Exhibit 99
CACI Reports Record Results for Its Fiscal 2012 Second Quarter and Raises Fiscal 2012 Guidance
Pro forma diluted EPS increased 41.4 percent
Pro forma net income increased 24.8 percent
Pro forma operating income increased 26.8 percent
Revenue increased 12.2 percent; organic revenue increased 8.9 percent
ARLINGTON, Va.--(BUSINESS WIRE)--February 1, 2012--CACI International Inc (NYSE: CACI), a leading professional services and information technology solutions provider to the federal government, announced results today for its second fiscal quarter ended December 31, 2011.
Second Quarter Results
The following table summarizes results computed in accordance with Generally Accepted Accounting Principles (GAAP).
| | | | | | | |
| (in millions except per share data) | | Q2, FY12 | | Q2, FY11 | | % Change |
| Revenue | | $973.2 | | $867.3 | | 12.2% |
| Operating income | | $74.7 | | $59.4 | | 25.7% |
| Net income attributable to CACI | | $41.1 | | $33.2 | | 23.5% |
| Diluted earnings per share | | $1.51 | | $1.08 | | 40.0% |
| | | | | | |
We are pleased to report record second quarter Fiscal Year 2012 (FY12) revenue of $973.2 million, an increase of 12.2 percent from the second quarter of Fiscal Year 2011 (FY11). The revenue increase was driven primarily by higher volumes of intelligence, surveillance and reconnaissance; business systems and cyber-related work.
Pro Forma Second Quarter Results
During the year ended June 30, 2010, we completed two domestic acquisitions with acquisition-related contingent consideration, or earn-outs, which represent potential additional purchase consideration based on the acquired company’s performance post-acquisition. The fair values of the expected earn-outs were recorded as liabilities on the balance sheet as of each acquisition date, and are re-measured each quarter, with any change in the fair values of the liabilities reflected in the income statement. There were no earn-out adjustments in the second quarter of FY12. In the second quarter of FY11, the liabilities decreased, and operating income increased by $0.5 million. To provide a comparison of our results excluding the FY11 earn-out adjustment, pro forma results for the second quarter of FY11 are shown below.
| | | | | | | |
| (in millions except per share data) | | Q2, FY12 | | Q2, FY11 | | % Change |
| Revenue | | $973.2 | | $867.3 | | 12.2% |
| Pro forma operating income, a non-GAAP measure | | $74.7 | | $58.9 | | 26.8% |
| Pro forma net income attributable to CACI, a non-GAAP measure | | $41.1 | | $32.9 | | 24.8% |
| Pro forma diluted earnings per share, a non-GAAP measure | | $1.51 | | $1.06 | | 41.4% |
| | | | | | |
Pro forma operating income grew 26.8 percent over the prior year period to $74.7 million, driven by strong growth of 11.8 percent in direct labor and strong performance on a fixed price contract for which work is nearing completion. Pro forma net income attributable to CACI for the second quarter of FY12 was a record $41.1 million, or $1.51 pro forma diluted earnings per share, an increase of 41.4 percent over pro forma net income attributable to CACI of $32.9 million, or $1.06 pro forma diluted earnings per share, for the same period in FY11. Net cash provided by operations in the quarter was $29.2 million. (See Reconciliation of Operating Income, Net Income and Diluted Earnings Per Share to Pro Forma Amounts on page 13.)
CEO Commentary and Outlook
Paul Cofoni, CACI’s President and CEO, said, “Our record second quarter performance confirms CACI’s strategy to align our solutions with the government’s highest priorities in defense, intelligence, homeland security, and government transformation. For years, we have invested in our capabilities and client relationships, and positioned our company in the growth areas of cyberspace, counterterrorism, and intelligence, surveillance, and reconnaissance (ISR) that are emphasized in the Department of Defense’s recently released strategic guidance and proposed five-year defense budget. With record results in revenue, operating income, net income, and EPS, we continue to deliver on our financial goals of mid- to high-single-digit organic revenue growth, double-digit earnings growth, and strong cash flow.
“CACI’s ISR and government transformation drove our second quarter revenue growth. Our ISR solutions are in demand to support DoD’s stated priorities for innovative and advanced technologies to counter asymmetric and global threats and build a modern force for the 21st century. We also believe our ongoing support for the U.S. Special Operations Command will grow as DoD increasingly turns to these forces for worldwide operations. In addition, we recorded an approximately 20 percent growth in our federal civilian business over our FY11 second quarter, as clients continue to seek CACI’s solutions in government transformation, cyberspace, and healthcare IT.”
Mr. Cofoni continued, “CACI’s consistent track record of performance, operational excellence, culture of teamwork, and strong growth prospects are attracting talented professionals to our top management team. We welcomed Krisstie Kondrotis as Executive Vice President of Business Development and Dr. Lani Kass as Corporate Strategic Advisor. They both bring exceptional skill and experience to our company.
“CACI’s leadership team has, for many years, focused on continually aligning our growth strategy and evolving our innovative solutions to meet our clients’ critical needs. We manage all our projects for operational excellence that sustains client satisfaction and drives our high recompete win rate. Our contract awards and contract funding orders continue to be strong, and through the first six months of this fiscal year, the estimated value of our contract awards is almost equal to all of our fiscal year 2011 awards.
“Our strong operational performance in the second quarter gives us the confidence to again raise our guidance for Fiscal Year 2012 as we continue to set the foundation for future growth.”
Additional Financial Metrics
| | | | | | | |
| (in millions except per share data) | | Q2, FY12 | | Q2, FY11 | | % Change |
| Pro forma earnings before interest, taxes, depreciation and amortization (EBITDA), a non-GAAP measure | | $89.5 | | $73.1 | | 22.4% |
| Pro forma diluted adjusted earnings per share, a non-GAAP measure | | $2.00 | | $1.48 | | 34.5% |
| Days sales outstanding | | 61 | | 58 | | |
| | | | | | |
Second Quarter Contract Funding Orders and Awards
Subsequent to our Second Quarter Fiscal 2011 (Q2, FY11) earnings release, we made two significant adjustments to the estimated value of awards we received. As previously disclosed in our Third Quarter Fiscal 2011 earnings release of May 4, 2011, we decreased the estimated value of our FY11 awards by $450 million due to the sustainment of the protest of the TASC award received in Q2, FY11. As previously disclosed in our Fiscal Fourth Quarter earnings release of August 17, 2011, we increased the estimated value of awards we received during the first nine months of FY11 by $499 million due to the inclusion of previously unannounced awards. For comparative purposes, the estimated value of awards received in the first three quarters of FY11 was $1.65 billion, $512 million, and $471 million, respectively, on an adjusted basis, and $550 million in the last quarter of FY11, as reported.
- Contract funding orders in the second quarter were $605 million, an increase of 17 percent, compared with $515 million in the year earlier quarter. Funded backlog at December 31, 2011 was $2.19 billion compared with $2.18 billion a year earlier. Total backlog at December 31, 2011 was $8.0 billion compared with $7.45 billion at the end of the year earlier quarter.
- During the second quarter, we received contract awards with an estimated value of $962 million, an increase of 88 percent compared with $512 million in the year earlier quarter. Over 75 percent of these awards were for recompeted or extended business, indicative of our operational excellence and ability to retain our base of business. Second quarter awards included:
- A prime position on the U.S. Office of Personnel Management (OPM) $2.5 billion, four-year 10 month, indefinite delivery, indefinite quantity (IDIQ) contract to provide background investigation field services. The award extends our investigative support for OPM that began in 2004 and contributes $250 million in estimated value to our second quarter awards total reported above.
- Approximately $189 million in previously unannounced intelligence awards for both new and recompeted work.
- Approximately $175 million for a five-year contract to continue to provide our integrated security solutions consulting, training and related services in support of a major joint organization.
- A $39 million task order for the Defense Information System for Security to support the Defense Logistics Agency in developing a standards-based IT system to modernize and streamline the security clearance process. CACI will develop a Service Oriented Architecture-based solution that will increase the efficiency and timeliness of DoD’s security clearance process.
- A five-year, $37 million contract to provide technical support services that will help facilitate the continued development, testing and deployment of the U.S. Navy’s Enterprise Resource Planning Single Supply Solution program.
- Not included in the above estimated value of awards in the quarter is:
- A prime position on a five-year, multiple award, IDIQ contract with a $9.7 billion ceiling. This award is to provide translation and interpretation services for the U.S. Army’s Intelligence and Security Command (INSCOM).
Recent Strategic Mergers and Acquisitions
- On October 3, 2011, we completed the acquisition of Advanced Programs Group, LLC (APG), a leading provider of Oracle e-Business services in the federal market. APG capabilities include financial and asset management, procurement, and business solutions, that enhance productivity while saving costs. This acquisition significantly increases CACI's already strong capabilities in the government transformation market, expanding our customer presence in the federal civilian, defense, and intelligence communities.
Other Second Quarter Highlights
- The appointment of Dan Allen as President of U.S. Operations effective January 1, 2012. Mr. Allen succeeds Bill Fairl. Mr. Fairl has assumed the position of Chief Development Officer, where he is focusing on our mergers and acquisition activity and providing executive oversight, including customer interaction, for our major recompetes, and will be retiring on September 1, 2012.
- The appointment of Krisstie Kondrotis as Executive Vice President for Business Development. Ms. Kondrotis assumed overall responsibility for the strategic and tactical direction of our business development efforts to enhance our growth in our large addressable market of approximately $230 to $250 billion.
- The appointment of Dr. Lani Kass as Corporate Strategic Advisor and Senior Vice President. Dr. Kass, who previously served as Senior Policy Advisor to the Office of the Chairman of the Joint Chiefs of Staff, will provide advice to CACI’s senior management on opportunities for organic growth, support the development and evolution of our corporate strategy, and play a central role in planning our participation in the annual Asymmetric Threats symposia that we have co-sponsored since 2008.
Second Quarter Recognitions
- President and CEO Paul Cofoni was named Executive of the Year by the Greater Washington Government Contractor Awards for companies with annual revenue greater than $300 million. The award recognized his outstanding contributions to CACI, the community, and the government contracting industry.
- Executive Chairman Dr. J.P. (Jack) London was inducted into the Naval Postgraduate School Hall of Fame honoring his lifelong support for the nation and the school.
- CACI was ranked the 20th largest public company in The Washington Post’s Top 200 largest businesses in the national capital region.
Six Months Results
The following table summarizes GAAP results, including the effects of earn-out adjustments.
| | | | | | | |
| (in millions except per share data) | | 6 Months, FY12 | | 6 Months, FY11 | | % Change |
| Revenue | | $1,897.6 | | $1,701.2 | | 11.5% |
| Operating income | | $150.4 | | $111.5 | | 34.8% |
| Net income attributable to CACI | | $83.2 | | $61.9 | | 34.4% |
| Diluted earnings per share | | $2.91 | | $2.00 | | 46.0% |
| | | | | | |
Revenue grew 11.5 percent in the first half of FY12, with the strongest increases in our ISR and other intelligence related solutions. Operating income and net income increased in the first half of FY12 as a result of solid growth in both direct labor and other direct costs, ongoing cost control, product sales, and strong performance on a fixed price contract for which work is nearing completion. Revenue, operating income and net income attributable to CACI all reached record levels in the first half of FY12.
Pro Forma Six Months Results
As a result of the earn-out adjustment described on page one of this release, during the first half of FY12, liabilities decreased $0.6 million with a corresponding increase to operating income, due to reductions in the fair value of the earn-out liabilities, and during the first half of FY11, liabilities increased, and operating income decreased, by $0.9 million. To provide a comparison of our results excluding these earn-out adjustments, pro forma results for the first six months of FY12 and FY11 are shown below.
| | | | | | | |
| (in millions except per share data) | | 6 Months, FY12 | | 6 Months, FY11 | | % Change |
| Revenue | | $1,897.6 | | $1,701.2 | | 11.5% |
| Pro forma operating income, a non-GAAP measure | | $149.8 | | $112.4 | | 33.2% |
| Pro forma net income attributable to CACI, a non-GAAP measure | | $82.8 | | $62.4 | | 32.7% |
| Pro forma diluted earnings per share, a non-GAAP measure | | $2.90 | | $2.01 | | 44.1% |
| | | | | | |
Pro forma operating income increased 33.2 percent in the first six months of FY12 to $149.8 million for the reasons cited above. Pro forma net income attributable to CACI for the first half of FY12 was $82.8 million, or $2.90 diluted earnings per share, an increase of 32.7 percent over pro forma net income attributable to CACI of $62.4 million, or $2.01 pro forma diluted earnings per share, in FY11. Net cash provided by operations in the first six months of FY12 was $85.3 million, an increase of 24.6 percent over net cash provided by operations in the first six months of FY11 of $68.5 million. Revenue, pro forma operating income, pro forma net income attributable to CACI, and operating cash flow all reached record levels in the first half of FY12 (See Reconciliation of Operating Income, Net Income and Diluted Earnings Per Share to Pro Forma Amounts on page 13.)
Additional Financial Metrics
| | | | | | | |
| (in millions except per share data) | | 6 Months,
FY12 | | 6 Months,
FY11 | | % Change |
| Pro forma earnings before interest, taxes, depreciation and amortization (EBITDA), a non-GAAP measure | | $178.4 | | $139.9 | | 27.5% |
| Pro forma diluted adjusted earnings per share, a non-GAAP measure | | $3.81 | | $2.85 | | 33.4% |
| | | | | | |
CACI Raises its FY12 Guidance
We are raising our FY12 guidance due to our strong second quarter performance and continued confidence in the remainder of our fiscal year. The table below summarizes the new guidance ranges for FY12 based on expected GAAP results:
| | | | | |
| (In millions except for earnings per share) | | New FY 2012 Guidance | | Previous
FY 2012
Guidance |
| Revenue | | $3,850 - $4,050 | | $3,850 - $4,050 |
| Net income attributable to CACI | | $162 - $168 | | $157 - $163 |
| Effective corporate tax rate | | 39.8% | | 39.9% |
| Diluted earnings per share | | $5.72 - $5.94 | | $5.55 - $5.80 |
| Diluted weighted average shares | | 28.3 | | 28.2 |
| | | | |
This guidance represents our views as of February 1, 2012. Investors are reminded that actual results may differ for the reasons described herein and in our filings with the Securities and Exchange Commission.
Conference Call Information
We have scheduled a conference call for 8:30 AM Eastern Time Thursday, February 2, 2012 during which members of our senior management team will be making a brief presentation focusing on second quarter results and operating trends followed by a question-and-answer session. You can listen to the 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 877-303-9143 and enter the confirmation code 32989928. A replay of the call will also be available over the Internet beginning at 1:00 PM Eastern Time Thursday, February 2, 2012, and can be accessed through our homepage (www.caci.com) by clicking on the CACI Investor Info button.
About CACI
Celebrating our 50th year in business, CACI sustains an exceptional record of success by providing professional services and IT solutions needed to prevail in the areas of defense, intelligence, homeland security, and IT modernization and government transformation. We deliver enterprise IT and network services; data, information, and knowledge management services; business system solutions; logistics and material readiness; C4ISR solutions and services; cyber solutions; integrated security and intelligence solutions; and program management and SETA support services. CACI solutions help federal clients provide for national security, improve communications and collaboration, secure information systems and networks, enhance data collection and analysis, and increase efficiency and mission effectiveness. A member of the Fortune 1000 Largest Companies and the Russell 2000 index, CACI provides dynamic careers for approximately 14,400 employees working in over 120 offices in the U.S. and Europe. 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 globally (including the impact of uncertainty regarding U.S. debt limits and actions taken related thereto); terrorist activities or war; changes in interest rates; currency fluctuations; significant fluctuations in the equity markets; changes in our effective tax rate; valuation of contingent consideration in connection with business combinations; 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 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, the Defense Contract Management 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; the ability to successfully integrate the operations of our recent and any future acquisitions; our own ability to achieve the objectives of near term or long range business plans; and other risks described in the company’s Securities and Exchange Commission filings.
(Financial Tables follow)
CACI-Financial
| | | | | | | | | | | | | |
| Selected Financial Data |
| | | | | | | | | | | | | |
| CACI International Inc |
| Condensed Consolidated Statements of Operations (Unaudited) |
| (Amounts in thousands, except per share amounts) |
| | | | | | | | | | | | | |
| | Quarter Ended | | | | | Six Months Ended | | |
| | 12/31/2011 | | 12/31/2010 | | % Change | | 12/31/2011 | | 12/31/2010 | | % Change |
| Revenue | | $ | 973,243 | | | $ | 867,278 | | | 12.2 | % | | | $ | 1,897,638 | | | $ | 1,701,249 | | | 11.5 | % |
| Costs of revenue | | | | | | | | | | | | | |
| Direct costs | | | 679,398 | | | | 608,536 | | | 11.6 | % | | | | 1,314,329 | | | | 1,198,006 | | | 9.7 | % |
| Indirect costs and selling expenses | | | 204,541 | | | | 185,247 | | | 10.4 | % | | | | 404,823 | | | | 364,569 | | | 11.0 | % |
| Depreciation and amortization | | | 14,598 | | | | 14,060 | | | 3.8 | % | | | | 28,126 | | | | 27,142 | | | 3.6 | % |
| Total costs of revenue | | | 898,537 | | | | 807,843 | | | 11.2 | % | | | | 1,747,278 | | | | 1,589,717 | | | 9.9 | % |
| Operating income | | | 74,706 | | | | 59,435 | | | 25.7 | % | | | | 150,360 | | | | 111,532 | | | 34.8 | % |
| Interest expense and other, net | | | 6,538 | | | | 5,991 | | | 9.1 | % | | | | 12,138 | | | | 11,824 | | | 2.7 | % |
| Income before income taxes | | | 68,168 | | | | 53,444 | | | 27.6 | % | | | | 138,222 | | | | 99,708 | | | 38.6 | % |
| Income taxes | | | 26,888 | | | | 19,945 | | | 34.8 | % | | | | 54,829 | | | | 37,384 | | | 46.7 | % |
Net income including portion attributable to noncontrolling interest in earnings of joint venture | | | 41,280 | | | | 33,499 | | | 23.2 | % | | | | 83,393 | | | | 62,324 | | | 33.8 | % |
Noncontrolling interest in earnings of joint venture | | | (219 | ) | | | (264 | ) | | | | | | (192 | ) | | | (434 | ) | | |
| Net income attributable to CACI | | $ | 41,061 | | | $ | 33,235 | | | 23.5 | % | | | $ | 83,201 | | | $ | 61,890 | | | 34.4 | % |
| | | | | | | | | | | | | |
| Basic earnings per share | | $ | 1.55 | | | $ | 1.10 | | | 41.5 | % | | | $ | 3.01 | | | $ | 2.04 | | | 47.1 | % |
| Diluted earnings per share | | $ | 1.51 | | | $ | 1.08 | | | 40.0 | % | | | $ | 2.91 | | | $ | 2.00 | | | 46.0 | % |
| | | | | | | | | | | | | |
| Weighted average shares used in per share computations: | | | | | | | | | | | |
| Basic | | | 26,450 | | | | 30,288 | | | | | | | 27,683 | | | | 30,296 | | | |
| Diluted | | | 27,270 | | | | 30,906 | | | | | | | 28,556 | | | | 31,004 | | | |
| | | | | | | | | | | | | |
| Statement of Operations Data (Unaudited) |
| | Quarter Ended | | | | | Six Months Ended | | |
| | 12/31/2011 | | 12/31/2010 | | % Change | | 12/31/2011 | | 12/31/2010 | | % Change |
| Operating income margin | | | 7.7 | % | | | 6.8 | % | | | | | | 7.9 | % | | | 6.5 | % | | |
| Tax rate | | | 39.6 | % | | | 37.5 | % | | | | | | 39.7 | % | | | 37.7 | % | | |
| Net income margin | | | 4.2 | % | | | 3.8 | % | | | | | | 4.4 | % | | | 3.6 | % | | |
| | | | | | | | | | | | | |
| Pro forma EBITDA* | | $ | 89,482 | | | $ | 73,133 | | | 22.4 | % | | | $ | 178,363 | | | $ | 139,870 | | | 27.5 | % |
| Pro forma EBITDA Margin | | | 9.2 | % | | | 8.4 | % | | | | | | 9.4 | % | | | 8.2 | % | | |
| | | | | | | | | | | | | |
Pro forma adjusted net income attributable to CACI | | $ | 54,448 | | | $ | 45,886 | | | 18.7 | % | | | $ | 108,668 | | | $ | 88,439 | | | 22.9 | % |
Pro forma diluted adjusted earnings per share | | $ | 2.00 | | | $ | 1.48 | | | 34.5 | % | | | $ | 3.81 | | | $ | 2.85 | | | 33.4 | % |
| | | | | | | | | | | | | |
| | | *See Reconciliation of Net Income to Pro Forma Earnings before Interest, Taxes, Depreciation and Amortization and to Pro Forma Adjusted Net Income on page 12. |
| | | |
| Selected Financial Data (Continued) |
| | | |
| CACI International Inc |
| Condensed Consolidated Balance Sheets (Unaudited) |
| (Amounts in thousands) |
| 12/31/2011 | | 6/30/2011 |
| ASSETS: | | | |
| Current assets | | | |
| Cash and cash equivalents | $ | 24,045 | | $ | 164,817 |
| Accounts receivable, net | | 658,736 | | | 573,042 |
| Prepaid expenses and other current assets | | 41,084 | | | 44,219 |
| Total current assets | | 723,865 | | | 782,078 |
| | | |
| Goodwill and intangible assets, net | | 1,517,661 | | | 1,374,387 |
| Property and equipment, net | | 64,718 | | | 62,755 |
| Other long-term assets | | 106,893 | | | 100,911 |
| Total assets | $ | 2,413,137 | | $ | 2,320,131 |
| | | |
| LIABILITIES AND SHAREHOLDERS' EQUITY: | | | |
| Current liabilities | | | |
| Current portion of long-term debt | $ | 7,500 | | $ | 7,500 |
| Accounts payable | | 136,467 | | | 98,893 |
| Accrued compensation and benefits | | 158,939 | | | 173,586 |
| Other accrued expenses and current liabilities | | 143,140 | | | 157,242 |
| Total current liabilities | | 446,046 | | | 437,221 |
| | | |
| Long-term debt, net of current portion | | 589,597 | | | 402,437 |
| Other long-term liabilities | | 191,029 | | | 170,857 |
| Total liabilities | | 1,226,672 | | | 1,010,515 |
| | | |
| Shareholders' equity | | 1,186,465 | | | 1,309,616 |
| Total liabilities and shareholders' equity | $ | 2,413,137 | | $ | 2,320,131 |
| | | | | |
| | | | |
| Selected Financial Data (Continued) |
| | | | |
| CACI International Inc |
| Condensed Consolidated Statements of Cash Flows (Unaudited) |
| (Amounts in thousands) |
| | | | |
| | Six Months Ended |
| | 12/31/2011 | | 12/31/2010 |
| CASH FLOWS FROM OPERATING ACTIVITIES: | | | | |
Net income including portion attributable to noncontrolling interest in earnings of joint venture | | $ | 83,393 | | | $ | 62,324 | |
Reconciliation of net income to net cash provided by operating activities: | | | | |
| Depreciation and amortization | | | 28,126 | | | | 27,142 | |
| Non-cash interest expense | | | 5,910 | | | | 5,522 | |
| Amortization of deferred financing costs | | | 1,248 | | | | 1,762 | |
| Stock-based compensation expense | | | 7,243 | | | | 8,413 | |
| Provision for deferred income taxes | | | 14,162 | | | | 7,084 | |
| Undistributed earnings of unconsolidated joint venture | | | (661 | ) | | | (753 | ) |
Changes in operating assets and liabilities, net of effect of business acquisitions | | | | |
| Accounts receivable, net | | | (69,232 | ) | | | (17,458 | ) |
| Prepaid expenses and other current assets | | | (1,385 | ) | | | (8,962 | ) |
| Accounts payable and accrued expenses | | | 47,861 | | | | (3,651 | ) |
| Accrued compensation and benefits | | | (24,263 | ) | | | (13,430 | ) |
| Income taxes receivable and payable | | | (10,091 | ) | | | (8,584 | ) |
| Other liabilities | | | 3,030 | | | | 9,108 | |
| Net cash provided by operating activities | | | 85,341 | | | | 68,517 | |
| | | | |
| CASH FLOWS FROM INVESTING ACTIVITIES: | | | | |
| Capital expenditures | | | (7,138 | ) | | | (5,767 | ) |
| Purchases of businesses, net of cash acquired | | | (192,066 | ) | | | (126,387 | ) |
| Investment in unconsolidated joint venture, net | | | - | | | | (4,265 | ) |
| Other | | | (765 | ) | | | 1,019 | |
| Net cash used in investing activities | | | (199,969 | ) | | | (135,400 | ) |
| | | | |
| CASH FLOWS FROM FINANCING ACTIVITIES: | | | | |
| Net borrowings (repayments) under credit facilities | | | 180,001 | | | | (134,666 | ) |
| Proceeds from employee stock purchase plans | | | 2,205 | | | | 2,393 | |
| Proceeds from exercise of stock options | | | 2,700 | | | | 10,275 | |
| Repurchases of common stock | | | (209,680 | ) | | | (20,016 | ) |
| Other | | | (695 | ) | | | 456 | |
| Net cash used in financing activities | | | (25,469 | ) | | | (141,558 | ) |
| Effect of exchange rate changes on cash and cash equivalents | | | (675 | ) | | | 569 | |
| Net decrease in cash and cash equivalents | | | (140,772 | ) | | | (207,872 | ) |
| Cash and cash equivalents, beginning of period | | | 164,817 | | | | 254,543 | |
| Cash and cash equivalents, end of period | | $ | 24,045 | | | $ | 46,671 | |
| | | | |
| Selected Financial Data (Continued) |
| | | | | | | | | | | | |
| Revenue by Customer Type (Unaudited) |
| | Quarter Ended | | | | |
| (dollars in thousands) | | | 12/31/2011 | | | | | 12/31/2010 | | | | $ | Change | | % Change | |
| Department of Defense | | $ | 768,667 | | 79.0 | % | | $ | 686,706 | | 79.2 | % | | $ | 81,961 | | | 11.9 | % |
| Federal Civilian Agencies | | | 159,132 | | 16.3 | % | | | 133,353 | | 15.4 | % | | | 25,779 | | | 19.3 | % |
| Commercial | | | 41,723 | | 4.3 | % | | | 43,384 | | 5.0 | % | | | (1,661 | ) | | -3.8 | % |
| State and Local Governments | | | 3,721 | | 0.4 | % | | | 3,835 | | 0.4 | % | | | (114 | ) | | -3.0 | % |
| Total | | $ | 973,243 | | 100.0 | % | | $ | 867,278 | | 100.0 | % | | $ | 105,965 | | | 12.2 | % |
| | | | | | | | | | | | |
| | Six Months Ended | | | | |
| (dollars in thousands) | | | 12/31/2011 | | | | | 12/31/2010 | | | | $ | Change | | % Change | |
| Department of Defense | | $ | 1,501,934 | | 79.2 | % | | $ | 1,343,231 | | 78.9 | % | | $ | 158,703 | | | 11.8 | % |
| Federal Civilian Agencies | | | 293,141 | | 15.4 | % | | | 269,902 | | 15.9 | % | | | 23,239 | | | 8.6 | % |
| Commercial | | | 94,705 | | 5.0 | % | | | 81,262 | | 4.8 | % | | | 13,443 | | | 16.5 | % |
| State and Local Governments | | | 7,858 | | 0.4 | % | | | 6,854 | | 0.4 | % | | | 1,004 | | | 14.6 | % |
| Total | | $ | 1,897,638 | | 100.0 | % | | $ | 1,701,249 | | 100.0 | % | | $ | 196,389 | | | 11.5 | % |
| | | | | | | | | | | | |
| Revenue by Contract Type (Unaudited) |
| | Quarter Ended | | | | |
| (dollars in thousands) | | | 12/31/2011 | | | | | 12/31/2010 | | | | $ | Change | | % Change | |
| Time and materials | | $ | 283,891 | | 29.2 | % | | $ | 356,143 | | 41.1 | % | | $ | (72,252 | ) | | -20.3 | % |
| Cost reimbursable | | | 433,341 | | 44.5 | % | | | 287,230 | | 33.1 | % | | | 146,111 | | | 50.9 | % |
| Fixed price | | | 256,011 | | 26.3 | % | | | 223,905 | | 25.8 | % | | | 32,106 | | | 14.3 | % |
| Total | | $ | 973,243 | | 100.0 | % | | $ | 867,278 | | 100.0 | % | | $ | 105,965 | | | 12.2 | % |
| | | | | | | | | | | | |
| | Six Months Ended | | | | |
| (dollars in thousands) | | | 12/31/2011 | | | | | 12/31/2010 | | | | $ | Change | | % Change | |
| Time and materials | | $ | 576,494 | | 30.4 | % | | $ | 736,492 | | 43.3 | % | | $ | (159,998 | ) | | -21.7 | % |
| Cost reimbursable | | | 807,954 | | 42.6 | % | | | 551,003 | | 32.4 | % | | | 256,951 | | | 46.6 | % |
| Fixed price | | | 513,190 | | 27.0 | % | | | 413,754 | | 24.3 | % | | | 99,436 | | | 24.0 | % |
| Total | | $ | 1,897,638 | | 100.0 | % | | $ | 1,701,249 | | 100.0 | % | | $ | 196,389 | | | 11.5 | % |
| | | | | | | | | | | | |
| Revenue Received as a Prime versus Subcontractor (Unaudited) |
| | Quarter Ended | | | | |
| (dollars in thousands) | | | 12/31/2011 | | | | | 12/31/2010 | | | | $ | Change | | % Change | |
| Prime | | $ | 865,332 | | 88.9 | % | | $ | 753,006 | | 86.8 | % | | $ | 112,326 | | | 14.9 | % |
| Subcontractor | | | 107,911 | | 11.1 | % | | | 114,272 | | 13.2 | % | | | (6,361 | ) | | -5.6 | % |
| Total | | $ | 973,243 | | 100.0 | % | | $ | 867,278 | | 100.0 | % | | $ | 105,965 | | | 12.2 | % |
| | | | | | | | | | | | |
| | Six Months Ended | | | | |
| (dollars in thousands) | | | 12/31/2011 | | | | | 12/31/2010 | | | | $ | Change | | % Change | |
| Prime | | $ | 1,676,565 | | 88.4 | % | | $ | 1,464,089 | | 86.1 | % | | $ | 212,476 | | | 14.5 | % |
| Subcontractor | | | 221,073 | | 11.6 | % | | | 237,160 | | 13.9 | % | | | (16,087 | ) | | -6.8 | % |
| Total | | $ | 1,897,638 | | 100.0 | % | | $ | 1,701,249 | | 100.0 | % | | $ | 196,389 | | | 11.5 | % |
| | | | | | | | | | | | |
| |
| Selected Financial Data (Continued) |
| | | | | | | | |
| Contract Funding Orders Received (Unaudited) |
| | Quarter Ended | | | | |
| (dollars in thousands) | | | 12/31/2011 | | | 12/31/2010 | | $ | Change | | % Change | |
| Contract Funding Orders | | $ | 604,671 | | $ | 514,990 | | $ | 89,681 | | 17.4 | % |
| | Six Months Ended | | | | |
| (dollars in thousands) | | | 12/31/2011 | | | 12/31/2010 | | $ | Change | | % Change | |
| Contract Funding Orders | | $ | 2,208,600 | | $ | 1,972,285 | | $ | 236,315 | | 12.0 | % |
| |
| Direct Costs by Category (Unaudited) |
| | Quarter Ended | | | | | | |
| (dollars in thousands) | | | 12/31/2011 | | | | | 12/31/2010 | | | | $ | Change | | % Change | |
| Direct labor | | $ | 236,851 | | 34.9 | % | | $ | 211,814 | | 34.8 | % | | $ | 25,037 | | 11.8 | % |
| Other direct costs | | | 442,547 | | 65.1 | % | | | 396,722 | | 65.2 | % | | | 45,825 | | 11.6 | % |
| Total direct costs | | $ | 679,398 | | 100.0 | % | | $ | 608,536 | | 100.0 | % | | $ | 70,862 | | 11.6 | % |
| | | | | | | | | | | | |
| | Six Months Ended | | | | | | |
| (dollars in thousands) | | | 12/31/2011 | | | | | 12/31/2010 | | | | $ | Change | | % Change | |
| Direct labor | | $ | 473,616 | | 36.0 | % | | $ | 422,892 | | 35.3 | % | | $ | 50,724 | | 12.0 | % |
| Other direct costs | | | 840,713 | | 64.0 | % | | | 775,114 | | 64.7 | % | | | 65,599 | | 8.5 | % |
| Total direct costs | | $ | 1,314,329 | | 100.0 | % | | $ | 1,198,006 | | 100.0 | % | | $ | 116,323 | | 9.7 | % |
| |
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) | | | 12/31/2011 | | | 12/31/2010 | | % Change | | | | 12/31/2011 | | | 12/31/2010 | | % Change | |
| Revenue, as reported | | $ | 973,243 | | $ | 867,278 | | 12.2 | % | | $ | 3,774,169 | | $ | 3,334,135 | | 13.2 | % |
| Less: | | | | | | | | | | | | |
| Acquired revenue | | | 29,019 | | | | | | | 84,392 | | | | |
| Organic revenue | | $ | 944,224 | | $ | 867,278 | | 8.9 | % | | $ | 3,689,777 | | $ | 3,334,135 | | 10.7 | % |
| | | | | | | | | | | | | | | | | | |
| Selected Financial Data (Continued) |
| Reconciliation of Net Income to Pro Forma Earnings Before Interest, Taxes, Depreciation |
| and Amortization (EBITDA) and to Pro Forma Adjusted Net Income |
| (Unaudited) |
| |
The Company views EBITDA, EBITDA margin, Adjusted Net Income attributable to CACI and Diluted Adjusted 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 Adjusted Net Income attributable to CACI 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. We are presenting EBITDA, EBITDA margin, Adjusted Net Income Attributable to CACI and Diluted Adjusted Earnings Per Share on a pro forma basis, to remove the impact of the earn-out adjustments described on page 1 of this release, as we believe these pro forma measures are a better indicator of our ongoing, recurring operations. Pro forma EBITDA is defined by us as GAAP net income attributable to CACI plus net interest expense, income taxes, and depreciation and amortization, and less the earn-out adjustment described on page 1. Pro forma EBITDA margin is pro forma EBITDA divided by revenue. Pro forma Adjusted Net Income attributable to CACI is defined by us as GAAP net income attributable to CACI plus stock-based compensation expense, depreciation and amortization, and amortization of financing costs, and less the earn-out adjustment described on page 1; net of related tax effects computed using an assumed marginal tax rate of 39.3 percent. Pro forma Diluted Adjusted Earnings Per Share is Pro forma Adjusted Net Income attributable to CACI divided by diluted weighted-average shares, as reported. Pro forma EBITDA and Pro forma Adjusted Net Income attributable to CACI as defined by us may not be computed in the same manner as similarly titled measures used by other companies. These non-GAAP measures should not be considered in isolation or as a substitute for performance measures prepared in accordance with GAAP. |
| | | | | | | | |
| | Quarter Ended | | Six Months Ended |
| (dollars in thousands) | | 12/31/2011 | | 12/31/2010 | | % Change | | 12/31/2011 | | 12/31/2010 | | % Change |
Net income attributable to CACI, as reported | | $ | 41,061 | | | $ | 33,235 | | | 23.5 | % | | $ | 83,201 | | | $ | 61,890 | | | 34.4 | % |
| | | | | | | | | | | | |
| Income taxes | | | 26,888 | | | | 19,945 | | | 34.8 | % | | | 54,829 | | | | 37,384 | | | 46.7 | % |
| Interest income and expense, net | | | 6,935 | | | | 6,430 | | | 7.9 | % | | | 12,799 | | | | 12,577 | | | 1.8 | % |
| Depreciation and amortization | | | 14,598 | | | | 14,060 | | | 3.8 | % | | | 28,126 | | | | 27,142 | | | 3.6 | % |
| Earn-out adjustment | | | - | | | | (537 | ) | | | | | (592 | ) | | | 877 | | | |
| Pro forma EBITDA | | $ | 89,482 | | | $ | 73,133 | | | 22.4 | % | | $ | 178,363 | | | $ | 139,870 | | | 27.5 | % |
| | | | | | | | | | | | |
| | Quarter Ended | | Six Months Ended |
| (dollars in thousands) | | 12/31/2011 | | 12/31/2010 | | % Change | | 12/31/2011 | | 12/31/2010 | | % Change |
| Revenue, as reported | | $ | 973,243 | | | $ | 867,278 | | | 12.2 | % | | $ | 1,897,638 | | | $ | 1,701,249 | | | 11.5 | % |
| Pro forma EBITDA | | $ | 89,482 | | | $ | 73,133 | | | 22.4 | % | | $ | 178,363 | | | $ | 139,870 | | | 27.5 | % |
| Pro forma EBITDA margin | | | 9.2 | % | | | 8.4 | % | | | | | 9.4 | % | | | 8.2 | % | | |
| | | | | | | | | | | | |
| | Quarter Ended | | Six Months Ended |
| (dollars in thousands) | | 12/31/2011 | | 12/31/2010 | | % Change | | 12/31/2011 | | 12/31/2010 | | % Change |
Net income attributable to CACI, as reported | | $ | 41,061 | | | $ | 33,235 | | | 23.5 | % | | $ | 83,201 | | | $ | 61,890 | | | 34.4 | % |
| | | | | | | | | | | | |
| Stock-based compensation | | | 4,031 | | | | 3,507 | | | 14.9 | % | | | 7,243 | | | | 8,413 | | | -13.9 | % |
| Depreciation and amortization | | | 14,598 | | | | 14,060 | | | 3.8 | % | | | 28,126 | | | | 27,142 | | | 3.6 | % |
| Amortization of financing costs | | | 439 | | | | 1,022 | | | -57.0 | % | | | 1,248 | | | | 1,762 | | | -29.2 | % |
| Non-cash interest expense | | | 2,976 | | | | 2,780 | | | 7.1 | % | | | 5,910 | | | | 5,522 | | | 7.0 | % |
| Earn-out adjustment | | | - | | | | (537 | ) | | | | | (592 | ) | | | 877 | | | |
| Related tax effect | | | (8,657 | ) | | | (8,181 | ) | | 5.8 | % | | | (16,468 | ) | | | (17,167 | ) | | -4.1 | % |
Pro forma adjusted net income attributable to CACI | | $ | 54,448 | | | $ | 45,886 | | | 18.7 | % | | $ | 108,668 | | | $ | 88,439 | | | 22.9 | % |
| | | | | | | | | | | | |
| | Quarter Ended | | Six Months Ended |
| (shares in thousands) | | 12/31/2011 | | 12/31/2010 | | % Change | | 12/31/2011 | | 12/31/2010 | | % Change |
Diluted weighted average shares, as reported | | | 27,270 | | | | 30,906 | | | | | | 28,556 | | | | 31,004 | | | |
| Diluted earnings per share, as reported | | $ | 1.51 | | | $ | 1.08 | | | 40.0 | % | | $ | 2.91 | | | $ | 2.00 | | | 46.0 | % |
| Pro forma diluted adjusted earnings per share | | $ | 2.00 | | | $ | 1.48 | | | 34.5 | % | | $ | 3.81 | | | $ | 2.85 | | | 33.4 | % |
| |
| Selected Financial Data (Continued) |
| |
| Reconciliation of Operating Income, Net Income and Diluted Earnings Per Share |
| to Pro Forma Amounts |
| (Unaudited) |
| |
As described on page 1, the Company is presenting pro forma Operating Income, Net Income attributable to CACI, and Diluted Earnings per Share to present results excluding the impact of earn-out adjustments. For periods in which the earn-out adjustment resulted in income statement recognition, the adjustment was recorded within indirect costs and selling expenses. The Company believes that presenting the key measures of Operating Income, Net Income attributable to CACI, and Diluted Earnings per Share without the impact of these adjustments to indirect costs and selling expenses provides readers a better indicator of our ongoing, recurring operations. These non-GAAP measures should not be considered in isolation or as a substitute for performance measures prepared in accordance with GAAP. |
| | | | | | | | |
| | Quarter Ended | | Six Months Ended |
| (dollars in thousands) | | 12/31/2011 | | 12/31/2010 | | % Change | | 12/31/2011 | | 12/31/2010 | | % Change |
| Operating income, as reported | | $ | 74,706 | | $ | 59,435 | | | 25.7 | % | | $ | 150,360 | | | $ | 111,532 | | | 34.8 | % |
| Earn-out adjustment | | | - | | | (537 | ) | | | | | (592 | ) | | | 877 | | | |
| Pro forma operating income | | $ | 74,706 | | $ | 58,898 | | | 26.8 | % | | $ | 149,768 | | | $ | 112,409 | | | 33.2 | % |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | Quarter Ended | | Six Months Ended |
| (dollars in thousands) | | 12/31/2011 | | 12/31/2010 | | % Change | | 12/31/2011 | | 12/31/2010 | | % Change |
Net income attributable to CACI, as reported | | $ | 41,061 | | $ | 33,235 | | | 23.5 | % | | $ | 83,201 | | | $ | 61,890 | | | 34.4 | % |
| Earn-out adjustment | | | - | | | (537 | ) | | | | | (592 | ) | | | 877 | | | |
| Related tax effect* | | | - | | | 211 | | | | | | 234 | | | | (344 | ) | | |
Pro forma net income attributable to CACI | | $ | 41,061 | | $ | 32,909 | | | 24.8 | % | | $ | 82,843 | | | $ | 62,423 | | | 32.7 | % |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | Quarter Ended | | Six Months Ended |
| (shares in thousands) | | 12/31/2011 | | 12/31/2010 | | % Change | | 12/31/2011 | | 12/31/2010 | | % Change |
Diluted weighted average shares, as reported | | | 27,270 | | | 30,906 | | | | | | 28,556 | | | | 31,004 | | | |
| Diluted earnings per share, as reported | | $ | 1.51 | | $ | 1.08 | | | 40.0 | % | | $ | 2.91 | | | $ | 2.00 | | | 46.0 | % |
| Pro forma diluted earnings per share | | $ | 1.51 | | $ | 1.06 | | | 41.4 | % | | $ | 2.90 | | | $ | 2.01 | | | 44.1 | % |
| | | | | | | | | | | | |
| * Computed using an assumed marginal tax rate of 39.3 percent. |
| |
CACI-Financial
CONTACT:
CACI International Inc
Corporate Communications and Media:
Jody Brown
Executive Vice President, Corporate Communications
703-841-7801
jbrown@caci.com
or
Investor Relations:
David Dragics
Senior Vice President, Investor Relations
866-606-3471
ddragics@caci.com
