Caci International, Inc. · NYSE:CACI
Caci International — Q2 FY2019 Earnings Presentation
21 slides from Caci International's earnings presentation, Jan 30, 2019
Slide 1: FY2019 Second Quarter Earnings & Announcement of LGS Innovations and Mastodon Design Acquisitions
CACI INTERNATIONAL INC FY2019 SECOND QUARTER EARNINGS & ANNOUNCEMENT OF OUR AGREEMENT TO ACQUIRE LGS INNOVATIONS AND ACQUISITION OF MASTODON DESIGN January 30, 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: Presenters
Ken Asbury John Mengucci DeEtte Gray Thomas Mutryn Greg Bradford President and Chief Operating Officer President, U.S. Operations Chief Financial Officer Chief Executive Officer, Chief Executive Officer CACI Limited in the UK 3
Slide 4: Another Strong Quarter
CACI Another Strong Quarter Second Quarter RESULTS Total revenue growth of 8.6% with 2.4% organic Very strong profitability with EBITDA growth of over 16% More than $1.3 billion of contract awards, almost 20% higher than last year Raising fiscal 2019 guidance 4
Slide 5: Investment to Drive Continued Strategic Differentiation
Investment to Drive Continued Strategic Differentiation M&A Adding Additional HIGH‐VALUE OFFERINGS Adding two highly‐relevant companies, expanding a differentiated set of product and solution offerings in signals intelligence, electronic warfare, and cyber Meets all elements of our M&A strategy GR
Slide 6: Investment to Drive Continued Differentiation
Investment to Drive Continued Differentiation TRANSACTION OVERVIEW Total purchase price of $975 million; LGS $750 million, Mastodon $225 million Summary Tax asset of ~$140 million on a net present value basis Represents adjusted forward EBITDA multiple of ~10 times All‐cash consideration financed th
Slide 7: Combination Benefits All Stakeholders
Combination Benefits All Stakeholders Access to enhanced capabilities and technology Significant value and adaptability in software‐defined offerings Customers Integrated Strategic Operations to Tactical Edge capabilities Integrated supply chain secured Shared values and culture, commitment to custo
Slide 8: Customers Are Buying Differently
Customers Are Buying Differently TRADITIONAL SUPPLIERS VALUE IN OUR AGILITY Long acquisition cycles Quick capability procurement, fielded fast Multi‐year development Comprehensive SIGINT | EW offerings from strategic level to tactical edge Slow to counter new threats Everything software definable Ha
Slide 9: Differentiated Products and Solutions
Differentiated Products and Solutions COMBINED CAPABILITIES RF Expertise Superior Transceivers Transformational SIGINT | EW Products System Design and Development Smaller, Lighter, More Efficient Form Factor Manufacturing Moves more data quicker Attack more signals simultaneously Current SIGINT | EW
Slide 10: Differentiated Products and Solutions
Differentiated Products and Solutions COMBINED CAPABILITIES Integrated capabilities provide a whole new way of performing the mission Advanced signals collection and analysis drives faster, more accurate detection, and response Form Factor Signal Half the Size Manufacturing Processing Twice the Capa
Slide 11: Differentiated Products and Solutions
Differentiated Products and Solutions COMBINED CAPABILITIES COMBINED CAPABILITIES Multi Mission Capable – Communications and C2 Secure Handheld Advanced Data Links Reduced Combat Load RF Expertise on Solider Intuitive Design Ruggedized Power Management Optimized for Contested Environments Integratio
Slide 12: Transaction Terms
Transaction Terms DETAILED FINANCIALS Combined purchase price of $975 million; LGS at $750 million, Mastodon at $225 million Tax asset of ~$140 million on a net present value basis Expected to add $480 million in revenue and $82 million of adjusted EBITDA over the next twelve months Adjusted EBITDA
Slide 13: Second Quarter Revenue and Pre-tax Income
FINANCIAL Second Quarter Revenue and Pre‐tax Income Results On‐contract growth Revenue and new business wins (millions) Organic revenue growth of 2.4% Pre‐tax income up $16 million driven by: New business wins Pre‐Tax Income (millions) On‐contract and acquired growth Continued strong program perform
Slide 14: Second Quarter Net Income
FINANCIAL Second Quarter Net Income Results Driven by pre‐tax income increase * Net Income Strong program performance (millions) Continuing to generate margin expansion and growth in profitability * Net income including the impact of Tax Reform, a non‐GAAP measure 14 See Charts 19‐21 for definitions
Slide 15: Generating Capital
CONTINUED Generating Capital Strong Cash Flow TTM Operating Cash Flow Generated $56 million in operating cash flow Impacted by normal fluctuations and closures of some government payment offices at the end of the quarter Days sales outstanding of 73 days* Net debt/TTM adjusted EBITDA of 2.1 times *
Slide 16: Forward Indicators Positive
CACI FY19 Forward Indicators Positive Revenue Profile 97% STRONG $1.3 billion in contract awards EXISTING BUSINESS Performance Backlog of $12.6 billion, up 16% Pipeline of submitted bids totals $9.8 billion 2% HIGH ~78% for new business to CACI RECOMPETES Win Rate Bids expected to be submitted in th
Slide 17: Raising FY19 Guidance and Incorporating LGS and Mastodon
CACI FY19 GUIDANCE Raising FY19 Guidance and Incorporating LGS and Mastodon Prior Current Guidance Guidance Revenue $4,700 – $4,900 $4,875 – $5,025 (millions) Acquisitions expected to add approximately Net Income $250 – $260 $255 – $265 $125 million of revenue and incur ~$13 million (GAAP millions)
Slide 18: Key Takeaways
Key Takeaways Strong quarter with organic revenue growth and margin expansion Raised guidance for core CACI performance and incorporated acquisitions LGS INNOVATIONS and MASTODON DESIGN continuation of our strategy to invest in high‐end capabilities to drive additional shareholder value High growth
Slide 19: Non-GAAP Measures
DEFINITIONS Non‐GAAP The Company views Adjusted EBITDA and Adjusted EBITDA margin, both of which are defined as non‐GAAP Measures measures, as important indicators of performance, consistent with the manner in which management measures and forecasts the Company’s performance. Adjusted EBITDA is a co
Slide 20: Non-GAAP Measures: Adjusted EBITDA
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, earnout adjustments and other Quarter Ended Six Months Ended (dollars in thou
Slide 21: Reconciliation of FY18 Adjusted Net Income Assuming a Full Year of Tax Reform
DEFINITIONS Reconciliation of FY18 Adjusted Net Income Assuming a Non‐GAAP Full Year of Tax Reform Measures These non-GAAP measures should not be considered in isolation or as a substitute for performance measures prepared in accordance with GAAP. 21