Caci International, Inc. · NYSE:CACI
Caci International — Q4 FY2018 Earnings Presentation
21 slides from Caci International's earnings presentation, Aug 16, 2018
Slide 1: FY2018 Fourth Quarter Earnings Conference Call
CACI INTERNATIONAL INC FY2018 FOURTH QUARTER EARNINGS CONFERENCE CALL August 16, 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 CACI Proprietary Information
Slide 4: Pride In Our Team: Secretary of Defense Medal for Valor
Pride Secretary of Defense Medal for Valor In Our Team Awarded to CACI’s Michael Dunne and Brandon Seabolt for heroic actions in support of U.S. military operations Recognizes government employees and private citizens who perform an act of heroism or sacrifice while risking personal safety in the fa
Slide 5: Record Quarter and Fiscal Year Fourth Quarter Results
CACI Record Quarter and Fiscal Year Fourth Quarter Results Record annual revenue, operating income, net income and cash from operations More than $1.5 billion of contract awards and $5.2 billion for the year EBITDA margin expansion beyond 10-30 basis points in FY18 Raising FY19 guidance for revenue
Slide 6: Investing for the Long-term Growth
INVESTING IN Investment for the Long-term Growth People: enhancing benefits to attract and retain our talent Research and development: investing in cutting edge technologies Partnerships: investing in long-term relationships with key technology providers M&A: growth acceleration 6 CACI Proprietary I
Slide 7: M&A Remains Our Priority for Capital Deployment
M&A Remains Our Investment for the Long-term Priority for Capital Deployment Added several high-value companies to our business in fiscal 2018 Navy Systems Engineering business Meets all elements of our M&A strategy Premier engineering and lifecycle support provider Long-term, multi-decade investmen
Slide 8: Current Market Environment Encouraging Prospects
CURRENT Encouraging Prospects Market Environment Strong award flow during the June quarter Expect to see continued strong awards in the September quarter CACI’s capabilities are in line with government’s long-term investment plan: Warfighting Intelligence Homeland security capabilities Modernization
Slide 9: Financial Results: Fourth Quarter Revenue and Net Income
FINANCIAL Fourth Quarter Revenue and Net Income Results Revenue $1,250.0 $1,170.1 $1,150.0 $1,134.7 On-contract growth and new business wins $ millions $1,050.0 Organic revenue growth of 2.1% $950.0 $850.0 Q4 `17 Q4 `18 Net Income $55.0 $51.8 Strong program performance $50.0 offsetting investments i
Slide 10: Continued Strong Cash Flow Generating and Deploying Capital
CONTINUED Generating and Deploying Capital Strong Cash Flow $400 250% Generated $325 million TTM Operating Cash Flow as a % of TTM Net Income in operating cash flow Excluding the Impact of Tax Reform (right scale) $350 200% Days sales outstanding of 60 days $300 150% Deployed ~$160 million of capita
Slide 11: Comparing FY18 with Tax Reform with FY19
COMPARING Assuming Tax Reform for all of FY18 FY18 with Tax Reform with FY19 We estimate net income of $232 million Assumes that the new tax rate was in place throughout FY18 Estimate excludes the impact of the revaluation of our deferred tax liability and tax on cumulative foreign earnings (See cha
Slide 12: Raising FY19 Guidance
CACI FY19 Raising FY19 Guidance Guidance CURRENT PRIOR Revenue $4,700 – $4,900 $4,550 – $4,750 (millions) Net Income $234 – $244 $230 – $240 (GAAP millions) FY19 operating cash flow now expected to be at least $330 million Diluted EPS $9.14 – $9.53 $8.98 – $9.38 Diluted Shares No change 25.6 (millio
Slide 13: Increasing CACI's Support to U.S. Navy Shipbuilding
M&A Increasing CACI’s Support to U.S. Navy Shipbuilding Navy Systems Engineering Purchase price of $84 million Business Expected to add $150 million in revenue and $4 million of net income in FY19 EBITDA margins expected to be in line with CACI’s base business Approximately $1.5 million of one-time
Slide 14: FY18 Record Year Builds Base for Long-term Performance
FY18 Record year builds base for long-term Performance Lays Foundation New business wins and existing program expansion for FY19 $5.2 billion in contract awards, with $1.5 billion in the quarter AWS Premier Consulting Partner Agile Solution Factory investment ISO 20000 certification in IT services m
Slide 15: FY18 Record Year: Investing in Technology and Solutions
FY18 Record year builds base for long-term Performance Lays Foundation Investing in technology and solutions for FY19 Counter-UAS technologies – encouraging developments Advanced electronic warfare capabilities Space situational awareness and asset tasking Dr. J.P. (Jack) London Shared Services Cent
Slide 16: FY19 Forward Indicators Positive
CACI FY19 Forward Indicators Positive Revenue Profile 81% STRONG Backlog of $11.3 billion EXISTING BUSINESS Performance Pipeline of submitted bids totals $8.2 billion 12% HIGH ~60% for new business to CACI RECOMPETES Win Rate Bids expected to be submitted in the next two quarters totals $13.1 billio
Slide 17: 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 18: 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 19: Non-GAAP Measures: Adjusted EBITDA
DEFINITIONS Adjusted Earnings Before Interest, Taxes, Depreciation Non-GAAP and Amortization (EBITDA) Measures Adjusted EBITDA is GAAP net income plus interest expense, income taxes, depreciation and amortization, earnout adjustments and other Quarter Ended Twelve Months Ended (dollars in thousands)
Slide 20: Reconciliation of Net Income and EPS Excluding Tax Reform
DEFINITIONS Reconciliation of Net Income and Earnings per Share to Non-GAAP Non-GAAP Net Income and Earnings per Share to Exclude Measures Tax Reform Net income adjusted for Tax Reform is GAAP net income adjusted to exclude the impact of Tax Reform Three Months Twelve Months (Amounts in thousands, e
Slide 21: Reconciliation of FY18 Adjusted Net Income Assuming 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