Booz Allen Hamilton Holding Corporation · NYSE:BAH
Booz Allen Hamilton — Q1 FY2019 Earnings Presentation
33 slides from Booz Allen Hamilton's earnings presentation, Aug 7, 2018
Slide 1: Investor Presentation: Fiscal Year 2019 First Quarter
Investor Presentation AUGUST 2018 Fiscal Year 2019 first Quarter Exhibit 99.1
Slide 2: 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: Investment thesis
UNIQUE MARKET POSITION Investment thesis 50% ADEPS Growth (+~2% Dividend Yield) OPTION VALUE STRONG FINANCIAL RETURNS = + ~$2 3-year goals: ADEPS ADEPS 6–9% 10–30 bps ~$1.4B Annual Revenue Growth Margin Expansion Capital Deployment, Incl Dividends ~$3 FY18 FY21
Slide 4: A leader with a proud history: Company Overview
A leader with a proud history Company Overview We are a global firm of approximately 24,600 diverse, passionate, and exceptional people driven to excel, do right, and realize positive change in everything we do. We bring bold thinking and a desire to be the best in our work in consulting, analytics,
Slide 5: Company history
Company history 1914 1940 1949 1987 1992 1996 2001 2008 2010 2012 2013 2014 2015 2016 Founded by Edwin Booz in Chicago Received NASA space station contract (first contract over $100M) Supported GSA in overhauling its telecommunications network (largest contract to date at that time at $620M) Spin-of
Slide 6: Service offerings
Service offerings Digital Solutions Engineering Analytics Directed Energy Machine Intelligence Engineering delivers engineering services and solutions to define, develop, implement, sustain, and modernize complex physical systems. Cyber focuses on active prevention, detection, and cost effectiveness
Slide 7: Growth strategy
Growth strategy Key Elements Moving closer to the center of our clients’ core mission Increasing the technical content of our work Attracting and retaining superior talent in diverse areas of expertise Leveraging innovation to deliver complex, differentiated, end-to-end solutions Creating a broad ne
Slide 8: Successful results from Vision 2020
Successful results from Vision 2020 ACCELERATING ADJUSTED EBITDA, ADEPS GROWTH (1) ORGANIC REVENUE GROWTH CONSISTENTLY ABOVE MARKET (2), (3), (4) FY17 and FY18 results adjusted for ASC 606 and ASU 2017-07 Gov Services Industry includes Leidos, SAIC, ManTech, CACI, Engility, and CSRA (through Q3 FY18
Slide 9: Key areas of differentiation
Key areas of differentiation We attribute our business and financial success to five key features Our culture Our purpose, as a firm, is to empower people to change the world, and we are committed to our employees Our strategy Successful execution of Vision 2020 reflects our ability to reinvent ours
Slide 10: History of growing faster than market
History of growing faster than market Source: Federal Procurement Data Systems (FPDS) FY09 and FY10 discretionary government budget growth rates impacted by the American Reinvestment and Recovery Act (ARRA) Based on government fiscal year; assumes government fiscal year 2017 aligns to Booz Allen fis
Slide 11: High-quality and diversified contract portfolio
High-quality and diversified contract portfolio Our Diversified revenue base minimizes volatility Delivered on 4,997 U.S. government contracts and task orders (1) Largest definite contract accounted for 2.2% of revenue 75% of revenue was derived from over 3,900 active task orders under indefinite de
Slide 12: Diversified client base
Diversified client base Commercial: Financial Services, Health and Life Sciences, Energy, Transportation International: Middle East, North Africa Region, and Select Asian Markets GLOBAL / COMMERCIAL (3.2%) U.S. Intelligence Agencies: National Security Agency, National Geospatial-Intelligence Agency,
Slide 13: Large and growing addressable market
LARGE AND GROWING ADDRESSABLE MARKET U.S. Office of Management and Budget. 2017 Budget U.S. Government Total Contracted Addressable Contracted + INTEL, COMMERCIAL & INTERNATIONAL U.S. GOVERNMENT 2018 DISCRETIONARY BUDGET (1) + INTEL CAGR 2017-23 +4.4% Historical = Projected = TOTAL CONTRACTOR-ADDRES
Slide 14: $17B in Opportunities in Pre-Proposal; strong backlog growth
$17B in Opportunities in Pre-Proposal strong backlog growth FY13 backlog excludes backlog gained in the BES acquisition Pipeline data as of 3/31/2018 SOLID BACKLOG GROWTH PROVIDES STRONG REVENUE VISIBILITY ($B) Expecting Strong FY19 Bookings $25B QUALIFIED PIPELINE(2), +10% YOY (60% New Work) $8B in
Slide 15: Long-term shareholder value
Long-term shareholder value We are creating value from accelerating growth through a virtuous cycle Results in high-quality work for clients and strong financial performance Doing work at the center of clients’ missions Allows us to identify and invest in high-demand capabilities Positions us to win
Slide 16: Track record of deploying capital to deliver shareholder value
Track record of deploying capital to deliver shareholder value As of 5/31/2018; Assumes dividend reinvested Capital deployed since IPO(1): ~$2.9B ($B) Capital deployed and TSR Performance SINCE IPO TSR Since IPO : 499%(1) Quarterly Div.
Slide 17: Quarterly performance: Q1 FY19
Quarterly performance: Q1 FY19
Slide 18: Q1 FY19 highlights
Q1 FY19 highlights KEY PERFORMANCE INDICATORS Delivered revenue and earnings performance consistent with our FY19 guidance and 3-year growth goals Maintained industry-leading organic revenue growth (1) Record total backlog since IPO, up 21.4% compared to the prior year period Record Q1 funded backlo
Slide 19: Adoption Impact of Accounting Standards on Fiscal Year Results
ADEPS Adoption Impact of Accounting Standards on Fiscal year Results (1) Revenue ($M) Adj. EBITDA ($M) (2) Adj. Net Income ($M) On April 1, 2018, we adopted FASB Accounting Standard Topic No. 606, Revenue from Contracts with Customers (ASC 606), using the full retrospective transition method, which
Slide 20: Adoption Impact of Accounting Standards on Quarterly Fiscal 2018 Results
Adoption Impact of Accounting Standards on Quarterly Fiscal 2018 Results Revenue ($M) (1) Adj. EBITDA Margin on Revenue (1) (2) Adj. Net Income ($M) (1) ADEPS (1) For interim period financial reporting purposes under ASC 606, contract revenue attributable to indirect costs is recognized using the ag
Slide 21: Key financial results: First Quarter Fiscal Year 2019
Key financial results FIRST QUARTER FISCAL YEAR 2019 RESULTS Comparisons are to prior fiscal period First Quarter (1) Revenue $1.6 billion 8.1% Increase Revenue, Excluding Billable Expenses $1.2 billion 9.2% Increase Adjusted EBITDA $178 million 25.1% Increase Net Income $104 million 47.6% Increase
Slide 22: Capital allocation
Capital allocation DELIVERING STRONG CAPITAL RETURNS THROUGH EFFICIENT CAPITAL DEPLOYMENT STRATEGY Our FY 19 and multi-year capital deployment plans remain on track Aim to deploy $350 million this year, subject to market conditions Aim to deploy $1.4 billion over the next three years Returned $76 mi
Slide 23: Second highest full-year book to bill since IPO
Second Highest full-year BTB since our IPO Quarterly book to bill trend (1) Fiscal year book to bill trend Q1 FY19 BTB adjusted for ASC 606 and ASU 2017-07
Slide 24: Financial outlook: Reiterating Full Year Guidance
Financial outlook Reiterating Full Year Guidance FISCAL 2019 FULL YEAR Outlook Revenue Growth in the Range of 6 to 8 Percent Adjusted Diluted EPS (1) $2.35 - $2.50 Adjusted Diluted EPS guidance is based on fiscal 2019 estimated average diluted shares outstanding in the range of 141 million to 145 mi
Slide 25: Adjusted EBITDA margin outlook
ADJUSTED EBITDA MARGIN OUTLOOK Goal of 10-30 bps adjusted EBITDA margin improvement over 3 years Margin levers Mix shift—commercial, international Fixed-price technology work Emerging businesses Operating scale Potential Limits on Margin expansion Growth in defense and intelligence work – typically
Slide 26: Appendix
appendix
Slide 27: 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 28: Non-GAAP financial information
Non-GAAP financial information (a) Reflects the combination of Interest expense and Other income (expense), net from the condensed consolidated statement of operations. (b) The first quarter of fiscal 2018 reflects the tax effect of adjustments at an assumed effective tax rate of 40%. For fiscal 201
Slide 29: Shareholder and stock information
Shareholder and stock information Booz ALLEN Hamilton holding corporation’s class a common stock began trading on the new York stock exchange (NYSE) on Nov 17, 2010 Fiscal Year – Booz Allen Hamilton Holding Corporation’s fiscal year starts April 1 and ends March 31 Share Price Information – Booz All
Slide 30: Shareholder and stock information: dividends
Shareholder and stock information Booz Allen has utilized distributions (recurring and special) as part of its capital deployment strategy Regular: The firm has issued regular dividends each quarter since FY12 and has increased the dividend periodically when deemed appropriate. A history of past div
Slide 31: Shareholder and stock information: transfer agent and leadership
Shareholder and stock information Transfer Agent & Registrar Computershare www.computershare.com/investor/ P.O. Box 30170 College Station, TX 77842-3170 Phone: 866-390-3908 Computershare maintains records for registered stockholders and provides stockholder services at no charge, including: Independ
Slide 32: Shareholder and stock information: contact information
Shareholder and stock information Website: investors.boozallen.com Contact Information Investor Relations Nicholas Veasey Director 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 Nancy L
Slide 33: Financial and operational highlights: trailing 12-month operating data
Financial and operational highlights trailing 12-Month operating data (1) All interim periods and Consulting Staff Headcount reflect unaudited numbers while annual numbers for Backlog and Total Headcount are audited.
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