- Revenue up 20% year over year to $364 million FAIRFAX, Va., Nov.
7 /PRNewswire-FirstCall/ -- SRA International, Inc. (NYSE:SRX), a
leading provider of technology and strategic consulting services
and solutions to federal government organizations, today announced
operating results for the first quarter of fiscal year 2008, which
ended September 30, 2007. Revenue for the quarter was $364.1
million, up 20% from $304.0 million in the September 2006 quarter.
Operating income for the quarter was $29.9 million, for an
operating margin of 8.2%. Net income was $18.5 million, for a net
margin of 5.1%. Diluted earnings per share for the quarter were
$0.31, up $0.05 year over year. These first quarter financial
results include the effect of the Constella Group acquisition as of
August 9, 2007. Constella contributed about $30 million of revenue
and was accretive to earnings per share. SRA President and CEO Stan
Sloane said, "We're pleased to see solid returns on our marketing
and sales investments. Despite the challenging market conditions,
we've bolstered our backlog with a number of valuable wins, and
we've continued to devote more resources to the next wave of bid
opportunities." CFO and Executive Vice President for Operations
Stephen Hughes added, "One of the tenets of our strategic plan is
to drive G&A cost efficiencies to increase our investment in
business and employee development and to expand margins, and we
were highly successful on those fronts in the quarter. Cash flows
were also strong as we held Days Sales Outstanding to 69 days,
equaling our best figure to date." New Business Awards The Company
won new business in the first quarter with potential value of $829
million, if all options are exercised. As of September 30, 2007,
the Company's backlog of signed business orders was $4.0 billion,
an increase of 10% year over year. Constella's contract backlog is
included in that total. Major highlights of recent competitive
contract awards include: -- U.S. Navy, Space and Naval Warfare
Systems Command (SPAWAR). The Navy awarded SRA a five-year, $80
million task order to provide program and acquisition management
support to its Networks, Information Assurance and Enterprise
Services Program Office in San Diego. -- Department of Justice. SRA
won a three-year, $59 million task order to continue implementing
an enterprise-wide infrastructure architecture for the Justice
Department. Services include systems engineering, network
management, software development and information assurance. --
Small Business Administration (SBA), Disaster Credit Management
System (DCMS). SRA was awarded a four-year, $30 million task order
to host the DCMS, a Web-enabled loan processing system that the
Company has had a separate contract to operate and maintain since
2002. This new task order involves program management and managed
network, security, storage and disaster recovery services for the
system. -- Department of Homeland Security (DHS), Sector Specific
Agency Executive Management Office (SSA EMO). DHS awarded SRA a
five-year, $25 million task order to provide programmatic and
technical support to the SSA EMO, which coordinates national
infrastructure protection programs. -- U.S. Central Command
(USCENTCOM), Joint Intelligence Operations Center. SRA won a
3.5-year, $22 million task order to provide intelligence planning
and analysis support to USCENTCOM. SRA was also awarded several
multiple-award, indefinite delivery, indefinite quantity (ID/IQ)
contracts in the September quarter. ID/IQ wins are not included in
the Company's quarterly bookings figure, but they provide a solid
foundation for future growth. The largest ID/IQ that the Company
won in the September quarter was Alliant, a General Services
Administration contract vehicle with a $50 billion ceiling value
over 10 years. The contract is currently under protest. Forward
Guidance SRA is providing forward guidance for the second quarter
and fiscal year 2008. The table below represents management's
current expectations about the Company's future financial
performance, based on information available at this time. The
forward guidance in this table does not include any effect for
acquisitions SRA might make in the future. Measure Quarter Ending
Fiscal Year Ending December 31, 2007 June 30, 2008 Revenue (in
millions) $370-$380 $1,500-$1,560 Diluted EPS At least $0.28
$1.20-$1.26 Diluted Share Equivalents (in millions) 59.6 59.8
Conference Call SRA senior management will hold a conference call
to discuss these operating results and forward guidance today at
5:00 PM Eastern. Interested parties may listen to the conference
call by dialing (888) 287-9905 (U.S./Canada) or (706) 643-7540
(Other) with passcode 19411259. The conference call will be Webcast
simultaneously through a link on the SRA Web site
(http://www.sra.com/). A replay of the conference call will be
available approximately two hours after the conclusion of the call
through November 21, 2007 by dialing (800) 642-1687 (U.S./Canada)
or (706) 645-9291 (Other) and entering passcode 19411259. About SRA
International, Inc. SRA is a leading provider of technology and
strategic consulting services and solutions -- including systems
design, development, and integration; and outsourcing and managed
services -- to clients in national security, civil government, and
health care and public health markets. The Company also delivers
business solutions for contingency and disaster response planning,
information assurance, business intelligence, environmental
strategies, enterprise architecture, infrastructure management, and
wireless integration. FORTUNE(R) magazine has chosen SRA as one of
the "100 Best Companies to Work For" for eight consecutive years.
The Company's 6,300 employees serve clients from its headquarters
in Fairfax, Virginia, and offices around the world. For additional
information on SRA, please visit http://www.sra.com/. Any
statements in this press release about future expectations, plans,
and prospects for SRA, including guidance about future financial
results and statements about the estimated value of contracts and
work to be performed, and other statements containing the words
"estimates," "believes," "anticipates," "plans," "expects," "will,"
and similar expressions, constitute forward-looking statements
within the meaning of The Private Securities Litigation Reform Act
of 1995. Actual results may differ materially from those indicated
by such forward-looking statements as a result of various important
factors, including: our dependence on our contracts with federal
government agencies, particularly within the U.S. Department of
Defense, for substantially all of our revenue; our dependence on
our GSA schedule contracts and our position as a prime contractor
on government-wide acquisition contracts to grow our business; our
ability to attract and retain skilled employees; any reductions in
or reallocations of the U.S. defense budget or the budgets for
civil government agencies; the market price of the company's stock
prevailing from time to time; the nature of other investment
opportunities presented to the company from time to time; the
company's cash flows from operations; and other factors discussed
in our latest quarterly report on Form 10-K filed with the
Securities and Exchange Commission on August 16, 2007. In addition,
the forward-looking statements included in this press release
represent our views as of November 7, 2007. We anticipate that
subsequent events and developments will cause our views to change.
However, while we may elect to update these forward-looking
statements at some point in the future, we specifically disclaim
any obligation to do so. These forward- looking statements should
not be relied upon as representing our views as of any date
subsequent to November 7, 2007. Condensed Consolidated Statements
of Operations (Unaudited) (in thousands, except share and per share
amounts) Three Months Ended 30-Sep-07 30-Sep-06 Revenue $364,127
$304,034 Operating costs and expenses: Cost of services 274,969
228,059 Selling, general and administrative 53,118 48,404
Depreciation and amortization 6,167 4,740 Total operating costs and
expenses 334,254 281,203 Operating income 29,873 22,831 Interest
expense (853) (10) Interest income 1,599 1,853 Income before taxes
30,619 24,674 Provision for income taxes 12,160 9,553 Net income
$18,459 $15,121 Earnings per share: Basic $0.32 $0.27 Diluted $0.31
$0.26 Weighted-average shares: Basic 57,287,034 55,981,631 Diluted
59,152,948 57,964,502 Condensed Consolidated Balance Sheets
(Unaudited) (in thousands) As of 9/30/07 6/30/07 Current assets:
Cash and cash equivalents $103,070 $212,034 Restricted funds 855 -
Short-term investments 85 85 Accounts receivable, net 321,819
262,409 Prepaid expenses and other 27,538 26,285 Deferred income
taxes, current 11,174 5,860 Total current assets 464,541 506,673
Property and equipment, net 41,385 36,685 Other assets: Goodwill
387,484 256,530 Identified intangibles, net 44,372 30,849 Deferred
income taxes, noncurrent 6,947 8,163 Deferred compensation trust
8,588 8,784 Other assets 10,714 - Total other assets 458,105
304,326 Total assets $964,031 $847,684 Current liabilities:
Accounts payable and accrued expenses $135,485 $110,897 Accrued
payroll and employee benefits 81,447 81,711 Billings in excess of
revenue recognized 17,993 16,980 Total current liabilities 234,925
209,588 Long-term liabilities: Long-term debt 50,000 - Other
long-term liabilities 25,641 12,641 Total long-term liabilities
75,641 12,641 Total liabilities 310,566 222,229 Stockholders'
equity 653,465 625,455 Total liabilities and stockholders' equity
$964,031 $847,684 Condensed Consolidated Statements of Cash Flows
(Unaudited) (in thousands) Three Months Ended 9/30/07 9/30/06 Cash
flows from operating activities: Net income $18,459 $15,121
Adjustments to reconcile net income to net cash provided by
operating activities: Depreciation and amortization 6,167 4,740
Stock-based compensation 2,183 3,275 Deferred income taxes (4,098)
(550) Working capital changes, net of the effect of acquisitions
(1,203) 22,135 Net cash provided by operating activities 21,508
44,721 Cash flows from investing activities: Capital expenditures
(1,794) (3,652) Sales and maturities of investments - 4,922
Acquisition of Constella Group, LLC, net of cash acquired (185,812)
- Net cash (used in) provided by investing activities (187,606)
1,270 Cash flows from financing activities: Issuance of common
stock 6,134 1,689 Tax benefits of stock option exercises 1,462 895
Borrowings (repayments) under credit facility, net of associated
financing costs 49,676 - Purchase of treasury stock (138) - Net
cash provided by financing activities 57,134 2,584 Net (decrease)
increase in cash and cash equivalents (108,964) 48,575 Cash and
cash equivalents, beginning of period 212,034 173,564 Cash and cash
equivalents, end of period $103,070 $222,139 Supplemental
disclosures of cash flow information: Cash paid during the period:
Interest $400 $10 Income taxes $7,989 $7,221 Cash received during
the period: Interest $1,769 $1,616 Income taxes $84 $314
Reconciliation Between Total Revenue Growth and Organic Revenue
Growth (Unaudited) (in thousands) Organic revenue growth, as
presented, measures revenue growth adjusted for the impact of
acquisitions. The Company believes that this non-GAAP financial
measure provides useful information because it allows investors to
better assess the underlying growth rate of the Company's existing
business. This non-GAAP financial measure should not be considered
in isolation or as a substitute for measures of performance
prepared in accordance with GAAP. Three Months Ended 9/30/07
9/30/06 % Increase Total Revenue, as reported $364,127 $304,034
19.8% Plus: Revenue from acquired companies for the comparable
prior year period - 40,826 Organic Revenue $364,127 $344,860 5.6%
DATASOURCE: SRA International, Inc. CONTACT: David Keffer, Vice
President, Investor Relations, +1-703-502-7731, , or Stephen
Hughes, CFO and Executive VP, Operations, +1-703-502-7732, , both
of SRA International, Inc. Web site: http://www.sra.com/
Copyright
Sra (NYSE:SRX)
Historical Stock Chart
From Jun 2024 to Jul 2024
Sra (NYSE:SRX)
Historical Stock Chart
From Jul 2023 to Jul 2024