Leidos Holdings, Inc. · NYSE:LDOS
Leidos — Q4 2019 Earnings Presentation
17 slides from Leidos's earnings presentation, Feb 18, 2020
Slide 1: Leidos 4Q 2019 Earnings Conference Call
Leidos 4Q 2019 Earnings Conference Call February 18, 2020
Slide 2: Forward-Looking Statements
Forward-Looking Statements Certain statements in this release contain or are based on "forward-looking" information within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by words such as "expects," "intends," "plans," "
Slide 3: 4Q & FY 2019 Highlights
4Q & FY 2019 Highlights Record revenue of $2.95B for 4Q; $11.1B for FY 2019 Continued Year-over-year 4Q revenue growth of 11.6%; 14.0% organic growth(1) Revenue Growth Adjusted EBITDA margins of 11.0% for 4Q; 10.5% for FY 2019 Acceleration Record backlog of $24.1B; 1.3x TTM book-to-bill Gene
Slide 4: Leidos 4Q FY19 Results
Leidos 4Q FY 19 Results Revenue Non-GAAP Adjusted EBITDA Cash Flows from ($M) Diluted EPS Margin Operations ($) (%) ($M) $2,954 $1.51 $169 11.0% $2,647 +11.6% +37.3% (+14.0% 9.7% +130bps +$65M organic) $1.10 $104 4Q FY18 4Q FY19 4Q FY18 4Q FY19 4Q FY18 4Q FY19 4Q FY18 4Q FY19 Note: See appendix for
Slide 5: Defense Solutions Segment
Defense Solutions Segment Revenue Non-GAAP Operating Income Non-GAAP Operating Margin ($M) ($M) (%) $1,400 $1,265 $139 +10.7% 9.9% +43.3% +220bps $97 7.7% 4Q FY18 4Q FY19 4Q FY18 4Q FY19 4Q FY18 4Q FY19 Note: See appendix for definition & reconciliation of Non-GAAP Financial Measures 5
Slide 6: Civil Segment
Civil Segment Revenue Non-GAAP Operating Income Non-GAAP Operating Margin ($M) ($M) (%) $1,028 +16.2% $885 (+19.0% 11.4% organic) $117 9.8% +160bps +34.5% $87 4Q FY18 4Q FY19 4Q FY18 4Q FY19 4Q FY18 4Q FY19 Note: See appendix for definition & reconciliation of Non-GAAP Financial Measures 6
Slide 7: Health Segment
Health Segment Revenue Non-GAAP Operating Income Non-GAAP Operating Margin ($M) ($M) (%) $526 16.1% 16.0% $497 +5.8% (+13.9% $84 organic) $80 -10bps +5.0% 4Q FY18 4Q FY19 4Q FY18 4Q FY19 4Q FY18 4Q FY19 Note: See appendix for definition & reconciliation of Non-GAAP Financial Measures 7
Slide 8: Backlog & Book-to-Bill
Backlog & Book-to-Bill 23.9 24.1 Backlog1 ($B) 20.8 21.5 21.7 14.4 15.4 15.4 18.3 18.7 6.4 6.1 6.3 5.6 5.4 4Q FY18 1Q FY19 2Q FY19 3Q FY19 4Q FY19 1.8 Book-to-Bill2 1.2 1.3 1.1 1.0 4Q FY18 1Q FY19 2Q FY19 3Q FY19 4Q FY19 Funded Backlog Negotiated Unfunded Backlog (1) Backlog presented at exchange ra
Slide 9: 2020 Guidance
2020 Guidance Revenue $12.6B - $13.0B Adjusted EBITDA Margin(1) 10.0% - 10.2% Non-GAAP Diluted EPS(1,2) $5.30 - $5.65 Operating Cash Flow Meet or exceed $1.0B(3) (1) A quantitative reconciliation of adjusted EBITDA margin and non-GAAP diluted EPS forward-looking guidance to the most directly compara
Slide 10: Appendix
Appendix »~ leidos
Slide 11: Non-GAAP Financial Measures
Non-GAAP Financial Measures This presentation includes certain non-GAAP financial measures, such as non-GAAP operating income, non-GAAP operating margin, non-GAAP effective tax rate, non-GAAP diluted earnings per share (EPS), adjusted earnings before interest, taxes, depreciation and amortization (E
Slide 12: Definition of Non-GAAP Financial Measures
Definition of Non-GAAP Financial Measures Non-GAAP operating income is computed by excluding the following items from net income: (i) non-operating expense, net; (ii) income tax expense, and (iii) the following discrete items and the related tax impacts: Acquisition, integration and restructuring
Slide 13: Organic Revenue Calculation
Organic Revenue Calculation Pro-Forma Financial Information ─ Segment Results 1QFY18 2QFY18 3QFY18 4QFY18 1QFY19 2QFY19 3QFY19 4QFY19 (dollars in millions) Defense Solutions Revenues, as reported $ 1,189 $ 1,262 $ 1,250 $ 1,265 $ 1,267 $ 1,346 $ 1,354 $ 1,400 Civil Revenues, as reported $ 829 $ 816
Slide 14: Non-GAAP Operating Income Reconciliation
Non-GAAP Operating Income Reconciliation 1QFY18 2QFY18 3QFY18 4QFY18 FY18 1QFY19 2QFY19 3QFY19 4QFY19 FY19 (in millions) Operating income $ 159 $ 199 $ 203 $ 188 $ 749 $ 192 $ 210 $ 249 $ 261 $ 912 Acquisition, integration and restructuring costs 17 8 7 5 37 2 1 - 2 5 Amortization of acquired intang
Slide 15: Reportable Segments Non-GAAP Operating Income Reconciliation
Reportable Segments Non-GAAP Operating Income Reconciliation Quarter Ended January 3, 2020 (in millions) Operating income Acquisition, integration Amortization of Amortization of equity Non-GAAP operating (loss) and restructuring costs acquired intangibles method investment income (loss) Defense Sol
Slide 16: Non-GAAP Financial Measures Reconciliation
Non-GAAP Financial Measures Reconciliation 1QFY18 2QFY18 3QFY18 4QFY18 FY18 1QFY19 2QFY19 3QFY19 4QFY19 FY19 (in millions, except per share amounts) Non-GAAP operating income $ 236 $ 260 $ 262 $ 246 $ 1,004 $ 239 $ 256 $ 295 $ 309 $ 1,099 Depreciation expense 13 15 14 14 56 15 14 16 16 61 Other inco
Slide 17: Non-GAAP Financial Measures Reconciliation (cont’d)
Non-GAAP Financial Measures Reconciliation (cont’d) Quarter Ended January 3, 2020 (in millions, except per share amounts) Acquisition, integration Amortization of Amortization of equity Acquisition related As reported and restructuring costs acquired intangibles method investment financing costs Gai