Booz Allen Hamilton Holding Corporation · NYSE:BAH
Booz Allen Hamilton — Q3 FY2018 Earnings Presentation
32 slides from Booz Allen Hamilton's earnings presentation, Feb 6, 2018
Slide 1: Investor Presentation February 2018 – Fiscal Year 2018 Third Quarter
Investor Presentation February 2018 Fiscal year 2018 Third quarter Exhibit 99.1
Slide 2: Disclaimer: Forward Looking Safe Harbor Statement
Disclaimer Forward Looking Safe Harbor Statement Certain statements contained in this presentation and in related comments by our management include “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Examples of forward-looking statements include
Slide 3: Key investment themes
Key investment themes industry leading organic Revenue growth Differentiated business model prevailing in competitive market for skilled labor Strong cash generation and effective capital deployment
Slide 4: A leader with a proud history
A leader with a proud history Company Overview We are a global firm of approximately 24,747 diverse, passionate, and exceptional people driven to excel, do right, and realize positive change in everything we do. We bring bold thinking and a desire to be the best in our work in consulting, analytics,
Slide 5: Company History
Company History 1914 1940 1949 1987 1992 1996 2001 2008 2010 2012 2013 2014 2015 2016 Founded by Edwin Booz in Chicago Received NASA space station contract (first contract over $100M) Supported GSA in overhauling its telecommunications network (largest contract to date at that time at $620M) Spin-of
Slide 6: Service offerings
Service offerings Digital Solutions Engineering Cyber Analytics Directed Energy Digital Solutions Network Cyber Futures Data Science & Machine Intelligence Engineering delivers in-depth technical solutions to our clients’ most challenging problems with core capabilities in command, communications, a
Slide 7: History of revenue growth
History of revenue growth (1) All years represent FYE March 31. FY96 through FY05 revenue is based on revenue derived directly from Booz Allen’s accounting system (JAMIS). FY06 and later revenue is based on revenue derived directly from Booz Allen’s consolidated financial statements, which have been
Slide 8: High-Quality and Diversified Contract Portfolio
High-Quality and Diversified Contract Portfolio Our Diversified revenue base minimizes volatility Delivered on over 4,800 U.S. government contracts and task orders (1) Largest definite contract accounted for 2.8% of revenue 76% of revenue was derived from over 3,900 active task orders under indefini
Slide 9: Diversified client base
Diversified client base Commercial: Financial Services, Utilities, Energy, Retail, Manufacturing, Healthcare International: Middle East, North Africa Region, and Select Asian Markets GLOBAL COMMERCIAL (2.6%) U.S. Intelligence Agencies: National Security Agency, National Geospatial-Intelligence Agenc
Slide 10: Strong backlog growth
strong Backlog growth ($ in billions) (1) FY13 backlog excludes backlog gained in the BES acquisition. robust backlog provides revenue visibility
Slide 11: Growth strategy
growth strategy Key Elements Moving closer to the center of our clients’ core mission Increasing the technical content of our work Attracting and retaining superior talent in diverse areas of expertise Leveraging innovation to deliver complex, differentiated, end-to-end solutions Creating a broad ne
Slide 12: Key areas of differentiation
Key areas of differentiation We attribute our business and financial success to five key features Our culture Our purpose, as a firm, is to empower people to change the world, and we are committed to our employees Our strategy Successful execution of Vision 2020 reflects our ability to reinvent ours
Slide 13: Strong hiring trends
Strong hiring trends 52% of our people doing client work are technologists or sit in technology roles, compared to 43% in 2014 Percentages based on total client headcount as of December 31, 2017 Fiscal Year headcount based on Q4 totals, unless otherwise stated We are Prevailing in a competitive mark
Slide 14: Long-term shareholder value
Long-term shareholder value We are creating value from accelerating growth through a virtuous cycle Positions Us to Win Additional Work and Attract the Right Talent Results in High-Quality Work for Clients and Strong Financial Performance Doing Work at the Center of Clients’ Missions Allows us to Id
Slide 15: Quarterly performance: Q3 FY18
quarterly performance: q3 fy18
Slide 16: Key highlights third quarter fiscal year 2018
Key highlights third quarter fiscal year 2018 Maintaining position as the government services industry organic revenue growth leader (1) Accelerating growth in Revenue, Excluding Billable Expenses compared to the prior year period Raising full-year revenue and Adjusted Diluted EPS guidance Experienc
Slide 17: Third Quarter Fiscal Year 2018 financial results
financial results Third Quarter Fiscal year 2018 results Third Quarter (1) Year to date (1) Revenue $1.5 billion 6.8% Increase $4.5 billion 7.4% Increase Revenue, Excluding Billable Expenses $1.1 billion 8.3% Increase $3.2 billion 7.0% Increase Net Income $69.8 million 25.5% Increase $220.2 million
Slide 18: Capital allocation
Capital allocation Delivering strong capital returns through Flexible capital Deployment strategy Strategy remains unchanged: Convert approximately 100 percent of Adjusted Net Income to Free Cash Flow Aim to deploy at least 100 percent of Free Cash Flow to support acquisitions, share repurchases, an
Slide 19: Financial outlook: raising full year guidance
financial Outlook Raising Full Year guidance Fiscal 2018 full year outlook Revenue Growth in the Range of 5.5 to 7.5 Percent Diluted EPS (1) $1.86 - $1.94 Adjusted Diluted EPS (1) $1.87 - $1.95 (1) Comparisons are to prior fiscal period These EPS estimates are based on fiscal 2018 estimated average
Slide 20: Highest Q3 book-to-bill since our IPO
Highest Q3 BTB since our ipo (1) Q3FY13 Book to Bill excludes the addition of backlog gained in the BES acquisition Quarterly book to bill trend Highest Q3 BTB since our IPO and we are setting ourselves up for continued momentum: Anticipating client needs and advancing their missions Pivoting to whe
Slide 21: Appendix
Appendix
Slide 22: Non-GAAP financial information
Non-gaap financial information “Revenue, Excluding Billable Expenses" represents revenue less billable expenses. We use Revenue, Excluding Billable Expenses because it provides management useful information about the Company's operating performance by excluding the impact of costs that are not indic
Slide 23: Non-GAAP financial information
Non-gaap financial information (a) Reflects amortization of intangible assets resulting from the Acquisition for the three and nine months ended December 31, 2016. (b) Reflects debt refinancing costs incurred in connection with the refinancing transaction consummated on July 13, 2016. (c) Reflects t
Slide 24: Shareholder and stock information
Shareholder and stock information Booz ALLEN Hamilton holding corporation’s class a common stock began trading on the new York stock exchange (nyse) on Nov 17, 2010 Fiscal Year – Booz Allen Hamilton Holding Corporation’s fiscal year starts April 1 and ends March 31 Share Price Information – Booz All
Slide 25: Shareholder and stock information: dividends
Shareholder and stock information Booz Allen has utilized distributions (recurring and special) as part of its capital deployment strategy Regular: The firm has issued regular dividends each quarter since FY12 and has increased the dividend periodically when deemed appropriate. A history of past div
Slide 26: Shareholder and stock information: transfer agent and leadership
Shareholder and stock information Transfer Agent & Registrar Computershare www.computershare.com/investor/ P.O. Box 30170 College Station, TX 77842-3170 Phone: 866-390-3908 Computershare maintains records for registered stockholders and provides stockholder services at no charge, including: Independ
Slide 27: Shareholder and stock information: contact information
Shareholder and stock information Website: investors.boozallen.com Contact Information Investor Relations Curt Riggle Vice President of Investor Relations 703/377-5332 Riggle_Curt@bah.com Media James Fisher Principal, Media Relations 703/377-7595 Fisher_James_W@bah.com Corporate Governance Nancy Lab
Slide 28: Financial and operational highlights
Financial and operational highlights a All interim periods reflect unaudited numbers while annual numbers are audited. b Basic and diluted weighted average shares outstanding and earnings per common share amounts are calculated using the two-class method. Condensed consolidated statement of operatio
Slide 29: Financial and operational highlights: non-GAAP information
Financial and operational highlights Unaudited non-gaap financial information (a) a The use and definition of Non-GAAP financial measurements can be found in the Company's public filings. b Reflects amortization of intangible assets resulting from the acquisition of our Company by The Carlyle Group.
Slide 30: Financial and operational highlights: non-GAAP information
Financial and operational highlights Unaudited non-gaap financial information (a) a The use and definition of Non-GAAP financial measurements can be found in the company's public filings. b Reflects amortization of intangible assets resulting from the acquisition of our Company by The Carlyle Group.
Slide 31: Additional operating data
Additional operating data (a) Financial and operational highlights a All interim periods reflect unaudited numbers while annual numbers are audited. b Calculated as the change in total backlog during the relevant fiscal quarter plus the relevant fiscal quarter revenue, all divided by the relevant fi
Slide 32: Other key financial metrics
Financial and operational highlights a All interim periods reflect unaudited numbers while annual numbers are audited. b Cash flow numbers are on a year-to-date basis for all periods presented. c In Q4 FY2016 the Company adopted two Accounting Standards Updates issued by the Financial Accounting Sta
Booz Allen Hamilton Holding — Q3 FY2018 Earnings Presentation on 6ix