Fourth Quarter Earnings From Continuing Operations Up 21 Percent
Federal Business Revenue Grew 11 Percent
ANDOVER, Mass., Feb. 16, 2011 (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 announced operating results for the fourth quarter and year ended December 31, 2010.
The Company reported net income from continuing operations for the fourth quarter of 2010 of $4.0 million, up 21 percent from $3.3 million for the same period in 2009. Earnings from continuing operations per diluted share for the fourth quarter of 2010 were $0.39, up 18 percent from $0.33 for the same period in 2009.
For the full year 2010 net income from continuing operations was $12.3 million, up 19 percent from $10.3 million for 2009. Earnings from continuing operations per diluted share were $1.22, up 15 percent from $1.06 for 2009. Net Income for 2010, including discontinued operations, was $12.7 million, or $1.26 per diluted share.
For the fourth quarter of 2010 revenue was $69.8 million, up 6 percent from $65.8 million in the fourth quarter of 2009. Federal revenue was $66.4 million for the fourth quarter of 2010, up 11 percent from $60 million for the same period a year ago.
For the year 2010 revenue was $272.1 million, as compared with $268.7 million for 2009. Federal revenue for 2010 of $254.1 million was up 4 percent over 2009 revenue of $244.3 million.
"We're very pleased with our performance in the quarter, ending the year with strong momentum heading into 2011," said Jim Regan, DRC's chairman and chief executive officer. "We saw double-digit growth in federal sector revenue during the period and continued to bid on a significant number of new business opportunities. Our raw pipeline of $1.7 billion has risen 30% in the past 12 months, and we currently have $373 million in bids submitted and awaiting award. In addition, we ended the year with $30 million in cash, driven by federal DSO's of 55 days, and generated cash flow from operating activities of over $40 million. We look forward to another year of improved performance in 2011."
The Company reaffirms guidance issued on February 8, 2011.
Earnings for the full year 2011 are estimated to be in the range of $1.25 to $1.32 per diluted share, reflecting an increase of 5 to 10 percent over 2010 excluding a one-time tax benefit of 3 cents received in the first quarter of 2010. Earnings per diluted share are forecast to be between $0.25 and $0.27 for the first quarter of 2011, up 4 to 13 percent over the first quarter of 2010 excluding the one-time tax benefit received in the prior-year period. The Company's estimate of revenue for 2011 is in the range of $281 to $289 million, reflecting anticipated top-line growth for DRC's federal business of 5 to 8 percent. For the first quarter of 2011, revenue is projected at $68 to $70 million, reflecting growth in the Company's federal business of 3 to 6 percent. These projections exclude the effects of future acquisitions and assume a tax rate of approximately 40 percent.
The Company will conduct its fourth quarter and year-end 2010 conference call on Thursday, February 17, 2011 at 10:00 a.m. ET. The call will be available by telephone at 877-303-4382, 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 800-642-1687, replay passcode #41431225, beginning at 1:00 p.m. ET on February 17, 2011.
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 .
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.
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