CHANTILLY, Va., Oct. 31, 2018 /PRNewswire/ -- Engility
Holdings, Inc. (NYSE: EGL) today announced financial results for
the third quarter ended September 28, 2018.
CEO Commentary
"We had a strong third quarter delivering a company record
quarterly book-to-bill ratio, as well as revenue, profitability,
and cash flow results that exceeded our expectations. These results
give us further confidence that we will achieve organic revenue
growth in 2019," said Lynn Dugle,
Chairman, President and CEO of Engility. "We look forward to our
combination with SAIC to form the second largest independent
technology integrator with complementary portfolios and similar
cultures. We believe this merger provides compelling value for our
shareholders through an improved capital structure that supports
additional organic and inorganic investment, an attractive
dividend, an ability to participate in the upside from cost and
revenue synergies, and an enhanced competitive position."
Third Quarter 2018 Results
Total revenue for the third quarter of 2018 was $471 million. GAAP operating income was
$27 million and GAAP operating margin
was 5.7%. GAAP net income attributable to Engility was $4 million, or $0.11 per diluted share, after recording
$17 million of income taxes and
non-core operating costs, which reduced net income by $0.46 per diluted share. Cash taxes paid in the
third quarter of 2018 were $0.1
million. EBITDA was $38
million and EBITDA margin was 8.0%.
Adjusted operating income was $40
million and adjusted operating margin was 8.4%. Adjusted
EBITDA was $44 million and adjusted
EBITDA margin was 9.4%.
Information about the company's use of non-GAAP financial
information is provided below under "Non-GAAP Measures" and in the
non-GAAP reconciliation tables included herein.
Key Performance Indicators
- Book-to-bill ratio for the third quarter of 2018 was 2.4x on
net bookings of $1.1 billion, and
trailing twelve-month book-to-bill ratio was 1.2x on net bookings
of $2.2
billion.1
- Total estimated contract value at the end of the third quarter
of 2018 was $4 billion, a 9% increase
from the third quarter of 2017.
- For the third quarter of 2018, days sales outstanding, net of
advanced payments, were 58 days and cash flow generated from
operating activities was $42
million.
- During the third quarter of 2018, the company made total debt
payments of $30 million. Total debt
payments for the first nine months of 2018 were $75 million.
1 Third quarter 2018 and trailing-twelve month
bookings include approximately $400
million of contract value that is under protest. The company
is optimistic that the protest will be resolved in its favor.
Third Quarter 2018 Contract Awards
- Awarded more than $550 million in
net bookings within the Intelligence industry.
- Awarded more than $320 million in
net bookings within the Space industry.
- Awarded more than $235 million in
net bookings within the Defense industry.
Fiscal Year 2018 Guidance
Based on Engility's financial results for the first nine months
of 2018 and its current outlook for the remainder of 2018, the
company is reiterating its fiscal year 2018 guidance issued on
August 1, 2018, excluding SAIC
transaction-related expenses and the impact from certain non-cash
tax adjustments.
Conference Call Information
Engility will host a conference call today, October 31, 2018, at 8:30
a.m. ET to discuss the financial results for its third
quarter 2018.
Listeners may access a webcast of the live conference call from
the Investor Relations section of the company's website at
www.engility.com. Listeners also may access a slide presentation on
the website, which summarizes the company's third quarter 2018
results. Listeners should go to the website at least 15 minutes
before the live event to download and install any necessary audio
software.
Listeners also may participate in the conference call by dialing
(888) 655-5029 (domestic) or (503) 343-6026 (international) and
entering passcode 5578958.
A replay will be available on the company's website
approximately two hours after the conference call and continuing
for one year. A telephonic replay also will be available through
November 7, 2018 by dialing (855)
859-2056 (domestic) or (404) 537-3406 (international) and entering
passcode 5578958.
About Engility
Engility (NYSE: EGL), a $2 billion
technology leader, has thousands of employees around the world
working to make a difference. Our history of delivering results for
the defense, federal civilian, intelligence and space industries
spans more than 60 years. We provide leading-edge solutions and
services on Earth, in space and across cyber by leveraging
expertise in systems engineering & integration, high
performance computing, cybersecurity, readiness & training,
enterprise modernization and mission operations support. To
learn more about us, please visit www.engility.com and connect with
us on Facebook, LinkedIn and Twitter.
No Offer or Solicitation
This communication is for informational purposes only and not
intended to and does not constitute an offer to subscribe for, buy
or sell, the solicitation of an offer to subscribe for, buy or sell
or an invitation to subscribe for, buy or sell any securities or
the solicitation of any vote or approval in any jurisdiction
pursuant to or in connection with the proposed transaction or
otherwise, nor shall there be any sale, issuance or transfer of
securities in any jurisdiction in contravention of applicable law.
No offer of securities shall be made except by means of a
prospectus meeting the requirements of Section 10 of the Securities
Act of 1933, as amended, and otherwise in accordance with
applicable law.
Additional Information and Where to Find It
In connection with the proposed acquisition of Engility, SAIC
has filed with the SEC a registration statement on Form S-4 to
register the shares of SAIC common stock to be issued in connection
with the merger. The registration statement includes a preliminary
joint proxy statement/prospectus, and a definitive joint proxy
statement/prospectus, when it becomes available, will be sent to
the shareholders of SAIC and Engility seeking their approval of the
proposed transaction.
WE URGE INVESTORS AND SECURITY HOLDERS TO READ THE REGISTRATION
STATEMENT ON FORM S-4, THE JOINT PROXY STATEMENT/PROSPECTUS
INCLUDED WITHIN THE REGISTRATION STATEMENT ON FORM S-4 AND ANY
OTHER RELEVANT DOCUMENTS FILED OR TO BE FILED WITH THE SEC IN
CONNECTION WITH THE PROPOSED TRANSACTION BECAUSE THESE DOCUMENTS DO
AND WILL CONTAIN IMPORTANT INFORMATION ABOUT SAIC, ENGILITY, AND
THE PROPOSED TRANSACTION.
Investors and security holders may obtain copies of these
documents free of charge through the website maintained by the SEC
at www.sec.gov or from SAIC at its website, www.saic.com, or from
Engility at its website, www.engility.com.
Participants in Solicitation
SAIC, Engility, and their respective directors, executive
officers, and other employees may be deemed to be participants in
the solicitation of proxies from the stockholders of SAIC and
Engility in connection with the proposed transaction. Information
about SAIC's executive officers and directors is set forth in its
Annual Report on Form 10-K, which was filed with the SEC on
March 29, 2018 and its proxy statement for its 2018 annual
meeting of stockholders, which was filed with the SEC on
April 25, 2018. Information about Engility's executive
officers and directors is set forth in its Annual Report on Form
10-K, which was filed with the SEC on March 2, 2018, and the
proxy statement for its 2018 annual meeting of stockholders, which
was filed with the SEC on April 13, 2018. Investors may obtain
more detailed information regarding the direct and indirect
interests of SAIC, Engility, and their respective executive
officers and directors in the transaction by reading the
preliminary and definitive joint proxy statement/prospectus
regarding the transaction, which will be filed with the SEC.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995, including statements regarding Engility's future prospects,
projected financial results, estimated integration costs and
acquisition related amortization expenses, the proposed transaction
between SAIC and Engility, and business plans. Words such as
"may," "will," "should," "likely," "anticipates," "expects,"
"intends," "plans," "projects," "believes," "estimates" and similar
expressions are also used to identify these forward-looking
statements. These statements are based on the current beliefs and
expectations of Engility's management and are subject to
significant risks and uncertainties. Actual results may differ
from those set forth in the forward-looking
statements. Factors that could cause Engility's actual results
to differ materially from those described in the forward-looking
statements can be found under the heading "Risk Factors" included
in our Annual Report on Form 10-K for the year ended December 31, 2017, and more recent documents that
have been filed with the Securities and Exchange Commission (SEC)
and are available on the investor relations section of Engility's
website (www.engility.com) and on the SEC's website
(www.sec.gov). In addition, there are various risks and
uncertainties associated with the proposed transaction between SAIC
and Engility, including but not limited to, the occurrence of any
event, change or other circumstances that could delay the closing
of the pending merger; the possibility of non-consummation of the
pending merger and termination of the merger agreement; the risk
that the Company could be required to pay a termination fee of up
to $60 million to SAIC under certain
circumstances pursuant to the terms of the merger agreement; the
failure to obtain Company stockholder approval of the pending
merger or to satisfy any of the other conditions to the merger
agreement; the possibility that a governmental entity may prohibit,
delay or refuse to grant a necessary regulatory approval in
connection with the pending merger; the risk that stockholder
litigation in connection with the pending merger may affect the
timing or occurrence of the pending merger or result in significant
costs of defense, indemnification and liability; the significant
transaction costs which have been and may continue to be incurred
by the Company related to the pending merger; and other potential
risks to the Company associated with any failure to closing the
merger, including the potential distraction of employee and
management attention during the pendency of the merger, uncertainty
about the effect of the pending merger on the Company's
relationships with employees, potential and existing customers and
suppliers and other parties, and the impact that the failure of the
pending merger to close could have on the trading price of shares
of Company common stock and the Company's operating results.
Forward-looking statements are made only as of the date hereof, and
we undertake no obligation to update or revise the forward-looking
statements, whether as a result of new information, future events
or otherwise, except as required by law. In addition, historical
information should not be considered as an indicator of future
performance.
Media:
Scott
Fazekas
Engility Holdings,
Inc.
(703)
984-5068
Scott.Fazekas@engility.com
|
|
|
Investor
Relations:
Dave
Spille
Engility Holdings,
Inc.
(703)
984-6120
Dave.Spille@engility.com
|
ENGILITY HOLDINGS,
INC.
UNAUDITED
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands,
except per share data)
|
|
|
|
|
Three Months
Ended
|
|
|
Nine Months
Ended
|
|
|
|
September 28,
2018
|
|
|
September 29,
2017
|
|
|
September 28,
2018
|
|
|
September 29,
2017
|
|
Revenue
|
|
$
|
471,207
|
|
|
$
|
487,144
|
|
|
$
|
1,436,281
|
|
|
$
|
1,467,030
|
|
Costs and
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenue
|
|
|
400,474
|
|
|
|
417,581
|
|
|
|
1,225,662
|
|
|
|
1,255,603
|
|
Selling, general and
administrative expenses
|
|
|
43,925
|
|
|
|
33,419
|
|
|
|
120,811
|
|
|
|
107,636
|
|
Total costs and
expenses
|
|
|
444,399
|
|
|
|
451,000
|
|
|
|
1,346,473
|
|
|
|
1,363,239
|
|
Operating
income
|
|
|
26,808
|
|
|
|
36,144
|
|
|
|
89,808
|
|
|
|
103,791
|
|
Interest expense,
net
|
|
|
16,981
|
|
|
|
19,739
|
|
|
|
53,520
|
|
|
|
59,189
|
|
Other income,
net
|
|
|
(191)
|
|
|
|
(62)
|
|
|
|
(441)
|
|
|
|
(121)
|
|
Income before
provision for income taxes
|
|
|
10,018
|
|
|
|
16,467
|
|
|
|
36,729
|
|
|
|
44,723
|
|
Provision for income
taxes
|
|
|
4,601
|
|
|
|
5,611
|
|
|
|
10,968
|
|
|
|
16,671
|
|
Net income
|
|
|
5,417
|
|
|
|
10,856
|
|
|
|
25,761
|
|
|
|
28,052
|
|
Less: Net income
attributable to non-controlling interest
|
|
|
1,135
|
|
|
|
1,051
|
|
|
|
3,063
|
|
|
|
3,683
|
|
Net income
attributable to Engility
|
|
$
|
4,282
|
|
|
$
|
9,805
|
|
|
$
|
22,698
|
|
|
$
|
24,369
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
attributable to Engility
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.12
|
|
|
$
|
0.27
|
|
|
$
|
0.61
|
|
|
$
|
0.66
|
|
Diluted
|
|
$
|
0.11
|
|
|
$
|
0.26
|
|
|
$
|
0.60
|
|
|
$
|
0.65
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
36,968
|
|
|
|
36,809
|
|
|
|
36,928
|
|
|
|
36,831
|
|
Diluted
|
|
|
37,782
|
|
|
|
37,348
|
|
|
|
37,737
|
|
|
|
37,354
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ENGILITY HOLDINGS,
INC.
UNAUDITED
CONSOLIDATED BALANCE SHEETS
(in
thousands)
|
|
|
|
|
September 28,
|
|
|
December 31,
|
|
|
|
2018
|
|
|
2017
|
|
Assets:
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
41,699
|
|
|
$
|
41,890
|
|
Accounts receivables,
net
|
|
|
75,905
|
|
|
|
108,100
|
|
Unbilled
receivables
|
|
|
255,459
|
|
|
|
222,994
|
|
Other current
assets
|
|
|
18,590
|
|
|
|
19,681
|
|
Total current
assets
|
|
|
391,653
|
|
|
|
392,665
|
|
Property, plant and
equipment, net
|
|
|
49,492
|
|
|
|
44,006
|
|
Goodwill
|
|
|
1,071,371
|
|
|
|
1,071,371
|
|
Identifiable
intangible assets, net
|
|
|
337,047
|
|
|
|
361,410
|
|
Deferred tax
assets
|
|
|
109,464
|
|
|
|
150,535
|
|
Other
assets
|
|
|
5,786
|
|
|
|
6,021
|
|
Total
assets
|
|
$
|
1,964,813
|
|
|
$
|
2,026,008
|
|
Liabilities and
Equity:
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
Current portion of
long-term debt
|
|
$
|
25,260
|
|
|
$
|
26,947
|
|
Accounts payable,
trade
|
|
|
44,900
|
|
|
|
52,954
|
|
Accrued employment
costs
|
|
|
99,304
|
|
|
|
77,545
|
|
Accrued
expenses
|
|
|
79,766
|
|
|
|
74,856
|
|
Advance payments and
billings in excess of costs incurred
|
|
|
26,261
|
|
|
|
30,380
|
|
Income tax
liabilities
|
|
|
352
|
|
|
|
548
|
|
Other current
liabilities
|
|
|
16,257
|
|
|
|
26,688
|
|
Total current
liabilities
|
|
|
292,100
|
|
|
|
289,918
|
|
Long-term
debt
|
|
|
871,857
|
|
|
|
938,687
|
|
Income tax
liabilities
|
|
|
33,080
|
|
|
|
62,219
|
|
Other
liabilities
|
|
|
59,987
|
|
|
|
59,079
|
|
Total
liabilities
|
|
|
1,257,024
|
|
|
|
1,349,903
|
|
Equity:
|
|
|
|
|
|
|
|
|
Preferred stock, par
value $0.01 per share, 25,000 shares authorized,
none
issued or outstanding as of September 28, 2018 or December 31,
2017
|
|
|
—
|
|
|
|
—
|
|
Common stock, par
value $0.01 per share, 175,000 shares authorized,
36,969 and 36,822 shares issued and outstanding as
of
September 28, 2018 and December 31, 2017,
respectively
|
|
|
370
|
|
|
|
368
|
|
Additional paid-in
capital
|
|
|
1,252,006
|
|
|
|
1,244,940
|
|
Accumulated
deficit
|
|
|
(552,151)
|
|
|
|
(576,019)
|
|
Accumulated other
comprehensive loss
|
|
|
(1,693)
|
|
|
|
(3,805)
|
|
Total equity
attributable to Engility
|
|
|
698,532
|
|
|
|
665,484
|
|
Non-controlling
interest
|
|
|
9,257
|
|
|
|
10,621
|
|
Total
equity
|
|
|
707,789
|
|
|
|
676,105
|
|
Total liabilities and
equity
|
|
$
|
1,964,813
|
|
|
$
|
2,026,008
|
|
|
|
|
|
|
|
|
|
|
ENGILITY HOLDINGS,
INC.
UNAUDITED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in
thousands)
|
|
|
|
|
Nine Months
Ended
|
|
|
|
September 28,
2018
|
|
|
September 29,
2017
|
|
Operating
activities:
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
25,761
|
|
|
$
|
28,052
|
|
Share-based
compensation
|
|
|
9,111
|
|
|
|
6,052
|
|
Depreciation and
amortization
|
|
|
32,460
|
|
|
|
33,172
|
|
Loss (gain) on sale
of property, plant and equipment
|
|
|
69
|
|
|
|
(306)
|
|
Loss on
extinguishment of debt
|
|
|
253
|
|
|
|
432
|
|
Amortization of bank
debt fees
|
|
|
6,389
|
|
|
|
6,484
|
|
Deferred income
taxes
|
|
|
39,810
|
|
|
|
17,096
|
|
Excess tax deduction
on share-based compensation
|
|
|
106
|
|
|
|
(191)
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
|
Receivables
|
|
|
5,213
|
|
|
|
(7,465)
|
|
Other
assets
|
|
|
31
|
|
|
|
7,894
|
|
Accounts payable,
trade
|
|
|
(9,310)
|
|
|
|
5,332
|
|
Accrued employment
costs
|
|
|
21,759
|
|
|
|
(2,133)
|
|
Accrued
expenses
|
|
|
4,023
|
|
|
|
5,093
|
|
Advance payments and
billings in excess of costs incurred
|
|
|
(4,119)
|
|
|
|
(1,354)
|
|
Other
liabilities
|
|
|
(36,811)
|
|
|
|
(19,403)
|
|
Net cash provided by
operating activities
|
|
|
94,745
|
|
|
|
78,755
|
|
Investing
activities:
|
|
|
|
|
|
|
|
|
Proceeds (payments)
from sale of business, net of amount placed in escrow
|
|
|
(1,900)
|
|
|
|
22,349
|
|
Proceeds from sale of
property, plant and equipment
|
|
|
—
|
|
|
|
2,902
|
|
Capital
expenditures
|
|
|
(11,404)
|
|
|
|
(5,810)
|
|
Net cash provided by
(used in) investing activities
|
|
|
(13,304)
|
|
|
|
19,441
|
|
Financing
activities:
|
|
|
|
|
|
|
|
|
Repayment of
long-term debt
|
|
|
(75,115)
|
|
|
|
(86,410)
|
|
Gross borrowings from
revolving credit facility
|
|
|
167,000
|
|
|
|
270,000
|
|
Gross repayments of
revolving credit facility
|
|
|
(167,000)
|
|
|
|
(270,000)
|
|
Debt issuance
costs
|
|
|
(45)
|
|
|
|
—
|
|
Payment of employee
withholding taxes on share-based compensation
|
|
|
(2,045)
|
|
|
|
(1,501)
|
|
Dividends
paid
|
|
|
—
|
|
|
|
(407)
|
|
Distributions to
non-controlling interest member
|
|
|
(4,427)
|
|
|
|
(6,136)
|
|
Net cash used in
financing activities
|
|
|
(81,632)
|
|
|
|
(94,454)
|
|
Net change in cash
and cash equivalents
|
|
|
(191)
|
|
|
|
3,742
|
|
Cash and cash
equivalents, beginning of period
|
|
|
41,890
|
|
|
|
48,236
|
|
Cash and cash
equivalents, end of period
|
|
$
|
41,699
|
|
|
$
|
51,978
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Measures
The tables under "Engility Holdings, Inc. Reconciliation of
Non-GAAP Measures" present Adjusted Operating Income, Adjusted
Operating Margin, Earnings before Interest, Taxes, Depreciation,
and Amortization ("EBITDA"), Adjusted EBITDA, EBITDA Margin, and
Adjusted EBITDA Margin, reconciled to their most directly
comparable GAAP measure. These financial measures are calculated
and presented on the basis of methodologies other than in
accordance with U.S. generally accepted accounting principles
("Non-GAAP Measures"). Engility has provided these Non-GAAP
Measures to adjust for, among other things, the transaction costs
related to the SAIC Merger, the impact of amortization expenses
related to our acquisitions of TASC, Inc. and Dynamics Research
Corporation, costs associated with a loss or gain on the disposal
or sale of property, plant and equipment, restructuring and related
expenses, legal and settlement costs, and refinancing-related
expenses. These items have been adjusted because they are not
considered core to the company's business or otherwise not
considered operational or because these charges are non-cash or
non-recurring. The company presents these Non-GAAP Measures because
management believes that they are meaningful to understanding
Engility's performance during the periods presented and the
company's ongoing business. Non-GAAP Measures are not prepared in
accordance with GAAP and therefore are not necessarily comparable
to similarly titled metrics or the financial results of other
companies. These Non-GAAP Measures should be considered a
supplement to, not a substitute for, or superior to, the
corresponding financial measures calculated in accordance with
GAAP.
ENGILITY HOLDINGS,
INC.
RECONCILIATION OF
NON-GAAP MEASURES
|
|
The following tables
set forth a reconciliation of each of these Non-GAAP Measures to
the most directly comparable GAAP measure for the periods
presented.
|
|
Adjusted Operating
Income and Adjusted Operating Margin
(dollars in
thousands)
|
|
|
|
|
Three Months
Ended
|
|
|
Nine Months
Ended
|
|
|
|
September 28,
2018
|
|
|
September 29,
2017
|
|
|
September 28,
2018
|
|
|
September 29,
2017
|
|
Net income
|
|
$
|
5,417
|
|
|
$
|
10,856
|
|
|
$
|
25,761
|
|
|
$
|
28,052
|
|
Provision for income
taxes (1)
|
|
|
4,601
|
|
|
|
5,611
|
|
|
|
10,968
|
|
|
|
16,671
|
|
Other income,
net
|
|
|
(191)
|
|
|
|
(62)
|
|
|
|
(441)
|
|
|
|
(121)
|
|
Interest expense, net
(2)
|
|
|
16,981
|
|
|
|
19,739
|
|
|
|
53,520
|
|
|
|
59,189
|
|
Operating
income
|
|
|
26,808
|
|
|
|
36,144
|
|
|
|
89,808
|
|
|
|
103,791
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition,
restructuring and legal and
settlement expenses, excluding amortization
(3)
|
|
|
6,380
|
|
|
|
(139)
|
|
|
|
8,833
|
|
|
|
3,606
|
|
Acquisition-related
intangible amortization
|
|
|
6,334
|
|
|
|
6,334
|
|
|
|
19,003
|
|
|
|
19,003
|
|
Loss (gain) on sale of
business and property,
plant and equipment, net
|
|
|
51
|
|
|
|
191
|
|
|
|
69
|
|
|
|
(306)
|
|
Total
adjustments
|
|
|
12,765
|
|
|
|
6,386
|
|
|
|
27,905
|
|
|
|
22,303
|
|
Adjusted operating
income
|
|
$
|
39,573
|
|
|
$
|
42,530
|
|
|
$
|
117,713
|
|
|
$
|
126,094
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
margin
|
|
|
5.7
|
%
|
|
|
7.4
|
%
|
|
|
6.3
|
%
|
|
|
7.1
|
%
|
Adjusted operating
margin
|
|
|
8.4
|
%
|
|
|
8.7
|
%
|
|
|
8.2
|
%
|
|
|
8.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Cash paid for income
taxes for the three months ended September 28, 2018 and
September 29, 2017 was $84 and $151, respectively, and for the
nine months ended September 28, 2018 and September 29,
2017 was $566 and $539, respectively.
|
|
|
(2)
|
Interest expense,
net, included refinancing-related expenses of $1,918 and $3,140 for
the nine months ended September 28, 2018 and
September 29, 2017, respectively.
|
|
|
(3)
|
Includes $5,118 of
SAIC transaction-related expenses in both the three and nine months
ended September 28, 2018.
|
|
|
|
Supplemental:
|
|
|
|
For the three months
ended September 28, 2018 and September 29, 2017, the
impacts to GAAP net income attributable to Engility from the
provision for income taxes and the adjustments noted in the above
table were $17 million and $12 million, respectively. For the nine
months ended September 28, 2018 and September 29, 2017,
the impacts to GAAP net income attributable to Engility from the
provision for income taxes and the adjustments noted in the above
table were $39 million in both periods. These results have not been
adjusted for cash taxes paid or refinancing-related expenses as
noted in footnote 1 and footnote 2, respectively.
|
ENGILITY HOLDINGS,
INC.
Earnings before
interest, taxes, depreciation, and amortization (EBITDA) and
Adjusted EBITDA
(dollars in
thousands)
|
|
|
|
|
Three Months
Ended
|
|
|
Nine Months
Ended
|
|
|
|
September 28,
2018
|
|
|
September 29,
2017
|
|
|
September 28,
2018
|
|
|
September 29,
2017
|
|
Net income
|
|
$
|
5,417
|
|
|
$
|
10,856
|
|
|
$
|
25,761
|
|
|
$
|
28,052
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest, taxes,
and depreciation and
amortization
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
|
16,981
|
|
|
|
19,739
|
|
|
|
53,520
|
|
|
|
59,189
|
|
Provision for income
taxes
|
|
|
4,601
|
|
|
|
5,611
|
|
|
|
10,968
|
|
|
|
16,671
|
|
Depreciation and
amortization
|
|
|
10,720
|
|
|
|
11,201
|
|
|
|
32,460
|
|
|
|
33,172
|
|
EBITDA
|
|
|
37,719
|
|
|
|
47,407
|
|
|
|
122,709
|
|
|
|
137,084
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to
EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition,
restructuring and legal and
settlement expenses, excluding amortization
(1)
|
|
|
6,380
|
|
|
|
(139)
|
|
|
|
8,833
|
|
|
|
3,606
|
|
Loss (gain) on sale of
business and property,
plant and equipment, net
|
|
|
51
|
|
|
|
191
|
|
|
|
69
|
|
|
|
(306)
|
|
Adjusted
EBITDA
|
|
$
|
44,150
|
|
|
$
|
47,459
|
|
|
$
|
131,611
|
|
|
$
|
140,384
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
Margin
|
|
|
8.0
|
%
|
|
|
9.7
|
%
|
|
|
8.5
|
%
|
|
|
9.3
|
%
|
Adjusted EBITDA
Margin
|
|
|
9.4
|
%
|
|
|
9.7
|
%
|
|
|
9.2
|
%
|
|
|
9.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Includes $5,118 of
SAIC transaction-related expenses in both the three and nine months
ended September 28, 2018.
|
View original content to download
multimedia:http://www.prnewswire.com/news-releases/engility-reports-third-quarter-2018-results-300740730.html
SOURCE Engility Holdings, Inc.