Science Applications International Corporation · NASDAQ:SAIC
Science Applications International — Q1 2023 Earnings Presentation
20 slides from Science Applications International's earnings presentation, Jun 6, 2022
Slide 1: Fiscal Year 2023 First Quarter Earnings Call
Science Applications International Corporation Fiscal Year 2023 First Quarter Earnings Call Supplemental Financial Presentation June 6, 2022
Slide 2: SAIC. Bring on Tomorrow
SAIC. BRING ON TOMORROVV, We're not just another company that solves problems. No, we're a company that never stops reaching. Never stops pushing beyond our limits. To rethink engineering in a digital world, we reached. To redefine space training through virtual reality, we reached. To redesign new
Slide 3: Forward Looking Statement
Forward Looking Statement Certain statements in this presentation are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “may,” “will,” “should,” “expects,” “intends,” “projects,” “plans,” “believes,” “estimates,” “targets,” “antici
Slide 4: Today's Presenters
Today’s Presenters Nazzic Keene Prabu Natarajan Chief Executive Officer Chief Financial Officer SAIC PROPRIETARY INFORMATION I © SAIC. ALL RIGHTS RESERVED I 4
Slide 5: SAIC PROPRIETARY INFORMATION I © SAIC. ALL RIGHTS RESERVED I
SAIC PROPRIETARY INFORMATION I © SAIC. ALL RIGHTS RESERVED I 5
Slide 6: SAIC's Enterprise Focus Areas
SAIC’s Enterprise Focus Areas Strategy designed to capture accelerated share across a focused set of market needs • Engineering and integration leader accelerating system development, modernization, and sustainment SAIC MARKET POSITION • Accelerating, securing, and transforming digital environments
Slide 7: Overall positioning strong, with focus on solutions and technology
Overall positioning strong, with focus on solutions and technology Strategy drives favorable mix shift towards higher margin solutions Growth and Technology Accelerants (GTA) Core 27% > 35% FY22 FY25 REVENUE REVENUE ~ 65% 73% Note: Growth & Technology Accelerants (GTA) include Secure Cloud, Enterpri
Slide 8: FY2023 Q1 Highlights
FY2023 Q1 Highlights Continued, Strong Organic Revenue Growth Adj. EBITDA* Margins Consistent with Expectations Q1 Total Revenue Growth of ~6%, Organic Growth of ~4% Q1 Adjusted EBITDA Margin * of 8.7% Increasing FY23 Guidance for Revenue, Adjusted Diluted EPS* Continue to Expect >10% Free Cash Flow
Slide 9: FY2023 Q1 Results
(1) FY2023 Q1 Results ADJUSTED ADJUSTED REVENUE FREE CASH FLOW (2) EBITDA MARGIN (2)(3) DILUTED EPS (2)(4) +6% total -110 bps -3% -31% +4% organic 9.8% $1.94 $164M $1,996M 8.7% $1.88 $1,878M $113M FY2022 FY2023 FY2022 FY2023 FY2022 FY2023 FY2022 FY2023 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 (1) Results of Science
Slide 10: Fiscal Year 2023 Guidance
Fiscal Year 2023 Guidance Current Prior Revenue $7.43B - $7.55B $7.35B - $7.55B New business, on-contract, and acquired revenue growth offset by contract transitions * Adjusted EBITDA % ~8.9% ~8.9% Reflects continued, strong operating performance * Effective tax rate ~ 24% Adjusted Diluted EPS
Slide 11: SAIC Historical Share Repurchase Authorizations
SAIC Historical Share Repurchase Authorizations Incremental Repurchase Avg. Annualized Total Approximate Avg. Shares Avg. Price of Authorization Shares Added Authorization FCF** / Share “Current” Months to Repurchased Repurchased Date to as % of Diluted During Authorization Complete per Month Shares
Slide 12: SAIC Historical Backlog and Book-to-Bill
SAIC Historical Backlog and Book-to-Bill $25 0.9x 1.2x 1.0x 2.2x 0.7x 2.7x 0.4x $20 Total Backlog ($ in billions) 2.6x 0.9x 1.5x $15 1.2x 1.4x 0.8x 0.9x 1.4x 1.0x 0.8x $10 $5 $0 FY19 Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY20 Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY21 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY22 Q1 FY22 Q2 FY22 Q3 FY
Slide 13: Appendix
Appendix
Slide 14: Working Days Per Quarter
Working Days Per Quarter Q1 Q2 Q3 Q4 Total FY23 64 62 63 65 254 FY22 64 63 63 60 250 FY21 64 63 63 60 250 FY20 64 63 63 60 250 FY19 64 63 63 60 250 SAIC PROPRIETARY INFORMATION I © SAIC. ALL RIGHTS RESERVED I 14
Slide 15: Payroll Periods Per Quarter
Payroll Periods Per Quarter Q1 Q2 Q3 Q4 Total FY23 6 7 6 7 26 FY22 6 7 6 7 26 FY21 6 7 6 7 26 FY20 6 7 6.5* 7 26 FY19 6 7 6 7 26 *During the third quarter of fiscal year 2020 and as a result of a systems conversion due to the Engility acquisition, legacy Engility employees were paid a one week payro
Slide 16: Non-GAAP Reconciliation – EBITDA and Adjusted EBITDA
Non-GAAP Reconciliation – EBITDA and Adjusted EBITDA (1) EBITDA is a performance measure that is calculated by taking net income and excluding interest and loss on sale of receivables, provision for income taxes, and depreciation and amortization. Adjusted EBITDA and adjusted operating income are pe
Slide 17: Non-GAAP Reconciliation – Adjusted Diluted Earnings per Share
Non-GAAP Reconciliation – Adjusted Diluted Earnings per Share (1) Adjusted diluted earnings per share is a performance measure that excludes acquisition and integration costs, impairments, restructuring costs, and any other material non-recurring costs that we do not consider to be indicative of our
Slide 18: Non-GAAP Reconciliation – Free Cash Flow
Non-GAAP Reconciliation – Free Cash Flow (1) “Free cash flow” is a non-GAAP financial measure that is reconciled in this schedule to the most directly comparable GAAP financial measures. This non-GAAP financial measure provides investors with greater visibility into cash flows provided by operating
Slide 19: Non-GAAP Reconciliation – FY23 Free Cash Flow Guidance
Non-GAAP Reconciliation – FY23 Free Cash Flow Guidance (1) “Free cash flow” is a non-GAAP financial measure that is reconciled in this schedule to the most directly comparable GAAP financial measures. This non-GAAP financial measure provides investors with greater visibility into cash flows provided
Slide 20: Bring on Tomorrow
BRING ON TOMORROVYS TAKING THE WORLD WHERE IT'S NEVER BEEN BEFORE. SAIC.
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