Vangent Design with vision. Build with confidence. Operate for results.
>> home: media & events: press releases
  Press Release  
 

Contact: Eileen Rivera
Vice President Communications
703.284.5674

VANGENT, INC. ANNOUNCES FULL RESULTS FOR YEAR ENDED DECEMBER 31, 2006

Arlington, VA , June 4, 2007 - Vangent, Inc. today announced full results for the year ended December 31, 2006. Vangent reported revenue of $520.9 million for its fiscal year ended December 31, 2006, compared to fiscal 2005 revenues of $524.4 million. EBITDA for the fiscal year 2006 increased by 15.8% to $63.8 million, compared to $55.5 million in 2005. Vangent also reported adjusted EBITDA of $70.5 million, compared to fiscal 2005 adjusted EBITDA of $58.6 million, an increase of 20.3%.

“2006 was an exciting year for Vangent,” stated Mac Curtis, President and Chief Executive Officer of Vangent, Inc. “By fully leveraging our business strengths, we continue to successfully execute our strategy of focusing on high growth segments within the federal IT and BPO markets. As a result, we’ve further strengthened our position as a leading provider of information management and business process outsourcing services,” added Curtis.

Revenue
Vangent’s revenue for fiscal year 2006 was $520.9 million compared to $524.4 million in 2005. Revenue declined by $3.7 million due to the completion of a one-time contract with the Social Security Administration in 2005, the completion of a contract with the Department of Homeland Security in 2006 and lower revenue under our contracts with the Department of Health and Human Services (HHS). There was significant growth from increased volume related to prescription drug enrollment, contract expansion and various new contracts to offset these decreases.

Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)
EBITDA for the fiscal year 2006 increased by 15.8% from fiscal year 2005 to fiscal year 2006. Reported results totaled $63.8 million for fiscal year 2006, compared to $55.5 million in 2005, largely due to increased contract profitability, and partially offset by one time audit fees associated with preparation of the carve out financial statements for Vangent, and a loss on disposal of fixed assets.

Adjusted EBITDA
Adjusted EBITDA increased by 20.3% to $70.5 million, compared to fiscal 2005 adjusted EBITDA of $58.6 million. Adjusted EBITDA is adjusted to (1) exclude legal expenses payable by Pearson in connection with an investigation into a contract awarded to NCS Pearson, Inc by the Transportation Security Administration (TSA) in 2002 and all potential reserves related to the potential settlement of such claim, (2) eliminate certain costs resulting from our separation from Pearson plc net of incremental overhead and infrastructure costs, and (3) reflect the results of Blueprint Technologies, Inc. for a full 12-month period, which Vangent acquired in April 2006.

Net Income
Vangent posted net income of $28.6 million for fiscal year 2006, a 12.9% increase over fiscal year 2005.

Conference Call
Vangent’s 2006 earnings conference call will take place on Monday, June 4, 2007 at 11:00 a.m. eastern time. The call will discuss 2006 results. Interested parties may call (866) 523-5187 (U.S. and Canada) and request the “Vangent 2006 Earnings Conference Call,” conference ID # 1384356. Interested parties calling outside of the U.S. and Canada may dial (706) 634-0915 with the same conference ID #.

A replay of the earnings call can be heard after 5 p.m. on June 4, 2007 until June 15, 2007. To hear the replay, dial (800) 642-1687 and enter the conference ID #1384356. For interested parties outside the U.S. and Canada, dial (706) 645-9291 and enter the same conference ID#.

About Vangent, Inc.
With over 5,500 employees worldwide, Vangent, Inc., formerly Pearson Government Solutions, is a global provider of Consulting, Systems Integration, Human Capital Management and Business Process Outsourcing services to the U.S. federal and international governments, higher education institutions and corporations. Pearson Government Solutions was acquired by Veritas Capital on February 14, 2007 and changed its name to Vangent, Inc. Clients include the Centers for Medicare & Medicaid Services, the U.S. Departments of Education, Health and Human Services, Justice and Labor; the Equal Employment Opportunity Commission and the U.S. Office of Personnel Management, as well as Fortune 500 companies.

Headquartered in Arlington, Virginia, the company has offices throughout the U.S. and in the U.K., Canada, Mexico, Venezuela and Argentina.

Forward-Looking Statements

This press release contains forward-looking statements. Forward-looking statements are those that do not relate solely to historical fact. They include, but are not limited to, any statement that may predict, forecast, indicate or imply future results, performance, achievements or events. Words such as, but not limited to, "believe," "expect," "anticipate," "estimate," "intend," "plan," "targets," "projects," "likely," "will," "would," "could" and similar expressions or phrases identify forward-looking statements. All forward-looking statements involve risks and uncertainties. The occurrence of the events described, and the achievement of the expected results, depend on many events, some or all of which are not predictable or within our control. In light of these risks and uncertainties, expected results or other anticipated events or circumstances discussed in this press release might not occur. We undertake no obligation, and specifically decline any obligation, to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Pearson Government Solutions Business - Statements of Operations

Pearson Government Solutions Business - Balance Sheets

Pearson Government Solutions Business - Statements of Cash Flows


Vangent, Inc.
4250 North Fairfax Drive, Suite 1200
Arlington, VA 22203
Phone: (703) 284-5600
FAX: (703) 284-5628

 
 


 


Next Steps:
>> Explore Capabilities
>> Request Information

 

 
 
 
 
 
complex challenges. balanced solutions.