July 30, 2018
Strong Performance Consistent with Three-Year Goals
Revenue Increase of 8.1 percent to $1.65 billion, and Revenue, Excluding Billable Expenses1 Growth of 9.2 percent
Diluted Earnings Per Share and Adjusted Diluted Earnings Per Share1, both of $0.72
21.4 percent Increase in Total Backlog to $17.1 Billion, New Record Since IPO; and Record First Quarter Book-to-Bill of 1.64x
Quarterly Dividend of $0.19 per Share
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 2019.
The Company delivered strong first quarter results that support its fiscal year 2019 guidance, as well as the investment thesis detailed at Booz Allen’s Investor Day in June.
“We are capitalizing on the unique position in the market that we have created by transforming Booz Allen over the past six years,” said Horacio Rozanski, President and Chief Executive Officer. “Our clients now have the resources to do what they have wanted and needed to do for several years: integrate leading-edge technology into their most important missions.”
The Company reported first-quarter revenue growth of 8.1 percent, and a 9.2 percent increase in revenue, excluding billable expenses.1 The strong top-line growth contributed to a 25.1 percent increase in Adjusted EBITDA1 to $177.8 million, and Adjusted EBITDA margin on revenue1 was 10.8 percent. Adjusted diluted earnings per share1 for the quarter was $0.72, up 53.2 percent.
Total backlog increased by 21.4 percent over the prior year period to $17.1 billion and the book-to-bill ratio for the first quarter was 1.64. Headcount was 4.7 percent above the end of the prior year period, with a slight sequential decline in the first quarter.
The Company adopted two accounting standards, ASC 606 and ASU 2017-07, both effective April 1, 2018; accordingly, the first quarter fiscal 2018 results have been restated. Adoption of these two standards is factored into fiscal 2019 guidance and is not expected to be material to full-year results. Additional information on the revenue and operating income impacts of adopting these accounting standards is available in the Company’s Form 10-Q for the first quarter of fiscal 2019.
The Company declared a regular quarterly dividend of $0.19 per share, which is payable on August 31, 2018, to stockholders of record on August 14, 2018.
First Quarter, Ended June 30, 2018 – A summary of Booz Allen’s results for the first quarter of fiscal 2019 is below. All comparisons are to the prior year period, as restated, and a description of key drivers can be found in the Company’s Earnings Call Presentation for the first quarter posted on investors.boozallen.com.
· Revenue: $1.65 billion, an increase of 8.1 percent.
· Revenue, Excluding Billable Expenses:1 $1.17 billion, an increase of 9.2 percent.
· Operating Income and Adjusted Operating Income:1 Each $161.6 million, and each an increase of 27.6 percent.
· Net Income: $104.2 million, an increase of 47.6 percent; and Adjusted Net Income:1 $104.7 million, an increase of 47.4 percent.
· EBITDA and Adjusted EBITDA:1 Each $177.8 million, and each an increase of 25.1 percent.
· Diluted EPS and Adjusted Diluted EPS:1 Each $0.72, and each up from $0.47.
As of June 30, 2018, total backlog was $17.1 billion, compared to $14.1 billion as of June 30, 2017, an increase of 21.4 percent. Net cash used in operating activities for the first quarter of fiscal 2019 was $(27.0) million as compared to $4.0 million in net cash provided by operating activities in the prior year period. Free cash flow1 for the first quarter was $(47.5) million, compared with $(7.5) million in the prior year period.
1 Revenue, Excluding Billable Expenses, Adjusted Operating Income, Adjusted Net Income, Adjusted EBITDA, Adjusted Diluted EPS, Adjusted EBITDA Margin on Revenue and Free Cash Flow are non-GAAP financial measures. See “Non-GAAP Financial Information” below for additional detail.
For our fiscal 2019, we are reaffirming guidance issued on May 29, 2018:
· Revenue: Growth in the 6 to 8 percent range
· Adjusted Diluted EPS: 1 $2.35 - $2.50
This EPS estimate is based on fiscal 2019 estimated average diluted shares outstanding in the range of 141 million to 145 million shares, and assumes an effective tax rate in the range of 25 percent to 27 percent, which reflects recent changes in U.S. tax law.
Conference Call Information
Booz Allen will host a conference call at 8 a.m. EDT on Monday, July 30, 2018, to discuss the financial results for its First Quarter of Fiscal 2019 (ended June 30, 2018).
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 a.m. EDT on July 30, 2018, and continuing for 30 days.