Perspecta Inc (NYSE: PRSP) stock rose over 8.4% on 7th June, 2019 (As of 12:43 pm GMT-4; Source: Google finance) after the company posted better-than-expected results for fourth quarter of FY 19. Bookings totaled $1.4 billion or a book-to-bill ratio of 1.2 times. 93% of the quarter’s awards were new work for Perspecta. At the end of the fourth quarter, total backlog was $10.7 billion, which was up 2% compared to the third quarter of fiscal year 2019. Funded backlog at the end of the fourth quarter was $2.2 billion, which was unchanged sequentially. The company’s strong $68 billion pipeline of qualified opportunities includes $17 billion worth of proposals already submitted and awaiting decision. The submitted total includes the NGEN re-compete.
Q4 adjusted EBITDA was $207 million, which was up 10% compared to year-ago pro forma adjusted EBITDA, as margin improved from 17.8% to 18.9%. Excluding the one-time gain, adjusted EBITDA margin was 18.2%, which was up 130 basis points sequentially and well above the previous long-term target range.
PRSP in the fourth quarter of FY 19 has reported the adjusted earnings per share of 54 cents, beating the analysts’ estimates for the adjusted earnings per share of 48 cents, according to the Thomson Reuters’ consensus estimate. The company had reported the adjusted revenue growth of 53 percent to $1.09 billion in the fourth quarter of FY 19 mainly due to the mergers, beating the analysts’ estimates for revenue of $1.08 billion. Revenue for the first quarter was up 3% from pro forma revenue for the fourth quarter of fiscal year 2018.
Moreover, the growth driver in the fourth quarter was the Defense and Intelligence segment, which increased 8% year-over-year, with strong performance in the Federal Background Investigations support business, and solid balanced performance across the remaining Defense and Intelligence customers. This growth came despite a $16 million rollover challenge in the Q1 contract divestiture. Civilian and Health Care segment revenue decreased 5% year-over-year, $6 million of the $19 million revenue decrease was from the final payments in the fourth quarter of fiscal year 2018 on the Kennedy Space Center engineering contract.
Additionally, during the fourth quarter we generated $168 million of cash flow from operating activities and $136 million of adjusted free cash flow, or 153% of adjusted net income. During the fourth quarter, we paid down $88 million of debt and returned $24 million to shareholders, $8 million in quarterly dividends and $16 million in share repurchases.