BTG Reports Year-End and 4th Quarter Results.Business Editors FAIRFAX, Va.--(BUSINESS WIRE)--May 23, 2001 Street Consensus Met 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, reported audited year-end and fourth quarter financial results for its fiscal year 2001, which ended March 31, 2001. The company said revenue and earnings were up significantly from the previous quarter, while 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
Net income for the year was $2.7 million, compared to $4.4 million reported in the previous 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 (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. ) for fiscal 2001 were $0.30, compared to $0.49 in fiscal 2000. Revenue from the company's core information systems and technical services business increased 7%, from $204.2 million in fiscal 2000 to $217.6 million in this year. Total revenue was $224.8 million compared to $249.0 million in fiscal 2000. This reduction was due to an 84% decrease in product sales resulting from management's decision to divest To deprive or take away. Divest is usually used in reference to the relinquishment of authority, power, property, or title. If, for example, an individual is disinherited, he or she is divested of the right to inherit money. its product reselling unit in February 1998 and to discontinue dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: its remaining product reselling contracts in late 1999. The final orders from those contracts have now been fulfilled and the company anticipates minimal product sales revenue in future periods. 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 fiscal 2001 was $8.5 million, versus $10.0 million in fiscal 2000. Earnings from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the before interest, taxes, depreciation, and amortization (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 $11.5 million, or 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. cash-flow-per-share of $1.28, compared to $12.3 million, or a fully diluted cash-flow-per-share of $1.36, in fiscal 2000. For the fourth quarter of fiscal 2001, BTG reported total revenue of $58.8 million. Revenue from the company's core information systems and technical services business was $57.3 million, an increase of 6% over last year's services revenue. Net income for the quarter was $1.1 million; fully diluted EPS was $0.12; and EBITDA was $3.2 million, or a fully diluted cash-flow-per-share of $0.36. 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. Ed Bersoff said: "The results of the fourth quarter clearly show that the processes recently put in place by the company have begun to allow us to more effectively control and manage indirect costs and cash flow, while increasing services revenue. During our third quarter, we built an infrastructure to manage the growth we anticipated from the company's civilian and state and local business units. The revenue did not develop as projected and, in certain cases, was simply delayed by the failure of the federal government to pass a budget at the start of its fiscal year on October 1, 2000. In addition, the uncertainty associated with the Presidential election and the changing of the administration resulted in some funding delays." "Late in our third quarter, BTG's management team identified the factors causing those disappointing results and set out to correct them. We aggressively pursued revenue in the fourth quarter and succeeded in increasing services revenue by 15% from the previous quarter and 6% from the same period last year. Additionally, we focused on controlling costs and developed a cost structure that corresponds and adjusts more quickly to sales volume. Indirect, general and administrative expenses as a percentage of services revenue decreased 480 basis points from the previous quarter, and 100 basis points from the fourth quarter of last year. We managed our cash effectively, ending the year with total debt of $23.9 million, compared to $29.3 million at the end of the third quarter and $34.7 million just six months ago." Bersoff added: "We have made good progress and are encouraged by our financial improvement. But to ensure that we are managing all aspects of our business in real time, we have developed a series of ongoing metrics metrics Managed care A popular term for standards by which the quality of a product, service, or outcome of a particular form of Pt management is evaluated. See TQM. that focus on profitable revenue growth, improved margins, reduced costs, lower turnover, and continued effective cash management. I am confident that these initiatives and others will continue to help us further improve the company's performance in fiscal 2002 and beyond." In addition to the company's results, Bersoff highlighted the following recent successes: --On April 2, the company acquired Research Planning, Inc. (RPI RPI - Rockwell Protocol Interface ), a professional services (job) professional services - A department of a supplier providing consultancy and programming manpower for the supplier's products. firm with 450 employees, 90% of whom hold security clearances required by many of the government customers of both companies. RPI provides services in defense programs, emergency management, and range technology and base support to customers in the federal government. --On May 14, BTG announced that it had been awarded a contract for the seven-year, $60 million Integrated Broadcast Service (IBS IBS Irritable bowel syndrome, see there ) program for the Department of Defense. The award was the culmination of a year-long competition for the IBS program by three separate teams led by BTG, 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. , and TRW TRW The Real World (TV reality show) TRW The Right Way TRW Tactical Reconnaissance Wing TRW The Retriever Weekly (University of Maryland, Baltimore, MD) TRW Thompson Ramo Wooldridge Inc . Bersoff said the contract win allows BTG to combine its years of experience in the defense intelligence community with the company's extensive capabilities in information management and data fusion Data fusion, is generally defined as the use of techniques that combine data from multiple sources and gather that information in order to achieve inferences, which will be more efficient than if they were achieved by means of a single source. . --BTG was one of five companies awarded a contract in April by the U.S. General Services Administration The General Services Administration (GSA) was established by section 101 of the Federal Property and Administrative Services Act of 1949 (40 U.S.C.A. § 751). The GSA sets policy for and manages government property and records. to provide cost engineering services to federal agencies. BTG's contract is for one year, with up to four one-year option periods, and has a not-to-exceed value of $5 million per year. --BTG also opened a new operation in Calvert County, Maryland Calvert County is a small county located in the U.S. state of Maryland. It is a peninsula bordered on the east by the Chesapeake Bay and on the west by the Patuxent River. Calvert County is part of the Southern Maryland region. As of 2004, the population is 86,474. on May 8 to provide software development and integration services to a growing base of customers, including 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). , the Naval Research Laboratory Noun 1. Naval Research Laboratory - the United States Navy's defense laboratory that conducts basic and applied research for the Navy in a variety of scientific and technical disciplines NRL , the National Security Agency, the Internal Revenue Service, the Food and Drug Administration, Lockheed Martin, General Dynamics General Dynamics Corporation (NYSE: GD) is a defense conglomerate formed by mergers and divestitures, and as of 2006 it is the sixth largest defense contractor in the world[1]. The company has changed markedly in the post-Cold War era of defense consolidation. , and Computer Sciences Corporation. 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, Information Management, Technology in Schools, Geographic Information Systems geographic information system (GIS) Computerized system that relates and displays data collected from a geographic entity in the form of a map. The ability of GIS to overlay existing data with new information and display it in colour on a computer screen is used primarily to , 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 , and Client Care Services. Information about BTG is available on the web at 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 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 by forward-looking statements. These risks and uncertainties include the amount of work actually to be awarded under any contract or subcontract sub·con·tract n. A contract that assigns some of the obligations of a prior contract to another party. intr. & tr.v. sub·con·tract·ed, sub·con·tract·ing, sub·con·tracts , 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 risks, including risks associated with protests, and other risks described in the Company's Securities and Exchange Commission filings. For past press releases, visit this company's Corporate News On the Net site at http://www.businesswire.com/cnn
BTG, Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except Per Share Data)
Quarter Quarter Fiscal Fiscal
Year Year
Ended Ended Ended Ended
3/31/01 3/31/00 3/31/01 3/31/00
--------- --------- ---------- ----------
Revenues:
Contract revenue $ 57,344 $ 54,142 $ 217,565 $ 204,229
Product sales 1,443 5,249 7,278 44,766
--------- --------- ---------- ----------
$ 58,787 $ 59,391 $ 224,843 $ 248,995
--------- --------- ---------- ----------
Direct costs:
Contract costs (37,976) (35,073) (142,979) (134,033)
Cost of product sales (1,340) (4,857) (6,787) (42,823)
--------- --------- ---------- ----------
$(39,316) $(39,930) $(149,766) $ (176,856)
--------- --------- ---------- ----------
Indirect, general and
administrative
expenses (16,273) (15,894) (63,563) (59,876)
Depreciation and
amortization (939) (700) (3,001) (2,243)
--------- --------- ---------- ----------
Operating income $ 2,259 $ 2,867 $ 8,513 $ 10,020
--------- --------- ---------- ----------
Interest expense, net (601) (569) (3,131) (1,917)
Loss on sale of
investments - - (955) -
--------- --------- ---------- ----------
Income before income
taxes $ 1,658 $ 2,298 $ 4,427 $ 8,103
Income tax expense (573) (1,023) (1,750) (3,548)
--------- --------- ---------- ----------
Income from continuing
operations 1,085 1,275 2,677 4,555
Loss from discontinued
operations, net
of taxes - - - (116)
--------- --------- ---------- ----------
Net income $ 1,085 $ 1,275 $ 2,677 $ 4,439
========= ========= ========== ==========
Basic earnings
per share $ 0.12 $ 0.14 $ 0.30 $ 0.50
========= ========= ========== ==========
Diluted earnings
per share $ 0.12 $ 0.14 $ 0.30 $ 0.49
========= ========= ========== ==========
Weighted average shares
outstanding (used in
the calculation of
basic earnings per
share) 8,882 8,923 8,955 8,853
========= ========= ========== ==========
Weighted average shares
outstanding (used in
the calculation of
diluted earnings per
share) 8,882 9,150 9,029 9,035
========= ========= ========== ==========
BTG, Inc. and Subsidiaries
CONSOLIDATED BALANCE SHEETS
March 31, 2001 and 2000
(In thousands)
March 31, March 31,
2001 2000
---------------- -------------
ASSETS
Investments, at fair value $ 53 $ -
Receivables, net 58,503 69,352
Inventory, net - 507
Notes receivable 1,000 500
Prepaid expenses and other 2,587 3,028
---------------- -------------
Total current assets 62,143 73,387
---------------- -------------
Property and equipment, net 8,291 9,043
Other assets:
Goodwill, net 23,224 14,551
Notes receivable - 1,000
Restricted investments - 6,429
Investments, at cost 2,000 -
Other 1,042 2,972
---------------- -------------
$ 96,700 $ 107,382
================ =============
LIABILITIES AND
SHAREHOLDERS' EQUITY
Accounts payable $ 18,141 $ 21,342
Accrued expenses 11,682 12,840
Other 512 1,644
---------------- -------------
Total current liabilities 30,335 35,826
Line of credit 23,913 30,466
Other 354 877
---------------- -------------
Total liabilities 54,602 67,169
---------------- -------------
Common stock 53,584 54,308
Accumulated deficit (11,418) (14,095)
Unrealized holding losses
on investments, net of taxes (68) -
---------------- -------------
Total shareholders' equity 42,098 40,213
---------------- -------------
$ 96,700 $ 107,382
================ =============
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