CACI - Earnings call transcript Q2 2022

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to the CACI International Fiscal 2022 Second Quarter Results. 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. time, to like President Dan Relations CACI this conference turn of At for over call Leckburg, International. Instructions] I to would the Investor [Operator Senior Vice ahead. go Please,

Dan Leckburg

Leckburg, good everyone. Relations and CACI. for morning. you us Thank President Andrea, Thanks, for I'm Dan of Senior morning, Investor this joining Vice

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

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

morning, three open please. turn John Let's slide to the our I'll discussion call President Chief To International. Executive CACI John? this and turn Mengucci, to over Officer of

John Mengucci

Thank joining Slide me to us Officer. everyone. for discuss quarter you Chief good is morning this With morning, Tom XXXX please. second Thanks, results. Dan, Mutryn, and four Financial our our

second margins basis. representing X.X which dynamics during contract speak continues ways. was XX.X%. Slide of a about on growth We dynamics a some slightly won for be financial billion categorize to a XX-month though of EBITDA strong and healthy, quarter were growth flow some of trailing with shortly. our results times I'll That and we did the headwinds below progressed said, Technology awards, in expectations. near-term robust solid and quarter we we as and adjusted the of Organic profitability $X reflecting represent few quarter, performance, see quarter times second generated the I five saw a develop to please. X% Our was X%, book-to-bill cash X.X candidly develop these

last reducing we customers to of cases customer increase engagement the some ramp-up inside First, in the meetings began slowed Many the in-person an is This in and their people unprecedented of months by in few see number cases. stopping responded facilities. COVID allowed work. and new limited

we're recognize also and about this close interaction. of deliver ramp not remains been to already which and it is in by In all revenue. demonstrated by quarter this capacity bandwidth, required the is customer Again activity exacerbated RFPs rely The particular, on technology and COVID To access. our some challenge. tasking a a awards. seeing customer contracting of of increase strong another cases. has the materially challenge, and Second, has underlying access awards in a pace associated contract clear, was issue. and our This not impacted demand slower sales Rather be supply a customer chain it's that

While for demand Tom we our drive a we as The to important and value, and growing dynamics issue. recent expanding margin not we are and we business, Factoring view organically, all value continue which components margins, do global dynamics opportunity to delivering shortly. market, from will on EBITDA capital year modestly of not that provide deploying Slide growth have to simple ordered is, for critical please. term. this winning per Again, our heightened reducing change They note organic fiscal healthy for arising It's a of today. could, with share are environment. more ahead is needs of for expectations and into our cash or the six is still addressable we details short customers' the XXXX shareholder availability outlook these of second tough. additional need robust long-term these key half, where challenges growing plenty flow threat the we free reality

healthy to strong spots spectrum our addition was continued another quarter overall awards, QX and In contract cyber, $XXX demonstrates leadership awards in electromagnetic technologies. million. and nearly software-defined with sweet classified This of

relationships work awards high-value of include how our providing work we quarter great from million leveraging Next renewal, positions and to several sole-source existing classified As work. Century win share. and capabilities expansions take market M&A of example, business an new and multi-hundred won dollar wins intelligence strategic this Other another new example LGS an customer of the and customer new CACI a

see We has necessity. The this to secure migration. capabilities continue digital demand for modernization. signals cybersecurity also and and applications a accelerated broad expanded requirements access, good requirements network are additional with work cloud including remote need, pandemic And for

achievable are is also yields only that modernization but customers benefits. to We not demonstrating significant

include for addition, a In new new expanded work and CISA. technology. and million government and of the that understand of Army, Recent are leaders $XXX modern award expect our including examples benefits modernize to generation the seeing we for network DHS infrastructure

deploy strength, to and slide for value With flow turn X, to we our Let’s optionality long-term continue to strong flexibility and please. to capital financial shareholders. drive cash our overall have

per is focus flow discussed, cash growth have we on free our share. driving or As

In million generate and organic strategic longer our addition growth and to and the through repurchases year this margin M&A. over through ASR like last investments term $XXX organic our we share expansion,

prospects CACI's of the near On front, quarter, companies two and long-term long-term. during which we additional in technology enhance technology M&A the acquired both demands growth address and second the

multi-domain leader comps. Photonics, for laser development Photonics technologies communications in optical a or First, SA free-space and we deployment the acquired of

airborne adoption requirement LEO of as increasing of awards the producing from Advanced significant as Orbit constellations As driven for we Photonics We have previously classified already secured customers. our Earth add combination including and real of well is They more Photonics SA ways. complements the and that contractors platforms. Low They see or faster the they long-term for communications an multiple growth business existing adding area and and Technology our CACI's maritime customer for Photonics discussed, SA is Photonics capabilities. contract The communications manufacturing our and compelling footprint. results, in existing NASA, laser private creates internal business and as by several and Photonics expand ID intelligence and several software-enabled demand reseller Photonics potential by investment of provider capacity of second, the commercial capabilities growing night to additional satellite expand a US-based coupled offering years expansion value-added the community IDT look classified last to out-of-the-box developed with access to secure and access this network invested and ago customers. and internally CACI provide To software-enabled SA a the devices need modernization IDT that acquisition recognized leading securely of DoD employees networks. technology. or Photonics we announced And Technologies long-term started To you forward allows remote ID IDT. achieve a and growth end-user contracts CACI together. and again successes recent Technology, they for fulfill welcome opportunities. margin devices we'll I capabilities

long-term Tom, over positive. it market to remain turn trends our I Before

security great which with competition power support continue terrorism. And well for capabilities security counter national our flexibility on challenges, very CACI's and to see depend speed broad We modernization, investments. technology, bipartisan to government's spending aligned with and both and on focus national are deal

our with to it of long-term margin well-funded execute share continue We to drive for opportunities and plenty expansion, cash that CACI growth, strategy focuses to that, flow Tom. priorities shareholder value. over turn on free With consistent per will I'll

Tom Mutryn

second Please X% quarter, by turn with morning, of good everyone. you, growth. the year We This technology included to partially and X% strong Afghanistan expertise X.X% Thank around representing growth in ago. John, a growth was revenue generated number in X. grew from of impact billion reflecting around which revenue the the organic primarily offset lower slide revenue, This $X.X withdrawal.

was and XX.X% from was both and costs contract please. indirect from diluted down margin last adjusted favorable given under $X.XX X to share COVID. EBITDA performance due adjusted lower price quarter higher benefit earnings year year's profitability Slide last fixed per Second

the purchase or Adjusting flow excluding the free cash flow at Second quarter impact closed $XX million accounts X% after Act the for cash net of acquisitions. receivable year. cash facility. XX-month EBITDA up X.Xx continued last was trailing profitability $XXX with adjusted from debt We healthy new to two cash efficient This and our million reflects Cares free quarter our second was collections.

As in optionality us and our flow demonstrated allows as we cash deployment opportunities. we've past capital creating the delever strong to flexibility all consider quickly

please. facility size over of capacity. In term our $X.X to Slide the XXXX, increased currently We we extended addition, million billion and of other the facility and favorable credit terms. by secured XX more improve $XXX pricing have available second during the of quarter the

$XXX of during John we second companies two As two invested total for businesses. the We mentioned quarter. a these acquired million

of position share $XXX million. growth contribute For strategy next our million significant with of CACI expect additional to the XX the acquisitions of will of our addressable and revenue capture SA in is stages per adjusted IDT million the XX themselves curves customer share investing fiscal our $XX opportunities. of and Slide please. to respective around Photonics year are contribute we earnings total Both be 'XX months. for to over in to a $XX businesses accretive expected to are This in early high areas position capture to priority need high-value, to ahead to consistent market. invest These

the guidance billion to near-term two now of between acquisitions John reflect revenue billion the discussed around expected our persist be which to well of raising X% XXXX of growth organic We expect to impact second total and and are $X.X in growth X.X% with as midpoint at as guidance. revenue an fiscal are the half. We the year $X.X

at the expect made sales full of recent being be the two our higher-margin XX.X% delays EBITDA some most to our technology acquisitions. margin midpoint the and in year reflecting by We investments around

points. headwinds with IDT year EBITDA As for investments our would our investments margins and are reduced XX making expected have we expected support investments growth noted already above by around fiscal even Photonics these these margins SA and future been last XX.X% Accounting the mentioned. basis to year currently 'XX

year depreciation be purposes, million. modeling expect we now $XXX fiscal amortization For to 'XX and around

diluted We be expect share to count $XX.X our million. fully

million subsequent second remain free all XXXX cash noting other unchanged method It's at expected change the was worth million. from already virtually $XXX assumptions have flow least we quarter. including benefit cash which of $XXX Our the of to materially of realized the million $XXX

strong track share. flow on to per deliver are Lastly, free we cash

please. expected growth counts reduced and historical shares. Slide by XX per two share ASR recent flow to margin million free close Our the reflects expansion performance in which share cash

from Turning XX% to around our X% forward come to our X% of we existing and programs, business. recompetes from revenue new from indicators, expect fiscal 'XX

new for around submit quarters to another and expect to have for And $XX.X new business I'll over the under of over XX% back of we with billion XX% that next turn over CACI of call that with bids billion to business submitted two We evaluation $X the CACI. that with to John.

John Mengucci

Thank you, Tom.

drive differentiated our inorganically and has our the Let's These critical flow. to and need broad not Slide bring security growth, profitability free cash cash ahead customers. XX. our longer-term share expansion, resurgence We new enable change CACI investing strong our deliver of some in to dynamics and to They and value ahead addressable modernization near-term growth COVID continues with with CACI cash continue opportunities. ultimately business to technologies. challenges, flow robust priorities, aligned value. recent and The growth underpin both deliver also but do work strategy of goal significant growth of go shareholder to created per these flow are of win our our to commitment to organic margin purposely and the organically strong long-term marketplace capabilities robust national executing market, customer and

of every and our to talented you proud our each customers, and other diverse to day. commitment our Finally, I'm and your shareholders immensely people, single

and Your call start our that dedication, the Andrea, With is good foundational questions. innovation let's truly talent, character success. open to of for

Operator

question-and-answer the Please question come And session. Tobey first Sommer our begin Instructions] ahead. from now go Truist. of [Operator will We will

Tobey Sommer

Thank you very much.

that work company sort are new and a dig it the takeaways it look versus on would do of category into CACI from of is if look new out activity at new to or there, bid to Thanks. be that but bids perspective you in Your work? programs impressive. How

Tom Mutryn

Yes.

Tobey, So, this Tom. is

of is majority takeaway the from So our existing that customers.

or As five is you know, either three the average years. cycle

get of are good do into on so after kind of a people's kind And typically we We of of job there XX% warfare incumbency. recompetes cyber annualized kind And then our after basis. incumbency. are electronic going other going or done. we new work areas a over John? our winning some They're new as

John Mengucci

this SDA Yes. secure of Tobey look additional space spent that are Those burgeoning higher you comms at to great right? programs, new new, technology look billions going much have the going focus discussed new, of both new more As dollars their the building is that the provide is example are you their you to be CSFC work. IDT a be solutions, new, also work, as and protected at where those X going all with intelligence areas area if and at right? to bandwidth. that with With is new look out the Tranche market today are which acquisitions we we with that at community all Tranche X

two in thick we'll to acquisitions frankly So lengthy those market be that and coming with. we'll the that be capabilities of and

Tobey Sommer

as what your of CR get in know as Could them well have rest the as your sort for last to are Thank do and budget responding when to And my comment the you recent view this And we how versus year? extend and I for you. And customers continuing and guidance your to we house with lot as whether fiscal CR well or Thanks. resolution. a on discuss if market the on follow-up of a the question decade so. is has is assumption experiences? of

John Mengucci

Look, a under have couple. the Yes, know for years one CR a been Tobey, don't probably XX terrific I to XX XXX yes, less question. last we maybe to days. it's

part CR as middle operating mentioned budget. little we've seen one office our full, under the in are of with with one. it's resurgence building the it of during make basic warnings their to with we've customers simple contracting in different of one not have based this customers month and buildings on blocks, sort different that's priorities it's COVID. we got because because what's about each funding changing, of the traditional a CR. makes experience It their of XX% But CR those true. a is, year's is get of What it very And who guidance a officers COVID, and the So, of of who just call, during at their lot last with a

just getting people And predominantly is remarks his seeing earlier disrupted that orders struggling this Tom drive headwind that what's creating us means that are this task lost. that. to not We funding for funding with it's need in of continue multiple the we that out. mentioned that's out mean short-term for orders as during It business. somewhat to doesn't revenue getting there by revenue is It

end, view goes So is the more about of the to back or at XX% the fuller we've CR, a out slow to stay get at a At situation. and return put normal guidance filled would be orders but low when looking at pace on we a there less continue that where more CR havoc things the about wreak buildings COVID funding continues worse.

task full CR longer is up, something orders get we're back On funding turning style start end, sooner higher versus after able term. to win we the cleared shows in people to and

Tobey. questions, those for you thank So

Operator

Matt Akers from Wells ahead. question of go The comes next Fargo. Please

Matt Akers

hiring based some you've the around the little trend? like thanks you your down number you in was saw all, morning. deals. there on looks could on that the Good increased just you It Hi, comments closed at talk turnover a Can about any headcount or headcount headcount? Or there give even is bit question. though for was release

Tom Mutryn

demand about some going competitive Thanks. quarter. for I've at look and as than number remains continue as Matt. graduates put when like, But been last hiring Yeah. the years. remain challenging. I engineering at this to high. to STEM talked It has programs a Sure no mentioned we it And talent we been about The we in for talking that's the quite several we've and again time. been place of really over Look is look different and past software

broader We And that where we entered when test continue of could we to technology with internally locations the was even to continue ahead so country and true expand dispersed the invest COVID. our into in invested an of across support internship workforce. even we course infrastructure, the program better of we've need

employees We working remote have our many of own locations. very from

continue to recruit within. from We

enhanced skills long-term what by of benefits moved ours It's make realm numerous is of much development We've the end focus we into our to we it the can as on that the absolute doing continue certain But fungible that more times. employees technology project. more at had accident. became value so our not project us right the from move that provide the a day We professional pressing we we're to workforce of flexibility. to been

stock The other done we coming bonus additional XXX tough an people the great has what And all across also portfolio we're is program thing we've and them, we not our include But XXX long-term folks expanded changes a our this that clearly bonus company. XXXX to doing that been has year of some our knowing fiscal headwinds worked out Net-net overall hiring incentive of to to added to into the is talent well numbers. some but addition plan. of that program in our have that very extremely find. very,

spend move of just hiring hire asked world expertise x for have The that for towards number solutions technology minute less person, more more me as we to well. people. person people we number the Let of that x and government we is a offer expertise the on

after. people be actually not we're need around because effective we're as we higher the fixed the talent go in and less firm level that cost-plus to side On technology And cost that the more to to how the to more the hire TAM work we're people. we of technology to going we're development hiring and higher-margin get billets, able we filling bring towards actually deploy we we price the make choice want work, as

Matt Akers

about how mix I do how you market? helpful. And a stock at M&A talk balance? then, that really the seeing What you could of this valuations versus are in point? M&A thinking follow-up, your really And about you're as about I mean, guess repurchase you is cheap. That's Great. the for think

John Mengucci

a Look lot ahead some today to it's I proud deployment that year but internal not of word. of year the the $XXX time acquisitions and of last valuation lot execute two a proposal. capital, seen $XXX say a it's the and pipeline our that and very what And and only in the the $XXX make IRAD our going quarters the one. opportunistic asked million We're bid in and recoverable on to our investing very that's Yeah. and be grow. and customer relative frankly use key probably continues M&A you've type remains those continue example. others to remains to I'm looked the past strategy We've attractive around first million capital was ASR something we to term. Tom of near a most a that R&D year. And of done at? this performance. and In trade-offs. robust Board important spend and between a of great year flexible The and question investments own terms Stock of need were four is an our million that us was not M&A was ASR deployment

ASR. So did we the

is talked model investments. does actually living are look opportunistic We which and and share and a what about of M&A other that number flexible repurchases at we an

Tom Mutryn

Yeah.

that. cut I'll in add. me Let

technology filling received than $X.X in still With January some additional acquisitions plus refunds So deployed With very probably came we with today. times expecting at a X.X of share mentioned X.X were comfortable modest repurchase, minds the gaps. times anticipated, XX% mentioned kind we billion X. ASR, bit that sizable a of we of that leverage little John leverage. our we're acquisitions approximately capital, kind the around XX% earlier of we tax at I since leveraged those refunds which tax level four

of lot flexibility a the using appropriately deploy capital So to John criteria articulated.

Operator

from Gavin Sachs. Please Goldman go question ahead. next comes The Parsons of

Gavin Parsons

Hey, good morning.

John Mengucci

Gavin. Good morning,

Gavin Parsons

and year are on exist revenue accelerates And still into don't you revenue headwinds you've hopefully, implies up rest next question. of Tobey's Afghanistan headwind the I timing mean, a then bit these the have headwinds the improving? don't either. through talked Following just about maybe little the Guide year.

So I of is past mean, it, still hard worst of are kind the or to we it tell?

John Mengucci

Yeah. the mentioned, revenue X.X%. will thanks. be side, growth Tom XXXX on Look organic FY as Gavin, around

be We're also Excluding work around and improvement Afghanistan headwinds The into to around go that by guidance, offset overall. more yours, not sequential organic QX. and X% giving but QX X.X% in new QX we as we a into would up. answer bit quarterly see ramping

you with best at the know Look share I you Gavin, along side, didn't that's expectations. on this of like margin we've track estimate I'd with fiscal and growth. headwinds. XX.X% EBITDA to revenue also we're these the remainder going What our to for that ask On updated our They're looking year.

know confident by As our in program do a forward. going you very view build. all we bottoms-up program We're

The COVID chain I We trends, I all certain make supply and separate this created our long-term the investors under mentioned for noise noise. officer by to CR a largely of The on hesitancy is have to current want noise as what side. short-term shortages, from is spending contracting is our trends listeners and earlier. for challenges, CACI those COVID. considered opportunity our remains But really important is are signal signal the The temporary. dynamics

we all growing have know and addressable large You market. a

in in set. of and many awards our growing we're spending and backlog of and investing customer the strong a to have aligned We priorities technology

going year So, us sets see up XXXX. and throughout revenue those we for factors the well where

Tom Mutryn

add at Yes. bit. guiding Gavin midpoint. little of a And the We're X.X% growth I'll to organic

was year X.X%. The first the of half

the X.X% in mathematically So, back half.

year it that was end-of-life half to back easier first program the in so half. comparison that half. than and will make is in And by anniversary kind did and lose year-over-year relatively large Afghanistan the the we of Some of kind of so going easier. comps that easier headwinds driven expertise last back a we're that

higher singular of of good hitting And back to kind half revenues about the kind those more pretty in so we the due events. feel

Gavin Parsons

us doubling mean you businesses. on But think just longer is technology just opportunities Okay, And good some businesses? help here, acquisitions you detail. strategy term investment? there traditionally worth so margin I or in margin-accretive that's can really down are think is these growth of that bought I the strategy. that it's clear making opportunity a I helpful. rates longer I M&A, change term these the Maybe of all on the with here or it's is that appreciate it

John Mengucci

capabilities last answer. of me of love that about in all, -- you companies Look that always both first we the Look we need. level, well driving that the question. this SA part But accretive the a of that like Photonics macro exquisite investments. early-stage they and We're EPS. as CACI to the those strong and ahead margin are had are let acquisitions relationships that year bring although historically thank for ID deeper done. to because as family kind are us. for at talking for They the are investing I Gavin we Sure. IRRs more Tech they're broader customer have of EBITDA And dilutive just

first. provider are leading Photonics multi-domain about a bit talk the they Look me Photonics SA let of little technology. So,

out customer Tom market is space footprint. laser information talk defense add back. the expand significant in an few as maritime growth in as $XXX dollars remarks us focused Photonics a So, our FY to sensor even I mentioned intelligence discussed consideration. their capabilities. give our for ways information. and they XXXX is with but LEO sensor beginning requirements sensor the we out going manufacturing that's most the and of talked $XX to of to dollar SA builds department the the they There's because to for be early we need airborne other our contract They million ground space. the put mentioned amount focus us sharing about community announcements growth a going to yet, be more We potential. defined our space there's are and in passed JADCX about those to of and importantly They absolute prepared weeks Those my and million on platforms. expand comms for force burgeoning space on not And capacity and during revenue. mover

that's with classified intelligence value. and So, around year about to going asset US full million. that And globe solutions we other the customers think scarcity And what it's do, and that's who $XX combined find are pushing cross-link to an be in the search are to you missions when we not data. leader customers' highly sensitive with comm laser important

VAR. side at gaps, to done They've fill our On some investments. great to invest. area. continue going R&D great a but the ID We're That army we're complement a network also as some looking doing they is number Tech they modernizing They in started program what networks can to need thing wrap And data. with CSFC can information. that is unclassified them they better handle they than make meet have army other commercial so of certain you that software the devices NSA's best to protect to the around requirement of that a

a doesn't help. devices lot So, we of there the networks out the have

the without have network the out help. there doesn't devices You

very worth to reduce business. for the of our It's in their component job. million of potentially knowledge costs So, we're rest $XX that's VAR to off-the-shelf But a for think A two $XXX about to reasonable our mid-single utilize and CSFC Gavin the multiple think look revenue right? I pieces. million some the multiple months' going to of business in six a legacy EBITDA the capabilities ask mid-teens low think deal very you digit. different for

So space investments when the FY are optical world numerous certain in continue lot rest sweet a in year to become made CSFC to I've of the when comms. going right to not we We're in spending statement to the And of timeframe. throughout point optical not in make funded. are quarterly invest And comm that XXXX world looking spot changes. at going market XXXX both the build XXXX, is invest. times. and this to invest we out going I'm the to fully the a to meet

largest the We supplier the U.S. and that. are best-positioned of

get invest. And XX% EBITDA to come to and of this a company. number beyond continue continue to margins long-term So those growth we're to going to for XX% drive will in years which

Operator

question ahead. go Colin The Canfield of Barclays. from Please comes next

Colin Canfield

guys. Hey. Good morning

of mechanics that think you comment you through in up on the pricing period. And those there, can fixed-price of resets contracts? margin or those following Just flows to inflation pricing is how or kind want pricing about how just reimbursement contracts wage and how that however the talk multiyear a government customers over for us through cost

John Mengucci

Well, Yeah. taking wage inflation. around to thanks. home closer look, Colin a right

Let talk And up happy sets and the least Look, technology new. very about first. skill few then, nothing over talent, me piece I've at talk for specialized last about the that. paying And top we'll like said that and we're for quarters, people clearances is to margins. pay

more who to technology able we be flexible hire and that work and increasing leverage talent. how efficient we're we Our in

So to is linear necessarily not headcount. revenue

to have ways absorb we our number So a of cost XX% wages. is plus. today revenue of

So detailed our want technology that certain costs who to long-term brightest. are security. customer. us absolutely those us careers to the the They people to best in hire folks all the in are make manner at to our look And going of want a on and focus passed are national natives. customers our And

always So, set previous XX% passed always, costs will to all all customer our on have costs been. of our revenue get as these

believe the program brightest. how on cost price pushed way. that the fixed gets with work plus our well we some we're And hiring On fish as best internship and we firm side, our as back to

we're XX hours hours. talent take may And that XX now the bringing job get it based done. on some in to So takes

even West. them service our indirect more more government side, capabilities we that's inflation Washington put the wage area in us. government in. where to the see look, The you'll before than long is It from the then Virginia sorry, -- different invest center out side. on talk capability them because shared D.C. And we what win margin out of am sooner. wage So wage the wins. wins procure to we our to on We inflation I get allows we inflation decided And or very because about of

Tom Mutryn

refinancing our onetime give of the which to our Yeah. of in on up terms kind revenue absorbing kind kind And debt acquisitions around with kind in annual quarter kind growth, with overall and year-over-year indirect in higher of increases expense of of we comparable of X% the some employees associated mirror basis expenses were we and a quarter the well. as some absorbing

of to our efficient despite cost controls. those very and we're kind cost minds the pressures efficiencies realize kind drive in So actually enterprise of able across

is productive us. And for well so that as

Colin Canfield

strategy, Got software that DoD CACI the been involved on the growth? splitting you how that affecting your the some bids? in, versus ramp that competitions of context a follow-up And hardware is it. discuss And the of is out has within extent recent of can

John Mengucci

large Yeah. today, Colin thanks. but manner. it to customers different software splitting wouldn't in extent a I say buying see a they're very you'll some out

hundred digital day that things share a are of -- that out there's there. agency for Border in Border our looking contract with a me out, let and Customs With and and applications enhancements. couple BEAGLE Customs uses they So there productivity couple where hundred day were

get same their apps. done more they to could enhancements for So digital the dollar

So towards building back, we a five to had we were years three moving Agile already ready pivoted Agile four to of software certain need. that years, Software Factory development, number for different make that

very, we And very does seeing are sure the was XX from to customers app? So modify I delivered I that buy an these the way have need me that's today, of being modified. contract it's BEAGLE number where what apps differently, files. to cost it way have What software the to delivered

are they contract So beginning to differently.

using towards move changes, side, There's side, devices, me been do out XX the of technology you devices. but what and of The the is it's when the heard example how this, repurchase I more I say not been example, there's billion software-based technology and are we apps. all that predominantly the millions have a perfect which perfect customers an XX seeing as is versions iPhone example. On iPhone go hate threat mission

would changes far on phones than itself. hardware software device often those the that more one say So

mission circuit that handheld tough port wax to model site are out devices, that tear that are and that into where going. and changes software and equipment that's bring it's mobile, is at, systems of size change upgrade. that weight devices DoD issues surface cards ship, a at power To out look and the need take towards move the they when get fixed the What So there. really

year-over-year For not need basis many growth. towards on top we a a that also company to that but drive able bottom size, to be customers our only line don't line moving growth

Operator

Perez of question Please next America. ahead. comes go of Mariana from Mora Bank The

Mariana Perez Mora

gentlemen. morning, Good

John Mengucci

Mariana. morning, Good

Mariana Perez Mora

Army. ones offerings? We this spin-off technology mitigate at from as million price work contract systems were is interest to would plan Court Army grow you engineering found the US services But you So encryption $XXX right? the last navigate to Federal some overlap conflicts CACI your of Claims device of know the the these how for my a an week bid we question type drive almost that do the on conflict US beginning, with ineligible of mind or of with an discussing you because

Dan Leckburg

sorry, this Hey, Mariana I'm Dan. is

if little not have. a the just your up it's breaking sure we bit And connection question. You're in I'm

of If mind give don't us time. quick a you summary one question more just that

Mariana Perez Mora

Of better course. you Can now? hear me

Dan Leckburg

you. better. it's Thank Yes

Mariana Perez Mora

week Federal million Army. engineering found do on $XXX interest CACI for for the contract Army bid an Claims with an device last because work they Court found encrypt systems US to some conflict the So of US of with you ineligible

As overlaps biddings? offerings, to you the of you do in this how plan grow technology your mitigate type

John Mengucci

thanks. Mariana,

Okay.

window. So you're what which Army an talking open is contract, in protest awarded recently about still a is

talk So I don't we more that the question. want broad to stand about where But award there. and specifically

matter We to to army is agency careful requirements other as make for extremely processes involved that that are are procure certain and of any new in going any the we the extremely, to equipment. how not

we OCI believe and we the like dollars spending careful. us. catching very we if We've ever So Clearly we're in been customer things like have spend don't ahead proposals need issue. submitting of of investing have that the and wouldn't we sort that

that our some doing lot certain work. In expertise do that a knob fact we turn as to down work. some making got expertise parts We're or of XXX% of business of business we used we've track no on assisting in customer longer record the

careful. So we're very, very

to bid continue with that have our and CACI expertise on to make because We strategy that bottom-line. bidding both top work this across to technology business parts that the are processes to right of on company the in will us that's looking as of grow favor line in for bid not certain we work

Mariana Perez Mora

you could a Thank for Perfect. this operational follow-up right. to headwinds these robust capacity? short-term? All and adapt this convert it contracts is customer customers actually confident the under that that a ones to what And color. you normal. or as to demand CACI are related support new more restrictions. like And mentioned behaviors the your makes then you The or current How probably

Tom Mutryn

Yes.

So change and COVID Mariana, like. it. do take issues, resurgence We a the at people's I'll stab have circumstances first in supply government an psyche, in Omicron, reduced abnormal the of of workforce set the chain

it's are demand I events. very signal get to is either to back so expect get customer unusual where the with these to of out more meet will the ensure to kind think there reasonable things adjust and everyone And associated to come of And to And the a I level learn government think recognizes allow normative with to kind people have essential services kind to on of that purchase mission and contracting their and requirements. terms ability it them we eventually or things goods it.

Omicron mention when together I will to we put expected that more normative we so normative And level. kind the unexpected. more a This something we things to that was think a be year guidance of get assume reasonable it's again very that at expect beginning our of the did -- back to I'd we level.

think that's look a So to reasonable framework world. at the I

Operator

will question ahead. go come Jefferies. next our Scott And from Instructions] Please [Operator Forbes of

Scott Forbes

Good Hi. morning.

Tom Mutryn

morning. Good

Scott Forbes

tax times How here? at follow-up of capacity you're the quarter. end you X.X capital for essentially a at times and leverage are Tom from the appetite X.X on Just mentioned viewing deployment. further refunds, you following the deals the

Tom Mutryn

always of Essentially acquisitions the the kind strategy. viewed with we way start we've

where They gaps. the acquisitions technology with the in be They we could and demand fill prospects let's long-term customer right here in be cultural those. Here are at believe is price They find go gaps. companies signals in fit to right fill right the And growth the gaps. we want for geographic to could let's look this is to gaps. could be

episodic. businesses And continue like to simultaneously. become so for stresses to somewhat Those doesn't we organization. necessarily when need long-term have But do the available and long-term It to opportunities. are the can three puts we on to sustainable act, present. the they in very look two free choppy long-term but of of The that kind organization capability in or kind act flow we value to drive cash ever share desire per increases

Scott Forbes

Thanks. don't quick repeal? And follow-up around in there's what's kind potential around, in there's expense a room there. How for purposes R&D included XXXX, the viewing see shift then been tax and to impact interpretation of for you we recognition some for a fiscal a cash if Tom, are

Tom Mutryn

Yeah.

timing on it the have flow the and We're XXXX earnings But you. the a in short-term no as have the based the day, I five altered, legislation. on in impact Yeah, fiscal of will long impact worthwhile we'll will recognizing issue. over The So cash get is maybe determining be we that of FY cash. years, on share. an legislation XXXX this the instead And CACI closer ready to that, tax impact impacts And it's mistake cash know our of same. run run. in you will instantly the but end tax be thank kind is guidance. ultimately make what simply as it to think if not it is exactly as GAAP in an and disclose this will stages on benefits we no the will per that get the the earnings releasing you have note, of short And at

Operator

question-and-answer remarks. concludes any I would This to conference our to John over session. for turn the like Mengucci back closing

John Mengucci

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

Operator

presentation you Thank and today's concluded. now you now for attending has conference The disconnect. may

CACI International (CACI) 27 Jan 222022 Q2 Earnings call transcript