Leidos Holdings, Inc. · NYSE:LDOS
Leidos — Q1 2017 Earnings Presentation
16 slides from Leidos's earnings presentation, May 4, 2017
Slide 1: Leidos 1Q 2017 Earnings Conference Call
Leidos 1Q 2017 Earnings Conference Call May 4, 2017
Slide 2: Forward-Looking Statements
Forward-Looking Statements Certain statements in this presentation contain or are based on “forward-looking” information within the meaning of the Private Securities Litigation Reform Act of 1995. Actual performance and results may differ materially from the guidance and other forward-looking statem
Slide 3: 1Q FY 2017 Highlights
1Q FY 2017 Highlights ► Highest level of Adjusted EBITDA Margin since 2013 split ► Return to growth in IS&GS business The new Leidos 2018 & beyond(1) ► Strong program performance 3% revenue growth 10%+ Adjusted EBITDA margin 100%+ cash efficiency ► Cost synergy plan on track ► Integration activities
Slide 4: Leidos 1Q FY 17 Results
Leidos 1Q FY 17 Results Non-GAAP Adjusted EBITDA Cash Flow from Revenue ($B) Diluted EPS Margin Operations ($)2 (%)2 ($M) +0%1 +14% -$74M +210bps 1Q FY 16 1Q FY 17 $2.6 10.0% 7.9% ($88) $0.88 ($14) $0.77 $1.3 $1.2 $1.2 1Q FY 16 1Q FY 17 1Q FY 16 1Q FY 17 1Q FY 16 1Q FY 17 Adjusted revenue of $1.23B
Slide 5: New Reportable Segments
New Reportable Segments Current Prior FY 2016 Revenue FY 2016 Revenue Corporate $7.0B Corporate $7.0B 0% 0% Civil ISGS 29% 28% Defense NSS Solutions 51% 55% Health HIS 16% 21% 5 ©2017 LEIDOS. ALL RIGHTS RESERVED.
Slide 6: Defense Solutions Segment
Defense Solutions Segment Revenue Non-GAAP Operating Income Non-GAAP Operating Margin ($M) ($M)2 (%)2 -1.4%1 +33.8% -180bps $1,294 $95 9.1% $71 7.3% $780 $769 1Q FY 16 1Q FY 17 1Q FY 16 1Q FY 17 1Q FY 16 1Q FY 17 Adjusted revenue of $769M in 1QFY17 excludes contributions from IS&GS acquisition. (1)
Slide 7: Civil Segment
Civil Segment Revenue Non-GAAP Operating Income Non-GAAP Operating Margin ($M) ($M)2 (%)2 -3.3%1 +283% +410bps $842 10.5% $88 6.4% $361 $275 $266 $23 1Q FY 16 1Q FY 17 1Q FY 16 1Q FY 17 1Q FY 16 1Q FY 17 Adjusted revenue of $275M in 1QFY16 and $266M in 1QFY17 represent organic revenue comparisons, w
Slide 8: Health Segment
Health Segment Revenue Non-GAAP Operating Income Non-GAAP Operating Margin ($M) ($M)2 (%)2 +11.1%1 +313% +550bps $443 14.9% $66 9.4% $171 $190 $16 1Q FY 16 1Q FY 17 1Q FY 16 1Q FY 17 1Q FY 16 1Q FY 17 Adjusted revenue of $190M in 1QFY17 excludes contributions from IS&GS acquisition. (1) Organic grow
Slide 9: Awards & Backlog
Awards & Backlog Defense Solutions Civil Health $9,000 $8,107 $8,000 $7,577 $8,000 $7,200 $7,062 $7,000 $3,000 Backlog* ($M) $7,000 $6,000 $6,000 $2,500 $2,429 $2,250 $4,936 $5,000 $5,005 $5,000 $2,000 $5,250 $5,466 $4,000 $1,575 $4,000 $1,500 $1,566 $3,000 $3,000 $2,000 $1,000 $2,000 $1,000 $1,950
Slide 10: 2017 Guidance Unchanged
2017 Guidance Unchanged Current Prior Revenue Unchanged $10.0B to $10.4B Adjusted EBITDA Margin(1) Unchanged 9.5% to 10.0% Non-GAAP Diluted EPS(1) Unchanged $3.05 to $3.35 Effective Tax Rate Unchanged ~37% Operating Cash Flow from Continuing Operations Unchanged Meet or exceed $475M(2) (1) A quantit
Slide 11: Appendix
Appendix * leidos
Slide 12: Non-GAAP Reconciliations
Non-GAAP Reconciliations This presentation includes certain non-GAAP financial measures, such as non-GAAP operating income, non-GAAP operating income margin, non-GAAP income from continuing operations, non-GAAP diluted earnings per share (EPS), adjusted earnings before interest, taxes, depreciation
Slide 13: Definition of Non-GAAP Financial Measures
Definition of Non-GAAP Financial Measures Non-GAAP operating income is computed by excluding the following items from income (loss) from continuing operations: (i) other (expense) income, net; (ii) interest expense; (iii) interest income; (iv) income tax expense adjusted to reflect non-GAAP adjustme
Slide 14: Non-GAAP Operating Income Reconciliation
Non-GAAP Operating Income Reconciliation 1QCY151 2QCY151 3QCY151 4QCY151 CY151 1QFY16 2QFY16 3QFY16 4QFY16 FY16 1QFY17 (in millions) GAAP operating income from continuing operations $ 38 $ 64 $ 94 $ 102 $ 298 $ 89 $ 75 $ 101 $ 152 $ 417 $ 141 Acquisition and integration costs - - - - - 9 15 44 22 90
Slide 15: Non-GAAP Financial Measures Reconciliation
Non-GAAP Financial Measures Reconciliation 1QCY151 2QCY151 3QCY151 4QCY151 CY151 1QFY162 2QFY16 3QFY16 4QFY16 FY16 1QFY17 (in millions, except for per share amounts) Non-GAAP operating income from continuing operations $ 82 $ 96 $ 101 $ 107 $ 386 $ 99 $ 93 $ 177 $ 240 $ 609 $ 242 Depreciation expens
Slide 16: Segment Non-GAAP Operating Income Reconciliation
Segment Non-GAAP Operating Income Reconciliation Quarter Ended March 31, 2017 (in millions) Operating income Acquisition and Amortization of Restructuring Non-GAAP operating (loss) integration costs intangibles expenses income (loss) Defense Solutions $ 79 $ - $ 16 $ - $ 95 Civil 54 - 34 - 88 Health