Revenue for the third quarter of fiscal year 2021 was $1.24 billion, and diluted earnings per share were $1.51.
The company's operating margin was 11.2% for the quarter.
Excluding the amortization expense, results in an operating margin of 12.2%.
COVID response work contributed an estimated $460 million of revenue in the quarter, which was approximately $185 million higher than our projection for the third quarter.
COVID response work has contributed $860 million of revenue on a year-to-date basis, and our full year estimate is approximately $1 billion.
The estimated organic revenue growth for fiscal 2021 adjusted to exclude the Census contract and COVID response work is 2.6%, assuming the midpoint of our new guidance range disclosed today.
The attained federal revenue for the three months ended June 30, 2020, was $56 million, which equates to approximately $224 million on an annualized basis.
VES contributed $46 million of revenue, beginning from the acquisition date of May 28, 2021, which equates to approximately $515 million of revenue on an annualized basis.
At June 30, 2021, and we had gross debt of $1.71 billion, and we had unrestricted cash and cash equivalents of $96.1 million.
At June 30, 2021, our receivables were $1.13 billion resulting from the inclusion of VES acquired receivables and a substantial increase in revenue in the quarter.
The DSO of 77 days includes VES on a pro forma basis and was skewed by the high level of revenue in June as compared to April and May.
DSO was 75 days at December 31, 2020 and 70 at March 31, 2021, which included Attain Federal on a pro forma basis.
Cash from operations of negative $33 million and free cash flow of negative $41.6 million for the three months ended June 30, 2021, were significantly impacted in the quarter due to this additional investment in working capital.
Assuming the midpoint of our new revenue guidance range and assuming 72 days DSO, we expect the cash from operations to be in the range of $425 million to $455 million for the full year.
Cash flows from investment activities report significant activity, including almost $1.8 billion of cash outflows for the two acquisitions.
Cash flows from financing activities showed the draw of $1.7 billion on our new credit facility in May.
The credit facility is flexible and at $2.1 billion in total provides us an additional $400 million for liquidity and to fund smaller acquisitions.
This pro forma assumes Attain Federal and VES had been acquired on July 1, 2020, and therefore, included for a full 12 months in our operating results.
The operating income and operating margin for the 12-month period, excluding amortization of intangible assets, was $591.3 million and 12.7%, respectively, for the combined company inclusive of Attain Federal and VES.
As for the remainder of fiscal 2021, our expectation for the full year is for revenue to range between $4.2 billion and $4.25 billion and for diluted earnings per share to range between $4.65 and $4.75.
We expect cash from operations to range between $425 million and $455 million and free cash flow between $375 million and $405 million for the fiscal year 2021.
The midpoint of guidance implies an operating income margin of 9.8%.
Our best estimate for fiscal 2021 amortization expense is $44 million and reflects the increase due to the two acquisitions.
The operating income margin, excluding the amortization of purchased intangible assets, implied by the guidance for the full fiscal year ending September 30, 2021, is 10.9%.
The fourth quarter results for fiscal 2021 will be negatively impacted by the start-up contracts outside the U.S., which are expected to have operating losses in the range of $13 million to $15 million within the fourth quarter.
Our effective income tax rate for the full year ended September 30, 2021 is expected to be between 25% and 25.5%.
We expect interest expense to be approximately $14 million for fiscal 2021 and approximately $10 million in the fourth quarter.
The fiscal '21 diluted earnings per share guidance would be $0.53 higher, excluding the projected amortization of intangible assets.
Both scopes of work created significant learning opportunities for us as well as our gaining significant new customer relationships, including this year's projection, inception-to-date census and COVID response work combined revenues are estimated to be approximately $2 billion.
The cash realized from the Census contract and the COVID response work was significant to our ability to acquire both Attain Federal and VES and still maintain a total debt to adjusted EBITDA ratio below 3:1.
Third quarter fiscal 2021 revenue in the U.S. Services Segment increased to $436.3 million, driven by an estimated $164 million of COVID response work.
The segment operating income margin was 14.3%, reflecting the negative impact on some core programs, including those impacted by the pause of Medicaid redeterminations as well as push out of non-COVID planned new work.
These factors also impact our fiscal 2021 full year expectations for the U.S. Services Segment operating income margin, which is expected to range between 16% and 17%.
Revenue for the third quarter of fiscal 2021 for the U.S. Federal Services Segment increased to $617.6 million from $450.1 million in the prior year period due to particularly strong COVID response work and contributions from the two acquisitions offset by the lower revenue from the Census contract.
COVID response work contributed an estimated $280 million of revenue to the Segment.
The operating income margin for U.S. Federal was 13.9%.
Our full year fiscal 2021 guidance for the U.S. Federal Services Segment is between a 10% and 11% segment operating income margin.
For the fourth quarter of fiscal 2021, we expect a margin between 11% and 12% for the segment.
Turning to Outside the U.S. Segment, revenue for the third quarter of fiscal 2021 was $189.6 million, Operating income was $8.3 million, resulting in a margin of 4.4%.
As a reminder, the profitability for each of these Outside the U.S. start-up contracts is expected to exceed 10% operating income margin, and we expect significant improvement to the financial contribution from these contracts in the second half of fiscal 2022.
The ratio of debt, net of allowed cash to pro forma EBITDA for the 12 months ended June 30, 2021, calculated in accordance with our credit agreement is 2.4:1.
Our stated aim is to use most of our free cash flow over the next few quarters to push this ratio closer to 2:1.
We target a dividend yield between 1% and 2% of our stock price.
Based on our stock price over the last several months, the current annual dividend of $1.12 per year has ranged between 1.2% and 1.4% yield.
On the plus side, we feel less uncertainty going into fiscal 2022 as compared to this time last year, which gives visibility to the following: number one, we expect the acquired businesses of Attain Federal and VES to deliver approximately $750 million of revenue in fiscal 2022.
This compares to $320 million to $330 million forecasted for the two acquisitions in fiscal 2021.
Number two, we currently expect the revenue in fiscal 2022 from COVID response work to be in the range of $150 million to $200 million.
Number three, our expectation is that revenue from the star-tup contracts Outside the U.S. will be at least $150 million higher in fiscal 2022 as compared to fiscal 2021.
Number four, we expect amortization expense to be between $80 million and $85 million.
Number five, we expect interest expense to be between $30 million and $33 million, and the effective income tax rate, assuming no change in U.S. Federal rates, should be between 25% and 26%.
With two months left to go in fiscal year 2021, it's natural for us to be looking toward next year when we expect to see not only macro trends, bringing improvement to our core programs, but also momentum through new programs, such as the UK Restart and additional clinical and digital IT services work afforded by Attain Federal and VES.
Prior to VES, 15% of our work was clinical in nature, whereas it now accounts for approximately 25% of our portfolio.
I'm also pleased to share the recent award of two modernization contracts from the Internal Revenue Service were a combined $151 million awarded on the GSA Alliant two contract vehicle.
We have a long-standing relationship with the IRS, which initially began in 1991 and are uniquely positioned to support the agency as they focus on modernization projects and build solutions to meet their mission-critical needs.
Outside the U.S., as Rick noted, our margin profile for Restart UK will improve over the next several quarters with OUS start-ups collectively anticipated to achieve 10% or higher operating income margin over the life of the contracts and provide us at least $150 million of additional revenue in FY '22.
For the third quarter of fiscal year 2021, year-to-date signed awards were $3.2 billion of total contract value at June 30.
This includes the UK Restart Award that we announced on April 26 and the CDC Vaccination Hotline Award for which we have assumed a $300 million total contract value.
Further, at June 30, there were another $1.38 billion worth of contracts that have been awarded, but not yet signed.
Our total contract value pipeline at June 30 was $33.6 billion compared to $35.6 billion reported in the second quarter of fiscal 2021.
The June 30 pipeline is comprised of approximately $4.2 billion in proposals pending, $6.8 billion in proposals and preparation and $22.6 billion in opportunities tracking.
Of the total pipeline, 63.6% represents new work opportunities.
Approximately $1 billion of the pipeline reduction is due to the UK Restart program award with the remainder largely a result of government delays or cancellation of work that pushes opportunities out past the 2-year horizon for pipeline reporting.
Illustrating the capabilities we demonstrated during the pandemic, we quickly ramped up approximately 13,000 agents on one contract alone, which required initially hiring nearly 20,000 prospective staff.
We saw our largest starting class ever on one day, comprising more than 12,500 remote agents as part of this effort.
The cloud-based telephony infrastructure built and stress tested for this same contract was among the largest ever constructed for government, capable of handling up to 0.5 million calls per hour or 160 calls per second.
As Rick and I have cautioned this year, the COVID-19 work is tapering off quickly, while, with some exceptions like Australia, our core programs have not yet returned to their prepandemic activity levels.

Summary:
Revenue for the third quarter of fiscal year 2021 was $1.24 billion, and diluted earnings per share were $1.51.
COVID response work has contributed $860 million of revenue on a year-to-date basis, and our full year estimate is approximately $1 billion.
Assuming the midpoint of our new revenue guidance range and assuming 72 days DSO, we expect the cash from operations to be in the range of $425 million to $455 million for the full year.
As for the remainder of fiscal 2021, our expectation for the full year is for revenue to range between $4.2 billion and $4.25 billion and for diluted earnings per share to range between $4.65 and $4.75.
We expect cash from operations to range between $425 million and $455 million and free cash flow between $375 million and $405 million for the fiscal year 2021.
The cash realized from the Census contract and the COVID response work was significant to our ability to acquire both Attain Federal and VES and still maintain a total debt to adjusted EBITDA ratio below 3:1.
The ratio of debt, net of allowed cash to pro forma EBITDA for the 12 months ended June 30, 2021, calculated in accordance with our credit agreement is 2.4:1.
Our stated aim is to use most of our free cash flow over the next few quarters to push this ratio closer to 2:1.
We target a dividend yield between 1% and 2% of our stock price.
With two months left to go in fiscal year 2021, it's natural for us to be looking toward next year when we expect to see not only macro trends, bringing improvement to our core programs, but also momentum through new programs, such as the UK Restart and additional clinical and digital IT services work afforded by Attain Federal and VES.
Approximately $1 billion of the pipeline reduction is due to the UK Restart program award with the remainder largely a result of government delays or cancellation of work that pushes opportunities out past the 2-year horizon for pipeline reporting.
As Rick and I have cautioned this year, the COVID-19 work is tapering off quickly, while, with some exceptions like Australia, our core programs have not yet returned to their prepandemic activity levels.