Leidos Holdings, Inc. · NYSE:LDOS
Leidos — Q4 2016 Earnings Presentation
16 slides from Leidos's earnings presentation, Feb 23, 2017
Slide 1: Leidos 4Q 2016 Earnings Conference Call
Leidos 4Q 2016 Earnings Conference Call February 23, 2017
Slide 2: Forward-Looking Statements
Forward-Looking Statements Certain statements in this presentation contain or are based on “forward-looking” information within the meaning of the Private Securities Litigation Reform Act of 1995. Actual performance and results may differ materially from the guidance and other forward-looking statem
Slide 3: FY 2016 Highlights
FY 2016 Highlights ► Revenue growth – organic(1) and total Improving Financials ► Margin expansion Improved Portfolio ► IS&GS acquisition The new Leidos ► Heavy Construction divestiture 2018 & beyond(2) 3% revenue growth ► 1.0 book to bill 10%+ Adjusted EBITDA margin Strongly positioned for ► Cost s
Slide 4: Leidos 4Q FY16 Results
Leidos 4Q FY 16 Results Non-GAAP Adjusted EBITDA Cash Flow from Revenue ($B) Diluted EPS Margin Operations ($)2 (%)2 ($M) +4.5%1 -6.3% +406% +50bps $2.6 $0.80 9.5% $0.75 9.0% $162 $1.3 $1.2 $1.2 $32 4Q CY 15 4Q FY 16 4Q CY 15 4Q FY 16 4Q CY 15 4Q FY 16 4Q CY 15 4Q FY 16 Adjusted revenue of $1.171B i
Slide 5: National Security Sector (NSS)
National Security Sector (NSS) Revenue Non-GAAP Operating Income Non-GAAP Operating Margin ($M) ($M)1 (%)1 +3.3% +4.6% +10bps $848 $876 $68 $65 7.7% 7.8% 4Q CY 15 4Q FY 16 4Q CY 15 4Q FY 16 4Q CY 15 4Q FY 16 (1) See appendix for definition & reconciliation of Non-GAAP Financial Measures 5 ©2017 LEID
Slide 6: Health & Infrastructure Sector (HIS)
Health & Infrastructure Sector (HIS) Revenue Non-GAAP Operating Income Non-GAAP Operating Margin ($M) ($M)2 (%)2 +23.7%1 +170bps1 +8.1%1 13.5% $432 11.8% $48 $47 $348 11.1% $322 $38 4Q CY 15 4Q FY 16 4Q CY 15 4Q FY 16 4Q CY 15 4Q FY 16 Adjusted revenue of $322M excludes 4Q CY 15 revenues from Heavy
Slide 7: Information Systems & Global Solutions (IS&GS) Sector
Information Systems & Global Solutions (IS&GS) Sector Revenue Non-GAAP Operating Income Non-GAAP Operating Margin ($M) ($M)1 (%)1 $1,351 10.4% $141 4Q FY 16 4Q FY 16 4Q FY 16 (1) See appendix for definition & reconciliation of Non-GAAP Financial Measures 7 ©2017 LEIDOS. ALL RIGHTS RESERVED.
Slide 8: Awards & Backlog
Awards & Backlog NSS HIS IS&GS $9,000 $8,026 $7,861 $8,707 $8,851 $2,000 $1,869 $1,888 $9,000 $8,365 $8,000 $7,288 $7,925 $7,567 $1,800 $1,746 $1,679 $1,804 $8,000 Backlog* ($M) $7,000 $1,600 $820 $866 $7,000 $6,000 $1,400 $757 $837 $811 $6,000 $5,780 $6,029 $4,793 $5,000 $6,102 $6,166 $1,200 $6,554
Slide 9: 2017 Guidance Update
2017 Guidance Update Current Prior Revenue $10.0B to $10.4B $9.8B to $10.2B Adjusted EBITDA Margin(1) 9.5% to 10.0% 9.0% to 10.0% Non-GAAP Diluted EPS(1) $3.05 to $3.35 $2.90 to $3.20 Effective Tax Rate ~37% ~37% Operating Cash Flow from Continuing Operations Unchanged Meet or exceed $475M(2) (1) A
Slide 10: Appendix
Appendix * leidos
Slide 11: Weighted Average Share Count Impact
Weighted Average Share Count Impact 1QFY161 2QFY16 3QFY16 4QFY16 (in millions, except for per share amounts) Quarter-to-Date GAAP Income from continuing operations attributable to Leidos Holdings, Inc. $ 53 $ 41 $ 91 $ 59 Quarter-to-Date - Diluted weighted average number of shares outstanding 74 74
Slide 12: Non-GAAP Reconciliations
Non-GAAP Reconciliations This presentation includes certain non-GAAP financial measures, such as non-GAAP operating income, non-GAAP operating income margin, non-GAAP income from continuing operations, non-GAAP diluted earnings per share (EPS), adjusted earnings before interest, taxes, depreciation
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 income (loss) from continuing operations: (i) other (expense) income, net; (ii) interest expense; (iii) interest income; (iv) income tax expense adjusted to reflect non-GAAP adjustme
Slide 14: Non-GAAP Operating Income Reconciliation
Non-GAAP Operating Income Reconciliation 1QCY151 2QCY151 3QCY151 4QCY151 CY151 1QFY16 2QFY16 3QFY16 4QFY16 FY16 (in millions) GAAP operating income from continuing operations $ 38 $ 64 $ 94 $ 102 $ 298 $ 89 $ 75 $ 101 $ 152 $ 417 Acquisition and integration costs - - - - - 9 15 44 22 90 Amortization
Slide 15: Non-GAAP Financial Measures Reconciliation
Non-GAAP Financial Measures Reconciliation 1QCY151 2QCY151 3QCY151 4QCY151 CY151 1QFY162 2QFY16 3QFY16 4QFY16 FY16 (in millions, except for per share amounts) Non-GAAP operating income from continuing operations $ 82 $ 96 $ 101 $ 107 $ 386 $ 99 $ 93 $ 177 $ 240 $ 609 Depreciation expense 10 9 9 7 35
Slide 16: Segment Non-GAAP Operating Income Reconciliation
Segment Non-GAAP Operating Income Reconciliation Quarter Ended December 30, 2016 Twelve Months Ended December 30, 2016 (in millions) (in millions) Operating Acquisition and Amortization Restructuring Asset impairment Non-GAAP Operating Operating Acquisition and Amortization Restructuring Asset impai