Press release

CACI Reports Results for Its Fiscal 2024 Second Quarter and Raises Fiscal Year Guidance

0
Sponsored by Businesswire

CACI International Inc (NYSE: CACI), a leading provider of expertise and technology to government customers, announced results today for its fiscal second quarter ended December 31, 2023.

“I’m pleased with how our business is performing, both the near-term conversion of our growing backlog as well as our positioning for future growth,” said John Mengucci, CACI President and Chief Executive Officer. “The first half of Fiscal Year 2024 played out as we expected and we are seeing increasing momentum in the second half of the year. This acceleration enables us to raise our Fiscal Year 2024 guidance. We continue to win in the marketplace by providing differentiated capabilities, investing ahead of customer need, and leveraging our exceptional past performance and business development. We remain confident in our ability to drive long-term growth, increase free cash flow, and generate value for our customers and our shareholders.”

Second Quarter Results

(in millions, except earnings per share and DSO)

Three Months Ended

12/31/2023

 

12/31/2022

 

% Change

Revenues

$

1,833.9

 

$

1,649.4

 

11.2

%

Income from operations

$

133.3

 

$

130.9

 

1.9

%

Net income

$

83.9

 

$

87.1

 

-3.7

%

Adjusted net income, a non-GAAP measure1

$

97.6

 

$

101.3

 

-3.6

%

Diluted earnings per share

$

3.74

 

$

3.68

 

1.6

%

Adjusted diluted earnings per share, a non-GAAP measure1

$

4.36

 

$

4.28

 

1.9

%

Earnings before interest, taxes, depreciation and amortization (EBITDA), a non-GAAP measure1

$

170.9

 

$

168.4

 

1.5

%

Net cash provided by operating activities excluding MARPA1

$

83.2

 

$

22.0

 

278.8

%

Free cash flow, a non-GAAP measure1

$

67.8

 

$

9.1

 

647.4

%

Days sales outstanding (DSO)2

 

47

 

 

51

 

 

(1)

This non-GAAP measure should not be considered in isolation or as a substitute for measures prepared in accordance with GAAP. For additional information regarding this non-GAAP measure, see the related explanation and reconciliation to the GAAP measure included below in this release.

(2)

The DSO calculations for three months ended December 31, 2023 and 2022 exclude the impact of the Company’s Master Accounts Receivable Purchase Agreement (MARPA), which was 6 days and 8 days, respectively.

Revenues in the second quarter of fiscal year 2024 increased 11.2 percent year-over-year, essentially all organic growth. The increase in income from operations was driven by higher revenues and gross profit. Growth in diluted earnings per share and adjusted diluted earnings per share was driven by higher income from operations, lower tax provision, and share repurchases, partially offset by higher interest expense. The increase in cash from operations, excluding MARPA was driven primarily by higher cash tax payments in the year-ago quarter, including a $47 million payment related to Section 174 of the Tax Cuts and Jobs Act of 2017.

Second Quarter Contract Awards

Contract awards in the second quarter totaled $2.2 billion, with approximately 55 percent for new business to CACI. Awards exclude ceiling values of multi-award, indefinite delivery, indefinite quantity (IDIQ) contracts. Some notable awards during the quarter were:

  • CACI was selected for Global Enterprise Network Modernization (GENMOD), a five-year, single-award task order worth up to $526 million to provide network modernization and sustainment technology to the U.S. Army. CACI will deliver vertical integration to create a robust, reliable, and high-speed network modernizing the Army’s enterprise IT infrastructure and facilities across the Pacific and Southwest Asia.

  • CACI won a single-award, five-year task order worth up to $382 million to provide technology to the U.S. Army Combat Capabilities Development Command (DEVCOM) Engineering and Systems Integration Directorate (ESID) Trojan Engineering and Systems Integration (ESI) Advancement of Trojan Systems (EATS). CACI will provide advanced software and full life cycle support for the Trojan family of systems across the Army military intelligence enterprise at all echelons.

  • CACI was awarded a $239 million task order to provide technology, including commercial solution for classified (CSfC), to modernize a Department of Defense network.

  • CACI was awarded a five-year task order valued at up to $64 million to provide complete life cycle hardware and systems engineering for the U.S. Air Force Distributed Common Ground System (DCGS). CACI’s proven mobile technologies deliver scalable, customizable mobile command, control, computers, and communications (C4) capabilities. This technology award will support the Air Force Life Cycle Management Center C2ISR Division under the Program Executive Office (PEO) – Digital Directorate.

Total backlog as of December 31, 2023 was $26.9 billion compared with $26.5 billion a year ago, an increase of 2 percent. Funded backlog as of December 31, 2023 was $3.7 billion compared with $3.2 billion a year ago, an increase of 16 percent.

Additional Highlights

  • CACI was named to the Forbes 2023 list of America’s Best Employers for Veterans for the fourth consecutive year. As an employer with a workforce of approximately 23,000 employees, of which 38% are veterans, military spouses, or current members of the National Guard and Reserves, CACI strives to create a welcoming environment that allows veterans to thrive and continue their mission. CACI ranked seventh in Aerospace and Defense and 39th overall.

  • CACI received the National Veteran Small Business Coalition’s (NVSBC) Champions Award for exceeding the NVSBC-established goals for subcontracting to service-disabled and veteran-owned small businesses (SD/VOSB’s) during the federal government’s fiscal year 2022.

  • CACI hired Tanya M. Skeen, former Assistant Secretary of Defense for Acquisition (Acting), as Senior Vice President of Corporate Strategy and Development. In this role, she will be providing guidance and recommendations on investments to further advance CACI’s capabilities aimed at satisfying our customers’ future mission needs.

Fiscal Year 2024 Guidance

The table below summarizes our fiscal year 2024 guidance and represents our views as of January 24, 2024. Our revenue guidance reflects approximately $200 million of higher-than-expected material purchases by our customers, split evenly between the first and second quarters of fiscal year 2024. Our guidance also reflects lower diluted weighted average shares due to the effect of share repurchases.

(in millions, except earnings per share)

Fiscal Year 2024

Current Guidance

 

Prior Guidance

Revenues

$7,300 – $7,500

 

$7,200 – $7,400

Adjusted net income, a non-GAAP measure1

$450 – $465

 

$440 – $465

Adjusted diluted earnings per share, a non-GAAP measure1

$19.91 – $20.58

 

$19.38 – $20.48

Diluted weighted average shares

22.6

 

22.7

Free cash flow, a non-GAAP measure2

at least $420

 

at least $410

(1)

Adjusted net income and adjusted diluted earnings per share are defined as GAAP net income and GAAP diluted EPS, respectively, excluding intangible amortization expense and the related tax impact. This non-GAAP measure should not be considered in isolation or as a substitute for measures prepared in accordance with GAAP. For additional information regarding this non-GAAP measure, see the related explanation and reconciliation to the GAAP measure included below in this release.

(2)

Free cash flow is defined as net cash provided by operating activities excluding MARPA, less payments for capital expenditures (capex). This non-GAAP measure should not be considered in isolation or as a substitute for measures prepared in accordance with GAAP. Fiscal year 2024 free cash flow guidance assumes approximately $75 million in tax payments related to Section 174 of the Tax Cuts and Jobs Act of 2017. For additional information regarding this non-GAAP measure, see the related explanation and reconciliation to the GAAP measure included below in this release.

Conference Call Information

We have scheduled a conference call for 8:00 AM Eastern Time Thursday, January 25, 2024 during which members of our senior management 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 webcast and view the accompanying exhibits on CACI’s investor relations website at http://investor.caci.com/events/default.aspx at the scheduled time. A replay of the call will also be available on CACI’s investor relations website at http://investor.caci.com/.

About CACI

At CACI International Inc (NYSE: CACI), our 23,000 talented and dynamic employees are ever vigilant in delivering distinctive expertise and differentiated technology to meet our customers’ greatest challenges in national security and government modernization. We are a company of good character, relentless innovation, and long-standing excellence. Our culture drives our success and earns us recognition as a Fortune World’s Most Admired Company. CACI is a member of the Fortune 1000 Largest Companies, the Russell 1000 Index, and the S&P MidCap 400 Index. For more information, visit us at www.caci.com.

There are statements made herein that 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 risk factors that could cause actual results to be materially different from anticipated results. These risk factors include, but are not limited to, the following: our reliance on U.S. government contracts, which includes general risk around the government contract procurement process (such as bid protest, small business set asides, loss of work due to organizational conflicts of interest, etc.) and termination risks; significant delays or reductions in appropriations for our programs and broader changes in U.S. government funding and spending patterns; legislation that amends or changes discretionary spending levels or budget priorities, such as for homeland security or to address global pandemics like COVID-19; legal, regulatory, and political change from successive presidential administrations 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, including the impact of global pandemics like COVID-19; 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; competitive factors such as pricing pressures and/or competition to hire and retain employees (particularly those with security clearances); failure to achieve contract awards in connection with re-competes for present business and/or competition for new business; regional and national economic conditions in the United States and globally, including but not limited to: terrorist activities or war, changes in interest rates, currency fluctuations, significant fluctuations in the equity markets, and market speculation regarding our continued independence; our ability to meet contractual performance obligations, including technologically complex obligations dependent on factors not wholly within our control; limited access to certain facilities required for us to perform our work, including during a global pandemic like COVID-19; changes in tax law, the interpretation of associated rules and regulations, or any other events impacting our effective tax rate; changes in technology; the potential impact of the announcement or consummation of a proposed transaction and our ability to successfully integrate the operations of our recent and any future acquisitions; our ability to achieve the objectives of near term or long-term business plans; the effects of health epidemics, pandemics and similar outbreaks may have material adverse effects on our business, financial position, results of operations and/or cash flows; and other risks described in our Securities and Exchange Commission filings.

CACI International Inc

Consolidated Statements of Operations (Unaudited)

(in thousands, except per share data)

 

 

Three Months Ended

 

Six Months Ended

 

12/31/2023

 

12/31/2022

 

% Change

 

12/31/2023

 

12/31/2022

 

% Change

Revenues

$

1,833,934

 

$

1,649,416

 

11.2

%

 

$

3,684,081

 

$

3,255,175

 

13.2

%

Costs of revenues:

 

 

 

 

 

 

 

 

 

 

 

Direct costs

 

1,255,251

 

 

1,094,314

 

14.7

%

 

 

2,528,169

 

 

2,150,086

 

17.6

%

Indirect costs and selling expenses

 

409,355

 

 

388,303

 

5.4

%

 

 

813,988

 

 

770,384

 

5.7

%

Depreciation and amortization

 

36,023

 

 

35,932

 

0.3

%

 

 

71,270

 

 

71,035

 

0.3

%

Total costs of revenues

 

1,700,629

 

 

1,518,549

 

12.0

%

 

 

3,413,427

 

 

2,991,505

 

14.1

%

Income from operations

 

133,305

 

 

130,867

 

1.9

%

 

 

270,654

 

 

263,670

 

2.6

%

Interest expense and other, net

 

27,519

 

 

19,942

 

38.0

%

 

 

53,090

 

 

36,135

 

46.9

%

Income before income taxes

 

105,786

 

 

110,925

 

-4.6

%

 

 

217,564

 

 

227,535

 

-4.4

%

Income taxes

 

21,916

 

 

23,824

 

-8.0

%

 

 

47,647

 

 

51,309

 

-7.1

%

Net income

$

83,870

 

$

87,101

 

-3.7

%

 

$

169,917

 

$

176,226

 

-3.6

%

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

$

3.76

 

$

3.71

 

1.3

%

 

$

7.56

 

$

7.51

 

0.7

%

Diluted earnings per share

$

3.74

 

$

3.68

 

1.6

%

 

$

7.50

 

$

7.44

 

0.8

%

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares used in per share computations:

 

 

 

 

 

 

 

 

 

 

 

Weighted-average basic shares outstanding

 

22,282

 

 

23,506

 

-5.2

%

 

 

22,464

 

 

23,463

 

-4.3

%

Weighted-average diluted shares outstanding

 

22,407

 

 

23,676

 

-5.4

%

 

 

22,650

 

 

23,677

 

-4.3

%

CACI International Inc

Consolidated Balance Sheets (Unaudited)

(in thousands)

 

 

12/31/2023

 

6/30/2023

ASSETS

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

128,851

 

$

115,776

Accounts receivable, net

 

947,452

 

 

894,946

Prepaid expenses and other current assets

 

227,501

 

 

199,315

Total current assets

 

1,303,804

 

 

1,210,037

 

 

 

 

Goodwill

 

4,106,113

 

 

4,084,705

Intangible assets, net

 

474,964

 

 

507,835

Property, plant and equipment, net

 

190,199

 

 

199,519

Operating lease right-of-use assets

 

309,084

 

 

312,989

Supplemental retirement savings plan assets

 

97,559

 

 

96,739

Accounts receivable, long-term

 

12,409

 

 

11,857

Other long-term assets

 

164,310

 

 

177,127

Total assets

$

6,658,442

 

$

6,600,808

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

Current liabilities:

 

 

 

Current portion of long-term debt

$

61,250

 

$

45,938

Accounts payable

 

298,544

 

 

198,177

Accrued compensation and benefits

 

248,187

 

 

372,354

Other accrued expenses and current liabilities

 

378,145

 

 

377,502

Total current liabilities

 

986,126

 

 

993,971

 

 

 

 

Long-term debt, net of current portion

 

1,713,413

 

 

1,650,443

Supplemental retirement savings plan obligations, net of current portion

 

112,514

 

 

104,912

Deferred income taxes

 

55,293

 

 

120,545

Operating lease liabilities, noncurrent

 

323,919

 

 

329,432

Other long-term liabilities

 

231,553

 

 

177,171

Total liabilities

 

3,422,818

 

 

3,376,474

 

 

 

 

Total shareholders’ equity

 

3,235,624

 

 

3,224,334

Total liabilities and shareholders’ equity

$

6,658,442

 

$

6,600,808

CACI International Inc

Consolidated Statements of Cash Flows (Unaudited)

(in thousands)

 

 

Six Months Ended

 

12/31/2023

 

12/31/2022

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

Net income

$

169,917

 

 

$

176,226

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

Depreciation and amortization

 

71,270

 

 

 

71,035

 

Amortization of deferred financing costs

 

1,095

 

 

 

1,126

 

Non-cash lease expense

 

33,835

 

 

 

34,909

 

Stock-based compensation expense

 

22,949

 

 

 

20,196

 

Deferred income taxes

 

(25,770

)

 

 

(48,320

)

Changes in operating assets and liabilities, net of effect of business acquisitions:

 

 

 

Accounts receivable, net

 

(50,642

)

 

 

55,518

 

Prepaid expenses and other assets

 

(28,703

)

 

 

(30,322

)

Accounts payable and other accrued expenses

 

90,769

 

 

 

28,157

 

Accrued compensation and benefits

 

(124,640

)

 

 

(59,917

)

Income taxes payable and receivable

 

2,879

 

 

 

(5,110

)

Operating lease liabilities

 

(38,206

)

 

 

(40,050

)

Long-term liabilities

 

17,099

 

 

 

3,642

 

Net cash provided by operating activities

 

141,852

 

 

 

207,090

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

 

Capital expenditures

 

(29,410

)

 

 

(25,670

)

Acquisitions of businesses, net of cash acquired

 

(10,869

)

 

 

 

Other

 

1,974

 

 

 

 

Net cash used in investing activities

 

(38,305

)

 

 

(25,670

)

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

Proceeds from borrowings under bank credit facilities

 

1,531,500

 

 

 

1,101,500

 

Principal payments made under bank credit facilities

 

(1,454,313

)

 

 

(1,269,813

)

Proceeds from employee stock purchase plans

 

5,848

 

 

 

5,288

 

Repurchases of common stock

 

(155,765

)

 

 

(5,286

)

Payment of taxes for equity transactions

 

(18,061

)

 

 

(13,269

)

Net cash used in financing activities

 

(90,791

)

 

 

(181,580

)

Effect of exchange rate changes on cash and cash equivalents

 

319

 

 

 

94

 

Net change in cash and cash equivalents

 

13,075

 

 

 

(66

)

Cash and cash equivalents, beginning of period

 

115,776

 

 

 

114,804

 

Cash and cash equivalents, end of period

$

128,851

 

 

$

114,738

 

Revenues by Customer Group (Unaudited)

 

 

Three Months Ended

(in thousands)

12/31/2023

 

12/31/2022

 

$ Change

 

% Change

Department of Defense

$

1,358,509

 

74.0

%

 

$

1,160,060

 

70.4

%

 

$

198,449

 

 

17.1

%

Federal Civilian agencies

 

389,942

 

21.3

%

 

 

399,768

 

24.2

%

 

 

(9,826

)

 

-2.5

%

Commercial and other

 

85,483

 

4.7

%

 

 

89,588

 

5.4

%

 

 

(4,105

)

 

-4.6

%

Total

$

1,833,934

 

100.0

%

 

$

1,649,416

 

100.0

%

 

$

184,518

 

 

11.2

%

 

 

Six Months Ended

(in thousands)

12/31/2023

 

12/31/2022

 

$ Change

 

% Change

Department of Defense

$

2,710,815

 

73.6

%

 

$

2,255,380

 

69.3

%

 

$

455,435

 

 

20.2

%

Federal Civilian agencies

 

797,286

 

21.6

%

 

 

823,855

 

25.3

%

 

 

(26,569

)

 

-3.2

%

Commercial and other

 

175,980

 

4.8

%

 

 

175,940

 

5.4

%

 

 

40

 

 

%

Total

$

3,684,081

 

100.0

%

 

$

3,255,175

 

100.0

%

 

$

428,906

 

 

13.2

%

Revenues by Contract Type (Unaudited)

 

 

Three Months Ended

(in thousands)

12/31/2023

 

12/31/2022

 

$ Change

 

% Change

Cost-plus-fee

$

1,102,474

 

60.1

%

 

$

953,344

 

57.8

%

 

$

149,130

 

15.6

%

Fixed-price

 

519,544

 

28.3

%

 

 

509,356

 

30.9

%

 

 

10,188

 

2.0

%

Time-and-materials

 

211,916

 

11.6

%

 

 

186,716

 

11.3

%

 

 

25,200

 

13.5

%

Total

$

1,833,934

 

100.0

%

 

$

1,649,416

 

100.0

%

 

$

184,518

 

11.2

%

 

 

Six Months Ended

(in thousands)

12/31/2023

 

12/31/2022

 

$ Change

 

% Change

Cost-plus-fee

$

2,236,909

 

60.7

%

 

$

1,888,090

 

58.1

%

 

$

348,819

 

18.5

%

Fixed-price

 

1,021,621

 

27.7

%

 

 

991,129

 

30.4

%

 

 

30,492

 

3.1

%

Time-and-materials

 

425,551

 

11.6

%

 

 

375,956

 

11.5

%

 

 

49,595

 

13.2

%

Total

$

3,684,081

 

100.0

%

 

$

3,255,175

 

100.0

%

 

$

428,906

 

13.2

%

Revenues by Prime or Subcontractor (Unaudited)

 

 

Three Months Ended

(in thousands)

12/31/2023

 

12/31/2022

 

$ Change

 

% Change

Prime contractor

$

1,636,377

 

89.2

%

 

$

1,460,839

 

88.6

%

 

$

175,538

 

12.0

%

Subcontractor

 

197,557

 

10.8

%

 

 

188,577

 

11.4

%

 

 

8,980

 

4.8

%

Total

$

1,833,934

 

100.0

%

 

$

1,649,416

 

100.0

%

 

$

184,518

 

11.2

%

 

 

Six Months Ended

(in thousands)

12/31/2023

 

12/31/2022

 

$ Change

 

% Change

Prime contractor

$

3,285,739

 

89.2

%

 

$

2,911,149

 

89.4

%

 

$

374,590

 

12.9

%

Subcontractor

 

398,342

 

10.8

%

 

 

344,026

 

10.6

%

 

 

54,316

 

15.8

%

Total

$

3,684,081

 

100.0

%

 

$

3,255,175

 

100.0

%

 

$

428,906

 

13.2

%

Revenues by Expertise or Technology (Unaudited)

 

 

Three Months Ended

(in thousands)

12/31/2023

 

12/31/2022

 

$ Change

 

% Change

Expertise

$

849,541

 

46.3

%

 

$

741,620

 

45.0

%

 

$

107,921

 

14.6

%

Technology

 

984,393

 

53.7

%

 

 

907,796

 

55.0

%

 

 

76,597

 

8.4

%

Total

$

1,833,934

 

100.0

%

 

$

1,649,416

 

100.0

%

 

$

184,518

 

11.2

%

 

 

Six Months Ended

(in thousands)

12/31/2023

 

12/31/2022

 

$ Change

 

% Change

Expertise

$

1,727,635

 

46.9

%

 

$

1,475,823

 

45.3

%

 

$

251,812

 

17.1

%

Technology

 

1,956,446

 

53.1

%

 

 

1,779,352

 

54.7

%

 

 

177,094

 

10.0

%

Total

$

3,684,081

 

100.0

%

 

$

3,255,175

 

100.0

%

 

$

428,906

 

13.2

%

Contract Awards (Unaudited)

 

 

Three Months Ended

(in thousands)

12/31/2023

 

12/31/2022

 

$ Change

 

% Change

Contract Awards

$

2,199,671

 

$

3,488,834

 

$

(1,289,163

)

 

-37.0

%

 

 

Six Months Ended

(in thousands)

12/31/2023

 

12/31/2022

 

$ Change

 

% Change

Contract Awards

$

5,268,914

 

$

6,734,457

 

$

(1,465,543

)

 

-21.8

%

Reconciliation of Net Income to Adjusted Net Income and Diluted EPS to Adjusted Diluted EPS (Unaudited)

Adjusted net income and Adjusted diluted EPS are non-GAAP performance measures. We define Adjusted net income and Adjusted diluted EPS as GAAP net income and GAAP diluted EPS, respectively, excluding intangible amortization expense and the related tax impact as we do not consider intangible amortization expense to be indicative of our operating performance. We believe that these performance measures provide management and investors with useful information in assessing trends in our ongoing operating performance, provide greater visibility in understanding the long-term financial performance of the Company, and allow investors to more easily compare our results to results of our peers. These non-GAAP measures should not be considered in isolation or as a substitute for performance measures prepared in accordance with GAAP.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in thousands, except per share data)

Three Months Ended

 

Six Months Ended

 

 

12/31/2023

 

12/31/2022

 

% Change

 

12/31/2023

 

12/31/2022

 

% Change

 

 

Net income, as reported

$

83,870

 

 

$

87,101

 

 

 

-3.7

%

 

$

169,917

 

 

$

176,226

 

 

-3.6

%

 

 

Intangible amortization expense

 

18,426

 

 

 

19,109

 

 

 

-3.6

%

 

 

36,792

 

 

 

38,223

 

 

-3.7

%

 

 

Tax effect of intangible amortization1

 

(4,699

)

 

 

(4,949

)

 

 

-5.1

%

 

 

(9,383

)

 

 

(9,899

)

 

-5.2

%

 

 

Adjusted net income

$

97,597

 

 

$

101,261

 

 

 

-3.6

%

 

$

197,326

 

 

$

204,550

 

 

-3.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

 

 

12/31/2023

 

12/31/2022

 

% Change

 

12/31/2023

 

12/31/2022

 

% Change

 

 

Diluted EPS, as reported

$

3.74

 

 

$

3.68

 

 

 

1.6

%

 

$

7.50

 

 

$

7.44

 

 

0.8

%

 

 

Intangible amortization expense

 

0.82

 

 

 

0.81

 

 

 

1.2

%

 

 

1.62

 

 

 

1.61

 

 

0.6

%

 

 

Tax effect of intangible amortization1

 

(0.20

)

 

 

(0.21

)

 

 

-4.8

%

 

 

(0.41

)

 

 

(0.41

)

 

%

 

 

Adjusted diluted EPS

$

4.36

 

 

$

4.28

 

 

 

1.9

%

 

$

8.71

 

 

$

8.64

 

 

0.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FY24 Guidance Range

 

 

 

 

 

 

 

 

(in millions, except per share data)

Low End

 

 

 

High End

 

 

 

 

 

 

 

 

Net income, as reported

$

396

 

 

 

 

 

$

411

 

 

 

 

 

 

 

 

 

Intangible amortization expense

 

73

 

 

 

 

 

 

73

 

 

 

 

 

 

 

 

 

Tax effect of intangible amortization1

 

(19

)

 

 

 

 

 

(19

)

 

 

 

 

 

 

 

 

Adjusted net income

$

450

 

 

 

 

 

$

465

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FY24 Guidance Range

 

 

 

 

 

 

 

 

 

Low End

 

 

 

High End

 

 

 

 

 

 

 

 

Diluted EPS, as reported

$

17.52

 

 

 

 

 

$

18.19

 

 

 

 

 

 

 

 

 

Intangible amortization expense

 

3.23

 

 

 

 

 

 

3.23

 

 

 

 

 

 

 

 

 

Tax effect of intangible amortization1

 

(0.84

)

 

 

 

 

 

(0.84

)

 

 

 

 

 

 

 

 

Adjusted diluted EPS

$

19.91

 

 

 

 

 

$

20.58

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Calculation uses an assumed full year statutory tax rate of 25.5% and 25.9% on non-GAAP tax deductible adjustments for December 31, 2023 and 2022, respectively.

 

Note: Numbers may not sum due to rounding.

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

The Company views EBITDA and EBITDA margin, both 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. EBITDA is a commonly used non-GAAP measure when comparing our results with those of other companies. We define EBITDA as GAAP net income plus net interest expense, income taxes, and depreciation and amortization expense (including depreciation within direct costs). We consider 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, which we do not believe are indicative of our operating performance. EBITDA margin is divided by revenue. These non-GAAP measures should not be considered in isolation or as a substitute for performance measures prepared in accordance with GAAP.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

 

(in thousands)

12/31/2023

 

12/31/2022

 

% Change

 

12/31/2023

 

12/31/2022

 

% Change

 

 

Net income

$

83,870

 

 

$

87,101

 

 

-3.7

%

 

$

169,917

 

 

$

176,226

 

 

-3.6

%

 

 

Plus:

 

 

 

 

 

 

 

 

 

 

 

 

 

Income taxes

 

21,916

 

 

 

23,824

 

 

-8.0

%

 

 

47,647

 

 

 

51,309

 

 

-7.1

%

 

 

Interest income and expense, net

 

27,519

 

 

 

19,942

 

 

38.0

%

 

 

53,090

 

 

 

36,135

 

 

46.9

%

 

 

Depreciation and amortization expense, including amounts within direct costs

 

37,612

 

 

 

37,582

 

 

0.1

%

 

 

74,501

 

 

 

74,813

 

 

-0.4

%

 

 

EBITDA

$

170,917

 

 

$

168,449

 

 

1.5

%

 

$

345,155

 

 

$

338,483

 

 

2.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

 

(in thousands)

12/31/2023

 

12/31/2022

 

% Change

 

12/31/2023

 

12/31/2022

 

% Change

 

 

Revenues, as reported

$

1,833,934

 

 

$

1,649,416

 

 

11.2

%

 

$

3,684,081

 

 

$

3,255,175

 

 

13.2

%

 

 

EBITDA

 

170,917

 

 

 

168,449

 

 

1.5

%

 

 

345,155

 

 

 

338,483

 

 

2.0

%

 

 

EBITDA margin

 

9.3

%

 

 

10.2

%

 

 

 

 

9.4

%

 

 

10.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of Net Cash Provided by Operating Activities to Net Cash Provided by Operating Activities Excluding MARPA and to Free Cash Flow (Unaudited)

The Company defines Net cash provided by operating activities excluding MARPA, a non-GAAP measure, as net cash provided by operating activities calculated in accordance with GAAP, adjusted to exclude cash flows from CACI’s Master Accounts Receivable Purchase Agreement (MARPA) for the sale of certain designated eligible U.S. government receivables up to a maximum amount of $250.0 million. Free cash flow is a non-GAAP liquidity measure and may not be comparable to similarly titled measures used by other companies. The Company defines Free cash flow as Net cash provided by operating activities excluding MARPA, less payments for capital expenditures. The Company uses these non-GAAP measures to assess our ability to generate cash from our business operations and plan for future operating and capital actions. We believe these measures allow investors to more easily compare current period results to prior period results and to results of our peers. Free cash flow does not represent residual cash flows available for discretionary purposes and should not be used as a substitute for cash flow measures prepared in accordance with GAAP.

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

 

(in thousands)

12/31/2023

 

12/31/2022

 

12/31/2023

 

12/31/2022

 

 

Net cash provided by operating activities

$

71,764

 

 

$

62,247

 

 

$

141,852

 

 

$

207,090

 

 

 

Cash used in (provided by) MARPA

 

11,478

 

 

 

(40,273

)

 

 

34,645

 

 

 

(42,177

)

 

 

Net cash provided by operating activities excluding MARPA

 

83,242

 

 

 

21,974

 

 

 

176,497

 

 

 

164,913

 

 

 

Capital expenditures

 

(15,419

)

 

 

(12,899

)

 

 

(29,410

)

 

 

(25,670

)

 

 

Free cash flow

$

67,823

 

 

$

9,075

 

 

$

147,087

 

 

$

139,243

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FY24 Guidance

 

 

 

 

 

 

(in millions)

Current

 

Prior

 

 

 

 

 

 

Net cash provided by operating activities

$

510

 

 

$

500

 

 

 

 

 

 

 

Cash used in (provided by) MARPA

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by operating activities excluding MARPA

 

510

 

 

 

500

 

 

 

 

 

 

 

Capital expenditures

 

(90

)

 

 

(90

)

 

 

 

 

 

 

Free cash flow

$

420

 

 

$

410