Aerojet Rocketdyne Hldgs Inc Stock Price, News & Analysis

Aerojet Rocketdyne Holdings, Inc. (NYSE:AJRD) reported a Q2 2022 net sales of $528.5 million, down 5% from $556.9 million in Q2 2021. Net income fell to $16.4 million with an EPS of $0.20, down from $0.54. The company holds a robust backlog of $6.9 billion, over 3 times its annual sales, driven by multi-year contracts, including those for the Vulcan Centaur rocket. However, financial performance was impacted by supply chain disruptions, legal costs, and unfavorable contract adjustments, with a significant cash outflow of $120 million for the first half of 2022.

Aerojet Rocketdyne Holdings (NYSE: AJRD) will announce its second quarter 2022 earnings on August 1, 2022. The company will hold a conference call at 8:30 a.m. EDT to discuss the financial results. Key executives, including CEO Eileen P. Drake and CFO Dan Boehle, will present insights and answer questions. Investors can access the conference call and a subsequent on-demand replay through the company's investor relations webpage.

Aerojet Rocketdyne Holdings, Inc. (NYSE: AJRD) announced the redemption of its outstanding 2.25% Convertible Senior Notes due 2023, totaling approximately $145.9 million as of July 15, 2022. The redemption date is set for September 19, 2022, with a redemption price equal to 100% of the principal amount plus accrued interest. Note holders can convert their notes to shares at a rate of 38.4615 shares per $1,000 principal, equivalent to a $26 conversion price. Cash Settlement will be used for conversions. Further details can be obtained from The Bank of New York Mellon Trust Company.

Aerojet Rocketdyne Holdings, Inc. (NYSE: AJRD) announced a new board of directors elected during a special shareholder meeting on June 30, 2022. The board now includes CEO Eileen P. Drake and several experienced directors, including Gen. Kevin Chilton and Maj. Gen. Charles Bolden. The company emphasized its role in national defense and space exploration, with a record backlog of $6.4 billion as of March 31, 2022. This includes $2.4 billion expected to convert to revenue in the next year, reflecting substantial growth potential and shareholder value creation opportunities.

Aerojet Rocketdyne (NYSE: AJRD) announced that its shareholders have elected the entire Independent Slate board, which includes CEO Eileen Drake, receiving over 75% of votes cast. Drake led with more than 83% support among individual nominees. The new board comprises experienced directors aimed at enhancing shareholder value. Acknowledging the proxy fight's challenges, Drake emphasized a focus on value creation and continued engagement with shareholders. Further details will be shared in a Form 8-K filing and on the company's investor website.

Aerojet Rocketdyne Executive Chairman Warren Lichtenstein, representing 5.6% of shares, calls for shareholder support for his board nominee slate ahead of the June 30, 2022 special meeting. Lichtenstein criticizes current CEO Eileen Drake for financial mismanagement and lack of a strategic plan, warning of significant value loss if her slate wins. He advocates for his team's plan to enhance the company’s value, targeting $65 per share within three years. Shareholders are urged to vote using the green proxy card.

Eileen Drake, CEO of Aerojet Rocketdyne (AJRD), issued a statement in response to ISS recommending shareholders support her Independent Slate amid Warren Lichtenstein's proxy contest. Drake criticized Lichtenstein for his alleged mischaracterizations and lack of transparency, urging him to cease his aggressive tactics. The ISS report indicated concerns over Lichtenstein’s conduct and independence, emphasizing the need for shareholder support towards Drake's team for a stable leadership direction. A special meeting for shareholders is scheduled for June 30, 2022.

Aerojet Rocketdyne's Executive Chairman, Warren Lichtenstein, criticized a recent report from Institutional Shareholder Services (ISS) for its lack of substantive analysis regarding the company's board candidates and strategic plans. Lichtenstein is urging shareholders to vote for his slate of eight candidates, claiming they possess the necessary qualifications and a plan for value creation, while accusing Eileen Drake's slate of failing to provide transparency and accountability in addressing the company's declining performance. Lichtenstein's group represents approximately 5.6% of shares.