Improved deployment of direct consulting staff and growth in billable expenses spur growth.
Booz Allen Hamilton’s saw third-quarter fiscal 2012 revenue reach $1.44 billion compared to $1.39 billion in the prior year period, for a 3.9 percent increase.
The revenue increase was attributed to a 5 percent growth in revenue derived from direct consulting staff labor and a 0.6 percent growth in billable expenses, according to a Jan. 3 company announcement.
The revenue growth from direct consulting staff labor was primarily due to improved deployment of direct consulting staff, including the deployment of 300 net additional consulting staff, against funded backlog under existing contracts and funded backlog under new contracts in all markets as well as increased other direct costs.
At the same time net income increased to $62.9 million from $23.6 million in the prior year period and adjusted net income increased to $56.4 million from $35.2 million in the prior year period.
Booz Allen said the increase in net income was driven by the increase in operating income, as well as a decrease in interest expense as a result of debt refinancing in February 2011.
In the third quarter of fiscal 2012, operating income increased to $98.2 million from $75.1 million in the prior year period and adjusted-operating income increased to $104.7 million from $92.3 million in the prior year period.
The improvement in operating income was driven by continued growth in revenue, increased profitability resulting from decreases in incentive and stock-based compensation costs, and lower amortization of intangible assets.
The profitability increases were partially offset by a significant investment in business development as well as unbillable staff compensation costs.
Booz Allen also reported backlog of $12.22 billion as of December 31, 2011.
In the statement Chairman, CEO and President Ralph Shrader said, "Our strong focus on helping government clients improve effectiveness and efficiency in their core missions drove Booz Allen's continued revenue growth in our federal civil, defense, and intelligence markets during the third quarter of fiscal 2012, despite a challenging federal government environment.”
Citing the backlog of sold work, Shrader said, “We believe that we are well-positioned in growth areas such as cyber, health, finance, and intelligence, surveillance, reconnaissance [ISR].
“Additionally, we are growing – and investing for future growth – in the commercial and international markets that have opened to us since the expiration of our non-compete agreement on July 31, 2011,” he said.
NEXT STORY: Army swears in new vice chief of staff