Caci International, Inc. · NYSE:CACI
Caci International — Q3 FY2022 Earnings Presentation
18 slides from Caci International's earnings presentation, Apr 28, 2022
Slide 1: CACI International Inc Q3 FY22 Earnings Conference Call
CACI International Inc Q3 FY22 Earnings Conference Call April 28, 2022 CACI Proprietary Information CACI Proprietary Information
Slide 2: Forward-looking Statements
Forward-looking Statements There are statements made herein that 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 risk factors that co
Slide 3: On Today's Call
On Today’s Call John Mengucci Thomas Mutryn President and Chief Chief Financial Officer Executive Officer 3 | CACI Proprietary Information CACI Q3 FY22 Earnings Conference Call
Slide 4: Q3 FY22 Financial Highlights
Q3 FY22 Financial Highlights Revenue +2% as reported, down ~2% organic Technology revenue +10% Adjusted EBITDA Margin 10.2%1 Robust free cash flow of $297 million1 Solid contract awards of $1.2 billion, including $568 million of classified work Trailing twelve months (TTM) book-to-bill 1.5x Results
Slide 5: Short-Term Headwinds Continue…
Short-Term Headwinds Continue… Headwinds discussed in Q2 continue Slowing pace of task orders, given acquisition resource challenges Supply chain challenges Delayed funding Restricted customer and facility access due to COVID Pace of funding in Q3 much slower than expected Q3 funding orders down ove
Slide 6: …But Longer-Term Market Trends Very Positive
…But Longer-Term Market Trends Very Positive Headwinds are short-term and not impacting customer demand or long-term growth opportunities Large and growing addressable market, very constructive budget environment GFY22 and GFY23 budgets indicate increased spending in areas of CACI focus Defense Inte
Slide 7: Investing Ahead of Need
Investing Ahead of Need IT Modernization Network modernization includes Commercial Solutions for Classified, or CSfC SteelBox® – subscription-based, software as a service (SaaS) application for secure communications (voice and messaging), currently deployed in the IC ID Technologies acquisition expa
Slide 8: Business Performing Well
Business Performing Well Delivering operational excellence, healthy profitability, and strong cash flow Successfully investing ahead of need and differentiating in the marketplace Attracting and retaining talent – continued recognition as a “Top Workplace” Preliminary FY23 outlook is positive Expect
Slide 9: Q3 Financial Summary
Q3 Financial Summary Revenue (Ms) Diluted EPS (GAAP) $1,584 +2% $1,600 $6.00 $1,550 $1,552 $5.00 $4.78 -15% $4.04 $4.00 $1,500 $3.00 $2.00 $1,450 $1.00 $1,400 $0.00 Q3 FY21 Q3 FY22 Q3 FY21 Q3 FY22 1 Adjusted Diluted EPS $7.00 Organic revenue down ~2% $6.00 $5.00 $5.28 -12% $4.64 Technology revenue +
Slide 10: Strong Cash Flow
Strong Cash Flow 1 Cash Flow1 and CapEx Free Cash Flow (FCF) per Share (millions, TTM) $750 $35.00 $700 $650 $30.00 $600 $550 $25.00 $500 $450 $20.00 $400 $350 $300 $15.00 $250 $200 $10.00 $150 $100 $5.00 $50 $0 $0.00 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22E FY15 to FY20 FY16 to FY21 FY17 to FY
Slide 11: Updating FY22 Guidance
Updating FY22 Guidance FY22 Guidance Organic revenue growth of ~1% at the midpoint, incl. Revenue Afghanistan headwind (2%) (millions) $6,200 – $6,250 Adj. EBITDA Margin1 of ~10.5% Adjusted Net Income1 (incl. 10 bps impact from acquisitions) (millions) $415 – $425 Effective tax rate of ~22% Adjusted
Slide 12: Positive Forward Indicators
Positive Forward Indicators Solid Q3 FY22 contract awards of 98% STRONG $1.2 billion TTM Book-to-Bill of 1.5x Existing Business Performance Backlog of $23.5 billion, +5% YoY 1% HIGH Pipeline of submitted bids: $10 billion ~90% for new business to CACI Recompetes Win Rate Bids expected to be submitte
Slide 13: Continuing to Execute
Continuing to Execute Short-term headwinds do not change long-term growth opportunities Bipartisan support continues for national security and modernization, CACI is well-aligned to key priorities Business performing well on things we can control Investing ahead of customer need driving healthy awar
Slide 14: Definitions of Non-GAAP Measures
Definitions of Non-GAAP Measures Adjusted net income and Adjusted diluted EPS are non-GAAP performance measures. We define Adjusted net income and Adjusted diluted EPS as GAAP net income and GAAP diluted EPS, respectively, excluding intangible amortization expense and the related tax impact as we do
Slide 15: Reconciliation of Net Income to Adjusted Net Income and Diluted EPS
Reconciliation of Net Income to Adjusted Net Income and Diluted EPS to Adjusted Diluted EPS (Unaudited) (in thousands, except per share data) Three Months Ended Nine Months Ended 3/31/2022 3/31/2021 % Change 3/31/2022 3/31/2021 % Change Net income, as reported $ 95,417 $ 120,344 -20.7% $ 273,825 $ 3
Slide 16: Adjusted EBITDA Reconciliation
Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA) (Unaudited) Three Months Ended Nine Months Ended (in thousands) 3/31/2022 3/31/2021 % Change 3/31/2022 3/31/2021 % Change Net income $ 95,417 $ 120,344 -20.7% $ 273,825 $ 320,466 -14.6% Plus: Income taxes 20,85
Slide 17: Reconciliation of Operating Cash Flow to Free Cash Flow
Reconciliation of Net Cash Provided by Operating Activities to Net Cash Provided by Operating Activities Excluding MARPA and to Free Cash Flow (Unaudited) Three Months Ended Nine Months Ended (in thousands) 3/31/2022 3/31/2021 3/31/2022 3/31/2021 Net cash provided by operating activities $ 284,248 $
Slide 18: Reconciliation of Operating Cash Flow to Free Cash Flow per Share
Reconciliation of Net Cash Provided by Operating Activities to Net Cash Provided by Operating Activities Excluding MARPA, to Free Cash Flow, and to Free Cash Flow per share (Unaudited) Twelve Months Ended (in thousands, except per share data) 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/20