DynCorp International parent, Delta Tucker Holdings, Inc., recently reported first quarter 2013 financial results. Highlights include revenue of $932.1 million and adjusted EBITDA of $53.3 million.
“Despite U.S. government budget issues and the shifting focus in Afghanistan, our team delivered increased earnings and strong EBITDA margins while managing a reduction in the top line,” said Steve Gaffney, chairman and CEO. “Looking ahead, as organizational changes that were made in the beginning of the second quarter mature, I expect to see even more opportunity arise. Our new structure will help us achieve efficiencies in our existing businesses while introducing a new business Group that will fuel international commercial growth. This refined organization will help us become more effective and successful in delivering our services globally.”
First quarter revenue decreased $115.0 million or 11% to $932.1 million compared to first quarter 2012, primarily driven by lower content under the Logistics Civil Augmentation Program IV contract as the war in Afghanistan winds down. This was partially offset by a $61.3 million increase in revenue from the Aviation Group based on the continued strength of new contract wins from 2012. Net income attributable for the first quarter 2013 was $15.0 million, representing a $9.4 million improvement compared to first quarter 2012. Net income attributable to Holdings benefited from improved operating profitability, reduced interest expense based on the $90 million reduction in long-term debt during 2012. The Company reported adjusted EBITDA of $53.3 million for the first quarter, representing 5.7% of revenue, a 28.8% increase from the same period in 2012.
First Quarter and Other Recent Highlights
- In February, DI was awarded a contract within its Aviation Group to provide aviation maintenance services throughout the Regional Aviation Sustainment Maintenance – West Region (RASM-W), under the Army Field Maintenance (AFM) contract. The competitively-awarded hybrid firm fixed price, cost-plus incentive fee, contract has one base year with four, one-year options, and a total contract value of $388.5 million.
- In March 2013, DI was awarded a contract within its Global Logistics and Development Services (GLDS) Group with the U.S. Army to provide training, deprocessing, fielding, general maintenance support and other services to military units in the U.S. and abroad. The fixed-price level of effort contract has one base year, two, one-year options and a total potential contract value of $35.3 million.
- In April 2013, to improve efficiencies within existing businesses, capitalize on new opportunities, continue international growth and expand commercial business, the organizational structure was amended. The Company consolidated five Groups, which included the LOGCAP, Aviation, Training and Intelligence Solutions, GLDS, and Security Services, into three Groups: DynAviation, DynLogistics and DynGlobal. The financial results will reflect the new organizational structure beginning with second quarter 2013.