Delaware
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001-34460
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13-3818604
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(State or Other Jurisdiction of
Incorporation)
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(Commission
File Number)
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(I.R.S. Employer
Identification Number)
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Exhibit
No.
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Exhibit Description
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2.1#
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10.1
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99.1
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99.2
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Kratos Defense & Security Solutions, Inc
.
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Date: June 12, 2018
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By:
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/s/ Deanna H. Lund
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Name:
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Deanna H. Lund
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Title:
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Executive Vice President and Chief Financial Officer
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5.
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Ratification, Further Assurances and Representations and Warranties.
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1.
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Miscellaneous
.
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Press Contact:
Yolanda White
858-812-7302 Direct
Investor Information:
877-934-4687
investor@kratosdefense.com
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FOR IMMEDIATE RELEASE
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||||||||
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Historical
|
|
Pro Forma Adjustments
|
|
Pro Forma
|
||||||||||
|
|
|
|
(a)
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|
|
|
|
||||||||
Service revenues
|
|
$
|
346.4
|
|
|
$
|
(149.8
|
)
|
|
$
|
1.2
|
|
(c)
|
$
|
197.8
|
|
Product sales
|
|
405.5
|
|
|
—
|
|
|
—
|
|
|
405.5
|
|
||||
Total revenues
|
|
751.9
|
|
|
(149.8
|
)
|
|
1.2
|
|
|
603.3
|
|
||||
Cost of service revenue
|
|
247.5
|
|
|
(110.1
|
)
|
|
1.2
|
|
(c)
|
138.6
|
|
||||
Cost of product sales
|
|
307.1
|
|
|
—
|
|
|
—
|
|
|
307.1
|
|
||||
Total costs
|
|
554.6
|
|
|
(110.1
|
)
|
|
1.2
|
|
|
445.7
|
|
||||
Gross profit
|
|
197.3
|
|
|
(39.7
|
)
|
|
—
|
|
|
157.6
|
|
||||
Selling, general and administrative expenses
|
|
160.6
|
|
|
(33.5
|
)
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|
0.2
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|
(d)
|
127.3
|
|
||||
Merger and acquisition expenses
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Research and development expenses
|
|
17.8
|
|
|
—
|
|
|
—
|
|
|
17.8
|
|
||||
Impairment of goodwill
|
|
24.2
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|
|
—
|
|
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—
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|
|
24.2
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|
||||
Unused office space and other restructuring
|
|
0.5
|
|
|
—
|
|
|
(0.2
|
)
|
(d)
|
0.3
|
|
||||
Operating income (loss) from continuing operations
|
|
(5.8
|
)
|
|
(6.2
|
)
|
|
—
|
|
|
(12.0
|
)
|
||||
Other income (expense):
|
|
|
|
|
|
|
|
|
||||||||
Interest expense, net
|
|
(28.6
|
)
|
|
—
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|
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—
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|
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(28.6
|
)
|
||||
Loss on extinguishment of debt
|
|
(17.3
|
)
|
|
—
|
|
|
—
|
|
|
(17.3
|
)
|
||||
Other income, net
|
|
0.9
|
|
|
(0.1
|
)
|
|
—
|
|
|
0.8
|
|
||||
Total other expense, net
|
|
(45.0
|
)
|
|
(0.1
|
)
|
|
—
|
|
|
(45.1
|
)
|
||||
Income (loss) from continuing operations before income taxes
|
|
(50.8
|
)
|
|
(6.3
|
)
|
|
—
|
|
|
(57.1
|
)
|
||||
Provision (benefit) for income taxes from continuing operations
|
|
(8.2
|
)
|
|
—
|
|
|
2.0
|
|
(b)
|
(10.2
|
)
|
||||
Income (loss) from continuing operations
|
|
$
|
(42.6
|
)
|
|
$
|
(6.3
|
)
|
|
$
|
2.0
|
|
|
$
|
(46.9
|
)
|
|
|
|
|
|
|
|
|
|
||||||||
Basic income (loss) per common share:
|
|
|
|
|
|
|
|
|
||||||||
Income (loss) from continuing operations
|
|
$
|
(0.48
|
)
|
|
|
|
|
|
$
|
(0.52
|
)
|
||||
Diluted income (loss) per common share:
|
|
|
|
|
|
|
|
|
||||||||
Income (loss) from continuing operations
|
|
$
|
(0.48
|
)
|
|
|
|
|
|
$
|
(0.52
|
)
|
||||
Weighted average common shares outstanding:
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
|
89.5
|
|
|
|
|
|
|
89.5
|
|
||||||
Diluted
|
|
89.5
|
|
|
|
|
|
|
89.5
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
Historical
|
|
Pro Forma Adjustments
|
|
Pro Forma
|
||||||||||
|
|
|
|
(a)
|
|
|
|
|
||||||||
Service revenues
|
|
$
|
348.1
|
|
|
$
|
(127.1
|
)
|
|
$
|
0.3
|
|
(c)
|
$
|
221.3
|
|
Product sales
|
|
320.6
|
|
|
—
|
|
|
—
|
|
|
320.6
|
|
||||
Total revenues
|
|
668.7
|
|
|
(127.1
|
)
|
|
0.3
|
|
|
541.9
|
|
||||
Cost of service revenue
|
|
255.8
|
|
|
(94.0
|
)
|
|
0.3
|
|
(c)
|
162.1
|
|
||||
Cost of product sales
|
|
259.3
|
|
|
—
|
|
|
—
|
|
|
259.3
|
|
||||
Total costs
|
|
515.1
|
|
|
(94.0
|
)
|
|
0.3
|
|
|
421.4
|
|
||||
Gross profit
|
|
153.6
|
|
|
(33.1
|
)
|
|
—
|
|
|
120.5
|
|
||||
Selling, general and administrative expenses
|
|
146.3
|
|
|
(33.7
|
)
|
|
2.0
|
|
(d)
|
114.6
|
|
||||
Merger and acquisition expenses
|
|
1.9
|
|
|
—
|
|
|
(1.9
|
)
|
(d)
|
—
|
|
||||
Research and development expenses
|
|
13.9
|
|
|
—
|
|
|
—
|
|
|
13.9
|
|
||||
Unused office space and other restructuring
|
|
10.1
|
|
|
—
|
|
|
(0.1
|
)
|
(d)
|
10.0
|
|
||||
Operating income (loss) from continuing operations
|
|
(18.6
|
)
|
|
0.6
|
|
|
—
|
|
|
(18.0
|
)
|
||||
Other expense:
|
|
|
|
|
|
|
|
|
||||||||
Interest expense, net
|
|
(34.7
|
)
|
|
—
|
|
|
—
|
|
|
(34.7
|
)
|
||||
Loss on extinguishment of debt
|
|
0.2
|
|
|
—
|
|
|
—
|
|
|
0.2
|
|
||||
Other income, net
|
|
0.8
|
|
|
(0.1
|
)
|
|
—
|
|
|
0.7
|
|
||||
Total other expense, net
|
|
(33.7
|
)
|
|
(0.1
|
)
|
|
—
|
|
|
(33.8
|
)
|
||||
Income (loss) from continuing operations before income taxes
|
|
(52.3
|
)
|
|
0.5
|
|
|
—
|
|
|
(51.8
|
)
|
||||
Provision (benefit) for income taxes from continuing operations
|
|
8.1
|
|
|
—
|
|
|
2.3
|
|
(b)
|
5.8
|
|
||||
Income (loss) from continuing operations
|
|
$
|
(60.4
|
)
|
|
$
|
0.5
|
|
|
$
|
2.3
|
|
|
$
|
(57.6
|
)
|
|
|
|
|
|
|
|
|
|
||||||||
Basic income (loss) per common share:
|
|
|
|
|
|
|
|
|
||||||||
Income (loss) from continuing operations
|
|
$
|
(0.99
|
)
|
|
|
|
|
|
$
|
(0.94
|
)
|
||||
Diluted income (loss) per common share:
|
|
|
|
|
|
|
|
|
||||||||
Income (loss) from continuing operations
|
|
$
|
(0.99
|
)
|
|
|
|
|
|
$
|
(0.94
|
)
|
||||
Weighted average common shares outstanding:
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
|
61.3
|
|
|
|
|
|
|
61.3
|
|
||||||
Diluted
|
|
61.3
|
|
|
|
|
|
|
61.3
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
Historical
|
|
Pro Forma Adjustments
|
|
Pro Forma
|
||||||||||
|
|
|
|
(a)
|
|
|
|
|
||||||||
Service revenues
|
|
$
|
354.2
|
|
|
$
|
(144.7
|
)
|
|
$
|
0.1
|
|
(c)
|
$
|
209.6
|
|
Product sales
|
|
302.9
|
|
|
—
|
|
|
—
|
|
|
302.9
|
|
||||
Total revenues
|
|
657.1
|
|
|
(144.7
|
)
|
|
0.1
|
|
|
512.5
|
|
||||
Cost of service revenue
|
|
266.5
|
|
|
(107.1
|
)
|
|
0.1
|
|
(c)
|
159.5
|
|
||||
Cost of product sales
|
|
228.8
|
|
|
—
|
|
|
—
|
|
|
228.8
|
|
||||
Total costs
|
|
495.3
|
|
|
(107.1
|
)
|
|
0.1
|
|
|
388.3
|
|
||||
Gross profit
|
|
161.8
|
|
|
(37.6
|
)
|
|
—
|
|
|
124.2
|
|
||||
Selling, general and administrative expenses
|
|
150.7
|
|
|
(32.5
|
)
|
|
—
|
|
|
118.2
|
|
||||
Merger and acquisition expenses
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
||||
Research and development expenses
|
|
16.2
|
|
|
—
|
|
|
—
|
|
|
16.2
|
|
||||
Unused office space and other restructuring
|
|
(0.7
|
)
|
|
—
|
|
|
—
|
|
|
(0.7
|
)
|
||||
Operating income (loss) from continuing operations
|
|
(4.5
|
)
|
|
(5.1
|
)
|
|
—
|
|
|
(9.6
|
)
|
||||
Other expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest expense, net
|
|
(36.0
|
)
|
|
—
|
|
|
—
|
|
|
(36.0
|
)
|
||||
Loss on extinguishment of debt
|
|
(3.4
|
)
|
|
—
|
|
|
—
|
|
|
(3.4
|
)
|
||||
Other income, net
|
|
(0.7
|
)
|
|
0.1
|
|
|
—
|
|
|
(0.6
|
)
|
||||
Total other expense, net
|
|
(40.1
|
)
|
|
0.1
|
|
|
—
|
|
|
(40.0
|
)
|
||||
Income (loss) from continuing operations before income taxes
|
|
(44.6
|
)
|
|
(5.0
|
)
|
|
—
|
|
|
(49.6
|
)
|
||||
Provision (benefit) for income taxes from continuing operations
|
|
(11.4
|
)
|
|
—
|
|
|
2.4
|
|
(b)
|
(13.8
|
)
|
||||
Income (loss) from continuing operations
|
|
$
|
(33.2
|
)
|
|
$
|
(5.0
|
)
|
|
$
|
2.4
|
|
|
$
|
(35.8
|
)
|
|
|
|
|
|
|
|
|
|
||||||||
Basic income (loss) per common share:
|
|
|
|
|
|
|
|
|
||||||||
Income (loss) from continuing operations
|
|
$
|
(0.56
|
)
|
|
|
|
|
|
$
|
(0.61
|
)
|
||||
Diluted income (loss) per common share:
|
|
|
|
|
|
|
|
|
||||||||
Income (loss) from continuing operations
|
|
$
|
(0.56
|
)
|
|
|
|
|
|
$
|
(0.61
|
)
|
||||
Weighted average common shares outstanding:
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
|
58.7
|
|
|
|
|
|
|
58.7
|
|
||||||
Diluted
|
|
58.7
|
|
|
|
|
|
|
58.7
|
|