Engility Holdings (EGL) Announces Debt Refi; Prelim. Q2 Revenue Outpaces Views

Engility Holdings (NYSE: EGL) announced its intent to refinance its first and second lien term loan facilities and expand its revolving credit facility, subject to market and other conditions. The objectives of the refinancing and credit facility expansion are to reduce the Company’s interest expense, increase its financial flexibility and extend its weighted average debt maturity. If consummated, the Company anticipates it will continue to have approximately $1.1 billion in net debt. The terms of the potential refinancing will be disclosed upon the completion of the transaction, which is anticipated to occur in early August 2016.

In connection with the anticipated refinancing, the Company also intends to provide to potential lenders and investors the following preliminary financial results for the second quarter ended July 1, 2016:

• Total revenue of approximately $535 million. (The Street sees $519.7 million.)
• Adjusted EBITDA of approximately $48 million;
• Book-to-bill ratio of approximately 1.2x based on net bookings;
• Total backlog of approximately $3.0 billion; and
• Submitted bids awaiting adjudication of approximately $5.0 billion.

The Company notes that revenue from the second quarter benefited from approximately $5 million of supplemental program work completed during the quarter. The Company also made voluntary debt prepayments of $20 million during the second quarter of 2016. Voluntary debt prepayments for the first six months of 2016 totaled $30 million.

The above estimates for the second quarter of 2016 are derived from preliminary internal financial reports and are subject to revision based on the completion of the quarter-end accounting and financial reporting process. Engility will report its complete results for the second quarter on August 1, 2016, including a reconciliation of net income to adjusted EBITDA.

There can be no assurance that the Company will be able to consummate the refinancing transactions on favorable terms or at all. The Company is providing this information given the initiation of this debt refinancing process.

Conference Call Information

Engility will host a conference call at 8:30 a.m. Eastern Time on August 1, 2016, to discuss the final financial results for its second quarter 2016.

Listeners may access a webcast of the live conference call from the Investor Relations section of the company's website at http://www.EngilityCorp.com. Listeners also may access a slide presentation on the website, which will summarize the Company’s 2016 second quarter results and its fiscal year 2016 guidance. Listeners should go to the website at least 15 minutes before the live event to download and install any necessary audio software.

Listeners also may participate in the conference call by dialing (888) 655-5029 (domestic) or (503) 343-6026 (international) and entering pass code 50457672.

A replay will be available on the Company's website approximately two hours after the conference call and continuing for one year. A telephonic replay also will be available through August 8, 2016 at (855) 859-2056 (domestic) or (404) 537-3406 (international) and entering pass code 50457672.

You May Also Be Interested In

• Lockheed Martin (LMT) Tops Q1 EPS by 53c, Beats on Revenue; Offers FY24 Guidance
• General Motors (GM) Tops Q1 EPS by 50c, Raises Guidance
• JetBlue Airways (JBLU) stock dips as revenue declines