Caci International, Inc. · NYSE:CACI
Caci International — Q3 FY2019 Earnings Presentation
19 slides from Caci International's earnings presentation, May 2, 2019
Slide 1: Third Quarter FY2019 Earnings Conference Call
CACI INTERNATIONAL INC FY2019 THIRD QUARTER EARNINGS CONFERENCE CALL May 2, 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: Strong Results and Record Awards
CACI Strong Results and Record Awards Third Quarter RESULTS Record revenue, up 12.5% YoY with 2.7% organic growth Strong profitability with Adjusted EBITDA margin1 of 9.3% Includes $14 million of transaction-related expenses Robust cash flow from operations of $113 million1 Excludes $200 million fro
Slide 5: Positive Market Trends
CURRENT Positive Market Trends Market Environment GFY20 administration budget request reflects continued commitment to Defense and National Security Bipartisan consensus regarding need to restore capabilities and capacity in context of great power competition CACI well-aligned with spending prioriti
Slide 6: Strategic Differentiation With LGS and Mastodon
COMBINED Strategic Differentiation With LGS and Mastodon Capabilities RF Expertise Superior Transceivers System Design and Development Form Factor Manufacturing Expands our total addressable market Current SIGINT | EW Programs Aligns to strategic investments Comprehensive Customer Access Platform In
Slide 7: Exciting Opportunities for CACI
CACI Exciting Opportunities for CACI Outlook Continued strong performance through FY 2019 Executing on our strategy Winning New Business Driving Operational Excellence Deploying Capital to Support Future Growth Confident in our ability to deliver value to customers and shareholders 7
Slide 8: Third Quarter Revenue and Pretax Income
CACI Third Quarter Revenue and Pretax Income Third Quarter RESULTS On-contract growth, new business wins, and acquisitions Revenue (millions) Organic revenue growth of 2.7% Q3 ’19 includes $14 million of transaction-related costs Pre-Tax Income Q3 ’18 includes $22 million of (millions) non-recurring
Slide 9: Third Quarter Net Income
CACI Third Quarter Net Income Third Quarter RESULTS Driven by same factors as pre-tax income and tax savings Net Income (millions) Adjusting for these items, as well as the timing of Tax Reform, better illustrates strong underlying performance See slides 16-19 for definitions and reconciliations of
Slide 10: Generating Strong Cash Flow
CACI Generating Strong Cash Flow Third Quarter RESULTS TTM Operating Cash Flow1 Generated $113 million in operating cash flow, excluding $200 million benefit from A/R purchase facility1 Days sales outstanding of 66 days2 Net debt/TTM Adjusted EBITDA of ~3.4 times 40% of debt structure with fixed int
Slide 11: Raising FY 2019 Net Income Guidance
CACI Raising FY 2019 Net Income Guidance FY19 Guidance Prior Guidance Current Guidance Revenue $4,875 – $5,025 $4,900 – $5,025 (millions) LGS and Mastodon now expected to Net Income $255 – $265 $262 – $270 exceed $125 million of revenue in FY19 (GAAP millions) FY19 operating cash flow now expected t
Slide 12: Record Contract Awards and Backlog
CACI Q3 ‘19 Record Contract Awards and Backlog Operational Performance Contract awards of $2.7 billion, ~85% new business to CACI, including: $810 million contract to develop, modernize, deliver, and sustain mobile and transportable command and control systems $415 million contract to build signals
Slide 13: LGS and Mastodon Update
SUCCESSFULLY LGS and Mastodon Update Executing Our Strategy 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 14: Positive Forward Indicators
CACI FY 2019 Positive Forward Indicators Revenue Profile 99% STRONG EXISTING BUSINESS Performance $2.7 billion in contract awards (record) TTM Book-to-Bill now 1.7x Backlog of $14.9 billion (record) <1% HIGH Pipeline of submitted bids totals $8.8 billion RECOMPETES Win Rate ~60% for new business to
Slide 15: Strong Results, Positive Outlook
CACI Strong Results, Positive Outlook Key Takeaways Another quarter of strong financial performance, with organic growth, margin expansion, and robust cash flow Outstanding business development execution, yielding record contract awards and backlog Raising FY 2019 net income, EPS, and cash flow guid
Slide 16: Non-GAAP Measures
DEFINITIONS Non-GAAP Measures The Company defines net cash provided by operating activities excluding CACI’s Master Accounts Receivable Purchase Agreement (MARPA facility) as net cash provided by operating activities calculated in accordance with GAAP, adjusted to exclude net cash received from CACI
Slide 17: Reconciliation of Net Cash Provided by Operating Activities
DEFINITIONS Reconciliation of Net Cash Provided by Operating Activities to Net Non-GAAP Cash Provided by Operating Activities Excluding MARPA Facility Measures Quarter Nine Months Ended Ended (dollars in thousands) 3/31/2019 3/31/2019 Net cash provided by operating activities $ 313,301 $ 452,841 Les
Slide 18: Adjusted EBITDA Reconciliation
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 Nine Months Ended (dollars in th
Slide 19: Reconciliation of FY18 Non-GAAP Net Income Assuming Full Year of Tax Reform
DEFINITIONS Reconciliation of FY18 Non-GAAP Net Income Assuming a Non-GAAP Full Year of Tax Reform Measures Q1 Q2 Q3 Q4 9/30/2017 12/31/2017 3/31/2018 6/30/2018 Net Diluted Net Diluted Net Dilute d Net Diluted EPS (Amounts in thousands, except per share amounts) Income EPS Income EPS Income EPS Inco