This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Booz Allen Hamilton Announces Second Quarter Fiscal 2013 Results

Stocks in this article: BAH

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: Condensed Consolidated Statements of OperationsExhibit 2: Condensed Consolidated Balance SheetsExhibit 3: Condensed Consolidated Statements of Cash FlowsExhibit 4: Non-GAAP Financial InformationExhibit 5: Operating Data

 
Exhibit 1
Booz Allen Hamilton Holding Corporation
Condensed Consolidated Statements of Operations
       
Three Months Ended Six Months Ended
September 30, September 30,
(Amounts in thousands, except per share data) 2012 2011 2012 2011
(Unaudited) (Unaudited)
 
Revenue $ 1,387,650 $ 1,429,044 $ 2,820,074 $ 2,875,880
 
Operating costs and expenses:
Cost of revenue 702,066 715,642 1,429,436 1,442,473
Billable expenses 353,444 380,911 731,904 773,101
General and administrative expenses 212,498 220,290 405,853 432,125
Depreciation and amortization 17,613 18,536 36,116 36,394
  -     -     -     -  
Total operating costs and expenses   1,285,621     1,335,379     2,603,309     2,684,093  
 
Operating income 102,029 93,665 216,765 191,787
 
Interest expense (17,811 ) (12,194 ) (29,057 ) (24,488 )
Other, net (7,343 ) 4,051 (7,826 ) 3,609
       
Income before income taxes 76,875 85,522 179,882 170,908
Income tax expense 30,759 10,190 71,821 44,440
       
Net income $ 46,116   $ 75,332   $ 108,061   $ 126,468  
 
Earnings per common share:
Basic $ 0.29   $ 0.58   $ 0.75   $ 0.98  
Diluted $ 0.27   $ 0.53   $ 0.69   $ 0.90  
 
 
Dividends declared per share $ 6.59   $ -   $ 8.18   $ -  
 
   
Exhibit 2
Booz Allen Hamilton Holding Corporation
Condensed Consolidated Balance Sheets
 
September 30, March 31,
(Amounts in thousands, except share and per share data) 2012 2012
(Unaudited)
 
ASSETS
Current assets:
Cash and cash equivalents $ 488,979 $ 484,368
Accounts receivable, net of allowance 839,647 1,077,315
Prepaid expenses and other current assets   114,036     95,980  
Total current assets 1,442,662 1,657,663
 
Property and equipment, net of accumulated depreciation 174,640 191,079
Intangible assets, net of accumulated amortization 217,576 223,834
Goodwill 1,187,715 1,188,004
Other long-term assets   67,485     54,211  
Total assets $ 3,090,078   $ 3,314,791  
 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt $ 46,500 $ 42,500
Accounts payable and other accrued expenses 449,199 443,951
Accrued compensation and benefits 396,407 357,872
Other current liabilities   76,948     70,123  
Total current liabilities 969,054 914,446
 
Long-term debt, net of current portion 1,691,088 922,925
Other long-term liabilities   310,402     292,235  
Total liabilities 2,970,544 2,129,606
 
Stockholders' equity:

Common stock, Class A — $0.01 par value — authorized, 600,000,000 shares; issued, 132,209,076 shares at September 30, 2012 and 128,726,324 shares at March 31, 2012; outstanding, 131,819,755 shares at September 30, 2012 and 128,392,549 shares at March 31, 2012

1,322 1,287

Non-voting common stock, Class B — $0.01 par value — authorized, 16,000,000 shares; issued and outstanding, 2,401,854 shares at September 30, 2012 and 2,487,125 shares at March 31, 2012

24 25

Restricted common stock, Class C — $0.01 par value — authorized, 5,000,000 shares; issued and outstanding, 1,401,803 shares at September 30, 2012 and 1,533,020 shares at March 31, 2012

14 15

Special voting common stock, Class E — $0.003 par value — authorized, 25,000,000 shares; issued and outstanding, 8,942,319 shares at September 30, 2012 and 10,140,067 shares at March 31, 2012

27 30

Treasury stock, at cost — 389,321 shares at September 30, 2012 and 333,775 shares at March 31, 2012

(6,226 ) (5,377 )
Additional paid-in capital 94,135 898,541
Retained earnings 38,473 299,379
Accumulated other comprehensive loss   (8,235 )   (8,715 )
Total stockholders' equity 119,534 1,185,185
   
Total liabilities and stockholders' equity $ 3,090,078   $ 3,314,791  
 
   
Exhibit 3
Booz Allen Hamilton Holding Corporation
Condensed Consolidated Statements of Cash Flows
 
Six Months Ended
September 30,
(Amounts in thousands) 2012 2011
(Unaudited)
 
Cash flows from operating activities
Net income $ 108,061 $ 126,468
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 36,116 36,394
Amortization of debt issuance costs 2,672 2,400
Amortization of original issuance discount on debt 646 550
Loss on extinguishment 9,879 -
Excess tax benefits from the exercise of stock options (16,305 ) (15,960 )
Stock-based compensation expense 14,367 18,448
Loss on disposition of property and equipment 956 10
Change in assets and liabilities:
Accounts receivable, net 237,668 71,045
Prepaid expenses and other current assets (2,066 ) (6,674 )
Other long-term assets 5,549 11,847
Accrued compensation and benefits (21,616 ) (49,198 )
Accounts payable and other accrued expenses 1,144 21,135
Accrued interest 4,075 4,694
Other current liabilities 6,488 (6,412 )
Other long-term liabilities   2,114     (28,116 )
Net cash provided by operating activities   389,748     177,117  
 
Cash flows from investing activities
Purchases of property and equipment (14,375 ) (43,640 )
Proceeds from sale of state and local transportation business   -     23,332  
Net cash used in investing activities   (14,375 )   (20,308 )
 
Cash flows from financing activities
Net proceeds from issuance of common stock 3,359 4,695
Cash dividends paid (1,097,773 ) -
Dividend equivalents to option holders (37,731 ) -
Repayment of debt (970,000 ) (15,000 )
Net proceeds from debt 1,710,143 -
Excess tax benefits from the exercise of stock options 16,305 15,960
Stock option exercises 5,784 6,502
Repurchases of common stock   (849 )   (5,377 )
Net cash (used in) / provided by financing activities   (370,762 )   6,780  
 
Net increase in cash and cash equivalents 4,611 163,589
Cash and cash equivalents -- beginning of period   484,368     192,631  
Cash and cash equivalents -- end of period $ 488,979   $ 356,220  
 
Supplemental disclosures of cash flow information
Cash paid during the period for:
Interest $ 17,622   $ 17,085  
Income taxes $ 65,732   $ 50,072  
 
 
Exhibit 4
Booz Allen Hamilton Holding Corporation
Non-GAAP Financial Information
         
Three Months Ended Six Months Ended
September 30, September 30,

(Amounts in thousands, except share and per share data)

2012 2011 2012 2011
(Unaudited) (Unaudited)
 
Adjusted Operating Income
Operating Income $ 102,029 $ 93,665 $ 216,765 $ 191,787
Certain stock-based compensation expense (a) 1,465 2,274 3,858 9,171
Amortization of intangible assets (b) 3,126 4,091 6,259 8,182
Transaction expenses (c)   2,725     -     2,725     -  
Adjusted Operating Income $ 109,345   $ 100,030   $ 229,607   $ 209,140  
 
EBITDA & Adjusted EBITDA
Net income $ 46,116 $ 75,332 $ 108,061 $ 126,468
Income tax expense 30,759 10,190 71,821 44,440
Interest and other, net 25,154 8,143 36,883 20,879
Depreciation and amortization   17,613     18,536     36,116     36,394  
EBITDA 119,642 112,201 252,881 228,181
Certain stock-based compensation expense (a) 1,465 2,274 3,858 9,171
Transaction expenses (c)   2,725     -     2,725     -  
Adjusted EBITDA $ 123,832   $ 114,475   $ 259,464   $ 237,352  
 
Adjusted Net Income
Net income $ 46,116 $ 75,332 $ 108,061 $ 126,468
Certain stock-based compensation expense (a) 1,465 2,274 3,858 9,171
Transaction expenses (c) 2,725 - 2,725 -
Amortization of intangible assets (b) 3,126 4,091 6,259 8,182

Amortization or write-off of debt issuance costs and write-off of original issue discount

8,628 1,206 9,826 2,400
Net gain on sale of state and local transportation business (d) - (5,681 ) - (5,681 )
Release of income tax reserves (e) - (23,584 ) - (24,048 )
Adjustments for tax effect (f)   (6,378 )   (3,028 )   (9,068 )   (7,901 )
Adjusted Net Income $ 55,682   $ 50,610   $ 121,661   $ 108,591  
 
Adjusted Diluted Earnings Per Share
Weighted-average number of diluted shares outstanding   144,249,162     141,259,964     143,648,477     140,600,986  
Adjusted Net Income Per Diluted Share (g) $ 0.39   $ 0.36   $ 0.85   $ 0.77  
 
Free Cash Flow
Net cash provided by operating activities $ 315,705 $ 123,273 $ 389,748 $ 177,117
Less: Purchases of property and equipment   (10,406 )   (26,039 )   (14,375 )   (43,640 )
Free Cash Flow $ 305,299   $ 97,234   $ 375,373   $ 133,477  
 
                   
 

(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 Recapitalization Transaction consummated on July 31, 2012.

 

(d) Three and six months ended September 30, 2011 reflects the gain on sale of our state and local transportation business, net of the associated tax benefit of $1.6 million.

 

(e) Reflects the release of income tax reserves.

 

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

 

(g) Excludes an adjustment of approximately $7.6 million and $8.9 million of net earnings for the three and six months ended September 30, 2012, 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
September 30,
(Amounts in millions) 2012 2011
 
Backlog
 
Funded $ 3,516 $ 3,438
Unfunded (1) 2,785 3,349
Priced Options (2)   6,147     6,068  
Total Backlog $ 12,448   $ 12,855  
 

(1) Reflects a reduction 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
September 30,
2012 2011
 
Book-to-Bill * 2.6 2.2
 
* 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
September 30,
2012 2011
 
Headcount
 
Total Headcount 23,963 25,804
Consulting Staff Headcount 21,556 23,278
 
 
Three Months Ended Six Months Ended
September 30, September 30,
2012 2011 2012 2011
 
Percentage of Total Revenue by Contract Type
 
Cost-Reimbursable (3) 57% 54% 57% 54%
Time-and-Materials 29% 31% 29% 31%
Fixed-Price (4) 14% 15% 14% 15%
 

(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

September 30, September 30,
2012 2011
 
Days Sales Outstanding ** 57 68
 
 
** Calculated as total accounts receivable divided by revenue per day during the relevant fiscal quarter.
 




9 of 10

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,380.41 +263.17 1.63%
S&P 500 1,886.76 +24.00 1.29%
NASDAQ 4,258.4380 +41.0480 0.97%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs