| [August 06, 2018] |
 |
DynCorp International Inc.'s Parent Reports Results for Second Quarter 2018
Delta Tucker Holdings, Inc. ("Holdings"), the parent of DynCorp
International Inc. ("DI," and together with Holdings, the "Company"), a
leading global services provider, today reported second quarter 2018
financial results.
Second quarter 2018 revenue was $550.4 million, up 16.0% compared to
$474.3 million recorded in the second quarter of 2017. The increase was
primarily due to increased scope on the Logistics Civil Augmentation
Program IV ("LOGCAP IV") program and the CLS Transport, Naval Test Wing
Pacific O-Level Maintenance ("Naval Test Wing Pacific") and the G4
Worldwide Logistics Support contracts. The increase in revenue was
partially offset by lower volume on the Bureau for International
Narcotics and Law Enforcement Affairs, Office of Aviation ("INL Air
Wing") program. Net income attributable to Holdings for the second
quarter of 2018 was $24.8 million compared to $5.7 million in the second
quarter of 2017. The Company reported Adjusted EBITDA of $48.9 million
for the second quarter of 2018 compared to $39.3 million for the same
period in 2017.
"The Company continues to deliver consistent top line growth and margin
expansion in the second quarter driven by disciplined execution of our
contracts and rigorous cost control," said George Krivo, Chief Executive
Officer. "We are very encouraged by the Company's performance through
the first half of the year and remain optimistic about the opportunities
looking forward."
Second Quarter Highlights and Other Recent Developments
-
In April 2018, DynLogistics announced a task order modification for
expanded work to continue providing base life support and maintenance
services in Afghanistan under the LOGCAP IV contract. The contract
modification has a total potential value of $24.4 million.
-
In June 2018, DynLogistics announced the award of a twelve-month task
order contract extension to continue providing base life support and
maintenance services in Afghanistan under the LOGCAP IV contract. The
contract extension has a total potential value of $258.3 million.
-
In June 2018, DynLogistics announced the award of the Facilities
Engineering Support Services task order under the Afghanistan Life
Support Services ("ALiSS") contract. The task order has a one-year
base period and four one-year option periods and a total potential
task order value of $28.1 million.
-
In June 2018, DynLogistics announced the task order award under the
Air Force Augmentation Program ("AFCAP IV") to provide dining facility
services for the Al Dhafra Air Base in the UAE. The task order has a
two-month mobility period, a ten-month base period and two one-year
option periods and a total potential task order value of $11.5 million.
-
In July 2018, DynLogistics announced a contract modification to
support material management and logistics services for the USACE South
Atlantic Division, Task Force Power Restoration in Puerto Rico on the
Northcom task order under the LOGCAP IV contract. The contract
modification has a total potential value of $24.6 million.
Reportable Segment Results
DynAviation
Revenue in the second quarter of 2018 was $297.5 million, up 2.5%
compared with $290.3 million recorded in the same period in 2017
primarily due to the new CLS Transport and Naval Test Wing Pacific
contracts and the Contractor Logistics Support T-34, T-44, T-6 program
("CLS T34/44/6"). The increase in revenue was partially offset by
decreased content on the INL Air Wing contract and the completion of
certain contracts.
Adjusted EBITDA was $25.0 million, compared to $21.7 million for the
second quarter of 2017. The increase is primarily due to the timing of
an incentive award fee on the CLS T34/44/6 contract and more favorable
terms on the T-6 COMBS contract. These increases were partially offset
by decreased content on the INL Air Wing program.
DynLogistics
Revenue in the second quarter of 2018 was $251.2 million, up 36.8%
compared with $183.6 million recorded in the same period in 2017. The
increase was primarily due to increased scope on both the LOGCAP IV
program and ALiSS contract and the G4 Worldwide Logistics Support
contract, partially offset by the completion of the Philippines
Operations Support ("POS") contract.
Adjusted EBITDA was $29.2 million, compared to $22.8 million for the
second quarter of 2017. The increase was primarily due to higher volume
as described above, and productivity and margin expansion across several
contracts.
Liquidity
Cash provided by operating activities at the end of the second quarter
of 2018 was $105.8 million compared to cash used in operating activities
of $0.3 million for the same period in 2017.
The unrestricted cash balance at quarter-end was $218.9 million with no
borrowings outstanding under the Company's revolving credit facility.
DSO was 41 and 54 days as of the end of the second quarter of 2018 and
December 31, 2017, respectively, as the Company continued to focus on
managing its customer payment cycles and due to the impact of a $45.1
million advance payment from a customer during the second quarter.
Bill Kansky, Chief Financial Officer, added, "The Company is performing
quite well and our free cash flow generation through the second quarter
of 2018 of $99.6 million puts us well ahead of plan."
Conference Call
The Company will host a conference call at 10:00 a.m. Eastern Time on
August 6, 2018, to discuss results for the second quarter 2018. The call
may be accessed by webcast or through a dial-in conference line.
To access the webcast and view the accompanying presentation, please go
to http://www.dyn-intl.com,
click on "Investor Relations" and "Events & Presentations." Please go to
the site approximately fifteen minutes prior to the start of the call to
register, download and install any necessary audio software.
To participate by phone, dial (866) 871-0758 and enter the conference ID
number: 6176907. International callers should dial (706) 634-5249 and
enter the same conference ID number above. A telephonic replay will be
available from 1:00 p.m. Eastern Time on August 6, 2018, through 11:59
p.m. Eastern Time on September 6, 2018. To access the replay, please
dial (855) 859-2056 or (404) 537-3406 and enter the conference ID number.
About DynCorp International
DynCorp International, a wholly owned subsidiary of Delta Tucker
Holdings, Inc., is a leading global services provider offering unique,
tailored solutions for an ever-changing world. Built on seven decades of
experience as a trusted partner to commercial, government and military
customers, DI provides sophisticated aviation, logistics, training,
intelligence and operational solutions wherever we are needed. DynCorp
International is headquartered in McLean, Va. For more information,
visit www.dyn-intl.com.
Reconciliation to GAAP
In addition to the Company's financial results reported in accordance
with accounting principles generally accepted in the United States of
America ("GAAP") included in this press release, the Company has
provided certain financial measures that are not calculated according to
GAAP, including EBITDA and Adjusted EBITDA. We define EBITDA as GAAP net
income attributable to the Company adjusted for interest, taxes,
depreciation and amortization. Adjusted EBITDA is calculated by
adjusting EBITDA for certain items from operations and certain other
items as defined in our Indenture and New Senior Credit Facility.
Management believes these non-GAAP financial measures are useful in
evaluating operating performance and are regularly used by security
analysts, institutional investors and other interested parties in
reviewing the Company. We believe that Adjusted EBITDA is useful in
assessing our ability to generate cash to cover our debt obligations
including interest and principal payments. Non-GAAP financial measures,
such as EBITDA and Adjusted EBITDA are not intended to be a substitute
for any GAAP financial measure and, as calculated, may not be comparable
to other similarly titled measures of the performance of other companies.
For a reconciliation of non-GAAP financial measures to the comparable
GAAP financial measures please see the financial schedules accompanying
this release.
The Company does not provide reconciliations of guidance for Adjusted
EBITDA to Operating Income, in reliance on the unreasonable efforts
exception provided under Item 10(e)(1)(i)(B) of Regulation S-K. The
Company is unable, without unreasonable efforts, to forecast certain
items required to develop meaningful comparable GAAP financial measures.
These items include other (loss) income and certain income/expense or
gain/loss adjustments under the Company's debt agreements that are
difficult to predict in advance in order to include in a GAAP estimate.
Forward-looking Statements
This announcement may contain forward-looking statements regarding
future events and our future results that are subject to the safe
harbors created by the Private Securities Litigation Reform Act of 1995
under the Securities Act of 1933 and the Securities Exchange Act of
1934. Without limiting the foregoing, the words "believes," "thinks,"
"anticipates," "plans," "expects" and similar expressions are intended
to identify forward-looking statements. Forward-looking statements
involve risks and uncertainties. Statements regarding the amount of our
backlog, estimated total contract values, and 2018 outlook are other
examples of forward-looking statements. We caution that these statements
are further qualified by important economic, competitive, governmental,
international and technological factors that could cause our business,
strategy, projections or actual results or events to differ materially,
or otherwise, from those in the forward-looking statements. These
factors, risks and uncertainties include, among others, the following:
our substantial level of indebtedness, our ability to refinance or amend
the terms of that indebtedness, and changes in availability of capital
and cost of capital; the ability to refinance, amend or generate
sufficient cash to repay our New Senior Credit Facility, consisting of
our Revolver and Term Loan maturing on July 7, 2019 and July 7, 2020,
respectively, or to refinance, amend or repay our other indebtedness,
including any future indebtedness, which may force us to take other
actions to satisfy our obligations under our indebtedness, which may not
be successful; the future impact of mergers, acquisitions, divestitures,
joint ventures or teaming agreements; the outcome of any material
litigation, government investigation, audit or other regulatory matters;
restatement of our financial statements causing credit ratings to be
downgraded or covenant violations under our debt agreements; policy
and/or spending changes implemented by the Trump Administration, any
subsequent administration or Congress, including any further changes to
the sequestration that the United States ("U.S.") Department of Defense
("DoD") is currently operating under; termination or modification of key
U.S. government or commercial contracts, including subcontracts; changes
in the demand for services that we provide or work awarded under our
contracts, including without limitation, the LOGCAP IV and ALiSS
contract; the outcome of future extensions on awarded contracts and the
outcomes of recompetes on existing programs; changes in the demand for
services provided by our joint venture partners; changes due to pursuit
of new commercial business in the U.S. and abroad; activities of
competitors and the outcome of bid protests; changes in significant
operating expenses; impact of lower than expected win rates for new
business; general political, economic, regulatory and business
conditions in the U.S. or in other countries in which we operate; acts
of war or terrorist activities, including cyber security threats;
variations in performance of financial markets; the inherent
difficulties of estimating future contract revenue and changes in
anticipated revenue from indefinite delivery, indefinite quantity
("IDIQ") contracts and indefinite quantity contracts ("IQC"); the timing
or magnitude of any award, performance or incentive fee granted under
our government contracts; changes in expected percentages of future
revenue represented by fixed-price and time-and-materials contracts,
including increased competition with respect to task orders subject to
such contracts; decline in the estimated fair value of a reporting unit
resulting in a goodwill impairment and a related non-cash impairment
charged against earnings; changes in underlying assumptions,
circumstances or estimates that may have a material adverse effect upon
the profitability of one or more contracts and our performance;
implementation of the tax reform legislation known colloquially as the
Tax Cuts and Jobs Act (the "Tax Act") or other tax reform implemented by
the Trump Administration, and any subsequent administration or Congress;
changes in our tax provisions or exposure to additional income tax
liabilities that could affect our profitability and cash flows;
uncertainty created by management turnover or other restructuring
activities; termination or modification of key subcontractor performance
or delivery; the ability to receive timely payments from prime
contractors where we act as a subcontractor; and statements covering our
business strategy, those described in "Risk Factors" in our Annual
Report on Form 10-K for the year ended December 31, 2017, filed with the
Securities and Exchange Commission ("SEC") on March 21, 2018, and other
risks detailed from time to time in our reports filed with the SEC and
other risks detailed from time to time in our reports posted to our
website or made available publicly through other means.
Accordingly, such forward-looking statements do not purport to be
predictions of future events or circumstances and therefore, there can
be no assurance that any forward-looking statements contained herein
will prove to be accurate. We assume no obligation to update the
forward-looking statements. Given these risk and uncertainties, you are
cautioned not to place undue reliance on forward-looking statements. The
Company's actual results could differ materially from those contained in
the forward-looking statements.
|
|
|
DELTA TUCKER HOLDINGS, INC. (DTH, Inc.)
|
|
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
(Amounts in thousands)
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
|
|
|
|
June 30, 2018
|
|
|
June 30, 2017
|
|
|
June 30, 2018
|
|
|
June 30, 2017
|
|
Revenue
|
|
|
|
$
|
550,361
|
|
|
|
$
|
474,288
|
|
|
|
$
|
1,084,654
|
|
|
|
$
|
934,159
|
|
|
Cost of services
|
|
|
|
(476,598
|
)
|
|
|
(409,652
|
)
|
|
|
(942,021
|
)
|
|
|
(809,128
|
)
|
|
Selling, general and administrative expenses
|
|
|
|
(24,670
|
)
|
|
|
(27,168
|
)
|
|
|
(50,029
|
)
|
|
|
(58,886
|
)
|
|
Depreciation and amortization expense
|
|
|
|
(5,974
|
)
|
|
|
(8,589
|
)
|
|
|
(12,031
|
)
|
|
|
(17,144
|
)
|
|
Earnings from equity method investees
|
|
|
|
222
|
|
|
|
10
|
|
|
|
269
|
|
|
|
52
|
|
|
Operating income
|
|
|
|
43,341
|
|
|
|
28,889
|
|
|
|
80,842
|
|
|
|
49,053
|
|
|
Interest expense
|
|
|
|
(16,083
|
)
|
|
|
(17,764
|
)
|
|
|
(33,071
|
)
|
|
|
(36,479
|
)
|
|
Loss on early extinguishment of debt
|
|
|
|
-
|
|
|
|
(24
|
)
|
|
|
(239
|
)
|
|
|
(24
|
)
|
|
Interest income
|
|
|
|
408
|
|
|
|
19
|
|
|
|
933
|
|
|
|
24
|
|
|
Other income, net
|
|
|
|
492
|
|
|
|
144
|
|
|
|
1,141
|
|
|
|
1,517
|
|
|
Income before income taxes
|
|
|
|
28,158
|
|
|
|
11,264
|
|
|
|
49,606
|
|
|
|
14,091
|
|
|
Provision for income taxes
|
|
|
|
(3,140
|
)
|
|
|
(5,300
|
)
|
|
|
(7,884
|
)
|
|
|
(8,339
|
)
|
|
Net income
|
|
|
|
25,018
|
|
|
|
5,964
|
|
|
|
41,722
|
|
|
|
5,752
|
|
|
Noncontrolling interests
|
|
|
|
(209
|
)
|
|
|
(288
|
)
|
|
|
(505
|
)
|
|
|
(563
|
)
|
|
Net income attributable to Delta Tucker Holdings, Inc.
|
|
|
|
$
|
24,809
|
|
|
|
$
|
5,676
|
|
|
|
$
|
41,217
|
|
|
|
$
|
5,189
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes
|
|
|
|
3,140
|
|
|
|
5,300
|
|
|
|
7,884
|
|
|
|
8,339
|
|
|
Interest expense, net of interest income
|
|
|
|
15,675
|
|
|
|
17,745
|
|
|
|
32,138
|
|
|
|
36,455
|
|
|
Depreciation and amortization (1)
|
|
|
|
6,901
|
|
|
|
9,027
|
|
|
|
13,721
|
|
|
|
17,925
|
|
|
EBITDA (2)
|
|
|
|
$
|
50,525
|
|
|
|
$
|
37,748
|
|
|
|
$
|
94,960
|
|
|
|
$
|
67,908
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Certain income/expense or gain/loss adjustments per our credit
agreements (3)
|
|
|
|
(270
|
)
|
|
|
(1,072
|
)
|
|
|
2,710
|
|
|
|
(1,238
|
)
|
|
Employee share based compensation, severance, relocation and
retention expense (4)
|
|
|
|
(725
|
)
|
|
|
345
|
|
|
|
(352
|
)
|
|
|
1,475
|
|
|
Cerberus fees (5)
|
|
|
|
55
|
|
|
|
626
|
|
|
|
86
|
|
|
|
1,276
|
|
|
Global Advisory Group expenses (6)
|
|
|
|
-
|
|
|
|
1,783
|
|
|
|
-
|
|
|
|
6,943
|
|
|
Other (7)
|
|
|
|
(708
|
)
|
|
|
(164
|
)
|
|
|
(1,342
|
)
|
|
|
(570
|
)
|
|
Adjusted EBITDA
|
|
|
|
$
|
48,877
|
|
|
|
$
|
39,266
|
|
|
|
$
|
96,062
|
|
|
|
$
|
75,794
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
|
Includes certain depreciation and amortization amounts which are
classified as Cost of services in the condensed consolidated
statements of operations.
|
|
(2)
|
|
|
We define EBITDA as GAAP net income attributable to DTH, Inc.
adjusted for interest, taxes, depreciation and amortization. We
believe these non-GAAP financial measures are useful in evaluating
operating performance and are regularly used by security analysts,
institutional investors and other interested parties in reviewing
the Company. Non-GAAP financial measures are not intended to be a
substitute for any GAAP financial measure and, as calculated, may
not be comparable to other similarly titled measures of the
performance of other companies.
|
|
(3)
|
|
|
Includes certain unusual income and expense items, as defined in the
Indenture and New Senior Credit Facility.
|
|
(4)
|
|
|
Includes post-employment benefit expense related to severance in
accordance with ASC 712 - Compensation, relocation
expenses, retention expense and share based compensation expense.
|
|
(5)
|
|
|
Includes Cerberus Operations and Advisory Company expenses, net of
recovery.
|
|
(6)
|
|
|
Reflects Global Advisory Group cost incurred during the three and
six months ended June 30, 2017, which we were able to add back to
Adjusted EBITDA under the Indenture and New Senior Credit Facility
in an aggregate amount up to a total of $30 million, which was fully
utilized as of the second quarter of calendar year 2017.
|
|
(7)
|
|
|
Includes changes due to fluctuations in foreign exchange rates,
earnings from affiliates not received in cash, costs incurred
pursuant to ASC 805 - Business Combination and other
immaterial items.
|
|
|
|
|
|
|
|
|
DELTA TUCKER HOLDINGS, INC. (DTH, Inc.)
|
|
Credit Agreement Adjusted EBITDA Calculation by Segment
|
|
(Amounts in thousands)
|
|
|
|
|
|
|
|
DTH, Inc. CY18 QTD Q2
|
|
|
|
|
|
DynAviation
|
|
|
DynLogistics
|
|
|
Headquarters/
Others
|
|
|
Consolidated
|
|
Operating income (loss)
|
|
|
|
$
|
25,282
|
|
|
|
$
|
28,896
|
|
|
|
$
|
(10,837
|
)
|
|
|
$
|
43,341
|
|
|
Depreciation and amortization expense (1)
|
|
|
|
287
|
|
|
|
652
|
|
|
|
5,962
|
|
|
|
6,901
|
|
|
Noncontrolling interests
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(209
|
)
|
|
|
(209
|
)
|
|
Other income, net
|
|
|
|
105
|
|
|
|
(48
|
)
|
|
|
435
|
|
|
|
492
|
|
|
EBITDA(2)
|
|
|
|
$
|
25,674
|
|
|
|
$
|
29,500
|
|
|
|
$
|
(4,649
|
)
|
|
|
$
|
50,525
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Certain income/expense or gain/loss adjustments per our credit
agreements (3)
|
|
|
|
34
|
|
|
|
(437
|
)
|
|
|
133
|
|
|
|
(270
|
)
|
|
Employee share based compensation, severance, relocation and
retention expense (4)
|
|
|
|
(772
|
)
|
|
|
42
|
|
|
|
5
|
|
|
|
(725
|
)
|
|
Cerberus fees (5)
|
|
|
|
22
|
|
|
|
17
|
|
|
|
16
|
|
|
|
55
|
|
|
Other (6)
|
|
|
|
2
|
|
|
|
52
|
|
|
|
(762
|
)
|
|
|
(708
|
)
|
|
Adjusted EBITDA
|
|
|
|
$
|
24,960
|
|
|
|
$
|
29,174
|
|
|
|
$
|
(5,257
|
)
|
|
|
$
|
48,877
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
|
Includes certain depreciation and amortization amounts which are
classified as Cost of services in the condensed consolidated
statements of operations.
|
|
(2)
|
|
|
We define EBITDA as GAAP net income attributable to DTH, Inc.
adjusted for interest, taxes, depreciation and amortization. We
believe these non-GAAP financial measures are useful in evaluating
operating performance and are regularly used by security analysts,
institutional investors and other interested parties in reviewing
the Company. Non-GAAP financial measures are not intended to be a
substitute for any GAAP financial measure and, as calculated, may
not be comparable to other similarly titled measures of the
performance of other companies.
|
|
(3)
|
|
|
Includes certain unusual income and expense items, as defined in the
Indenture and New Senior Credit Facility.
|
|
(4)
|
|
|
Includes post-employment benefit expense related to severance in
accordance with ASC 712 - Compensation, relocation
expenses, retention expense and share based compensation expense.
|
|
(5)
|
|
|
Includes Cerberus Operations and Advisory Company expenses, net of
recovery.
|
|
(6)
|
|
|
Includes changes due to fluctuations in foreign exchange rates,
earnings from affiliates not received in cash, costs incurred
pursuant to ASC 805 - Business Combination and other
immaterial items.
|
|
|
|
|
|
|
|
|
DELTA TUCKER HOLDINGS, INC. (DTH, Inc.)
|
|
Credit Agreement Adjusted EBITDA Calculation by Segment
|
|
(Amounts in thousands)
|
|
|
|
|
|
|
|
DTH, Inc. CY17 QTD Q2
|
|
|
|
|
|
DynAviation
|
|
|
DynLogistics
|
|
|
Headquarters/
Others
|
|
|
Consolidated
|
|
Operating income (loss)
|
|
|
|
$
|
20,700
|
|
|
|
$
|
23,799
|
|
|
|
$
|
(15,610
|
)
|
|
|
$
|
28,889
|
|
|
Depreciation and amortization expense (1)
|
|
|
|
325
|
|
|
|
197
|
|
|
|
8,505
|
|
|
|
9,027
|
|
|
Loss on early extinguishment of debt
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(24
|
)
|
|
|
(24
|
)
|
|
Noncontrolling interests
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(288
|
)
|
|
|
(288
|
)
|
|
Other income, net
|
|
|
|
45
|
|
|
|
(60
|
)
|
|
|
159
|
|
|
|
144
|
|
|
EBITDA(2)
|
|
|
|
$
|
21,070
|
|
|
|
$
|
23,936
|
|
|
|
$
|
(7,258
|
)
|
|
|
$
|
37,748
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Certain income/expense or gain/loss adjustments per our credit
agreements (3)
|
|
|
|
-
|
|
|
|
(1,550
|
)
|
|
|
478
|
|
|
|
(1,072
|
)
|
|
Employee share based compensation, severance, relocation and
retention expense (4)
|
|
|
|
263
|
|
|
|
82
|
|
|
|
-
|
|
|
|
345
|
|
|
Cerberus fees (5)
|
|
|
|
366
|
|
|
|
219
|
|
|
|
41
|
|
|
|
626
|
|
|
Global Advisory Group expenses (6)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,783
|
|
|
|
1,783
|
|
|
Other (7)
|
|
|
|
-
|
|
|
|
81
|
|
|
|
(245
|
)
|
|
|
(164
|
)
|
|
Adjusted EBITDA
|
|
|
|
$
|
21,699
|
|
|
|
$
|
22,768
|
|
|
|
$
|
(5,201
|
)
|
|
|
$
|
39,266
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
|
Includes certain depreciation and amortization amounts which are
classified as Cost of services in the condensed consolidated
statements of operations.
|
|
(2)
|
|
|
We define EBITDA as GAAP net income attributable to DTH, Inc.
adjusted for interest, taxes, depreciation and amortization. We
believe these non-GAAP financial measures are useful in evaluating
operating performance and are regularly used by security analysts,
institutional investors and other interested parties in reviewing
the Company. Non-GAAP financial measures are not intended to be a
substitute for any GAAP financial measure and, as calculated, may
not be comparable to other similarly titled measures of the
performance of other companies.
|
|
(3)
|
|
|
Includes certain unusual income and expense items, as defined in the
Indenture and New Senior Credit Facility.
|
|
(4)
|
|
|
Includes post-employment benefit expense related to severance in
accordance with ASC 712 - Compensation, relocation
expenses, retention expense and share based compensation expense.
|
|
(5)
|
|
|
Includes Cerberus Operations and Advisory Company expenses, net of
recovery.
|
|
(6)
|
|
|
Reflects Global Advisory Group cost incurred during the three months
ended June 30, 2017 which we were able to add back to Adjusted
EBITDA under the Indenture and New Senior Credit Facility in an
aggregate amount up to a total of $30 million, which was fully
utilized as of the second quarter of calendar year 2017.
|
|
(7)
|
|
|
Includes changes due to fluctuations in foreign exchange rates,
earnings from affiliates not received in cash, costs incurred
pursuant to ASC 805 - Business Combination and other
immaterial items.
|
|
|
|
|
|
|
|
|
DELTA TUCKER HOLDINGS, INC. (DTH, Inc.)
|
|
Credit Agreement Adjusted EBITDA Calculation by Segment
|
|
(Amounts in thousands)
|
|
|
|
|
|
|
|
DTH, Inc. CY18 YTD Q2
|
|
|
|
|
|
DynAviation
|
|
|
DynLogistics
|
|
|
Headquarters/
Others
|
|
|
Consolidated
|
|
Operating income (loss)
|
|
|
|
$
|
51,216
|
|
|
|
$
|
48,202
|
|
|
|
$
|
(18,576
|
)
|
|
|
$
|
80,842
|
|
|
Depreciation and amortization expense (1)
|
|
|
|
785
|
|
|
|
1,068
|
|
|
|
11,868
|
|
|
|
13,721
|
|
|
Loss on early extinguishment of debt
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(239
|
)
|
|
|
(239
|
)
|
|
Noncontrolling interests
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(505
|
)
|
|
|
(505
|
)
|
|
Other income, net
|
|
|
|
304
|
|
|
|
33
|
|
|
|
804
|
|
|
|
1,141
|
|
|
EBITDA(2)
|
|
|
|
$
|
52,305
|
|
|
|
$
|
49,303
|
|
|
|
$
|
(6,648
|
)
|
|
|
$
|
94,960
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Certain income/expense or gain/loss adjustments per our credit
agreements (3)
|
|
|
|
113
|
|
|
|
2,199
|
|
|
|
398
|
|
|
|
2,710
|
|
|
Employee share based compensation, severance, relocation and
retention expense (4)
|
|
|
|
(527
|
)
|
|
|
165
|
|
|
|
10
|
|
|
|
(352
|
)
|
|
Cerberus fees (5)
|
|
|
|
36
|
|
|
|
26
|
|
|
|
24
|
|
|
|
86
|
|
|
Other (6)
|
|
|
|
2
|
|
|
|
(4
|
)
|
|
|
(1,340
|
)
|
|
|
(1,342
|
)
|
|
Adjusted EBITDA
|
|
|
|
$
|
51,929
|
|
|
|
$
|
51,689
|
|
|
|
$
|
(7,556
|
)
|
|
|
$
|
96,062
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
|
Includes certain depreciation and amortization amounts which are
classified as Cost of services in the condensed consolidated
statements of operations.
|
|
(2)
|
|
|
We define EBITDA as GAAP net income attributable to DTH, Inc.
adjusted for interest, taxes, depreciation and amortization. We
believe these non-GAAP financial measures are useful in evaluating
operating performance and are regularly used by security analysts,
institutional investors and other interested parties in reviewing
the Company. Non-GAAP financial measures are not intended to be a
substitute for any GAAP financial measure and, as calculated, may
not be comparable to other similarly titled measures of the
performance of other companies.
|
|
(3)
|
|
|
Includes certain unusual income and expense items, as defined in the
Indenture and New Senior Credit Facility.
|
|
(4)
|
|
|
Includes post-employment benefit expense related to severance in
accordance with ASC 712 - Compensation, relocation
expenses, retention expense and share based compensation expense.
|
|
(5)
|
|
|
Includes Cerberus Operations and Advisory Company expenses, net of
recovery.
|
|
(6)
|
|
|
Includes changes due to fluctuations in foreign exchange rates,
earnings from affiliates not received in cash, costs incurred
pursuant to ASC 805 - Business Combination and other
immaterial items.
|
|
|
|
|
|
|
|
|
DELTA TUCKER HOLDINGS, INC. (DTH, Inc.)
|
|
Credit Agreement Adjusted EBITDA Calculation by Segment
|
|
(Amounts in thousands)
|
|
|
|
|
|
|
|
DTH, Inc. CY17 YTD Q2
|
|
|
|
|
|
DynAviation
|
|
|
DynLogistics
|
|
|
Headquarters/
Others
|
|
|
Consolidated
|
|
Operating (loss) income
|
|
|
|
$
|
39,645
|
|
|
|
$
|
41,299
|
|
|
|
$
|
(31,891
|
)
|
|
|
$
|
49,053
|
|
|
Depreciation and amortization expense (1)
|
|
|
|
614
|
|
|
|
336
|
|
|
|
16,975
|
|
|
|
17,925
|
|
|
Loss on early extinguishment of debt
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(24
|
)
|
|
|
(24
|
)
|
|
Noncontrolling interests
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(563
|
)
|
|
|
(563
|
)
|
|
Other income, net
|
|
|
|
1,042
|
|
|
|
47
|
|
|
|
428
|
|
|
|
1,517
|
|
|
EBITDA(2)
|
|
|
|
$
|
41,301
|
|
|
|
$
|
41,682
|
|
|
|
$
|
(15,075
|
)
|
|
|
$
|
67,908
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Certain income/expense or gain/loss adjustments per our credit
agreements (3)
|
|
|
|
-
|
|
|
|
(2,306
|
)
|
|
|
1,068
|
|
|
|
(1,238
|
)
|
|
Employee share based compensation, severance, relocation and
retention expense (4)
|
|
|
|
1,056
|
|
|
|
405
|
|
|
|
14
|
|
|
|
1,475
|
|
|
Cerberus fees (5)
|
|
|
|
767
|
|
|
|
434
|
|
|
|
75
|
|
|
|
1,276
|
|
|
Global Advisory Group expenses (6)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
6,943
|
|
|
|
6,943
|
|
|
Other (7)
|
|
|
|
-
|
|
|
|
41
|
|
|
|
(611
|
)
|
|
|
(570
|
)
|
|
Adjusted EBITDA
|
|
|
|
$
|
43,124
|
|
|
|
$
|
40,256
|
|
|
|
$
|
(7,586
|
)
|
|
|
$
|
75,794
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
|
Includes certain depreciation and amortization amounts which are
classified as Cost of services in the condensed consolidated
statements of operations.
|
|
(2)
|
|
|
We define EBITDA as GAAP net income attributable to DTH, Inc.
adjusted for interest, taxes, depreciation and amortization. We
believe these non-GAAP financial measures are useful in evaluating
operating performance and are regularly used by security analysts,
institutional investors and other interested parties in reviewing
the Company. Non-GAAP financial measures are not intended to be a
substitute for any GAAP financial measure and, as calculated, may
not be comparable to other similarly titled measures of the
performance of other companies.
|
|
(3)
|
|
|
Includes certain unusual income and expense items, as defined in the
Indenture and New Senior Credit Facility.
|
|
(4)
|
|
|
Includes post-employment benefit expense related to severance in
accordance with ASC 712 - Compensation, relocation
expenses, retention expense and share based compensation expense.
|
|
(5)
|
|
|
Includes Cerberus Operations and Advisory Company expenses, net of
recovery.
|
|
(6)
|
|
|
Reflects Global Advisory Group cost incurred during the six months
ended June 30, 2017 which we were able to add back to Adjusted
EBITDA under the Indenture and New Senior Credit Facility in an
aggregate amount up to a total of $30 million, which was fully
utilized as of the second quarter of calendar year 2017.
|
|
(7)
|
|
|
Includes changes due to fluctuations in foreign exchange rates,
earnings from affiliates not received in cash, costs incurred
pursuant to ASC 805 - Business Combination and other
immaterial items.
|
|
|
|
|
|
|
|
|
DELTA TUCKER HOLDINGS, INC. (DTH, Inc.)
|
|
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
|
|
(Amounts in thousands)
|
|
|
|
|
|
|
|
As of
|
|
|
|
|
|
June 30, 2018
|
|
|
December 31, 2017
|
|
ASSETS
|
|
Current assets:
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
$
|
218,853
|
|
|
|
$
|
168,250
|
|
|
Accounts receivable, net of allowances of $9,322 and $10,142,
respectively
|
|
|
|
149,268
|
|
|
|
352,550
|
|
|
Contract assets
|
|
|
|
169,416
|
|
|
|
-
|
|
|
Other current assets
|
|
|
|
35,667
|
|
|
|
52,542
|
|
|
Total current assets
|
|
|
|
573,204
|
|
|
|
573,342
|
|
|
Non-current assets
|
|
|
|
149,670
|
|
|
|
162,375
|
|
|
Total assets
|
|
|
|
$
|
722,874
|
|
|
|
$
|
735,717
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND DEFICIT
|
|
Current portion of long-term debt, net
|
|
|
|
$
|
-
|
|
|
|
$
|
53,652
|
|
|
Other current liabilities
|
|
|
|
328,341
|
|
|
|
331,872
|
|
|
Total current liabilities
|
|
|
|
328,341
|
|
|
|
385,524
|
|
|
Long-term debt, net
|
|
|
|
532,318
|
|
|
|
527,039
|
|
|
Other long-term liabilities
|
|
|
|
12,120
|
|
|
|
13,081
|
|
|
Total deficit attributable to Delta Tucker Holdings, Inc.
|
|
|
|
(155,300
|
)
|
|
|
(195,456
|
)
|
|
Noncontrolling interests
|
|
|
|
5,395
|
|
|
|
5,529
|
|
|
Total deficit
|
|
|
|
(149,905
|
)
|
|
|
(189,927
|
)
|
|
Total liabilities and deficit
|
|
|
|
$
|
722,874
|
|
|
|
$
|
735,717
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DELTA TUCKER HOLDINGS, INC. (DTH, Inc.)
|
|
UNAUDITED OTHER CONTRACT DATA
|
|
(Amounts in millions)
|
|
|
|
|
|
|
|
As of
|
|
|
|
|
|
June 30, 2018
|
|
|
December 31, 2017
|
|
Backlog(1):
|
|
|
|
|
|
|
|
|
Funded backlog
|
|
|
|
$
|
981
|
|
|
|
$
|
968
|
|
Unfunded backlog
|
|
|
|
3,021
|
|
|
|
3,201
|
|
Total Backlog
|
|
|
|
$
|
4,002
|
|
|
|
$
|
4,169
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
|
Backlog consists of funded and unfunded amounts under contracts.
Funded backlog is equal to the amounts appropriated by a customer
for payment of goods and services less actual revenue recognized as
of the measurement date under that appropriation. Unfunded backlog
is the dollar value of unexercised, priced contract options, and the
unfunded portion of exercised contract options. Most of our U.S.
government contracts allow the customer the option to extend the
period of performance of a contract for a period of one or more
years.
|
|
|
|
|
|
|
|
|
DELTA TUCKER HOLDINGS, INC. (DTH, Inc.)
|
|
UNAUDITED CONDENSED STATEMENTS OF CASH FLOWS
|
|
(Amounts in thousands)
|
|
|
|
|
|
|
|
For the six months ended
|
|
|
|
|
|
June 30, 2018
|
|
|
June 30, 2017
|
|
Cash Flow Information:
|
|
|
|
|
|
|
|
|
Net cash provided by (used in) operating activities
|
|
|
|
$
|
105,762
|
|
|
|
$
|
(340
|
)
|
|
Net cash provided by (used in) investing activities
|
|
|
|
207
|
|
|
|
(2,819
|
)
|
|
Net cash used in financing activities
|
|
|
|
(55,366
|
)
|
|
|
(23,813
|
)
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by (used in) operating activities
|
|
|
|
105,762
|
|
|
|
(340
|
)
|
|
Less: Purchase of property and equipment
|
|
|
|
(6,160
|
)
|
|
|
(2,674
|
)
|
|
Proceeds from sale of property and equipment
|
|
|
|
13
|
|
|
|
536
|
|
|
Less: Purchase of software
|
|
|
|
(41
|
)
|
|
|
(400
|
)
|
|
Free cash flow
|
|
|
|
$
|
99,574
|
|
|
|
$
|
(2,878
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20180806005114/en/
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