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8-K - FORM 8-K - Booz Allen Hamilton Holding Corp | w83981e8vk.htm |
EX-99.2 - EX-99.2 - Booz Allen Hamilton Holding Corp | w83981exv99w2.htm |
Exhibit 99.1
BOOZ ALLEN HAMILTON ANNOUNCES
FIRST QUARTER FISCAL 2012 RESULTS
FIRST QUARTER FISCAL 2012 RESULTS
Revenue increased 7.8 percent, to $1.4 billion
Adjusted EBITDA increased 1.1 percent, to $122.9 million
Adjusted Diluted Earnings per Share increased by 20.6 percent, to 41 cents per share
Total backlog increased 18 percent, to $11.2 billion
McLean, Virginia; August 9, 2011 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 first quarter of its fiscal 2012 with solid revenue and
earnings growth over the comparable prior year period. Booz Allen also reported strong backlog of
$11.2 billion as of June 30, 2011. Booz Allens fiscal year runs from April 1 to March 31, with the
first quarter of fiscal 2012 ending June 30, 2011.
Revenue in the first quarter of fiscal 2012 was $1.45 billion, compared with $1.34 billion in the
prior year period, an increase of 7.8 percent. Booz Allen continued to grow revenue organically
across all markets.
Net income increased to $51.1 million from $28.2 million in the prior year period and Adjusted Net
Income increased to $58.0 million from $41.7 million in the prior year period. Diluted Earnings per
Share (EPS) and Adjusted Diluted EPS in the first quarter of fiscal 2012 were $0.37 and $0.41,
respectively, compared with $0.23 and $0.34 in the prior year period.
Ralph W. Shrader, Booz Allens Chairman, Chief Executive Officer, and President, said, We are off
to a good start in our new fiscal year, growing revenue in all of our major markets. Booz Allen
remains focused on quality growth providing high-value, differentiated services to our clients
on missions that matter. From a financial management standpoint, we continue to grow organically,
our total backlog is at an all-time high, and we continue to generate strong free cash flow.
The US federal government remains our core business, Dr. Shrader said, And we continue to grow
in defense, civil, and intelligence markets despite the challenging federal budget environment.
Our services help government agencies improve efficiency and effectiveness. Beyond our core
federal government market, we believe that we have attractive opportunities serving commercial
companies and are focused on the financial services, health, and energy industries where we see
strong intersections between public and private sectors as well as government and industry in
the Middle East.
The non-compete agreement between Booz Allen Hamilton and its spin-off, Booz & Co., ended on July
31, 2011 and Booz Allen may now access all markets and clients worldwide.
Financial Review
First Quarter 2012 Booz Allens 7.8 percent increase in revenue in the first quarter of fiscal
2012 over the prior year period was a result of the deployment of additional consulting staff
against funded backlog under existing contracts and funded backlog under new contracts in all
markets, and a related increase in billable expenses.
In the first quarter of fiscal 2012, operating income increased to $98.1 million from $88.7 million
in the prior year period and Adjusted Operating Income remained consistent at $109.1 million
compared to $109.3 million in the prior year period. Adjusted Operating Income for the first
quarter of fiscal 2012 was flat compared with the first quarter of fiscal 2011 because the
operating income generated by the increased revenue for the current quarter was offset by rising
expenses, including an increased investment in business development and unbillable staff
compensation cost as we prepare for the expected increase in backlog during the second quarter of
fiscal 2012 and subsequent growth anticipated in the third and fourth quarters. The difference
between operating income and Adjusted Operating Income was due to changes in stock-based
compensation expense and amortization of intangible assets related to the July 31, 2008 transaction
with The Carlyle Group.
Net income increased to $51.1 million from $28.2 million in the prior year period and Adjusted Net
Income increased to $58.0 million from $41.7 million in the prior year period. Adjusted EBITDA
increased 1.1 percent to $122.9 million in the first quarter of fiscal 2012 compared with $121.5
million in the prior year period. In the first quarter of fiscal 2012, diluted EPS increased to
$0.37 per share from $0.23 per share in the prior year period, while Adjusted Diluted EPS increased
to $0.41 per share from $0.34 per share in the prior year period.
Net cash provided by operating activities in the first quarter of fiscal 2012 was $53.8 million
compared to $10.0 million in the prior year period. Free Cash Flow was $36.2 million in the first
quarter of fiscal 2012, compared to ($6.2) million in the prior year period. The primary driver of
this increase was a reduction in interest expense as a result of the refinancing of our credit
facilities in February 2011.
Total backlog as of June 30, 2011 was $11.2 billion, compared with $9.5 billion as of June 30,
2010, an increase of 18%. Priced options under existing contracts in the first quarter of fiscal
2012 increased by more than $1.5 billion compared to the prior year period. Unfunded backlog
increased to $3.0 billion as of June 30, 2011 compared with $2.6 billion as of June 30, 2010.
Funded backlog was $2.5 billion as of June 30, 2011,
compared to $2.6 billion as of June 30, 2010. Funded backlog was impacted by the repeated use of
Continuing Resolutions to fund the government, and a threatened government shutdown, which was
resolved on April 15, 2011 by the passage of a spending bill providing funding for the government
through the end of the governments fiscal 2011. This resolution came nearly 4 months later than
the resolution in effect during our prior fiscal year, and has impacted our funded backlog in the
first quarter of fiscal 2012.
Financial Outlook
Booz Allen continues to forecast revenue growth and margin improvements, with top-line revenue
growth in fiscal 2012 expected to be in the range of mid-single digits for the first half of the
fiscal year, with higher growth rates expected in the second half of the year, similar to the
quarterly pattern we experienced in our fiscal 2011. This is in line with the U.S. governments
historical timing on contract awards and funding patterns which have historically increased in
September at the end of the government fiscal year, and reflects our current expectations for
continued growth despite the generally challenging environment for government contractors.
We are reconfirming prior guidance for fiscal 2012 EPS, with diluted EPS expected to be in the
range of $1.40 to $1.50 per share and Adjusted Diluted EPS expected to be in the range of $1.55 to
$1.65 per share. These forecasts do not include any gain from the sale of the state and local
transportation business, and reflect expectations that bottom-line performance will continue to
benefit from reduced interest expense and an improvement in operating margins.
These EPS estimates are based on fiscal year 2012 estimated average diluted shares outstanding of
approximately 143,000,000 shares.
Conference Call Information
Booz Allen will host a conference call at 8:00 a.m. EDT on Tuesday, August 9, 2011, to discuss the
financial results for its first quarter of fiscal 2012. Analysts and institutional investors may
participate on the call by dialing 800-295-4740 (international 617-614-3925) and entering passcode
92319392. 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
www.boozallen.com. A replay of
the conference call will be available online at www.boozallen.com beginning at 11:00 a.m. EDT on
August 9, 2011, and continuing until September 9, 2011. The replay will also be available by
telephone at 888-286-8010 (international 617-801-6888) with the passcode 89326966.
About Booz Allen Hamilton
Booz Allen Hamilton is a leading provider of management and technology consulting 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 25,000 people, and had revenue of $5.59 billion for the fiscal year ended March
31, 2011 (NYSE: BAH).
CONTACT: Media Relations Marie Lerch 703-902-5559; James Fisher 703-377-7595
Investor Relations Curt Riggle 703-377-5332.
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 tax, 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.
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. 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 Allens performance, long term earnings
potential, or liquidity, as applicable, and to enable them to assess Booz Allens 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 Allens 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 Allens 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
the explanatory footnotes regarding those adjustments, and (ii) use Adjusted Operating Income,
Adjusted EBITDA, Adjusted Net Income, Adjusted Diluted EPS, and Free Cash Flow in addition to, and
not as an alternative to Operating Income, Net Income or Diluted EPS as a measure of operating
results or Net Cash Provided by Operating Activities as a measure of liquidity, each as defined
under GAAP. Exhibit 6 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 fiscal 2012
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 Allens
preliminary financial results, financial outlook and guidance, including forecasted revenue,
Diluted EPS, and Adjusted Diluted EPS, 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 initiatives and other efforts to reduce U.S.
government spending, which could reduce or delay funding for orders for services especially in the
current political environment; delayed funding of our contracts due to delays in the completion of
the U.S. governments budgeting process and the use of continuing resolutions or related changes in
the pattern or timing of government funding and spending; any issue that compromises our
relationships with the U.S. government or damages our professional reputation; changes in U.S.
government spending 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 caused by competitors protests of major contract awards received by us;
the loss of General Services Administration schedules or our position as prime contractor on
Government-wide Acquisition Contracts; 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 our backlog and the timing of our receipt of revenue under contracts included in backlog;
changes in estimates used in recognizing revenue; any 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 effectively and timely utilize our employees and professionals; 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; increased competition from other companies in our industry; failure to maintain
strong relationships with other contractors; inherent uncertainties and potential adverse
developments in legal proceedings, including litigation, audits, reviews and investigations, which
may result in materially adverse judgments, settlements or other unfavorable outcomes; internal
system or service failures and security breaches; 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; an inability to utilize existing or future tax benefits, including those related to our Net
Operating Losses and 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 10K, filed with the SEC on June 8, 2011.
All forward-looking statements attributable to the company or persons acting on the companys
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, the company undertakes no
obligation to update or revise publicly any forward-looking statements, whether as a result of new
information, future events or otherwise.
Exhibits:
Exhibit 1:
|
Condensed Consolidated Statements of Operations | |
Exhibit 2:
|
Condensed Consolidated Statements of Comprehensive Income | |
Exhibit 3:
|
Condensed Consolidated Balance Sheets | |
Exhibit 4:
|
Condensed Consolidated Statements of Cash Flows | |
Exhibit 5:
|
Basic and Diluted Earnings Per Share Calculations | |
Exhibit 6:
|
Non-GAAP Financial Information | |
Exhibit 7:
|
Operating Data |
Exhibit 1
Booz Allen Hamilton Holding Corporation
Condensed Consolidated Statements of Operations
Booz Allen Hamilton Holding Corporation
Condensed Consolidated Statements of Operations
Three Months Ended | ||||||||
June 30, | ||||||||
2011 | 2010 | |||||||
(Amounts in thousands, except per share data) | (Unaudited) | |||||||
Revenue |
$ | 1,446,836 | $ | 1,341,929 | ||||
Operating costs and expenses: |
||||||||
Cost of revenue |
726,831 | 677,095 | ||||||
Billable expenses |
392,190 | 356,286 | ||||||
General and administrative expenses |
211,835 | 200,419 | ||||||
Depreciation and amortization |
17,858 | 19,384 | ||||||
Total operating costs and expenses |
1,348,714 | 1,253,184 | ||||||
Operating income |
98,122 | 88,745 | ||||||
Interest expense |
(12,294 | ) | (40,353 | ) | ||||
Other, net |
(442 | ) | (307 | ) | ||||
Income before income taxes |
85,386 | 48,085 | ||||||
Income tax expense |
34,250 | 19,916 | ||||||
Net income |
$ | 51,136 | $ | 28,169 | ||||
Earnings per common share: |
||||||||
Basic |
$ | 0.40 | $ | 0.26 | ||||
Diluted |
$ | 0.37 | $ | 0.23 | ||||
Exhibit 2
Booz Allen Hamilton Holding Corporation
Condensed Consolidated Statements of Comprehensive Income
Booz Allen Hamilton Holding Corporation
Condensed Consolidated Statements of Comprehensive Income
Three Months Ended | ||||||||
June 30, | ||||||||
2011 | 2010 | |||||||
(Amounts in thousands) | (Unaudited) | |||||||
Net income |
$ | 51,136 | $ | 28,169 | ||||
Actuarial gain related to employee benefits, net of taxes |
107 | 82 | ||||||
Comprehensive income |
$ | 51,243 | $ | 28,251 | ||||
Exhibit 3
Booz Allen Hamilton Holding Corporation
Condensed Consolidated Balance Sheets
Booz Allen Hamilton Holding Corporation
Condensed Consolidated Balance Sheets
June 30, | March 31, | |||||||
2011 | 2011 | |||||||
(Amounts in thousands, except share and per share data) | (Unaudited) | |||||||
ASSETS |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 228,513 | $ | 192,631 | ||||
Accounts receivable, net of allowance |
1,079,944 | 1,111,004 | ||||||
Prepaid expenses and other current assets |
68,331 | 62,014 | ||||||
Total current assets |
1,376,788 | 1,365,649 | ||||||
Property and equipment (less accumulated depreciation of $151.3 million and
$138.1 million at June 30, 2011 and March 31, 2011, respectively) |
177,254 | 173,430 | ||||||
Intangible assets, net |
236,147 | 240,238 | ||||||
Goodwill |
1,163,712 | 1,163,549 | ||||||
Other long-term assets |
73,668 | 81,157 | ||||||
Total assets |
$ | 3,027,569 | $ | 3,024,023 | ||||
LIABILITIES AND STOCKHOLDERS EQUITY |
||||||||
Current liabilities: |
||||||||
Current portion of long-term debt |
$ | 33,125 | $ | 30,000 | ||||
Accounts payable and other accrued expenses |
413,110 | 406,310 | ||||||
Accrued compensation and benefits |
314,168 | 396,996 | ||||||
Other current liabilities |
47,754 | 32,829 | ||||||
Total current liabilities |
808,157 | 866,135 | ||||||
Long-term debt, net of current portion |
953,976 | 964,328 | ||||||
Income tax reserve |
90,311 | 90,474 | ||||||
Other long-term liabilities |
200,963 | 195,836 | ||||||
Total liabilities |
2,053,407 | 2,116,773 | ||||||
Stockholders equity: |
||||||||
Common stock, Class A $0.01 par value authorized, 600,000,000 shares;
issued and outstanding, 123,855,904 shares at June 30, 2011 and
122,784,835 shares at March 31, 2011 |
1,238 | 1,227 | ||||||
Non-voting common stock, Class B $0.01 par value authorized,
16,000,000 shares; issued and outstanding, 2,911,296 shares at
June 30, 2011
and 3,053,130 shares at March 31, 2011 |
29 | 31 | ||||||
Restricted common stock, Class C $0.01 par value authorized,
5,000,000 shares; issued and outstanding, 1,891,550 shares at June
30, 2011 and 2,028,270 shares at March 31, 2011 |
19 | 20 | ||||||
Special voting common stock, Class E $0.003 par value authorized,
25,000,000 shares; issued and outstanding, 12,238,510 shares at
June 30, 2011 and 12,348,860 shares at March 31, 2011 |
37 | 37 | ||||||
Additional paid-in capital |
855,719 | 840,058 | ||||||
Retained earnings |
122,466 | 71,330 | ||||||
Accumulated other comprehensive loss |
(5,346 | ) | (5,453 | ) | ||||
Total stockholders equity |
974,162 | 907,250 | ||||||
Total liabilities and stockholders equity |
$ | 3,027,569 | $ | 3,024,023 | ||||
Exhibit 4
Booz Allen Hamilton Holding Corporation
Condensed Consolidated Statements of Cash Flows
Booz Allen Hamilton Holding Corporation
Condensed Consolidated Statements of Cash Flows
Three Months Ended | ||||||||
June 30, | ||||||||
2011 | 2010 | |||||||
(Amounts in thousands) | (Unaudited) | |||||||
Cash flow from operating activities |
||||||||
Net income |
$ | 51,136 | $ | 28,169 | ||||
Adjustments to reconcile net income to net cash provided
by operating activities: |
||||||||
Depreciation and amortization |
17,858 | 19,384 | ||||||
Amortization of debt issuance costs |
1,194 | 1,913 | ||||||
Amortization of original issuance discount on debt |
273 | 744 | ||||||
Excess tax benefits from the exercise of stock options |
(2,619 | ) | (552 | ) | ||||
Stock-based compensation expense |
10,677 | 15,660 | ||||||
Loss on disposition of property and equipment |
10 | | ||||||
Changes in assets and liabilities: |
||||||||
Accounts receivable, net |
31,060 | 23,385 | ||||||
Prepaid expenses and other current assets |
334 | (4,438 | ) | |||||
Other long-term assets |
12,717 | 14,582 | ||||||
Accrued compensation and benefits |
(83,804 | ) | (88,764 | ) | ||||
Accounts payable and other accrued expenses |
2,109 | (12,534 | ) | |||||
Accrued interest |
2,372 | 2,039 | ||||||
Income tax reserve |
(163 | ) | (22 | ) | ||||
Other current liabilities |
14,094 | 1,758 | ||||||
Other long-term liabilities |
(3,404 | ) | 8,687 | |||||
Net cash provided by operating activities |
53,844 | 10,011 | ||||||
Cash flow from investing activities |
||||||||
Purchases of property and equipment |
(17,601 | ) | (16,213 | ) | ||||
Escrow payments |
| 1,384 | ||||||
Net cash used in investing activities |
(17,601 | ) | (14,829 | ) | ||||
Cash flow from financing activities |
||||||||
Net proceeds from issuance of common stock |
2,418 | 1,002 | ||||||
Repayment of debt |
(7,500 | ) | (5,463 | ) | ||||
Excess tax benefits from the exercise of stock options |
2,619 | 552 | ||||||
Stock option exercises |
2,102 | 1,503 | ||||||
Net cash used in financing activities |
(361 | ) | (2,406 | ) | ||||
Net increase (decrease) in cash and cash equivalents |
35,882 | (7,224 | ) | |||||
Cash and cash equivalents beginning of period |
192,631 | 307,835 | ||||||
Cash and cash equivalents end of period |
$ | 228,513 | $ | 300,611 | ||||
Supplemental disclosures of cash flow information |
||||||||
Cash paid during the period for: |
||||||||
Interest |
$ | 8,455 | $ | 35,444 | ||||
Income taxes, net |
$ | 1,645 | $ | 215 | ||||
Exhibit 5
Booz Allen Hamilton Holding Corporation
Basic and Diluted Earnings Per Share Calculations
Booz Allen Hamilton Holding Corporation
Basic and Diluted Earnings Per Share Calculations
Three Months Ended | ||||||||
June 30, | ||||||||
2011 | 2010 | |||||||
(Amounts in thousands, except share and per share data) | (Unaudited) | |||||||
Earnings for basic and diluted computations |
$ | 51,136 | $ | 28,169 | ||||
Adjusted earnings for basic and diluted computations |
$ | 57,981 | $ | 41,661 | ||||
Total weighted-average common shares outstanding for basic computations |
127,975,481 | 107,442,656 | ||||||
Average number of common shares outstanding for diluted computations |
139,922,465 | 120,955,518 | ||||||
Earnings per common share |
||||||||
Basic |
$ | 0.40 | $ | 0.26 | ||||
Diluted |
$ | 0.37 | $ | 0.23 | ||||
Adjusted earnings per common share |
||||||||
Basic |
$ | 0.45 | $ | 0.39 | ||||
Diluted |
$ | 0.41 | $ | 0.34 | ||||
Exhibit 6
Booz Allen Hamilton Holding Corporation
Non-GAAP Financial Information
Booz Allen Hamilton Holding Corporation
Non-GAAP Financial Information
Three Months Ended | ||||||||
June 30, | ||||||||
2011 | 2010 | |||||||
(Amounts in thousands, except share and per share data) | (Unaudited) | |||||||
Adjusted Operating Income |
||||||||
Operating Income |
$ | 98,122 | $ | 88,745 | ||||
Certain stock-based compensation expense (a) |
6,897 | 13,344 | ||||||
Amortization of intangible assets (b) |
4,091 | 7,158 | ||||||
Transaction expenses (c) |
| 72 | ||||||
Adjusted Operating Income |
$ | 109,110 | $ | 109,319 | ||||
EBITDA & Adjusted EBITDA |
||||||||
Net income |
$ | 51,136 | $ | 28,169 | ||||
Income tax expense |
34,250 | 19,916 | ||||||
Interest and other, net |
12,736 | 40,660 | ||||||
Depreciation and amortization |
17,858 | 19,384 | ||||||
EBITDA |
115,980 | 108,129 | ||||||
Certain stock-based compensation expense (a) |
6,897 | 13,344 | ||||||
Transaction expenses (c) |
| 72 | ||||||
Adjusted EBITDA |
$ | 122,877 | $ | 121,545 | ||||
Adjusted Net Income |
||||||||
Net income |
$ | 51,136 | $ | 28,169 | ||||
Certain stock-based compensation expense (a) |
6,897 | 13,344 | ||||||
Transaction expenses (c) |
| 72 | ||||||
Amortization of intangible assets (b) |
4,091 | 7,158 | ||||||
Amortization or write-off of debt issuance
costs and write-off of original issue discount |
1,194 | 1,913 | ||||||
Release of FIN 48 reserves (d) |
(464 | ) | | |||||
Adjustments for tax effect (e) |
(4,873 | ) | (8,995 | ) | ||||
Adjusted Net Income |
$ | 57,981 | $ | 41,661 | ||||
Adjusted Diluted Earnings Per Share |
||||||||
Weighted-average number of diluted shares outstanding |
139,922,465 | 120,955,518 | ||||||
Adjusted Net Income Per Diluted Share |
$ | 0.41 | $ | 0.34 | ||||
Free Cash Flow |
||||||||
Net cash provided by operating activities |
$ | 53,844 | $ | 10,011 | ||||
Less: Purchases of property and equipment |
(17,601 | ) | (16,213 | ) | ||||
Free Cash Flow |
$ | 36,243 | $ | (6,202 | ) | |||
(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 under the Officers Rollover Stock Plan that was established in connection with the acquisition. 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 that was established in the connection with the acquisition. | |
(b) | Reflects amortization of intangible assets resulting from the acquisition. | |
(c) | Three months ended June 30, 2010 reflects certain external administrative and other expenses incurred in connection with the initial public offering. | |
(d) | Three months ended June 30, 2011 reflects the release of uncertain tax reserves, net of tax. | |
(e) | Reflects tax adjustments at an assumed marginal tax rate of 40%. |
Exhibit 7
Booz Allen Hamilton Holding Corporation
Operating Data
Booz Allen Hamilton Holding Corporation
Operating Data
As of | ||||||||
June 30, | ||||||||
(Amounts in millions) | 2011 | 2010 | ||||||
Backlog |
||||||||
Funded |
$ | 2,450 | $ | 2,618 | ||||
Unfunded (1) |
2,956 | 2,576 | ||||||
Priced Options (2) |
5,802 | 4,295 | ||||||
Total Backlog |
$ | 11,208 | $ | 9,489 | ||||
(1) | Incorporates a reduction, estimated by management, to the revenue value of orders for services under two existing single award ID/IQ contracts, 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. |
As of | ||||||||
June 30, | ||||||||
2011 | 2010 | |||||||
Headcount |
||||||||
Total Headcount |
24,989 | 23,848 | ||||||
Consulting Staff Headcount |
22,506 | 21,588 |
Three Months Ended | ||||||||
June 30, | ||||||||
2011 | 2010 | |||||||
Percentage of Total Revenue by Contract Type |
||||||||
Cost-Reimbursable (3) |
53 | % | 51 | % | ||||
Time-and-Materials |
32 | % | 36 | % | ||||
Fixed-Price (4) |
15 | % | 13 | % |
(3) | Includes both cost-plus-fixed-fee and cost-plus-award fee contracts. | |
(4) | Includes fixed-price level of effort contracts. |
Three Months | Three Months | |||||||
Ended | Ended | |||||||
June 30, | March 31, | |||||||
2011 | 2011 | |||||||
Days Sales Outstanding * |
69 | 68 |
* | Calculated as total accounts receivable divided by revenue per day during the relevant fiscal quarter. |