DynCorp International parent, Delta Tucker Holdings, Inc., recently reported second quarter 2013 financial results. Second quarter revenue decreased $84.6 million, or 8.8%, to $876.5 million compared to second quarter 2012, primarily driven by lower content under the Company’s Logistics Civil Augmentation Program (LOGCAP) IV contract and reduced demand for training needs as the war in Afghanistan winds down. This was partially offset by a $67.2 million increase in revenue from the Aviation Group based on the improved performance of the Contract Field Team (CFT), NASA Aircraft Maintenance Operational Support program and T-6 Contractor Operated and Maintained Base Supply (T6-COMBS) contracts.
Net income attributable for the second quarter 2013 was $8.3 million, representing a decrease of $0.7 million compared to second quarter 2012. Net income attributable was primarily impacted by reduced demand for services related to the declining operational tempo in the war in Afghanistan. This was partially offset by continued growth of the DynAviation business, lower interest expense during the quarter as a result of the $90 million reduction in long-term debt during 2012 and lower selling, general and administrative expenses. The Company reported adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $48.6 million for the second quarter, representing 5.5% of revenue, and a 6.2% decrease from the same period in 2012.
“No matter how tough the operational tempo, this quarter showed that our 30,000 employees and team mates around the world are dedicated to coming together, pulling in the same direction, delivering outstanding services to our customers all while improving operating margins,” said Steve Gaffney, chairman and CEO. “During the quarter, we implemented organizational changes that are already improving our operational efficiency and reducing costs.”
Second Quarter Highlights
- In April 2013, the Company amended its organizational structure to improve efficiencies within existing businesses, capitalize on new opportunities, continue international growth and expand commercial business. The Company’s previous six operating and reporting segments, Logistics Civil Augmentation Program (LOGCAP), Aviation, Training and Intelligence Solutions (TIS), Global Logistics and Development Solutions (GLDS), Security Services and Global Linguist Services (GLS) into three reporting and operating segments – DynAviation, DynLogistics and DynGlobal.
- In April 2013, DynLogistics was awarded a task order with the U.S. Department of State’s Bureau of International Narcotics and Law Enforcement Affairs under the Criminal Justice Program Support Contract (CJPS) to recruit and support the U.S. contingent to the U.N. Police in Haiti and provide logistics support to the Haitian National Police. The hybrid firm-fixed price, labor hour, and cost-reimbursable task order has one base year, three, one-year options, and a total potential contract value of $48.6 million.
- In June 2013, DynLogistics was awarded a contract with the Defense Logistics Agency to provide logistics support for the agency’s equipment in Afghanistan. The fixed-price task order has one base year, two one-year options and a total potential contract value of $11.2 million.
- In June 2013, DynLogistics was awarded a position on a multiple award IDIQ contract under which work will be awarded through separately issued task orders to provide supplies and support services to the U.S. Marine Corps. The multiple award IDIQ has one base year, four one-year options, and a total potential contract value of $854.6 million.