Caci International, Inc. · NYSE:CACI
Caci International — Q2 FY2018 Earnings Presentation
16 slides from Caci International's earnings presentation, Feb 1, 2018
Slide 1: CACI International Inc Second Quarter Fiscal Year 2018 Conference Call
CACI International Inc Second Quarter Fiscal Year 2018 Conference Call February 1, 2018 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
Slide 3: Our Participants Today
Our Participants Today Ken Asbury President and Chief Executive Officer John Mengucci Chief Operating Officer Tom Mutryn Chief Financial Officer DeEtte Gray President, U.S. Operations Greg Bradford Chief Executive Officer, CACI Limited in the UK INFORMATION DEPLOYED. SOLUTIONS ADVANCED. MISSIONS ACC
Slide 4: Second Quarter Results
Second Quarter Results Record revenue of $1.09 billion, up 2.9% with 2.4% organic revenue growth Record operating income of $88.3 million, up 10.0%, with an 8.1% operating margin Net income of $142.8 million, $50.5 million excluding the impact of Tax Reform (non-GAAP) versus $42.4 million a year ago
Slide 5: Current Market Positioning
Current Market Positioning Operating under a continuing resolution through February 8th • Short shutdown had no material impact on our financial performance • Need an appropriated budget rather than more CRs Additional cash from Tax Reform provides us an opportunity to increase our investment in our
Slide 6: Second Quarter Revenue and Net Income
Second Quarter Revenue and Net Income Revenue Net Income $1,200.0 $150.0 $142.8 $1,087.9 $125.0 $1,100.0 $1,057.5 $100.0 $ millions $ millions $1,000.0 $75.0 $50.0 $42.4 $900.0 $25.0 $800.0 $0.0 Q2'17 Q2'18 Q2'17 Q2'18 Driven by on-contract Operating income up 10% growth and new business Net income
Slide 7: Continued Strong Cash Flow
Continued Strong Cash Flow Generated $76 million in operating cash flow for the quarter, 151% of net income excluding the impact of Tax Reform Days sales outstanding – 61 days versus 64 days in Q1’18 Net debt of ~$1.1 billion Net debt/TTM adjusted EBITDA of ~2.9 times TTM Operating Cash Flow as a %
Slide 8: Raising FY18 Guidance
Raising FY18 Guidance Current FY18 Guidance Previous FY18 Guidance Excl. Tax Reform FY18 Guidance Revenue (millions) $4,350 - $4,500 $4,350 - $4,500 $4,350 - $4,500 Net Income (millions) $277 - $283 $177 - $183 $171 - $179 Diluted EPS $10.95 - $11.19 $7.00 - $7.23 $6.76 - $7.08 Diluted shares (milli
Slide 9: Successful Second Quarter
Successful Second Quarter Fourth consecutive quarter of positive organic revenue growth • Driven mainly by FY17 new business wins Margin growth the result of efficient performance on several fixed price contracts Contract awards of $1.1 billion, with ~40% for new business to CACI $750 million of con
Slide 10: Notable Awards and Achievements
Notable Awards and Achievements $300 million award to continue providing business systems support to a classified customer New $85 million contract to provide state-of-the-art operational, technical and fielding support to a DoD customer CACI’s Cyber Range test environment certified with ISO 27001 c
Slide 11: Forward Indicators are Strong
Forward Indicators are Strong FY18 Revenue Profile 96% EXISTING 2% RECOMPETES 2% NEW BUSINESS BUSINESS Well funded High win rate Strong pipeline Pipeline of submitted bids totals $6.9 billion ~77% for new business to CACI Bids expected to be submitted in the next two quarters totals another $12.9 bi
Slide 12: CEO Closing Comments
CEO Closing Comments Strong operating performance in the first half of FY18 Our strategy is delivering on long-term goals and shareholder value CACI employees form the foundation that earned us recognition as a Fortune World’s Most Admired Company CACI employees contribute to our growth and drive ou
Slide 13: Definitions of Non-GAAP Measures
Definitions of Non-GAAP Measures The Company views Adjusted EBITDA and Adjusted Net Income, 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 performance. Adjusted EBITDA is a com
Slide 14: Definitions of Non-GAAP Measures
Definitions of Non-GAAP Measures Adjusted 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 Six Months Ended (dollars in thousands)
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 Six Months Ended (dollars in thousands)
Slide 16: Definitions of Non-GAAP Measures
Definitions of Non-GAAP Measures Reconciliation of Net Income and Earnings Per Share to Non-GAAP Net Income and Earnings Per Share to Exclude Tax Reform Net income adjusted for Tax Reform is GAAP net income adjusted to exclude the impact of Tax Reform Reconciliation of Net Income adjusted for Tax Re