaglini. Finmeccanica paid 2.37 billion euros and took on just over 1.2 billion in net financial debt. The 'proxy' was limited to one third of the activity. In the management of Giuseppe Orsi, who appointed Lynn, the "proxy" has been extended to 100 percent ".
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/innovazione/tutti-i-conti-di-leonardo-drs-e-cosa-fara-profumo/ on Sun, 28 Feb 2021 17:50:03 +0000.