DynCorp International parent, Delta Tucker Holdings, Inc., reported first quarter 2014 financial results.
“Despite the slowdown in contract awards that has been recognized across our industry, we saw the team continue to capture new business at an impressive win rate and I am cautiously optimistic about the almost $6 billion in proposals that are currently submitted and awaiting award across the three businesses,” said Steve Gaffney, chairman and CEO. “With the drawdown in the Middle East, our focus remains on growth from our core into new areas through our commercial and internationally-focused business, DynGlobal, and through innovative partnerships created in our DynAviation and DynLogistics Groups.”
Bill Kansky, chief financial officer, added, “As the slowing operational tempo of the war pressures our revenues we need to realize lower working capital levels, which will allow us to continue to retire our outstanding debt. As previously communicated, the Company expects to pay down at least $50 million of debt in 2014, and we are on-plan through the first quarter as we made a $15 million prepayment on our term loan.”
First Quarter and Other Recent Highlights
- In January 2014, DynLogistics announced the award of a subcontract to provide training assistance in support of the Afghan Engineer Training Security Assistance Team. DI will perform as a subcontractor to GovSource, Inc., a provider of professional and training services to the U.S. government, on the U.S. Army Security Assistance Training Management Organization (USASATMO) task order under the SATMO indefinite delivery, indefinite quantity (IDIQ) contract. The firm fixed-price subcontract has a one year period of performance and a total value of $6.4 million.
- In January 2014, DynLogistics announced the award of a new task order under the Air Force Contract Augmentation Program III (AFCAP) to provide engineering design and support services in the United Arab Emirates (UAE). The competitively-awarded task order has a one-year base period with two, one-year options and a total contract value of $4.4 million, if all options are exercised.
- In February 2014, DynLogistics’ Casals & Associates announced that it has been awarded a position on a multiple award, indefinite quantity contract (IQC) to support U.S. Agency for International Development (USAID) transition initiatives in Africa, Latin America and the Caribbean as part of the Support Which Implements Fast Transition IV (SWIFT IV) program. Task Orders will be competed individually. The competitively-awarded, multiple award IQC has a five year period of performance with a total shared ceiling contract value of $2.5 billion.
- In February 2014, DynLogistics announced the award of a contract by the Naval Facilities Engineering Command-Pacific (NAVFAC Pacific) to provide operations support services in Cambodia. The contract has a one-year base period with four, one-year options for a total contract value of $8.5 million, if all options are exercised.
- In March 2014, the U.S. Air Force awarded DynAviation a task order under the Contract Field Teams (CFT) contract to provide aviation maintenance support to the 512th Airlift Wing at Dover Air Force Base. The competitively-awarded task order has one base year with one, one-year option, and a total potential value of $8.5 million.
- In March 2014, DynAviation announced the award of a contract to provide aviation maintenance services throughout the Theater Aviation Sustainment Manager – OCONUS (TASM-O) region under the Army Aviation Field Maintenance (AFM) contract. The hybrid firm fixed price, cost-plus incentive fee contract has a one year base with four, one year options and a total potential contract value of $307.1 million.
- In March 2014, DynLogistics announced the award of a subcontract from APRO International Inc. to provide Precision Measurement Equipment Laboratories (PMEL) in support of the U.S. Air Force. DI will perform as a subcontractor to APRO on the Air Force Enterprise Contracted (AFEC) PMEL IDIQ contract. The subcontract has a one year base period and four, one-year options for a total potential value of $9 million.
- During the quarter, DynGlobal announced the opening of its London office, home to DynCorp International (UK), in order to support the pursuit of opportunities in the United Kingdom, continental Europe and Africa.