Caci International, Inc. · NYSE:CACI
Caci International — FY2019 Earnings Presentation
18 slides from Caci International's earnings presentation, Aug 15, 2019
Slide 1: FY 2019 Fourth Quarter Earnings Conference Call
CACI INTERNATIONAL INC FY 2019 FOURTH QUARTER EARNINGS CONFERENCE CALL August 15, 2019 INFORMATION DEPLOYED. SOLUTIONS ADVANCED. MISSIONS ACCOMPLISHED.
Slide 2: Forward-looking Statements
Forward-looking Statements There are statements made herein which 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 factors that could c
Slide 3: On Today's Call
On Today’s Call John Mengucci Thomas Mutryn Greg Bradford President and Chief Chief Financial Officer President and Chief Executive Officer Executive, CACI Limited UK 3
Slide 4: Executing our Strategy to Grow and Differentiate
CACI Executing our Strategy to Grow and Differentiate FY19 RESULTS Record revenue for the quarter and the year +17.4% in Q4 and +11.6% for the year, both with 2.8% organic growth Strong profitability for the year Robust cash flow from operations of $363 million1 for the year Record contract awards o
Slide 5: FY19 Strong Award Activity
CACI FY19 Strong Award Activity Operational Performance A seven-year, $880 million task order to provide IT and engineering services to the U.S. Army • Validates CACI’s Agile Solution Factory credentials for software development • First win by an incumbent in the past five recompetes An $810 million
Slide 6: FY19 Investing for Long-Term Growth
CACI FY19 Investing for Long-Term Growth Investments Investing in Capabilities • Signals intelligence, electronic warfare, cyber, communications • Artificial intelligence and machine learning to enable intelligence collection • Optical laser communications Investing in our People • Benefits, trainin
Slide 7: M&A Remains Top Priority for Capital Deployment
CACI M&A Remains Top Priority for Capital Deployment M&A Strategy Closed four strategic acquisitions in FY19 to enhance CACI’s enterprise and mission capabilities, and align with key spending priorities Systems Engineering and Acquisition Support Services • Highly specialized engineering services fo
Slide 8: Positive Budget Trends and Visibility
MARKET Positive Budget Trends and Visibility Environment Positive budget environment • Two-year budget signed • Spending priorities align well to CACI capabilities • Consecutive two-year agreements provide visibility for customers • Eliminates sequester mechanism, suspends debt ceiling for two years
Slide 9: Fourth Quarter Revenue and Net Income
CACI Fourth Quarter Revenue and Net Income Q4 ‘19 RESULTS Revenue $1,500 $1,400 $1,373.9 Driven by acquisitions, new business wins, and on-contract growth $1,300 $1,170.1 Revenue $1,200 Organic revenue growth of 2.8% (millions) $1,100 $1,000 $900 $800 Q4 `18 Q4 `19 Net Income $60 In-line with implie
Slide 10: Full Year Revenue and Net Income
CACI Full Year Revenue and Net Income FY19 Revenue RESULTS $5,400 $4,986.3 $5,000 Driven by acquisitions, new business wins, $4,467.9 $4,600 and on-contract growth Revenue $4,200 (millions) $3,800 $3,400 Organic revenue growth of 2.8% $3,000 FY18 FY19 Net Income $301.2 Driven by lower tax expense in
Slide 11: Generating Strong Cash Flow
CACI Generating Strong Cash Flow FY19 RESULTS Operating Cash Flow1 and CapEx (millions, TTM) $400 Generated $363 million of $350 operating cash flow in FY19, excluding impact of A/R $300 purchase facility1 $250 $200 Days sales outstanding of 64 days in Q4, excluding impact of A/R $150 purchase facil
Slide 12: Reiterating FY20 Guidance
CACI Reiterating FY20 Guidance Guidance FY20 Guidance At the midpoint: Revenue $5,500 – $5,700 (millions) Organic revenue growth of 5% Net Income Adjusted EBITDA margin ~10.3% (GAAP millions) $295 – $315 20 bps of organic margin expansion Tax rate approximately 23% Diluted EPS $11.52 – $12.30 Dilute
Slide 13: FY20 Positive Forward Indicators
CACI FY20 Positive Forward Indicators Revenue Profile 85% STRONG Record FY19 contract awards of $10.3 billion EXISTING BUSINESS Performance TTM Book-to-Bill increased to 2.1x Record backlog of $16.9 billion, +50% YoY 11% HIGH Pipeline of submitted bids totals $9.3 billion RECOMPETES Win Rate ~65% fo
Slide 14: Delivering Results, Meeting Commitments
CACI Delivering Results, Meeting Commitments Key Takeaways Successfully executing our strategy Delivered record results in FY19 Reiterating FY20 guidance for accelerating organic growth and further margin expansion Robust cash generation to pursue M&A or pay down debt Confident in our ability to del
Slide 15: Non-GAAP Measures
DEFINITIONS Non-GAAP Measures The Company defines net cash provided by operating activities excluding CACI’s Master Accounts Receivable Purchase Agreement (MARPA facility) as net cash provided by operating activities calculated in accordance with GAAP, adjusted to exclude net cash received from CACI
Slide 16: Reconciliation of Net Cash Provided by Operating Activities
DEFINITIONS Reconciliation of Net Cash Provided by Operating Activities to Net Non-GAAP Cash Provided by Operating Activities Excluding MARPA Facility Measures Twelve Quarter Months Ended Ended (dollars in thousands) 6/30/2019 6/30/2019 Net cash provided by operating activities $ 102,456 $ 555,297 L
Slide 17: Adjusted EBITDA Reconciliation
DEFINITIONS Adjusted Earnings Before Interest, Taxes, Depreciation Non-GAAP and Amortization (Adjusted EBITDA) Measures Adjusted EBITDA is GAAP Net Income plus interest expense, income taxes, depreciation and amortization, and earnout adjustments Quarter Ended Twelve Months Ended (dollars in thousan
Slide 18: Reconciliation of FY18 Non-GAAP Net Income Assuming Full Year of Tax Reform
DEFINITIONS Reconciliation of FY18 Non-GAAP Net Income Assuming a Non-GAAP Full Year of Tax Reform Measures Q1 Q2 Q3 Q4 9/30/2017 12/31/2017 3/31/2018 6/30/2018 Net Diluted Net Diluted Net Diluted Net Diluted EPS (Amounts in thousands, except per share amounts) Income EPS Income EPS Income EPS Incom