Science Applications International Corporation · NASDAQ:SAIC
Science Applications International — Q3 2020 Earnings Presentation
13 slides from Science Applications International's earnings presentation, Dec 6, 2019
Slide 1: Fiscal Year 2020 Third Quarter Earnings Call
Science Applications International Corporation (SAIC) Fiscal Year 2020 Third Quarter Earnings Call Supplemental Financial Information December 5, 2019
Slide 2: Conference Call information
Conference Call information Date: December 5, 2019 Time: 5:00 pm ET Webcast Information: http://investors.saic.com (webcast participation only, no “dial in” access) 2 © SAIC. All rights reserved. S A I C P R O P R I E T A R Y
Slide 3: Forward-Looking Statements
Forward-Looking Statements 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,” “antic
Slide 4: Today's Presenters
Today’s Presenters Nazzic S. Keene Charles A. Mathis Chief Executive Officer Chief Financial Officer 4 © SAIC. All rights reserved. S A I C P R O P R I E T A R Y
Slide 5: FY20 Q3 Highlights
FY20 Q3 Highlights Continued Progress of Engility Integration Accelerating Profitable Revenue Growth Focused on Winning the War for Talent Total Revenue Growth of 38% 1% Internal Revenue Growth After Adjusting for Dis-Synergies Adjusted EBITDA Margin* of 8.3% Strong Free Cash Flow* Generation of $11
Slide 6: SAIC Third Quarter FY20 Results
SAIC Third Quarter FY20 Results (1) ADJUSTED ADJUSTED REVENUE FREE CASH FLOW(2) EBITDA MARGIN(2)(3) DILUTED EPS(2)(3) +38% +45% $1,630M $116M $1.47 $1.39 8.3% 8.3% $80M $1,177M FY2019 FY2020 FY2019 FY2020 FY2019 FY2020 FY2019 FY2020 Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q3 (1) Results of Science Applications Interna
Slide 7: FY20 Financial Outlook
FY20 Financial Outlook GOAL — ACHIEVE MARKET LEADING TOTAL SHAREHOLDER RETURNS (TSR) LONG-TERM FINANCIAL OBJECTIVES FISCAL YEAR 2020 OUTLOOK (On average and over time) Annual Internal Revenue Growth Second half revenues consistent with first half revenues of $3.2B Adjusted EBITDA margin of 8.1% to 8
Slide 8: Appendix
Appendix SAIC. Redefining Ingenuity
Slide 9: Working Days Per Quarter
Working Days Per Quarter Q1 Q2 Q3 Q4 Total FY21 64 63 63 60 250 FY20 64 63 63 60 250 FY19 64 63 63 60 250 FY18 64 63 64 59 250 FY17 69* 63 64 59 255 * FY17 contained an extra week (53 weeks) in the first quarter 9 © SAIC. All rights reserved. S A I C P R O P R I E T A R Y
Slide 10: Pay Periods Paid
Pay Periods Paid Q1 Q2 Q3 Q4 Total FY21 6 7 6 7 26 FY20 6 7 6.5* 7 26 FY19 6 7 6 7 26 FY18 6 7 6 7 26 FY17 7 7 6 7 27 *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 payroll cycle in
Slide 11: Non-GAAP Reconciliation – EBITDA and Adjusted EBITDA
Non-GAAP Reconciliation – EBITDA and Adjusted EBITDA (1) “EBITDA“ and “Adjusted EBITDA” are non-GAAP financial measures that are reconciled in this schedule to the most directly comparable GAAP financial measures. These non-GAAP financial measures help investors better understand profitability trend
Slide 12: Non-GAAP Reconciliation – Adjusted Diluted Earnings per Share
Non-GAAP Reconciliation – Adjusted Diluted Earnings per Share (1) “Adjusted diluted earnings per share” 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 visibil
Slide 13: 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
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