Caci International, Inc. · NYSE:CACI
Caci International — Q2 2023 Earnings Presentation
16 slides from Caci International's earnings presentation, Jan 26, 2023
Slide 1: CACI International Inc Q2 FY23 Earnings Conference Call
CACI International Inc Q2 FY23 Earnings Conference Call January 26, 2023 CACI Proprietary Information CACI Proprietary Information
Slide 2: Forward-looking Statements
Forward-looking Statements There are statements made herein that do not address historical facts and, therefore, could be interpreted to be forward- looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such statements are subject to risk factors that co
Slide 3: On Today's Call
On Today’s Call John Mengucci Jeffrey MacLauchlan President and Chief Chief Financial Officer Executive Officer 3 | CACI Proprietary Information CACI Q2 FY23 Earnings Conference Call
Slide 4: Q2 FY23 Financial Highlights
Q2 FY23 Financial Highlights Revenue +11%, organic growth +6% Growth in both Expertise +8% and Technology +14% Adjusted EBITDA Margin 10.2%1 Awards of $3.5 billion, 70% new business to CACI Q2 book-to-bill of 2.1x, trailing twelve months book-to-bill 1.5x 1 See slides at the end of this presentation
Slide 5: Constructive Macro Environment
Constructive Macro Environment Strong market demand GFY23 budget enacted Budgets includes healthy addressable increases CACI well-aligned to critical national security priorities Positioned to deliver innovation to customers and value to shareholders 5 | CACI Proprietary Information CACI Q2 FY23 Ear
Slide 6: Winning in the Marketplace
Winning in the Marketplace USAF Enterprise IT as-a-Service (EITaaS) Wave 1 Air Force reaffirms award to CACI – subsequent re-protest still to resolve Large cyber-related Mission Expertise contract Network and exploitation analysis supporting foreign intel and cyber missions – protested Seeing increa
Slide 7: Flexible and Opportunistic Capital Deployment
Flexible and Opportunistic Capital Deployment Internal Capital Returns Strategic M&A Investments to Shareholders $750 million share repurchase program authorization Latest Action: Expect to imminently execute $250 million accelerated share repurchase (ASR) Healthy long-term cash flow, strong balance
Slide 8: Q2 Financial Summary
Q2 Financial Summary Revenue (Ms) EPS (GAAP) $1,800 $5.00 $1,649 $1,600 +11.0% $4.00 $3.83 -3.9% $3.68 $1,486 $3.00 $1,400 $2.00 $1,200 $1.00 $1,000 $0.00 Q2 FY22 Q2 FY23 Q2 FY22 Q2 FY23 Organic revenue growth +6.2%, driven by Adjusted EPS1 $6.00 new wins and on-contract growth $5.00 $4.39 -2.5% $4.
Slide 9: Cash Flow and Capital Deployment
Cash Flow and Capital Deployment Cash Flow1 and CapEx ▪ Q2 FY23 cash flow includes $47 million (millions, TTM) payment of deferred payroll taxes (CARES $800 Act) and $46 million payment related to $700 Section 174 of the Tax Cuts and Jobs Act of $600 2017 $500 $400 ▪ Days Sales Outstanding of 51 day
Slide 10: FY23 Guidance
FY23 Guidance FY23 Guidance Revenue growth of ~4.5% to ~7.5% Revenue $6,475 – $6,675 (millions) Adjusted EBITDA Margin1 in the mid-to-high 10% range Adjusted Net Income1 $420 – $440 (millions) Free Cash Flow now includes $95 million tax payment due to Adjusted Diluted EPS1 $17.65 – $18.49 Section 17
Slide 11: Positive Forward Indicators
Positive Forward Indicators Q2 FY23 contract awards of $3.5 billion 95% STRONG TTM Book-to-Bill of 1.5x Existing Business Performance Backlog of $26.5 billion, +10% YoY <3% HIGH Pipeline of submitted bids: $6.6 billion Recompetes Win Rate ~65% for new business <3% QUALITY Bids expected to be submitt
Slide 12: Good 1H FY23 Performance
Good 1H FY23 Performance Strong growth, profitability, and cash flow Healthy awards, growing backlog, and robust pipeline of opportunities On track to achieve full-year guidance Revenue and margin growth, driving free cash flow per share growth Flexible and opportunistic capital deployment Talented,
Slide 13: Definitions of Non-GAAP Measures
Definitions of Non-GAAP Measures Adjusted net income and Adjusted diluted EPS are non-GAAP performance measures. We define Adjusted net income and Adjusted diluted EPS as GAAP net income and GAAP diluted EPS, respectively, excluding intangible amortization expense and the related tax impact as we do
Slide 14: Reconciliation of Net Income to Adjusted Net Income and Diluted EPS
Reconciliation of Net Income to Adjusted Net Income and Diluted EPS to Adjusted Diluted EPS (Unaudited) (in thousands, except per share data) Three Months Ended Six Months Ended 12/31/2022 12/31/2021 % Change 12/31/2022 12/31/2021 % Change Net income, as reported $ 87,101 $ 90,299 -3.5% $ 176,226 $
Slide 15: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income to Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA) (Unaudited) Three Months Ended Six Months Ended (in thousands) 12/31/2022 12/31/2021 % Change 12/31/2022 12/31/2021 % Change Net income $ 87,101 $ 90,299 -3.5% $ 176,226 $ 178,40
Slide 16: Reconciliation of Operating Cash Flow to Free Cash Flow
Reconciliation of Net Cash Provided by Operating Activities to Net Cash Provided by Operating Activities Excluding MARPA and to Free Cash Flow (Unaudited) Three Months Ended Six Months Ended (in thousands) 12/31/2022 12/31/2021 12/31/2022 12/31/2021 Net cash provided by operating activities $ 62,247