Investing to Create Long Term, Sustainable Quality Growth
Increasing Top Line Guidance
Third Quarter revenue of $1.3 billion
Adjusted Diluted Earnings per Share of $0.36
Quarterly dividend increased by 18 percent to $0.13 per share,
payable on February 27, 2015
Company Website:
http://www.boozallen.com
MCLEAN, Va. -- (Business Wire)
Booz Allen Hamilton Holding Corporation (NYSE:BAH), the parent company
of management and technology consulting firm Booz Allen Hamilton, Inc.,
today announced preliminary results for the third quarter of fiscal
2015. The Company saw improvements in revenue and profitability compared
to the prior year period, along with solid award activity and a
seasonally strong Book-to-Bill ratio with an increase in funded and
unfunded backlog at December 31, 2014. The Company also continued to
invest in technological innovation and new markets which is expected to
create sustainable quality growth over the long term. Booz Allen’s
fiscal year runs from April 1 to March 31, with the third quarter of
fiscal 2015 ending December 31, 2014.
During the third quarter, revenue increased 2.5 percent, driven by an
improved federal government spending environment as compared to the
prior year period, which was impacted by a 16-day government shutdown.
Adjusting for the estimated impact of the government shutdown, revenue
was roughly flat with the prior year period. Revenue for the third
quarter of fiscal 2015 was $1.30 billion, compared with $1.27 billion in
the prior year period. Adjusted EBITDA was $120.4 million in the third
quarter of fiscal 2015, compared to $115.0 million in the prior year
period. Adjusted Net Income was $54.2 million, compared to $49.5 million
in the prior year period, while Adjusted Diluted Earnings per Share was
$0.36 compared to $0.33.
The Company authorized and declared an 18 percent increase in its
regular quarterly dividend, which is now $0.13 per share, payable on
February 27, 2015, to stockholders of record on February 10, 2015. The
Company also approved an increase to its share repurchase authorization
from $30 million to $180 million.
“We have an outstanding team that continues to execute very well,
consistent with our long term strategy,” said Horacio Rozanski, Booz
Allen’s President and Chief Executive Officer. “Our financial and
operational performance in the third quarter of fiscal 2015 was strong,
with revenue growth and continued margin improvement when compared to
the challenging quarter of a year ago. We saw solid growth in funded and
unfunded backlog, which reflects a nascent recovery in the government
contracting environment, along with a one-percent sequential increase in
consulting staff headcount.
“Looking forward, our focus remains on investing in our Vision 2020
growth platforms, which we believe will create sustainable quality
growth. We are seeing encouraging results from our investments in
engineering, systems delivery, cyber, data analytics, and our innovation
agenda, as well as in the commercial and international markets. Building
these capabilities and serving as an essential partner to clients are
central to the long-term growth and further margin expansion that will
propel us into our second century,” Rozanski said.
Financial Review
Third Quarter 2015 – Below is a summary of Booz Allen’s
results for the fiscal 2015 third quarter and the key factors driving
those results:
-
Booz Allen’s increase in revenue in the third quarter of fiscal 2015
reflected the return of a more normalized pace of contract awards in
comparison to the prior year period. The 2.5 percent increase compared
with the prior year period resulted from improved staff billability
and an increase in billable expenses largely due to declines in those
factors in the prior year period due to the effects of the government
shutdown.
-
In the third quarter of fiscal 2015, Operating Income increased to
$105.3 million from $97.0 million in the prior year period, and
Adjusted Operating Income increased to $106.3 million from $99.1
million in the prior year period. The increases were attributable to
an increase in revenue from fixed price contracts in the quarter, to
overall revenue improvements, volume based reductions in compensation
costs and related fringe benefits, and to a lesser extent a decrease
in depreciation and amortization expense. These improvements in
operating income were partially offset by an increase in indirect
spending in support of an increased level of bid and proposal activity
and continued investments in our growth platforms and expansion in the
commercial and international markets. Adjusted EBITDA increased to
$120.4 million from $115.0 million in the prior year period and was
impacted by the same factors as Adjusted Operating Income.
-
In the third quarter of fiscal 2015, Net Income increased to $52.8
million from $47.2 million in the prior year period. Adjusted Net
Income increased to $54.2 million from $49.5 million in the prior year
period. These increases in earnings compared to the prior year period
were largely the result of the factors affecting Operating Income and
Adjusted Operating Income.
-
In the third quarter of fiscal 2015, diluted EPS increased to $0.35
from $0.31 in the prior year period; Adjusted Diluted EPS increased to
$0.36 per share as compared to $0.33 in the prior year period. The per
share earnings results were driven by the same factors as Net Income
and Adjusted Net Income.
Funded backlog as of December 31, 2014, was $2.67 billion, compared with
$2.50 billion as of December 31, 2013, an increase of 7.0 percent.
Unfunded backlog at the close of the quarter was $2.67 billion, compared
to $2.64 billion in the prior period, an increase of 1.4 percent. Booz
Allen’s total backlog, as of December 31, 2014, was $10.1 billion,
compared with $10.4 billion as of December 31, 2013, reflecting a
decline in priced options.
Nine Months Ended December 31, 2014 – Booz Allen’s
cumulative performance for the three quarters of fiscal 2015 has
resulted in:
-
Revenue of $3.93 billion for the nine months ended December 31, 2014,
compared with $4.08 billion for the prior year period, a decrease of
3.6 percent;
-
Net income for the nine months ended December 31, 2014 of $189.2
million, compared with $185.3 million for the prior year period;
-
Adjusted Net Income for the nine months ended December 31, 2014 of
$195.5 million compared with $192.8 million in the prior year period;
-
Adjusted EBITDA for the nine months ended December 31, 2014, of $415.5
million compared with $426.8 million for the prior year period; and
-
Diluted EPS and Adjusted Diluted EPS for the nine months ended
December 31, 2014 of $1.24 and $1.30, respectively remained consistent
as compared to the prior year period.
Net cash provided by operating activities for the first three quarters
of fiscal 2015 was $228.1 million compared with $292.3 million in the
prior year period. Free cash flow for the first three quarters of fiscal
2015 was $210.6 million, compared with $280.0 million in the prior year
period. Although collections were strong as reflected in the decrease in
Days Sales Outstanding, the volume of collections was down due to a
decrease in revenue.
Financial Outlook
For fiscal year 2015, we are increasing our full year top line guidance
and narrowing full year bottom line guidance. We now expect a low-single
digit percentage revenue decline. At the bottom line we are forecasting
our diluted EPS to be in the range of $1.52 to $1.56 per share, and
Adjusted Diluted EPS to be in the range of $1.58 to $1.62 per share,
reflecting an increase of 2 cents at the mid-point of both ranges.
These EPS estimates are based on fiscal year 2015 estimated average
diluted shares outstanding of approximately 150.1 million shares, and an
approximate 39.4 percent effective tax rate, which reflects our
qualification for certain federal tax credits.
Conference Call Information
Booz Allen Hamilton will host a conference call at 8 a.m. EDT on
Wednesday, January 28, 2015 to discuss the financial results for its
Third Quarter of Fiscal Year 2015 (ended December 31, 2014).
Analysts and institutional investors may participate on the call by
dialing (877) 375-9141 International: (253) 237-1151. The conference
call will be webcast simultaneously to the public through a link on the
investor relations section of the Booz Allen Hamilton web site at investors.boozallen.com.
A replay of the conference call will be available online at investors.boozallen.com
beginning at 11 a.m. EST on January 28, 2015, and continuing for 30 days.
About Booz Allen Hamilton
Booz Allen Hamilton is a leading provider of management consulting,
technology, and engineering services to the U.S. government in defense,
intelligence, and civil markets, and to major corporations,
institutions, and not-for-profit organizations. Booz Allen is
headquartered in McLean, Virginia, employs more than 22,000 people, and
had revenue of $5.48 billion for the 12 months ended March 31, 2014.
BAHPR-FI
Non-GAAP Financial Information
“Adjusted Operating Income” represents Operating Income before (i)
certain stock option-based and other equity-based compensation expenses,
(ii) adjustments related to the amortization of intangible assets, and
(iii) any extraordinary, unusual, or non-recurring items. Booz Allen
prepares Adjusted Operating Income to eliminate the impact of items it
does not consider indicative of ongoing operating performance due to
their inherent unusual, extraordinary or non-recurring nature or because
they result from an event of a similar nature.
“Adjusted EBITDA” represents net income before income taxes, net
interest and other expense and depreciation and amortization and before
certain other items, including: (i) certain stock option-based and other
equity-based compensation expenses, (ii) transaction costs, fees,
losses, and expenses, including fees associated with debt prepayments,
and (iii) any extraordinary, unusual or non-recurring items. Booz Allen
prepares Adjusted EBITDA to eliminate the impact of items it does not
consider indicative of ongoing operating performance due to their
inherent unusual, extraordinary or non-recurring nature or because they
result from an event of a similar nature.
“Adjusted Net Income” represents net income before: (i) certain stock
option-based and other equity-based compensation expenses, (ii)
transaction costs, fees, losses, and expenses, including fees associated
with debt prepayments, (iii) adjustments related to the amortization of
intangible assets, (iv) amortization or write-off of debt issuance costs
and write-off of original issue discount and (v) any extraordinary,
unusual or non-recurring items, in each case net of the tax effect
calculated using an assumed effective tax rate. Booz Allen prepares
Adjusted Net Income to eliminate the impact of items, net of taxes, it
does not consider indicative of ongoing operating performance due to
their inherent unusual, extraordinary or non-recurring nature or because
they result from an event of a similar nature.
“Adjusted Diluted EPS” represents diluted EPS calculated using Adjusted
Net Income as opposed to Net Income. Additionally, Adjusted Diluted EPS
does not contemplate any adjustments to net income as required under the
two-class method of calculating EPS as required in accordance with GAAP.
“Free Cash Flow” represents the net cash generated from operating
activities less the impact of purchases of property and equipment.
Booz Allen utilizes and discusses in this release Adjusted Operating
Income, Adjusted EBITDA, Adjusted Net Income, and Adjusted Diluted EPS
because management uses these measures for business planning purposes,
including managing its business against internal projected results of
operations and measuring its performance. Management views Adjusted
Operating Income, Adjusted EBITDA, Adjusted Net Income, and Adjusted
Diluted EPS as measures of the core operating business, which exclude
the impact of the items detailed in the supplemental exhibits, as these
items are generally not operational in nature. These supplemental
performance measures also provide another basis for comparing period to
period results by excluding potential differences caused by
non-operational and unusual or non-recurring items. Booz Allen also
utilizes and discusses Free Cash Flow in this release because management
uses this measure for business planning purposes, measuring the cash
generating ability of the operating business and measuring liquidity
generally. Booz Allen presents these supplemental measures because it
believes that these measures provide investors and securities analysts
with important supplemental information with which to evaluate Booz
Allen’s performance, long term earnings potential, or liquidity, as
applicable, and to enable them to assess Booz Allen’s performance on the
same basis as management. These supplemental performance measurements
may vary from and may not be comparable to similarly titled measures by
other companies in Booz Allen’s industry. Adjusted Operating Income,
Adjusted EBITDA, Adjusted Net Income, Adjusted Diluted EPS, and Free
Cash Flow are not recognized measurements under GAAP and when analyzing
Booz Allen’s performance or liquidity, as applicable, investors should
(i) evaluate each adjustment in our reconciliation of Operating and Net
Income to Adjusted Operating Income, Adjusted EBITDA and Adjusted Net
Income, and cash flows to Free Cash Flows and the explanatory footnotes
regarding those adjustments, (ii) use Adjusted Operating Income,
Adjusted EBITDA, Adjusted Net Income, and Adjusted Diluted EPS in
addition to, and not as an alternative to Operating Income, Net Income
or Diluted EPS as a measure of operating results, each as defined under
GAAP, and (iii) use Free Cash Flows, in addition to, and not as an
alternative to, Net Cash Provided by Operating Activities as a measure
of liquidity, each as defined under GAAP. Exhibit 4 includes a
reconciliation of Adjusted Operating Income, Adjusted EBITDA, Adjusted
Net Income, Adjusted Diluted EPS, and Free Cash Flow to the most
directly comparable financial measure calculated and presented in
accordance with GAAP.
No reconciliation of the forecasted range for Adjusted Diluted EPS to
Diluted EPS for any period during fiscal 2015 is included in this
release because we are unable to quantify certain amounts that would be
required to be included in the GAAP measure without unreasonable efforts
and we believe such reconciliations would imply a degree of precision
that would be confusing or misleading to investors.
Forward Looking Statements
Certain statements contained in this press release and in related
comments by our management include “forward-looking statements” within
the meaning of the Private Securities Litigation Reform Act of 1995.
Examples of forward-looking statements include information concerning
Booz Allen’s preliminary financial results, financial outlook and
guidance, including forecasted revenue, Diluted EPS, and Adjusted
Diluted EPS, future quarterly dividends, and future improvements in
operating margins, as well as any other statement that does not directly
relate to any historical or current fact. In some cases, you can
identify forward-looking statements by terminology such as “may,”
“will,” “could,” “should,” “forecasts,” “expects,” “intends,” “plans,”
“anticipates,” “projects,” “outlook,” “believes,” “estimates,”
“predicts,” “potential,” “continue,” “preliminary,” or the negative of
these terms or other comparable terminology. Although we believe that
the expectations reflected in the forward-looking statements are
reasonable, we can give you no assurance these expectations will prove
to have been correct.
These forward-looking statements relate to future events or our future
financial performance and involve known and unknown risks, uncertainties
and other factors that may cause our actual results, levels of activity,
performance or achievements to differ materially from any future
results, levels of activity, performance or achievements expressed or
implied by these forward-looking statements.
These risks and other factors include: cost cutting and efficiency
initiatives, budget reductions, Congressionally mandated automatic
spending cuts, and other efforts to reduce U.S. government spending,
including automatic sequestration required by the Budget Control Act of
2011 (as amended by the American Taxpayer Relief Act of 2012 and
Consolidated Appropriations Act of 2014), which have reduced and delayed
contract awards and funding for orders for services especially in the
current political environment or otherwise negatively affect our ability
to generate revenue under contract awards, including as a result of
reduced staffing and hours of operation at U.S. government clients;
delayed funding of our contracts due to uncertainty relating to and a
possible failure of Congressional efforts to craft a long-term agreement
on the U.S. government’s ability to incur indebtedness in excess of its
current limits, or changes in the pattern or timing of government
funding and spending (including those resulting from or related to cuts
associated with sequestration or other budgetary cuts made in lieu of
sequestration); current and continued uncertainty around the timing,
extent, nature, and effect of Congressional and other U.S. government
action to address budgetary constraints, including, but not limited to,
uncertainty around the outcome of Congressional efforts to craft a
long-term agreement on the U.S. government’s ability to incur
indebtedness in excess of its current limits, and the U.S. deficit; any
issue that compromises our relationships with the U.S. government or
damages our professional reputation, including negative publicity
concerning government contractors in general or us in particular;
changes in U.S. government spending, including a continuation of efforts
by the U.S. government to decrease spending for management support
service contracts, and mission priorities that shift expenditures away
from agencies or programs that we support; the size of our addressable
markets and the amount of U.S. government spending on private
contractors; failure to comply with numerous laws and regulations; our
ability to compete effectively in the competitive bidding process and
delays or losses of contract awards caused by competitors' protests of
major contract awards received by us; the loss of General Services
Administration Multiple Award schedule contracts, or GSA schedules, or
our position as prime contractor on government-wide acquisition contract
vehicles, or GWACs; changes in the mix of our contracts and our ability
to accurately estimate or otherwise recover expenses, time, and
resources for our contracts; our ability to generate revenue under
certain of our contracts; our ability to realize the full value of and
replenish our backlog and the timing of our receipt of revenue under
contracts included in backlog; changes in estimates used in recognizing
revenue; an inability to attract, train, or retain employees with the
requisite skills, experience, and security clearances; an inability to
hire, assimilate, and deploy enough employees to serve our clients under
existing contracts; an inability to timely and effectively utilize our
employees; failure by us or our employees to obtain and maintain
necessary security clearances; the loss of members of senior management
or failure to develop new leaders; misconduct or other improper
activities from our employees or subcontractors, including the improper
use or release of our clients' sensitive or classified information;
increased insourcing by various U.S. government agencies due to changes
in the definition of “inherently governmental” work, including proposals
to limit contractor access to sensitive or classified information and
work assignments; increased competition from other companies in our
industry; failure to maintain strong relationships with other
contractors; inherent uncertainties and potential adverse developments
in legal or regulatory proceedings, including litigation, audits,
reviews, and investigations, which may result in materially adverse
judgments, settlements, withheld payments, penalties, or other
unfavorable outcomes including debarment, as well as disputes over the
availability of insurance or indemnification; continued efforts to
change how the U.S. government reimburses compensation related and other
expenses or otherwise limit such reimbursements, including recent rules
that expand the scope of existing reimbursement limitations, such as a
reduction in allowable annual employee compensation to certain
contractors as a result of the Bipartisan Budget Act of 2013, and an
increased risk of compensation being deemed unallowable or payments
being withheld as a result of U.S. government audit, review or
investigation; internal system or service failures and security
breaches, including, but not limited to, those resulting from external
cyber attacks on our network and internal systems; risks related to
changes to our operating structure, capabilities, or strategy intended
to address client needs, grow our business or respond to market
developments; risks associated with new relationships, clients,
capabilities, and service offerings in our U.S. and international
businesses; failure to comply with special U.S. government laws and
regulations relating to our international operations; risks related to
our indebtedness and credit facilities which contain financial and
operating covenants; the adoption by the U.S. government of new laws,
rules, and regulations, such as those relating to organizational
conflicts of interest issues or limits; risks related to completed and
future acquisitions, including our ability to realize the expected
benefits from such acquisitions; an inability to utilize existing or
future tax benefits, including those related to our stock-based
compensation expense, for any reason, including a change in law; and
variable purchasing patterns under U.S. government GSA schedules,
blanket purchase agreements and indefinite delivery, indefinite quantity
contracts. Additional information concerning these and other factors can
be found in our filings with the Securities and Exchange Commission
(SEC), including our Annual Report on Form 10-K, filed with the SEC on
May 22, 2014.
All forward-looking statements attributable to us or persons acting on
our behalf are expressly qualified in their entirety by the foregoing
cautionary statements. All such statements speak only as of the date
made and, except as required by law, we undertake no obligation to
update or revise publicly any forward-looking statements, whether as a
result of new information, future events or otherwise.
|
Exhibit 1 Booz Allen Hamilton Holding Corporation Condensed
Consolidated Statements of Operations |
|
|
|
|
| Three Months Ended December 31, |
|
| Nine Months Ended December 31, |
(Amounts in thousands, except per share data) | | | | 2014 |
|
| 2013 | | | 2014 |
|
| 2013 |
| | | | (Unaudited) | | | (Unaudited) |
Revenue
| | | |
$
|
1,304,686
| | | |
$
|
1,273,150
| | | |
$
|
3,931,824
| | | |
$
|
4,078,861
| |
Operating costs and expenses:
| | | | | | | | | | | | | | | | | |
Cost of revenue
| | | |
641,541
| | | |
662,053
| | | |
1,928,967
| | | |
2,048,663
| |
Billable expenses
| | | |
366,371
| | | |
320,370
| | | |
1,064,994
| | | |
1,083,890
| |
General and administrative expenses
| | | |
176,327
| | | |
175,748
| | | |
524,368
| | | |
520,557
| |
Depreciation and amortization
| | | |
15,191
|
| | |
17,945
|
| | |
47,233
|
| | |
54,377
|
|
Total operating costs and expenses
| | | |
1,199,430
|
| | |
1,176,116
|
| | |
3,565,562
|
| | |
3,707,487
|
|
Operating income
| | | |
105,256
| | | |
97,034
| | | |
366,262
| | | |
371,374
| |
Interest expense
| | | |
(17,863
|
)
| | |
(18,874
|
)
| | |
(54,544
|
)
| | |
(59,761
|
)
|
Other, net
| | | |
(777
|
)
| | |
21
|
| | |
(1,080
|
)
| | |
(1,619
|
)
|
Income before income taxes
| | | |
86,616
| | | |
78,181
| | | |
310,638
| | | |
309,994
| |
Income tax expense
| | | |
33,809
|
| | |
31,014
|
| | |
121,432
|
| | |
124,701
|
|
Net income
| | | |
$
|
52,807
|
| | |
$
|
47,167
|
| | |
$
|
189,206
|
| | |
$
|
185,293
|
|
Earnings per common share:
| | | | | | | | | | | | | | | | | |
Basic
| | | |
$
|
0.35
|
| | |
$
|
0.32
|
| | |
$
|
1.28
|
| | |
$
|
1.31
|
|
Diluted
| | | |
$
|
0.35
|
| | |
$
|
0.31
|
| | |
$
|
1.24
|
| | |
$
|
1.24
|
|
Dividends declared per share
| | | |
$
|
0.11
|
| | |
$
|
1.10
|
| | |
$
|
1.33
|
| | |
$
|
1.30
|
|
|
|
Exhibit 2 Booz Allen Hamilton Holding Corporation Condensed
Consolidated Balance Sheets |
|
| | |
(Amounts in thousands, except share and per share data) |
|
| December 31, 2014 | | March 31, 2014 | |
| | | (Unaudited) | | | |
| | | | | |
|
Assets | | | | | | |
Current assets:
| | | | | | |
Cash and cash equivalents
| | |
$
|
197,443
| |
$
|
259,994
| |
Accounts receivable, net of allowance
| | |
844,745
| |
916,737
| |
Prepaid expenses and other current assets
| | |
112,358
| |
79,246
| |
Total current assets
| | |
1,154,546
| |
1,255,977
| |
Property and equipment, net of accumulated depreciation
| | |
105,537
| |
129,427
| |
Intangible assets, net of accumulated amortization
| | |
222,373
| |
220,887
| |
Goodwill
| | |
1,299,370
| |
1,273,789
| |
Other long-term assets
| | |
50,244
| |
60,738
| |
Total assets
| | |
$
|
2,832,070
| |
$
|
2,940,818
| |
Liabilities and stockholders' equity | | | | | | |
Current liabilities:
| | | | | | |
Current portion of long-term debt
| | |
$
|
51,875
| |
$
|
73,688
| |
Accounts payable and other accrued expenses
| | |
438,022
| |
488,807
| |
Accrued compensation and benefits
| | |
292,184
| |
331,440
| |
Other current liabilities
| | |
26,774
| |
23,169
| |
Total current liabilities
| | |
808,855
| |
917,104
| |
Long-term debt, net of current portion
| | |
1,584,069
| |
1,585,231
| |
Other long-term liabilities
| | |
243,897
| |
266,847
| |
Total liabilities
| | |
2,636,821
| |
2,769,182
| |
Stockholders’ equity:
| | | | | | |
Common stock, Class A — $0.01 par value — authorized, 600,000,000
shares; issued, 149,895,153
| | | | | | |
shares at December 31, 2014 and 143,962,073 shares at March 31,
2014; outstanding, 147,908,527
| | | | | | |
shares at December 31, 2014 and 143,352,448 shares at March 31,
2014
| | |
1,499
| |
1,440
| |
Non-voting common stock, Class B — $0.01 par value — authorized,
16,000,000 shares; issued and
| | | | | | |
outstanding, 0 shares at December 31, 2014 and 582,080 shares at
March 31, 2014
| | |
—
| |
6
| |
Restricted common stock, Class C — $0.01 par value — authorized,
5,000,000 shares; issued and
| | | | | | |
outstanding, 0 shares at December 31, 2014 and 935,871 shares at
March 31, 2014
| | |
—
| |
9
| |
Special voting common stock, Class E — $0.003 par value —
authorized, 25,000,000 shares; issued
| | | | | | |
and outstanding, 1,851,589 shares at December 31, 2014 and
4,424,814 shares at March 31, 2014
| | |
6
| |
13
| |
Treasury stock, at cost — 1,986,626 shares at December 31, 2014 and
609,625 shares at March 31, 2014
| | |
(43,522)
| |
(10,153)
|
|
Additional paid-in capital
| | |
163,381
| |
144,269
| |
Retained earnings
| | |
80,264
| |
42,688
| |
Accumulated other comprehensive loss
| | |
(6,379)
| |
(6,636)
|
|
Total stockholders’ equity
| | |
195,249
| |
171,636
| |
Total liabilities and stockholders’ equity
| | |
$
|
2,832,070
| |
$
|
2,940,818
| |
| | |
|
|
Exhibit 3 Booz Allen Hamilton Holding Corporation Condensed
Consolidated Statements of Cash Flows |
|
|
|
| Nine Months Ended December 31, |
(Amounts in thousands) | | | 2014 |
| 2013 |
| | | (Unaudited) |
Cash flows from operating activities | | | | | | | |
Net income
| | |
$
|
189,206
| | |
$
|
185,293
| |
Adjustments to reconcile net income to net cash provided by
operating activities:
| | | | | | | |
Depreciation and amortization
| | |
47,233
| | |
54,377
| |
Stock-based compensation expense
| | |
19,954
| | |
14,119
| |
Excess tax benefits from the exercise of stock options
| | |
(48,452
|
)
| |
(36,844
|
)
|
Amortization of debt issuance costs and loss on extinguishment
| | |
9,538
| | |
9,444
| |
Losses on dispositions and impairments
| | |
1,396
| | |
911
| |
Changes in assets and liabilities:
| | | | | | | |
Accounts receivable
| | |
73,088
| | |
140,785
| |
Prepaid expenses and other current assets
| | |
15,008
| | |
19,963
| |
Other long-term assets
| | |
773
| | |
(1,679
|
)
|
Accrued compensation and benefits
| | |
(31,390
|
)
| |
(25,824
|
)
|
Accounts payable and other accrued expenses
| | |
(56,419
|
)
| |
(15,619
|
)
|
Accrued interest
| | |
7,467
| | |
(630
|
)
|
Other current liabilities
| | |
1,582
| | |
(48,610
|
)
|
Other long-term liabilities
| | |
(926
|
)
| |
(3,352
|
)
|
Net cash provided by operating activities
| | |
228,058
|
| |
292,334
|
|
| | | | | | |
|
Cash flows from investing activities | | | | | | | |
Purchases of property and equipment
| | |
(17,466
|
)
| |
(12,344
|
)
|
Cash paid for business acquisitions, net of cash acquired
| | |
(23,907
|
)
| |
3,563
| |
Escrow receipts
| | |
—
|
| |
3,282
|
|
Net cash used in investing activities
| | |
(41,373
|
)
| |
(5,499
|
)
|
| | | | | | |
|
Cash flows from financing activities | | | | | | | |
Net proceeds from issuance of common stock
| | |
3,699
| | |
3,785
| |
Stock option exercises
| | |
4,272
| | |
12,773
| |
Excess tax benefits from the exercise of stock options
| | |
48,452
| | |
36,844
| |
Repurchases of common stock
| | |
(33,369
|
)
| |
(2,935
|
)
|
Cash dividends paid
| | |
(195,924
|
)
| |
(186,828
|
)
|
Dividend equivalents paid to option holders
| | |
(47,006
|
)
| |
(52,065
|
)
|
Debt issuance costs
| | |
(8,610
|
)
| |
(6,223
|
)
|
Repayment of debt
| | |
(219,188
|
)
| |
(289,406
|
)
|
Proceeds from debt issuance
| | |
198,438
|
| |
250,000
|
|
Net cash used in financing activities
| | |
(249,236
|
)
| |
(234,055
|
)
|
Net (decrease) increase in cash and cash equivalents
| | |
(62,551
|
)
| |
52,780
| |
Cash and cash equivalents — beginning of period
| | |
259,994
|
| |
350,384
|
|
Cash and cash equivalents — end of period
| | |
$
|
197,443
|
| |
$
|
403,164
|
|
Supplemental disclosures of cash flow information | | | | | | | |
Cash paid during the period for:
| | | | | | | |
Interest
| | |
$
|
36,552
|
| |
$
|
46,927
|
|
Income taxes
| | |
$
|
114,276
|
| |
$
|
140,893
|
|
|
|
Exhibit 4 Booz Allen Hamilton Holding Corporation Non-GAAP
Financial Information |
|
|
|
| Three Months Ended December 31, |
| Nine Months Ended December 31, |
(Amounts in thousands, except share and per share data) | | | 2014 |
| 2013 | | 2014 |
| 2013 |
| | | (Unaudited) | | (Unaudited) |
Adjusted Operating Income | | | | | | | | | | | | | |
Operating Income
| | |
$
|
105,256
| | |
$
|
97,034
| | |
$
|
366,262
| | |
$
|
371,374
| |
Certain stock-based compensation expense (a)
| | |
—
| | |
—
| | |
—
| | |
1,094
| |
Amortization of intangible assets (b)
| | |
1,057
| | |
2,112
| | |
3,169
| | |
6,337
| |
Transaction expenses (c)
| | |
—
|
| |
—
|
| |
2,039
|
| |
—
|
|
Adjusted Operating Income
| | |
$
|
106,313
|
| |
$
|
99,146
|
| |
$
|
371,470
|
| |
$
|
378,805
|
|
EBITDA & Adjusted EBITDA | | | | | | | | | | | | | |
Net income
| | |
$
|
52,807
| | |
$
|
47,167
| | |
$
|
189,206
| | |
$
|
185,293
| |
Income tax expense
| | |
33,809
| | |
31,014
| | |
121,432
| | |
124,701
| |
Interest and other, net
| | |
18,640
| | |
18,853
| | |
55,624
| | |
61,380
| |
Depreciation and amortization
| | |
15,191
|
| |
17,945
|
| |
47,233
|
| |
54,377
|
|
EBITDA
| | |
120,447
| | |
114,979
| | |
413,495
| | |
425,751
| |
Certain stock-based compensation expense (a)
| | |
—
| | |
—
| | |
—
| | |
1,094
| |
Transaction expenses (c)
| | |
—
|
| |
—
|
| |
2,039
|
| |
—
|
|
Adjusted EBITDA
| | |
$
|
120,447
|
| |
$
|
114,979
|
| |
$
|
415,534
|
| |
$
|
426,845
|
|
Adjusted Net Income | | | | | | | | | | | | | |
Net income
| | |
$
|
52,807
| | |
$
|
47,167
| | |
$
|
189,206
| | |
$
|
185,293
| |
Certain stock-based compensation expense (a)
| | |
—
| | |
—
| | |
—
| | |
1,094
| |
Amortization of intangible assets (b)
| | |
1,057
| | |
2,112
| | |
3,169
| | |
6,337
| |
Transaction expenses (c)
| | |
—
| | |
—
| | |
2,039
| | |
—
| |
Amortization or write-off of debt issuance costs and write-off of
original issue discount
| | |
1,306
| | |
1,705
| | |
5,267
| | |
5,060
| |
Adjustments for tax effect (d)
| | |
(945
|
)
| |
(1,527
|
)
| |
(4,190
|
)
| |
(4,997
|
)
|
Adjusted Net Income
| | |
$
|
54,225
|
| |
$
|
49,457
|
| |
$
|
195,491
|
| |
$
|
192,787
|
|
Adjusted Diluted Earnings Per Share | | | | | | | | | | | | | |
Weighted-average number of diluted shares outstanding
| | |
150,679,085
|
| |
148,835,283
|
| |
150,239,836
|
| |
148,165,190
|
|
Adjusted Net Income Per Diluted Share (e)
| | |
$
|
0.36
|
| |
$
|
0.33
|
| |
$
|
1.30
|
| |
$
|
1.30
|
|
Free Cash Flow | | | | | | | | | | | | | |
Net cash provided by operating activities
| | |
$
|
27,529
| | |
$
|
152,725
| | |
$
|
228,058
| | |
$
|
292,334
| |
Less: Purchases of property and equipment
| | |
(8,535
|
)
| |
(5,626
|
)
| |
(17,466
|
)
| |
(12,344
|
)
|
Free Cash Flow
| | |
$
|
18,994
|
| |
$
|
147,099
|
| |
$
|
210,592
|
| |
$
|
279,990
|
|
|
(a)
|
|
Reflects stock-based compensation expense for options for Class A
Common Stock and restricted shares, in each case, issued in
connection with the Acquisition of our Company by The Carlyle Group
(the Acquisition) under the Officers' Rollover Stock Plan. Also
reflects stock-based compensation expense for Equity Incentive Plan
Class A Common Stock options issued in connection with the
Acquisition under the Equity Incentive Plan.
|
(b)
| |
Reflects amortization of intangible assets resulting from the
Acquisition.
|
(c)
| |
Reflects debt refinancing costs incurred in connection with the
refinancing transaction consummated on May 7, 2014.
|
(d)
| |
Reflects tax effect of adjustments at an assumed marginal tax rate
of 40%.
|
(e)
| |
Excludes an adjustment of approximately $790,000 and $2.9 million of
net earnings for the three and nine months ended December 31, 2014,
and excludes an adjustment of approximately $1.5 million and $1.7
million of net earnings for the three and nine months ended December
31, 2013 respectively, associated with the application of the
two-class method for computing diluted earnings per share.
|
|
Exhibit 5 Booz Allen Hamilton Holding Corporation Operating
Data |
|
|
|
|
| As of December 31, |
(Amounts in millions) | | | | 2014 |
| 2013 |
Backlog | | | | | | | |
Funded
| | | |
$
|
2,672
| | |
$
|
2,498
|
Unfunded (1)
| | | |
2,673
| | |
2,636
|
Priced Options (2)
| | | |
4,714
|
| |
5,233
|
Total Backlog
| | | |
$
|
10,059
|
| |
$
|
10,367
|
|
(1)
|
|
Reflects a reduction by management to the revenue value of orders
for services under one existing single award ID/IQ contract the
Company has had for several years, based on an established pattern
of funding under these contracts by the U.S. government.
|
| |
|
(2)
| |
Amounts shown reflect 100% of the undiscounted revenue value of all
priced options.
|
| |
|
|
|
|
|
| Three Months Ended December 31, |
| | | | 2014 |
| 2013 |
Book-to-Bill * | | | |
0.36
| |
(0.01)
|
|
* | Book-to-bill is calculated as the change in total backlog during
the relevant fiscal quarter plus the relevant fiscal quarter
revenue, all divided by the relevant fiscal quarter revenue. |
|
|
|
|
| As of December 31, |
| | | | 2014 |
| 2013 |
Headcount | | | | | | |
Total Headcount
| | | |
22,329
| |
22,713
|
Consulting Staff Headcount
| | | |
20,268
| |
20,597
|
|
|
|
|
|
| Three Months Ended December 31, |
| Nine Months Ended December 31, |
| | | | 2014 |
| 2013 | | 2014 |
| 2013 |
Percentage of Total Revenue by Contract Type | | | | | | | | | | |
Cost-Reimbursable (3)
| | | |
53%
| |
55%
| |
55%
| |
55%
|
Time-and-Materials
| | | |
25%
| |
26%
| |
26%
| |
28%
|
Fixed-Price (4)
| | | |
22%
| |
19%
| |
19%
| |
17%
|
(3)
|
|
Includes both cost-plus-fixed-fee and cost-plus-award fee contracts.
|
| |
|
(4)
| |
Includes fixed-price level of effort contracts.
|
|
|
|
|
|
| Three Months Ended December 31, |
| | | | 2014 |
| 2013 |
Days Sales Outstanding ** | | | |
61
| |
66
|
|
**
| Calculated as total accounts receivable divided by revenue per
day during the relevant fiscal quarter. |
Contacts:
Booz Allen Hamilton Holding Corporation
Media Relations
James
Fisher, 703-377-7595
or
Investor Relations
Curt Riggle,
703-377-5332
Source: Booz Allen Hamilton Holding Corporation
© 2024 Canjex Publishing Ltd. All rights reserved.