Leidos Holdings, Inc. Reports First Quarter Fiscal Year 2020 Results; Revenues: $2.89 billion, year-over-year growth of 12%; Diluted Earnings per Share: $0.80; Non-GAAP Diluted Earnings per Share: $1.19; Net Bookings: $5.5 billion (book-to-bill ratio ...

ENPNewswire-May 5, 2020--Leidos Holdings, Inc. Reports First Quarter Fiscal Year 2020 Results; Revenues: $2.89 billion, year-over-year growth of 12%; Diluted Earnings per Share: $0.80; Non-GAAP Diluted Earnings per Share: $1.19; Net Bookings: $5.5 billion (book-to-bill ratio of 1.9); Cash Flows from Operations: $372 million

(C)2020 ENPublishing - http://www.enpublishing.co.uk

Release date- 05052020 - RESTON, Va - Leidos Holdings, Inc. (NYSE: LDOS), a FORTUNE 500 science and technology leader, today reported financial results for the first quarter of fiscal year 2020.

Roger Krone, Leidos Chairman and Chief Executive Officer, commented: 'First quarter results demonstrated the resiliency of our business, as evidenced by strong pro-forma organic revenue growth across all business segments, significant bookings and a new record backlog position. While the COVID-19 pandemic presented some late quarter headwinds, we are confident that the critical nature of our work, coupled with our early business contingency planning, will largely mitigate any long-term impacts.'

Summary Results

Revenues for the quarter were $2.89 billion, compared to $2.58 billion in the prior year quarter, reflecting a 12.1% increase. Revenues for the quarter included $129 million related to the acquisition of Dynetics, Inc. ('Dynetics').

Operating income for the quarter was $192 million, consistent with the prior year quarter. Operating income margin decreased to 6.6% from 7.5% in the prior year quarter. Non-GAAP operating income margin for the quarter was 8.5%, compared to 9.3% in the prior year quarter, primarily attributable to higher indirect expenditures, including the impacts of the coronavirus pandemic ('COVID-19'), and a charge related to an international receivable, partially offset by higher net profit write-ups in the current quarter.

Diluted earnings per share ('EPS') attributable to Leidos common stockholders for the quarter was $0.80, compared to $1.29 in the prior year quarter. The prior year quarter results included a $0.44 per share impact from the gain on the sale of our commercial cybersecurity business. Non-GAAP diluted EPS for the quarter was $1.19, compared to $1.13 in the prior year quarter. The weighted average diluted share count for the quarter was 144 million compared to 147 million in the prior year quarter.

Defense Solutions

Defense Solutions revenues for the quarter of $1,705 million increased by $214 million, or 14.4%, compared to the prior year quarter. The revenue increase was primarily attributable to $129 million of revenues related to the acquisition of Dynetics, program wins, a net increase in program volumes and higher net profit write-ups in the current quarter. This was partially offset by the completion of certain contracts and temporary reductions in some parts of the business due to the impacts of COVID-19.

Defense Solutions operating income margin for the quarter was 5.6%, compared to 7.0% in the prior year quarter. On a non-GAAP basis, operating income margin for the quarter was 6.8%, compared to 8.0% in the prior year quarter, primarily attributable to higher indirect expenditures, including the impacts of COVID-19, and a charge related to an international receivable, partially offset by higher net profit write-ups in the current quarter.

Civil

Civil revenues for the quarter of $654 million increased by $31 million, or 5.0%, compared to the prior year quarter. The revenue increase was primarily attributable to program wins and a net increase in program volumes, partially offset by the completion of certain contracts, negative impacts from reduced volume on certain contracts due to the impacts of COVID-19 and the impact of the sale of our commercial cybersecurity business in the prior year quarter.

Civil operating income margin for the quarter was 9.0%, compared to 9.3% in the prior year quarter. On a non-GAAP basis, operating income margin for the quarter was 10.9%, compared to 12.4% in the prior year quarter, primarily attributable to lower fees on certain programs, product volume timing related to the impacts of COVID-19 and a higher level of early-phase programs at initially lower profit margins.

Health

Health revenues for the quarter of $530 million increased by $67 million, or 14.5%, compared to the prior year quarter. The revenue increase was primarily attributable to a net increase in program volumes...

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