Engility Holdings, Inc. (NYSE: EGL) today announced financial results for the second quarter ended June 28, 2013.
Second Quarter 2013 Results
Total revenue for the second quarter of 2013 was $377 million and operating income was $29 million. Adjusted operating income for the second quarter was $33 million. Operating margin for the second quarter of 2013 was 7.8% and adjusted operating margin for the same period was 8.6%. Net income attributable to Engility was $13 million, or $0.74 per diluted share. Adjusted net income was $15 million, or $0.85 per diluted share. Our adjusted numbers exclude the impact of legal and settlement costs. Information about Engility’s use of non-GAAP financial information is provided below under “Non-GAAP Measures”.
“I am pleased with our second quarter results as we continued to execute effectively against our strategic plan. During the quarter, we won several additional contract vehicles, achieved sequential revenue growth and delivered strong bottom-line results,” said Tony Smeraglinolo, President and CEO of Engility. “We also are expecting to realize increased cash flow beginning in the second half of 2013 from the implementation of our recent cash collection initiatives, as well as from the reduction in required principal payments and lower borrowing costs that we secured in our new credit facility.”“We continue to successfully execute on our customers’ mission priorities in a cost effective manner. We have received feedback from certain of our customers that the efficiencies created by our business model are allowing them to complete their entire contract missions within their reduced budgets. We remain excited by our pipeline of opportunities, broad portfolio of existing contracts and our differentiated low-cost business model, all of which we believe to be strategically important to market success in today’s budget constrained environment. Despite these successes, sequestration and contract award delays are beginning to impact our business.”