Engility Holdings Inc fka EGL

[ThatGuy42]

Engility Reports Fourth Quarter And Full Year 2014 Results
Official Press Release

FULL FINANCIALS ARE PROVIDED AT THE LINK ABOVE.
This post is a summary of the provided information, since the tables don't copy/paste nicely here.

Engility Reports Fourth Quarter And Full Year 2014 Results
Fourth quarter revenue of $320 million and GAAP diluted EPS of $0.14
Fourth quarter adjusted operating margin of 7.5% and adjusted diluted EPS of $0.67
Book-to-bill ratio of 1.0x for fourth quarter 2014
Fourth quarter 2014 cash flow from operations of $22 million and $102 million for fiscal year 2014
CHANTILLY, Va.--(BUSINESS WIRE)--Mar. 3, 2015-- Engility Holdings, Inc. (NYSE: EGL) today announced financial results for the fourth quarter and full year ended December 31, 2014.

Fourth Quarter 2014 Results

Total revenue for the fourth quarter of 2014 was $320 million and operating income was $13 million. Adjusted operating income for the fourth quarter was $24 million. Operating margin for the fourth quarter of 2014 was 4.2% and adjusted operating margin for the same period was 7.5%. Net income attributable to Engility was $2 million, or $0.14 per diluted share. Adjusted net income attributable to Engility was $12 million, or $0.67 per diluted share. Our adjusted net income and adjusted operating margin exclude $9 million of TASC and Dynamics Research Corporation (DRC) acquisition and integration costs, and $2 million of additional amortization of intangible asset expenses associated with our acquisition of DRC. Information about our use of non-GAAP financial information is provided below under "Non-GAAP Measures".

"From a bookings perspective, we had a strong second-half of 2014," said Tony Smeraglinolo, President and CEO of Engility. "During the third quarter and fourth quarter of 2014, we achieved a book-to-bill ratio that exceeded 1.0x. We also were able to deliver strong cash flow results for the year and achieved top and bottom line results that were within our fiscal year 2014 guidance ranges. Although contract awards have increased and our market appears to be more stable, we still are experiencing delayed contract award and start dates, which is reflected in our fourth quarter revenue performance."

"Last week, we announced the closing of our TASC acquisition, which truly is a significant milestone in our young history as a public company. The combination of our two complementary businesses is transformational and represents an opportunity to create a top-tier government services company. This acquisition is expected to substantially increase our free cash flow, be significantly accretive to 2016 adjusted EPS and nearly double our revenue which will enhance our cost competitiveness. It also is consistent with our growth strategy to further balance and diversify our customer base and capabilities, add substantial scale to our business and increase our addressable market. We look forward to bringing our highly efficient business model to TASC's customers," said Smeraglinolo.

Key Performance Indicators

* Contract funded orders in the fourth quarter of 2014 were $334 million, compared to $357 million in the fourth quarter of 2013. The book-to-bill ratio for the fourth quarter of 2014 was 1.0x, compared to 1.1x in the fourth quarter of 2013.
* Funded backlog was $602 million in both the fourth quarter of 2014 and the fourth quarter of 2013.
* Days sales outstanding (DSO) at the end of 2014, net of advanced payments, was 74 days, compared to 73 days at the end of 2013.
* Cash flow from operations was $22 million for the fourth quarter of 2014 and $102 million for fiscal year 2014.


Significant Fourth Quarter 2014 Awards and Recognition

* Awarded a prime position on a contract valued at $66 million to provide technical, management, and analysis support to the John A. Volpe Transportation Systems Center. Specifically, we will support the ongoing development, evaluation, and management of the Federal Aviation Administration’s (FAA) Automatic Dependent Surveillance - Broadcast (ADS-B) program. ADS-B will provide the linchpin technology for the FAA’s Next-Generation Air Transportation System (NextGen).
* Awarded a prime position on a $61 million single award indefinite-delivery/indefinite-quantity (IDIQ) contract to provide Engineering Services and related research, development, test and evaluation efforts to Naval Air Warfare Center, Weapons Division (NAWCWD). This work also will include the full spectrum of test engineering services, as well as transition engineering and related efforts to transfer new technology from concept to Fleet support. Work will be performed at China Lake, California, Point Mugu, California and Patuxent River, Maryland.
* Awarded a prime position on a $51 million contract to provide technical, management and analysis support to John A. Volpe Transportation Center. Under this contract, Engility will support the on-going development, evaluation, and management of programs within the Air Traffic Systems Directorate of the FAA's Air Traffic Operations (ATO) Program Management Office.
* Awarded a prime position on a $38 million contract by the Defense Threat Reduction Agency (DTRA) to provide support for the cloud-based Constellation Combating Weapons of Mass Destruction (WMD) Situational Awareness system. Under this contract, Engility will provide systems integration and engineering services.
* Awarded a $27.6 million contract to provide product and technical support for the development and testing of the Naval Avionics Platform Integration Emulator systems for U.S. Navy platforms. Under this contract, Engility will provide program management, engineering services, system architecture, guidance quality analysis, test planning, flight test data analysis, and field support to the Air Traffic Control (ATC) Systems Division, NAWCAD.
* Awarded a $27.5 million contract to provide a broad range of technical services support to the ATC Systems Division of NAWCAD. Under this contract, Engility will assist the Navy in developing technologies for performing automated aerial refueling with commercial and military tankers and manned and unmanned air systems.
* Engility ranked 12th among the top 100 Military Friendly Employers by Victory Media, publisher of G.I. Jobs and Military Spouse magazines. This designation was based upon a data-driven survey of more than 5,000 companies and assesses a company's long-term commitment to hiring former military personnel, as well as having the presence of special military recruitment programs, among other items.
Fiscal Year 2014 Results

For fiscal year 2014, total revenue was $1.4 billion and operating income was $83 million. Adjusted operating income for fiscal year 2014 was $107 million. Operating margin for the 2014 full year was 6.1% and adjusted operating margin for the same period was 7.8%. Net income attributable to Engility was $35 million, or $1.97 per diluted share. Adjusted net income was $53 million, or $2.96 per diluted share. Our adjusted net income and adjusted operating margin excludes $1 million of restructuring and legal and settlement costs, $6 million of additional amortization of intangible asset expenses associated with our DRC acquisition and $17 million of acquisition and integration-related expenses associated with our DRC and TASC acquisitions.

Information about our use of non-GAAP financial information is provided below under "Non-GAAP Measures".

2015 Guidance

Since the TASC acquisition closed three business days ago, ahead of our original schedule, we will provide 2015 financial guidance shortly after we present the consolidated plan to the new Engility board in mid-March. When we issue guidance, it will include ten months of TASC’s performance.

Non-GAAP Measures

The tables under "Engility Holdings, Inc. Reconciliation of Non-GAAP Measures" present Adjusted Operating Income, Adjusted Operating Margin, Earnings before Interest, Taxes, Depreciation, and Amortization (EBITDA), Adjusted EBITDA, EBITDA Margin, Adjusted EBITDA Margin, Adjusted Net Income, and Adjusted Diluted EPS, reconciled to their most directly comparable GAAP measure. These financial measures are calculated and presented on the basis of methodologies other than in accordance with U.S. generally accepted accounting principles ("Non-GAAP Measures"). Engility has provided these Non-GAAP Measures to adjust for, among other things, the impact of transaction and integration costs and amortization expenses related to our acquisitions of TASC and DRC, as well as restructuring and legal and settlement costs. These items have been adjusted because they are not considered core to the Company’s business or otherwise not considered operational or because these charges are non-cash or non-recurring. The Company presents these Non-GAAP Measures because management believes that they are meaningful to understanding Engility’s performance during the periods presented and the Company’s ongoing business. Non-GAAP Measures are not prepared in accordance with GAAP and therefore are not necessarily comparable to similarly titled metrics or the financial results of other companies. These Non-GAAP Measures should be considered a supplement to, not a substitute for, or superior to, the corresponding financial measures calculated in accordance with GAAP.