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8-K - CACI INTERNATIONAL INC 8-K - CACI INTERNATIONAL INC /DE/a6710103.htm

Exhibit 99

CACI Reports Record Results for Its Fiscal 2011 Third Quarter and Raises Guidance

Diluted earnings per share increased 33.5 percent to a record $1.16

Revenue increased 16.5 percent to a record $913.4 million

Organic revenue increased 14.3 percent

ARLINGTON, Va.--(BUSINESS WIRE)--May 4, 2011--CACI International Inc (NYSE: CACI), a leading professional services and information technology solutions provider to the federal government, announced results today for its third fiscal quarter ended March 31, 2011.

Third Quarter Results

             
(in millions except per share data)   Q3, FY11   Q3, FY10   % Change
Revenue   $913.4   $784.2   16.5%
Operating income   $61.8   $47.3   30.6%
Net income   $36.4   $26.7   36.4%
Diluted earnings per share   $1.16   $0.87   33.5%
     

We are pleased to report record third quarter Fiscal Year 2011 (FY11) revenue of $913.4 million, an increase of 16.5 percent from the third quarter of Fiscal Year 2010 (FY10). The revenue increase was driven primarily by organic growth of 14.3 percent, reflecting continued growth in our C4ISR Solutions and Services and Business System Solutions core competencies. Operating income grew 30.6 percent over the prior year period to a record $61.8 million, driven by strong growth in direct labor and continued cost control. In addition, we benefitted from a $2.6 million decrease to our earn-out related liability for acquisitions made in FY10 and a lower than expected tax rate. Net income for the third quarter of FY11 was a record $36.4 million, or $1.16 diluted earnings per share, an increase of 36.4 percent over net income of $26.7 million, or $0.87 diluted earnings per share, for the same period in FY10. Net cash provided by operations in the quarter was $77.6 million.

CEO Commentary and Outlook

Commenting on the company’s results, Paul Cofoni, CACI’s President and CEO, said, “We delivered a very strong quarter, exceeding our goal of mid- to high-single-digit organic revenue growth and producing outstanding earnings growth. Our robust pipeline, high win rate, operational excellence, and margin improvement initiatives yielded our exceptional financial results. We completed our June 2010 share repurchase program. In addition, as part of our balanced capital allocation strategy, CACI’s Board of Directors recently approved a new $175 million share repurchase program.

“CACI operates in a large addressable market that continues to provide ample opportunities, even in a period of spending constraints, as evidenced by our revenue growth. We are well positioned in the areas of defense, intelligence, homeland security and the transformation and modernization of government. With the federal budget in place for the remainder of the government’s fiscal year 2011, we expect funding activity to increase over the next two quarters. The expansion of our cyber security practice is producing results as demonstrated by a recent cyber-related award under the S3 contract. Given the strength of our pipeline and our focus on national security priorities in well-funded areas, we are confident in our ability to deliver another year of record results in FY11 and to further increase shareholder value in the years to come.”


Additional Financial Metrics

             
(in millions except per share data)   Q3, FY11   Q3, FY10   % Change
Earnings before interest, taxes, depreciation and amortization (EBITDA), a non-GAAP measure   $76.7   $61.5   24.8%
Diluted adjusted earnings per share, a non-GAAP measure   $1.61   $1.32   21.8%
Days sales outstanding   54   59    
     

Third Quarter Contract Funding Orders and Awards

  • Contract funding orders in the third quarter were $749 million. Contract funding orders for the first nine months of FY11 were $2.7 billion, a 7.7 percent increase over the first nine months of FY10.
  • Funded backlog at March 31st was $1.9 billion, a 3.6 percent increase over the third quarter of FY10. Total backlog at March 31st was $6.9 billion.
  • During the third quarter, we won contract awards with an estimated value of $274 million. Over 60 percent of these awards were for new business. Contract awards for the first nine months of FY11 were $2.1 billion, a 22.2 percent increase over the first nine months of FY10. This FY11 nine-month figure excludes the $450 million Department of Homeland Security TASC award announced in our second fiscal quarter, as a protest of this award was sustained in March 2011. Third quarter awards included:
    • A prime position on the U.S. Army Forces Command (FORSCOM) $2.5 billion, five-year indefinite delivery, indefinite quantity (IDIQ) Operations, Planning, Training and Resource Support Services II (OPTARSS II) contract. We will leverage our deep functional understanding of FORSCOM and its mission and continue to provide mobilization and deployment planning support for Army activities worldwide. We included $50 million in estimated value to our awards, above, attributable to our business under the original OPTARSS contract.
    • A $41 million, three-year contract under the U.S. Army IDIQ Strategic Services Sourcing (S3) contract to support information assurance and cryptographic programs for the Army’s Communications-Electronics Research, Development and Engineering Center. Our services and solutions will help the Army safeguard networks from security vulnerabilities and provide innovative mobile applications for battlefield communications. Awards during the quarter on the S3 contract vehicle with the U.S. Army totaled $50 million. The work on these awards supports the warfighter through our C4ISR Solutions and Services.
  • Not included in the above estimated value of awards are:
    • A prime position on the Federal Bureau of Investigation (FBI) $30 billion, eight-year IDIQ Information Technology Supplies and Support Services contract. This is the largest contract ever awarded by the FBI, and we will compete for task orders to provide IT services in areas such as cybersecurity, biometrics, secure communications, counterterrorism analytics, and systems operations and maintenance.
    • A prime position on the Department of Justice (DOJ) $1.1 billion, six and one-half year IDIQ Information Technology Support Services 4 contract. We will provide services that will help DOJ fulfill its mission-critical objectives through improved cybersecurity, infrastructure, transparency, and innovation.

Other Significant Highlights

  • Dan Allen was appointed as CACI’s Chief Operating Officer for U.S. Operations. In this position, Mr. Allen will provide leadership to our business groups, and continue to enhance the operational excellence that supports our growth. Mr. Allen comes to CACI from Northrop Grumman, where he served as Sector Vice President and General Manager of the company's Intelligence Systems Division, the primary division in Northrop Grumman's Information Systems Sector focusing on intelligence and cyber solutions and services.
  • During the fiscal third quarter, we repurchased 445,340 shares, at an average price of $58.68 per share, for a total cost of $26.1 million. As of April 25, 2011, we completed our June 2010 $50 million share repurchase program, repurchasing a total of 966,116 shares at an average price of $51.74 per share. This program increased value to our shareholders and offset dilution. Subsequent to the end of the third fiscal quarter, CACI’s Board of Directors approved a new $175 million share repurchase program.
  • In March, we partnered with the U.S. Naval Institute and the Center for Security Policy to co-sponsor Countering Cyber Challenges to the Industrial Base, a symposium focused on issues the nation must address to protect its industrial base from cyber and insider threats. Keynote speakers included former Ambassador John R. Bolton, former Virginia Governor James S. Gilmore, III, and former Homeland Security Advisor Frances Townsend. Panelists included Congressman Darrell Issa, Chair of the House Committee on Oversight and Government Reform.

Third Quarter Recognition

  • CACI’s Recruiting and Workforce Planning team was recognized with the top Electronic Recruiting Exchange (ERE) Recruiting Excellence Award for being the “Recruiting Department/Function of the Year.” The ERE is the world's largest online community and forum for recruiting professionals, and its annual awards are considered to be some of the most prestigious in the industry.
  • CACI and TeraThink Corporation were selected by the Department of Homeland Security (DHS) to receive the 2011 DHS Mentor-Protégé Team of the Year Award under the DHS Mentor-Protégé Program. The program honors mentor-protégé teams that have made an outstanding contribution to the mission of DHS. As mentor, CACI was honored jointly with its protégé, TeraThink, an American Indian-owned small business.

Nine Month Results

             
(in millions except per share data)   9 Months, FY11   9 Months, FY10   % Change
Revenue   $2,614.6   $2,300.4   13.7%
Operating income   $173.3   $140.8   23.1%
Net income   $98.3   $76.6   28.3%
Diluted earnings per share   $3.16   $2.51   26.1%
     

Revenue in all of our core competencies grew in the first nine months of FY11, led by increases in C4ISR Solutions and Services and Integrated Security and Intelligence Solutions. Operating income increased 23.1 percent in the first nine months of FY11, primarily as a result of solid growth in direct labor and ongoing cost control. Revenue, operating income and net income all reached record levels in the first nine months of FY11. Net cash provided by operations for the first nine months was $146.8 million.


Additional Financial Metrics

             
(in millions except per share data)  

9 Months,
FY11

 

9 Months,
FY10

 

% Change

Earnings before interest, taxes, depreciation and amortization (EBITDA), a non-GAAP measure   $215.7   $179.4   20.3%
Diluted adjusted earnings per share, a non-GAAP measure   $4.44   $3.83   16.1%
     

CACI Increases its FY11 Guidance

We are increasing our FY11 guidance as a result of our strong third quarter performance. The table below summarizes the new guidance ranges for FY11:

         
(in millions except per share data)  

Current FY11
Guidance

 

Previous FY11
Guidance

Revenue   $3,500 - $3,630   $3,500 - $3,630
Net income   $130 - $135   $127 - $132
Diluted earnings per share   $4.15 - $4.30   $4.05 - $4.20
Diluted weighted average shares   31.3   31.3
   

This guidance represents our views as of May 4, 2011. Investors are reminded that actual results may differ for the reasons described herein and in our filings with the Securities and Exchange Commission.

Conference Call Information

We have scheduled a conference call for 8:30 AM Eastern Time Thursday, May 5, 2011, during which members of our senior management team will be making a brief presentation focusing on third quarter results and operating trends followed by a question-and-answer session. You can listen to the conference call and view the accompanying exhibits over the Internet by logging on to our homepage, www.caci.com, at the scheduled time, or you may dial 877-303-9143 and enter the confirmation code 49067366. A replay of the call will also be available over the Internet beginning at 1:00 PM Eastern Time Thursday, May 5, 2011 and can be accessed through our homepage (www.caci.com) by clicking on the CACI Investor Info button.


About CACI

CACI provides professional services and IT solutions needed to prevail in the areas of defense, intelligence, homeland security, and IT modernization and government transformation. We deliver enterprise IT and network services; data, information, and knowledge management services; business system solutions; logistics and material readiness; C4ISR solutions and services; cyber solutions; integrated security and intelligence solutions; and program management and SETA support services. CACI services and solutions help our federal clients provide for national security, improve communications and collaboration, secure the integrity of information systems and networks, enhance data collection and analysis, and increase efficiency and mission effectiveness. CACI is a member of the Fortune 1000 Largest Companies and the Russell 2000 index. CACI provides dynamic careers for approximately 13,700 employees working in over 120 offices in the U.S. and internationally. Visit CACI on the web at www.caci.com and www.asymmetricthreat.net.

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 cause actual results to differ materially from anticipated results. The factors that could cause actual results to differ materially from those anticipated include, but are not limited to, the following: regional and national economic conditions in the United States and the United Kingdom, including conditions that result from prolonged weakness; terrorist activities or war; changes in interest rates; currency fluctuations; significant fluctuations in the equity markets; changes in our effective tax rate; valuation of contingent consideration in connection with business combinations; failure to achieve contract awards in connection with recompetes for present business and/or competition for new business; the risks and uncertainties associated with client interest in and purchases of new products and/or services; continued funding of U.S. government or other public sector projects, based on a change in spending patterns, or in the event of a priority need for funds, such as homeland security, the war on terrorism, or an economic stimulus package; government contract procurement (such as bid protest, small business set asides, loss of work due to organizational conflicts of interest, etc.) and termination risks; the results of government investigations into allegations of improper actions related to the provision of services in support of U.S. military operations in Iraq; the results of government audits and reviews conducted by the Defense Contract Audit Agency, the Defense Contract Management Agency, or other government entities with cognizant oversight; individual business decisions of our clients; paradigm shifts in technology; competitive factors such as pricing pressures and/or competition to hire and retain employees (particularly those with security clearances); market speculation regarding our continued independence; material changes in laws or regulations applicable to our businesses, particularly in connection with (i) government contracts for services, (ii) outsourcing of activities that have been performed by the government, and (iii) competition for task orders under Government Wide Acquisition Contracts (“GWACs”) and/or schedule contracts with the General Services Administration; the ability to successfully integrate the operations of our recent and any future acquisitions; our own ability to achieve the objectives of near term or long range business plans; and other risks described in the company’s Securities and Exchange Commission filings.

(Financial Tables follow)


           
Selected Financial Data
 
CACI International Inc
Condensed Consolidated Statements of Operations (Unaudited)
(Amounts in thousands, except per share amounts)
 
Quarter Ended Nine Months Ended
3/31/2011 3/31/2010 % Change 3/31/2011 3/31/2010 % Change
Revenue $ 913,369   $ 784,169   16.5 % $ 2,614,618   $ 2,300,414   13.7 %
Costs of revenue
Direct costs 645,404 551,191 17.1 % 1,843,410 1,604,848 14.9 %
Indirect costs and selling expenses 191,403 171,451 11.6 % 555,972 515,849 7.8 %
Depreciation and amortization   14,777     14,205   4.0 %   41,919     38,906   7.7 %
Total costs of revenue   851,584     736,847   15.6 %   2,441,301     2,159,603   13.0 %
Operating income 61,785 47,322 30.6 % 173,317 140,811 23.1 %
Interest expense and other, net   5,674     6,488   -12.5 %   17,498     20,874   -16.2 %
Income before income taxes 56,111 40,834 37.4 % 155,819 119,937 29.9 %
Income taxes   19,397     14,055   38.0 %   56,781     42,973   32.1 %

Net income before noncontrolling interest in earnings of joint venture

36,714 26,779 37.1 % 99,038 76,964 28.7 %

Noncontrolling interest in earnings of joint venture

  (287 )   (71 )   (721 )   (349 )
 
Net income attributable to CACI $ 36,427   $ 26,708   36.4 % $ 98,317   $ 76,615   28.3 %
 
Basic earnings per share $ 1.20 $ 0.89 35.5 % $ 3.24 $ 2.55 27.4 %
Diluted earnings per share $ 1.16 $ 0.87 33.5 % $ 3.16 $ 2.51 26.1 %
 
Weighted average shares used in per share computations:
Basic 30,373 30,171 30,321 30,104
Diluted 31,300 30,641 31,102 30,561
 
Statement of Operations Data (Unaudited)
Quarter Ended Nine Months Ended
3/31/2011 3/31/2010 % Change 3/31/2011 3/31/2010 % Change
Operating income margin 6.8 % 6.0 % 6.6 % 6.1 %
Tax rate 34.7 % 34.5 % 36.6 % 35.9 %
Net income margin 4.0 % 3.4 % 3.8 % 3.3 %
 
EBITDA** $ 76,709 $ 61,456 24.8 % $ 215,702 $ 179,368 20.3 %
EBITDA Margin 8.4 % 7.8 % 8.2 % 7.8 %
 
Adjusted net income** $ 50,287 $ 40,432 24.4 % $ 138,193 $ 116,992 18.1 %
Diluted adjusted earnings per share $ 1.61 $ 1.32 21.8 % $ 4.44 $ 3.83 16.1 %
 

**See Reconciliation of Net Income to Earnings before Interest, Taxes, Depreciation and Amortization and to Adjusted Net Income on page 10.

 

   
Selected Financial Data (Continued)
 
CACI International Inc

Condensed Consolidated Balance Sheets (Unaudited)

(Amounts in thousands)
 
3/31/2011 6/30/2010
ASSETS:
Current assets
Cash and cash equivalents $ 98,348 $ 254,543
Accounts receivable, net 573,112 531,033
Prepaid expenses and other current assets   55,935   55,170
Total current assets 727,395 840,746
 
Goodwill and intangible assets, net 1,383,614 1,270,159
Property and equipment, net 60,549 58,666
Other long-term assets   98,855   75,195
Total assets $ 2,270,413 $ 2,244,766
 
LIABILITIES AND SHAREHOLDERS' EQUITY:
Current liabilities
Current portion of long-term debt $ 7,500 $ 278,653
Accounts payable 101,081 98,421
Accrued compensation and benefits 166,701 152,790
Other accrued expenses and current liabilities   167,909   128,559
Total current liabilities 443,191 658,423
 
Long-term debt, net of current portion 401,435 252,451
Other long-term liabilities   165,088   160,737
Total liabilities   1,009,714   1,071,611
 
Shareholders' equity   1,260,699   1,173,155
Total liabilities and shareholders' equity $ 2,270,413 $ 2,244,766
 

   
Selected Financial Data (Continued)
 
CACI International Inc
Condensed Consolidated Statements of Cash Flows (Unaudited)
(Amounts in thousands)
 
Nine Months Ended
3/31/2011 3/31/2010
CASH FLOWS FROM OPERATING ACTIVITIES:

Net income before noncontrolling interest in earnings of joint venture

$ 99,038 $ 76,964

Reconciliation of net income to net cash provided by operating activities:

Depreciation and amortization 41,919 38,906
Non-cash interest expense 8,359 7,811
Amortization of deferred financing costs 2,274 1,819
Stock-based compensation expense 13,109 17,950
Provision (benefit) for deferred income taxes 7,805 (2,076 )
Changes in operating assets and liabilities
Accounts receivable, net (24,787 ) (41,737 )
Prepaid expenses and other assets (15,314 ) (11,517 )
Accounts payable and accrued expenses 5,615 19,672
Accrued compensation and benefits 6,392 4,888
Income taxes receivable and payable (9,079 ) (2,245 )
Other liabilities   11,508     12,512  
Net cash provided by operating activities   146,839     122,947  
 
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures (9,170 ) (20,519 )
Purchases of businesses, net of cash acquired (129,621 ) (88,059 )
Investment in unconsolidated joint venture, net (5,451 ) -
Other   749     945  
Net cash used in investing activities   (143,493 )   (107,633 )
 
CASH FLOWS FROM FINANCING ACTIVITIES:
Net payments under credit facilities (136,550 ) (52,857 )
Proceeds from employee stock purchase plans 3,264 3,658
Proceeds from exercise of stock options 18,136 5,455
Purchase of common stock (47,040 ) (2,610 )
Other   1,291     (56 )
Net cash used in financing activities   (160,899 )   (46,410 )
Effect of exchange rate changes on cash and cash equivalents   1,358     (2,645 )
Net decrease in cash and cash equivalents (156,195 ) (33,741 )
Cash and cash equivalents, beginning of period   254,543     208,488  
Cash and cash equivalents, end of period $ 98,348   $ 174,747  
 

         
Selected Financial Data (Continued)
 
Revenue by Customer Type (Unaudited)
Quarter Ended        
(dollars in thousands) 3/31/2011   3/31/2010   $Change   % Change
Department of Defense $ 735,639 80.5 % $ 611,884 78.0 % $ 123,755 20.2 %
Federal Civilian Agencies 129,349 14.2 % 130,661 16.7 % (1,312 ) -1.0 %
Commercial 44,917 4.9 % 37,867 4.8 % 7,050 18.6 %
State and Local Governments   3,464   0.4 %     3,757   0.5 %     (293 )   -7.8 %
Total $ 913,369   100.0 %   $ 784,169   100.0 %   $ 129,200     16.5 %
 
Nine Months Ended        
(dollars in thousands) 3/31/2011   3/31/2010   $Change   % Change
Department of Defense $ 2,078,870 79.5 % $ 1,786,846 77.7 % $ 292,024 16.3 %
Federal Civilian Agencies 399,251 15.3 % 393,408 17.1 % 5,843 1.5 %
Commercial 126,179 4.8 % 107,087 4.6 % 19,092 17.8 %
State and Local Governments   10,318   0.4 %     13,073   0.6 %     (2,755 )   -21.1 %
Total $ 2,614,618   100.0 %   $ 2,300,414   100.0 %   $ 314,204     13.7 %
 
Revenue by Contract Type (Unaudited)
Quarter Ended        
(dollars in thousands) 3/31/2011   3/31/2010   $Change   % Change
Time and materials $ 346,142 37.9 % $ 363,997 46.4 % $ (17,855 ) -4.9 %
Cost reimbursable 338,383 37.0 % 259,235 33.1 % 79,148 30.5 %
Fixed price   228,844   25.1 %     160,937   20.5 %     67,907     42.2 %
Total $ 913,369   100.0 %   $ 784,169   100.0 %   $ 129,200     16.5 %
 
Nine Months Ended        
(dollars in thousands) 3/31/2011   3/31/2010   $Change   % Change
Time and materials $ 1,082,635 41.4 % $ 1,083,328 47.1 % $ (693 ) -0.1 %
Cost reimbursable 889,386 34.0 % 748,240 32.5 % 141,146 18.9 %
Fixed price   642,597   24.6 %     468,846   20.4 %     173,751     37.1 %
Total $ 2,614,618   100.0 %   $ 2,300,414   100.0 %   $ 314,204     13.7 %
 
Revenue Received as a Prime versus Subcontractor (Unaudited)
Quarter Ended        
(dollars in thousands) 3/31/2011   3/31/2010   $Change   % Change
Prime $ 798,428 87.4 % $ 671,593 85.6 % $ 126,835 18.9 %
Subcontractor   114,941   12.6 %     112,576   14.4 %     2,365     2.1 %
Total $ 913,369   100.0 %   $ 784,169   100.0 %   $ 129,200     16.5 %
 
Nine Months Ended        
(dollars in thousands) 3/31/2011   3/31/2010   $Change   % Change
Prime $ 2,262,517 86.5 % $ 1,955,928 85.0 % $ 306,589 15.7 %
Subcontractor   352,101   13.5 %     344,486   15.0 %     7,615     2.2 %
Total $ 2,614,618   100.0 %   $ 2,300,414   100.0 %   $ 314,204     13.7 %
 

     
Selected Financial Data (Continued)
 
Contract Funding Orders Received (Unaudited)
Quarter Ended        
(dollars in thousands) 3/31/2011   3/31/2010   $Change   % Change
Contract Funding Orders $ 749,103   $ 886,050   $ (136,947 )   -15.5 %
Nine Months Ended        
(dollars in thousands) 3/31/2011   3/31/2010   $Change   % Change
Contract Funding Orders $ 2,721,388   $ 2,526,833   $ 194,555     7.7 %
 
           
Direct Costs by Category (Unaudited)
Quarter Ended
(dollars in thousands) 3/31/2011   3/31/2010   $Change   % Change
Direct labor $ 233,257 36.1 % $ 206,079 37.4 % $ 27,178 13.2 %
Other direct costs   412,147   63.9 %     345,112   62.6 %     67,035   19.4 %
Total direct costs $ 645,404   100.0 %   $ 551,191   100.0 %   $ 94,213   17.1 %
 
Nine Months Ended
(dollars in thousands) 3/31/2011   3/31/2010   $Change   % Change
Direct labor $ 656,149 35.6 % $ 598,883 37.3 % $ 57,266 9.6 %
Other direct costs   1,187,261   64.4 %     1,005,965   62.7 %     181,296   18.0 %
Total direct costs $ 1,843,410   100.0 %   $ 1,604,848   100.0 %   $ 238,562   14.9 %
 
 

Reconciliation of Total Revenue Growth and Organic Revenue Growth

(Unaudited)

 
We are presenting organic revenue growth to reflect the effect of acquisitions on total revenue growth. Revenue generated from the date a business is acquired through the first anniversary of that date is considered acquired revenue growth. All remaining revenue growth is considered organic. We believe that this non-GAAP financial measure provides investors with useful information to evaluate the growth rate of our core business. This non-GAAP measure should not be considered in isolation or as a substitute for performance measures prepared in accordance with GAAP.
 
           
Quarter Ended   Twelve Months Ended
(dollars in thousands) 3/31/2011   3/31/2010   % Change   3/31/2011   3/31/2010   % Change
Revenue, as reported $ 913,369 $ 784,169 16.5 % $ 3,463,335 $ 3,029,315 14.3 %
Less:
Acquired revenue   17,014             62,993        
Organic revenue $ 896,355   $ 784,169   14.3 %   $ 3,400,342   $ 3,029,315   12.2 %
 

 

Selected Financial Data (Continued)

Reconciliation of Net Income to Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) and to Adjusted Net Income

(Unaudited)

 
The Company views EBITDA, EBITDA margin, Adjusted Net Income and Diluted Adjusted Earnings Per Share as important indicators of performance, consistent with the manner in which management measures and forecasts the Company’s performance. EBITDA is a commonly used non-GAAP measure when comparing our results with those of other companies. We believe Adjusted Net Income is a significant driver of long-term value and is used by investors to measure our performance. This measure in particular assists readers in further understanding our results and trends from period-to-period by removing certain non-cash items that do not impact the cash flow performance of our business. EBITDA is defined by us as GAAP net income attributable to CACI plus net interest expense, income taxes, and depreciation and amortization. EBITDA margin is EBITDA divided by revenue. Adjusted Net Income is defined by us as GAAP net income attributable to CACI plus stock-based compensation expense, depreciation and amortization, amortization of financing costs, and non-cash interest expense net of related tax effects. Diluted Adjusted Earnings Per Share is Adjusted Net Income divided by diluted weighted-average shares, as reported. EBITDA and Adjusted Net Income as defined by us may not be computed in the same manner as similarly titled measures used by other companies. These non-GAAP measures should not be considered in isolation or as a substitute for performance measures prepared in accordance with GAAP.
 
           
Quarter Ended   Nine Months Ended
(dollars in thousands) 3/31/2011   3/31/2010   % Change   3/31/2011   3/31/2010   % Change
Net income attributable to CACI $ 36,427 $ 26,708 36.4 % $ 98,317 $ 76,615 28.3 %
Plus:
Income taxes 19,397 14,055 38.0 % 56,781 42,973 32.1 %
Interest income and expense, net 6,108 6,488 -5.9 % 18,685 20,874 -10.5 %
Depreciation and amortization   14,777       14,205     4.0 %     41,919       38,906     7.7 %
EBITDA $ 76,709     $ 61,456     24.8 %   $ 215,702     $ 179,368     20.3 %
 
Quarter Ended   Nine Months Ended
(dollars in thousands) 3/31/2011   3/31/2010   % Change   3/31/2011   3/31/2010   % Change
Revenue, as reported $ 913,369 $ 784,169 16.5 % $ 2,614,618 $ 2,300,414 13.7 %
EBITDA $ 76,709     $ 61,456     24.8 %   $ 215,702     $ 179,368     20.3 %
EBITDA margin   8.4 %     7.8 %         8.2 %     7.8 %    
 
Quarter Ended   Nine Months Ended
(dollars in thousands) 3/31/2011   3/31/2010   % Change   3/31/2011   3/31/2010   % Change
Net income attributable to CACI $ 36,427 $ 26,708 36.4 % $ 98,317 $ 76,615 28.3 %
Plus:
Stock-based compensation 4,696 5,205 -9.8 % 13,109 17,950 -27.0 %
Depreciation and amortization 14,777 14,205 4.0 % 41,919 38,906 7.7 %
Amortization of financing costs 512 537 -4.7 % 2,274 1,819 25.0 %
Non-cash interest expense 2,837 2,651 7.0 % 8,359 7,811 7.0 %
Less:
Related tax effect   (8,962 )     (8,874 )   1.0 %     (25,785 )     (26,109 )   -1.2 %
Adjusted net income $ 50,287     $ 40,432     24.4 %   $ 138,193     $ 116,992     18.1 %
 
Quarter Ended   Nine Months Ended
(shares in thousands) 3/31/2011   3/31/2010   % Change   3/31/2011   3/31/2010   % Change

Diluted weighted average shares, as reported

31,300 30,641 31,102 30,561
Diluted earnings per share $ 1.16     $ 0.87     33.5 %   $ 3.16     $ 2.51     26.1 %
Diluted adjusted earnings per share $ 1.61     $ 1.32     21.8 %   $ 4.44     $ 3.83     16.1 %
 

CACI-Financial

CONTACT:
CACI International Inc
Corporate Communications and Media:
Jody Brown, Executive Vice President, Public Relations
703-841-7801
jbrown@caci.com
or
Investor Relations:
David Dragics, Senior Vice President, Investor Relations
866-606-3471
ddragics@caci.com