November 06, 2017
Excellent First-Half Performance Demonstrates Fundamental Strength of the Business
Revenue Increased by 10.6 percent to $1.54 billion, and Revenue, Excluding Billable Expenses1 Increased by 7.5 percent
Diluted Earnings per Share of $0.47 and Adjusted Diluted Earnings per Share1 of $0.48
Sequential Headcount Increase of 771, and Increase of Nearly 1,500 Year-Over-Year
Record Total Backlog and Second Highest Book-to-bill Since Company’s IPO
Quarterly Dividend of $0.17 per share, Payable on November 30, 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 second quarter of fiscal 2018.
The Company demonstrated further progress in differentiating itself through innovation and advanced capabilities, reporting another quarter of accelerating top-line growth, along with exceptional performance in winning new business and attracting talent. The strong first-half performance maintains Booz Allen’s position as the government services industry’s organic revenue growth leader.
“Booz Allen had another quarter of strong operational performance,” said Horacio Rozanski, President and Chief Executive Officer. “We are meeting demand in the market precisely where client needs are greatest: the point where technology meets mission. This creates sustainable quality growth that we believe is likely to continue accelerating.”
Headcount increased by 771 during the quarter, and year-over-year by nearly 1,500. Total backlog increased by 22.3 percent, reaching a record high at $16.7 billion, and generating a book-to-bill ratio of 2.7, the second highest result since the Company’s initial public offering.
The Company declared a regular quarterly dividend of $0.17 per share, which is payable on November 30, 2017, to stockholders of record on November 14, 2017.
- Second Quarter Ended September 30, 2017 – A summary of Booz Allen’s results for the second quarter of fiscal 2018 is below. All comparisons are to the prior year quarter, and a description of key drivers for the quarter can be found in the Company’s Earnings Call Presentation for the second quarter of fiscal year 2018 posted on investors.boozallen.com.
- Revenue: $1.54 billion, an increase of 10.6 percent.
- Revenue, Excluding Billable Expenses:1 $1.06 billion, an increase of 7.5 percent.
- Operating Income: $126.5 million, an increase of 7.5 percent; and Adjusted Operating Income:1 $126.5 million, an increase of 3.7 percent.
- Net Income: $70.9 million, an increase of 12.9 percent; and Adjusted Net Income:1 $71.3 million, an increase of 3.1 percent.
- Adjusted EBITDA:1 $142.5 million, an increase of 5.0 percent.
- Diluted EPS: $0.47, up from $0.41; and Adjusted Diluted EPS:1 $0.48, up from $0.46.
As of September 30, 2017, total backlog was $16.7 billion, compared to $13.6 billion as of September 30, 2016, an increase of 22.3 percent and a record high for the Company. The Company ended the quarter with a cash balance of $330 million, and during the quarter paid approximately $25 million in dividends and repurchased about 3.5 million shares. In the first half, the Company has deployed nearly $220 million in the form of regular dividends and share repurchases. Net cash provided by operating activities was $178 million as compared to $217 million in the prior year period. Free cash flow1 for the second quarter was $148.6 million, compared with $196.5 million in the prior year period.
First Half Fiscal 2018 – Booz Allen’s cumulative performance for the first and second quarters of fiscal 2018 has resulted in:
- Revenue: $3.04 billion, an increase of 7.7 percent.
- Revenue, Excluding Billable Expenses:1 $2.1 billion, an increase of 6.3 percent.
- Operating Income: $266.0 million, an increase of 7.7 percent; and Adjusted Operating Income:1 $266.0 million, an increase of 5.4 percent.
- Net Income: $150.5 million, an increase of 15.2 percent; and Adjusted Net Income:1 $151.2 million, an increase of 9.2 percent.
- Adjusted EBITDA:1 $297.4 million, an increase of 6.4 percent.
- Diluted EPS: $1.00, up from $0.86; and Adjusted Diluted EPS:1 $1.01, up from $0.92.
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 reaffirming guidance issued on August 7:
- Revenue: Growth in the 4 to 7 Percent Range
- Diluted EPS: $1.80 - $1.90
- Adjusted Diluted EPS:1 $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. EST on Monday, November 6, 2017, to discuss the financial results for its second quarter fiscal 2018 (ended September 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. EST on November 6, 2017, and continuing for 30 days.