Caci International, Inc. · NYSE:CACI
Caci International — Q4 FY22 Earnings Presentation
22 slides from Caci International's earnings presentation, Aug 11, 2022
Slide 1: CACI International Inc Q4 FY22 Earnings Conference Call
CACI International Inc Q4 FY22 Earnings Conference Call August 11, 2022 CACI Proprietary Information CACI Proprietary Information
Slide 2: Forward-looking Statements
Forward-looking Statements There are statements made herein that 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 risk factors that co
Slide 3: On Today's Call
On Today’s Call John Mengucci Thomas Mutryn President and Chief Chief Financial Officer Executive Officer 3 | CACI Proprietary Information CACI Q4 FY22 Earnings Conference Call
Slide 4: CACI Proprietary Information CACI Q4 FY22 Earnings Conference Call
4 | CACI Proprietary Information CACI Q4 FY22 Earnings Conference Call
Slide 5: FY22 Financial Highlights
FY22 Financial Highlights Revenue +3%, positive organic growth Adjusted EBITDA Margin 10.3%1 Robust free cash flow of $695 million1 Contract awards of $7.1 billion, 60% new business to CACI Trailing twelve months (TTM) book-to-bill 1.1x 1 See slides at the end of this presentation for definitions an
Slide 6: External Environment
External Environment Market demand remains strong Continued bipartisan support for national security priorities GFY23 budget seeing increases as it moves through Congress Higher spending in Defense, Intelligence Community (IC), and Homeland Security Higher spending in key areas of focus for CACI, in
Slide 7: Investing Ahead of Need
Investing Ahead of Need Digital Solutions CACI leading in application modernization, Agile @Scale, DevSecOps, open architectures Executing two largest federal Agile programs, strong pipeline of new opportunities Enterprise IT CACI leading in network modernization and Commercial Solutions for Classif
Slide 8: FY23 Guidance Highlights
FY23 Guidance Highlights Revenue growth of between ~4.5% and ~7.5% Adjusted EBITDA Margin1 12.0% Adjusted EBITDA Margin1 in the mid-to-high 10% range 11.5% 11.0% Continued healthy cash flow 10.5% 10.0% Committed to long-term organic 9.5% growth and margin expansion 9.0% Flexible and opportunistic ca
Slide 9: Q4 Financial Summary
Q4 Financial Summary Revenue (Ms) Net Income (Ms) $1,700 $200 $1,642 $1,650 +5% $150 $137 $1,600 $1,564 -32% $93 $1,550 $100 $1,500 $50 $1,450 $1,400 $0 Q4 FY21 Q4 FY22 Q4 FY21 Q4 FY22 Adjusted Net Income 1 (Ms) Organic revenue growth ~2% $200 Technology revenue +6% $150 $149 -28% $107 Adjusted EBIT
Slide 10: FY22 Financial Summary
FY22 Financial Summary Revenue (Ms) Net Income (Ms) $457 -20% $6,500 $500 $6,044 +3% $6,203 $367 $400 $6,000 $300 $5,500 $200 $5,000 $100 $4,500 $0 FY21 FY22 FY21 FY22 Adjusted Net Income 1 (Ms) Positive Organic revenue growth $600 $500 $507 -17% Technology revenue +9% $422 $400 Adjusted EBITDA Marg
Slide 11: Strong Cash Flow
Strong Cash Flow 1,2 Cash Flow1 and CapEx Free Cash Flow (FCF) per Share (millions, TTM) $800 $35.00 $700 $30.00 $600 $25.00 $500 $20.00 $400 $15.00 $300 $10.00 $200 $100 $5.00 $0 $0.00 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23E FY14 to FY19 FY15 to FY20 FY16 to FY21 FY17 to FY22 FY18 to FY2
Slide 12: FY23 Guidance
FY23 Guidance FY23 Guidance Revenue growth of ~4.5% to ~7.5% Revenue Inorganic revenue of ~$180 million $6,475 – $6,675 (millions) or 3 points of growth Adjusted Net Income1 Adjusted EBITDA Margin1 in the (millions) $420 – $440 mid-to-high 10% range 1 Diluted shares outstanding expected Adjusted Dil
Slide 13: FY23 Guidance Assumptions
FY23 Guidance Assumptions Indirect costs and selling expense increase ~6.5% vs. FY22 Excl. fringe on direct labor and recent acquisitions, indirect costs increase ~1% vs. FY22 Depreciation and amortization ~$150 million Net interest expense ~$61 million Tax rate expected to be ~23.5% Expect typical
Slide 14: FY23 Cash Flow
FY23 Cash Flow Ms FY22 Cash from Operations excl. MARPA 1 $770 Method change in FY22 ($190) Method change delayed from FY22 $40 Method change impact in FY23 ($65) Working capital and other ($60) FY23 Cash from Operations excl. MARPA 1,2 $495 FY23 Capital expenditures $80 FY23 Free Cash Flow 1,2 $415
Slide 15: Positive Forward Indicators
Positive Forward Indicators Solid FY22 contract awards of 83% STRONG $7.1 billion Existing Business Performance TTM Book-to-Bill of 1.1x Large backlog of $23.3 billion 11% HIGH Pipeline of submitted bids: $12 billion Recompetes Win Rate ~80% for new business to CACI Bids expected to be submitted in
Slide 16: Solid Execution, Strong Outlook
Solid Execution, Strong Outlook In FY22, we delivered revenue growth, healthy margins, and strong cash flow and free cash flow per share Strong awards, robust backlog and pipeline, and investments position CACI for strong financial performance in FY23 and beyond Bipartisan support continues for nati
Slide 17: Definitions of Non-GAAP Measures
Definitions of Non-GAAP Measures Adjusted net income and Adjusted diluted EPS are non-GAAP performance measures. We define Adjusted net income and Adjusted diluted EPS as GAAP net income and GAAP diluted EPS, respectively, excluding intangible amortization expense and the related tax impact as we do
Slide 18: Reconciliation of Net Income to Adjusted Net Income and Diluted EPS
Reconciliation of Net Income to Adjusted Net Income and Diluted EPS to Adjusted Diluted EPS (Unaudited) (in thousands, except per share data) Three Months Ended Twelve Months Ended 6/30/2022 6/30/2021 % Change 6/30/2022 6/30/2021 % Change Net income, as reported $ 92,969 $ 136,977 -32.1% $ 366,794 $
Slide 19: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income to Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA) (Unaudited) Three Months Ended Twelve Months Ended (in thousands) 6/30/2022 6/30/2021 % Change 6/30/2022 6/30/2021 % Change Net income $ 92,969 $ 136,977 -32.1% $ 366,794 $ 457,4
Slide 20: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income to Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA) (Unaudited) Twelve Months Ended (in thousands) 6/30/2016 6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021 6/30/2022 Net income $ 142,799 $ 163,671 $ 301,171 $ 265,604 $ 321,480
Slide 21: Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow
Reconciliation of Net Cash Provided by Operating Activities to Net Cash Provided by Operating Activities Excluding MARPA and to Free Cash Flow (Unaudited) Three Months Ended Twelve Months Ended (in thousands) 6/30/2022 6/30/2021 6/30/2022 6/30/2021 Net cash provided by operating activities $ 152,541
Slide 22: Reconciliation of Operating Cash Flow to Free Cash Flow per Share
Reconciliation of Net Cash Provided by Operating Activities to Net Cash Provided by Operating Activities Excluding MARPA, to Free Cash Flow, and to Free Cash Flow per share (Unaudited) Twelve Months Ended (in thousands, except per share data) 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/20