Leidos Holdings, Inc. · NYSE:LDOS
Leidos — Q1 2024 Earnings Presentation
13 slides from Leidos's earnings presentation, Apr 30, 2024
Slide 1: Leidos Q1 FY24 Earnings Conference Call
Leidos Q1 FY24 Earnings Conference Call APRIL 30, 2024
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS Certain statements in this release contain or are based on "forward- our compliance with various U.S. government and other government intellectual property and other proprietary rights by third parties of looking" information within the meaning of the Private Securities pr
Slide 3: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES This presentation includes certain non-GAAP financial measures, Leidos does not provide a reconciliation of forward-looking such as organic growth, non-GAAP operating income, non-GAAP adjusted EBITDA margins or non-GAAP diluted EPS to GAAP net operating margin, non-GAAP e
Slide 4: CEO Key Messages
CEO KEY MESSAGES Robust Q1 — driving profitable growth – Revenues up 7.5% YoY – Non-GAAP diluted EPS up 56% YoY – Record adjusted EBITDA margin of 12.3% – Cash flow enabled $150M in share repurchases Substantial raise to 2024 guidance for all metrics UNLOCKING VALUE IN INVESTING IN DISRUPTIVE DEVELO
Slide 5: Q1 FY24 Results: Income Statement
Q1 FY24 RESULTS: INCOME STATEMENT Revenues Adjusted EBITDA Margin Non-GAAP Diluted EPS $3,975M 12.3% $2.29 $3,699M 9.4% $1.47 Q1 FY23 +7.5% Q1 FY24 Q1 FY23 +290 bps Q1 FY24 Q1 FY23 +55.8% Q1 FY24 LEIDOS Leidos Q1 2024 Earnings Conference Call 5
Slide 6: Q1 FY24 Results: Reportable Segments
Q1 FY24 RESULTS: REPORTABLE SEGMENTS National Security and Digital Health & Civil Commercial & International Defense Systems $1,757M $1,793M Revenues $1,199M $1,008M $489M $509M $445M $474M Q1 FY23 +2.0% Q1 FY24 Q1 FY23 +18.9% Q1 FY24 Q1 FY23 +4.1% Q1 FY24 Q1 FY23 +6.5% Q1 FY24 Non-GAAP OI Margin 19
Slide 7: Q1 FY24 Results: Cash Flow / Balance Sheet
Q1 FY24 RESULTS: CASH FLOW / BALANCE SHEET - Operating cash flow $63M Cash flow generation driven Cash Flow Generation by strong EBITDA and - Non-GAAP free cash flow $46M collections performance - DSO of 62 days, in-line with prior year Balance sheet and cash - Total return to shareholders $236M gen
Slide 8: 2024 Guidance
2024 GUIDANCE MEASURE CURRENT PRIOR Raising Guidance on All Metrics – Revenues: +$300M Revenues (billions) $16.0 - $16.4 $15.7 - $16.1 – Adjusted EBITDA margin: +100 bps Adjusted EBITDA Margin Mid-to-High 11% Mid-to-High 10% – Non-GAAP diluted EPS: +$0.90 Non-GAAP Diluted EPS $8.40 - $8.80 $7.50 - $
Slide 9: Appendix: Non-GAAP Reconciliations
APPENDIX Non-GAAP Reconciliations LEIDOS Leidos Q1 2024 Earnings Conference Call 9
Slide 10: Organic Growth
ORGANIC GROWTH (in millions, except growth rates) Q1 FY24 Q1 FY23 % Change National Security and Digital Revenues, as reported $ 1,793 $ 1,757 2% Health & Civil Revenues, as reported $ 1,199 $ 1,008 19% Commercial & International Revenues, as reported $ 509 $ 489 4% Defense Systems Revenues, as repo
Slide 11: Non-GAAP Income Metrics
NON-GAAP INCOME METRICS Three Months Ended March 29, 2024 Three Months Ended March 31, 2023 Acquisition, Acquisition, integration integration and Amortization Non- and Amortization Non- As restructuring of acquired GAAP As restructuring of acquired GAAP (in millions, except per share amounts) report
Slide 12: Segment Non-GAAP Operating Income
SEGMENT NON-GAAP OPERATING INCOME Three Months Ended March 29, 2024 Acquisition, integration and Amortization of Non-GAAP Non-GAAP Operating restructuring acquired operating operating (in millions) income (loss) costs intangibles income (loss) margin(1) National Security and Digital $ 175 $ — $ 6 $
Slide 13: Non-GAAP Free Cash Flow
NON-GAAP FREE CASH FLOW Three Months Ended (in millions, except conversion ratio) March 29, 2024 March 31, 2023 Net cash provided by (used in) operating activities $ 63 $ (98) Payments for property, equipment and software (17) (39) Non-GAAP free cash flow $ 46 $ (137) Net income attributable to Leid