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BDM YEAR END FINANCIALS

 BDM YEAR END FINANCIALS
 MCLEAN, Va., March 5 /PRNewswire/ -- BDM Holdings, Inc., parent


company of BDM International, Inc. (BDM), today announced 1991 financial results showing a 15 percent increase in gross profits and a 3 percent decline in revenue, compared with 1990. Net income was positive for the year ($520,000, 5 cents per share), compared with a loss of approximately $4 million in 1990.
 Officials of the diversified professional and technical services company stressed that the earnings and other financial results for both 1990 and 1991 were strongly impacted by special charges, many of them non-cash, as well as related interest expense, arising from BDM's return to an independent status. BDM had been operating as a wholly owned subsidiary of Ford Aerospace Corporation; it was acquired through a leveraged buyout by BDM management and investors led by The Carlyle Group, L.P., in October 1990 at the time other elements of Ford Aerospace were acquired by Loral Corporation.
 BDM Holdings, Inc., board chairman Frank C. Carlucci commented that: "1991 was largely a transition year for BDM, and while we are generally pleased with the financial results, we expect a substantial upturn in both revenue and earnings this year."
 BDM's contract backlog was near historically high levels, totaling $690 million on Dec. 31, 1991. Contract awards received in 1991 exceeded $330 million.
 "The decline in revenue from $306.3 million in 1990 to $296.8 million in 1991 was largely due to a reduction of hardware purchases on behalf of BDM clients and less utilization of subcontractors," explained BDM Holdings, Inc., President and CEO Earle C. Williams. The planned reduction in the company's operating costs was another contributing factor to the revenue decline but led to the significant increase in gross profit margins, which grew from 6.7 percent in 1990 to 7.9 percent in 1991.
 Williams pointed out that the best way to judge the success of BDM's return to independent status is by the significant cash generation in 1991, which the company used to reduce its bank debt substantially. BDM had borrowed $72 million in October 1990 to finance the acquisition and related expenses. These borrowings were reduced to $29.6 million by Dec. 31, 1991, with repayments being made substantially ahead of schedule.
 BDM continued its successful diversification in 1991, Williams noted. Non-defense-related contracts, responsible for just 15 percent of BDM's business a few years ago, generated 33 percent of the company's revenue in 1991. He pointed to air traffic control and airspace management, automated warehousing and distribution, energy and the environment (particularly waste management and environmental restoration), space sciences and applications, and state government information systems as examples of business sectors successfully targeted for expansion in recent years.
 The nature of BDM's defense work, Williams said, makes the company less susceptible to impacts from lowered defense budgets than those companies which are dependent largely on hardware procurement. He noted, in particular, BDM's emphasis on advanced technology applications, modernization and logistics for existing systems, tactical missile defense, research and analysis, and the use of modeling and simulation-based training to replace more costly defense alternatives as examples of areas where BDM is prominently positioned and where future defense expenditures are expected to remain near current levels.
 SUMMARY OF OPERATIONS DATA
 BDM Holdings, Inc., and Subsidiary
 (For the Period Oct. 1, 1990, to Dec. 31, 1991)
 BDM International, Inc., and Subsidiaries
 A Wholly Owned Subsidiary of Ford Aerospace Corporation
 (For the Nine Months Ended Sept. 30, 1990)
 Twelve Three Nine
 Months Months Months
 Ended Ended Ended
 Dec. 31, Dec. 31, Sept. 30,
 1991 1990 1990
 Revenue from Contracts $296,798,000 $74,048,000 $232,216,000
 Gross Profit 23,335,000 6,132,000 14,232,000
 Net Income (Loss) 520,000 331,000 (4,294,000)
 Earnings Per Share $.05 $.04 --
 -0- 3/5/92
 /CONTACT: Todd A. Stottlemyer of BDM Holdings, Inc., 703-848-5115/ CO: BDM Holdings, Inc. ST: Virginia IN: SU: ERN


SB-MH -- DC032 -- 5540 03/05/92 14:43 EST
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Publication:PR Newswire
Date:Mar 5, 1992
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