Science Applications International Corporation (SAIC) has announced results for the third quarter ended October 30, 2020, the company reported on Friday. SAIC has estimated that the third quarter program impact from the COVID-19 pandemic to be approximately $60 million of revenue and $9 million of adjusted EBITDA.
The impacts were driven by reduced volume in SAIC’s supply chain business, lower FAA training service revenues,and uncertain profit recovery on ready-state labor. Since the onset of the COVID-19 pandemic, SAIC has operated as an essential business, continuing to operate in a resilient market and business model.
“SAIC’s third quarter results reflect strong financial performance and momentum with the second straight quarter of highest book-to-bill and backlog in our seven-year history," said SAIC CEO and 2020 Wash100 Award recipient, Nazzic Keene.
SAIC’s revenues for the quarter increased $188 million, compared to the prior year quarter due to the acquisition of Unisys Federal, revenue on new contracts primarily supporting the U.S. Air Force and increased volume on existing programs.
The company’s operating income as a percentage of revenues of 6.1 percent, increased from 5.8 percent in the comparable prior year period due to the acquisition of Unisys Federal, lower acquisition and integration costs and lower indirect costs.
SAIC’s net income attributable to common stockholders for the quarter increased $5 million as compared to the same period in the prior year primarily due to increased operating income, partially offset by higher interest expense. Adjusted EBITDA as a percentage of revenues for the quarter increased to 9.0 percent of revenues from 8.3 percent of revenues in the prior year quarter driven by the acquisition of Unisys Federal and lower indirect costs.
Diluted earnings per share for the quarter was $1.02 compared to $0.94 in the prior year quarter. Adjusted diluted earnings per share(1) for the quarter was $1.62 compared to $1.39 in the prior year quarter. The weighted-average diluted shares outstanding during the quarter increased to 58.7 million from 58.3 million during the prior year quarter.
"We have also taken strategic, organizational, and leadership steps recently that are foundational to the long-term success of SAIC. We are making great progress in the execution of our strategy and are moving forward,” Keene added.