Ralph W. Shrader, Booz Allen’s Chairman, Chief Executive Officer, and President, said “We continued to grow revenue organically in all of our major government markets – defense, intelligence, and civil – and we expanded our commercial and international business this year following the expiration of the non-compete agreement with our spin-off company on July 31, 2011. We grew net income, EBITDA, and earnings per share, demonstrating our ability to manage our business well despite a challenging market environment.”
“Booz Allen is committed to being essential and differentiated. We believe our success comes from superbly serving our clients in their core missions, bringing innovative thinking to bear on client problems and opportunities, and developing the solutions to help clients deliver more and better services to citizens and customers. In areas ranging from cyber and cloud-based services to health, finance, infrastructure, and intelligence-surveillance-reconnaissance, we are seeing continued demand for our services.”
“We are dedicated to delivering value to our current and future stockholders. This is evidenced by our margin improvements and strong cash flow -- and by the regular and special dividends just declared by our Board. We will continue to look at the full range of opportunities to strengthen Booz Allen’s strategic position and to evaluate our use of cash,” Shrader said.
Financial ReviewFourth Quarter 2012 – Booz Allen’s 3.2 percent increase in revenue in the fourth quarter of fiscal 2012 over the prior year period was primarily the result of improved deployment of direct consulting staff against funded backlog under existing contracts and funded backlog under new contracts in all markets, as well as increased other direct costs. In the fourth quarter of fiscal 2012, operating income increased to $97.5 million from $83.7 million in the prior year period and Adjusted Operating Income increased to $115.4 million from $101.9 million in the prior year period. The improvement in Adjusted Operating Income was primarily driven by growth in revenue and increased profitability resulting from decreases in incentive compensation costs, partially offset by unbillable staff compensation costs and unrecoverable expenses. Adjusted Operating Income excludes a restructuring charge of $11.2 million, net of related revenues, associated with one-time termination benefits paid to departing employees as part of a plan to reduce certain personnel and infrastructure costs.