CACI - Earnings call transcript Q4 2020

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Operator

Ladies and gentlemen, thank you for standing by and welcome to the CACI International Fourth Quarter and Full-Year Fiscal Year 2020 Conference Call. Today's call is being recorded. At this time, all lines are in a listen-only mode. Later, we will announce the opportunity for questions and instructions will be given at that time. At this time, I would like to turn the conference over to Dan Leckburg, Senior Vice President of Investor Relations for CACI International. sir. ahead, go Please

Daniel Leckburg

and for everyone. joining Cole, and Dan thank you us good you, I'm morning, Leckburg Thank this morning.

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

be I part this accordance presentation considered Our financial transcript or These of also incorporated would will any in non-GAAP measures. Safe out GAAP. not measures performance statement and should as include included Harbor of that call. is prepared with to on like as for be point this of a our substitute isolation discussion should in exhibit

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

John S. Mengucci

Chief joining good Limited, quarter Officer; well year CACI us for Thank the everyone. discuss our Financial and With me results, of to guidance. XXXX Greg from President who's Tom fourth Thanks, you our as are: UK. and and Dan, Mutryn, XXXX morning, year fiscal Bradford, fiscal joining as us our morning this

times. want healthy safe that and are you and Before and we hope get unprecedented these your started, to again our I express Tom during families

COVID-XX critical pleased their XXXX, Last night, as very are our well technology as of And our our expertise fiscal for as we we customers. quarter performance. Slide for I X, unwavering fiscal proud released am commitment We also XXXX. with full-year guidance fourth all employees, results and our please. our we delivering want their to and to to how resilience and confront reiterate

growth million as of EBITDA and to nearly or even which COVID-XX year-over-year financial navigated $XXX in XX.X% was with quarter, net cash a great a X% a in pandemic. finish revenue year in operations XX% fourth commitments, our Our exceeded over adjusted we we met income, the from and year, in margin, strong

For cash XXXX, growth growth to margin grew organic X.X% accelerating we the per year and EBITDA full XX%, adjusted flow expectation. earnings fiscal $XXX over with revenue our expanded of XX%, million. of saw robust share from operating our revenue delivered by We initial XX%,

representing billion we addition, record billion booked to work awards, $X.X a In CACI. with new $XX.X of contract

the billion cybersecurity and demonstrating delivery. work of CACI's largest included single new with of our technology well that Half record is our as to capabilities, in strong successes contract history, award track award as $X.X our leading the CACI, award Geospatial-Intelligence Our XX-year National TCS Agency. network

We CXISR award awards a our please. also prior cybersecurity including and software of the BEAGLE five-year TCS Army X, Notably, won Agile and Customs of Army our and program. DHS capabilities leverage M&A our Border networks. NGA Army significant with enhancing won the XG networks, acquisitions, the of and development. $X.X CXISR provide the we work the leveraging new within expertise Command to Futures technology Protection, billion differentiated And capabilities objective and strategic performance past Slide next-generation resiliency key

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

Our driving cash strong expansion And of our record winning indicative flow and new margin awards business. demonstrate excellence. are in contract operational success

our capabilities EO/IR, that announced program. we AVT staff. engineers, gaps include brings adding onboard our opportunities a imaging capabilities; the technicians looking machine strategic the afternoon, use In advanced a ISR best-in-class two for technology AVT's high-margin acquisition refresh and best-in-class of culture innovative M&A that company large technology operational and EO/IR top by differentiated innovation across XX of with priority. mission set. capabilities strong processing market enhance technology the automate expected intelligence national of increasing domains. capital the precision AVT, imaging what differentiation pursue CACIL program, Through Infra-Red, Yesterday analog capability platform offerings security, learning deployment, first, which AVT's our remains exemplifies today. sensors a or customer terms opens is that our for we M&A areas of Electro-Optical or from our and, up in second, M&A company technologies. and expand high-quality, AVT ISR companies digital of of critical over artificial growth current Ascent Vision the our talent, to using we're high-growth, and Technologies, with technology is existing than significantly market algorithms, more expands and video in multiple growth current fill

of technology non-kinetic offerings. In and counter-UAS RF creates detection mitigation best-in-class addition, CACI's the industry-leading combination set of AVT's EO/IR and a technology

delivering system week, serve company AVT's and of to CORIAN Tim counter-UAS the CACI's fighter. commitment unwavering accustomed leading one the result business Slide also systems. mobile of further three that national mounted technology a control combination are X, Ranger, to Army's the system, CACI's as Army UAS counter-UAS leading semi-fixed brings the who Counter business. pleased forward by this technology same the selected and Sheehy, customer and SEAL approved EO/IR missions Navy The strong Founder in command in The which to systems AVT's will the of directly with use military, In AVT's years also Tim to please. war office DoD's I'm utilizes fact, office one earlier enhanced products software fixed XX and an to security both skills and as as Joint cutting-edge we will continue as CEO, technology for a decorated that and counter-UAS market. a DoD. the crucial CACI, is L-MADIS of announced announce selected veteran to

about EBITDA the margin expect midpoint XXXX. details our X%, shortly. XXXX of generation. flow Our on performance fiscal XX those we financials guidance, basis At of CACI adjusted in provide of growth, and EPS revenue for FY in continued continued growth Tom expansion cash points, will XXXX double-digit positions FY robust success total

consistent Our fiscal margin growth longer-term attention and continued outlook XXXX above deficits Slide outlooks, goals and remain with optimistic prospects. Despite year recently our our of to we X, established our increased and budget financial addressable expansion. please. performance market near about is

Control is the Budget government and, for thus framework. Act a year following First, far, of budget XXXX framework established XXXX Congress fiscal that

year defense it's we on Congressional bipartisan continue start While resolution, bills missions. continuing fiscal XXXX be to will under or national year see security signed passed whether we if predict time a to appropriations and difficult government and support for the

Section authorization clear the September be Act of that CARES currently is pandemic to by then. expire while XXXX COVID-XX under on over not Second, the will set XX, it's

actively industry working are protected. an our advocate ensure to result, of security XXXX a extension to for Section that critical As and jobs is programs national

the point the Act, second called legislation the own supported XXXX the COVID-XX on called bipartisan staff extension round one was which House by Act, for All a Hill draft to passed extension Senate's fact, base. defense XXXX. a the their of a lawmakers and of included interactions our of with from HEALS Section HEROES also version In Section year. The indications industrial

fact, environment environment and about think of threat both the we looms threat priorities. just Third, up to opposite. actors Adversaries security ongoing this continue have global large. sides bad of to aisle believe support future the budgets, reality the the COVID-XX; recognize let national because as not We the political and in of need

large Finally, and market a we have growing over billion. $XXX of addressable

security long-term almost security continue The little any I'm position have cost-saving investments national in enduring, to extremely our budget significant Given and our modernization well with fourth We contracts. to that potential in and X.X%, IT market national as over priorities, well procured full-year grow. environment. modernization, confident In share under customers our are and our and capabilities, CACI pleased our remain is we differentiated will priorities performance. of quarter to a alignment well-funded as closing,

We I'll long-term continue growth, turn requirements business over We cash our execute driving ahead generating our to to of call Tom. to successfully manage stay continue strong high-valued shareholder expansion emerging, value. and the to flow. customer With that, margin and strategy,

Thomas A. Mutryn

Yeah. John, you, Please turn X. good and everyone. to number Thank slide morning,

We to X, market and expansion. Net representing of and fiscal the significantly billion, X%. an income from was Our margin revenue year. $X.X of fourth of revenue excellent a growth Adjusted growth increased organic million X% quarter in increased close $XX of generated Slide overall by a XX.X%. year EBITDA successful was please. driven ago, quarter

organic For despite growth, of growth impacts. than X% the the full $X.X more XX% year, we COVID-XX revenue, with of billion generated representing

trailing million, please. with our continue an net cash to close tax ended associated reflecting last by with in million million prior and Slide of payments. DSO the impacts COVID-XX cash from year's cash the with impact margin XX% we $XX $XX with margin of results. of to AR XX revenue please. Fourth both XX, deliver We $XXX fiscal margin. continued overall of growth, We fiscal debt million generated an XXXX million of purchase operating EBIT year the income expansion, represents full for facility, EBITDA direct slide XX.X%, our collections in impact to efficient And on adjusted year at $XX as with purchase excluding times. days employer at operating over flow $XXX X.X to X.X% month XX adjusted of Turn around XXXX. The deferral up million was positive was line was to quarter strong $XXX days XX year driven accounts income, Net the the collections, The market was XX%. net payroll flow our well expansion tax flow receivable XX, the increase payroll excluding as of cash compared the deferral. end to the facility. year,

acquisition mission Technology, innovative in the announced Ascent we areas well-funded technology. successful Vision yesterday, and priority company of noted, John As of a

price adjusted AVT excluding remainder fiscal and accretion with GAAP $XX was intangible XX.X The generate and which million, credit amortization of $XX modest of around to AVT funded the excluding revenue $X.XX expenses. about XXXX, one-time one-term we noncash we of of expenses. $XXX facility. million will revolving purchase generate AVT provide of about expect For our and our certain EBITDA, months, million accretion, year

to credit realize capacity and $XXX than capacity acquisition. our basis, this price XX next expect at have million value acquisitions. consider less have Slide $XX adjusted million ample on attractive what related we leverage high-margin of high-growth, we We a of the acquired our to times is month's asset we that the X.X multiple Bottom line, and Post-transaction, additional differentiated times tax continue a a an On over for EBITDA. to company we facility. equates adjusted unused XX. to net

year Now, let's our fiscal turn XXXX to guidance.

is confidence provides significant outlook. process guidance This planning our years, and on prior in based visibility process. our program-by-program bottoms-up As a in

and billion $X.X of the XXXX, expect income midpoint, between For we implies $XXX net at This X.X% COVID-XX between be expectations impacts. year $X.X and million. to and revenue including organic fiscal million to expected revenue be billion $XXX around

around both expect up We points, XX.X%, basis expansion margin of core and from XX driven margins AVT. by the adjusted contribution EBITDA

high-valued expansion growth, on-contract healthy market, addressable Our infrastructure. margin by and our excellent program enhancements efficiencies business are our areas and growth in of our new and wins driven in execution,

We in are facilities be help year growth-focused fiscal specialized portion Depreciation to direct are million million, amortization in tax, investments which should Capital of acquisition. the additional line through with for year expected at at million. expectations which payroll continued be last some includes XXXX. number To employer Interest This please. $XX currently calendar for Slide fiscal include which around cash the deferrals includes XXXX, for year approximately to AVT in $XXX $XX year-end. operating and $XXX around programs. are expected be runs expecting expenditures expense a are flows from of technologies here least of million. XX, modeling, the with million of $XX mission

tax years. We second are rate stock of full-year the quarter impact the were in granted due prior lower awards a of tax to a expecting with which XX%, vesting in the materially effective rate

and guidance assumes of We a by reductions. comparisons and range and fiscal at that million $XXX Section revenue $XXX COVID-XX-related to are December income Slide from our is impacted XX. CARES and through $XX our around under profit typical extended expecting impact in a impact year-over-year revenue the the $XX support COID-XX in million. This Act year revenue first quarterly COVID-XX million impact half profitability, for And with assumes in of million sequential period. XXXX a net of increase least XXXX the to of continues

prospects indicators, forward remain to Turning our strong.

For X% of to fiscal recompetes, expect from business. programs, XX% from XX% come XXXX, we existing from and year revenue our new around

to XX% We have of new under $X that business for bids evaluation, billion CACI. submitted with of

with I'll performance, year-end, bottom over billion cash We and over expect expansion, John. of another through we XX% are financial to another that, that continued With call In of margin business the line expecting strong turn with healthy $XX.X new growth, CACI. year submit to robust to top calendar for flow. back and summary,

John S. Mengucci

you, Tom. Thank

cash modernization slide everyone, stepping in delivered our talent, to well times without record and employees' growth, we awards. to continued amount truly and reiterate, in fiscal commitment increased CACI innovation, and And year, how revenue flow. am and We year entire a is prospects healthy customers' for confident of team, of growth, unprecedented help we performed Cole, XXXX. possible go I and fiscal proud of CACI continued remain expansion, each meet To contract with revenue forward. XXXX, this up, record is Let's challenges. XX. None results that call the are our We and to open financial let's These challenges exceptionally our and missions. our and country robust these margin the again, robust security cash questions. flow, national there organic Critical day. in margin expect our be remain, up expansion, for going including call, to will And every won

Operator

Spingarn session. ahead. And question-and-answer (USA) come go - numbers. will Hi. our now Robert question Please today LLC will the Securities Nice And Spingarn Credit Suisse Credit first begin Suisse. from morning. Good Robert we with

John S. Mengucci

LLC Thank of Suisse you Securities Rob. ask Spingarn Morning, wanted Robert - questions. couple Credit to you. (USA) product a I

But out in like from products after? capability, that First, an contracts you target markets, in the did there, their differ LXHarris, suppliers remarks. do you'll EO/IR of AVT other of type terms be prepared discuss going how

John S. Mengucci

thanks. Rob, Yeah.

the digital mean, to comment couple or never they way on I a So, But guess go want the that's see of what? so too I'm itself. platform you first And technology proprietary pieces vast. I very our know important differentiates software it's going on is based competitors there. imaging specifically to markets. here. detail I one, going us? EO/IR what But the AVT don't data What forward, into the we advanced in differentiation do enough what that much see processes that imaging on

come processed That's intuitive processed. as to within algorithms machine-learning differentiator. and doesn't itself. actually in to the EO/IR it So, to has exquisite have artificial large ground command intelligence, It's the it It well. get a control, advanced down also system and

we technology have. we've we've quadrant as much very at looking So, can that innovative technology what any about software like find been talking out, really built this we do on how mission do we device

than So, SIGINT imagery two is nothing are a many which products products have gimbal-based Macedon an different out hardware-type by the we other , that EO/IR delivered there. of and collection system (XX:XX-XX:XX)

there's capability. So, saw we trend automate is broad there platform a what to

I EO/IR faster able other most in – read like and looking and and trying the automated today. weapon really folks a EO/IR have at EO/IR. vehicles, RF some the They complementary have automated What But to What the think lot things nature. to people's you be have rates onboard focus user on the and They that Counter-UAS done Counter-UAS. have to radar with is it packages. be were systems, marry CACI back tip work was precision. digital to that technology expanding with I'm that technology AVT, SIGINT, processing. have be do up in So, into They mission who to combine looking get and find of to AVT able sensing. have they smaller a we to about (XX:XX) about

we technology. investor mobile mindset, AVT looking in in what and do an systems combining systems, what in fixed So, the does at

sense And (USA) that in us and typical note, today. And the then, LLC delivering power is? weight and big of in a you Spingarn thank differentiate products about we also but differentiation, how Credit a little Well, Okay. algorithms give size there. you does lower what SteelBox nutshell, color. could about is Securities supplier how that, bit that the beyond for separate Suisse out far delve EO/IR the it's on So, a a maybe software all - opportunity Robert a

John S. Mengucci

Yeah, Rob. Thanks.

which that e-mails, use yet. have of market. civilian DOD across in very but Capabilities contracting interest this actually talking not secure we're high are many got to slowed a of high expanding provides, very capabilities a looking mobile and number users demand. that it's a the as COVID agencies as some, had size, priorities agencies, number on no the mistake. Rob, of agencies of process seeing and is voice need do mobile as in are and tech. They strong mission SteelBox the base, exist text and sending about we we're – down agent federal make well type So, but for the user those high We've number

have subscription and about Rob. those All of in XXXX. by users working expressed calendar We're something months. customers We've growth. models at just the next our end inform got that up additional support the under subscribers time to six of X,XXX We'll over users actually interest now, be better will year scaling XX,XXX get looking various we on with the

another our product-based mission the We of property. We solution had some property we who It's combined another intellectual unique intellectual So out with partnered where invested with some went tech. and that doesn't COVID. times that, luck of ahead But, And BlackBerry, never of need. I'll there far we it RFPs. as know, would when nation are you you a happens. say something talk something until ahead have we buy about know, of at

contract nine driving subscription base, if margins demand. us earns to look going six what early with would much increased for a even of more normal we come higher than it's to So, CACI course, months it's next the of type the (XX:XX-XX:XX). And,

Operator

come Stifel. ahead. next Go Joseph question with from DeNardi our will And

Joseph William DeNardi

Hi. Yeah. morning. Good

John S. Mengucci

Good morning.

Joseph William DeNardi

for flow the clarity run a provide cash Is Thank forward? year and I more, rate then the guess, flow the of new that business guidance sustainability you. bit year? Tom, kind around the little outperformance for next can the this that of you cash going for

Thomas A. Mutryn

Sure. Yeah.

days payment turn DSO first, So, with strong that net income, FY at points Each of driven XX% year contributing, worth And by were the operating so million, various possibly year, $XX last quite offices guidance, XX so that's XXXX versus slowdown foremost, kind with flow. in could day robust When associated the $XX be is a held to invoices that there related million, concerned delayed end or material the EBITDA in of And more kind it and DSO to Act at out we be if the of or helped XX of period. deferral a revenue I this during significant terms of growth first COVID of CARES end collections payroll the tax and have around margin up. would a gave turns time days reduction we is DSO. this XX cash bit. last in remained

admirably, on getting performing those. aged government receivables, out paying and is Our the the team is focused invoices door,

that is the finished strong. We're be that. we the gets flow payroll and levels exit to helps stable tax, that assuming of XXXX quite stronger of cash relatively the value so continuation this that continue and remain with at is a that to to Hope comp, us somewhat some so, strong will the DSO XXXX. guidance comparable of FY will year level large depreciation And income, noncash FY of cash flow. net amortization, stock that, and FY starting items, a XXXX driving a

Joseph William DeNardi

does tax Tom, challenging? that make the cash in of XXXX relief can you grow more FY or off XXXX

Thomas A. Mutryn

Yeah.

should perspective. flow way kind financing, So, a tax operating from be the the of cash showing this up of a you source practical in from view $XXX a a relief, payroll it government know, loan million, approximately in as

and have So, to able FY in back close FY the to pay $XXX XXXX. XXXX in to defer government We'll we're million.

a that's trying be So, that be transparent to And highlighting why will headwind. this. we're

And so, it'll of and XXXX, (XX:XX) XXXX, framework XXXX. right for flow basis the set underlying and XXXX, cash

next So, for we'll be the talking about this few years.

Operator

ahead. question next our from go Caso Wells Fargo. with Edward come will And Please

Edward S. Caso

Congrats Hi. results. the on Good morning.

John S. Mengucci

Thank you.

Edward S. Caso

areas: your about international. offering products, a services, appears becoming Just that different to going control to ability and that is set into curious now one more

how opening in product do last be service Our international manage there's business Thailand. you, company? manage sales to do how says And, you and Australia. night into footprint? an searching one, office expanding There's I AVT what a two, mean appears a

John S. Mengucci

thanks. John. Ed, Yeah. It's

We quadrants into me we with try expertise to let right? So, both. and deliver and frame the deliver we this mission have technology that four in enterprise in, tech,

there the continuing technology and we seeing where It still expertise side, do business. large-scale mean area. lion's in into our out It majority mean to of XXXX But that's that programs. that share going not we saw the that growth. win growth tech doesn't and our doesn't of in we perform On the is we're XXXX be expertise don't go

technology how mission civil deliver we military across invest new tech. can how software need do So, the to do most focus on how do use we what company multiple really It's size, we fed intelligence it, needs. use mission specifically, agility a way about think our our we amass algorithms of in and a and a and that customers we do

To then day, to get But of portfolio technology. of about like how is the products. that the to We manage we foundational product. it's a we it. which end to So, it's do talk down everything at us,

CORIAN. day, talk talk can and about talk of can the about We can we end (XX:XX). Macedon, At our mission SkyTracker tech. we're and and the Beast about we LGS Crack So, managing

missions, that and the world-class ahead enough factors what it, government I can where property, at learning. artificial I bring something how specifically they multibillion They AVT, is machine that's EO/IR which now. great tech. get out now? there, to how bring I dollar intelligence all to So, for How I a multiple set multiple algorithms it need multiyear, deliver need do look development need digital close of of need, I program, intellectual form and then do right So, screaming we a without

It's major of good individual imagery or how mission down cut campfire? do at can that the that bad the that How fire? a How so the past? Is look Is can that a I take can I seen I've imagine in loop Australia. have out looked There's of asset? you side, office. a XX and there. a workers that things at there AVT do time? I Greg So, over We Australian with is true office I we is work Forces. an quickly on the in about assess the creating should an Having UK not in Defense underneath folks Bradford. engineering have deliver They no set an differently indigenous to top-notch the Australians be what

So, me across our in translates sometimes around technology the to portfolio, (XX:XX). the you've heard talk taking past highest mission countries that five products and

So, we've been talking that to we products can a development where lot and about the in UK. high, into We end other now as which Australia, take and out well, and do there. have offerings Zealand other leading a sufficient translates presence put algorithm software New that

that Ed, answer, So, long but love question.

we're earnings. where out of actually to of our mission there, that trying growing multiple again, we growth time with there all revenue And, to We're is. So, And manage technology. trying are products. synergies grow every build is a $X tech multiple not of we

Edward S. Caso

awards starting what and with My some key no in upcoming is of hearing other there but lack is and September election also is for slowness we're the government decision-making. to question hear we're the quarter fourth RFPs, that

you talk the September the context election? you're seeing in the you. upcoming particularly Thank what of So, in quarter, key can about

John S. Mengucci

Thanks, Ed. Yeah.

in COVID-related. an It's the quarter, so not of It's less seen least calendar coming in seen task office get what kind your on to acquisition that's we into the orders folks slowdown IDIQs. say number expect it's award that up down. to of single a September a materially more yet. from subsiding Where have end already for by the each we this slowing RFPs our taskings we picked It's COVID And election-related, that's have those we impact year. – the the I'll we (XX:XX). and frankly, of at So, comments, for time see slowdown, Ed, awards day, not

coming what supportive With President clearly sides they the Trump defense the of candidate Biden. home been and are threat Both globe. brief before up, of Both both the been across and defense, president's support national know security. recipients mean, the and have dynamics have daily election I both at

types seen, awards always continue of change So, with we've say and orders are those not from to in that that I because what a – of an and have slowing RFP we of pace we lumpy, pick awards awards. Again, a experienced work our pace task a to is COVID, although customer up. government of

Operator

next ahead. Please question will Matt with And go Akers come from our Barclays.

Matt Akers

morning, guys. for Thanks question. Good the Hey.

John S. Mengucci

Sure.

Matt Akers

there. I briefly basis your points wonder there latest touch some good on on there that XXXX, the – about pickup impact of you get I get they XX uptick like you've long-term where to. expecting could in It to just thoughts though are guess to margins, fiscal looks pretty could you can continue if that you kind XX from COVID talked in in past? even

John S. Mengucci

want Matt. Tom may to Thanks, around Great. add start I'll something and margins.

And exactly always the just our our going It's then, to XX%. addressable deliver you are used revenue faster is to XX% about we XX% come forward? than margins. up margins. going and to we same did all have at I second, market to ever-increasing thanks Matt, So, What thing. to growth path talk is – I at a plan asked guys on a to me path. rate you And have been so how We a XX%, ever-increasing on settled

find of risk believed far more less margin. there in moving there's far And that For because myself calls we Even and deliver. we to with these to with resilient talk prove having expertise where the we all north. are software, step can a a good and the those in But margins our way was What as areas. is see we driving of and We we property to into slightly Tom we investors gives to device. that business, that get all can continue us is on as about that in growth what and get margin, us type COVID, margins. contracts in top of confidence even that technology an longer-term driving intellectual we repeat grow talk always our those, have any if area, a area, with we're build and line we well arsenal in can

quickly, we side, how So, software grow getting leader. as development. towards continue bottom our And as is leader software at are I a what on solutions technology is in which I'll that, the add truly and long field growth. we faster, the to in a and agile fuels our are to quicker there with less do line develop defects, more moving customer. that much world of deliver to as we're the also that world request war but rarely And the say agile we world, we government buyer okay, in software in in development higher in solutions risk our bid on day risk results RF, margins where more seller. EW, allows our a any the to the higher need agile to the us an fashion lower to allows planet, the the slightly end fighters ability market on margins and SIGINT do proven work and And higher because lowering Tom? us traditionally to

Thomas A. Mutryn

Yes.

So, This kind four of ago, XXXX, of year, EBITDA our we're kind including COVID guiding margins X.X%. impact. were years that to XX.X%,

Excluding of XX.X%. you it be of, kind north would know,

that. you to a pretty shift of XXX basis point margin in So significant relatively, in time kind turn quickly of to period, the know, do minds kind four-year over a our battleship

technology than enterprise technology both in more You trend in we some as efficiencies are our at positions to to in we're a know our And John structure. mission higher fundamentally, sure growing higher drive quickly that and a technology to and margins margin filling you faster business we making coming expect acquisitions know, things continue. you cost our at business. that significantly enterprise a our if business. to business that increase rate, through are a both driving that but know, of growth on foreseeable higher and is tactical indicated, level, continue margins important us, our businesses technology, us kind organically, allow Both And is technology technology business. growth, and expertise will And than underlying we future. disproportional But the

dynamic the at So, kind that play. is underlying of

Matt Akers

CR, give think year? some one these through on That's TCS guess, then, Got sort any other of BEAGLE, if start start feel it. that color should up? guys. of the pacing helpful. to new go you the through we one a do and risk Thanks. at or, do And program just know, year those could again? anything kind as manage of kind really about your a guess from we how And I that Thanks, you how like then, there you be new under fiscal a of the ramp about CR ability Can potentially is wins standpoint programs how I on we

John S. Mengucci

Yeah. thanks. Matt,

about around So, BEAGLE. the was I first it and program, asked then you TCS, think,

billion additional $X.X and recompete So, half half is and TCS, new a about was work work, taskings. award,

you. thank Thank Tom. XX-year – program. it's an overall So, you, Yeah, I was program. XX-year

they are, per of know, kind do of It the So, on additional if you split half other see million to incumbent nine National course, need were I you to be the the requirements to year. taskings rethinking expect to the award. build-outs recompete billion those to the expect then grow. up, COVID I of customers network the would use those in and intelligence and months, $XX pace, how know, side network. $X.X what that coming. to Again, it's see at post-COVID, have. six will during capabilities same on just upon and The let's work continues I Agency's the us next Geospatial

team So, so a BEAGLE, Happy judiciously off program I staffed. really We're very to all rate job. year, worked customer, a would has really, of this so year, would XXX% about get for the That award, there, expect good ramp-up to great I start. to and gradually for we – there. that year-out that's relationship very, work again that say staffing the five-year good end the just a new ramped. would And each and their by of every see Matt, run BEAGLE BEAGLE the hit portion. already

CACI's operating business. last years. under from think they I mean, day, part impacted the around we in our business to don't many CRs the CR. CR. term any we've seen end a many, was many I short I over the mean, at impact the And haven't materially of the see

out going government well. be to spend perfectly to usually of still areas money a focus CR strategy Our and on to where those needs US come is

to and going Thanks, a capital don't. continue or to don't I Matt. we growth start under whether really whether we're material CR impact we deploy So, support see to there,

Operator

Parsons Goldman question from next will come our with Please go Gavin Sachs. ahead. And

Gavin Parsons

Good morning. Hey.

John S. Mengucci

Morning, Gavin.

Gavin Parsons

is which ton drivers in get of about was headwind work, ramp-up a quarter COVID just about implied of of just new growth the how ask of it there, X%, the the some impact the half about, wanted fiscal won in kind the was was third goes away headwind you've of as same fourth the given: the your first organic on. half you just quarter, of organic talked I second fourth to fiscal you X.X% guidance that XX%; quarter and XXXX; and in the in XXXX

kind can So from to hoping drives slowdown. the X% and Thanks. you help just was reported you the the of what just X.X% implied bridge

Thomas A. Mutryn

question. Great Yeah. thanks. Gavin,

So, a first and improvable happy I'm look, really off very growth saying difficult start (XX:XX) year. strong flow to margin me in see let healthy expansion by cash

with to tend a picture view. where we're at I So, headed look full

on a So, explaining first the as we all we and impacts experienced, our better could guidance we June the delayed so our very learned. guide that most both like that first guiding to I'm provide today materially off, we guide. quarter because all did could have come And changes you seeing after accurate get to just in to handle impacts our we're what in happy we've moved there's nothing to COVID improvements back around.

played So, I and out wanted first. see made how to that I that wait decision COVID said

what year ways. versus couple out different answer we a X.X% last came So, your let as in me of of

(XX:XX). hours lower XXXX reduction that's OD with and impact, First for subcontractors. COVID And internally, saw what we was, our direct We've Those again of the are for a we reserve initial in where impact seat revenue our folks had larger and discretionary cost, all, travel we purchases net hit. impacts. a (XX:XX), utilized revenue net income that call income smaller

to of a XXXX. hours when that material hours, Tom you gotten our today, all And being by good about quarter down it's covered to we've call, that Now, in he spoke these billable our were note XX% third That's difference. that explained reserve to X%.

that of other very impacts very, you we've we to without we're May, seen on me knowledge the if and the said a June some So, path. good have that COVID were since would July, ask of

But to so direct not staff we full slower returning to customers call continues seen have at impacts: improve. get offices clearance every June, are us have be so international some new that get temporary them we IDIQs every those to some in and to of their be people the all adjudication, week, that pace, open other and each wins wanted every on of and training delays which moved to component is on indirect (XX:XX-XX:XX) to program that that not deployment have program, the have; intelligence tasking able cleared to international delays classes, a had; milled able started we've the in community of clearance we get July get up. training can't our set they on at in-country final get impacts, to we've clearances deferrals timeframe to has impacts in can't an So, work we

COVID is although So, transitory. very

they award At and now, and generate of going day, delayed end the travel. revenue. when the a can't revenue can't the indirect I are people a real can't clearances have are factors to those cleared I organic For on impact get on new

rebound, end thus those I'm are been calendar slower over before But, there. of the has the Gavin, progress year. confident to far, going Now,

very very pretty provide don't factor on impacting leave there's So, flow, on a about every that's lot pleased COVID the over we expertise, we can look remain business data, government wanted our like growth X%. be but connects want of can't evolving growth. doing what to this to although is us looks with is, both shutdown immune control very, at revenue more organic mix we're portfolio, can talking of COVID exactly like much awards, We COVID. We're period from growing revenue Business like and how going three everything and related more margin goals. there. our about of these less expansion, years. focused It's outlook. what to the well. can't to that. that, profile XXXX qualitative cash changing our more margin sort as last been various which expansion. with consistent X.X% this I'll additional We've five – to to extended in to been to, our we number I a at it And something elements There's I we we some way, talking without means an We're tech, have risk immune Tom

work to we resilient Our strategy and is COVID. throughout continue

to work with Tom, do So, additional that, bridging? want you of sort some on

Thomas A. Mutryn

Yeah.

of to to add that – million of in where impact provided COVID John higher lost on is degree Act said fee the impact There for COVID aspects is, some range broad would revenue. of range degree XXXX, (XX:XX-XX:XX) mentioned. of hours have and million uncertainty see don't is I what some what a we a what $XXX relatively I of we a a of certainty CARES higher of FY Gavin, $XXX So,

bookends judgment. now of of of and both our and kind forecast. know this range – revenue we As we forecast with income, impacts of a of revenue with on be have outcome and of a in those And the part see results risks of process, opportunity based set of our we're risk base distribution provide with of what kind of for income. kind COVID then, we represented have And we you of likely – trying as on net today to what based those range will the net

continues John as details to on said, the some that know, You evolve and situation provides COVID.

of overall trailing In a growth, over of amount is the a book-to-bill times, kind as on terms performing of two XX-month on organic basis quite effect large wins well.

million year. a tasks. work. that year, work amount every complete We in we around $XXX We That's complete this As have away. of certain goes

on-contract years. hole and a But goal that this leave growth, about that will to in is again, to extent growth. to at again, our we those. guidance. range a there's business exceed is We different there's other we wins new of win it and wins, fill can, not kind that expect to of fill So I'll year within The range the The than that. and, perhaps, midpoint so organic And the X.X% talk we a that provide

Gavin Parsons

that or COVID Okay. to on in a about, Great. million quick impact the just is that? is $XXX top the talked $XXX of million helpful. And That's that you clarification, encompassed indirect

Thomas A. Mutryn

encompassing. all It's Correct.

John S. Mengucci

Right.

Gavin Parsons

environment deficit that contributed organic last obviously, But really have the budget or bit especially or predict today. hoping to could and about your Great. sustain maybe was the how especially to no could of in points – you the basis talk John, today the your decline time is. XXX out-growth the a growth matter and you declined you trajectory XXX budget budget, how I difficult Okay. that the then, given And changed fiscal it's positioning target, factors maybe exposures little what that saw of the to longer-term

John S. Mengucci

Yeah, Gavin.

a in different your company, So, versus are guess sit I different. the of first, XXXX mean, a where I a looks right, things we answer we're question, company. the from part last to of a how as today, lot timeframe, this very

about shutdown, impacts, a our revenue government get where cannot with to to this where EW to been We own and technology property is have our XX% and were added had has XXXX fact, expertise be the In consistently office go forward. we've we for having years business. decades. XX% a a technology all dimension today. to in they timeframe model government have side need, our What their SIGINT perform expanded employees a the that and to technology every where proportion We're you've doing the and CACI the work. talking we on we're we, intellectual discussion able enterprise and RF mission larger seen around into recent of focus in not and

differently If national as that timeframe underinvested even defense on believe a Act, Budget was that positioned see that acceptable. material of nearly not went in superior XXXX sides nation, conflict in our that government major look The difference today completely. and been And and is realize many I about acceptable or the of a we're talk have how lawmakers away XXXX. an mistake. might I I So, great we both power it's back gap I Control we at the and the we material It's think solution. security. in context shrank a the aisle that believe had And than not

of million we (XX:XX) with our other customers response security space. have think face trying in address another that material that the see bills done do awards difficult see because also So, what the a Act we million to lot out it's great technology in some right but $XX are to to kind That now I security, today there the there that that know time It direct some they're additional they where Act, to have, I company $XXX solutions believe into national and enough I was needs. turned dollars past. me CARES to environment that to hasn't we're we'll that gives revenue and and have XXXX, even we've in invest further I funds a that's to are investment very being in same the talked the all this of the spent defense good in in new issue. about that where pursuing. improve was Today believe are we continued pay, to at the we're And going yet, were funds national is of CARES for XXXX, continue modernize. but what confidence put areas have customers around looking

of we very out company, a XXXX. in Gavin. what environment coming budget line different growth. Thanks, bottom and had frankly, top we're little COVID And, a than So, different both driving

Operator

Cai from our come question with Cowen. next von Rumohr will And Please ahead. go

Cai von Rumohr

very follow-up A COVID. Super. Thank quick much. the you on

indirect of half than Section fourth by comes in greater talked be XXXX year-end. will know, if impact rate. yet, down, quarter the you'll COVID basically, that is assumption is COVID you Your the the you've see And improvement first

secondly, So, companies the QX COVID. most about to all impact big? of is as other in the biggest because why third it talk Thank quarter, to you. talked is we've of lumped And so number that the

John S. Mengucci

Yeah.

out, So, I'll start Cai.

of for impact. we where mentioned, kind As There's second things which certainty. throughout there's a COVID of I risk the indirect we of spoke $XX those we we're very in that enumerate. are, kind our our probably In million, closely enterprise, XXXX, what trying know we're not outcomes. And some provided information of the which degree articulate we FY did effects the million work a high indirect were that associated those order XXXX of we've with And there's ones forecast those and provide certain to the to of with process understanding kind impacts assess other direct or range impacts and about. numbers the FY $XX trying

the results have through And that if went so, higher we been even would adjustment process.

you outcomes circumstances broader given on set so, the a desire a we've to, kind a unique of given situation. know, of of in help of the we're ever-evolving provide kind a of range range And kind provided based relatively to that outcomes, of

Cai von Rumohr

quick a Thank cash you. flow. And follow-up on the then,

mentioned basically, this and given million to million My is But fiscal years. be is some and you you the in deferral, in year I net first benefit XXXX, the – that XXXX that calendar this then deferral quarter the may back the next payroll two and defer $XX of year. spans second think is million pay tax incorrect $XXX back of that year and tax your both you understanding $XXX and that, fourth pay year or the you – then this have payroll of gross half? the it

Thomas A. Mutryn

Yes.

So, no, sorry. I'm

misstated I may could it. have missed have this. You

payroll year million. was the fiscal For $XX deferral tax XXXX,

December X to For from really XXXX, tax July time XX, is fiscal year the the benefit payroll period million. $XX is which

million So, future close pay in and XXXX it's to total, that periods, we need XXXX. over FY in $XXX back the to FY time period, will

Cai von Rumohr

half second XXXX? fiscal in back of To the pay it

Thomas A. Mutryn

of fiscal XXXX. Fiscal December XXXX, in and XXXX, XXXX first half XXXX. the December

Cai von Rumohr

Got it.

Operator

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

Jonathan Raviv

you. Thank

XXXX. just On so COVID not if of for the following would growth, growth in better organic was the be talking up Gavin on organic what sort about, FY

So, weave looks around growth the what and address needs it's a in just shifting or the expect customer is to specific some of around those really world accelerating thoughts acceleration XXXX of even pandemic, are and kind what in into challenges? there to maybe doing reasonable and then longer-term how like, light post-coronavirus CACI

John S. Mengucci

XXXX to will to the – try second first, that to I month but appreciate question. it make going I I'm thanks. Jon, of fiscal do

Jonathan Raviv

you. Thank (XX:XX).

John S. Mengucci

this lot well watch we've growth, and Look, cycles so We've line of drive drive as on this been lot is of different top areas a I think see bottom that been since investors budget two different budgets and how as we a to cash. it. through

to us guided of the same we COVID, guide deliver. level For that that awards last the have are says year to we to beginning to in spite

up. that mistake, no sort behind of Now, we awards. are we do those have slowing growth some But have that make impacts revenue indirect ramp

Over both TCS and years, the We earlier. are have how BEAGLE points. those two different. different about last talked ramp ramp-up all Those up

result product the tech programs of space have delivery. Some in mission a that the in we

percent, a this to of we'll protest our differentiated strong. on get So, margin at year. get the We've for here. the within days billion another material business, request. very ability one continue got own, have a that's few worth into there organic very, growth to It's probably see worth has slipped We What's open ramp? out things just fiscal that than its a does $X And since We'll out a award it business. delivering impact of the and XX products our rest product. come we're there such

gaps. ahead moving fiscal of a our at there's we lot have at. capabilities consistently X% overall how It's at at the partnerships. of use that or we do month and acquisitions. and very filling done, We're one judicious X.X% We're to confident gaps. the or of fill that not investing we very that over CACI in Things going So, done we're we investments into It's right look experienced acquirer parts. we ethos We're and the midpoint year. things of relationships need. being We've It's to and something a we're go the customer where organic do. those look something that to acquisitions XX need do

our to these go when bringing up of as rates out programs we the margins of that that in. technology And we're operations So, parts with is our We're of very in confident and growth actually confident confident portend the we we kind we roll greater where government forward. further the work. continue outside we're COVID, We're team folks continue very get in ramp of federal strategy. M&A to the some doing very will larger as

Jonathan Raviv

back how XXXX talk mean, in year growing the then, Thanks but, each recently update I in guidance, just interest call, and on us Could this what are And stand I matter at to from ago sales that quadrant moment, a guys is then, marked coming the point? almost enterprise future mission where deals? the John. in with there almost for also quadrant, course, is at thinking a activity that question very point, lot you see mean, by on September, asking growth in in there. this about this might you non-FY like NGEN about side Gizmo larger more being you I'm involved quadrants, if the deals, did which we've technology. going CACI for seen And of guys things maybe of noticeably didn't just technology of is not context and or big a (XX:XX:XX),

John S. Mengucci

a Jon, two it's look We unit related that and to sort buying can well. our large-scale out Yeah. a last have where our mission development time. paper, there. have two is balance side and which map. not Agile X software I of only that be dollars programs cutting-edge customers I'll to to putting BEAGLE and of do would spirals to talk Gizmo it. [XX:XX:XX) need to out We the Agile (XX:XX:XX) XXX kind and a week like development in we of fashion, those agile side. as are mean, in got work we've my of We're at something sell back directly don't We development don't on distributed millions on have enterprise of in relatable software software Tom very the take customers, I I'm of an NGEN completing development rather software customers how you not looking specs. X manner, new actually by I'll doing of papered much large to a through can largest those IT programs. and quadrant sheet enterprise and assets long-term look first hundreds part has

portfolio So also as I'm IT area, it's automated the the enterprise well. in in very have because confident we more

one. technology And change, those going towards development know, XX,XXX here. people phenomenal to you in But be build production as take takes line generated. that software right? have out today, more We to Agile there, more other It like it a any folks a doesn't yo-yo XX are then methods will go machine

work manner. So, a at can things risk with same to in (XX:XX:XX) do and development, home like software exposure less work that COVID, we

enterprise the about excited the do skills which back Tom, mission have, quadrant? on very tech much So what we the side. very on we complement

Thomas A. Mutryn

the about few a mention just I'll facts quadrant. Yeah.

single area just the grow in the the been In expertise about. we're XXXX, to talking of That digits. the expecting FY double technology, the combined that in For digits. we've low kind is growth

growth expertise at which a disproportionate points basis materially with – between lot coming technology and Makes in margins the is XXX So markets. XXX and technology, higher the is of sense. anywhere than

is Some kind higher it some work of of more commodity-like kind is all of but margin of lower expertise, differentiated and it, the the level not of margins. we and can technology command

which And so, margins call. that in strategic mentioned expansion, technology higher focus on at the margin drive is I helping to earlier that

Operator

with Greg Konrad Please Jefferies. will come And next ahead. question our go from

Greg Konrad

morning. Good

John S. Mengucci

Greg. morning, Good

Greg Konrad

(XX:XX:XX) awarded development set open system historically in what and in a were you little question. control and bit around command software mean, integration, I defense-prime the this quarter. been has seeing broad opportunities broader based? algorithm which and contract a are platform for mean, Just you the design maybe more I

John S. Mengucci

Yeah. Thanks, Greg.

So, machine predictive respectable do analytics we've multi-domain at a we picking what and doing yeah, and continuously learning has awareness In going long the Where seat which control satellite and sensors will do on of we AVT, even material of use control ground and (XX:XX:XX) lot ABMS called and multi-domain we're both and it been the AI amount ops, (XX:XX:XX), have AVT front do to that But AI, interaction at the machine beyond taking up command the and command how that see people area. Corps, with give learning. single world would a control next user programs and been fight which we look has table. Force we Marine AI work, newest fighter a I done command a area those of the if our quest deliver other and growing. of for be solution multiple how we to CX well, inventory action. single you the blend build system the what other become and of multiple different sources and the that be as Counter-UAS States do United applications at behalf Air building war how a mean, on that you information in technology GUI, mobile non-fixed in allows people all and courses of on before

can control being on do where beyond that we're the doing an agile what and manner, There's our satellite say, the JADCX customers be combine doing So benefit in more I we would there's to to and what believe can test on take part be Counter-UAS framework we – ABMS, ground technology not. we'll we and programs, whether command do a flight and or allow like the disparate then command many able sort we end (XX:XX:XX). many, our provide from of of those control and systems (XX:XX:XX) that, and

Greg Konrad

million revenues And just roll-offs. HX, you at XXXX expect from year some year When pressure mean, think be about talked program in to of revenues, we recaptured the fiscal those the I fiscal but all XXXX? ask won't revenue $XXX in I question. one midpoint, about about then, COVID we so clarification

Thomas A. Mutryn

sort the seeing trajectory we're sure we would we be. normally kind phenomenon. I the normal to level. is five use – dip over next get but CACI COVID, a COVID a not term would of recaptured, that a Envision but steady-state I'm the temporary of trend if of wouldn't run is to line in what years, What due

long-term are I'm in I point generally line to one-time not sure get how to impacts are trajectory COVID define not time, But (XX:XX:XX) temporary, the months can Now, back nature, that trend many some in at going systemic. this. we're and how with associated

John S. Mengucci

Yeah, Greg.

up June think in If can use were If can that getting If right? get over to August of there COVID. overseas I there July, and ramp-up. weren't when able them sort over folks do catch in I've I've about on it's So sort I overseas get contracted to revenue want got in we but (XX:XX:XX) get I get of cleared, also the eight we and two people XX hours I overtime to September, back, in can June. that deliverables and to

So, and isn't. made-up, some of it recoverable some it then of

Operator

next question from Please come our Sommer Truist. And with will Tobey go ahead.

Tobey Sommer

about diligence due but engagement, COVID? of and started diligence with you comment the how could a push curious that Could when amid finish on amid maybe kind Thanks. extensive (XX:XX:XX) acquisition line I this don't know of deal the an remote across you due you larger process went environment. the

John S. Mengucci

Yeah, Tobey. Thanks.

about but have So, I short acquisitions. jokingly executing a were said started from right, we we talked right, might phones I news that take But still yeah, I good work. going "hiatus", well, to COVID think think it, is when

to where but of COVID working then AVT going out the during they take it we COVID that really trying last right? fall right? be what already So, for a really company on identified what focus COVID off So, did better And different, implications them the due allow and with we informed be back some could we a means in some pre-COVID, operational time and understood. had Because so to late diligence, to timeframe. can were challenges time summer experience to of little is to guesstimate of us is something year and better

knock take we other had pick wood, diligence leaders. travel where to to and conduct well absolutely at senior the needed. AVT were We the We what so, remotely. out limited off. worked pre-COVID, on leadership was left there And with on to brief a of well. quickly did able senior we his up transaction as to management team So, went due Tim our that meet Took couple trips we

XXth the competency XXnd do very make XXst, really that know how worked speaks across still area So, We've very, our functional the frankly, certain streamlined about we and and to earlier. a data and things And, mentioned very well. experience every through across room like. well, work very, to talking streamlined. to Tobey, I acquisition, when we we're Data, that technical it process that to got able well, were every

Strategy we if mean, acquisition? So, look where first, right? understanding Certainly, a a come forward, we are it's can about larger from. we gaps is do place our I where

area, there's let's expertise So, fill company we in the say, a out the yeah. that gaps, side, if and tech enterprise there could those, both have in

more absolutely on We to gaps It's complicated of move little looking we're that will based the forward. a kind fill.

the more growth what laid things us. for timeframe. we're So, And any we out it's would or looking we income this the about in gap. acquisition like looks they AVT, do EO/IR see the more to are we AVT how like be fulsomely what coming other about market the more great rates And to beyond net during fill do values. like ISR they – from that actual COVID? going to we revenue fill, It's also, And growing not and

Tobey Sommer

Thanks.

business, of evolving the growth the organic fiscal your do what rate And of does growth of guidance for portfolio peg be? the organic how markets this to year Given you revenue X.X% up? the stack

John S. Mengucci

Yeah.

revenue we're of revenue X% I like of year on pandemic, I organic So, our up our like we're generational growth, in X.X% sitting COVID and sitting. where stack sitting growth. like the where on one a we're

lower Tom a As mentioned, have we range.

have Should we us it we're We and upper this to company different, model sort should win of clear opportunity an that expecting, allows range, forward. takes that move makes out and risk some COVID awards sooner. more of that

sit slightly COVID also. would we from to X.X% is be have where to think not I I'd experiencing but been, like where we below like today

my So, to to the of work extent continue today. I've got workforce that we through can this, teleworking XX%

XXXX the cost put us confident the then on side. making and guide FY there XXXX XXXX, with that certain covering we focus into out My very is FY have we out there. We through that the get absolute

I expect So, to not drive to years net would be And great a no organic like. of continue fully revenue earnings, excuses and X.X% no but awards. growth, cash world the and driving shame in income, us two only growth with

Operator

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

Seth M. Seifman

morning. Good much. very Thanks

John S. Mengucci

Good morning, Seth.

Seth M. Seifman

morning. Good

at you'd we NGEN fair think So, the different probably return – growing I IT. it's market some just be I'm makes of the earlier – goal structure, given wanted quadrants year. of (XX:XX:XX), like to of structure follow wouldn't about sense that your me it even in grow expansion I big to to it. given talking competitive is And correct and wonder structure up that the made about the I pursuing one commentary it on this I won space, assume wrong, but just that and be now, enterprise their if margin pace think margin to awards that if right the you mean, had you

to general, of where And those looking so, go. whether consistent in with anymore – kind are whether big contracts really those you're not

John S. Mengucci

Thanks, Seth. Thanks. Yes.

over quadrants work And then would contracts. You business there enterprise time, type would are you of some has. four that builds ways this contracts, are to know, There's lower a managed I portfolio lot of company service. a of see and of as hope, different start There customers – We more will it's the with a different where for that margins multitude and our grow. those buy.

some us allow revenue. And grow to

be rates and and allow able our us growth bid and to (XX:XX:XX). funding Some labor to to proposal use of our direct IR&D higher sustain levels

company to deliver greater that allow a, of parts in So, as know at folks that sum who business quadrants, doing as go are us of these look each the you something – grow I it is four to than individual all this other areas. sort is

win, a this probability folks decision, a we have favors we are of structured and a to the are have make to preference the which we going establish you shaped the someone are we out use approach, that is, with going tested the consistently who for development customer we solutions So, in know, to business program point with what deliver and did to going versus else. us

look the comes long So our judicious RFP out. starts before

we've bid out continue to program got are we're if and larger to on strategic technological going and solution, margin on a programs. fair going right And to bid that the programs are be then managed those game continue there's about fit services for We're revenue happens there we're to right So long-term growth Again, the the all is programs. it growth, balancing we growth. with us.

to how growth business, We're long-term side. how we're mission hurt is each we margin on that's help going whether all, one ship. the or and versus to it's looking not at So, and quarter enterprise revenue on which the managing after the really go running really

Seth M. Seifman

was about fiscal helpful. Thanks. in on thinking could head pandemic going if touch count how just and front, on I you And net Great. the that's was hiring growth then, That maybe going the been XXXX. with

John S. Mengucci

Yeah. Thanks.

more levels. so So, part there is and less yeah, that expertise I or are on tech, our elements hiring some part dependent are mean, portfolio

the Our in grow as out expect we how finished little expected, hiring a definitely we come and dulled, to and to much bit more throughout again, into expect, folks it's of FY cleared right you support into onboarding acquisition, XXXX. them facility so the and as XXXX just right not It's line issue but today about people And much has getting pretty would how talent getting or country.

through things. continue So, we work to

of one and customers are back. more saw folks Chantilly skip our built two Intel that We temporary the in space only facility allow that companies actually of ahead bring need us helped to

hiring our on count you. the so it's for. on off area. of ways growth hours. more more So, day, not much the important folks of head to on more the we we're Thank hit and at continue Again, missions. for at going But to looking area, get technology to reserve So, work us the end we're look much and has expertise (XX:XX:XX-XX:XX:XX) what more our

Operator

from Blair. DiPalma William question And go Please ahead. Louie our come with next will

Louie DiPalma

John, for squeezing Tom, me Thanks and Dan, good in. morning.

John S. Mengucci

Good morning, Louie.

bet. You

Louie DiPalma

led many And Of have seen are bids, skew And pipeline-submitted million-plus available opportunities and there demand these Aramco, last there Was for attacks drone Saudi robust more signals (XX:XX:XX) like, of is that the to a significantly like $X like pipeline billion watershed following September? expand that Design types moment the XX here? in Mastodon your intelligence? System seen? AVT $XXX Services we've ISR a you towards that

John S. Mengucci

to a on $X our of lumpy. between amount the continue what around billion, in by first part and the the nice we Yeah. technology so I'll off of see awards area. area Louie, what mix see, the we which are saying larger to a submitted outstanding in new start bids be question But and is recompete, versus expertise like to

side. side, reaction, So, to that action kind expertise future? that continue how the more I sure, the versus have every on and On the does incident. mean, growth growth of we'll to the It Counter-UAS a drive technology gets not that side Counter-UAS just says right, in

across forward who at of would folks dangerous the just are wrong each Counter-UAS from a that We those they're government. worth there get UAS overseas day, in to and every the south actors out expertise reports and side really from role couple the more stationed weekly are are on our have globe. starting wire today operating number us bad – entire of do what places We work federal of a mission We and a million and there. hundred the SITREP of play bases that's major of around say, are doing what more most area dollars'

from our in we all weight team expect continue from Tim improvements to We there to folks to would out our more size, and and work business bring when margins. other we (XX:XX:XX). at we we respectable that integrate when power and of when get EO/IR working, And the additional technologies do Mastodon , see Counter-UAS his of grow are capabilities continue technological out

providers, of and can are do RFPs you And DOD that DOD the technologists, the submit. other make mix and them to next how also, seeing has really fixed mobile week combine Combining we're AVT front. of what greater. what to hungry site now three the equal, we into I like down on one three has selected, in three if we're So, one bids Counter-UAS with folks, going we I'm one selected a of nice sit not get plus with coming where one understand know, providers,

Louie DiPalma

John. Sounds good. Thanks,

John S. Mengucci

Louie. Thanks,

Operator

with from of Bank come will America. question Mariana next Please our go Pérez Mora And ahead.

Mariana Pérez Mora

Good morning, everyone.

John S. Mengucci

morning. Good

Thomas A. Mutryn

morning. Good

Mariana Pérez Mora

us is risk about, the question for what So, is FY you XXXX? reminding do mind my recompete

Thomas A. Mutryn

The for for of around is similar XXXX in coming percentage there prior up Recompete XX kind the is kind FY kind of of very risk somewhere range, recompete terms to amount Yeah. of years. work of XX, awards.

new for composition X% on, for under revenue, existing and XX% programs, is that terms XX% XXXX, earlier of of business. of I Now, revenue recompete said in FY

So, there are win. some to we'll of need kind kind recompetes of that

running in last been XX% the years. has for rate the win recompete Our several range

well, continue relatively We kind portfolio. of expect those kind of stable it at levels as to a

Mariana Pérez Mora

Section to you. the is Thank XXXX. one The related next

large You have delayed in will (XX:XX:XX) that see extended be through guidance How that an if your extension? would be we assumption don't that December.

John S. Mengucci

Yeah.

if extended. we December, question to get So, see XXXX don't we around

how not to So, how employees if we of X% then that that X, about we hasn't hours, handle of extended, hours covered get we the on that October Reserve XXXX have we through XXXX. see we'll by (XX:XX:XX). is – frankly, ours our mentioned Tom find covered billable those that work and are be been to going Act are to today, Again,

we're looking working why industry it's XXXX very, the to very across have hard So, extended.

worth of $XXX talked to impacts. So, as we number, million a million about $XXX COVID

range the status. X% at are industry to XXXX funding. again, see use our that cover use feeling base looking FY It's need additional the in, look already to confident is to (XX:XX:XX) (XX:XX:XX) million very It's those is not revenue ability $XX will GFYXX this for that But be the in just You used the to we of Across CCI per million appropriated to costs be under the the being we Reserve for We're probably purpose. appropriations extended. ability to funds industry quarter. we all across extended. what $XX

So, believe I we FY the across have risk all-in-all, XXXX, bounded.

Operator

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

John S. Mengucci

listened Cole, in like or who their Thanks, have and dialed thank questions. webcast you healthy We Price Tom today's We'd families. for Stay are for know and Mutryn, help call. follow-up everyone of all you good George your and call. you that to on all thank to a and day. will call. the many all your my have Dan concludes you today's after best This available very Leckburg Thank to and participation. our

Operator

today's you disconnect Participants The lines at time. their Thank conference for now may now attending presentation. this concluded. is

Daniel Leckburg	CACI International, Inc.
John S. Mengucci	CACI International, Inc.
Thomas A. Mutryn	CACI International, Inc.
Robert Spingarn	Credit Suisse Securities (NYSE:USA) LLC
Joseph William DeNardi	Stifel, Nicolaus & Co., Inc.
Edward S. Caso	Wells Fargo Securities LLC
Matt Akers	Barclays Capital, Inc.
Gavin Parsons	Goldman Sachs & Co. LLC
Cai von Rumohr	Cowen & Co. LLC
Jonathan Raviv	Citigroup Global Markets, Inc.
Greg Konrad	Jefferies LLC
Tobey Sommer	Truist Financial Corporation
Seth M. Seifman	JPMorgan Securities LLC
Louie DiPalma	William Blair & Co. LLC
Mariana Pérez Mora	Bank of America Merrill Lynch

CACI International (CACI) 13 Aug 202020 Q4 Earnings call transcript