FALLS CHURCH, Va. – July 30, 2007 (BUSINESS WIRE) — DynCorp International Inc.(NYSE: DCP), a provider of specialized mission-critical technicalservices to civilian and military government agencies, todayannounced its results for the first quarter ended June 29,2007.
First Quarter 2008 Results Compared to First Quarter2007
Revenue for the first quarter of fiscal 2008 was $548.7 million,a 2.0% increase over revenue of $537.7 million for the firstquarter of fiscal 2007. Revenue for the Government Services (GS)segment, which represented 65% of Company revenue in the firstquarter, decreased to $358.0 million for the first quarter offiscal 2008, down $0.9 million or 0.3% from the comparable periodin fiscal 2007. GS revenue was impacted by task order losses underthe Worldwide Personal Protective Services program and completionof construction projects under the CIVPOL program. Offsetting thesereductions were revenue increases on the International Narcoticsand Law Enforcement program, construction work in Africa andadditional services in Afghanistan on the CIVPOL program. Revenuefor the Maintenance and Technical Support Services (MTSS) segmentfor the first quarter of fiscal 2008 increased to $190.7 million,up $11.9 million or 6.7% as compared to the first quarter of fiscal2007. MTSS revenue, which represented 35% of Company revenue in thefirst quarter of fiscal 2008, benefited from a new contract underwhich the Company provides logistics support services to the U.S.Air Force C-21 fleet.
Operating income was $31.7 million in the first quarter offiscal 2008 compared to $28.8 million in the first quarter offiscal 2007, a 10.0% increase. Operating margin was 5.8%, ascompared to operating margin of 5.4% in the first quarter of fiscal2007. Operating margin increased by 0.4% of revenue primarily dueto improved contract performance. Earnings per share increased froma loss of $0.01 for the first quarter of fiscal 2007 to earnings of$0.22 for the first quarter of fiscal 2008. Earnings Per Share forthe first quarter of fiscal 2007 was negatively impacted by $12.2million from interest on preferred stock and the earlyextinguishment of debt and preferred stock
Earnings before interest, taxes, depreciation and amortization(EBITDA) in the first quarter of 2008 increased 8.7% to $44.4million as compared to $40.8 million in first quarter of fiscal2007.
Total debt was $595.5 million at June 29, 2007, a reduction of$35.5 million from March 30, 2007. Of this total, $34.6 million wasdue to an Excess Cash Flow payment requirement under the terms ofour credit agreement. Accounts receivable as of June 29, 2007 was$496.1 million, up from $462.0 million as of March 30, 2007 whichresulted in a corresponding increase in Days Sales Outstanding(DSO) to 74 days from 67 days. This increase was primarily due topayment timing issues related to a system change with theDepartment of State.
Backlog as of June 29, 2007 was $6.0 billion. Included in thistotal is $3.3 billion from the linguist and translation servicescontract awarded by the U.S. Army Intelligence and Security Command(INSCOM) to Global Linguist Solutions LLC (GLS), a joint venture ofDynCorp International and McNeil Technologies. The incumbentcontractor’s protest of the award to GLS was sustained by theGovernment Accountability Office (GAO). The company’s backlog andestimated remaining contract value metrics may require futureadjustment depending on the outcome of future procurement actionstaken by the U.S. Army in implementing the GAO’srecommendation.
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