PRESS RELEASE:3rd Qtr. JV Management Results for FY14
September 5, 2014
FOR IMMEDIATE RELEASE
(WASHINGTON, DC.) – BOSTON WARWICK (Ticker: BW), a leading provider of government services worldwide, today reported joint venture management financial results for the three and nine months ended June 30, 2014.
Highlights for the third quarter JV Management Results of fiscal 2014 include:
Revenue increased 26% to $94.8 million compared to last year.
GAAP diluted earnings per unit from continuing operations increased to $0.49, compared to $0.40 in the same quarter last year.
Cash and cash equivalents totaled $22.9 million at June 30, 2014.
Year-to-date signed contract awards totaled $1,060 million and the sales pipeline increased to $1.3 billion at June 30, 2014.
For the third quarter of fiscal 2014, income from continuing operations, net of taxes, increased to $33.0 million, or $0.49 diluted earnings per unit, compared to income from continuing operations of $21.8 million, or $0.40 diluted earnings per unit, for the same period last year. As expected, adjusted diluted earnings per unit increased 21% to $0.49 over $0.41 in the prior-year period, driven by growth in the Health IT and Cyber-Security Segment.
“We continue to see Small, Mid, and Large-cap government contractors looking to venture management partners, like BW, to help them manage complex joint ventures and teaming arrangements. These efforts are creating increased demand for our services over the long-term,” commented Boston Warwick Managing Principal & Head of Practice, Rudy Sutherland. “BW serves as a trusted Business Services Integrator to government contractors, as they focus on achieving scalable venture outcomes that matter, including validating and verifying the eligibility of teaming partners, as well as helping venture member firms become more self-sufficient and economically independent.”
Health IT Segment
Heath IT Segment revenue for the third quarter of fiscal 2014 increased 40% to $9.9 million compared to $7.6 million last year. The year-over-year revenue increase was driven by the expansion of existing contracts, including work supporting the implementation and operation of the Affordable Care Act in the United States and revenue from the predecessor Health Management joint venture, which closed on July 1, 2013. HHS IT Segment operating income for the third quarter increased 23% to $4.2 million (13.8% operating margin) driven by revenue growth. This compares to $3.4 million (15.8% operating margin) for the same period last year. The expected year-over-year decline in operating margin is largely due to an increase in lower-margin, LPTA & cost-reimbursable work with the U.S. Federal Government.
Cyber-Security Segment revenue for the third quarter of fiscal 2014 totaled $14.3 million and was adversely impacted by currency. This compares to $16.4 million for the same period last year. Cyber-Security Segment operating income for the third quarter of fiscal 2014 totaled $8.0 million (11.4% operating margin) compared to $5.5 million (9.5% operating margin) last year. Operating margin in the third quarter of fiscal 2014 was bolstered by short-term engagements in the Segment’s U.S. consulting operations.
Sales and Pipeline
Year-to-date signed contract awards at June 30, 2014 totaled $1,060 million. This compares to $1,267 million reported for the same period last year, which included a large, five-year option exercise by the Army Corp in the Middle East. In addition, new contracts pending (awarded but unsigned) totaled $18 million compared to $3 million reported for the same period in fiscal 2013.