ANDOVER, Mass., Feb. 10, 2010 (GLOBE NEWSWIRE) -- Dynamics Research Corporation (Nasdaq:DRCO), a leading provider of innovative management consulting, engineering, and information technology services and solutions to federal and state governments, today issued financial guidance for the first quarter and calendar year ending December 31, 2010 and updated its projections of fourth quarter and full year 2009 results.
2010 Financial Guidance
The Company's estimate of revenue for 2010 is in the range of $284 to $292 million, reflecting anticipated total top-line growth of 3 to 6 percent. Earnings for 2010 are estimated to be in the range of $1.18 to $1.26 per diluted share, reflecting an increase of 15 to 25 percent over 2009. Operating margin for 2010 is anticipated to be between 7.5 and 7.7 percent. For the first quarter of 2010 revenues and earnings per diluted share are forecast to be $68 to $70 million and $0.22 to $0.24, respectively. These projections exclude the effects of future acquisitions, include the Metrigraphics Division at revenue and profit levels consistent with 2009, and assume a tax rate of 40.3 percent. Free cash flow for 2010 is projected to be in excess of $20 million.
Updated 2009 Projections
The Company also has updated its 2009 projections. Revenue for the year 2009 is anticipated to be between $275 and $276 million, or approximately $68 million for the fourth quarter. Earnings per diluted share for the year 2009 are anticipated to be between $1.01 and $1.03, or between $0.32 and $0.34 for the fourth quarter of 2009. Operating margin for the year 2009 is projected to be between 6.3 and 6.4 percent. Cash flow in the last quarter of the year also was strong, and the Company's year-end debt, at $32 million, was well below expectations.
Management Comments
"We anticipate a strong finish to 2009 with a solid backlog, strong cash flow, and margin expansion," said Jim Regan, DRC's chairman and chief executive officer. "Looking forward, we remain well positioned for further growth in the health care, homeland security, information assurance, human capital and training markets. As our business base of high end, high margin services continues to expand and with structural cost reductions in place, we are confident in our expectations for double digit earnings growth in 2010."
The Company noted the structural cost changes now in place supporting margin expansion expectations for 2010: its Andover, Massachusetts facility consolidation, which has resulted in reduced annual costs of $1 million, $0.5 million in lower pension expense as a result of strong 2009 market performance, and a $1.8 million reduction in intangible asset amortization expense.
Conference Call
The Company has previously announced that it will release its fourth quarter and year end 2009 financial results after market close on Wednesday, February 24, 2010. A conference call to review the results will be held on Thursday, February 25, 2010 at 10:00 a.m. ET.
The call will be available by telephone at 877-856-1961, and accessible by webcast at http://www.drc.com. Recorded replays of the conference call will be available on Dynamics Research Corporation's investor relations home page at http://www.drc.com and by telephone at (888) 203-1112, replay passcode #1221492, beginning at 1:00 p.m. ET February 25, 2010.
Also, the Company has previously announced that it will participate in the Cowen & Company 30th Annual Aerospace/Defense Conference on Thursday, February 11th, 2010 at the InterContinental Barclay Hotel in New York. Jim Regan, Chairman and Chief Executive Officer, and Dave Keleher, Senior Vice President and Chief Financial Officer, will review the Company's financial performance and growth strategy at 9:40 a.m. ET.
A live audio webcast of the presentation will be accessible via the DRC website. To hear the presentation and view related materials, please visit our website. A replay will be available for ninety days. Additional information about this conference can be found at www.cowen.com.
About Dynamics Research Corporation
Dynamics Research Corporation (DRC) is a leading provider of mission-critical technology management services for government programs. DRC offers forward-thinking solutions backed by a history of excellence and customer satisfaction. Founded in 1955, DRC is a publicly held corporation (Nasdaq:DRCO) and maintains more than 25 offices nationwide with major offices in Andover, Massachusetts and the Washington, D.C. area. For more information please visit our website at www.drc.com.
Safe harbor statements under the Private Securities Litigation Reform Act of 1995: Some statements contained or implied in this news release, may be considered forward-looking statements, which by their nature are uncertain. Consequently, actual results could materially differ. For more detailed information concerning how risks and uncertainties could affect the Company's financial results, please refer to DRC's most recent filings with the SEC. The Company assumes no obligation to update any forward-looking information.