DynCorp International Reports Increased Revenue and Net Income for Fiscal Year 2005.IRVING, Texas Irving (pronounced 'er-ving') is a city located in the U.S. state of Texas within Dallas County. According to the 2000 U.S. Census, the city population was 191,615; the 2006 estimate was 201,927 according to the North Central Texas Council of Governments, and 196,084 according to -- DynCorp International DynCorp International[2] is a United States-based private military contractor (PMC) and aircraft maintenance company. DynCorp receives more than 96 percent of its $2 billion in annual revenues from the federal government. LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control and its subsidiaries (collectively, the "Company"), a leading professional services (job) professional services - A department of a supplier providing consultancy and programming manpower for the supplier's products. and project management firm serving government and industry, today reported revenue of $1.9 billion and net income of $58.8 million for the 12-month period that ended April 1, 2005. Full Year Operating Results The Company reported revenue of $1.9 billion, adjusted 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 of $118.4 million and net income of $58.8 million for the fiscal year. Revenue increased 58.3 percent when compared to revenue from the prior year of $1.2 billion. The Company's revenue increase is primarily the result of a significant contract award received in February February: see month. 2004 to train and offer logistic support Noun 1. logistic support - assistance between and within military commands logistic assistance support - the activity of providing for or maintaining by supplying with money or necessities; "his support kept the family together"; "they gave him emotional to police forces of foreign countries, growth under the Contract Field Teams contract in the Company's Field Technical Services segment, and growth in various other contracts in the Company's International Technical Services segment. The Company generated adjusted 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.
The Company reported net income of $58.8 million for the 12 months that ended April 1, 2005, compared with $31.4 million for the prior year - an increase of 87.3 percent. The Company's net income increase resulted primarily from the stronger revenue performance discussed above and a shift in contract mix to include a lower percentage of cost reimbursable re·im·burse tr.v. re·im·bursed, re·im·burs·ing, re·im·burs·es 1. To repay (money spent); refund. 2. To pay back or compensate (another party) for money spent or losses incurred. contracts during the most recent 12-month period. Cost reimbursable contract types have a bias to generate lower margins than those realized from the Company's time and material or fixed price contract types. Liquidity As of April 1, 2005, the Company possessed $13 million of cash on hand. The Company had also drawn $35 million under its revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facility, leaving $34.9 million available for borrowing under this facility. As of July July: see month. 1, 2005, the Company had repaid amounts outstanding under its revolving credit facility, and had cash on hand of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $29.1 million. The Company had available to borrow Borrow To obtain or receive money on loan with the promise or understanding that it will be repaid. approximately $69.9 million under its revolving credit facility on July 1, 2005. Other Matters The Company expects to file Form S-4 with the Securities and Exchange Commission by end of business August 10, 2005. The Company advises readers of this release to refer to the Form S-4 filing for additional information regarding the Company. About DynCorp International LLC and subsidiaries DynCorp International is a leading professional services and project management firm with global expertise in aviation services, logistics logistics In military science, all the activities of armed-force units in support of combat units, including transport, supply, communications, and medical aid. The term, first used by Henri Jomini, Alfred Thayer Mahan, and others, was adopted by the U.S. , and security operations. Headquartered in Irving, Texas, DynCorp International employs more than 14,000 people in some 35 countries. It traces its beginnings to the founding of Dynalectron Corporation in 1946. For additional information concerning DynCorp International LLC and its subsidiaries, visit the Company's Web site at www.dyncorpinternational.com. The statements in this press release that are not historical fact 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. " within the meaning of 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. All of these forward-looking statements are based on estimates and assumptions made by the Company's management that, although believed by DynCorp International and its subsidiaries to be reasonable, are inherently uncertain. Forward-looking statements involve risks and uncertainties, including, but not limited to, economic, competitive, governmental, and technological factors outside of its control that may cause its business, strategy or actual results to differ materially from the forward-looking statements. These risks and uncertainties may include, among other things: changes in the demand for services which the Company provides; the activities of competitors COMPETITORS, French law. Persons who compete or aspire to the same office, rank or employment. As an English word in common use, it has a much wider application. Ferriere, Dict. de Dr. h.t. ; changes in significant operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. ; changes in availability of capital; general economic and business conditions in 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. ; acts of war Tom Clancy's Op-Center: Acts of War is a technothriller by Jeff Rovin Plot introduction The mobile Regional Operations Center (ROC) in Turkey investigates a dam blown up by Kurdish terrorists. or terrorist activities; variations in performance of financial markets; and other factors described in the "Risk Factors" section in the Company's Form S-4, which is expected to be filed with the Securities and Exchange Commission by end of business August 10, 2005. Given these risks and uncertainties, you are cautioned not to place undue reliance on forward-looking statements. DynCorp International and its subsidiaries undertake no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as required by law. -Tables to Follow- Basis of Presentation On February 11, 2005, DynCorp International was sold by Computer Sciences Corporation ("CSC (Card Security Code) A three- or four-digit number printed on the back of credit cards for security purposes. Called "Card Verification Value" (CVV) by Visa, "Card Validation Code" (CVC) by MasterCard and "Card Identification (CID) by American Express and Discover, ") to an entity controlled by The Veritas Ver´i`tas n. 1. The Bureau Veritas. See under Bureau. Capital Fund II, L.P. and its affiliates ("Veritas"). The financial information presented below from March 29, 2003 to February 11, 2005, falls into the period of CSC ownership, and is referred to as the "immediate predecessor predecessor - parent period." The Company refers to financial statements from and after February 12, 2005 as the "successor period." The presentation of financial results during the "immediate predecessor period" are presented on a historical basis and do not include the significant impact that the sell transaction has had on the Company.
DYNCORP INTERNATIONAL LLC
CONSOLIDATED STATEMENT OF OPERATIONS
Dollars in Thousands
(Unaudited)
Immediate Combined
Predecessor Successor Period (1)
---------------------------------------------
Twelve Period From 49 Days Twelve
Months April 3, Ended Months
Ended 2004 to April 1, Ended
April 2, Feb. 11, 2005 April 1,
2004 2005 2005
Revenues $1,214,289 $1,654,305 $266,604 $1,920,909
----------- ----------- --------- -----------
Cost of services 1,106,607 1,495,388 243,337 1,738,725
Selling, general, and
Administrative 48,314 58,476 10,477 68,953
Depreciation and
amortization 8,148 5,922 5,605 11,527
----------- ----------- --------- -----------
Operating income 51,220 94,519 7,185 101,704
Other expense (income):
Interest expense - - 8,054 8,054
Interest income (64) (170) (7) (177)
----------- ----------- --------- -----------
Income (loss) before
income taxes 51,284 94,689 (862) 93,827
Provision for income
taxes 19,924 34,956 60 35,016
----------- ----------- --------- -----------
Net income (loss) $31,360 $59,733 $(922) $58,811
=========== =========== ========= ===========
Note 1: The "combined period" represents the twelve month period
ended April 1, 2005 which combines the period from April 3,
2004 to February 11, 2005 occurring during the predecessor
period with the period of February 12, 2005 to April 1, 2005
occurring during the successor period.
The following table presents a reconciliation of net income to
adjusted EBITDA for the periods discussed in this press release:
Net Income to Adjusted EBITDA Reconciliation
In Millions
Twelve Months Ended
April 2, 2004 April 1, 2005
Net income $31.4 $58.8
Provision for taxes 19.9 35.1
Interest expense - 8.1
Depreciation and amortization (1) 8.8 12.7
-------------- --------------
EBITDA $60.1 $114.7
Adjustments to EBITDA:
Management retention bonus (2) - 1.1
Extraordinary fee from parent (3) - 2.6
-------------- --------------
Adjusted EBITDA $60.1 $118.4
============== ==============
Note 1: Includes depreciation expense disclosed as a component of
cost of services in the amount of $0.6 and $1.2 for the twelve
months ended April 2, 2004 and April 1, 2005, respectively.
Note 2: In connection with the sale of the Company by its former
parent, Computer Sciences Corporation, to an entity controlled
by The Veritas Capital Fund II, L.P. and its affiliates,
certain key members of the Company's management team are
eligible to receive an incentive payment. Adjusted EBITDA
excludes the expense recognized during the respective period
related to the management incentive payments.
Note 3: For the periods presented above, the Company's net income
includes an expense allocation for a portion of the Company's
former parent's, Computer Sciences Corporation, corporate
expenses and income taxes. Adjusted EBITDA excludes an
unexpected increase in Computer Sciences Corporation's
management fee allocation received by the Company on February
11, 2005.
|
|
||||||||||||||

Printer friendly
Cite/link
Email
Feedback
Reader Opinion