Caci International, Inc. · NYSE:CACI
Caci International — Q3 FY2018 Earnings Presentation
16 slides from Caci International's earnings presentation, May 3, 2018
Slide 1: CACI International Inc Third Quarter Fiscal Year 2018 Conference Call
CACI International Inc Third Quarter Fiscal Year 2018 Conference Call May 3, 2018 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
Slide 3: Our Participants Today
Our Participants Today Ken Asbury President and Chief Executive Officer John Mengucci Chief Operating Officer Tom Mutryn Chief Financial Officer DeEtte Gray President, U.S. Operations Greg Bradford Chief Executive Officer, CACI Limited in the UK INFORMATION DEPLOYED. SOLUTIONS ADVANCED. MISSIONS ACC
Slide 4: Third Quarter Results
Third Quarter Results Record revenue of $1.12 billion, up 3.5% with 2.7% organic revenue growth Record operating income of $104.8 million, up 55.8%, with a 9.3% operating margin Net income of $64.5 versus $40.4 million a year ago Diluted EPS of $2.56 versus $1.61 a year ago Cash from operations of $
Slide 5: Current Market Environment
Current Market Environment The two-year Bipartisan Budget Agreement and the Consolidated Appropriations Act positive for industry and customers Expect healthy growth and contract awards in June and September quarters GFY 2018 DOD increase of $80B focused on restoring readiness GFY 2019 DOD increase
Slide 6: Other Events
Other Events Notable honors: • John Mengucci named to Federal Computer Week 2018 Federal 100 • CACI board member William S. Wallace awarded U.S. Military Academy’s Distinguished Graduate Award CSRA transaction met elements of our M&A strategy: • Provided long-term strategic value • Filled capability
Slide 7: Third Quarter Revenue and Operating Income
Third Quarter Revenue and Operating Income Revenue Operating Income $1,200.0 $120.0 $1,124.1 $110.0 $1,086.4 $104.8 $1,100.0 $100.0 $ millions $90.0 $ millions $1,000.0 $80.0 $67.3 $70.0 $900.0 $60.0 $800.0 $50.0 Q3'17 Q3'18 Q3'17 Q3'18 Driven by on-contract Operating income up 56% growth and new bu
Slide 8: Continued Strong Cash Flow
Continued Strong Cash Flow Generated $99 million in operating cash flow for the quarter, 153% of net income Days sales outstanding – 62 days versus 61 days in Q2’18 Net debt of ~$1.0 billion Net debt/TTM adjusted EBITDA of ~2.5 times TTM Operating Cash Flow as a % of $400 TTM Free Cash Flow TTM Net
Slide 9: Reiterating FY18 Guidance
Reiterating FY18 Guidance Current FY18 Guidance Revenue (millions) $4,400 - $4,500 Net Income (millions) $285 - $291 Diluted EPS $11.26 - $11.50 Diluted shares (millions) 25.3 FY18 operating cash flow expected to be greater than $310 million This guidance represents our views as of May 2, 2018. Inve
Slide 10: Successful Third Quarter
Successful Third Quarter Fifth consecutive quarter of positive organic revenue growth • Driven by new business wins and on-contract growth Exceptional margin growth Efficient performance on fixed price contracts Award and one-time incentive fees Product sales 10 contract awards between $45 and $150
Slide 11: Forward Indicators are Strong
Forward Indicators are Strong FY18 Revenue Profile 99% EXISTING <1% RECOMPETES <1% NEW BUSINESS BUSINESS Well funded High win rate Strong pipeline Pipeline of submitted bids totals $6.3 billion ~82% for new business to CACI Bids expected to be submitted in the next two quarters totals another $14.1
Slide 12: Shared Services Center Drives Reinvestment
Shared Services Center Drives Reinvestment Shared Services Center in Oklahoma City will open July 2018 Optimizes support services to support organic and acquired growth Creates savings to reinvest in people and capabilities People investments in healthcare and retirement benefits and creative ways t
Slide 13: CEO Closing Comments
CEO Closing Comments Third quarter results affirm our long-term strategy Momentum across CACI is delivering exceptional outcomes for our customers Improving budget environment should enhance our future growth and generate shareholder value Incredibly proud of our employees’ contribution to our succe
Slide 14: Definitions of Non-GAAP Measures
Definitions of Non-GAAP Measures The Company views Adjusted EBITDA and Adjusted Net Income, all of which are defined as non-GAAP measures, as important indicators of performance, consistent with the manner in which management measures and forecasts the Company’s performance. Adjusted EBITDA is a com
Slide 15: Definitions of Non-GAAP Measures
Definitions of Non-GAAP Measures Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) Adjusted EBITDA is GAAP net income plus interest expense, income taxes, depreciation and amortization, earnout adjustments and other Quarter Ended Nine Months Ended (dollars in thousands
Slide 16: Definitions of Non-GAAP Measures
Definitions of Non-GAAP Measures Reconciliation of Net Income and Earnings Per Share to Non-GAAP Net Income and Earnings Per Share to Exclude Tax Reform Net income adjusted for Tax Reform is GAAP net income adjusted to exclude the impact of Tax Reform Three Months Nine Months (Amounts in thousands,