Caci International, Inc. · NYSE:CACI
Caci International — Q4 2023 Earnings Presentation
22 slides from Caci International's earnings presentation, Aug 10, 2023
Slide 1: CACI International Inc Q4 FY23 Earnings Conference Call
CACI International Inc Q4 FY23 Earnings Conference Call August 10, 2023 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: FY23 Financial Highlights
FY23 Financial Highlights Revenue +8%, +6% organic 1 EBITDA Margin 10.7% 1 Free cash flow of $282M Contract awards $10.1B, $7.4B of new Trailing twelve months book-to-bill 1.5x 1 See slides at the end of this presentation for definitions and reconciliations of non-GAAP measures. 4 | EXPERTISE and TE
Slide 5: Winning in the Marketplace
Winning in the Marketplace USAF Enterprise IT as-a-Service (EITaaS) Wave 1 $5.7B ceiling Next-gen IT modernization Large Mission Expertise cyber contract for IC customer $2.7B ceiling Next-gen intelligence, network exploitation, and cybersecurity Spectral award from US Navy $1.2B ceiling Next-gen SI
Slide 6: Executing for Our Customers
Executing for Our Customers Army’s Integrated Personnel and Pay System (IPPS-A) Largest PeopleSoft implementation in history Two AI-based software programs for the NGA Enhancing image processing and analysts’ ability to analyze geospatial data Photonics to government and prime customers 16 optical t
Slide 7: Constructive Macro Environment
Constructive Macro Environment Supportive budget growth Monitoring GFY ‘24 budget process CACI well-aligned to modernization and national security priorities 7 | EXPERTISE and TECHNOLOGY For National Security
Slide 8: Value Creation Model
Value Creation Model Predictable Sector-leading Efficient Flexible and organic revenue EBITDA margin management of opportunistic growth supportive working capital and capital of continued capital expenditures deployment investment Free cash flow1 per share growth and shareholder value creation 1 8 |
Slide 9: Financial Summary
Financial Summary Q4 Revenue (Ms) Q4 EPS (GAAP) Q4 Adjusted EPS1 $5.30 $1,703 $4.68 $4.54 $1,642 $3.93 +17% Q4 +4% +19% Q4 FY22 Q4 FY23 Q4 FY22 Q4 FY23 Q4 FY22 Q4 FY23 FY23 Revenue (Ms) FY23 EPS (GAAP) FY23 Adjusted EPS1 $6,703 $16.43 $18.83 $6,203 $15.49 $17.81 FY23 +8% +6% +6% FY22 FY23 FY22 FY23
Slide 10: Sector-Leading EBITDA Margin
Sector-Leading EBITDA Margin 12% 1 11% 10.7% 10.4% 10% 9.8% 9% 8.5% 8% 7.4% 7% 6% CACI Company 1 Company 2 Company 3 Company 4 Reported Adjusted EBITDA Margin Unadjusted EBITDA Margin 1 See slides at the end of this presentation for definitions and reconciliations of non-GAAP measures. Company Repor
Slide 11: Cash Flow and Notable Cash Tax Impacts
Cash Flow and Notable Cash Tax Impacts FY20 FY21 FY22 FY23 FY24E1,2 $695 $537 $439 $400 Notable Cash Tax $282 Impacts, Total (Ms) $143 Free Cash Flow (Ms)1 $41 ($37) ($35) ($222) Cares Act Payroll Tax Deferral 41 53 (47) (47) – Method Change Tax Elections – (90) 190 (80) 40 Section 174 R&D – – – (95
Slide 12: Flexible and Opportunistic Capital Deployment
Flexible and Opportunistic Capital Deployment Internal Capital Returns Strategic M&A Investments to Shareholders $750 million share repurchase program authorization Executed $250 million accelerated share repurchase (ASR) Opportunistically repurchased additional shares in open market Healthy long-te
Slide 13: FY24 Guidance
FY24 Guidance FY24 Guidance Revenue $7,000 – $7,200 Revenue growth of ~4.5% to ~7.5% (millions) Adjusted Net Income1 $440 – $465 EBITDA Margin1 in the high 10% range (millions) Diluted shares outstanding expected to 1 Adjusted Diluted EPS $19.13 – $20.22 be ~23.0 million Free Cash Flow1,2 At least $
Slide 14: FY24 Guidance Assumptions
FY24 Guidance Assumptions Depreciation and amortization ~$145 million Net interest expense ~$100 million Effective tax rate between 23% and 24% Expect quarterly sequential increase in revenue and profitability 14 | EXPERTISE and TECHNOLOGY For National Security
Slide 15: FY23 to FY24 Cash Flow Walk
FY23 to FY24 Cash Flow Walk ~ At least FY23 CARES Act Method change Section 174 Higher FY24 profit, FY24 Capex FY24 Cash from repayment not (no recurrence in (lower than offset by higher Cash from Free Cash Flow1 Operations recurring FY24 and refund FY23) interest expense, Operations excl. MARPA1 in
Slide 16: Positive Forward Indicators
Positive Forward Indicators Q4 FY23 contract awards of $10.1 billion ~84% STRONG TTM Book-to-Bill of 1.5x Existing Business Performance Weighted average duration ~6 years Backlog of $25.8 billion, +11% YoY ~10% HIGH ~4 years of annualized revenue Recompetes Win Rate Pipeline of submitted bids: $11 b
Slide 17: Value Creation Model
Value Creation Model Predictable Sector-leading Efficient Flexible and organic revenue EBITDA margin management of opportunistic growth capital capital deployment Differentiated Managing costs Working capital Share repurchases capabilities Investing ahead Capex M&A Enduring funding of need streams C
Slide 18: Executing Our Strategy
Executing Our Strategy Winning in the market, growing backlog, healthy pipeline Delivering innovative next generation technology and differentiated expertise Driving growth in free cash flow per share and shareholder value Talented, innovative, committed employees driving customer and CACI success 1
Slide 19: 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 20: Reconciliation of Net Income to Adjusted Net Income and Adjusted 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 Twelve Months Ended 6/30/2023 6/30/2022 % Change 6/30/2023 6/30/2022 % Change Net income, as reported $ 107,767 $ 92,969 15.9% $ 384,735 $
Slide 21: Reconciliation of Net Income to EBITDA
Reconciliation of Net Income to Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) (Unaudited) Three Months Ended Twelve Months Ended (in thousands) 6/30/2023 6/30/2022 % Change 6/30/2023 6/30/2022 % Change Net income $ 107,767 $ 92,969 15.9% $ 384,735 $ 366,794 4.9% Plus: Incom
Slide 22: Reconciliation of Operating Cash Flow 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) Three Months Ended Twelve Months Ended (in thousands) 6/30/2023 6/30/2022 6/30/2023 6/30/2022 Net cash provided by operating activities $ 152,102