FALLS CHURCH, Va. (Oct. 4, 2006) – DynCorpInternational Inc. (the “Company”) (NYSE: DCP) has revisedfull-year revenue guidance down from $2.4 billion to a range of$2.1 to $2.2 billion for the fiscal year ending March 30, 2007.This estimate is based on current backlog and management’s estimateof future contract awards.
For the second quarter, which ended September 29, 2006, theCompany will recognize one-time charges of approximately $18million related to three events: a $5 million severance expense asa result of the departure of senior executives; a charge of $5million to finish construction for a camp in Iraq for theDepartment of State; and $8 million related to a security contractfor a customer in Saudi Arabia.
As a result of continuing cost reductions and strong programperformance, the one-time charges will be offset during the balanceof the year. Earnings before interest, taxes, depreciation andamortization (EBITDA) guidance for the full year remains unchangedat $163.6 million, and Earnings per share (“EPS”) guidance also isunchanged at $0.47 per share.
Full year adjusted EBITDA also remains unchanged at $170.0million, along with pro forma diluted EPS at $0.71 and diluted cashEPS at $1.48.
Herb Lanese, the Company’s President and CEO, said, “I’m verypleased with the company’s cost reduction and streamlining efforts.These efforts not only enhance performance on current contracts,but also improve our competitiveness.”
About DynCorp International
DynCorp International is a provider of specializedmission-critical technical services to civilian and militarygovernment agencies. Headquartered in Falls Church, Virginia, ithas more than 14,000 employees in some 30 countries. For moreinformation, visit www.dyn-intl.com.
Certain statements made in this announcement may constitute”forward-looking statements” within the meaning of Section 27A ofthe Securities Act, as amended, and Section 21E of the SecuritiesExchange Act of 1934, as amended, regarding the expectations ofmanagement with respect to revenues and profitability. All of theseforward-looking statements are based on estimates and assumptionsmade by the Company’s management that, although believed by theCompany to be reasonable, are inherently uncertain. Forward-lookingstatements involve risks and uncertainties, including, but notlimited to, economic, competitive, governmental, and technologicalfactors outside of its control that may cause its business,strategy or actual results or events to differ materially from thestatements made herein. These risks and uncertainties may includebut are not limited to the following: changes in the demand forservices that the Company provides; additional work awarded underthe Civilian Police and International Narcotics and Law Enforcementcontracts; pursuit of new commercial business in the United Statesand abroad; activities of competitors; changes in significantoperating expenses; changes in availability of capital; generaleconomic and business conditions in the United States; acts of waror terrorist activities; variations in performance of financialmarkets; and other risks detailed from time to time in theCompany’s reports filed with the Securities and ExchangeCommission.
Given these risks and uncertainties, you are cautioned not toplace undue reliance on forward-looking statements. The Company’sactual results could differ materially from those contained in theforward-looking statements. The Company undertakes no obligation topublicly update or revise any forward-looking statement as a resultof new information, future events or otherwise, except as requiredby law.