Net income of $44.2 million in the quarter,
up 1.4%; net income of $163.7 million for the year, up
14.6%
Revenue of $1.14 billion in the quarter, up
2.1%; record revenue of $4.35 billion for the year, up
16.3%
Cash from operations of $64.8 million in the
quarter, up 21.7%; a record $281.3 million for the year, up
15.9%
Contract awards of $1.1 billion in the
quarter; record awards of $6.0 billion for the year, up
11.6%
Fiscal Year 2018 guidance reiterated
CACI International Inc (NYSE: CACI), a leading information
solutions and services provider to the federal government,
announced results today for its fourth fiscal quarter and full year
ended June 30, 2017.
CEO Commentary and Outlook
Ken Asbury, CACI’s President and CEO, said, “CACI’s record
Fiscal Year 2017 results were driven by strong performance on our
programs and contribution from our National Security Solutions
acquisition. I’m also very proud to report that for the third
consecutive year, we were voted a Washington Post Top Workplace by
our employees, highlighting our ethical culture and innovative
solutions and services. We generated record cash from operations
and reduced debt to build our capacity to invest in future growth.
Our second half performance provides momentum as we enter FY18 to
continue delivering top- and bottom-line organic growth. Going
forward, we are confident that we will deliver on our stated goals
of one to four percent organic revenue growth above our addressable
market and 10 to 30 basis points of margin expansion annually,
which will deliver enhanced shareholder value.”
Fourth Quarter Results
(in millions except per-share data) Q4, FY17
Q4, FY16 % Change Revenue
$1,137.4 $1,113.9 2.1% Operating income
$80.1 $81.1 -1.2% Net
income $44.2 $43.6 1.4%
Diluted earnings per share $1.76 $1.75
0.4%
Revenue for the fourth quarter of Fiscal Year 2017 (FY17)
increased compared to the fourth quarter of Fiscal Year 2016
(FY16). Cash provided by operations in the quarter was $64.8
million.
Additional Financial Metrics
(in millions
except days sales outstanding data) Q4, FY17 Q4, FY16
% Change Adjusted earnings before interest, taxes,
depreciation and amortization (EBITDA), a non-GAAP measure
$97.4 $100.1 -2.7% Adjusted net income, a non-GAAP
measure $58.9 $58.6 0.5% Days sales
outstanding 59 62 See reconciliation of
Net Income to Earnings before Interest, Taxes, Depreciation and
Amortization and to Adjusted Net Income on page 10.
Fourth Quarter Awards, Contract Funding Orders, and Other
Highlights
Our contract awards in the quarter were $1.1 billion and $6.0
billion for the year, which excludes ceiling values of multi-award
indefinite delivery, indefinite quantity (IDIQ) contracts.
Approximately 60 percent of our awards in the quarter and in the
year were for new business.
Key awards during the quarter included:
- A prime position on a $94 million
indefinite delivery/indefinite quantity contract to provide
full-service automated testing system support services to the U.S.
Air Force under the Automated Test System Sustainment Initiative.
The five-year award represents both new and continuing work in the
company’s Logistics and Material Readiness market area.
- A $40 million task order to provide
services and support for the Naval Sea Systems Command that will
help improve organizational efficiencies and effectiveness, and
will assist in developing the command’s workforce. This five-year
award was issued under the SeaPort-e contract vehicle and
represents new work for CACI in its Logistics and Material
Readiness market area.
- A $21 million task order to provide
cyber security systems support to the Naval Facilities Engineering
Command to enhance the security of industrial control systems
important to America’s critical infrastructure. The two-year task
order, awarded under the SPAWAR Integrated Cyber Operations
contract vehicle, represents continuing business for CACI.
- Approximately $856 million in
classified and other awards, both new and recompete, where we do
not yet have permission from the customers to announce them.
Contract funding orders in the fourth quarter were approximately
$1.1 billion and $4.1 billion for FY17. Total backlog at June 30,
2017 increased 1.9 percent to $11.2 billion compared with $11.0
billion at the end of FY16. Funded backlog at June 30, 2017 was
$1.9 billion.
Other highlights in the quarter included:
- CACI and American Cyber, Inc. received
the prestigious Nunn-Perry Award from the Department of Defense
(DoD) for excellence in the DoD Mentor-Protégé Program (MPP). The
Nunn-Perry Award, named in honor of former Senator Sam Nunn and
former Secretary of Defense William Perry, recognizes outstanding
mentor-protégé teams in the MPP.
- CACI was named to The Washington Post’s
2017 Top Workplaces in the Large Company category for the third
consecutive year. The list is based on employee surveys from more
than 300 Greater Washington, D.C. area companies. Employees
evaluated their companies on factors such as leadership, culture,
and effectiveness.
Twelve Months Results
(in millions except per-share data)
Twelve Months,FY17
Twelve Months,FY16
% Change Revenue $4,354.6
$3,744.1 16.3% Operating income $297.3
$264.8 12.3% Net income
$163.7 $142.8 14.6% Diluted earnings
per share $6.53 $5.76
13.4%
Revenue in FY17 increased compared to FY16 due to the NSS
acquisition. Operating income increased due primarily to the NSS
acquisition, program performance, and the absence of
acquisition-related expenses which occurred in FY16. Net income
increased due to the above operating income factors noted and a
lower effective tax rate. Net cash provided by operations in FY17
was $281.3 million.
Additional Financial Metrics
(in millions)
Twelve Months,FY17
Twelve Months,FY16
% Change Adjusted earnings before interest, taxes,
depreciation and amortization (EBITDA), a non-GAAP measure
$369.9 $330.4 12.0% Adjusted net income, a non-GAAP
measure $223.7 $195.3 14.5% See reconciliation
of Net Income to Earnings before Interest, Taxes, Depreciation and
Amortization and to Adjusted Net Income on page 10.
CACI Reiterates Its FY18 Guidance
We are reiterating the FY18 guidance we issued on June 21, 2017.
The table below summarizes our FY18 guidance ranges and represents
our views as of August 16, 2017:
(In millions except for tax rate and
earnings per share)
Fiscal Year 2018Guidance
Revenue $4,350 - $4,500 Net income $165
- $173 Effective corporate tax rate 36.5% Diluted
earnings per share $6.52 - $6.84 Diluted weighted
average shares 25.3
Conference Call Information
We have scheduled a conference call for 8:30 AM Eastern Time
Thursday, August 17, 2017 during which members of our senior
management team will be making a brief presentation focusing on
fourth 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. A replay of
the call will also be available over the Internet 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 SmallCap600 Index. CACI’s sustained
commitment to ethics and integrity defines its corporate culture
and drives its success. With approximately 18,600 employees
worldwide, CACI provides dynamic career opportunities for military
veterans and industry professionals to support the nation’s most
critical missions. Join us! 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: legal, regulatory, and political change
as a result of transitioning to a new presidential administration
that could result in economic uncertainty; changes in U.S. federal
agencies, current agreements with other nations, foreign events, or
any other events which may affect the global economy; 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, or any legislation that amends or changes
discretionary spending levels under that act; 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-Earnings Release
Selected Financial Data CACI International
Inc Condensed Consolidated Statements of Operations
(Unaudited) (Amounts in thousands, except per share amounts)
Quarter Ended
Twelve Months Ended 6/30/2017 6/30/2016 %
Change
6/30/2017 6/30/2016 % Change Revenue $
1,137,389 $ 1,113,900 2.1 % $ 4,354,617 $
3,744,053 16.3 % Costs of revenue Direct costs 769,038
755,580 1.8 % 2,934,804 2,487,633 18.0 % Indirect costs and selling
expenses 270,395 258,597 4.6 % 1,050,792 926,918 13.4 %
Depreciation and amortization 17,862 18,639
-4.2 % 71,760 64,752 10.8 %
Total costs of revenue 1,057,295 1,032,816
2.4 % 4,057,356 3,479,303 16.6 %
Operating income 80,094 81,084 -1.2 % 297,261 264,750 12.3 %
Interest expense and other, net 11,721 12,661
-7.4 % 48,642 41,138 18.2 %
Income before income taxes 68,373 68,423 -0.1 % 248,619 223,612
11.2 % Income taxes 24,142 24,824 -2.7
% 84,948 80,813 5.1 % Net income $
44,231 $ 43,599 1.4 % $ 163,671 $ 142,799
14.6 % Basic earnings per share $ 1.81 $ 1.79 0.9 % $
6.71 $ 5.89 14.0 % Diluted earnings per share $ 1.76 $ 1.75 0.4 % $
6.53 $ 5.76 13.4 % Weighted average shares used in per share
computations: Basic 24,459 24,319 24,401 24,262 Diluted 25,172
24,900 25,069 24,802
Statement of Operations Data
(Unaudited) Quarter Ended Twelve Months Ended
6/30/2017 6/30/2016 % Change
6/30/2017
6/30/2016 % Change Operating income margin 7.0 % 7.3 % 6.8 %
7.1 % Tax rate 35.3 % 36.3 % 34.2 % 36.1 % Net income margin 3.9 %
3.9 % 3.8 % 3.8 % Adjusted EBITDA* $ 97,357 $ 100,057 -2.7 %
$ 369,904 $ 330,365 12.0 % Adjusted EBITDA Margin 8.6 % 9.0 % 8.5 %
8.8 % Adjusted net income* $ 58,911 $ 58,591 0.5 % $ 223,652
$ 195,296 14.5 %
* 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)
6/30/2017
6/30/2016 ASSETS: Current assets Cash and cash
equivalents $ 65,539 $ 49,082 Accounts receivable, net 757,341
803,817 Prepaid expenses and other current assets 57,022
68,939 Total current assets 879,902 921,838 Goodwill
and intangible assets, net 2,812,806 2,860,715 Property and
equipment, net 91,749 81,362 Other long-term assets 126,625
123,426 Total assets $ 3,911,082 $ 3,987,341
LIABILITIES AND SHAREHOLDERS' EQUITY: Current liabilities
Current portion of long-term debt $ 53,965 $ 53,965 Accounts
payable 62,874 95,270 Accrued compensation and benefits 239,741
228,362 Other accrued expenses and current liabilities
170,164 187,579 Total current liabilities 526,744 565,176
Long-term debt, net of current portion 1,177,598 1,402,079
Other long-term liabilities 413,019 412,773 Total
liabilities 2,117,361 2,380,028 Shareholders'
equity 1,793,721 1,607,313 Total liabilities and
shareholders' equity $ 3,911,082 $ 3,987,341
Selected Financial Data
(Continued)
CACI International Inc
Condensed Consolidated Statements of Cash Flows (Unaudited)
(Amounts in thousands)
Twelve Months Ended
6/30/2017 6/30/2016 CASH FLOWS FROM OPERATING
ACTIVITIES: Net income $ 163,671 $ 142,799
Reconciliation of net income to net cash
provided by operating activities:
Depreciation and amortization 71,760 64,752 Amortization of
deferred financing costs 4,484 3,234 Loss on disposal of fixed
assets 1,025 - Stock-based compensation expense 21,945 17,919
Provision for deferred income taxes 15,148 13,568 Equity in
earnings from unconsolidated ventures (167 ) (204 ) Gain on sale of
assets (1,545 ) -
Changes in operating assets and
liabilities, net of effect of acquisitions:
Accounts receivable, net 46,158 (105 ) Prepaid expenses and other
assets (5,221 ) (8,408 ) Accounts payable and accrued expenses
(47,777 ) (7,204 ) Accrued compensation and benefits 12,048 4,320
Income taxes payable and receivable (9,954 ) 14,868 Other
liabilities 9,675 (2,962 ) Net cash provided
by operating activities 281,250 242,577
CASH FLOWS FROM INVESTING ACTIVITIES: Capital
expenditures (43,268 ) (20,835 ) Purchases of businesses, net of
cash acquired (7,276 ) (587,821 )
Proceeds from net working capital and
other refunds of acquired business
19,287 - Proceeds from equity method investments 4,681 - Other
1,772 1,069 Net cash used in investing
activities (24,804 ) (607,587 )
CASH FLOWS
FROM FINANCING ACTIVITIES: Net (payments) borrowings under
credit facilities (228,965 ) 389,245 Proceeds from employee stock
purchase plans 4,316 3,086 Repurchase of common stock (4,386 )
(3,230 ) Payment of taxes for equity transactions (10,951 ) (8,045
) Other - 451 Net cash (used in)
provided by financing activities (239,986 ) 381,507
Effect of exchange rate changes on cash and cash equivalents
(3 ) (2,779 ) Net increase in cash and cash
equivalents 16,457 13,718 Cash and cash equivalents, beginning of
period 49,082 35,364 Cash and cash
equivalents, end of period $ 65,539 $ 49,082
Selected Financial Data (Continued) Revenue
by Customer Type (Unaudited) Quarter Ended
(dollars in thousands)
6/30/2017
6/30/2016
$ Change
% Change Department of Defense $ 752,217 66.1
% $ 714,698 64.1 % $ 37,519 5.2 %
Federal Civilian Agencies 317,097 27.9 % 324,787 29.2 % (7,690 )
-2.4 % Commercial and other 68,075 6.0 %
74,415 6.7 % (6,340 ) -8.5 %
Total $ 1,137,389 100.0 % $ 1,113,900 100.0 %
$ 23,489 2.1 %
Twelve Months
Ended (dollars in thousands)
6/30/2017 6/30/2016
$ Change
% Change Department of Defense $ 2,829,305 65.0 % $
2,439,329 65.1 % $ 389,976 16.0 % Federal Civilian Agencies
1,259,212 28.9 % 1,062,508 28.4 % 196,704 18.5 % Commercial and
other 266,100 6.1 % 242,216 6.5
% 23,884 9.9 % Total $ 4,354,617
100.0 % $ 3,744,053 100.0 % $ 610,564
16.3 %
Revenue by Contract Type (Unaudited)
Quarter Ended (dollars in
thousands)
6/30/2017 6/30/2016
$ Change
% Change Cost reimbursable $ 572,051 50.3 % $ 551,704
49.5 % $ 20,347 3.7 % Fixed price 353,233 31.1 % 349,026 31.3 %
4,207 1.2 % Time and materials 212,105 18.6 %
213,170 19.2 % (1,065 ) -0.5 %
Total $ 1,137,389 100.0 % $ 1,113,900 100.0 %
$ 23,489 2.1 %
Twelve Months
Ended (dollars in thousands)
6/30/2017 6/30/2016
$ Change
% Change Cost reimbursable $ 2,128,063 48.9 % $
1,817,923 48.5 % $ 310,140 17.1 % Fixed price 1,407,409 32.3 %
1,245,269 33.3 % 162,140 13.0 % Time and materials 819,145
18.8 % 680,861 18.2 %
138,284 20.3 % Total $ 4,354,617 100.0 %
$ 3,744,053 100.0 % $ 610,564
16.3 %
Revenue Received as a Prime versus Subcontractor
(Unaudited) Quarter Ended
(dollars in thousands)
6/30/2017 6/30/2016
$ Change
% Change Prime $ 1,056,907 92.9 % $ 1,027,582 92.3 %
$ 29,325 2.9 % Subcontractor 80,482 7.1 %
86,318 7.7 % (5,836 ) -6.8 %
Total $ 1,137,389 100.0 % $ 1,113,900 100.0 %
$ 23,489 2.1 %
Twelve Months
Ended (dollars in thousands)
6/30/2017 6/30/2016
$ Change
% Change Prime $ 4,045,958 92.9 % $ 3,421,817 91.4 %
$ 624,141 18.2 % Subcontractor 308,659 7.1 %
322,236 8.6 % (13,577 ) -4.2 %
Total $ 4,354,617 100.0 % $ 3,744,053 100.0 %
$ 610,564 16.3 %
Selected
Financial Data (Continued) Contract Funding Orders
Received (Unaudited) Quarter Ended
(dollars in thousands)
6/30/2017
6/30/2016
$ Change
% Change Contract Funding Orders $ 1,067,786 $
1,133,098 $ (65,312 ) -5.8 %
Twelve Months
Ended (dollars in thousands)
6/30/2017 6/30/2016
$ Change
% Change Contract Funding Orders $ 4,120,643 $
4,125,910 $ (5,267 ) -0.1 %
Direct Costs by Category (Unaudited) Quarter
Ended (dollars in thousands)
6/30/2017
6/30/2016
$ Change
% Change
Direct labor $ 324,608 42.2 % $ 344,927 45.7 %
$ (20,319 ) -5.9 % Other direct costs 444,430
57.8 % 410,653 54.3 %
33,777 8.2 % Total direct costs $ 769,038
100.0 % $ 755,580 100.0 % $ 13,458
1.8 %
Twelve Months Ended (dollars in
thousands)
6/30/2017
6/30/2016
$ Change
% Change
Direct labor $ 1,317,576 44.9 % $ 1,197,838 48.2 % $ 119,738 10.0 %
Other direct costs 1,617,228 55.1 %
1,289,795 51.8 % 327,433 25.4 %
Total direct costs $ 2,934,804 100.0 % $ 2,487,633
100.0 % $ 447,171 18.0 %
Selected Financial Data
(Continued)
Reconciliation of Net Income to
Adjusted Earnings Before Interest, Taxes, Depreciation
and Amortization (EBITDA) and to
Adjusted Net Income
(Unaudited)
The Company views Adjusted EBITDA, Adjusted EBITDA margin,
and Adjusted Net Income, all of which are defined as non-GAAP
measures, as important indicators of performance, consistent with
the manner in which management measures and forecasts the Company’s
performance. Adjusted EBITDA is a commonly used non-GAAP measure
when comparing our results with those of other companies. We define
Adjusted EBITDA as GAAP net income plus net interest expense,
income taxes, depreciation and amortization, and earnout
adjustments. We consider Adjusted EBITDA to be a useful metric for
management and investors to evaluate and compare the ongoing
operating performance of our business on a consistent basis across
reporting periods, as it eliminates the effect of non-cash items
such as depreciation of tangible assets, amortization of intangible
assets primarily recognized in business combinations, as well as
the effect of earnout gains and losses, which we do not believe are
indicative of our core operating performance. Adjusted EBITDA
margin is adjusted EBITDA divided by revenue. We define Adjusted
Net Income as GAAP net income plus stock-based compensation
expense, depreciation and amortization, amortization of financing
costs, and earnout adjustments, net of related tax effects. We
believe Adjusted Net Income is an important measure of long-term
value and is used by investors to measure our performance. This
measure assists management and investors in further understanding
our results and trends from period-to-period by removing certain
non-cash items. Adjusted 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 Twelve Months Ended (dollars in
thousands)
6/30/2017 6/30/2016 %
Change 6/30/2017 6/30/2016
% Change Net income $ 44,231 $ 43,599 1.4 % $
163,671 $ 142,799 14.6 % Plus: Income taxes 24,142
24,824 -2.7 % 84,948 80,813 5.1 % Interest income and expense, net
11,721 12,636 -7.2 % 48,809 41,342 18.1 % Depreciation and
amortization 17,862 18,639 -4.2 % 71,760 64,752 10.8 % Earnout
adjustments (599 ) 359 -266.9 %
716 659 8.6 %
Adjusted EBITDA $ 97,357 $ 100,057 -2.7
% $ 369,904 $ 330,365 12.0 %
Quarter Ended Twelve Months Ended
(dollars in thousands)
6/30/2017 6/30/2016
% Change 6/30/2017
6/30/2016 % Change Revenue, as reported $
1,137,389 $ 1,113,900 2.1 % $ 4,354,617 $ 3,744,053 16.3 % Adjusted
EBITDA $ 97,357 $ 100,057 -2.7 %
$ 369,904 $ 330,365 12.0 % Adjusted
EBITDA margin 8.6 % 9.0 %
8.5 % 8.8 %
Quarter
Ended Twelve Months Ended (dollars in thousands)
6/30/2017 6/30/2016 % Change
6/30/2017 6/30/2016 %
Change Net income $ 44,231 $ 43,599 1.4 % $ 163,671 $ 142,799
14.6 % Plus: Stock-based compensation 5,831 4,590 27.0 % 21,945
17,919 22.5 % Depreciation and amortization 17,862 18,639 -4.2 %
71,760 64,752 10.8 % Amortization of financing costs 1,113 1,133
-1.8 % 4,484 3,234 38.7 % Earn-out adjustments (599 ) 359 -266.9 %
716 659 8.6 % Less: Related tax effect (9,527 )
(9,729 ) -2.1 % (38,924 )
(34,067 ) 14.3 % Adjusted net income $ 58,911
$ 58,591 0.5 % $ 223,652 $
195,296 14.5 %
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170816005945/en/
CACI International IncCorporate Communications and Media:Jody
Brown, Executive Vice President, Public
Relations703-841-7801jbrown@caci.comorInvestor Relations:David
Dragics, Senior Vice President, Investor
Relations866-606-3471ddragics@caci.com
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