2009 Revenue Up 13 Percent, Earnings Up 30 Percent
Company Classifies Metrigraphics Unit as Discontinued, Anticipating Sale
Company Re-affirms 2010 Earnings Growth Projections in the Range of Twenty Percent
ANDOVER, Mass., Feb. 24, 2010 (GLOBE NEWSWIRE) -- Dynamics Research Corporation (Nasdaq:DRCO), a leading provider of innovative management consulting, engineering, technical and information technology services and solutions to federal and state governments, today announced operating results for the fourth quarter and year ended December 31, 2009.
Financial Results
The Company reported net income of $3.4 million, or $0.34 per diluted share (including $0.01 from discontinued operations) for the fourth quarter of 2009, up from $2.6 million, or $0.27 per diluted share (net of a $0.01 loss from discontinued operations), for the fourth quarter of 2008.
Revenue for the fourth quarter of 2009 was $65.8 million, as compared with $66.0 million for the same period in 2008. The 2009 period included $0.4 million in revenues derived from 8(a) contracts received with the Kadix Systems acquisition compared with $3.1 million for the 2008 period. Absent the effect of the 8(a) contracts, revenue grew 4.1 percent in the fourth quarter of 2009 compared with the same period in 2008.
Net income for the year ended December 31, 2009 was $10.2 million, or $1.04 per diluted share (net of a $0.02 loss from discontinued operations) up from $7.8 million, or $0.80 per diluted share (also net of a $0.02 loss from discontinued operations), for 2008 before litigation charges. Including the litigation charge in 2008, the Company reported a net loss of $1.3 million, or $0.13 per diluted share.
For the year ended December 31, 2009 revenue was $268.7 million compared with $236.8 million for 2008. The 2009 period included $5.2 million in revenues derived from 8(a) contracts received with the Kadix Systems acquisition compared with $12.2 million for the 2008 period. Absent the effect of the 8(a) contracts, revenue grew 5.7 percent in 2009 compared with 2008.
The Company anticipates the sale of its Metrigraphics Division in the first half of 2010 and has classified this segment as a discontinued operation. Historical financial results of the Company have been recast to segregate the Metrigraphics segment as a discontinued operation in the Statement of Operations and Balance Sheet. Historical Metrigraphics results are shown in Appendices VII and VIII to this announcement.
Business Highlights
"We are very pleased with this quarter's financial results, capping off twelve months of improving fundamentals at DRC. For the second consecutive year we have reported a book-to-bill ratio of 1.1, ending 2009 with nearly seven months of funded backlog," said Jim Regan, DRC's chairman and chief executive officer. "Our business development investments resulted in a sharp increase in bids submitted, and we anticipate an even higher level of bid activity in 2010. During 2009 we also saw an increase in prime contract wins, the result of our impressive portfolio of multiple-award schedule, agency-wide contracts. Margin expansion trended favorably throughout the year, as earnings before interest, taxes, depreciation, amortization and litigation provisions rose to $25 million, or 9 percent of revenue, up 23% from 2008. We've now completed our fourteenth consecutive quarter of improving earnings and anticipate continued growth, strong margin expansion and cash flow generation in 2010."
Company Guidance
The Company's estimate for revenue for 2010, updated to exclude discontinued operations, is in the range of $277 to $286 million, reflecting anticipated total top-line growth of 3 to 6 percent. Earnings from continuing operations 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 expectations for 2010, also updated to exclude discontinued operations, are anticipated to be between 7.7 and 7.9 percent.
For the first quarter of 2010, revenues and earnings from continuing operations per diluted share are forecast to be $66.5 to $68.5 million and $0.22 to $0.24, respectively.
Conference Call
The Company will conduct a fourth quarter and year-end 2009 conference call on Thursday, February 25, 2010 at 10:00 a.m. ET. The call will be available via telephone at (877) 856-1961, and accessible via Web cast at www.drc.com. Recorded replays of the conference call will be available on Dynamics Research Corporation's investor relations home page at www.drc.com and by telephone at (888) 203-1112, passcode #1221492, beginning at 1:00 p.m. ET February 25, 2010.
About Dynamics Research Corporation
Dynamics Research Corporation (DRC) is a leading provider of mission-critical technology management services and solutions for government programs. DRC offers the capabilities of a large company and the responsiveness of a small company, 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
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.
The non-GAAP measures used by the Company exclude the provision for litigation charges and related effect for income taxes. The required reconciliations and other disclosures for the non-GAAP measures used by the Company are set forth later in this press release and/or the Current Report on Form 8-K to be filed with the SEC on February 24, 2010.
| ATTACHMENT I | ||
| DYNAMICS RESEARCH CORPORATION | ||
| CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (unaudited) | ||
| (in thousands, except share and per share data) | ||
| Three Months Ended | ||
| December 31, | ||
| 2009 | 2008 | |
| Contract revenue | $ 65,826 | $ 66,015 |
| Cost of contract revenue | 53,854 | 53,735 |
| Gross profit on contract revenue | 11,972 | 12,280 |
| Selling, general and administrative expenses | 5,477 | 6,069 |
| Amortization of intangible assets | 551 | 883 |
| Operating income | 5,944 | 5,328 |
| Interest expense, net | (494) | (718) |
| Other income (expense), net | 106 | (172) |
| Income from continuing operations before provision for income taxes | 5,556 | 4,438 |
| Provision for income taxes | 2,270 | 1,743 |
| Income from continuing operations | 3,286 | 2,695 |
| Income (loss) from discontinued operations, net of taxes | 110 | (91) |
| Net income | $ 3,396 | $ 2,604 |
| Earnings (loss) per share | ||
| Basic | ||
| Income from continuing operations | $ 0.34 | $ 0.28 |
| Income (loss) from discontinued operations | 0.01 | (0.01) |
| Net income | $ 0.35 | $ 0.27 |
| Diluted | ||
| Income from continuing operations | $ 0.33 | $ 0.28 |
| Income (loss) from discontinued operations | 0.01 | (0.01) |
| Net income | $ 0.34 | $ 0.27 |
| Weighted average shares outstanding | ||
| Basic | 9,753,555 | 9,553,546 |
| Diluted | 9,981,292 | 9,638,969 |
| ATTACHMENT II | ||
| DYNAMICS RESEARCH CORPORATION | ||
| CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (unaudited) | ||
| (in thousands, except share and per share data) | ||
| Twelve Months Ended | ||
| December 31, | ||
| 2009 | 2008 | |
| Contract revenue | $ 268,661 | $ 236,796 |
| Cost of contract revenue | 223,694 | 197,802 |
| Gross profit on contract revenue | 44,967 | 38,994 |
| Selling, general and administrative expenses | 23,754 | 21,705 |
| Provision for litigation | -- | 14,819 |
| Amortization of intangible assets | 3,305 | 2,620 |
| Operating income (loss) | 17,908 | (150) |
| Interest expense, net | (2,024) | (1,423) |
| Other income, net | 691 | 35 |
| Income (loss) from continuing operations before provision for income taxes | 16,575 | (1,538) |
| Provision (benefit) for income taxes | 6,262 | (454) |
| Income (loss) from continuing operations | 10,313 | (1,084) |
| Loss from discontinued operations, net of taxes | (141) | (171) |
| Net income (loss) | $ 10,172 | $ (1,255) |
| Earnings (loss) per share | ||
| Basic | ||
| Income (loss) from continuing operations | $ 1.08 | $ (0.11) |
| Loss from discontinued operations | (0.02) | (0.02) |
| Net income (loss) | $ 1.06 | $ (0.13) |
| Diluted | ||
| Income (loss) from continuing operations | $ 1.06 | $ (0.11) |
| Loss from discontinued operations | (0.02) | (0.02) |
| Net income (loss) | $ 1.04 | $ (0.13) |
| Weighted average shares outstanding | ||
| Basic | 9,551,614 | 9,493,495 |
| Diluted | 9,772,722 | 9,493,495 |
| ATTACHMENT III | ||
| DYNAMICS RESEARCH CORPORATION | ||
| CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) | ||
| (in thousands) | ||
| December 31, | December 31, | |
| 2009 | 2008 | |
| Assets | ||
| Current assets | ||
| Cash and cash equivalents | $ 55 | $ 7,111 |
| Contract receivables, net | 72,569 | 70,632 |
| Prepaid expenses and other current assets | 5,702 | 1,706 |
| Discontinued operations | 2,058 | 1,591 |
| Total current assets | 80,384 | 81,040 |
| Noncurrent assets | ||
| Property and equipment, net | 13,915 | 8,999 |
| Goodwill | 97,641 | 97,641 |
| Intangible assets, net | 4,074 | 7,379 |
| Deferred tax asset | 7,949 | 10,396 |
| Other noncurrent assets | 3,335 | 3,125 |
| Discontinued operations | -- | 350 |
| Total noncurrent assets | 126,914 | 127,890 |
| Total assets | $ 207,298 | $ 208,930 |
| Liabilities and stockholders' equity | ||
| Current liabilities | ||
| Current portion of long-term debt | $ 8,000 | $ 8,000 |
| Accounts payable | 18,299 | 17,874 |
| Accrued compensation and employee benefits | 16,357 | 13,644 |
| Deferred taxes | 10,743 | 2,670 |
| Other accrued expenses | 3,708 | 24,702 |
| Discontinued operations | 186 | 279 |
| Total current liabilities | 57,293 | 67,169 |
| Long-term liabilities | ||
| Long-term debt | 23,973 | 30,000 |
| Other long-term liabilities | 31,936 | 30,286 |
| Total stockholders' equity | 94,096 | 81,475 |
| Total liabilities and stockholders' equity | $ 207,298 | $ 208,930 |
| ATTACHMENT IV | ||||
| DYNAMICS RESEARCH CORPORATION | ||||
| SUPPLEMENTAL INFORMATION (unaudited) | ||||
| (dollars in thousands) | ||||
| Contract revenues were earned from the following sectors: | ||||
| Three Months Ended | Twelve Months Ended | |||
| December 31, | December 31, | |||
| 2009 | 2008 | 2009 | 2008 | |
| National defense and intelligence agencies | $ 36,368 | $ 38,830 | $ 146,978 | $ 156,812 |
| Homeland security | 12,865 | 10,226 | 53,167 | 19,280 |
| Federal civilian agencies | 9,803 | 9,874 | 42,375 | 32,899 |
| State and local government agencies | 5,747 | 6,976 | 23,997 | 25,800 |
| Other | 1,043 | 109 | 2,144 | 2,005 |
| $ 65,826 | $ 66,015 | $ 268,661 | $ 236,796 | |
| Revenues by contract type as a percentage of contract revenue were as follows: | ||||
| Three Months Ended | Twelve Months Ended | |||
| December 31, | December 31, | |||
| 2009 | 2008 | 2009 | 2008 | |
| Time and materials | 36% | 45% | 42% | 49% |
| Fixed price, including service-type contracts | 45 | 39 | 40 | 33 |
| Cost reimbursable | 19 | 16 | 18 | 18 |
| 100% | 100% | 100% | 100% | |
| Prime contract | 71% | 69% | 71% | 63% |
| Sub-contract | 29 | 31 | 29 | 37 |
| 100% | 100% | 100% | 100% | |
| Three Months Ended | Twelve Months Ended | |||
| December 31, | December 31, | |||
| 2009 | 2008 | 2009 | 2008 | |
| Net cash provided by (used in) operating activities - continuing operations | $ 5,726 | $ (1,245) | $ 6,304 | $ 18,602 |
| Capital expenditures | $ 2,710 | $ 497 | $ 4,906 | $ 1,973 |
| Depreciation | $ 807 | $ 914 | $ 2,987 | $ 2,961 |
| Bookings | $ 73,736 | $ 66,004 | $ 282,311 | $ 262,832 |
| December 31, | December 31, | |||
| 2009 | 2008 | |||
| Funded backlog | $ 158,518 | $ 146,619 | ||
| Employees | 1,469 | 1,503 | ||
| ATTACHMENT V | |
| DYNAMICS RESEARCH CORPORATION | |
| NON-GAAP CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (unaudited) | |
| (in thousands, except share and per share data) | |
| Twelve Months Ended | |
| December 31, | |
| 2008 | |
| Contract revenue | $ 236,796 |
| Cost of contract revenue | 197,802 |
| Gross profit on contract revenue | 38,994 |
| Selling, general and administrative expenses | 21,705 |
| Amortization of intangible assets | 2,620 |
| Operating income | 14,669 |
| Interest expense, net | (1,423) |
| Other income, net | 35 |
| Income from continuing operations before provision for income taxes | 13,281 |
| Provision for income taxes | 5,303 |
| Income from continuing operations | 7,978 |
| Loss from discontinued operations, net of taxes | (171) |
| Net income | $ 7,807 |
| Earnings per share | |
| Basic | |
| Income from continuing operations | $ 0.84 |
| Loss from discontinued operations | (0.02) |
| Net income | $ 0.82 |
| Diluted | |
| Income from continuing operations | $ 0.82 |
| Loss from discontinued operations | (0.02) |
| Net income | $ 0.80 |
| Weighted average shares outstanding | |
| Basic | 9,493,495 |
| Diluted | 9,704,789 |
| ATTACHMENT VI | |
| DYNAMICS RESEARCH CORPORATION | |
| RECONCILIATION OF NON-GAAP MEASURES | |
| (in thousands, except share and per share data) | |
| Twelve Months Ended | |
| December 31, | |
| 2008 | |
| GAAP operating loss | $ (150) |
| Provision for litigation | 14,819 |
| Non-GAAP operating income | $ 14,669 |
| GAAP loss from continuing operations before provision for income taxes | $ (1,538) |
| Provision for litigation | 14,819 |
| Non-GAAP income from continuing operations before provision for income taxes | $ 13,281 |
| GAAP benefit for income taxes | $ (454) |
| Tax benefit for provision for litigation | 5,757 |
| Non-GAAP provision for income taxes | $ 5,303 |
| GAAP loss from continuing operations | $ (1,084) |
| Provision for litigation, net of tax benefit | 9,062 |
| Non-GAAP income from continuing operations | $ 7,978 |
| GAAP net loss | $ (1,255) |
| Provision for litigation, net of tax benefit | 9,062 |
| Non-GAAP net income | $ 7,807 |
| Earnings (loss) per share | |
| GAAP Basic | $ (0.13) |
| Per share effect of provision for litigation | 0.95 |
| Non-GAAP Basic | $ 0.82 |
| GAAP Diluted | $ (0.13) |
| Per share effect of provision for litigation | 0.93 |
| Non-GAAP Diluted | $ 0.80 |
| Weighted average shares outstanding | |
| Basic (GAAP diluted for 2008) | 9,493,495 |
| Diluted (Non-GAAP for 2008) | 9,704,789 |
| ATTACHMENT VII | ||||
| DYNAMICS RESEARCH CORPORATION | ||||
| FISCAL 2009 QUARTERLY STATEMENT OF OPERATIONS (unaudited) | ||||
| (in thousands, except share and per share data) | ||||
| Three months ended | Three months ended | Three months ended | Three months ended | |
| March 31, | June 30, | September 30, | December 31, | |
| Contract revenue | $ 67,203 | $ 68,128 | $ 67,504 | $ 65,826 |
| Cost of contract revenue | 55,943 | 57,015 | 56,882 | 53,854 |
| Gross profit of contract revenue | 11,260 | 11,113 | 10,622 | 11,972 |
| Selling, general and administrative expenses | 6,311 | 6,211 | 5,755 | 5,477 |
| Amortization of intangible assets | 973 | 972 | 809 | 551 |
| Operating income | 3,976 | 3,930 | 4,058 | 5,944 |
| Interest expense, net | (619) | (477) | (434) | (494) |
| Other income, net | 39 | 282 | 264 | 106 |
| Income from continuing operations before provision for income taxes | 3,396 | 3,735 | 3,888 | 5,556 |
| Provision for income taxes | 1,439 | 1,561 | 992 | 2,270 |
| Income from continuing operations | 1,957 | 2,174 | 2,896 | 3,286 |
| Income (loss) from discontinued operations, net of taxes | (186) | (124) | 59 | 110 |
| Net income | $ 1,771 | $ 2,050 | $ 2,955 | $ 3,396 |
| Earnings per common share | ||||
| Basic | ||||
| Income from continuing operations | $ 0.20 | $ 0.23 | $ 0.30 | $ 0.34 |
| Income (loss) from discontinued operations | $ (0.02) | $ (0.01) | $ 0.01 | $ 0.01 |
| Net income | $ 0.18 | $ 0.21 | $ 0.31 | $ 0.35 |
| Diluted | ||||
| Income from continuing operations | $ 0.20 | $ 0.22 | $ 0.29 | $ 0.33 |
| Income (loss) from discontinued operations | $ (0.02) | $ (0.01) | $ 0.01 | $ 0.01 |
| Net income | $ 0.18 | $ 0.21 | $ 0.30 | $ 0.34 |
| Weighted average shares outstanding | ||||
| Basic | 9,604,895 | 9,610,428 | 9,678,983 | 9,753,555 |
| Diluted | 9,711,084 | 9,729,721 | 9,983,825 | 9,981,292 |
| Supplemental Data | ||||
| Net cash provided by (used in) operating activities - continuing operations | $ 3,565 | $ 5,057 | $ (8,044) | $ 5,726 |
| Capital expenditures | $ 223 | $ 545 | $ 1,428 | $ 2,710 |
| Depreciation | $ 737 | $ 703 | $ 740 | $ 807 |
| Bookings | $ 55,827 | $ 66,324 | $ 86,424 | $ 73,736 |
| EBITDA from continuing operations: | ||||
| Income from continuing operations | $ 1,957 | $ 2,174 | $ 2,896 | $ 3,286 |
| Interest expense, net | 619 | 477 | 434 | 494 |
| Provision for income taxes | 1,439 | 1,561 | 992 | 2,270 |
| Depreciation expense | 737 | 703 | 740 | 807 |
| Amortization expense | 973 | 972 | 809 | 551 |
| EBITDA from continuing operations | $ 5,725 | $ 5,887 | $ 5,871 | $ 7,408 |
| ATTACHMENT VII | ||||
| DYNAMICS RESEARCH CORPORATION | ||||
| FISCAL 2008 QUARTERLY STATEMENT OF OPERATIONS (unaudited) | ||||
| (in thousands, except share and per share data) | ||||
| Three months ended | Three months ended | Three months ended | Three months ended | |
| March 31, | June 30, | September 30, | December 31, | |
| Contract revenue | $ 54,773 | $ 53,708 | $ 62,300 | $ 66,015 |
| Cost of contract revenue | 46,212 | 45,599 | 52,256 | 53,735 |
| Gross profit of contract revenue | 8,561 | 8,109 | 10,044 | 12,280 |
| Selling, general and administrative expenses | 5,244 | 4,998 | 5,394 | 6,069 |
| Provision for litigation | 8,819 | -- | 6,000 | -- |
| Amortization of intangible assets | 509 | 510 | 718 | 883 |
| Operating income | (6,011) | 2,601 | (2,068) | 5,328 |
| Interest expense, net | (139) | (142) | (424) | (718) |
| Other income, net | (71) | 239 | 39 | (172) |
| Income from continuing operations before provision for income taxes | (6,221) | 2,698 | (2,453) | 4,438 |
| Provision (benefit) for income taxes | (991) | 1,120 | (2,326) | 1,743 |
| Income (loss) from continuing operations | (5,230) | 1,578 | (127) | 2,695 |
| Income (loss) from discontinued operations, net of taxes | (26) | 51 | (105) | (91) |
| Net income (loss) | $ (5,256) | $ 1,629 | $ (232) | $ 2,604 |
| Earnings (loss) per common share | ||||
| Basic | ||||
| Income (loss) from continuing operations | $ (0.55) | $ 0.17 | $ (0.01) | $ 0.28 |
| Income (loss) from discontinued operations | $ (0.01) | $ 0.00 | $ (0.01) | $ (0.01) |
| Net income | $ (0.56) | $ 0.17 | $ (0.02) | $ 0.27 |
| Diluted | ||||
| Income from continuing operations | $ (0.55) | $ 0.16 | $ (0.01) | $ 0.28 |
| Income (loss) from discontinued operations | $ (0.01) | $ 0.01 | $ (0.01) | $ (0.01) |
| Net income | $ (0.56) | $ 0.17 | $ (0.02) | $ 0.27 |
| Weighted average shares outstanding | ||||
| Basic | 9,436,054 | 9,443,347 | 9,487,155 | 9,553,546 |
| Diluted | 9,436,054 | 9,724,839 | 9,487,155 | 9,638,969 |
| Supplemental Data | ||||
| Net cash provided by (used in) operating activities - continuing operations | $ 1,640 | $ 3,956 | $ 14,251 | $ (1,245) |
| Capital expenditures | $ 397 | $ 396 | $ 683 | $ 497 |
| Depreciation | $ 654 | $ 672 | $ 721 | $ 914 |
| Bookings | $ 60,637 | $ 63,429 | $ 72,762 | $ 66,004 |
| EBITDA from continuing operations: | ||||
| Income (loss) from continuing operations | $ (5,230) | $ 1,578 | $ (127) | $ 2,695 |
| Interest expense, net | 139 | 142 | 424 | 718 |
| Provision (benefit) for income taxes | (991) | 1,120 | (2,326) | 1,743 |
| Depreciation expense | 654 | 672 | 721 | 914 |
| Amortization expense | 509 | 510 | 718 | 883 |
| EBITDA from continuing operations | $ (4,919) | $ 4,022 | $ (590) | $ 6,953 |
| Add back provision for litigation, net of tax | 6,695 | -- | 2,367 | -- |
| EBITDA from continuing operations, excluding provision for litigation | $ 1,776 | $ 4,022 | $ 1,777 | $ 6,953 |
| ATTACHMENT VIII | |||
| DYNAMICS RESEARCH CORPORATION | |||
| 2009 QUARTERLY BALANCE SHEET SUMMARY (unaudited) | |||
| (in thousands) | |||
| March 31, | June 30, | September 30, | |
| Assets | |||
| Current assets | |||
| Cash and cash equivalents | $ 4,383 | $ 6,622 | $ 213 |
| Contract receivables, net | 71,061 | 72,184 | 70,934 |
| Prepaid expenses and other current assets | 2,513 | 2,376 | 3,441 |
| Discontinued operations | 1,933 | 2,122 | 2,444 |
| Total current assets | 79,890 | 83,304 | 77,032 |
| Noncurrent assets | |||
| Property and equipment, net | 8,476 | 8,284 | 8,966 |
| Goodwill | 97,641 | 97,641 | 97,641 |
| Intangible assets, net | 6,406 | 5,434 | 4,625 |
| Deferred tax asset | 10,369 | 10,298 | 10,314 |
| Other noncurrent assets | 3,042 | 3,028 | 3,146 |
| Total noncurrent assets | 125,934 | 124,685 | 124,692 |
| Total assets | $ 205,824 | $ 207,989 | $ 201,724 |
| Liabilities and stockholders' equity | |||
| Current liabilities | |||
| Current portion of long-term debt | $ 8,000 | $ 8,000 | $ 8,000 |
| Accounts payable | 17,441 | 16,330 | 15,422 |
| Accrued compensation and employee benefits | 13,419 | 16,082 | 17,121 |
| Deferred taxes | 3,492 | 3,248 | 9,670 |
| Other accrued expenses | 20,844 | 22,378 | 2,695 |
| Discontinued operations | 333 | 287 | 262 |
| Total current liabilities | 63,529 | 66,325 | 53,170 |
| Long-term liabilities | |||
| Long-term debt | 28,296 | 26,000 | 28,298 |
| Other long-term liabilities | 30,523 | 29,695 | 30,611 |
| Total stockholders' equity | 83,476 | 85,969 | 89,645 |
| Total liabilities and stockholders' equity | $ 205,824 | $ 207,989 | $ 201,724 |
| Supplemental Data | |||
| Funded backlog | $ 139,337 | $ 135,271 | $ 150,246 |
| ATTACHMENT VIII | |||
| DYNAMICS RESEARCH CORPORATION | |||
| 2008 QUARTERLY BALANCE SHEET SUMMARY (unaudited) | |||
| (in thousands) | |||
| March 31, | June 30, | September 30, | |
| Assets | |||
| Current assets | |||
| Cash and cash equivalents | $ 1,061 | $ 108 | $ 10,818 |
| Contract receivables, net | 60,978 | 63,184 | 66,902 |
| Prepaid expenses and other current assets | 2,621 | 1,923 | 5,582 |
| Discontinued operations | 1,685 | 1,855 | 1,497 |
| Total current assets | 66,345 | 67,070 | 84,799 |
| Noncurrent assets | |||
| Property and equipment, net | 9,425 | 9,149 | 9,425 |
| Goodwill | 63,055 | 63,055 | 94,826 |
| Intangible assets, net | 2,560 | 2,050 | 6,232 |
| Deferred tax asset | 1,484 | 1,484 | 1,182 |
| Other noncurrent assets | 3,918 | 4,303 | 4,915 |
| Discontinued operations | 459 | 427 | 393 |
| Total noncurrent assets | 80,901 | 80,468 | 116,973 |
| Total assets | $ 147,246 | $ 147,538 | $ 201,772 |
| Liabilities and stockholders' equity | |||
| Current liabilities | |||
| Current portion of long-term debt | $ -- | $ -- | $ 8,000 |
| Accounts payable | 10,954 | 13,460 | 18,261 |
| Accrued compensation and employee benefits | 11,943 | 13,433 | 15,932 |
| Deferred taxes | 5,994 | 5,696 | 7,605 |
| Other accrued expenses | 13,335 | 12,724 | 18,402 |
| Discontinued operations | 179 | 169 | 217 |
| Total current liabilities | 42,405 | 45,482 | 68,417 |
| Long-term liabilities | |||
| Long-term debt | 5,000 | 607 | 32,000 |
| Other long-term liabilities | 8,172 | 7,931 | 7,615 |
| Total stockholders' equity | 91,669 | 93,518 | 93,740 |
| Total liabilities and stockholders' equity | $ 147,246 | $ 147,538 | $ 201,772 |
| Supplemental Data | |||
| Funded backlog | $ 111,658 | $ 113,204 | $ 146,661 |