Caci International, Inc. · NYSE:CACI
Caci International — Q2 FY2016 Earnings Presentation
17 slides from Caci International's earnings presentation, Feb 4, 2016
Slide 1: CACI International Inc Second Quarter Fiscal Year 2016 Conference Call
CACI International Inc Second Quarter Fiscal Year 2016 Conference Call February 4, 2016 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: Our Participants Today
Our Participants Today Ken Asbury President and Chief Executive Officer Tom Mutryn Chief Financial Officer John Mengucci Chief Operating Officer and President, U.S. Operations Greg Bradford Chief Executive Officer, CACI Limited in the UK INFORMATION DEPLOYED. SOLUTIONS ADVANCED. MISSIONS ACCOMPLISHE
Slide 4: Second Quarter Highlights
Second Quarter Highlights Delivered organic revenue and net income growth Strong cash flow and backlog Acquisition of National Security Solutions (NSS) • Ensures that CACI will be on the cutting edge of next- generation technology transformations • Broadens and deepens CACI’s customer base • Enhance
Slide 5: Current Market Environment
Current Market Environment Passage of 2016 appropriations and Bipartisan Budget Act of 2015 are positives for industry Provides a more stable platform for our customers to plan, program, and obligate funds until late 2017 Expect this legislation to have a potentially favorable impact 5 | CACI 2nd Qu
Slide 6: First Half FY16 Performance
First Half FY16 Performance First half performance gives us confidence in meeting our updated guidance NSS acquisition strengthens our competitive position Confident in our outlook, strategy, and ability to deliver long-term shareholder value 6 | CACI 2nd Quarter Fiscal Year 2016 Conference Call | F
Slide 7: Second Quarter Revenue and Net Income
Second Quarter Revenue and Net Income Strong performance on Gross profit up 5.4% programs Gross profit margin Contribution from increased to 34.1% business awarded in FY15 $4.1 million of pre-tax, acquisition-related expenses in the quarter Lower D&A expense 7 | CACI 2nd Quarter Fiscal Year 2016 Con
Slide 8: Continued Strong Cash Flow
Continued Strong Cash Flow Generated $56 million in operating cash flow for the quarter; TTM free cash flow of $247 million Days sales outstanding – 60 days versus 58 days in Q1’16 Post NSS debt of $1.5 billion; net debt/TTM EBITDA of 4.0 times TTM Free Cash Flow Per $400 Share (right scale) $12.00
Slide 9: Updated FY16 Guidance
Updated FY16 Guidance Current Previous FY16 Guidance FY16 Guidance Revenue (millions) $3,700 - $3,900 $3,300 - $3,500 Net Income (millions) $133 - $143 $130 - $140 Diluted EPS $5.37 - $5.77 $5.24 - $5.65 Diluted shares (millions) 24.8 24.8 FY16 revenue expected to be 11.7% to 17.7% higher than FY15
Slide 10: Another Strong Quarter
Another Strong Quarter Organic revenue and net income growth Won $671M of awards • 40% new business to CACI • 30% recompete • 30% growth on existing contracts Booked $541M of contract funding orders • Book-to-bill of .65x, a seasonally solid metric Total backlog stands at $10.4B, 6.2% greater than t
Slide 11: Confidence in our Guidance: FY16 Planned Revenue
Confidence in our Guidance FY16 Planned Revenue* as of: Q2, FY16 95% EXISTING BUSINESS 4% 1% RECOMPETES NEW BUSINESS ~90% already funded Initial Guidance 78% 15% 7% EXISTING BUSINESS RECOMPETES NEW BUSINESS *Does not include NSS contribution 11 | CACI 2nd Quarter Fiscal Year 2016 Conference Call | F
Slide 12: Healthy Leading Indicators
Healthy Leading Indicators $12.4 billion in pending contract awards, ~50% for new business $13.3 billion in bids to be submitted over next six months, +60% for new business Reflects focus on critical missions in each of our market areas 12 | CACI 2nd Quarter Fiscal Year 2016 Conference Call | Februa
Slide 13: NSS Integration
NSS Integration NSS is already integrated into our market-aligned US Operations Combined entities will enjoy enhanced offerings, capabilities, talent, past performance, and effective cost structures NSS contributes significantly to our Enterprise IT, Cyber, and Intelligence Services markets $30M of
Slide 14: SkyTracker™
SkyTracker™ Proprietary system that detects, identifies, tracks, and mitigates unmanned aerial vehicles Cooperative R&D agreement underway – system deployed and being tested alongside ground communication systems SkyTracker™ deployed with a number of other government agencies in both domestic and in
Slide 15: CEO Closing Comments
CEO Closing Comments Confident in our revised guidance and our ability to perform Had organic revenue and net income growth for the first half of the fiscal year Improved our business development capability and capacity to drive organic growth NSS acquisition opens opportunities Successful launch of
Slide 16: Definitions of Non-GAAP Measures
Definitions of Non-GAAP Measures Trailing twelve month (TTM) free cash flow is TTM cash flow from operations less TTM capital expenditures. TTM free cash flow per share is TTM free cash flow divided by TTM diluted share count. EBITDA is GAAP net income plus net interest expense, income taxes, and de
Slide 17: Key Guidance Assumptions
Key Guidance Assumptions Depreciation and amortization of ~ $65 million Net interest expense of ~ $42 million Effective tax rate of 38.5% Operating cash flow in excess of $225 million 17 | CACI 2nd Quarter Fiscal Year 2016 Conference Call | February 4, 2016