Booz Allen Hamilton Announces Third Quarter Fiscal 2015 Results
Investing to Create Long Term, Sustainable Quality Growth
Increasing Top Line Guidance
Third Quarter revenue of
Adjusted Diluted Earnings per Share of
Quarterly dividend increased by 18 percent to
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
The Company authorized and declared an 18 percent increase in its
regular quarterly dividend, which is now
"We have an outstanding team that continues to execute very well,
consistent with our long term strategy," said
"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
Nine Months Ended
-
Revenue of
$3.93 billion for the nine months endedDecember 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
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
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
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
About
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
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 |
|||||||||||||||||||||
Three Months Ended |
Nine Months Ended |
||||||||||||||||||||
(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 |
||||||||
(Amounts in thousands, except share and per share data) |
|
|
||||||
(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 — |
||||||||
shares at |
||||||||
shares at |
1,499 | 1,440 | ||||||
Non-voting common stock, Class B — |
||||||||
outstanding, 0 shares at |
— |
6 |
||||||
Restricted common stock, Class C — |
||||||||
outstanding, 0 shares at |
— | 9 | ||||||
Special voting common stock, Class E — |
||||||||
and outstanding, 1,851,589 shares at |
6 | 13 | ||||||
Treasury stock, at cost — 1,986,626 shares at |
(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 |
|||||||||
Nine Months Ended |
|||||||||
(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 |
|||||||||||||||||
Three Months Ended |
Nine Months Ended |
||||||||||||||||
(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 |
|
(d) | Reflects tax effect of adjustments at an assumed marginal tax rate of 40%. | |
(e) |
Excludes an adjustment of approximately |
Exhibit 5 |
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As of |
|||||||||
(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 |
||||||
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 |
||||||
2014 | 2013 | |||||
Headcount | ||||||
Total Headcount | 22,329 | 22,713 | ||||
Consulting Staff Headcount | 20,268 | 20,597 | ||||
Three Months Ended |
Nine Months Ended |
|||||||||
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 |
||||||
2014 | 2013 | |||||
Days Sales Outstanding ** | 61 | 66 | ||||
** | Calculated as total accounts receivable divided by revenue per day during the relevant fiscal quarter. |
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