DynCorp (NYSE: DCP) has reported their fiscal 2010 fourth quarter and fiscal year 2010 financial results.
“Solid program performance resulted in record revenue and EBITDA for both the quarter and the fiscal year, ” said William L. Ballhaus, DynCorp International’s Chief Executive Officer. “Our results reflect our continued commitment to execute our strategy to grow our customer base, revenue and cash flow by defending and growing our core business, expanding our presence in platform support and stabilization/development and penetrating new market segments.”
Specific figures are as follows:
“Revenue for the fourth quarter of fiscal year 2010 grew by 30.9% to $1, 063.7 million from fourth quarter fiscal year 2009 revenue of $812.8 million as a result of the ramp-up of the LOGCAP IV program and our recent acquisitions of Phoenix Consulting Group, Inc. (Phoenix) and Casals. Revenue growth was partially offset by reductions in our Contract Field Teams (CFT) program and staffing reductions on our Intelligence and Security Command (INSCOM) contract.
Operating income for the recently completed quarter increased to $57.2 million, or 5.4% of revenue, as compared to $49.8 million, or 6.1% of revenue, in the fourth quarter of fiscal year 2009 driven by growth from our LOGCAP IV program, WPPS programs in Iraq and Pakistan and our MNSTC-I program, and the wind-down of construction projects in our Infrastructure strategic business area (SBA) for which losses were recognized in fiscal year 2009. Also contributing positively to operating income was a $10.0 million reversal of a legal reserve related to the WWNS case. Partially offsetting these increases were expenses associated with our acquisition of Casals in January 2010, expenses associated with the proposed Merger and declines on our CFT program due to the completion of several task orders, for which we did not win the recompetes. Operating income as a percentage of revenue was lower than the prior year primarily due to LOGCAP IV which operated at margins lower than our historical average due to award fee timing, shifts in task orders issued under our Civilian Police program to lower margin cost reimbursable type from higher margin fixed price work and the decline in our CFT program, as discussed above.”