BTG Reports 1st Quarter Financial Results.Business Editors/High Tech Writers FAIRFAX, Va.--(BUSINESS WIRE)--July 24, 2000 Services Revenue, 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. , Net Income, and 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. Rise Sharply 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 , Inc. (Nasdaq: BTGI), an information systems and technical services company, today announced unaudited financial results for its fiscal year 2001 first quarter, which ended June 30, 2000. Net income was $1.4 million, a 50% increase over the $965,000 in last year's first quarter. 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 $0.16, a 45% increase over the $0.11 reported in the same quarter of fiscal 2000. Revenue from the company's core information systems and technical services business increased 12%, from $50.6 million in last year's first quarter to $56.6 million for this quarter. Total revenue for the quarter was $59.9 million, down from the $66.3 million reported in the same period last year. This was due to a 79% decrease in product sales, resulting from the company's discontinuance Cessation; ending; giving up. The discontinuance of a lawsuit, also known as a dismissal or a non-suit, is the voluntary or involuntary termination of an action. DISCONTINUANCE, pleading. A chasm or interruption in the pleading. 2. of its remaining product reselling contracts in late 1999. The company's operating profit margin Operating profit margin The ratio of operating profit to net sales. increased 250 basis points, from 3.2% in the first quarter of fiscal 2000, to 5.7% in this year's first quarter. Earnings before interest, taxes, depreciation, and amortization Earnings before interest, taxes, depreciation, and amortization (EBITDA) A financial measure defined as revenues less cost of goods sold and selling, general, and administrative expenses. (EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become ) were $4.0 million, or a fully diluted cash-flow-per-share of $0.44. This compares to EBITDA of $2.8 million, or a fully diluted cash-flow-per-share of $0.32 for the same period last year. BTG 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 strategy of eliminating low margin product sales, while expanding its core information and technical services business, is clearly succeeding. "BTG's performance has improved significantly over last year's first quarter with a dramatic increase in profitability, and we expect the strong financial results to continue." Bersoff said the company's realignment re·a·lign tr.v. re·a·ligned, re·a·lign·ing, re·a·ligns 1. To put back into proper order or alignment. 2. To make new groupings of or working arrangements between. of business operations Business operations are those activities involved in the running of a business for the purpose of producing value for the stakeholders. Compare business processes. The outcome of business operations is the harvesting of value from assets during the fourth quarter of fiscal year 2000 has strengthened the company at every level, while also reducing costs. "The business development team has identified additional and larger contract opportunities, and they have done an exceptional job in aggressively pursuing new and expanded business. In the last few weeks, we have reported wins on several major contracts." -- BTG was the prime on one of three teams selected for the first phase of the Department of Defense Integrated Broadcast Service. The $2 million, six-month contract is the first step in the selection of one of the teams for the IBS IBS Irritable bowel syndrome, see there development phase, a seven-year effort valued at more than $60 million. BTG team members include Boeing, Raytheon, Sterling Software (Computer Associates), GTE GTE General Telephone & Electronics GTE Génie Thermique et Énergie (French) GTE Gas Turbine Engine GTE Global Tropospheric Experiment GTE Geothermal Energy GTE Gas Turbine Efficiency plc (Sweden & USA) (BBN (BBN Technologies, Cambridge, MA, www.bbn.com) A consulting firm that participated in the development of some of the most extensive networks in the world, including ARPANET, which evolved into the Internet. It was founded in 1948 as a consulting service in acoustics by Dr. ), INRI INRI abbr. Latin Iesus Nazarenus Rex Iudaeorum (Jesus of Nazareth, King of the Jews) INRI Jesus of Nazareth, king of the Jews (the inscription placed over Christ's head during the Crucifixion) [Latin (Logicon), SM&A (now Emergent Information Technologies, Inc.), ITT ITT Initial Teacher Training (UK) ITT I Think That ITT Invitation To Tender ITT Individual Time Trial (professional cycling) ITT Intention-To-Treat ITT In This Thread (forums) , Averstar (now Titan), and Database Architects, Inc. -- The company's Modeling and Simulation practice was awarded a $6.5 million addition to an existing contract with the National Security Agency to build a critical component of the next generation of joint military training simulations for the U.S. armed services The Constitution authorizes Congress to raise, support, and regulate armed services for the national defense. The President of the United States is commander in chief of all the branches of the services and has ultimate control over most military matters. . -- BTG was selected for the General Services Administration's $20 billion Millennia Lite information technology services contract. The company was one of twelve teams selected to provide services in legacy systems migration and new enterprise systems development. -- The company is a member of the Lockheed Martin For the former company, see . Lockheed Martin (NYSE: LMT) is a leading multinational aerospace manufacturer and advanced technology company formed in 1995 by the merger of Lockheed Corporation with Martin Marietta. team competing for the $1.5 billion Integrated Space Command and Control program for the U.S. Air Force. BTG's role on the team is to provide engineering and technical solutions for information operations Actions taken to affect adversary information and information systems while defending one's own information and information systems. Also called IO. See also defensive information operations; information; offensive information operations; operation. . Bersoff said other highlights include: -- The completion of the purchase of the assets of SSDS SSDS SQL Server Data Services SSDS Ship Self Defense System SSDS Space Science Data System (NASA) SSDS Sudden Sniffing Death Syndrome SSDS Secure Software Distribution System SSDS Sexual Self-Disclosure Scale , Inc., which brings BTG an expanded customer base and 150 skilled employees with credentials in information and network security, technology in schools, and Microsoft(R) and Remedy(R) applications. -- Expansion of the company's Technology in Schools program, including the implementation of a $41 million technology services contract with the Okaloosa County School District in Florida. The company also hired Dr. L'Tanya Sloan, a nationally known educator and business executive, to lead the expansion of BTG's educational services. -- The establishment of an agreement with SPYRUS(R), a leading Internet security ''This article or section is being rewritten at Internet security is the process of protecting data and privacy of devices connected to internet from information robbery, hacking, malware infection and unwanted software. company, to jointly market a complete range of information and network security services Network Security Services (NSS) is a set of libraries designed to support cross-platform development of security-enabled client and server applications. NSS provides a complete open-source implementation of crypto libraries supporting SSL and S/MIME. to commercial and government customers. SPYRUS is a leading provider of PKI (Public Key Infrastructure) A framework for creating a secure method for exchanging information based on public key cryptography. The foundation of a PKI is the certificate authority (CA), which issues digital certificates that authenticate the identity of solutions that enable enterprises to mitigate risk and liability in internet commerce. -- BTG's demonstration of its capabilities in information and network security at the first annual 2000 Global Internet Summit, an event that brought together business leaders and government officials from around the world to discuss the future of the Internet and electronic business. BTG is an information systems and technical services firm that provides computer-based solutions for government and commercial clients. The company's expert practice areas include Information and Network Security, Modeling and Simulation, Technology in Schools, E-Commerce, Geographic Information Systems, Mobile Computing Using a computing device while in transit. Mobile computing implies wireless transmission, but wireless transmission does not necessarily imply mobile computing. Fixed wireless applications use satellites, radio systems and lasers to transmit between permanent objects such as buildings , Linguist Services, and Remedy and Microsoft Practices. Information about BTG is available on the web at http://www.btg.com, by e-mail at info@btg.com, or by calling 703-383-8140. "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 that are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in or implied by forward-looking statements. These risks and uncertainties include the amount of work actually to be awarded under any contract or subcontract, dependence on continued funding of U.S. government programs, government contract procurement and termination risks, included risks associated with protests, and other risks described in the Company's Securities and Exchange Commission filings.
BTG, Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(In thousands, except Per Share Data)
Three Months Ended
-------------------------------------
June 30, June 30,
2000 1999
-------- --------
Revenues:
Contract revenue $ 56,626 $ 50,569
Product sales 3,297 15,776
---------- ----------
$ 59,923 $ 66,345
Direct costs:
Contract costs 37,286 33,368
Cost of product sales 3,211 15,457
---------- ----------
$ 40,497 $ 48,825
Indirect, general and
administrative expenses 15,784 15,209
Amortization expense 256 174
---------- ----------
$ 56,537 $ 64,208
---------- ----------
Operating income $ 3,386 $ 2,137
Interest expense, net (822) (429)
Loss on conversion of
investment (50) -
---------- ----------
Income before income taxes $ 2,514 $ 1,708
Provision for income taxes 1,069 743
---------- ----------
Net income $ 1,445 $ 965
---------- ----------
Basic earnings per share $ 0.16 $ 0.11
---------- ----------
Diluted earnings per share $ 0.16 $ 0.11
---------- ----------
Weighted average shares
outstanding (used in the
calculation of basic
earnings per share) 8,988 8,840
Weighted average shares ---------- ----------
outstanding (used in
the calculation of diluted
earnings per share) 9,110 8,846
---------- ----------
BTG, Inc. and Subsidiaries
CONSOLIDATED BALANCE SHEETS
June 30, 2000 and March 31, 2000
(In thousands)
June 30, 2000 March 31, 2000
------------- --------------
(Unaudited)
ASSETS
Investments, at fair value $ 154 $ -
Receivables, net 69,262 69,352
Inventory, net 744 507
Prepaid expenses and other
current assets 3,374 3,528
------- ------
Total current assets $ 73,534 $ 73,387
-------- --------
Property and equipment, net 9,297 9,043
Goodwill, net 23,975 14,551
Restricted investments 6,429 6,429
Notes receivable 1,000 1,000
Other 802 2,972
-------- --------
$ 115,037 $ 107,382
--------- ---------
LIABILITIES AND
SHAREHOLDERS' EQUITY
Current maturities of long-term
debt $ 3,200 $ -
Accounts payable 19,208 21,342
Accrued expenses 12,974 12,840
Other 1,874 1,644
-------- -------
Total current liabilities $ 37,256 $ 35,826
Line of credit 30,888 30,466
Long-term debt, excluding
current maturities 4,267 -
Other 857 877
-------- -------
Total liabilities $ 73,268 $ 67,169
-------- -------
Common stock $ 54,428 $ 54,308
Accumulated deficit (12,650) (14,095)
Unrealized holding losses
on investments,
net of income taxes (9) -
-------- -------
Total shareholders' equity 41,769 40,213
-------- -------
$ 115,037 $ 107,382
--------- ---------
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