Booz Allen Hamilton Holding Corporation · NYSE:BAH
Booz Allen Hamilton — Q1 FY2018 Earnings Presentation
31 slides from Booz Allen Hamilton's earnings presentation, Aug 7, 2017
Slide 1: Investor Presentation August 2017 Fiscal year 2018 first quarter
Investor Presentation August 2017 Fiscal year 2018 first quarter Exhibit 99.1
Slide 2: Disclaimer Forward Looking Safe Harbor Statement
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 growth differentiated model Diversified client and contract base Delivering near- and long-term value Key investment themes
Slide 4: Financial highlights Q1 FY18
financial highlights Q1 FY18 Key Performance Indicators Accelerating growth in Revenue, Excluding Billable Expenses compared to prior year’s quarter Record Backlog, reflecting growth of 17.1% compared to prior year’s quarter Strongest Q1 Book-to-Bill since our IPO Demand-driven headcount growth and
Slide 5: A leader with a proud history
A leader with a proud history Company Overview We are a global firm of approximately 23,300 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 6: Company History
Company History With over 75 years of industry leadership, Booz Allen is one of the most respected names in government contracting 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 $100M) S
Slide 7: History of revenue growth
History of revenue growth Note: All years represent FYE March 31. FY96 through FY05 revenue is based on revenue derived directly from Booz Allen’s accounting system (JAMIS). FY06 and later revenue is based on revenue derived directly from Booz Allen’s consolidated financial statements, which have be
Slide 8: High-Quality and Diversified Contract Portfolio
High-Quality and Diversified Contract Portfolio Access to a large portfolio of contract vehicles allows Booz Allen to provide services to a broad customer base, minimizing volatility Diversified revenue base—delivered on over 4,800 U.S. government contracts and task orders in FY17 Largest definite c
Slide 9: Diversified client base
Diversified client base Commercial: Financial Services, Utilities, Energy, Retail, Manufacturing, Healthcare International: Middle East, North Africa Region, and Select Asian Markets GLOBAL COMMERCIAL (2.6%) U.S. Intelligence Agencies: National Security Agency, National Geospatial-Intelligence Agenc
Slide 10: Strong Backlog Provides Revenue Visibility
Strong Backlog Provides Revenue Visibility Booz Allen Backlog (1) Record backlog achieved in FY17, with growth in all categories ($ in billions) FY13 backlog excludes backlog gained in the BES acquisition.
Slide 11: Our growth strategy
Our 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 broa
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: 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 14: Defense and Intelligence business contributing to growth
Defense and Intelligence business contributing to growth FY16 was an inflection point for our business—the year when Booz Allen pivoted from revenue contraction to revenue growth That pivot did not happen by market forces alone We created it with our Vision 2020 strategy by investing over a number o
Slide 15: Key financial results
Key financial results First Quarter Fiscal year 2018 results First Quarter (1) Revenue $1.5 billion 5.0% Increase Revenue, Excluding Billable Expenses $1.0 billion 5.2% Increase Net Income $79.5 million 17.3% Increase Adjusted Net Income $79.9 million 15.4% Increase Adjusted EBITDA $154.9 million 7.
Slide 16: 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 17: Financial outlook
Financial outlook 16 We increased the top and bottom end of our Diluted EPS and Adjusted Diluted EPS guidance range by $0.04 to reflect the adoption of a new accounting standard, ASU 2016-09, which changed the accounting for certain aspects of employee equity awards and resulted in an income tax ben
Slide 18: Appendix
Appendix
Slide 19: Adjusted EBITDA margin trends
Adjusted ebitda margin trends Adj. EBITDA Margin (%) Fiscal Year EBITDA Margin 2017 9.4% 2016 9.4% 2015 9.9%
Slide 20: Capturing opportunities in an improving market
Capturing opportunities ...in an improving market How we deploy capital will depend on general economic conditions, availability of options for supporting growth and value creation, and the strength of our balance sheet We are winning and executing work that is at the core of our clients’ most criti
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. (b) Reflects the combination of Interest Expense and Other income (expense), net from the condensed consolidated income statement. (c) Reflects tax effect
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 (continued)
Shareholder and stock information (continued) Dividends – Booz Allen has utilized distributions (recurring and special dividends) as part of its capital deployment strategy. However, the actual declaration of any such future dividends and the establishment of the per share amount, record dates, and
Slide 25: Shareholder and stock information (continued)
Shareholder and stock information (continued) 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, includi
Slide 26: Shareholder and stock information (continued)
Shareholder and stock information (continued) 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 Governan
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: Financial and operational highlights
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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