Hello, Guest.!
//

Perspecta Announces Q1 FY 21 Financial Results; Mac Curtis Quoted

5 mins read
Mac Curtis
Mac Curtis

Perspecta has announced financial results for the first quarter of fiscal year 2021, which ended July 3, 2020, the company reported on Monday

"We are off to a solid start this fiscal year and our first quarter results continue to demonstrate solid execution across the enterprise, delivering on our revenue, adjusted diluted earnings per share and free cash flow conversion expectations," said Mac Curtis, chairman and chief executive officer of Perspecta and six-time Wash100 Award recipient.

Perspecta’s revenue for the quarter was $1.11 billion, up 1 percent compared to the fourth quarter of fiscal year 2020. Income before taxes for the first quarter of fiscal year 2021 was $3 million and Perspecta’s operating margin decreased from 3.8 percent to 0.3 percent year-over-year. 

The company’s net loss was $3 million, or a loss of $0.02 per diluted share and adjusted net income was $76 million for the first quarter of fiscal year 2021, down 11 percent year-over-year. Adjusted EBITDA was $167 million for the first quarter of fiscal year 2021, down 18 percent compared to adjusted EBITDA for the first quarter of fiscal year 2020. 

Adjusted EBITDA margin decreased from 18.4 percent to 15.1 percent. Perspecta’s adjusted diluted EPS for the first quarter of fiscal year 2021 was $0.47, down 10 percent compared to adjusted diluted EPS for the first quarter of fiscal year 2020.

Perspecta reported that the Defense and Intelligence segment revenue of $776 million increased by 3% compared to the first quarter of fiscal year 2020, primarily due to new business wins and growth on existing programs. 

The Civilian and Health Care segment revenue of $332 million decreased by 6 percent compared to the segment's revenue from the comparable period of the prior year due to NASA Agency Consolidated End-User Services and other program wind downs.

Defense and Intelligence adjusted segment profit margin for the first quarter of fiscal year 2021 decreased to 12.6 percent from 15.7 percent in the first quarter of fiscal year 2020. Civilian and Health Care adjusted segment profit margin for the first quarter of fiscal year 2021 improved to 10.2 percent from 9.3 percent in the first quarter of fiscal year 2020. 

Total adjusted segment profit for the first quarter of fiscal year 2021 decreased to $132 million from $151 million in the first quarter of fiscal year 2020.

Perspecta generated $132 million of net cash provided by operating activities in the first quarter of fiscal year 2021. Quarterly adjusted free cash flow was $102 million. At quarter end, Perspecta had $122 million in cash and cash equivalents, $750 million of undrawn capacity in its revolving credit facility, and $2.5 billion in total debt, including $229 million in finance lease obligations. 

The company’s contract awards totaled $1.2 billion in the first quarter of fiscal year 2021. Notably, the company received the U.S. Army Training and Doctrine Command Army Training Information System (ATIS) contract. 

Perspecta was awarded an Other Transaction Agreement from the U.S. Army Training and Doctrine Command to deliver Phase II of the ATIS program including the development, integration, delivery, operation and maintenance of an enterprise capability for Army training and education information. 

"I am pleased with both our operational performance and business development efforts during these challenging market conditions. Additionally, our new business wins build on the positive momentum in both of our segments and we remain dedicated to meeting our customers' needs and generating value for all our stakeholders,” Curtis added. 

About Perspecta Inc.

At Perspecta, we question, we seek and we solve. Perspecta brings a diverse set of capabilities to our U.S. government customers in defense, intelligence, civilian, health care and state and local markets. Our 280+ issued, licensed and pending patents are more than just pieces of paper, they tell the story of our innovation. 

With offerings in mission services, digital transformation and enterprise operations, our team of nearly 14,000 engineers, analysts, investigators and architects work tirelessly to not only execute the mission, but build and support the backbone that enables it. Perspecta was formed to take on big challenges. We are an engine for growth and success and we enable our customers to build a better nation.