Anteon Reports Exceptional 2nd Quarter 2005 Results - Raises Full Year 2005 Guidance.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. -- Anteon International Corporation, NYSE NYSE See: New York Stock Exchange : ANT --Revenues of $368.6 million, up 21.2%; 16.8% organic --Operating margin was 9.3% --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. 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. of $0.53, up 35.9% --New orders exceeded $500 million Anteon International Corporation, NYSE: ANT, a leading information technology, and systems engineering and integration company, announced today its operating results for the second quarter ended June June: see month. 30, 2005. Financial Results Revenues for the second quarter of 2005 increased 21.2% to $368.6 million from $304.2 million for the comparable period in 2004. The organic revenue growth rate was 16.8%. 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. for the second quarter increased 38.3% to $34.5 million from $24.9 million for the comparable period in 2004. Operating income margin increased to 9.3%, including some upward contract profit adjustments. The operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: was 8.2% for the comparable period in 2004. Net income for the second quarter increased 36.2% to $20.0 million versus $14.7 million in the comparable period in 2004. Earnings per share on a fully diluted basis was $0.53 versus $0.39 in the comparable quarter in 2004, an increase of 35.9%. 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 for the second quarter was $19.9 million, and days sales outstanding In accountancy, Days Sales Outstanding is a company's average collection period. A low figure indicates that the company collects its outstanding receivables quickly. Typically it is looked at either quarterly or yearly (90 or 365 days). improved 4 days during the quarter to 73. A reconciliation between certain non-GAAP financial measures and reported financial results is provided as an attachment See attach a file. to this press release. New Business Anteon generated $510 million of new business orders during the second quarter. New orders for the quarter were largely driven by new task order activity on existing delivery order contracts. Additionally, contracts awarded during the second quarter included: --A $100 million ceiling value contract with the Air Force Research Laboratory to integrate and transition technology from the lab through test and evaluation; --A $33 million ceiling value contract with the US Navy PEO Ships office to support its mission of combat system acquisition; and --A $27 million ceiling value contract with the Naval Air Systems Command The Naval Air Systems Command, or NAVAIR, is the part of the United States Navy which provides materiel support for naval aircraft and airborne weapon systems, such as guided missiles. NAVAIR was established in 1966 as the successor to the Navy's Bureau of Naval Weapons (BuWeps). to provide simulation The mathematical representation of the interaction of real-world objects. See scientific application and simulator. Simulation A broad collection of methods used to study and analyze the behavior and performance of actual or theoretical systems. and training services. 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, "The second quarter of 2005 was an exceptional quarter for Anteon, our strongest quarter ever. Anteon has met or exceeded each and every key financial target; we are very pleased with our cumulative first half performance as well. We are raising our guidance for the remainder of the year as a result of our strong performance. Anteon's full year 2005 revenue guidance is now between $1.465 - $1.490 billion and full 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 is now expected to meet or exceed $2.01. We are well positioned to take advantage of our market's steady growth and opportunity." Company Guidance The Company provides guidance for the third quarter 2005 and updates its full year 2005 guidance as summarized in the table below.
2005 FINANCIAL GUIDANCE
Dollars and shares in millions, except per share amounts
--------------------------------------------------------
Q3 2005 Full Year 2005
------- --------------
Revenues $365-$380 $1,465-$1,490
Weighted Average Shares
Outstanding 38.0 37.9
Tax Rate 38.5% 38.5%
Fully Diluted Earnings
Per Share Meet or exceed $0.50 Meet or exceed $2.01
Conference Call Anteon has scheduled a conference call for 10:00 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, July July: see month. 27, 2005, during which senior management will discuss second quarter results and respond to questions. The conference call will be Webcast listen only via Anteon's website at www.anteon.com. A telephone replay of the call also will be available beginning at 1:00 p.m. Eastern Daylight Time on July 27, 2005, until midnight August 3, 2005. To access the replay, call 877-519-4471 U.S. or 973-341-3080 International. The confirmation code for access to the replay is 6272548. A replay also will be available on Anteon's website shortly 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 systems integrator An individual or organization that builds systems from a variety of diverse components. With increasing complexity of technology, more customers want complete solutions to information problems, requiring hardware, software and networking expertise in a multivendor environment. , providing information technology and engineering solutions to the U.S. Federal government and international customers. Anteon designs, integrates, maintains, and upgrades state-of-the-art systems for national defense, intelligence, homeland security Noun 1. Homeland Security - the federal department that administers all matters relating to homeland security Department of Homeland Security executive department - a federal department in the executive branch of the government of the United States , and other high priority government missions. Anteon also provides many of its government clients with the systems analysis, integration, and program management skills necessary to manage the development and operations of their mission critical systems. The Company was founded in 1976 and currently employs approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 9,300 employees in more than 100 offices worldwide. Anteon consistently ranks among the top information technology integrators based on independent surveys, and has been named to the Forbes Forbes , B(ertie) C(harles) 1880-1954. American publisher and businessman who founded and edited (1916-1954) Forbes magazine. His son Malcolm Stevenson Forbes List of the 400 Best Big Companies in 2005, earning distinction on the Forbes Platinum platinum (plăt`ənəm), metallic chemical element; symbol Pt; at. no. 78; at. wt. 195.08; m.p. 1,772°C;; b.p. 3,827±100°C;; sp. gr. 21.45 at 20°C;; valence +2 or +4. List. Anteon is listed on the Standards & Poor's MidCap mid·cap adj. 1. Or or relating to corporations whose retained earnings and outstanding shares of common stock have a value between those of small cap companies and large cap corporations. 2. 400 Index. 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 Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and 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. The Company has tried, whenever possible, to identify these forward-looking statements using words such as "projects," "anticipates," "believes," "estimates," "expects," "plans," "intends," and similar expressions. Similarly, statements herein that describe the Company's business strategy, outlook, objectives, plans, intentions or goals are also forward-looking statements. The risks and uncertainties involving forward-looking statements 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. These statements reflect the Company's current beliefs and are based upon information currently available to it. Be advised that developments subsequent to this release are likely to cause these statements to become outdated out·dat·ed adj. Out-of-date; old-fashioned. outdated Adjective old-fashioned or obsolete Adj. 1. with the passage of time. The Company does not currently intend, however, to update the guidance provided today prior to its next earnings release.
ANTEON INTERNATIONAL CORPORATION
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the three months ended June 30, 2005 and 2004
($ in thousands, except EPS)
Three Three
Months Months
Ended Ended
June June Percentage
2005 2004 Change
--------- --------- ----------
Revenues $ 368,595 $ 304,161 21.2%
Costs of revenues 314,981 262,195
General and administrative
expenses 18,470 16,372
Amortization of intangible assets 686 680
--------- ---------
Operating income 34,458 24,914 38.3%
Operating margin 9.3% 8.2%
Other income 34 2
Interest expense 2,106 1,950
Minority interest (24) (30)
--------- ---------
Pretax income 32,362 22,936 41.1%
Income tax 12,388 8,271
--------- ---------
Net income 19,974 $ 14,665 36.2%
========= =========
After tax margin 5.4% 4.8%
EBITDA 36,235 26,499 36.7%
Cash flow from operations 19,864 29,913 (33.6%)
Tax rate 38.3% 36.1%
Basic shares 36,642 35,624
Diluted shares 37,819 37,204
EPS, basic $ 0.55 $ 0.41 34.1%
EPS, diluted $ 0.53 $ 0.39 35.9%
ANTEON INTERNATIONAL CORPORATION
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
for the six months ended June 30, 2005 and 2004
($ in thousands, except EPS)
Six Six
Months Months
Ended Ended
June June Percentage
2005 2004 Change
---------- ------------ ----------
Revenues $ 718,577 $ 592,311 21.3%
Costs of revenues 613,207 510,254
General and administrative
expenses 38,740 32,247
Amortization of intangible
assets 1,372 1,359
--------- ---------
Operating Income 65,258 48,451 34.7%
Operating margin 9.1% 8.2%
Other income 907 4
Interest expense 4,320 3,744
Minority interest (53) (35)
--------- ---------
Pretax income 61,792 44,676 38.3%
Income tax 23,794 16,677
--------- ---------
Net income $ 37,998 $ 27,999 35.7%
========= =========
After tax margin 5.3% 4.7%
EBITDA 69,656 51,765 34.6%
Cash flow from operations 71,577 30,462 135.0%
Tax rate 38.5% 37.3%
Basic shares 36,465 35,536
Diluted shares 37,702 37,176
EPS, basic $ 1.04 $ 0.79 31.6%
EPS, diluted $ 1.01 $ 0.75 34.7%
ANTEON INTERNATIONAL CORPORATION
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
($ in thousands)
As of June As of
30, 2005 December
(unaudited) 31,2004 $ Change
----------- -------- --------
ASSETS
Cash and cash equivalents $ 30,125 $ 4,103 $ 26,022
Short term investments 30,000 -- 30,000
Accounts receivable, net 296,925 317,296 (20,371)
Other current assets 25,312 17,205 8,107
Property and equipment, net 13,736 12,920 816
Goodwill 241,965 242,066 (101)
Intangible and other assets, net 17,755 19,836 (2,081)
--------- --------- ----------
Total assets $ 655,818 $ 613,426 $ 42,392
========= ========= ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable/accrued
expenses and
other current liabilities $ 160,961 $ 154,031 $ 6,930
Indebtedness 163,763 184,388 (20,625)
Deferred revenue 20,886 13,764 7,122
Other long-term liabilities 13,028 13,685 (657)
--------- --------- ----------
Total liabilities 358,638 365,868 (7,230)
Minority interest in
subsidiaries 335 282 53
Stockholders' equity 296,845 247,276 49,569
--------- --------- ----------
Total liabilities and
stockholders'
equity $ 655,818 $ 613,426 $ 42,392
========= ========= ==========
ANTEON INTERNATIONAL CORPORATION
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
($ in thousands)
For the six months
ended June 30,
2005 2004
-------- --------
OPERATING ACTIVITIES:
Net income $ 37,998 $ 27,999
Adjustments to reconcile net income to net cash
provided by operating activities:
Gain on reversal of an acquisition reserve (900) --
Depreciation and amortization on property and
equipment, intangibles and financing fees 3,868 3,713
Deferred income taxes 152 (613)
Minority interest in earnings of subsidiaries 53 35
Changes in assets and liabilities 30,406 (672)
-------- --------
Net Cash Provided By Operating Activities 71,577 30,462
-------- --------
INVESTING ACTIVITIES:
Purchases of property, equipment and other
assets (2,969) (2,044)
Purchases of short term investments (30,000) --
Other 100 269
-------- --------
Net Cash Used For Investing Activities (32,869) (1,775)
-------- --------
FINANCING ACTIVITIES
Principal payments on Term Loan B (825) (750)
Deferred financing fees -- (88)
Net proceeds (payments)on revolving credit
facility (19,800) (4,400)
Redemption of senior subordinated notes
payable -- (1,876)
Principal payment under capital lease
obligations (126) (167)
Proceeds from issuance of common stock, net of
expense 8,065 2,841
-------- --------
Net Cash Used For Financing Activities (12,686) (4,440)
-------- --------
CASH AND CASH EQUIVALENTS:
Net Increase in cash and cash equivalents 26,022 24,247
Cash and cash equivalents, beginning of period 4,103 2,088
-------- --------
Cash and cash equivalents, end of period $ 30,125 $ 26,335
-------- --------
RECONCILIATION BETWEEN NET INCOME AND EBITDA
(in thousands)
Trailing
Twelve
Q3 2004 Q4 2004 Q1 2005 Q2 2005 Months
------- ------- ------- -------- --------
Net Income $16,849 $16,957 $18,024 $19,974 $ 71,804
Provision for income
taxes 9,936 10,503 11,406 12,388 44,233
Interest expense, net of
interest income 1,831 2,194 2,214 2,106 8,345
Amortization 542 775 686 686 2,689
Depreciation 959 1,071 1,091 1,081 4,202
------- ------- ------- ------- --------
EBITDAZ(1) $30,117 $31,500 $33,421 $36,235 $131,273
======= ======= ======= ======= ========
(1) The Company believes that EBITDA is a useful supplement to net
income and other income statement data in understanding cash flows
generated from operations that are available for taxes, debt service
and capital expenditures. "EBITDA" as defined represents income
before income taxes plus depreciation, amortization, and net
interest expense. EBITDA is a key financial measure but should not
be construed as an alternative to operating income or cashflows from
operating activities (as determined in accordance with accounting
principles generally accepted in the United States of America).
RECONCILIATION BETWEEN TOTAL REVENUE GROWTH AND ORGANIC REVENUE
GROWTH
($ in thousands)
Q1 Q2 H1
---------- --------- ----------
2004 Revenue $ 288,150 $ 304,161 $ 592,311
2005 Revenue 349,982 368,595 718,577
--------- --------- ----------
Total Revenue Growth over 2004 21.5% 21.2% 21.3%
2004 Revenues (a) 288,150 304,161 592,311
--------- --------- ----------
2005 Revenue 349,982 368,595 718,577
Less: 2005 IMSI and STI Revenues (12,430) (13,273) (25,703)
--------- --------- ----------
Adjusted Total 2004 Revenue (b) 337,552 355,322 692,874
========= ========= ==========
Organic Revenue Growth over 2004
(b-a)/a 17.1% 16.8% 17.0%
(2) The Company defines organic growth as the increase in revenues
excluding the revenues associated with acquisition, divestitures and
closures of businesses in comparable periods. The Company believes
that organic growth is a useful supplemental measure to revenue. The
Company uses organic growth as part of its evaluation of core
operating results and underlying trends.
RECONCILIATION OF CASH FLOW FROM OPERATIONS TO FREE CASH FLOW
(in thousands)
Free Cash Flow Q1 2005 Q2 2005 H1 2005
--------------------------------- ------------- -------- -----------
Cash flow from operations $ 51,713 $ 19,864 $ 71,577
Less: capital expenditures (1,538) (1,431) (2,969)
--------- --------- ----------
Free cash flow(3) $ 50,175 $ 18,433 $ 68,608
========= ========= ==========
(3) The Company believes that free cash flow is a useful
supplemental measure of cash available to the Company after the
payments for the capital expenditures.
NET DEBT RECONCILIATION
($ in thousands)
Net Debt Q2 2005 Q1 2005
--------------------------------------- -------------- --------------
Revolving credit facility $ -- $ --
Term Loan B 163,763 164,175
------------ -------------
Total: 163,763 164,175
Less: cash (30,125) (35,145)
Short term investments (30,000) --
------------ -------------
Net debt $ 103,638 $ 129,030
============ =============
(4) The Company believes that net debt is a useful measure of
actual indebtedness of the Company.
|
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion