Booz Allen Hamilton Holding Corporation · NYSE:BAH
Booz Allen Hamilton — Q3 FY2018 Earnings Presentation
13 slides from Booz Allen Hamilton's earnings presentation, Feb 5, 2018
Slide 1: Fiscal Year 2018, Third Quarter Earnings Call Presentation
Fiscal Year 2018, Third Quarter FEBRUARY 5, 2018 EARNINGS CALL PRESENTATION
Slide 2: Call Participants
HORACIO ROZANSKI PRESIDENT AND CHIEF EXECUTIVE OFFICER LLOYD HOWELL CHIEF FINANCIAL OFFICER AND TREASURER CURT RIGGLE VICE PRESIDENT INVESTOR RELATIONS 1 CALL PARTICIPANTS
Slide 3: Disclaimer
DISCLAIMER 2 Forward Looking Safe Harbor Statement Certain statements contained in this presentation and in related comments by our management include “forward‐looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Examples of forward‐looking statements inclu
Slide 4: Highlights
HIGHLIGHTS KEY PERFORMANCE INDICATORS • Maintaining position as the government services industry organic revenue growth leader (1) – Accelerating growth in Revenue, Excluding Billable Expenses compared to the prior year period – Raising full‐year revenue and Adjusted Diluted EPS guidance • Experienc
Slide 5: Key Financial Results: Third Quarter Fiscal Year 2018 Preliminary Results
KEY FINANCIAL RESULTS THIRD QUARTER FISCAL YEAR 2018 PRELIMINARY RESULTS 4 (1) Comparisons are to prior fiscal period TH I R D QUART E R ( 1 ) Y E A R TO DAT E ( 1 ) Revenue $1.5 billion 6.8% Increase $4.5 billion 7.4% Increase Revenue, Excluding Billable Expenses $1.1 billion 8.3% Increase $3.2 bil
Slide 6: Tax Reform Impact
TAX REFORM IMPACT SIGNIFICANT TAX RATE BENEFIT AND CASH TAX SAVINGS • ~8 cents added to ADEPS in the third quarter of fiscal 2018 due predominately to the ~$11 million reduction of income tax expense realized from the enactment of the new tax law • Anticipate significant cash savings in coming years
Slide 7: Capital Allocation
CAPITAL ALLOCATION 6 DELIVERING STRONG CAPITAL RETURNS THROUGH FLEXIBLE CAPITAL DEPLOYMENT STRATEGY • Strategy remains unchanged: ‐ Convert approximately 100 percent of Adjusted Net Income to Free Cash Flow ‐ Aim to deploy at least 100 percent of Free Cash Flow to support acquisitions, share repurch
Slide 8: Financial Outlook
FINANCIAL OUTLOOK RAISING FULL YEAR GUIDANCE 1) These EPS estimates are based on fiscal 2018 estimated average diluted shares outstanding of approximately 148.0 million shares and assume an effective tax rate in the range of 33 percent to 34 percent, which reflects changes in U.S. tax law. The estim
Slide 9: Appendix
APPENDIX 8
Slide 10: Non-GAAP Financial Information
NON-GAAP FINANCIAL INFORMATION • “Revenue, Excluding Billable Expenses" represents revenue less billable expenses. We use Revenue, Excluding Billable Expenses because it provides management useful information about the Company's operating performance by excluding the impact of costs that are not ind
Slide 11: Non-GAAP Financial Information
NON-GAAP FINANCIAL INFORMATION 10 (a) Reflects amortization of intangible assets resulting from the Acquisition for the three and nine months ended December 31, 2016. (b) Reflects debt refinancing costs incurred in connection with the refinancing transaction consummated on July 13, 2016. (c) Reflect
Slide 12: Financial Results – Key Drivers: Third Quarter 2018
FINANCIAL RESULTS – KEY DRIVERS Third Quarter 2018 – Below is a summary of Booz Allen’s results for the fiscal 2018 third quarter and the key factors driving those results as compared to the third quarter of fiscal 2017: • Revenue increased by 6.8% to $1.50 billion primarily due to increased client
Slide 13: Financial Results – Key Drivers: Nine Months Ended December 31, 2017
FINANCIAL RESULTS – KEY DRIVERS Nine Months Ended December 31, 2017 – Booz Allen’s cumulative performance for the first three quarters of fiscal 2018 has resulted in: • Net cash provided by operating activities was $246.9 million as compared to $283.0 million in the prior year period. The decrease i
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