GuruFocus Premium Membership

Serving Intelligent Investors since 2004. Only 96 cents a day.

Free Trial

Free 7-day Trial
All Articles and Columns »

NCI Inc. Reports Operating Results (10-Q)

November 05, 2009 | About:
10qk

10qk

18 followers
NCI Inc. (NCIT) filed Quarterly Report for the period ended 2009-09-30.

NCI Inc. is a leading provider of information technology services and solutions to U.S. federal government agencies. NCI's award-winning expertise encompasses areas critical to its customers' mission objectives including enterprise systems management information assurance network engineering and systems development and integration. Nci Inc. has a market cap of $383 million; its shares were traded at around $28.54 with a P/E ratio of 20.5 and P/S ratio of 1.

Highlight of Business Operations:

Amortization of intangible assets was approximately $0.6 million and $0.5 million for the quarters ended September 30, 2009, and 2008, respectively. The increase is due to the amortization of intangible assets over their estimated lives from our acquisitions.

Net interest expense was approximately $0.1 million for the quarter ended September 30, 2009, as compared to $0.5 million for the same period in the prior year. The change is primarily due to lower interest rates, as well as using available cash to reduce our outstanding debt. During the third quarter of 2009, we had an average outstanding loan balance of $35.5 million which accrued interest at approximately 1.3%. During the third quarter of 2008, we had an average outstanding loan balance of $50.1 million which accrued interest at approximately 3.5%.

Depreciation and amortization expense was approximately $1.6 million and $1.4 million for the nine months ended September 30, 2009, and 2008, respectively. The increase in depreciation and amortization is due primarily to the additional assets from overall corporate growth.

Amortization of intangible assets was approximately $1.5 million for the nine months ended September 30, 2009, and $1.3 million for the same period during 2008. The increase is due to the amortization of intangible assets over their estimated lives from our acquisitions.

Net interest expense was approximately $0.5 million for the nine months ended September 30, 2009, as compared to $1.6 million for the same period in the prior year. The change is primarily due to lower interest rates, as well as using available cash to reduce our outstanding debt. During the first nine months of 2009, we had an average outstanding loan balance of $34.3 million which accrued interest at approximately 1.3%. During the first nine months of 2008, we had an average outstanding loan balance of $50.2 million which accrued interest at approximately 3.5%.

At September 30, 2009, and December 31, 2008, our estimated backlog was $1,259 million and $1,189 million, respectively, of which $267 million and $234 million, respectively, was funded. We define backlog as our estimate of the remaining future revenue from existing signed contracts over the remaining base contract performance period and from the option periods of those contracts, assuming the exercise of all related options. We define funded backlog as the portion of backlog for which funding currently is appropriated and obligated to us under a contract or other authorization for payment signed by an authorized purchasing agency, less the amount of revenue we have previously recognized. Our backlog does not include any estimate of future potential delivery orders that might be awarded under our GWAC or other multiple award contract vehicles. Additional information on how we determine backlog is included in our Annual Report on Form 10-K for the year ended December 31, 2008, filed with the SEC.

Read the The complete Report

About the author:

10qk
GuruFocus - Stock Picks and Market Insight of Gurus

Rating: 4.0/5 (1 vote)

Comments

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Email Hide