- Revenue up 34.3% to $837.3 million from Q2 FY10, adjusted forthe deconsolidation of the GLS JV. Reported revenue up 1.9%.
- Net income attributable to DynCorp International of $8.6million, down $11.9 million.
- Adjusted EBITDA of $58.6 million, down $7.5 million from Q2FY10.
- Funded Backlog up 32.7% sequentially, on LOGCAP IV strength andCTSC-A win.
- New executive management team in place and focused on enhancingbusiness development and streamlining corporate structure.
FALLS CHURCH, Va. ( November 15, 2010) -DynCorp International Inc., a provider of specializedmission-critical services to civilian and military governmentagencies, today reported financial results for its second quarterof fiscal year 2011 ended October 1, 2010.
Summary of Operating Results
Revenue for the quarter was $837.3 million, up 34.3% from thecomparable period in fiscal year 2010, adjusted for thedeconsolidation of our linguist joint venture (“GLS”) whichrecorded $198.1 million of revenue in the second quarter of fiscalyear 2010. Revenue gains in the quarter were driven by ourLogistics Civil Augmentation Program (“LOGCAP IV”) operations whichproduced revenue of $330.2 million. Additionally, our Counter-Drugand Law Enforcement Aviation revenue grew 23.2% as demand increasedfor secure aviation transport in Iraq and Afghanistan. Partiallyoffsetting this increase was a decline in the revenue earned underour Training & Mentoring service offering due to lower servicelevels in Iraq.
Net income attributable to DynCorp International of $8.6 milliondecreased $11.9 million from the comparable period in fiscal year2010 primarily due to operational factors described below, expensesassociated with our merger with Cerberus Capital Management L.P.(“Cerberus”), employee separation costs, higher legal expenses,higher amortization of intangible assets resulting from the Mergerand higher interest expense associated with our new debt.
Adjusted EBITDA of $58.6 million decreased $7.5 million from thecomparable period in fiscal year 2010 primarily due to a change inrevenue mix. Earnings in our Training & Mentoring businessdecreased as revenue declined. The increase in profitability due torevenue gains at our LOGCAP IV program did not offset the Training& Mentoring earnings headwind as the LOGCAP IV program carrieslower base operating margins. No award fees have been recognized onthe LOGCAP IV Afghanistan task order to date as the finaldetermination of the Award Fee Board is still pending.
Additionally, the Company settled a claim on the Life CycleContractor Support (“LCCS”) program which provided $9.5 million ofrevenue and income in the quarter.
Total funded backlog as of October 1, 2010 was $1.9 billion,which increased by $478 million as compared to $1.5 billion as ofJuly 2, 2010. This increase was primarily driven by new or modifiedtask and delivery orders on the LOGCAP IV program and the CSTC-Aaward.
Operating cash flow for the second quarter of fiscal year 2011resulted in a net use of cash of $10.8 million, compared to $27.9million of cash provided by operating activities for the secondquarter of fiscal year 2010. Operating cash flow for the quarterwas impacted by additional working capital investment and ongoingbilling efforts with the Department of State.
Please click here to download the full story.