Leidos Holdings, Inc. · NYSE:LDOS
Leidos — Q4 2017 Earnings Presentation
15 slides from Leidos's earnings presentation, Feb 22, 2018
Slide 1: Leidos 4Q 2017 Earnings Conference Call
Leidos 4Q 2017 Earnings Conference Call February 22, 2018
Slide 2: Forward-Looking Statements
Forward-Looking Statements Certain statements in this release contain or are based on "forward-looking" information within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by words such as "expects," "intends," "plans," "
Slide 3: FY 2017 Highlights
FY 2017 Highlights ► 10.4% Adjusted EBITDA Margin, 145bps improvement yoy Strong Operational Execution ► Non-GAAP Diluted Earnings per Share: $3.72 ► >$350M cost synergy realization ► Lean cost structure & innovative technical capabilities Positioned for Growth ► $17.5 billion backlog ► $24 billion
Slide 4: Leidos 4Q FY 17 Results
Leidos 4Q FY 17 Results Revenue Non-GAAP Adjusted EBITDA Cash Flow from ($B) Diluted EPS Margin Operations ($)1,2 (%)1 ($M) $2.6 $2.5 -2% $0.87 9.5% 9.7% $164 $0.75 +22 bps $121 +16% +$43M 4Q FY 16 4Q FY 17 4Q FY 16 4Q FY 17 4Q FY 16 4Q FY 17 4Q FY 16 4Q FY 17 (1) See appendix for definition & recon
Slide 5: Defense Solutions Segment
Defense Solutions Segment Revenue Non-GAAP Operating Income Non-GAAP Operating Margin ($M) ($M)1 (%)1 $1,269 $1,221 $113 $101 9.3% -4% 8.0% +12% +130 bps 4Q FY 16 4Q FY 17 4Q FY 16 4Q FY 17 4Q FY 16 4Q FY 17 (1) See appendix for definition & reconciliation of Non-GAAP Financial Measures 5 ©2018 LEID
Slide 6: Civil Segment
Civil Segment Revenue Non-GAAP Operating Income Non-GAAP Operating Margin ($M) ($M)1 (%)1 $862 $854 -1% $88 $91 10.2% 10.7% +3% +45 bps 4Q FY 16 4Q FY 17 4Q FY 16 4Q FY 17 4Q FY 16 4Q FY 17 (1) See appendix for definition & reconciliation of Non-GAAP Financial Measures 6 ©2018 LEIDOS. ALL RIGHTS RES
Slide 7: Health Segment
Health Segment Revenue Non-GAAP Operating Income Non-GAAP Operating Margin ($M) ($M)1 (%)1 $443 $441 Flat $67 15.1% $53 12.0% -311 bps -19% 4Q FY 16 4Q FY 17 4Q FY 16 4Q FY 17 4Q FY 16 4Q FY 17 (1) See appendix for definition & reconciliation of Non-GAAP Financial Measures 7 ©2018 LEIDOS. ALL RIGHTS
Slide 8: Backlog & Book to Bill
Backlog & Book to Bill 17.7 17.7 17.5 16.9 17.1 Backlog1 ($B) 11.7 12.1 12.5 12.0 12.1 6.0 4.9 5.0 5.6 5.0 4QFY16 1QFY17 2QFY17 3QFY17 4QFY17 Book to Bill2 1.2 1.0 0.9 0.7 0.7 4QFY16 1QFY17 2QFY17 3QFY17 4QFY17 Funded Backlog Negotiated Unfunded Backlog (1) Backlog presented at exchange rate in effe
Slide 9: 2018 Guidance
2018 Guidance Current Revenue $10.25B to $10.65B Adjusted EBITDA Margin(1) 10.1% to 10.4% Non-GAAP Diluted EPS(1,2) $4.15 to $4.50 Operating Cash Flow Meet or exceed $675M(3) (1) A quantitative reconciliation of adjusted EBITDA margin and non-GAAP diluted EPS forward-looking guidance to the most dir
Slide 10: Appendix
Appendix * leidos
Slide 11: Non-GAAP Financial Measures
Non-GAAP Financial Measures This presentation includes certain non-GAAP financial measures, such as non-GAAP operating income, non-GAAP operating income margin, non-GAAP diluted earnings per share (EPS), adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), and adjusted E
Slide 12: Definition of Non-GAAP Financial Measures
Definition of Non-GAAP Financial Measures Non-GAAP operating income is computed by excluding the following items from net income: (i) other (expense) income, net; (ii) interest expense; (iii) interest income; (iv) the following discrete items (referred to as non-GAAP adjustments); and (v) income tax
Slide 13: Non-GAAP Operating Income Reconciliation
Non-GAAP Operating Income Reconciliation 1QFY16 2QFY16 3QFY16 4QFY16 FY16 1QFY17 2QFY17 3QFY17 4QFY17 FY17 (in millions) Operating income $ 89 $ 75 $ 101 $ 152 $ 417 $ 141 $ 166 $ 151 $ 101 $ 559 Acquisition and integration costs 9 15 44 22 90 19 16 21 46 102 Amortization of acquired intangible asse
Slide 14: Non-GAAP Financial Measures Reconciliation
Non-GAAP Financial Measures Reconciliation 1QFY161 2QFY16 3QFY16 4QFY16 FY16 1QFY17 2QFY17 3QFY17 4QFY17 FY17 (in millions, except per share amounts) Non-GAAP operating income $ 99 $ 93 $ 177 $ 240 $ 609 $ 242 $ 264 $ 256 $ 231 $ 993 Depreciation expense 7 7 10 14 38 13 13 16 13 55 Other (expense) i
Slide 15: Segment Non-GAAP Operating Income Reconciliation
Segment Non-GAAP Operating Income Reconciliation Twelve Months Ended December 29, 2017 (in millions) Operating income Acquisition and Amortization of Restructuring Amortization of equity Non-GAAP operating (loss) integration costs intangibles expenses method investments income (loss) Defense Solutio