Caci International, Inc. · NYSE:CACI
Caci International — Q2 FY2022 Earnings Presentation
18 slides from Caci International's earnings presentation, Jan 27, 2022
Slide 1: CACI International Inc Q2 FY22 Earnings Conference Call
CACI International Inc Q2 FY22 Earnings Conference Call January 27, 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 Q2 FY22 Earnings Conference Call
Slide 4: Q2 FY22 Performance
Q2 FY22 Performance Revenue +1.2% as reported, ~1% organic Technology revenue +9% Adjusted EBITDA Margin 10.6%1 Robust free cash flow of $117 million1 Strong contract awards of $2.0 billion; ~70% new business to CACI Trailing twelve months (TTM) book-to-bill 1.6x 1 See slides at the end of this pres
Slide 5: Budget and Market Environment
Budget and Market Environment Headwinds appeared during Q2 Increase in COVID cases limiting customer engagement and slowing some ramp-ups Slowing pace of task orders, including some Technology Supply chain challenges Modestly reducing FY22 guidance to reflect headwinds continuing in 2H Headwinds are
Slide 6: Strong Awards
Strong Awards Contract awards of $2.0 billion include nearly $600 million of unannounced classified contracts Cyber, Electromagnetic Spectrum, and Software-defined Technology Enabled by both organic investments and M&A Classified awards include a multi-hundred million sole-source renewal, new busine
Slide 7: Capital Deployment
Capital Deployment Continue to invest ahead of need and deploy capital to drive long-term shareholder value Acquired two Technology companies in Q2 SA Photonics Photonics technologies for free space optical communications (“laser comms”) Combination with CACI creates THE leading U.S.-based photonics
Slide 8: Q2 Financial Summary
Q2 Financial Summary Revenue (Ms) Diluted EPS (GAAP) $1,600 $5.00 $4.18 -8% $3.83 $1,500 $1,469 +1% $1,486 $4.00 $3.00 $1,400 $2.00 $1,300 $1.00 $1,200 $0.00 Q2 FY21 Q2 FY22 Q2 FY21 Q2 FY22 1 Adjusted Diluted EPS $6.00 Organic revenue growth of ~1% $5.00 $4.69 -6% $4.39 $4.00 Technology revenue +9%
Slide 9: Strong Cash Flow
Strong Cash Flow 1 Cash Flow1 and CapEx Free Cash Flow (FCF) per Share (millions, TTM) $700 $35.00 $650 $600 $30.00 $550 $500 $25.00 $450 $400 $20.00 $350 $300 $15.00 $250 $200 $10.00 $150 $100 $5.00 $50 $0 $0.00 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22E FY15 to FY20 FY16 to FY21 FY17 to FY22E C
Slide 10: Deploying Capital for Growth – Q2 Acquisitions
Deploying Capital for Growth – Q2 Acquisitions Acquired two Technology companies Total consideration ~$500 million FY22 expected revenue contribution ~$120 million SA Photonics ~$25 million in revenue IDT ~$95 million in revenue Both businesses investing to support significant future growth Investme
Slide 11: Updating FY22 Guidance
Updating FY22 Guidance FY22 Guidance Organic revenue growth of ~2.5% at the midpoint, incl. Revenue Afghanistan headwind (2%) (millions) $6,300 – $6,400 Adj. EBITDA Margin1 of ~10.7% Adjusted Net Income1 (incl. 10 bps impact from acquisitions) (millions) $430 – $440 Depreciation & amortization of ~$
Slide 12: Positive Forward Indicators
Positive Forward Indicators Strong Q2 FY22 contract awards of 93% STRONG $2.0 billion TTM Book-to-Bill of 1.6x Existing Business Performance Backlog of $24.1 billion, +8% YoY 4% HIGH Pipeline of submitted bids: $7.0 billion ~80% for new business to CACI Recompetes Win Rate Bids expected to be submit
Slide 13: Continuing to Execute
Continuing to Execute Delivering solid organic growth, healthy margins, and robust cash flow Near-term headwinds do not change significant long-term growth opportunities Investing ahead of customer need drives strong awards and growing backlog CACI positioned to generate long-term growth, margin exp
Slide 14: 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 15: 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 Six Months Ended 12/31/2021 12/31/2020 % Change 12/31/2021 12/31/2020 % Change Net income, as reported $ 90,299 $ 106,478 -15.2% $ 178,408
Slide 16: Adjusted EBITDA Reconciliation
Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA) (Unaudited) Three Months Ended Six Months Ended (in thousands) 12/31/2021 12/31/2020 % Change 12/31/2021 12/31/2020 % Change Net income $ 90,299 $ 106,478 -15.2% $ 178,408 $ 200,122 -10.9% Plus: Income taxes 22
Slide 17: 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 Six Months Ended (in thousands) 12/31/2021 12/31/2020 12/31/2021 12/31/2020 Net cash provided by operating activities $ 122,81
Slide 18: 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