BTG Releases Fiscal Year-End and 4th Quarter Financial Results; Record 4th Quarter Revenue, Earnings & EPS Reported.VIENNA, Va.--(BUSINESS WIRE)--May 16, 1996--BTG, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : BTGI) today announced financial results showing record year-end and fourth quarter revenue for its 1996 fiscal year, which ended March 31. Annual revenue, which increased 37%, was $213.6 million compared to $156.0 million for FY 1995. Fourth quarter revenue was $59.8 million, up 52% from the $39.4 million reported in the comparable period of the previous year. Net income for the year was $3.0 million, down 6% from the $3.1 million reported last year; net income for the quarter was $700,000, up 16% from $606,000 reported in the FY 1995 fourth quarter. Earnings per share for the 1996 fiscal year were $0.47, down 22% from the $0.60 reported for FY 1995, a reflection of lower net earnings and a higher number of weighted average shares resulting from the company's Initial Public Offering in December 1994. Earnings for the 4th quarter were $0.11 per share, up 10% from the $0.10 reported for the comparable period in the previous year. BTG BTG BIT (Built-In Test) Target Generator BTG Bridging the Gap BTG British Technology Group BtG Betreuungsgesetz (Germany) BTG Biomass Technology Group BV BTG Begbies Traynor Group President and 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. Edward H. Bersoff Edward H. Bersoff is the President, CEO and founder of BTG, Inc. Prior to founding BTG in 1982, Bersoff was President of CTEC, Inc. Previously, as an officer in the U.S. Army, he was assigned to the NASA Electronics Research Center in Cambridge, Massachusetts. said the company's lower earnings in its 1996 fiscal year can be attributed in part to the federal government shutdowns  This article or section may deal primarily with the U.S. and may not present a worldwide view. during the company's third quarter.
"These shutdowns had a negative impact for two primary
reasons," Bersoff said."First was the government's delay in purchasing BTG products, which resulted in the loss of incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. profit that we otherwise would have earned during the shutdowns. Second, we experienced higher indirect costs Indirect costs are costs that are not directly accountable to a particular function or product; these are fixed costs. Indirect costs include taxes, administration, personnel and security costs. See also
In addition, Bersoff said, the processing of payments for government contracts and purchases was delayed by the shutdowns. This required the company to carry its outstanding receivable accounts for longer periods of time, which meant higher interest costs for the company. The company's lower-than-anticipated earnings in FY 1996 also resulted from higher interest and amortization costs incurred in connection with the acquisition of Concept Automation, Inc. in October 1995, and from the completion of two contracts which had been highly profitable in previous years. "Recent uncertainty over the federal budget process is an unfortunate risk for government contractors A government contractor is a private company that produces goods or services under contract for the government. Often the terms of the contract specify cost plus – i.e., the contractor gets paid for its costs, plus a specified profit margin. ," Bersoff said, "but the long range stability of the government information technology market, and its projected growth over the next decade, justifies our commitment to serving defense and civilian government agencies. "While the shutdowns had an impact on our third quarter and fiscal year earnings, the record fourth quarter results clearly show that the company has rebounded. Our contract and bid backlogs, two significant indicators of future growth, reached record highs by the end of the fourth quarter." Bersoff said highlights for the fiscal year included: -- The acquisition in October of Concept Automation, Inc., a 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. and value-added reseller A value-added reseller (VAR) is a company that adds some feature(s) to an existing product(s), then resells it (usually to end-users) as an integrated product or complete "turn-key" solution. with extensive contracts with civilian government agencies and commercial clients. -- BTG's selection in December as one of two winners of the Air Force's Integration for Command, Control, Communications, Computers and Intelligence (IC4I IC4I Integration for Command, Control, Communications, Computers and Intelligence IC4I Integrated Command, Control, Communications, Computers and Intelligence ) program, which has total contract capacity of $929 million over a five-year period. The award is the largest contract in BTG's history. -- The sale of over $15 million in Internet-related services, including Netscape software products and consulting services Noun 1. consulting service - service provided by a professional advisor (e.g., a lawyer or doctor or CPA etc.) service - work done by one person or group that benefits another; "budget separately for goods and services" . Under an agreement with Netscape, signed at the beginning of the fiscal year and extended in November, BTG is the reseller An organization that sells hardware and software to the general public. Resellers purchase products from software publishers and hardware manufacturers. of Netscape Navigator An earlier Web browser for Windows, Macintosh and X Windows from Netscape that provided secure transmission over the Internet. Soon after its introduction in 1994, Navigator, or just "Netscape," as it was commonly called, quickly became the leading browser on the Web. and server products to the federal market. -- A preliminary agreement with WheelGroup Corporation that gives BTG the exclusive right to provide WheelGroup's information protection products and services to the federal market. BTG also will provide commercial clients with WheelGroup's unique technology for protecting valuable data from fraud and misuse on unsecure networks such as the Internet, Intranets and wide area networks. -- $788 million in contract backlog, which is work that the company is under contract to perform. This is an increase of 246% over the previous year. Bersoff said the company's bid and proposal activity was particularly strong in the fourth quarter, with BTG submitting $1.3 billion in bids for future program work. BTG is an information technology company providing services and products to government and commercial clients. The company specializes in systems engineering, integration and network systems, Internet/Intranet access and services, custom computer manufacturing, and the value-added reselling of hardware, software and services. The company has more than 900 employees and offices throughout the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and in Europe. Additional information on BTG is available on the Internet at http://www.btg.com/, by e-mail at info@btg.com, or by calling 703/556-6518. Investors contact: John Graham John Graham, Johnny Graham or Jack Graham may be: In politics and history:
BTG Incorporated
Consolidated Statements Of Income
(In thousands, except Earnings Per Share)
Year Year Quarter Quarter
Ended Ended Ended Ended
3/31/96 3/31/95 3/31/96 3/31/95
Revenue $ 213,558 $ 155,989 $ 59,752 $ 39,418 Costs Direct Costs 163,647 118,631 44,334 29,148 Operating Expenses, Amortization and Other, Net 42,422 30,458 13,855 9,158 Operating Income $ 7,489 $ 6,900 $ 1,563 $ 1,112 Interest Expense (3,045) (1,362) (955) (391) Other Income 792 -- 657 -- Income Before Income Taxes 5,236 5,538 1,265 721 Provision for income taxes 2,282 2,406 565 115 Net Income $ 2,954 $ 3,132 $ 700 $ 606 Earnings Per Share $ 0.47 $ 0.60 $ 0.11 $ 0.10 Weighted average common shares outstanding 6,233 5,196 6,297 6,128 CONTACT: BTG Incorporated John Graham, 703/761-6675 (investor contact) investor@btg.com Theda Parrish, 703/761-6581 (editor contact) tparrish@btg.com |
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