The information in these press releases was accurate at the time of posting but may have been superseded by subsequent news releases.
IRVING, TEXAS – August 4, 2005 –
DynCorp International, LLC and its subsidiaries (collectively, the
"Company"), a leading professional services and project management firm
serving government and industry, today reported revenue of $1.9 billion
and net income of $58.8 million for the 12-month period that ended
April 1, 2005.
Full Year Operating Results
The Company reported revenue of $1.9 billion, adjusted EBITDA of $118.4
million and net income of $58.8 million for the fiscal year. Revenue
increased 58.3 percent when compared to revenue from the prior year of
$1.2 billion. The Company´s revenue increase is primarily the result of
a significant contract award received in February 2004 to train and
offer logistic support to police forces of foreign countries, growth
under the Contract Field Teams contract in the Company´s Field
Technical Services segment, and growth in various other contracts in
the Company´s International Technical Services segment.
The
Company generated adjusted earnings before interest, taxes,
depreciation and amortization (EBITDA) of $118.4 million for the 12
months that ended April 1, 2005, compared with adjusted EBITDA of $60.1
million for the prior year. EBITDA is a primary component of certain
covenants under the Company´s senior credit facility. In addition,
adjusted EBITDA does not represent net income or cash flows from
operations, as these terms are defined by accounting principals
generally accepted in the United States of America. A detailed
reconciliation of net income to adjusted EBITDA has been included and
should be read in conjunction with this release.
The Company
reported net income of $58.8 million for the 12 months that ended April
1, 2005, compared with $31.4 million for the prior year - an increase
of 87.3 percent. The Company´s net income increase resulted primarily
from the stronger revenue performance discussed above and a shift in
contract mix to include a lower percentage of cost reimbursable
contracts during the most recent 12-month period. Cost reimbursable
contract types have a bias to generate lower margins than those
realized from the Company´s time and material or fixed price contract
types.
Liquidity
As of April 1, 2005, the
Company possessed $13 million of cash on hand. The Company had also
drawn $35 million under its revolving credit facility, leaving $34.9
million available for borrowing under this facility. As of July 1,
2005, the Company had repaid amounts outstanding under its revolving
credit facility, and had cash on hand of approximately $29.1 million.
The Company had available to borrow approximately $69.9 million under
its revolving credit facility on July 1, 2005.
Other Matters
The Company expects to file Form S-4 with the Securities and Exchange
Commission by end of business August 10, 2005. The Company advises
readers of this release to refer to the Form S-4 filing for additional
information
About DynCorp International, LLC and subsidiaries
DynCorp International is a leading professional services and project
management firm with global expertise in aviation services, logistics,
and security operations. Headquartered in Irving, Texas, DynCorp
International employs more than 14,000 people in some 35 countries. It
traces its beginnings to the founding of Dynalectron Corporation in
1946. The statements in this press release that are not historical fact
are "forward-looking statements" within the meaning of Private
Securities Litigation Reform Act of 1995. All of these forward-looking
statements are based on estimates and assumptions made by the Company´s
management that, although believed by DynCorp International and its
subsidiaries to be reasonable, are inherently uncertain.
Forward-looking statements involve risks and uncertainties, including,
but not limited to, economic, competitive, governmental, and
technological factors outside of its control that may cause its
business, strategy or actual results to differ materially from the
forward-looking statements.
These risks and uncertainties may
include, among other things: changes in the demand for services which
the Company provides; the activities of competitors; changes in
significant operating expenses; changes in availability of capital;
general economic and business conditions in the United States; acts of
war or terrorist activities; variations in performance of financial
markets; and other factors described in the "Risk Factors" section in
the Company´s Form S-4, which is expected to be filed with the
Securities and Exchange Commission by end of business August 10, 2005.
Given these risks and uncertainties, you are cautioned not to place
undue reliance on forward-looking statements. DynCorp International and
its subsidiaries undertake no obligation to publicly update or revise
any forward-looking statement as a result of new information, future
events or otherwise, except as required by law.
Basis of Presentation
On February 11, 2005, DynCorp International was sold by Computer
Sciences Corporation ("CSC") to an entity controlled by The Veritas
Capital Fund II, L.P. and its affiliates ("Veritas"). The financial
information presented below from March 29, 2003 to February 11, 2005,
falls into the period of CSC ownership, and is referred to as the
"immediate predecessor period." The Company refers to financial
statements from and after February 12, 2005 as the "successor period."
The presentation of financial results during the "immediate predecessor
period" are presented on a historical basis and do not include the
significant impact that the sell transaction has had on the Company.