In fiscal year 2018 (ended Dec. 31), Peraton Corp. faced one-time costs associated with the recent acquisition of Strategic Resources International (SRI) and continued costs pertaining to the separation from Harris Corp. Approximately $30 million in nonrecurring charges for the year resulted in S&P Global Ratings-adjusted EBITDA margin of only 5.4% in 2018. We expect EBITDA margins to improve to 10%-11% in fiscal 2019 due to the absence of these costs and a shift to higher-margin work. Margins should also benefit from customers shifting away from "lowest price technically acceptable" type contracts, which generally have very low margins. While Peraton originally focused more on satellite and terrestrial communications, SRI adds global mobile communications abilities. With broader services, more customers are
