Caci International, Inc. · NYSE:CACI
Caci International — Q2 FY2020 Earnings Presentation
16 slides from Caci International's earnings presentation, Jan 30, 2020
Slide 1: Q2 FY20 Earnings Conference Call
CACI International Inc Q2 FY20 Earnings Conference Call January 30, 2020 CACI Proprietary Information
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
Slide 3: On Today's Call
On Today’s Call John Mengucci Thomas Mutryn Greg Bradford President and Chief Chief Financial Officer President and Chief Executive Officer Executive, CACI Limited UK 3 CACI Q2 FY20 Earnings Conference Call
Slide 4: Strong Q2 Performance
Strong Q2 Performance Q2 revenue growth of 18.1%, with 8.1% organic growth Strong profitability Robust cash flow from operations1 Strong contract awards of $2.7 billion ~60% new business to CACI Raising FY20 guidance, including at least 7% organic growth 1 See slides at the end of this presentation
Slide 5: Strong Award Activity across Enterprise and Mission
Strong Award Activity across Enterprise and Mission Five-year, $1.1 billion contract for Enterprise and Mission Technology − Agile development and modernization of enterprise systems, including cloud migration − Illustrates our strong record of past performance with agile development and the industr
Slide 6: Strong Awards Driving Accelerating Organic Growth
Strong Awards Driving Accelerating Organic Growth Contract Awards and Book-to-Bill 4.5 3.0x 4.0 2.5x 3.5 3.0 2.0x 2.5 At least 7% organic growth 1.5x 2.0 expected in FY20 1.5 1.0x 1.0 0.5x 0.5 - - Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20 Contract Awards ($B; left axis) Book-to-Bill (TTM; right axis)
Slide 7: Positive Market Environment and Budget Trends
Positive Market Environment and Budget Trends Positive budget environment − Two appropriations bills signed in late December fully fund the government for GFY 2020 at ~4% above GFY 2019 levels − Continuing resolution (CR) to start GFY 2020 had no material impact on our business Large and growing add
Slide 8: Investing for Future Growth
Investing for Future Growth R&D to develop differentiated technologies and capabilities ahead of customer demand Business development to pursue, shape, and capture the right opportunities Our people, to attract and retain the industry’s best talent 8 CACI Q2 FY20 Earnings Conference Call
Slide 9: Q2 FY20 Revenue and Net Income
Q2 FY20 Revenue and Net Income Revenue (Ms) $1,600 $1,400 +18% $1,395 Revenue driven by acquired revenue, new $1,200 $1,182 business wins, and on-contract growth $1,000 Organic growth accelerated to 8.1% from $800 5.6% in Q1 $600 $400 Q2 FY19 Q2 FY20 Net Income (Ms) Higher net income driven by: $100
Slide 10: Strong Cash Generation and Ample Debt Capacity
Strong Cash Generation and Ample Debt Capacity Cash Flow1 and CapEx ▪ Q2 cash flow from operations of (millions, TTM) $134 million, up 137% year-over-year $500 $450 $400 ▪ Days Sales Outstanding of 51 days $350 (including A/R facility) $300 Pro Forma Leverage of 3.0x2 $250 $200 ▪ $150 $100 ▪ ~44% of
Slide 11: Raising FY20 Guidance
Raising FY20 Guidance Prior Guidance Current Guidance Organic revenue growth of Revenue $5,550 – $5,750 $5,600 – $5,800 at least 7% (millions) Tax rate expected to be Net Income $298 – $318 $305 – $325 approximately 22% (millions) Diluted shares outstanding expected to be 25.6M Diluted EPS $11.64 –
Slide 12: Positive Forward Indicators
Positive Forward Indicators Strong Q2 FY20 contract awards of $2.7 billion 97% STRONG Existing Business Performance TTM Book-to-Bill increased to 2.4x Record backlog of $20.3 billion, +61% YoY Pipeline of submitted bids totals $8.0 billion 2% HIGH Recompetes Win Rate >70% for new business to CACI Bi
Slide 13: Continuing to Deliver Results and Meet Commitments
Continuing to Deliver Results and Meet Commitments Delivered strong financial performance across the board in Q2, including accelerating organic revenue growth Generated robust cash flow and have ample debt capacity for additional M&A Raised FY20 guidance, expecting higher organic growth and continu
Slide 14: Definitions of Non-GAAP Measures
Definitions of Non-GAAP Measures The Company defines net cash provided by operating activities excluding CACI’s Master Accounts Receivable Purchase Agreement (MARPA) as net cash provided by operating activities calculated in accordance with GAAP, adjusted to exclude net cash received from CACI’s MAR
Slide 15: Reconciliation of Net Cash Provided by Operating Activities to Excluding MARPA
Reconciliation of Net Cash Provided by Operating Activities to Net Cash Provided by Operating Activities Excluding MARPA Quarter Ended (dollars in thousands) 12/31/2019 Net cash provided by operating activities $ 133,821 Cash used (provided) by MARPA (16,334) Net cash provided by operating activitie
Slide 16: Adjusted EBITDA Reconciliation
Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA) Quarter Ended (dollars in thousands) 12/31/2019 12/31/2018 % Change Net income $ 79,195 $ 68,596 15.5% Plus: Income taxes 16,278 24,246 -32.9% Interest income and expense, net 14,714 9,421 56.2% Depreciation an