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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.
:EBITDA = Operating Revenue – Operating Expenses + Other Revenue
 (EBITDA) of $118.4 million for the 12 months that ended April 1, 2005, compared with adjusted EBITDA of $60.1 million for the prior year. EBITDA is a primary component of certain covenants under the Company's senior credit facility. In addition, adjusted EBITDA does not represent net income or cash flows from operations, as these terms are defined by under accounting principals generally accepted in the United States of America UNITED STATES OF AMERICA. The name of this country. The United States, now thirty-one in number, are Alabama, Arkansas, Connecticut, Delaware, Florida, Georgia, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Mississippi, Missouri, New Hampshire, . A detailed reconciliation of net income to adjusted EBITDA has been included and should be read in conjunction with this release.

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.
COPYRIGHT 2005 Business Wire
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Publication:Business Wire
Geographic Code:1USA
Date:Aug 4, 2005
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