Perspecta has announced financial results for the third quarter of fiscal year 2021, which ended Jan. 1, the company reported on Monday. Perspecta’s revenue for the quarter was $1.13 billion, up 1 percent compared to the third quarter of fiscal year 2020, and down 1 percent compared to the second quarter of fiscal year 2021.
Perspecta recently entered into a definitive merger agreement to be acquired by Peraton, a portfolio company of Veritas Capital Fund Management. Perspecta stated that, under the acquisition, the company’s stockholders will receive $29.35 per share in cash. The transaction is expected to close in the first half of calendar year 2021.
The company’s income before taxes for the third quarter of fiscal year 2021 was $45 million, which was down 40 percent compared to the third quarter of fiscal year 2020. The operating margin decreased from 6.7 percent to 4 percent year-over-year. Additionally, Perspecta’s net income was $31 million.
Perspecta noted that its adjusted net income was $90 million for the quarter, which was flat year-over-year. The company’s adjusted EBITDA was $181 million for the third quarter of fiscal year 2021, down 7 percent compared to adjusted EBITDA for the third quarter of fiscal year 2020.
Persecta’s Defense and Intelligence segment revenue of $795 million decreased by 2 percent compared to the segment's revenue from the third quarter of fiscal year 2020.
The company announced that the Civilian and Health Care segment revenue was $339 million, which increased by 8 percent, compared to the segment's revenue from the prior year, due to the increase of key new programs.
The Defense and Intelligence adjusted segment profit margin for the third quarter of fiscal year 2021 decreased to 13.2 percent from 14.4 percent while the Civilian and Health Care adjusted segment profit margin decreased to 12.7 percent from 12.8 percent.
Perspecta generated $117 million of net cash provided by operating activities, used $5 million in investing activities and used $101 million in financing activities. The quarterly free cash flow was $93 million, which was reduced by $15 million.
At quarter end, Perspecta had $224 million in cash and cash equivalents, $750 million of undrawn capacity in its revolving credit facility, and $2.4 billion in total debt, including $191 million in finance lease obligations.
The Board of Directors declared that Perspecta will pay a cash dividend of $0.07 per share on April 15 to Perspecta shareholders of record at the close of business on March 3, 2021.
Perspecta’s contract awards totaled $0.9 billion in the third quarter of fiscal year 2021, representing a book-to-bill ratio of 0.8x. The company’s backlog of signed business orders at the end of the third quarter of fiscal year 2021 was $13.6 billion, and the funded backlog at the end of the third quarter was $1.7 billion.