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Booz Allen Hamilton Announces Fourth Quarter And Full Year Fiscal 2012 Results

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.

Exhibits:Exhibit 1: Consolidated Statements of OperationsExhibit 2: Consolidated Statements of Comprehensive IncomeExhibit 3: Consolidated Balance SheetsExhibit 4: Consolidated Statements of Cash FlowsExhibit 5: Basic and Diluted Earnings Per Share CalculationsExhibit 6: Non-GAAP Financial InformationExhibit 7: Operating Data

       
Exhibit 1
Booz Allen Hamilton Holding Corporation
Consolidated Statements of Operations
 
Three Months Ended Fiscal Year Ended
March 31, March 31,
(Amounts in thousands, except per share data) 2012 2011 2012 2011
(Unaudited)
 
Revenue $ 1,540,620 $ 1,492,977 $ 5,859,218 $ 5,591,296
 
Operating costs and expenses:
Cost of revenue 761,928 742,723 2,934,378 2,836,955
Billable expenses 399,181 389,265 1,542,822 1,473,266
General and administrative expenses 247,113 256,495 903,721 881,028
Depreciation and amortization 19,281 20,835 75,205 80,603
Restructuring charge 15,660 - 15,660 -
  -     -     -     -  
Total operating costs and expenses   1,443,163     1,409,318     5,471,786     5,271,852  
 
Operating income 97,457 83,659 387,432 319,444
 
Interest expense (11,555 ) (18,177 ) (48,078 ) (131,892 )
Other, net 673 (33,722 ) 4,520 (59,488 )
       
Income before income taxes 86,575 31,760 343,874 128,064
Income tax expense 35,948 13,690 103,919 43,370
       
Net income $ 50,627   $ 18,070   $ 239,955   $ 84,694  
 
Earnings per common share:
Basic $ 0.38   $ 0.14   $ 1.83   $ 0.74  
Diluted $ 0.36   $ 0.13   $ 1.70   $ 0.66  
 
 
Dividends declared per share $ 0.09   $ -   $ 0.09   $ -  
 
       
Exhibit 2
Booz Allen Hamilton Holding Corporation
Consolidated Statements of Comprehensive Income
 
Three Months Ended Fiscal Year Ended
March 31, March 31,
(Amounts in thousands) 2012 2011 2012 2011
(Unaudited)
 
Net income $ 50,627 $ 18,070 $ 239,955 $ 84,694
Actuarial gain (loss) related to employee benefits, net of taxes   (3,583 )   (1,881 )   (3,262 )   (1,635 )
Comprehensive income $ 47,044   $ 16,189   $ 236,693   $ 83,059  
 
   
Exhibit 3
Booz Allen Hamilton Holding Corporation
Consolidated Balance Sheets
 
March 31, March 31,
(Amounts in thousands, except share and per share data) 2012 2011
 
ASSETS
Current assets:
Cash and cash equivalents $ 484,368 $ 192,631
Accounts receivable, net of allowance 1,077,315 1,111,004
Prepaid expenses 32,090 33,497
Income taxes receivable 46,794 -
Other current assets   17,096     23,311  
Total current assets 1,657,663 1,360,443
 
Property and equipment, net 191,079 173,430
Deferred income taxes 7,790 41,409
Intangible assets, net 223,834 240,238
Goodwill 1,188,004 1,163,549
Other long-term assets   46,421     44,954  
Total assets $ 3,314,791   $ 3,024,023  
 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt $ 42,500 $ 30,000
Accounts payable and other accrued expenses 443,951 406,310
Accrued compensation and benefits 357,872 396,996
Deferred income taxes 59,493 21,231
Other current liabilities   10,630     11,598  
Total current liabilities 914,446 866,135
 
Long-term debt, net of current portion 922,925 964,328
Income tax reserve 55,282 90,474
Other long-term liabilities   236,953     195,836  
Total liabilities 2,129,606 2,116,773
 
Stockholders' equity:

Common stock, Class A — $0.01 par value — authorized, 600,000,000 shares;issued, 128,726,324 shares at March 31, 2012 and 122,784,835 shares at March31, 2011; outstanding, 128,392,549 shares at March 31, 2012 and 122,784,835shares at March 31, 2011

1,287 1,227

Non-voting common stock, Class B — $0.01 par value — authorized,16,000,000 shares; issued and outstanding, 2,487,125 shares at March 31, 2012and 3,053,130 shares at March 31, 2011

25 31

Restricted common stock, Class C — $0.01 par value — authorized,5,000,000 shares; issued and outstanding, 1,533,020 shares at March 31, 2012and 2,028,270 shares at March 31, 2011

15 20

Special voting common stock, Class E — $0.003 par value — authorized,25,000,000 shares; issued and outstanding, 10,140,067 shares at March 31,2012 and 12,348,860 shares at March 31, 2011

30 37

Treasury stock, at cost — 333,775 shares at March 31, 2012 and 0 sharesat March 31, 2011

(5,377 ) -
Additional paid-in capital 898,541 840,058
Retained earnings 299,379 71,330
Accumulated other comprehensive loss   (8,715 )   (5,453 )
Total stockholders' equity 1,185,185 907,250
   
Total liabilities and stockholders' equity $ 3,314,791   $ 3,024,023  
 
   
Exhibit 4
Booz Allen Hamilton Holding Corporation
Consolidated Statements of Cash Flows
 
Fiscal Year Ended
March 31,
(Amounts in thousands) 2012 2011
 
 
Cash flows from operating activities
Net income $ 239,955 $ 84,694
Adjustments to reconcile net income to net cash provided by operating activities:

Gain on sale of state and local transportation business

(4,082 ) -
Transaction costs on sale of state and local transportation business (5,432 ) -
Depreciation and amortization 75,205 80,603
Amortization of debt issuance costs 4,783 6,925
Amortization of original issuance discount on debt 1,097 2,640
Non-cash expense of debt repayments - 43,177

Excess tax benefits from the exercise of stock options

(16,461 ) (15,974 )
Stock-based compensation expense 31,263 48,678
Loss on disposition of property and equipment 376 41
Deferred income taxes 74,785 42,763
 
Change in assets and liabilities:
Accounts receivable, net 25,275 (92,693 )
Income taxes receivable / payable (31,832 ) 2,907
Prepaid expenses 1,407 (951 )
Other current assets 6,215 (12,941 )
Other long-term assets (6,250 ) (6,833 )
Accrued compensation and benefits (35,287 ) 9,804
Accounts payable and accrued expenses 40,822 52,214
Accrued interest (11,801 ) 8,451
Income tax reserve (35,192 ) (10,163 )
Deferred revenue (2,373 ) 612
Postretirement obligations 6,966 5,898
Other long-term liabilities   607     46,487  
Net cash provided by operating activities   360,046     296,339  
 
Cash flows from investing activities
Purchases of property and equipment (76,925 ) (88,784 )
Escrow payments - 1,384
Proceeds from sale of state and local transportation business   23,332     -  
Net cash used in investing activities   (53,593 )   (87,400 )
 
Cash flows from financing activities
Net proceeds from issuance of common stock 8,757 251,135
Cash dividends paid (11,906 ) -
Repayment of debt (30,000 ) (1,637,850 )
Net proceeds from debt - 1,041,808

Excess tax benefits from the exercise of stock options

16,461 15,974
Stock option exercises 7,349 4,790
Repurchases of common stock   (5,377 )   -  
Net cash used in financing activities   (14,716 )   (324,143 )
 
Net increase (decrease) in cash and cash equivalents 291,737 (115,204 )
Cash and cash equivalents -- beginning of period   192,631     307,835  
Cash and cash equivalents -- end of period $ 484,368   $ 192,631  
 
Supplemental disclosures of cash flow information
Cash paid during the period for:
Interest $ 53,993   $ 109,895  
Income taxes, net $ 89,314   $ 7,715  
 
       
Exhibit 5
Booz Allen Hamilton Holding Corporation
Basic and Diluted Earnings Per Share Calculations
 
Three Months Ended Fiscal Year Ended
March 31, March 31,
(Amounts in thousands, except share and per share data) 2012 2011 2012 2011
(Unaudited)
 
Earnings for basic and diluted computations $ 50,325 $ 18,070 $ 238,761 $ 84,694
Adjusted earnings for basic and diluted computations (Non-GAAP) $ 62,201 $ 50,539 $ 227,194 $ 157,511
 
Total weighted-average common shares outstanding for basic computations 131,480,094 127,860,654 130,145,689 114,478,947
Average number of common shares outstanding for diluted computations 141,716,480 140,718,057 140,812,012 127,448,700
 
Earnings per common share
Basic $ 0.38 $ 0.14 $ 1.83 $ 0.74
Diluted $ 0.36 $ 0.13 $ 1.70 $ 0.66
 
Adjusted earnings per common share (Non-GAAP)
Basic $ 0.47 $ 0.40 $ 1.75 $ 1.38
Diluted $ 0.44 $ 0.36 $ 1.61 $ 1.24
 
       
Exhibit 6
Booz Allen Hamilton Holding Corporation
Non-GAAP Financial Information
 
Three Months Ended Fiscal Year Ended
March 31, March 31,
(Amounts in thousands, except share and per share data) 2012 2011 2012 2011
(Unaudited) (Unaudited)
 
Adjusted Operating Income
Operating Income $ 97,457 $ 83,659 $ 387,432 $ 319,444
Certain stock-based compensation expense (a) 2,652 6,816 14,241 39,947
Amortization of intangible assets (b) 4,091 7,161 16,364 28,641
Net restructuring charge (h) 11,182 - 11,182 -
Transaction expenses (c)   -     4,313     -     4,448  
Adjusted Operating Income $ 115,382   $ 101,949   $ 429,219   $ 392,480  
 
EBITDA & Adjusted EBITDA
Net income $ 50,627 $ 18,070 $ 239,955 $ 84,694
Income tax expense 35,948 13,690 103,919 43,370
Interest and other, net 10,882 51,899 43,558 191,380
Depreciation and amortization   19,281     20,835     75,205     80,603  
EBITDA 116,738 104,494 462,637 400,047
Certain stock-based compensation expense (a) 2,652 6,816 14,241 39,947
Net restructuring charge (h) 11,182 - 11,182 -
Transaction expenses (c)   -     4,313     -     4,448  
Adjusted EBITDA $ 130,572   $ 115,623   $ 488,060   $ 444,442  
 
Adjusted Net Income
Net income $ 50,627 $ 18,070 $ 239,955 $ 84,694
Certain stock-based compensation expense (a) 2,652 6,816 14,241 39,947
Net restructuring charge (h) 11,182 - 11,182 -
Transaction expenses (d) - 10,975 - 20,948
Amortization of intangible assets (b) 4,091 7,161 16,364 28,641
Amortization or write-off of debt issuance
costs and write-off of original issue discount 1,181 29,163 4,783 50,102
Net gain on sale of state and local transportation business (e) - - (5,681 ) -
Release of income tax reserves (f) 111 - (35,022 ) (10,966 )
Adjustments for tax effect (g)   (7,643 )   (21,646 )   (18,628 )   (55,855 )
Adjusted Net Income $ 62,201   $ 50,539   $ 227,194   $ 157,511  
 
Adjusted Diluted Earnings Per Share
Weighted-average number of diluted shares outstanding   141,716,480     140,718,057     140,812,012     127,448,700  
Adjusted Net Income Per Diluted Share $ 0.44   $ 0.36   $ 1.61   $ 1.24  
 
Free Cash Flow
Net cash provided by operating activities $ 108,027 $ 15,534 $ 360,046 $ 296,339
Less: Purchases of property and equipment   (11,367 )   (27,351 )   (76,925 )   (88,784 )
Free Cash Flow $ 96,660   $ (11,817 ) $ 283,121   $ 207,555  
 
                   
 
(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 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) Three months ended March 31, 2011 reflects certain costs related to the modification of our credit facilities in connection with the
Refinancing Transaction. Fiscal 2011 reflects debt refinancing costs incurred in connection with the Refinancing Transaction and
certain external administrative and other expenses incurred in connection with the initial public offering.
 
(d) Three months ended March 31, 2011 reflects certain costs related to the modification of our credit facilities and prepayment fees
associated with early repayments on the mezzanine term loan and credit facilities in connection with the Refinancing Transaction.
Fiscal 2011 reflects debt refinancing costs and prepayment fees incurred in connection with the Refinancing Transaction as well as
certain external administrative and other expenses incurred in connection with the initial public offering.
 

(e)

Fiscal 2012 reflects the gain on sale of our state and local transportation business, net of the associated tax benefit of $1.6 million.

 

(f)

Reflects the release of income tax reserves.

 

(g)

Reflects tax effect of adjustments at an assumed marginal tax rate of 40%.

 
(h) Reflects restructuring charges of approximately $15.7 million incurred during the three months ended March 31, 2012, net of
approximately $4.5 million of revenue recognized on recoverable expenses, associated with the cost restructuring plan to reduce certain
personnel and infrastructure costs.
       
Exhibit 7
Booz Allen Hamilton Holding Corporation
Operating Data
 
As of
March 31,
(Amounts in millions) 2012 2011
 
Backlog
 
Funded $ 2,898 $ 2,392
Unfunded (1) 2,681 2,979
Priced Options (2)   5,225     5,553  
Total Backlog $ 10,804   $ 10,924  
                   
 
(1)

Incorporates a reduction, estimated by management, to the revenue value of orders for services under two existing singleaward 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
March 31,
2012 2011
 
Headcount
 
Total Headcount 24,950 25,024
Consulting Staff Headcount 22,447 22,586
                   
 
Three Months Ended

Fiscal Year Ended

March 31, March 31,
2012 2011 2012 2011
 
Percentage of Total Revenue by Contract Type
 
Cost-Reimbursable (3) 55 % 52 % 54 % 51 %
Time-and-Materials 31 % 32 % 31 % 35 %
Fixed-Price (4) 14 % 16 % 15 % 14 %
                   
 
(3) Includes both cost-plus-fixed-fee and cost-plus-award fee contracts.
(4) Includes fixed-price level of effort contracts.
 

Three Months Ended

Three Months Ended

March 31, March 31,
2012 2011  
 
Days Sales Outstanding * 65 68
                   
 
* Calculated as total accounts receivable divided by revenue per day during the relevant fiscal quarter.
 




Stock quotes in this article: BAH 

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