Revenue of $900.4 million
Net income of $30.8 million
Diluted earnings per share of $1.19
Contract funding orders of $794 million
Contract awards of $700 million
Operating cash flow of $101.7 million
ARLINGTON, Va.--(BUSINESS WIRE)--
CACI International Inc (NYSE: CACI), a leading information solutions and
services provider to the federal government, announced results today for
its third fiscal quarter ended March 31, 2014.
CEO Commentary and Outlook
Ken Asbury, CACI’s President and CEO said, “Our third quarter results
are in line with our expectations, and we are reiterating our guidance
for the remainder of this fiscal year. We generated strong cash flow,
secured a significant number of contract awards in a very competitive
market, and delivered excellent performance for our customers. We are
also pleased with our progress integrating Six3 Systems into CACI. We
remain focused on strengthening the aspects of our business we control
and believe our market-driven strategy and strong operational excellence
will enhance our competitive position and deliver long-term shareholder
value.”
Third Quarter Results
|
|
|
|
|
|
|
|
|
|
|
|
(in millions except per-share data)
|
|
|
Q3, FY14
|
|
|
Q3, FY13
|
|
|
% Change
|
|
Revenue
|
|
| $900.4 |
|
| $906.2 |
|
|
-0.6%
|
|
Operating income
|
|
| $60.5 |
|
| $68.6 |
|
|
-11.8%
|
|
Net income attributable to CACI |
|
| $30.8 |
|
| $38.4 |
|
|
-19.6%
|
|
Diluted earnings per share
|
|
| $1.19 |
|
| $1.62 |
|
|
-26.7%
|
|
|
| |
|
| |
|
| |
Revenue for the third quarter of Fiscal Year 2014 (FY14) decreased 0.6
percent compared to the third fiscal quarter of Fiscal Year 2013 (FY13).
The decrease in revenue in the third quarter was driven primarily by
delays in planned awards, lower run rates on professional services
contracts, and reductions in Afghanistan-related material purchases. The
decrease in operating income in the quarter was due primarily to
reductions in revenue and a full quarter of amortization of intangibles
associated with the Six3 Systems (Six3) acquisition. Interest expense
increased in the quarter as a result of interest incurred on the
additional debt associated with the acquisition of Six3. Diluted
earnings per share were impacted by the dilutive effect of our
convertible notes which mature on May 1, 2014. Net cash provided by
operations in the quarter was $101.7 million.
During our third quarter, Six3 generated $104.7 million of revenue and
$3.0 million of net income. Six3’s net income includes $5.0 million of
acquisition-related intangible amortization and $1.7 million of
retention bonus related expenses.
Additional Financial Metrics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q3, FY14
|
|
|
Q3, FY13
|
|
|
% Change
|
|
Earnings before interest, taxes, depreciation and amortization
(EBITDA), a non-GAAP measure (in millions)
|
|
| $78.7 |
|
| $83.1 |
|
|
-5.2%
|
|
Diluted adjusted earnings per share, a non-GAAP measure
|
|
| $1.78 |
|
| $2.08 |
|
|
-14.2%
|
|
Days sales outstanding
|
|
|
62
|
|
|
61
|
|
|
|
|
|
| |
|
| |
|
| |
Third Quarter Awards and Contract Funding
During the quarter, we received awards in all ten of our markets with
approximately one-third of those in our high-growth markets. Our
contract awards were $700 million in the quarter, 26.1 percent higher
than the $555 million of the year earlier period. Approximately 27
percent of our awards in the quarter were new business.
Contract funding orders in the third quarter were $794 million, 21.2
percent higher than the year earlier quarter. Our total backlog at March
31, 2014 was $7.3 billion. Funded backlog at March 31, 2014 was $1.6
billion. As part of our integration of Six3 into CACI’s operations, we
will begin including their contribution to backlog effective July 1,
2014.
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 awards:
-
A $95 million, five-year award to continue providing operations and
maintenance support services for the Business Integration Office at
the Department of Interior. This continuing work strengthens our
presence in the Business Systems Solutions market area.
-
A $42 million, three-year, multiple-award contract to provide
lifecycle sustainment, integration, acquisition, and technical support
for Naval Electronic Surveillance Systems to the U.S. Navy’s Space and
Naval Warfare Systems Center Pacific (SSC Pacific) Security Systems
Branch. This is new work for us and expands our presence in the C4ISR
market area.
Third Quarter Highlights
- Fortune magazine ranked CACI as one of the World’s Most Admired
Companies for 2014. CACI ranked sixth among Information Technology
(IT) Services companies worldwide and fifth overall in Virginia. Fortune’s
survey identifies companies that are perceived as the most successful
and effective worldwide.
- CACI Executive Chairman Dr. J.P. (Jack) London and President and Chief
Executive Officer Ken Asbury were named to Executive Mosaic’s Wash100,
a list of private and public sector leaders who demonstrate a
consistent commitment to organizational excellence. Dr. London was
honored for his long-standing service and ethics-focused leadership,
and Mr. Asbury was recognized as a superior business development
strategist and growth driver.
-
Our recruiting team continued to earn recognition for our veterans
hiring and support programs.
- CACI received the 2014 ERE Recruiting Excellence Award for “Best
Military Talent Program” from the Electronic Recruiting Exchange
(ERE). ERE is the world’s largest online community and forum for
recruiting professionals. The award recognized CACI’s veterans
enrichment programs for service members and their families.
- Profiles in Diversity Journal selected CACI as one of the
25 Most Influential Employers for Veteran Hiring. This award
highlights our military hiring specialists, who provide veterans
with real-time assistance re-entering the working world.
Nine Months Results
|
|
|
|
|
|
|
|
|
|
|
|
(in millions except per-share data)
|
|
|
Nine Months,
FY14
|
|
|
Nine Months,
FY13
|
|
|
% Change
|
|
Revenue
|
|
| $2,658.8 |
|
| $2,769.1 |
|
|
-4.0%
|
|
Operating income
|
|
| $188.2 |
|
| $202.9 |
|
|
-7.3%
|
|
Net income attributable to CACI |
|
| $98.8 |
|
| $113.8 |
|
|
-13.2%
|
|
Diluted earnings per share
|
|
| $3.89 |
|
| $4.79 |
|
|
-18.7%
|
|
|
| |
|
| |
|
| |
Revenue decreased 4.0 percent compared to revenue for the first nine
months of FY13 due to a reduction in Afghanistan-related material
purchases and subcontract labor, delays in planned awards, lower run
rates on professional services contracts, and the government shutdown in
October. The decrease in operating income in the first nine months of
FY14 was due primarily to one-time acquisition-related expenses and the
amortization of intangibles for Six3. Diluted earnings per share were
impacted by the dilutive effect of our convertible notes which mature on
May 1, 2014. Net cash provided by operations in the first nine months of
FY14 was $146.3 million.
During the first nine months of FY14, Six3 generated $153.6 million of
revenue and $3.1 million of net income. Six3’s net income includes $7.8
million of acquisition-related intangible amortization and $2.5 million
of retention bonus related expenses.
Additional Financial Metrics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months,
FY14
|
|
|
Nine Months,
FY13
|
|
|
% Change
|
|
Earnings before interest, taxes, depreciation and amortization
(EBITDA), a non-GAAP measure (in millions)
|
|
| $236.1 |
|
| $244.7 |
|
|
-3.5%
|
|
Diluted adjusted earnings per share, a non-GAAP measure
|
|
| $5.53 |
|
| $6.27 |
|
|
-11.8%
|
|
|
| |
|
| |
|
| |
CACI Reiterates Its FY14 Guidance
We are reiterating the FY14 guidance we issued on April 3, 2014. The
table below summarizes our FY14 guidance ranges and represents our views
as of April 30, 2014:
|
|
|
|
|
(In millions except for tax rate and earnings per share)
|
|
| FY 2014 Guidance |
|
Revenue
|
|
| $3,500 - $3,600 |
|
Net income attributable to CACI |
|
| $130 - $140 |
|
Effective corporate tax rate
|
|
|
38%
|
|
Diluted earnings per share
|
|
| $5.12 - $5.51 |
|
Diluted weighted average shares
|
|
|
25.4
|
|
|
| |
Conference Call Information
We have scheduled a conference call for 8:30 AM Eastern Time Thursday,
May 1, 2014 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 12405774. A replay of the call will also be available
over the Internet beginning at 1:00 PM Eastern Time Thursday, May 1,
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 Fortune magazine
World’s Most Admired Company in the IT Services industry, CACI is 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
15,500 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; 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 | | | | | | | Nine Months Ended | | | | |
| | | 3/31/2014 | | | 3/31/2013 | | |
% Change
| | | 3/31/2014 | | | 3/31/2013 | | |
% Change
|
|
Revenue
| | |
$
|
900,393
|
| | |
$
|
906,196
|
| | |
-0.6
|
%
| | |
$
|
2,658,844
|
| | |
$
|
2,769,059
|
| | |
-4.0
|
%
|
|
Costs of revenue
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Direct costs
| | | |
605,780
| | | | |
623,125
| | | |
-2.8
|
%
| | | |
1,813,874
| | | | |
1,908,411
| | | |
-5.0
|
%
|
|
Indirect costs and selling expenses
| | | |
216,164
| | | | |
200,684
| | | |
7.7
|
%
| | | |
609,704
| | | | |
617,375
| | | |
-1.2
|
%
|
|
Depreciation and amortization
| | |
|
17,917
|
| | |
|
13,767
|
| | |
30.1
|
%
| | |
|
47,098
|
| | |
|
40,334
|
| | |
16.8
|
%
|
|
Total costs of revenue
| | |
|
839,861
|
| | |
|
837,576
|
| | |
0.3
|
%
| | |
|
2,470,676
|
| | |
|
2,566,120
|
| | |
-3.7
|
%
|
|
Operating income
| | | |
60,532
| | | | |
68,620
| | | |
-11.8
|
%
| | | |
188,168
| | | | |
202,939
| | | |
-7.3
|
%
|
|
Interest expense and other, net
| | |
|
11,480
|
| | |
|
6,295
|
| | |
82.4
|
%
| | |
|
28,324
|
| | |
|
19,308
|
| | |
46.7
|
%
|
|
Income before income taxes
| | | |
49,052
| | | | |
62,325
| | | |
-21.3
|
%
| | | |
159,844
| | | | |
183,631
| | | |
-13.0
|
%
|
|
Income taxes
| | |
|
18,043
|
| | |
|
23,838
|
| | |
-24.3
|
%
| | |
|
60,533
|
| | |
|
69,174
|
| | |
-12.5
|
%
|
Net income including portion attributable to noncontrolling
interest in earnings of joint venture
| | | |
31,009
| | | | |
38,487
| | | |
-19.4
|
%
| | | |
99,311
| | | | |
114,457
| | | |
-13.2
|
%
|
Noncontrolling interest in earnings of joint venture
| | |
|
(181
|
)
| | |
|
(120
|
)
| | | | | | |
|
(529
|
)
| | |
|
(706
|
)
| | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
Net income attributable to CACI | | |
$
|
30,828
|
| | |
$
|
38,367
|
| | |
-19.6
|
%
| | |
$
|
98,782
|
| | |
$
|
113,751
|
| | |
-13.2
|
%
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
Basic earnings per share
| | |
$
|
1.31
| | | |
$
|
1.67
| | | |
-21.2
|
%
| | |
$
|
4.22
| | | |
$
|
4.95
| | | |
-14.8
|
%
|
|
Diluted earnings per share
| | |
$
|
1.19
| | | |
$
|
1.62
| | | |
-26.7
|
%
| | |
$
|
3.89
| | | |
$
|
4.79
| | | |
-18.7
|
%
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
Weighted average shares used in per share computations:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Basic
| | | |
23,473
| | | | |
23,021
| | | | | | | | |
23,406
| | | | |
22,968
| | | | | |
|
Diluted
| | | |
25,973
| | | | |
23,706
| | | | | | | | |
25,368
| | | | |
23,740
| | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| Statement of Operations Data (Unaudited) |
| | | | | | | | | | | | | |
|
| | | Quarter Ended | | | | | | | Nine Months Ended | | | | |
| | | 3/31/2014 | | | 3/31/2013 | | |
% Change
| | | 3/31/2014 | | | 3/31/2013 | | |
% Change
|
|
Operating income margin
| | | |
6.7
|
%
| | | |
7.6
|
%
| | | | | | | |
7.1
|
%
| | | |
7.3
|
%
| | | | |
|
Tax rate
| | | |
36.9
|
%
| | | |
38.3
|
%
| | | | | | | |
38.0
|
%
| | | |
37.8
|
%
| | | | |
|
Net income margin
| | | |
3.4
|
%
| | | |
4.2
|
%
| | | | | | | |
3.7
|
%
| | | |
4.1
|
%
| | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
EBITDA**
| | |
$
|
78,739
| | | |
$
|
83,092
| | | |
-5.2
|
%
| | |
$
|
236,140
| | | |
$
|
244,711
| | | |
-3.5
|
%
|
|
EBITDA Margin
| | | |
8.7
|
%
| | | |
9.2
|
%
| | | | | | | |
8.9
|
%
| | | |
8.8
|
%
| | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
Adjusted net income**
| | |
$
|
46,343
| | | |
$
|
49,322
| | | |
-6.0
|
%
| | |
$
|
140,328
| | | |
$
|
148,880
| | | |
-5.7
|
%
|
|
Diluted adjusted earnings per share
| | |
$
|
1.78
| | | |
$
|
2.08
| | | |
-14.2
|
%
| | |
$
|
5.53
| | | |
$
|
6.27
| | | |
-11.8
|
%
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
**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)
|
|
|
| | | 3/31/2014 | | | 6/30/2013 |
| ASSETS: | | | | | | | | |
|
Current assets
| | | | | | | | |
|
Cash and cash equivalents
| | |
$
|
48,369
| | |
$
|
64,337
|
|
Accounts receivable, net
| | | |
641,947
| | | |
614,616
|
|
Prepaid expenses and other current assets
| | |
|
62,842
| | |
|
44,828
|
|
Total current assets
| | | |
753,158
| | | |
723,781
|
| | | | | | | |
|
|
Goodwill and intangible assets, net
| | | |
2,428,427
| | | |
1,581,153
|
|
Property and equipment, net
| | | |
70,799
| | | |
65,510
|
|
Other long-term assets
| | |
|
138,323
| | |
|
126,627
|
|
Total assets
| | |
$
|
3,390,707
| | |
$
|
2,497,071
|
| | | | | | | |
|
| LIABILITIES AND SHAREHOLDERS' EQUITY: | | | | | | | | |
|
Current liabilities
| | | | | | | | |
|
Current portion of long-term debt
| | |
$
|
51,953
| | |
$
|
295,517
|
|
Accounts payable
| | | |
98,989
| | | |
133,073
|
|
Accrued compensation and benefits
| | | |
180,287
| | | |
166,538
|
|
Other accrued expenses and current liabilities
| | |
|
146,043
| | |
|
147,366
|
|
Total current liabilities
| | | |
477,272
| | | |
742,494
|
| | | | | | | |
|
|
Long-term debt, net of current portion
| | | |
1,262,574
| | | |
300,790
|
|
Other long-term liabilities
| | |
|
331,611
| | |
|
246,215
|
|
Total liabilities
| | |
|
2,071,457
| | |
|
1,289,499
|
| | | | | | | |
|
|
Shareholders' equity
| | |
|
1,319,250
| | |
|
1,207,572
|
|
Total liabilities and shareholders' equity
| | |
$
|
3,390,707
| | |
$
|
2,497,071
|
| | | | | | | |
|
|
|
| Selected Financial Data (Continued) |
|
|
| | | |
|
| | | |
| CACI International Inc |
| Condensed Consolidated Statements of Cash Flows (Unaudited) |
|
(Amounts in thousands)
|
| | | | | | | | | |
|
| | | Nine Months Ended |
| | | 3/31/2014 | | | 3/31/2013 |
| CASH FLOWS FROM OPERATING ACTIVITIES: | | | | | | | | | | |
Net income including portion attributable to noncontrolling
interest in earnings of joint venture
| | |
$
|
99,311
| | | |
$
|
114,457
| |
Reconciliation of net income to net cash provided by operating
activities:
| | | | | | | | | | |
|
Depreciation and amortization
| | | |
47,098
| | | | |
40,334
| |
|
Non-cash interest expense
| | | |
10,245
| | | | |
9,573
| |
|
Amortization of deferred financing costs
| | | |
2,178
| | | | |
1,543
| |
|
Loss on extinguishment of debt
| | | |
4,116
| | | | |
-
| |
|
Stock-based compensation expense
| | | |
8,890
| | | | |
6,394
| |
|
Provision for deferred income taxes
| | | |
17,420
| | | | |
16,351
| |
|
Distribution of earnings from unconsolidated joint venture
| | | |
1,762
| | | | |
5,627
| |
|
Equity in earnings of unconsolidated joint ventures
| | | |
(1,420
|
)
| | | |
(2,074
|
)
|
Changes in operating assets and liabilities, net of effect of
business acquisitions
| | | | | | | | | | |
|
Accounts receivable, net
| | | |
61,700
| | | | |
19,032
| |
|
Prepaid expenses and other assets
| | | |
(12,403
|
)
| | | |
(19,888
|
)
|
|
Accounts payable and accrued expenses
| | | |
(71,638
|
)
| | | |
(26,872
|
)
|
|
Accrued compensation and benefits
| | | |
(23,261
|
)
| | | |
(23,487
|
)
|
|
Income taxes receivable and payable
| | | |
(489
|
)
| | | |
(8,159
|
)
|
|
Other liabilities
| | |
|
2,793
|
| | |
|
15,183
|
|
|
Net cash provided by operating activities
| | |
|
146,302
|
| | |
|
148,014
|
|
| | | | | | | | | |
|
| CASH FLOWS FROM INVESTING ACTIVITIES: | | | | | | | | | | |
|
Capital expenditures
| | | |
(11,636
|
)
| | | |
(12,759
|
)
|
|
Purchases of businesses, net of cash acquired
| | | |
(838,427
|
)
| | | |
(105,420
|
)
|
|
Investment in unconsolidated joint venture
| | | |
-
| | | | |
(838
|
)
|
|
Other
| | |
|
(1,020
|
)
| | |
|
(2,658
|
)
|
|
Net cash used in investing activities
| | |
|
(851,083
|
)
| | |
|
(121,675
|
)
|
| | | | | | | | | |
|
| CASH FLOWS FROM FINANCING ACTIVITIES: | | | | | | | | | | |
|
Net proceeds under credit facilities
| | | |
696,632
| | | | |
138,763
| |
Payment of contingent consideration
| | | |
(3,294
|
)
| | | |
(3,187
|
)
|
|
Proceeds from employee stock purchase plans
| | | |
2,681
| | | | |
3,486
| |
|
Proceeds from exercise of stock options
| | | |
-
| | | | |
7,244
| |
|
Repurchases of common stock
| | | |
(2,804
|
)
| | | |
(126,507
|
)
|
|
Payment of taxes for equity transactions
| | | |
(9,493
|
)
| | | |
(5,582
|
)
|
|
Other
| | |
|
3,752
|
| | |
|
105
|
|
|
Net cash provided by financing activities
| | |
|
687,474
|
| | |
|
14,322
|
|
|
Effect of exchange rate changes on cash and cash equivalents
| | |
|
1,339
|
| | |
|
(145
|
)
|
|
Net (decrease) increase in cash and cash equivalents
| | | |
(15,968
|
)
| | | |
40,516
| |
|
Cash and cash equivalents, beginning of period
| | |
|
64,337
|
| | |
|
15,740
|
|
|
Cash and cash equivalents, end of period
| | |
$
|
48,369
|
| | |
$
|
56,256
|
|
| | | | | | | | | |
|
|
|
| Selected Financial Data (Continued) |
|
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
| Revenue by Customer Type (Unaudited) |
| | | Quarter Ended |
|
|
|
|
|
|
|
(dollars in thousands)
| | | 3/31/2014 |
|
| 3/31/2013 |
|
| $ Change |
|
| % Change |
| Department of Defense | | |
$
|
656,407
| | |
72.9
|
%
| | |
$
|
668,119
| | |
73.7
|
%
| | |
$
|
(11,712
|
)
| | |
-1.8
|
%
|
|
Federal Civilian Agencies
| | | |
188,857
| | |
21.0
|
%
| | | |
186,190
| | |
20.5
|
%
| | | |
2,667
| | | |
1.4
|
%
|
|
Commercial and other
| | |
|
55,129
|
|
|
6.1
|
%
|
|
|
|
51,887
|
|
|
5.8
|
%
|
|
|
|
3,242
|
|
|
|
6.2
|
%
|
|
Total
| | |
$
|
900,393
|
|
|
100.0
|
%
|
|
|
$
|
906,196
|
|
|
100.0
|
%
|
|
|
$
|
(5,803
|
)
|
|
|
-0.6
|
%
|
| | | | | | | | | | | | | | | | | |
|
| | | Nine Months Ended |
|
|
|
|
|
|
|
(dollars in thousands)
| | | 3/31/2014 |
|
| 3/31/2013 |
|
| $Change |
|
| % Change |
| Department of Defense | | |
$
|
1,924,359
| | |
72.4
|
%
| | |
$
|
2,076,659
| | |
75.0
|
%
| | |
$
|
(152,300
|
)
| | |
-7.3
|
%
|
|
Federal Civilian Agencies
| | | |
571,885
| | |
21.5
|
%
| | | |
536,617
| | |
19.4
|
%
| | | |
35,268
| | | |
6.6
|
%
|
|
Commercial and other
| | |
|
162,600
|
|
|
6.1
|
%
|
|
|
|
155,783
|
|
|
5.6
|
%
|
|
|
|
6,817
|
|
|
|
4.4
|
%
|
|
Total
| | |
$
|
2,658,844
|
|
|
100.0
|
%
|
|
|
$
|
2,769,059
|
|
|
100.0
|
%
|
|
|
$
|
(110,215
|
)
|
|
|
-4.0
|
%
|
| | | | | | | | | | | | | | | | | |
|
| Revenue by Contract Type (Unaudited) |
| | | Quarter Ended |
|
|
|
|
|
|
|
(dollars in thousands)
| | | 3/31/2014 |
|
| 3/31/2013 |
|
| $Change |
|
| % Change |
|
Cost reimbursable
| | |
$
|
439,957
| | |
48.9
|
%
| | |
$
|
435,662
| | |
48.1
|
%
| | |
$
|
4,295
| | | |
1.0
|
%
|
|
Fixed price
| | | |
283,151
| | |
31.4
|
%
| | | |
250,519
| | |
27.6
|
%
| | | |
32,632
| | | |
13.0
|
%
|
|
Time and materials
| | |
|
177,285
|
|
|
19.7
|
%
|
|
|
|
220,015
|
|
|
24.3
|
%
|
|
|
|
(42,730
|
)
|
|
|
-19.4
|
%
|
|
Total
| | |
$
|
900,393
|
|
|
100.0
|
%
|
|
|
$
|
906,196
|
|
|
100.0
|
%
|
|
|
$
|
(5,803
|
)
|
|
|
-0.6
|
%
|
| | | | | | | | | | | | | | | | | |
|
| | | Nine Months Ended |
|
|
|
|
|
|
|
(dollars in thousands)
| | | 3/31/2014 |
|
| 3/31/2013 |
|
| $Change |
|
| % Change |
|
Cost reimbursable
| | |
$
|
1,304,092
| | |
49.1
|
%
| | |
$
|
1,327,033
| | |
47.9
|
%
| | |
$
|
(22,941
|
)
| | |
-1.7
|
%
|
|
Fixed price
| | | |
819,879
| | |
30.8
|
%
| | | |
773,961
| | |
28.0
|
%
| | | |
45,918
| | | |
5.9
|
%
|
|
Time and materials
| | |
|
534,873
|
|
|
20.1
|
%
|
|
|
|
668,065
|
|
|
24.1
|
%
|
|
|
|
(133,192
|
)
|
|
|
-19.9
|
%
|
|
Total
| | |
$
|
2,658,844
|
|
|
100.0
|
%
|
|
|
$
|
2,769,059
|
|
|
100.0
|
%
|
|
|
$
|
(110,215
|
)
|
|
|
-4.0
|
%
|
| | | | | | | | | | | | | | | | | |
|
| Revenue Received as a Prime versus Subcontractor (Unaudited) |
| | | Quarter Ended |
|
|
|
|
|
|
|
(dollars in thousands)
| | | 3/31/2014 |
|
| 3/31/2013 |
|
| $Change |
|
| % Change |
|
Prime
| | |
$
|
804,570
| | |
89.4
|
%
| | |
$
|
786,683
| | |
86.8
|
%
| | |
$
|
17,887
| | | |
2.3
|
%
|
|
Subcontractor
| | |
|
95,823
|
|
|
10.6
|
%
|
|
|
|
119,513
|
|
|
13.2
|
%
|
|
|
|
(23,690
|
)
|
|
|
-19.8
|
%
|
|
Total
| | |
$
|
900,393
|
|
|
100.0
|
%
|
|
|
$
|
906,196
|
|
|
100.0
|
%
|
|
|
$
|
(5,803
|
)
|
|
|
-0.6
|
%
|
| | | | | | | | | | | | | | | | | |
|
| | | Nine Months Ended |
|
(dollars in thousands)
| | | 3/31/2014 |
|
| 3/31/2013 |
|
| $Change |
|
| % Change |
|
Prime
| | |
$
|
2,382,563
| | |
89.6
|
%
| | |
$
|
2,426,082
| | |
87.6
|
%
| | |
$
|
(43,519
|
)
| | |
-1.8
|
%
|
|
Subcontractor
| | |
|
276,281
|
|
|
10.4
|
%
|
|
|
|
342,977
|
|
|
12.4
|
%
|
|
|
|
(66,696
|
)
|
|
|
-19.4
|
%
|
|
Total
| | |
$
|
2,658,844
|
|
|
100.0
|
%
|
|
|
$
|
2,769,059
|
|
|
100.0
|
%
|
|
|
$
|
(110,215
|
)
|
|
|
-4.0
|
%
|
| | | | | | | | | | | | | | | | | | | | | | | | |
|
|
|
| Selected Financial Data (Continued) |
|
|
| |
|
| |
|
| |
|
| |
| Contract Funding Orders Received (Unaudited) |
| | | Quarter Ended |
|
|
|
|
|
|
|
(dollars in thousands)
| | | 3/31/2014 |
|
| 3/31/2013 |
|
| $Change |
|
| % Change |
|
Contract Funding Orders
| | |
$
|
794,158
|
|
|
$
|
655,319
|
|
|
$
|
138,839
|
|
|
21.2
|
%
|
| | | Nine Months Ended |
|
|
|
|
|
|
|
(dollars in thousands)
| | | 3/31/2014 |
|
| 3/31/2013 |
|
| $Change |
|
| % Change |
|
Contract Funding Orders
| | |
$
|
2,703,478
|
|
|
$
|
2,694,046
|
|
|
$
|
9,432
|
|
|
0.4
|
%
|
| | | | | | | | | | | | | | | |
|
|
|
| Direct Costs by Category (Unaudited) |
|
|
| Quarter Ended |
|
|
|
|
|
|
|
|
|
|
(dollars in thousands)
| | | 3/31/2014 |
|
| 3/31/2013 |
|
| $Change |
|
| % Change |
|
Direct labor
| | |
$
|
270,405
|
|
|
44.6
|
%
|
|
|
$
|
265,308
|
|
|
42.6
|
%
|
|
|
$
|
5,097
| |
|
|
1.9
|
%
|
|
Other direct costs
| | |
|
335,375
|
|
|
55.4
|
%
|
|
|
|
357,817
|
|
|
57.4
|
%
|
|
|
|
(22,442
|
)
|
|
|
-6.3
|
%
|
|
Total direct costs
| | |
$
|
605,780
|
|
|
100.0
|
%
|
|
|
$
|
623,125
|
|
|
100.0
|
%
|
|
|
$
|
(17,345
|
)
|
|
|
-2.8
|
%
|
| | | | | | | | | | | | | | | | | | | | | | | | |
|
| | | Nine Months Ended |
|
|
|
|
|
|
|
|
|
|
(dollars in thousands)
| | | 3/31/2014 |
|
| 3/31/2013 |
|
| $Change |
|
| % Change |
|
Direct labor
| | |
$
|
764,086
| | |
42.1
|
%
| | |
$
|
766,362
| | |
40.2
|
%
| | |
$
|
(2,276
|
)
| | |
-0.3
|
%
|
|
Other direct costs
| | |
|
1,049,788
|
|
|
57.9
|
%
|
|
|
|
1,142,049
|
|
|
59.8
|
%
|
|
|
|
(92,261
|
)
|
|
|
-8.1
|
%
|
|
Total direct costs
| | |
$
|
1,813,874
|
|
|
100.0
|
%
|
|
|
$
|
1,908,411
|
|
|
100.0
|
%
|
|
|
$
|
(94,537
|
)
|
|
|
-5.0
|
%
|
| | | | | | | | | | | | | | | | | | | | | | | | |
|
|
|
| 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 |
|
| Nine Months Ended |
|
(dollars in thousands)
| | | 3/31/2014 |
|
| 3/31/2013 |
|
| % Change |
|
| 3/31/2014 |
|
| 3/31/2013 |
|
| % Change |
|
Net income attributable to CACI | | |
$
|
30,828
| | | |
$
|
38,367
| | | |
-19.6
|
%
| | |
$
|
98,782
| | | |
$
|
113,751
| | | |
-13.2
|
%
|
|
Plus:
| | | | | | | | | | | | | | | | | | |
|
Income taxes
| | | |
18,043
| | | | |
23,838
| | | |
-24.3
|
%
| | | |
60,533
| | | | |
69,174
| | | |
-12.5
|
%
|
|
Interest income and expense, net
| | | |
11,951
| | | | |
7,120
| | | |
67.9
|
%
| | | |
29,727
| | | | |
21,452
| | | |
38.6
|
%
|
|
Depreciation and amortization
| | |
|
17,917
|
|
|
|
|
13,767
|
|
|
|
30.1
|
%
|
|
|
|
47,098
|
|
|
|
|
40,334
|
|
|
|
16.8
|
%
|
|
EBITDA
| | |
$
|
78,739
|
|
|
|
$
|
83,092
|
|
|
|
-5.2
|
%
|
|
|
$
|
236,140
|
|
|
|
$
|
244,711
|
|
|
|
-3.5
|
%
|
| | | | | | | | | | | | | | | | | |
|
| | | Quarter Ended |
|
| Nine Months Ended |
|
(dollars in thousands)
| | | 3/31/2014 |
|
| 3/31/2013 |
|
| % Change |
|
| 3/31/2014 |
|
| 3/31/2013 |
|
| % Change |
|
Revenue, as reported
| | |
$
|
900,393
| | | |
$
|
906,196
| | | |
-0.6
|
%
| | |
$
|
2,658,844
| | | |
$
|
2,769,059
| | | |
-4.0
|
%
|
|
EBITDA
| | |
$
|
78,739
|
|
|
|
$
|
83,092
|
|
|
|
-5.2
|
%
|
|
|
$
|
236,140
|
|
|
|
$
|
244,711
|
|
|
|
-3.5
|
%
|
|
EBITDA margin
| | |
|
8.7
|
%
|
|
|
|
9.2
|
%
|
|
|
|
|
|
|
8.9
|
%
|
|
|
|
8.8
|
%
|
|
|
|
| | | | | | | | | | | | | | | | | |
|
| | | Quarter Ended |
|
| Nine Months Ended |
|
(dollars in thousands)
| | | 3/31/2014 |
|
| 3/31/2013 |
|
| % Change |
|
| 3/31/2014 |
|
| 3/31/2013 |
|
| % Change |
|
Net income attributable to CACI | | |
$
|
30,828
| | | |
$
|
38,367
| | | |
-19.6
|
%
| | |
$
|
98,782
| | | |
$
|
113,751
| | | |
-13.2
|
%
|
|
Plus:
| | | | | | | | | | | | | | | | | | |
|
Stock-based compensation
| | | |
3,105
| | | | |
493
| | | |
529.8
|
%
| | | |
8,890
| | | | |
6,394
| | | |
39.0
|
%
|
|
Depreciation and amortization
| | | |
17,917
| | | | |
13,767
| | | |
30.1
|
%
| | | |
47,098
| | | | |
40,334
| | | |
16.8
|
%
|
|
Amortization of financing costs
| | | |
1,049
| | | | |
531
| | | |
97.6
|
%
| | | |
2,178
| | | | |
1,543
| | | |
41.2
|
%
|
|
Non-cash interest expense
| | | |
3,476
| | | | |
3,248
| | | |
7.0
|
%
| | | |
10,245
| | | | |
9,573
| | | |
7.0
|
%
|
|
Less:
| | | | | | | | | | | | | | | | | | |
|
Related tax effect
| | |
|
(10,032
|
)
|
|
|
|
(7,084
|
)
|
|
|
41.6
|
%
|
|
|
|
(26,865
|
)
|
|
|
|
(22,715
|
)
|
|
|
18.3
|
%
|
|
Adjusted net income
| | |
$
|
46,343
|
|
|
|
$
|
49,322
|
|
|
|
-6.0
|
%
|
|
|
$
|
140,328
|
|
|
|
$
|
148,880
|
|
|
|
-5.7
|
%
|
| | | | | | | | | | | | | | | | | |
|
| | | Quarter Ended |
|
| Nine Months Ended |
|
(shares in thousands)
| | | 3/31/2014 |
|
| 3/31/2013 |
|
| % Change |
|
| 3/31/2014 |
|
| 3/31/2013 |
|
| % Change |
|
Diluted weighted average shares,
| | | | | | | | | | | | | | | | | | |
|
as reported
| | | |
25,973
| | | | |
23,706
| | | | | | | |
25,368
| | | | |
23,740
| | | | |
|
Diluted earnings per share
| | |
$
|
1.19
|
|
|
|
$
|
1.62
|
|
|
|
-26.7
|
%
|
|
|
$
|
3.89
|
|
|
|
$
|
4.79
|
|
|
|
-18.7
|
%
|
|
Diluted adjusted earnings per share
| | |
$
|
1.78
|
|
|
|
$
|
2.08
|
|
|
|
-14.2
|
%
|
|
|
$
|
5.53
|
|
|
|
$
|
6.27
|
|
|
|
-11.8
|
%
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
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
Source: CACI International Inc