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x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
March 31, 2023
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o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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Delaware | 54-1345888 | |||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Common Stock | CACI | New York Stock Exchange |
Large accelerated filer | x |
| Accelerated filer |
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Non-accelerated filer | o |
| Smaller reporting company |
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Emerging growth company |
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| Three Months Ended |
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| September 30, |
| Three Months Ended March 31, | Nine Months Ended March 31, | |||||||||||||||||||||||||||||
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| 2022 |
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| 2021 |
| 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||
Revenues |
| $ | 1,605,759 |
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| $ | 1,490,898 |
| Revenues | $ | 1,744,270 | $ | 1,583,980 | $ | 4,999,445 | $ | 4,560,656 | |||||||||||||||||
Costs of revenues: |
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| Costs of revenues: | |||||||||||||||||||||||||
Direct costs |
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| 1,055,772 |
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| 974,171 |
| Direct costs | 1,143,781 | 1,022,181 | 3,293,867 | 2,970,370 | |||||||||||||||||||||
Indirect costs and selling expenses |
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| 382,081 |
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| 357,106 |
| Indirect costs and selling expenses | 410,235 | 402,227 | 1,180,619 | 1,114,310 | |||||||||||||||||||||
Depreciation and amortization |
|
| 35,103 |
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| 32,592 |
| Depreciation and amortization | 35,220 | 34,216 | 106,255 | 99,484 | |||||||||||||||||||||
Total costs of revenues |
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| 1,472,956 |
|
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| 1,363,869 |
| Total costs of revenues | 1,589,236 | 1,458,624 | 4,580,741 | 4,184,164 | |||||||||||||||||||||
Income from operations |
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| 132,803 |
|
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| 127,029 |
| Income from operations | 155,034 | 125,356 | 418,704 | 376,492 | |||||||||||||||||||||
Interest expense and other, net |
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| 16,193 |
|
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| 10,398 |
| Interest expense and other, net | 23,570 | 9,084 | 59,705 | 30,491 | |||||||||||||||||||||
Income before income taxes |
|
| 116,610 |
|
|
| 116,631 |
| Income before income taxes | 131,464 | 116,272 | 358,999 | 346,001 | |||||||||||||||||||||
Income taxes |
|
| 27,485 |
|
|
| 28,522 |
| Income taxes | 30,722 | 20,855 | 82,031 | 72,176 | |||||||||||||||||||||
Net income |
| $ | 89,125 |
|
| $ | 88,109 |
| Net income | $ | 100,742 | $ | 95,417 | $ | 276,968 | $ | 273,825 | |||||||||||||||||
Basic earnings per share |
| $ | 3.81 |
|
| $ | 3.74 |
| Basic earnings per share | $ | 4.37 | $ | 4.08 | $ | 11.87 | $ | 11.67 | |||||||||||||||||
Diluted earnings per share |
| $ | 3.76 |
|
| $ | 3.70 |
| Diluted earnings per share | $ | 4.33 | $ | 4.04 | $ | 11.76 | $ | 11.56 | |||||||||||||||||
Weighted-average basic shares outstanding |
|
| 23,420 |
|
|
| 23,560 |
| Weighted-average basic shares outstanding | 23,055 | 23,409 | 23,329 | 23,457 | |||||||||||||||||||||
Weighted-average diluted shares outstanding |
|
| 23,678 |
|
|
| 23,844 |
| Weighted-average diluted shares outstanding | 23,277 | 23,616 | 23,546 | 23,687 |
CACI INTERNATIONAL INC
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| Three Months Ended |
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| September 30, |
| Three Months Ended March 31, | Nine Months Ended March 31, | |||||||||||||||||||||||||||||||||||
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| 2022 |
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| 2021 |
| 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||
Net income |
| $ | 89,125 |
|
| $ | 88,109 |
| Net income | $ | 100,742 | $ | 95,417 | $ | 276,968 | $ | 273,825 | |||||||||||||||||||||||
Other comprehensive (loss) income: |
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Other comprehensive income (loss): | Other comprehensive income (loss): | |||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment |
|
| (17,489 | ) |
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| (6,762 | ) | Foreign currency translation adjustment | 4,025 | (5,087) | 3,659 | (11,274) | |||||||||||||||||||||||||||
Change in fair value of interest rate swap agreements, net of tax |
|
| 15,529 |
|
|
| 2,214 |
| Change in fair value of interest rate swap agreements, net of tax | (10,001) | 17,361 | 4,012 | 24,999 | |||||||||||||||||||||||||||
Other comprehensive loss, net of tax |
|
| (1,960 | ) |
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| (4,548 | ) | ||||||||||||||||||||||||||||||||
Other comprehensive (loss) income, net of tax | Other comprehensive (loss) income, net of tax | (5,976) | 12,274 | 7,671 | 13,725 | |||||||||||||||||||||||||||||||||||
Comprehensive income |
| $ | 87,165 |
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| $ | 83,561 |
| Comprehensive income | $ | 94,766 | $ | 107,691 | $ | 284,639 | $ | 287,550 |
CACI INTERNATIONAL INC
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| September 30, |
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| June 30, |
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| 2022 |
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| 2022 |
| March 31, 2023 | June 30, 2022 | ||||||||||||||
ASSETS |
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| ASSETS | |||||||||||||
Current assets: |
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| Current assets: | |||||||||||||
Cash and cash equivalents |
| $ | 136,636 |
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| $ | 114,804 |
| Cash and cash equivalents | $ | 106,789 | $ | 114,804 | |||||||||
Accounts receivable, net |
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| 794,777 |
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| 926,144 |
| Accounts receivable, net | 1,004,733 | 926,144 | |||||||||||
Prepaid expenses and other current assets |
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| 194,579 |
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| 168,690 |
| Prepaid expenses and other current assets | 197,120 | 168,690 | |||||||||||
Total current assets |
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| 1,125,992 |
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| 1,209,638 |
| Total current assets | 1,308,642 | 1,209,638 | |||||||||||
Goodwill |
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| 4,052,778 |
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| 4,058,291 |
| Goodwill | 4,066,260 | 4,058,291 | |||||||||||
Intangible assets, net |
|
| 561,564 |
|
|
| 581,385 |
| Intangible assets, net | 524,445 | 581,385 | |||||||||||
Property, plant and equipment, net |
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| 199,817 |
|
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| 205,622 |
| Property, plant and equipment, net | 197,549 | 205,622 | |||||||||||
Operating lease right-of-use assets |
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| 309,474 |
|
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| 317,359 |
| Operating lease right-of-use assets | 285,746 | 317,359 | |||||||||||
Supplemental retirement savings plan assets |
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| 94,156 |
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| 96,114 |
| Supplemental retirement savings plan assets | 96,434 | 96,114 | |||||||||||
Accounts receivable, long-term |
|
| 10,623 |
|
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| 10,199 |
| Accounts receivable, long-term | 12,653 | 10,199 | |||||||||||
Other long-term assets |
|
| 170,478 |
|
|
| 150,823 |
| Other long-term assets | 159,827 | 150,823 | |||||||||||
Total assets |
| $ | 6,524,882 |
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| $ | 6,629,431 |
| Total assets | $ | 6,651,556 | $ | 6,629,431 | |||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY |
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| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||
Current liabilities: |
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| Current liabilities: | |||||||||||||
Current portion of long-term debt |
| $ | 30,625 |
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| $ | 30,625 |
| Current portion of long-term debt | $ | 38,281 | $ | 30,625 | |||||||||
Accounts payable |
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| 229,366 |
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| 303,443 |
| Accounts payable | 323,346 | 303,443 | |||||||||||
Accrued compensation and benefits |
|
| 373,860 |
|
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| 405,722 |
| Accrued compensation and benefits | 344,039 | 405,722 | |||||||||||
Other accrued expenses and current liabilities |
|
| 331,980 |
|
|
| 287,571 |
| Other accrued expenses and current liabilities | 358,790 | 287,571 | |||||||||||
Total current liabilities |
|
| 965,831 |
|
|
| 1,027,361 |
| Total current liabilities | 1,064,456 | 1,027,361 | |||||||||||
Long-term debt, net of current portion |
|
| 1,597,055 |
|
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| 1,702,148 |
| Long-term debt, net of current portion | 1,765,210 | 1,702,148 | |||||||||||
Supplemental retirement savings plan obligations, net of current portion |
|
| 102,580 |
|
|
| 102,127 |
| Supplemental retirement savings plan obligations, net of current portion | 103,023 | 102,127 | |||||||||||
Deferred income taxes |
|
| 311,283 |
|
|
| 356,841 |
| Deferred income taxes | 202,755 | 356,841 | |||||||||||
Operating lease liabilities, noncurrent |
|
| 307,391 |
|
|
| 315,315 |
| Operating lease liabilities, noncurrent | 278,344 | 315,315 | |||||||||||
Other long-term liabilities |
|
| 92,172 |
|
|
| 72,096 |
| Other long-term liabilities | 148,128 | 72,096 | |||||||||||
Total liabilities |
| $ | 3,376,312 |
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| $ | 3,575,888 |
| Total liabilities | $ | 3,561,916 | $ | 3,575,888 | |||||||||
COMMITMENTS AND CONTINGENCIES |
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COMMITMENTS AND CONTINGENCIES (NOTE 8) | COMMITMENTS AND CONTINGENCIES (NOTE 8) | |||||||||||||||||||||
Shareholders’ equity: |
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| Shareholders’ equity: | |||||||||||||
Preferred stock $0.10 par value, 10,000 shares authorized, no shares issued or outstanding |
|
| — |
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| — |
| Preferred stock $0.10 par value, 10,000 shares authorized, no shares issued or outstanding | — | — | |||||||||||
Common stock $0.10 par value, 80,000 shares authorized; 42,826 shares issued and 23,422 outstanding at September 30, 2022 and 42,820 shares issued and 23,416 outstanding at June 30, 2022 |
|
| 4,283 |
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| 4,282 |
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Common stock $0.10 par value, 80,000 shares authorized; 42,919 shares issued and 22,793 outstanding at March 31, 2023 and 42,820 shares issued and 23,416 outstanding at June 30, 2022 | Common stock $0.10 par value, 80,000 shares authorized; 42,919 shares issued and 22,793 outstanding at March 31, 2023 and 42,820 shares issued and 23,416 outstanding at June 30, 2022 | 4,292 | 4,282 | |||||||||||||||||||
Additional paid-in capital |
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| 579,511 |
|
|
| 571,650 |
| Additional paid-in capital | 537,773 | 571,650 | |||||||||||
Retained earnings |
|
| 3,645,006 |
|
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| 3,555,881 |
| Retained earnings | 3,832,849 | 3,555,881 | |||||||||||
Accumulated other comprehensive loss |
|
| (33,036 | ) |
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| (31,076 | ) | Accumulated other comprehensive loss | (23,405) | (31,076) | |||||||||||
Treasury stock, at cost (19,404 and 19,404 shares, respectively) |
|
| (1,047,329 | ) |
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| (1,047,329 | ) | ||||||||||||||
Treasury stock, at cost (20,126 and 19,404 shares, respectively) | Treasury stock, at cost (20,126 and 19,404 shares, respectively) | (1,262,004) | (1,047,329) | |||||||||||||||||||
Total CACI shareholders’ equity |
|
| 3,148,435 |
|
|
| 3,053,408 |
| Total CACI shareholders’ equity | 3,089,505 | 3,053,408 | |||||||||||
Noncontrolling interest |
|
| 135 |
|
|
| 135 |
| Noncontrolling interest | 135 | 135 | |||||||||||
Total shareholders’ equity |
|
| 3,148,570 |
|
|
| 3,053,543 |
| Total shareholders’ equity | 3,089,640 | 3,053,543 | |||||||||||
Total liabilities and shareholders’ equity |
| $ | 6,524,882 |
|
| $ | 6,629,431 |
| Total liabilities and shareholders’ equity | $ | 6,651,556 | $ | 6,629,431 |
CACI INTERNATIONAL INC
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| Three Months Ended |
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| September 30, |
| Nine Months Ended March 31, | ||||||||||||||||||
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| 2022 |
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| 2021 |
| 2023 | 2022 | ||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES |
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| CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||||
Net income |
| $ | 89,125 |
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| $ | 88,109 |
| Net income | $ | 276,968 | $ | 273,825 | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: |
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|
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|
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| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||
Depreciation and amortization |
|
| 35,103 |
|
|
| 32,592 |
| Depreciation and amortization | 106,255 | 99,484 | |||||||||||
Amortization of deferred financing costs |
|
| 564 |
|
|
| 576 |
| Amortization of deferred financing costs | 1,688 | 1,712 | |||||||||||
Loss on extinguishment of debt | Loss on extinguishment of debt | — | 891 | |||||||||||||||||||
Non-cash lease expense |
|
| 17,319 |
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|
| 16,960 |
| Non-cash lease expense | 52,293 | 51,449 | |||||||||||
Stock-based compensation expense |
|
| 8,439 |
|
|
| 6,669 |
| Stock-based compensation expense | 30,564 | 23,085 | |||||||||||
Deferred income taxes |
|
| (31,177 | ) |
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| (4,461 | ) | Deferred income taxes | (84,794) | 2,813 | |||||||||||
Changes in operating assets and liabilities, net of effect of business acquisitions: |
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|
|
|
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|
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| Changes in operating assets and liabilities, net of effect of business acquisitions: | |||||||||||||
Accounts receivable, net |
|
| 126,859 |
|
|
| 108,236 |
| Accounts receivable, net | (80,116) | 66,953 | |||||||||||
Prepaid expenses and other assets |
|
| (34,438 | ) |
|
| (24,085 | ) | Prepaid expenses and other assets | (42,137) | (27,227) | |||||||||||
Accounts payable and other accrued expenses |
|
| (52,598 | ) |
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| (16,235 | ) | Accounts payable and other accrued expenses | 62,116 | 23,056 | |||||||||||
Accrued compensation and benefits |
|
| (31,048 | ) |
|
| (40,521 | ) | Accrued compensation and benefits | (62,522) | (84,466) | |||||||||||
Income taxes payable and receivable |
|
| 35,514 |
|
|
| 31,444 |
| Income taxes payable and receivable | 28,825 | 201,112 | |||||||||||
Operating lease liabilities |
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| (19,903 | ) |
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| (16,076 | ) | Operating lease liabilities | (58,667) | (54,575) | |||||||||||
Long-term liabilities |
|
| 1,084 |
|
|
| 2,745 |
| Long-term liabilities | 5,481 | 14,901 | |||||||||||
Net cash provided by operating activities |
|
| 144,843 |
|
|
| 185,953 |
| Net cash provided by operating activities | 235,954 | 593,013 | |||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES |
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| CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||||
Capital expenditures |
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| (12,771 | ) |
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| (10,203 | ) | Capital expenditures | (40,844) | (38,742) | |||||||||||
Acquisition of businesses, net of cash acquired |
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| — |
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| (116,273 | ) | Acquisition of businesses, net of cash acquired | — | (615,769) | |||||||||||
Other | Other | 1,626 | 923 | |||||||||||||||||||
Net cash used in investing activities |
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| (12,771 | ) |
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| (126,476 | ) | Net cash used in investing activities | (39,218) | (653,588) | |||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES |
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| CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||||
Proceeds from borrowings under bank credit facilities |
|
| 378,000 |
|
|
| 548,000 |
| Proceeds from borrowings under bank credit facilities | 2,384,000 | 2,087,095 | |||||||||||
Principal payments made under bank credit facilities |
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| (483,656 | ) |
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| (589,730 | ) | Principal payments made under bank credit facilities | (2,314,969) | (1,965,386) | |||||||||||
Payment of financing costs under bank credit facilities | Payment of financing costs under bank credit facilities | — | (6,286) | |||||||||||||||||||
Proceeds from employee stock purchase plans |
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| 2,791 |
|
|
| 2,911 |
| Proceeds from employee stock purchase plans | 7,638 | 7,398 | |||||||||||
Repurchases of common stock |
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| (2,647 | ) |
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| (2,472 | ) | Repurchases of common stock | (270,449) | (7,301) | |||||||||||
Payment of taxes for equity transactions |
|
| (584 | ) |
|
| (426 | ) | Payment of taxes for equity transactions | (14,115) | (14,685) | |||||||||||
Net cash used in financing activities |
|
| (106,096 | ) |
|
| (41,717 | ) | ||||||||||||||
Net cash (used in) provided by financing activities | Net cash (used in) provided by financing activities | (207,895) | 100,835 | |||||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents |
|
| (4,144 | ) |
|
| (1,361 | ) | Effect of exchange rate changes on cash and cash equivalents | 3,144 | (3,217) | |||||||||||
Net change in cash and cash equivalents |
|
| 21,832 |
|
|
| 16,399 |
| Net change in cash and cash equivalents | (8,015) | 37,043 | |||||||||||
Cash and cash equivalents at beginning of period |
|
| 114,804 |
|
|
| 88,031 |
| Cash and cash equivalents at beginning of period | 114,804 | 88,031 | |||||||||||
Cash and cash equivalents at end of period |
| $ | 136,636 |
|
| $ | 104,430 |
| Cash and cash equivalents at end of period | $ | 106,789 | $ | 125,074 | |||||||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION |
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| SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | |||||||||||||
Cash paid during the period for income taxes |
| $ | 20,786 |
|
| $ | 518 |
| ||||||||||||||
Cash paid during the period for income taxes, net of refunds | Cash paid during the period for income taxes, net of refunds | $ | 131,114 | $ | (146,985) | |||||||||||||||||
Cash paid during the period for interest |
| $ | 13,485 |
|
| $ | 9,383 |
| Cash paid during the period for interest | $ | 47,941 | $ | 27,298 | |||||||||
Non-cash financing and investing activities: |
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|
|
|
|
|
|
| Non-cash financing and investing activities: | |||||||||||||
Landlord sponsored tenant incentives |
| $ | 1,443 |
|
| $ | 724 |
| Landlord sponsored tenant incentives | $ | 3,883 | $ | 2,256 | |||||||||
Accrued capital expenditures |
| $ | 401 |
|
| $ | 227 |
| Accrued capital expenditures | $ | 4,803 | $ | 952 |
CACI INTERNATIONAL INC
Common Stock Shares Amount | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock Shares Amount | Total CACI Shareholders’ Equity | Noncontrolling Interest | Total Shareholders’ Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2022 | Balance at December 31, 2022 | 42,911 | $ | 4,291 | $ | 578,470 | $ | 3,732,107 | $ | (17,429) | 19,404 | $ | (1,047,328) | $ | 3,250,111 | $ | 135 | $ | 3,250,246 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | Net income | — | — | — | 100,742 | — | — | — | 100,742 | — | 100,742 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | Stock-based compensation expense | — | — | 10,368 | — | — | — | — | 10,368 | — | 10,368 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tax withholdings on restricted share vestings | Tax withholdings on restricted share vestings | 8 | 1 | (976) | — | — | — | — | (975) | — | (975) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | Other comprehensive income (loss), net of tax | — | — | — | — | (5,976) | — | — | (5,976) | — | (5,976) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchases of common stock | Repurchases of common stock | — | — | (50,089) | — | — | 731 | (217,026) | (267,115) | — | (267,115) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Treasury stock issued under stock purchase plans | Treasury stock issued under stock purchase plans | — | — | — | — | — | (9) | 2,350 | 2,350 | — | 2,350 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2023 | Balance at March 31, 2023 | 42,919 | $ | 4,292 | $ | 537,773 | $ | 3,832,849 | $ | (23,405) | 20,126 | $ | (1,262,004) | $ | 3,089,505 | $ | 135 | $ | 3,089,640 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2021 | Balance at December 31, 2021 | 42,810 | $ | 4,281 | $ | 555,968 | $ | 3,367,495 | $ | (34,840) | 19,404 | $ | (1,047,329) | $ | 2,845,575 | $ | 135 | $ | 2,845,710 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | Net income | — | — | — | 95,417 | — | — | — | 95,417 | — | 95,417 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | Stock-based compensation expense | — | — | 8,387 | — | — | — | — | 8,387 | — | 8,387 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tax withholdings on restricted share vestings | Tax withholdings on restricted share vestings | 7 | 1 | (773) | — | — | — | — | (772) | — | (772) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income, net of tax | Other comprehensive income, net of tax | — | — | — | — | 12,274 | — | — | 12,274 | — | 12,274 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchases of common stock | Repurchases of common stock | — | — | (130) | — | — | 9 | (2,176) | (2,306) | — | (2,306) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Treasury stock issued under stock purchase plans | Treasury stock issued under stock purchase plans | — | — | — | — | — | (9) | 2,176 | 2,176 | — | 2,176 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2022 | Balance at March 31, 2022 | 42,817 | $ | 4,282 | $ | 563,452 | $ | 3,462,912 | $ | (22,566) | 19,404 | $ | (1,047,329) | $ | 2,960,751 | $ | 135 | $ | 2,960,886 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
| Common Stock Shares Amount |
|
| Additional Paid-in Capital |
|
| Retained Earnings |
|
| Accumulated Other Comprehensive Income (Loss) |
|
| Treasury Stock Shares Amount |
|
| Total CACI Shareholders’ Equity |
|
| Noncontrolling Interest |
|
| Total Shareholders’ Equity |
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2022 |
|
| 42,820 |
|
| $ | 4,282 |
|
| $ | 571,650 |
|
| $ | 3,555,881 |
|
| $ | (31,076 | ) |
|
| 19,404 |
|
| $ | (1,047,329 | ) |
| $ | 3,053,408 |
|
| $ | 135 |
|
| $ | 3,053,543 |
| Balance at June 30, 2022 | 42,820 | $ | 4,282 | $ | 571,650 | $ | 3,555,881 | $ | (31,076) | 19,404 | $ | (1,047,329) | $ | 3,053,408 | $ | 135 | $ | 3,053,543 | ||||||||||||||||||||||||||||||||||||||||
Net income |
|
| — |
|
|
| — |
|
|
| — |
|
|
| 89,125 |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 89,125 |
|
|
| — |
|
|
| 89,125 |
| Net income | — | — | — | 276,968 | — | — | — | 276,968 | — | 276,968 | ||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense |
|
| — |
|
|
| — |
|
|
| 8,439 |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 8,439 |
|
|
| — |
|
|
| 8,439 |
| Stock-based compensation expense | — | — | 30,564 | — | — | — | — | 30,564 | — | 30,564 | ||||||||||||||||||||||||||||||||||||||||||||||||
Tax withholdings on restricted share vestings |
|
| 6 |
|
|
| 1 |
|
|
| (436 | ) |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| (435 | ) |
|
| — |
|
|
| (435 | ) | Tax withholdings on restricted share vestings | 99 | 10 | (14,091) | — | — | — | — | (14,081) | — | (14,081) | ||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss, net of tax |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| (1,960 | ) |
|
| — |
|
|
| — |
|
|
| (1,960 | ) |
|
| — |
|
|
| (1,960 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income, net of tax | Other comprehensive income, net of tax | — | — | — | — | 7,671 | — | — | 7,671 | — | 7,671 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchases of common stock |
|
| — |
|
|
| — |
|
|
| (182 | ) |
|
| — |
|
|
| — |
|
|
| 9 |
|
|
| (2,465 | ) |
|
| (2,647 | ) |
|
| — |
|
|
| (2,647 | ) | Repurchases of common stock | — | — | (50,414) | — | — | 750 | (221,987) | (272,401) | — | (272,401) | ||||||||||||||||||||||||||||||||||||||||||||||||
Treasury stock issued under stock purchase plans |
|
| — |
|
|
| — |
|
|
| 40 |
|
|
| — |
|
|
| — |
|
|
| (9 | ) |
|
| 2,465 |
|
|
| 2,505 |
|
|
| — |
|
|
| 2,505 |
| Treasury stock issued under stock purchase plans | — | — | 64 | — | — | (28) | 7,312 | 7,376 | — | 7,376 | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2022 |
|
| 42,826 |
|
| $ | 4,283 |
|
| $ | 579,511 |
|
| $ | 3,645,006 |
|
| $ | (33,036 | ) |
|
| 19,404 |
|
| $ | (1,047,329 | ) |
| $ | 3,148,435 |
|
| $ | 135 |
|
| $ | 3,148,570 |
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2023 | Balance at March 31, 2023 | 42,919 | $ | 4,292 | $ | 537,773 | $ | 3,832,849 | $ | (23,405) | 20,126 | $ | (1,262,004) | $ | 3,089,505 | $ | 135 | $ | 3,089,640 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2021 |
|
| 42,676 |
|
| $ | 4,268 |
|
| $ | 484,260 |
|
| $ | 3,189,087 |
|
| $ | (36,291 | ) |
|
| 19,122 |
|
| $ | (976,181 | ) |
| $ | 2,665,143 |
|
| $ | 135 |
|
| $ | 2,665,278 |
| Balance at June 30, 2021 | 42,676 | $ | 4,268 | $ | 484,260 | $ | 3,189,087 | $ | (36,291) | 19,122 | $ | (976,181) | $ | 2,665,143 | $ | 135 | $ | 2,665,278 | ||||||||||||||||||||||||||||||||||||||||
Net income |
|
| — |
|
|
| — |
|
|
| — |
|
|
| 88,109 |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 88,109 |
|
|
| — |
|
|
| 88,109 |
| Net income | — | — | — | 273,825 | — | — | — | 273,825 | — | 273,825 | ||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense |
|
| — |
|
|
| — |
|
|
| 6,669 |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 6,669 |
|
|
| — |
|
|
| 6,669 |
| Stock-based compensation expense | — | — | 23,085 | — | — | — | — | 23,085 | — | 23,085 | ||||||||||||||||||||||||||||||||||||||||||||||||
Tax withholdings on restricted share vestings |
|
| 34 |
|
|
| 3 |
|
|
| (276 | ) |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| (273 | ) |
|
| — |
|
|
| (273 | ) | Tax withholdings on restricted share vestings | 141 | 14 | (14,585) | — | — | — | — | (14,571) | — | (14,571) | ||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss, net of tax |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| (4,548 | ) |
|
| — |
|
|
| — |
|
|
| (4,548 | ) |
|
| — |
|
|
| (4,548 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income, net of tax | Other comprehensive income, net of tax | — | — | — | — | 13,725 | — | — | 13,725 | — | 13,725 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchases of common stock |
|
| — |
|
|
| — |
|
|
| 70,974 |
|
|
| — |
|
|
| — |
|
|
| 292 |
|
|
| (73,446 | ) |
|
| (2,472 | ) |
|
| — |
|
|
| (2,472 | ) | Repurchases of common stock | — | — | 70,631 | — | — | 310 | (77,932) | (7,301) | — | (7,301) | ||||||||||||||||||||||||||||||||||||||||||||||||
Treasury stock issued under stock purchase plans |
|
| — |
|
|
| — |
|
|
| 61 |
|
|
| — |
|
|
| — |
|
|
| (10 | ) |
|
| 2,298 |
|
|
| 2,359 |
|
|
| — |
|
|
| 2,359 |
| Treasury stock issued under stock purchase plans | — | — | 61 | — | — | (28) | 6,784 | 6,845 | — | 6,845 | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2021 |
|
| 42,710 |
|
| $ | 4,271 |
|
| $ | 561,688 |
|
| $ | 3,277,196 |
|
| $ | (40,839 | ) |
|
| 19,404 |
|
| $ | (1,047,329 | ) |
| $ | 2,754,987 |
|
| $ | 135 |
|
| $ | 2,755,122 |
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2022 | Balance at March 31, 2022 | 42,817 | $ | 4,282 | $ | 563,452 | $ | 3,462,912 | $ | (22,566) | 19,404 | $ | (1,047,329) | $ | 2,960,751 | $ | 135 | $ | 2,960,886 |
Domestic | International | Total | ||||||||||||||||||
Balance at June 30, 2022 | $ | 3,934,625 | $ | 123,666 | $ | 4,058,291 | ||||||||||||||
Goodwill acquired (1) | 6,072 | — | 6,072 | |||||||||||||||||
Foreign currency translation | (485) | 2,382 | 1,897 | |||||||||||||||||
Balance at March 31, 2023 | $ | 3,940,212 | $ | 126,048 | $ | 4,066,260 |
|
| Domestic |
|
| International |
|
| Total |
| |||
Balance at June 30, 2022 |
| $ | 3,934,625 |
|
| $ | 123,666 |
|
| $ | 4,058,291 |
|
Goodwill acquired (1) |
|
| 5,742 |
|
|
| — |
|
|
| 5,742 |
|
Foreign currency translation |
|
| (1,082 | ) |
|
| (10,173 | ) |
|
| (11,255 | ) |
Balance at September 30, 2022 |
| $ | 3,939,285 |
|
| $ | 113,493 |
|
| $ | 4,052,778 |
|
(1)Includes goodwill initially allocated to new business combinations as well as measurement period adjustments, when applicable. Purchase price allocations for all of the fiscal year 2022 acquisitions were completed as of the second quarter of fiscal year 2023.
|
|
There were no impairments of goodwill during the periods presented.
|
| September 30, 2022 |
|
| June 30, 2022 |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
| Gross carrying |
|
| Accumulated |
|
| Net carrying |
|
| Gross carrying |
|
| Accumulated |
|
| Net carrying |
| March 31, 2023 | June 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||
|
| value |
|
| amortization |
|
| value |
|
| value |
|
| amortization |
|
| value |
| Gross carrying value | Accumulated amortization | Net carrying value | Gross carrying value | Accumulated amortization | Net carrying value | ||||||||||||||||||||||||||||||||||||||
Customer contracts and related customer relationships |
| $ | 655,342 |
|
| $ | (285,545 | ) |
| $ | 369,797 |
|
| $ | 656,353 |
|
| $ | (275,538 | ) |
| $ | 380,815 |
| Customer contracts and related customer relationships | $ | 656,285 | $ | (306,224) | $ | 350,061 | $ | 656,353 | $ | (275,538) | $ | 380,815 | |||||||||||||||||||||||||
Acquired technologies |
|
| 280,029 |
|
|
| (88,262 | ) |
|
| 191,767 |
|
|
| 280,196 |
|
|
| (79,626 | ) |
|
| 200,570 |
| Acquired technologies | 277,132 | (102,748) | 174,384 | 280,196 | (79,626) | 200,570 | |||||||||||||||||||||||||||||||
Total intangible assets |
| $ | 935,371 |
|
| $ | (373,807 | ) |
| $ | 561,564 |
|
| $ | 936,549 |
|
| $ | (355,164 | ) |
| $ | 581,385 |
| Total intangible assets | $ | 933,417 | $ | (408,972) | $ | 524,445 | $ | 936,549 | $ | (355,164) | $ | 581,385 |
|
| Three Months Ended |
|
| Three Months Ended |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
| September 30, 2022 |
|
| September 30, 2021 |
| Three Months Ended March 31, 2023 | Nine Months Ended March 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
| Domestic |
|
| International |
|
| Total |
|
| Domestic |
|
| International |
|
| Total |
| Domestic | International | Total | Domestic | International | Total | ||||||||||||||||||||||||||||||||||||||
Cost-plus-fee |
| $ | 934,746 |
|
| $ | — |
|
| $ | 934,746 |
|
| $ | 893,713 |
|
| $ | — |
|
| $ | 893,713 |
| Cost-plus-fee | $ | 1,008,688 | $ | — | $ | 1,008,688 | $ | 2,896,778 | $ | — | $ | 2,896,778 | |||||||||||||||||||||||||
Fixed-price |
|
| 448,562 |
|
|
| 33,211 |
|
|
| 481,773 |
|
|
| 374,474 |
|
|
| 33,231 |
|
|
| 407,705 |
| Fixed-price | 494,095 | 35,691 | 529,786 | 1,420,858 | 100,057 | 1,520,915 | |||||||||||||||||||||||||||||||
Time-and-materials |
|
| 175,587 |
|
|
| 13,653 |
|
|
| 189,240 |
|
|
| 175,535 |
|
|
| 13,945 |
|
|
| 189,480 |
| Time-and-materials | 191,696 | 14,100 | 205,796 | 540,913 | 40,839 | 581,752 | |||||||||||||||||||||||||||||||
Total |
| $ | 1,558,895 |
|
| $ | 46,864 |
|
| $ | 1,605,759 |
|
| $ | 1,443,722 |
|
| $ | 47,176 |
|
| $ | 1,490,898 |
| Total | $ | 1,694,479 | $ | 49,791 | $ | 1,744,270 | $ | 4,858,549 | $ | 140,896 | $ | 4,999,445 |
Three Months Ended March 31, 2022 | Nine Months Ended March 31, 2022 | |||||||||||||||||||||||||||||||||||||
Domestic | International | Total | Domestic | International | Total | |||||||||||||||||||||||||||||||||
Cost-plus-fee | $ | 889,624 | $ | — | $ | 889,624 | $ | 2,672,695 | $ | — | $ | 2,672,695 | ||||||||||||||||||||||||||
Fixed-price | 468,116 | 35,058 | 503,174 | 1,242,601 | 101,568 | 1,344,169 | ||||||||||||||||||||||||||||||||
Time-and-materials | 175,140 | 16,042 | 191,182 | 499,556 | 44,236 | 543,792 | ||||||||||||||||||||||||||||||||
Total | $ | 1,532,880 | $ | 51,100 | $ | 1,583,980 | $ | 4,414,852 | $ | 145,804 | $ | 4,560,656 |
|
| Three Months Ended |
|
| Three Months Ended |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
| September 30, 2022 |
|
| September 30, 2021 |
| Three Months Ended March 31, 2023 | Nine Months Ended March 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
| Domestic |
|
| International |
|
| Total |
|
| Domestic |
|
| International |
|
| Total |
| Domestic | International | Total | Domestic | International | Total | ||||||||||||||||||||||||||||||||||||||
Department of Defense |
| $ | 1,095,320 |
|
| $ | — |
|
| $ | 1,095,320 |
|
| $ | 1,000,127 |
|
| $ | — |
|
| $ | 1,000,127 |
| Department of Defense | $ | 1,298,700 | $ | — | $ | 1,298,700 | $ | 3,554,080 | $ | — | $ | 3,554,080 | |||||||||||||||||||||||||
Federal Civilian agencies |
|
| 424,087 |
|
|
| — |
|
|
| 424,087 |
|
|
| 413,664 |
|
|
| — |
|
|
| 413,664 |
| Federal Civilian agencies | 355,612 | — | 355,612 | 1,179,467 | — | 1,179,467 | |||||||||||||||||||||||||||||||
Commercial and other |
|
| 39,488 |
|
|
| 46,864 |
|
|
| 86,352 |
|
|
| 29,931 |
|
|
| 47,176 |
|
|
| 77,107 |
| Commercial and other | 40,167 | 49,791 | 89,958 | 125,002 | 140,896 | 265,898 | |||||||||||||||||||||||||||||||
Total |
| $ | 1,558,895 |
|
| $ | 46,864 |
|
| $ | 1,605,759 |
|
| $ | 1,443,722 |
|
| $ | 47,176 |
|
| $ | 1,490,898 |
| Total | $ | 1,694,479 | $ | 49,791 | $ | 1,744,270 | $ | 4,858,549 | $ | 140,896 | $ | 4,999,445 |
Three Months Ended March 31, 2022 | Nine Months Ended March 31, 2022 | |||||||||||||||||||||||||||||||||||||
Domestic | International | Total | Domestic | International | Total | |||||||||||||||||||||||||||||||||
Department of Defense | $ | 1,118,665 | $ | — | $ | 1,118,665 | $ | 3,155,806 | $ | — | $ | 3,155,806 | ||||||||||||||||||||||||||
Federal Civilian agencies | 380,837 | — | 380,837 | 1,166,398 | — | 1,166,398 | ||||||||||||||||||||||||||||||||
Commercial and other | 33,378 | 51,100 | 84,478 | 92,648 | 145,804 | 238,452 | ||||||||||||||||||||||||||||||||
Total | $ | 1,532,880 | $ | 51,100 | $ | 1,583,980 | $ | 4,414,852 | $ | 145,804 | $ | 4,560,656 |
|
| Three Months Ended |
|
| Three Months Ended |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
| September 30, 2022 |
|
| September 30, 2021 |
| Three Months Ended March 31, 2023 | Nine Months Ended March 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
| Domestic |
|
| International |
|
| Total |
|
| Domestic |
|
| International |
|
| Total |
| Domestic | International | Total | Domestic | International | Total | ||||||||||||||||||||||||||||||||||||||
Prime contractor |
| $ | 1,407,454 |
|
| $ | 42,856 |
|
| $ | 1,450,310 |
|
| $ | 1,298,653 |
|
| $ | 42,906 |
|
| $ | 1,341,559 |
| Prime contractor | $ | 1,511,758 | $ | 44,975 | $ | 1,556,733 | $ | 4,339,579 | $ | 128,303 | $ | 4,467,882 | |||||||||||||||||||||||||
Subcontractor |
|
| 151,441 |
|
|
| 4,008 |
|
|
| 155,449 |
|
|
| 145,069 |
|
|
| 4,270 |
|
|
| 149,339 |
| Subcontractor | 182,721 | 4,816 | 187,537 | 518,970 | 12,593 | 531,563 | |||||||||||||||||||||||||||||||
Total |
| $ | 1,558,895 |
|
| $ | 46,864 |
|
| $ | 1,605,759 |
|
| $ | 1,443,722 |
|
| $ | 47,176 |
|
| $ | 1,490,898 |
| Total | $ | 1,694,479 | $ | 49,791 | $ | 1,744,270 | $ | 4,858,549 | $ | 140,896 | $ | 4,999,445 |
Three Months Ended March 31, 2022 | Nine Months Ended March 31, 2022 | |||||||||||||||||||||||||||||||||||||
Domestic | International | Total | Domestic | International | Total | |||||||||||||||||||||||||||||||||
Prime contractor | $ | 1,373,045 | $ | 46,760 | $ | 1,419,805 | $ | 3,964,227 | $ | 132,983 | $ | 4,097,210 | ||||||||||||||||||||||||||
Subcontractor | 159,835 | 4,340 | 164,175 | 450,625 | 12,821 | 463,446 | ||||||||||||||||||||||||||||||||
Total | $ | 1,532,880 | $ | 51,100 | $ | 1,583,980 | $ | 4,414,852 | $ | 145,804 | $ | 4,560,656 |
|
| Three Months Ended |
|
| Three Months Ended |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
| September 30, 2022 |
|
| September 30, 2021 |
| Three Months Ended March 31, 2023 | Nine Months Ended March 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
| Domestic |
|
| International |
|
| Total |
|
| Domestic |
|
| International |
|
| Total |
| Domestic | International | Total | Domestic | International | Total | ||||||||||||||||||||||||||||||||||||||
Expertise |
| $ | 717,650 |
|
| $ | 16,553 |
|
| $ | 734,203 |
|
| $ | 683,624 |
|
| $ | 19,422 |
|
| $ | 703,046 |
| Expertise | $ | 793,993 | $ | 18,307 | $ | 812,300 | $ | 2,237,146 | $ | 50,977 | $ | 2,288,123 | |||||||||||||||||||||||||
Technology |
|
| 841,245 |
|
|
| 30,311 |
|
|
| 871,556 |
|
|
| 760,098 |
|
|
| 27,754 |
|
|
| 787,852 |
| Technology | 900,486 | 31,484 | 931,970 | 2,621,403 | 89,919 | 2,711,322 | |||||||||||||||||||||||||||||||
Total |
| $ | 1,558,895 |
|
| $ | 46,864 |
|
| $ | 1,605,759 |
|
| $ | 1,443,722 |
|
| $ | 47,176 |
|
| $ | 1,490,898 |
| Total | $ | 1,694,479 | $ | 49,791 | $ | 1,744,270 | $ | 4,858,549 | $ | 140,896 | $ | 4,999,445 |
Three Months Ended March 31, 2022 | Nine Months Ended March 31, 2022 | |||||||||||||||||||||||||||||||||||||
Domestic | International | Total | Domestic | International | Total | |||||||||||||||||||||||||||||||||
Expertise | $ | 697,347 | $ | 18,852 | $ | 716,199 | $ | 2,049,180 | $ | 56,374 | $ | 2,105,554 | ||||||||||||||||||||||||||
Technology | 835,533 | 32,248 | 867,781 | 2,365,672 | 89,430 | 2,455,102 | ||||||||||||||||||||||||||||||||
Total | $ | 1,532,880 | $ | 51,100 | $ | 1,583,980 | $ | 4,414,852 | $ | 145,804 | $ | 4,560,656 |
|
|
|
| September 30, |
|
| June 30, |
| ||||||||||||||||||||||
Description of Contract Related Balance |
| Financial Statement Classification |
| 2022 |
|
| 2022 |
| Description of Contract Related Balance | Financial Statement Classification | March 31, 2023 | June 30, 2022 | ||||||||||||||||||
Billed and billable receivables |
| Accounts receivable, net |
| $ | 656,253 |
|
| $ | 800,597 |
| Billed and billable receivables | Accounts receivable, net | $ | 865,828 | $ | 800,597 | ||||||||||||||
Contract assets – current unbilled receivables |
| Accounts receivable, net |
|
| 138,524 |
|
|
| 125,547 |
| Contract assets – current unbilled receivables | Accounts receivable, net | 138,905 | 125,547 | ||||||||||||||||
Contract assets – current costs to obtain |
| Prepaid expenses and other current assets |
|
| 5,270 |
|
|
| 5,167 |
| Contract assets – current costs to obtain | Prepaid expenses and other current assets | 5,174 | 5,167 | ||||||||||||||||
Contract assets – noncurrent unbilled receivables |
| Accounts receivable, long-term |
|
| 10,623 |
|
|
| 10,199 |
| Contract assets – noncurrent unbilled receivables | Accounts receivable, long-term | 12,653 | 10,199 | ||||||||||||||||
Contract assets – noncurrent costs to obtain |
| Other long-term assets |
|
| 10,307 |
|
|
| 10,703 |
| Contract assets – noncurrent costs to obtain | Other long-term assets | 8,853 | 10,703 | ||||||||||||||||
Contract liabilities – current deferred revenue and other contract liabilities |
| Other accrued expenses and current liabilities |
|
| (104,519 | ) |
|
| (84,810 | ) | Contract liabilities – current deferred revenue and other contract liabilities | Other accrued expenses and current liabilities | (108,325) | (84,810) | ||||||||||||||||
Contract liabilities – noncurrent deferred revenue and other contract liabilities |
| Other long-term liabilities |
|
| (5,775 | ) |
|
| (7,552 | ) | Contract liabilities – noncurrent deferred revenue and other contract liabilities | Other long-term liabilities | (5,814) | (7,552) |
|
| September 30, |
|
| June 30, |
| ||||||||||||||||
|
| 2022 |
|
| 2022 |
| March 31, 2023 | June 30, 2022 | ||||||||||||||
Materials, purchased parts and supplies |
| $ | 62,458 |
|
| $ | 57,407 |
| Materials, purchased parts and supplies | $ | 74,470 | $ | 57,407 | |||||||||
Work in process |
|
| 15,333 |
|
|
| 28,748 |
| Work in process | 20,396 | 13,207 | |||||||||||
Finished goods |
|
| 32,411 |
|
|
| 13,207 |
| Finished goods | 29,515 | 28,748 | |||||||||||
Total |
| $ | 110,202 |
|
| $ | 99,362 |
| Total | $ | 124,381 | $ | 99,362 |
As of and for the Nine Months Ended March 31, | ||||||||||||||
2023 | 2022 | |||||||||||||
Beginning balance: | $ | 157,785 | $ | 182,027 | ||||||||||
Sales of receivables | 2,150,891 | 2,041,215 | ||||||||||||
Cash collections | (2,135,986) | (2,065,575) | ||||||||||||
Outstanding balance sold to Purchaser: (1) | 172,690 | 157,667 | ||||||||||||
Cash collected, not remitted to Purchaser (2) | (47,680) | (17,491) | ||||||||||||
Remaining sold receivables | $ | 125,010 | $ | 140,176 |
|
| As of and for the Three Months Ended |
| |||||
|
| September 30, |
| |||||
|
| 2022 |
|
| 2021 |
| ||
Beginning balance: |
| $ | 157,785 |
|
| $ | 182,027 |
|
Sales of receivables |
|
| 737,873 |
|
|
| 690,132 |
|
Cash collections |
|
| (735,969 | ) |
|
| (678,643 | ) |
Outstanding balance sold to Purchaser: (1) |
|
| 159,689 |
|
|
| 193,516 |
|
Cash collected, not remitted to Purchaser (2) |
|
| (24,550 | ) |
|
| (51,034 | ) |
Remaining sold receivables |
| $ | 135,139 |
|
| $ | 142,482 |
|
(1)For the nine months ended March 31, 2023 and 2022, the Company recorded a net cash inflow of $14.9 million and a net cash outflow of $24.4 million in its cash flows from operating activities, respectively, from sold receivables. MARPA cash flows are calculated as the change in the outstanding balance during the fiscal year. |
|
(2)Includes the cash collected on behalf of but not yet remitted to Purchaser as of March 31, 2023 and 2022. This balance is included in other accrued expenses and current liabilities as of the balance sheet date. |
|
|
| September 30, |
|
| June 30, |
| ||||||||||||||||
|
| 2022 |
|
| 2022 |
| March 31, 2023 | June 30, 2022 | ||||||||||||||
Bank credit facility – term loans |
| $ | 1,202,031 |
|
| $ | 1,209,688 |
| Bank credit facility – term loans | $ | 1,186,719 | $ | 1,209,688 | |||||||||
Bank credit facility – revolver loans |
|
| 435,000 |
|
|
| 533,000 |
| Bank credit facility – revolver loans | 625,000 | 533,000 | |||||||||||
Principal amount of long-term debt |
|
| 1,637,031 |
|
|
| 1,742,688 |
| Principal amount of long-term debt | 1,811,719 | 1,742,688 | |||||||||||
Less unamortized discounts and debt issuance costs |
|
| (9,351 | ) |
|
| (9,915 | ) | Less unamortized discounts and debt issuance costs | (8,228) | (9,915) | |||||||||||
Total long-term debt |
|
| 1,627,680 |
|
|
| 1,732,773 |
| Total long-term debt | 1,803,491 | 1,732,773 | |||||||||||
Less current portion |
|
| (30,625 | ) |
|
| (30,625 | ) | Less current portion | (38,281) | (30,625) | |||||||||||
Long-term debt, net of current portion |
| $ | 1,597,055 |
|
| $ | 1,702,148 |
| Long-term debt, net of current portion | $ | 1,765,210 | $ | 1,702,148 |
|
| Three Months Ended |
| |||||
|
| September 30, |
| |||||
|
| 2022 |
|
| 2021 |
| ||
Gain (loss) recognized in other comprehensive income |
| $ | 15,586 |
|
| $ | (1,008 | ) |
Amounts reclassified to earnings from accumulated other comprehensive loss |
|
| (57 | ) |
|
| 3,222 |
|
Net current period other comprehensive income |
| $ | 15,529 |
|
| $ | 2,214 |
|
Three Months Ended March 31, | Nine Months Ended March 31, | |||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
(Loss) gain recognized in other comprehensive income | $ | (5,906) | $ | 14,761 | $ | 10,584 | $ | 15,947 | ||||||||||||||||||
Amounts reclassified to earnings from accumulated other comprehensive loss | (4,095) | 2,600 | (6,572) | 9,052 | ||||||||||||||||||||||
Net current period other comprehensive (loss) income | $ | (10,001) | $ | 17,361 | $ | 4,012 | $ | 24,999 |
|
| Three Months Ended |
| |||||||||||||||||||||||||||||||
|
| September 30, |
| Three Months Ended March 31, | Nine Months Ended March 31, | |||||||||||||||||||||||||||||
|
| 2022 |
|
| 2021 |
| 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||
Net income |
| $ | 89,125 |
|
| $ | 88,109 |
| Net income | $ | 100,742 | $ | 95,417 | $ | 276,968 | $ | 273,825 | |||||||||||||||||
Weighted-average number of basic shares outstanding during the period |
|
| 23,420 |
|
|
| 23,560 |
| Weighted-average number of basic shares outstanding during the period | 23,055 | 23,409 | 23,329 | 23,457 | |||||||||||||||||||||
Dilutive effect of RSUs after application of treasury stock method |
|
| 258 |
|
|
| 284 |
| Dilutive effect of RSUs after application of treasury stock method | 222 | 207 | 217 | 230 | |||||||||||||||||||||
Weighted-average number of diluted shares outstanding during the period |
|
| 23,678 |
|
|
| 23,844 |
| Weighted-average number of diluted shares outstanding during the period | 23,277 | 23,616 | 23,546 | 23,687 | |||||||||||||||||||||
Basic earnings per share |
| $ | 3.81 |
|
| $ | 3.74 |
| Basic earnings per share | $ | 4.37 | $ | 4.08 | $ | 11.87 | $ | 11.67 | |||||||||||||||||
Diluted earnings per share |
| $ | 3.76 |
|
| $ | 3.70 |
| Diluted earnings per share | $ | 4.33 | $ | 4.04 | $ | 11.76 | $ | 11.56 |
During fiscal year 2023, a provision of the Tax Cuts and Jobs Act of 2017 (TCJA) went into effect which eliminated the option to deduct domestic research and development costs in the year incurred and instead requires taxpayers to amortize such costs over five years. Although it is possible that Congress amends this provision of the TCJA, potentially with retroactive effect, we have no assurance that Congress will take any action with respect to this provision. DuringFor the quarter,three and nine months ended March 31, 2023, the Company recognized a liability for unrecognized tax benefits and a corresponding deferred tax asset of $19.8$30.9 million and $70.7 million, respectively, related to the capitalization and amortization of research costs related to provisions of the TCJA becoming effective.
|
| Three Months Ended |
| |||||||||||||||||||||||||||||||
|
| September 30, |
| Three Months Ended March 31, | Nine Months Ended March 31, | |||||||||||||||||||||||||||||
|
| 2022 |
|
| 2021 |
| 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||
Revenues: |
|
|
|
|
|
|
|
| Revenues: | |||||||||||||||||||||||||
Domestic |
| $ | 1,558,895 |
|
| $ | 1,443,722 |
| Domestic | $ | 1,694,479 | $ | 1,532,880 | $ | 4,858,549 | $ | 4,414,852 | |||||||||||||||||
International |
|
| 46,864 |
|
|
| 47,176 |
| International | 49,791 | 51,100 | 140,896 | 145,804 | |||||||||||||||||||||
Total revenues |
| $ | 1,605,759 |
|
| $ | 1,490,898 |
| Total revenues | $ | 1,744,270 | $ | 1,583,980 | $ | 4,999,445 | $ | 4,560,656 | |||||||||||||||||
|
|
|
|
|
|
|
|
| ||||||||||||||||||||||||||
Net income: |
|
|
|
|
|
|
|
| Net income: | |||||||||||||||||||||||||
Domestic |
| $ | 80,553 |
|
| $ | 81,697 |
| Domestic | $ | 93,383 | $ | 87,543 | $ | 254,298 | $ | 252,647 | |||||||||||||||||
International |
|
| 8,572 |
|
|
| 6,412 |
| International | 7,359 | 7,874 | 22,670 | 21,178 | |||||||||||||||||||||
Total net income |
| $ | 89,125 |
|
| $ | 88,109 |
| Total net income | $ | 100,742 | $ | 95,417 | $ | 276,968 | $ | 273,825 |
|
|
|
|
|
| September 30, |
|
| June 30, |
| ||||||||||||||||||||||||||||
|
| Financial Statement |
| Fair Value |
| 2022 |
|
| 2022 |
| ||||||||||||||||||||||||||||
Description of Financial Instrument | Description of Financial Instrument | Financial Statement Classification | Fair Value Hierarchy | March 31, 2023 | June 30, 2022 | |||||||||||||||||||||||||||||||||
| Classification |
| Hierarchy |
| Fair Value |
| Fair Value | |||||||||||||||||||||||||||||||
Interest rate swap agreements |
| Prepaid expenses and other current assets |
| Level 2 |
| $ | 1,952 |
|
| $ | 337 |
| Interest rate swap agreements | Prepaid expenses and other current assets | Level 2 | $ | 703 | $ | 337 | |||||||||||||||||||
Interest rate swap agreements |
| Other long-term assets |
| Level 2 |
| $ | 38,526 |
|
| $ | 19,184 |
| Interest rate swap agreements | Other long-term assets | Level 2 | $ | 27,390 | $ | 19,184 | |||||||||||||||||||
Interest rate swap agreements | Interest rate swap agreements | Other long-term liabilities | Level 2 | $ | (3,158) | $ | — |
•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; and •Enterprise – CACI provides capabilities that enable the internal operations of a government agency. •Mission – CACI provides capabilities that enable the execution of a government agency’s primary function, or “mission”. •Expertise – CACI provides Expertise to both Enterprise and Mission customers. For Enterprise customers, we deliver talent with the specific technical and functional knowledge to support internal agency operations. Examples include functional software development expertise, data and business analysis, and IT operations support. For Mission customers, we deliver talent with technical and domain knowledge to support the execution of an agency’s mission. Examples include engineering expertise such as naval architecture, marine engineering, and life cycle support; and mission support expertise such as intelligence and special operations support, and network and exploitation analysis. Ukraine. •A stable-to-higher USG budget environment, particularly in defense and intelligence-related areas; •Increased focus on cyber, space, and the electromagnetic spectrum as key domains for National Security; •Increased spend on network and application modernization and enhancements to cyber security posture; •Increased investments in advanced technologies (e.g., Artificial Intelligence, 5G), particularly software-based technologies; •Increasing focus on near-peer competitors and other nation state threats; Dollar Amount Three Months Ended September 30, Change 2022 2021 Dollar Percent Revenues $ 1,605,759 $ 1,490,898 $ 114,861 7.7% Costs of revenues: Direct costs 1,055,772 974,171 81,601 8.4% Indirect costs and selling expenses 382,081 357,106 24,975 7.0% Depreciation and amortization 35,103 32,592 2,511 7.7% Total costs of revenues 1,472,956 1,363,869 109,087 8.0% Income from operations 132,803 127,029 5,774 4.5% Interest expense and other, net 16,193 10,398 5,795 55.7% Income before income taxes 116,610 116,631 (21 ) (0.0)% Income taxes 27,485 28,522 (1,037 ) (3.6)% Net income $ 89,125 $ 88,109 $ 1,016 1.2% Dollar Amount Three Months Ended September 30, Change 2022 2021 Dollar Percent Department of Defense $ 1,095,320 $ 1,000,127 $ 95,193 9.5% Federal Civilian Agencies 424,087 413,664 10,423 2.5% Commercial and other 86,352 77,107 9,245 12.0% Total $ 1,605,759 $ 1,490,898 $ 114,861 7.7% •DoD revenues include Expertise and Technology provided to various Department of Defense customers. •Federal civilian agencies’ revenues primarily include Expertise and Technology provided to non-DoD agencies and departments of the U.S. federal government, including intelligence agencies and Departments of Homeland Security, Justice, Agriculture, Health and Human Services, and State. Direct Costs. The increase in direct costs for the three and nine months ended Income Tax Expense. The Company’s effective income tax •Funded backlog represents contract value for which funding has been appropriated less revenues previously recognized on these contracts. Effective April 3, 2023, as a result of reference rate reform and the expected discontinuation of LIBOR, CACI completed the transition of its Credit Facility and its interest rate swaps designated as cash flow hedges from LIBOR-indexed interest payments to SOFR-indexed interest payments. A summary of the change in cash and cash equivalents is presented below (in thousands): Three Months Ended September 30, 2022 2021 Net cash provided by operating activities $ 144,843 $ 185,953 Net cash used in investing activities (12,771 ) (126,476 ) Net cash used in financing activities (106,096 ) (41,717 ) Effect of exchange rate changes on cash and cash equivalents (4,144 ) (1,361 ) Net change in cash and cash equivalents $ 21,832 $ 16,399 March 31, 2023. Period Total Number of Shares Purchased Average Price Paid Per Share Total Number of Shares Purchased As Part of Publicly Announced Programs Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs July 2022 9,208 $ 287.45 1,302,674 197,326 August 2022 — — — — September 2022 — $ — — — Total 9,208 1,302,674 Incorporated by Reference Exhibit No. Description Filed with this Form 10-Q Form Filing Date Exhibit No. 10.1 Severance Compensation Agreement with Jeffrey D. MacLauchlan dated October 3, 2022. 8-K October 3, 2022 10.1 31.1 X 31.2 X 32.1 X 32.2 X 101.INS XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document) 101.SCH Inline XBRL Taxonomy Extension Schema Document 101.CAL Inline XBRL Taxonomy Extension Calculation Linkbase Document 101.DEF Inline XBRL Taxonomy Extension Definition Linkbase Document 101.LAB Inline XBRL Taxonomy Extension Label Linkbase Document 101.PRE Inline XBRL Taxonomy Extension Presentation Linkbase Document 104 Cover Page Interactive Data File (embedded within the Inline XBRL document and contained in Exhibit 101) Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.•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; andthe 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.•Enterprise – CACI provides capabilities that enable the internal operations of a government agency. Mission – CACI provides capabilities that enable the execution of a government agency’s primary function, or “mission”.Expertise – CACI provides Expertise to both Enterprise and Mission customers. For Enterprise customers, we deliver talent with the specific technical and functional knowledge to support internal agency operations. Examples include functional software development expertise, data and business analysis, and IT operations support. For Mission customers, we deliver talent with technical and domain knowledge to support the execution of an agency’s mission. Examples include engineering expertise such as naval architecture, marine engineering, and life cycle support; and mission support expertise such as intelligence and special operations support. Technology – CACI delivers Technology to both Enterprise and Mission customers. For both Enterprise and Mission, CACI provides: Software development at scale using open modern architectures, DevSecOps, and agile methodologies; and advanced data platforms, data operations and analyst-centric analytics including application of Artificial Intelligence and multi-source analysis. Additional examples of Enterprise technology include: Network and IT modernization; The customization, implementation, and maintenance of commercial-off-the-shelf (COTS) and enterprise resource planning (ERP) systems including financial, human capital, and supply chain management systems; and cyber security active defense and zero trust architectures. Additional examples of Mission technology include: Developing and deploying multi-domain offerings for signals intelligence, resilient communications, free space optical communications, electronic warfare including Counter-UAS, cyber operations, and Radio Frequency (RF) and 5G spectrum awareness, agility and usage. CACI invests ahead of customer need with research and development to generate unique intellectual property and differentiated technology addressing critical national security and government modernization needs.March 15,December 29, 2022, the President signed into law the omnibus appropriations bill that provided full-year funding for the government fiscal year (GFY) ending September 30, 2022 (GFY22)2023 (GFY23). Of the total approximately $1.5$1.7 trillion in discretionary funding, approximately $782$858 billion was for national defense and approximately $730$773 billion was for nondefense. Thesenondefense, as well as an additional $47 billion of supplemental funding for Ukraine. The defense and nondefense funding levels represent increases of 5.6%approximately 10% and 6.7%6%, respectively, over GFY21GFY22 enacted levels. GFY22levels, which themselves were increases of approximately 6% and 7%, respectively, over GFY21. On March 9, 2023, the President released his budget request for GFY24, which calls for an increase in defense spending of approximately 3% and an increase in fact increased bothnondefense spending of approximately 8% over the President’s GFY22 budget requestGFY23 levels. While future levels of defense and the National Defense Authorization Act (NDAA) passed by Congress on December 27, 2021. Defensenondefense spending has generally increased over the last several years,are difficult to project, we believe that there continues to be bipartisan support for defense and national security-related spending, particularly given the heightened current global threat environment, including the conflict in Ukraine, this trend is likely to continue in GFY23. In fact, the President’s initial GFY23 budget proposal calls for an increase in aggregate defense spending of approximately 4% from GFY22 levels, and current deliberations in Congress suggest that the enacted GFY23 budget could see an even larger increase. In addition, funding for intelligence programs, including Military Intelligence Programs (MIP) and National Intelligence Programs (NIP), as well as cybersecurity-related programs, is also projected to increase in both GFY22 and GFY23.. On September 30, 2022, the President signed a CR,, a temporary measure allowing the government to continue operations through December 16, 2022 at prior year funding levels.Impact of COVID-19We continue to take steps to mitigate the impact of COVID-19 on our employees and our business. The impact of COVID-19 on our business will depend on future developments, which are uncertain and cannot be predicted, as well as other known factors outside our control. The surge of the Omicron variant of COVID-19, for example, resulted in increased positive cases broadly, including within the employee base of some of our government customers. As a result, some of our government customers limited in-person meetings, reduced access to customer facilities, and experienced disruptions to the normal operation of their business. We continue to work with our customers to implement appropriate risk mitigation efforts and alternative work arrangements, as necessary. Omicron and other COVID-19 variants, both in and outside the U.S., also continue to be one of several reasons for continued supply chain shortages.•A stable-to-higher USG budget environment, particularly in defense and intelligence-related areas;Increased focus on cyber, space, and the electromagnetic spectrum as key domains for National Security;Increased spend on network and application modernization and enhancements to cyber security posture;•Increased investments in advanced technologies (e.g., Artificial Intelligence, 5G), particularly software-based technologies;Increasing focus on near-peer competitors and other nation state threats;Continued focus on counterterrorism, counterintelligence, and counter proliferation as key U.S. security concerns; andIncreased demand for innovation and speed of delivery.September 30,March 31, 2023 and 2022 and 2021Dollar Amount Dollar Amount Three Months Ended March 31, Change Nine Months Ended March 31, Change 2023 2022 Dollar Percent 2023 2022 Dollar Percent Revenues $ 1,744,270 $ 1,583,980 $ 160,290 10.1% $ 4,999,445 $ 4,560,656 $ 438,789 9.6% Costs of revenues: Direct costs 1,143,781 1,022,181 121,600 11.9% 3,293,867 2,970,370 323,497 10.9% Indirect costs and selling expenses 410,235 402,227 8,008 2.0% 1,180,619 1,114,310 66,309 6.0% Depreciation and amortization 35,220 34,216 1,004 2.9% 106,255 99,484 6,771 6.8% Total costs of revenues 1,589,236 1,458,624 130,612 9.0% 4,580,741 4,184,164 396,577 9.5% Income from operations 155,034 125,356 29,678 23.7% 418,704 376,492 42,212 11.2% Interest expense and other, net 23,570 9,084 14,486 159.5% 59,705 30,491 29,214 95.8% Income before income taxes 131,464 116,272 15,192 13.1% 358,999 346,001 12,998 3.8% Income taxes 30,722 20,855 9,867 47.3% 82,031 72,176 9,855 13.7% Net income $ 100,742 $ 95,417 $ 5,325 5.6% $ 276,968 $ 273,825 $ 3,143 1.1% September 30, 2022,March 31, 2023, as compared to the three and nine months ended September 2021,March 31, 2023, was primarily attributable to growth on existing programs, new contract awards and growth on existing programs. The increase in revenues for the nine months ended March 31, 2023 was also attributable to revenues from the acquisitions completed in fiscal year 2022.SeptemberMarch 31, 2023 and 2022, and 2021, respectively (in thousands):•DoD revenues include Expertise and Technology provided to various Department of Defense customers.Dollar Amount Dollar Amount Three Months Ended March 31, Change Nine Months Ended March 31, Change 2023 2022 Dollar Percent 2023 2022 Dollar Percent Department of Defense $ 1,298,700 $ 1,118,665 $ 180,035 16.1% $ 3,554,080 $ 3,155,806 $ 398,274 12.6% Federal Civilian Agencies 355,612 380,837 (25,225) (6.6)% 1,179,467 1,166,398 13,069 1.1% Commercial and other 89,958 84,478 5,480 6.5% 265,898 238,452 27,446 11.5% Total $ 1,744,270 $ 1,583,980 $ 160,290 10.1% $ 4,999,445 $ 4,560,656 $ 438,789 9.6% Federal civilian agencies’ revenues primarily include Expertise and Technology provided to non-DoD agencies and departments of the U.S. federal government, including intelligence agencies and Departments of Homeland Security, Justice, Agriculture, Health and Human Services, and State. •Commercial and other revenues primarily include Expertise and Technology provided to U.S. state and local governments, commercial customers, and certain foreign governments and agencies through our International reportable segment.September 30, 2022,March 31, 2023, as compared to the prior year quarter,periods, was primarily attributable to the increased revenues and a higher volume of materials and other direct costs. As a percentage of revenue, direct costs were 65.7%65.6% and 65.3%65.9% for the three and nine months ended September 30,March 31, 2023, respectively and 64.5% and 65.1% for the three and nine months ended March 31, 2022, and 2021, respectively. Direct costs include direct labor, subcontractor costs, materials, and other direct costs.September 30, 2022,March 31, 2023, as compared to the prior year quarter,periods, was primarily attributable to the acquisitions completedincremental costs of running the businesses acquired in fiscal year 2022 and an increase in fringe benefit expenses. As a percentage of revenue, indirect costs and selling expenses were 23.8%23.5% and 24.0%23.6% for the three and nine months ended September 30,March 31, 2023, respectively and 25.4% and 24.4% for the three and nine months ended March 31, 2022, and 2021, respectively.September 30, 2022,March 31, 2023, as compared to the prior year quarter,periods, was primarily attributable to depreciation from the Company’s higher average property and equipment and intangible amortization from the acquisitions in fiscal year 2022.September 30, 2022,March 31, 2023, as compared to the prior year quarter,periods, was primarily attributable to higher interest rates on outstanding debt.provisionrate was 23.4% and 22.8% for the three and nine months ended September 30,March 31, 2023, respectively, and 17.9% and 20.9% for the three and nine months ended March 31, 2022, and 2021 represents an effective tax rate of 23.6% and 24.5%, respectively. The effective tax rates for the three and nine months ended September 30,March 31, 2023, and 2022 and 2021 both benefited from the favorable impact of research and development credits and the amount of excess tax benefits related to stock-based compensation, and are partially offset by the unfavorable impacts of certain executive compensation.•Funded backlog represents contract value for which funding has been appropriated less revenues previously recognized on these contracts.Unfunded backlog represents estimated values that have the potential to be recognized into revenue from executed contracts for which funding has not been appropriated and unexercised priced contract options. September 30, 2022,March 31, 2023, the Company had total backlog of $24.9$25.3 billion, compared with $23.9$23.5 billion a year ago, an increase of 4.2%7.7%. Funded backlog as of September 30, 2022March 31, 2023 was $3.7$3.4 billion. The total backlog consists of remaining performance obligations (see Note 4) plus unexercised options.To date, COVID-19 has not had a significant impact on our liquidity, cash flows or capital resources. However, the continued spread of COVID-19 has led to disruption and volatility in the global capital markets, which, depending on future developments, could impact our capital resources and liquidity in the future.September 30, 2022,March 31, 2023, we had $435.0$625.0 million outstanding under the Revolving Facility and no borrowings on the swing line.September 30, 2022, $1,202.0March 31, 2023, $1,186.7 million was outstanding under the Term Loan.Nine Months Ended
March 31, 20232023 2022 Net cash provided by operating activities $ 235,954 $ 593,013 Net cash used in investing activities (39,218) (653,588) Net cash (used in) provided by financing activities Net cash (used in) provided by financing activities (207,895) 100,835 Effect of exchange rate changes on cash and cash equivalents 3,144 (3,217) Net change in cash and cash equivalents $ (8,015) $ 37,043 $41.1$357.1 million for the threenine months ended September 30, 2022,March 31, 2023, when compared to the threenine months ended September 30, 2021,March 31, 2022, as a result of a $20.3$278.1 million increase in cash paid for income taxes, $10.5$153.8 million in net unfavorable changes in operating assets and liabilities driven by increased revenue volume and the timing of vendor payments, partially offset by strong cash collections, and a $9.6$39.3 million decreaseincrease in cash received from the Company's MARPA.$113.7$614.4 million for the threenine months ended September 30, 2022,March 31, 2023, when compared to the threenine months ended September 30, 2021,March 31, 2022, primarily as a result of a $116.3$615.8 million decrease in cash used in acquisitions of businesses partially offset by a $2.6$2.1 million increase in capital expenditures.$64.4$308.7 million for the threenine months ended September 30, 2022,March 31, 2023, when compared to the threenine months ended September 30, 2021,March 31, 2022, primarily as a result of a $63.9$263.1 million increase in repurchases of our common stock and a $52.7 million increase in net repaymentspayments under our Credit Facility.$800.0$1,200.0 million related to a portion of our floating rate indebtedness. All remaining balances under our Term Loan, and any additional amounts that may be borrowed under our Revolving Facility, are currently subject to interest rate fluctuations. With every one percent fluctuation in the applicable interest rates, interest expense on our variable rate debt for the threenine months ended September 30, 2022March 31, 2023 would have fluctuated by approximately $3.0$8.3 million.3.2%2.8% and 3.2% of our total revenues during the threenine months ended September 30,March 31, 2023 and 2022, and 2021, respectively, were derived from our international operations headquartered in the U.K. Our practice in our international operations is to negotiate contracts in the same currency in which the predominant expenses are incurred, thereby mitigating the exposure to foreign currency exchange fluctuations. It is not possible to accomplish this in all cases; thus, there is some risk that profits will be affected by foreign currency exchange fluctuations. As of September 30, 2022,March 31, 2023, we held a combination of euros and pounds sterling in the U.K. and the Netherlands equivalent to approximately $48.2$70.4 million. This allows us to better utilize our cash resources on behalf of our foreign subsidiaries, thereby mitigating foreign currency conversion risks.September 30, 2022.September 30, 2022.March 31, 2023.Period Total Number
of Shares
PurchasedAverage Price
Paid Per Share (1)Total Number of Shares Purchased As Part of
Publicly Announced
ProgramsMaximum Number of
Shares that May Yet Be
Purchased Under the
Plans or Programs (2)January 2023 685,989 $ 295.11 685,989 2,035,384 February 2023 — — — 2,035,384 March 2023 44,963 282.98 44,963 1,992,440 Total 730,952 $ 294.36 730,952 (1)Average Price Paid Per Share includes commissions paid.Incorporated by Reference Exhibit No. Description Filed with this Form 10-Q Form Filing Date Exhibit No. 10.1 X 31.1 X 31.2 X 32.1 X 32.2 X 101.INS XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document) 101.SCH Inline XBRL Taxonomy Extension Schema Document 101.CAL Inline XBRL Taxonomy Extension Calculation Linkbase Document 101.DEF Inline XBRL Taxonomy Extension Definition Linkbase Document 101.LAB Inline XBRL Taxonomy Extension Label Linkbase Document 101.PRE Inline XBRL Taxonomy Extension Presentation Linkbase Document 104 Cover Page Interactive Data File (embedded within the Inline XBRL document and contained in Exhibit 101) SIGNATURESSIGNATURES
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