Revenues for the quarter increased $453 million, or 38%, compared to the prior year quarter due to the acquisition of Engility. Adjusting for the impact of acquired revenues, revenues contracted 1.5% due to acquisition related dis-synergies.

Operating income as a percentage of revenues of 5.8%, decreased from 6.2% in the comparable prior year period, due to increased intangible asset amortization, lower current quarter net profit write-ups and acquisition and integration costs, partially offset by cost synergies.

Net income attributable to common stockholders for the quarter increased $7 million as compared to the same period in the prior year primarily due to increased operating income ($17 million, net of tax), partially offset by higher interest expense and a higher effective tax rate.

Adjusted EBITDA⁽¹⁾ as a percentage of revenues for the quarter remained consistent with the prior year. Cost synergies related to the acquisition were offset by lower net profit write-ups.

Diluted earnings per share for the quarter was $0.94 compared to $1.11 in the prior year quarter. Adjusted diluted earnings per share⁽¹⁾ for the quarter was $1.39 compared to $1.47 in the prior year quarter. The weighted-average diluted shares outstanding during the quarter increased to 58.3 million from 43.2 million during the prior year quarter, primarily due to shares issued for the acquisition of Engility.

⁽¹⁾Non-GAAP measure, see Schedule 5 for information about this measure.

Cash Generation and Capital Deployment

Cash flows provided by operating activities for the third quarter were $116 million, an increase of $30 million compared to the same period in the prior year. The improvement is primarily due to cash provided from the operating activities of Engility.

During the quarter, SAIC deployed $24 million of capital, consisting of $21 million in cash dividends and $3 million of term loan repayment. There were no plan share repurchases in the third quarter. Not included in the third quarter capital deployment was the $100 million repayment of funds borrowed on our revolving credit facility during the second quarter to directly repurchase shares from a private equity shareholder.

New Business Awards

Net bookings for the quarter were approximately $2.2 billion, which reflects a book-to-bill ratio of 1.4. SAIC’s estimated backlog of signed business orders at the end of the quarter was approximately $14.5 billion of which $2.9 billion was funded.

SAIC was awarded the following contracts during the quarter:

U.S. Intelligence Community: SAIC was awarded a total of $582 million in contracts to support various U.S. space and intelligence community customers, including $68 million from the previously-announced Zeus contract awarded by the National Geospatial-Intelligence Agency to continue the Innovative GEOINT Application Provider Program (IGAPP). SAIC will provide services and solutions to customers with requirements for highly-specialized technical and operational expertise in technology integration, engineering, IT modernization and mission operations.

Notable Recompete Awards:

Orange County, California: SAIC was awarded a contract extension to continue providing information technology (IT) managed services and solutions to agencies and departments within the County of Orange, California. SAIC's services will support the county's data center, desktop, service desk, and applications. The firm-fixed-price contract has a base period of performance of 53 months and is valued at approximately $55 million. If exercised, the contract has two one-year options.

The U.S. Army: SAIC was awarded the Army Human Resources Command Cloud Computing Environment (HR2CE) contract with a value of more than $41 million over three years. The U.S. Army selected SAIC to modernize its IT infrastructure by migrating enterprise applications to a cloud environment. The contract was competed under the Information Technology Enterprise Solutions - 3 Services (ITES-3S) contract.

Notable New Business Awards:

U.S. Navy: SAIC was awarded a five-year $85 million task order on the Information Analysis Center Multiple Award Contract (IAC-MAC) to provide research and develop support to advance related scientific and technical information (STI) for the Naval Surface Warfare Center (NSWC) in Crane, Indiana. Through the task order, SAIC will support electro-optical/infrared scientific and technical projects for systems such as lasers, visual augmentation systems, weapons sights, beacons, sensors and peripherals for various platforms.

City of Anaheim, California: SAIC was awarded an $85 million, eight-year contract to provide information technology (IT) services to the City of Anaheim, California. SAIC's new service delivery model will provide high-quality IT support and maintenance services for the city's infrastructure, applications, and workplace solutions. The fixed-price contract has a four-year initial term and two 2-year optional extensions.

The Department of Commerce: SAIC was awarded a five-year single-award indefinite-delivery, indefinite-quantity contract with a ceiling value of $60 million in support of the U.S. Patent and Trademark Office. Leveraging SAIC's proven application modernization and cloud migration solutions, the company will provide IT modernization services to stabilize the portfolio of critical IT systems and prevent any disruption of service.

Webcast Information

SAIC management will discuss operations and financial results in an earnings conference call beginning at 5:00 p.m. Eastern time on December 5, 2019. The conference call will be webcast simultaneously to the public through a link on the Investor Relations section of the SAIC website ( http://investors.saic.com). We will be providing webcast access only – “dial-in” access is no longer available. Additionally, a supplemental presentation will be available to the public through links to the Investor Relations section of the SAIC website. After the call concludes, an on-demand audio replay of the webcast can be accessed on the Investor Relations website.

About SAIC

SAIC® is a premier technology integrator solving our nation’s most complex modernization and readiness challenges. Our robust portfolio of offerings across the defense, space, civilian, and intelligence markets includes high-end solutions in engineering, IT, and mission solutions. Using our expertise and understanding of existing and emerging technologies, we integrate the best components from our own portfolio and our partner ecosystem to deliver innovative, effective, and efficient solutions.

We are 23,000 strong; driven by mission, united by purpose, and inspired by opportunities. Headquartered in Reston, Virginia, SAIC has pro forma annual revenues of approximately $6.5 billion. For more information, visit saic.com. For ongoing news, please visit our newsroom.

Forward-Looking Statements

Certain statements in this release contain or are based on “forward-looking” information within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by words such as “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “guidance,” and similar words or phrases. Forward-looking statements in this release may include, among others, estimates of future revenues, operating income, earnings, earnings per share, charges, total contract value, backlog, outstanding shares and cash flows, as well as statements about future dividends, share repurchases and other capital deployment plans. Such statements are not guarantees of future performance and involve risk, uncertainties and assumptions, and actual results may differ materially from the guidance and other forward-looking statements made in this release as a result of various factors. Risks, uncertainties and assumptions that could cause or contribute to these material differences include those discussed in the “Risk Factors,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Legal Proceedings” sections of our Annual Report on Form 10-K, as updated in any subsequent Quarterly Reports on Form 10-Q and other filings with the SEC, which may be viewed or obtained through the Investor Relations section of our website at www.saic.com or on the SEC’s website at www.sec.gov. Due to such risks, uncertainties and assumptions you are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof. SAIC expressly disclaims any duty to update any forward-looking statement provided in this release to reflect subsequent events, actual results or changes in SAIC’s expectations. SAIC also disclaims any duty to comment upon or correct information that may be contained in reports published by investment analysts or others.