Le Lézard
Classified in: Science and technology, Business, Covid-19 virus
Subjects: EARNINGS, Conference Call, Webcast

CACI Reports Results for Its Fiscal 2020 Fourth Quarter and Full Year and Issues Fiscal Year 2021 Guidance


CACI International Inc (NYSE: CACI), a leading provider of expertise and technology to government enterprise and mission customers, announced results today for its fiscal fourth quarter and full year ended June 30, 2020.

CEO Commentary and Outlook

John Mengucci, CACI's President and CEO, said, "Our fourth quarter performance was a strong finish to a great Fiscal Year 2020. Amid the headwinds from COVID-19, we achieved our financial commitments, delivering accelerating organic revenue growth, margin expansion, robust cash flow, and double-digit growth in contract awards and backlog. This strong performance is a testament to the resiliency of our company and the commitment of our employees. We are confident that we will continue to bring value to our customers and shareholders. Our winning strategy and record performance in Fiscal Year 2020 positions CACI for continued success in Fiscal Year 2021 and beyond."

Fourth Quarter Results

(in millions except per-share data)

Q4, FY20

Q4, FY19

% Change

Revenue

$1,495.6

$1,373.9

8.9%

Operating income

$133.7

$81.1

64.8%

Net income

$93.7

$50.0

87.3%

Diluted earnings per share

$3.68

$1.96

87.2%

Net cash provided by operating activities excluding MARPA1

$154.4

$109.9

40.4%

Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), a non-GAAP measure2

$162.9

$109.5

48.8%

Days sales outstanding (DSO)3

57

64

 

(1)

Fourth quarter FY20 and fourth quarter FY19 net cash provided by operating activities exclude CACI's Master Accounts Receivable Purchase Agreement (MARPA). For more details, see the Reconciliation of Net Cash Provided by Operating Activities to Net Cash Provided by Operating Activities Excluding MARPA on page 10 of this release.

(2)

See the Reconciliation of Net Income to Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) on page 10 of this release.

(3)

The DSO calculations for fourth quarter FY20 and fourth quarter FY19 exclude the impact of the Company's MARPA, which was 9 days and 10 days, respectively.

Revenue in Q4 FY20 increased 9% year-over-year as reported and 8% organically. The year-over-year increase in operating income was driven by higher revenue, especially in our technology business. The year-over-year increase in net income was due to higher operating income and lower interest expense, partially offset by a higher effective tax rate. The increase in cash from operations, excluding MARPA, was driven by higher net income and lower DSO as a result of enhanced billing and collections processes.

Fourth Quarter Awards

Contract awards in Q4 FY20 totaled $3.4 billion, with over 55% for new business to CACI. For the full year, contract awards totaled $11.6 billion, with over 55% for new business to CACI. These awards exclude ceiling values of multi-award, indefinite delivery, indefinite quantity (IDIQ) contracts. Some notable awards during the quarter were:

Total backlog as of June 30, 2020 was $21.6 billion compared with $16.9 billion a year ago, an increase of 28 percent. Funded backlog as of June 30, 2020 was $2.8 billion compared with $2.9 billion a year ago.

Fourth Quarter Highlights

Twelve Months Results

(in millions except per-share data)

Twelve Months,
FY20

Twelve Months,
FY19

% Change

Revenue

$5,720.0

$4,986.3

14.7%

Operating income

$457.7

$377.9

21.1%

Net income

$321.5

$265.6

21.0%

Diluted earnings per share

$12.61

$10.46

20.6%

Net cash provided by operating activities excluding MARPA1

$511.2

$362.8

40.9%

Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), a non-GAAP measure2

$573.6

$467.5

22.7%

(1)

FY20 and FY19 net cash provided by operating activities exclude CACI's Master Accounts Receivable Purchase Agreement (MARPA). For more details, see the Reconciliation of Net Cash Provided by Operating Activities to Net Cash Provided by Operating Activities Excluding MARPA on page 10 of this release.

(2)

See the Reconciliation of Net Income to Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) on page 10 of this release.

Revenue in FY20 increased 15% year-over-year as reported and 8% organically. The year-over-year increase in operating income was driven by the contribution from higher margin acquisitions and organic margin expansion. The year-over-year increase in net income was due to higher operating income, partially offset by higher interest expense and a higher effective tax rate. The increase in cash from operations, excluding MARPA, was driven by higher net income and lower DSO as a result of enhanced billing and collections processes.

FY21 Guidance

The table below summarizes our FY21 guidance and represents our views as of August 12, 2020. Our FY21 guidance includes the acquisition of Ascent Vision Technologies, LLC (AVT) announced today. In addition, our FY21 guidance assumes continued impact from COVID-19 through December 31, 2020 and that support currently provided under Section 3610 of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) is extended through that period.

 

 

(In millions except for earnings per share)

 

Fiscal Year 2021
Guidance

Revenue

$6,000 - $6,200

Net income

$347 - $367

Diluted earnings per share

$13.50 - $14.28

Diluted weighted average shares

25.7

Net cash provided by operating activities

at least $580

Conference Call Information

We have scheduled a conference call for 8:30 AM Eastern Time Thursday, August 13, 2020 during which members of our senior management will be making a brief presentation focusing on fourth quarter and full year 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

CACI's 23,000 talented employees are vigilant in providing the unique expertise and distinctive technology that address our customers' greatest enterprise and mission challenges. Our culture of good character, innovation, and excellence drives our success and earns us recognition as a Fortune World's Most Admired Company. As a member of the Fortune 1000 Largest Companies, the Russell 1000 Index, and the S&P MidCap 400 Index, we consistently deliver strong shareholder value. 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-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
6/30/2020 6/30/2019 % Change 6/30/2020 6/30/2019 % Change
Revenue

$

1,495,581

 

$

1,373,878

 

8.9

%

$

5,720,042

 

$

4,986,341

 

14.7

%

Costs of revenue
Direct costs

 

981,678

 

 

906,420

 

8.3

%

 

3,719,056

 

 

3,304,053

 

12.6

%

Indirect costs and selling expenses

 

351,427

 

 

359,282

 

-2.2

%

 

1,432,602

 

 

1,218,544

 

17.6

%

Depreciation and amortization

 

28,800

 

 

27,080

 

6.4

%

 

110,688

 

 

85,877

 

28.9

%

Total costs of revenue

 

1,361,905

 

 

1,292,782

 

5.3

%

 

5,262,346

 

 

4,608,474

 

14.2

%

Operating income

 

133,676

 

 

81,096

 

64.8

%

 

457,696

 

 

377,867

 

21.1

%

Interest expense and other, net

 

10,447

 

 

18,185

 

-42.6

%

 

56,059

 

 

49,958

 

12.2

%

Income before income taxes

 

123,229

 

 

62,911

 

95.9

%

 

401,637

 

 

327,909

 

22.5

%

Income taxes

 

29,498

 

 

12,881

 

129.0

%

 

80,157

 

 

62,305

 

28.7

%

Net income

$

93,731

 

$

50,030

 

87.3

%

$

321,480

 

$

265,604

 

21.0

%

 
Basic earnings per share

$

3.74

 

$

2.01

 

85.8

%

$

12.84

 

$

10.70

 

20.1

%

Diluted earnings per share

$

3.68

 

$

1.96

 

87.2

%

$

12.61

 

$

10.46

 

20.6

%

 
Weighted average shares used in per share computations:
Basic

 

25,089

 

 

24,875

 

 

25,031

 

 

24,833

 

Diluted

 

25,496

 

 

25,472

 

 

25,485

 

 

25,395

 

 
Statement of Operations Data (Unaudited)
Quarter Ended Twelve Months Ended
6/30/2020 6/30/2019 6/30/2020 6/30/2019
% Change % Change
Operating income margin

 

8.9

%

 

5.9

%

 

8.0

%

 

7.6

%

Tax rate

 

23.9

%

 

20.5

%

 

20.0

%

 

19.0

%

Net income margin

 

6.3

%

 

3.6

%

 

5.6

%

 

5.3

%

 
Adjusted EBITDA*

$

162,940

 

$

109,487

 

48.8

%

$

573,585

 

$

467,470

 

22.7

%

Adjusted EBITDA Margin

 

10.9

%

 

8.0

%

 

10.0

%

 

9.4

%

 
* See Reconciliation of Net Income to Adjusted Earnings before Interest, Taxes, Depreciation and Amortization on page 10
Selected Financial Data (Continued)
 
CACI International Inc
Condensed Consolidated Balance Sheets (Unaudited)
(Amounts in thousands)
 
6/30/2020 6/30/2019
ASSETS:
Current assets
Cash and cash equivalents

$

107,236

$

72,028

Accounts receivable, net

 

841,227

 

869,840

Prepaid expenses and other current assets

 

137,423

 

89,652

Total current assets

 

1,085,886

 

1,031,520

 
Goodwill and intangible assets, net

 

3,813,995

 

3,772,194

Property and equipment, net

 

170,521

 

149,676

Operating lease right-of-use assets

 

330,767

 

0

Other long-term assets

 

141,303

 

133,453

Total assets

$

5,542,472

$

5,086,843

 
LIABILITIES AND SHAREHOLDERS' EQUITY:
Current liabilities
Current portion of long-term debt

$

46,920

$

46,920

Accounts payable

 

89,961

 

118,917

Accrued compensation and benefits

 

338,760

 

290,274

Other accrued expenses and current liabilities

 

293,518

 

235,611

Total current liabilities

 

769,159

 

691,722

 
Long-term debt, net of current portion

 

1,357,519

 

1,618,093

Other long-term liabilities

 

754,484

 

405,562

Total liabilities

 

2,881,162

 

2,715,377

 
Shareholders' equity

 

2,661,310

 

2,371,466

Total liabilities and shareholders' equity

$

5,542,472

$

5,086,843

 
Selected Financial Data (Continued)
 
CACI International Inc
Condensed Consolidated Statements of Cash Flows (Unaudited)
(Amounts in thousands)
 
Twelve Months Ended

6/30/2020

6/30/2019

CASH FLOWS FROM OPERATING ACTIVITIES:
Net income

$

321,480

 

$

265,604

 

Reconciliation of net income to net cash provided by operating
activities:
 
Depreciation and amortization

 

110,688

 

 

85,877

 

Non-cash lease expense

 

73,248

 

 

-

 

Amortization of deferred financing costs

 

2,346

 

 

2,406

 

Loss on extinguishment of debt

 

-

 

 

363

 

Loss on disposal of assets

 

190

 

 

70

 

Stock-based compensation expense

 

29,302

 

 

25,272

 

Deferred income taxes

 

17,874

 

 

(1,009

)

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

 

34,550

 

 

96,754

 

Prepaid expenses and other assets

 

(38,432

)

 

(5,372

)

Accounts payable and other accrued expenses

 

(24,406

)

 

70,692

 

Accrued compensation and benefits

 

46,769

 

 

8,387

 

Income taxes payable and receivable

 

(25,118

)

 

1,119

 

Operating lease liabilities

 

(74,928

)

 

-

 

Deferred rent

 

-

 

 

(538

)

Long-term liabilities

 

45,142

 

 

5,672

 

Net cash provided by operating activities

 

518,705

 

 

555,297

 

 
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures

 

(72,303

)

 

(47,902

)

Cash paid for business acquisitions, net of cash acquired

 

(106,226

)

 

(1,082,809

)

Other

 

-

 

 

2,729

 

Net cash used in investing activities

 

(178,529

)

 

(1,127,982

)

 
CASH FLOWS FROM FINANCING ACTIVITIES:
Net borrowings (payments) under credit facilities

 

(262,920

)

 

599,903

 

Payment of contingent consideration

 

(8,700

)

 

(616

)

Proceeds from employee stock purchase plans

 

7,432

 

 

5,702

 

Repurchases of common stock

 

(7,806

)

 

(5,838

)

Payment of taxes for equity transactions

 

(31,400

)

 

(19,595

)

Net cash provided by (used in) financing activities

 

(303,394

)

 

579,556

 

Effect of exchange rate changes on cash and cash equivalents

 

(1,574

)

 

(1,037

)

Net increase in cash and cash equivalents

 

35,208

 

 

5,834

 

Cash and cash equivalents, beginning of period

 

72,028

 

 

66,194

 

Cash and cash equivalents, end of period

$

107,236

 

$

72,028

 

Selected Financial Data (Continued)
 
Revenue by Customer Type (Unaudited)
Quarter Ended
(dollars in thousands) 6/30/2020 6/30/2019 $ Change % Change
Department of Defense

$

1,033,998

69.1

%

$

949,760

69.1

%

$

84,238

8.9

%

Federal Civilian Agencies

 

400,459

26.8

%

 

365,190

26.6

%

 

35,269

9.7

%

Commercial and other

 

61,124

4.1

%

 

58,928

4.3

%

 

2,196

3.7

%

Total

$

1,495,581

100.0

%

$

1,373,878

100.0

%

$

121,703

8.9

%

 
Twelve Months Ended
(dollars in thousands) 6/30/2020 6/30/2019 $ Change % Change
Department of Defense

$

3,999,261

69.9

%

$

3,489,854

70.0

%

$

509,407

14.6

%

Federal Civilian Agencies

 

1,467,801

25.7

%

 

1,263,681

25.3

%

 

204,120

16.2

%

Commercial and other

 

252,980

4.4

%

 

232,806

4.7

%

 

20,174

8.7

%

Total

$

5,720,042

100.0

%

$

4,986,341

100.0

%

$

733,701

14.7

%

 
Revenue by Contract Type (Unaudited)
Quarter Ended
(dollars in thousands) 6/30/2020 6/30/2019 $ Change % Change
Cost reimbursable

$

855,816

57.2

%

$

761,088

55.4

%

$

94,728

12.4

%

Fixed price

 

416,896

27.9

%

 

410,174

29.9

%

 

6,722

1.6

%

Time and materials

 

222,869

14.9

%

 

202,616

14.7

%

 

20,253

10.0

%

Total

$

1,495,581

100.0

%

$

1,373,878

100.0

%

$

121,703

8.9

%

 
Twelve Months Ended
(dollars in thousands) 6/30/2020 6/30/2019 $ Change % Change
Cost reimbursable

$

3,274,707

57.2

%

$

2,764,291

55.4

%

$

510,416

18.5

%

Fixed price

 

1,629,475

28.5

%

 

1,465,559

29.4

%

 

163,916

11.2

%

Time and materials

 

815,860

14.3

%

 

756,491

15.2

%

 

59,369

7.8

%

Total

$

5,720,042

100.0

%

$

4,986,341

100.0

%

$

733,701

14.7

%

 
Revenue Generated as a Prime versus Subcontractor (Unaudited)
Quarter Ended
(dollars in thousands) 6/30/2020 6/30/2019 $ Change % Change
Prime

$

1,371,739

91.7

%

$

1,250,903

91.0

%

$

120,836

9.7

%

Subcontractor

 

123,842

8.3

%

 

122,975

9.0

%

 

867

0.7

%

Total

$

1,495,581

100.0

%

$

1,373,878

100.0

%

$

121,703

8.9

%

 
Twelve Months Ended
(dollars in thousands) 6/30/2020 6/30/2019 $ Change % Change
Prime

$

5,221,300

91.3

%

$

4,586,330

92.0

%

$

634,970

13.9

%

Subcontractor

 

498,742

8.7

%

 

400,011

8.0

%

 

98,731

24.7

%

Total

$

5,720,042

100.0

%

$

4,986,341

100.0

%

$

733,701

14.7

%

 
 
Contract Awards Received (Unaudited)
Quarter Ended
(dollars in thousands) 6/30/2020 6/30/2019 $ Change % Change
Contract Awards

$

3,387,343

$

3,743,062

$

(355,719

)

-9.5

%

 
Twelve Months Ended
(dollars in thousands) 6/30/2020 6/30/2019 $ Change % Change
Contract Awards

$

11,564,085

$

10,255,414

$

1,308,671

 

12.8

%

Reconciliation of Net Cash Provided by Operating Activities to
Net Cash Provided by Operating Activities Excluding MARPA Facility
(Unaudited)

The Company defines net cash provided by operating activities excluding CACI's Master Accounts Receivable Purchase Agreement (MARPA) as net cash provided by operating activities calculated in accordance with GAAP, adjusted to exclude net cash received from CACI's MARPA for the sale of certain designated eligible U.S. government receivables. Under the MARPA, the Company can sell eligible receivables, including certain billed and unbilled receivables up to a maximum amount of $200.0 million. The Company provides net cash provided by operating activities excluding MARPA to allow investors to more easily compare current period results to prior period results and to results of our peers. This non-GAAP measure should not be considered in isolation or as a substitute for performance measures prepared in accordance with GAAP.

Quarter
Ended
Quarter
Ended
Twelve
Months Ended
Twelve
Months
Ended
(dollars in thousands) 6/30/2020 6/30/2019 6/30/2020 6/30/2019
Net cash provided by operating activities

$

160,880

 

$

102,456

$

518,705

 

$

555,297

 

Cash used (provided) by MARPA

 

(6,501

)

 

7,473

 

(7,473

)

 

(192,527

)

Net cash provided by operating activities excluding MARPA

$

154,379

 

$

109,929

$

511,232

 

$

362,770

 

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

The Company views Adjusted EBITDA and Adjusted 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. 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 expense, including depreciation within direct costs, 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. 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) 6/30/2020 6/30/2019 % Change 6/30/2020 6/30/2019 % Change
Net income

$

93,731

 

$

50,030

 

87.3

%

$

321,480

 

$

265,604

 

21.0

%

Plus:
Income taxes

 

29,498

 

 

12,881

 

129.0

%

 

80,157

 

 

62,305

 

28.7

%

Interest income and expense, net

 

10,447

 

 

18,185

 

-42.6

%

 

56,059

 

 

49,958

 

12.2

%

Depreciation and amortization expense, including depreciation within direct costs

 

29,264

 

 

27,691

 

5.7

%

 

112,889

 

 

88,603

 

27.4

%

Earnout adjustments

 

-

 

 

700

 

-100.0

%

 

3,000

 

 

1,000

 

200.0

%

Adjusted EBITDA

$

162,940

 

$

109,487

 

48.8

%

$

573,585

 

$

467,470

 

22.7

%

 
Quarter Ended Twelve Months Ended
(dollars in thousands) 6/30/2020 6/30/2019 % Change 6/30/2020 6/30/2019 % Change
Revenue, as reported

$

1,495,581

 

$

1,373,878

 

8.9

%

$

5,720,042

 

$

4,986,341

 

14.7

%

Adjusted EBITDA

 

162,940

 

 

109,487

 

48.8

%

 

573,585

 

 

467,470

 

22.7

%

Adjusted EBITDA margin

 

10.9

%

 

8.0

%

 

10.0

%

 

9.4

%

 


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PayBito has successfully added thousands of new Indian users in the last three months creating a milestone. Throughout the last few months, the company has been witnessing a significant increase in traffic, constant surges in trading volume, and new...

at 02:00
Qi Card today announced that it has seen increases in two important metrics for the company: in-app usage among current card holders and issuance of new Master Qi Cards. By the close of 2020, Qi Card will have five times more Master Cards in...

at 02:00
GetLinked® reviewed the features most commonly praised by customers in a recent survey. In doing the survey we found that what drives our customer retention is directly related to our mission to save our clients time, money and headaches. Saving time...

25 sep 2020
Former Attorney General of Louisiana, Charles C. Foti, Jr., Esq., a partner at the law firm of Kahn Swick & Foti, LLC ("KSF"), announces that KSF has commenced an investigation into Vaxart, Inc. . In early 2020, the Company, which focuses on...



News published on 12 august 2020 at 16:20 and distributed by: