Booz Allen Hamilton Holding Corporation · NYSE:BAH
Booz Allen Hamilton — Q2 FY2020 Earnings Presentation
24 slides from Booz Allen Hamilton's earnings presentation, Nov 6, 2019
Slide 1: Investor Presentation November 2019 Fiscal Year 2020 Second Quarter
Investor Presentation November 2019 FISCAL YEAR 2020 SECOND QUARTER Exhibit 99.1
Slide 2: Disclaimer: Forward Looking Safe Harbor Statement
DISCLAIMER Forward Looking Safe Harbor Statement Certain statements contained in this presentation and in related comments by our management include “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Examples of forward-looking statements include
Slide 3: Why Invest in Booz Allen Hamilton
WHY INVEST IN BOOZ ALLEN HAMILTON INVESTMENT THESIS UNIQUE MARKET POSITION STRONG FINANCIAL RETURNS 66% ADEPS GROWTH BY FY21 + ~2% Dividend Yield 6-9% Low 10% Range ~$1.4B Annual Revenue Growth Adj. EBITDA Margins Capital Deployment = + Investments in innovation, talent, and capabilities position us
Slide 4: Booz Allen's Leadership Team
BOOZ ALLEN’S LEADERSHIP TEAM OUR PURPOSE, AS A FIRM, IS TO EMPOWER PEOPLE TO CHANGE THE WORLD Our employees work at 500+ LOCATIONS IN 25+ COUNTRIES ~27,000 Number of employees(1) As of 9/30/2019 As of 3/31/2019 ~29%(2) are Veterans ~66%(2) of staff with security clearances ~85%(2) hold bachelor’s de
Slide 5: An Industry Leader
AN INDUSTRY LEADER BOOZ ALLEN CONTINUES ITS 100+ YEAR HISTORY AS AN INDUSTRY LEADER We bring bold thinking and a desire to be the best in our work in consulting, analytics, digital solutions, engineering, and cyber, focused on agencies ranging from defense to health, energy, and international develo
Slide 6: Comprehensive Suite of Service Offerings
Focuses on delivering transformational solutions in the areas of decision analytics, automation, and data science, as well as new or emerging areas. Combines the power of modern systems development techniques and cloud platforms with machine learning to transform customer and mission experiences. De
Slide 7: Broad Customer Base Spanning U.S. Government, International and Commercial Clients
BROAD CUSTOMER BASE SPANNING THE U.S. GOVERNMENT, INTERNATIONAL AND COMMERCIAL CLIENTS Commercial: Financial Services, Health and Life Sciences, Energy, Transportation International: Middle East, North Africa Region, and Select Asian Markets GLOBAL / COMMERCIAL (3%) U.S. Intelligence Agencies: Natio
Slide 8: Vision 2020 Growth Strategy
VISION 2020 GROWTH STRATEGY CURRENTLY IN ITS SIXTH YEAR OF IMPLEMENTATION, WE’RE IN THE “PAYOFF PERIOD” KEY ELEMENTS OF VISION 2020 IMPACT ON PERFORMANCE – “PAYOFF” Moving closer to the center of our clients’ core mission Increasing the technical content of our work Attracting and retaining superior
Slide 9: Vision 2020 Results
VISION 2020 RESULTS BOOZ ALLEN ANTICIPATES OUR STRONG FINANCIAL PERFORMANCE WILL CONTINUE 1 2016 Net Income benefited from one time release of pre-acquisition income tax reserves assumed by the Company in connection with the acquisition of our Company by The Carlyle Group (1) (1) NET INCOME (IN MILL
Slide 10: Strong Earnings Growth Derivative of Robust Organic Revenue Growth
STRONG EARNINGS GROWTH DERIVATIVE OF ROBUST, ABOVE-MARKET ORGANIC REVENUE GROWTH Gov Services Industry includes Leidos, SAIC, ManTech, CACI, and Engility (through Q3 FY18) Organic growth reflects disclosed commentary (through SEC filing, presentation, or transcript) around organic growth performance
Slide 11: Historical Backlog & Book-to-Bill
HISTORICAL BACKLOG & BOOK-TO-BILL BACKLOG (1) BOOK-TO-BILL TRENDS (2) (2) (3) (3) (3) (3) (4) (4) (4) (4) (4) $20.5 (4) $22.9 (5) (2) (2) (3) (3) (3) (3) (4) (4) (4) (4) (4) (4) 1) For more information on the components of backlog, and the differences between backlog and remaining performance obliga
Slide 12: Delivering Shareholder Value
DELIVERING SHAREHOLDER VALUE POST-RECESSION, BOOZ ALLEN HAS ESTABLISHED A TRACK RECORD OF DEPLOYING CAPITAL TSR as of 9/30/2019 and assumes dividend reinvested – Capital Deployed as of 3/31/2019 CAPITAL DEPLOYED AND TSR PERFORMANCE SINCE IPO : 866%(1) CAPITAL DEPLOYED SINCE IPO(1): ~$3.3B ($B) 9/30/
Slide 13: Quarterly Dividend
QUARTERLY DIVIDEND BOOZ ALLEN HAS AND WILL CONTINUE TO MAKE OUR QUARTERLY DIVIDEND A FOCUS OF OUR INVESTMENT THESIS Quarterly dividend initiated in 2012 In FY’19 we increased our quarterly dividend $0.04 per share (vs. prior increases of $0.02 per share) due to: The fundamental strength in our busin
Slide 14: Quarterly Performance: Q2 FY'20
Quarterly Performance: Q2 fy’20
Slide 15: Key Financial Results: Second Quarter Fiscal Year 2020
KEY FINANCIAL RESULTS SECOND QUARTER FISCAL YEAR 2020 RESULTS (1) Comparisons are to prior fiscal year period SECOND QUARTER (1) FIRST HALF (1) Revenue $1.8 billion 12.7% Increase $3.6 billion 11.8% Increase Revenue, Excluding Billable Expenses $1.3 billion 12.7% Increase $2.6 billion 10.8% increase
Slide 16: Q2 FY'20 Performance: Aligned with Investment Thesis
Q2 FY'20 PERFORMANCE: ALIGNED WITH INVESTMENT THESIS Organic growth in revenue ex-billables of 12.7% year-over-year driven by strong client demand 6.5% year-over-year headcount growth positions firm to continue to execute against record backlog Increased and narrowed full fiscal year revenue guidanc
Slide 17: Capital Allocation
CAPITAL ALLOCATION DELIVERING STRONG CAPITAL RETURNS THROUGH EFFICIENT CAPITAL DEPLOYMENT STRATEGY Multi-year capital deployment plan remains on track, subject to market conditions Deployed ~$33 million during the quarter Reaffirming three-year goal to deploy ~$1.4 billion through fiscal year 2021 $
Slide 18: Appendix
APPENDIX
Slide 19: Non-GAAP Financial Information
NON-GAAP FINANCIAL INFORMATION "Revenue, Excluding Billable Expenses" represents revenue less billable expenses. We use Revenue, Excluding Billable Expenses because it provides management useful information about the Company's operating performance by excluding the impact of costs that are not indic
Slide 20: Non-GAAP Reconciliation Footnotes
(a) Reflects debt refinancing costs incurred in connection with the refinancing transaction consummated on July 23, 2018. (b) Reflects the combination of Interest expense and Other income (expense), net from the condensed consolidated statement of operations. (c) Reflects the adjustments made to the
Slide 21: Non-GAAP Reconciliation Notes
a The use and definition of Non-GAAP financial measurements can be found in the company's public filings b Reflects the combination of Interest expense and Other income (expense), net from the consolidated statement of operations. c Reflects amortization of intangible assets resulting from the acqui
Slide 22: Financial Results – Key Drivers: Second Quarter Fiscal 2020
FINANCIAL RESULTS – KEY DRIVERS Second Quarter Fiscal 2020 – Below is a summary of the key factors driving results for the fiscal 2020 second quarter ended September 30, 2019 as compared to the prior year period: Revenue increased by 12.7% to $1.8 billion driven primarily by sustained strength in cl
Slide 23: Financial Results – Key Drivers: Six Months Ended September 30, 2019
FINANCIAL RESULTS – KEY DRIVERS Six Months Ended September 30, 2019 – Below is a summary of the key factors driving results for the fiscal 2020 six months ended September 30, 2019 as compared to the prior year period: Net cash provided by operating activities was $266.7 million for the six months en
Slide 24: Shareholder and Stock Information
Shareholder and Stock Information Website: investors.boozallen.com Contact Information Investor Relations Nicholas Veasey Vice President of Investor Relations 703/377-5332 Veasey_Nicholas@bah.com Media James Fisher Principal, Media Relations 703/377-7595 Fisher_James_W@bah.com Corporate Governance N
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