- Revenue of $402 million in Q4, $1.54 billion in FY 2009
- Diluted EPS of $0.30 in Q4, $1.01 in FY 2009
- Contract awards of $434 million in Q4, $2.37 billion in FY 2009
- Operating cash flow of $60 million in Q4, $91 million in FY 2009
FAIRFAX, Va., Aug. 12 /PRNewswire-FirstCall/ -- SRA International, Inc. (NYSE: SRX), a leading provider of technology and strategic consulting services and solutions to government organizations and commercial clients, today announced operating results for the fourth quarter and fiscal year (FY) 2009, which ended June 30, 2009.
For the quarter, revenue was $402.0 million, up 4.5% from $384.8 million in the June 2008 quarter. Organic revenue growth for the same period was 3.5%. Operating income for the quarter was $29.0 million, for an operating margin of 7.2%. Net income was $17.5 million, for a net margin of 4.3%. Diluted earnings per share (DEPS) for the quarter were $0.30, down $0.02 year over year.
For the full fiscal year, revenue was $1.541 billion, up 2.2% from $1.507 billion in FY 2008. Organic revenue growth for the same period was 0.7%. Operating income for the year was $99.9 million, for an operating margin of 6.5%. Net income was $58.0 million, for a net margin of 3.8%. DEPS for the year were $1.01, down $0.23 year over year.
SRA President and CEO Stan Sloane said, "We're pleased to have made progress in our business execution during the second half of FY09. Organic revenue growth and operating margins were higher in Q4 than in any prior quarter during the year. Having won over $2.3 billion of new business in FY09, we've improved our revenue visibility for FY10 and established a solid foundation for growth."
Executive Vice President and CFO Rick Nadeau added, "Our Q4 financial results reflected effective cost containment across the company and improving performance in our Era business. Cash flow from operations was $60 million in Q4, and our net debt balance was $300 thousand as of June 30, 2009."
Contract Awards
SRA won new business in the third quarter with potential value of $434 million, if all option years are exercised. As of June 30, 2009, the company's backlog of signed business orders was $4.1 billion, up 5% year-over-year, and the funded portion of backlog was $762 million.
Major highlights of competitive contract awards in the quarter include:
- Classified Contract. SRA was awarded a $68 million contract in support of a classified customer.
- Department of Defense, Joint Staff Information Network. The company won a 31-month, $63 million task order to provide systems integration services for the Pentagon's Joint Staff Information Network. Awarded under the ENCORE II contract vehicle, the task order involves system and application upgrades, as well as communications infrastructure support.
- Environmental Protection Agency (EPA). The EPA awarded SRA two recompete task orders under its Software Engineering and Specialized Scientific Support contract. The task orders have a combined value of $30 million and cover a range of technical and program support services.
SRA was also awarded several multiple-award, indefinite delivery, indefinite quantity (ID/IQ) contracts in the June quarter. ID/IQ wins are not included in the company's quarterly bookings figure, but they provide a solid foundation for future growth.
- U.S. Army, Program Executive Office Enterprise Information Systems (PEO EIS). PEO EIS named SRA one of the awardees of its Program Management Support Services-2 (PMSS-2) contract, which covers a variety services related to information technology and program support.
- Department of Homeland Security (DHS), National Communications System (NCS). SRA was one of the prime contractors selected by DHS for a five-year ID/IQ contract with a combined ceiling value of $388 million. Task orders under this contract will involve support for emergency communications and operations.
Forward Guidance
The company is issuing initial revenue and earnings guidance for Fiscal Year 2010. The table below represents management's current expectations about the company's future financial performance, based on information available at this time. The forward guidance in this table does not include any effect for acquisitions that SRA might make in the future. The guidance assumes a FY 2010 diluted share count of 58.6 million.
Fiscal Year (FY) Ending Change from
Measure June 30, 2010 FY 2009 to 2010
-------------------------------------------------------------------
Revenue $1.585 billion to
$1.645 billion 3% to 7%
-------------------------------------------------------------------
Diluted earnings $1.15 to $1.25 14% to 24%
per share
-------------------------------------------------------------------
Conference Call
SRA senior management will hold a conference call to discuss these operating results and forward guidance today at 5:00 PM Eastern. Interested parties may listen to the conference call by dialing 888-603-9073 (U.S./Canada) or 210-234-0078 (Other) with passcode SRX. The conference call will be Webcast simultaneously through a link on the SRA Web site (www.sra.com). A replay of the conference call will be available approximately two hours after the conclusion of the call through August 26, 2009 by dialing 866-373-9228 (U.S./Canada) or 203-369-0280 (Other) and entering passcode 9458.
About SRA International, Inc.
SRA and its subsidiaries are dedicated to solving complex problems of global significance for government organizations serving the national security, civil government and global health markets. Founded in 1978, the company and its subsidiaries have expertise in such areas as air surveillance and air traffic management; contract research organization (CRO) services; cybersecurity; disaster response planning; enterprise resource planning; environmental strategies; IT systems, infrastructure and managed services; logistics; public health preparedness; strategic management consulting; systems engineering; and wireless integration.
