Caci International, Inc. · NYSE:CACI
Caci International — Q2 2024 Earnings Presentation
20 slides from Caci International's earnings presentation, Jan 25, 2024
Slide 1: Q2 FY24 Earnings Conference Call
CACI International Inc Q2 FY24 Earnings Conference Call January 25, 2024 EXPERTISE and TECHNOLOGY for National Security
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 cou
Slide 3: On Today's Call
On Today’s Call John Mengucci Jeff MacLauchlan President and Chief Financial Officer Chief Executive Officer 3 | EXPERTISE and TECHNOLOGY for National Security
Slide 4: Value Creation Model
Value Creation Model Free Cash Flow1 Per Share Growth and Shareholder Value Creation Predictable Profitability Efficient Flexible and organic revenue supportive management of opportunistic growth of continued working capital and capital investment capital expenditures deployment 11% Q2 organic $171
Slide 5: Executing Our Strategy
Executing Our Strategy Differentiated Capabilities, Invest Ahead of Need, Strong Past Performance, “Bid Less, Win More” USAF Enterprise IT Spectral Award Large NSA Intel and as-a-Service (EITaaS) from US Navy Cyber Contract WAVE 1 Recent large wins and other new work ramping ahead of plan 5 | EXPERT
Slide 6: IT Modernization
IT Modernization Enduring Demand to Enhance Efficiency & Security Network Software Development Cloud Migration Modernization @Scale Two new DoD network AWS Strategic Executing the two largest modernization awards, leveraging Collaboration Agreement Agile programs in the IDT’s Archon CSfC technology
Slide 7: Electromagnetic Spectrum
Electromagnetic Spectrum Software-Defined Capabilities Addressing Real-World Challenges Credit: US Army SIGINT / EW Technology Spectral Trojan for dismounted soldiers Navy’s next-gen SIGINT/EW Detect, identify, geolocate, and Information advantage for weapon system that adapts as defeat signals of i
Slide 8: Photonics
Photonics Innovation Redefining Communication Credit: NASA Credit: NASA Deep Space ILLUMA CrossBeam® Terminal Farthest-ever demonstration of Successful communication Lower cost, higher volume, optical communications from ISS to Earth via relay low-SWaP Optical satellite in GEO orbit Communications T
Slide 9: Macro Environment
Macro Environment Monitoring GFY ‘24 budget process Investment for national security and modernization remains a key priority Healthy demand, funding, and customer activity CACI well-aligned to key customer priorities 9 | EXPERTISE and TECHNOLOGY for National Security
Slide 10: Summary
Summary 1H performance in-line with prior expectations Raising FY24 guidance Executing our strategy and winning in the marketplace Healthy demand, CACI well-positioned Able to deploy capital to drive free cash flow per share and shareholder value 10 | EXPERTISE and TECHNOLOGY for National Security
Slide 11: Q2 Financial Summary
Q2 Financial Summary Results In-line with Previously-Communicated Expectations Strong Organic Healthy Adjusted EPS1 Free Cash Flow1 Revenue growth underlying +2% YoY of $68 million EBITDA1 margin 11% YoY Met expectations Higher operating Record DSO of organic growth discussed in Q1 income 47 days (9
Slide 12: Flexible and Opportunistic Capital Deployment
Flexible and Opportunistic Capital Deployment Internal Capital Returns Strategic M&A Investments to Shareholders Strong balance sheet (2.3x leverage1) Healthy cash flow business, access to capital $337 million of original $750 million share repurchase program authorization remaining M&A market begin
Slide 13: Raising FY24 Guidance
Raising FY24 Guidance Current Guidance Prior Guidance Initial Guidance Revenue growth of ~9% to ~12% Revenue $7,300 – $7,500 $7,200 – $7,400 $7,000 – $7,200 (millions) EBITDA margin expectations unchanged (underlying margin in “high 10% range”) Adjusted $450 – $465 $440 – $465 $440 – $465 Depreciati
Slide 14: Positive Forward Indicators
Positive Forward Indicators Long-term Visibility into our Business Q2 FY24 contract awards of $2.2 billion ~94% STRONG TTM Book-to-Bill of 1.2x Existing Business Performance YTD weighted avg. duration of ~6 years Backlog of $27 billion, +2% YoY <5% HIGH ~4 years of annualized revenue Recompetes Win
Slide 15: Closing
Closing Executing our strategy Raising guidance for Fiscal Year 2024 Investing, winning, and delivering on commitments Driving long-term growth, increasing free cash flow per share, and generating shareholder value Talented, innovative, committed employees driving customer and CACI success 15 | EXPE
Slide 16: Appendix
Appendix 16 | EXPERTISE and TECHNOLOGY For National Security
Slide 17: 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 18: 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 Six Months Ended 12/31/2023 12/31/2022 % Change 12/31/2023 12/31/2022 % Change Net income, as reported $ 83,870 $ 87,101 -3.7% $ 169,917 $
Slide 19: Reconciliation of Net Income to EBITDA
Reconciliation of Net Income to Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) (Unaudited) Three Months Ended Six Months Ended (in thousands) 12/31/2023 12/31/2022 % Change 12/31/2023 12/31/2022 % Change Net income $ 83,870 $ 87,101 -3.7% $ 169,917 $ 176,226 -3.6% Plus: Inco
Slide 20: 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 Six Months Ended (in thousands) 12/31/2023 12/31/2022 12/31/2023 12/31/2022 Net cash provided by operating activities $ 71,764