Leidos Holdings, Inc. · NYSE:LDOS
Leidos — Q1 FY2021 Earnings Presentation
18 slides from Leidos's earnings presentation, May 4, 2021
Slide 1: Leidos 1Q 2021 Earnings Conference Call
Leidos 1Q 2021 Earnings Conference Call May 4, 2021
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: 1Q FY 2021 Highlights
1Q FY 2021 Highlights Generated revenue of $3.3B Continued Delivered year-over-year revenue growth of 14.7%; 8.9% organic growth (1) Revenue Growth Grew backlog to a record of $32.6B; 1.2x book-to-bill & 1.3x TTM book-to-bill Strong Bottom Line Achieved adjusted EBITDA margins of 11.7% Growt
Slide 4: Leidos 1Q FY 21 Results
Leidos 1Q FY 21 Results Revenue Non-GAAP Adjusted EBITDA Cash Flows from ($M) Diluted EPS Margin Operations(1) ($) (%) ($M) $3,315 +14.7% $2,889 (+8.9% $372 organic) $1.73 11.7% +45.4% +240bps 9.3% $1.19 $239 -$133M 1Q FY20 1Q FY21 1Q FY20 1Q FY21 1Q FY20 1Q FY21 1Q FY20 1Q FY21 Note 1: Dotted line
Slide 5: Defense Solutions Segment
Defense Solutions Segment Revenue Non-GAAP Operating Income Non-GAAP Operating Margin ($M) ($M) (%) $1,958 $180 9.2% +14.8% +240bps $1,705 (+9.2% +55.2% organic) 6.8% $116 1Q FY20 1Q FY21 1Q FY20 1Q FY21 1Q FY20 1Q FY21 Note 1: Dotted line represents organic revenue for the quarter; see appendix for
Slide 6: Civil Segment
Civil Segment Revenue Non-GAAP Operating Income Non-GAAP Operating Margin ($M) ($M) (%) $766 +17.1% $92 12.0% $654 (+6.1% 10.9% +110bps organic) +29.6% $71 1Q FY20 1Q FY21 1Q FY20 1Q FY21 1Q FY20 1Q FY21 Note 1: Dotted line represents organic revenue for the quarter; see appendix for calculation of
Slide 7: Health Segment
Health Segment Revenue Non-GAAP Operating Income Non-GAAP Operating Margin ($M) ($M) (%) 18.6% $591 $530 $110 +310bps +11.5% 15.5% $82 +34.1% 1Q FY20 1Q FY21 1Q FY20 1Q FY21 1Q FY20 1Q FY21 Note 1: All revenue growth is organic for the quarter; see appendix for calculation of organic revenue growth
Slide 8: Backlog & Book-to-Bill
Backlog & Book-to-Bill 31.7 31.9 32.6 30.7 28.3 Backlog1 ($B) 23.6 24.9 25.3 25.6 22.1 6.2 7.1 6.8 6.6 7.0 1Q FY20 2Q FY20 3Q FY20 4Q FY20 1Q FY21 Funded Backlog Negotiated Unfunded Backlog 1.9 Book-to-Bill22 1.6 1.4 Book-to-Bill 1.5 1.3 1.6 1.4 1.3 1.0 1.2 1Q FY20 2Q FY20 3Q FY20 4Q FY20 1Q FY21 Qu
Slide 9: 2021 Guidance
2021 Guidance Current Prior Revenue $13.7B - $14.1B $13.7B - $14.1B Adjusted EBITDA Margin(1) 10.5% - 10.7% 10.3% - 10.5% Non-GAAP Diluted EPS(1)(2) $6.35 - $6.65 $6.15 - $6.45 Operating Cash Flow(3)(4) Meet or exceed $875M Meet or exceed $850M Note: 2021 guidance does not include the announced acqu
Slide 10: Guidance Assumptions
Guidance Assumptions Severity and duration of COVID-19 outbreak do not worsen beyond our current estimates Business Specific Return to additional closed customer work locations at the end of the 2nd quarter Factors Supplier lead times and delivery costs do not degrade from current state Over
Slide 11: Appendix
Appendix »~ leidos
Slide 12: 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 13: 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 14: Organic Revenue Calculation
Organic Revenue Calculation 1QFY20 2QFY20 3QFY20 4QFY20 FY20 1QFY21 (in millions) Defense Solutions Revenues, as reported $ 1,705 $ 1,757 $ 1,951 $ 1,928 $ 7,341 $ 1,958 Dynetics revenues (Acquired on 1/31/2020)(1) - 206 302 300 808 83 1901 Group (Acquired on 1/14/2021) - - - - - 13 Pro-forma revenu
Slide 15: Non-GAAP Operating Income Reconciliation
Non-GAAP Operating Income Reconciliation 1QFY20 2QFY20 3QFY20 4QFY20 FY20 1QFY21 (dollars in millions) Operating income $ 192 $ 249 $ 258 $ 299 $ 998 $ 308 Acquisition, integration and restructuring costs 12 16 5 6 39 5 Amortization of acquired intangibles 42 51 59 43 195 54 Asset impairment charges
Slide 16: Reportable Segments Non-GAAP Operating Income Reconciliation
Reportable Segments Non-GAAP Operating Income Reconciliation Quarter Ended April 2, 2021 (in millions) Operating income Acquisition, integration Amortization of Non-GAAP operating (loss) and restructuring costs acquired intangibles income (loss) Defense Solutions $ 152 $ - $ 28 $ 180 Civil 74 - 18 9
Slide 17: Non-GAAP Financial Measures Reconciliation
Non-GAAP Financial Measures Reconciliation 1QFY20 2QFY20 3QFY20 4QFY20 FY20 1QFY21 (in millions, except per share amounts) Non-GAAP operating income $ 246 $ 327 $ 324 $ 349 $ 1,246 $ 367 Depreciation expense 18 20 22 24 84 22 Other income (expense), net 5 (4) - (8) (7) (1) Amortization of internally
Slide 18: Non-GAAP Financial Measures Reconciliation (cont'd)
Non-GAAP Financial Measures Reconciliation (cont’d) Quarter Ended April 2, 2021 (in millions, except per share amounts) Acquisition, integration Amortization of As reported and restructuring costs acquired intangibles Non-GAAP results Operating income $ 308 $ 5 $ 54 $ 367 Non-operating expense, net