MCLEAN, Va.--(BUSINESS WIRE)--Delta Tucker Holdings, Inc., the parent of DynCorp International Inc., a leading global services provider, today reported second quarter 2018 financial results.

Second quarter 2018 revenue was $550.4 million, up 16.0% compared to $474.3 million recorded in the second quarter of 2017. The increase was primarily due to increased scope on the Logistics Civil Augmentation Program IV ("LOGCAP IV") program and the CLS Transport, Naval Test Wing Pacific O-Level Maintenance ("Naval Test Wing Pacific") and the G4 Worldwide Logistics Support contracts. The increase in revenue was partially offset by lower volume on the Bureau for International Narcotics and Law Enforcement Affairs, Office of Aviation ("INL Air Wing") program. Net income attributable to Holdings for the second quarter of 2018 was $24.8 million compared to $5.7 million in the second quarter of 2017. The Company reported Adjusted EBITDA of $48.9 million for the second quarter of 2018 compared to $39.3 million for the same period in 2017.

“The Company continues to deliver consistent top line growth and margin expansion in the second quarter driven by disciplined execution of our contracts and rigorous cost control,” said George Krivo, Chief Executive Officer. “We are very encouraged by the Company’s performance through the first half of the year and remain optimistic about the opportunities looking forward.”

Second Quarter Highlights and Other Recent Developments

• In April 2018, DynLogistics announced a task order modification for expanded work to continue providing base life support and maintenance services in Afghanistan under the LOGCAP IV contract. The contract modification has a total potential value of $24.4 million.
• In June 2018, DynLogistics announced the award of a twelve-month task order contract extension to continue providing base life support and maintenance services in Afghanistan under the LOGCAP IV contract. The contract extension has a total potential value of $258.3 million.
• In June 2018, DynLogistics announced the award of the Facilities Engineering Support Services task order under the Afghanistan Life Support Services ("ALiSS") contract. The task order has a one-year base period and four one-year option periods and a total potential task order value of $28.1 million.
• In June 2018, DynLogistics announced the task order award under the Air Force Augmentation Program ("AFCAP IV") to provide dining facility services for the Al Dhafra Air Base in the UAE. The task order has a two-month mobility period, a ten-month base period and two one-year option periods and a total potential task order value of $11.5 million.
• In July 2018, DynLogistics announced a contract modification to support material management and logistics services for the USACE South Atlantic Division, Task Force Power Restoration in Puerto Rico on the Northcom task order under the LOGCAP IV contract. The contract modification has a total potential value of $24.6 million.

Reportable Segment Results

DynAviation

Revenue in the second quarter of 2018 was $297.5 million, up 2.5% compared with $290.3 million recorded in the same period in 2017 primarily due to the new CLS Transport and Naval Test Wing Pacific contracts and the Contractor Logistics Support T-34, T-44, T-6 program ("CLS T34/44/6"). The increase in revenue was partially offset by decreased content on the INL Air Wing contract and the completion of certain contracts.

Adjusted EBITDA was $25.0 million, compared to $21.7 million for the second quarter of 2017. The increase is primarily due to the timing of an incentive award fee on the CLS T34/44/6 contract and more favorable terms on the T-6 COMBS contract. These increases were partially offset by decreased content on the INL Air Wing program.

DynLogistics

Revenue in the second quarter of 2018 was $251.2 million, up 36.8% compared with $183.6 million recorded in the same period in 2017. The increase was primarily due to increased scope on both the LOGCAP IV program and ALiSS contract and the G4 Worldwide Logistics Support contract, partially offset by the completion of the Philippines Operations Support ("POS") contract.

Adjusted EBITDA was $29.2 million, compared to $22.8 million for the second quarter of 2017. The increase was primarily due to higher volume as described above, and productivity and margin expansion across several contracts.

Liquidity

Cash provided by operating activities at the end of the second quarter of 2018 was $105.8 million compared to cash used in operating activities of $0.3 million for the same period in 2017.

The unrestricted cash balance at quarter-end was $218.9 million with no borrowings outstanding under the Company’s revolving credit facility.

DSO was 41 and 54 days as of the end of the second quarter of 2018 and December 31, 2017, respectively, as the Company continued to focus on managing its customer payment cycles and due to the impact of a $45.1 million advance payment from a customer during the second quarter.

Bill Kansky, Chief Financial Officer, added, “The Company is performing quite well and our free cash flow generation through the second quarter of 2018 of $99.6 million puts us well ahead of plan.”

About DynCorp International

DynCorp International, a wholly owned subsidiary of Delta Tucker Holdings, Inc., is a leading global services provider offering unique, tailored solutions for an ever-changing world. Built on seven decades of experience as a trusted partner to commercial, government and military customers, DI provides sophisticated aviation, logistics, training, intelligence and operational solutions wherever we are needed. DynCorp International is headquartered in McLean, Va. For more information, visit www.dyn-intl.com.