Science Applications International Corporation · NASDAQ:SAIC
Science Applications International — Q1 2024 Earnings Presentation
22 slides from Science Applications International's earnings presentation, Jun 5, 2023
Slide 1: Fiscal Year 2024 First Quarter Earnings Call
SCIENCE APPLICATIONS INTERNATIONAL CORPORATION Fiscal Year 2024 First Quarter Earnings Call Supplemental Financial Presentation June 5, 2023
Slide 2: SAIC PROPRIETARY INFORMATION I © SAIC. ALL RIGHTS RESERVED I
SAIC PROPRIETARY INFORMATION I © SAIC. ALL RIGHTS RESERVED I 2
Slide 3: Forward Looking Statements
Forward Looking Statements 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,” “antic
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: Building a Differentiated Employee Experience and Culture
Building a Differentiated Employee Experience and Culture 1 Developing Our Leaders to Be the Best in Our Industry Continuous Purpose & Learning Connection Upskilling Our Talent to Build a Sustainable 2 Workforce for the Future WELL- 3 Fostering a Culture of Growth and Wellbeing Diversity, Equity & B
Slide 6: Building Homes for Heroes
BUILDING HOMES FOR HEROES We give back to severely injured veterans and their families by gifting mortgage-free homes and raising funds through the national nonprofit organization In 2013, SAIC joined forces with Building Homes for Heroes (BHH), which builds and modifies homes and then gifts them —
Slide 7: FY2024 First Quarter Highlights
FY2024 First Quarter Highlights 3.5% pro-forma organic growth Adjusted EBITDA margin* of 9.3%, +60 bps Y/Y Strong FCF * of $76M; ~$175M after normalizing for payroll cycles Targeting >$1.3B of capital returns to shareholders by FY26 Focus on organic growth, ROIC and capital allocation *Adjusted EBIT
Slide 8: Focused Business Model and Strategy
Focused Business Model and Strategy MARGIN IMPROVEMENT, CAPITAL DEPLOYMENT DRIVE ROIC INCREASED ROIC REPRESENTS KEY DRIVER OF VALUATION UPSIDE 18% 30x 16% Peer 3 SAIC Return on Invested Capital(1) 26x Enterprise Value to Adj. FCF(2) 14% 12% 22x SAIC 10% Peer 2 in FY26 18x Peer 1 Assuming midpoint of
Slide 9: FY2024 Q1 Results
FY2024 Q1 Results(1) ADJUSTED ADJUSTED REVENUE FREE CASH FLOW(2) EBITDA MARGIN (2)(3) DILUTED EPS (2)(4) $2.14 $2.028B $113M $1.996B 9.3% $1.88 8.7% $76M FY2023 FY2024 FY2023 FY2024 FY2023 FY2024 FY2023 FY2024 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 (1) Results of Science Applications International Corporation and
Slide 10: Fiscal Year 2024 Guidance
Fiscal Year 2024 Guidance PRIOR FISCAL IMPACT FROM IMPACT FROM IMPROVED CURRENT FISCAL YEAR YEAR 2024 GUIDANCE L&SCM IN F1Q24 PERFORMANCE 2024 GUIDANCE Revenue $7.05B - $7.20B +$35M +$15M $7.125B - $7.225B Adjusted EBITDA Margin (1) 9.2% - 9.4% NM - 9.2% - 9.4% Adjusted Diluted EPS (1) $6.80 - $7.00
Slide 11: Solid Organic Revenue Growth Expected to Continue
Solid Organic Revenue Growth Expected to Continue 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% FY22 FY23 FY24 Target FY25 Target FY26 Target SAIC Adjusted Organic Growth FY21 FY22 FY22 FY23 FY23 FY24 FY24 FY25 FY25 FY26 + + + + + Revenues, as Reported $7,056 $7,394 $7,394 $7,704 $7,704 $7,175 $7,175 $7,200 $7
Slide 12: Multi-Year Financial Targets
Multi-Year Financial Targets FY24 FY25 FY26 Revenue $7.125B - $7.225B $7.1B - $7.3B $7.3B - $7.5B Adjusted EBITDA Margin* 9.2% - 9.4% 9.4% - 9.6% 9.5% - 9.7% Adjusted Earnings per $7.00 - $7.20 $7.60 - $7.80 $8.50 - $8.70 Share* Weighted Average Diluted ~54M ~51M ~48M Shares Outstanding Free Cash Fl
Slide 13: SAIC Historical Share Repurchase Authorizations
SAIC Historical Share Repurchase Authorizations REPURCHASE AVG. ANNUALIZED INCREMENTAL TOTAL APPROXIMATE AVG. SHARES AVG. PRICE OF AUTHORIZATION AUTHORIZATION FCF** / SHARE SHARES ADDED TO “CURRENT” MONTHS TO REPURCHASED REPURCHASED DATE AS % OF DILUTED DURING AUTHORIZATION AUTHORIZATION COMPLETE PE
Slide 14: SAIC Historical Backlog and Book-to-Bill
SAIC Historical Backlog and Book-to-Bill Backlog TTM Book-to-Bill $25 2.5x Total Backlog ($ in billions) $20 2.0x $15 1.5x $10 1.0x $5 0.5x $0 0.0x F1Q19 F2Q19 F3Q19 F4Q19 F1Q20 F2Q20 F3Q20 F4Q20 F1Q21 F2Q21 F3Q21 F4Q21 F1Q22 F2Q22 F3Q22 F4Q22 F1Q23 F2Q23 F3Q23 F4Q23 F1Q24 BACKLOG DURATION (YEARS) 3
Slide 15: Appendix
Appendix
Slide 16: 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 16
Slide 17: Payroll Cycles per Quarter
Payroll Cycles per Quarter Q1 Q2 Q3 Q4 Total FY25 7 6 7 6 26 FY24 7 6 7 6 26 FY23 6 7 6 7 26 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 the impact of non-recurring transactions that we do not consider to be indicative of our ongoing operating performance. The acquisition and integration costs r
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 – FY24 Free Cash Flow Guidance
Non-GAAP Reconciliation – FY24 Free Cash Flow Guidance (1) Free cash flow is calculated by taking cash flows provided by operating activities less expenditures for property, plant, and equipment and less cash flows from our Master Accounts Receivable Purchasing Agreement (MARPA Facility) for the sal
Slide 22: Bring on tomorrow
BRING ON TOMORROVY, TAKING THE WORLD WHERE IT’S NEVER BEEN BEFORE. From tt ce to space defense
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