| |||||
x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
2023
| |||||
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|
| |||||||
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 |
| ||||||||||||
Non-accelerated filer | o |
| Smaller reporting company |
| ||||||||||||
Emerging growth company |
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| Three Months Ended |
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| Six Months Ended |
| ||||||||||||||||||||||||||||||||||||
|
| December 31, |
|
| December 31, |
| Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||||||||||||||||||||||
|
| 2022 |
|
| 2021 |
|
| 2022 |
|
| 2021 |
| 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||
Revenues |
| $ | 1,649,416 |
|
| $ | 1,485,778 |
|
| $ | 3,255,175 |
|
| $ | 2,976,676 |
| Revenues | $ | 1,833,934 | $ | 1,649,416 | $ | 3,684,081 | $ | 3,255,175 | |||||||||||||||||
Costs of revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Costs of revenues: | |||||||||||||||||||||||||
Direct costs |
|
| 1,094,314 |
|
|
| 974,018 |
|
|
| 2,150,086 |
|
|
| 1,948,189 |
| Direct costs | 1,255,251 | 1,094,314 | 2,528,169 | 2,150,086 | |||||||||||||||||||||
Indirect costs and selling expenses |
|
| 388,303 |
|
|
| 354,977 |
|
|
| 770,384 |
|
|
| 712,083 |
| Indirect costs and selling expenses | 409,355 | 388,303 | 813,988 | 770,384 | |||||||||||||||||||||
Depreciation and amortization |
|
| 35,932 |
|
|
| 32,676 |
|
|
| 71,035 |
|
|
| 65,268 |
| Depreciation and amortization | 36,023 | 35,932 | 71,270 | 71,035 | |||||||||||||||||||||
Total costs of revenues |
|
| 1,518,549 |
|
|
| 1,361,671 |
|
|
| 2,991,505 |
|
|
| 2,725,540 |
| Total costs of revenues | 1,700,629 | 1,518,549 | 3,413,427 | 2,991,505 | |||||||||||||||||||||
Income from operations |
|
| 130,867 |
|
|
| 124,107 |
|
|
| 263,670 |
|
|
| 251,136 |
| Income from operations | 133,305 | 130,867 | 270,654 | 263,670 | |||||||||||||||||||||
Interest expense and other, net |
|
| 19,942 |
|
|
| 11,009 |
|
|
| 36,135 |
|
|
| 21,407 |
| Interest expense and other, net | 27,519 | 19,942 | 53,090 | 36,135 | |||||||||||||||||||||
Income before income taxes |
|
| 110,925 |
|
|
| 113,098 |
|
|
| 227,535 |
|
|
| 229,729 |
| Income before income taxes | 105,786 | 110,925 | 217,564 | 227,535 | |||||||||||||||||||||
Income taxes |
|
| 23,824 |
|
|
| 22,799 |
|
|
| 51,309 |
|
|
| 51,321 |
| Income taxes | 21,916 | 23,824 | 47,647 | 51,309 | |||||||||||||||||||||
Net income |
| $ | 87,101 |
|
| $ | 90,299 |
|
| $ | 176,226 |
|
| $ | 178,408 |
| Net income | $ | 83,870 | $ | 87,101 | $ | 169,917 | $ | 176,226 | |||||||||||||||||
Basic earnings per share |
| $ | 3.71 |
|
| $ | 3.86 |
|
| $ | 7.51 |
|
| $ | 7.60 |
| Basic earnings per share | $ | 3.76 | $ | 3.71 | $ | 7.56 | $ | 7.51 | |||||||||||||||||
Diluted earnings per share |
| $ | 3.68 |
|
| $ | 3.83 |
|
| $ | 7.44 |
|
| $ | 7.52 |
| Diluted earnings per share | $ | 3.74 | $ | 3.68 | $ | 7.50 | $ | 7.44 | |||||||||||||||||
Weighted-average basic shares outstanding |
|
| 23,506 |
|
|
| 23,399 |
|
|
| 23,463 |
|
|
| 23,480 |
| Weighted-average basic shares outstanding | 22,282 | 23,506 | 22,464 | 23,463 | |||||||||||||||||||||
Weighted-average diluted shares outstanding |
|
| 23,676 |
|
|
| 23,598 |
|
|
| 23,677 |
|
|
| 23,722 |
| Weighted-average diluted shares outstanding | 22,407 | 23,676 | 22,650 | 23,677 |
CACI INTERNATIONAL INC
|
| Three Months Ended |
|
| Six Months Ended |
| ||||||||||||||||||||||||||||||||||||
|
| December 31, |
|
| December 31, |
| Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||||||||||||||||||||||
|
| 2022 |
|
| 2021 |
|
| 2022 |
|
| 2021 |
| 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||
Net income |
| $ | 87,101 |
|
| $ | 90,299 |
|
| $ | 176,226 |
|
| $ | 178,408 |
| Net income | $ | 83,870 | $ | 87,101 | $ | 169,917 | $ | 176,226 | |||||||||||||||||
Other comprehensive income (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Other comprehensive income (loss): | |||||||||||||||||||||||||
Foreign currency translation adjustment |
|
| 17,123 |
|
|
| 575 |
|
|
| (366 | ) |
|
| (6,187 | ) | Foreign currency translation adjustment | 11,446 | 17,123 | 2,245 | (366) | |||||||||||||||||||||
Change in fair value of interest rate swap agreements, net of tax |
|
| (1,516 | ) |
|
| 5,424 |
|
|
| 14,013 |
|
|
| 7,638 |
| Change in fair value of interest rate swap agreements, net of tax | (19,222) | (1,516) | (13,790) | 14,013 | |||||||||||||||||||||
Other comprehensive income, net of tax |
|
| 15,607 |
|
|
| 5,999 |
|
|
| 13,647 |
|
|
| 1,451 |
| ||||||||||||||||||||||||||
Total other comprehensive income (loss), net of tax | Total other comprehensive income (loss), net of tax | (7,776) | 15,607 | (11,545) | 13,647 | |||||||||||||||||||||||||||||||||||||
Comprehensive income |
| $ | 102,708 |
|
| $ | 96,298 |
|
| $ | 189,873 |
|
| $ | 179,859 |
| Comprehensive income | $ | 76,094 | $ | 102,708 | $ | 158,372 | $ | 189,873 |
CACI INTERNATIONAL INC
|
| December 31, |
|
| June 30, |
| ||||||||||||||||
|
| 2022 |
|
| 2022 |
| December 31, 2023 | June 30, 2023 | ||||||||||||||
ASSETS |
|
|
|
|
|
|
|
| ASSETS | |||||||||||||
Current assets: |
|
|
|
|
|
|
|
| Current assets: | |||||||||||||
Cash and cash equivalents |
| $ | 114,738 |
|
| $ | 114,804 |
| Cash and cash equivalents | $ | 128,851 | $ | 115,776 | |||||||||
Accounts receivable, net |
|
| 868,629 |
|
|
| 926,144 |
| Accounts receivable, net | 947,452 | 894,946 | |||||||||||
Prepaid expenses and other current assets |
|
| 191,811 |
|
|
| 168,690 |
| Prepaid expenses and other current assets | 227,501 | 199,315 | |||||||||||
Total current assets |
|
| 1,175,178 |
|
|
| 1,209,638 |
| Total current assets | 1,303,804 | 1,210,037 | |||||||||||
Goodwill |
|
| 4,063,834 |
|
|
| 4,058,291 |
| Goodwill | 4,106,113 | 4,084,705 | |||||||||||
Intangible assets, net |
|
| 543,058 |
|
|
| 581,385 |
| Intangible assets, net | 474,964 | 507,835 | |||||||||||
Property, plant and equipment, net |
|
| 195,567 |
|
|
| 205,622 |
| Property, plant and equipment, net | 190,199 | 199,519 | |||||||||||
Operating lease right-of-use assets |
|
| 301,012 |
|
|
| 317,359 |
| Operating lease right-of-use assets | 309,084 | 312,989 | |||||||||||
Supplemental retirement savings plan assets |
|
| 95,752 |
|
|
| 96,114 |
| Supplemental retirement savings plan assets | 97,559 | 96,739 | |||||||||||
Accounts receivable, long-term |
|
| 11,843 |
|
|
| 10,199 |
| Accounts receivable, long-term | 12,409 | 11,857 | |||||||||||
Other long-term assets |
|
| 168,305 |
|
|
| 150,823 |
| Other long-term assets | 164,310 | 177,127 | |||||||||||
Total assets |
| $ | 6,554,549 |
|
| $ | 6,629,431 |
| Total assets | $ | 6,658,442 | $ | 6,600,808 | |||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||
Current liabilities: |
|
|
|
|
|
|
|
| Current liabilities: | |||||||||||||
Current portion of long-term debt |
| $ | 30,625 |
|
| $ | 30,625 |
| Current portion of long-term debt | $ | 61,250 | $ | 45,938 | |||||||||
Accounts payable |
|
| 270,768 |
|
|
| 303,443 |
| Accounts payable | 298,544 | 198,177 | |||||||||||
Accrued compensation and benefits |
|
| 345,779 |
|
|
| 405,722 |
| Accrued compensation and benefits | 248,187 | 372,354 | |||||||||||
Other accrued expenses and current liabilities |
|
| 334,476 |
|
|
| 287,571 |
| Other accrued expenses and current liabilities | 378,145 | 377,502 | |||||||||||
Total current liabilities |
|
| 981,648 |
|
|
| 1,027,361 |
| Total current liabilities | 986,126 | 993,971 | |||||||||||
Long-term debt, net of current portion |
|
| 1,534,961 |
|
|
| 1,702,148 |
| Long-term debt, net of current portion | 1,713,413 | 1,650,443 | |||||||||||
Supplemental retirement savings plan obligations, net of current portion |
|
| 103,512 |
|
|
| 102,127 |
| Supplemental retirement savings plan obligations, net of current portion | 112,514 | 104,912 | |||||||||||
Deferred income taxes |
|
| 273,626 |
|
|
| 356,841 |
| Deferred income taxes | 55,293 | 120,545 | |||||||||||
Operating lease liabilities, noncurrent |
|
| 296,637 |
|
|
| 315,315 |
| Operating lease liabilities, noncurrent | 323,919 | 329,432 | |||||||||||
Other long-term liabilities |
|
| 113,919 |
|
|
| 72,096 |
| Other long-term liabilities | 231,553 | 177,171 | |||||||||||
Total liabilities |
| $ | 3,304,303 |
|
| $ | 3,575,888 |
| Total liabilities | $ | 3,422,818 | $ | 3,376,474 | |||||||||
COMMITMENTS AND CONTINGENCIES |
|
|
|
|
|
|
|
| ||||||||||||||
COMMITMENTS AND CONTINGENCIES (NOTE 9) | COMMITMENTS AND CONTINGENCIES (NOTE 9) | |||||||||||||||||||||
Shareholders’ equity: |
|
|
|
|
|
|
|
| Shareholders’ equity: | |||||||||||||
Preferred stock $0.10 par value, 10,000 shares authorized, no shares issued or outstanding |
|
| — |
|
|
| — |
| 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; 42,911 shares issued and 23,508 outstanding at December 31, 2022 and 42,820 shares issued and 23,416 outstanding at June 30, 2022 |
|
| 4,291 |
|
|
| 4,282 |
| ||||||||||||||
Common stock $0.10 par value, 80,000 shares authorized; 43,027 shares issued and 22,285 outstanding at December 31, 2023 and 42,923 shares issued and 22,797 outstanding at June 30, 2023 | Common stock $0.10 par value, 80,000 shares authorized; 43,027 shares issued and 22,285 outstanding at December 31, 2023 and 42,923 shares issued and 22,797 outstanding at June 30, 2023 | 4,303 | 4,292 | |||||||||||||||||||
Additional paid-in capital |
|
| 578,470 |
|
|
| 571,650 |
| Additional paid-in capital | 602,613 | 546,334 | |||||||||||
Retained earnings |
|
| 3,732,107 |
|
|
| 3,555,881 |
| Retained earnings | 4,110,533 | 3,940,616 | |||||||||||
Accumulated other comprehensive loss |
|
| (17,429 | ) |
|
| (31,076 | ) | Accumulated other comprehensive loss | (16,596) | (5,051) | |||||||||||
Treasury stock, at cost (19,404 and 19,404 shares, respectively) |
|
| (1,047,328 | ) |
|
| (1,047,329 | ) | ||||||||||||||
Treasury stock, at cost (20,742 and 20,126 shares, respectively) | Treasury stock, at cost (20,742 and 20,126 shares, respectively) | (1,465,364) | (1,261,992) | |||||||||||||||||||
Total CACI shareholders’ equity |
|
| 3,250,111 |
|
|
| 3,053,408 |
| Total CACI shareholders’ equity | 3,235,489 | 3,224,199 | |||||||||||
Noncontrolling interest |
|
| 135 |
|
|
| 135 |
| Noncontrolling interest | 135 | 135 | |||||||||||
Total shareholders’ equity |
|
| 3,250,246 |
|
|
| 3,053,543 |
| Total shareholders’ equity | 3,235,624 | 3,224,334 | |||||||||||
Total liabilities and shareholders’ equity |
| $ | 6,554,549 |
|
| $ | 6,629,431 |
| Total liabilities and shareholders’ equity | $ | 6,658,442 | $ | 6,600,808 |
CACI INTERNATIONAL INC
|
| Six Months Ended |
| |||||||||||||||||||
|
| December 31, |
| Six Months Ended December 31, | ||||||||||||||||||
|
| 2022 |
|
| 2021 |
| 2023 | 2022 | ||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
|
|
|
| CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||||
Net income |
| $ | 176,226 |
|
| $ | 178,408 |
| Net income | $ | 169,917 | $ | 176,226 | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
|
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||
Depreciation and amortization |
|
| 71,035 |
|
|
| 65,268 |
| Depreciation and amortization | 71,270 | 71,035 | |||||||||||
Amortization of deferred financing costs |
|
| 1,126 |
|
|
| 1,147 |
| Amortization of deferred financing costs | 1,095 | 1,126 | |||||||||||
Loss on extinguishment of debt |
|
| — |
|
|
| 891 |
| ||||||||||||||
Non-cash lease expense |
|
| 34,909 |
|
|
| 33,943 |
| Non-cash lease expense | 33,835 | 34,909 | |||||||||||
Stock-based compensation expense |
|
| 20,196 |
|
|
| 14,698 |
| Stock-based compensation expense | 22,949 | 20,196 | |||||||||||
Deferred income taxes |
|
| (48,320 | ) |
|
| (1,962 | ) | Deferred income taxes | (25,770) | (48,320) | |||||||||||
Changes in operating assets and liabilities, net of effect of business acquisitions: |
|
|
|
|
|
|
|
| Changes in operating assets and liabilities, net of effect of business acquisitions: | |||||||||||||
Accounts receivable, net |
|
| 55,518 |
|
|
| 72,650 |
| Accounts receivable, net | (50,642) | 55,518 | |||||||||||
Prepaid expenses and other assets |
|
| (30,322 | ) |
|
| (24,701 | ) | Prepaid expenses and other assets | (28,703) | (30,322) | |||||||||||
Accounts payable and other accrued expenses |
|
| 28,157 |
|
|
| 39,535 |
| Accounts payable and other accrued expenses | 90,769 | 28,157 | |||||||||||
Accrued compensation and benefits |
|
| (59,917 | ) |
|
| (89,752 | ) | Accrued compensation and benefits | (124,640) | (59,917) | |||||||||||
Income taxes payable and receivable |
|
| (5,110 | ) |
|
| 46,402 |
| Income taxes payable and receivable | 2,879 | (5,110) | |||||||||||
Operating lease liabilities |
|
| (40,050 | ) |
|
| (34,169 | ) | Operating lease liabilities | (38,206) | (40,050) | |||||||||||
Long-term liabilities |
|
| 3,642 |
|
|
| 6,407 |
| Long-term liabilities | 17,099 | 3,642 | |||||||||||
Net cash provided by operating activities |
|
| 207,090 |
|
|
| 308,765 |
| Net cash provided by operating activities | 141,852 | 207,090 | |||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
|
|
|
|
| CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||||
Capital expenditures |
|
| (25,670 | ) |
|
| (21,632 | ) | Capital expenditures | (29,410) | (25,670) | |||||||||||
Acquisition of businesses, net of cash acquired |
|
| — |
|
|
| (609,356 | ) | ||||||||||||||
Acquisitions of businesses, net of cash acquired | Acquisitions of businesses, net of cash acquired | (10,869) | — | |||||||||||||||||||
Other |
|
| — |
|
|
| 923 |
| Other | 1,974 | — | |||||||||||
Net cash used in investing activities |
|
| (25,670 | ) |
|
| (630,065 | ) | Net cash used in investing activities | (38,305) | (25,670) | |||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
|
|
|
|
| CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||||
Proceeds from borrowings under bank credit facilities |
|
| 1,101,500 |
|
|
| 1,735,095 |
| Proceeds from borrowings under bank credit facilities | 1,531,500 | 1,101,500 | |||||||||||
Principal payments made under bank credit facilities |
|
| (1,269,813 | ) |
|
| (1,356,230 | ) | Principal payments made under bank credit facilities | (1,454,313) | (1,269,813) | |||||||||||
Payment of financing costs under bank credit facilities |
|
| — |
|
|
| (6,286 | ) | ||||||||||||||
Proceeds from employee stock purchase plans |
|
| 5,288 |
|
|
| 5,221 |
| Proceeds from employee stock purchase plans | 5,848 | 5,288 | |||||||||||
Repurchases of common stock |
|
| (5,286 | ) |
|
| (4,995 | ) | Repurchases of common stock | (155,765) | (5,286) | |||||||||||
Payment of taxes for equity transactions |
|
| (13,269 | ) |
|
| (13,956 | ) | Payment of taxes for equity transactions | (18,061) | (13,269) | |||||||||||
Net cash (used in) provided by financing activities |
|
| (181,580 | ) |
|
| 358,849 |
| ||||||||||||||
Net cash used in financing activities | Net cash used in financing activities | (90,791) | (181,580) | |||||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents |
|
| 94 |
|
|
| (1,477 | ) | Effect of exchange rate changes on cash and cash equivalents | 319 | 94 | |||||||||||
Net change in cash and cash equivalents |
|
| (66 | ) |
|
| 36,072 |
| Net change in cash and cash equivalents | 13,075 | (66) | |||||||||||
Cash and cash equivalents at beginning of period |
|
| 114,804 |
|
|
| 88,031 |
| ||||||||||||||
Cash and cash equivalents at end of period |
| $ | 114,738 |
|
| $ | 124,103 |
| ||||||||||||||
Cash and cash equivalents, beginning of period | Cash and cash equivalents, beginning of period | 115,776 | 114,804 | |||||||||||||||||||
Cash and cash equivalents, end of period | Cash and cash equivalents, end of period | $ | 128,851 | $ | 114,738 | |||||||||||||||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION |
|
|
|
|
|
|
|
| SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | |||||||||||||
Cash paid during the period for income taxes, net of refunds |
| $ | 100,400 |
|
| $ | 4,509 |
| Cash paid during the period for income taxes, net of refunds | $ | 60,381 | $ | 100,400 | |||||||||
Cash paid during the period for interest |
| $ | 27,654 |
|
| $ | 19,042 |
| Cash paid during the period for interest | $ | 46,986 | $ | 27,654 | |||||||||
Non-cash financing and investing activities: |
|
|
|
|
|
|
|
| Non-cash financing and investing activities: | |||||||||||||
Accrued capital expenditures | Accrued capital expenditures | $ | 1,769 | $ | 736 | |||||||||||||||||
Landlord sponsored tenant incentives |
| $ | 1,908 |
|
| $ | 1,178 |
| Landlord sponsored tenant incentives | $ | 2,693 | $ | 1,908 | |||||||||
Accrued capital expenditures |
| $ | 736 |
|
| $ | 813 |
|
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 September 30, 2023 | Balance at September 30, 2023 | 42,929 | $ | 4,293 | $ | 594,885 | $ | 4,026,663 | $ | (8,820) | 20,703 | $ | (1,453,123) | $ | 3,163,898 | $ | 135 | $ | 3,164,033 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | Net income | — | — | — | 83,870 | — | — | — | 83,870 | — | 83,870 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | Stock-based compensation expense | — | — | 12,925 | — | — | — | — | 12,925 | — | 12,925 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tax withholdings on restricted share vestings | Tax withholdings on restricted share vestings | 98 | 10 | (17,341) | — | — | — | — | (17,331) | — | (17,331) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss, net of tax | Other comprehensive loss, net of tax | — | — | — | — | (7,776) | — | — | (7,776) | — | (7,776) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchases of common stock | Repurchases of common stock | — | — | 12,144 | — | — | 48 | (14,932) | (2,788) | — | (2,788) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Treasury stock issued under stock purchase plans | Treasury stock issued under stock purchase plans | — | — | — | — | — | (9) | 2,691 | 2,691 | — | 2,691 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2023 | Balance at December 31, 2023 | 43,027 | $ | 4,303 | $ | 602,613 | $ | 4,110,533 | $ | (16,596) | 20,742 | $ | (1,465,364) | $ | 3,235,489 | $ | 135 | $ | 3,235,624 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
| 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 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 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 | ||||||||||||||||||||||||||||||||||||||||
Net income |
|
| — |
|
|
| — |
|
|
| — |
|
|
| 87,101 |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 87,101 |
|
|
| — |
|
|
| 87,101 |
| Net income | — | — | — | 87,101 | — | — | — | 87,101 | — | 87,101 | ||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense |
|
| — |
|
|
| — |
|
|
| 11,757 |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 11,757 |
|
|
| — |
|
|
| 11,757 |
| Stock-based compensation expense | — | — | 11,757 | — | — | — | — | 11,757 | — | 11,757 | ||||||||||||||||||||||||||||||||||||||||||||||||
Tax withholdings on restricted share vestings |
|
| 85 |
|
|
| 8 |
|
|
| (12,679 | ) |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| (12,671 | ) |
|
| — |
|
|
| (12,671 | ) | Tax withholdings on restricted share vestings | 85 | 8 | (12,679) | — | — | — | — | (12,671) | — | (12,671) | ||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income, net of tax |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 15,607 |
|
|
| — |
|
|
| — |
|
|
| 15,607 |
|
|
| — |
|
|
| 15,607 |
| Other comprehensive income, net of tax | — | — | — | — | 15,607 | — | — | 15,607 | — | 15,607 | ||||||||||||||||||||||||||||||||||||||||||||||||
Repurchases of common stock |
|
| — |
|
|
| — |
|
|
| (143 | ) |
|
| — |
|
|
| — |
|
|
| 10 |
|
|
| (2,496 | ) |
|
| (2,639 | ) |
|
| — |
|
|
| (2,639 | ) | Repurchases of common stock | — | — | (143) | — | — | 10 | (2,496) | (2,639) | — | (2,639) | ||||||||||||||||||||||||||||||||||||||||||||||||
Treasury stock issued under stock purchase plans |
|
| — |
|
|
| — |
|
|
| 24 |
|
|
| — |
|
|
| — |
|
|
| (10 | ) |
|
| 2,497 |
|
|
| 2,521 |
|
|
| — |
|
|
| 2,521 |
| Treasury stock issued under stock purchase plans | — | — | 24 | — | — | (10) | 2,497 | 2,521 | — | 2,521 | ||||||||||||||||||||||||||||||||||||||||||||||||
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 |
| 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 | ||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 June 30, 2023 | Balance at June 30, 2023 | 42,923 | $ | 4,292 | $ | 546,334 | $ | 3,940,616 | $ | (5,051) | 20,126 | $ | (1,261,992) | $ | 3,224,199 | $ | 135 | $ | 3,224,334 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income |
|
| — |
|
|
| — |
|
|
| — |
|
|
| 90,299 |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 90,299 |
|
|
| — |
|
|
| 90,299 |
| Net income | — | — | — | 169,917 | — | — | — | 169,917 | — | 169,917 | ||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense |
|
| — |
|
|
| — |
|
|
| 8,029 |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 8,029 |
|
|
| — |
|
|
| 8,029 |
| Stock-based compensation expense | — | — | 22,949 | — | — | — | — | 22,949 | — | 22,949 | ||||||||||||||||||||||||||||||||||||||||||||||||
Tax withholdings on restricted share vestings |
|
| 100 |
|
|
| 10 |
|
|
| (13,536 | ) |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| (13,526 | ) |
|
| — |
|
|
| (13,526 | ) | Tax withholdings on restricted share vestings | 104 | 11 | (17,939) | — | — | — | — | (17,928) | — | (17,928) | ||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income, net of tax |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 5,999 |
|
|
| — |
|
|
| — |
|
|
| 5,999 |
|
|
| — |
|
|
| 5,999 |
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss, net of tax | Other comprehensive loss, net of tax | — | — | — | — | (11,545) | — | — | (11,545) | — | (11,545) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchases of common stock |
|
| — |
|
|
| — |
|
|
| (213 | ) |
|
| — |
|
|
| — |
|
|
| 9 |
|
|
| (2,310 | ) |
|
| (2,523 | ) |
|
| — |
|
|
| (2,523 | ) | Repurchases of common stock | — | — | 51,231 | — | — | 633 | (208,676) | (157,445) | — | (157,445) | ||||||||||||||||||||||||||||||||||||||||||||||||
Treasury stock issued under stock purchase plans |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| (9 | ) |
|
| 2,310 |
|
|
| 2,310 |
|
|
| — |
|
|
| 2,310 |
| Treasury stock issued under stock purchase plans | — | — | 38 | — | — | (17) | 5,304 | 5,342 | — | 5,342 | ||||||||||||||||||||||||||||||||||||||||||||||||
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 |
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2023 | Balance at December 31, 2023 | 43,027 | $ | 4,303 | $ | 602,613 | $ | 4,110,533 | $ | (16,596) | 20,742 | $ | (1,465,364) | $ | 3,235,489 | $ | 135 | $ | 3,235,624 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 |
|
| — |
|
|
| — |
|
|
| — |
|
|
| 176,226 |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 176,226 |
|
|
| — |
|
|
| 176,226 |
| Net income | — | — | — | 176,226 | — | — | — | 176,226 | — | 176,226 | ||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense |
|
| — |
|
|
| — |
|
|
| 20,196 |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 20,196 |
|
|
| — |
|
|
| 20,196 |
| Stock-based compensation expense | — | — | 20,196 | — | — | — | — | 20,196 | — | 20,196 | ||||||||||||||||||||||||||||||||||||||||||||||||
Tax withholdings on restricted share vestings |
|
| 91 |
|
|
| 9 |
|
|
| (13,115 | ) |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| (13,106 | ) |
|
| — |
|
|
| (13,106 | ) | Tax withholdings on restricted share vestings | 91 | 9 | (13,115) | — | — | — | — | (13,106) | — | (13,106) | ||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income, net of tax |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 13,647 |
|
|
| — |
|
|
| — |
|
|
| 13,647 |
|
|
| — |
|
|
| 13,647 |
| Other comprehensive income, net of tax | — | — | — | — | 13,647 | — | — | 13,647 | — | 13,647 | ||||||||||||||||||||||||||||||||||||||||||||||||
Repurchases of common stock |
|
| — |
|
|
| — |
|
|
| (325 | ) |
|
| — |
|
|
| — |
|
|
| 19 |
|
|
| (4,961 | ) |
|
| (5,286 | ) |
|
| — |
|
|
| (5,286 | ) | Repurchases of common stock | — | — | (325) | — | — | 19 | (4,961) | (5,286) | — | (5,286) | ||||||||||||||||||||||||||||||||||||||||||||||||
Treasury stock issued under stock purchase plans |
|
| — |
|
|
| — |
|
|
| 64 |
|
|
| — |
|
|
| — |
|
|
| (19 | ) |
|
| 4,962 |
|
|
| 5,026 |
|
|
| — |
|
|
| 5,026 |
| Treasury stock issued under stock purchase plans | — | — | 64 | — | — | (19) | 4,962 | 5,026 | — | 5,026 | ||||||||||||||||||||||||||||||||||||||||||||||||
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 |
| 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 | ||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 |
|
| — |
|
|
| — |
|
|
| — |
|
|
| 178,408 |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 178,408 |
|
|
| — |
|
|
| 178,408 |
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense |
|
| — |
|
|
| — |
|
|
| 14,698 |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 14,698 |
|
|
| — |
|
|
| 14,698 |
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tax withholdings on restricted share vestings |
|
| 134 |
|
|
| 13 |
|
|
| (13,812 | ) |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| (13,799 | ) |
|
| — |
|
|
| (13,799 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income, net of tax |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 1,451 |
|
|
| — |
|
|
| — |
|
|
| 1,451 |
|
|
| — |
|
|
| 1,451 |
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchases of common stock |
|
| — |
|
|
| — |
|
|
| 70,761 |
|
|
| — |
|
|
| — |
|
|
| 301 |
|
|
| (75,756 | ) |
|
| (4,995 | ) |
|
| — |
|
|
| (4,995 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Treasury stock issued under stock purchase plans |
|
| — |
|
|
| — |
|
|
| 61 |
|
|
| — |
|
|
| — |
|
|
| (19 | ) |
|
| 4,608 |
|
|
| 4,669 |
|
|
| — |
|
|
| 4,669 |
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 |
|
Domestic | International | Total | ||||||||||||||||||
Balance at June 30, 2023 | $ | 3,940,064 | $ | 144,641 | $ | 4,084,705 | ||||||||||||||
Goodwill acquired (1) | — | 19,280 | 19,280 | |||||||||||||||||
Foreign currency translation | 418 | 1,710 | 2,128 | |||||||||||||||||
Balance at December 31, 2023 | $ | 3,940,482 | $ | 165,631 | $ | 4,106,113 |
|
| 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 |
|
| (188 | ) |
|
| (341 | ) |
|
| (529 | ) |
Balance at December 31, 2022 |
| $ | 3,940,509 |
|
| $ | 123,325 |
|
| $ | 4,063,834 |
|
(1)Includes goodwill initially allocated to new business combinations as well as measurement period adjustments, when applicable. The final purchase price allocations for our fiscal 2024 and 2023 acquisitions remain open as of December 31, 2023.
|
|
There were no impairments of goodwill during the periods presented.
Intangible Assets
|
| December 31, 2022 |
|
| June 30, 2022 |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
| Gross carrying |
|
| Accumulated |
|
| Net carrying |
|
| Gross carrying |
|
| Accumulated |
|
| Net carrying |
| December 31, 2023 | June 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||
|
| 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 |
| $ | 656,249 |
|
| $ | (296,255 | ) |
| $ | 359,994 |
|
| $ | 656,353 |
|
| $ | (275,538 | ) |
| $ | 380,815 |
| Customer contracts and related customer relationships | $ | 659,629 | $ | (333,206) | $ | 326,423 | $ | 655,877 | $ | (313,745) | $ | 342,132 | |||||||||||||||||||||||||
Acquired technologies |
|
| 280,188 |
|
|
| (97,124 | ) |
|
| 183,064 |
|
|
| 280,196 |
|
|
| (79,626 | ) |
|
| 200,570 |
| Acquired technologies | 276,746 | (128,205) | 148,541 | 277,180 | (111,477) | 165,703 | |||||||||||||||||||||||||||||||
Total intangible assets |
| $ | 936,437 |
|
| $ | (393,379 | ) |
| $ | 543,058 |
|
| $ | 936,549 |
|
| $ | (355,164 | ) |
| $ | 581,385 |
| Total intangible assets | $ | 936,375 | $ | (461,411) | $ | 474,964 | $ | 933,057 | $ | (425,222) | $ | 507,835 |
|
| Three Months Ended |
|
| Six Months Ended |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
| December 31, 2022 |
|
| December 31, 2022 |
| Three Months Ended December 31, 2023 | Six Months Ended December 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
| Domestic |
|
| International |
|
| Total |
|
| Domestic |
|
| International |
|
| Total |
| Domestic | International | Total | Domestic | International | Total | ||||||||||||||||||||||||||||||||||||||
Cost-plus-fee |
| $ | 953,344 |
|
| $ | — |
|
| $ | 953,344 |
|
| $ | 1,888,090 |
|
| $ | — |
|
| $ | 1,888,090 |
| Cost-plus-fee | $ | 1,102,474 | $ | — | $ | 1,102,474 | $ | 2,236,909 | $ | — | $ | 2,236,909 | |||||||||||||||||||||||||
Fixed-price |
|
| 478,201 |
|
|
| 31,155 |
|
|
| 509,356 |
|
|
| 926,763 |
|
|
| 64,366 |
|
|
| 991,129 |
| Fixed-price | 485,086 | 34,458 | 519,544 | 952,302 | 69,319 | 1,021,621 | |||||||||||||||||||||||||||||||
Time-and-materials |
|
| 173,630 |
|
|
| 13,086 |
|
|
| 186,716 |
|
|
| 349,217 |
|
|
| 26,739 |
|
|
| 375,956 |
| Time-and-materials | 192,448 | 19,468 | 211,916 | 385,965 | 39,586 | 425,551 | |||||||||||||||||||||||||||||||
Total |
| $ | 1,605,175 |
|
| $ | 44,241 |
|
| $ | 1,649,416 |
|
| $ | 3,164,070 |
|
| $ | 91,105 |
|
| $ | 3,255,175 |
| Total | $ | 1,780,008 | $ | 53,926 | $ | 1,833,934 | $ | 3,575,176 | $ | 108,905 | $ | 3,684,081 |
|
| Three Months Ended |
|
| Six Months Ended |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
| December 31, 2021 |
|
| December 31, 2021 |
| Three Months Ended December 31, 2022 | Six Months Ended December 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
| Domestic |
|
| International |
|
| Total |
|
| Domestic |
|
| International |
|
| Total |
| Domestic | International | Total | Domestic | International | Total | ||||||||||||||||||||||||||||||||||||||
Cost-plus-fee |
| $ | 889,358 |
|
| $ | — |
|
| $ | 889,358 |
|
| $ | 1,783,071 |
|
| $ | — |
|
| $ | 1,783,071 |
| Cost-plus-fee | $ | 953,344 | $ | — | $ | 953,344 | $ | 1,888,090 | $ | — | $ | 1,888,090 | |||||||||||||||||||||||||
Fixed-price |
|
| 400,011 |
|
|
| 33,279 |
|
|
| 433,290 |
|
|
| 774,485 |
|
|
| 66,510 |
|
|
| 840,995 |
| Fixed-price | 478,201 | 31,155 | 509,356 | 926,763 | 64,366 | 991,129 | |||||||||||||||||||||||||||||||
Time-and-materials |
|
| 148,881 |
|
|
| 14,249 |
|
|
| 163,130 |
|
|
| 324,416 |
|
|
| 28,194 |
|
|
| 352,610 |
| Time-and-materials | 173,630 | 13,086 | 186,716 | 349,217 | 26,739 | 375,956 | |||||||||||||||||||||||||||||||
Total |
| $ | 1,438,250 |
|
| $ | 47,528 |
|
| $ | 1,485,778 |
|
| $ | 2,881,972 |
|
| $ | 94,704 |
|
| $ | 2,976,676 |
| Total | $ | 1,605,175 | $ | 44,241 | $ | 1,649,416 | $ | 3,164,070 | $ | 91,105 | $ | 3,255,175 |
|
| Three Months Ended |
|
| Six Months Ended |
| ||||||||||||||||||
|
| December 31, 2022 |
|
| December 31, 2022 |
| ||||||||||||||||||
|
| Domestic |
|
| International |
|
| Total |
|
| Domestic |
|
| International |
|
| Total |
| ||||||
Department of Defense |
| $ | 1,160,060 |
|
| $ | — |
|
| $ | 1,160,060 |
|
| $ | 2,255,380 |
|
| $ | — |
|
| $ | 2,255,380 |
|
Federal Civilian agencies |
|
| 399,768 |
|
|
| — |
|
|
| 399,768 |
|
|
| 823,855 |
|
|
| — |
|
|
| 823,855 |
|
Commercial and other |
|
| 45,347 |
|
|
| 44,241 |
|
|
| 89,588 |
|
|
| 84,835 |
|
|
| 91,105 |
|
|
| 175,940 |
|
Total |
| $ | 1,605,175 |
|
| $ | 44,241 |
|
| $ | 1,649,416 |
|
| $ | 3,164,070 |
|
| $ | 91,105 |
|
| $ | 3,255,175 |
|
|
| Three Months Ended |
|
| Six Months Ended |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
| December 31, 2021 |
|
| December 31, 2021 |
| Three Months Ended December 31, 2023 | Six Months Ended December 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
| Domestic |
|
| International |
|
| Total |
|
| Domestic |
|
| International |
|
| Total |
| Domestic | International | Total | Domestic | International | Total | ||||||||||||||||||||||||||||||||||||||
Department of Defense |
| $ | 1,037,014 |
|
| $ | — |
|
| $ | 1,037,014 |
|
| $ | 2,037,141 |
|
| $ | — |
|
| $ | 2,037,141 |
| Department of Defense | $ | 1,358,509 | $ | — | $ | 1,358,509 | $ | 2,710,815 | $ | — | $ | 2,710,815 | |||||||||||||||||||||||||
Federal Civilian agencies |
|
| 371,897 |
|
|
| — |
|
|
| 371,897 |
|
|
| 785,561 |
|
|
| — |
|
|
| 785,561 |
| ||||||||||||||||||||||||||||||||||||||
Federal civilian agencies | Federal civilian agencies | 389,942 | — | 389,942 | 797,286 | — | 797,286 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and other |
|
| 29,339 |
|
|
| 47,528 |
|
|
| 76,867 |
|
|
| 59,270 |
|
|
| 94,704 |
|
|
| 153,974 |
| Commercial and other | 31,557 | 53,926 | 85,483 | 67,075 | 108,905 | 175,980 | |||||||||||||||||||||||||||||||
Total |
| $ | 1,438,250 |
|
| $ | 47,528 |
|
| $ | 1,485,778 |
|
| $ | 2,881,972 |
|
| $ | 94,704 |
|
| $ | 2,976,676 |
| Total | $ | 1,780,008 | $ | 53,926 | $ | 1,833,934 | $ | 3,575,176 | $ | 108,905 | $ | 3,684,081 |
Three Months Ended December 31, 2022 | Six Months Ended December 31, 2022 | |||||||||||||||||||||||||||||||||||||
Domestic | International | Total | Domestic | International | Total | |||||||||||||||||||||||||||||||||
Department of Defense | $ | 1,160,060 | $ | — | $ | 1,160,060 | $ | 2,255,380 | $ | — | $ | 2,255,380 | ||||||||||||||||||||||||||
Federal civilian agencies | 399,768 | — | 399,768 | 823,855 | — | 823,855 | ||||||||||||||||||||||||||||||||
Commercial and other | 45,347 | 44,241 | 89,588 | 84,835 | 91,105 | 175,940 | ||||||||||||||||||||||||||||||||
Total | $ | 1,605,175 | $ | 44,241 | $ | 1,649,416 | $ | 3,164,070 | $ | 91,105 | $ | 3,255,175 |
|
| Three Months Ended |
|
| Six Months Ended |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
| December 31, 2022 |
|
| December 31, 2022 |
| Three Months Ended December 31, 2023 | Six Months Ended December 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
| Domestic |
|
| International |
|
| Total |
|
| Domestic |
|
| International |
|
| Total |
| Domestic | International | Total | Domestic | International | Total | ||||||||||||||||||||||||||||||||||||||
Prime contractor |
| $ | 1,420,367 |
|
| $ | 40,472 |
|
| $ | 1,460,839 |
|
| $ | 2,827,821 |
|
| $ | 83,328 |
|
| $ | 2,911,149 |
| Prime contractor | $ | 1,588,589 | $ | 47,788 | $ | 1,636,377 | $ | 3,189,680 | $ | 96,059 | $ | 3,285,739 | |||||||||||||||||||||||||
Subcontractor |
|
| 184,808 |
|
|
| 3,769 |
|
|
| 188,577 |
|
|
| 336,249 |
|
|
| 7,777 |
|
|
| 344,026 |
| Subcontractor | 191,419 | 6,138 | 197,557 | 385,496 | 12,846 | 398,342 | |||||||||||||||||||||||||||||||
Total |
| $ | 1,605,175 |
|
| $ | 44,241 |
|
| $ | 1,649,416 |
|
| $ | 3,164,070 |
|
| $ | 91,105 |
|
| $ | 3,255,175 |
| Total | $ | 1,780,008 | $ | 53,926 | $ | 1,833,934 | $ | 3,575,176 | $ | 108,905 | $ | 3,684,081 |
|
| Three Months Ended |
|
| Six Months Ended |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
| December 31, 2021 |
|
| December 31, 2021 |
| Three Months Ended December 31, 2022 | Six Months Ended December 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
| Domestic |
|
| International |
|
| Total |
|
| Domestic |
|
| International |
|
| Total |
| Domestic | International | Total | Domestic | International | Total | ||||||||||||||||||||||||||||||||||||||
Prime contractor |
| $ | 1,292,529 |
|
| $ | 43,317 |
|
| $ | 1,335,846 |
|
| $ | 2,591,182 |
|
| $ | 86,223 |
|
| $ | 2,677,405 |
| Prime contractor | $ | 1,420,367 | $ | 40,472 | $ | 1,460,839 | $ | 2,827,821 | $ | 83,328 | $ | 2,911,149 | |||||||||||||||||||||||||
Subcontractor |
|
| 145,721 |
|
|
| 4,211 |
|
|
| 149,932 |
|
|
| 290,790 |
|
|
| 8,481 |
|
|
| 299,271 |
| Subcontractor | 184,808 | 3,769 | 188,577 | 336,249 | 7,777 | 344,026 | |||||||||||||||||||||||||||||||
Total |
| $ | 1,438,250 |
|
| $ | 47,528 |
|
| $ | 1,485,778 |
|
| $ | 2,881,972 |
|
| $ | 94,704 |
|
| $ | 2,976,676 |
| Total | $ | 1,605,175 | $ | 44,241 | $ | 1,649,416 | $ | 3,164,070 | $ | 91,105 | $ | 3,255,175 |
|
| Three Months Ended |
|
| Six Months Ended |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
| December 31, 2022 |
|
| December 31, 2022 |
| Three Months Ended December 31, 2023 | Six Months Ended December 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
| Domestic |
|
| International |
|
| Total |
|
| Domestic |
|
| International |
|
| Total |
| Domestic | International | Total | Domestic | International | Total | ||||||||||||||||||||||||||||||||||||||
Expertise |
| $ | 725,503 |
|
| $ | 16,117 |
|
| $ | 741,620 |
|
| $ | 1,443,153 |
|
| $ | 32,670 |
|
| $ | 1,475,823 |
| Expertise | $ | 830,647 | $ | 18,894 | $ | 849,541 | $ | 1,687,843 | $ | 39,792 | $ | 1,727,635 | |||||||||||||||||||||||||
Technology |
|
| 879,672 |
|
|
| 28,124 |
|
|
| 907,796 |
|
|
| 1,720,917 |
|
|
| 58,435 |
|
|
| 1,779,352 |
| Technology | 949,361 | 35,032 | 984,393 | 1,887,333 | 69,113 | 1,956,446 | |||||||||||||||||||||||||||||||
Total |
| $ | 1,605,175 |
|
| $ | 44,241 |
|
| $ | 1,649,416 |
|
| $ | 3,164,070 |
|
| $ | 91,105 |
|
| $ | 3,255,175 |
| Total | $ | 1,780,008 | $ | 53,926 | $ | 1,833,934 | $ | 3,575,176 | $ | 108,905 | $ | 3,684,081 |
|
| Three Months Ended |
|
| Six Months Ended |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
| December 31, 2021 |
|
| December 31, 2021 |
| Three Months Ended December 31, 2022 | Six Months Ended December 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
| Domestic |
|
| International |
|
| Total |
|
| Domestic |
|
| International |
|
| Total |
| Domestic | International | Total | Domestic | International | Total | ||||||||||||||||||||||||||||||||||||||
Expertise |
| $ | 668,209 |
|
| $ | 18,100 |
|
| $ | 686,309 |
|
| $ | 1,351,833 |
|
| $ | 37,522 |
|
| $ | 1,389,355 |
| Expertise | $ | 725,503 | $ | 16,117 | $ | 741,620 | $ | 1,443,153 | $ | 32,670 | $ | 1,475,823 | |||||||||||||||||||||||||
Technology |
|
| 770,041 |
|
|
| 29,428 |
|
|
| 799,469 |
|
|
| 1,530,139 |
|
|
| 57,182 |
|
|
| 1,587,321 |
| Technology | 879,672 | 28,124 | 907,796 | 1,720,917 | 58,435 | 1,779,352 | |||||||||||||||||||||||||||||||
Total |
| $ | 1,438,250 |
|
| $ | 47,528 |
|
| $ | 1,485,778 |
|
| $ | 2,881,972 |
|
| $ | 94,704 |
|
| $ | 2,976,676 |
| Total | $ | 1,605,175 | $ | 44,241 | $ | 1,649,416 | $ | 3,164,070 | $ | 91,105 | $ | 3,255,175 |
Contract Balances
|
|
|
| December 31, |
|
| June 30, |
| ||||||||||||||||||||||
Description of Contract Related Balance |
| Financial Statement Classification |
| 2022 |
|
| 2022 |
| Description of Contract Related Balance | Financial Statement Classification | December 31, 2023 | June 30, 2023 | ||||||||||||||||||
Billed and billable receivables |
| Accounts receivable, net |
| $ | 753,254 |
|
| $ | 800,597 |
| Billed and billable receivables | Accounts receivable, net | $ | 792,647 | $ | 763,547 | ||||||||||||||
Contract assets – current unbilled receivables |
| Accounts receivable, net |
|
| 115,375 |
|
|
| 125,547 |
| Contract assets – current unbilled receivables | Accounts receivable, net | 154,805 | 131,399 | ||||||||||||||||
Contract assets – current costs to obtain |
| Prepaid expenses and other current assets |
|
| 5,186 |
|
|
| 5,167 |
| Contract assets – current costs to obtain | Prepaid expenses and other current assets | 5,684 | 5,163 | ||||||||||||||||
Contract assets – noncurrent unbilled receivables |
| Accounts receivable, long-term |
|
| 11,843 |
|
|
| 10,199 |
| Contract assets – noncurrent unbilled receivables | Accounts receivable, long-term | 12,409 | 11,857 | ||||||||||||||||
Contract assets – noncurrent costs to obtain |
| Other long-term assets |
|
| 9,197 |
|
|
| 10,703 |
| Contract assets – noncurrent costs to obtain | Other long-term assets | 10,598 | 8,294 | ||||||||||||||||
Contract liabilities – current deferred revenue and other contract liabilities |
| Other accrued expenses and current liabilities |
|
| (110,227 | ) |
|
| (84,810 | ) | Contract liabilities – current deferred revenue and other contract liabilities | Other accrued expenses and current liabilities | (128,861) | (138,469) | ||||||||||||||||
Contract liabilities – noncurrent deferred revenue and other contract liabilities |
| Other long-term liabilities |
|
| (6,308 | ) |
|
| (7,552 | ) | Contract liabilities – noncurrent deferred revenue and other contract liabilities | Other long-term liabilities | (5,393) | (5,522) |
|
| December 31, |
|
| June 30, |
| ||||||||||||||||
|
| 2022 |
|
| 2022 |
| December 31, 2023 | June 30, 2023 | ||||||||||||||
Materials, purchased parts and supplies |
| $ | 64,788 |
|
| $ | 57,407 |
| Materials, purchased parts and supplies | $ | 93,506 | $ | 78,691 | |||||||||
Work in process |
|
| 20,423 |
|
|
| 13,207 |
| Work in process | 14,142 | 21,894 | |||||||||||
Finished goods |
|
| 28,558 |
|
|
| 28,748 |
| Finished goods | 30,905 | 30,006 | |||||||||||
Total |
| $ | 113,769 |
|
| $ | 99,362 |
| Total | $ | 138,553 | $ | 130,591 |
As of and for the Six Months Ended December 31, | ||||||||||||||
2023 | 2022 | |||||||||||||
Beginning balance: | $ | 200,000 | $ | 157,785 | ||||||||||
Sales of receivables | 1,518,549 | 1,460,825 | ||||||||||||
Cash collections | (1,553,194) | (1,418,648) | ||||||||||||
Outstanding balance sold to Purchaser: (1) | 165,355 | 199,962 | ||||||||||||
Cash collected, not remitted to Purchaser (2) | (55,492) | (59,827) | ||||||||||||
Remaining sold receivables | $ | 109,863 | $ | 140,135 |
|
| As of and for the Six Months Ended |
| |||||
|
| December 31, |
| |||||
|
| 2022 |
|
| 2021 |
| ||
Beginning balance: |
| $ | 157,785 |
|
| $ | 182,027 |
|
Sales of receivables |
|
| 1,460,825 |
|
|
| 1,361,521 |
|
Cash collections |
|
| (1,418,648 | ) |
|
| (1,356,070 | ) |
Outstanding balance sold to Purchaser: (1) |
|
| 199,962 |
|
|
| 187,478 |
|
Cash collected, not remitted to Purchaser (2) |
|
| (59,827 | ) |
|
| (49,166 | ) |
Remaining sold receivables |
| $ | 140,135 |
|
| $ | 138,312 |
|
(1)For the six months ended December 31, 2023 and 2022, the Company recorded a net cash outflow of $(34.6) million and a net cash inflow of $42.2 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 December 31, 2023 and 2022. This balance is included in other accrued expenses and current liabilities as of the balance sheet date. |
|
|
| December 31, |
|
| June 30, |
| ||||||||||||||||
|
| 2022 |
|
| 2022 |
| December 31, 2023 | June 30, 2023 | ||||||||||||||
Bank credit facility – term loans |
| $ | 1,194,375 |
|
| $ | 1,209,688 |
| Bank credit facility – term loans | $ | 1,163,750 | $ | 1,179,063 | |||||||||
Bank credit facility – revolver loans |
|
| 380,000 |
|
|
| 533,000 |
| Bank credit facility – revolver loans | 617,500 | 525,000 | |||||||||||
Principal amount of long-term debt |
|
| 1,574,375 |
|
|
| 1,742,688 |
| Principal amount of long-term debt | 1,781,250 | 1,704,063 | |||||||||||
Less unamortized discounts and debt issuance costs |
|
| (8,789 | ) |
|
| (9,915 | ) | Less unamortized discounts and debt issuance costs | (6,587) | (7,682) | |||||||||||
Total long-term debt |
|
| 1,565,586 |
|
|
| 1,732,773 |
| Total long-term debt | 1,774,663 | 1,696,381 | |||||||||||
Less current portion |
|
| (30,625 | ) |
|
| (30,625 | ) | Less current portion | (61,250) | (45,938) | |||||||||||
Long-term debt, net of current portion |
| $ | 1,534,961 |
|
| $ | 1,702,148 |
| Long-term debt, net of current portion | $ | 1,713,413 | $ | 1,650,443 |
|
| Three Months Ended |
|
| Six Months Ended |
| ||||||||||
|
| December 31, |
|
| December 31, |
| ||||||||||
|
| 2022 |
|
| 2021 |
|
| 2022 |
|
| 2021 |
| ||||
Gain recognized in other comprehensive income |
| $ | 904 |
|
| $ | 2,194 |
|
| $ | 16,490 |
|
| $ | 1,186 |
|
Amounts reclassified to earnings from accumulated other comprehensive loss |
|
| (2,420 | ) |
|
| 3,230 |
|
|
| (2,477 | ) |
|
| 6,452 |
|
Net current period other comprehensive (loss) income |
| $ | (1,516 | ) |
| $ | 5,424 |
|
| $ | 14,013 |
|
| $ | 7,638 |
|
Three Months Ended December 31, | Six Months Ended December 31, | |||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
Gain (loss) recognized in other comprehensive income | $ | (12,295) | $ | 904 | $ | (122) | $ | 16,490 | ||||||||||||||||||
Amounts reclassified to earnings from accumulated other comprehensive loss | (6,927) | (2,420) | (13,668) | (2,477) | ||||||||||||||||||||||
Net current period other comprehensive income (loss) | $ | (19,222) | $ | (1,516) | $ | (13,790) | $ | 14,013 |
|
| Three Months Ended |
|
| Six Months Ended |
| ||||||||||||||||||||||||||||||||||||
|
| December 31, |
|
| December 31, |
| Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||||||||||||||||||||||
|
| 2022 |
|
| 2021 |
|
| 2022 |
|
| 2021 |
| 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||
Net income |
| $ | 87,101 |
|
| $ | 90,299 |
|
| $ | 176,226 |
|
| $ | 178,408 |
| Net income | $ | 83,870 | $ | 87,101 | $ | 169,917 | $ | 176,226 | |||||||||||||||||
Weighted-average number of basic shares outstanding during the period |
|
| 23,506 |
|
|
| 23,399 |
|
|
| 23,463 |
|
|
| 23,480 |
| Weighted-average number of basic shares outstanding during the period | 22,282 | 23,506 | 22,464 | 23,463 | |||||||||||||||||||||
Dilutive effect of RSUs after application of treasury stock method |
|
| 170 |
|
|
| 199 |
|
|
| 214 |
|
|
| 242 |
| Dilutive effect of RSUs after application of treasury stock method | 125 | 170 | 186 | 214 | |||||||||||||||||||||
Weighted-average number of diluted shares outstanding during the period |
|
| 23,676 |
|
|
| 23,598 |
|
|
| 23,677 |
|
|
| 23,722 |
| Weighted-average number of diluted shares outstanding during the period | 22,407 | 23,676 | 22,650 | 23,677 | |||||||||||||||||||||
Basic earnings per share |
| $ | 3.71 |
|
| $ | 3.86 |
|
| $ | 7.51 |
|
| $ | 7.60 |
| Basic earnings per share | $ | 3.76 | $ | 3.71 | $ | 7.56 | $ | 7.51 | |||||||||||||||||
Diluted earnings per share |
| $ | 3.68 |
|
| $ | 3.83 |
|
| $ | 7.44 |
|
| $ | 7.52 |
| Diluted earnings per share | $ | 3.74 | $ | 3.68 | $ | 7.50 | $ | 7.44 |
The Company’s effective income tax rate was 21.5% and 22.5% for the three and six months ended December 31, 2022, respectively, and 20.2% and 22.3% for the three and six months ended December 31, 2021, respectively. The effective tax rates for the three and six months ended December 31, 2023, and 2022 and 2021 both benefited from the favorable impact ofwere favorably impacted by research and development credits and the amount of excess tax benefits related to stock-based compensation, and arecredits, partially offset by the unfavorable impacts of certain executive compensation.
|
| Three Months Ended |
|
| Six Months Ended |
| ||||||||||||||||||||||||||||||||||||
|
| December 31, |
|
| December 31, |
| Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||||||||||||||||||||||
|
| 2022 |
|
| 2021 |
|
| 2022 |
|
| 2021 |
| 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Revenues: | |||||||||||||||||||||||||
Domestic |
| $ | 1,605,175 |
|
| $ | 1,438,250 |
|
| $ | 3,164,070 |
|
| $ | 2,881,972 |
| Domestic | $ | 1,780,008 | $ | 1,605,175 | $ | 3,575,176 | $ | 3,164,070 | |||||||||||||||||
International |
|
| 44,241 |
|
|
| 47,528 |
|
|
| 91,105 |
|
|
| 94,704 |
| International | 53,926 | 44,241 | 108,905 | 91,105 | |||||||||||||||||||||
Total revenues |
| $ | 1,649,416 |
|
| $ | 1,485,778 |
|
| $ | 3,255,175 |
|
| $ | 2,976,676 |
| Total revenues | $ | 1,833,934 | $ | 1,649,416 | $ | 3,684,081 | $ | 3,255,175 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||||||||
Net income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income: | |||||||||||||||||||||||||
Domestic |
| $ | 80,362 |
|
| $ | 83,407 |
|
| $ | 160,915 |
|
| $ | 165,104 |
| Domestic | $ | 74,759 | $ | 80,362 | $ | 151,303 | $ | 160,915 | |||||||||||||||||
International |
|
| 6,739 |
|
|
| 6,892 |
|
|
| 15,311 |
|
|
| 13,304 |
| International | 9,111 | 6,739 | 18,614 | 15,311 | |||||||||||||||||||||
Total net income |
| $ | 87,101 |
|
| $ | 90,299 |
|
| $ | 176,226 |
|
| $ | 178,408 |
| Total net income | $ | 83,870 | $ | 87,101 | $ | 169,917 | $ | 176,226 |
|
|
|
|
|
| December 31, |
|
| June 30, |
| ||||||||||||||||||||||||||||
|
| Financial Statement |
| Fair Value |
| 2022 |
|
| 2022 |
| ||||||||||||||||||||||||||||
Description of Financial Instrument |
| Classification |
| Hierarchy |
| Fair Value |
| Description of Financial Instrument | Financial Statement Classification | Fair Value Hierarchy | December 31, 2023 | June 30, 2023 | ||||||||||||||||||||||||||
Description of Financial Instrument | Fair Value | |||||||||||||||||||||||||||||||||||||
Contingent consideration | Other accrued expenses and current liabilities | Level 3 | $ | (2,546) | $ | — | ||||||||||||||||||||||||||||||||
Contingent consideration | Contingent consideration | Other long-term liabilities | Level 3 | $ | (8,327) | $ | — | |||||||||||||||||||||||||||||||
Interest rate swap agreements |
| Prepaid expenses and other current assets |
| Level 2 |
| $ | 1,305 |
|
| $ | 337 |
| Interest rate swap agreements | Other long-term liabilities | Level 2 | $ | (250) | $ | — | |||||||||||||||||||
Interest rate swap agreements |
| Other long-term assets |
| Level 2 |
| $ | 37,126 |
|
| $ | 19,184 |
| Interest rate swap agreements | Prepaid expenses and other current assets | Level 2 | $ | 1,438 | $ | 17 | |||||||||||||||||||
Interest rate swap agreements | Interest rate swap agreements | Other long-term assets | Level 2 | $ | 23,600 | $ | 43,283 |
The Company uses interest rate swap agreements to manage its interest rate risk. The valuation of these instruments is determined using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves.
Event
fiscal 2024.
•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 •Expertise – 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. 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. environment. •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; and 2022 Dollar Amount Dollar Amount Three Months Ended Six Months Ended December 31, Change December 31, Change 2022 2021 Dollar Percent 2022 2021 Dollar Percent Revenues $ 1,649,416 $ 1,485,778 $ 163,638 11.0% $ 3,255,175 $ 2,976,676 $ 278,499 9.4% Costs of revenues: Direct costs 1,094,314 974,018 120,296 12.4% 2,150,086 1,948,189 201,897 10.4% Indirect costs and selling expenses 388,303 354,977 33,326 9.4% 770,384 712,083 58,301 8.2% Depreciation and amortization 35,932 32,676 3,256 10.0% 71,035 65,268 5,767 8.8% Total costs of revenues 1,518,549 1,361,671 156,878 11.5% 2,991,505 2,725,540 265,965 9.8% Income from operations 130,867 124,107 6,760 5.4% 263,670 251,136 12,534 5.0% Interest expense and other, net 19,942 11,009 8,933 81.1% 36,135 21,407 14,728 68.8% Income before income taxes 110,925 113,098 (2,173 ) (1.9)% 227,535 229,729 (2,194 ) (1.0)% Income taxes 23,824 22,799 1,025 4.5% 51,309 51,321 (12 ) (0.0)% Net income $ 87,101 $ 90,299 $ (3,198 ) (3.5)% $ 176,226 $ 178,408 $ (2,182 ) (1.2)% Dollar Amount Dollar Amount Three Months Ended Six Months Ended December 31, Change December 31, Change 2022 2021 Dollar Percent 2022 2021 Dollar Percent Department of Defense $ 1,160,060 $ 1,037,014 $ 123,046 11.9% $ 2,255,380 $ 2,037,141 $ 218,239 10.7% Federal Civilian Agencies 399,768 371,897 27,871 7.5% 823,855 785,561 38,294 4.9% Commercial and other 89,588 76,867 12,721 16.5% 175,940 153,974 21,966 14.3% Total $ 1,649,416 $ 1,485,778 $ 163,638 11.0% $ 3,255,175 $ 2,976,676 $ 278,499 9.4% •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 six months ended December 31, Interest Expense and Other, Net. The increase in interest expense and other, net for the three and six months ended December 31, •Funded backlog represents contract value for which funding has been appropriated less revenues previously recognized on these contracts. 8). During fiscal year 2023, a provision of the TCJA went into effect which eliminated the option to deduct domestic research and development costs in the year incurred and instead requires taxpayers to capitalize and amortize such costs over five years. This provision is expected to decrease fiscal year 2024 cash flows from operations by $75.3 million. Although it is possible that Congress amends this provision, potentially with retroactive effect, we have no assurance that Congress will take any action with respect to this provision. Six Months Ended December 31, 2022 2021 Net cash provided by operating activities $ 207,090 $ 308,765 Net cash used in investing activities (25,670 ) (630,065 ) Net cash (used in) provided by financing activities (181,580 ) 358,849 Effect of exchange rate changes on cash and cash equivalents 94 (1,477 ) Net change in cash and cash equivalents $ (66 ) $ 36,072 income tax payments and a $46.6 million reduction in CARES Act payroll tax payments. payments for business acquisitions. Facility, partially offset by a $150.5 million increase in cash used to repurchase our common stock. 2023. Approximately •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 and Mission customers in support of national security and government modernization.•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.9.7%10% and 5.9%6%, respectively, over GFY22 enacted levels. On March 9, 2023, the President released his budget request for GFY24, which called for an increase in defense spending of approximately 3% and an increase in nondefense spending of approximately 8% over GFY23 levels. On June 3, 2023, the President signed into law legislation that suspends the federal debt limit until January 2025 and caps discretionary spending in GFY24 and GFY25. Specifically, GFY24 defense spending is capped at $886 billion, an increase of 3% and in-line with the President’s budget request, and GFY24 nondefense spending is capped at levels which themselves were increases of 5.6%similar to GFY22 (though after various adjustments may be essentially flat with GFY23 levels). For GFY25, discretionary spending growth (both defense and 6.7%, respectively, over GFY21.nondefense) is capped at 1%. While future levels of defense and nondefense spending are difficult to project, particularly given ongoing budget negotiations in Congress, 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.enterprise and mission customers. Based on the analysis of an independent market consultant retained by the Company, weWe believe that the total addressable market for our offerings is approximately $260 billion. Our addressable marketsufficient to support the Company's plans and is expected to continue to grow over the next several years. Approximately 70% of our revenue comes from defense-related customers, including those in the Intelligence Community (IC), with additional revenue coming from non-defense IC, homeland security, and other federal civilian customers.tooktake steps to maintain a competitive cost structure in line with our expectations of future business opportunities. In light of these actions, as well as the budgetary environment discussed above, we believe we are well positioned to continue to win new business in our large addressable market. We believe that the following trends will influence the USG’s spending in our addressable market:•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.customers'customers’ use of lowest price/technically acceptable (LPTA) procurements, which contributed to pricing pressures in past years, has moderated, though price still remains an important factor in procurements. We also continue to see protests of major contract awards and delays in USG procurement activities. In addition, many of our federal government contracts require us to employ personnel with security clearances, specific levels of education and specific past work experience. Depending on the level of clearance, security clearances can be difficult and time-consuming to obtain and competition for skilled personnel in the information technology services industry is intense. Additional factors that could affect USG spending in our addressable market include changes in set-asides for small businesses, changes in budget priorities, as a result of the COVID-19 pandemic, and budgetary priorities limiting or delaying federal government spending in general.Sixsix Months Ended December 31, 20222023 and 2021Three Months Ended December 31, Six Months Ended December 31, 2023 2022 Change 2023 2022 Change Dollars Percent Dollars Percent Revenues $ 1,833,934 $ 1,649,416 $ 184,518 11.2 % $ 3,684,081 $ 3,255,175 $ 428,906 13.2 % Costs of revenues: Direct costs 1,255,251 1,094,314 160,937 14.7 2,528,169 2,150,086 378,083 17.6 Indirect costs and selling expenses 409,355 388,303 21,052 5.4 813,988 770,384 43,604 5.7 Depreciation and amortization 36,023 35,932 91 0.3 71,270 71,035 235 0.3 Total costs of revenues 1,700,629 1,518,549 182,080 12.0 3,413,427 2,991,505 421,922 14.1 Income from operations 133,305 130,867 2,438 1.9 270,654 263,670 6,984 2.6 Interest expense and other, net 27,519 19,942 7,577 38.0 53,090 36,135 16,955 46.9 Income before income taxes 105,786 110,925 (5,139) (4.6) 217,564 227,535 (9,971) (4.4) Income taxes 21,916 23,824 (1,908) (8.0) 47,647 51,309 (3,662) (7.1) Net income $ 83,870 $ 87,101 $ (3,231) (3.7) $ 169,917 $ 176,226 $ (6,309) (3.6) 2022,2023, as compared to the three and six months ended December 31, 2021,2022, was primarily attributable to growth on existing programs, new contract awards and revenues from the acquisitions completed in fiscal year 2022.growth on existing programs.20222023 and 2021,2022, respectively (in thousands):•DoD revenues include Expertise and Technology provided to various Department of Defense customers.Three Months Ended December 31, Six Months Ended December 31, 2023 2022 Change 2023 2022 Change Dollars Percent Dollars Percent Department of Defense $ 1,358,509 $ 1,160,060 $ 198,449 17.1 % $ 2,710,815 $ 2,255,380 $ 455,435 20.2 % Federal Civilian Agencies 389,942 399,768 (9,826) (2.5) 797,286 823,855 (26,569) (3.2) Commercial and other 85,483 89,588 (4,105) (4.6) 175,980 175,940 40 — Total $ 1,833,934 $ 1,649,416 $ 184,518 11.2 % $ 3,684,081 $ 3,255,175 $ 428,906 13.2 % 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.2022,2023, as compared to the prior year periods,period, was primarily attributable to the increased revenuesdirect labor costs from organic growth on existing programs and a higher volume of materials and other direct costs. As a percentage of revenue, direct costs were 68.4% and 68.6% for the three and six months ended December 31, 2023, respectively, and 66.3% and 66.1% for the three and six months ended December 31, 2022, respectively and 65.6% and 65.4% for the three and six months ended December 31, 2021, respectively. Direct costs include direct labor, subcontractor costs, materials, and other direct costs.2022,2023, as compared to the prior year periods, was primarily attributable to the incremental costs of running the businesses acquiredincreased expenses due to a larger workforce, resulting in fiscal year 2022 andincreased fringe benefits, as well as an increase in fringe benefit expenses. As a percentage of revenue, indirect costs and selling expenses were 23.5% and 23.7% for the three and six months ended December 31, 2022, respectively and 23.9% and 23.9% for the three and six months ended December 31, 2021, respectively.professional services.The increase in depreciationDepreciation and amortization for the three and six months ended December 31, 2022, as compared to2023 was consistent with the prior year 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.periods.2022,2023, as compared to the prior year periods,period, was primarily attributable to higher interest rates onand higher outstanding debt. debt balances. respectively, and 20.2% and 22.3% for the three and six months ended December 31, 2021, respectively. The effective tax rates for the three and six months ended December 31, 2023, and 2022 and 2021 both benefited from the favorable impact ofwere favorably impacted by research and development credits and the amount of excess tax benefits related to stock-based compensation, and arecredits, 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. 2022,2023, the Company had total backlog of $26.5$26.9 billion, compared with $24.1$26.5 billion a year ago, an increase of 10.0%1.5%. Funded backlog as of December 31, 20222023 was $3.2$3.7 billion. The total backlog consists of remaining performance obligations (see Note 4)5) 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.6)7) and available borrowings under our Credit Facility (as defined in Note 7) described below.2022,2023, we had $380.0$617.5 million outstanding under the Revolving Facility and no borrowings on the swing line.2022, $1,194.42023, $1,163.8 million was outstanding under the Term Loan.EurodollarSOFR rate plus, in each case, an applicable margin based upon our consolidated total net leverage ratio.Based on the law as currently enacted, theThe future impact of this provision is expected to decrease fiscal year 2023 cash flows from operations by $95.0 million and increase net deferred tax assets by a similar amount. During the second quarter of fiscal year 2023, the Company’s estimated federal and state income tax payments included $46.0 million related to this provision. The actual impact will depend on if and when this provision is deferred, modified, or repealed by Congress, including if retroactively, any guidance issued by the Treasury Department regarding the identification of appropriate costs for capitalization, and the amount of future research and development costs the Company will incur during fiscal year 2023 and whether new guidance and interpretive rules are issued by the U.S. Treasury, amongexpenses paid or incurred (among other factorsfactors).Six Months Ended December 31, 2023 2022 Net cash provided by operating activities $ 141,852 $ 207,090 Net cash used in investing activities (38,305) (25,670) Net cash used in financing activities Net cash used in financing activities (90,791) (181,580) Effect of exchange rate changes on cash and cash equivalents 319 94 Net change in cash and cash equivalents $ 13,075 $ (66) $101.7$65.2 million for the six months ended December 31, 2022,2023, when compared to the six months ended December 31, 2021,2022, as a result of a $95.9$76.8 million increasedecrease in cash paid for income taxes, $49.7received from the Company's MARPA and $75.0 million in net unfavorable changes primarily in operating assets and liabilities driven by increased revenue volume and the timing of vendor payments, partially offset by a $36.7$40.0 million increasereduction in cash received from the Company's MARPA.decreased $604.4increased by $12.6 million for the six months ended December 31, 2022,2023, when compared to the six months ended December 31, 2021,2022 primarily asdue to a result of a $609.4 million decrease in cash used in acquisitions of businesses partially offset by a $4.0$10.9 million increase in capital expenditures.increased $540.4decreased $90.8 million for the six months ended December 31, 2022,2023, when compared to the six months ended December 31, 2021,2022, primarily as a result of a $540.9$245.5 million increase in net paymentsborrowings under our Credit Facility.2022.$800.0$1,100.0 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 six months ended December 31, 20222023 would have fluctuated by approximately $5.5$3.8 million.2.8%3.0% and 3.2%2.8% of our total revenues during the six months ended December 31, 20222023, and 2021,2022, 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 December 31, 2022,2023, we held a combination of euros and pounds sterling in the U.K. and the Netherlands equivalent to approximately $58.2$67.0 million. This allows us to better utilize our cash resources on behalf of our foreign subsidiaries, thereby mitigating foreign currency conversion risks.
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 October 2022 10,064 $ 262.22 1,312,738 187,262 November 2022 — — — — December 2022 — $ — — — Total 10,064 1,312,738 Incorporated by Reference Exhibit No. Description Filed with this Form 10-Q Form Filing Date Exhibit No. 10.1 8-K December 28, 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. Registrant Date: January /s/ John S. Mengucci John S. Mengucci Date: January /s/ Jeffrey D. MacLauchlan Jeffrey D. MacLauchlan Date: January /s/ and Corporate Controller2022.2022.2023.20222023 for the most recently filed information concerning the suit filed in the United States District Court for the Southern District of Ohio. The lawsuit names CACI International Inc, CACI Premier Technology, Inc. and former CACI employee Timothy Dugan as Defendants, along with L-3 Services, Inc. Plaintiffs seek, inter alia, compensatory damages, punitive damages, and attorney’s fees.20222023 for the most recently filed information concerning the suit filed in the United States District Court for the Eastern District of Virginia. The lawsuit names CACI International Inc and CACI Premier Technology, Inc. as Defendants. Plaintiffs seeks, inter alia, compensatory damages, punitive damages, and attorney’s fees.2022.2023. There have been no material changes from the risk factors described in that report.Period Total Number
of Shares
PurchasedAverage Price
Paid Per ShareTotal Number of Shares Purchased as Part of
Publicly Announced
ProgramsMaximum Number of
Shares that May Yet Be
Purchased Under the
Plans or Programs (1)October 2023 48,321 $ 318.72 48,321 1,194,146 November 2023 — — — 1,194,146 December 2023 — — — 1,194,146 Total 48,321 $ 318.72 48,321 (1) Number of shares determined based on the closing price of $323.86 as of December 31, 2023.NoneIncorporated by Reference Exhibit No. Description Filed with this Form 10-Q Form Filing Date Exhibit No. 10.1 8-K December 27, 2023 10.1 10.2 X 10.3 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) SIGNATURESSIGNATURESCACI International Inc 26, 2023By: By:
President,
Chief Executive Officer and Director
(Principal Executive Officer)26, 2023By: By:
Executive Vice President,
Chief Financial Officer and Treasurer
(Principal Financial Officer)26, 2023By: By:Travis B. JohnsonTravis B. Johnson Corporate Controllerand 27