Booz Allen Hamilton Holding Corporation · NYSE:BAH
Booz Allen Hamilton — Q3 FY2019 Earnings Presentation
25 slides from Booz Allen Hamilton's earnings presentation, Feb 6, 2019
Slide 1: Fiscal Year 2019 Third Quarter Investor Presentation
Exhibit 99.1 FISCAL YEAR 2019 THIRD QUARTER Investor Presentation FEBRUARY 2019Exhibit 99.1 FISCAL YEAR 2019 THIRD QUARTER Investor Presentation FEBRUARY 2019
Slide 2: Disclaimer: Forward Looking Safe Harbor Statement
DISCLAIMER 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 include
Slide 3: Why Invest in Booz Allen Hamilton?
Why Invest in Booz Allen Hamilton? Investment Thesis ~$3 ~$2 FY18 FY21 ADEPS ADEPS UNIQUE STRONG = + OPTION FINANCIAL RETURNS MARKET VALUE POSITION ADEPS Growth (+~2% Dividend Yield) 50% 6–9% 10–30 bps ~$1.4B Capital Annual Margin Deployment, Revenue Expansion Incl Growth Dividends 2Why Invest in Bo
Slide 4: Booz Allen's Leadership Team
Booz Allen’s Leadership Team Lloyd W. Howell, Jr. Nancy J. Laben Joseph W. Mahaffee Angela M. Messer Elizabeth M. Thompson Horacio D. Rozanski CFO and Treasurer Chief Legal Officer Chief Administrative Chief Transformation Chief People Officer President and CEO Officer Officer Kristine Martin Karen
Slide 5: Booz Allen continues its 100+ year history as an industry leader
Booz Allen continues its 100+ year history as an industry leader We bring bold thinking and a desire to be the best in our work in consulting, analytics, digital solutions, engineering, and cyber, focused on agencies ranging from defense to health, energy, and international development KEY HIGHLIGHT
Slide 6: Comprehensive Suite of Service Offerings
Comprehensive Suite of Service Offerings CAPABILITIES STRATEGICALLY ALIGNED WITH CUSTOMER PRIORITIES TODAY… Consulting Analytics Digital Solutions Focuses on delivering Combines the power of modern Focuses on the talent and transformational solutions in the systems development techniques expertise n
Slide 7: Broad customer base spanning U.S. Government, international and commercial clients
Broad customer base spanning the U.S. Government, international and commercial clients DEFENSE (46%) GLOBAL / COMMERCIAL (4%) • Air Force• Joint • Commercial: • International: Combatant • Army Financial Services, Middle East, North Commands Health and Life Africa Region, and Sciences, Energy, Select
Slide 8: Large and growing addressable market provides ample opportunity
Large and growing addressable market provides ample opportunity for continued growth TOTAL CONTRACTOR-ADDRESSABLE SERVICES SPENDING U.S. GOVERNMENT (1) (GFY17-GFY23) ($B) 2018 DISCRETIONARY BUDGET $500 $450 $461 $447 $400 $424 $417 $402 $394 $350 Total $394B $356 + INTEL Contracted $300 $250 $200 $1
Slide 9: Sixth year of Vision 2020 growth strategy: the payoff period
Currently in its sixth year of implementation, we’re in the “payoff period” of our Vision 2020 growth strategy KEY ELEMENTS OF VISION 2020 IMPACT ON PERFORMANCE – “PAYOFF” • Moving closer to the center of our clients’ • Insulated operating performance through core mission budget / economic cycles •
Slide 10: Strong financial performance will continue as a result of Vision 2020
As a result of Vision 2020, Booz Allen anticipates our strong financial performance will continue NET INCOME (IN MILLIONS) GROWTH... $305 $294 $252 $233 $232 $219 (1) FY13 FY14 FY15 FY16 FY17 FY18 ... DRIVES STRONG DILUTED EARNINGS PER SHARE $2.05 $1.94 $1.67 $1.54 $1.52 $1.45 (1) FY13 FY14 FY15 FY1
Slide 11: Earnings growth derives from above-market organic revenue growth
Our strong earnings growth is a derivative of robust, above -market organic revenue growth ACCELERATING ADJUSTED EBITDA (IN MILLIONS), ADEPS GROWTH $2.50 $585 $600 $2.30 $547 $560 $534 $529 $2.01 $524 $2.10 $506 $520 $1.90 $1.75 $1.65 $480 $1.63 $1.65 $1.70 $1.60 $1.50 $440 FY13 FY14 FY15 FY16 FY17
Slide 12: Strong Backlog and Book-to-Bill support growth thesis
Strong Backlog and Book-to-Bill continue to support robust performance and growth thesis (1) Backlog $20.5 (2) (2) (2) (2) (2) (3) (3) (3) (2) (4) (4) (4) Book-to-Bill Trends (2) (2) (2) (2) (2) (3) (3) (3) (2) (4) (4) (4) 1) For more information on the components of backlog, and the differences bet
Slide 13: Track record of deploying capital to deliver shareholder value
Post-recession, Booz Allen has established a track record of deploying capital to deliver shareholder value CAPITAL DEPLOYED AND TSR PERFORMANCE SINCE IPO (1) TSR SINCE IPO : 544% $1,400 700.0% 600.0% $1,200 500.0% $1,000 400.0% $800 300.0% $600 200.0% $400 100.0% $200 0.0% $0 (100.0% FY2011 FY2012
Slide 14: Quarterly dividend a focus of our investment thesis
Booz Allen has and will continue to make our quarterly dividend a focus of our investment thesis 1,2 Booz Allen Quarterly Dividend Historical Quarterly Dividend Growth Rate • Industry leader in quarterly dividend growth, increasing our quarterly dividend $0.02 annually each of the last four 21% year
Slide 15: Quarterly Performance: Q3 FY19
QUARTERLY PERFORMANCE: Q3 FY19QUARTERLY PERFORMANCE: Q3 FY19
Slide 16: Key Financial Results
Key Financial Results THIRD QUARTER FISCAL YEAR 2019 RESULTS (1) (1) THIRD QUARTER YEAR TO DATE (12/31/18) $1.7 billion 13.1% Increase 8.5% Increase Revenue $4.9 billion $1.2 billion 12.2% Increase $3.5 billion 9.5% Increase Revenue, Excluding Billable Expenses Adjusted EBITDA $180 million 23.8% Inc
Slide 17: Q3 FY19 Performance: Aligned with Investment Thesis
Q3 FY19 Performance: Aligned with Investment Thesis Investment Thesis Unique Market Position Strong Financial Returns Option Value 50% ADEPS Growth + • Investments in innovation, talent, and Continued investment in new ~2% Dividend Yield capabilities position us to help clients adopt business lines
Slide 18: Capital Allocation
Capital Allocation DELIVERING STRONG CAPITAL RETURNS THROUGH EFFICIENT CAPITAL DEPLOYMENT STRATEGY • Increasing our quarterly dividend by $0.04 per share (vs. prior increases of $0.02 per share) • Investor day yield target a priority, as is continuing our track record of quarterly dividend growth •
Slide 19: Appendix
APPENDIXAPPENDIX
Slide 20: 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 indic
Slide 21: Non-GAAP Financial Information
Non-GAAP Financial Information Three Months Ended Nine Months Ended (a) Reflects debt refinancing costs incurred in December 31, December 31, connection with the refinancing transaction (In thousands, except share and per share data) 2018 2017 2018 2017 consummated on July 23, 2018. (Unaudited) (Una
Slide 22: Non-GAAP Financial Information
Non-GAAP Financial Information (a) $ in thousands, except for shares and per share data FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 Revenue, Excluding Billable Expenses Revenue $ 5,758,059 $ 5,478,693 $ 5,274,770 $ 5,405,738 $ 5,804,284 $ 6,171,853 Billable Expenses 1,532,590 1,487,115 1,406,527 1,513
Slide 23: Financial Results – Key Drivers, Third Quarter Fiscal 2019
Financial Results – Key Drivers Third Quarter Fiscal 2019 – Below is a summary of the key factors driving results for the fiscal 2019 third quarter ended December 31, 2018 as compared to the prior year: • Revenue increased by 13.1% to $1.7 billion driven primarily by continued strength in client dem
Slide 24: Financial Results – Key Drivers, Nine Months Ended
Financial Results – Key Drivers Nine Months Ended December 31, 2018 – Booz Allen's cumulative performance for the first three quarters of fiscal 2019 has resulted in: • Net cash proved by operating activities was $283.2 million as of December 31, 2018 as compared to $246.9 million in the prior year
Slide 25: Shareholder and Stock Information
Shareholder and Stock Information • Website: investors.boozallen.com • Contact Information – Investor Relations Nicholas Veasey Director of Investor Relations 703/377-5332 Veasey_Nicholas@bah.com – Media James Fisher Principal, Media Relations 703/377-7595 Fisher_James_W@bah.com – Corporate Governan
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