CACI Issues Guidance for Its Fiscal Year 2020
Revenue growth projected to be 12.8 percent with 5.5 percent organic at the midpoint of guidance
Net income projected to be $295 million to $315 million, up 14.7 percent at the midpoint of guidance
Operating cash flow projected to be at least $400 million
FY 2019 guidance reiterated
ARLINGTON, Va.--(BUSINESS WIRE)--June 19, 2019--CACI International Inc (NYSE: CACI), a leading information solutions and services provider to the federal government, issued its guidance for its Fiscal Year 2020 (FY20), which begins July 1, 2019, and reiterated its Fiscal Year 2019 (FY19) guidance.
Commentary
John Mengucci, CACI’s newly-appointed President and CEO said, “Our FY20 guidance builds on our strong FY19 performance of organic revenue growth, expanded profitability, and strong contract awards. In FY20, we expect to double our organic revenue growth, further expand margins, and continue generating robust cash flow. Our addressable market continues to expand, and we have positioned CACI as a strong performer, well-aligned with key budget priorities. I am confident that CACI will continue to generate long-term shareholder value. Finally, I want to thank Ken Asbury for his significant contributions to CACI over the past six years. I am truly proud to have worked with him to contribute to the great company we have today.”
Guidance for Fiscal Year 2020
The table below summarizes our FY20 guidance ranges and represents our views as of June 19, 2019:
(In millions except for tax rate and earnings per share) | Fiscal Year 2020 Guidance | |||
Revenue | $5,500 - $5,700 | |||
Net income | $295 - $315 | |||
Diluted earnings per share | $11.52 - $12.30 | |||
Diluted weighted average shares | 25.6 | |||
Net cash provided by operating activities | at least $400 | |||
Note: FY20 operating cash flow expectations exclude the impact of the Company’s accounts receivables sales facility. | ||||
Following are the key factors related to our FY20 guidance:
- Gross profit is expected to increase by approximately 20% from FY19.
- Indirect costs and selling expenses, which includes fringe on labor, are expected to increase by approximately 18% from FY19. This increase is driven by the growth in our business, the full-year impact of recent acquisitions, and further investment in business development, IR&D, and human resources-related initiatives.
- Depreciation and amortization is expected to be approximately $108 million.
- Net interest expense is expected to be approximately $70 million.
- The full-year effective corporate tax rate is expected to be approximately 23%, with the effective tax rate in the first and second halves of fiscal 2020 to be approximately 19.5% and 25.0%, respectively. This difference is due to tax benefits associated with the vesting of equity grants in the first half of fiscal 2020.
- Capital expenditures are expected to be approximately $55 million, reflecting the full-year impact of recent acquisitions.
We are reiterating the FY19 guidance we issued on May 1, 2019. The table below summarizes our FY19 guidance and represents our views as of June 19, 2019:
(In millions except for tax rate and earnings per share) | Fiscal Year 2019 Guidance | |||
Revenue | $4,900 - $5,025 | |||
Net income | $262 - $270 | |||
Diluted earnings per share | $10.31 - $10.63 | |||
Diluted weighted average shares | 25.4 | |||
Net cash provided by operating activities | at least $350 | |||
Note: FY19 guidance assumes a full-year tax rate of 19.9%. FY19 operating cash flow expectations exclude the impact of the Company’s accounts receivables sales facility. | ||||
Conference Call Information
We have scheduled a conference call for 8:30 AM Eastern Time Thursday, June 20, 2019, during which members of our senior management will be making a brief presentation followed by a question-and-answer session to discuss the guidance and management’s performance expectations for the new fiscal year. You can listen to the webcast and view the accompanying exhibits on CACI’s investor relations website at http://investor.caci.com/news/#upcomingevent at the scheduled time. A replay of the call will also be available on CACI’s investor relations website at http://investor.caci.com/.
CACI Announces Investor Day
CACI will host an Investor Day for investors and analysts on Tuesday, September 17th, 2019 in New York City. During the event, members of CACI’s senior management team will discuss key attributes of the company’s business, as well as CACI’s strategy, financial performance, and other topics. Further details, including webcast information, are forthcoming.
About CACI
CACI provides information solutions and services in support of national security missions and government transformation for Intelligence, Defense, and Federal Civilian customers. A Fortune World’s Most Admired Company, CACI is a member of the Fortune 1000 Largest Companies, the Russell 2000 Index, and the S&P MidCap 400 Index. CACI’s sustained commitment to ethics and integrity defines its corporate culture and drives its success. With approximately 22,000 employees worldwide, CACI provides dynamic career opportunities for military veterans and industry professionals to support the nation’s most critical missions. Join us! www.caci.com.
CACI-Earnings Release
CONTACT:
Corporate Communications and Media:
Jody Brown, Executive Vice President, Public Relations
(703) 841-7801, jbrown@caci.com
Investor Relations:
Dan Leckburg, Senior Vice President, Investor Relations
(703) 841-7666, dleckburg@caci.com