CACI - Earnings call transcript Q1 2020

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to the CACI International Q1 FY 2020 Earnings Conference Call. Today's call is being recorded. [Operator Instructions]

At this time, I'd like to turn the conference call over to Dan Leckburg, Senior Vice President of Investor Relations for CACI International. sir. ahead, go Please

Dan Leckburg

Allison, President morning, CACI of you this I you, Leckburg, International. I'm Senior thank morning. us joining Vice Investor for and thank everyone. good Dan And Well, Relations for

so slides presentation providing are let's to please. Slide move X, We

this statements Those in subject anticipated. forward-looking historical as constitute are that do under important of our press to views to current SEC law. could differ the today factors of There fact in listed not as filings. are and, will cause call be results reflect bottom from that and such, at actual release statements our address materially and the These factors last night's are described statements company's

incorporated of call. as of this Our transcript part this Harbor Safe is be included any statement on should exhibit and

to accordance GAAP. I not These measures. out a substitute measures would non-GAAP presentation for isolation as that should of discussion will or with like performance point in also include financial be in considered our prepared

please. Let's John? here's Executive International. turn CACI to Slide Officer of and To open Mengucci, President John discussion Chief morning, this our X,

John Mengucci

morning good and year for results. Thank first everyone. discuss our Dan, Thanks, fiscal joining us XXXX quarter you to to

Tom Bradford, Chief who's Mutryn, morning Officer; and Financial Greg this me us from With President are Limited, CACI U.K. of our joining the

Last strong measures, robust our We all do performance. and please. first quarter strong I with pleased performance flow. results growth released across cash X night, Slide our profitability, and have we very for fiscal am XXXX revenue financial and a

to results are representing contract our We start also These business approximately new $X for awards XX% with excellent CACI. XXXX. fiscal that of billion won an of

these our leveraging that shortly. to M&A continue distinctive closed We for background I'll mission invest In customers. enhance our on on program. more our provide three addition, future acquisitions recently for growth, acquisitions capabilities we

result XXXX we detail. Tom guidance of year these are in which fiscal a discuss acquisitions, our for raising will more As

we to the We about CACI words: talk types we which of what two a Investor mission. enterprise you introduced I’d does, about X and recent hear remind technology. at talk take way business will please. like we to and our serve four of expertise, you moment Slide our When customers, mission, enterprise, Day.

technology operations agency. customers, consistently that HR the $XXX we and process. provide of IT enable chain support the that our an infrastructure, and internal are This is Examples agencies for expertise clearance For and market addressable supply provides of systems and billion of in enterprise growing. financial,

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please. X, Slide

awards mission are drive We that are transformation. demand and expansion. recent the a market examples few enterprise both our addressable U.S. technology A contract the revenue across resources five-year healthy enterprise human margin growth areas and to will both trends of Navy's million nearly $XXX MyNavy support of organic seeing

trains, solution will transform similar Army, States performance recruits, how of personnel. Fixed Based HR under deliver its on consolidate and improve Army, and program and to an interoperable the past the applications our manage Navy for strong CACI legacy United hundreds services

and of systems our including the mission customer unmanned performance the contract mission. expertise aircraft opportunity, their commercial differentiated $XXX We the also and based record threats, Army recompete assist and won U.S. that with a win highlighting also encountering doubles expanded This IEDs. five-year emerging included expertise of this scope million to size

Research same Force contract the customer. largely new won to $XXX and is space, States five-year Laboratory with This of signals cyberspace. which to a intelligence work integration we technology CACI awards air, operations mission million and and the multi-domain across with addition, the to In Air has support additional geospatial led United since

please. X, Slide

You've capital previously win the operational drive of heard new pillars our strategy, growth. excellence, and for three business, discuss us deploy

record success winning strong is Our new our excellence. of financial business our and contract performance awards demonstrate indicative operational driving in

We distinctive for priority also which through drive continue our future our program, to deploy growth deployment. top capital to capital M&A remains

our continue customer’s quality, that fill investment and areas. differentiation further capability innovative high companies pursue most We to gaps drive critical in

earlier, on mentioned three Next acquisitions I Century, the we Linndustries week, closed last DeepX. over As and Shielding,

analytics, Department company of predictive growth data that geospatial fusion, offerings. acquisition Defense. delivers Century technology value Intelligence advanced learning a Community business technology base to machine the strong provides of This our Next and mapping, to high mission is the and additional

is IDIQ a aspect technology delivers Shielding to electromagnetic equipment systems awarded growth a mission we single award that protect hardened company interference, large key year. late last from Linndustries fiscal that of a were

This provides cybersecurity. for and is of that Security analytics, U.K. is National DeepX customers, area Defense and company U.K. applications growth digital And a our our domestic data and our mission a operations. development, acquisition supports operations and both part expertise transformation, U.K.

and investing am have needs are desire. Well both our next-generation with of bottom as the I Mastodon of LGS customer both offerings topic we extremely line the expected, only customers driving to ahead growth on they are performance of but pleased technology the not and we the acquisitions, ensure top

to organically key as as warfare, business communications, our program, signals addition including technology and electronic like In and intelligence, development. and priority continue assets areas well cyber we our M&A invest capabilities to

R&D years higher I As last at we fiscal in plan than quarter, year XXXX, previous development. mentioned throughout levels internal business and invest to

growth. wins that strong higher capital support driving slightly In addition, contract to spending are our

areas, Our of our include customer consistent invest with to first ahead increased strategy in results quarter investments those demand.

X Slide please.

CACI encouraged From capabilities. to agreement aligned signed customers to Turning both and provides environment, in XXXX particularly in government levels by spending back budget healthy for the we remain the market standpoint, two-year in a trends. XXXX fiscal areas August demand our

and November year Government is longer. resolution XXXX could continuing which a on fiscal effect started extend in XX through

start impact And business. CR, know, past, awards, year our in to given do under remain backlog our our deliver in the ability record we we contract our As have virtually on not commitments. financial on we as every and confident our this strong expect and you to an

In the organic awards. start a year with closing, first robust great were contract our strong to flow, increased record quarter profitability, growth, results cash and

addition, capital In position growth. for to our for deploying acquisitions are we future that continue accretive CACI

remain expansion in continue our shareholder margin ability to to growth, execute deliver and We confident and value. strategy our

turn With call over Tom. to that, I'll the

Tom Mutryn

everyone. John, morning, you, Thank and good

Please Slide to turn X.

higher by around of was with than which Our earlier pass occurred low first quarter through $XX expected greater XX% X.X% material growth. in than a Organic than billion, margin driven million bit was year revenue growth last organic the $X.X purchases anticipated. quarter

expectations we year with one-time consistent than profit Net quarter was benefit income last realized but associated in last for pretax sales than of that occurring in Recall of expected. with lower in million plan annual $XX $XX product the quarter our million the year the year. dollars the our first earlier

effective effective the In of XX% the first of was rate quarter’s addition, stock about quarter associated versus of below year last as this tax XX.X%. with vesting rate in the tax benefits a result

and we factors, Mastodon growth line first expectations, income first in the realized generating these LGS with for $XX net The with in expectation. consistent of Normalizing quarter. financially, call quarter adjusted approximately our more million acquisitions XXXX continue to EBITDA modest

Slide XX please.

of million our benefit first cash or continue of operating We over excluding strong days flow excluding including XX% the quarter in the purchases increased Days facility. XX $XXX cash with generate the last low flow sales the facility days with AR year. the outstanding to It XX facility.

additional X.X times, ended is We to Pro adjusted first to of trailing capacity quarter the times adjusted EBITDA incremental the acquisition. EBITDA including to the acquisitions $XXX around million net expected X.X debt be finance debt three to John to discussed. trailing debt ample at December, with end XX leaving the of net debt XX-month at forma month fund

Slide XX please.

guidance to to acquisitions. increased We are our we income to them we our net and Cumulatively, accordingly. to these expect $X fiscal $XX and revenue fiscal raising million our at recent around XXXX million have incorporate guidance XXXX

the In bit expected than times fit companies. adjusted digits, the and for we to well grow present a three in next aggregate, in All perspective strategic less these margins and mid-teens from X.X positive produce deliver EBITDA a month values. are paid double acquisitions EBITDA

the from operations flow Given improvement and strong flow in million our performance cash are cash $XX DSO we quarter, raising for be the first to million. acquisitions, by at our guidance XXXX $XXX to fiscal our least

now expect fiscal expect time, in At growth We CapEx the we new $XX million investments between to support to and to from higher $XX capital be wins. business same million. XXXX spending due facilities

not are associated modeling, to considering to about recent with you your me second the aggregate, second transaction acquisitions we let the fiscal costs. In quarter contribute To on quarter in some million color income net $XX give revenue partial expect quarter the but three XXXX. to when help material

year was income second quarter expect We a ago. what to consistent net be with

The positive fully in large organic impact rates and of material in cost guidance. to plus and expected recompete profitability from LGS one that and very the expected Mastodon decline plan during growth This are moved at offset our the favorable our by of XXXX and timing quarter. was the initial included FY

please. XX Slide

help may you with. indicators forward Our

XX% for XX first year-over-year. $XX.X a growth, continues about drive to X.X at record backlog contributing mentioned, month was in on This a in a awards book-to-bill record up basis. John $X a close trailing contract billion quarter times coming of to billion, As to at now

contracts, have visibility of fiscal now business. on will At the into X% better fourth we from guidance, our of quarter call. the from revenue the new existing also We earnings recompetes midpoint XX% discussed we XXXX and than XXXX come from X% expect

worth of another Our business to And for with of December award $X.X pipeline the bids of over new to March metrics with that billion to of new submit quarter over bid business during that at with CACI. and expect XX% $XX.X we submitted XX that CACI. XX% - remainder remains strong of billion the pending for

MAIQs is now note that these our practice multiple me booking contracts. estimated award will and IDIQ metrics pipeline This be going contract award for consistent for zero values exclude forward. our with value practice of upon Let

With over that, I’ll to turn back the John. call

John Mengucci

Tom. you, Thank

In and pleased our to to starts quarter to the CACI continues strategy. I'm on very element of every performance closing, team go Let's with first successfully fiscal our The Slide year. XX. execute

by are increasing delivering driving company capital We're for acquisitions continued delivering profitability significant operational that winning growth growth new by business. our enhance organic capabilities. are deploying are strategic we this healthy We excellence, and accretive for and positioning by

on and our commitments in expertise mission all performance talent, I incredibly of customers, of commitment beyond. this for and technology of proud of great to in confidence exquisite the innovation, that. we me you ability XXXX to deliver year employees. thank the None enterprise happens I without Our am our gives and our our and fiscal deliver and

With up questions. that, Allison, for let's open the call

Operator

Please Sachs. Goldman first question ahead. Our go come from Instructions] Gavin of [Operator will today Parsons

Gavin Parsons

so make Guys, strong fund bookings sure to converts sure need mean, that do into that need make can more the exercise faster is have been expand do really to I to do what hire, you footprint that and to or you ceilings? growth? you those on customer revenue

John Mengucci

actually, contract us through by tremendous I had take to Yes, we that winning manage when - more really like Yes. consistently with of when trying quarter we've record time expertise few come it's of the Gavin, There's we're it’s that I see to technology most here. The very whereas award is have and of quarter and - our do awards. revenue to vary shows predictive moment periods that pleased off that all levels. probably a awards thought fifth up jobs thanks. and items walk us One the - another ramp-up been because true be ramp a that both higher the we've importantly the just programs. is different for of up. extremely

will transition times then employees period the On side, incumbent as timelines somewhere three up support the programs that the away does quicker are expertise in vary a and pick one take to ramp up most those range. month but

time infrastructure. really look If program technology we our and other building and programs, you purchases, our facility lab need for at our material build outs,

up be anywhere can months. and ramp three So, between six times

how up. are we on we've traditionally for Hiring received it. once But we jobs we clearly that the job we're requisitions the focused at one of award, all can quickly element ramp looking have very So submitted.

submitted to candidate when bid, are All fine our our award. for team requisitions job is out looking our so recruiting submit prior there we of

combination type a what up have managing then making of we've we right won ramp the really the it's and certain period just talent. business So, of

Gavin Parsons

higher the on R&D then And IR&D spend. just spend,

in customer the you've IR&D. willing think is past more to pay I technologically mentioned for the differentiated

about the IRR talk has in retaining the and past having could customer So, IP about you can whether you would if that you not or attitude see that talk great. a as than it higher be towards

John Mengucci

Yes.

more should new, money element R&D and the is R&D and strategy a So our bid but I spending. of yes, element proposal in independent acquisition, spending with stronger new and we investment clearly are a say

to to that tech invest And the areas from Investor I'm are this development, going to agile continue cloud different to quadrants that in talk we our of really going none. start some Day. in tools as put such about to visualization our migration, enterprise second We're software

cloud And because only what It's customer and the have I that's companies that next our the on. that really applications that five seats comments moved team DeAndre intelligence say her to TWS more clear combined. to

our well to agile So, anything to going we're visualization as in as continue invest in distinctive tools.

past. warfare cyber, electronic things We heard signals talked the about me you've that continue invest in to communications, in Intel,

as and by and and mentioned, designing on rely and their really, intellectual intellectual independent those independent property. R&D the models really creating based driven LGS are on business where Mastodon specifically technology we're you Now, property, R&D

We've had actually customers technologies and frankly great like on property. that those this record by keeping marketplace is by eye headed. ahead to do well-informed those investments are track very on and us where being a those need. focused We customer We a for of good our intellectual do that

the Truly, in had intellectual into we've turning great awards. additional success property

One customer needs. do that the and a multi-use areas can software of that customer are download that can mission where those devices

needs invest and So, been will focused great preliminary our can this continue they of all-in-all, our very Customer some use more property. supportive have there see for take really intellectual future of that us investments. to is because of model to asking meetings in

Tom Mutryn

couple property. technologies own of They in particular job they to of of masterful Gavin, if number exclusive let a done has a the the and past have me could. things add assuring And, I LGS variety a rights patents. in that intellectual at

the an rates asset positive. return has CACI of And internal the so, is becomes mentioned IR&D. which And in very that of you

of a the profitability company A to very the money of bit very - of before trying of projects, stack investment. opportunities I very kind for science IR&D particular the opportunities, business trying are is there think of tied rack opportunities. science But types in and these and goal to the all to revenue sales forecast but prophecies, prioritize well-defined kind - robust cases what commits with of and these to much different is not projects,

Operator

Citi. question And Jon our will go from Please today next come of Raviv ahead.

Jon Raviv

guys spent. give is Is a On being on sales as to say the FY intensity fair in of a it's capital little CapEx, can more you tracking it that us percentage where history. XXXX to your highest

as of framework that So, it long-term there, to win move expect go sort basis It going over what as points of percent actually maybe This and we X%,I forward. think and below it’s sales. you the higher X% more could XX you historically is the is X.X%. the next surrounded that. is capital a into Is that year, but if it here should

John Mengucci

thanks. Jon, Yes.

spending. CapEx issue class talk to of actually about. us for like question a the is know, It’s high You nice

guidance into CapEx, routinely of contracts, we our of that often costs We a and perform every did each and actually we new we have with First at level some factor but, look manage. start-up program form is basis. this bottoms-up our a we off, something

possibly we and a and facility, multiple to since of programs locations, decision to can wins But then, our being our in facility one those work, awarded customers around we it. award to may closely facility buy allows plans the we that amount wins, us house that, another we see based the different like some buying make space, so with of changes had jobs, things we win made some those of

and mix the tell change, financial investment expertise it. of of Tom we’d let programs little technology facilities like types also as the And things in level as and those you talk about well. the more CapEx bit labs additional test side and a will drive And I that also of

Tom Mutryn

Yes.

facilities of one kind in number So, capital, kind the where terms we is John mentioned. of spend of

support second, element laboratories, the R&D of support infrastructure some then employees. equipment of you the probably to know, is third know, our IT, And XX,XXX internal kind you testing to efforts. You the know,

to working analogous similar that they capital. spending, capital as to And growing Somewhat capital can more capital, shrink, to know, need Very you that just working grew more growth. up the support as company very companies working companies year, to never need growth. sustain spending. grow, anymore will beyond CapEx extremely free In - that need we beyond this unlikely would scenario it capital little we

our of in somewhat indicator it's So, business. a leading

rate the of and expenses our that also with associated capital etcetera, into kind the reliable in are will spending I falls structure. kind underscore recaptured And which expense depreciation, has of

CACI kind where do our bid work on government. So, the of that's part have will of behalf facilities employees of to process owned

Jon Raviv

know year margin give here margin the moving then second income give talking get sense the of just And down you. cadence X.X% the a XX.X% just net year-over-year you a us quarter. pieces as for and us can a sense quarter? the that there? flat this follow-up, about in it’s you a of back-end Can but just versus bit - you're for loaded sort We Thank to

Tom Mutryn

Yes.

the first first terms on in of that for last quarter. margin the in year-on-year absolute But the positive a have goodness tough quarter So, value, the quarter some a million in to The contributes we plus. kind the contract LGS $XX so time transitioning of of made comparable. quarter. pass-throughs a margin first That rates from kind second transition and dovetail were kind attractive mention of mature very negative cost I of performance kind did and of to a and large to basis,

with little headwind negative associated bit a was that So, that.

the in the we to we our CACI core continue And as first to on were those kind quarter flat analysis business to up of of kind do respect of fourth the will we in adjustments, base perform. and in to Based slightly margins kind throughout into once provided. guidance particular year, third that add healthy LGS the quarter, that of Mastodon the mix, the and see some kind XX.X% support margins we

Speaker A Unidentified -

might We I far quarter-to-quarter guidance. other is here as with I fine Jon, a thus that up mix in having and It's sort our we well these we We've playing would Yes. believe first I line for very also add, at year. when if I that got at that the look continues you progress of year-over-year, it is of guidance sets to yearly quarter our change. One two expected. provide that tell us measures. out look business items our

more the tech our those as of and get times we side mission different are very into up expertise our As business, programs. mentioned ramp I traditional than

overall, very I'm is a where So, pleased second we're with very really to we much with and the strong at looking in line we're that which guidance half, provided. forward

Operator

question Sharpe of will next ahead. today go from come Matt Please Stanley. Our Morgan

Matt Sharpe

to can a Mastodon quarter. last that moment. LGS wanted somewhat times, deliveries here revs the touch Obviously, profitability performance jump Just given of nature saw for I we think on and bad choppy around there, and and

So, you how provide maybe acquisitions they're or not whether XQ could on on would and have plan if tracked helpful. be those some to-date through color

John Mengucci

mentioned Yes, Tom this Matt. performing are remarks, just as both financially, during I prepared mean, Thanks. expected. as

did product going in You far but, to as choppiness planned. their for of us, going deliveries mention be there’s some thus

bit is how share on also a that color I'd know, going. You just of little integration

customer have communications happy those three verbal meetings LGS software-defined need. team EW and CACI with report to very support Mastodon and to groups the teams collaborating March, the to best financial I'm solutions been very and SIGINT, for have material up Cyber, had Since that customer's solutions. procure our and come really

was ahead we make communications we're So, need. to products companies them had with we slightly bought integrated two why that the and doing sure area of what in reason those

overall, was we're on And, very not well. I from look nicely when So, maybe was mean, XXX very, we far the both think expansion, are expecting at margin know, In is time you companies, limited going about I the that significant that the back. it mark collaboration track. bps we

Matt Sharpe

wanted And opportunities also on I international touch then here. to

thinking summer, you to interest? the now least as and think opportunity might MooD the growing How at you obviously, know, you has business company. as acquired an is Enterprises, interest forward to though in are international I do a guys about build DeepX. You U.K. seems going out what the and it it It back

John Mengucci

Matt, thanks.

year technology So, our we all as we upon Purple so taking was areas MooD, or expand over this and we that And look mission at technical did expertise now as yesterday, capabilities attractive relationships, footprint that. you their focus U.K. as DeepX, recently Secure role, one mentioned, take and domain both and customer the margins, and did provide expertise my last their do in to how of companies knowledge.

site especially company the a many dangerous U.S. the to our with area. To out whom and enterprise both partners continues there, world the our to from place. area mission of us, is get in technology the support very across work tech in

that So, where beachhead our and in we'll our buying safe technology our can establish ourself and business the the those use government. products well U.K. future, of as from support that deliver as it's say a are to we to buy U.K. sorts to to mission as facilitate to direct sales countries looking

their to into goes to we business great XX-plus in we and up SIGINT that a EW really other very relationships well-established how sell that business material Mastodon primes delivering have customers a large, the be do to directly very, products sets U.K., knows with their the marketplace. who what especially year well fact there Today,

Operator

Our go Barclays. Please next question ahead. Akers will come of from Matt

Matt Akers

pretty announced. the bidders about ability and reasonable of your expensive like the deals even define space some there seen you reasonable. of at of the process in to assets how we've have wanted prices overtime? of about you sort to It other kind little gotten how I do you kind continue think more those that when to a Could Were the reached you to valuation bit talk any deals was ask other looks the just deals?

John Mengucci

thanks, Matt. Again,

type a have have of of a that or strengths we and spaces. development we kind in particular what part fill business whites keep white we acquisition those organization or of other running list space customer, a our in where where team, and pace operations the market-based white strategy, or of kind of As at And space. where technology, of look you geographic targets we kind either exists a

company acquisition, had For over them. for us knew in the two years, about source. with conversations of We they the sole acquire were potential dialogue for to one of domestic kind company. two We've opportunities

was it but discussions. to other to more X The recent, one month those XX was process have

so be them, good And we think, home A a perspective those. cultural their would rightly associated a we appropriately. their kind I very from for feel mission negotiate convinced companies a perspective we of our that feel their able employees were treating from consistent from And to very values with culture fit, price which was and

Yes, margin we on we the attractive happy of purchase in probably and to with three studios The good process, an the characteristics acquisitions, the capabilities due was brought of And and - acquisition to what excellent of a price. in a we process the financial understand did U.K. it the competitive said kind that we That’s consider trying there. for embark process were growth diligence in appropriate a that. enough

Matt Akers

it, your I do now? And but then, interest you in what for missed guidance expense maybe see

Tom Mutryn

on We kind basis million changed annualized deliver X.X% of expense. of not did capital, additional or million the $XXX of interest incremental worth know produce will $X.X at acquisitions, it, you an but

a know, a you For year, a million part dollars so interest of expense. year or of this with, full couple is

to know, rates You appear that down. said, continue come to being

the - know, should rates you so, some offset should offset that that debt. incremental And lower

Operator

question from next come ahead. today Please Sheila of will Our Jefferies. go Kahyaoglu

Sheila Kahyaoglu

gave maybe we in maybe the the XX you do the change mission up moving ton Tom, bps bridge is is from could any we maybe - there recompete? know bridge. you the about a way on mix? think QX. - headwinds, of that impact following benefits business pass-through pieces, of we benefit and - How more you any color, profitability there Jon's on in, focus I I how the way then, the regarding and you can just Is And an know, the was know, year-over-year, question can wondering, technology

John Mengucci

Yes.

XX kind So, you we know, my on our And of year start we full business know, run with, remarks a you month provide basis. Sheila, guidance. I’ll

of I to good are relatively our it create, and Although sales there few some of a not which the kind steady period like. of product year, from and fluctuations, of portions change this business last lot a know, would there's are period, year, you aspects material pass-throughs highlighted

business of executed our as because of in the bridge. Generally, business new and to overall last provided needs which XXXX, of in just unchanged initial we being contribution life well revenue for to won we about business we program this that that In guidance, year acquisitions, the when was the spoke be which the terms bridge, won new that which kind spoke kind three as we of falloffs natural but about. provided acquisitions the cycles, year, that's

In occurring. profitability, two terms things of are

EBITDA we've adding the articulated, acquisitions. XX Mastodon in that with XX and those is we’re consistent characteristics to be previously points. gross the One CACI, revenue LGS basis of and spoke about the In experiencing characteristics of core goals margins we marketing bigger piece the business should

the that's to quarter, every Within we're full see so, And going year. fluctuations. those

long-established a mention piece a plus. We to structure I a to The one TNM support rates customer profitability generating were high contract was at levels relationships. that cost is work, of decided of the successful which for customer. recompete did good of government key

the offsets of we in the terms knew and we business. get have to half will of into other improvement as the in And points add in in of little few appropriate so, a we that headwinds a first back has margin - basis That occurring. in to because we And our guidance was subtract wanted the year, growth quarter occur. that the kind the it you organic EBITDA little going some consistent with that bit and were aspects for bit highlight of second was I a quarter. did

Sheila Kahyaoglu

contracts just And maybe as expect you a follow-up win. the that to on

pipeline? are you what said seems How guys you from of which Kind Thank new XX% looking think How kind that’s big only you opportunities is X% think you. about the high. of the at? relatively do I rewards?

Tom Mutryn

Sheila. Yes,

think of because we're win. I at XX% currently recompete X% and a X%

So, yes, and very, was quarter the that very off strong. first coming

both the We’re closing X% X% and the gap. on confident

challenges own relatively of a mix, very has as the percentage its as that new work high For that little new. of business

all takeaways. those So, are

see So, what see I guess of at mix to out Should that. ramp-up pattern look the what to also we determine - say we is how the works like just would at leave going guidance looks our that first I'll We'll like quarter what the forward. and would is well, that I quarter. the coming go in second have

Operator

Rumohr next of question will von ahead. go come Please Our from Cai Cowen.

Cai von Rumohr

this has much. protests has me if been guys a bit Thanks especially. mean particularly of fourth late quarter? you Yes. has know, we color What that the were the quarter everyone does reported some But everyone so so the quarter little who and pretty fourth stretch has we could much for strong are space Give bookings, at not at mean asked. strong? looking looking so reported because or, strong are you some us complained of in if I've outs, I and this joining please. on excuse push-outs about all terrifically September been you some

John Mengucci

Sure, Cai.

numbers You close five that customers, CACI, they're attribute quarters, make I to the actually around where book-to-bill least looked tell to haven't seen we we've to we, making last of different all that types trend. and, we're over staying We know, understand we you to have at our at measures six going those we sure our sure you, strong know, go. any

we government years and programs out to lo X electromagnetic the their ourselves that XX there there well-funded company, About gotten to spectrum going as find larger funds. we, and out where we involved is with behold, programs go with and bid. a believe back, spend very And can the we’ve

hearing see You billion of immaterial year how one less multiple actually know, not than consistently and the look end We $X very only have changed, or that. million been flushes. and protests frankly, was $XX protested. those we for about We've did

for the So, actually winning is, us portends I and it places. addressable bidding We're mean, dollar what We're XXX-or-so-billion market. in we're less right a more.

us a we having around out have successes place. being very So, attribute very than rather frankly, having we're in bidding funding not contract government what We trends those focused would federal well-versed just, our the there issues. or for judicious seen or award’s and on

Cai von Rumohr

duration average - the given And has of at last the bookings, changed all? length backlog one, super the your backlog, the

John Mengucci

Absolutely.

focused to stickier to intellectual we those and larger longer we’ve are that and of technology we’ve flagpole a those closer our things differentiate classify that us because property And are as they're I versus programs always winning programs, programs term technology called say. many programs, of let's also would capabilities many on So class the can one. been on expertise based our are where allow think and different them what larger as we pursue of that

we're delivering solution million, some we've to as programs Those $XXX three-year jobs, are of not are So, our item $XXX $XXX customer. positioned million those. end that's take where us a we've to what million well on. while those won next winning long-term these programs. a been taken focused ourselves in find CACI’s It's at And but the we step multi-year sort history of

get go we backlog, six-month be we organic as programs. technology our at one. Cai, look of forward. going to that to a When winning yes, like you focus us compounding see, if really So, to we we're is these growth that starting that it’s to And multi-year what growth allows about on beyond great ramp-up, longer more term what three of

Operator

come Tobey Our will Sommer from of SunTrust. next Please question ahead. go

Tobey Sommer

I for you margin the of in opportunity which the had I and recurring you the the found context about Thank with in interesting. Could services, talk you. higher of recently quite announcement ongoing to you BlackBerry kind asked push

John Mengucci

Yes. Sure.

how that been around is only at, have we investments tech area, within still gap that mission not fill looking So, but we acquisitions third leg and the internal partnerships. of

parts what federal and the hires secured one understanding was some strategic of So those government with of other communications. needed,

the and federal of government, or in our a text is time that coming government do job that, day-to-day, do text and we the which long better we of securing quite a voice Some going only around that not federal of how for sent lot government believe on we across secure customers e-mails but every communications how do those to are a day voice. the

John a not only within to but or about We Chen a back We've with service both team looked either up a of in our there in BlackBerry. or as offer government his they What's great ours. unique found for win-win federal at partners. come it problem us a years actually have need cloud customer's can outstanding that and two solution a and ahead been infrastructure partner again of is customer.

on got that see growth pilots of on more us would going in of model couple and to allows a We've software basis. monthly already revenue streams, drive on starts get perpetual that type revenue a solution now. government us smartphone future. And and sits We like we're it an doing you that issued would and delivering us into I the those right, a where to earnings expect

Operator

from our JPMorgan. will Seifman question of go come And ahead. today Please next Seth

Seth Seifman

with around support? bit maybe seemed a the wonder about business with a backlog a if we billion ask - of to think sales level little Cai’s way. John, support second How I backlog billion business was question different total should that - billion can almost of the $X.X $XX sales. can I Back when question backlog $XX that

John Mengucci

of sure grow, Yes. the backlog see answer. what an continue We in the chase. the making disciplined first also on keeping number. should at easy eye we absolute guess you backlog I we We be that watch to us front is look eagle's continue to to number. We're

As Tom got all. is lot great first and questions our a focused had year-end. is we've mentioned we're on where What a second We've quarter earlier, of on really quarter.

confident. are We

business is our at book it look you of longer If of duration. today,

and that earnings growth that into we is consistently What should up the revenue growth to says time right. about see therefore want over going

a for only chatter there not lot is talking that's We have this organic just of growing not about growth us. there line because out business top been

capabilities things better, our only additional value at there growth, grow better not actually need on being when very what out chasing better day, to shaping and the shareholder show that believe to but out that there provide we're and the chasing grow We and, margins. market we're we addressable end also we're top of the line provide build discriminate us

about is are maybe years where our exciting now, where you we ago numbers, are if you if were to greater. compare What's backlog two we your using

We company. are larger a

backlog a at much pace. more rapid rapid, are We consuming

focused cash that there, But grows that out you and differentiate it it we it additional only extremely cash can are allows is funds I cash we addressable flow tell additional droves not we us fills to it all our gap are flow and And time as on - bottom because as line more. acquisitions, well it a even as top, gaps. fill market every much as

Seth Seifman

of a maybe how you as level kind And are disclosure a follow-up, and filings? close to for product sales

John Mengucci

Yes.

And, So, new technology. bunch just did been at that. framework you our spending provide in a we very, and be expertise of Industry mission around talking talked we framework this very this enterprise we we’ve time about it when To you rolled know, Day, know, about transparent, out.

thing simple believe the making sure our simple. our that the receivers still of about we talk do the think that that certain way we strive that is have to - one We’re it's areas make a very what business definitions for we is these to updated with because messaging

did Now, provide having said and all that then, believe releases, noticed, that, in remember, the I in you've is Day, since level submitted to information. of also we've if we Investor of the business at current of four we submitted. the press did done we've bids that we our each I areas. What be mix to continued share if of information, provide on and

we have put So, that there, we award value. dollar every out

or and talk tech. mission enterprise We or mission expertise it's enterprise about that's also whether whether

be So, mission. to I those the I'd if Maybe information. IR customer and and four assess, will more by quadrants, maybe continue team it you what providing Tom is know, tell you by type, that, enterprise and that's

to all still you and the more more information. in would So, We say early long stages. like we’re know way

we We’re trying can transparent we as believe now. as be to

also much think another this is your along there to internal instrument I I question step mentioned process, very appreciate there. but our systems

Operator

come DeNardi from Stifel. will of question next Please Joseph ahead. Our go

Joseph DeNardi

XX two trailing months. little the so Tom, book-to-bill times a over

for if should for bid think So, too. you'll book-to-bill your not what the you case. guess that's that's a this given is does for the to opportunity what If of you what you’ve if win, XXXX? case, book-to-bill imply said that good win then FY say about kind the activity, that's that pipeline and the expectations I moderate

Just Thanks. interested in thoughts. your

Tom Mutryn

interesting an question. quite It’s

kind So, of we a $XX.X kind of awards. in bids to of of submitted. year of kind do Last XXXX, bids outstanding, amount have be good billion

XX%. Our capture of revenue won, percentage rate, was that the we

higher high very level of is So, that number kind for certainly than us, a had any before. this we

sure. I'm And not is that repeatable?

So, if be the hard very repeat total awards as we'll those full year. to me speculate will with winning this. what overall we rate, of to amount for But it's for the high continue

that trying I'm go So, path. going down to to refrain particular from

Joseph DeNardi

Yes, okay.

John Mengucci

unfortunately, awards without next streaks, these a do for it I lumpy, never some word of to will And, of I billion would through goes Joe, us asking the is there, Every quarter in Tom time saying add also talk right? what you’ll about hear $X.X happened. take and most would me quarter. somebody all spend

see is a great The it's we FY a So, had way XXXX. mix. I it that

we We have couple minus the a or expected first FY XXXX that of plus quarter points.

I hear to going play when The well, much more not are based really flushes so of on release. factor It's end the our ready of. customers timing that these is a to as about continually year and budget

I also to bookings to So, year. this mix. we're you expect the would watch going And respectable throughout continue tell we’ll -

Joseph DeNardi

in to how how the bookings then, backlog and duration kind guys the thought market of help understand some a of terms giving you it about bit. to think little changes does like sound And are the as the

or kind the point. just like was disclose help backlog or at us the average of seems to maybe you of the be of bookings would calculate? straightforward It something what - kind kind duration what this guys of you. quarter that's in your Thank duration So, can fairly is of that weighted tell the your

Tom Mutryn

Yes.

increasing question it Joe, So, answered we the duration is. that is previously because John the believe

eight Some are is seven, driving larger of which five, higher duration. years words the

preparation helpful and of that providing noted. level kind Let specific on in delta metrics duly that us a of of s kind maybe reflect

Operator

come next question our Spingarn Credit of from And Please Robert ahead. will today Suisse. go

Robert Spingarn

technology or focus and how expertise where focus to ask of perspective? it How Seth And from cost then wanted more or strategic about that perhaps acquisitions. expertise a from acquisition. So, type an a to an just product just or to was differ, and perspective, go these domain from does integration expense back I integration integrating you differs

John Mengucci

Yes, thanks. Rob

put would put at we of a different terms describe where I technology would ones is what all the we tell on on it's before and or and L-X, how same we Mastodon three, focus in clearly would the we long to we two get NSS, where an the ways. acquisition. we few systems, that smaller I the a looked expertise actually company LGS these put where - and announced six, if that of would today. had we parts So area, we mission whether To you One integration, do write mission would

benefit being from all same on systems. the We

acquired and where a forward their together. party are another. when acquisitions some information in frankly, distraction on financials have we comes on go capital that's system We had the human And one and their

So systems. foremost, first look we at and

there's that, we next no in. how really employees difference and in is companies do the bring area in. And expertise bringing new Beyond the technology between technology it,

of kind how as a them, mission to technology is connect company to integrate we’d people do type asset and like of area that, mission within companies, you The those great them. are like third - we’d company and that have technology to makes together. we culture tell they but more is companies those What what fully not work I the creative bring acquired

the looking umbrella, really to kind those and in and their keep same we're for innovative them companies of in unique put come may ways. we although So,

business, is today looks so, came LGS of picked like another up Kevin just more of tech. perfect Kevin billion looked LGS, $X.X the in. Kelly the Kelly CEO company. LGS along was like The of that of things looked difference examples majority that is, our like. Kevin way, which what Kelly The are mission sort

know, frankly, acquisitions XX right. you very now, So, careful, done if we're I'm very, and

have - too from they very bring. draconian, they not word but the we're thing we ourselves day value came in. The I And destroy pride We away that increasing experienced is driving that on use the because value that get their to that it. take the at to that's they say one hate not and

looked to is do, what as we three larger, position of to companies, But the to team, some areas inside alike. best integration decisions management to exactly those we're which them incoming going how look is always the at good perhaps, with technology make we CACI. So, very

Robert Spingarn

just play you wanted any a I to benefit only And for then or other that you ask, eye happened. for have CACI to thing contractor, that as partnerships, might Microsoft example, award just existing jet with any the what with do Is opportunity there big there? the

John Mengucci

So AWS. relationship a with we've longstanding yes, had

we’re intelligence relationship long agencies Whether Microsoft with Those typically about or cloud-based almost AWS civilian an community about are folks. DoD talking out Cloud and Azure. infrastructure/frameworks federal the the have and great commodity both we’re talking We that need there.

have AWS most. than on Cloud We trained folks more the

sort a to customers’ The answers and long earlier, moved CQS, the quite my a for Cloud by would CACI intelligence time. exclamation put measure AWS next We've of of combined. not has One than in involved our government by on just I point been communities, it. cloud the providers has applications more called five us. cloud the

record. great performance So, past a of enjoy we

well. Our customers know as that

We’ll are AWS. will the cloud government leader provide work and moving continue have people that to standard which integrator’s means well outstanding cloud. Azure DoD well with to applications products enjoy we that companies, as which in be we position, the as both outstanding both both trained market the be We to in continue them, now

Operator

ahead. Please [Operator follow-up question go is from next of Citi. Instructions] Jon a Raviv Our

Jon Raviv

the quickly here CapEx. Just on

for is to around there for just CapEx there [indiscernible] So grown stick and I think a just Is is a longer? chance so before the here. lower X.X% thinking

Tom Mutryn

Yes I think so.

expensive in of LGS legacy lot some we particular than kind is CACI, mission our capabilities. as test percentage kind their higher of factor higher A some revenue facilities. other be when kind with okay in unit CapEx of demand allow get The work of equipment terms customer X capital stay classified of of CapEx to driving materially ahead focused. them a a laboratory of is the very would technology to

a it as We we little CapEx in too what we very of problem it XXXX is say for which a reiterate, have good revenue so as require CapEx to early to But will good forecast space mind, suffice to make have. longer-term our to - be associated with of grow, a more beyond. and will percentage

Jon Raviv

you. got right, all Thank sure it. Sure,

Tom Mutryn

You bet.

Operator

any I'd to the turn over question-and-answer conclude Ladies to Mengucci our session. this closing gentlemen, will and back At for conference this John like time, remarks.

John Mengucci

today's or the to you Price participation. and are listened thank follow Dan and help dialed for call. to your know would We thanks, call. on many after Tom you their webcast questions. who for Well, We George Allison, in of have thank available today's will Leckburg, that Mutryn, like everybody

Washington World there, fans those on out Series Championship. first to congratulations Now, Nationals winning your

Stay a celebrated we those Fight trust local our I you the as which of They and great in Washington is each the this enjoyed every theme do to commercials. area, to nation what who that For day of are the ours. company protect you really

a with day. Thank concludes you this very our So good call. have that, and

Operator

attending is thank Ladies and presentation. conference the today's for concluded, gentlemen, now we and you

now lines. may your You disconnect

CACI International (CACI) 31 Oct 192020 Q1 Earnings call transcript