Two federal awards highlight ATS first quarter earnings
DOD, NRC contracts cited as key to company growth
- By David Hubler
- Apr 28, 2010
Spurred by a $27.5 million Defense Department contract and a Nuclear Regulatory Commission award worth $24 million, ATS Corp. revenue from civilian and defense contracts increased $1.3 million to $24.0 million, or 5.3 percent, for the first quarter ended March 31, 2010.
Overall, ATSC reported revenue of $30.5 million for the first quarter 2010, a 12.4 percent increase over first quarter 2009 revenue of $27.2 million, the company announced today.
Operating income for the quarter was $2.1 million and net income was $1.1 million, or $0.05 per diluted share, compared to an operating income of $1.7 million and a net income of $426,000 or $0.02 per diluted share for the first quarter of 2009.
ATSC’s quarter over quarter top-line growth was primarily attributed to increases in revenue at Fannie Mae and the Housing and Urban Development Department, the company said.
First-quarter new bookings totaled $64.9 million, representing a increase in bookings from previous quarters.
The DOD and NRC contracts were the largest competitive new awards received during the quarter, the company said.
ATSC said quarter-over-quarter increases in operating income, net income and EBITDA were driven by continued realized efficiencies in the company’s selling, general and administrative expenses with a higher level of revenue, as well as $495,000 in other income which resulted from settlement on an acquisition-related indemnification claim.
As of March 31, 2010, ATSC’s balance sheet included debt of $18.1 million on its revolving credit facility and about $917,000 in promissory notes related to the acquisition of Number Six Software Inc.
“We delivered very strong year over year growth in revenue, EBITDA, and backlog in the first quarter of 2010, while further paying down our debt and repurchasing shares of our common stock,” said ATSC President and Chief Executive Officer Edward Bersoff in the announcement.
“Furthermore, we are very pleased with the strong bookings in the first quarter resulting in a book to bill ratio greater than two,” he said. “We are also optimistic regarding a number of potential new awards in the next few months which should help continue this strong organic growth during 2010.”
Bersoff added that ATSC also was able to pay down another $2.2 million of debt this quarter as well as repurchase $455,000 of stock.
At the close of the first quarter, ATSC hired Sid Fuchs as chief operating officer, effective April 5.
The McLean, Va., company supplies government agencies with various information technology services, including software and systems development, systems integration, infrastructure support, and outsourcing, information sharing and consulting.
David Hubler is the former print managing editor for GCN and senior editor for Washington Technology. He is freelance writer living in Annandale, Va.