Perspecta Reports Q4, FY 2020 Results; Mac Curtis Quoted

Mac Curtis
Mac Curtis

Perspecta has announced financial results for the fourth quarter and fiscal year that ended March 31, the company reported on Friday

“We rose to the COVID-19 challenge and continued to deliver in new, safe and innovative ways. This led to results that exceeded the high end of our revenue, earnings and free cash flow conversion expectations,“ said Mac Curtis, president and CEO at Perspecta and 2020 Wash100 Award recipient.

Perspecta reported that the company's revenue for the fourth quarter of fiscal year 2020 was $1.1 billion, up slightly compared to the fourth quarter of fiscal year 2019, and down 2.4 percent compared to the third quarter of fiscal year 2020. 

The company's loss before taxes for the fourth quarter of fiscal year 2020 was $884 million, compared to $13 million for the fourth quarter of fiscal year 2019. The increase in loss before taxes is primarily due to the $796 million non-cash, pre-tax impairment charge.

The charges were reported in relation to the  goodwill and intangible assets due to the U.S. Navy's decision not to award Perspecta the re-compete of the Next Generation Enterprise Network (NGEN) contract.

Perpsecta noted its operating margin for the fourth quarter of fiscal year 2020 decreased from 1.2 percent to 80.4 percent year-over-year and the company's net loss was $789 million. Perspecta's adjusted net income was $89 million for the fourth quarter of fiscal year 2020, which was flat year-over-year. 

Adjusted EBITDA margin decreased from 18.9 percent to 16.6 percent over the same period. Adjusted diluted EPS for the fourth quarter of fiscal year 2020 was $0.55, up 2 percent compared to adjusted diluted EPS for the fourth quarter of fiscal year 2019.

Perspecta's revenue for fiscal year 2020 was $4.5 billion, an increase of 12 percent compared to fiscal year 2019, and an increase of 5 percent compared to pro forma revenue of fiscal year 2019. Loss before taxes for fiscal year 2020 was $730 million, compared to income before taxes of $112 million for fiscal year 2019. 

Operating margin for fiscal year 2020 decreased from 2.8 percent to 16.2 percent year-over-year. Net loss was $676 million and adjusted net income was $352 million for fiscal year 2020, which was up 7 percent compared to pro forma adjusted net income for fiscal year 2019. 

Adjusted EBITDA was $778 million for fiscal year 2020, up 2 percent compared to pro forma adjusted EBITDA for fiscal year 2019; adjusted EBITDA margin decreased from pro forma 17.8 percent to 17.3 percent over the same period.

"We finished our fiscal year by delivering yet another quarter of strong performance," added Curtis. "The health and safety of our dedicated employees is our top priority while remaining focused on supporting our customers' missions and driving value for our shareholders. I am incredibly impressed by the resiliency, creativity and compassion of our workforce.

About Perspecta Inc.

At Perspecta, we question, we seek and we solve. Perspecta brings a diverse set of capabilities to our U.S. government customers in defense, intelligence, civilian, health care and state and local markets. Our 270+ issued, licensed and pending patents are more than just pieces of paper, they tell the story of our innovation. 

With offerings in mission services, digital transformation and enterprise operations, our team of nearly 14,000 engineers, analysts, investigators and architects work tirelessly to not only execute the mission, but build and support the backbone that enables it. Perspecta was formed to take on big challenges. We are an engine for growth and success and we enable our customers to build a better nation.

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