Anteon Announces First-Quarter Operating Results.Business Editors FAIRFAX Fairfax, city (1990 pop. 19,622), historic seat of Fairfax co., NE Va., a residential suburb of Washington, D.C.; inc. 1892, as a city 1961 (at which time it became independent and no longer included in a county). There is some light manufacturing. , Va.--(BUSINESS WIRE)--May 2, 2002 Anteon International Corporation (NYSE NYSE See: New York Stock Exchange :ANT), a leading information technology and systems engineering and integration company, announced today its operating results for the first quarter ended March 31, 2002. Pro Forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma Results Revenues for the first quarter were $192.6 million, reflecting organic growth of 20.7% over revenues of $159.5 million for the comparable period in 2001. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. of $14.5 million increased 38.7% from $10.5 million for the first quarter of 2001. The operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: in the first quarter of 2002 was 7.5% compared to 6.6% for the comparable period last year. Fully diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of for the quarter were $0.19, compared to the published analysts' estimates of $0.16-$0.17. Earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
Operating results are provided on a reported and pro forma basis. A reconciliation between the reported and pro forma financials is provided as an attachment See attach a file. to this press release. For the first quarter of 2002, the adjustments include $1.9 million of costs associated with the elimination of interest rate swaps Interest Rate Swap A deal between banks or companies where borrowers switch floating-rate loans for fixed rate loans in another country. These can be either the same or different currencies. related to debt retired with a portion of the proceeds from Anteon's recent initial public offering; a $185,000 write down of deferred bank fees associated with the early retirement of term debt; and the pro forma effect of the IPO (Initial Public Offering) The first time a company offers shares of stock to the public. While not a computer term per se, many founders, employees and insiders of computer companies have found this acronym more exciting than any tech term they ever heard. on the Company's capital structure. Adjustments were made in the first quarter of 2001 to provide comparability to the first quarter 2002 results. These adjustments include the pro forma effect of the acquisition of the training division of SIGCOM SIGCOM Signal Command SIGCOM Signal Communication Systems and Supply, Inc. , Inc. in July July: see month. 2001; the effect of the implementation of FAS 141/142; the effect of the sale or closure of non-core businesses; and certain non-recurring items. Two additional non-recurring IPO-related expenses will be reflected in the second-quarter 2002 results due to the April 15, 2002 redemption The liberation of an estate in real property from a mortgage. Redemption is the process by which land that has been mortgaged or pledged is bought back or reclaimed. It is accomplished through a payment of the debt owed or a fulfillment of the other conditions. of $25 million of Anteon's 12% Senior Subordinated Subordinated A claim ranked lower in priority than other claims. Common stock claims are always subordinated to debt. Notes. These additional expenses are the write down of remaining deferred financing fees and a premium paid in connection with the redemption. Reported Results Revenues for the first quarter increased 18.6% to $192.6 million from $162.4 million for the same period in 2001. Net income increased to $4.1 million, or $0.145 per share on a fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. basis, from a net loss of $670,000 in the first quarter of 2001. Operating income increased 137.8% to $14.5 million from $6.1 million over the comparable period in 2001. EBITDA for the first quarter increased 53.1% to $16.2 million from $10.6 million during the same period in 2001. New Business Anteon generated $260 million of new business orders during the first quarter and currently has approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $1 billion in proposals under evaluation. Included in these new orders are approximately $36 million of software development, integration and technology services contracts for the Defense Finance and Accounting Service The Defense Finance and Accounting Service (DFAS), an agency of the United States Department of Defense, provides finance and accounting services for the military and other members of defense. In FY 2004, DFAS:
 `stĭks) [Gr.,=the facts about hearing], the science of sound, including its production, propagation, and effects. and underwater Underwater1. The condition a call option is in when its strike price is higher than the market price of the underlying stock. 2. The condition a put option is in when its strike price is lower than the market price of the underlying stock. shock studies and technology services; and a $70 million award to support undersea weapons programs. Anteon also continued its support for the AEGIS ship program with a new $27 million award for technical support. CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Comments Joseph M. Kampf, President and Chief Executive Officer of Anteon, said: "Anteon's first-quarter results reflect continued strong organic revenue growth and margin improvement. Our performance was driven by the considerable demand for our services in the federal government marketplace. We will continue to emphasize organic growth and apply our disciplined process of identifying acquisition candidates that can be integrated into Anteon's culture and technical skills base. "Our initial public offering in March was a key event in our corporate history. Proceeds to Anteon from the offering of approximately $78 million were used to reduce debt, strengthening our balance sheet for future growth." Company Guidance Anteon expects to meet published analysts' estimates for the second quarter of 2002, including a revenue range of $195 million to $197 million, and an EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. consensus estimate of $0.19 on an adjusted basis. The Company also remains comfortable with published analysts' consensus estimates for revenues and earnings in the third and fourth quarters of 2002. Conference Call Anteon has scheduled a conference call for 11:00 a.m. Eastern Daylight For other uses, see Daylight (disambiguation). Daylight or the light of day is the combination of all direct and indirect sunlight outdoors during the daytime (and perhaps twilight). Time TODAY, during which senior management will discuss first-quarter results and respond to questions. Interested parties may access the call by dialing (800) 289-0485 (U.S.) or (913) 981-5518 (international), and entering confirmation code #414971. The conference call will be Webcast (listen only) simultaneously via Anteon's Website at www.anteon.com. Interested parties should dial in or log on approximately ten minutes prior to the start time of the call. A telephone replay of the call will also be available beginning at 2:00 p.m. Eastern Daylight Time on May 2, 2002 until midnight on May 7, 2002. To access the replay, call (888) 203-1112 (U.S.) or (719) 457-0820 (international). The confirmation code for access to the live call and the replay is 414971. A replay will be also available on Anteon's Website approximately one hour after the conclusion of the call. About Anteon Anteon, headquartered in Fairfax, Virginia Fairfax is an independent city forming an enclave within the confines of Fairfax County, in the Commonwealth of Virginia. Although politically independent of the surrounding county, the City of Fairfax is nevertheless its county seatGR6. , is a leading information technology and systems engineering and integration company that has provided support to the U.S. federal government and international sectors for over 25 years. With 2001 revenue of $715 million, the Company has more than 5,400 employees in over 80 offices worldwide and frequently ranks among the top information technology integrators based on independent surveys. For more information, visit www.anteon.com. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statement under the Private Securities Litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. Reform Act of 1995 The statements contained in this release which are not historical facts are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in, or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. by forward-looking statements. These risks and uncertainties include the Company's dependence on continued funding of U.S. government programs, government contract procurement The fancy word for "purchasing." The procurement department within an organization manages all the major purchases. and termination The point where a line, channel or circuit ends. See SCSI termination and hybrid. risks including risks associated with protests, and other risks described in the Company's Securities and Exchange Commission filings. The Company believes that EBITDA is an important metric for effective management of the business, for valuing companies in the information technology services sector, and as a widely accepted supplemental indicator of a company's ability to incur To become subject to and liable for; to have liabilities imposed by act or operation of law. Expenses are incurred, for example, when the legal obligation to pay them arises. An individual incurs a liability when a money judgment is rendered against him or her by a court. and service debt. However, EBITDA should not be considered by an investor as an alternative to net income or operating income as an indicator of our operating performance or cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses , or as an alternative to cash flows as a measure of liquidity. Shares of Anteon began trading on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. on March 12, 2002 under the symbol "ANT." Anteon provided the NYSE with additional information upon which the NYSE relied in listing the company. Such information was included in Anteon's listing application and is available to the public upon request.
ANTEON CORPORATION AND SUBSIDIARIES
PRO FORMA INCOME STATEMENTS
for the three months ended March 31, 2001 and 2002
(amounts in thousands)
Three Months Ended Three Months Ended
March 2001 March 2002 % Change
------------------ ------------------ --------
Revenues $ 159,546 $ 192,629 20.7%
Operating expenses:
Cost of Revenues 139,990 167,020 19.3%
General and Admini-
strative Expenses 8,403 10,615 26.3%
Amortization of Non-
compete Agreement 209 - -100.0%
Goodwill Amortization 0 - - %
Other Amortization 475 477 0.4%
Cost of Acquisitions - - - %
------------------ ------------------
Operating Income 10,469 14,517 38.7%
Other Income - 5 - %
Interest Expense 4,717 3,301 -30.0%
Minority Interest (1) (9) - %
------------------ ------------------
Pretax Income 5,751 11,212 95.0%
Income Tax 2,242 4,375 95.1%
------------------ ------------------
Net income (loss) 3,509 6,837 94.8%
Extraordinary Item - - - %
------------------ ------------------
Net income (loss)
after Extraordinary
Item $ 3,509 $ 6,837 94.8%
================== ==================
EBITDA 13,281 16,205 22.0%
Basic Shares 33,216 33,477 0.8%
Diluted Shares 34,053 36,307 6.6%
EPS, Basic $ 0.11 $ 0.20 93.3%
EPS, Diluted $ 0.10 $ 0.19 82.7%
ANTEON CORPORATION AND SUBSIDIARIES
INCOME STATEMENTS
for the three months ended March 31, 2001 and 2002
(amounts in thousands)
Three Months Ended Three Months Ended
March 2001 March 2002 % Change
------------------ ------------------ --------
Revenues $ 162,366 $ 192,629 18.6%
Operating expenses:
Cost of Revenues 143,154 167,020 16.7%
General and Admini-
strative Expenses 10,905 10,615 -2.7%
Amortization of Non-
compete Agreement 209 - -100.0%
Goodwill Amortization 1,446 - -100.0%
Other Amortization 546 477 -12.7%
Cost of Acquisitions - - - %
------------------ ------------------
Operating Income 6,106 14,517 137.8%
Gains on sales and
closure of business
Other Income - 6 - %
Interest Expense 6,961 7,430 6.7%
Minority Interest (1) (9) - %
------------------ ------------------
Pretax Income (856) 7,084 - %
Income Tax (186) 2,765 - %
------------------ ------------------
Net income (loss) (670) 4,319 - %
Extraordinary Item - 185 - %
------------------ ------------------
Net income (loss)
after Extraordinary
Item $ (670) $ 4,134 - %
================== ==================
EBITDA 10,583 16,205 53.1%
Cash flow from
Operations 2,393 (11,007) -559.9%
Basic Shares 23,786 26,127 9.8%
Diluted Shares 23,786 28,548 20.0%
EPS, Basic $ (0.03) 0.16
EPS, Diluted $ (0.03) 0.145
RECONCILIATION BETWEEN REPORTED AND PRO FORMA
Q1 FY 2001 vs Q1 FY 2002
($ M)
1st Quarter FY 2001
------------------------------------------------------------
FAS 141/ Adjusted
142 for
& Non- Sold or Capital
Recurring Closed Struc- Pro
Reported SIGCOM(1) Items(2) Oper.(3) Subtotal ture(4) Forma
------------------------------------------------------------
Revenue 162.4 4.2 0.0 (7.1) 159.5 - 159.5
Operating
Income 6.1 0.9 3.5 (0.0) 10.5 - 10.5
Margin 3.8% 20.7% 0.6% 6.6%
Interest
Expense 7.0 0.3 - (0.1) 7.2 (2.4) 4.8
Income Tax (0.2) 0.2 1.1 0.1 1.2 1.0 2.2
Extraord-
inary Item - - - - 0.0 - -
Net Income (0.7) 0.4 2.4 0.0 2.1 1.4 3.5
Diluted
Shares 23.8 23.8 34.1
EPS ($ 0.03) $ 0.09 $ 0.10
1st Quarter FY 2002
------------------------------------------------------------
Adjusted
IPO for
Adjust Capital Pro
Reported ments(5) Subtotal Structure(6) Forma
------------------------------------------------------------
Revenue 192.6 - 192.6 - 192.6
Operating Income 14.5 - 14.5 - 14.5
Margin 7.5% 0.0% 7.5%
Interest Expense 7.4 (1.9) 5.5 (2.2) 3.3
Income Tax 2.8 0.7 3.5 0.9 4.4
Extraordinary Item 0.2 (0.2) - - -
Net Income 4.1 1.4 5.5 1.3 6.8
Diluted Shares 28.5 28.5 36.3
EPS $ 0.14 $ 0.19 $ 0.19
1) Reflects Anteon's acquisition of the training division of SIGCOM in
Q3 2001.
2) Reflects the FAS 141/142 accounting change as well as certain one
time charges.
3) Reflects Anteon's sale of CITE and IMC Commercial, as well as the
closures of DisplayCheck and STSR.
4) Assumes IPO completed on January 1, 2001(for comparability purposes
only) and proceeds used to pay down debt. Diluted share count
reflects adjustments for new shares issued.
5) Includes $1.9 million for costs associated with the elimination of
interest rate swaps related to debt retired with a portion of IPO
proceeds and a $185 thousand write down of deferred bank fees
associated with the early retirement of term loan debt.
6) Reflects the interest expense related to debt extinguished upon IPO
(assuming transaction occurred on January 1, 2002); increased shares
reflect pro rated addition upon IPO of 3.7 million new shares and
3.7 million shares resulting from the conversion of the Azimuth
convertible note as well as increased dilution of options
(.4 million share equiv).
|
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion