Caci International, Inc. · NYSE:CACI
Caci International — Q4 FY2020 Earnings Presentation
18 slides from Caci International's earnings presentation, Aug 13, 2020
Slide 1: Q4 and FY20 Earnings Conference Call
CACI International Inc Q4 and FY20 Earnings Conference Call August 13, 2020 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 Greg Bradford President and Chief Chief Financial Officer President and Chief Executive Officer Executive, CACI Limited UK 3 | CACI Proprietary Information CACI Q4 FY20 Earnings Conference Call
Slide 4: Strong FY20 Performance
Strong FY20 Performance Revenue +15% as reported, +8% organic Adjusted EBITDA Margin +60 bps to 10.0%1 Diluted EPS +21% Robust cash flow from operations (>$500 million)1 Record contract awards of $11.6 billion (>55% new business) NGA TCS award – $1.5 billion over 10 years DHS CBP BEAGLE award – $1.1
Slide 5: Deploying Capital for Growth
Deploying Capital for Growth Acquired Ascent Vision Technology (AVT), a leading Mission Technology provider Electro-Optical and Infra-Red (EO/IR) imaging technologies On-board digital video processing using AI and machine learning Opens two large ISR market growth opportunities Use of precision sens
Slide 6: FY21 Guidance Consistent with Financial Goals
FY21 Guidance Consistent with Financial Goals Total revenue growth of about 7%, 5.5% organic Adjusted EBITDA Margin1 expansion of 40 basis points Double-digit EPS growth Robust cash flow generation Continued investment in high-demand, high-value capabilities to drive growth 1 See slides at the end o
Slide 7: Budget and Market Environment
Budget and Market Environment We remain optimistic about CACI’s near- and longer-term prospects Congress following GFY21 framework established by Budget Control Act of 2019 Actively working to advocate for extension of Section 3610 support Global threat environment remains elevated Continue to see b
Slide 8: Q4 Revenue and Net Income
Q4 Revenue and Net Income Revenue (Ms) Revenue driven by new business wins, $1,600 on-contract growth, and acquired revenue +9% $1,496 $1,374 $1,400 Organic growth of 8.1% $1,200 COVID-19 negatively impacted Q4 revenue by $1,000 $58 million $800 Q4 FY19 Q4 FY20 Net Income (Ms) Higher net income driv
Slide 9: FY20 Revenue and Net Income
FY20 Revenue and Net Income Revenue (Ms) Revenue driven by new business wins and on- $6,500 contract growth, as well as acquired revenue $5,500 $4,986 +15% $5,720 $4,500 Organic growth of 8.0% up from 2.8% in FY19 $3,500 COVID-19 negatively impacted FY20 revenue $2,500 by $68 million $1,500 $500 FY1
Slide 10: Strong Cash Flow
Strong Cash Flow Cash Flow1 and CapEx (millions, TTM) $550 ▪ FY20 net cash provided by operating $500 activities excluding MARPA of $450 $511 million1, up 41% year-over-year $400 $350 $300 ▪ Days Sales Outstanding of 57 days1 Leverage of 2.3x2 $250 $200 ▪ $150 $100 ▪ Strong cash flow and borrowing $
Slide 11: AVT Transaction Information
AVT Transaction Information In FY21, AVT expected to add $50 million in revenue and $20 million in Adjusted EBITDA1 (excluding one-time transaction-related expenses) Accretive on a GAAP basis, nicely accretive excluding non-cash intangible amortization and one-time expenses Purchase price of $350 mi
Slide 12: FY21 Guidance
FY21 Guidance FY21 Guidance Organic revenue growth of Revenue $6,000 – $6,200 about 5.5% (millions) Adj. EBITDA Margin of ~10.4% Net Income $347 – $367 (millions) Diluted shares outstanding expected to be 25.7 million Diluted EPS $13.50 – $14.28 Capital expenditures of ~$70 million Guidance assumes
Slide 13: FY21 Guidance Assumptions
FY21 Guidance Assumptions Depreciation and amortization expected to be ~$130 million Net interest expense expected to be ~$44 million Tax rate expected to be ~22% for full year, with lower tax rate in Q2 due to impact of stock award vesting Expect typical quarterly sequential increase in revenue and
Slide 14: Positive Forward Indicators for FY21
Positive Forward Indicators for FY21 Record FY20 contract awards of 83% STRONG $11.6 billion TTM Book-to-Bill of 2.0x Existing Business Performance Record backlog of $21.6 billion, +28% YoY 11% HIGH Recompetes Win Rate Pipeline of submitted bids totals $9.0 billion >80% for new business to CACI 6% Q
Slide 15: Delivering Results and Meeting Commitments
Delivering Results and Meeting Commitments Delivered exceptional financial performance in FY20 while navigating COVID-19 Increased organic revenue growth Continued margin expansion Robust cash flow Record contract awards and backlog Expect FY21 to be another year of healthy revenue growth, margin ex
Slide 16: Definitions of Non-GAAP Measures
Definitions of Non-GAAP Measures The Company defines net cash provided by operating activities excluding CACI’s Master Accounts Receivable Purchase Agreement (MARPA) as net cash provided by operating activities calculated in accordance with GAAP, adjusted to exclude net cash received from CACI’s MAR
Slide 17: Reconciliation of Net Cash Provided by Operating Activities Excluding MARPA
Reconciliation of Net Cash Provided by Operating Activities to Net Cash Provided by Operating Activities Excluding MARPA Quarter Quarter Twelve Twelve Ended Ended Months Ended Months Ended (dollars in thousands) 6/30/2020 6/30/2019 6/30/2020 6/30/2019 Net cash provided by operating activities $ 160,
Slide 18: Adjusted EBITDA Reconciliation
Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA) Quarter Ended Twelve Months Ended (dollars in thousands) 6/30/2020 6/30/2019 % Change 6/30/2020 6/30/2019 % Change Net income $ 93,731 $ 50,030 87.3% $ 321,480 $ 265,604 21.0% Plus: Income taxes 29,498 12,881 1