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CACI Reports Results for Its Fiscal 2023 Second Quarter

Business Wire 25-Jan-2023 4:15 PM

Revenues of $1.6 billion, 11% YoY growth

Net income of $87.1 million and Diluted EPS of $3.68

Adjusted net income of $101.3 million and Adjusted diluted EPS of $4.28

CACI International Inc ((CACI), a leading provider of expertise and technology to government enterprise and mission customers, announced results today for its fiscal second quarter ended December 31, 2022.

John Mengucci, CACI President and Chief Executive Officer, said, "CACI delivered strong growth, profitability, and contract awards in our second quarter and first half. We are successfully executing our strategy, making the right investments, hiring and retaining top talent, winning new work, and managing the business efficiently. We remain confident in our full-year outlook and our ability to deliver value to both our customers and our shareholders."

Second Quarter Results

 

Three Months Ended

 

(in millions, except earnings per share and DSO)

12/31/2022

12/31/2021

% Change

Revenues

$1,649.4

$1,485.8

11.0%

Income from operations

$130.9

$124.1

5.4%

Net income

$87.1

$90.3

-3.5%

Adjusted net income, a non-GAAP measure1

$101.3

$103.6

-2.3%

Diluted earnings per share

$3.68

$3.83

-3.9%

Adjusted diluted earnings per share, a non-GAAP measure1

$4.28

$4.39

-2.5%

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

$168.4

$158.0

6.6%

Net cash provided by operating activities excluding MARPA1

$22.0

$128.9

-82.9%

Free cash flow, a non-GAAP measure1

$9.1

$117.4

-92.3%

Days sales outstanding (DSO)2

51

53

 

(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, 2022 and 2021 exclude the impact of the Company's Master Accounts Receivable Purchase Agreement (MARPA), which was 8 days and 8 days, respectively.

Revenues in the second quarter of fiscal year 2023 increased 11 percent year-over-year, driven by 6 percent organic growth as well as acquisitions completed within the prior 12 months. The increase in income from operations was driven by higher revenue and gross profit. Diluted earnings per share and adjusted diluted earnings per share decreased due to higher interest expense and a higher tax rate, partially offset by higher income from operations. Net cash provided by operating activities excluding MARPA and free cash flow decreased due higher cash tax payments, including a $46 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 $3.5 billion, with approximately 70 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 awarded a mission expertise contract to provide network and exploitation analysis for an Intelligence Community (IC) customer's foreign intelligence and cybersecurity missions. CACI recognized approximately $1.5 billion in second quarter awards and backlog based on currently identified requirements.
  • CACI was awarded the Defense Counterintelligence and Security Agency (DCSA) Background Investigation Fieldwork Services Contract to provide background investigation capabilities to the DCSA. The five-year, single-award, indefinite-delivery, indefinite-quantity contract is valued at $2.25 billion. CACI recognized approximately $1.2 billion in second quarter awards and backlog based on prior and expected case volumes. CACI has a long-standing partnership with the DCSA and has supported national security by performing security clearance background investigations for three previous, consecutive iterations of the contract. Under this enterprise technology contract, more than 1,000 of CACI's background investigators will conduct these initial investigations and periodic reinvestigations nationwide assisting DCSA with over two million background investigations per year.
  • CACI was awarded a single-award prime contract worth up to $284 million by the National Security Agency (NSA) to provide mission expertise and systems engineering support for NSA's Cybersecurity Directorate. Under the five-year contract, CACI will help to modernize NSA's systems engineering practices across their extended enterprise.

Total backlog as of December 31, 2022 was $26.5 billion compared with $24.1 billion a year ago, an increase of 10 percent. Funded backlog as of December 31, 2022 was $3.2 billion compared with $3.1 billion a year ago, an increase of 3 percent.

Additional Highlights

  • CACI was named to the Forbes 2022 list of America's Best Employers for Veterans. This is CACI's third consecutive year being named to the list. Approximately 38% percent of CACI's employees are veterans, military spouses, or current members of the National Guard and Reserves. The list honors the 200 companies that received the highest scores based on a survey of more than 5,000 American veterans who have served in the U.S. Armed Forces. Survey participants work either part- or full-time for companies with at least 1,000 employees. Companies are evaluated based on working conditions, diversity and inclusion, and other factors.
  • CACI's Vice President of Optical and Photonics Systems, Linda Braun, Ph.D., recently won the 2022 Pinnacle Award for Space Industry Executive of the Year for a public company by WashingtonExec. Under Braun's leadership, CACI is one of the few companies that can deliver hardware solutions across low earth orbits (LEO), medium earth orbits (MEO), and geosynchronous equatorial orbits (GEO), as well as airborne and land applications.
  • CACI joined the Red Hat Embedded Partner Program to deliver an enterprise scalable, Commercial Solutions for Classified (CSfC) mobility solution using CACI's Archon product line with Red Hat Enterprise Linux as a foundation to provide a sophisticated customer experience. As both a CSfC Trusted Integrator and CSfC Solution Provider, CACI's Archon offers capabilities that enable secure remote access to classified environments with turnkey onboarding and administration.
  • CACI's Chairman of the Board of Directors, Michael A. Daniels, was named the 2022 Hall of Fame Honoree by the Northern Virginia Chamber of Commerce (Northern Virginia Chamber) and the Professional Services Council (PSC) during the 20th Annual Awards Gala. Daniels was selected for his extensive executive experience in the technology industry and for his leadership in advancing government contracting.
  • CACI launched a partnership with the U.S. Naval Academy Foundation in honor of Dr. J.P. (Jack) London to advance and create an enduring Electromagnetic Spectrum (EMS) program designed to prepare midshipmen for evolving electronic warfare and electromagnetic threats to national security. Through this partnership, CACI will contribute its expertise as guest speakers, provide advanced EW technology/equipment, mentor capstone projects, and continue its intern program with the academy to assist in the development of USNA EMS studies.

Fiscal Year 2023 Guidance

The table below summarizes our fiscal year 2023 guidance and represents our views as of January 25, 2023. Free cash flow guidance now incorporates a previously-disclosed $95M reduction as a result of Section 174 of the Tax Cuts and Jobs Act of 2017 not being changed or repealed.

(in millions, except earnings per share)

Fiscal Year 2023

Current Guidance

Prior Guidance

Revenues

$6,475 - $6,675

$6,475 - $6,675

Adjusted net income, a non-GAAP measure1

$420 - $440

$420 - $440

Adjusted diluted earnings per share, a non-GAAP measure1

$17.65 - $18.49

$17.65 - $18.49

Diluted weighted average shares

23.8

23.8

Free cash flow, a non-GAAP measure2

at least $320

at least $415

(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. Current fiscal year 2023 free cash flow guidance now assumes $95 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 26, 2023 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

CACI's approximately 22,000 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 International Inc

Condensed Consolidated Statements of Operations (Unaudited)

(in thousands, except per share data)

 

 

Three Months Ended

 

 

 

Six Months Ended

 

 

 

12/31/2022

 

12/31/2021

 

% Change

 

12/31/2022

 

12/31/2021

 

% Change

Revenues

$

1,649,416

 

$

1,485,778

 

11.0

%

 

$

3,255,175

 

$

2,976,676

 

9.4

%

Costs of revenues:

 

 

 

 

 

 

 

 

 

 

 

Direct costs

 

1,094,314

 

 

974,018

 

12.4

%

 

 

2,150,086

 

 

1,948,189

 

10.4

%

Indirect costs and selling expenses

 

388,303

 

 

354,977

 

9.4

%

 

 

770,384

 

 

712,083

 

8.2

%

Depreciation and amortization

 

35,932

 

 

32,676

 

10.0

%

 

 

71,035

 

 

65,268

 

8.8

%

Total costs of revenues:

 

1,518,549

 

 

1,361,671

 

11.5

%

 

 

2,991,505

 

 

2,725,540

 

9.8

%

Income from operations

 

130,867

 

 

124,107

 

5.4

%

 

 

263,670

 

 

251,136

 

5.0

%

Interest expense and other, net

 

19,942

 

 

11,009

 

81.1

%

 

 

36,135

 

 

21,407

 

68.8

%

Income before income taxes

 

110,925

 

 

113,098

 

-1.9

%

 

 

227,535

 

 

229,729

 

-1.0

%

Income taxes

 

23,824

 

 

22,799

 

4.5

%

 

 

51,309

 

 

51,321

 

0.0

%

Net income

$

87,101

 

$

90,299

 

-3.5

%

 

$

176,226

 

$

178,408

 

-1.2

%

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

$

3.71

 

$

3.86

 

-3.9

%

 

$

7.51

 

$

7.60

 

-1.2

%

Diluted earnings per share

$

3.68

 

$

3.83

 

-3.9

%

 

$

7.44

 

$

7.52

 

-1.1

%

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares used in per share computations:

 

 

 

 

 

 

 

Basic

 

23,506

 

 

23,399

 

0.5

%

 

 

23,463

 

 

23,480

 

-0.1

%

Diluted

 

23,676

 

 

23,598

 

0.3

%

 

 

23,677

 

 

23,722

 

-0.2

%

CACI International Inc

Condensed Consolidated Balance Sheets (Unaudited)

(in thousands)

 

 

 

 

 

 

12/31/2022

 

6/30/2022

 

ASSETS

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

$

114,738

 

$

114,804

 

Accounts receivable, net

 

868,629

 

 

926,144

 

Prepaid expenses and other current assets

 

191,811

 

 

168,690

 

Total current assets

 

1,175,178

 

 

1,209,638

 

 

 

 

 

 

Goodwill

 

4,063,834

 

 

4,058,291

 

Intangible assets, net

 

543,058

 

 

581,385

 

Property, plant and equipment, net

 

195,567

 

 

205,622

 

Operating lease right-of-use assets

 

301,012

 

 

317,359

 

Supplemental retirement savings plan assets

 

95,752

 

 

96,114

 

Accounts receivable, long-term

 

11,843

 

 

10,199

 

Other long-term assets

 

168,305

 

 

150,823

 

Total assets

$

6,554,549

 

$

6,629,431

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

Current liabilities:

 

 

 

 

Current portion of long-term debt

$

30,625

 

$

30,625

 

Accounts payable

 

270,768

 

 

303,443

 

Accrued compensation and benefits

 

345,779

 

 

405,722

 

Other accrued expenses and current liabilities

 

334,476

 

 

287,571

 

Total current liabilities

 

981,648

 

 

1,027,361

 

 

 

 

 

 

Long-term debt, net of current portion

 

1,534,961

 

 

1,702,148

 

Supplemental retirement savings plan obligations, net of current portion

 

103,512

 

 

102,127

 

Deferred income taxes

 

273,626

 

 

356,841

 

Operating lease liabilities, noncurrent

 

296,637

 

 

315,315

 

Other long-term liabilities

 

113,919

 

 

72,096

 

Total liabilities

 

3,304,303

 

 

3,575,888

 

 

 

 

 

 

Total shareholders' equity

 

3,250,246

 

 

3,053,543

 

Total liabilities and shareholders' equity

$

6,554,549

 

$

6,629,431

 

CACI International Inc

Condensed Consolidated Statements of Cash Flows (Unaudited)

(in thousands)

 

 

 

 

 

 

Six Months Ended

 

 

12/31/2022

 

12/31/2021

 

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

Net income

$

176,226

 

 

$

178,408

 

 

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

Depreciation and amortization

 

71,035

 

 

 

65,268

 

 

Amortization of deferred financing costs

 

1,126

 

 

 

1,147

 

 

Loss on extinguishment of debt

 

-

 

 

 

891

 

 

Non-cash lease expense

 

34,909

 

 

 

33,943

 

 

Stock-based compensation expense

 

20,196

 

 

 

14,698

 

 

Deferred income taxes

 

(48,320

)

 

 

(1,962

)

 

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

Accounts receivable, net

 

55,518

 

 

 

72,650

 

 

Prepaid expenses and other assets

 

(30,322

)

 

 

(24,701

)

 

Accounts payable and other accrued expenses

 

28,157

 

 

 

39,535

 

 

Accrued compensation and benefits

 

(59,917

)

 

 

(89,752

)

 

Income taxes payable and receivable

 

(5,110

)

 

 

46,402

 

 

Operating lease liabilities

 

(40,050

)

 

 

(34,169

)

 

Long-term liabilities

 

3,642

 

 

 

6,407

 

 

Net cash provided by operating activities

 

207,090

 

 

 

308,765

 

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

Capital expenditures

 

(25,670

)

 

 

(21,632

)

 

Acquisitions of businesses, net of cash acquired

 

-

 

 

 

(609,356

)

 

Other

 

-

 

 

 

923

 

 

Net cash used in investing activities

 

(25,670

)

 

 

(630,065

)

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

Proceeds from borrowings under bank credit facilities

 

1,101,500

 

 

 

1,735,095

 

 

Principal payments made under bank credit facilities

 

(1,269,813

)

 

 

(1,356,230

)

 

Payment of financing costs under bank credit facilities

 

-

 

 

 

(6,286

)

 

Proceeds from employee stock purchase plans

 

5,288

 

 

 

5,221

 

 

Repurchases of common stock

 

(5,286

)

 

 

(4,995

)

 

Payment of taxes for equity transactions

 

(13,269

)

 

 

(13,956

)

 

Net cash (used in) provided by financing activities

 

(181,580

)

 

 

358,849

 

 

Effect of exchange rate changes on cash and cash equivalents

 

94

 

 

 

(1,477

)

 

Net change in cash and cash equivalents

 

(66

)

 

 

36,072

 

 

Cash and cash equivalents, beginning of period

 

114,804

 

 

 

88,031

 

 

Cash and cash equivalents, end of period

$

114,738

 

 

$

124,103

 

 

Revenues by Customer Group (Unaudited)

 

 

 

 

 

 

 

 

Three Months Ended

 

 

(in thousands)

12/31/2022

12/31/2021

$ Change

% Change

Department of Defense

$

1,160,060

70.4

%

$

1,037,014

69.8

%

$

123,046

11.9

%

Federal Civilian Agencies

 

399,768

24.2

%

 

371,897

25.0

%

 

27,871

7.5

%

Commercial and other

 

89,588

5.4

%

 

76,867

5.2

%

 

12,721

16.5

%

Total

$

1,649,416

100.0

%

$

1,485,778

100.0

%

$

163,638

11.0

%

 

 

 

 

 

 

 

 

Six Months Ended

 

 

(in thousands)

12/31/2022

12/31/2021

$ Change

% Change

Department of Defense

$

2,255,380

69.3

%

$

2,037,141

68.4

%

$

218,239

10.7

%

Federal Civilian Agencies

 

823,855

25.3

%

 

785,561

26.4

%

 

38,294

4.9

%

Commercial and other

 

175,940

5.4

%

 

153,974

5.2

%

 

21,966

14.3

%

Total

$

3,255,175

100.0

%

$

2,976,676

100.0

%

$

278,499

9.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues by Contract Type (Unaudited)

 

 

 

 

 

 

 

 

Three Months Ended

 

 

(in thousands)

12/31/2022

12/31/2021

$ Change

% Change

Cost-plus-fee

$

953,344

57.8

%

$

889,358

59.8

%

$

63,986

7.2

%

Fixed price

 

509,356

30.9

%

 

433,290

29.2

%

 

76,066

17.6

%

Time and materials

 

186,716

11.3

%

 

163,130

11.0

%

 

23,586

14.5

%

Total

$

1,649,416

100.0

%

$

1,485,778

100.0

%

$

163,638

11.0

%

 

 

 

 

 

 

 

 

Six Months Ended

 

 

(in thousands)

12/31/2022

12/31/2021

$ Change

% Change

Cost-plus-fee

$

1,888,090

58.1

%

$

1,783,071

59.9

%

$

105,019

5.9

%

Fixed price

 

991,129

30.4

%

 

840,995

28.3

%

 

150,134

17.9

%

Time and materials

 

375,956

11.5

%

 

352,610

11.8

%

 

23,346

6.6

%

Total

$

3,255,175

100.0

%

$

2,976,676

100.0

%

$

278,499

9.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues by Prime or Subcontractor (Unaudited)

 

 

 

 

 

 

 

 

Three Months Ended

 

 

(in thousands)

12/31/2022

12/31/2021

$ Change

% Change

Prime

$

1,460,839

88.6

%

$

1,335,846

89.9

%

$

124,993

9.4

%

Subcontractor

 

188,577

11.4

%

 

149,932

10.1

%

 

38,645

25.8

%

Total

$

1,649,416

100.0

%

$

1,485,778

100.0

%

$

163,638

11.0

%

 

 

 

 

 

 

 

 

Six Months Ended

 

 

(in thousands)

12/31/2022

12/31/2021

$ Change

% Change

Prime

$

2,911,149

89.4

%

$

2,677,405

89.9

%

$

233,744

8.7

%

Subcontractor

 

344,026

10.6

%

 

299,271

10.1

%

 

44,755

15.0

%

Total

$

3,255,175

100.0

%

$

2,976,676

100.0

%

$

278,499

9.4

%

 

 

 

 

 

 

 

Revenues by Expertise or Technology (Unaudited)

 

 

 

 

 

 

 

 

Three Months Ended

 

 

(in thousands)

12/31/2022

12/31/2021

$ Change

% Change

Expertise

$

741,620

45.0

%

$

686,309

46.2

%

$

55,311

8.1

%

Technology

 

907,796

55.0

%

 

799,469

53.8

%

 

108,327

13.5

%

Total

$

1,649,416

100.0

%

$

1,485,778

100.0

%

$

163,638

11.0

%

 

 

 

 

 

 

 

 

Six Months Ended

 

 

(in thousands)

12/31/2022

12/31/2021

$ Change

% Change

Expertise

$

1,475,823

45.3

%

$

1,389,355

46.7

%

$

86,468

6.2

%

Technology

 

1,779,352

54.7

%

 

1,587,321

53.3

%

 

192,031

12.1

%

Total

$

3,255,175

100.0

%

$

2,976,676

100.0

%

$

278,499

9.4

%

Contract Awards (Unaudited)

 

 

 

 

 

 

Three Months Ended

 

 

(in thousands)

12/31/2022

12/31/2021

$ Change

% Change

Contract Awards

$

3,488,834

$

1,952,672

$

1,536,162

78.7

%

 

 

 

 

 

 

Six Months Ended

 

 

(in thousands)

12/31/2022

12/31/2021

$ Change

% Change

Contract Awards

$

6,734,457

$

4,340,641

$

2,393,816

55.1

%

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 core 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

 

 

 

 

12/31/2022

12/31/2021

% Change

 

12/31/2022

12/31/2021

% Change

 

 

Net income, as reported

 

$

87,101

 

$

90,299

 

-3.5

%

 

$

176,226

 

$

178,408

 

 

-1.2

%

 

 

Intangible amortization expense

 

 

19,109

 

 

18,054

 

5.8

%

 

 

38,223

 

 

35,647

 

 

7.2

%

 

 

Tax effect of intangible amortization1

 

(4,949

)

 

(4,747

)

4.3

%

 

 

(9,899

)

 

(9,373

)

 

5.6

%

 

 

Adjusted net income

 

$

101,261

 

$

103,606

 

-2.3

%

 

$

204,550

 

$

204,682

 

 

-0.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

 

 

 

12/31/2022

12/31/2021

% Change

 

12/31/2022

12/31/2021

% Change

 

 

Diluted EPS, as reported

 

$

3.68

 

$

3.83

 

-3.9

%

 

$

7.44

 

$

7.52

 

 

-1.1

%

 

 

Intangible amortization expense

 

 

0.81

 

 

0.77

 

5.2

%

 

 

1.61

 

 

1.50

 

 

7.3

%

 

 

Tax effect of intangible amortization1

 

(0.21

)

 

(0.21

)

0.0

%

 

 

(0.41

)

 

(0.39

)

 

5.1

%

 

 

Adjusted diluted EPS

 

$

4.28

 

$

4.39

 

-2.5

%

 

$

8.64

 

$

8.63

 

 

0.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

(in millions, except per share data)

 

 

 

FY23 Guidance Range

 

 

 

 

 

 

 

 

Low End

 

High End

 

 

Net income, as reported

 

 

 

 

 

$

364

 

 

---

 

$

384

 

 

 

Intangible amortization expense

 

 

 

 

 

 

75

 

 

---

 

 

75

 

 

 

Tax effect of intangible amortization1

 

 

 

 

(19

)

 

---

 

 

(19

)

 

 

Adjusted net income

 

 

 

 

 

$

420

 

 

---

 

$

440

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FY23 Guidance Range

 

 

 

 

 

 

 

 

Low End

 

High End

 

 

Diluted EPS, as reported

 

 

 

 

 

$

15.29

 

 

---

 

$

16.13

 

 

 

Intangible amortization expense

 

 

 

 

 

 

3.15

 

 

---

 

 

3.15

 

 

 

Tax effect of intangible amortization1

 

 

 

 

(0.80

)

 

---

 

 

(0.80

)

 

 

Adjusted diluted EPS

 

 

 

 

 

$

17.65

 

 

---

 

$

18.49

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Calculation uses an assumed full year statutory tax rate of 25.9% and 26.3% on non-GAAP tax deductible adjustments for December 31, 2022 and 2021, respectively.

 

Note: Numbers may not sum due to rounding.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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.

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

(in thousands)

12/31/2022

12/31/2021

% Change

 

 

12/31/2022

12/31/2021

% Change

 

 

Net income

$

87,101

$

90,299

-3.5

%

 

 

$

176,226

$

178,408

-1.2

%

 

 

Plus:

 

 

 

 

 

 

 

 

 

 

Income taxes

 

23,824

 

22,799

4.5

%

 

 

 

51,309

 

51,321

0.0

%

 

 

Interest income and expense, net

 

19,942

 

11,009

81.1

%

 

 

 

36,135

 

21,407

68.8

%

 

 

Depreciation and amortization expense, including amounts within direct costs

 

37,582

 

33,918

10.8

%

 

 

 

74,813

 

67,829

10.3

%

 

 

Adjusted EBITDA

$

168,449

$

158,025

6.6

%

 

 

$

338,483

$

318,965

6.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

(in thousands)

12/31/2022

12/31/2021

% Change

 

 

12/31/2022

12/31/2021

% Change

 

 

Revenues, as reported

$

1,649,416

$

1,485,778

11.0

%

 

 

$

3,255,175

$

2,976,676

9.4

%

 

 

Adjusted EBITDA

 

168,449

 

158,025

6.6

%

 

 

 

338,483

 

318,965

6.1

%

 

 

Adjusted EBITDA margin

 

10.2%

 

10.6%

 

 

 

 

10.4%

 

10.7%

 

 

 

 

 

 

 

 

 

 

 

 

 

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 $200.0 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)

12/31/2022

12/31/2021

 

12/31/2022

12/31/2021

 

Net cash provided by operating activities

$

62,247

 

$

122,812

 

 

$

207,090

 

$

308,765

 

 

Cash used in (provided by) MARPA

 

(40,273

)

 

6,038

 

 

 

(42,177

)

 

(5,451

)

 

Net cash provided by operating activities excluding MARPA

 

21,974

 

 

128,850

 

 

 

164,913

 

 

303,314

 

 

Capital expenditures

 

(12,899

)

 

(11,429

)

 

 

(25,670

)

 

(21,632

)

 

Free cash flow

$

9,075

 

$

117,421

 

 

$

139,243

 

$

281,682

 

 

 

 

 

 

 

 

 

 

 

 

 

FY23 Guidance

 

(in millions)

 

 

 

Current

Prior

 

Net cash provided by operating activities

 

 

 

$

400

 

$

495

 

 

Cash used in (provided by) MARPA

 

 

 

 

-

 

 

-

 

 

Net cash provided by operating activities excluding MARPA

 

 

 

400

 

 

495

 

 

Capital expenditures

 

 

 

 

(80

)

 

(80

)

 

Free cash flow

 

 

 

$

320

 

$

415

 

 

 

 

 

 

 

 

 

 

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