August 7, 2017
Continued Solid Performance Against Growth Strategy
Revenue Increased by 5.0 percent to $1.49 billion, and Revenue, Excluding Billable Expenses1
Increased by 5.2 percent
Diluted Earnings per Share and Adjusted Diluted Earnings per Share1 of $0.53
Sequential Headcount Increase of 150, and Increase of 930 Year-Over-Year
Quarterly Dividend of $0.17 per share, Payable on August 31, 2017
McLean, Virginia – Booz Allen Hamilton Holding Corporation (NYSE:BAH), the parent company of management and technology consulting and engineering services firm Booz Allen Hamilton Inc., today announced preliminary results for the first quarter of fiscal 2018.
For the first quarter, the Company reported an increase in revenue of 5.0 percent as compared to the prior year quarter, and a 5.2 percent increase in Revenue, Excluding Billable Expenses as compared to the prior year quarter, with solid growth in bottom-line earnings. Headcount increased since the prior quarter by 150, and year-over-year by 930. Total backlog increased by 17 percent, reaching a record high, and generating a book-to-bill ratio of 1.32, the best first quarter result since the Company’s initial public offering.
“For the last five years, Booz Allen has been building toward sustainable, quality growth by pursuing an innovation agenda and integrating advanced capabilities, mission knowledge, and consulting expertise into solutions that our clients need most,” said Horacio Rozanski, President and Chief Executive Officer. “As fiscal year 2018 opens, Booz Allen is proud to see growth throughout our portfolio—continuing in our civil and global commercial markets, and accelerating in defense and intelligence.”
The Company declared a regular quarterly dividend of $0.17 per share, which is payable on August 31, 2017, to stockholders of record on August 14, 2017.
First Quarter Ended June 30, 2017 – A summary of Booz Allen’s results for the first quarter of fiscal 2018 is below. All comparisons are to the prior year quarter, and a description of key drivers can be found in the Company’s Earnings Call Presentation for the first quarter of fiscal year 2018 posted on investors.boozallen.com.
- Revenue: $1.49 billion, an increase of 5.0 percent.
- Revenue, Excluding Billable Expenses:1 $1.04 billion, an increase of 5.2 percent.
- Operating Income: $139.5 million, an increase of 7.9 percent; and Adjusted Operating Income:1 $139.5 million, an increase of 6.9 percent.
- Net Income: $79.5 million, an increase of 17.3 percent; and Adjusted Net Income:1 $79.9 million, an increase of 15.4 percent.
- Adjusted EBITDA1: $154.9 million, an increase of 7.7 percent.
- Diluted EPS: $0.53, up from $0.45; and Adjusted Diluted EPS1: $0.53, up from $0.46.
As of June 30, 2017, total backlog was $14.1 billion, compared to $12.0 billion as of June 30, 2016, an increase of 17 percent. Net cash provided by operating activities was $4.0 million as compared $11.6 million in the prior year period. Free cash flow1 for the first quarter was $(7.5) million, compared with $5.5 million in the prior year period.
1 Revenue, Excluding Billable Expenses, Adjusted Operating Income, Adjusted Net Income, Adjusted EBITDA, Adjusted Diluted EPS, and Free Cash Flow are non-GAAP financial measures. See “Non-GAAP Financial Information” below for additional detail.
For our full fiscal year 2018 we are updating our Diluted and Adjusted Diluted EPS guidance. The change solely reflects the impact of a $6.9 million excess tax benefit attributable to the adoption of ASU 2016-09, the new accounting standard related to share-based compensation. We are reaffirming our Revenue guidance.
- Revenue: Growth in the 4 to 7 Percent Range
- Diluted EPS: $1.80 - $1.90
- Adjusted Diluted EPS: $1.83 - $1.93
These EPS estimates are based on fiscal 2018 estimated average diluted shares outstanding of approximately 149.5 million shares, and assumes an effective tax rate in the range of 37 percent to 38 percent.
Conference Call Information
Booz Allen will host a conference call at 8:00 a.m. EDT on Monday, August 7, 2017, to discuss the financial results for its first quarter fiscal 2018 (ended June 30, 2017). Analysts and institutional investors may participate on the call by dialing (877) 375-9141 International: (253) 237-1151. The conference call will be webcast simultaneously to the public through a link on the investor relations section of the Booz Allen Hamilton web site at investors.boozallen.com. A replay of the conference call will be available online at investors.boozallen.com beginning at 11:00 a.m. EDT on August 7, 2017, and continuing for 30 days.