science applications inte (SAIC) Key Developments
Science Applications International Corp. Wins $425 Million Controller Training Contract by The Federal Aviation Administration
May 4 15
The Federal Aviation Administration awarded Science Applications International Corp. an indefinite delivery, indefinite quantity contract to provide all training and training program support services under the FAA Controller Training Contract (CTC). The single-award, firm-fixed-price and time and materials contract has a three-year period of performance, two one-year options, and the current total estimated contract value is $425 million, with a maximum contract ceiling of $727 million. Work will be performed mainly in Oklahoma City, Washington, D.C., and air traffic control sites nationwide. During the next five years, the FAA expects to hire as many as 6,000 new air traffic controllers to replace a retiring workforce. Under the contract, SAIC will provide support services to the FAA Academy and Air Traffic Control (ATC) Facilities to help FAA fulfill controller training requirements. These services include program management support; classroom training; simulation and laboratory training; monitoring of student progress; training development, maintenance and revision; air traffic training program support; administrative support; and innovation support.
Science Applications International Corp Receives Contract from Toyota Motor North America
Apr 20 15
Toyota Motor North America awarded Science Applications International Corp. (SAIC) a contract to provide ongoing information systems (IS) end-user support services. The firm-fixed-price contract has a five-year period of performance and an estimated total contract value of $54 million. SAIC will provide support services to Toyota sales and manufacturing affiliates located in California, Kentucky, and Texas. Under the contract, SAIC will provide IS services to help manage: Toyota's end user and dealer service desks; access administration; and messaging and collaboration. SAIC will also provide Deskside support for end user computing at Toyota's HQ campuses in Torrance, CA and Plano, TX, as well as parts centers in California and Kentucky. SAIC will assist Toyota with transitioning IS operations while it consolidates its North American affiliates and headquarters into one location in Plano, Texas.
Science Applications International Corporation Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Year Ended January 31, 2015; Declares Quarterly Cash Dividend, Payable on April 30, 2015
Mar 31 15
Science Applications International Corporation reported unaudited consolidated earnings results for the fourth quarter and year ended January 31, 2015. For the quarter, the company has posted total revenues of $952 million against $941 million a year ago. These increases offset lower revenues caused by the continued impact of programs that ended in the prior year and lower activity on in-theater logistics programs. Operating income was $59 million against $56 million a year ago. The increase in operating income was primarily due to overall strong program execution resulting in net favorable changes in estimates on contracts. EBIT was $55 million against $52 million a year ago. Net income was $36 million or $0.75 diluted per share against $33 million or $0.66 diluted per share a year ago. The increase in net income was driven by consistent operating income and a current quarter decrease in income tax expense. Total cash flows provided by operating activities were $96 million against $125 million a year ago. Expenditures for property, plant and equipment was $7 million against $6 million a year ago.
For the year, the company has posted total revenue of $3,885 million against $4,121 million a year ago. These decreases were partially offset by revenues on newly awarded programs and increased material volume on supply chain contracts. Operating income was $240 million against $183 million a year ago. The increase was primarily due to the absence during the current year of separation transaction and restructuring expenses as well as strong current year program execution resulting in net favorable changes in estimates on contracts. EBIT was $223 million against $176 million a year ago. Net income was $141 million or $2.91 diluted per share against $113 million or $2.27 diluted per share a year ago. Net income increased due to the above described increase in operating income, partially offset by interest expense on debt obtained in September 2013 in conjunction with the spin-off transaction. Total cash flows provided by operating activities were $277 million against $183 million a year ago. Expenditures for property, plant and equipment was $22 million against $16 million a year ago.
The board of directors declared a regular quarterly cash dividend of $0.28 per share payable on April 30, 2015 to stockholders of record on April 15, 2015.
Science Applications International Corp. Wins Indefinite Delivery/Indefinite Quantity Contract from Defense Logistics Agency
Mar 26 15
Science Applications International Corp. has won an indefinite delivery/indefinite quantity contract from the Defense Logistics Agency, or DLA, to provide tailored logistics support, or TLS, for maintenance, repair and operations, or MRO, requirements at Department of Defense and other federal installations located in Arizona, Nevada, Southern California, and Utah. The single-award, firm-fixed-price contract has a five-year period of performance and an estimated total contract value of $165 million.
Science Applications International Corporation Announces Amended & Restated Credit Agreement
Mar 20 15
On March 17, 2015, Science Applications International Corporation entered into an Amended & Restated Credit Agreement, with Citibank, N.A., as agent, and certain other agents, lenders and other parties thereto. SAIC entered into the Amended Credit Agreement to amend and restate SAIC's initial credit facility in anticipation of the proposed acquisition of Scitor Holdings Inc. It is anticipated that, under an Agreement and Plan of Merger dated March 1, 2015, by and among SAIC, Scitor and certain other parties, SAIC will acquire Scitor through a merger of a newly formed SAIC subsidiary into Scitor, with Scitor as the surviving company in the Merger. The Amended Credit Agreement consists of: an unsecured revolving credit facility in an initial aggregate principal amount of up to $200 million and; an unsecured term facility with an initial aggregate principal amount of $500 million each maturing on September 27, 2018. The foregoing initial aggregate principal amounts remain unchanged from the Initial Credit Agreement. Furthermore, the interest rates under the Initial Credit Agreement remain unchanged under the Amended Credit Agreement. The Amended Credit Agreement, among other things, provides for and permits the Merger, the establishment of a senior secured term loan B" credit facility in an aggregate principal amount of up to $670 million, an option to increase the Term Loan A by $100 million prior to the effectiveness of the Term Loan B, and other amendments, including various amendments that will only become effective upon the effectiveness of the Term Loan B. Upon the closing of the Term Loan B, the Credit Facilities will become secured by liens on substantially all of the assets of SAIC and its subsidiaries.