Caci International, Inc. · NYSE:CACI
Caci International — Q3 2024 Earnings Presentation
20 slides from Caci International's earnings presentation, Apr 25, 2024
Slide 1: Q3 FY24 Earnings Conference Call
CACI International Inc Q3 FY24 Earnings Conference Call April 25, 2024 EXPERTISE and TECHNOLOGY for National Security
Slide 2: Forward-looking Statements
Forward-looking Statements There are statements made herein that 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 risk factors that cou
Slide 3: On Today's Call
On Today’s Call John Mengucci Jeff MacLauchlan President and Chief Financial Officer Chief Executive Officer 3 | EXPERTISE and TECHNOLOGY for National Security
Slide 4: Q3 Highlights and Value Creation Model
Q3 Highlights and Value Creation Model Predictable Profitability Efficient Flexible and organic revenue supportive management of opportunistic growth of continued working capital and capital investment capital expenditures deployment 11% Q3 revenue 11.3% Q3 $102 million Strong financial growth (10%
Slide 5: Macro Environment
Macro Environment GFY ‘24 budget and supplemental passed GFY ‘24 budget and GFY ’25 proposal in-line with expectations National security and modernization investment remains a key priority Clear demand signals driven by world events CACI intentionally well-aligned to key customer priorities 5 | EXPE
Slide 6: Key Elements of Our Strategy
Key Elements of Our Strategy Focus on key Leverage Bid less, win Invest ahead Deploy capital in enduring software to more, and of need to a flexible and priorities for rapidly address prioritize larger, develop opportunistic national security critical needs longer-duration differentiated manner and
Slide 7: National Security and IT Modernization
National Security and IT Modernization Leveraging Software to Address Enduring Priorities Dominate the IT & Software Development Spectral Electromagnetic Spectrum @Scale Navy’s next-gen SIGINT/EW Received first order from IT supporting missions of weapon system that adapts as Canada for BEAM™ C-UAS
Slide 8: Business Development
Business Development Bid Less, Win More, and Focus on Larger, Longer-Duration Opportunities $3.5 billion Record backlog Robust pipeline of Q3 awards of $28.6 billion of new opportunities Weighted-average duration of Nearly 4 years of Supports disciplined YTD awards well above 5 years annualized reve
Slide 9: Investing Ahead of Need
Investing Ahead of Need Flexible and Opportunistic Capital Deployment Invest to Develop U.K. Acquisition U.S. Acquisition Differentiated Capabilities Software Digital Application Modernization SIGINT/EW Digital Transformation focused on Intelligence Photonics Community Customers AI …and more 9 | EXP
Slide 10: Summary
Summary Strong Q3 financial performance, accelerating growth Raising FY24 guidance Executing our strategy and winning in the marketplace Healthy demand, CACI well-positioned Focused on driving free cash flow per share growth and shareholder value 10 | EXPERTISE and TECHNOLOGY for National Security
Slide 11: Q3 Financial Summary
Q3 Financial Summary Strong Performance Strong Organic Healthy EBITDA1 Adjusted EPS1 Free Cash Flow1 Revenue growth margin +17% YoY of $102 million 10.2% YoY 11.3% EBITDA Higher operating DSO of organic growth margin1, up 200 bps income 50 days (11.1% total growth) sequentially Lower share count Tim
Slide 12: Flexible and Opportunistic Capital Deployment
Flexible and Opportunistic Capital Deployment Internal Capital Returns Strategic M&A Investments to Shareholders Strong balance sheet (2.0x leverage1) Healthy cash flow business, access to capital $337 million of original $750 million share repurchase program authorization remaining M&A pipeline exp
Slide 13: Raising FY24 Guidance
Raising FY24 Guidance Updated Guidance Prior Guidance Revenue growth of 11.9% to 13.4% (organic growth 11.3% to 12.8%) Revenue $7,500 – $7,600 $7,300 – $7,500 EBITDA margin in “high 10% range” (millions) (“underlying”, excl. $200M of materials in 1H); Adjusted now expect to be about 10.7% Net Income
Slide 14: Positive Forward Indicators
Positive Forward Indicators Long-term Visibility into our Business Q3 FY24 contract awards of $3.5 billion ~98% STRONG TTM Book-to-Bill of 1.5x Existing Business Performance YTD weighted avg. duration of ~5.5 years Record backlog of $29 billion, +13% YoY ~1% HIGH ~4 years of annualized revenue Recom
Slide 15: Closing
Closing Strong Q3 results Raising guidance for Fiscal Year 2024 Successfully executing our strategy Driving visibility, long-term growth, increasing free cash flow per share, and shareholder value Talented, innovative, dedicated employees driving customer and CACI success 15 | EXPERTISE and TECHNOLO
Slide 16: Appendix
Appendix 16 | EXPERTISE and TECHNOLOGY For National Security
Slide 17: Definitions of Non-GAAP Measures
Definitions of Non-GAAP Measures Adjusted net income and Adjusted diluted EPS are non-GAAP performance measures. We define Adjusted net income and Adjusted diluted EPS as GAAP net income and GAAP diluted EPS, respectively, excluding intangible amortization expense and the related tax impact as we do
Slide 18: Reconciliation of Net Income to Adjusted Net Income and Diluted EPS
Reconciliation of Net Income to Adjusted Net Income and Diluted EPS to Adjusted Diluted EPS (Unaudited) (in thousands, except per share data) Three Months Ended Nine Months Ended 3/31/2024 3/31/2023 % Change 3/31/2024 3/31/2023 % Change Net income, as reported $ 115,350 $ 100,742 14.5% $ 285,267 $ 2
Slide 19: Reconciliation of Net Income to EBITDA
Reconciliation of Net Income to Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) (Unaudited) Three Months Ended Nine Months Ended (in thousands) 3/31/2024 3/31/2023 % Change 3/31/2024 3/31/2023 % Change Net income $ 115,350 $ 100,742 14.5% $ 285,267 $ 276,968 3.0% Plus: Income
Slide 20: Reconciliation of Net Cash from Operating Activities to Free Cash Flow
Reconciliation of Net Cash Provided by Operating Activities to Net Cash Provided by Operating Activities Excluding MARPA and to Free Cash Flow (Unaudited) 20 | EXPERTISE and TECHNOLOGY for National Security These non-GAAP measures should not be considered in isolation or as a substitute for financia