NCI, Inc. Reports Record Fourth Quarter and Year End 2010 Financial Results

NCI, Inc. NCIT, a leading provider of information technology (IT), engineering, logistics, and professional services and solutions to U.S. federal government agencies, announced today results for the fourth quarter and year ended December 31, 2010. The table below is a summary of our financial results: Reported Results For the fourth quarter of 2010, NCI reported record revenue of $171 million compared to $125 million for the fourth quarter of 2009, with a revenue growth rate of approximately 37%. Operating income for the fourth quarter of 2010 was $11.8 million, compared to $11.5 million for the fourth quarter of 2009. Operating margin of 6.9% for the fourth quarter of 2010 compared with an operating margin of 9.2% for the same period in 2009. Net income for the fourth quarter of 2010 was $6.9 million, compared to $6.7 million for the same period in 2009. However, the fourth quarter and full year 2009 results contained a one-time gain of $2.3 million related to the resolution of the contingent liability associated with the earn-out from the acquisition of TRS Consulting completed in the third quarter of 2009. Excluding this gain only, our fourth quarter 2009 adjusted operating margin was 7.4%. Diluted earnings per share were $0.50 per share for the fourth quarter of 2010 compared to $0.49 per share for the fourth quarter of 2009. The effective tax rate for the fourth quarter of 2010 and 2009 was 40.7%. Diluted shares outstanding for the fourth quarter of 2010 were 13.9 million shares compared to 13.8 million shares for the fourth quarter of 2009. For the full year of 2010, NCI reported revenue of $581 million compared to $469 million for 2009 with an organic revenue growth rate of approximately 22%. We define our organic revenue growth rate as the increase in revenue, from period to period, excluding the effect of acquisitions. Operating income for 2010 was $39.8 million, or an operating margin of 6.8%, compared to $37.6 million, or an operating margin of 8.0%, for 2009. The full year 2009 results contained a one-time gain of $2.3 million related to the resolution of the contingent liability associated with the earn-out from the acquisition of TRS Consulting completed in the third quarter of 2009. Excluding this gain only, our full year 2009 adjusted operating margin was 7.5%. Net income for 2010 was $23.9 million, compared to $22.2 million in 2009. Diluted earnings per share for 2010 were $1.72 per share, compared to $1.61 per share for 2009. Diluted shares outstanding for 2010 were 13.9 million and 2009 were 13.8 million.