Market Overview

Booz Allen Hamilton Announces First Quarter Fiscal 2019 Results

Share:

Strong Performance Consistent with Three-Year Goals

Revenue Increase of 8.1 percent to $1.65 billion, and Revenue,
Excluding Billable Expenses
1
Growth of 9.2 percent

Diluted Earnings Per Share and Adjusted Diluted Earnings Per Share1,
both of $0.72

21.4 percent Increase in Total Backlog to $17.1 Billion, New
Record Since IPO; and Record First Quarter Book-to-Bill of 1.64x

Quarterly Dividend of $0.19 per Share

Booz Allen Hamilton Holding Corporation (NYSE:BAH), the parent company
of management and technology consulting and engineering services firm
Booz Allen Hamilton Inc., today announced preliminary results for the
first quarter of fiscal 2019.

The Company delivered strong first quarter results that support its
fiscal year 2019 guidance, as well as the investment thesis detailed at
Booz Allen's Investor Day in June.

"We are capitalizing on the unique position in the market that we have
created by transforming Booz Allen over the past six years," said
Horacio Rozanski, President and Chief Executive Officer. "Our clients
now have the resources to do what they have wanted and needed to do for
several years: integrate leading-edge technology into their most
important missions."

The Company reported first-quarter revenue growth of 8.1 percent, and a
9.2 percent increase in revenue, excluding billable expenses.1
The strong top-line growth contributed to a 25.1 percent increase in
Adjusted EBITDA1 to $177.8 million, and Adjusted EBITDA
margin on revenue1 was 10.8 percent. Adjusted diluted
earnings per share1 for the quarter was $0.72, up 53.2
percent.

Total backlog increased by 21.4 percent over the prior year period to
$17.1 billion, and the book-to-bill ratio for the first quarter was
1.64. Headcount was 4.7 percent above the end of the prior year period,
with a slight sequential decline in the first quarter.

The Company adopted two accounting standards, ASC 606 and ASU 2017-07,
both effective April 1, 2018; accordingly, the first quarter fiscal 2018
results have been restated. Adoption of these two standards is factored
into fiscal 2019 guidance and is not expected to be material to
full-year results. Additional information on the revenue and operating
income impacts of adopting these accounting standards is available in
the Company's Form 10-Q for the first quarter of fiscal 2019.

The Company declared a regular quarterly dividend of $0.19 per share,
which is payable on August 31, 2018, to stockholders of record on August
14, 2018.

Financial Summary

First Quarter, Ended June 30, 2018 – A summary of Booz
Allen's results for the first quarter of fiscal 2019 is below. All
comparisons are to the prior year period, as restated, and a description
of key drivers can be found in the Company's Earnings Call Presentation
for the first quarter posted on investors.boozallen.com.

  • Revenue: $1.65 billion, an increase of 8.1 percent.
  • Revenue, Excluding Billable Expenses:1 $1.17
    billion, an increase of 9.2 percent.
  • Operating Income and Adjusted Operating Income:1
    Each $161.6 million, and each an increase of 27.6 percent.
  • Net Income: $104.2 million, an increase of 47.6 percent; and Adjusted
    Net Income:
    1 $104.7 million, an increase of 47.4
    percent.
  • EBITDA and Adjusted EBITDA:1 Each
    $177.8 million, and each an increase of 25.1 percent.
  • Diluted EPS and Adjusted Diluted EPS:1
    Each $0.72, and each up from $0.47.

As of June 30, 2018, total backlog was $17.1 billion, compared to $14.1
billion as of June 30, 2017, an increase of 21.4 percent. Net cash used
in operating activities for the first quarter of fiscal 2019 was $(27.0)
million as compared to $4.0 million in net cash provided by operating
activities in the prior year period. Free cash flow1 for the
first quarter was $(47.5) million, compared with $(7.5) million in the
prior year period.

1 Revenue, Excluding Billable Expenses, Adjusted
Operating Income, Adjusted Net Income, Adjusted EBITDA, Adjusted
Diluted EPS, Adjusted EBITDA Margin on Revenue and Free Cash Flow
are non-GAAP financial measures. See "Non-GAAP Financial
Information" below for additional detail.
 

Financial Outlook

For our fiscal 2019, we are reaffirming guidance issued on May 29, 2018:

  • Revenue: Growth in the 6 to 8 percent range
  • Adjusted Diluted EPS: 1 $2.35 - $2.50

This EPS estimate is based on fiscal 2019 estimated average diluted
shares outstanding in the range of 141 million to 145 million shares,
and assumes an effective tax rate in the range of 25 percent to 27
percent, which reflects recent changes in U.S. tax law.

Conference Call Information

Booz Allen will host a conference call at 8 a.m. EDT on Monday, July 30,
2018, to discuss the financial results for its First Quarter of Fiscal
2019 (ended June 30, 2018).

Analysts and institutional investors may participate on the call by
dialing (877) 375-9141 International: (253) 237-1151. The conference
call will be webcast simultaneously to the public through a link on the
investor relations section of the Booz Allen Hamilton web site at investors.boozallen.com.
A replay of the conference call will be available online at investors.boozallen.com
beginning at 11 a.m. EDT on July 30, 2018, and continuing for 30 days.

About Booz Allen Hamilton

For more than 100 years, business, government, and military leaders have
turned to Booz Allen Hamilton to solve their most complex problems. They
trust us to bring together the right minds: those who devote themselves
to the challenge at hand, who speak with relentless candor, and who act
with courage and character. They expect original solutions where there
are no roadmaps. They rely on us because they know that—together—we will
find the answers and change the world.

We solve the most difficult management and technology problems through a
combination of consulting, analytics, digital solutions, engineering,
and cyber expertise. With global headquarters in McLean, Virginia, our
firm employs approximately 24,600 people globally, and had revenue of
$6.17 billion for the 12 months ended March 31, 2018. To learn more,
visit www.boozallen.com.
(NYSE:BAH)

BAHPR-FI

Non-GAAP Financial Information

"Revenue, Excluding Billable Expenses" represents revenue less billable
expenses. Booz Allen uses Revenue, Excluding Billable Expenses because
it provides management useful information about the Company's operating
performance by excluding the impact of costs that are not indicative of
the level of productivity of its consulting staff headcount and its
overall direct labor, which management believes provides useful
information to its investors about its core operations.

"Adjusted Operating Income" represents Operating Income before: (i)
adjustments related to the amortization of intangible assets resulting
from the acquisition of our Company by The Carlyle Group (the "Carlyle
Acquisition"), and (ii) transaction costs, fees, losses, and expenses,
including fees associated with debt prepayments. Booz Allen prepares
Adjusted Operating Income to eliminate the impact of items it does not
consider indicative of ongoing operating performance due to their
inherent unusual, extraordinary or non-recurring nature or because they
result from an event of a similar nature.

"Adjusted EBITDA" represents net income before income taxes, net
interest and other expense and depreciation and amortization before
certain other items, including transaction costs, fees, losses, and
expenses, including fees associated with debt prepayments. "Adjusted
EBITDA Margin on Revenue" is calculated as Adjusted EBITDA divided by
revenue. "Adjusted EBITDA Margin on Revenue, Excluding Billable
Expenses" is calculated as Adjusted EBITDA divided by Revenue, Excluding
Billable Expenses. Booz Allen prepares Adjusted EBITDA, Adjusted EBITDA
Margin on Revenue, and Adjusted EBITDA Margin on Revenue, Excluding
Billable Expenses to eliminate the impact of items it does not consider
indicative of ongoing operating performance due to their inherent
unusual, extraordinary or non-recurring nature or because they result
from an event of a similar nature.

"Adjusted Net Income" represents net income before: (i) adjustments
related to the amortization of intangible assets resulting from the
Carlyle Acquisition, (ii) transaction costs, fees, losses, and expenses,
including fees associated with debt prepayments, (iii) amortization or
write-off of debt issuance costs and write-off of original issue
discount, (iv) release of income tax reserves, and (v) re-measurement of
deferred tax assets and liabilities as a result of the Tax Cuts and Jobs
Act (the "2017 Tax Act") in each case net of the tax effect where
appropriate calculated using an assumed effective tax rate. Booz Allen
prepares Adjusted Net Income to eliminate the impact of items, net of
tax, it does not consider indicative of ongoing operating performance
due to their inherent unusual, extraordinary or non-recurring nature or
because they result from an event of a similar nature. We view net
income excluding the impact of the re-measurement of the Company's
deferred tax assets and liabilities as a result of the 2017 Tax Act as
an important indicator of performance consistent with the manner in
which management measures and forecasts the Company's performance and
the way in which management is incentivized to perform.

"Adjusted Diluted EPS" represents diluted EPS calculated using Adjusted
Net Income as opposed to Net Income. Additionally, Adjusted Diluted EPS
does not contemplate any adjustments to net income as required under the
two-class method of calculating EPS as required in accordance with GAAP.

"Free Cash Flow" represents the net cash generated from operating
activities less the impact of purchases of property and equipment.

Booz Allen utilizes and discusses in this release Revenue, Excluding
Billable Expenses, Adjusted Operating Income, Adjusted EBITDA, Adjusted
EBITDA Margin on Revenue, Adjusted EBITDA Margin on Revenue, Excluding
Billable Expenses, Adjusted Net Income, and Adjusted Diluted EPS because
management uses these measures for business planning purposes, including
managing its business against internal projected results of operations
and measuring its performance. Management views Adjusted Operating
Income, Adjusted EBITDA, Adjusted EBITDA Margin on Revenue, Adjusted
EBITDA Margin on Revenue, Excluding Billable Expenses, Adjusted Net
Income, and Adjusted Diluted EPS as measures of the core operating
business, which exclude the impact of the items detailed in the
supplemental exhibits, as these items are generally not operational in
nature. These supplemental performance measures also provide another
basis for comparing period to period results by excluding potential
differences caused by non-operational and unusual or non-recurring
items. Management also utilizes Revenue, Excluding Billable Expenses
because it provides management useful information about the Company's
operating performance by excluding the impact of costs that are not
indicative of the level of productivity of its consulting staff
headcount and its overall direct labor, which management believes
provides useful information to its investors about its core operations.
Booz Allen also utilizes and discusses Free Cash Flow in this release
because management uses this measure for business planning purposes,
measuring the cash generating ability of the operating business and
measuring liquidity generally. Booz Allen presents these supplemental
measures because it believes that these measures provide investors and
securities analysts with important supplemental information with which
to evaluate Booz Allen's performance, long term earnings potential, or
liquidity, as applicable, and to enable them to assess Booz Allen's
performance on the same basis as management. These supplemental
performance measurements may vary from and may not be comparable to
similarly titled measures by other companies in Booz Allen's industry.
Revenue, Excluding Billable Expenses, Adjusted Operating Income,
Adjusted EBITDA, Adjusted EBITDA Margin on Revenue, Adjusted EBITDA
Margin on Revenue, Excluding Billable Expenses, Adjusted Net Income,
Adjusted Diluted EPS, and Free Cash Flow are not recognized measurements
under GAAP and when analyzing Booz Allen's performance or liquidity, as
applicable, investors should (i) evaluate each adjustment in our
reconciliation of revenue to Revenue, Excluding Billable Expenses,
operating income to Adjusted Operating Income, net income to Adjusted
EBITDA, Adjusted EBITDA Margin on Revenue, Adjusted EBITDA Margin on
Revenue, Excluding Billable Expenses, Adjusted Net Income, and Adjusted
Diluted Earnings per Share, and net cash provided by operating
activities to Free Cash Flow, (ii) use Revenue, Excluding Billable
Expenses, Adjusted Operating Income, Adjusted EBITDA, Adjusted EBITDA
Margin on Revenue, Adjusted EBITDA Margin on Revenue, Excluding Billable
Expenses, Adjusted Net Income, and Adjusted Diluted EPS in addition to,
and not as an alternative to revenue, operating income, net income or
diluted EPS as measures of operating results, each as defined under
GAAP, and (iii) use Free Cash Flow, in addition to, and not as an
alternative to, net cash provided by operating activities as a measure
of liquidity, each as defined under GAAP. Exhibit 4 includes a
reconciliation of Revenue, Excluding Billable Expenses, Adjusted
Operating Income, Adjusted EBITDA, Adjusted EBITDA Margin on Revenue,
Adjusted EBITDA Margin on Revenue, Excluding Billable Expenses, Adjusted
Net Income, Adjusted Diluted EPS, and Free Cash Flow to the most
directly comparable financial measure calculated and presented in
accordance with GAAP.

With respect to our expectations under "Financial Outlook" above, a
reconciliation of Adjusted Diluted EPS guidance to the closest
corresponding GAAP measure is not available without unreasonable efforts
on a forward-looking basis due to our inability to predict our stock
price, equity grants and dividend declarations during the course of
fiscal 2019. Projecting future stock price, equity grants and dividends
to be declared would be necessary to accurately calculate the difference
between Adjusted Diluted EPS and GAAP EPS as a result of the effects of
the two-class method and related possible dilution used in the
calculation of EPS. Consequently, any attempt to disclose such
reconciliation would imply a degree of precision that could be confusing
or misleading to investors. We expect the variability of the above
charges to have an unpredictable, and potentially significant, impact on
our future GAAP financial results.

Forward Looking Statements

Certain statements contained in this press release and in related
comments by our management include "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of 1995.
Examples of forward-looking statements include information concerning
Booz Allen's preliminary financial results, financial outlook and
guidance, including forecasted revenue, Diluted EPS, and Adjusted
Diluted EPS, future quarterly dividends, and future improvements in
operating margins, as well as any other statement that does not directly
relate to any historical or current fact. In some cases, you can
identify forward-looking statements by terminology such as "may,"
"will," "could," "should," "forecasts," "expects," "intends," "plans,"
"anticipates," "projects," "outlook," "believes," "estimates,"
"predicts," "potential," "continue," "preliminary," or the negative of
these terms or other comparable terminology. Although we believe that
the expectations reflected in the forward-looking statements are
reasonable, we can give you no assurance these expectations will prove
to have been correct.

These forward-looking statements relate to future events or our future
financial performance and involve known and unknown risks, uncertainties
and other factors that may cause our actual results, levels of activity,
performance or achievements to differ materially from any future
results, levels of activity, performance or achievements expressed or
implied by these forward-looking statements.

These risks and other factors include: efforts by Congress and other
U.S. government bodies to reduce U.S. government spending and address
budgetary constraints, including automatic sequestration required by the
Budget Control Act of 2011 (as subsequently amended) and the U.S.
deficit, as well as associated uncertainty around the timing, extent,
nature, and effect of such efforts; delayed funding of our contracts due
to uncertainty relating to funding of the U.S. government and a possible
failure of Congressional efforts to approve such funding and to craft a
long-term agreement on the U.S. government's ability to incur
indebtedness in excess of its current limits, or changes in the pattern
or timing of government funding and spending (including those resulting
from or related to cuts associated with sequestration); any issue that
compromises our relationships with the U.S. government or damages our
professional reputation, including negative publicity concerning
government contractors in general or us in particular; changes in U.S.
government spending, including a continuation of efforts by the U.S.
government to decrease spending for management support service
contracts, and mission priorities that shift expenditures away from
agencies or programs that we support; U.S. government shutdowns due to,
among other reasons, a failure by elected officials to fund the
government; the size of our addressable markets and the amount of U.S.
government spending on private contractors; failure to comply with
numerous laws and regulations, including, but not limited to, the
Federal Acquisition Regulation ("FAR"), the False Claims Act, the
Defense Federal Acquisition Regulation Supplement and FAR Cost
Accounting Standards and Cost Principles; our ability to compete
effectively in the competitive bidding process and delays or losses of
contract awards caused by competitors' protests of major contract awards
received by us; the loss of General Services Administration Multiple
Award schedule contracts, or GSA schedules, or our position as prime
contractor on government-wide acquisition contract vehicles, or GWACs;
changes in the mix of our contracts and our ability to accurately
estimate or otherwise recover expenses, time, and resources for our
contracts; continued efforts to change how the U.S. government
reimburses compensation related costs and other expenses or otherwise
limit such reimbursements and an increased risk of compensation being
deemed unallowable or payments being withheld as a result of U.S.
government audit, review, or investigation; our ability to realize the
full value of and replenish our backlog, generate revenue under certain
of our contracts and the timing of our receipt of revenue under
contracts included in backlog; changes in estimates used in recognizing
revenue; an inability to attract, train, or retain employees with the
requisite skills and experience; an inability to timely hire, assimilate
and effectively utilize our employees, ensure that employees obtain and
maintain necessary security clearances and/or effectively manage our
cost structure; the loss of members of senior management or failure to
develop new leaders; misconduct or other improper activities from our
employees or subcontractors, including the improper use or release of
our clients' sensitive or classified information; increased insourcing
by various U.S. government agencies due to changes in the definition of
"inherently governmental" work, including proposals to limit contractor
access to sensitive or classified information and work assignments;
increased competition from other companies in our industry; failure to
maintain strong relationships with other contractors or the failure of
contractors with which we have entered into a sub- or prime- contractor
relationship to meet their obligations to us or our clients; inherent
uncertainties and potential adverse developments in legal or regulatory
proceedings, including litigation, audits, reviews, and investigations,
which may result in materially adverse judgments, settlements, withheld
payments, penalties, or other unfavorable outcomes including debarment,
as well as disputes over the availability of insurance or
indemnification; internal system or service failures and security
breaches, including, but not limited to, those resulting from external
cyber attacks on our network and internal systems; risks related to
changes to our operating structure, capabilities, or strategy intended
to address client needs, grow our business or respond to market
developments; risks associated with increased competition, new
relationships, clients, capabilities, and service offerings in our U.S.
and international businesses; failure to comply with special U.S.
government laws and regulations relating to our international
operations; risks related to our indebtedness and credit facilities
which contain financial and operating covenants; the adoption by the
U.S. government of new laws, rules, and regulations, such as those
relating to organizational conflicts of interest issues or limits; risks
related to completed and future acquisitions, including our ability to
realize the expected benefits from such acquisitions; an inability to
anticipate or estimate the tax implications of changes in tax law or
utilize existing or future tax benefits; variable purchasing patterns
under U.S. government GSA schedules, blanket purchase agreements and
indefinite delivery, indefinite quantity, or IDIQ, contracts; and the
impact of changes in accounting rules and regulations, or
interpretations thereof, that may affect the way we recognize and report
our financial results, including changes in accounting rules governing
recognition of revenue. Additional information concerning these and
other factors can be found in our filings with the Securities and
Exchange Commission (SEC), including our Annual Report on Form 10-K,
filed with the SEC on May 29, 2018.

All forward-looking statements attributable to us or persons acting on
our behalf are expressly qualified in their entirety by the foregoing
cautionary statements. All such statements speak only as of the date
made and, except as required by law, we undertake no obligation to
update or revise publicly any forward-looking statements, whether as a
result of new information, future events or otherwise.

 
Exhibit 1
Booz Allen Hamilton Holding Corporation
Condensed Consolidated Statements of Operations
 
    Three Months Ended
June 30,
(Amounts in thousands, except per share data) 2018     2017
(Unaudited)
Revenue $ 1,646,848 $ 1,523,010
Operating costs and expenses:
Cost of revenue 785,812 735,793
Billable expenses 477,435 451,664
General and administrative expenses 205,836 193,439
Depreciation and amortization   16,153     15,449  
Total operating costs and expenses   1,485,236     1,396,345  
Operating income 161,612 126,665
Interest expense (23,074 ) (18,747 )
Other income (expense), net   (1,171 )   (1,141 )
Income before income taxes 137,367 106,777
Income tax expense   33,163     36,165  
Net income $ 104,204   $ 70,612  
Earnings per common share:
Basic $ 0.72   $ 0.47  
Diluted $ 0.72   $ 0.47  
Dividends declared per share $ 0.19   $ 0.17  
 
 
Exhibit 2
Booz Allen Hamilton Holding Corporation
Condensed Consolidated Balance Sheets
 
(Amounts in thousands, except share and per share data)    

June 30,
2018

   

March 31,
2018

(Unaudited)
Assets
Current assets:
Cash and cash equivalents $ 149,723 $ 286,958
Accounts receivable, net of allowance 1,275,221 1,133,705
Prepaid expenses and other current assets   86,567     71,309  
Total current assets 1,511,511 1,491,972
Property and equipment, net of accumulated depreciation 152,053 152,364
Intangible assets, net of accumulated amortization 285,946 278,504
Goodwill 1,581,160 1,581,146
Other long-term assets   101,362     102,633  
Total assets $ 3,632,032   $ 3,606,619  
Liabilities and stockholders' equity
Current liabilities:
Current portion of long-term debt $ 63,100 $ 63,100
Accounts payable and other accrued expenses 581,246 557,559
Accrued compensation and benefits 240,335 282,750
Other current liabilities   137,876     125,358  
Total current liabilities 1,022,557 1,028,767
Long-term debt, net of current portion 1,740,753 1,755,479
Other long-term liabilities   261,241     259,882  
Total liabilities 3,024,551 3,044,128
Stockholders' equity:
Common stock, Class A — $0.01 par value — authorized, 600,000,000
shares; issued, 158,794,015 shares at June 30, 2018 and 158,028,673
shares at March 31, 2018; outstanding, 143,121,936 shares at June
30, 2018 and 143,446,539 shares at March 31, 2018
1,588 1,580
Treasury stock, at cost — 15,672,079 shares at June 30, 2018 and
14,582,134 shares at March 31, 2018
(509,521 ) (461,457 )
Additional paid-in capital 360,915 346,958
Retained earnings 767,278 690,516
Accumulated other comprehensive loss   (12,779 )   (15,106 )
Total stockholders' equity   607,481     562,491  
Total liabilities and stockholders' equity $ 3,632,032   $ 3,606,619  
 
 
Exhibit 3
Booz Allen Hamilton Holding Corporation
Condensed Consolidated Statements of Cash Flows
 
    Three Months Ended
June 30,
(Amounts in thousands) 2018     2017
(Unaudited)
Cash flows from operating activities
Net income $ 104,204 $ 70,612
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation and amortization 16,153 15,449
Stock-based compensation expense 6,114 5,249
Excess tax benefits from stock-based compensation (4,438 ) (6,864 )
Amortization of debt issuance costs 1,360 1,289
Losses on dispositions 401 174
Changes in assets and liabilities:
Accounts receivable (141,516 ) (111,698 )
Prepaid expenses and other current assets (2,430 ) (3,249 )
Other long-term assets (1,703 ) (269 )
Accrued compensation and benefits (38,144 ) (36,203 )
Accounts payable and other accrued expenses 28,322 44,870
Accrued interest (2,613 ) 4,698
Other current liabilities 12,300 15,690
Other long-term liabilities   (5,047 )   4,247  
Net cash (used in) provided by operating activities   (27,037 )   3,995  
Cash flows from investing activities
Purchases of property, equipment, and software (20,465 ) (11,536 )
Payments for business acquisitions, net of cash acquired   (20 )   (204 )
Net cash used in investing activities   (20,485 )   (11,740 )
Cash flows from financing activities
Proceeds from issuance of common stock 2,585 1,779
Stock option exercises 5,265 3,263
Repurchases of common stock (53,845 ) (48,428 )
Cash dividends paid (27,442 ) (25,412 )
Dividend equivalents paid to option holders (267 ) (890 )
Repayment of debt (75,775 ) (175,788 )
Proceeds from debt issuance 60,000 373,291
Payments on contingent liabilities from acquisitions   (234 )    
Net cash (used in) provided by financing activities   (89,713 )   127,815  
Net (decrease) increase in cash and cash equivalents (137,235 ) 120,070
Cash and cash equivalents — beginning of period   286,958     217,417  
Cash and cash equivalents — end of period $ 149,723   $ 337,487  
Supplemental disclosures of cash flow information
Cash paid during the period for:
Interest $ 23,938 $ 12,652
Income taxes $ 11,475 $ 17,016
Supplemental disclosures of non-cash investing and financing
activities
Share repurchases transacted but not settled and paid $ 3,365 $
Noncash financing activities $ 3,216 $
 
 
Exhibit 4
Booz Allen Hamilton Holding Corporation
Non-GAAP Financial Information
 
    Three Months Ended
June 30,
(In thousands, except share and per share data) 2018     2017
(Unaudited)
Revenue, Excluding Billable Expenses
Revenue $ 1,646,848 $ 1,523,010
Billable expenses   477,435     451,664  
Revenue, Excluding Billable Expenses $ 1,169,413   $ 1,071,346  
Adjusted Operating Income    
Operating Income & Adjusted Operating Income $ 161,612   $ 126,665  
EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin on Revenue &
Adjusted EBITDA Margin on Revenue, Excluding Billable Expenses
Net income $ 104,204 $ 70,612
Income tax expense 33,163 36,165
Interest and other, net (a) 24,245 19,888
Depreciation and amortization   16,153     15,449  
EBITDA & Adjusted EBITDA $ 177,765   $ 142,114  
Adjusted EBITDA Margin on Revenue 10.8 % 9.3 %
Adjusted EBITDA Margin on Revenue, Excluding Billable Expenses 15.2 % 13.3 %
Adjusted Net Income
Net income $ 104,204 $ 70,612
Amortization or write-off of debt issuance costs and write-off of
original issue discount
663 658
Adjustments for tax effect (b)   (172 )   (263 )
Adjusted Net Income $ 104,695   $ 71,007  
Adjusted Diluted Earnings Per Share
Weighted-average number of diluted shares outstanding   144,693,573     149,868,273  
Adjusted Net Income Per Diluted Share (c) $ 0.72   $ 0.47  
Free Cash Flow
Net cash provided by operating activities $ (27,037 ) $ 3,995
Less: Purchases of property and equipment   (20,465 )   (11,536 )
Free Cash Flow $ (47,502 ) $ (7,541 )
 
(a)   Reflects the combination of Interest expense and Other income
(expense), net from the condensed consolidated statement of
operations.
(b) The first quarter of fiscal 2018 reflects the tax effect of
adjustments at an assumed effective tax rate of 40%. For fiscal 2019
with the enactment of the 2017 Tax Act, adjustments are reflected
using an assumed effective tax rate of 26%, which approximates a
blended federal and state tax rate for fiscal 2019, and consistently
excludes the impact of other tax credits and incentive benefits
realized.
(c) Excludes an adjustment of approximately $0.6 million and $0.5
million of net earnings for the three months ended June 30, 2018 and
2017, respectively, associated with the application of the two-class
method for computing diluted earnings per share.
 
 
Exhibit 5
Booz Allen Hamilton Holding Corporation
Operating Data
 
   

As of
June 30,

(Amounts in millions) 2018     2017
Backlog
Funded $ 2,810 $ 2,517
Unfunded 4,140 3,243
Priced Options   10,132   8,309
Total Backlog $ 17,082 $ 14,069
 
   

Three Months Ended
June 30,

2018     2017
Book-to-Bill * 1.64 1.31
 
*   Book-to-bill is calculated as the change in total backlog during
the relevant fiscal period plus the relevant fiscal period revenue,
all divided by the relevant fiscal period revenue.
 
    As of
June 30,
2018     2017
Headcount
Total Headcount 24,558 23,454
Consulting Staff Headcount 22,052 21,081
 
    Three Months Ended
June 30,
2018     2017
Percentage of Total Revenue by Contract Type
Cost-Reimbursable 52% 51%
Time-and-Materials 25% 25%
Fixed-Price 23% 24%
 
    Three Months Ended
June 30,
2018     2017
Days Sales Outstanding ** 74 68
 
**   Calculated as total accounts receivable divided by revenue per
day during the relevant fiscal quarter.
 

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