Caci International, Inc. · NYSE:CACI
Caci International — Q3 FY2021 Earnings Presentation
19 slides from Caci International's earnings presentation, Apr 22, 2021
Slide 1: Q3 FY21 Earnings Conference Call
CACI International Inc Q3 FY21 Earnings Conference Call April 22, 2021 CACI Proprietary Information
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 co
Slide 3: On Today's Call
On Today’s Call John Mengucci Thomas Mutryn Greg Bradford President and Chief Chief Financial Officer President and Chief Executive Officer Executive, CACI Limited UK 3 CACI Q3 FY21 Earnings Conference Call
Slide 4: Q3 Results – Another Strong Quarter
Q3 Results – Another Strong Quarter Revenue ~6% YoY as reported, +5.3% organic Technology revenue +12% YoY Adjusted EBITDA Margin 11.8%1 Net Income +49% YoY, Diluted EPS +51% YoY Robust cash flow from operations excl. MARPA ($128 million) 1 and free cash flow ($109 million)1 Contract awards of $1.6
Slide 5: Investing Ahead of Need
Investing Ahead of Need Investments are driving tangible, value-creating IP and capabilities Demand drivers − Modernize systems and infrastructure − Mitigate heightened global threat environment Leading in Agile Software Development “at scale” − BEAGLE team deployed mobile applications in a few week
Slide 6: Opportunistic and Flexible Capital Deployment
Opportunistic and Flexible Capital Deployment Internal Capital Returns to Strategic M&A Investments Shareholders Proven driver of long-term R&D investment ahead of Share repurchases and other growth, margin expansion, need to develop technologies capital return options and shareholder value that enh
Slide 7: Demand Environment and Addressable Market
Demand Environment and Addressable Market Remain optimistic on market environment Bipartisan support for defense and national security priorities Global threat environment remains elevated Top-line GFY ’22 budget request calls for +2% in defense spending CACI well-aligned to critical, well-funded bu
Slide 8: FY21 Update
FY21 Update Navigating COVID-19, delivering growth, and expanding margins Continue to see higher than expected COVID-related impacts, including OCONUS deployment delays and slower task orders Lowering revenue guidance but still expect ~5% organic growth at the midpoint Increasing net income and EPS
Slide 9: Q3 FY21 Revenue and Net Income
Q3 FY21 Revenue and Net Income Revenue (Ms) Revenue driven by new business wins, $1,700 on-contract growth, and acquired revenue $1,600 +6% $1,552 $1,500 $1,466 Organic growth of 5.3% $1,400 $1,300 Technology revenue +12.1%, $1,200 Expertise revenue flat $1,100 $1,000 Q3 FY20 Q3 FY21 Net Income (Ms)
Slide 10: Enhanced Financial Disclosure
Enhanced Financial Disclosure Now disclosing Free Cash Flow1 and Adjusted Three Months Ended (Amounts in thousands) 3/31/2021 3/31/2020 Net Income1 and Adjusted Diluted EPS1 Net cash provided by operating activities $ 118,229 $ 120,800 Cash used (provided) by MARPA 9,898 3,938 Net cash provided by o
Slide 11: Strong Cash Flow
Strong Cash Flow Cash Flow1 and CapEx ▪ Q3 FY21 net cash provided by operating (millions, TTM) activities excluding MARPA of $128 million1, up 3% YoY $700 $650 $600 Days Sales Outstanding of 53 days1 $550 $500 ▪ $450 $400 $350 ▪ Leverage of 2.5x2 $300 $250 $200 ▪ Executed $500 million accelerated sh
Slide 12: FY21 Tax Benefit
FY21 Tax Benefit Recognizing FY21 tax benefit enabled by certain tax Revenue and Adjusted EBITDA provisions in the CARES Act and recently finalized tax ($16M) and Net Income ($12M) regulations recaptured in FY22 and FY23 Financial Metric Q4/FY21 Impact FY21 effective tax rate of 8%-9% Revenue -$16 m
Slide 13: Updating FY21 Guidance
Updating FY21 Guidance Current Guidance Prior Guidance Reflects higher-than-expected impacts from COVID-19, strong Revenue $6,000 – $6,075 $6,050 – $6,250 operating performance, and (millions) benefit of tax items Organic revenue growth of GAAP Net Income $450 – $460 $372 – $392 about 5% at the midp
Slide 14: Forward Indicators for FY21
Forward Indicators for FY21 Q3 FY21 contract awards of $1.6 billion 99% STRONG ~60% for new business to CACI Existing Business Performance TTM Book-to-Bill of 1.5x Backlog of $22.3 billion, +12% YoY <1% HIGH Pipeline of submitted bids totals Recompetes Win Rate $6.8 billion ~70% for new business to
Slide 15: Delivering Results and Meeting Commitments
Delivering Results and Meeting Commitments Continue to execute our strategy despite lingering COVID-19 impacts CACI aligned with critical national security and modernization priorities Pleased with revenue growth, margin expansion, and strong cash flow Proud of our people and their commitment to cus
Slide 16: Definitions of Non-GAAP Measures
Definitions of Non-GAAP Measures The Company defines Net cash provided by operating activities excluding MARPA as net cash provided by operating activities calculated in accordance with GAAP, adjusted to exclude cash flows from CACI’s Master Accounts Receivable Purchase Agreement (MARPA) for the sal
Slide 17: Reconciliation of Net Cash Provided by Operating Activities 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 Nine Months Ended (Amounts in thousands) 3/31/2021 3/31/2020 3/31/2021 3/31/2020 Net cash provided by operating activities $ 1
Slide 18: Adjusted EBITDA
Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA) Three Months Ended Nine Months Ended (dollars in thousands) 3/31/2021 3/31/2020 % Change 3/31/2021 3/31/2020 % Change Net income $ 120,344 $ 80,577 49.4% $ 320,466 $ 227,749 40.7% Plus: Income taxes 22,140 19,0
Slide 19: Reconciliation of Net Income to Adjusted Net Income
Reconciliation of Net Income to Adjusted Net Income (Unaudited) (amounts in thousands, except per share amounts) Three Months Ended Nine Months Ended 3/31/2021 3/31/2020 % Change 3/31/2021 3/31/2020 % Change Net income, as reported $ 120,344 $ 80,577 49.4% $ 320,466 $ 227,749 40.7% Intangible amorti