Stanley Reports Financial Results for Fourth Quarter and Fiscal Year 2009
Highlights:
- Fourth Quarter revenues up 22%, 10% organic(1), to
- Fiscal Year 2009 revenues up 29%, 19% organic(1), to
- Fiscal Year 2009 operating income up 39%, operating margin 8.5%; and
- Diluted EPS of
(Logo: http://www.newscom.com/cgi-bin/prnh/20040106/DCTU010LOGO )
Fourth-quarter and fiscal year 2009 revenues were at the high end of company guidance, and diluted EPS exceeded the high end of company guidance by
Fourth-Quarter Fiscal Year 2009 Results:
Revenues for the fourth quarter ended
Net income for the quarter was
Contract backlog at
Fourth-Quarter Fiscal Year 2009 and Recent Operational Highlights:
- Fourth-quarter bookings totaled
$103 million . Fiscal 2009 bookings totaled$955 million , equating to a book-to-bill ratio of 1.2:1. - Among recent new business awards and additional tasking:
- A
$120 million , three-year, time-and-materials contract to provide lifecycle software engineering services to the U.S. Army; - Nearly
$30 million in awards with classified customers in the intelligence community; - A
$19.3 million , five-year, time-and-materials contract to provide engineering and advanced component technology services, including micro-, nano-, and photonic-technology research and development, for the U.S. Army Weapons Sciences Directorate, Research Development and Engineering Command; - A
$1.7 million , one-year, cost-plus-incentive fee contract for Biometric Multispectral Fingerprinting by the U.S. Army Information Technology, E-Commerce and Commercial Contracting Center – West; - A 10-year multiple award/indefinite-delivery, indefinite-quantity (MA/IDIQ) Alliant contract by the U.S. General Services Administration; and
- A five-year MA/IDIQ contract to support the development and training of Battle Command technology with the U.S. Army Fires support communities.
- A
Fiscal Year 2009 Results:
For the fiscal year ended
Net income for fiscal year 2009 was
Cash flow from operations for fiscal year 2009 was
“I am very pleased with Stanley’s performance in fiscal year 2009, particularly the growth realized in our IT and intelligence business areas, which contributed significantly to margin improvement,” said
Management’s Outlook:
Based on the company’s current contract backlog and management’s estimate as to future tasking and contract awards, Stanley is issuing guidance for its first quarter and full fiscal year 2010. The table below represents management’s current expectations about future financial performance, based on information available at this time:
First Quarter Fiscal Year Fiscal Year 2010
2010 Ending Ending
June 26, 2009 March 31, 2010
Revenues $206 - $215 million $850 - $930 million
Diluted EPS $0.41 - $0.43 $1.65 - $1.79
Diluted projected share count 23.8 - 23.9 million 24.1 - 24.2 million
As previously announced, Stanley will conduct a conference call today at
About Stanley, Inc.
Stanley (NYSE: SXE) is a provider of information technology services and solutions to U.S. defense, intelligence and federal civilian government agencies. Stanley offers its customers systems integration solutions and expertise to support their mission-essential needs at any stage of program, product development or business lifecycle through five service areas: systems engineering, enterprise integration, operational logistics, business process outsourcing, and advanced engineering and technology. Headquartered in
Any statements in this press release about our expectations about future financial performance, plans and prospects, including statements containing the words “estimates,” “anticipates,” “plans,” “expects” and similar expressions, constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors discussed in our Annual Report on Form 10-K for the fiscal year ended
Condensed Consolidated Statements of Income
(unaudited)
(in thousands, except per share amounts)
Three Months Ended Fiscal Year Ended
March 31, March 31, March 31, March 31,
2009 2008 2009 2008
Revenues $212,437 $173,539 $779,679 $604,342
Operating costs and
expenses:
Cost of revenues 177,897 148,705 653,672 512,243
Selling, general and
administrative 13,011 9,060 49,114 37,242
Amortization of deferred
compensation 62 62 250 267
Depreciation and
amortization 2,944 1,690 9,988 6,695
Total operating costs
and expenses 193,914 159,517 713,024 556,447
Operating income 18,523 14,022 66,655 47,895
Other income (expense):
Other income 6 3 26 19
Interest expense - net (1,256) (659) (5,397) (3,779)
Total other expenses (1,250) (656) (5,371) (3,760)
Income before taxes 17,273 13,366 61,284 44,135
Provision for income taxes (6,765) (5,652) (24,054) (17,971)
Net income $10,508 $7,714 $37,230 $26,164
Earnings per share:
Basic $0.46 $0.34 $1.63 $1.18
Diluted $0.44 $0.33 $1.56 $1.12
Weighted-average shares:
Basic 22,910 22,474 22,819 22,133
Diluted 23,823 23,557 23,814 23,414
Condensed Consolidated Balance Sheets
(unaudited)
(in thousands, except share and per share data)
March 31, 2009 March 31, 2008
Assets
Current Assets:
Cash $1,811 $271
Accounts receivable - net 187,680 160,928
Prepaid and other current assets 6,766 4,644
Total current assets 196,257 165,843
Property and equipment - net 19,552 12,894
Goodwill 262,705 113,615
Intangible assets - net 15,557 8,088
Deferred taxes 4,212 3,343
Other assets 3,269 2,272
Total assets $501,552 $306,055
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $21,528 $29,628
Accrued expenses and other liabilities 79,841 62,649
Current portion of long-term debt 1,000 1,000
Income taxes payable 2,034 5,836
Total current liabilities 104,403 99,113
Line of credit 135,030 -
Long-term debt - net of current portion 34,500 35,500
Other long-term liabilities 10,396 4,738
Total liabilities 284,329 139,351
Commitments and contingencies:
Stockholders' equity
Common stock 238 228
Additional paid-in capital 96,957 83,970
Retained earnings 121,434 84,204
Accumulated other comprehensive loss (886) (929)
Deferred compensation (520) (769)
Total stockholders' equity 217,223 166,704
Total liabilities and
stockholders' equity $501,552 $306,055
Organic Revenue Growth Reconciliation
(unaudited)
(in thousands)
Three Months Ended
March 31, 2009 March 31, 2008 Percent Growth
Total revenues, as reported $212,437 $173,539 22%
Plus: Revenues from acquired
companies for the comparable
prior year period - 19,991
Organic revenues $212,437 $193,530 10%
Fiscal Year Ended
March 31, 2009 March 31, 2008 Percent Growth
Total revenues, as reported $779,679 $604,342 29%
Plus: Revenues from acquired
companies for the comparable
prior year period - 50,925
Organic revenues $779,679 $655,267 19%
EBITDA Reconciliation
(unaudited)
(in thousands)
Three Months Ended Fiscal Year Ended
March 31, March 31, March 31, March 31,
2009 2008 2009 2008
Net income $10,508 $7,714 $37,230 $26,164
Provision for income taxes 6,765 5,652 24,054 17,971
Interest expense - net 1,256 659 5,397 3,779
Other income (6) (3) (26) (19)
Depreciation and amortization 2,944 1,690 9,988 6,695
Amortization of deferred
compensation 62 62 250 267
EBITDA $21,529 $15,774 $76,893 $54,857
Revenue $212,437 $173,539 $779,679 $604,342
EBITDA Margin 10.1% 9.1% 9.9% 9.1%
(1) Organic revenue growth, as presented, measures revenue growth adjusted
for the impact of acquisitions. Stanley believes that this non-GAAP
financial measure provides useful information because it allows management
and investors to better assess the underlying growth rate of the company's
existing business. This non-GAAP financial measure should not be
considered in isolation or as a substitute for measures of performance
prepared in accordance with GAAP. Please see the reconciliation table at
the end of this release.
(2) EBITDA is a non-GAAP measure that is defined as GAAP net income (loss)
plus other expense (income), interest expense, income taxes, and
depreciation and amortization. We believe EBITDA is useful to investors
because it is one of the measures used by our board of directors and
management to evaluate our business and we believe it is a commonly used
measure of financial performance in comparable companies and is provided
to help investors evaluate companies on a consistent basis, as well as to
enhance an understanding of our operating results. EBITDA should not be
construed as either an alternative to net income as an indicator of our
operating performance or as an alternative to cash flows as a measure of
liquidity. Please refer to the table at the end of this release that
reconciles GAAP net income to EBITDA.
SOURCE Stanley, Inc.