Booz Allen Hamilton Announces Second Quarter Fiscal 2013 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: 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.

« First ‹ Previous ... 2 3 4 5 6 7 8 9 10 Next › Last »