Caci International, Inc. · NYSE:CACI
Caci International — Q3 FY2017 Earnings Presentation
16 slides from Caci International's earnings presentation, May 4, 2017
Slide 1: CACI International Inc Third Quarter Fiscal Year 2017 Conference Call
CACI International Inc Third Quarter Fiscal Year 2017 Conference Call May 4, 2017 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 Tom Mutryn Chief Financial Officer John Mengucci Chief Operating Officer and President, U.S. Operations Greg Bradford Chief Executive Officer, CACI Limited in the UK INFORMATION DEPLOYED. SOLUTIONS ADVANCED. MISSIONS ACCOMPLISHE
Slide 4: Third Quarter Highlights
Third Quarter Highlights Record revenue, up 11%; net income up 18%; diluted EPS up 17% Record third quarter contract awards of $1.4 billion – 5th consecutive quarter of awards greater than $1 billion Operating cash flow of $81 million – Investing to support organic and acquired growth Raised FY17 gu
Slide 5: Current Market Dynamics
Current Market Dynamics Omnibus appropriations bill expected to pass by Friday Stated priorities for government’s Fiscal Year 2018 align well with CACI’s position in the marketplace – Have minimal exposure to agencies that may be potential bill payers Remain confident in the health of our core marke
Slide 6: Third Quarter Revenue and Operating Income
Third Quarter Revenue and Operating Income Revenue Operating Income $1,200.0 $70.0 $1,086.4 $67.3 $1,100.0 $63.7 $65.0 $977.3 $ millions $1,000.0 $ millions $60.0 $900.0 $55.0 $800.0 $700.0 $50.0 Q3'16 Q3'17 Q3'16 Q3'17 NSS revenue of $88 million NSS contribution (January only) Strong program perfor
Slide 7: Third Quarter Net Income
Third Quarter Net Income Net Income $42.0 $40.4 $40.0 $38.0 $ millions $36.0 $34.1 $34.0 $32.0 $30.0 Q3'16 Q3'17 NSS contribution Program performance R&D tax credits of $3.9 million for FY16 and FY17 7 | CACI 3rd Quarter Fiscal Year 2017 Conference Call | May 4, 2017
Slide 8: Continued Strong Cash Flow
Continued Strong Cash Flow Generated $81 million in operating cash flow for the quarter, 200% of net income Net debt of ~$1.2 billion Net debt/TTM adjusted EBITDA of ~3.3 times Days sales outstanding – 58 days versus 64 days in Q3’16 $400 TTMTTM Operating Cash Flow as a %TTM Net Income (right scale)
Slide 9: Raising FY17 Guidance
Raising FY17 Guidance Current Previous FY17 Guidance FY17 Guidance Revenue (millions) $4,275 - $4,350 $4,150 - $4,300 Net Income (millions) $157 - $163 $155 - $162 Diluted EPS $6.25 - $6.49 $6.18 - $6.45 Diluted shares (millions) 25.1 25.1 FY17 revenue expected to be 14% to 16% above FY16 revenue FY
Slide 10: Successful Third Quarter of FY17
Successful Third Quarter of FY17 Record $1.4 billion of contract awards driving a TTM book-to-bill of 1.5 times Fifth consecutive quarter with awards over $1 billion $1.1 billion of contract funding orders Backlog now $11.8 billion, or about 3 years of revenue on a TTM basis 10 | CACI 3rd Quarter Fi
Slide 11: Forward Indicators are Strong
Forward Indicators are Strong FY17 Revenue Profile 99% EXISTING 1% RECOMPETES NO NEW BUSINESS BUSINESS Already well High win rate Quality pipeline funded looking forward Pipeline of submitted bids totals more than $14.1 billion ~90% for new business to CACI Bids expected to be submitted in the next
Slide 12: CEO Closing Comments
CEO Closing Comments Pleased with performance this fiscal year Seeing the results of having relevant solutions and capabilities to meet the current and emerging requirements of our customers Performance coupled with new administration’s focus on increasing national security and intelligence posture
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 Nine 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 Nine Months Ended (dollars in thousands
Slide 16: Adoption of New Accounting Rule Regarding Share-based Payments
Adoption of New Accounting Rule Regarding Share-based Payments Quarter ended (Amounts in thousands, except per share amounts) 9/30/2015 12/31/2015 3/31/2016 6/30/2016 Revenue $ 822,442 $ 830,437 $ 977,274 $ 1,113,900 Income from operations $ 64,508 $ 55,482 $ 63,676 $ 81,084 1 Income taxes $ 20,693