[August 17, 2016] |
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CACI Reports Results for Its Fiscal 2016 Fourth Quarter and Full Year
CACI International Inc (NYSE
MKT: CACI), a leading information solutions and services provider to
the federal government, announced results today for its full year and
fourth fiscal quarter ended June 30, 2016.
CEO Commentary and Outlook
Ken Asbury, CACI's President and CEO, said, "We have completed an
excellent year for CACI, delivering positive top and bottom line growth.
Revenue, net income, and cash flow increased as a result of strong
contract performance and the acquisition of the National Security
Solutions business. Our awards this quarter reflect our customers'
demand for higher-end solutions and services, and more closely align us
with their most critical missions. Our Fiscal Year 2016 (FY16) finish
positions us well as we start Fiscal Year 2017."
Fourth Quarter Results
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(in millions except per-share data)
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Q4, FY16
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Q4, FY15
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% Change
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Revenue
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$1,113.9
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$865.5
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28.7%
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Operating income
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$81.1
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$75.1
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8.0%
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Net income attributable to CACI
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$43.6
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$41.4
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5.4%
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Diluted earnings per share
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$1.75
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$1.68
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4.1%
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Revenue for the fourth quarter of FY16 increased compared to the fourth
quarter of Fiscal Year 2015 (FY15) driven by acquired revenue from the
National Security Solutions (NSS) acquisition. The higher operating
income was also due to the contribution of the NSS acquisition. The
increase in net income was due to the factors noted above as well as a
lower effective tax rate in the quarter. Cash provided by operations in
the quarter was $53.2 million.
In our fourth quarter, we adopted a new accounting standard issued by
the Financial Accounting Standards Board that modifies several aspects
of the accounting for share-based payments, including income tax
consequences and classification on the statement of cash flows. The
guidance is effective for our current fiscal year and interim periods
within it. As a result, we recognized certain excess tax benefits as an
increase to net income attributable to CACI and cash flows from
operating activities of $0.2 million ($0.01 per share) during the
quarter. (See Adoption of ASU 2016-09, Improvements to Employee
Share-based Payment Accounting on page 12 of this release.) Previous
to the adoption of the new standard, the tax benefit was recognized in
additional paid-in capital on the balance sheet and cash flows from
financing activities on the statement of cash flows.
During our fourth quarter, NSS generated $255.3 million of revenue and
$13.1 million of net income. NSS's net income includes $1.6 million of
after-tax acquisition-related intangible amortization, and does not
include any interest expense on the debt incurred to finance the
acquisition.
Additional Financial Metrics
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Q4, FY16
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Q4, FY15
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% Change
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Adjusted earnings before interest, taxes, depreciation and
amortization (EBITDA), a non-GAAP measure (in millions)
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$100.1
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$91.4
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9.5%
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Diluted adjusted earnings per share, a non-GAAP measure
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$2.35
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2.19
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7.5%
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Days sales outstanding
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62
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60
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Fourth Quarter Awards, Contract Funding Orders, Other Highlights, and
Subsequent Events
Our contract awards in the quarter were $1.6 billion, more than double
the awards received in the same quarter a year ago, and $5.3 billion for
the full year. Over half of our awards in the quarter were for new
business, and approximately one-third of our awards in the year were for
new business. These award values exclude ceiling values of multi-award
IDIQ contracts.
Key awards during the quarter included:
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A prime position on a $460 million, five-year, multiple award IDIQ
contract to provide mission support to the U.S. Cyber Command. This
contract represents new work in our Cyber
Security market area.
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A $164 million, five-year award to provide cyber mission operations
support, network engineering and analysis, computer forensics, and
wireless communications for a customer in the Intelligence Community.
This represents new and continued work in our Intelligence
Services and Cyber
Security market areas.
-
A $60.7 million, three-year task order to continue support for
modernizing the Naval Tactical Command Support System for the Space
and Naval Warfare Systems Command. This task order, awarded under the
Navy's Business and Force Support Pillar, represents continued work in
our Business
Systems market area.
-
A $50 million, five-year task order to continue providing program
management and financial support services to the Naval Surface Warfare
Center's Warfare Systems Program Office. Awarded under the SeaPort-e
contract vehicle, the task order increases both the size and scope of
our business with this customer and expands our presence in our Business
Systems and Surveillance
and Reconnaissance market areas.
-
Three other awards received in the quarter, totaling approximately
$600 million, are currently under protest. We are confident that these
awards will be adjudicated in our favor.
Contract funding orders in the fourth quarter were a record $1.1
billion, an increase of 30.0 percent over the fourth quarter of FY15.
Contract funding orders for FY16 were a record $4.1 billion, a 9.8
percent increase over FY15. Total backlog at June 30, 2016 increased a
net of 14.7 percent to $11.0 billion compared with $9.6 billion at the
end of FY15. As we prepare for the required adoption of the new ASC 606
revenue recognition standard in our Fiscal Year 2019 (FY19), which
includes mandatory backlog reporting, we have reviewed our backlog
reporting processes and definitions. As a result, we have made some
modifications and reduced our backlog on a number of programs for which
we deemed it unlikely that we will realize further revenue. This has
resulted in a $2.5 billion reduction in total backlog, of which $0.4
billion was in funded backlog. Funded backlog at June 30, 2016 increased
a net of 14.4 percent to $2.3 billion compared with $2.0 billion at June
30, 2015.
CACI was ranked ninth on Washington Technology's annual Top 100
Federal Prime Contractors list. Our rising placement reflects CACI's
success as an employer of choice for the industry's top professionals
and our strategy to acquire companies that align with our growth goals
and ethical culture.
CACI was again named to The Washington Post's 2016 Top Workplaces
based on the survey results of thousands of local-area CACI employees,
with employees from hundreds of other area companies also submitting
surveys on their organizations. This feedback from our employees
reflects the pride they take in CACI's cultural emphasis on integrity
and ethics, high expectations, and employee well-being while delivering
valuable support for our customers' most critical missions.
CACI's Logistics and Material Readiness (LMR) business was reappraised
at maturity level (ML) 5 of the CMMI Institute's Capability Maturity
Model Integration (CMMI)®. This is the third CMMI ML5 the LMR
team has received, attesting to its strong commitment to the highest
levels of process quality.
Recognizing CACI's commitment to hiring veterans, Forbes named
the company a Top Employer for Veterans and CivilianJobs.com ranked CACI
among the Most Valuable Employers for the Military.
CACI was named a Tier 1 "Superior Supplier" by the U.S. Army and U.S.
Air Force. Superior Supplier assessments are made on a
contract-by-contract basis using the Contractor Performance Assessment
Reporting System (CPARS), which government customers use to rate the
quality of their contractors' support. Only companies that consistently
earn the highest CPARS ratings achieve Tier 1 status.
Twelve Months Results
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(in millions except per-share data)
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Twelve Months,
FY16
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Twelve Months,
FY15
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% Change
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Revenue
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$3,744.1
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$3,313.5
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13.0%
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Operating income
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$264.8
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$236.4
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12.0%
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Net income attributable to CACI
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$142.8
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$126.2
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13.2%
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Diluted earnings per share
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$5.76
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$5.17
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11.3%
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The higher revenue, operating, and net income in FY16 was due primarily
to the contribution of the NSS acquisition, offset by one-time pre-tax
acquisition-related expenses of $14.0 million. Net cash provided by
operations in the 12 months of FY16 was $242.6 million.
As a result of adopting the new accounting standard for share-based
payments described above, we recognized excess tax benefits as an
increase to net income attributable to CACI and operating cash flows of
$1.2 million ($0.05 per share) in the year. (See Adoption of ASU
2016-09, Improvements to Employee Share-based Payment Accounting
on page 12 of this release.)
In FY16, NSS generated $427.2 million of revenue and $18.8 million of
net income. NSS's net income includes $2.7 million of after-tax
acquisition-related intangible amortization, and does not include any
interest expense on the debt incurred to finance the acquisition.
Additional Financial Metrics
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Twelve Months,
FY16
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Twelve Months, FY15
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% Change
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Adjusted earnings before interest, taxes, depreciation and
amortization (EBITDA), a non-GAAP measure (in millions)
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$330.4
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$303.2
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8.9%
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Diluted adjusted earnings per share, a non-GAAP measure
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$7.87
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$7.23
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8.9%
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CACI Reiterates Its FY17 Guidance
We are reiterating the FY17 guidance we issued on June 22, 2016. The
table below summarizes our FY17 guidance ranges and represents our views
as of August 17, 2016:
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(In millions except for tax rate and earnings per share)
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Fiscal Year 2017
Guidance
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Revenue
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$4,050 - $4,250
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Net income attributable to CACI
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$150 - $160
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Effective corporate tax rate
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38.0%
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Diluted earnings per share
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$6.02 - $6.43
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Diluted weighted average shares
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24.9
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Conference Call Information
We have scheduled a conference call for 8:30 AM Eastern Time Thursday,
August 18, 2016 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, or you may dial 1-888-771-4371 and enter the
confirmation code 42972057. 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 SmallCap 600 Index. CACI provides dynamic careers for over
20,000 employees worldwide. Visit www.caci.com.
There are statements made herein which do not address historical
facts and, therefore, could be interpreted to be forward-looking
statements as that term is defined in the Private Securities Litigation
Reform Act of 1995. Such statements are subject to factors that
could cause actual results to differ materially from anticipated
results. The factors that could cause actual results to differ
materially from those anticipated include, but are not limited to, the
following: 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.
Capability Maturity Model Integration and CMMI are registered marks of
Carnegie Mellon University.
CACI-Financial
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Selected Financial Data
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CACI International Inc
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Condensed Consolidated Statements of Operations (Unaudited)
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(Amounts in thousands, except per share amounts)
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Quarter Ended
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Twelve Months Ended
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6/30/2016
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6/30/2015
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% Change
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6/30/2016
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6/30/2015
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% Change
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Revenue
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$
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1,113,900
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$
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865,506
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28.7
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%
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$
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3,744,053
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$
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3,313,452
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13.0
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%
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Costs of revenue
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Direct costs
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755,580
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567,446
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33.2
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%
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2,487,633
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2,193,585
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13.4
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%
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Indirect costs and selling expenses
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258,597
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206,996
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24.9
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%
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926,918
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817,403
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13.4
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%
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Depreciation and amortization
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18,639
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15,985
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16.6
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%
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64,752
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66,083
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-2.0
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%
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Total costs of revenue
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1,032,816
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790,427
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30.7
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%
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3,479,303
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3,077,071
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13.1
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%
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Operating income
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81,084
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75,079
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8.0
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%
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264,750
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236,381
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12.0
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%
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Interest expense and other, net
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12,661
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8,605
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47.1
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%
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41,138
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|
|
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34,758
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18.4
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%
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Income before income taxes
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68,423
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66,474
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2.9
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%
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223,612
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201,623
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10.9
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%
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Income taxes1
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24,824
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25,128
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-1.2
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%
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80,813
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75,327
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7.3
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%
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Net income1
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43,599
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41,346
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5.4
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%
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142,799
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126,296
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13.1
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%
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Noncontrolling interest
|
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|
-
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38
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-
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(101
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)
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Net income attributable to CACI1
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$
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43,599
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$
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41,384
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5.4
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%
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$
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142,799
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$
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126,195
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13.2
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%
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Basic earnings per share
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$
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1.79
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$
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1.71
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4.8
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%
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$
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5.89
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$
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5.27
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11.7
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%
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Diluted earnings per share
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$
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1.75
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$
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1.68
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4.1
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%
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$
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5.76
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$
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5.17
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11.3
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%
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Weighted average shares used in per share computations:
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Basic
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24,319
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24,180
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24,262
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23,948
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Diluted
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24,900
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24,613
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24,802
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24,388
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Statement of Operations Data (Unaudited)
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Quarter Ended
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Twelve Months Ended
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6/30/2016
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6/30/2015
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% Change
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6/30/2016
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6/30/2015
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% Change
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Operating income margin
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7.3
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%
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8.7
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%
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7.1
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%
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7.1
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%
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Tax rate
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36.3
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%
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37.8
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%
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36.1
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%
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37.4
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%
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Net income margin
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3.9
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%
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4.8
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%
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3.8
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%
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3.8
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%
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Adjusted EBITDA2
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$
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100,057
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$
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91,366
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9.5
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%
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$
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330,365
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$
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303,237
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8.9
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%
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Adjusted EBITDA Margin
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9.0
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%
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10.6
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%
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8.8
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%
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9.2
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%
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Adjusted net income attributable to
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CACI2
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$
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58,591
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$
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53,867
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8.8
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%
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$
|
195,296
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|
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$
|
176,405
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|
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10.7
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%
|
Diluted adjusted earnings per share
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$
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2.35
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|
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$
|
2.19
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|
|
7.5
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%
|
|
$
|
7.87
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|
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$
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7.23
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|
|
8.9
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%
|
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1 See Adoption of Improvements to Employee Share-based
Payment Accounting on page 12.
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2 See Reconciliation of Net Income to Earnings before
Interest, Taxes, Depreciation and Amortization and to Adjusted Net
Income on page 11.
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Selected Financial Data (Continued)
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CACI International Inc
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Condensed Consolidated Balance Sheets (Unaudited)
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(Amounts in thousands)
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6/30/2016
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6/30/2015
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ASSETS:
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Current assets
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Cash and cash equivalents
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$
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49,082
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$
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35,364
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Accounts receivable, net
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803,817
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596,155
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Prepaid expenses and other current assets
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68,939
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34,591
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Total current assets
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921,838
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666,110
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Goodwill and intangible assets, net
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2,860,715
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2,384,998
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Property and equipment, net
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81,362
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63,689
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Other long-term assets
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|
|
123,426
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|
|
127,233
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Total assets
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$
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3,987,341
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$
|
3,242,030
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LIABILITIES AND SHAREHOLDERS' EQUITY:
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Current liabilities
|
|
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|
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Current portion of long-term debt
|
|
$
|
53,965
|
|
$
|
38,965
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Accounts payable
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|
|
95,270
|
|
|
56,840
|
Accrued compensation and benefits
|
|
|
228,362
|
|
|
185,830
|
Other accrued expenses and current liabilities
|
|
|
192,125
|
|
|
118,046
|
Total current liabilities
|
|
|
569,722
|
|
|
399,681
|
|
|
|
|
|
Long-term debt, net of current portion
|
|
|
1,402,079
|
|
|
1,024,599
|
Other long-term liabilities
|
|
|
408,227
|
|
|
337,478
|
Total liabilities
|
|
|
2,380,028
|
|
|
1,761,758
|
|
|
|
|
|
Shareholders' equity
|
|
|
1,607,313
|
|
|
1,480,272
|
Total liabilities and shareholders' equity
|
|
$
|
3,987,341
|
|
$
|
3,242,030
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Financial Data (Continued)
|
|
|
|
|
|
CACI International Inc
|
|
|
|
|
Condensed Consolidated Statements of Cash Flows (Unaudited)
|
|
|
|
|
(Amounts in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended
|
|
|
6/30/2016
|
|
6/30/2015
|
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
Net income
|
|
$
|
142,799
|
|
|
$
|
126,296
|
|
Reconciliation of net income to net cash provided by operating
activities:
|
|
|
|
|
Depreciation and amortization
|
|
|
64,752
|
|
|
|
66,083
|
|
Amortization of deferred financing costs
|
|
|
3,234
|
|
|
|
2,639
|
|
Stock-based compensation expense
|
|
|
17,919
|
|
|
|
14,072
|
|
Provision for deferred income taxes
|
|
|
9,022
|
|
|
|
27,022
|
|
Undistributed earnings of unconsolidated joint ventures
|
|
|
(204
|
)
|
|
|
(874
|
)
|
Changes in operating assets and liabilities, net of effect of
acquisitions:
|
|
|
|
|
Accounts receivable, net
|
|
|
(105
|
)
|
|
|
18,889
|
|
Prepaid expenses and other assets
|
|
|
(8,408
|
)
|
|
|
(2,057
|
)
|
Accounts payable and accrued expenses
|
|
|
(7,204
|
)
|
|
|
(25,807
|
)
|
Accrued compensation and benefits
|
|
|
4,320
|
|
|
|
2,776
|
|
Income taxes receivable and payable1
|
|
|
19,414
|
|
|
|
17
|
|
Other liabilities
|
|
|
(2,962
|
)
|
|
|
(2,194
|
)
|
Net cash provided by operating activities
|
|
|
242,577
|
|
|
|
226,862
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
Capital expenditures
|
|
|
(20,835
|
)
|
|
|
(17,444
|
)
|
Purchases of businesses, net of cash acquired
|
|
|
(587,821
|
)
|
|
|
(14,972
|
)
|
Investment in unconsolidated joint venture
|
|
|
-
|
|
|
|
391
|
|
Other
|
|
|
1,069
|
|
|
|
629
|
|
Net cash used in investing activities
|
|
|
(607,587
|
)
|
|
|
(31,396
|
)
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
Net borrowings (payments) under credit facilities
|
|
|
389,245
|
|
|
|
(213,451
|
)
|
Proceeds from employee stock purchase plans
|
|
|
3,086
|
|
|
|
3,287
|
|
Proceeds from exercise of stock options
|
|
|
-
|
|
|
|
691
|
|
Repurchases of common stock
|
|
|
(3,230
|
)
|
|
|
(3,400
|
)
|
Payment of taxes for equity transactions
|
|
|
(8,045
|
)
|
|
|
(7,378
|
)
|
Other1
|
|
|
451
|
|
|
|
(2,257
|
)
|
Net cash provided by (used in) financing activities
|
|
|
381,507
|
|
|
|
(222,508
|
)
|
Effect of exchange rate changes on cash and cash equivalents
|
|
|
(2,779
|
)
|
|
|
(2,055
|
)
|
Net increase (decrease) in cash and cash equivalents
|
|
|
13,718
|
|
|
|
(29,097
|
)
|
Cash and cash equivalents, beginning of year
|
|
|
35,364
|
|
|
|
64,461
|
|
Cash and cash equivalents, end of year
|
|
$
|
49,082
|
|
|
$
|
35,364
|
|
|
|
|
|
|
|
|
|
|
1 See Adoption of Improvements to Employee Share-based
Payment Accounting on page 12.
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Financial Data (Continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue by Customer Type (Unaudited)
|
|
|
Quarter Ended
|
|
|
|
|
(dollars in thousands)
|
|
6/30/2016
|
|
6/30/2015
|
|
$ Change
|
|
% Change
|
Department of Defense
|
|
$
|
714,698
|
|
64.1
|
%
|
|
$
|
576,284
|
|
66.6
|
%
|
|
$
|
138,414
|
|
|
24.0
|
%
|
Federal Civilian Agencies
|
|
|
324,787
|
|
29.2
|
%
|
|
|
236,979
|
|
27.4
|
%
|
|
|
87,808
|
|
|
37.1
|
%
|
Commercial and other
|
|
|
74,415
|
|
6.7
|
%
|
|
|
52,243
|
|
6.0
|
%
|
|
|
22,172
|
|
|
42.4
|
%
|
Total
|
|
$
|
1,113,900
|
|
100.0
|
%
|
|
$
|
865,506
|
|
100.0
|
%
|
|
$
|
248,394
|
|
|
28.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended
|
|
|
|
|
(dollars in thousands)
|
|
6/30/2016
|
|
6/30/2015
|
|
$ Change
|
|
% Change
|
Department of Defense
|
|
$
|
2,439,329
|
|
65.1
|
%
|
|
$
|
2,217,031
|
|
66.9
|
%
|
|
$
|
222,298
|
|
|
10.0
|
%
|
Federal Civilian Agencies
|
|
|
1,062,508
|
|
28.4
|
%
|
|
|
888,191
|
|
26.8
|
%
|
|
|
174,317
|
|
|
19.6
|
%
|
Commercial and other
|
|
|
242,216
|
|
6.5
|
%
|
|
|
208,230
|
|
6.3
|
%
|
|
|
33,986
|
|
|
16.3
|
%
|
Total
|
|
$
|
3,744,053
|
|
100.0
|
%
|
|
$
|
3,313,452
|
|
100.0
|
%
|
|
$
|
430,601
|
|
|
13.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue by Contract Type (Unaudited)
|
|
|
Quarter Ended
|
|
|
|
|
(dollars in thousands)
|
|
6/30/2016
|
|
6/30/2015
|
|
$ Change
|
|
% Change
|
Cost reimbursable
|
|
$
|
551,704
|
|
49.5
|
%
|
|
$
|
407,407
|
|
47.1
|
%
|
|
$
|
144,297
|
|
|
35.4
|
%
|
Fixed price
|
|
|
349,026
|
|
31.3
|
%
|
|
|
296,935
|
|
34.3
|
%
|
|
|
52,091
|
|
|
17.5
|
%
|
Time and materials
|
|
|
213,170
|
|
19.2
|
%
|
|
|
161,164
|
|
18.6
|
%
|
|
|
52,006
|
|
|
32.3
|
%
|
Total
|
|
$
|
1,113,900
|
|
100.0
|
%
|
|
$
|
865,506
|
|
100.0
|
%
|
|
$
|
248,394
|
|
|
28.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended
|
|
|
|
|
(dollars in thousands)
|
|
6/30/2016
|
|
6/30/2015
|
|
$ Change
|
|
% Change
|
Cost reimbursable
|
|
$
|
1,817,923
|
|
48.5
|
%
|
|
$
|
1,534,864
|
|
46.3
|
%
|
|
$
|
283,059
|
|
|
18.4
|
%
|
Fixed price
|
|
|
1,245,269
|
|
33.3
|
%
|
|
|
1,179,139
|
|
35.6
|
%
|
|
|
66,130
|
|
|
5.6
|
%
|
Time and materials
|
|
|
680,861
|
|
18.2
|
%
|
|
|
599,449
|
|
18.1
|
%
|
|
|
81,412
|
|
|
13.6
|
%
|
Total
|
|
$
|
3,744,053
|
|
100.0
|
%
|
|
$
|
3,313,452
|
|
100.0
|
%
|
|
$
|
430,601
|
|
|
13.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue Received as a Prime versus Subcontractor (Unaudited)
|
|
|
Quarter Ended
|
|
|
|
|
(dollars in thousands)
|
|
6/30/2016
|
|
6/30/2015
|
|
$ Change
|
|
% Change
|
Prime
|
|
$
|
1,027,582
|
|
92.3
|
%
|
|
$
|
780,187
|
|
90.1
|
%
|
|
$
|
247,395
|
|
|
31.7
|
%
|
Subcontractor
|
|
|
86,318
|
|
7.7
|
%
|
|
|
85,319
|
|
9.9
|
%
|
|
|
999
|
|
|
1.2
|
%
|
Total
|
|
$
|
1,113,900
|
|
100.0
|
%
|
|
$
|
865,506
|
|
100.0
|
%
|
|
$
|
248,394
|
|
|
28.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended
|
|
|
|
|
(dollars in thousands)
|
|
6/30/2016
|
|
6/30/2015
|
|
$ Change
|
|
% Change
|
Prime
|
|
$
|
3,421,817
|
|
91.4
|
%
|
|
$
|
2,965,683
|
|
89.5
|
%
|
|
$
|
456,134
|
|
|
15.4
|
%
|
Subcontractor
|
|
|
322,236
|
|
8.6
|
%
|
|
|
347,769
|
|
10.5
|
%
|
|
|
(25,533
|
)
|
|
-7.3
|
%
|
Total
|
|
$
|
3,744,053
|
|
100.0
|
%
|
|
$
|
3,313,452
|
|
100.0
|
%
|
|
$
|
430,601
|
|
|
13.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Financial Data (Continued)
|
|
|
|
|
|
|
|
|
|
Contract Funding Orders Received (Unaudited)
|
|
|
Quarter Ended
|
|
|
|
|
(dollars in thousands)
|
|
6/30/2016
|
|
6/30/2015
|
|
$ Change
|
|
% Change
|
Contract Funding Orders
|
|
$
|
1,133,098
|
|
$
|
871,345
|
|
$
|
261,753
|
|
30.0
|
%
|
|
|
Twelve Months Ended
|
|
|
|
|
(dollars in thousands)
|
|
6/30/2016
|
|
6/30/2015
|
|
$ Change
|
|
% Change
|
Contract Funding Orders
|
|
$
|
4,125,910
|
|
$
|
3,756,631
|
|
$
|
369,279
|
|
9.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct Costs by Category (Unaudited)
|
|
|
Quarter Ended
|
(dollars in thousands)
|
|
6/30/2016
|
|
6/30/2015
|
|
$ Change
|
|
% Change
|
Direct labor
|
|
$
|
344,927
|
|
45.7
|
%
|
|
$
|
276,326
|
|
48.7
|
%
|
|
$
|
68,601
|
|
24.8
|
%
|
Other direct costs
|
|
|
410,653
|
|
54.3
|
%
|
|
|
291,120
|
|
51.3
|
%
|
|
|
119,533
|
|
41.1
|
%
|
Total direct costs
|
|
$
|
755,580
|
|
100.0
|
%
|
|
$
|
567,446
|
|
100.0
|
%
|
|
$
|
188,134
|
|
33.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended
|
(dollars in thousands)
|
|
6/30/2016
|
|
6/30/2015
|
|
$ Change
|
|
% Change
|
Direct labor
|
|
$
|
1,197,838
|
|
48.2
|
%
|
|
$
|
1,062,882
|
|
48.5
|
%
|
|
$
|
134,956
|
|
12.7
|
%
|
Other direct costs
|
|
|
1,289,795
|
|
51.8
|
%
|
|
|
1,130,703
|
|
51.5
|
%
|
|
|
159,092
|
|
14.1
|
%
|
Total direct costs
|
|
$
|
2,487,633
|
|
100.0
|
%
|
|
$
|
2,193,585
|
|
100.0
|
%
|
|
$
|
294,048
|
|
13.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Financial Data (Continued)
|
Reconciliation of Net Income Attributable to CACI to Adjusted
Earnings Before Interest, Taxes, Depreciation and
Amortization (EBITDA) and to Adjusted Net Income Attributable to
CACI
|
(Unaudited)
|
|
The Company views Adjusted EBITDA, Adjusted EBITDA margin,
Adjusted Net Income attributable to CACI and Diluted Adjusted
Earnings Per Share, 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 attributable to CACI
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
attributable to CACI as GAAP net income attributable to CACI 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 attributable
to CACI is an important measure of long-term value and is used by
investors to measure our performance. This measure in particular
assists readers in further understanding our results and trends
from period-to-period by removing certain non-cash items that do
not impact the cash flow performance of our business. Diluted
Adjusted Earnings Per Share is Adjusted Net Income attributable
to CACI divided by diluted weighted-average shares, as
reported. Adjusted EBITDA and Adjusted Net Income attributable to
CACI 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)
|
|
6/30/2016
|
|
6/30/2015
|
|
% Change
|
|
6/30/2016
|
|
6/30/2015
|
|
% Change
|
Net income attributable to CACI, as reported
|
|
$
|
43,599
|
|
|
$
|
41,384
|
|
|
5.4
|
%
|
|
$
|
142,799
|
|
|
$
|
126,195
|
|
|
13.2
|
%
|
Plus:
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes
|
|
|
24,824
|
|
|
|
25,128
|
|
|
-1.2
|
%
|
|
|
80,813
|
|
|
|
75,327
|
|
|
7.3
|
%
|
Interest income and expense, net
|
|
|
12,636
|
|
|
|
8,869
|
|
|
42.5
|
%
|
|
|
41,342
|
|
|
|
35,632
|
|
|
16.0
|
%
|
Depreciation and amortization
|
|
|
18,639
|
|
|
|
15,985
|
|
|
16.6
|
%
|
|
|
64,752
|
|
|
|
66,083
|
|
|
-2.0
|
%
|
Earnout adjustments
|
|
|
359
|
|
|
|
-
|
|
|
|
|
|
659
|
|
|
|
-
|
|
|
|
Adjusted EBITDA
|
|
$
|
100,057
|
|
|
$
|
91,366
|
|
|
9.5
|
%
|
|
$
|
330,365
|
|
|
$
|
303,237
|
|
|
8.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
|
|
Twelve Months Ended
|
(dollars in thousands)
|
|
6/30/2016
|
|
6/30/2015
|
|
% Change
|
|
6/30/2016
|
|
6/30/2015
|
|
% Change
|
Revenue, as reported
|
|
$
|
1,113,900
|
|
|
$
|
865,506
|
|
|
28.7
|
%
|
|
$
|
3,744,053
|
|
|
$
|
3,313,452
|
|
|
13.0
|
%
|
Adjusted EBITDA
|
|
$
|
100,057
|
|
|
$
|
91,366
|
|
|
9.5
|
%
|
|
$
|
330,365
|
|
|
$
|
303,237
|
|
|
8.9
|
%
|
Adjusted EBITDA margin
|
|
|
9.0
|
%
|
|
|
10.6
|
%
|
|
|
|
|
8.8
|
%
|
|
|
9.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
|
|
Twelve Months Ended
|
(dollars in thousands)
|
|
6/30/2016
|
|
6/30/2015
|
|
% Change
|
|
6/30/2016
|
|
6/30/2015
|
|
% Change
|
Net income attributable to CACI, as reported
|
|
$
|
43,599
|
|
|
$
|
41,384
|
|
|
5.4
|
%
|
|
$
|
142,799
|
|
|
$
|
126,195
|
|
|
13.2
|
%
|
Plus:
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation
|
|
|
4,590
|
|
|
|
4,021
|
|
|
14.2
|
%
|
|
|
17,919
|
|
|
|
14,072
|
|
|
27.3
|
%
|
Depreciation and amortization
|
|
|
18,639
|
|
|
|
15,985
|
|
|
16.6
|
%
|
|
|
64,752
|
|
|
|
66,083
|
|
|
-2.0
|
%
|
Amortization of financing costs
|
|
|
1,133
|
|
|
|
577
|
|
|
96.4
|
%
|
|
|
3,234
|
|
|
|
2,639
|
|
|
22.5
|
%
|
Earn-out adjustments
|
|
|
359
|
|
|
|
-
|
|
|
|
|
|
659
|
|
|
|
-
|
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
Related tax effect
|
|
|
(9,729
|
)
|
|
|
(8,100
|
)
|
|
20.1
|
%
|
|
|
(34,067
|
)
|
|
|
(32,584
|
)
|
|
4.6
|
%
|
Adjusted net income attributable to CACI
|
|
$
|
58,591
|
|
|
$
|
53,867
|
|
|
8.8
|
%
|
|
$
|
195,296
|
|
|
$
|
176,405
|
|
|
10.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
|
|
Twelve Months Ended
|
(shares in thousands)
|
|
6/30/2016
|
|
6/30/2015
|
|
% Change
|
|
6/30/2016
|
|
6/30/2015
|
|
% Change
|
Diluted weighted average shares, as reported
|
|
|
24,900
|
|
|
|
24,613
|
|
|
|
|
|
24,802
|
|
|
|
24,388
|
|
|
|
Diluted earnings per share, as reported
|
|
$
|
1.75
|
|
|
$
|
1.68
|
|
|
4.1
|
%
|
|
$
|
5.76
|
|
|
$
|
5.17
|
|
|
11.3
|
%
|
Diluted adjusted earnings per share
|
|
$
|
2.35
|
|
|
$
|
2.19
|
|
|
7.5
|
%
|
|
$
|
7.87
|
|
|
$
|
7.23
|
|
|
8.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Financial Data (Continued)
|
Adoption of ASU 2016-09, Improvements to Employee Share-based
Payment Accounting
|
|
In our fourth quarter, we adopted a new accounting standard issued
by the Financial Accounting Standards Board that modifies several
aspects of the accounting for share-based payments, including
income tax consequences and classification on the statement of
cash flows. The guidance is effective for our current fiscal year
and interim periods within it. As a result, we recognized excess
tax benefits as an increase to net income attributable to CACI and
operating cash flows of $1.2 million ($0.05 per share) for the
year. Previous to adoption of the new standard, the tax benefit
was recognized in additional paid-in capital on the balance sheet
and cash flows from financing activities in the statement of cash
flows.
|
|
|
|
|
|
|
|
|
|
|
Quarter ended
|
(Amounts in thousands, except per share amounts)
|
|
9/30/2015
|
|
12/31/2015
|
|
3/31/2016
|
|
6/30/2016
|
Revenue
|
|
$
|
822,442
|
|
$
|
830,437
|
|
$
|
977,274
|
|
$
|
1,113,900
|
Income from operations
|
|
$
|
64,508
|
|
$
|
55,482
|
|
$
|
63,676
|
|
$
|
81,084
|
Income taxes1
|
|
$
|
20,693
|
|
$
|
16,851
|
|
$
|
18,445
|
|
$
|
24,824
|
Net income attributable to CACI1
|
|
$
|
34,632
|
|
$
|
30,452
|
|
$
|
34,116
|
|
$
|
43,599
|
Basic earnings per share1
|
|
$
|
1.43
|
|
$
|
1.26
|
|
$
|
1.41
|
|
$
|
1.79
|
Diluted earnings per share1
|
|
$
|
1.40
|
|
$
|
1.23
|
|
$
|
1.38
|
|
$
|
1.75
|
|
|
|
|
|
|
|
|
|
Weighted-average shares used in per share computations:
|
|
|
|
|
|
Basic
|
|
|
24,208
|
|
|
24,246
|
|
|
24,277
|
|
|
24,319
|
Diluted1
|
|
|
24,721
|
|
|
24,786
|
|
|
24,801
|
|
|
24,900
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Quarterly FY16 balances have been adjusted to reflect
the adoption of ASU 2016-09 as of the beginning of the fiscal year.
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20160817006141/en/
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