Delta Tucker Holdings, Inc., the parent of DynCorp International Inc., a global services provider, today reported fourth quarter and full year 2013 financial results.
DI’s fourth quarter revenue was $711.8 million, compared with fourth quarter 2012 revenue of $1,025.8 million, with the decrease primarily driven by reduced needs in Iraq and Afghanistan. For the full year 2013, the Company reported revenue of $3.3 billion, compared with $4.0 billion for the year ended December 31, 2012. The decrease was primarily driven by reduced service needs in Iraq, affecting both the Department of State Bureau for International Narcotics and Law Enforcement Air Wing (“INL Air Wing”) and Worldwide Protective Services (“WPS”) contracts; the accelerated pace of the drawdown in Afghanistan, which impacted the demand for services under the Company’s Logistics Civil Augmentation Program (“LOGCAP IV”) contract and caused reduced training needs under the Afghanistan Ministry of Defense Program (“AMDP”) contract; fewer new contract wins and the delay in business awards caused by the U.S. budget uncertainty and sequestration.
Net loss attributable to Holdings was $253.7 million for 2013, an increase of $244.8 million from the net loss attributable to Holdings reported in 2012, with the decline driven primarily by the factors discussed above and the impact of a charge related to a contract dispute that occurred in the third quarter of 2013.
“Despite prolonged delays in new business awards, sequestration and the first U.S. government shutdown in 17 years, the team was still able to hold our win rates constant, identify and deliver cost efficiencies, and continue to delight our customers,” said Steve Gaffney, DynCorp International chairman and chief executive officer. “We expected to feel the impact of op-tempo changes in Afghanistan – and we did – but held our focus on quality service, and continuing to develop the new commercial leg of our business.”
Full year 2013 highlights include:
- Fourth quarter revenue of $711.8 million; 2013 revenue of $3.3 billion
- Fourth quarter Adjusted EBITDA of $37.1 million; 2013 Adjusted EBITDA of $180.5 million
- Fourth quarter net loss attributable to Delta Tucker Holdings, Inc. of $244.0 million
- Total backlog of $4.0 billion
- Days Sales Outstanding of 69 Days
- Debt reduction of $50.0 million during the year
Fourth Quarter and Other Recent Highlights
- In November 2013, the Company was awarded a task order under the Contract Field Teams (“CFT”) program to support the U.S. Navy Fleet Readiness Center Aviation Support Equipment headquartered at Solomons, Md. The DynAviation task order, awarded by the U.S. Air Force, has one base year with a total potential value of $27.0 million.
- In December 2013, we made principal prepayments of $35.0 million, on our Term Loan. The payment caused the acceleration of unamortized deferred financing fees of $0.5 million, which were recorded as Loss on extinguishment of debt within our Statement of Operations.
- In December 2013, the Company ceased use of its previous headquarters located in Falls Church, Va., and relocated to new headquarters in McLean, Va. The Company restructured its facilities footprint in Virginia to better position the Company operationally for the future.