CACI Reports Record Fiscal 2010 First Quarter Results
Diluted earnings per share increased 22.2 percent to $0.78
Revenue increased 12.9 percent to $739.5 million, driven by organic growth
Contract funding orders exceeded $1 billion
Annual guidance increased
Arlington, Va., October 28, 2009 – CACI International Inc (NYSE: CACI), a leading professional services and information technology solutions provider to the federal government, announced results today for its first fiscal quarter ended September 30, 2009.
We are pleased to report record net income of $23.9 million for the first quarter of Fiscal Year 2010 (FY10). This was a 21.8 percent increase over the same period last year and was driven by organic revenue growth of 11.8 percent, including strong performance in CACI’s defense and intelligence businesses.
Commenting on the company’s financial results, Paul Cofoni, CACI’s President and CEO, said, “Our organic growth occurred across all of our service offerings, validating our continued strategic focus on developing and delivering high-quality solutions for our customers in high priority areas that continue to be well-funded. Funding orders, a strong predictor of near term revenue, were an all-time high, growing our funded backlog to a record level of nearly $2 billion. Our United Kingdom operations also delivered good growth, primarily from strategic acquisitions that continue to expand our presence with U.K. government clients.”
First Quarter Results
(in millions except per-share data) | Q1, FY10 | Q1, FY09 | % Change |
Revenue | $739.5 | $654.8 | 12.9% |
Operating income | $46.0 | $41.3 | 11.4% |
Net income | $23.9 | $19.6 | 21.8% |
Diluted earnings per share | $0.78 | $0.64 | 22.2% |
Operating income increased because of strong growth in both direct labor and other direct costs and decreased depreciation and amortization expense. In addition to those factors, diluted earnings per share was favorably impacted by reduced net interest expense and a lower corporate tax rate.
Additional Financial Metrics
($ in millions, except per share data) | Q1, FY10 | Q1, FY09 | % Change |
Earnings before interest, taxes, depreciation and amortization (EBITDA), a non-GAAP measure | $57.0 | $53.3 | 6.8% |
Diluted cash earnings per share, a non-GAAP measure | $1.20 | $1.04 | 15.8% |
Days sales outstanding | 59 | 62 | |
First Quarter Contract Funding Orders and Awards
| · | Contract funding orders of $1.04 billion, a 10.5 percent increase over the first quarter of FY09. Funded backlog of $1.92 billion, a 16.0 percent increase over the first quarter of FY09. |
| · | A prime position on a five-year multiple award contract with a ceiling value of $494 million to provide support to the Joint Improvised Explosive Device Defeat Organization (JIEDDO). |
| · | Additional contract awards with an estimated value of $732 million including: |
| o | Awards on the Strategic Services Sourcing (S3) contract vehicle with the U.S. Army totaling $325 million. Since March 2006, we have been awarded approximately $2.4 billion in task orders on this vehicle. |
| o | Approximately $96 million in previously unannounced awards from the Intelligence Community. |
| o | A $70 million award from the U.S. Navy to provide integrated logistics and engineering system support services to the Military Sealift Command. |
| · | A three-year contract award to our United Kingdom subsidiary by the Central Statistical Office of the Republic of Ireland to provide systems support to the 2011 Irish census. This award adds to our existing capabilities to support individual country censuses across Europe. |
First Quarter Appointments and Recognition
| · | Gordon R. England, former Deputy Secretary of Defense, was appointed to the CACI Board of Directors. |
| · | Forbes magazine listed CACI as a top company in the Washington, D.C. area for its “Best Places to Begin a Career.” |
CEO Commentary
Mr. Cofoni commented, “The need for the mission-critical services that CACI provides remains strong. We will continue to focus on well-funded areas such as defense, intelligence, homeland security, cyber security, and IT modernization where we have competitive advantages and established customer relationships. And we will continue to identify and capitalize on new market opportunities for growth, both organically and through acquisitions.”
“We have added to our employee population as a result of the number and scale of our contract wins in this and previous quarters and the increased funding associated with those awards. We expect to continue to build on our strong performance and are raising our Fiscal Year 2010 guidance. We reaffirm our commitment to delivering superior results for our shareholders,” he added.
CACI Increases its FY10 Guidance
We are increasing our FY10 guidance primarily as a result of stronger performance from our operations and a lower assumed effective corporate tax rate partially offset by variable compensation expense. The table below summarizes the guidance ranges for FY10:
(In millions except for earnings per share) | Current FY10 Guidance | Previous FY10 Guidance |
Revenue | $2,950 - $3,050 | $2,850-$2,950 |
Net income | $99.5 - $105.6 | $97.8 - $103.9 |
Diluted earnings per share | $3.25 - $3.45 | $3.20 - $3.40 |
Diluted weighted average shares | 30.6 | 30.6 |
This guidance represents our views as of October 28, 2009. Investors are reminded that actual results may differ from these estimates for the reasons described below and in our filings with the Securities and Exchange Commission.
Additional Information
Effective July 1, 2009, we implemented new accounting pronouncements governing the treatment of our convertible debt and the minority interest in a joint venture which we control. The rules required retrospective application. Attached to this release are tables showing our statements of operations for each quarterly period beginning from May 2007, the period in which we issued our convertible debt, and balance sheets as of the end of each of the last three fiscal years.
Conference Call Information
We have scheduled a conference call for 8:30 AM Eastern Time Thursday, October 29th, during which members of our senior management team will be making a brief presentation focusing on first quarter results and operating trends followed by a question-and-answer session. You can listen to the conference call and view the accompanying exhibits over the Internet by logging on to our homepage, www.caci.com, at the scheduled time, or you may dial 1-888-417-2254 and enter the confirmation code 2256924. A replay of the call will also be available over the Internet beginning at 1:00 PM Eastern Time Thursday, October 29th, and can be accessed through our homepage (www.caci.com) by clicking on the CACI Investor Info button.
About CACI
CACI International Inc provides the professional services and IT solutions needed to prevail in today’s defense, intelligence, homeland security, and federal civilian government arenas. We deliver enterprise IT and network services; data, information, and knowledge management services; business system solutions; logistics and material readiness; C4ISR integration services; cyber security; integrated security and intelligence solutions; and program management and SETA support services. CACI services and solutions help our federal clients provide for national security, improve communications and collaboration, secure the integrity of information systems and networks, enhance data collection and analysis, and increase efficiency and mission effectiveness. We add value to our clients’ operations, increase their skills and capabilities, and enhance their missions. CACI is a member of the Fortune 1000 Largest Companies and the Russell 2000 index. CACI provides dynamic careers for approximately 12,700 employees working in over 120 offices in the U.S. and Europe. CACI is the IT provider for a networked world. Visit CACI on the web at www.caci.com and www.asymmetricthreat.net.
There are statements made herein which do not address historical facts, and therefore could be interpreted to be forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such statements are subject to factors that could cause actual results to differ materially from anticipated results. The factors that could cause actual results to differ materially from those anticipated include, but are not limited to, the following: regional and national economic conditions in the United States and the United Kingdom, including conditions that result from a prolonged recession; terrorist activities or war; changes in interest rates; currency fluctuations; significant fluctuations in the equity markets; changes in our effective tax rate; failure to achieve contract awards in connection with recompetes for present business and/or competition for new business; the risks and uncertainties associated with client interest in and purchases of new products and/or services; continued funding of U.S. government or other public sector projects, based on a change in spending patterns, or in the event of a priority need for funds, such as homeland security, the war on terrorism or rebuilding Iraq, or an economic stimulus package; government contract procurement (such as bid protest, small business set asides, loss of work due to organizational conflicts of interest, etc.) and termination risks; the results of government investigations into allegations of improper actions related to the provision of services in support of U.S. military operations in Iraq; the results of government audits and reviews conducted by the Defense Contract Audit Agency or other government entities with cognizant oversight; individual business decisions of our clients; paradigm shifts in technology; competitive factors such as pricing pressures and/or competition to hire and retain employees (particularly those with security clearances); market speculation regarding our continued independence; material changes in laws or regulations applicable to our businesses, particularly in connection with (i) government contracts for services, (ii) outsourcing of activities that have been performed by the government, and (iii) competition for task orders under Government Wide Acquisition Contracts (“GWACs”) and/or schedule contracts with the General Services Administration; our own ability to achieve the objectives of near term or long range business plans; and other risks described in the company’s Securities and Exchange Commission filings.
###
Corporate Communications and Media: | Investor Relations: |
Jody Brown, Executive Vice President, Public Relations | David Dragics, Senior Vice President, Investor Relations |
| |
(Financial Tables follow)
Selected Financial Data |
| | | | | | | | | |
CACI International Inc | | | | | | | | | |
Condensed Consolidated Statements of Operations (Unaudited) | | | | |
(Amounts in thousands, except per share amounts) | | | | | | | |
| | | | | | | | | |
| | Quarter Ended | | | | |
| | 9/30/2009 | | | 9/30/2008 | | | | |
| | | | | As adjusted* | | | % Change | |
Revenue | | $ | 739,518 | | | $ | 654,760 | | | | 12.9 | % |
Costs of revenue | | | | | | | | | | | | |
Direct costs | | | 510,540 | | | | 443,545 | | | | 15.1 | % |
Indirect costs and selling expenses | | | 171,795 | | | | 157,871 | | | | 8.8 | % |
Depreciation and amortization | | | 11,155 | | | | 12,026 | | | | -7.2 | % |
Total costs of revenue | | | 693,490 | | | | 613,442 | | | | 13.0 | % |
Operating income | | | 46,028 | | | | 41,318 | | | | 11.4 | % |
Interest expense, net | | | 7,262 | | | | 8,054 | | | | -9.8 | % |
Income before income taxes | | | 38,766 | | | | 33,264 | | | | 16.5 | % |
Income taxes | | | 14,685 | | | | 13,675 | | | | 7.4 | % |
Net income before noncontrolling | | | | | | | | | | | | |
interest in earnings of joint venture | | | 24,081 | | | | 19,589 | | | | 22.9 | % |
Noncontrolling interest in earnings | | | | | | | | | | | | |
of joint venture | | | (226 | ) | | | (9 | ) | | | | |
Net income attributable to CACI | | $ | 23,855 | | | $ | 19,580 | | | | 21.8 | % |
| | | | | | | | | | | | |
Basic earnings per share | | $ | 0.79 | | | $ | 0.65 | | | | 22.1 | % |
Diluted earnings per share | | $ | 0.78 | | | $ | 0.64 | | | | 22.2 | % |
| | | | | | | | | | | | |
Weighted average shares used in per share computations: | | | | | |
Basic | | | 30,034 | | | | 30,103 | | | | | |
Diluted | | | 30,464 | | | | 30,567 | | | | | |
| | | | | | | | | | | | |
Statement of Operations Data (Unaudited) | | | | | |
| | Quarter Ended | | | | | |
| | 9/30/2009 | | | 9/30/2008 | | | | | |
| | | | | | As adjusted* | | | % Change | |
Operating income margin | | | 6.2 | % | | | 6.3 | % | | | | |
Tax rate | | | 38.1 | % | | | 41.1 | % | | | | |
Net income margin | | | 3.2 | % | | | 3.0 | % | | | | |
| | | | | | | | | | | | |
EBITDA** | | $ | 56,957 | | | $ | 53,335 | | | | 6.8 | % |
EBITDA margin | | | 7.7 | % | | | 8.1 | % | | | | |
| | | | | | | | | | | | |
Cash net income** | | $ | 36,690 | | | $ | 31,802 | | | | 15.4 | % |
Diluted cash earnings per share | | $ | 1.20 | | | $ | 1.04 | | | | 15.8 | % |
*Certain balances for the period ended September 30, 2008 have been adjusted to
reflect the retroactive application of new accounting standards related to
convertible debt and minority interest.
**See Reconciliation of Net Income to Earnings before Interest, Taxes,
Depreciation and Amortization and to Cash Net Income on page 9.
Selected Financial Data (Continued) |
| | | | | | |
CACI International Inc | | | | | | |
Condensed Consolidated Balance Sheets (Unaudited) | | | | | | |
(Amounts in thousands) | | | | | | |
| | | | | | |
| | 9/30/2009 | | | 6/30/2009 | |
| | | | | As adjusted* | |
ASSETS: | | | | | | |
Current assets | | | | | | |
Cash and cash equivalents | | $ | 199,840 | | | $ | 208,488 | |
Accounts receivable, net | | | 490,394 | | | | 477,025 | |
Prepaid expenses and other current assets | | | 35,543 | | | | 39,319 | |
Total current assets | | | 725,777 | | | | 724,832 | |
| | | | | | | | |
Goodwill and intangible assets, net | | | 1,172,500 | | | | 1,181,579 | |
Property and equipment, net | | | 44,798 | | | | 30,923 | |
Other long-term assets | | | 73,382 | | | | 68,745 | |
Total assets | | $ | 2,016,457 | | | $ | 2,006,079 | |
| | | | | | | | |
LIABILITIES AND SHAREHOLDERS' EQUITY: | | | | | | | | |
Current liabilities | | | | | | | | |
Current portion of long-term debt | | $ | 8,153 | | | $ | 9,464 | |
Accounts payable | | | 99,548 | | | | 87,300 | |
Accrued compensation and benefits | | | 129,844 | | | | 137,843 | |
Other accrued expenses and current liabilities | | | 96,127 | | | | 83,297 | |
Total current liabilities | | | 333,672 | | | | 317,904 | |
| | | | | | | | |
Long-term debt, net of current portion | | | 522,425 | | | | 570,078 | |
Other long-term liabilities | | | 100,130 | | | | 88,489 | |
Total liabilities | | | 956,227 | | | | 976,471 | |
| | | | | | | | |
Shareholders' equity | | | 1,060,230 | | | | 1,029,608 | |
Total liabilities and shareholders' equity | | $ | 2,016,457 | | | $ | 2,006,079 | |
*Certain balances as of June 30, 2009 have been adjusted to reflect the retroactive
application of new accounting standards related to convertible debt and minority interest.
Selected Financial Data (Continued) | |
| | | | | | |
CACI International Inc | | | | | | |
Condensed Consolidated Statements of Cash Flows (Unaudited) | | | | | | |
(Amounts in thousands) | | | | | | |
| | | | | | |
| | Three Months Ended | |
| | 9/30/2009 | | | 9/30/2008 | |
| | | | | As adjusted* | |
CASH FLOWS FROM OPERATING ACTIVITIES: | | | | | | |
Net income before noncontrolling interest in earnings | | $ | 24,081 | | | $ | 19,589 | |
of joint venture | | | | | | | | |
Reconciliation of net income to net cash provided by | | | | | | | | |
operating activities: | | | | | | | | |
Depreciation and amortization | | | 11,155 | | | | 12,026 | |
Non-cash interest expense | | | 2,563 | | | | 2,395 | |
Amortization of deferred financing costs | | | 745 | | | | 560 | |
Stock-based compensation expense | | | 6,671 | | | | 5,144 | |
Provision for deferred income taxes | | | 825 | | | | 3,181 | |
Changes in operating assets and liabilities, | | | | | | | | |
net of effect of business acquisitions: | | | | | | | | |
Accounts receivable, net | | | (12,965 | ) | | | (9,857 | ) |
Prepaid expenses and other current assets | | | (6,969 | ) | | | (1,339 | ) |
Accounts payable and accrued expenses | | | 14,462 | | | | 1,163 | |
Accrued compensation and benefits | | | (10,574 | ) | | | (21,151 | ) |
Income taxes receivable and payable | | | 13,773 | | | | 3,782 | |
Other liabilities | | | 7,148 | | | | 155 | |
Net cash provided by operating activities | | | 50,915 | | | | 15,648 | |
| | | | | | | | |
CASH FLOWS FROM INVESTING ACTIVITIES: | | | | | | | | |
Capital expenditures | | | (9,241 | ) | | | (2,347 | ) |
Purchase of business, net of cash acquired | | | (939 | ) | | | - | |
Other | | | (579 | ) | | | (644 | ) |
Net cash used in investing activities | | | (10,759 | ) | | | (2,991 | ) |
| | | | | | | | |
CASH FLOWS FROM FINANCING ACTIVITIES: | | | | | | | | |
Net repayments under credit facilities | | | (51,371 | ) | | | (887 | ) |
Proceeds from employee stock purchase plans | | | 1,934 | | | | 2,871 | |
Proceeds from exercise of stock options | | | 1,806 | | | | 97 | |
Purchases of common stock | | | (854 | ) | | | (20,936 | ) |
Other | | | 14 | | | | (1,156 | ) |
Net cash used in financing activities | | | (48,471 | ) | | | (20,011 | ) |
Effect of exchange rate changes on cash and cash equivalents | | | (333 | ) | | | (1,075 | ) |
Net decrease in cash and cash equivalents | | | (8,648 | ) | | | (8,429 | ) |
Cash and cash equivalents, beginning of period | | | 208,488 | | | | 120,396 | |
Cash and cash equivalents, end of period | | $ | 199,840 | | | $ | 111,967 | |
*Certain balances for the period ended September 30, 2008 have been adjusted to reflect the
retroactive application of new accounting standards related to convertible debt and minority interest.
Selected Financial Data (Continued)
Revenue by Customer Type (Unaudited)
| | Quarter Ended | | | | | | | |
(dollars in thousands) | | 9/30/2009 | | | 9/30/2008 | | | $ Change | | | % Change | |
Department of Defense | | $ | 572,295 | | | | 77.4 | % | | $ | 492,961 | | | | 75.3 | % | | $ | 79,334 | | | | 16.1 | % |
Federal Civilian Agencies | | | 132,947 | | | | 18.0 | % | | | 131,831 | | | | 20.1 | % | | | 1,116 | | | | 0.8 | % |
Commercial | | | 29,059 | | | | 3.9 | % | | | 24,684 | | | | 3.8 | % | | | 4,375 | | | | 17.7 | % |
State and Local Governments | | | 5,217 | | | | 0.7 | % | | | 5,284 | | | | 0.8 | % | | | (67 | ) | | | -1.3 | % |
Total | | $ | 739,518 | | | | 100.0 | % | | $ | 654,760 | | | | 100.0 | % | | $ | 84,758 | | | | 12.9 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Revenue by Contract Type (Unaudited) | |
�� | | Quarter Ended | | | | | | | | | |
(dollars in thousands) | | 9/30/2009 | | | 9/30/2008 | | | $ Change | | | % Change | |
Time and materials | | $ | 352,246 | | | | 47.6 | % | | $ | 324,101 | | | | 49.5 | % | | $ | 28,145 | | | | 8.7 | % |
Cost reimbursable | | | 241,047 | | | | 32.6 | % | | | 193,651 | | | | 29.6 | % | | | 47,396 | | | | 24.5 | % |
Fixed price | | | 146,225 | | | | 19.8 | % | | | 137,008 | | | | 20.9 | % | | | 9,217 | | | | 6.7 | % |
Total | | $ | 739,518 | | | | 100.0 | % | | $ | 654,760 | | | | 100.0 | % | | $ | 84,758 | | | | 12.9 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Revenue Received as a Prime versus Subcontractor (Unaudited) | |
| | Quarter Ended | | | | | | | | | |
(dollars in thousands) | | 9/30/2009 | | | 9/30/2008 | | | $ Change | | | % Change | |
Prime | | $ | 629,215 | | | | 85.1 | % | | $ | 537,671 | | | | 82.1 | % | | $ | 91,544 | | | | 17.0 | % |
Subcontractor | | | 110,303 | | | | 14.9 | % | | | 117,089 | | | | 17.9 | % | | | (6,786 | ) | | | -5.8 | % |
Total | | $ | 739,518 | | | | 100.0 | % | | $ | 654,760 | | | | 100.0 | % | | $ | 84,758 | | | | 12.9 | % |
Contract Funding Orders Received (Unaudited) | |
| | Quarter Ended | | | | | | | |
(dollars in thousands) | | 9/30/2009 | | | 9/30/2008 | | | $ Change | | | % Change | |
Contract Funding Orders | | $ | 1,041,855 | | | $ | 943,122 | | | $ | 98,733 | | | | 10.5 | % |
Reconciliation of Total Revenue Growth and Organic Revenue Growth
(Unaudited)
We are presenting organic revenue growth to reflect the effect of acquisitions on total revenue growth. Revenue generated from the date a business is acquired through the first anniversary of that date is considered acquired revenue growth. All remaining revenue growth is considered organic. We believe that this non-GAAP financial measure provides investors with useful information to evaluate the growth rate of our core business. This non-GAAP measure should not be considered in isolation or as a substitute for performance measures prepared in accordance with GAAP.
| | Quarter Ended | | | Twelve Months Ended | |
(dollars in thousands) | | 9/30/2009 | | | 9/30/2008 | | | % Change | | | 9/30/2009 | | | 9/30/2008 | | | % Change | |
Revenue, as reported | | $ | 739,518 | | | $ | 654,760 | | | | 12.9 | % | | $ | 2,814,920 | | | $ | 2,521,717 | | | | 11.6 | % |
Less: | | | | | | | | | | | | | | | | | | | | | | | | |
Acquired revenue | | | 7,421 | | | | - | | | | | | | | 34,852 | | | | - | | | | | |
Organic revenue | | $ | 732,097 | | | $ | 654,760 | | | | 11.8 | % | | $ | 2,780,068 | | | $ | 2,521,717 | | | | 10.2 | % |
Selected Financial Data (Continued)
Reconciliation of Net Income to Earnings Before Interest, Taxes, Depreciation
and Amortization (EBITDA) and to Cash Net Income
(Unaudited)
The Company views EBITDA, EBITDA margin, Cash Net Income and Diluted Cash Earnings Per Share as important indicators of performance, consistent with the manner in which management measures and forecasts the Company’s performance. EBITDA is a commonly used non-GAAP measure when comparing our results with those of other companies. We believe Cash Net Income is a significant driver of long-term value and is used by investors to measure our performance. This measure in particular assists readers in further understanding our results and trends from period-to-period by removing certain non-cash items that do not impact the cash flow performance of our business. EBITDA is defined by us as GAAP net income attributable to CACI plus net interest expense, income taxes, and depreciation and amortization. EBITDA margin is EBITDA divided by revenue. Cash Net Income is defined by us as GAAP net income attributable to CACI plus stock-based compensation expense, depreciation and amortization, amortization of financing costs and non-cash interest expense, net of related tax effects. Diluted Cash Earnings Per Share is Cash Net Income divided by diluted weighted-average shares, as reported. EBITDA and Cash Net Income as defined by us may not be computed in the same manner as similarly titled measures used by other companies. These non-GAAP measures should not be considered in isolation or as a substitute for performance measures prepared in accordance with GAAP.
| | Quarter Ended | |
(dollars in thousands) | | | | | 9/30/2008 | | | | |
| | 9/30/2009 | | | As adjusted* | | | % Change | |
Net income attributable to CACI | | $ | 23,855 | | | $ | 19,580 | | | | 21.8 | % |
Plus: | | | | | | | | | | | | |
Income taxes | | | 14,685 | | | | 13,675 | | | | 7.4 | % |
Interest expense, net | | | 7,262 | | | | 8,054 | | | | -9.8 | % |
Depreciation and amortization | | | 11,155 | | | | 12,026 | | | | -7.2 | % |
EBITDA | | $ | 56,957 | | | $ | 53,335 | | | | 6.8 | % |
| | | | | | | | | | | | |
| | Quarter Ended | |
(dollars in thousands) | | | | | | 9/30/2008 | | | | | |
| | 9/30/2009 | | | As adjusted* | | | % Change | |
Revenue, as reported | | $ | 739,518 | | | $ | 654,760 | | | | 12.9 | % |
EBITDA | | $ | 56,957 | | | $ | 53,335 | | | | 6.8 | % |
EDITDA margin | | | 7.7 | % | | | 8.1 | % | | | | |
| | | | | | | | | | | | |
| | Quarter Ended | |
(dollars in thousands) | | | | | | 9/30/2008 | | | | | |
| | 9/30/2009 | | | As adjusted* | | | % Change | |
Net income attributable to CACI | | $ | 23,855 | | | $ | 19,580 | | | | 21.8 | % |
Plus: | | | | | | | | | | | | |
Stock-based compensation | | | 6,671 | | | | 5,144 | | | | 29.7 | % |
Depreciation and amortization | | | 11,155 | | | | 12,026 | | | | -7.2 | % |
Amortization of financing costs | | | 745 | | | | 560 | | | | 33.0 | % |
Non-cash interest expense | | | 2,563 | | | | 2,395 | | | | 7.0 | % |
Less: | | | | | | | | | | | | |
Related tax effect | | | (8,299 | ) | | | (7,903 | ) | | | 5.0 | % |
Cash net income | | $ | 36,690 | | | $ | 31,802 | | | | 15.4 | % |
| | | | | | | | | | | | |
| | Quarter Ended | |
(shares in thousands) | | | | | | 9/30/2008 | | | | | |
| | 9/30/2009 | | �� | As adjusted* | | | % Change | |
Diluted weighted average shares, | | | | | | | | | | | | |
as reported | | | 30,464 | | | | 30,567 | | | | | |
Diluted earnings per share, as reported | | $ | 0.78 | | | $ | 0.64 | | | | 22.2 | % |
Diluted cash earnings per share | | $ | 1.20 | | | $ | 1.04 | | | | 15.8 | % |
*Certain balances for the period ended September 30, 2008 have been adjusted to reflect the retroactive
application of new accounting standards related to convertible debt and minority interest.
CACI International Inc
Consolidated Statements of Operations as Adjusted for
the Retroactive Adoption of Changes to Accounting for Convertible Debt and Minority Interest (unaudited)
(Amounts in thousands, except per share amounts)
| | | | | | | | | | | | | | | |
| | Quarter Ended: | |
| | | | | | | | | | | | | | | |
| | 6/30/2007 | | | 9/30/2007 | | | 12/31/2007 | | | 3/31/2008 | | | 6/30/2008 | |
| | | | | | | | | | | | | | | |
Revenue | | $ | 520,385 | | | $ | 553,580 | | | $ | 577,784 | | | $ | 634,157 | | | $ | 655,016 | |
Costs of revenue | | | | | | | | | | | | | | | | | | | | |
Direct costs | | | 347,798 | | | | 372,398 | | | | 386,427 | | | | 424,946 | | | | 441,820 | |
Indirect costs and selling expenses | | | 124,877 | | | | 135,757 | | | | 140,735 | | | | 153,406 | | | | 154,702 | |
Depreciation and amortization | | | 9,836 | | | | 10,746 | | | | 12,309 | | | | 12,334 | | | | 12,128 | |
Total costs of revenue | | | 482,511 | | | | 518,901 | | | | 539,471 | | | | 590,686 | | | | 608,650 | |
Operating income | | | 37,874 | | | | 34,679 | | | | 38,313 | | | | 43,471 | | | | 46,366 | |
Interest expense, net | | | 5,105 | | | | 7,308 | | | | 8,835 | | | | 9,022 | | | | 8,431 | |
Income before income taxes | | | 32,769 | | | | 27,371 | | | | 29,478 | | | | 34,449 | | | | 37,935 | |
Income taxes | | | 12,559 | | | | 10,386 | | | | 11,523 | | | | 13,547 | | | | 15,367 | |
Net income before noncontrolling interest | | | | | | | | | | | | | | | | | | | | |
in earnings of joint venture | | | 20,210 | | | | 16,985 | | | | 17,955 | | | | 20,902 | | | | 22,568 | |
Noncontrolling interest in (earnings) loss | | | | | | | | | | | | | | | | | | | | |
of joint venture | | | (20 | ) | | | (6 | ) | | | (97 | ) | | | 28 | | | | (400 | ) |
Net income attributable to CACI | | $ | 20,190 | | | $ | 16,979 | | | $ | 17,858 | | | $ | 20,930 | | | $ | 22,168 | |
| | | | | | | | | | | | | | | | | | | | |
Basic earnings per share | | $ | 0.66 | | | $ | 0.57 | | | $ | 0.59 | | | $ | 0.70 | | | $ | 0.74 | |
Diluted earnings per share | | $ | 0.65 | | | $ | 0.56 | | | $ | 0.58 | | | $ | 0.68 | | | $ | 0.72 | |
| | | | | | | | | | | | | | | | | | | | |
Weighted average shares used in per share computations: | | | | | | | | | | | | | |
Basic | | | 30,414 | | | | 29,993 | | | | 30,033 | | | | 30,076 | | | | 30,133 | |
Diluted | | | 30,896 | | | | 30,518 | | | | 30,580 | | | | 30,587 | | | | 30,740 | |
| | | | | | | | | | | | |
| | Quarter Ended: | |
| | | | | | | | | | | | |
| | 9/30/2008 | | | 12/31/2008 | | | 3/31/2009 | | | 6/30/2009 | |
| | | | | | | | | | | | |
Revenue | | $ | 654,760 | | | $ | 672,507 | | | $ | 673,994 | | | $ | 728,901 | |
Costs of revenue | | | | | | | | | | | | | | | | |
Direct costs | | | 443,545 | | | | 461,488 | | | | 461,757 | | | | 505,094 | |
Indirect costs and selling expenses | | | 157,871 | | | | 153,981 | | | | 155,445 | | | | 160,275 | |
Depreciation and amortization | | | 12,026 | | | | 11,789 | | | | 11,818 | | | | 10,959 | |
Total costs of revenue | | | 613,442 | | | | 627,258 | | | | 629,020 | | | | 676,328 | |
Income from operations | | | 41,318 | | | | 45,249 | | | | 44,974 | | | | 52,573 | |
Interest expense, net | | | 8,054 | | | | 8,107 | | | | 7,538 | | | | 7,427 | |
Income before income taxes | | | 33,264 | | | | 37,142 | | | | 37,436 | | | | 45,146 | |
Income taxes | | | 13,675 | | | | 16,110 | | | | 15,356 | | | | 17,430 | |
Net income before noncontrolling interest | | | | | | | | | | | | | | | | |
in earnings of joint venture | | | 19,589 | | | | 21,032 | | | | 22,080 | | | | 27,716 | |
Noncontrolling interest in earnings | | | | | | | | | | | | | | | | |
of joint venture | | | (9 | ) | | | (370 | ) | | | (108 | ) | | | (232 | ) |
Net income attributable to CACI | | $ | 19,580 | | | $ | 20,662 | | | $ | 21,972 | | | $ | 27,484 | |
| | | | | | | | | | | | | | | | |
Basic earnings per share | | $ | 0.65 | | | $ | 0.69 | | | $ | 0.73 | | | $ | 0.92 | |
Diluted earnings per share | | $ | 0.64 | | | $ | 0.68 | | | $ | 0.72 | | | $ | 0.91 | |
| | | | | | | | | | | | | | | | |
Weighted average shares used in per share computations: | | | | | | | | | | | | | |
Basic | | | 30,103 | | | | 29,895 | | | | 29,939 | | | | 29,965 | |
Diluted | | | 30,567 | | | | 30,362 | | | | 30,410 | | | | 30,369 | |
| | | | | | | | | |
CACI International Inc | |
Consolidated Balance Sheets as Adjusted for | |
the Retroactive Adoption of Changes to Accounting for Convertible Debt and Minority Interest (unaudited) | |
(Amounts in thousands) | |
| | | | | | | | | |
| | Balance Sheet as of June 30: | |
| | | | | | | | | |
| | 2007 | | | 2008 | | | 2009 | |
ASSETS: | | | | | | | | | |
Current assets: | | | | | | | | | |
Cash and cash equivalents | | $ | 285,682 | | | $ | 120,396 | | | $ | 208,488 | |
Accounts receivable, net | | | 386,150 | | | | 441,732 | | | | 477,025 | |
Deferred income taxes | | | 14,980 | | | | 16,776 | | | | 18,191 | |
Prepaid expenses and other current assets | | | 22,191 | | | | 23,921 | | | | 21,128 | |
Total current assets | | | 709,003 | | | | 602,825 | | | | 724,832 | |
| | | | | | | | | | | | |
Goodwill | | | 848,820 | | | | 1,067,472 | | | | 1,083,750 | |
Intangible assets, net | | | 113,270 | | | | 126,028 | | | | 97,829 | |
Property and equipment, net | | | 22,695 | | | | 25,361 | | | | 30,923 | |
Supplemental retirement savings plan assets | | | 40,544 | | | | 41,759 | | | | 40,791 | |
Accounts receivable, long-term, net | | | 10,657 | | | | 8,782 | | | | 8,677 | |
Other long-term assets | | | 24,145 | | | | 19,995 | | | | 19,277 | |
Total assets | | $ | 1,769,134 | | | $ | 1,892,222 | | | $ | 2,006,079 | |
| | | | | | | | | | | | |
LIABILITIES AND SHAREHOLDERS' EQUITY: | | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | |
Current portion of long-term debt | | $ | 7,643 | | | $ | 3,549 | | | $ | 9,464 | |
Accounts payable | | | 59,827 | | | | 74,175 | | | | 87,300 | |
Accrued compensation and benefits | | | 96,978 | | | | 126,649 | | | | 137,843 | |
Other accrued expenses and current liabilities | | | 130,573 | | | | 85,897 | | | | 83,297 | |
Total current liabilities | | | 295,021 | | | | 290,270 | | | | 317,904 | |
| | | | | | | | | | | | |
Long-term debt, net of current portion | | | 558,754 | | | | 571,216 | | | | 570,078 | |
Supplemental retirement savings plan obligations, | | | | | | | | | | | | |
net of current portion | | | 37,808 | | | | 41,740 | | | | 40,298 | |
Deferred income taxes | | | 8,794 | | | | 18,203 | | | | 29,266 | |
Other long-term obligations | | | 8,815 | | | | 11,727 | | | | 18,925 | |
| | | | | | | | | | | | |
Total liabilities | | | 909,192 | | | | 933,156 | | | | 976,471 | |
| | | | | | | | | | | | |
Shareholders' equity: | | | | | | | | | | | | |
Preferred stock | | | - | | | | - | | | | - | |
Common stock | | | 3,875 | | | | 3,895 | | | | 3,909 | |
Additional paid-in capital | | | 393,417 | | | | 416,337 | | | | 425,993 | |
Retained earnings | | | 520,599 | | | | 598,064 | | | | 687,762 | |
Accumulated other comprehensive income (loss) | | | 8,605 | | | | 6,768 | | | | (3,248 | ) |
Noncontrolling interest in joint venture | | | 520 | | | | 994 | | | | 1,875 | |
Treasury stock, at cost | | | (67,074 | ) | | | (66,992 | ) | | | (86,683 | ) |
| | | | | | | | | | | | |
Total shareholders' equity | | | 859,942 | | | | 959,066 | | | | 1,029,608 | |
| | | | | | | | | | | | |
Total liabilities and shareholders' equity | | $ | 1,769,134 | | | $ | 1,892,222 | | | $ | 2,006,079 | |