Leidos Holdings, Inc. · NYSE:LDOS
Leidos — Q2 2021 Earnings Presentation
14 slides from Leidos's earnings presentation, Aug 3, 2021
Slide 1: Leidos Q2 FY21 Earnings Conference Call
Leidos Q2 FY21 Earnings Conference Call August 3, 2021
Slide 2: Forward-Looking Statements
Forward-Looking Statements Certain statements in this release contain or are based on "forward-looking" information within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by words such as "expects," "intends," "plans," "
Slide 3: Non-GAAP Financial Measures
Non-GAAP Financial Measures This presentation includes certain non-GAAP financial measures, such as organic growth, non-GAAP operating income, non- GAAP operating margin, non-GAAP effective tax rate, non-GAAP diluted earnings per share (EPS), adjusted earnings before interest, taxes, depreciation an
Slide 4: CEO Key Messages
CEO Key Messages Our financial results demonstrate that our strategy is working 1 ▪ 16% organic growth leads the industry ▪ 10.4% adjusted EBITDA margins running above long-term guidance ▪ Scale driving differentiation and better performance Business Development momentum sets the stage for further g
Slide 5: Q2 FY21 Results: Income Statement
Q2 FY21 Results: Income Statement Revenues (M) Adjusted EBITDA Margin (%) Non-GAAP Diluted EPS ($) +18% total +16% organic -2% -140 bps ▪ Revenues: VA disability exams recovery and ramp of new programs (NGEN, MFLC) ▪ Adjusted EBITDA Margin: strong program management, better direct labor utilization
Slide 6: Q2 FY21 Results: Reporting Segments
Q2 FY21 Results: Reporting Segments Defense Solutions Civil Health Revenues (M) +5% total +3% organic +14% total +12% organic +62% total Non-GAAP Op Margin (%) +1250 bps +20 bps -380 bps ▪ Revenues: 1901, Gibbs & Cox ▪ Revenues: SD&A acquisition, large ▪ Revenues: VA disability exam acquisitions; NG
Slide 7: Q2 FY21 Results: Cash Flow / Balance Sheet
Q2 FY21 Results: Cash Flow / Balance Sheet Cash generation below normal levels—funding organic growth Cash Flow ▪ Operating cash flow $17M Generation ▪ Free cash flow $(4)M ▪ Accounts Receivable monetization facility impact $(94)M Following balanced long-term approach to capital deployment ▪ M&A (Gi
Slide 8: 2021 Guidance
2021 Guidance Measure Current CurrentPrior Revenues (billions) $13.7 - $14.1 Adjusted EBITDA Margin 10.5% - 10.7% Non-GAAP Diluted EPS $6.35 - $6.65 Cash Flows Provided by Operating Activities (millions) at or above $875 Maintaining guidance for all metrics ▪ Revenues: Gibbs & Cox upside balanced wi
Slide 9: 2021 Guidance Assumptions
2021 Guidance Assumptions Prior ▪ Customers may adopt new protocols associated with COVID-19 but do not revert to closed offices or work stoppages COVID-Related ▪ Airline travel does not fall to the levels experienced in the second half of Factors 2020 ▪ Chip shortages do not worsen, and we are able
Slide 10: Appendix: Non-GAAP Reconciliations
Appendix: Non-GAAP Reconciliations
Slide 11: Organic Growth
Organic Growth Q2 FY21 Q2 FY20 YoY Growth Defense Solutions Revenues, as reported $ 2,004 $ 1,757 14 % 1901 Group (acquired January 14, 2021) and Gibbs & Cox (acquired May 7, 2021) 37 — Pro-forma revenues (Organic Growth Rate) $ 1,967 $ 1,757 12 % Civil Revenues, as reported $ 799 $ 758 5% SD&A Busi
Slide 12: Non-GAAP Income Metrics Reconciliation
Non-GAAP Income Metrics Reconciliation Three Months Ended July 2, 2021 Three Months Ended July 3, 2020 Acquisition, Acquisition, integration integration Acquisition and Amortization and Amortization related Loss on debt Asset restructuring of acquired Non-GAAP restructuring of acquired financing mod
Slide 13: Segment Non-GAAP Income Metrics Reconciliation
Segment Non-GAAP Income Metrics Reconciliation Three Months Ended July 2, 2021 Acquisition, integration and Amortization of Non-GAAP Non-GAAP Operating restructuring acquired operating operating income (loss) costs intangibles income (loss) margin(1) Defense Solutions $ 137 $ — $ 29 $ 166 8.3 % Civi
Slide 14: Free Cash Flow
Free Cash Flow Three Months Ended (in millions, except conversion ratio) July 2, 2021 July 3, 2020 Net cash provided by operating activities $ 17 $ 422 Payments for property, equipment and software (21) (46) Free cash flow $ (4) $ 376 Net income attributable to Leidos common stockholders $ 169 $ 153