Leidos Holdings, Inc. · NYSE:LDOS
Leidos — Q4 CY2015 Earnings Presentation
20 slides from Leidos's earnings presentation, Feb 18, 2016
Slide 1: Earnings Conference Call
LEIDOS 4Q CY15 Earnings Conference Call February 18, 2016
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 Reconciliations
Non-GAAP Reconciliations This presentation includes certain non-GAAP financial measures, such as non-GAAP operating income, non-GAAP income from continuing operations, non-GAAP earnings per share and non-GAAP operating income margin. These non-GAAP financial measures are not meant to be considered i
Slide 4: Executive Summary
Executive Summary Q4 CY15 Highlights − Revenue of $1.3B, +10% yoy − Non-GAAP Operating Income margins of 8.2%, +144bps yoy − Non-GAAP EPS of $0.78, +13% yoy − Cash Flow from Operations: $32M CY15 Highlights − Revenue of $5.1B, +0.5% yoy − Non-GAAP Operating Income margins of 7.4%, +38bps yoy − N
Slide 5: National Security Solutions – Overview
National Security Solutions – Overview Revenue increased $29M, or 4% yoy, driven by: Revenue ($M) Increase in revenues associated with the U.K. 1000 $819 $848 Ministry of Defense program, partially offset by 800 Decline in revenues from Overseas Contingency 600 400 Operations (OCO) 200 Non-OCO
Slide 6: National Security Solutions – Awards & Backlog
National Security Solutions – Awards & Backlog Backlog ($M) Book to Bill $8,497 $8,538 $9,000 $8,026 4.5 4.0 $8,000 4.0 $7,000 $6,087 $5,859 3.5 $6,000 3.0 $5,000 $6,638 $6,752 2.5 $6,554 $4,000 $4,491 $4,073 2.0 $3,000 1.5 1.1 $2,000 1.0 0.7 0.4 0.4 $1,000 $1,596 $1,786 $1,859 $1,786 0.5 $1,472 $0
Slide 7: Health and Engineering – Overview
Health and Engineering – Overview Revenue increased $73M, or 20% yoy, due to: Revenue ($M) Growth in Federal Health business driven by ramp of 500 $432 $359 DHMSM program 400 300 Increase in engineering & security products revenues 200 Partially offset by lower volumes in commercial health 100
Slide 8: Health and Engineering – Awards & Backlog
Health and Engineering – Awards & Backlog Backlog ($M) $2,500 Book to Bill 1.6 1.5 $2,000 $1,931 $1,869 1.3 $1,706 $1,727 1.4 $1,611 1.2 $1,500 $884 $820 1.0 $645 $806 0.9 0.9 $636 0.8 0.8 $1,000 0.6 $500 $1,061 $975 $921 $1,047 $1,049 0.4 0.2 $0 0.0 4QFY15 1QCY15 2QCY15 3QCY15 4QCY15 4QFY15 1QCY15
Slide 9: Leidos Calendar Year 2016 Guidance
Leidos Calendar Year 2016 Guidance Revenue $5.1B to $5.3B Non-GAAP Diluted EPS* $2.75 to $2.95 Cash Flow from Continuing Operations At or above $275M * For a definition of Non-GAAP Diluted EPS please see slide 19. 9 ©2016 LEIDOS. ALL RIGHTS RESERVED.
Slide 10: Profit and Loss – GAAP
Profit and Loss – GAAP Percentage 4QCY15 4QFY15 Change (in millions, except for per share amounts) Revenues $ 1,281 $ 1,169 10% Cost of revenues 1,124 1,017 Selling, general and administrative expenses 52 73 Asset impairment charges - 40 Restructuring expenses 3 2 Operating income 102 37 176% Operat
Slide 11: Profit and Loss – Non-GAAP
Profit and Loss – Non-GAAP Percentage 4QCY15 4QFY15 Change (in millions, except for per share amounts) Revenues $ 1,281 $ 1,169 10% Cost of revenues 1,124 1,017 Selling, general and administrative expenses 52 73 Non-GAAP operating income from continuing operations1 105 79 33% Non-GAAP operating inco
Slide 12: Appendices
Appendices Working Days per Quarter GAAP Financial Information Non-GAAP Financial Information Calendar Year 2015 Reconciliation to Transition Period
Slide 13: Working Days per Quarter
Working Days per Quarter Year Q1 Q2 Q3 Q4 Total CY15 63 63 64 61 251 FY15 64 63 64 60 251 (Decrease) / Increase (1) 0 0 1 0 Note 1: In March 2015, Leidos announced a change in its fiscal year end from the Friday nearest the end of January to the Friday closest to the end of December. The first quart
Slide 14: Historical Financials ─ Segment Income
Historical Financials ─ Segment Income Statement 1QFY15 2QFY15 3QFY15 4QFY15 FY15 1QCY15 2QCY15 3QCY15 4QCY15 CY15 (in millions) National Security Segment Revenues $ 944 $ 925 $ 906 $ 819 $ 3,594 $ 862 $ 879 $ 878 $ 848 $ 3,467 Operating income $ 77 $ 78 $ 72 $ 59 $ 286 $ 62 $ 74 $ 78 $ 65 $ 279 Hea
Slide 15: Historical Financials ─ Income Statement
Historical Financials ─ Income Statement 1QFY15 2QFY15 3QFY15 4QFY15 FY15 1QCY15 2QCY15 3QCY15 4QCY15 CY15 (in millions, except for per share amounts) Revenues $ 1,312 $ 1,306 $ 1,276 $ 1,169 $ 5,063 $ 1,246 $ 1,257 $ 1,302 $ 1,281 $ 5,086 Cost of revenues 1,141 1,119 1,115 1,017 4,392 1,093 1,113 1
Slide 16: Historical Financials ─ Non-GAAP Income Statement
Historical Financials ─ Non-GAAP Income Statement 1QFY15 2QFY15 3QFY15 4QFY15 FY15 1QCY15 2QCY15 3QCY15 4QCY15 CY15 (in millions, except for per share amounts) Revenues $ 1,312 $ 1,306 $ 1,276 $ 1,169 $ 5,063 $ 1,246 $ 1,257 $ 1,302 $ 1,281 $ 5,086 Cost of revenues 1,141 1,119 1,115 1,017 4,392 1,09
Slide 17: Non-GAAP Operating Income Reconciliation
Non-GAAP Operating Income Reconciliation 1QFY15 2QFY15 3QFY15 4QFY15 FY15 1QCY15 2QCY15 3QCY15 4QCY15 CY15 (in millions) GAAP operating income (loss) from continuing operations $ 87 $ (410) $ 72 $ 37 $ (214) $ 38 $ 64 $ 94 $ 102 $ 298 Asset impairment charges - 510 17 40 567 40 29 4 - 73 Restructuri
Slide 18: Non-GAAP EPS Reconciliation
Non-GAAP EPS Reconciliation 1QFY15 2QFY15 3QFY15 4QFY15 FY15 1QCY15 2QCY15 3QCY15 4QCY15 CY15 (in millions, except for per share amounts) GAAP income (loss) from $ 45 $ (439) $ 38 $ 26 $ (330) $ 23 $ 37 $ 49 $ 127 $ 236 continuing operations Asset impairment charges - 510 17 40 567 40 29 4 - 73 Rest
Slide 19: Non-GAAP Definitions
Non-GAAP Definitions The Company's computation of non-GAAP operating income and non-GAAP diluted earnings per share from continuing operations, which may not be comparable to a similarly titled measure reported by other companies, uses GAAP operating income (loss) and income (loss) from continuing o
Slide 20: Calendar Year 2015 Reconciliation to Transition Period
Calendar Year 2015 Reconciliation to Transition Period As a result of the Company’s fiscal year end change, the Company’s Annual Report on Form 10-K to be filed with the Securities Exchange Commission on or before March 1, 2016 will cover the 11-month period from January 31, 2015 to January 1, 2016