NCI, Inc. (NASDAQ:NCIT) Q4 2014 Earnings Conference Call - Final Transcript
Feb 11, 2015 • 04:30 pm ET
Good day, ladies and gentlemen. Welcome to the NCI Incorporated Fourth Quarter 2014 Financial Results Conference Call. My name is Melanie and I will be your conference operator today. This call is being recorded. I would now like to turn the presentation over to your host for today's call, Joelle Shreves, Director of Marketing and Corporate Communications. Please go ahead.
Good evening and thank you for participating in NCI's conference call today. By now you should have a copy of the press release we issued a short time ago. If not, it is available on our website at www.nciinc.com. With us are Brian Clark, our President; and Lucas Narel, our Chief Financial Officer, both of whom will deliver prepared remarks. Our Chief Operating Officer, Marco de Vito; and Investor Relations Counsel, Larry Delaney are also here to participate on the Q&A portion of the call. (Forward-Looking Cautonary Statements)
Moving to bookings, fourth quarter net bookings totaled approximately $50 million, a 0.7 times revenue. Net bookings for the year were approximately $238 million equating to 0.8 times revenue, which did not include the protested $52 million new business award we mentioned last quarter. Lucas will now provide details on our fourth quarter and full year 2014 financial performance and provide guidance for the first quarter and full fiscal 2015. I'll then come back online to give more color on our guidance as well as expand on the status of potential awards on our pipeline and our anticipated proposal activity in 2015. Lucas?
For the fourth quarter of 2014, NCI's revenue decreased by 6.8% to $74.4 million. The year-over-year decrease in revenue was primarily result of lower revenues generated from NCI's PEO Soldier and NETCOM programs. Partially offset by revenues under new contracts award in 2014, contract extensions and plus-ups through existing contracts. During the fourth quarter of 2014, PEO Soldier contract accounted for $7.6 million or 10.2% of total revenue compared with $10.7 million or 13.4% in the fourth quarter of 2013. For fiscal year 2014, revenue was $317 million, compared with $332.3 million for fiscal year 2013 representing a decrease of $15.3 million, or 4.6%.
This decrease in revenue was primarily due to the lower year-over-year revenue from our PEO Soldier program, the expiration of task orders and contracts; reductions in scope of work; and certain lost contract recompetes. This decrease was partially offset by revenues under new contracts and plus-ups to existing contracts. NCI's PEO Soldier contract accounted for $36.3 million or 11.5% of revenue in 2014, as compared to $46 million or 13.9% of revenue in 2013.Contracts for NCI as a prime contractor accounted for 92% of revenue for the quarter, unchanged sequentially and unchanged from the fourth quarter of last year.
DoD and Intel contracts made up 73% of total revenues in the fourth quarter of 2014, while Federal Civilian contracts comprised 27%. The Federal Civilian share was unchanged sequentially and up by 2 percentage points year-over-year.Fixed price contracts accounted for 36% of revenue, up 3 percentage point