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| 8-K - CACI INTERNATIONAL INC 8-K - CACI INTERNATIONAL INC /DE/ | a50793148.htm |
Exhibit 99
CACI Reports Results for Its Fiscal 2014 Second Quarter and Updates Fiscal Year 2014 Guidance
Revenue of $894.2 million
Net income of $35.0 million
Diluted earnings per share of $1.38
Contract awards of $717 million
Net income increases excluding the impact of the acquisition
ARLINGTON, Va.--(BUSINESS WIRE)--January 29, 2014--CACI International Inc (NYSE: CACI), a leading information solutions and services provider to the federal government, announced results today for its second fiscal quarter ended December 31, 2013.
CEO Commentary and Outlook
Ken Asbury, CACI’s President and CEO, said, “Our results reflect solid execution of our strategy during a difficult period for our customers and our industry. During the quarter, we secured significant contract awards, received solid contract funding, and grew CACI net income by 8 percent, excluding Six3 Systems. We completed the acquisition of Six3 Systems, Inc., which positions CACI as a leader in advanced intelligence and cyber security offerings to our national security customers. Six3 brings a unique set of signals intelligence and cyber capabilities that are increasingly essential to protecting our country against growing international threats.
“We remain focused on those factors that we control, which contribute to profitability and build and deliver future shareholder value: winning new business, delivering consistent value to our customers, and using our capital to make investments that improve our future performance.”
Second Quarter Results
| (in millions except per-share data) | Q2, FY14 | Q2, FY13 | % Change | ||||||
| Revenue | $894.2 | $931.6 | -4.0% | ||||||
| Operating income | $66.5 | $69.6 | -4.5% | ||||||
| Net income attributable to CACI | $35.0 | $39.7 | -11.9% | ||||||
| Diluted earnings per share | $1.38 | $1.69 | -18.0% | ||||||
Revenue for the second quarter of Fiscal Year 2014 (FY14) decreased 4.0 percent compared to the second fiscal quarter of Fiscal Year 2013 (FY13). The decrease in revenue in the second quarter was driven primarily by federal government budget-related activities and the 16-day government shutdown in October. The decrease in operating income in the quarter was due primarily to $9.7 million of one-time acquisition-related expenses for Six3 Systems (Six3). Interest expense increased in the quarter as a result of $2.6 million of interest incurred on the additional debt associated with the acquisition of Six3. Net income attributable to CACI in the second quarter was $35.0 million, or $1.38 diluted earnings per share. The greater decrease in diluted earnings per share as compared to the decrease in net income is due to the dilutive effect of our convertible notes which mature in May 2014. Net cash provided by operations in the quarter was $17.3 million.
From the date of acquisition through December 31, 2013, Six3 generated $48.9 million of revenue and $0.1 million of net income. Six3’s net income includes $2.8 million of acquisition-related intangible amortization and $0.8 million of retention bonus related expenses.
Additional Financial Metrics
| Q2, FY14 | Q2, FY13 | % Change | |||||||
| Earnings before interest, taxes, depreciation and amortization (EBITDA), a non-GAAP measure (in millions) | $83.2 | $83.5 | -0.3% | ||||||
| Diluted adjusted earnings per share, a non-GAAP measure | $2.05 | $2.22 | -7.6% | ||||||
| Days sales outstanding | 67 | 59 | |||||||
Days sales outstanding increased primarily as a result of the move by the government to pay at terms.
Second Quarter Awards and Contract Funding
Our contract awards were $717 million in the quarter, 39.8 percent higher than the $512 million of the year earlier period, and we received awards in all ten of our markets. Approximately 25 percent of our awards in the quarter were new business while over 60 percent were recompete wins. Some of our new business and recompete contract awards during the quarter included:
- Approximately $300 million in new and recompete task order awards under the Department of Justice Mega 4 contract. This work reinforces our continued strong presence in our Investigation and Litigation Support market area.
- A $28 million, five-year award to provide software and systems engineering support for the U.S. Transportation Command’s Defense Personal Property System. This new work expands our presence in the Business Systems Solutions market area.
Contract funding orders in the second quarter were $599 million. Our total backlog at December 31, 2013 was $7.6 billion. Funded backlog at December 31, 2013 was $1.8 billion. Backlog does not incorporate any contribution from Six3 as we have yet to complete our analysis as part of the integration of their operations into CACI.
We added to our inventory of indefinite delivery, indefinite quantity (IDIQ) contract vehicles during the quarter. IDIQ contract vehicles support our growth plans across our ten markets and provide us the flexibility to deliver on our customers’ mission-critical requirements. During the quarter we received the following IDIQ award:
- An $899 million, five-year multiple award to support Transport and Computing Infrastructure (TCI) for the Space and Naval Warfare (SPAWAR) Atlantic Business Portfolio. This new work is the fifth “Pillar” contract that we have been awarded, and provides full system lifecycle support for mission areas within the TCI portfolio for SPAWAR Systems Center Atlantic. It expands our business in the Enterprise IT market area.
Second Quarter Highlights
- On November 15, 2013, we closed on our acquisition of Six3 Systems. The largest acquisition in CACI’s history, Six3 brings approximately 1,600 new employees. Six3 adds distinctive cyberspace, C4ISR, and intelligence capabilities to our solutions and services, deepens our current customer base, and brings us new customers. Six3 positions us as a leader in mission-critical national and tactical intelligence, as well as operations and intelligence fusion.
- Dr. J.P. (Jack) London, CACI Executive Chairman and Chairman of the Board, was honored with the Admiral of the Navy George Dewey Award from the Naval Order of the United States. The award recognizes Dr. London’s unique achievements in continually advancing the interests of the U.S. and the U.S. Navy. This includes both his personal accomplishments as well as leading CACI’s support for Navy missions ranging from developing better logistics processes in the 1970s to delivering innovative solutions for some of the Navy’s most complex information technology and intelligence, surveillance and reconnaissance challenges today.
- CACI placed 20th in The Washington Post’s annual ranking of the top 200 public companies in the Washington, D.C. metropolitan area. This ranking reflects our continuing status as an industry leader and formidable competitor among federal government contractors.
-
Our recruiting team continued to be recognized for our technical
innovation and support for military hiring.
- CACI received the Optimas Award from Workforce Magazine, a multimedia publication dedicated to human resources, for mobile recruiting technology that has improved our recruiting intelligence and analytics and introduced cost-savings.
- We ranked 22nd among the top 100 military-friendly employees in GI Jobs magazine, the premier publication for military transitioning to civilian employment, in honor of our outstanding support for hiring military veterans and Guard/Reserve members.
- We received the Veteran Hiring “Continue the Commitment” Award from the Coalition for Government Procurement, a national trade association focused on federal acquisition, for our leadership in providing military-friendly recruitment opportunities and support programs.
Six Months Results
| (in millions except per-share data) |
Six Months, FY14 |
Six Months, FY13 |
% Change | ||||||
| Revenue | $1,758.5 | $1,862.9 | -5.6% | ||||||
| Operating income | $127.6 | $134.3 | -5.0% | ||||||
| Net income attributable to CACI | $68.0 | $75.4 | -9.9% | ||||||
| Diluted earnings per share | $2.71 | $3.17 | -14.6% | ||||||
Revenue decreased 5.6 percent compared to revenue for the first half of FY13 due to the expected reduction in material purchases and subcontract labor resulting from the drawdown in Southwest Asia, federal government budget-related activities, and the government shutdown in October. The decrease in operating income in the first half of FY14 was due primarily to $11.4 million of one-time acquisition-related expenses for Six3. Net income attributable to CACI in the first half of FY14 was $68.0 million, or $2.71 diluted earnings per share. The greater decrease in diluted earnings per share as compared to the decrease in net income was due to the dilutive effect of our convertible notes which mature in May 2014. Net cash provided by operations in the first half of FY14 was $44.6 million.
Additional Financial Metrics
|
Six Months, FY14 |
Six Months, FY13 |
% Change | |||||||
| Earnings before interest, taxes, depreciation and amortization (EBITDA), a non-GAAP measure (in millions) | $157.4 | $161.6 | -2.6% | ||||||
| Diluted adjusted earnings per share, a non-GAAP measure | $3.85 | $4.19 | -8.1% | ||||||
CACI Updates Its FY14 Guidance
We are updating the FY14 guidance we issued on October 29, 2013 to include the effects of the acquisition of Six3 Systems, including one-time transaction expenses. The table below summarizes our FY14 guidance ranges and represents our views as of January 29, 2014:
|
(In millions except for earnings per share) |
Current Fiscal Year 2014 Guidance |
Previous Fiscal Year 2014 Guidance |
||||
| Revenue | $3,650 - $3,800 | $3,500 - $3,700 | ||||
| Net income attributable to CACI | $142 - $152 | $142 - $152 | ||||
| Effective corporate tax rate | 39% | 39% | ||||
| Diluted earnings per share | $5.59 - $5.98 | $5.70 - $6.10 | ||||
| Diluted weighted average shares | 25.4 | 24.9 | ||||
Following are the key factors related to our updated FY14 guidance:
- We expect that the acquisition of Six3 will generate $275 million to $325 million in revenue in FY14.
- We expect that our direct labor costs will now be 3 percent to 6 percent higher when compared with FY13. Other direct costs will now be 1 percent to 4 percent lower when compared with FY13.
- We expect that our indirect costs and selling expenses will now be 1 percent to 3 percent higher when compared with FY13.
- Depreciation and intangible amortization is now expected to be approximately $66 million.
- Net interest expense is now expected to be approximately $38 million.
- We expect that our diluted share count will now be 25.4 million shares, based on a $78 share price.
Conference Call Information
We have scheduled a conference call for 8:30 AM Eastern Time Thursday, January 30, 2014 during which members of our senior management team will be making a brief presentation focusing on second 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 24522551. A replay of the call will also be available over the Internet beginning at 1:00 PM Eastern Time Thursday, January 30, 2014 and can be accessed through our homepage (www.caci.com) by clicking on the CACI Investor Info button.
CACI provides information solutions and services in support of national security missions and government transformation for Intelligence, Defense, and Federal Civilian customers. A member of the Fortune 1000 Largest Companies, the Russell 2000 Index, and the S&P SmallCap 600 Index, CACI provides dynamic careers for over 15,800 employees in 120 offices worldwide. Visit www.caci.com.
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: the successful integration of our acquisition of Six3 Systems, actual revenue and earnings realized by Six3 Systems, and the performance of the Six3 Systems business; regional and national economic conditions in the United States and globally (including the impact of uncertainty regarding U.S. debt limits and actions taken related thereto); terrorist activities or war; changes in interest rates; currency fluctuations; significant fluctuations in the equity markets; changes in our effective tax rate; failure to achieve contract awards in connection with re-competes 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, implementation of spending cuts (sequestration) under the Budget Control Act of 2011 and the Bipartisan Budget Act of 2013; changes in budgetary priorities or in the event of a priority need for funds, such as homeland security; 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 audits and reviews conducted by the Defense Contract Audit Agency, the Defense Contract Management Agency, or other governmental 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 our Securities and Exchange Commission filings.
CACI-Financial
| Selected Financial Data | ||||||||||||||||||||||||||||
| CACI International Inc | ||||||||||||||||||||||||||||
| Condensed Consolidated Statements of Operations (Unaudited) | ||||||||||||||||||||||||||||
| (Amounts in thousands, except per share amounts) | ||||||||||||||||||||||||||||
| Quarter Ended | Six Months Ended | |||||||||||||||||||||||||||
| 12/31/2013 | 12/31/2012 | % Change | 12/31/2013 | 12/31/2012 | % Change | |||||||||||||||||||||||
| Revenue | $ | 894,186 | $ | 931,627 | -4.0 | % | $ | 1,758,451 | $ | 1,862,863 | -5.6 | % | ||||||||||||||||
| Costs of revenue | ||||||||||||||||||||||||||||
| Direct costs | 606,672 | 639,649 | -5.2 | % | 1,208,094 | 1,285,286 | -6.0 | % | ||||||||||||||||||||
| Indirect costs and selling expenses | 204,830 | 209,068 | -2.0 | % | 393,540 | 416,691 | -5.6 | % | ||||||||||||||||||||
| Depreciation and amortization | 16,230 | 13,328 | 21.8 | % | 29,181 | 26,567 | 9.8 | % | ||||||||||||||||||||
| Total costs of revenue | 827,732 | 862,045 | -4.0 | % | 1,630,815 | 1,728,544 | -5.7 | % | ||||||||||||||||||||
| Operating income | 66,454 | 69,582 | -4.5 | % | 127,636 | 134,319 | -5.0 | % | ||||||||||||||||||||
| Interest expense and other, net | 9,456 | 6,231 | 51.8 | % | 16,844 | 13,013 | 29.4 | % | ||||||||||||||||||||
| Income before income taxes | 56,998 | 63,351 | -10.0 | % | 110,792 | 121,306 | -8.7 | % | ||||||||||||||||||||
| Income taxes | 22,088 | 23,371 | -5.5 | % | 42,490 | 45,336 | -6.3 | % | ||||||||||||||||||||
|
Net income including portion attributable to noncontrolling interest in earnings of joint venture |
34,910 | 39,980 | -12.7 | % | 68,302 | 75,970 | -10.1 | % | ||||||||||||||||||||
|
Noncontrolling interest in earnings of joint venture |
52 | (304 | ) | (348 | ) | (586 | ) | |||||||||||||||||||||
| Net income attributable to CACI | $ | 34,962 | $ | 39,676 | -11.9 | % | $ | 67,954 | $ | 75,384 | -9.9 | % | ||||||||||||||||
| Basic earnings per share | $ | 1.49 | $ | 1.74 | -14.1 | % | $ | 2.91 | $ | 3.29 | -11.5 | % | ||||||||||||||||
| Diluted earnings per share | $ | 1.38 | $ | 1.69 | -18.0 | % | $ | 2.71 | $ | 3.17 | -14.6 | % | ||||||||||||||||
| Weighted average shares used in per share computations: | ||||||||||||||||||||||||||||
| Basic | 23,433 | 22,852 | 23,374 | 22,942 | ||||||||||||||||||||||||
| Diluted | 25,297 | 23,537 | 25,066 | 23,758 | ||||||||||||||||||||||||
| Statement of Operations Data (Unaudited) | ||||||||||||||||||||||||||||
| Quarter Ended | Six Months Ended | |||||||||||||||||||||||||||
| 12/31/2013 | 12/31/2012 | % Change | 12/31/2013 | 12/31/2012 | % Change | |||||||||||||||||||||||
| Operating income margin | 7.4 | % | 7.5 | % | 7.3 | % | 7.2 | % | ||||||||||||||||||||
| Tax rate | 38.7 | % | 37.1 | % | 38.5 | % | 37.6 | % | ||||||||||||||||||||
| Net income margin | 3.9 | % | 4.3 | % | 3.9 | % | 4.0 | % | ||||||||||||||||||||
| EBITDA* | $ | 83,248 | $ | 83,499 | -0.3 | % | $ | 157,401 | $ | 161,619 | -2.6 | % | ||||||||||||||||
| EBITDA Margin | 9.3 | % | 9.0 | % | 9.0 | % | 8.7 | % | ||||||||||||||||||||
|
Adjusted net income* |
$ | 51,770 | $ | 52,145 | -0.7 | % | $ | 96,485 | $ | 99,558 | -3.1 | % | ||||||||||||||||
| Diluted adjusted earnings per share | $ | 2.05 | $ | 2.22 | -7.6 | % | $ | 3.85 | $ | 4.19 | -8.1 | % | ||||||||||||||||
|
*See Reconciliation of Net Income to Earnings before Interest, Taxes, Depreciation and Amortization and to Adjusted Net Income on page 11. |
||||||||||||||||||||||||||||
| Selected Financial Data (Continued) | ||||||||
| CACI International Inc | ||||||||
| Condensed Consolidated Balance Sheets (Unaudited) | ||||||||
| (Amounts in thousands) | ||||||||
| 12/31/2013 | 6/30/2013 | |||||||
| ASSETS: | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 98,173 | $ | 64,337 | ||||
| Accounts receivable, net | 711,012 | 614,616 | ||||||
| Prepaid expenses and other current assets | 62,407 | 44,828 | ||||||
| Total current assets | 871,592 | 723,781 | ||||||
| Goodwill and intangible assets, net | 2,438,629 | 1,581,153 | ||||||
| Property and equipment, net | 70,181 | 65,510 | ||||||
| Other long-term assets | 138,957 | 126,627 | ||||||
| Total assets | $ | 3,519,359 | $ | 2,497,071 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY: | ||||||||
| Current liabilities | ||||||||
| Current portion of long-term debt | $ | 41,562 | $ | 295,517 | ||||
| Accounts payable | 112,485 | 133,073 | ||||||
| Accrued compensation and benefits | 181,603 | 166,538 | ||||||
| Other accrued expenses and current liabilities | 158,998 | 147,366 | ||||||
| Total current liabilities | 494,648 | 742,494 | ||||||
| Long-term debt, net of current portion | 1,409,006 | 300,790 | ||||||
| Other long-term liabilities | 329,539 | 246,215 | ||||||
| Total liabilities | 2,233,193 | 1,289,499 | ||||||
| Shareholders' equity | 1,286,166 | 1,207,572 | ||||||
| Total liabilities and shareholders' equity | $ | 3,519,359 | $ | 2,497,071 | ||||
| Selected Financial Data (Continued) | ||||||||||
| CACI International Inc | ||||||||||
| Condensed Consolidated Statements of Cash Flows (Unaudited) | ||||||||||
| (Amounts in thousands) | ||||||||||
| Six Months Ended | ||||||||||
| 12/31/2013 | 12/31/2012 | |||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||
|
Net income including portion attributable to noncontrolling interest in earnings of joint venture |
$ | 68,302 | $ | 75,970 | ||||||
|
Reconciliation of net income to net cash provided by operating activities: |
||||||||||
| Depreciation and amortization | 29,181 | 26,567 | ||||||||
| Non-cash interest expense | 6,769 | 6,325 | ||||||||
| Amortization of deferred financing costs | 5,245 | 1,012 | ||||||||
| Stock-based compensation expense | 5,785 | 5,901 | ||||||||
| Provision for deferred income taxes | 14,957 | 9,866 | ||||||||
| Distribution of earnings from unconsolidated joint venture | - | 3,545 | ||||||||
| Equity in earnings of unconsolidated joint ventures | (947 | ) | (1,319 | ) | ||||||
| Changes in operating assets and liabilities, net of effect of business acquisitions | ||||||||||
| Accounts receivable, net | (6,178 | ) | 39,114 | |||||||
| Prepaid expenses and other assets | (6,504 | ) | (14,749 | ) | ||||||
| Accounts payable and accrued expenses | (49,913 | ) | (26,794 | ) | ||||||
| Accrued compensation and benefits | (21,816 | ) | (27,730 | ) | ||||||
| Income taxes receivable and payable | (4,545 | ) | (13,940 | ) | ||||||
| Other liabilities | 4,241 | 12,267 | ||||||||
| Net cash provided by operating activities | 44,577 | 96,035 | ||||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||
| Capital expenditures | (7,143 | ) | (10,032 | ) | ||||||
| Purchases of businesses, net of cash acquired | (835,684 | ) | (100,062 | ) | ||||||
| Investment in unconsolidated joint venture | - | (1,421 | ) | |||||||
| Other | (893 | ) | (1,012 | ) | ||||||
| Net cash used in investing activities | (843,720 | ) | (112,527 | ) | ||||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||
| Net proceeds under credit facilities | 836,778 | 160,638 | ||||||||
| Proceeds from employee stock purchase plans | 1,849 | 2,495 | ||||||||
| Proceeds from exercise of stock options | - | 4,742 | ||||||||
| Repurchases of common stock | (1,884 | ) | (125,411 | ) | ||||||
| Payment of taxes for equity transactions | (7,936 | ) | (4,489 | ) | ||||||
| Other | 3,026 | (120 | ) | |||||||
| Net cash provided by financing activities | 831,833 | 37,855 | ||||||||
| Effect of exchange rate changes on cash and cash equivalents | 1,146 | 406 | ||||||||
| Net increase in cash and cash equivalents | 33,836 | 21,769 | ||||||||
| Cash and cash equivalents, beginning of period | 64,337 | 15,740 | ||||||||
| Cash and cash equivalents, end of period | $ | 98,173 | $ | 37,509 | ||||||
| Selected Financial Data (Continued) | |||||||||||||||||||||||||
| Revenue by Customer Type (Unaudited) | |||||||||||||||||||||||||
| Quarter Ended | |||||||||||||||||||||||||
| (dollars in thousands) | 12/31/2013 | 12/31/2012 |
$ Change |
% Change | |||||||||||||||||||||
| Department of Defense | $ | 650,303 | 72.7 | % | $ | 703,479 | 75.5 | % | $ | (53,176 | ) | -7.6 | % | ||||||||||||
| Federal Civilian Agencies | 186,875 | 20.9 | % | 175,773 | 18.9 | % | 11,102 | 6.3 | % | ||||||||||||||||
| Commercial and other | 57,008 | 6.4 | % | 52,375 | 5.6 | % | 4,633 | 8.8 | % | ||||||||||||||||
| Total | $ | 894,186 | 100.0 | % | $ | 931,627 | 100.0 | % | $ | (37,441 | ) | -4.0 | % | ||||||||||||
| Six Months Ended | |||||||||||||||||||||||||
| (dollars in thousands) | 12/31/2013 | 12/31/2012 |
$ Change |
% Change | |||||||||||||||||||||
| Department of Defense | $ | 1,267,952 | 72.1 | % | $ | 1,408,540 | 75.6 | % | $ | (140,588 | ) | -10.0 | % | ||||||||||||
| Federal Civilian Agencies | 383,028 | 21.8 | % | 350,427 | 18.8 | % | 32,601 | 9.3 | % | ||||||||||||||||
| Commercial and other | 107,471 | 6.1 | % | 103,896 | 5.6 | % | 3,575 | 3.4 | % | ||||||||||||||||
| Total | $ | 1,758,451 | 100.0 | % | $ | 1,862,863 | 100.0 | % | $ | (104,412 | ) | -5.6 | % | ||||||||||||
| Revenue by Contract Type (Unaudited) | |||||||||||||||||||||||||
| Quarter Ended | |||||||||||||||||||||||||
| (dollars in thousands) | 12/31/2013 | 12/31/2012 |
$ Change |
% Change | |||||||||||||||||||||
| Cost reimbursable | $ | 443,125 | 49.5 | % | $ | 454,564 | 48.8 | % | $ | (11,439 | ) | -2.5 | % | ||||||||||||
| Fixed price | 274,273 | 30.7 | % | 259,505 | 27.9 | % | 14,768 | 5.7 | % | ||||||||||||||||
| Time and materials | 176,788 | 19.8 | % | 217,558 | 23.3 | % | (40,770 | ) | -18.7 | % | |||||||||||||||
| Total | $ | 894,186 | 100.0 | % | $ | 931,627 | 100.0 | % | $ | (37,441 | ) | -4.0 | % | ||||||||||||
| Six Months Ended | |||||||||||||||||||||||||
| (dollars in thousands) | 12/31/2013 | 12/31/2012 |
$ Change |
% Change | |||||||||||||||||||||
| Cost reimbursable | $ | 864,135 | 49.1 | % | $ | 891,371 | 47.8 | % | $ | (27,236 | ) | -3.1 | % | ||||||||||||
| Fixed price | 536,728 | 30.5 | % | 523,442 | 28.1 | % | 13,286 | 2.5 | % | ||||||||||||||||
| Time and materials | 357,588 | 20.4 | % | 448,050 | 24.1 | % | (90,462 | ) | -20.2 | % | |||||||||||||||
| Total | $ | 1,758,451 | 100.0 | % | $ | 1,862,863 | 100.0 | % | $ | (104,412 | ) | -5.6 | % | ||||||||||||
| Revenue Received as a Prime versus Subcontractor (Unaudited) | |||||||||||||||||||||||||
| Quarter Ended | |||||||||||||||||||||||||
| (dollars in thousands) | 12/31/2013 | 12/31/2012 |
$ Change |
% Change | |||||||||||||||||||||
| Prime | $ | 805,235 | 90.1 | % | $ | 815,668 | 87.6 | % | $ | (10,433 | ) | -1.3 | % | ||||||||||||
| Subcontractor | 88,951 | 9.9 | % | 115,959 | 12.4 | % | (27,008 | ) | -23.3 | % | |||||||||||||||
| Total | $ | 894,186 | 100.0 | % | $ | 931,627 | 100.0 | % | $ | (37,441 | ) | -4.0 | % | ||||||||||||
| Six Months Ended | |||||||||||||||||||||||||
| (dollars in thousands) | 12/31/2013 | 12/31/2012 |
$ Change |
% Change | |||||||||||||||||||||
| Prime | $ | 1,577,994 | 89.7 | % | $ | 1,639,399 | 88.0 | % | $ | (61,405 | ) | -3.7 | % | ||||||||||||
| Subcontractor | 180,457 | 10.3 | % | 223,464 | 12.0 | % | (43,007 | ) | -19.2 | % | |||||||||||||||
| Total | $ | 1,758,451 | 100.0 | % | $ | 1,862,863 | 100.0 | % | $ | (104,412 | ) | -5.6 | % | ||||||||||||
| Selected Financial Data (Continued) | |||||||||||||||||
| Contract Funding Orders Received (Unaudited) | |||||||||||||||||
| Quarter Ended | |||||||||||||||||
| (dollars in thousands) | 12/31/2013 | 12/31/2012 |
$ Change |
% Change | |||||||||||||
| Contract Funding Orders | $ | 598,748 | $ | 625,481 | $ | (26,733 | ) | -4.3 | % | ||||||||
| Six Months Ended | |||||||||||||||||
| (dollars in thousands) | 12/31/2013 | 12/31/2012 |
$ Change |
% Change | |||||||||||||
| Contract Funding Orders | $ | 1,909,320 | $ | 2,038,727 | $ | (129,407 | ) | -6.3 | % | ||||||||
| Direct Costs by Category (Unaudited) | |||||||||||||||||||||||||
| Quarter Ended | |||||||||||||||||||||||||
| (dollars in thousands) | 12/31/2013 | 12/31/2012 |
$ Change |
% Change | |||||||||||||||||||||
| Direct labor | $ | 244,907 | 40.4 | % | $ | 249,012 | 38.9 | % | $ | (4,105 | ) | -1.6 | % | ||||||||||||
| Other direct costs | 361,765 | 59.6 | % | 390,637 | 61.1 | % | (28,872 | ) | -7.4 | % | |||||||||||||||
| Total direct costs | $ | 606,672 | 100.0 | % | $ | 639,649 | 100.0 | % | $ | (32,977 | ) | -5.2 | % | ||||||||||||
| Six Months Ended | |||||||||||||||||||||||||
| (dollars in thousands) | 12/31/2013 | 12/31/2012 |
$ Change |
% Change | |||||||||||||||||||||
| Direct labor | $ | 493,681 | 40.9 | % | $ | 501,054 | 39.0 | % | $ | (7,373 | ) | -1.5 | % | ||||||||||||
| Other direct costs | 714,413 | 59.1 | % | 784,232 | 61.0 | % | (69,819 | ) | -8.9 | % | |||||||||||||||
| Total direct costs | $ | 1,208,094 | 100.0 | % | $ | 1,285,286 | 100.0 | % | $ | (77,192 | ) | -6.0 | % | ||||||||||||
| 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 | Six Months Ended | |||||||||||||||||||||||||||
| (dollars in thousands) | 12/31/2013 | 12/31/2012 | % Change | 12/31/2013 | 12/31/2012 | % Change | ||||||||||||||||||||||
| Net income attributable to CACI | $ | 34,962 | $ | 39,676 | -11.9 | % | $ | 67,954 | $ | 75,384 | -9.9 | % | ||||||||||||||||
| Plus: | ||||||||||||||||||||||||||||
| Income taxes | 22,088 | 23,371 | -5.5 | % | 42,490 | 45,336 | -6.3 | % | ||||||||||||||||||||
| Interest income and expense, net | 9,968 | 7,124 | 39.9 | % | 17,776 | 14,332 | 24.0 | % | ||||||||||||||||||||
| Depreciation and amortization | 16,230 | 13,328 | 21.8 | % | 29,181 | 26,567 | 9.8 | % | ||||||||||||||||||||
| EBITDA | $ | 83,248 | $ | 83,499 | -0.3 | % | $ | 157,401 | $ | 161,619 | -2.6 | % | ||||||||||||||||
| Quarter Ended | Six Months Ended | |||||||||||||||||||||||||||
| (dollars in thousands) | 12/31/2013 | 12/31/2012 | % Change | 12/31/2013 | 12/31/2012 | % Change | ||||||||||||||||||||||
| Revenue, as reported | $ | 894,186 | $ | 931,627 | -4.0 | % | $ | 1,758,451 | $ | 1,862,863 | -5.6 | % | ||||||||||||||||
| EBITDA | $ | 83,248 | $ | 83,499 | -0.3 | % | $ | 157,401 | $ | 161,619 | -2.6 | % | ||||||||||||||||
| EBITDA margin | 9.3 | % | 9.0 | % | 9.0 | % | 8.7 | % | ||||||||||||||||||||
| Quarter Ended | Six Months Ended | |||||||||||||||||||||||||||
| (dollars in thousands) | 12/31/2013 | 12/31/2012 | % Change | 12/31/2013 | 12/31/2012 | % Change | ||||||||||||||||||||||
| Net income attributable to CACI | $ | 34,962 | $ | 39,676 | -11.9 | % | $ | 67,954 | $ | 75,384 | -9.9 | % | ||||||||||||||||
| Plus: | ||||||||||||||||||||||||||||
| Stock-based compensation | 3,301 | 3,501 | -5.7 | % | 5,785 | 5,901 | -2.0 | % | ||||||||||||||||||||
| Depreciation and amortization | 16,230 | 13,328 | 21.8 | % | 29,181 | 26,567 | 9.8 | % | ||||||||||||||||||||
| Amortization of financing costs | 4,736 | 518 | 814.3 | % | 5,245 | 1,012 | 418.3 | % | ||||||||||||||||||||
| Non-cash interest expense | 3,409 | 3,185 | 7.0 | % | 6,769 | 6,325 | 7.0 | % | ||||||||||||||||||||
| Less: | ||||||||||||||||||||||||||||
| Related tax effect | (10,868 | ) | (8,063 | ) | 34.8 | % | (18,449 | ) | (15,631 | ) | 18.0 | % | ||||||||||||||||
| Adjusted net income | $ | 51,770 | $ | 52,145 | -0.7 | % | $ | 96,485 | $ | 99,558 | -3.1 | % | ||||||||||||||||
| Quarter Ended | Six Months Ended | |||||||||||||||||||||||||||
| (shares in thousands) | 12/31/2013 | 12/31/2012 | % Change | 12/31/2013 | 12/31/2012 | % Change | ||||||||||||||||||||||
|
Diluted weighted average shares, as reported |
25,297 | 23,537 | 25,066 | 23,758 | ||||||||||||||||||||||||
| Diluted earnings per share | $ | 1.38 | $ | 1.69 | -18.0 | % | $ | 2.71 | $ | 3.17 | -14.6 | % | ||||||||||||||||
| Diluted adjusted earnings per share | $ | 2.05 | $ | 2.22 | -7.6 | % | $ | 3.85 | $ | 4.19 | -8.1 | % | ||||||||||||||||
| Selected Financial Data (Continued) |
| Reconciliation of Net Income Growth to Adjusted Net Income Growth |
| (Unaudited) |
|
On November 15, 2013, the Company completed its acquisition of Six3 Systems. In connection with the acquisition, the Company began including Six3 Systems' results as of November 15, 2013 and incurred certain associated expenses that negatively impacted its net income for the quarter ended December 31, 2013. The Company believes that it is valuable to provide information on CACI's results excluding the results of Six3 Systems as well as the incremental expenses incurred in connection with the acquisition. This measure will assist readers in further understanding our results and trends from period-to-period. This non-GAAP measure should not be considered in isolation or as a substitute for performance measures prepared in accordance with GAAP. |
| Quarter Ended | |||||||||||||
| (dollars in thousands) | 12/31/2013 | 12/31/2012 | % Change | ||||||||||
| Net income attributable to CACI | $ | 34,962 | $ | 39,676 | -11.9 | % | |||||||
| Six3 Systems net income before tax | (127 | ) | |||||||||||
| CACI transaction costs | 9,734 | ||||||||||||
| Incremental interest expense | 2,591 | ||||||||||||
| Related tax effect | (4,233 | ) | |||||||||||
| Net income attributable to CACI, excluding Six3 Systems | $ | 42,927 | $ | 39,676 | 8.2 | % | |||||||
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