Booz Allen Hamilton Holding Corporation · NYSE:BAH
Booz Allen Hamilton — Q3 FY2020 Earnings Presentation
24 slides from Booz Allen Hamilton's earnings presentation, Feb 7, 2020
Slide 1: Investor Presentation Fiscal Year 2020 Third Quarter
Investor Presentation FEBRUARY 20 20 FISCAL YEAR 2020 THIRD QUARTER
Slide 2: Disclaimer: Forward Looking Safe Harbor Statement
2 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 i
Slide 3: Why Invest in Booz Allen Hamilton
3 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 pos
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 4 Our employees work at 500+ LOCATIONS IN 25+ COUNTRIES ~27,200 Number of employees (3) 1) Effective 4/1/20 2) Effective until 3/31/20 ~29% (4) are Veterans ~66% (4) of staff with security clearances ~85% (
Slide 5: An Industry Leader
AN INDUSTRY LEADER BOOZ ALLEN CONTINUES ITS 100+ YEAR HISTORY AS AN INDUSTRY LEADER 5 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 deve
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 7 • Commercial: Financial Services, Health and Life Sciences, Energy, Transportation • International: Middle East, North Africa Region, and Select Asian Markets GLOBAL / COMMERCIAL (4%) • U.S. Intelligence Agencie
Slide 8: Vision 2020 Growth Strategy
VISION 2020 GROWTH STRATEGY CURRENTLY IN ITS SEVENTH YEAR OF IMPLEMENTATION, WE’RE IN THE “PAYOFF PERIOD” 8 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 retainin
Slide 9: Vision 2020 Results
VISION 2020 RESULTS BOOZ ALLEN ANTICIPATES OUR STRONG FINANCIAL PERFORMANCE WILL CONTINUE 9 $233 $294 $261 $302 $419 FY15 FY16 FY17 FY18 FY19 $1.52 $1.94 $1.72 $2.03 $2.91 FY15 FY16 FY17 FY18 FY19 1 2016 Net Income benefited from one time release of pre - acquisition income tax reserves assumed by t
Slide 10: Strong Earnings Growth
STRONG EARNINGS GROWTH DERIVATIVE OF ROBUST, ABOVE - MARKET ORGANIC REVENUE GROWTH 10 $524 $506 $569 $584 $675 $1.60 $1.65 $1.80 $1.99 $2.76 $450 $500 $550 $600 $650 $700 FY15 FY16 FY17 FY18 FY19 $1.50 $1.90 $2.30 $2.70 $3.10 Adj. EBITDA ADEPS (3.7%) 2.5% 7.1% 5.2% 8.7% (13.7%) (3.5%) (1.3%) 0.5% 4.
Slide 11: Historical Backlog & Book-to-Bill
11 HISTORICAL BACKLOG & BOOK - TO - BILL (1) For more information on the components of backlog, and the differences between backlog and remaining performance obligations, please see the Company's Form 10 - K for the fiscal year ended 3/31/19 (2) Revenue as reported under ASC 605 (3) Revenue as adjus
Slide 12: Delivering Shareholder Value
$0.0 $200.0 $400.0 $600.0 $800.0 $1,000.0 $1,200.0 $1,400.0 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 Quarterly Div. Special Div. Share Repo M&A DELIVERING SHAREHOLDER VALUE POST - RECESSION, BOOZ ALLEN HAS ESTABLISHED A TRACK RECORD OF DEPLOYING CAPITAL 12 1) TSR as of 12/31/20
Slide 13: Quarterly Dividend
QUARTERLY DIVIDEND BOOZ ALLEN HAS AND WILL CONTINUE TO MAKE OUR QUARTERLY DIVIDEND A FOCUS OF OUR INVESTMENT THESIS 13 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 ou
Slide 14: Quarterly Performance: Q3 FY'20
QUARTERLY PERFORMANCE: Q3 FY’20
Slide 15: Key Financial Results: Third Quarter Fiscal Year 2020
15 KEY FINANCIAL RESULTS THIRD QUARTER FISCAL YEAR 2020 RESULTS (1) Comparisons are to prior fiscal year period THIRD QUARTER (1) YEAR TO DATE (12/31/19) (1) Revenue $1.8 billion 11.2% Increase $5.5 billion 11.6% Increase Revenue, Excluding Billable Expenses $1.2 billion 8.3% Increase $3.8 billion 1
Slide 16: Q3 FY'20 Performance: Aligned with Investment Thesis
16 Q 3 FY'20 PERFORMANCE: ALIGNED WITH INVESTMENT THESIS – Organic growth in revenue ex - billables of 8.3% year - over - year driven by strong client demand – 5.3% year - over - year headcount growth positions firm to continue to execute against near - record backlog – Increased and narrowed full f
Slide 17: Capital Allocation
17 CAPITAL ALLOCATION DELIVERING STRONG CAPITAL RETURNS THROUGH EFFICIENT CAPITAL DEPLOYMENT STRATEGY – Multi - year capital deployment plan remains on track, subject to market conditions – Deployed ~$61 million during the quarter – Reaffirming three - year goal to deploy ~$1.4 billion through fisca
Slide 18: Appendix
18 APPENDIX
Slide 19: Non-GAAP Financial Information
19 NON - GAAP FINANCIAL INFORMATION ⦁ "Revenue, Excluding Billable Expenses" represents revenue less billable expenses. We use Revenue, Excluding Billable Expense s because it provides management useful information about the Company's operating performance by excluding the impact of costs tha t are
Slide 20: Non-GAAP Reconciliation Footnotes
20 (a) Fiscal 2020 and fiscal 2019 reflect debt refinancing costs incurred in connection with the refinancing transactions consummated on November 26, 2019 and July 23, 2018, respectively. (b) Reflects the combination of Interest expense and Other income (expense), net from the condensed consolidate
Slide 21: Unaudited Non-GAAP Financial Information
21 Unaudited Non-GAAP Financial Information (a) $ in thousands, except for shares and per share data FY2015 FY2016 FY2017 FY2018 FY2019 Revenue, Excluding Billable Expenses Revenue 5,274,770$ 5,405,738$ 5,809,491$ 6,167,600$ 6,704,037$ Billable Expenses 1,406,527 1,513,083 1,751,077 1,861,312 2,004,
Slide 22: Financial Results – Key Drivers: Third Quarter Fiscal 2020
22 FINANCIAL RESULTS – KEY DRIVERS Third Quarter Fiscal 2020 – Below is a summary of the key factors driving results for the fiscal 2020 third quarter ended December 31, 2019 as compared to the prior year period: • Revenue increased by 11.2% to $1.8 billion driven primarily by sustained strength in
Slide 23: Financial Results – Key Drivers: Nine Months Ended December 31, 2019
23 FINANCIAL RESULTS – KEY DRIVERS Nine Months Ended December 31, 2019 – Below is a summary of the key factors driving results for the fiscal 2020 nine months ended December 31, 2019 as compared to the prior year period: • Net cash provided by operating activities was $366.5 million for the nine mon
Slide 24: Shareholder and Stock Information
SHAREHOLDER AND STOCK INFORMATION 24 • 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 - C
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