Booz Allen details the latest moves in its ‘VoLT’ strategy
Booz Allen Hamilton’s latest three-year strategy called “VoLT” presented last year has led the company to make three executive-level appointments and an internal realignment designed to support the ongoing transformation.
During the call for results for the fourth quarter and end of Booz Allen’s fiscal year on Friday, CEO Horacio Rozanski said the board has approved the promotion of Kristine Martin Anderson as president of the civil sector of the company to director of operations.
On June 1, he will officially take over as COO, Rozanski told investors. Anderson has been with the government technology services contractor for 16 years, including the last four overseeing his civilian business and prior to that a period as a leader in the healthcare business.
Its primary responsibility will be to “accelerate the operational performance of the entire company and transform our business model in collaboration with company-wide leaders,” Rozanski said.
The last time Booz Allen had a director of operations was when Rozanski held that position between 2011 and 2014, before becoming chief executive in early 2015.
With Anderson moving to COO, his role as leader of the civilian sector will be taken over by current growth director Richard Crowe also on June 1st. Crow has also previously led Booz Allen’s health business during his 17-year career at the company.
Rozanski’s third relocation involves a realignment of the company’s IT infrastructure and innovation functions. It is a single organization from April 1 and under the leadership of Susan Penfield in the position of new director of technology.
“This organization is leading the way in market exploration to select and scale the best new technologies for the mission needs of our customers as well as ours,” Rozanski said.
Fourth-quarter revenue rose 13.1% year-over-year to $ 2.24 billion, while Booz Allen’s 2022 fiscal year sales ended April 31 increased 6.4% to $ 8.36 billion.
This year-on-year increase includes a 1.5% increase in the top line for the intelligence business and 11% in the fourth quarter. Chief Financial Officer Lloyd Howell described it as a turning point given Booz Allen’s efforts to shift the business to “the high-end technical work we want to focus on.”
The company’s initial focus for its current fiscal year 2023 is $ 8.8 billion to $ 9.1 billion in revenue, suggesting growth of between $ 5% and $ 9%.
Approximately 1% of sales acquired from Liberty IT Solutions and Tracepoint are included in this outlook. Contributions to the EverWatch acquisition are not included, which Rozanski said Booz Allen is working on closing “in the coming months.”
Booz Allen reported a record $ 29.2 billion portfolio in the company, with $ 3.7 billion financed, as well as a book-to-book ratio of 1.36 for the fiscal year that represents the rate of contracts that have been reserved compared to the revenue that is made.
Within those underlying metrics is a competency that Booz Allen secured in the fourth quarter for his so-called “EMAPS” task order, initially won in 2018 with a $ 885 million ceiling to help defense and other agencies. to deploy new artificial intelligence tools and techniques.
EMAPS now has a $ 1.5 billion ceiling to represent the “largest single-task order in our company’s history,” Rozanski said.
“It’s obviously important financially, but it’s also strategically important because that’s the kind of work we want to do: at the heart of the mission, to drive both mission priorities and technology into key core missions that will need and be done. for her, “Rozanski added.
Booz Allen also announced 5.7% more employees than last year up to 29,300 employees amid a 12-month period in which recruitment and hiring returned to the top of the business agenda.
“We remain optimistic that by re-orienting in the middle of a single digit this fiscal year, we will get closer and closer to that, but it is still a very tight job market,” Howell said.
Fourth-quarter earnings rose 6.3% to $ 205 million in adjusted EBITDA (earnings before interest, taxes, depreciation and amortization), while the full-year increase was ’11, 3% to $ 934.9 million.
Forecasts for fiscal year 2023 focus on adjusted EBITDA growth of between $ 950 million and $ 1 billion, suggesting a margin of between 10 and 10%. Booz Allen closed its last fiscal year with an adjusted EBITDA margin of 11.2%.