VIENNA, Va., Aug. 11 /PRNewswire/ -- GRC International (NYSE: GRH) today
reported record revenues of $164.6 million for the fiscal year ended June 30,
1999, a 26% improvement over revenues of $130.9 million last year. Operating
income for fiscal 1999 was $9.3 million, compared to last year's $5.4 million,
a substantial 72% increase. Annual operating margin percentage improved to
5.6% from 4.1%, a 37% improvement.
Income from continuing operations before taxes for fiscal 1999 more than
doubled to $8.0 million from $3.5 million last year.
Net income for the current year was $9.1 million, or $0.87 per diluted
share. Net results included net interest expense of $1.2 million, $225,000 in
income from discontinued operations (net of taxes), and a $863,000 net tax
benefit related to the recognition of prior year tax net operating loss
carryforwards that have now been fully recognized.
Last year's net income was $11.5 million, or $1.14 per diluted share. It
included net interest expense of $1.9 million, a $758,000 gain from
discontinued operations, and a tax benefit of $7.2million.
"GRC International has just finished its best fiscal year in its 38-year
history," said Dr. Gary Denman, president and CEO of GRC International. "This
remarkable performance is very much the result of the professional efforts of
our focused management team and dedicated staff throughout the company. At the
beginning of last year, we established aggressive but achievable operational
and administrative goals and I am pleased to report that we were very
successful and ran ahead of all of our benchmarks.
"At the top line, we had announced a goal of 10-to-20% internal revenue
growth, and we surpassed this goal by growing 26%. The revenue growth was
driven by continued strong demand for information technology services from
both government and commercial clients. We targeted margin improvement of 10%
and we improved 37%. We also contemplated selective acquisitions to be a part
of our growth strategy, and while we were not able to complete our first
acquisition during the fiscal year, subsequent to the close of the year we
announced the signing of a definitive agreement to acquire Management
Consulting & Research Inc. We anticipate this highly regarded professional
services firm will add approximately $30 million in annualized revenues,
advancing us towards our goal of achieving $260 million in revenues by the
close of fiscal 2001.
"We also targeted bringing our long-term debt down to $15 million from $23
million. Our strong operating performance allowed us to substantially improve
our financial condition and we exceeded our goal, cutting long-term debt
nearly in half and closing the year with $12.6 million in long-term debt.
Stockholders' equity also benefited significantly, increasing 45% over last
year.
"Finally, I said last year that I wanted to reposition GRCI as a prime
contractor, particularly in the information technology market. The IT system
integration effort that we are leading to modernize the U.S. Army's logistics
management information system has been a major contributor to the success we
have enjoyed over the past year. And , as a demonstration of the strong
support we are getting from our customers, at the close of the year our total
contract backlog was nearly $570 million, up 25% over the close of last year.
"In all, it was a very good year for GRC International and our
shareholders, but it is only a beginning and we must remain vigilant of our
goals. I am looking forward to another productive and profitable year for GRC
International."
Fourth Quarter Results
Revenues for the fourth quarter ended June 30, 1999, were $46.7 million, a
20% increase over the $38.8 million reported for the corresponding quarter
last year.
The company reported operating income of $2.7 million, up from $1.3
million reported for the fourth quarter of fiscal 1998.
Net income for the quarter was $1.5 million, or $0.14 per diluted share.
Net income reflected net interest expense of $247,000 and a $931,000 tax
provision. For the fourth quarter of last year, the company reported net
income of $4.0 million, or $0.38 per diluted share, after net interest expense
of $414,000, and a $3.1 million tax benefit.
GRCI has fully recognized its NOL as a tax benefit and future reporting
will include a tax provision, however, the company will not pay taxes for
several years, thus enhancing its cash flow.
Conference Call
GRC International's fourth quarter 1999 earnings conference call will be
conducted on Wednesday, August 11, 1999, at 9 a.m. Eastern time. You may
participate in the conference call by dialing 888-566-5907 approximately five
minutes before the conference call is scheduled to begin. The conference call
password is "GRCI."
GRC International Inc., headquartered in Vienna, Va., is a leading
provider of professional services focusing on information technology,
management consulting, and scientific engineering for a national clientele in
the government and commercial sectors. GRCI is a publicly traded company
listed on the New York Stock Exchange under the symbol GRH. Additional details
about GRC International can be obtained on the Internet at
http://www.grci.com/. Details concerning MCR can be viewed at
http://www.mcri.com.
Forward-looking statements contained in this release are subject to risks
and uncertainties that could cause actual results to differ materially. These
risks and uncertainties include the company's dependence on continued funding
of U.S. Department of Defense programs and the company's ability to fill
required staff positions to service the contracts granted under those
programs; government contract procurement and termination risks; and other
risks described in the company's Securities and Exchange Commission filings.
Inquiries: James Allen, CFO, (703) 506-5574, or Wayne Jackson, Director,
Corporate Communications, (703) 506-5038. GRCI press releases are available on
the Internet through Company News On-Call at http://www.prnewswire.com/.
GRC International, Inc.
Consolidated Condensed Statements of Income
(in thousands, except for per share data)
(unaudited)
Three Months Ended Twelve Months Ended
June 30, June 30,
1999 1998 1999 1998
Revenues $46,677 $38,750 $164,602 $130,927
Cost of services 39,371 34,291 138,770 110,477
Indirect costs
and other costs 4,642 3,142 16,574 15,048
Operating income 2,664 1,317 9,258 5,402
Interest expense, net (247) (414) (1,215) (1,866)
Income from continuing
operations before
income tax benefit
(provision) 2,417 903 8,043 3,536
Income tax benefit
(provision) (931) 3,088 863 7,166
Income from continuing
operations 1,486 3,991 8,906 10,702
Gain from discontinued
operations
(Net of tax) 5 - 225 758
Net Income $ 1,491 $ 3,991 $9,131 $ 11,460
Basic income
per common share:
Continuing operations $0.15 $0. 39 $0.87 $1.09
Discontinued operations - - 0.02 0.08
Net income $0.15 $0.39 $0.89 $1.17
Number of shares used
in EPS calculation 10,245 10,140 10,230 9,838
Diluted income per common share:
Continuing operations $0.14 $0.38 $0.85 $1.07
Discontinued operations - 0.02 0.07
Net income $0.14 $0.38 $0.87 $1.14
Number of shares used
in EPS calculation 10,594 10,386 10,498 10,254
Consolidated Balance Sheets
(Condensed and unaudited)
(in thousands)
June 30, June 30,
1999 1998
Assets
Current assets $48,182 $39,157
Property and equipment, net 9,095 9,569
Goodwill and other
intangible assets, net 1,989 2,176
Deferred taxes 15,428 16,678
Other assets 1,387 3,683
Total assets $76,081 $71,263
Liabilities and stockholders' equity
Current liabilities $23,100 $20,381
Long-term debt 12,623 23,256
Other non-current liabilities 299 266
Stockholders' equity 40,059 27,360
Total liabilities and
stockholders' equity $76,081 $71,263
SOURCE GRC International Inc.
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Related links:
http://www.grci.com
Company News On-Call:
http://www.prnewswire.com/comp/320275.html or fax,
800-758-5804, ext. 320275
CONTACT:
James Allen, CFO, 703-506-5574; or Wayne
Jackson, Director, Corporate Communications, 703-506-5038; both
of GRC International Inc.
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