Leidos Holdings, Inc. · NYSE:LDOS
Leidos — Q3 2022 Earnings Presentation
13 slides from Leidos's earnings presentation, Nov 1, 2022
Slide 1: Leidos Q3 FY22 Earnings Conference Call
Leidos Q3 FY22 Earnings Conference Call November 1, 2022
Slide 2: Forward-Looking Statements
Forward-Looking Statements Certain statements in this presentation contain or are based on "forward-looking" information within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward- looking statements by words such as "expects," "intends," "pla
Slide 3: Non-GAAP Financial Measures
Non-GAAP Financial Measures This presentation includes certain non-GAAP financial measures, such as organic growth, non-GAAP operating income, non- GAAP operating margin, non-GAAP effective tax rate, non-GAAP diluted earnings per share (EPS), adjusted earnings before interest, taxes, depreciation an
Slide 4: CEO Key Messages
CEO Key Messages 1 Strong financial results–ahead of consensus on top and bottom lines ▪ Record revenues on YoY growth of 4% despite FX headwinds ▪ Adjusted EBITDA margin of 10.3% up 10 basis points sequentially ▪ Record operating and free cash flows 2 Deploying capital to create shareholder value ▪
Slide 5: Q3 FY22 Results: Income Statement
Q3 FY22 Results: Income Statement Revenues (M) Adjusted EBITDA Margin (%) Non-GAAP Diluted EPS ($) $3,608 11.6% $1.80 $3,483 10.3% +3.6% -11.7% $1.59 -130 bps Q3 FY21 Q3 FY22 Q3 FY21 Q3 FY22 Q3 FY21 Q3 FY22 5
Slide 6: Q3 FY22 Results: Reporting Segments
Q3 FY22 Results: Reporting Segments Defense Solutions Civil Health $874 $2,009 $2,075 $792 $682 $659 Revenues (M) +10.4% +3.3% (3.4)% Q3 FY21 Q3 FY22 Q3 FY21 Q3 FY22 Q3 FY21 Q3 FY22 11.0% Non-GAAP Op Margin 9.6% 8.8% -70 bps 20.7% 8.1% +140 bps -570 bps 15.0% 6
Slide 7: Q3 FY22 Results: Cash Flow / Balance Sheet
Q3 FY22 Results: Cash Flow / Balance Sheet Record cash flow generation–team focus plus end of gov't fiscal year Cash Flow ▪ Operating cash flow $748M Generation ▪ Free cash flow $721M ▪ Reduced DSOs by 3 days sequentially to 58 Following balanced long-term approach to capital deployment ▪ Total retu
Slide 8: 2022 Guidance
2022 Guidance Current FY22 Guidance Prior Measure Current Prior Revenues (billions) $14.2 - $14.4 $13.9 - $14.3 Adjusted EBITDA Margin 10.3% - 10.5% 10.3% - 10.5% Non-GAAP Diluted EPS $6.20 - $6.40 $6.10 - $6.50 Cash Flows Provided by Operating Activities (billions) at or above $1.0 at or above $1.0
Slide 9: Appendix: Non-GAAP Reconciliations
Appendix: Non-GAAP Reconciliations
Slide 10: Organic Growth
Organic Growth Percent (in millions, except growth rates) Q3 FY22 Q3 FY21 Change Defense Solutions Revenues, as reported $ 2,075 $ 2,009 3% Acquisition and divestiture revenues(1) 8 5 Pro-forma revenues (Organic Growth Rate) $ 2,067 $ 2,004 3% Civil Revenues, as reported $ 874 $ 792 10 % Health Reve
Slide 11: Non-GAAP Income Metrics Reconciliation
Non-GAAP Income Metrics Reconciliation Three Months Ended September 30, 2022 Three Months Ended October 1, 2021 Acquisition, Acquisition, integration and Amortization of integration and Amortization of Asset restructuring acquired Derivative Non-GAAP restructuring acquired impairment Non-GAAP (in mi
Slide 12: Segment Non-GAAP Operating Income Reconciliation
Segment Non-GAAP Operating Income Reconciliation Three Months Ended September 30, 2022 Acquisition, integration and Amortization of Non-GAAP Non-GAAP Operating restructuring acquired operating operating (in millions) income (loss) costs intangibles income (loss) margin(1) Defense Solutions $ 137 $ —
Slide 13: Free Cash Flow
Free Cash Flow Three Months Ended (in millions, except conversion ratio) September 30, 2022 October 1, 2021 Net cash provided by operating activities $ 748 $ 565 Payments for property, equipment and software (27) (24) Free cash flow $ 721 $ 541 Net income attributable to Leidos common stockholders $