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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Booz Allen Hamilton Announces Third 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 December 31,

Nine Months Ended December 31,
(Amounts in thousands, except per share data) 2012 2011 2012 2011
(Unaudited) (Unaudited)
 
Revenue $ 1,392,695 $ 1,442,718 $ 4,212,769 $ 4,318,598
 
Operating costs and expenses:
Cost of revenue 692,920 729,977 2,122,356 2,172,450
Billable expenses 382,520 370,540 1,114,424 1,143,641
General and administrative expenses 182,532 224,483 588,385 656,608
Depreciation and amortization 18,127 19,530 54,243 55,924
  -   -   -   -
Total operating costs and expenses   1,276,099   1,344,530   3,879,408   4,028,623
 
Operating income 116,596 98,188 333,361 289,975
 
Interest expense (21,731) (12,035) (50,788) (36,523)
Other, net 134 238 (7,692) 3,847
       
Income before income taxes 94,999 86,391 274,881 257,299
Income tax expense 38,815 23,531 110,636 67,971
       
Net income $ 56,184 $ 62,860 $ 164,245 $ 189,328
 
Earnings per common share:
Basic $ 0.41 $ 0.48 $ 1.16 $ 1.46
Diluted $ 0.38 $ 0.44 $ 1.08 $ 1.34
 
 
Dividends declared per share $ 0.09 $ - $ 8.27 $ -
 
 
Exhibit 2 Booz Allen Hamilton Holding Corporation Condensed Consolidated Balance Sheets
               
(Amounts in thousands, except share and per share data)

December 31, 2012

March 31, 2012

(Unaudited)

 
ASSETS
Current assets:
Cash and cash equivalents $ 317,578 $ 484,368
Accounts receivable, net of allowance 980,287 1,077,315
Prepaid expenses and other current assets   98,787   95,980
Total current assets 1,396,652 1,657,663
 
Property and equipment, net of accumulated depreciation 170,216 191,079
Intangible assets, net of accumulated amortization 241,041 223,834
Goodwill 1,276,565 1,188,004
Other long-term assets   66,432   54,211
Total assets $ 3,150,906 $ 3,314,791
 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt $ 51,031 $ 42,500
Accounts payable and other accrued expenses 423,291 443,951
Accrued compensation and benefits 409,940 357,872
Other current liabilities   92,035   70,123
Total current liabilities 976,297 914,446
 
Long-term debt, net of current portion 1,675,364 922,925
Other long-term liabilities   314,723   292,235
Total liabilities 2,966,384 2,129,606
 
Stockholders' equity:
Common stock, Class A — $0.01 par value — authorized, 600,000,000 shares;

issued, 135,965,937 shares at December 31, 2012 and 128,726,324 sharesat March 31, 2012; outstanding, 135,576,616 shares at December 31, 2012and 128,392,549 shares at March 31, 2012

1,359 1,287
Non-voting common stock, Class B — $0.01 par value — authorized,

16,000,000 shares; issued and outstanding, 1,457,350 shares at December 31,2012 and 2,487,125 shares at March 31, 2012

15 25
Restricted common stock, Class C — $0.01 par value — authorized,

5,000,000 shares; issued and outstanding, 1,237,436 shares at December 31,2012 and 1,533,020 shares at March 31, 2012

12 15
Special voting common stock, Class E — $0.003 par value — authorized,

25,000,000 shares; issued and outstanding, 7,478,522 shares at December 31,2012 and 10,140,067 shares at March 31, 2012

23 30

Treasury stock, at cost — 389,321 shares at December 31, 2012 and 333,775

shares at March 31, 2012 (6,226) (5,377)
Additional paid-in capital 115,231 898,541
Retained earnings 82,419 299,379
Accumulated other comprehensive loss   (8,311)   (8,715)
Total stockholders' equity   184,522   1,185,185
Total liabilities and stockholders' equity $ 3,150,906 $ 3,314,791
 
 
Exhibit 3 Booz Allen Hamilton Holding Corporation Condensed Consolidated Statements of Cash Flows
                 

Nine Months Ended December 31,

(Amounts in thousands) 2012 2011
(Unaudited)
 
Cash flows from operating activities
Net income $ 164,245 $ 189,328
Adjustments to reconcile net income to net cash provided by operating activities:
Gain on sales of businesses (254) (4,082)
Depreciation and amortization 54,243 55,924
Amortization of debt issuance costs 4,339 3,602
Amortization of original issuance discount on debt 1,078 826
Loss on extinguishment 9,879 -
Excess tax benefits from the exercise of stock options (26,297) (16,397)
Stock-based compensation expense 19,863 24,448
Loss on disposition of property and equipment 956 -
 
Change in assets and liabilities:
Accounts receivable 174,424 37,534
Prepaid expenses and other current assets 26,673 9,796
Other long-term assets 8,252 19,232
Accrued compensation and benefits (1,805) (254)
Accounts payable and other accrued expenses (54,913) (25,695)
Transaction costs on acquisitions and dispositions (4,417) (5,432)
Accrued interest 6,056 5,698
Other current liabilities 13,821 (4,457)
Other long-term liabilities   2,791   (38,052)
Net cash provided by operating activities   398,934   252,019
 
Cash flows from investing activities
Purchases of property and equipment (20,657) (65,558)
Proceeds from sales of businesses 625 23,332
Cash paid for business acquisitions, net of cash acquired   (157,995)   -
Net cash used in investing activities   (178,027)   (42,226)
 
Cash flows from financing activities
Net proceeds from issuance of common stock 4,928 6,821
Cash dividends paid (1,110,011) -
Dividend equivalents paid to option holders (49,765) -
Repayment of debt (981,625) (22,500)
Net proceeds from debt issuance 1,710,143 -
Excess tax benefits from the exercise of stock options 26,297 16,397
Stock option exercises 13,185 7,262
Repurchases of common stock   (849)   (5,377)
Net cash (used in) / provided by financing activities   (387,697)   2,603
 
Net (decrease) increase in cash and cash equivalents (166,790) 212,396
Cash and cash equivalents -- beginning of period   484,368   192,631
Cash and cash equivalents -- end of period $ 317,578 $ 405,027
 
Supplemental disclosures of cash flow information
Cash paid during the period for:
Interest $ 35,036 $ 26,394
Income taxes $ 79,352 $ 69,224
 
 
Exhibit 4 Booz Allen Hamilton Holding Corporation Non-GAAP Financial Information
                           
Three Months Ended December 31, Nine Months Ended December 31,
(Amounts in thousands, except share and per share data) 2012 2011 2012 2011
(Unaudited) (Unaudited)
 
Adjusted Operating Income
Operating Income $ 116,596 $ 98,188 $ 333,361 $ 289,975
Certain stock-based compensation expense (a) 1,086 2,418 4,944 11,589
Amortization of intangible assets (b) 3,125 4,091 9,384 12,273
Transaction expenses (c) - - 2,725 -
Adjusted Operating Income $ 120,807 $ 104,697 $ 350,414 $ 313,837
 
EBITDA & Adjusted EBITDA
Net income $ 56,184 $ 62,860 $ 164,245 $ 189,328
Income tax expense 38,815 23,531 110,636 67,971
Interest and other, net 21,597 11,797 58,480 32,676
Depreciation and amortization 18,127 19,530 54,243 55,924
EBITDA 134,723 117,718 387,604 345,899
Certain stock-based compensation expense (a) 1,086 2,418 4,944 11,589
Transaction expenses (c) - - 2,725 -
Adjusted EBITDA $ 135,809 $ 120,136 $ 395,273 $ 357,488
 
Adjusted Net Income
Net income $ 56,184 $ 62,860 $ 164,245 $ 189,328
Certain stock-based compensation expense (a) 1,086 2,418 4,944 11,589
Transaction expenses (c) - - 2,725 -
Amortization of intangible assets (b) 3,125 4,091 9,384 12,273
Amortization or write-off of debt issuance
costs and write-off of original issue discount 1,667 1,202 11,493 3,602
Net gain on sale of state and local transportation business (d) - - - (5,681)
Release of income tax reserves (e) - (11,085) - (35,133)
Adjustments for tax effect (f) (2,351) (3,084) (11,419) (10,985)
Adjusted Net Income $ 59,711 $ 56,402 $ 181,372 $ 164,993
 
Adjusted Diluted Earnings Per Share
Weighted-average number of diluted shares outstanding 145,063,515 141,799,725 144,116,057 140,996,611
Adjusted Net Income Per Diluted Share (g) $ 0.41 $ 0.40 $ 1.26 $ 1.17
 
Free Cash Flow
Net cash provided by operating activities $ 9,186 $ 74,902 $ 398,934 $ 252,019
Less: Purchases of property and equipment (6,282) (21,918) (20,657) (65,558)
Free Cash Flow $ 2,904 $ 52,984 $ 378,277 $ 186,461
 
 
(a)

Reflects stock-based compensation expense for options for Class A Common Stock and restricted shares, in each case, issued inconnection with the Acquisition of our Company by The Carlyle Group (the Acquisition) under the Officers' Rollover Stock Plan. Alsoreflects stock-based compensation expense for Equity Incentive Plan Class A Common Stock options issued in connection with theAcquisition 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)

Nine months ended December 31, 2011 reflects the gain on sale of our state and local transportation business, net of the associated taxbenefit 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 $475,000 and $9.0 million of net earnings for the three and nine months ended December 31,2012, 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 December 31,
(Amounts in millions) 2012 2011
 
Backlog (1)
 
Funded $ 3,152 $ 2,971
Unfunded (2) 3,614 3,717
Priced Options (3)   6,156   5,527
Total Backlog $ 12,922 $ 12,215
 
(1)

Backlog presented in the above table includes backlog acquired from the Company's acquisition of ARINC's Defense SystemsEngineering and Support (DSES) division made during the three months ended December 31, 2012. Total backlog acquiredfrom DSES is approximately $1.53 billion as of December 31, 2012.

(2)

Reflects a reduction by management to the revenue value of orders for services under two existing single award ID/IQcontracts the Company has had for several years, based on an established pattern of funding under these contracts by theU.S. government.

(3) Amounts shown reflect 100% of the undiscounted revenue value of all priced options.
 
 
As of December 31,
2012 2011
 
Book-to-Bill * 0.2 0.6
 

* Book-to-bill presented excludes the effects of acquisitions made during the three months ended December 31, 2012. It 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 December 31,
2012 2011
 
Headcount
 
Total Headcount 24,791 25,825
Consulting Staff Headcount 22,393 23,255
 
 
Three Months Ended December 31, Nine Months Ended December 31,
2012 2011 2012 2011
 
Percentage of Total Revenue by Contract Type
 
Cost-Reimbursable (4) 58% 54% 57% 54%
Time-and-Materials 27% 31% 28% 31%
Fixed-Price (5) 15% 15% 15% 15%
 
(4) Includes both cost-plus-fixed-fee and cost-plus-award fee contracts.
(5) Includes fixed-price level of effort contracts.
 
 

Three MonthsEndedDecember 31,2012

Three Months Ended December 31,2011

Days Sales Outstanding ** 63 69
 
 
** Calculated as total accounts receivable divided by revenue per day during the relevant fiscal quarter.
 




8 of 9

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 17,039.49 +60.36 0.36%
S&P 500 1,992.37 +5.86 0.30%
NASDAQ 4,532.1040 +5.6220 0.12%

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