Booz Allen Hamilton Holding Corporation · NYSE:BAH
Booz Allen Hamilton — Q3 2024 Earnings Presentation
16 slides from Booz Allen Hamilton's earnings presentation, Jan 26, 2024
Slide 1: Earnings Call Presentation
EARNINGS CALL PRESENTATION Fiscal Year 2024, Third Quarter January 26, 2024
Slide 2: Call Participants
HORACIO ROZANSKI CALL President and Chief Executive Officer PARTICIPANTS MATT CALDERONE Chief Financial Officer NATHAN RUTLEDGE Director & Head of Investor Relations 2
Slide 3: Disclaimer
DISCLAIMER Forward Looking Safe Harbor Statement Certain statements contained in this presentation and in related comments by our management include “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Examples of forward-looking statements include
Slide 4: Key Financial Results
KEY FINANCIAL RESULTS THIRD QUARTER FISCAL YEAR 2024 RESULTS THIRD QUARTER (1) FISCAL YEAR-TO-DATE (12/31/23) (1) Revenue $2.6 billion +12.9% $7.9 billion +15.6% Revenue, Excluding Billable Expenses $1.8 billion +13.0% $5.5 billion +14.7% Net Income $146 million +374.6% $478 million +40.7% Adjusted
Slide 5: Investment Thesis: Exceptional Shareholder Value Creation
INVESTMENT THESIS EXCEPTIONAL SHAREHOLDER VALUE CREATION FY2023–FY2025 GOALS Competitive ADJUSTED EBITDA Disciplined Edge at the GROWTH TO $1.2–1.3B Capital Mission- Deployment Innovation Organic Strategic Strong Mid 10% Intersection Revenue + Acquisitions & + Adjusted $2.0–3.5B 5–8% Investments EBI
Slide 6: Key Financial Results
Page 4 intentionally repeated KEY FINANCIAL RESULTS THIRD QUARTER FISCAL YEAR 2024 RESULTS THIRD QUARTER (1) FISCAL YEAR-TO-DATE (12/31/23) (1) Revenue $2.6 billion +12.9% $7.9 billion +15.6% Revenue, Excluding Billable Expenses $1.8 billion +13.0% $5.5 billion +14.7% Net Income $146 million +374.6%
Slide 7: Historical Backlog & Book-to-Bill
HISTORICAL BACKLOG & BOOK-TO-BILL BACKLOG ($ IN BILLIONS) (1) $35.0 $34.3 $31.8 $31.2 $22.0 $31.3 $29.0 $29.2 $28.6 $30.0 $26.8 $27.8 $24.0 $18.6 $19.9 $16.0 $17.1 $17.3 $14.6 $15.6 $14.6 $15.4 $14.3 $14.3 $14.4 $10.4 $10.1 $9.5 $9.4 $9.9 $10.0 $10.1 $9.5 $9.0 $9.2 $6.1 $9.0 $3.5 $3.5 $4.9 $4.0 $3.7
Slide 8: Capital Allocation
CAPITAL ALLOCATION DELIVERING STRONG CAPITAL RETURNS THROUGH EFFICIENT CAPITAL DEPLOYMENT STRATEGY – Our multi-year capital deployment plan follows a disciplined and opportunistic approach, subject to market conditions – In Q3 FY 2024, we deployed approximately $164.2 million: – $61.7 million throug
Slide 9: Financial Outlook
FINANCIAL OUTLOOK FULL YEAR FISCAL 2024 GUIDANCE(1) OPERATING PERFORMANCE Updated Fiscal Year 2024 Prior Fiscal Year 2024 Guidance Guidance Revenue Growth 14.0% – 15.0% 11.0% – 14.0% Adjusted EBITDA $1,155 – $1,175 million $1,115 – $1,145 million Adjusted EBITDA Margin on Revenue ~11% High 10% to 11
Slide 10: Appendix
APPENDIX 10
Slide 11: Non-GAAP Financial Information
NON-GAAP FINANCIAL INFORMATION • “Revenue, Excluding Billable Expenses” represents revenue less billable expenses. Booz Allen uses Revenue, Excluding Billable Expenses because it provides management useful information about the Company’s operating performance by excluding the impact of costs that ar
Slide 12: Non-GAAP Financial Information (Unaudited)
NON-GAAP FINANCIAL INFORMATION (Unaudited) Three Months Ended Nine Months Ended December 31, December 31, (In thousands, except share and per share data) 2023 2022 2023 2022 Revenue, Excluding Billable Expenses Revenue $ 2,569,801 $ 2,277,074 $ 7,890,569 $ 6,825,650 Less: Billable expenses 799,896 7
Slide 13: Non-GAAP Financial Information (Unaudited)
NON-GAAP FINANCIAL INFORMATION (Unaudited) Three Months Ended Nine Months Ended December 31, December 31, Adjusted Net Income Net income attributable to common stockholders $ 145,644 $ 30,997 $ 477,750 $ 340,213 Change in provision for claimed indirect costs (a) — — (18,345) — Acquisition and divest
Slide 14: Non-GAAP Financial Information (Unaudited)
NON-GAAP FINANCIAL INFORMATION (Unaudited) (a) Represents the reduction to our provision for claimed indirect costs recorded during the second quarter of fiscal 2024, which resulted in a corresponding increase to revenue, as a result of the Defense Contract Audit Agency's findings related to its aud
Slide 15: Non-GAAP Financial Information (Unaudited)
NON-GAAP FINANCIAL INFORMATION (Unaudited) Three Months Ended Three Months Ended Three Months Ended Three Months Ended (a) Reflects the combination of Interest expense (In thousands, except share and per share data) December 31, 2023 September 30, 2023 June 30, 2023 March 31, 2023 and Other income,
Slide 16: Financial Results – Key Drivers
FINANCIAL RESULTS – KEY DRIVERS Third Quarter Fiscal 2024 – Below is a summary of the key factors driving results for the fiscal 2024 third quarter ended December 31, 2023 as compared to the prior year period: • Revenue increased 12.9% to $2.6 billion and Revenue, Excluding Billable Expenses increas
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