Caci International, Inc. · NYSE:CACI
Caci International — Q2 FY2014 Earnings Presentation
20 slides from Caci International's earnings presentation, Jan 30, 2014
Slide 1: CACI International Inc Second Quarter Fiscal Year 2014
CACI International Inc Second Quarter Fiscal Year 2014 January 30, 2014 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: Our Participants Today
Our Participants Today Ken Asbury President and Chief Executive Officer Tom Mutryn Chief Financial Officer John Mengucci Chief Operating Officer and President, U.S. Operations Greg Bradford Chief Executive Officer, CACI Limited in the UK INFORMATION DEPLOYED. SOLUTIONS ADVANCED. MISSIONS ACCOMPLISHE
Slide 4: Second Quarter FY14 Performance
Second Quarter FY14 Performance Progress and Results on Our Strategy Solid quarter for Operations Significantly higher contract awards, higher net income Completed Six3 Systems acquisition • Performance and integration on plan Increasing FY14 revenue guidance, reiterating net income guidance Achieve
Slide 5: Strategy to Improve Long-Term Performance
Strategy to Improve Long-Term Performance Winning new business • Optimizing business development • Focusing on government’s high-priority missions • Bidding selectively • Strategic campaigns Driving operational excellence • Credentialing value delivery systems • Efficient, effective, ethical program
Slide 6: Need for Advanced Cyber in Marketplace
Need for Advanced Cyber in Marketplace Strategic shift to Asia and Pacific Adversaries technologically sophisticated, economically advanced Need new methods to conduct ISR and deliver kinetic and non-kinetic effects INFORMATION DEPLOYED. SOLUTIONS ADVANCED. MISSIONS ACCOMPLISHED. 6 CACI 2nd Quarter
Slide 7: CACI's Full Spectrum of Cyberspace
CACI’s Full Spectrum of Cyberspace Six3: Highly specialized and differentiated capabilities in signals processing, precision geo-location, and non-traditional cyber and electronic warfare CACI: Ability to defend or disrupt a computer, server, or network architecture Six3: Focus on signals emitted by
Slide 8: Six3 Contribution in Second Quarter
Six3 Contribution in Second Quarter Revenue and Net Income: Generated $49 million in revenue $2.4 million in net income from ongoing business Six3-Related Expenses: $2.3 million of after-tax intangible amortization and retention expenses Intangible asset ~ $164 million to be amortized on an accelera
Slide 9: Second Quarter Results
Second Quarter Results Revenue* Net Income* $1,000M $45M $42.9 $931.6 $39.7 $900M $845.3 $40M $800M $35M $700M $30M $600M $25M $500M $20M Q2 `13 Q2 `14 Q2 `13 Q2 `14 Decrease driven primarily by: Indirect expenses* down as a result • Reductions on existing of increased efficiencies and cost contract
Slide 10: Second Quarter Cash Flow
Second Quarter Cash Flow Generated $17 million in operating cash flow Days sales outstanding – 67 days $400 $12.00 TTM Free Cash Flow Per $350 Share (right scale) $10.00 $300 $8.00 $ millions (except per share data) $250 $200 $6.00 $150 $4.00 $100 TTM Free Cash Flow $50 (left scale) $2.00 $0 $- 9.9%
Slide 11: Updated FY14 Guidance
Updated FY14 Guidance FY14 Guidance Revenue (millions) $3,650 – $3,800 Net income (millions) $142 – $152 Diluted EPS $5.59 – $5.98 Diluted shares (millions) 25.4 FY14 revenue expected to be -1% to 3% versus FY13 Six3 FY14 revenue contribution of $275 million to $325 million FY14 net income expected
Slide 12: Operational Excellence
Operational Excellence Organization structure sized to our business plan Drive affordability for our customers, not sacrifice profit Fulfill customers’ enduring core missions 12 | CACI 2nd Quarter Fiscal Year 2014 Conference Call | January 30, 2014
Slide 13: Operational Performance
Operational Performance $717 million of contract awards, 25% from new business $599 million in contract funding orders Funded backlog of $1.8 billion;* total backlog of $7.6 billion* * Does not include contribution from Six3 Systems 13 | CACI 2nd Quarter Fiscal Year 2014 Conference Call | January 30
Slide 14: Achieving Our FY14 Plan
Achieving Our FY14 Plan FY14 Planned Revenue as of: Q2, FY14 93% 5% 2% EXISTING BUSINESS RECOMPETES NEW BUSINESS 84% currently funded, comparable to this time last year Initial Guidance 65% 25% 10% EXISTING BUSINESS RECOMPETES NEW BUSINESS 14 | CACI 2nd Quarter Fiscal Year 2014 Conference Call | Jan
Slide 15: Forward Indicators
Forward Indicators $7.3 billion in pending contract awards* • 75% for new business • ~ 30% in high-growth market areas $8.5 billion in bids* to be submitted by June 30th • 80% for new business • ~ 30% in high-growth market areas Focus on business development remains a priority * Does not include Six
Slide 16: Delivering Shareholder Value
Delivering Shareholder Value Solid progress on our strategy in a difficult market environment Will remain focused on: • Optimizing business development • Driving operational excellence • Integrating Six3 and maximizing its value • Delivering solid cash flow • Deploy capital to acquire new capabiliti
Slide 17: Appendix
Appendix 17 | CACI 2nd Quarter Fiscal Year 2014 Conference Call | January 30, 2014
Slide 18: Key Factors for Updated FY14 Guidance
Key Factors for Updated FY14 Guidance Expect direct labor expense to be up 3% to 6% over FY13 Expect other direct costs to decline 1% to 4% from FY13 Expect indirect costs and selling expenses to be up 1% to 3% over FY13 Expect depreciation and amortization to be ~ $66 million Expect net interest ex
Slide 19: Reconciliation of Revenue and Net Income
Reconciliation of Revenue and Net Income Revenue Reconciliation Quarter Ended 12/31/13 12/31/12 % Change CACI revenue, as reported $ 894,186 $ 931,627 -4.0% Six3 Systems revenue 48,904 CACI base revenue $ 845,282 $ 931,627 -9.3% Net Income Reconciliation Quarter Ended 12/31/13 12/31/12 % Change Net
Slide 20: Current Debt
Current Debt Current debt structure: • ~ $330 million of revolver borrowing • $831 million Term A loan • $300 million of convertible debt • Will amortize cost of recent financing over 5-year life of loan − $1.6 million/year after-tax Current leverage is 3.4 times trailing twelve months EBITDA 20 | C