Caci International, Inc. · NYSE:CACI
Caci International — Q2 FY2015 Earnings Presentation
16 slides from Caci International's earnings presentation, Jan 29, 2015
Slide 1: Second Quarter Fiscal Year 2015 Conference Call
CACI International Inc Second Quarter Fiscal Year 2015 Conference Call January 29, 2015 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: Highlights
Highlights Record contract awards in the quarter Net income in line with expectations Reiterating Fiscal Year ’15 Annual Guidance 4 | CACI 2nd Quarter Fiscal Year 2015 Conference Call | January 29, 2015
Slide 5: Dynamics Shaping Our Business
Dynamics Shaping Our Business Most contract awards occurred at the end of the first and second quarters • At the end of the government’s fiscal year (September) • After signing of appropriations bill (December) Experiencing protests by unsuccessful incumbents Transition of Congress and new Secretary
Slide 6: CACI's Positioning in the Market
CACI’s Positioning in the Market Demand for our solutions and services is growing Customers increasingly choosing CACI • Record amount of first half awards • Significant increase in total backlog Will continue to execute our strategy 6 | CACI 2nd Quarter Fiscal Year 2015 Conference Call | January 29
Slide 7: Second Quarter Results
Second Quarter Results Revenue Net Income $950 $40.0 $894 $35.0 $900 $35.0 Millions Millions $30.0 $850 $815 $24.6 $25.0 $800 $20.0 $750 $15.0 $700 $10.0 Q2'14 Q2'15 Q2'14 Q2'15 Decrease driven primarily by: Reflects $11M net income reduction • Higher direct labor more due to OPM ramp-up activity th
Slide 8: Six3 Systems, Inc. Acquisition
Six3 Systems, Inc. Acquisition Generated $91 million in the second quarter 5% accretive to GAAP EPS and 13% accretive to diluted adjusted EPS in CY14 Will be reporting and discussing results on an integrated, combined basis going forward 8 | CACI 2nd Quarter Fiscal Year 2015 Conference Call | Januar
Slide 9: Strong Cash Flow
Strong Cash Flow Generated $93 million in operating cash flow in 1st half; ($18) million in operating cash flow in Q2 Days sales outstanding – 67 days versus 61 days in Q1 $400 TTM Free Cash Flow Per 12 Share (right scale) $ millions (except per share data) $350 10 $300 8 $250 6 $200 4 $150 TTM Free
Slide 10: Reiterating FY15 Guidance
Reiterating FY15 Guidance FY15 Guidance Revenue (millions) $3,300 – $3,600 Net income (millions) $125 – $135 Diluted EPS $5.14 – $5.56 Diluted shares (millions) 24.3 FY15 revenue expected to be -7% to 1% versus FY14 FY15 net income expected to be -8% to 0% versus FY14 FY15 diluted EPS expected to be
Slide 11: Key Guidance Assumptions
Key Guidance Assumptions We expect: Direct labor to be high single digit percent increase over FY14; ODCs to be high teen percent decrease from FY14 Indirect costs and selling expenses 1% to 3% higher than FY14 Depreciation and amortization of ~ $66 million Operating margin to be slightly below last
Slide 12: Contract Awards
Contract Awards $1.9 billion in contract awards in the second quarter, 162% higher than last year • About 50% of the awards are for new business for CACI Delay of contract awards on new work and protests on new work delaying revenue for several months Offsets to delays, CACI’s continued focus on ope
Slide 13: CACI Well-Positioned
CACI Well- Positioned Creating synergies from the Six3 acquisition Added almost 1,300 employees in first half of FY15 for the OPM contract work • Steady progress in ramping up this program $571 million in contract funding orders Total Backlog: $9.8 billion, up 29% over December 2013 Solid leading in
Slide 14: Confidence in our FY15 Plan
Confidence in our FY15 Plan FY15 Planned Revenue as of: Q2, FY15 94% EXISTING BUSINESS 2% 4% RECOMPETES NEW BUSINESS 88% currently funded Initial Guidance 70% 15% 15% EXISTING BUSINESS RECOMPETES NEW BUSINESS Percentages based on mid-point of annual guidance 14 | CACI 2nd Quarter Fiscal Year 2015 Co
Slide 15: CEO Closing Comments
CEO Closing Comments Progress in first half positions us for the next six months Awards and backlog validate business development investments Contract funding orders reflect continued delivery of operational excellence 15 | CACI 2nd Quarter Fiscal Year 2015 Conference Call | January 29, 2015
Slide 16: Definitions of Non-GAAP Measures
Definitions of Non-GAAP Measures Trailing twelve month (TTM) free cash flow is TTM cash flow from operations less TTM capital expenditures. TTM free cash flow per share is TTM free cash flow divided by TTM diluted share count. EBITDA is GAAP net income plus net interest expense, income taxes, and de