Science Applications International Corporation · NASDAQ:SAIC
Science Applications International — Q2 2023 Earnings Presentation
22 slides from Science Applications International's earnings presentation, Sep 1, 2022
Slide 1: Fiscal Year 2023 Second Quarter Earnings Call
Science Applications International Corporation Fiscal Year 2023 Second Quarter Earnings Call Supplemental Financial Presentation September 1, 2022
Slide 2: SAIC. Bring on Tomorrow
SAIC. BRING ON TOMORROVV, We're not just another company that solves problems, No, we're a company that never stops reaching. Never stops pushing beyond our limits. To rethink engineering in a digital world, we reached. To redefine space training through virtual reality, we reached. To redesign new
Slide 3: Forward Looking Statement
Forward Looking Statement Certain statements in this presentation are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “may,” “will,” “should,” “expects,” “intends,” “projects,” “plans,” “believes,” “estimates,” “targets,” “antici
Slide 4: Today's Presenters
Today’s Presenters Nazzic Keene Prabu Natarajan Chief Executive Officer Chief Financial Officer SAIC PROPRIETARY INFORMATION I © SAIC. ALL RIGHTS RESERVED I 4
Slide 5: SAIC PROPRIETARY INFORMATION I © SAIC. ALL RIGHTS RESERVED I
SAIC PROPRIETARY INFORMATION I © SAIC. ALL RIGHTS RESERVED I 5
Slide 6: SAIC's Enterprise Focus Areas
SAIC’s Enterprise Focus Areas Strategy designed to capture accelerated share across a focused set of market needs • Engineering and integration leader accelerating system development, modernization, and sustainment SAIC MARKET POSITION • Accelerating, securing, and transforming digital environments
Slide 7: SAIC Valkyrie Counter UAS Solution
SAIC Valkyrie Counter UAS Solution Significant progress in 2022 draws upon prior CUAS market experience 2022 Downselect to Test and Demo at the JCO CUAS Event JCO 22.1 CaaS Recent performance driving encouraging adoption trends with further potential upside SAIC PROPRIETARY INFORMATION I © SAIC. ALL
Slide 8: SAIC CloudScend: Accelerating Modernization
SAIC CloudScend: Accelerating Modernization Accelerating cloud migration with speed to value P E OP LE Program Management Analysts & Architects Agile Dev Teams Managed Services Team Build Plans Deploy AWS, Azure, Ingest App GCP, Oracle, Portfolios & Private Cloud PROCESS Analyze • Cloud One win leve
Slide 9: Joint All Domain Command and Control
Joint All Domain Command and Control SAIC solutions enable missions from global to edge SAIC Objective Differentiators Establish SAIC as a platform agnostic integrator that Digital Engineering transforms the C5ISR architecture to ensure the timely Cloud Modernization and resilient flow of data t
Slide 10: FY2023 Q2 Highlights
FY2023 Q2 Highlights Organic Revenue Roughly Flat Adjusting for Fewer Working Days Adj. EBITDA* Margins Consistent with Expectations Q2 Adjusted EBITDA Margin * of 9.1% Increasing FY23 Guidance for Revenue, Adjusted Diluted EPS* Continue to Expect >10% Free Cash Flow* Growth in FY23 and FY24 Q2 Awar
Slide 11: FY2023 Q2 Results
(1) FY2023 Q2 Results ADJUSTED ADJUSTED REVENUE FREE CASH FLOW(2) EBITDA MARGIN (2)(3) DILUTED EPS (2)(4) ~0% total -2% organic -100 bps -11% -13% $1.84B $1.83B 10.1% $1.97 $85M 9.1% $1.75 $74M FY2022 FY2023 FY2022 FY2023 FY2022 FY2023 FY2022 FY2023 Q2 Q2 Q2 Q2 Q2 Q2 Q2 Q2 (1) Results of Science App
Slide 12: FY2023 YTD Results
(1) FY2023 YTD Results ADJUSTED ADJUSTED REVENUE FREE CASH FLOW(2) EBITDA MARGIN (2)(3) DILUTED EPS (2)(4) +3% total -100 bps -8% -25% +1% organic 9.9% $3.83B $3.92 8.9% $249M $3.71B $3.62 $187M FY2022 FY2023 FY2022 FY2023 FY2022 FY2023 FY2022 FY2023 YTD YTD YTD YTD YTD YTD YTD YTD (1) Results of Sc
Slide 13: Fiscal Year 2023 Guidance
Fiscal Year 2023 Guidance Current Prior New business, extra working days, on-contract, and Revenue acquired revenue growth offset by contract transitions $7.50B - $7.55B $7.43B - $7.55B Low-single digit decline in F3Q, low-single digit increase in F4Q * Adjusted EBITDA % ~8.9% ~8.9% Reflects c
Slide 14: SAIC Historical Share Repurchase Authorizations
SAIC Historical Share Repurchase Authorizations Incremental Repurchase Avg. Annualized Total Approximate Avg. Shares Avg. Price of Authorization Shares Added Authorization FCF** / Share “Current” Months to Repurchased Repurchased Date to as % of Diluted During Authorization Complete per Month Shares
Slide 15: SAIC Historical Backlog and Book-to-Bill
SAIC Historical Backlog and Book-to-Bill $25 2.2x 0.9x 0.7x 1.2x 1.0x 1.1x 2.7x 0.4x $20 Total Backlog ($ in billions) 2.6x 0.9x 1.5x $15 0.8x 1.2x 1.4x 0.9x 1.4x 1.0x 0.8x $10 $5 $0 F1Q19 F2Q19 F3Q19 F4Q19 F1Q20 F2Q20 F3Q20 F4Q20 F1Q21 F2Q21 F3Q21 F4Q21 F1Q22 F2Q22 F3Q22 F4Q22 F1Q23 F2Q23 Backlog D
Slide 16: Appendix
Appendix
Slide 17: Working Days Per Quarter
Working Days Per Quarter Q1 Q2 Q3 Q4 Total FY24 64 62 63 60 249 FY23 64 62 63 65 254 FY22 64 63 63 60 250 FY21 64 63 63 60 250 FY20 64 63 63 60 250 FY19 64 63 63 60 250 SAIC PROPRIETARY INFORMATION I © SAIC. ALL RIGHTS RESERVED I 17
Slide 18: Non-GAAP Reconciliation – EBITDA and Adjusted EBITDA
Non-GAAP Reconciliation – EBITDA and Adjusted EBITDA (1) EBITDA is a performance measure that is calculated by taking net income and excluding interest and loss on sale of receivables, provision for income taxes, and depreciation and amortization. Adjusted EBITDA and adjusted operating income are pe
Slide 19: Non-GAAP Reconciliation – Adjusted Diluted Earnings per Share
Non-GAAP Reconciliation – Adjusted Diluted Earnings per Share (1) Adjusted diluted earnings per share is a performance measure that excludes acquisition and integration costs, impairments, restructuring costs, and any other material non-recurring costs that we do not consider to be indicative of our
Slide 20: Non-GAAP Reconciliation – Free Cash Flow
Non-GAAP Reconciliation – Free Cash Flow (1) “Free cash flow” is a non-GAAP financial measure that is reconciled in this schedule to the most directly comparable GAAP financial measures. This non-GAAP financial measure provides investors with greater visibility into cash flows provided by operating
Slide 21: Non-GAAP Reconciliation – FY23 Free Cash Flow Guidance
Non-GAAP Reconciliation – FY23 Free Cash Flow Guidance (1) “Free cash flow” is a non-GAAP financial measure that is reconciled in this schedule to the most directly comparable GAAP financial measures. This non-GAAP financial measure provides investors with greater visibility into cash flows provided
Slide 22: Bring On Tomorrow
BRING ON TOMORROVY TAKING THE WORLD WHERE IT’S NEVER BEEN BEFORE. SAIC.
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