Booz Allen Hamilton Announces First Quarter Fiscal 2015 Results

  Booz Allen Hamilton Announces First Quarter Fiscal 2015 Results

       Procurement Climate Improving, with Increased Proposal Activity

                    First Quarter revenue of $1.32 billion

                       Adjusted EBITDA of $157 million

                 Adjusted Diluted Earnings per Share of $0.50

$1.00 Special dividend and $0.11 quarterly dividend declared – both payable on
                               August 29, 2014

Business Wire

MCLEAN, Va. -- July 30, 2014

Booz Allen Hamilton Holding Corporation (NYSE:BAH), the parent company of
management and technology consulting firm Booz Allen Hamilton, Inc., today
announced preliminary results for the first quarter of fiscal 2015. The
Company saw revenue declines for the quarter, primarily as a result of a
decline in headcount driven by continued spending caution by federal
government clients. Booz Allen’s fiscal year runs from April 1 to March 31,
with the first quarter of fiscal 2015 ending June 30, 2014.

Revenue for the first quarter was $1.32 billion, compared with $1.43 billion
in the prior year period, a decrease of 7.4 percent. Adjusted EBITDA was
$157.3 million in the first quarter of fiscal 2015, compared to $158.1 million
in the prior year period, a slight decrease of 0.5 percent. Adjusted Net
Income was $74.6 million, compared to $73.2 million in the prior year period,
an increase of 1.8 percent. Adjusted Diluted Earnings per Share was $0.50 for
the first quarter, consistent with $0.50 for the prior year quarter.

The Company authorized and declared a special dividend of $1.00 per share and
a regular quarterly cash dividend of $0.11 per share, payable on August 29,
2014, to stockholders of record on August 11, 2014.

Ralph W. Shrader, Booz Allen’s Chairman & Chief Executive Officer, said, “All
in all, we are pleased with our position at the end of the fiscal 2015 first
quarter – while our revenue decrease during the quarter was due to a climate
of continued cautionary spending by the federal government, our staff
productivity remains high and profitability on contracts and task orders
remain strong. The procurement climate has been improving and we are seeing a
continuation in the high level of proposal activity that began in April with a
pickup in contract awards, as reflected in a seasonally strong book-to-bill
and an increase in funded backlog. We are also seeing promising signals for
contract awards in our fiscal 2015 second quarter which coincides with the end
of the government’s fiscal year.

“Looking further ahead, we continue to invest in areas consistent with our
long-term growth strategy – in innovation, engineering and systems delivery,
advanced analytics, and cyber – and have brought to market several new
products and service offerings that are gaining traction. Growth in our
commercial and international markets is accelerating, and we have the
opportunity to invest in a significant expansion in selected countries in the
Middle East, adding senior leadership and staff capacity in that region in
anticipation of further opportunities there,” Shrader said.

Financial Review

First Quarter 2015 – Below is a summary of Booz Allen’s results for the fiscal
2015 first quarter and the key factors driving those results:

  *Booz Allen’s 7.4 percent decline in revenue in the first quarter of fiscal
    2015 compared with the prior year period resulted from demand-related
    reductions in headcount, which resulted in fewer billable hours in total.
    The revenue decline was additionally the result of a decline in lower
    margin billable expenses.
  *In the first quarter of fiscal 2015, Operating Income increased to $139.0
    million from $138.7 million in the prior year period, and Adjusted
    Operating Income increased to $142.1 million from $141.9 million in the
    prior year period. The increases were attributable to continued effective
    cost management and profitability. The impact of revenue declines on
    Operating Income and Adjusted Operating Income were mitigated by a decline
    in certain provisions for the potential recovery of allowable expenses,
    and to a lesser extent from reductions in fringe benefit costs, incentive
    compensation, and depreciation expense recorded during the first quarter
    of fiscal 2015 as compared to the prior year period. Adjusted EBITDA
    decreased to $157.3 million from $158.1 million in the prior year period
    and was impacted by the same factors as Adjusted Operating Income,
    excluding the positive impact of the decline in depreciation expenditures.
  *In the first quarter of fiscal 2015, Net Income increased to $71.1 million
    from $70.3 million in the prior year period. Adjusted Net Income increased
    to $74.6 million from $73.2 million in the prior year period. These
    increases in earnings compared to the prior year period were largely the
    result of the factors affecting Operating Income and Adjusted Operating
    Income.
  *In the first quarter of fiscal 2015, diluted EPS decreased to $0.47 from
    $0.48 in the prior year period; Adjusted Diluted EPS remained consistent
    at $0.50 per share as compared to $0.50 in the prior year period. The per
    share earnings results were driven by the same factors as Net Income and
    Adjusted Net Income, offset by an increase in diluted share count.

Free cash flow for the first quarter was $89.1 million, compared with $71.4
million in the prior year period. The increase was primarily the result of a
timing-related decrease in cash tax payments as compared to the prior year
period.

Funded backlog as of June 30, 2014, was $2.35 billion, compared with $2.19
billion as of June 30, 2013, an increase of 7.1 percent. Booz Allen’s total
backlog, as of June 30, 2014, was $9.68 billion, compared with $10.86 billion
as of June 30, 2013. We believe the quarter’s increase in funded backlog
reflects a more normalized flow of award activity as the federal government
approaches the end of its fiscal year, as reflected in a book-to-bill of 0.88
for the quarter, which was stronger than the 0.52 book-to-bill for our first
quarter of fiscal 2014.

Financial Outlook

For our full fiscal year 2015 we are reaffirming the guidance we issued on May
21, 2014, which calls for a mid-single digit percentage decline in revenue,
and diluted EPS to be in the range of $1.44 to $1.54, with Adjusted Diluted
EPS to be on the order of $1.50 to $1.60 per share.

These EPS estimates are based on fiscal year 2015 estimated average diluted
shares outstanding of approximately 151.3 million shares, and a 40.5 percent
effective tax rate, which does not include federal and state tax credits that
have not yet been extended or for which qualification has not yet been
established.

Conference Call Information

Booz Allen Hamilton will host a conference call at 8 a.m. EDT on Wednesday,
July 30, 2014, to discuss the financial results for its First Quarter of
Fiscal Year 2015 (ending June 30, 2014).

Analysts and institutional investors may participate on the call by dialing
(877) 375-9141 International: (253) 237-1151. The conference call will be
webcast simultaneously to the public through a link on the investor relations
section of the Booz Allen Hamilton web site at investors.boozallen.com. A
replay of the conference call will be available online at
investors.boozallen.com beginning at 11 a.m. EDT on July 30, 2014, and
continuing for 30 days.

About Booz Allen Hamilton

Booz Allen Hamilton is a leading provider of management consulting,
technology, and engineering services to the U.S. government in defense,
intelligence, and civil markets, and to major corporations, institutions, and
not-for-profit organizations. Booz Allen is headquartered in McLean, Virginia,
employs more than 22,000 people, and had revenue of $5.48 billion for the 12
months ended March 31, 2014.

BAHPR-FI

Non-GAAP Financial Information

“Adjusted Operating Income” represents Operating Income before (i) certain
stock option-based and other equity-based compensation expenses, (ii)
adjustments related to the amortization of intangible assets, and (iii) any
extraordinary, unusual, or non-recurring items. Booz Allen prepares Adjusted
Operating Income to eliminate the impact of items it does not consider
indicative of ongoing operating performance due to their inherent unusual,
extraordinary or non-recurring nature or because they result from an event of
a similar nature.

“Adjusted EBITDA” represents net income before income taxes, net interest and
other expense and depreciation and amortization and before certain other
items, including: (i) certain stock option-based and other equity-based
compensation expenses, (ii) transaction costs, fees, losses, and expenses,
including fees associated with debt prepayments, and (iii) any extraordinary,
unusual or non-recurring items. Booz Allen prepares Adjusted EBITDA to
eliminate the impact of items it does not consider indicative of ongoing
operating performance due to their inherent unusual, extraordinary or
non-recurring nature or because they result from an event of a similar nature.

“Adjusted Net Income” represents net income before: (i) certain stock
option-based and other equity-based compensation expenses, (ii) transaction
costs, fees, losses, and expenses, including fees associated with debt
prepayments, (iii) adjustments related to the amortization of intangible
assets, (iv) amortization or write-off of debt issuance costs and write-off of
original issue discount and (v) any extraordinary, unusual or non-recurring
items, in each case net of the tax effect calculated using an assumed
effective tax rate. Booz Allen prepares Adjusted Net Income to eliminate the
impact of items, net of taxes, it does not consider indicative of ongoing
operating performance due to their inherent unusual, extraordinary or
non-recurring nature or because they result from an event of a similar nature.

“Adjusted Diluted EPS” represents diluted EPS calculated using Adjusted Net
Income as opposed to Net Income. Additionally, Adjusted Diluted EPS does not
contemplate any adjustments to net income as required under the two-class
method of calculating EPS as required in accordance with GAAP.

“Free Cash Flow” represents the net cash generated from operating activities
less the impact of purchases of property and equipment.

Booz Allen utilizes and discusses in this release Adjusted Operating Income,
Adjusted EBITDA, Adjusted Net Income, and Adjusted Diluted EPS because
management uses these measures for business planning purposes, including
managing its business against internal projected results of operations and
measuring its performance. Management views Adjusted Operating Income,
Adjusted EBITDA, Adjusted Net Income, and Adjusted Diluted EPS as measures of
the core operating business, which exclude the impact of the items detailed in
the supplemental exhibits, as these items are generally not operational in
nature. These supplemental performance measures also provide another basis for
comparing period to period results by excluding potential differences caused
by non-operational and unusual or non-recurring items. Booz Allen also
utilizes and discusses Free Cash Flow in this release because management uses
this measure for business planning purposes, measuring the cash generating
ability of the operating business and measuring liquidity generally. Booz
Allen presents these supplemental measures because it believes that these
measures provide investors and securities analysts with important supplemental
information with which to evaluate Booz Allen’s performance, long term
earnings potential, or liquidity, as applicable, and to enable them to assess
Booz Allen’s performance on the same basis as management. These supplemental
performance measurements may vary from and may not be comparable to similarly
titled measures by other companies in Booz Allen’s industry. Adjusted
Operating Income, Adjusted EBITDA, Adjusted Net Income, Adjusted Diluted EPS,
and Free Cash Flow are not recognized measurements under GAAP and when
analyzing Booz Allen’s performance or liquidity, as applicable, investors
should (i) evaluate each adjustment in our reconciliation of Operating and Net
Income to Adjusted Operating Income, Adjusted EBITDA and Adjusted Net Income,
and cash flows to Free Cash Flows and the explanatory footnotes regarding
those adjustments, (ii) use Adjusted Operating Income, Adjusted EBITDA,
Adjusted Net Income, and Adjusted Diluted EPS in addition to, and not as an
alternative to Operating Income, Net Income or Diluted EPS as a measure of
operating results, each as defined under GAAP, and (iii) use Free Cash Flows,
in addition to, and not as an alternative to, Net Cash Provided by Operating
Activities as a measure of liquidity, each as defined under GAAP. Exhibit 4
includes a reconciliation of Adjusted Operating Income, Adjusted EBITDA,
Adjusted Net Income, Adjusted Diluted EPS, and Free Cash Flow to the most
directly comparable financial measure calculated and presented in accordance
with GAAP.

No reconciliation of the forecasted range for Adjusted Diluted EPS to Diluted
EPS for any period during fiscal 2015 is included in this release because we
are unable to quantify certain amounts that would be required to be included
in the GAAP measure without unreasonable efforts and we believe such
reconciliations would imply a degree of precision that would be confusing or
misleading to investors.

Forward Looking Statements

Certain statements contained in this press release and in related comments by
our management include “forward-looking statements” within the meaning of the
Private Securities Litigation Reform Act of 1995. Examples of forward-looking
statements include information concerning Booz Allen’s preliminary financial
results, financial outlook and guidance, including forecasted revenue, Diluted
EPS, and Adjusted Diluted EPS, future quarterly dividends, and future
improvements in operating margins, as well as any other statement that does
not directly relate to any historical or current fact. In some cases, you can
identify forward-looking statements by terminology such as “may,” “will,”
“could,” “should,” “forecasts,” “expects,” “intends,” “plans,” “anticipates,”
“projects,” “outlook,” “believes,” “estimates,” “predicts,” “potential,”
“continue,” “preliminary,” or the negative of these terms or other comparable
terminology. Although we believe that the expectations reflected in the
forward-looking statements are reasonable, we can give you no assurance these
expectations will prove to have been correct.

These forward-looking statements relate to future events or our future
financial performance and involve known and unknown risks, uncertainties and
other factors that may cause our actual results, levels of activity,
performance or achievements to differ materially from any future results,
levels of activity, performance or achievements expressed or implied by these
forward-looking statements.

These risks and other factors include: cost cutting and efficiency
initiatives, budget reductions, Congressionally mandated automatic spending
cuts, and other efforts to reduce U.S. government spending, including
automatic sequestration required by the Budget Control Act of 2011 (as amended
by the American Taxpayer Relief Act of 2012 and Consolidated Appropriations
Act of 2014), which have reduced and delayed contract awards and funding for
orders for services especially in the current political environment or
otherwise negatively affect our ability to generate revenue under contract
awards, including as a result of reduced staffing and hours of operation at
U.S. government clients; delayed funding of our contracts due to uncertainty
relating to and a possible failure of Congressional efforts to craft a
long-term agreement on the U.S. government’s ability to incur indebtedness in
excess of its current limits, or changes in the pattern or timing of
government funding and spending (including those resulting from or related to
cuts associated with sequestration or other budgetary cuts made in lieu of
sequestration); current and continued uncertainty around the timing, extent,
nature, and effect of Congressional and other U.S. government action to
address budgetary constraints, including, but not limited to, uncertainty
around the outcome of Congressional efforts to craft a long-term agreement on
the U.S. government’s ability to incur indebtedness in excess of its current
limits, and the U.S. deficit any issue that compromises our relationships with
the U.S. government or damages our professional reputation, including negative
publicity concerning government contractors in general or us in particular;
changes in U.S. government spending, including a continuation of efforts by
the U.S. government to decrease spending for management support service
contracts, and mission priorities that shift expenditures away from agencies
or programs that we support; the size of our addressable markets and the
amount of U.S. government spending on private contractors; failure to comply
with numerous laws and regulations; our ability to compete effectively in the
competitive bidding process and delays or losses of contract awards caused by
competitors' protests of major contract awards received by us; the loss of
General Services Administration Multiple Award schedule contracts, or GSA
schedules, or our position as prime contractor on government-wide acquisition
contract vehicles, or GWACs; changes in the mix of our contracts and our
ability to accurately estimate or otherwise recover expenses, time, and
resources for our contracts; our ability to generate revenue under certain of
our contracts; our ability to realize the full value of and replenish our
backlog and the timing of our receipt of revenue under contracts included in
backlog; changes in estimates used in recognizing revenue; an inability to
attract, train, or retain employees with the requisite skills, experience, and
security clearances; an inability to hire, assimilate, and deploy enough
employees to serve our clients under existing contracts; an inability to
timely and effectively utilize our employees; failure by us or our employees
to obtain and maintain necessary security clearances; the loss of members of
senior management or failure to develop new leaders; misconduct or other
improper activities from our employees or subcontractors, including the
improper use or release of our clients' sensitive or classified information;
increased insourcing by various U.S. government agencies due to changes in the
definition of “inherently governmental” work, including proposals to limit
contractor access to sensitive or classified information and work assignments;
increased competition from other companies in our industry; failure to
maintain strong relationships with other contractors; inherent uncertainties
and potential adverse developments in legal or regulatory proceedings,
including litigation, audits, reviews, and investigations, which may result in
materially adverse judgments, settlements, withheld payments, penalties, or
other unfavorable outcomes including debarment, as well as disputes over the
availability of insurance or indemnification; continued efforts to change how
the U.S. government reimburses compensation related and other expenses or
otherwise limit such reimbursements, including recent rules that expand the
scope of existing reimbursement limitations, such as a reduction in allowable
annual employee compensation to certain contractors as a result of the
Bipartisan Budget Act of 2013, and an increased risk of compensation being
deemed unallowable or payments being withheld as a result of U.S. government
audit, review or investigation; internal system or service failures and
security breaches, including, but not limited to, those resulting from
external cyber attacks on our network and internal systems; risks related to
changes to our operating structure, capabilities, or strategy intended to
address client needs, grow our business or respond to market developments;
risks associated with new relationships, clients, capabilities, and service
offerings in our U.S. and international businesses; failure to comply with
special U.S. government laws and regulations relating to our international
operations; risks related to our indebtedness and credit facilities which
contain financial and operating covenants; the adoption by the U.S. government
of new laws, rules, and regulations, such as those relating to organizational
conflicts of interest issues or limits; risks related to completed and future
acquisitions, including our ability to realize the expected benefits from such
acquisitions; an inability to utilize existing or future tax benefits,
including those related to our stock-based compensation expense, for any
reason, including a change in law; and variable purchasing patterns under U.S.
government GSA schedules, blanket purchase agreements and indefinite delivery,
indefinite quantity contracts. Additional information concerning these and
other factors can be found in our filings with the Securities and Exchange
Commission (SEC), including our Annual Report on Form 10-K, filed with the SEC
on May 22, 2014.

All forward-looking statements attributable to us or persons acting on our
behalf are expressly qualified in their entirety by the foregoing cautionary
statements. All such statements speak only as of the date made and, except as
required by law, we undertake no obligation to update or revise publicly any
forward-looking statements, whether as a result of new information, future
events or otherwise.

Exhibit 1
Booz Allen Hamilton Holding Corporation
Condensed Consolidated Statements of Operations
                                              
                                              Three Months Ended

                                              June 30,
(Amounts in thousands, except per share data) 2014           2013
                                              (Unaudited)
Revenue                                       $ 1,322,297     $ 1,427,691
Operating costs and expenses:
Cost of revenue                               645,001         701,472
Billable expenses                             350,972         397,888
General and administrative expenses           171,069         171,328
Depreciation and amortization                 16,232         18,330      
Total operating costs and expenses            1,183,274      1,289,018   
Operating income                              139,023         138,673
Interest expense                              (18,864     )   (20,712     )
Other, net                                    (1,110      )   54          
Income before income taxes                    119,049         118,015
Income tax expense                            47,934         47,702      
Net income                                    $ 71,115       $ 70,313    
Earnings per common share:
Basic                                         $ 0.49         $ 0.51      
Diluted                                       $ 0.47         $ 0.48      
Dividends declared per share                  $ 0.11         $ 0.10      

Exhibit 2
Booz Allen Hamilton Holding Corporation
Condensed Consolidated Balance Sheets
                                                               
                                                 June 30,        March 31,
(Amounts in thousands, except share and per      2014            2014
share data)
                                                 (Unaudited)
                                                                             
Assets
Current assets:
Cash and cash equivalents                        $ 319,448       $ 259,994
Accounts receivable, net of allowance            897,542         916,737
Prepaid expenses and other current assets        83,763         79,246      
Total current assets                             1,300,753       1,255,977
Property and equipment, net of accumulated       117,930         129,427
depreciation
Intangible assets, net of accumulated            218,461         220,887
amortization
Goodwill                                         1,273,560       1,273,789
Other long-term assets                           52,709         60,738      
Total assets                                     $ 2,963,413    $ 2,940,818 
Liabilities and stockholders' equity
Current liabilities:
Current portion of long-term debt                $ 41,500        $ 73,688
Accounts payable and other accrued expenses      478,363         488,807
Accrued compensation and benefits                280,610         331,440
Other current liabilities                        55,496         23,169      
Total current liabilities                        855,969         917,104
Long-term debt, net of current portion           1,613,645       1,585,231
Other long-term liabilities                      263,950        266,847     
Total liabilities                                2,733,564       2,769,182
Stockholders’ equity:
Common stock, Class A — $0.01 par value —
authorized, 600,000,000 shares; issued,
145,392,320 shares at June 30, 2014 and          1,454           1,440
143,962,073 shares at March 31, 2014;
outstanding, 144,564,873 shares at June 30, 2014
and 143,352,448 shares at March 31, 2014
Non-voting common stock, Class B — $0.01 par
value — authorized, 16,000,000 shares; issued    5               6
and outstanding, 525,370 shares at June 30, 2014
and 582,080 shares at March 31, 2014
Restricted common stock, Class C — $0.01 par
value — authorized, 5,000,000 shares; issued and 9               9
outstanding, 914,101 shares at June 30, 2014 and
935,871 shares at March 31, 2014
Special voting common stock, Class E — $0.003
par value — authorized, 25,000,000 shares;       13              13
issued and outstanding, 4,419,184 shares at June
30, 2014 and 4,424,814 shares at March 31, 2014
Treasury stock, at cost — 827,447 shares at June (14,785     )   (10,153     )
30, 2014 and 609,625 shares at March 31, 2014
Additional paid-in capital                       151,949         144,269
Retained earnings                                97,755          42,688
Accumulated other comprehensive loss             (6,551      )   (6,636      )
Total stockholders’ equity                       229,849        171,636     
Total liabilities and stockholders’ equity       $ 2,963,413    $ 2,940,818 

Exhibit 3
Booz Allen Hamilton Holding Corporation
Condensed Consolidated Statements of Cash Flows
                                                     
                                                     Three Months Ended
                                                     June 30,
(Amounts in thousands)                               2014         2013
                                                     (Unaudited)
Cash flows from operating activities
Net income                                           $ 71,115      $ 70,313
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization                        16,232        18,330
Stock-based compensation expense                     6,062         5,146
Excess tax benefits from the exercise of stock       (1,658    )   (961      )
options
Amortization of debt issuance costs and loss on      5,381         2,084
extinguishment
Losses on dispositions and impairments               345           585
Changes in assets and liabilities:
Accounts receivable                                  19,195        34,032
Prepaid expenses and other current assets            (4,519    )   (4,930    )
Other long-term assets                               7,484         (2,041    )
Accrued compensation and benefits                    (48,869   )   (72,400   )
Accounts payable and other accrued expenses          (16,378   )   26,632
Accrued interest                                     7,945         2,012
Other current liabilities                            31,974        552
Other long-term liabilities                          (2,583    )   (5,507    )
Net cash provided by operating activities            91,726       73,847    
                                                                             
Cash flows from investing activities
Purchases of property and equipment                  (2,652    )   (2,430    )
Net cash used in investing activities                (2,652    )   (2,430    )
                                                                             
Cash flows from financing activities
Net proceeds from issuance of common stock           1,276         1,285
Stock option exercises                               1,208         3,235
Excess tax benefits from the exercise of stock       1,658         961
options
Repurchases of common stock                          (4,632    )   (2,520    )
Cash dividends paid                                  (16,048   )   (13,915   )
Dividend equivalents paid to option holders          (4,472    )   (13,864   )
Debt issuance costs                                  (8,610    )   —
Repayment of debt                                    (168,438  )   (11,624   )
Proceeds from debt issuance                          168,438      —         
Net cash used in financing activities                (29,620   )   (36,442   )
Net increase in cash and cash equivalents            59,454        34,975
Cash and cash equivalents — beginning of period      259,994      350,384   
Cash and cash equivalents — end of period            $ 319,448    $ 385,359 
Supplemental disclosures of cash flow information
Cash paid during the period for:
Interest                                             $ 8,736      $ 16,604  
Income taxes                                         $ 3,438      $ 40,103  

Exhibit 4
Booz Allen Hamilton Holding Corporation
Non-GAAP Financial Information
                                                 
                                                 Three Months Ended
                                                 June 30,
(Amounts in thousands, except share and per      2014           2013
share data)
                                                 (Unaudited)
Adjusted Operating Income
Operating Income                                 $  139,023      $  138,673
Certain stock-based compensation expense (a)     —               1,094
Amortization of intangible assets (b)            1,056           2,113
Transaction expenses (c)                         2,039          —           
Adjusted Operating Income                        $  142,118     $  141,880  
EBITDA & Adjusted EBITDA
Net income                                       $  71,115       $  70,313
Income tax expense                               47,934          47,702
Interest and other, net                          19,974          20,658
Depreciation and amortization                    16,232         18,330      
EBITDA                                           155,255         157,003
Certain stock-based compensation expense (a)     —               1,094
Transaction expenses (c)                         2,039          —           
Adjusted EBITDA                                  $  157,294     $  158,097  
Adjusted Net Income
Net income                                       $  71,115       $  70,313
Certain stock-based compensation expense (a)     —               1,094
Amortization of intangible assets (b)            1,056           2,113
Transaction expenses (c)                         2,039           —
Amortization or write-off of debt issuance costs 2,660           1,650
and write-off of original issue discount
Adjustments for tax effect (d)                   (2,302      )   (1,943      )
Adjusted Net Income                              $  74,568      $  73,227   
Adjusted Diluted Earnings Per Share
Weighted-average number of diluted shares        149,627,168    147,237,749 
outstanding
Adjusted Net Income Per Diluted Share (e)        $  0.50        $  0.50     
Free Cash Flow
Net cash provided by operating activities        $  91,726       $  73,847
Less: Purchases of property and equipment        (2,652      )   (2,430      )
Free Cash Flow                                   $  89,074      $  71,417   

      Reflects stock-based compensation expense for options for Class A Common
      Stock and restricted shares, in each case, issued in connection with the
      Acquisition of our Company by The Carlyle Group (the Acquisition) under
(a)  the Officers' Rollover Stock Plan. Also reflects stock-based
      compensation expense for Equity Incentive Plan Class A Common Stock
      options issued in connection with the Acquisition under the Equity
      Incentive Plan.
(b)   Reflects amortization of intangible assets resulting from the
      Acquisition.
(c)   Reflects debt refinancing costs incurred in connection with the
      refinancing transaction consummated on May 7, 2014.
(d)   Reflects tax effect of adjustments at an assumed marginal tax rate of
      40%.
      Excludes an adjustment of approximately $823,000 and $299,000 of net
(e)   earnings for the three months ended June 30, 2014 and 2013 respectively,
      associated with the application of the two-class method for computing
      diluted earnings per share.

Exhibit 5
Booz Allen Hamilton Holding Corporation
Operating Data

                      As of
                      June 30,
(Amounts in millions) 2014       2013
Backlog
Funded                $ 2,347     $ 2,192
Unfunded (1)          2,569       2,584
Priced Options (2)    4,766      6,080
Total Backlog         $ 9,682    $ 10,856

      Reflects a reduction by management to the revenue value of orders for
(1)  services under one existing single award ID/IQ contract the Company has
      had for several years, based on an established pattern of funding under
      these contracts by the U.S. government.
(2)   Amounts shown reflect 100% of the undiscounted revenue value of all
      priced options.

               Three Months Ended
               June 30,
               2014       2013
Book-to-Bill * 0.88        0.52

  Book-to-bill is calculated as the change in total backlog during the
* relevant fiscal quarter plus the relevant fiscal quarter revenue, all
  divided by the relevant fiscal quarter revenue.

                            As of
                             June 30,
                             2014    2013
Headcount
Total Headcount              22,127   23,395
Consulting Staff Headcount   20,076   21,141

                                             Three Months Ended
                                             June 30,
                                             2014      2013 
Percentage of Total Revenue by Contract Type
Cost-Reimbursable (3)                        56    %     56   %
Time-and-Materials                           26    %     30   %
Fixed-Price (4)                              18    %     14   %

(3)  Includes both cost-plus-fixed-fee and cost-plus-award fee contracts.
(4)   Includes fixed-price level of effort contracts.

                          Three Months Ended
                          June 30,
                          2014       2013
Days Sales Outstanding ** 63          65

** Calculated as total accounts receivable divided by revenue per day during
   the relevant fiscal quarter.

Contact:

Booz Allen Hamilton Holding Corporation
Media Relations – James Fisher 703-377-7595
Investor Relations – Curt Riggle 703-377-5332
 
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