Booz Allen Hamilton Holding Corporation · NYSE:BAH
Booz Allen Hamilton — Q2 FY2018 Earnings Presentation
31 slides from Booz Allen Hamilton's earnings presentation, Nov 13, 2017
Slide 1: Investor Presentation November 2017 - Fiscal Year 2018 Second Quarter
Investor Presentation November 2017 Fiscal year 2018 Second quarter Exhibit 99.1
Slide 2: 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 3: Key investment themes
industry leading organic Revenue growth differentiated model Diversified client and contract base Delivering near- and long-term value Key investment themes
Slide 4: A leader with a proud history
A leader with a proud history Company Overview We are a global firm of approximately 24,200 diverse, passionate, and exceptional people driven to excel, do right, and realize positive change in everything we do. We bring bold thinking and a desire to be the best in our work in consulting, analytics,
Slide 5: Company History
Company History 1914 1940 1949 1987 1992 1996 2001 2008 2010 2012 2013 2014 2015 2016 Founded by Edwin Booz in Chicago Received NASA space station contract (first contract over $100M) Supported GSA in overhauling its telecommunications network (largest contract to date at that time at $620M) Spin-of
Slide 6: Service offerings
Service offerings Digital Solutions Engineering Cyber Analytics Directed Energy Digital Solutions Network Cyber Futures Data Science & Machine Intelligence Engineering delivers in-depth technical solutions to our clients’ most challenging problems with core capabilities in command, communications, a
Slide 7: History of revenue growth
History of revenue growth (1) All years represent FYE March 31. FY96 through FY05 revenue is based on revenue derived directly from Booz Allen’s accounting system (JAMIS). FY06 and later revenue is based on revenue derived directly from Booz Allen’s consolidated financial statements, which have been
Slide 8: High-Quality and Diversified Contract Portfolio
High-Quality and Diversified Contract Portfolio Our Diversified revenue base minimizes volatility Delivered on over 4,800 U.S. government contracts and task orders (1) Largest definite contract accounted for 2.8% of revenue 76% of revenue was derived from over 3,900 active task orders under indefini
Slide 9: Diversified client base
Diversified client base Commercial: Financial Services, Utilities, Energy, Retail, Manufacturing, Healthcare International: Middle East, North Africa Region, and Select Asian Markets GLOBAL COMMERCIAL (2.6%) U.S. Intelligence Agencies: National Security Agency, National Geospatial-Intelligence Agenc
Slide 10: Record backlog
record Backlog ($ in billions) (1) FY13 backlog excludes backlog gained in the BES acquisition. Strong backlog provides revenue visibility
Slide 11: Growth strategy
growth strategy Key Elements Moving closer to the center of our clients’ core mission Increasing the technical content of our work Attracting and retaining superior talent in diverse areas of expertise Leveraging innovation to deliver complex, differentiated, end-to-end solutions Creating a broad ne
Slide 12: Key areas of differentiation
Key areas of differentiation We attribute our business and financial success to five key features Our culture Our purpose, as a firm, is to empower people to change the world, and we are committed to our employees Our strategy Successful execution of Vision 2020 reflects our ability to reinvent ours
Slide 13: Long-term shareholder value
Long-term shareholder value We are creating value from accelerating growth through a virtuous cycle Positions Us to Win Additional Work and Attract the Right Talent Results in High-Quality Work for Clients and Strong Financial Performance Doing Work at the Center of Clients’ Missions Allows us to Id
Slide 14: Quarterly performance: Q2 FY18
quarterly performance: q2 fy18
Slide 15: Financial highlights Q2 FY18
financial highlights Q2 FY18 Key Performance Indicators Accelerating growth in revenue, excluding billable expenses compared to prior year’s quarter Strong year-over-year headcount growth of nearly 1,500 Record backlog, reflecting growth of 22.3% year-over-year Second highest book-to-bill since our
Slide 16: Financial results: Second Quarter Fiscal Year 2018
financial results Second Quarter Fiscal year 2018 results Second Quarter (1) First half (1) Revenue $1.5 billion 10.6% Increase $3.0 billion 7.7% Increase Revenue, Excluding Billable Expenses $1.1 billion 7.5% Increase $2.1 billion 6.3% Increase Net Income $70.9 million 12.9% Increase $150.5 million
Slide 17: Capital allocation
Capital allocation We are committed to creating near- AND long-term value for investors through revenue growth, operational excellence and effective capital deployment Our FY18 plan remains unchanged: On track to convert approximately 100 percent of Adjusted Net Income to Free Cash Flow Aim to deplo
Slide 18: Financial outlook
Financial outlook REITERATed FULL YEAR GUIDANCE Guidance as provided on November 6, 2017: FY18 Estimated Weighted Average Diluted Share Count of 149.5 million shares, which excludes the impact of any potential FY18 share repurchase activities Assumes an effective tax rate in the range of 37% to 38%
Slide 19: Second highest BTB since our IPO
Second highest BTB since our ipo (1) Q3FY13 Book to Bill excludes the addition of backlog gained in the BES acquisition Quarterly book to bill trend Q2 FY18 marked the second highest BTB since our IPO and we are setting ourselves up for continued momentum: Anticipating client needs and advancing the
Slide 20: Appendix
Appendix
Slide 21: Non-GAAP financial information
Non-gaap financial information “Revenue, Excluding Billable Expenses" represents revenue less billable expenses. We use Revenue, Excluding Billable Expenses because it provides management useful information about the company's operating performance by excluding the impact of costs that are not indic
Slide 22: Non-GAAP financial information
Non-gaap financial information (a) Reflects amortization of intangible assets resulting from the Acquisition of our Company by the Carlyle group for the three and six months ended September 30, 2016. (b) Reflects debt refinancing costs incurred in connection with the refinancing transaction consumma
Slide 23: Shareholder and stock information
Shareholder and stock information Booz allen Hamilton holding corporation’s class a common stock began trading on the new York stock exchange (nyse) on Nov 17, 2010 Fiscal Year – Booz Allen Hamilton Holding Corporation’s fiscal year starts April 1 and ends March 31 Share Price Information – Booz All
Slide 24: Shareholder and stock information
Shareholder and stock information Booz Allen has utilized distributions (recurring and special) as part of its capital deployment strategy Regular: The firm has issued regular dividends each quarter since FY12 and has increased the dividend periodically when deemed appropriate. A history of past div
Slide 25: Shareholder and stock information
Shareholder and stock information Transfer Agent & Registrar Computershare www.computershare.com/investor/ P.O. Box 30170 College Station, TX 77842-3170 Phone: 866-390-3908 Computershare maintains records for registered stockholders and provides stockholder services at no charge, including: Independ
Slide 26: Shareholder and stock information
Shareholder and stock information Website: investors.boozallen.com Contact Information Investor Relations Curt Riggle Vice President of Investor Relations 703/377-5332 Riggle_Curt@bah.com Media James Fisher Principal, Media Relations 703/377-7595 Fisher_James_W@bah.com Corporate Governance Nancy Lab
Slide 27: Financial and operational highlights
Financial and operational highlights a All interim periods reflect unaudited numbers while annual numbers are audited. b Basic and diluted weighted average shares outstanding and earnings per common share amounts are calculated using the two-class method. Condensed consolidated statement of operatio
Slide 28: Financial and operational highlights
Financial and operational highlights Unaudited non-gaap financial information (a) a The use and definition of Non-GAAP financial measurements can be found in the Company's public filings. b Reflects amortization of intangible assets resulting from the acquisition of our Company by The Carlyle Group.
Slide 29: Financial and operational highlights
Financial and operational highlights Unaudited non-gaap financial information (a) a The use and definition of Non-GAAP financial measurements can be found in the company's public filings. b Reflects amortization of intangible assets resulting from the acquisition of our Company by The Carlyle Group.
Slide 30: Additional operating data
Additional operating data (a) Financial and operational highlights a All interim periods reflect unaudited numbers while annual numbers are audited. b Calculated as the change in total backlog during the relevant fiscal quarter plus the relevant fiscal quarter revenue, all divided by the relevant fi
Slide 31: Other Key Financial Metrics
Financial and operational highlights a All interim periods reflect unaudited numbers while annual numbers are audited. b Cash flow numbers are on a year-to-date basis for all periods presented. c In Q4 FY2016 the Company adopted two Accounting Standards Updates issued by the Financial Accounting Sta
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