BAH - Earnings call transcript Q1 2020 | Booz Allen Hamilton Holding Corporation

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Operator

Good morning. Thank you for standing by. And welcome to Booz Allen Hamilton's Earnings Call Covering First Quarter Results for Fiscal Year 2020. At this time, all participants are in a listen-only mode. Later there will be an opportunity for questions.

turn over to Mr. like now the to call I'd Nick Veasey.

Nick Veasey

you've morning Thank slide XXXX for hope earlier to this and presentation we joining on also on release Good the earnings an press read us We morning. quarter you now issued first our thank you. website X. that are opportunity Allen's for announcement. provided We've had slides Booz and

Investor results I'm our Relations Horacio Vice Nick of and about and financial President to Vice President President and business me our Officer. and and Officer Chief Lloyd are Executive with Rozanski, talk Executive Financial Veasey, Chief Howell,

may As shown therefore are considered to mind we future in the our forward-looking known on keep subject items differ and in risks results and cause the periods that disclaimer from will may discuss X, to will uncertainties materially be please some results. actual morning which of slide and that this unknown on statements forecasted include

among and economic uncertainties other risks things, for today's filings. XXXX our discussed Company's statements first services included forth the disclaimer, conditions, government SEC release of quarter forward-looking earnings other funding in under Those earnings the factors and and availability in in set our our and include, release fiscal general

obligation We no may to forward-looking place call. update make information caution you revise on that undue we this assume not or any statements today you that to reliance on we and discussed remind the

first our sic year investors. to we adjustments included also fiscal most of discuss non-GAAP - provide an we'll call, financial of for XXXX XXXX. in GAAP and measures the other metrics today's non-GAAP We reconciliations measures and our comparable believe During quarter measures other useful information some which explanation

CEO to call pleasure on my Horacio X. slide turn our the now and we is are Rozanski to over It

Horacio Rozanski

earnings of ago, we nine Thanks performance this Booz last everyone. aim to we year. morning On morning. fiscal Allen's outstanding good that share call set our another XXXX just and weeks performance pleased call. and Lloyd emulate joining that for strong Nick, highlighted you, quarterly fiscal year very I are the to Thank results this discussed and

in We year also takes XXXX, horizon. on financial ahead our thesis, increased a which year the X us our jumped through investment having goals time year essentially fiscal

we our in business affirmed our sum, In confidence forward. going

provided precisely we this on operational also guidance year We and more aggressive have to conservative a how to second execute first plan. clear relatively and fiscal we that plan today financial a aligns The reported half. performance with half

the would, on that we proof further ambitious front-loaded of our institution. an is we plan, The strength are said fact delivering of we exactly as

the market. are We differentiated in

We with are effectively managing cost are clients people across our excellence. and the business and dedication serving

and morning results drivers before I’ll budget our quarter’s on also will handing touch sustained run going our the forward. who through focus outlook of three the on over these Federal Lloyd, I’ll to momentum. This

know, our past begins have As our our the investment implementing the is years. you unique over in Vision differentiation we with created growth strategy position thesis XXXX This the six market. by

with technical of coupling and knowledge we helping their future. the expertise Clients operates capability, know as organizations, a meet the that us technology and and company transform mission. prepare today’s at are them By consulting challenges, intersection for mission today

that have for us demand. and rising be our gives relentless we capture growing we is to on Demand and strong positioned innovation built capabilities the well confidence focus will

years services in detailed by I revolution. and ongoing sustained will as come and the fact, the global believe our May, to we digital strategic for In be demand environment solutions for

exceptional our financial efficient shareholders across the differentiated the and management requires performance market for position Translating business. value into and execution strong

first on we results that firing Our front, quarter show are on cylinders. this all

capturing to team who clients commitment. growth organic work, on leaders performance. excellent our all Market broader attracting the delivering to to and with retaining efficiently passion We're contracts. Allen and translate continues talent, leading goes performance strong and of the for serving lots revenue bottom and are line Credit Booz

balance of with Booz remains management the margin that to and investors and and of high expect sheet standards generation capital In and business healthy EBITDA clients cash we strategic solid Adjusted very support Allen, frankly, continues from we’re the goals. that our short, ourselves. our running allocation demand

opportunities them we’re rests the The for what high draws a here. a people opportunity culture problems. people the caliber better in together and work on keeps place to to our Fundamentally, really the believe working a that their its of world and business. values expertise that tough people diverse work our on and passion is firm to provides make I

of hit a proud been, the to and ever the pleased was be milestone. end At numbers, we quarter many Allen first are with are Booz especially There it’s quarter professionals. major talented in our XX,XXX larger first have things than to of

celebrate work succeed. who the team across couldn't their missions, clients, and are both how that we I It's globe this more defines milestone. we and industries, across we proud of entire quarter-after-quarter as the be

but strong important, was year Getting the given always coming we X a it this budget a to year important is deal. off of that start to were particularly end

the year and administration deal. a are budget by the towards progress encouraged are We making Congress new X

in remains ensure funding the pleased a positive that While federal are to we is that things to agency XXth, appear September be direction. work approved much by moving

continue the our financial results we another can for that our increased execute As industry-leading leaders set our the it we Allen, have full for goals QX to confidence year. on our relates have and fiscal to achieve year Booz plan will ambitious

XXXX. our fiscal to centered also in deliver XXXX growth are from the earnings XX% thesis, goals on on We updated financial track in through share on year per investment year fiscal

over to me let our call at turn you financial look in-depth performance. more Lloyd, for a the

Lloyd Howell

us for joining morning. thanks Horacio. Thanks, the to on call everyone And this

half results of set stage the quarter XXXX. first fiscal for Our aggressive an have first year

continue performance. industry-leading Our on strategy firmly is financial are working and we track to and operational delivering

quarter to line, year. the through revenue and respectively Please first last excluding top go turn expenses XX.X% the the Starting X. slide by at X.X% Let��s grew numbers. and billable to revenue compared

elevated to the client compared The count and to prior increases were strength slightly period. expenses year continued in due growth, billable demand, head

remains Our markets. core diversified government growth and strong across well US our

month Turning to X.XX slide is X, trailing times. quarter our figure XX X.X and the book-to-bill for was times

see a strong We $XX.X prior robust the June than and XXth backlog Total proposal activity. year. higher as of billion, continue environment XX.X% was to award

Funded billion backlog book-to-bill priced show again increased they our demand grew X.X%, billion at unfunded to at numbers and XX.X%, revenue expectations backlog growth. we increased and not billion. are $X.X above support backlog of $X.X XX.X% market options constrained and by $XX.X The continued that

by as of Headcount up by March. the first the since as a was year-over-year - the mentioned, quarter of or X.X% record end of XXX end and Horacio X,XXX

we’re our targeted for X% to growth meet to headcount continue the on track full fiscal We aggressively growth our to and year. hire maximize potential

half encouraged and clear by are an we this Allen. colleagues We plan an quarter. in clients. aggressive hiring market, team at for which extremely grew people the job incredible our talented rate want in an done impactful areas It's have competitive for our labor the that Booz that our immediately at We work are first to

first Moving margin line, was year. EBITDA to XX% for compared up XX.X%. million, quarter the to bottom $XXX quarter the was EBITDA for adjusted last the Adjusted

margin, contract by from our as ongoing our adjusted drove fiscal of XXXX, same was technically continued in management EBITDA performance said, higher And focused Our strong shift and margin we've factors towards business. also our driven margin the our work. EBITDA year efficient of performance previously strong adjusted benefiting that including first margins quarter many are

confidence to and set great to the growth we and line results us invest as business in gives a in future. business These profit, is continue position that top people. This even show up be in is translate to into our our strong the

$XXX.X First and income million both quarter and to to increased $XXX.X higher our grew net respectively revenue margins. respectively, million net income and XX.X% primarily growth due and adjusted XX.X%

first translated in This per $X.XX. $X.XX diluted to to earnings adjusted share an the increase quarter

average declined year X.X to compared Our shares diluted outstanding weighted shares million ago. one

cash the increase Turning to for performance million generated due pleased in variety we we year. same our coordination in to driving the seasonally $XX am quarter’s on an the on I other quarter, process operating partners. focused that with in cash in control capital collection quarter our government this focus $XX remain initiatives. working last cash We was in collections strong and of cash, cycle improvements of areas can over a million

Capital million space increasingly the technology. technical technology growth quarter were outside retrofitted workforce, secured and an area. This includes and new business new, of expenditures continue Washington and infrastructure we facilities, in invest support as and to to continued $XX.X for Metro the lines

Please turn slide X. to

$XX capital million dividends quarter, efficient to the the During and returned through our first shareholder aims quarter. we continued near execute allocation long-term strategy shareholders to repurchases deliver We value. both during share and to on disciplined, that

that maximizes balance remain line of investment fiscal deployment this evaluate While for we with the our The year our shareholders. priorities remaining consistent unchanged, support position commitment in deploy and our a our options, thesis, sheet in way our all commitment. cash with continuously $X through billion to XXXX, strength value capital

a has we Today, $X.XX to August record are authorized on per share XXth. quarterly of XXth Company payable on announcing stockholders August dividend also that the of

our discuss outlook. as end, X. guidance remains our on One quarter shown I’ll unchanged, slide Lastly,

and continue EBITDA and year, flow XX%s, $XXX in million. to X%, growth revenue to cash and the diluted between $X.XX, million For margin of expect we $X.XX fiscal share operating earnings of between the adjusted full adjusted low X% per $XXX

Horacio, about to quarter our that strong In first entire meet have the to we you. management is goals. pleased path. multi-year are on Allen closing, we The extremely back generated Booz a excited reiterate is our I’ll financial with performance. team momentum

Horacio Rozanski

Thanks. to institutional focusing and Lloyd. want strength Each aspect quarter, overlook are external of rightly don’t to another our financial both internal our we But goals these performance. stakeholders. important

citizenship, impact we want move corporate the we Q&A, to we Booz about before I where the to have particularly speak So Allen's in briefly operate. communities

XX,XXX a XXXX, from service more than increase across than year. XXX globe. volunteer more year the people That's prior organizations our non-profit fiscal roughly of logged In the for XX% hours

we assist education, healthcare, and through STEM and well-known promote especially In to disaster continue community recover. advanced organizations a as firm their that support military resilience many families, build addition, veterans

and is people. of citizenship own by I me just our to commitment enduring, which inspired established Foundation, service Our is Allen's deep and Booz continue share passionate why support am even we independent the Booz Allow and generosity we few constantly a corporate Allen programs. the examples. as to service

We the Hiring donor the Our inaugural program. Spouse corporate to Military became recently Heroes fellowship

a internships strong careers after a which corporate will move will to spouses pipeline program. them and of effort, week re-launch innovative sustainability help the create joining deployment. six or for funding now are opportunities donors this Our that XXX Other send

we our Program May, Tragedy those of of duty. annual supports the for funding in line the TAPS die for families who tradition Survivors. continued conference the Assistance In of

their Booz Allen an for provides event children, evening grief care National Day a day nearly mentoring. of receive all the This while USA DC. provides Field here counseling in volunteers parents of for - and

latest Arts. Performing the couple their ago. our only the a we've the the operationalize for expertise donated Booz that in on years spring, of on Allen The done a John is growth in time consultants project plan it Center team F. Center this Kennedy project bono them and Kennedy focuses pro Also and strategic of helping a further support the worked of for

In X,XXX volunteer goal, a I’ll Month. National hours set Finally, April, X,XXX hours. We more XX it, mention a serving firm-wide recording in days. than Volunteer fact of over surpassed big challenge we easily

Our Fox Southern River winning Maryland. in office was

we in colleagues a roughly Our we world. a challenge again demonstrates Scouts, performance. Booz Special Olympics, are the such to to The empower the examples success hours several share, was Allen's support April I purpose of organizations, people could outdo it and each XXX change logged our this There Girl the Ocean there Conservancy. including fully that remarkable and other are expect summer, XXX countless doing to

will in more of time. people closing, recognize one and thank this firm I the So

you you You for people but and communities work impactful only define show to Allen the what not around the Booz you. care it do, deep also be through the means

lines With let’s for open Nick, that, the questions.

Nick Veasey

Thanks. open the Please lines. Shannon.

Operator

[Operator Instructions] Kahyaoglu Jefferies. Our comes Thank from question with you. Sheila first

open. Your line is

Sheila Kahyaoglu

good quarter. Thank guys. Good you and morning,

Horacio Rozanski

Thank you.

Sheila Kahyaoglu

budget front Could throughout be You the provide coming how together. the would highlighted you remainder maybe about on the on with deal executing year? some hiring end clarity you hiring think of loaded

Horacio Rozanski

Sure. Sheila, good morning.

thoughts. of couple a know You

is there ahead the on optimistic to because the has budget are fully dollars progress a now First itself, going all cautiously the But that are as made. you of been agencies, still of we October by know, major hopefully road against where from we appropriated Xst. all of

that closely, optimistic watch So of all will to we work as should. are that we that it but continue

example, if am the XX happy look to north back our quarter, I hiring, for over it to very very for intend growth relates but actually not and the X% actually headcount healthy this As about is just you continue. go last us we and of months that hiring,

continue would, the we the we We we balance this the are to hiring conditions on pedal for will to allow said execute strongly hiring and quarter our year. of metal assuming as against

proposition strong a talent. have to offer We value

firm it’s on a even to don't finding, bring and people great to though intend the stop. we market, to competitive We’re

Sheila Kahyaoglu

that comments head maybe And competitors more a regards hire adding employee you professionals? just with Horacio, it. in engagement. they you or to in a count? Got to Do your make up prepared your this to Does mentioned as difficulty follow remarks that number do do it of find have that easier

Horacio Rozanski

attractive. what these and clients our and that part You every mission, missions word a workday with the at our the meant proposition, closer the us. I with do having that entire communities, people support culture we that people’s absolutely said, know, of to aligned that what value do makes to very I’ll moving that valued, all speak makes both and we effort their passions I feel and is we for - about

lot is and they are about making about with a passionate know be millennials, in very can mission-focused. that a difference said my experience You very particular millennials they’re

And that intend and have so, And said engagement both we all because as the that that. continue unique this great attract to I program of technical can find talent of we I and great a external. mission great we culture, internal before a combination

Sheila Kahyaoglu

you. Thanks Thank

Horacio Rozanski

Sure.

Operator

Our next Citi. from Jon comes question Raviv with

open. is Your line

Jon Raviv

thanks. Hey, Good morning.

Just following some in do appropriated where around expect do dollars to X, you first about question. how the If up that thinking we year? manifest you're October on that get

upside is and/or to an there to keep half more accelerator on the potentially margin Is to a it growth second bit the you. going low be in a Thank sort of - for tens chance or the year? the

Horacio Rozanski

certainly know Allen. a to Booz you beneficial Jon, deal place is having Absolutely, sector certainly and budget in to the

not I mission no in We let are no, increasingly we’re from Demand is see strong client’s and our results, as down close and constrained. getting QX our you closer to and see demand that.

strong FY'XX and forward. what margin, push start, relates continue line we’re very in last going off to we're roughly As it to did to a we with QX of year to

we we low gave able think remain ago. level It's ahead where would sustain talked very sustainable. our guidance about we're up. of XX%s, of frankly, profitability, is probably a going we we in and where When that you end be the about to be we to thought believe still to We're that investment that thesis we happy year when

Jon Raviv

on approaches deployment remaining the can you always just bit, are, sort kind in, of re-evaluate the and or the front, coming you just also then M&A as tapped sort of shift options what and considering revisit what Lloyd of all of - to options mentioned And then that you market terms continues be historically you cash the around? in all but versus the forward you’re on capital working are plan might what evaluating for a going

Horacio Rozanski

Sure.

it. strategy, Our with capital deployment very we’re pleased

It efficient special to four on has to and disciplined over a a Just we're and everyone, shareholders and are period, maximize remind committed return $X.X dividends. repurchases strategy. capability, very regular that. capital we tuck-ins, and got billion share We’ve X track to year our with the levers;

M&A many see every year. fiscal opportunities We

we We believe have us. working that a for is strategy

we’re always so looking we capability plays as continue going so can we'll to best pure find And assets, and do forward. for

Jon Raviv

Thank you.

Operator

you. Thank

Our next Edward Fargo. question Wells with comes Caso from

Your line is open.

Edward Caso

and it Thank sort Thanks. on the Great. it business? the like In Good bit Can going talk you. what underneath looks of your year-to-year Congrats quarter. prospects a about the up XX-Q, and barely morning. commercial your was covers? what’s you on little

Horacio Rozanski

a morning. totality commercial know. by good the commercial Booz Allen. small of about standards Ed, well revenue is total of doing as Hey the portfolio you our of It's X% base, business well, global is - The Horacio. It's

two move number. changing contracts, And the around dynamics so or will one

growth been rapidly, at growing XX% strong to a from look if now will business years couple in you trend, it’s business a for close global are confident the quarter-to-quarter, volatility. commercial some our be we of of and there the prospects If even longer-term long-term

Edward Caso

award Thanks. I what $X the Can large you September activity, for re-protested, the spike a award almost is that the loss and guess got in and typical does billion are on you up? - other VA capture prospects May, question quarter. Do it the sense that

Lloyd Howell

Sure.

very for it fiscal you looking year. the that has those under seasonality backlog looked have who there government has Our that been, And VA always that's It far to - is closely us, of as at not does backlog protest. as award it’s typically conservative. capture our mirrors forward,

Horacio Rozanski

want just I to on that said put Lloyd something before.

We’re very pleased with the market.

We constrained. demand are not

a growth winning quarter the win. right number market we where growth to willingness on. Our The more largely of at are book-to-bill really prospects attract give places the and want to people in ability broadly, this are, that’s to point, this we're in shows of we our what absorb driven by and it, and sustainable but kind the focused

Edward Caso

Thank you. Great.

Operator

Our with Sachs. Goldman next question comes from Gavin Parsons

open. Your line is

Gavin Parsons

everyone. Hey. Good morning,

Horacio Rozanski

Morning.

Gavin Parsons

Demand sentiment, hardware now customer just growth to wanted not, being or pulled of the being budget been kind demand forward have being your a demand or maybe peers contracts. a subject, talking get at big constrained and about of lot - accelerated now environment deal

your sense whether in So on-contract from of confident general more or they in I confidence environment options maybe spending feel kind wanted budget or not a adding or just growth get money. the deal whether or more to there's of deal customer of no exercising just if

Horacio Rozanski

So, I more add. to one Lloyd The will that am the want critical funding begin frankly in see in I the has a invest been dynamic where I'll of than and sure couple to is now years, system dynamic, for, there capabilities.

change. earnings government, investment power was broadly revolution digital about I competition government was into and the call, defense more the shifting significant talked year coming across the great how the around and the priorities how that end dynamics At driving the federal

is And we client's we're high in to demand. This are, demand close our missions. work be us, of the will why continue that's don't demand. feel type to to of constrained and those And drivers underlying

accelerates Obviously it gives at numbers, improves what's stability and makes budget our to it longer less But in budget you term. if choppy the the clients plan and confidence look certainty that, - about our that, the even Q. talks

defense business, quarter. around our Our XX% civil growing both this business,

also, security great showing continue. supply potential the classification national is Our there, strong to are of constrain but the the strong and very greatest, business of Obviously demand. a the because deal issue

Lloyd Howell

And you performance. at when look I’d that just our backlog add

we’re book-to-bill environment our the X.XX to for at latest I at in. Our working trailing-XX quarter X.X months that speaks and times, really - think, then the

start a a to We also strong is a up XX%. We’ve got summer totals and amount fund up XX% by QX got backlog season. record the selling healthy of

Gavin Parsons

could And you Thank maybe just think Great. of in that? AI little investment about that could where position five government, then doing if current and what Horacio, talk be the to ten years a you to is for bit Booz in state the you.

Horacio Rozanski

Thank that question. for you

So competitors, one that, about, technology in heavily DoD let's been of start and it’s start let for think talked our I for reported me before AI investing competition, and of power better are areas. term, a those widely example, that lack I with great is

China on XX to the of exploded in last need. time warfare, Difficulty] We the last but government or the year ahead is were the that months, federal [Technical throughout years, intelligence, has machine algorithmic investing terms in two learning record three of on the for artificial notion

which are the think down talk they defense large about for actually about us if If areas stand and we what are parts centers we quite and the that's machine in right in ends, the are intelligence there, option that that capital building monetize with up bring those call you making encouraged. and them investments about in also need because as platforms intellectual that the very as talk allow very you of our then talk seasonally we're when government to different me not that ways accelerate to part about that government, parts of the to very but just will well significant, talent, season architectures other have but value opportunity of of are positioned

the be dollar to and going government forward wants of of multi-billion to Federal the investment for that. AI is Allen center and going area Booz at a be is

Gavin Parsons

Great. very Thanks much.

Horacio Rozanski

Thank you.

Operator

& Company. von question Our with Cai next Rumohr from Cowen comes

is Your line open.

Cai von Rumohr

Thank very you much. Yes.

why yet out your the happened? business So and fixed Investor your price mix goals, up profitability toward your three-year at shift down and very yet improving of and was strongly profitability laid cost-plus you first that was in talked satisfactory when Day, you delivered you and half, business and your a maybe very price more fixed explain

Horacio Rozanski

paying time has Sure, some factors. off. is effort Cai. really been the we see three and performance resulting we're from by This underway believe an all hard work seeing team our for been what really that margin We that's is

being One performance. strong contract

to fiscal that The the our that business we’re type also capabilities is and providing year. last and certainly combination more than this We’re fiscal work. and we ever efficiently technically we in shift the focused continue kicked of work managing of toward believe sustainable year

low see larger performance being we So our still XX%s. in

profitability, remain We’re very also we the throughout postures and the believe that line year. have then that and in top can at happy that of XX% to we rest the

Cai von Rumohr

Terrific. Thank you.

you more And you hired in half as pressure hire the in associated to past, margins. you with tend as normally aggressively have second haven't quarter the the first so, in the on now and

for see mean are the talked we plan about fourth feel is bit? term in likely or be lift a your be there you've you things X% Thanks. I continuing do decelerate another sort of headcount aggressive, likely to that What’s enough plus but could quarter business near year? this to to

Horacio Rozanski

started The fourth year. in the year. for Well, quarter of this story last actually

flowed you QX of quarter If certainly you that had net that at see will back into and look momentum this we QX, hiring a year. positive

to that Horacio demand constrained we and back it across some and and we've we're accelerator expect to quite talent for continue. off great deploy and our not the on as consistently And to then Horacio's comments, you remarks refer and comes to as when prepared our that start. we foot candidate business feel previous always a we maintain I've want to our hire the if strong well had we're that time

forecasted is we of we're shooting beginning It the for. year X%. the At what

remains our target. start, good still that We’re at the moment off a to and

Cai von Rumohr

Thank you.

Operator

Copeland Melius question Research. Carter with next from Our comes

open. Your line is

Carter Copeland

Good gentlemen. Hey. morning,

Horacio Rozanski

Carter. Hey,

Carter Copeland

wondered, follow-up levers, The quick highlighted in that numbers sort discussion. you Just - But minimal, capital the gone deployment of is capital the I I is or on you of Thanks. Lloyd. various flows ebbs see levers your opportunities? repurchase any very about, talked think all I about and to deployment this also there share normal the in that you and do know purposeful you just back the through one the Q. is sort how

Lloyd Howell

Sure. are I looking maximize what with value, maximize the we to presents ebbs shareholder shareholder of say Carter, value. toward to mean and the would and always flows given we I still an do us market eye the how market and

Carter Copeland

Okay. Thank you.

Operator

next with Our Tobey question Sommer from comes SunTrust.

open. is line Your

Tobey Sommer

Thanks.

So just your as - such wanted a future question learning you've kind pockets to to about and able hiring have ask of machine about demand AI of to talked growth that be already. long-term and differentiated,

the like the more that that that now beyond themes we've any add discussed the would new you and change market areas Is to those there investments to already? and horizon in could pockets a are you anything, there you see triggering press that on

Horacio Rozanski

you and the uniqueness I I are time ask position look myself market, the from strength, to and I question market that has drive all that's perspective, now. where to of from our at yes. answer the think differentiation in and we want a the be,

We’re in period pay provision off this XXXX.

fronts. driving want into and be where year all one a to We are we across we're fiscal quarter

We've driving been deployed. past, got Defend. that already innovation things It an that was it got pipeline. are ago relentlessly seven very robust. It's is began and six talked certain it’s about recreation.gov, cool years we have a or like District like have before We those the in agenda and innovation

bit to We don't things are have our further This that why and We about individually. other talk AI our are a about a will goal. we portfolio. talk some upstream be, upstream that as like is solutions and little things work things continue of them around these but

believe revenue because to goal performance our around potential to these of financial and profitability. these differentiated and combination drive create Booz high that with our higher platforms carry unique and clients unique, story Our that differentiated both the talent actually portfolio Allen and the for as ultimately we solutions a much unique margin investments create is

We're it So accelerating we're going at we necessary. time as that's at These can. take and goal. much every that's to we're We're as take it time quarter. the our things --

Tobey Sommer

you. Thank

and sort of, tempo outlays As in and just I treasury look from business your is tracking to looking of itself seeing at activity seeing context award are civil in different and business you you whether at your wondering simple ask defense that that of perspective, a cadence in that's civil manifesting in the defense a in business? ahead wins and

Horacio Rozanski

but Lloyd talking don't that it's of and demand about right before. robust definition and right honestly ones see we the lots not that economics board, at a just for I give was level. that We win, the are of opportunities, the of across positioning the great see question it ones the very the ones, can that the ones us kinds of

that sustainable win just leverage a are so that wins, where that. our ones but the work re-competes we new importantly, most these not the differentiation, And after

Tobey Sommer

you much. very Thank

Operator

comes next from with Our Robert Suisse. question Credit Spingarn

open. is line Your

Robert Spingarn

Hi, good morning.

Horacio Rozanski

Morning. Good

Robert Spingarn

every backlog like back Lloyd's quarter, It and The here. September for growth strong the we outstanding Horacio, sounds is another bookings quarter. that of on about you’ve had this tremendous. expansion talk looking but

probe support number at we and or class others? least see best are bit Obviously growth? little outpacing could parts - but a why the a translate you that differentiation little Could as you here, guys is backlog what that, the can more get into in yourself that into and the tangible sector we actually you high revenue

Horacio Rozanski

and us are winning. I think about we speak do I’ll why

where different their conversation to times at out to is in they about regularly clients leapfrog am our our mission I drive and and use are way, and mission. what technology their clients know, You to talking with to a major are accelerate on opportunities

elsewhere, to worked that's that bring things that or haven't frankly that before it it a on been new And have hasn't a that a excel, place capability capability. re-imagine to might where done before we port conversation to when we based seen over lead tends and leveraging mission completely a

help tone to thing assume that our and mode we for don't I of the of the one doing, - tenor us to example, at I the That our service. recruiting understandings and others looking are and fuels work that of bringing or potential growth. kind market them there, unique that We're understand a because local the regularly don't we're bring is source work together how recruits that that like in win what that is services, is some we open

makes compete earlier. with new five never again is in What our we that is push And a thinking it a mission for it same sustainable new re-compete not approach, It's forward. makes going we're that's had a what laurels, to we years I to think sustainable. rest the proposal that the

by environment, in way, and is excites but constrained here. not just that frankly the people work And to what honestly a that's these and brings great them. actually I advance to think opportunity what in supply It’s missions, people to the keeps

Robert Spingarn

being you that sustainable. So talk about

budget. brings is, which So really do have from up next while the question, the some part XXXX we visibility a of here

of the kind on The and out. is second flat. of is from When we here it the flattish FYDP that look budget half at of look kind we O&M, at

doesn't just your And so your go again, if growth? we what in growth think to necessarily you how market about or, longer-term a opportunity end the do growth said, really you flattening back drive budget

Horacio Rozanski

we know, can the as market I long You remember. as for outgrow

about is us because So having reasonable our can to to important what’s certainty then of invest we win a work. ability really clients level their

like the said, I have. we course take as to we've continuing always market that and intend that. do outpaced will to the we I in share of mean doing always we And

Robert Spingarn

we should there the is, a last as progress of on fiscal And lookout through couple year? be for the we thing major are contracts

Horacio Rozanski

when of that individual our portfolio, firm. drives constructed such we no about the about future because contracts entirety is talk the don't We talk the actually portfolio single contract call, of this the on

of all can across of is look you because wins at the it, our having we’re kinds what drives that's the the look and just size it, extent to our we're of I and what sustainability. not questions uniqueness So that that think about that ask

Robert Spingarn

you. Okay. Thank

Horacio Rozanski

you. Thank

Operator

next question from comes Our Stifel. with Joseph DeNardi

open. is line Your

Joseph DeNardi

thanks. Horacio, terms bit Yeah, optimistic the in guess more outlook. than I little morning. a you of sound cautious budget Good

few next some are just kind Thanks. you bit risks that a of little of months you're the what monitoring? can So the talk over about

Horacio Rozanski

am around claim Sure. how trying to I'm crystal people I about I hill, on out to of a these. mean, are I to any thinking up clients. understand ball the talking have don't have. to that lived that hiccups talking lot than it be longer complex the along we can way. And in a and process who've -- have world a can that experts it’s for

the closely. Think was momentum happen don't year and I there -- there we're translate, I a everything that looking it come at don't all of but will last expect shutdown. budget there was about was budget else deal, January - a was optimistic to this there a - positive am I very year. that then

the as relates hopefully we in great us, way prepared And quarter, is well the very deal and to be it. it this half, a there running strong very are things strong first will why year if to first continue are if we'll second we are, half turbulence, so is the that we on with

Joseph DeNardi

of your front the on legal Defend about there us of District to the talked update Got investment strategy or on anything it. and Thank update value you. you And on? some any then guys just other opportunities lastly, kind option as part of then is

Horacio Rozanski

No updates legal on the front.

We government, process continue that the work to ongoing. and with is

As our is option forward. portfolio moving to portfolio, it value the relates

part of to repeatedly, for and firm said a to portfolio part be in any I’ve don't every the expect succeed. real could portfolio actually mover that the of the long-term, needle medium As we

we’re very making But all closely, we’re it and progress on that about I'm investing, actually excited fronts. we're very managing the

Joseph DeNardi

Thank you.

Operator

Blair. comes Our from McHugh William Tim next question with

open. is Your line

Tim McHugh

but wanted answered is mine towards this of quarter. mix meaningful gradual asked, the that a contract asked more were margin. of ask, part trend that doing Thanks. on guess a you're have been the wanted I type. step follow-up just about mix shift. then earlier to you a work that or of driving mix, type what's part Most There just cost guess, I driving I base client mix of that's reimbursable, and Thanks. the guess your shift? as I been Is or to particular

Lloyd Howell

you timely that an and of variety from of that's portfolio strong our contract what's the plus materials of And the aware size contract outcome of contributed saw been having to shift. from sort a factors, of the any market, size modest performance. Yeah. and cost in has our may our our of defense Tim, it's analysis, as - be part a

Tim McHugh

Thanks. Okay.

Lloyd Howell

Sure.

Operator

concludes over remarks. like for the this would now to question-and-answer you, Rozanski the Thank closing Horacio conference session. I to back turn

Horacio Rozanski

your dialog morning. questions Thank you, Thanks for everyone. for this for the and time, your

another you as year firm, fiscal Our off off pay start can to period for this is great tell, and continues. the Vision XXXX

and So thank I Allen, shareholders our like continued confidence. on behalf to of at Booz for the people support would their

positive day a the communities. ahead of in can with especially and Have the forging make world the we difference in about the enjoy future, and excitement the summer. our about are great rest We

Operator

concludes this gentlemen, for you and day. wonderful conference. Thank a joining have and Ladies today’s

Booz Allen Hamilton Holding (BAH) 29 Jul 192020 Q1 Earnings call transcript