BTG Reports Year-End and 4th Quarter Results
Street Consensus Met
FAIRFAX, Va.--(BUSINESS WIRE)--May 23, 2001-- BTG, Inc. (Nasdaq: BTGI - news), an information systems and technical services company, reported audited year-end and fourth quarter financial results for its fiscal year 2001, which ended March 31, 2001.
The company said revenue and earnings were up significantly from the previous quarter, while indirect costs and debt both declined.
Net income for the year was $2.7 million, compared to $4.4 million reported in the previous year. Fully diluted earnings per share (EPS) for fiscal 2001 were $0.30, compared to $0.49 in fiscal 2000. Revenue from the company's core information systems and technical services business increased 7%, from $204.2 million in fiscal 2000 to $217.6 million in this year. Total revenue was $224.8 million compared to $249.0 million in fiscal 2000. This reduction was due to an 84% decrease in product sales resulting from management's decision to divest its product reselling unit in February 1998 and to discontinue its remaining product reselling contracts in late 1999. The final orders from those contracts have now been fulfilled and the company anticipates minimal product sales revenue in future periods.
Operating income for fiscal 2001 was $8.5 million, versus $10.0 million in fiscal 2000. Earnings from continuing operations before interest, taxes, depreciation, and amortization (EBITDA) were $11.5 million, or a fully diluted cash-flow-per-share of $1.28, compared to $12.3 million, or a fully diluted cash-flow-per-share of $1.36, in fiscal 2000.
For the fourth quarter of fiscal 2001, BTG reported total revenue of $58.8 million. Revenue from the company's core information systems and technical services business was $57.3 million, an increase of 6% over last year's services revenue. Net income for the quarter was $1.1 million; fully diluted EPS was $0.12; and EBITDA was $3.2 million, or a fully diluted cash-flow-per-share of $0.36.
BTG President and CEO Ed Bersoff said: ``The results of the fourth quarter clearly show that the processes recently put in place by the company have begun to allow us to more effectively control and manage indirect costs and cash flow, while increasing services revenue. During our third quarter, we built an infrastructure to manage the growth we anticipated from the company's civilian and state and local business units. The revenue did not develop as projected and, in certain cases, was simply delayed by the failure of the federal government to pass a budget at the start of its fiscal year on October 1, 2000. In addition, the uncertainty associated with the Presidential election and the changing of the administration resulted in some funding delays.''
``Late in our third quarter, BTG's management team identified the factors causing those disappointing results and set out to correct them. We aggressively pursued revenue in the fourth quarter and succeeded in increasing services revenue by 15% from the previous quarter and 6% from the same period last year. Additionally, we focused on controlling costs and developed a cost structure that corresponds and adjusts more quickly to sales volume. Indirect, general and administrative expenses as a percentage of services revenue decreased 480 basis points from the previous quarter, and 100 basis points from the fourth quarter of last year. We managed our cash effectively, ending the year with total debt of $23.9 million, compared to $29.3 million at the end of the third quarter and $34.7 million just six months ago.''
Bersoff added: ``We have made good progress and are encouraged by our financial improvement. But to ensure that we are managing all aspects of our business in real time, we have developed a series of ongoing metrics that focus on profitable revenue growth, improved margins, reduced costs, lower turnover, and continued effective cash management. I am confident that these initiatives and others will continue to help us further improve the company's performance in fiscal 2002 and beyond.''
In addition to the company's results, Bersoff highlighted the following recent successes:
On April 2, the company acquired Research Planning, Inc. (RPI), a professional services firm with 450 employees, 90% of whom hold security clearances required by many of the government customers of both companies. RPI provides services in defense programs, emergency management, and range technology and base support to customers in the federal government.
On May 14, BTG announced that it had been awarded a contract for the seven-year, $60 million Integrated Broadcast Service (IBS) program for the Department of Defense. The award was the culmination of a year-long competition for the IBS program by three separate teams led by BTG, Lockheed Martin, and TRW. Bersoff said the contract win allows BTG to combine its years of experience in the defense intelligence community with the company's extensive capabilities in information management and data fusion.
BTG was one of five companies awarded a contract in April by the U.S. General Services Administration to provide cost engineering services to federal agencies. BTG's contract is for one year, with up to four one-year option periods, and has a not-to-exceed value of $5 million per year.
BTG also opened a new operation in Calvert County, Maryland on May 8 to provide software development and integration services to a growing base of customers, including the Naval Air Systems Command, the Naval Research Laboratory, the National Security Agency, the Internal Revenue Service, the Food and Drug Administration, Lockheed Martin, General Dynamics, and Computer Sciences Corporation. |
