Science Applications International Corporation · NASDAQ:SAIC
Science Applications International — Q3 2024 Earnings Presentation
21 slides from Science Applications International's earnings presentation, Dec 4, 2023
Slide 1: Financial Results FY24 3Q Supplemental Financial Presentation
FINANCIAL RESULTS FY24 3Q SUPPLEMENTAL FINANCIAL PRESENTATION December 4, 2023
Slide 2: Bring On Tomorrow
BRING ON TOMORROW, From space exploration to the secure cloud. From mission support to systems modernization. You face diverse challenges today that call on solutions built for tomorrow. Partnering to deliver flexible tools and technologies that advance your mission, accelerate time-to-value to make
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: 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 5: Focused Business Model & Strategy
FOCUSED BUSINESS MODEL & STRATEGY 18% 30x 16% Peer 3 26x Enterprise Value to Adj. FCF(2) 14% 12% 22x ROIC (1) 10% SAIC Peer 2 in FY26 8% 18x Peer 1 Assuming midpoint of 2023 Investor Day targets 6% 14x SAIC 4% in 2% FY24 10x 0% 8% 10% 12% 14% 16% 18% 20% 22% FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 R
Slide 6: Fiscal Year 2024 Highlights
Fiscal Year 2024 Highlights Fiscal 3Q 10.6% 9.4% $148M $2.5B FY24 3Q PRO-FORMA FY24 3Q ADJUSTED FY24 YTD TRANSACTION- FY24 3Q NET BOOKINGS ORGANIC REVENUE GROWTH EBITDA MARGIN % ADJUSTED FREE CASH FLOW Fiscal YTD 7.3% 9.5% $367M ~1x FY24 YTD PRO-FORMA FY24 YTD ADJUSTED FY24 YTD TRANSACTION- TTM BOOK
Slide 7: FY24 Q3 & YTD Results
FY24 Q3 & YTD RESULTS (1) ADJUSTED TRANSACTION-ADJUSTED REVENUE ADJUSTED EBITDA (2) DILUTED EPS (2) FREE CASH FLOW (2) $2.27 $148 $178 $1,909 $1,895 $122 Fiscal 3Q +10.6% PRO- FORMA $1.90 $170 FY23 FY24 FY23 FY24 FY23 FY24 FY23 FY24 $6.45 $367 $5,736 $5,707 $541 Fiscal YTD +7.3% PRO- FORMA $509 $5.5
Slide 8: Updated Fiscal Year 2024 Guidance
Updated Fiscal Year 2024 Guidance FISCAL FOURTH PRIOR FISCAL CURRENT FISCAL YEAR QUARTER FY24 YEAR 2024 GUIDANCE 2024 GUIDANCE Revenue $1.62B - $1.64B $7.20B - $7.25B $7.325B - $7.350B Pro-Forma Organic Growth Flat to +2%(3) ~4.5% ~6% Adjusted EBITDA Margin (1) Low 9% 9.3% - 9.4% 9.3% - 9.4% Adjuste
Slide 9: Pipeline Remains Strong with Typical Timing Delays
Pipeline Remains Strong with Typical Timing Delays $3,000 Contract Award Value Booked $6,000 Value of Contract Award* Submissions Represents value of contract awards which could Represents value of contract awards move from 4Q FY24 to 1H FY25 submits which have moved into FY25 $2,500 $5,000 Timing o
Slide 10: Solid Organic Revenue Growth Expected to Continue
Solid Organic Revenue Growth Expected to Continue 6.0% 6% 5.0% 4.0% 3.0% 3% 3% 2.5% 2.0% 2% 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 $7,337
Slide 11: Multi-Year Financial Targets
Multi-Year Financial Targets FY24 FY25 FY26 Revenue $7.325B - $7.350B $7.25B - $7.40B $7.45B - $7.65B ($7.14 - $7.17B excl. L&SCM revenue) Adjusted EBITDA Margin* 9.3% - 9.4% 9.4% - 9.6% 9.5% - 9.7% Adjusted Earnings per $7.70 - $7.90 $8.00 - $8.20 $8.90 - $9.10 Share* Weighted Average Diluted ~54M
Slide 12: 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 13: 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 F2Q24 F3Q24 DURATION OF BA
Slide 14: Appendix
Appendix
Slide 15: Working Days Per Quarter
Working Days Per Quarter Q1 Q2 Q3 Q4 Total FY25 64 62 63 60 249 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 15
Slide 16: 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 16
Slide 17: 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 18: 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 19: Non-GAAP Reconciliation – Free Cash Flow
Non-GAAP Reconciliation – Free Cash Flow (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 sale of certain d
Slide 20: 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 21: Bring On Tomorrow
BRING ON TOMORROW, TAKING THE WORLD WHERE IT’S NEVER BEEN BEFORE. From the digital space to space defense, we move you forward SAIC.
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