Booz Allen reports earnings hit with a caveat
Company says one-time charges drove profits down
- By Nick Wakeman
- Oct 31, 2012
EDITORS NOTE: This story has been updated to clarify the non-recurring items impact on net income.
Booz Allen Hamilton blamed a string of one-time items for its profits taking a hit in its latest quarter.
With those items included, net income dropped nearly 39 percent in the quarter ended Sept. 30, falling $29.2 million, from $75.3 million in the same quarter last year to $46.1 million this year.
But if several non-recurring items are removed, adjusted net income increased to $55.7 million from $50.6 million in the prior year period.
Those adjustments to earnings include the release of what the company called “a significant income tax reserve” and the gains from the sale of Booz Allen’s state and local transportation business. The quarterly results also reflect the one-time charges from a refinancing transaction in July, the company said.
Revenue also fell by 2.9 percent for the quarter to $1.4 billion. The company blamed the decline on a reduction in billable expenses and a lower ratio of indirect costs to direct labor compared with 2011.
The company’s chairman CEO and president, Ralph Shrader, pointed to company highlights that included the adjusted earnings and the generation of cash flow.
“We have delivered an impressive 68 percent total return to shareholders for the 12 months ending September 30,” he said in a statement.
The company also reported a backlog of over $12 billion, which demonstrates “strong demand from our clients for our services, despite the generally challenging market conditions for government contractors,” Shrader said.
Nick Wakeman is the editor-in-chief of Washington Technology. Follow him on Twitter: @nick_wakeman.