Caci International, Inc. · NYSE:CACI
Caci International — Q4 FY2010 Earnings Presentation
19 slides from Caci International's earnings presentation, Aug 18, 2010
Slide 1: CACI International Inc Fourth Fiscal Quarter FY10 Earnings Conference Call
CACI International Inc Fourth Fiscal Quarter FY10 Earnings Conference Call August 18, 2010 A National Asset for National Priorities 1
Slide 2: Forward-looking Statements
Such statements are subject to factors that could cause actual results to differ materially from anticipated Forward-looking Statements results. The factors that could cause actual results to differ materially from those anticipated include, but are not limited to, the following: regional and nation
Slide 3: Participants
Participants Participants for today’s call: —Paul Cofoni President & Chief Executive Officer —Tom Mutryn Chief Financial Officer —Bill Fairl President of U.S. Operations —Randy Fuerst Chief Operating Officer, U.S. Operations A National Asset for National Priorities Q4 FY10 3
Slide 4: CEO Overview
CEO Overview Another year of meeting our major financial objectives: — Organic revenue growth of mid- to high-single digits — Double-digit earnings growth Remain confident in our outlook — Initiatives announced by Secretary Gates will present new opportunities for CACI A National Asset for Natio
Slide 5: CEO Overview
CEO Overview Excellent fourth quarter — Revenue grew over 16%; net income, nearly 9% — Record level of contract funding orders — Strong operating cash flow — DSOs at a record low level Exceptional fiscal year for CACI — Grew in each of our core competencies — Record revenue, net income, diluted
Slide 6: CEO Overview
CEO Overview Confident that execution of our strategy will generate results projected in FY11 guidance — Asymmetric threat of global terrorism remains high Secretary Gates initiatives and CACI: — CACI work at BTA to be shifted to other organizations — Negligible impact by elimination of The Join
Slide 7: CEO Overview
CEO Overview Demand continues high for CACI services in C4ISR and Intelligence and Security Services Vulnerability to cyber attacks will lead to more demand for our cyber solutions — CACI a recognized thought leader on cyber threats and solutions Improving efficiency and effectiveness of DoD’s
Slide 8: CEO Overview
CEO Overview Demand drivers give us the confidence that FY11 will be another year of strong growth — Level of pending awards is higher than ever — Very full pipeline for next several years — Open personnel requisitions at a two-year high and growing Achieved CMMI© Level 3 rating across entire co
Slide 9: Financial Overview
Financial Overview Up 2.7% Up 16.4% Revenu Operating e Income $ in millions $ in millions Revenue increase in quarter driven by: Positive effect of growth in direct labor • Organic revenue growth of 14.3% and ODCs partially offset by higher stock • Direct labor growth of 9.0% compensation expense an
Slide 10: Financial Overview
Financial Overview Non-cash stock compensation expense: — Revised in 2009 to provide performance-based restricted stock — Stock vesting ratably over three to four years — 2009 and 2010 grants based on FY10 net income • FY10 net income performance metrics exceeded — Expense for equity grants with p
Slide 11: Financial Overview
Financial Overview Treatment of acquisition-related contingent consideration (earnouts): — In FY10, acquired three companies, all with 2 year earnouts — New accounting rules require: • Determination of fair value of expected earnout as of acquisition date; record on balance sheet • Re-evaluation o
Slide 12: Financial Overview
Financial Overview • UK operations: • Revenue up 41.8% in quarter, 47.1% for the year • Net income up 42.0% in quarter, 59.7% for the year CACI Net Income Up 8.8% $ in millions $0.96 $0.91 Diluted EPS Up 6.5% Effective tax rate—37.8% for the quarter, 36.5% for the year A National Asset for National
Slide 13: Financial Overview
Financial Overview DSO s Cash and equivalents at 6/30 of $255 million Cash flow from operations at $209 million for the year, $86 million for the quarter Free cash flow (operating cash flow – capital expenditures) = $187 million Diluted adjusted EPS in FY10 of $5.39 vs diluted GAAP EPS OF $3
Slide 14: CACI Guidance for FY11
FY11 Guidance CACI Guidance for FY11 (AsRevenue of August (millions) 17, 2010) $3,250 - $3,400 Net Income (millions) $116 - $122 Diluted EPS $3.70 - $3.90 Diluted shares (millions) 31.3 FY11 revenue expected to be 3 – 8% over ’10 FY11 net income expected to be 9 – 15% over ’10 FY11 diluted EPS expec
Slide 15: Operations Overview
Operations Overview Contract funding orders grew 16% in the quarter; 14% for the year — 80% of projected FY11 business to come from contracts already held; 20% from recompetes and new business Received approximately $293 million in awards; $2 billion for the year — Won all major recompetes in FY
Slide 16: Operations Overview
Operations Overview U.S. Operations achieved CMMI© Level 3 rating — Norfolk division achieved CMMI Level 5 rating — High-level CMMI recognition assures our clients of high quality and best practices in software and systems engineering Intelligence business grew 20.4% in the quarter, 21.2% for th
Slide 17: Operations Overview
Operations Overview Open hiring requisitions > 400 Total of approximately 20 employees working at JFCOM, OSD NII and J-6 Approximately 160 people at BTA — Will see no negative impact as a result of closure FY10 voluntary attrition rate lowest in 6 years A National Asset for National Prioriti
Slide 18: Operations Overview
Operations Overview Performance metrics of U.S. Operations point in right direction: — Contract funding orders and funded backlog — Recompete win rate — Opportunity pipeline — Hiring — Retention A National Asset for National Priorities Q4 FY10 18
Slide 19: CEO Closing Comments
CEO Closing Comments Expect to deliver another year of strong financial performance in FY11 Our services and solutions are vital to the most critical missions — Demand remains strong Our services are aligned with funding priorities of proposed FY11 budget — Will support government’s transforma