BTG Reports 2nd Quarter, Six-Month Financial Results; Posts Strong Increases in EBITDA, Operating Income and Net Earnings
FAIRFAX, Va.--(BUSINESS WIRE)--Oct. 25, 2000--BTG, Inc. (Nasdaq: BTGI), an information systems and technical services company, today announced unaudited financial results for its fiscal year 2001 second quarter, which ended Teptember 30, 2000.
Net income from continuing operations was $1.3 million for the quarter, and diluted earnings per share were $0.14. Revenue for the quarter was $54.8 million, down from the $63.9 million reported in the same period last year. This was due to an 83% decrease in product sales resulting from BTG's divestiture of its product reselling contracts in late 1999.
The company's operating income for the three months was $3.1 million, a 23% increase from last year's second quarter; operating profit margin increased to 5.7%, compared to 4.0% for the same period in fiscal 2000. Earnings before interest, taxes, depreciation, and amortization (EBITDA) were $3.8 million, or a fully diluted cash flow per share of $0.42. This compares to EBITDA of $3.0 million, or a fully diluted cash flow per share of $0.33, for the same period last year.
For the first six months of fiscal 2001, net income from continuing operations was $2.7 million, a 26% increase from the same period last year. Diluted earnings per share were $0.30, a 30% increase over the $0.23 reported in the first half of fiscal 2000. Revenue from the company's core information systems and technical services business increased from $101.1 million last year to $110.4 million this year. Total revenue for the six months was $114.7 million, down from $130.2 million reported last year, again due to the company's decision to significantly reduce its efforts in the product reselling business.
For the first six months of fiscal 2001, operating income was $6.5 million, a 39% increase from last year. Operating profit margin increased to 5.7%, compared to 3.6% for the same period in fiscal 2000. EBITDA was $7.8 million or a fully diluted cash flow per share of $0.86. This is a 34% increase from the EBITDA of $5.8 million and a fully diluted cash flow per share of $0.64 reported for the first half of last fiscal year.
BTG President and CEO Edward H. Bersoff said the company continues to improve its operating results while investing significantly in business development opportunities. "We have expanded and strengthened our business development and operations efforts with the hiring of several key individuals focused on our targeted markets. We have identified additional larger contract opportunities and the business development team is aggressively pursuing new and extended business. The results are beginning to show in new and foll w-on contract awards. Our bid-and-proposal backlog at the end of September was $311.5 million and we have identified another $693 million in qualified pursuits for a total business pipeline in excess of one billion dollars. Our contract backlog - work that we are already contracted to perform, and a significant indicator of future growth - increased to $441 million."
Bersoff said new and expanded contract awards since the beginning of the second quarter include the following:
--The company was recently awarded a $69 million, five-year contract for the Joint Deployable Intelligence Support System (JDISS.)
--BTG received two awards from the Joint Staff at the Pentagon under the Information Technology Omnibus Procurement (ITOP-II) contract: a $23 million contract for information technology support services that range from help desk operations to administration of the Joint Staff training program; and an $8 million information technology engineering, integration, and logistics support contract for systems planning, requirements analysis, integration engineering, computer lab testing and logistics activities.
--BTG is a partner on the Veridian team selected as one of the primary information assurance providers on the $1.5 billion Defense Information systems Agency (DISA) contract for information security services.
--The company won a series of new awards, with an estimated value of $8 million over three years, to provide Remedy-based solutions for trouble management and report management systems for defense and intelligence agencies.
--BTG was awarded multiple delivery orders on contracts for the U.S. Army Intelligence and Security Command. The new orders have an estimated value of $5.5 million to BTG over the next year.
Bersoff added that the company continues to make progress in reduction of long-term debt. As of September 30, total debt was $34.7 million, down from the $38.4 million reported at the end of the first quarter. He said the reduction of debt continued into the third quarter. On Monday, October 23, 2000, BTG received proceeds of approximately $5.5 million in cash from the sale of 1.3 million shares of common stock in GTSI Corp., representing all of BTG's remaining holdings in GTSI. The shares were repurchased by GTSI. Bersoff said that the company will recognize a pre-tax, non-operating loss in the third quarter of $910,000 in connection with the sale. However, he noted that by agreement with GTSI, BTG had been effectively prohibited from selling any portion of its holdings until February 2004. "Although we will recognize a non-operating loss from this transaction, liquidating this invest}ent several years before we would otherwise have been able to do so is clearly in the best interests of the company since it converts a restricted asset into cash." With these proceeds, plus cash flow from operations since October 1st, BTG's total debt as of October 25, is $32 million. |
