SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarter Ended March 31, 2004
Commission File Number 0-8401
CACI International Inc
(Exact name of registrant as specified in its charter)
Delaware
(State or other jurisdiction of
incorporation or organization)
54-1345888
(I.R.S. Employer Identification No.)
1100 North Glebe Road, Arlington, VA 22201
(Address of principal executive offices)
(703) 841-7800
(Registrant’s telephone number,
including area code)
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class |
Name of each exchange on which registered | |
| None | None |
Securities registered pursuant to Section 12(g) of the Act:
CACI International Inc Common Stock, $0.10 par value
(Title of each class)
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes x No ¨.
Indicate the number of shares outstanding of each of the registrant’s classes of common stock, as of March 31, 2004: CACI International Inc Common Stock, $0.10 par value, 29,136,432 shares.
1
CACI INTERNATIONAL INC AND SUBSIDIARIES
2
PART 1
FINANCIAL INFORMATION
| Item 1. | Financial Statements |
CACI INTERNATIONAL INC AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(amounts in thousands, except per share data)
| Three Months Ended March 31, |
||||||||
| 2004 |
2003 |
|||||||
| Revenue |
$ | 288,411 | $ | 222,016 | ||||
| Costs and expenses |
||||||||
| Direct costs |
179,440 | 139,427 | ||||||
| Indirect costs and selling expenses |
79,377 | 61,696 | ||||||
| Depreciation and amortization |
4,382 | 3,040 | ||||||
| Total operating expenses |
263,199 | 204,163 | ||||||
| Operating income |
25,212 | 17,853 | ||||||
| Interest income |
(212 | ) | (477 | ) | ||||
| Income before income taxes |
25,424 | 18,330 | ||||||
| Income taxes |
9,662 | 6,872 | ||||||
| Net income |
$ | 15,762 | $ | 11,458 | ||||
| Basic earnings per share |
$ | 0.54 | $ | 0.40 | ||||
| Diluted earnings per share |
$ | 0.53 | $ | 0.39 | ||||
| Average shares outstanding |
29,126 | 28,718 | ||||||
| Average shares and equivalent shares outstanding |
29,935 | 29,461 | ||||||
See notes to condensed consolidated financial statements (unaudited)
3
CACI INTERNATIONAL INC AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(amounts in thousands, except per share data)
| Nine Months Ended March 31, |
||||||||
| 2004 |
2003 |
|||||||
| Revenue |
$ | 787,507 | $ | 614,505 | ||||
| Costs and expenses |
||||||||
| Direct costs |
488,729 | 380,038 | ||||||
| Indirect costs and selling expenses |
217,441 | 176,398 | ||||||
| Depreciation and amortization |
12,384 | 8,730 | ||||||
| Total operating expenses |
718,554 | 565,166 | ||||||
| Operating income |
68,953 | 49,339 | ||||||
| Interest income |
(631 | ) | (958 | ) | ||||
| Income before income taxes |
69,584 | 50,297 | ||||||
| Income taxes |
26,592 | 18,863 | ||||||
| Net income |
$ | 42,992 | $ | 31,434 | ||||
| Basic earnings per share |
$ | 1.48 | $ | 1.10 | ||||
| Diluted earnings per share |
$ | 1.44 | $ | 1.07 | ||||
| Average shares outstanding |
29,022 | 28,620 | ||||||
| Average shares and equivalent shares outstanding |
29,875 | 29,420 | ||||||
See notes to condensed consolidated financial statements (unaudited)
4
CACI INTERNATIONAL INC AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(amounts in thousands, except per share data)
| March 31, 2004 |
June 30, 2003 |
|||||||
| (unaudited) | ||||||||
| ASSETS |
||||||||
| Current assets |
||||||||
| Cash and equivalents |
$ | 22,634 | $ | 73,735 | ||||
| Marketable securities |
576 | 15,291 | ||||||
| Accounts receivable, net: |
||||||||
| Billed |
247,293 | 179,202 | ||||||
| Unbilled |
20,691 | 18,891 | ||||||
| Total accounts receivable, net |
267,984 | 198,093 | ||||||
| Deferred income taxes |
1,178 | 462 | ||||||
| Prepaid expenses and other |
10,515 | 10,329 | ||||||
| Total current assets |
302,887 | 297,910 | ||||||
| Property and equipment, net |
20,271 | 18,634 | ||||||
| Accounts receivable, long term, net |
9,693 | 8,083 | ||||||
| Goodwill |
217,912 | 182,313 | ||||||
| Other assets |
26,666 | 18,715 | ||||||
| Intangible assets |
45,688 | 36,395 | ||||||
| Total assets |
$ | 623,117 | $ | 562,050 | ||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY |
||||||||
| Current liabilities |
||||||||
| Notes payable |
$ | 1,632 | $ | 4,558 | ||||
| Accounts payable |
16,332 | 20,739 | ||||||
| Accrued compensation and benefits |
54,271 | 44,460 | ||||||
| Other accrued expenses |
38,878 | 32,569 | ||||||
| Income taxes payable |
1,304 | 12,999 | ||||||
| Total current liabilities |
112,417 | 115,325 | ||||||
| Notes payable, long-term |
880 | — | ||||||
| Deferred rent expenses |
5,099 | 4,463 | ||||||
| Deferred income taxes |
3,446 | 6,108 | ||||||
| Other long-term obligations |
23,017 | 14,619 | ||||||
| Shareholders’ equity |
||||||||
| Common stock - $.10 par value, 80,000 shares authorized, 36,951 and 36,509 shares issued, respectively |
3,695 | 3,651 | ||||||
| Capital in excess of par |
215,745 | 204,144 | ||||||
| Retained earnings |
277,466 | 234,474 | ||||||
| Accumulated comprehensive income |
4,231 | 388 | ||||||
| Treasury stock, at cost (7,814 and 7,774 shares respectively) |
(22,879 | ) | (21,122 | ) | ||||
| Total shareholders’ equity |
478,258 | 421,535 | ||||||
| Total liabilities & shareholders’ equity |
$ | 623,117 | $ | 562,050 | ||||
See notes to condensed consolidated financial statements (unaudited)
5
CACI INTERNATIONAL INC AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(amounts in thousands)
| Nine Months Ended March 31, |
||||||||
| 2004 |
2003 |
|||||||
| CASH FLOWS FROM OPERATING ACTIVITIES |
||||||||
| Net income |
$ | 42,992 | $ | 31,434 | ||||
| Reconciliation of net income to net cash provided by operating activities |
||||||||
| Depreciation and amortization |
12,384 | 8,730 | ||||||
| (Benefit) provision for deferred income taxes |
(3,173 | ) | 1,796 | |||||
| Changes in operating assets and liabilities, net of effect of acquisitions |
||||||||
| Increase in accounts receivable, net |
(39,830 | ) | (23,497 | ) | ||||
| Increase in prepaid expenses and other assets |
(5,650 | ) | (4,441 | ) | ||||
| (Decrease) increase in accounts payable and accrued expenses |
(707 | ) | 13,578 | |||||
| Increase in accrued compensation and benefits |
6,073 | 3,559 | ||||||
| Increase in other long-term obligations |
6,746 | 4,204 | ||||||
| Increase in deferred rent expense |
680 | 155 | ||||||
| (Decrease) increase in income taxes payable |
(6,568 | ) | 2,944 | |||||
| Net cash provided by operating activities |
12,947 | 38,462 | ||||||
| CASH FLOWS FROM INVESTING ACTIVITIES |
||||||||
| Capital expenditures |
(5,598 | ) | (6,341 | ) | ||||
| Cash paid for purchase of businesses, net of cash acquired |
(79,014 | ) | (55,357 | ) | ||||
| Purchase of marketable securities |
(62 | ) | (10,256 | ) | ||||
| Proceeds from sale of marketable securities |
15,290 | 15,009 | ||||||
| Other assets |
(2,133 | ) | 993 | |||||
| Net cash used in investing activities |
(71,517 | ) | (55,952 | ) | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES |
||||||||
| Payments made under line-of-credit |
— | (25,000 | ) | |||||
| Proceeds from employee stock purchase plans |
2,485 | — | ||||||
| Proceeds from exercise of stock options |
6,911 | 3,422 | ||||||
| Purchase of common stock for treasury |
(3,667 | ) | (105 | ) | ||||
| Net cash provided by (used in) financing activities |
5,729 | (21,683 | ) | |||||
| Effect of changes in currency rates on cash and equivalents |
1,740 | 783 | ||||||
| Net decrease in cash and equivalents |
(51,101 | ) | (38,390 | ) | ||||
| Cash and equivalents, beginning of period |
73,735 | 131,049 | ||||||
| Cash and equivalents, end of period |
$ | 22,634 | $ | 92,659 | ||||
| SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION |
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