Caci International, Inc. · NYSE:CACI
Caci International — Q1 FY2019 Earnings Presentation
17 slides from Caci International's earnings presentation, Nov 1, 2018
Slide 1: CACI International Inc FY2019 First Quarter Earnings Conference Call
CACI INTERNATIONAL INC FY2019 FIRST QUARTER EARNINGS CONFERENCE CALL November 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 c
Slide 3: Presenters
Ken Asbury John Mengucci DeEtte Gray Thomas Mutryn Greg Bradford President and Chief Operating Officer President, U.S. Operations Chief Financial Officer Chief Executive Officer, Chief Executive Officer CACI Limited in the UK 3
Slide 4: Record First Quarter Results
CACI Record First Quarter First Quarter Results Record revenue, net income, and earnings per share More than $2.5 billion of contract awards Raising FY19 guidance for net income Reinforces our confidence in our strategy to deliver organic revenue growth, margin expansion, and shareholder value 4
Slide 5: Current Market Environment: Encouraging Prospects
CURRENT Encouraging Prospects Market Environment Over 75% of nearly $1.3 trillion to be appropriated in the government’s FY19 fiscal year signed into law CACI’s capabilities are in line with government’s long-term national security priorities investment plan: Warfighting Intelligence Homeland securi
Slide 6: Investing in Long-term Growth
INVESTING IN Investing for the Long-term Growth Talent and capabilities Providing additional benefits, training, and certifications for employees Focusing our research and development on emerging technologies to differentiate offerings M&A for growth remains the top priority for capital deployment 6
Slide 7: Financial Results: First Quarter Revenue and Pre-tax Profit
FINANCIAL First Quarter Revenue and Pre-tax Profit Results On-contract growth, new business wins, and acquired contracts $ millions Organic revenue growth of 3.3% Pre-tax income up $35 million driven by: More award fees realized due to adoption of ASC 606 $ millions Additional profit from earlier th
Slide 8: Financial Results: First Quarter Net Income
FINANCIAL First Quarter Net Income Results Driven by pre-tax income increase $ millions Lower tax rate Lower tax rate driven by: Share-based compensation payments ($4 million benefit) Transition tax on foreign cumulative income ($2 million benefit) Corporate-owned life insurance policies, disaster r
Slide 9: Continued Strong Cash Flow Generating Capital
CONTINUED Generating Capital Strong Cash TTM Operating Cash Flow Flow Generated $83 million $350 in operating cash flow Days sales outstanding of 67 days* $300 Net debt/TTM adjusted EBITDA of ~2.3 times $250 $200 *The calculation of Days Sales Outstanding for Q1 FY19 9 excludes amounts related to th
Slide 10: Raising FY19 Net Income Guidance
CACI FY19 Raising FY19 Net Income Guidance Guidance CURRENT PRIOR Revenue $4,700 – $4,900 $4,700 – $4,900 (millions) Effective tax rate now expected be Net Income $250 – $260 $234 – $244 21.7% (GAAP millions) Raising operating cash flow guidance Diluted EPS $9.77 – $10.16 $9.14 – $9.53 from $330 mil
Slide 11: Q1 FY19 Performance: Delivered Record First Quarter
Q1 FY19 Delivered record first quarter Performance Strong start New business wins, existing program expansion, acquired revenue to FY19 Record $2.5 billion in contract awards 2.2 times revenue in the quarter 1.4 times revenue on a trailing twelve month basis Backlog of $13 billion, 17.5% greater tha
Slide 12: Q1 FY19 Performance: Investing in Technology and Solutions
Q1 FY19 Delivered record first quarter Performance Strong start to FY19 Investing in technology and solutions Advanced electronic warfare capabilities Advanced RF Exploitation System (ARES) Open architecture Agility to field capability as fast as threats are identified 12
Slide 13: FY19 Forward Indicators Positive
CACI FY19 Forward Indicators Positive Revenue Profile 92% STRONG Backlog of $13 billion EXISTING BUSINESS Performance Pipeline of submitted bids totals $8.9 billion 4% HIGH Customer ~60% for new business to CACI RECOMPETES Satisfaction Bids expected to be submitted in the next two quarters totals $1
Slide 14: CEO Key Takeaways: Closing Comments
CEO Key Takeaways Closing Comments Investing in growth and employees while continuing to expand margins Business development efforts continue to produce wins focused on solution and fixed price content contracts Our operations are delivering with quality and profitability Generating significant leve
Slide 15: Non-GAAP Measures Definitions
DEFINITIONS Non-GAAP The Company views Adjusted EBITDA and Adjusted EBITDA margin, both of which are defined as non-GAAP Measures measures, as important indicators of performance, consistent with the manner in which management measures and forecasts the Company’s performance. We define Adjusted EBIT
Slide 16: Non-GAAP Measures: Adjusted EBITDA
DEFINITIONS Adjusted Earnings Before Interest, Taxes, Depreciation Non-GAAP and Amortization (Adjusted EBITDA) Measures Adjusted EBITDA is GAAP net income plus interest expense, income taxes, depreciation and amortization, earnout adjustments and other Quarter Ended (dollars in thousands) 9/30/2018
Slide 17: Reconciliation of FY18 Adjusted Net Income Assuming a Full Year of Tax Reform
DEFINITIONS Reconciliation of FY18 Adjusted Net Income Assuming a Non-GAAP Full Year of Tax Reform Measures Q1 Q2 Q3 Q4 YTD 9/30/2017 12/31/2017 3/31/2018 6/30/2018 6/30/2018 Net Diluted Net Diluted Net Diluted Net Diluted Net Diluted (Amounts in thousands, except per share amounts) Income EPS Incom