Caci International, Inc. · NYSE:CACI
Caci International — Q1 FY2017 Earnings Presentation
18 slides from Caci International's earnings presentation, Oct 27, 2016
Slide 1: CACI International Inc First Quarter Fiscal Year 2017 Conference Call
CACI International Inc First Quarter Fiscal Year 2017 Conference Call October 27, 2016 INFORMATION DEPLOYED. SOLUTIONS ADVANCED. MISSIONS ACCOMPLISHED.
Slide 2: Forward-looking Statements
Forward-looking Statements There are statements made herein which do not address historical facts and, therefore, could be interpreted to be forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such statements are subject to factors that could c
Slide 3: Our Participants Today
Our Participants Today Ken Asbury President and Chief Executive Officer Tom Mutryn Chief Financial Officer John Mengucci Chief Operating Officer and President, U.S. Operations Greg Bradford Chief Executive Officer, CACI Limited in the UK INFORMATION DEPLOYED. SOLUTIONS ADVANCED. MISSIONS ACCOMPLISHE
Slide 4: First Quarter Highlights
First Quarter Highlights Won important new business Delivered outstanding customer service Won critical recompetes Focus on M&A for growth continues to pay-off • Exceptional financial performance and strategic value from our National Security Solutions acquisition Achievements reflect the value that
Slide 5: Executing Our Market-based Strategy
Executing Our Market-based Strategy Won contracts in all our markets • Noteworthy wins in Intelligence Systems and Support, Surveillance and Reconnaissance, and Communications Third consecutive quarter with more than $1 billion of awards Goals beyond FY17: • Grow organic revenue 1% - 4% greater than
Slide 6: First Quarter Revenue and Net Income
First Quarter Revenue and Net Income Revenue Net Income $1,100.0 $1,073.3 $40.0 $1,000.0 $38.0 $36.7 $900.0 $36.0 $822.4 $34.6 $800.0 $34.0 $700.0 $32.0 $600.0 $30.0 Q1'16 Q1'17 Q1'16 Q1'17 Strong performance from Contract modifications NSS and unplanned pulled forward material purchases Strong perf
Slide 7: Continued Strong Cash Flow
Continued Strong Cash Flow Days sales outstanding – 59 days versus 62 days in Q4’16 Generated $58 million in operating cash flow for the quarter, 157% of net income Net debt/TTM pro forma EBITDA of ~3.7 times TTM Operating Cash Flow as TTM a % ofFree Cash Flow $400 TTM Net Income (right scale) 250%
Slide 8: Updating FY17 Guidance
Updating FY17 Guidance Current Previous FY17 Guidance FY17 Guidance Revenue (millions) $4,050 - $4,250 $4,050 - $4,250 Net Income (millions) $150 - $160 $150 - $160 Diluted EPS $5.98 - $6.37 $6.02 - $6.43 Diluted shares (millions) 25.1 24.9 FY17 revenue expected to be 8% to 14% above FY16 revenue FY
Slide 9: Successful First Quarter of FY17
Successful First Quarter of FY17 Strong contract awards Key protests resolved in our favor Agility to meet purchasing requests Operational excellence to deliver contract actions sooner Efficient delivery on firm fixed price programs 9 | CACI 1st Quarter Fiscal Year 2017 Conference Call | October 27,
Slide 10: Successful First Quarter of FY17
Successful First Quarter of FY17 Won $1.9 billion of contract awards driving a TTM book-to-bill of 1.3 times • $480 million IDIQ to support counter narcotics and global threats • Five IDIQs with a value of $495 million to provide Intelligence Systems to a classified customer • Successful resolution
Slide 11: Forward Indicators are Strong
Forward Indicators are Strong FY17 Revenue Profile 90% EXISTING 7% RECOMPETES 3% NEW BUSINESS BUSINESS Already well High win rate Quality pipeline funded Backlog of $11.5 billion as of September 30, 2016, up 4.3% sequentially Pipeline of submitted bids totals more than $10.2 billion ~80% for new bus
Slide 12: CEO Closing Comments
CEO Closing Comments Delivered excellent financial results Continued to build our backlog Reiterating FY17 guidance Focused on high value solution business across each of our 11 market areas 12 | CACI 1st Quarter Fiscal Year 2017 Conference Call | October 27, 2016
Slide 13: Definitions of Non-GAAP Measures
Definitions of Non-GAAP Measures The Company views Adjusted EBITDA, Adjusted Net Income and Diluted Adjusted Earnings Per Share, all of which are defined as non-GAAP measures, as important indicators of performance, consistent with the manner in which management measures and forecasts the Company’s
Slide 14: Definitions of Non-GAAP Measures
Definitions of Non-GAAP Measures Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) Adjusted EBITDA is GAAP net income plus interest expense, income taxes, depreciation and amortization, earnout adjustments and other Quarter Ended (dollars in thousands) 9/30/2016 9/30/2015 % Cha
Slide 15: Definitions of Non-GAAP Measures
Definitions of Non-GAAP Measures Adjusted Net Income Adjusted net income is GAAP net income plus stock-based compensation expense, depreciation and amortization, amortization of financing costs, and earnout adjustments, net of related tax effects Quarter Ended (dollars in thousands) 9/30/2016 9/30/2
Slide 16: Definitions of Non-GAAP Measures
Definitions of Non-GAAP Measures Diluted Adjusted Earnings Per Share Diluted adjusted earnings per share is adjusted net income divided by diluted weighted-average shares, as reported Quarter Ended (shares in thousands) 9/30/2016 9/30/2015 % Change Adjusted net income $ 51,522 $ 46,170 11.6% Diluted
Slide 17: Definitions of Non-GAAP Measures TTM Pro Forma Adjusted EBITDA
Definitions of Non-GAAP Measures TTM Pro Forma Adjusted EBITDA Pro forma Adjusted EBITDA is Adjusted EBITDA assuming that the NSS acquisition occurred at the beginning of October 2015, adjusted for certain non-recurring expenses. (Amounts in thousands) 9/30/16 TTM Net income YTD FY16 $ 142,799 Less:
Slide 18: Adoption of New Accounting Rule Regarding Share-based Payments
Adoption of New Accounting Rule Regarding Share-based Payments Quarter ended (Amounts in thousands, except per share amounts) 9/30/2015 12/31/2015 3/31/2016 6/30/2016 Revenue $ 822,442 $ 830,437 $ 977,274 $ 1,113,900 Income from operations $ 64,508 $ 55,482 $ 63,676 $ 81,084 1 Income taxes $ 20,693