Falls Church, Va. - (May 13, 2011) - Delta Tucker Holdings, Inc. ("Holdings"), the parent of DynCorp International Inc. ("DI", and together with Holdings, the "Company"), a global government services provider supporting U.S. national security and foreign policy objectives, today reported first quarter 2011 financial results.
"I am pleased with our operating results in the first quarter, which were primarily driven by higher award fee scores from our LOGCAP program, " said Steven F. Gaffney, DynCorp International chairman and chief executive officer. "These results directly reflect the team's efforts to focus on satisfying our customers, improving processes and growing the business. The operational efficiencies and organizational realignment that we began last fall are allowing us to compete more effectively and leverage the unique spectrum of capabilities that DI offers."
First Quarter 2011 Highlights
Summary of First Quarter 2011 Operating Results
Revenue of $884.3 million was down $9.7 million or 1.1%
from the comparable prior year quarter, adjusted for the
deconsolidation of GLS, which recorded $159.8 million of revenue
for the first quarter of 2010. The comparable revenue decline
was driven primarily by the loss of the Life Cycle Contract Support
(LCCS)-Army contract, which transitioned in November 2010, and the
completion of both the African Peacekeeping (APK) task order in
Somalia and the Qatar guard contract under our Security Services
business. Lower volume on the Mine Resistant Ambush Protected
Vehicle (MRAP) program and the International Civilian Police
Program (CivPol) also contributed to the decline. These
declines were offset by revenue gains from the Contingency
Operations business, primarily from LOGCAP IV contract, which
produced revenue of $379.3 million, a 17.0% increase over the first
quarter 2010. Additionally, the Company experienced revenue
increases from its Training and Mentoring business, primarily from
the Combined Security Transition Command Afghanistan (CSTC-A),
Multinational Security Transition Command-Iraq (MNSTC-I) contracts,
and the addition of the Afghanistan National Police-Ministry of
Interior (ANP-MoI) contract (formally NATO Training
Mission-Afghanistan), which ramped-up during the quarter to replace
the CivPol Afghanistan work under the Department of State.
Additionally, revenue in the period benefited from increased demand
for secure aviation transport under the INL Air Wing contract with
the Department of State.
Net income attributable to Delta Tucker Holdings, Inc. of $4.9 million, represents a decrease of $14.6 million from the comparable period in 2010. The decline primarily relates to increased Selling, general and administrative expenses due to cost associated with the restructuring announced in January, higher amortization of intangibles resulting from the Merger and increased interest expenses associated with the company's new debt.
Adjusted EBITDA of $55.6 million for the first quarter 2011 was flat to the comparable period in 2010.
Global Stabilization and Development Solutions (GSDS)
First Quarter Highlights:
GSDS segment revenue of $575.5 million represents 65.1% of
our total revenue for the three months ended April 1, 2011, an
increase of 3.8% over the first quarter 2010. GSDS reported
adjusted EBITDA of $26.4 million for the first quarter 2011, an
18.2% increase from the comparable period in 2010. The
performance was primarily driven by the following:
Contingency Operations:
Training and Mentoring:
Security Services:
Global Platform Support Solutions (GPSS) First Quarter
Highlights:
GPSS segment revenue of $306.2 million represents 34.6% of
our total revenue for the three months ended April 1, 2011, a
decrease of 9.8% over the first quarter 2010. GPSS also
reported adjusted EBITDA of $18.8 million for the first quarter
2010, a 28.2% decrease from the comparable period in 2010.
The results were primarily driven by the following:
Aviation:
Air Operations:
Operations and Maintenance:
Global Linguist Solutions (GLS) First Quarter Highlights:
Total backlog as of April 1, 2011 of $4.3 billion represents a
decrease of approximately $488.0 million since December 31, 2010.
The decrease was primarily due to timing of orders.
Cash From Operating Activities (CFOA) of $25.8 million for the
first quarter of 2011 benefited from $48.1 million in tax refunds,
including $46.0 million from an approved change in accounting
method, but was negatively impacted by an increase in working
capital primarily driven by higher DSO from the CivPol
contract.
Conference Call
The Company will host a conference call at 10:00 a.m. EDT
on Friday, May 13, 2011 to discuss results for the first quarter
2011. The call may be accessed by webcast or through a
dial-in conference line.
To access the webcast and view the accompanying presentation, please go to www.dyn-intl.com, click on "Investor Relations" and "Events & Presentations." Please go to the site approximately fifteen minutes prior to the start of the call to register, download and install any necessary audio software.
To participate by phone, dial (866) 871-0758 and enter the conference ID number: 65254985. International callers should dial (706) 634-5249 and enter the same conference ID number above.
A telephonic replay will be available from 1:00 p.m. EDT on May 13th, 2011 through 11:59 PM EDT June 13, 2011. To access the replay, please dial (800) 642-1687 or (706) 645-9291 and enter the conference ID number.
About DynCorp International
DynCorp International Inc., a wholly owned subsidiary of Delta
Tucker Holdings, Inc., is a global government services provider in
support of U.S. national security and foreign policy objectives,
delivering support solutions for defense, diplomacy, and
international development. DynCorp International operates major
programs in logistics, platform support, contingency operations,
and training and mentoring to reinforce security, community
stability, and the rule of law. DynCorp International is
headquartered in Falls Church, Va. For more information, visit www.dyn-intl.com.
Reconciliation to GAAP
In addition to the Company's financial results reported in
accordance with accounting principles generally accepted in the
United States of America ("GAAP") included in this press release,
the Company has provided certain financial measures that are not
calculated according to GAAP. Management believes these non-GAAP
financial measures are useful in evaluating operating performance
and are regularly used by security analysts, institutional
investors and other interested parties in reviewing the Company.
Non-GAAP financial measures are not intended to be a substitute for
any GAAP financial measure and, as calculated, may not be
comparable to other similarly titled measures of the performance of
other companies.
For a reconciliation of non-GAAP financial measures to the comparable GAAP financial measures please see the financial schedules accompanying this release.
Forward-looking Statements
Certain statements made in this announcement may
constitute "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995, regarding the
expectations of management with respect to revenue and
profitability. All of these forward-looking statements are based on
estimates and assumptions made by the Company's management that,
although believed by the Company to be reasonable, are inherently
uncertain. Forward-looking statements involve risks and
uncertainties, including, but not limited to, economic,
competitive, governmental, and technological factors outside of the
Company's control that may cause its business, strategy or actual
results or events to differ materially from the statements made
herein. These risks and uncertainties may include, but are not
limited to, the following: the future impact of mergers (including
the Merger with affiliates of Cerberus Capital Management L.P.
which was completed on July 7, 2010), acquisitions, joint ventures
or teaming agreements; our substantial level of indebtedness and
changes in availability of capital and cost of capital; the outcome
of any material litigation, government investigation, audit or
other regulatory matters; policy and/or spending changes
implemented by the Obama Administration, any subsequent
administration or Congress; termination or modification of key
United States ("U.S.") government or commercial contracts,
including subcontracts; changes in the demand for services that we
provide or work awarded under our contracts, including without
limitation, the CivPol, INL Air Wing, WPPS and LOGCAP IV contracts;
pursuit of new commercial business in the U.S. and abroad;
activities of competitors and the outcome of bid protests; changes
in significant operating expenses; impact of lower than expected
win rates for new business; general political, economic, regulatory
and business conditions in the U.S. or in other countries in which
we operate; acts of war or terrorist activities; variations in
performance of financial markets; the inherent difficulties of
estimating future contract revenue and changes in anticipated
revenue from indefinite delivery, indefinite quantity
contracts; the timing or magnitude of any award fee granted
under our government contracts, including, but not limited to,
LOGCAP IV; changes in expected percentages of future revenue
represented by fixed-price and time-and-materials contracts; lower
than anticipated award fee determinations by the U.S. government;
and other risks detailed from time to time in the Company's
financial statements and reports to investors posted on its
website. Given these risks and uncertainties, you are cautioned not
to place undue reliance on forward-looking statements. The
Company's actual results could differ materially from those
contained in the forward-looking statements. The Company undertakes
no obligation to publicly update or revise any forward-looking
statement as a result of new information, future events or
otherwise, except as required by law.
Company Contact:
Chris Porter
Vice President and Treasurer
(817) 224-7742
Christopher.Porter@dyn-intl.com
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