Earnings call transcript Q2 2023

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Ladies and gentlemen, thank you for standing by. Welcome to the CACI International fiscal 2023 second quarter 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.

any someone this will need star, please should and zero help you assistance call, during press If you.

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

Dan Leckburg

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

so let’s move Slide providing are presentation slides, We No. to X.

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

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

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

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

John Mengucci

Thank Officer. Thanks me Financial this With results. for Dan, Jeff our joining our good fiscal morning Chief year ’XX you second morning and everyone. us quarter to discuss MacLauchlan, is

basis. re-competes the business of another healthy of revenue strong XX% adjusted pleased book of expertise with we quarter margin both night, performance with our contract our XX-month billion growth as were about on and winning times Last please. second times was awards X.X our grew we contract we to a on XX.X%, results, and for and EBITDA which technology. $X.X I’m awards, X, our trailing XX% CACI Profitability an well. and had for had to quarter new of About a with Slide bill strong quarter and performance. We released very in represents X.X

Overall, up our the financial year provide quarter our first and achieve will guidance. to additional sets Jeff us execution fiscal second details in half shortly. well

please. X, Slide

Turning trends including the On December appropriations the increased very defense government business. bill which the president for constructive and CACI’s from demand remain to market environment, spending the XX, saw Budgets general through last year. XXXX. omnibus increases, healthy external signed about XX% funding in September

see enterprise CXISR, in commitment innovation of and healthy the and shareholders. us drives to Below IT, across and solutions, value technology positions ahead to our areas spending both of we mission cyber, key digital support. and top differentiation including need deliver our to extremely CACI, well for numbers, expertise invest CACI’s line trends customers focus to

Slide X, please.

action. after was This technology enterprise the Force award was CACI announced Enterprise key correction update and corrective by leading in of Force award the to Air notified as action, Air we Last Air the Force December, undertook you or Late the IT we subsequently that, reaffirmed. me a the on were quarter, IT award. Let demonstrating Service our position modernization. contract, recent a award EITaaS, protested

very resolution. pleased for were GAO was We sits now surprisingly, that with decision. protested again customer’s decision and by our Not

important fiscal a positive work is ’XX. be of beginning team go look ready will Force, expect in to we which to Our forward the and this we for driver Air growth

more, strategy contracts, and modernization. example bid to on This enterprise position leading win focus leverage and less a award in of our is great IT larger our

won expertise intelligence a sizeable CACI provide cyber and analysis Turning mission quarter contract to exploitation to and network foreign in missions. support awards, second of security

in talent. and incorporate corrective both and technical won currently skilled thanks agency this employees and was protested expertise and and award work our ability execute will the missions. cyber. industry-leading this mission superior leveraging apply action. mission analysis award to who in deep, to to is work understand the the knowledge We taking complex customer on intelligence our by longstanding The support program know, you incumbent This displaced our domain highly competitive capabilities their As also and engages critical CACI’s

In to strong photonics to the demand our in business trends space and domain, continues continue we grow scale. see

As a with we quarter, order we customers technology. defense government discussed before, primes prime. follow-on photonics the have defense we additional from second supply and both received our In

in - technology earth, space beyond. Our low requirements medium industry-leading all ranges photonics orbits and earth, operating of the addresses and spacecraft geostationary of

that demand technology this stringent for to communications technology we optical and requirements, communications customers’ maintain increasing secure as meets all leading performance see only and and CACI’s the intelligence is we bandwidth our operating high to domains. today security across DoD space continue in in offering U.S.-based position invest

I and highlight best our performance, cyber-related to also particular our investigation strong for DCSA important re-compete re-compete want for work of our in private the intelligence wins community. work

the we to value Our customers. by driven and execution re-compete bring successes are strong

are growth, expansion, business addresses our re-competes work high awards, for flow, to these shareholder margin and for supports long-term of and that deliver cash and enduring priorities ability All new our strong critical customers value, value.

Slide X, please.

borrowing million expected summary $XXX confidence in future share to which be strong With based a discussed shareholder As deploy dynamics. flow, we capital cash ample morning, announced million of capital board are and we’re business committed leverage, we as a generating to deployment flexible strategy repurchase. $XXX that share good is and investments, drive and share to that executed imminently capacity authorized a program market capital has deployment internal position opportunistic to of other and moderate our before, we repurchases on M&A, This value. directors in our repurchase additional options, includes have

pleased with long our prospects. we our and confident in term we’re performance summary, remain In

the deliver new our We are the flow right strategy, strong investments, talent, leveraging our making and business retaining executing value. successfully winning cash managing to hiring shareholder efficiently, and top work,

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

Jeff MacLauchlan

John, you Slide turn to Thank good morning and Please everyone. X.

grew organic revenue year-over-year of billion $X.X XX.X% half growth the the X.X%. We and X% for As results. of which year. grew representing view was aligned the quarter, technology first year. Expertise generated well revenue XX%, and including with quarter John we’re of margin with XX.X% the pleased second quarter the XX%, EBITDA of is our our Adjusted mentioned, in in second of growth

first half on with is strong guidance. performance year Our full track our

the diluted our adjusted share $X.XX, expense quarter, profit. quarter were per by higher we operating earnings Second offset higher interest reflecting discussed last partially

X, Slide please.

Section Second quarter and CARES unusual a repayment of the Jobs discussed, excluding deferred receivable accounts facility the and previously of $XX $XX purchase Cuts of $XX final operating to $XX of have the Tax payment million million This million result Act cash namely under Act, items flow reflects we our the million. tax of taxes payroll XXX XXXX. was related

We million year XXX. from disclosed impact full have previously the of $XX Section

Cash payment represents recognized flow on reflects of working quarter’s our ramping revenue tax also and quarterly effect year in This payments. the later attendant the capital. second timing the half its quarter

times. with debt at adjusted XX-months X.X quarter net the trailing EBITDA to ended We

we repurchase of As to previously board our discussed, program. end, $XXX support characteristics capital To of cash to future growth of a in we leverage that value. has have provides shareholder modest flow significant and the this our share optionality earlier business, directors access deploy million authorized morning strong capital and announced that

of stages that an As the authorization mentioned, final $XXX John as are an million deploying ASR. in we initial of

execute and and when agreement. the that ASR you finalize expect additional We to promptly repurchase will provide execute we with details

capital of business our manner to opportunistic the the $XXX Beyond approach refinement expect the deploy on management This structure. based in of market time. deployment dynamics in remainder million the we of to be authorization is a our and strategy and capital to a ASR, over flexible

We are now even with better respond alternatives. agility positioned market changing to investment to and conditions

please. Slide XX,

year fiscal tax under of updating guidance our reaffirming ’XX flow, which XXX. the exception we payments free cash are We to with are include Section

repurchases the clear reflect authorization we any that does share also me under morning. announced guidance Let be not our this

expect in expertise of X.X% revenue between X.X% to continue with and We technology. growth and both growth

anniversaried acquisitions and be of areas all in future reminder, so these recent organic. a will our growth As now have

continue full net reaffirming to our and adjusted expect year We adjusted XX% the adjusted range, EPS we high margin prior and be income EBITDA are to mid to in guidance. our

the are million ’XX Section to previously our no tax been related fiscal payment year disclosed guidance cash XXX, flow We $XX have cash reflect updating enacted. changes solely given to

share guidance authorization reflect million reiterate to that any $XXX the want under I just Lastly, our announced. repurchases we does not

provide information $XXX we million after the finalize of more the details We ASR. expect to

XX, please. Slide

indicators, our backlog Turning driving CACI’s the We strong. compared growth forward prospects remain $X.X to our awards last of quarter, during won year. XX% to billion contract of

These expertise reported customer Second mission amounts quarter backlog our win. current intelligence includes background as roughly $X.X from billion award, DCSA as reflect from $X.X re-compete investigation billion requirements. roughly our customer well

new For of re-competes existing programs from our fiscal the between split we XX% revenue awards. now X% to evenly with come and remaining ’XX, expect

quarter quarter in first over for next is evaluation, CACI. and to with CACI. XX% We from second awards, our being of we XX% to have the of down another bids of bids business as which $X.X under quarters This strong approximately billion billion $XX over two new business to that submit a result new is submitted of the expect contract primarily

our In summary, the our results, of very strategy. we’re which execution pleased successful demonstrate with

and generate value. long and continues in to well shareholder team term perform Our ability to confident remain we growth our

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

John Mengucci

Thank you Jeff.

Let’s please. Slide go XX, to

on awards. I’m pleased and growth, quarter profitability, our fiscal us keep with flow and half the year closing, track deliver In contract our well first cash second guidance. full continued to

this flexible term. expansion while capital by driven is long and long and a per with to we free to All margin committed forward, returns Looking grow delivering remain cash term the strategy. over growth a share those flow opportunistic commitment deployment compounding

by and what for everyone our day nation; our continued of As company CACI. CACI the and our to is success for case, our always and the of innovation I do each employees’ you support on commitment. thank shareholders, extremely talent, is and To every team, proud your I’m for you our driven

the let’s With that, Emily, open for call questions.

Operator

instructions] [Operator

go question first Robert with Spingarn Please Research. today Melius Robert. ahead, from comes The

Robert Spingarn

morning. good Hey,

John Mengucci

Morning Rob.

Robert Spingarn

Nice and congrats numbers, reauthorization your and ASR. on

kind first a here this or question John, should with you about budget for and the is but of that’s half, there know, especially don’t set out if you talked the after the in What know bill to I rising? just we pipeline. opportunity strong second this Jeff anticipate book Jeff, half,

John Mengucci

extremely Look, to Yes been we XX-months times. with thanks. trailing boost I the think, X.XX also that the we’re to bill number book posted. We’ve able Rob, happy to,

a that bids XX, in XX% above the our You of I business of continue very new to capture proud billion $XX rates, additional rates rate. like pipeline. win stay our re-compete year-over-year know,

us we’ve drive more we’ve pipeline. the growth, and term longer right? nice predictable, use term of durational bid this our as pipeline long memory management long the and some I continuing been would we win path at around and So want execute, me, do business end the say longer, bids because on to got guess I how to programs less in of I’ll day, evidence I What a of development, in

is re-compete award people out, the the I’m margins, Force but comes three I Air from that is with an competitive business number extremely our takeaway DCSA and very providing only folks incumbent proud revenue for volume volume trending. on well of the not like and and driver that both community, a of with laid service the way some government that the also EITaaS new to customer team award, the reduces in some as that comes of two. intelligence

both everything involves I front, in them it’s whether growth. as but that business work say, on bottom where time, up, consistently would tell of making are very in be want you, the tell segments--you I to all, all with the win get because right expertise segment We bidding got work, of me grow. right and to this is, We’ve we’re expertise to I keep at the high we and me growth sure to sort you always or people I’ve happy on position. don’t line the top those it both the tech. Growth exceeds them one focused said, new of on must looking mix and know, tech is

I sort point. to ourselves getting of we’re think that

Robert Spingarn

now In services, defense that see equal that for in and you do hardware you’re budget vein, support especially both?

John Mengucci

cyber, support very - forward, the constructive where was long much budget, areas that of term look without of It all, where Yes ’XX Rob, I sort it’s those look key three and first I too don’t it If areas I passed think of to least warfare, electronic at is than and focused. further does CACI CR. that like go. [indiscernible] look a

the heavier to become player a domain. in space beginning We’re

us accident, growth are river, by of a not those budget think areas, makes streams and going I we’ve ourselves longer different funding, deeper company strategically, flowing forward. so gotten that into those very decade-long

dangerous company small national A with and is pleased place, security well positioned budget left lot and really, and so so that I a we’re budgets. turns right of just that environment--you I’m know, about far world us has a the any the believe, very

Robert Spingarn

to ask want it, but for And I I clarification. to overstate want a Jeff apologize, don’t I

expertise, mix of you what first half second half could first is technology You so up margins dynamic you are the to and for versus about than talk the yet be Jeff, the know, changes if John, lower just HX. that in in half, technology the explain going

Jeff MacLauchlan

The they and and mix operates and hear think hear higher they not two they people think that’s really kin and price and lower fixed think Rob. the case. Sure cost-plus oftentimes dimensions, margin, I in of always margin,

that quarter mix. There see that’s it We work some for reflecting work in good of of risk still slightly and same whatnot. have us in lower cost-type lower margin. but reflected are fixed and some price price sales that plenty second important necessarily have margin, factors, margin the It’s also you a higher the doesn’t work margin have real we lot fixed business

Operator

Arment next go Please from Peter. Baird. ahead, Our question comes Peter with today

Peter Arment

John morning deadline contract? good to focus GAO the runway big. we’d mentioned Jeff. just pick a How to continue touch know continued just a as and huge regarding see Then look second the there you scale? base, the tech up. maybe when on to I a on date Is be to Yes, clarification. photonics the John, Air has and for just Force going obviously a first resolution question, does you is been a space war

John Mengucci

thanks. Yes Peter,

unpack me Let try that. to

at mentioned. holding my First protesters award. we Air we’re unsuccessful, look successful - Force prepared the that off were on remarks very onto very, pleased, were contract, as The

have lot seeing confidence us. a us with the We in Force Air through of

go. to We’re ready

see the We discussions to will Peter. with customer, time ought our have are April well It staffed not very clearly and already get in frame, in expect and not contributor would wrapped we had of we is this to deliver would we expect and FYXX, so up planned up to be in as started ramped be FYXX. this but a revenue things large up

where comms Picking I’ve we up like transparent. example business On deliver at. happy the photonics - front, that’s of best and look our very I’m space to I SA the LGS really combining guess, of with really business, very Photonics we’re what is that optical the going are [indiscernible]. with to where putting, the us. with been business I

us average business going good decade-long, margins. to We’re going to to that continue invest investing than That’s you better in are continue to in at area. so it, us a see growth for all nice

into really I that right at between non, on the and working together and our right systems, include think on then path we’re airborne expanding potted Photonics business. to onto to get know, are the SA synergies that on-ramp the related markets time on already working really and pulling going and into--you LGS future some we’re

that, and catch had it. you Peter, other one on I question didn’t

Jeff MacLauchlan

Force Air and remembered I contract space.

John Mengucci

Okay. Thanks Peter.

Peter Arment

Thanks.

Operator

comes question Please Matt. next from Akers Fargo. Our from Wells Matt go ahead,

Matt Akers

the Yes, Thanks for good question. morning.

and structure capital about target ask to wanted your leverage. I

low. all about given rates mix Does think rates years, were the very any are You’ve rate now, you kind now? times two, variable differently change interest that where been the running several do last and of of three debt but at

John Mengucci

start and Matt, over to off Yes Jeff. I’ll turn I’ll

the in low talking flexible. now, For want I are to maybe X.X a opportunistic Xs, where temporarily we higher very range, I tie something was getting leverage to in than about been long a that everything little about somewhere to are What to it transformational. up time, that do we bit like we’ve and but comfortable a

it for. kind three we options. and that’s us considerable of If me, market that’s around of and capacity flexibility optionality to times, combined leave for going leaves $XXX other we repurchase, the were To the deploy full the million still ASR looking really and us open

Jeff?

Jeff MacLauchlan

a that is. are tired to add to you bit probably opportunistic, and guys hearing what just is this just said, John of Yes, flexible little but really what

approach really in We’re we gives a as options a to like just in a to options, of the acquisitions. organic plenty of or kind good exactly spot chance which with in spot company investment lots be. nice which term here to where have of us to nice gives we know, chance really us X, are the either a We operate mid-Xs, is near to--you good the mid-Xs

Matt Akers

falling Then Got looking it’s M&A, of where hurdle deals just is I it at are historically. what of one are or of rates for you’re it, and fit those assets more, short, have CACI? some right talk sort out just are valuation there the right done guess than about Could I that not do the you thanks. the could if sort slower on you been

John Mengucci

are we’d few any here. There a observations The pipeline smaller. necessarily not make is

valuation is as current very or remain we’re But starting a to thoughtful and we right? re-thinking our very opportunity the amount that interest lot right see is with circumstances. of I being imagine When and rate time, deliberate some to going think I market and adjusts itself rate right--that’s we’re and some part the of the driven, practice it we’re sort when of the the poised some of to move active speed. interest lookers strategic, and driven. continue presents optionality, other right the fit and to the right of this

Operator

next Subin Our comes go question Stifel. ahead, from Bert Bert. with Please

Bert Subin

questions. for Hey, Thanks good morning. the

the higher labor relative in Army more exposure, case? view your even it single if least think summer. was a just earlier digits, Just if we Even to seem RD&C it organic yield to is fiscal is maybe faster seat, single still an expected expected would for not your on a last opportunity near low our is follow mid the Is term out DoD’s grow up budgets what but high I easing your reason on like would budget L&M question, basis, than to digits guidance at to to about ’XX. from factor that’s there that, and grow

John Mengucci

really first I how our saying with margin, start me Look, that I performance thanks. us we’re like well Bert, let organic, XX.X% half that with adjusted the a for EBITDA happy mean, X% off Yes a so - growing, got I going addressable of nice a large, like the we’ve plenty said we’ve earlier, market, We’ve in strong Rob forward. pipeline. past, got awards that highlighted opportunity $X.X billion sets so there’s CACI.

strong a it that’s on look what multitude provided factors when scenarios on at of different Back going we had beginning guidance, We customer assumptions out, trending we in do and like narrow we of a exposures, little here time play it. hold back guidance, positive. are first facility more access, at the how a half, budget our we a is we July-August things range COVID in the and what do we - the have year. terms To the we FYXX mentioned guidance, a lot put award Those reflects color than would position why look all do and raise new goes on frame. to timing, of are and of seen

the some little bit there. things look with XXXX contract have about a so of a left the employees so officer some you commentary are through sort same, and we’re the and that the ’XX, could we got right in just comms expansions, then does trying balance there’s one, of onto us very ones, comfortable and guidance to if that along move opps. negative, keep new so we’ve to to at those back the closer contract hire risk of that We we’re whole and unchanged pressure resources, some blow and goalpost margins that labor, out of somewhere things probably continuing to the on Cost current little retain us

third make to very moves to that different end guidance, we we’ll when positioned commentary get land We’re our and be different and of able and quarter. potentially the strong within to well

Bert Subin

and what implies to us up XXX shutdown, or Just to helpful. of back as to starting that pretty steps the from up commentary just your are what at that, guidance, XXX you government hearing quarter, the XQ I comments earnings follow-up guess around look anything on there cadence back half the we healthy it a half. in Okay, step in something in a ’XX, half that’s Can per potential any in you those on to like if the based super second risks in changes, are are. what Maybe north walk and contemplate just like anything you through that? a

Jeff MacLauchlan

alluded The maybe a fixed half. margin about I’ll to content, your to that’s nicely into I in second and growing think part ago, John changing margin. question. questions few your way off favorable the to that start question alluded here address mix a that Yes, the see but mix see really phenomenon price of of ago, I extends I We let back few some we a a that earlier that then minutes

little of a see at that you a of inventory can and usage You bit bit little look if cash growth. our

end to You of sort the front of can happen. see that starting

point about front that of expected to up starting the ramping what Again, at my myself, In year. referred so right lining I exactly working growth, we second to really and to at half. at revenue see quarter the we prepared it’s repeating I in end remarks, this capital of see expected be the when that end to attendant second risk talked where the nicely we’re the in of the with

John Mengucci

asked Jeff, always we’re commentary. my noise, there’s you been Look, of always government it little up hearing there’s lot rhetoric, fiscal thanks. I’ve Bert, guess headlines. a wisely, year bit and of look, noise I’ll a chose but XXXX. same--I a call I’ll the words about brought lot

XX-year-old a lot budget time. lot we’ve We’ve company, political-ness heard been through environments and a of administrations, a over and cycles. many We’re commentary of

you cuts one therefore about side deficit talk on ’XX. in situation, legitimate fairness, year and have government all fiscal in and government’s concerns the budget debt Look, about

near Europe, or threats the it’s whether Korea. decade-plus On support great surpassed there’s we defense national geopolitical much There war much Cyber in has some of now not case any on skies, significant security, the near ways. war to A the threats. most so. the it and remains China, unencumbered and we’re who ago, is peer at like bipartisan there in North type fund relying peer going us were environment We in Afghanistan, Iran just a equalizer, given to and other spectrum, side, domain likely be in germane conflict, the very contested, on in and the and and pretty that’s electromagnetic that space is more remains to heavily is operate us.

monitor a a had minuses, guy going to we’re the and that to on influence continue I we’re some we it, write but If for company and Bert, the going to to are I’m pluses things extent that can now. to work

focus is shareholder to business, know long and can running going extremely what needs. address security and and is many they We’re on the needs. and critical important We national delivering technology growth know we term value, have of expertise a those lot of our

We’re where we company, a come strategically based is strategy from.

We’re not term year to we’re what like to fiscal fact strategy going delivers to full consistent in happens on to high supports have want long the that no that we so budget continue important we value, be. and growing, these very that head, where government commentary a focus by accident, ’XX markets a I matter

Bert, for Thank question. that you,

Operator

ahead. Seifman go with Seth, Seth Morgan. please question Our from JP comes next

Seth Seifman

very Thanks morning. and good much,

where that, I of versus there it maybe side, I more better it was or gotten little if six you’ve few what maybe expected. of kind delayed in it I was there an since months slowness the area XXXX maybe terms you in so, of product terms what government the about around middle some what on sense was talked quarters the might wonder seemed of figuring be dislocation like that might some and particularly of think being a funding, lost. of was was John, a in if be bit, ago, out was and think unsure a when on

John Mengucci

may the like, of slightly clearly expected, that the is back - have work so in the was some funding out in back and we a off, some start as second half funding look tech to you’re the I’ll a threats has during what were funding, some to form, mentioned, and looking come of original year about playing some a until and as Back deliver is thanks. Jeff and back year year all has that year. changed. right, Yes, ago we and will the enhanced absolutely dips were, the we update and the is at we to while and mission there just struggled versus issue different capability of customers and slowdown while we come the the fiscal out an where half requirements requiring planned through of delivered It’s the have now. ’XX,

Now on mods our means us yet that items the is come what of can for and [indiscernible], that hardware fiscal to a stronger into Seth, take it but that size that It’s weight watch, and for different continue we something to bottom concept power drive unnaturally, back we’re us, multi-mission needs. does line. play working really solutions, does tech software by those this and of haven’t that our year software we on deliver defined, end low can

there, confident of be very out that to battle in and on defined. to the year that. mission our of sales of on we a We’ll kudo to lot continue and were able change year those earlier have requirements for that, - I’m very we’ll even course, get you back is pace Ukraine, track through us the to end all close in ’XX. fact for so activity that UAS changes, tech that, on need those Thank at going a of acquisitions push don’t great software our they to and fiscal is what’s look If there the the we as

Seth Seifman

great. Great, Thanks.

to analysts into the of take for think now, environment, that little more around--you margins still in to longer this check a of and operating you be thinking close kind all this we XX%. there’s maybe I where idea models, stuff tougher, maybe on and for that a a if bit look be for that where bit for with next looks aren’t a at anchoring are know, Then something things as a the XX.X% little that might of expectations people deliver stuff, throw consensus that follow-up know now. in guys about environment need things in margin, like our be but some we’re might to responsible the I ever-expanding and maybe EBITDA or little you, Do it you either year,

John Mengucci

Yes, to XXX XXX-something we’ve I think we’re say left. got our another days days I’ll what into that is year,

focus we to button our come on up making shareholders our to We’re going to level a sure that guidance FYXX enjoy. to have and

of side, term EBITDA would on margin years be X%-ish greater stress we margin is. then it where everybody the XXs on greater look, great see to that and the are seven cap to the long an to we way business XXs, mid I discussions call. It’s is is, but spend funding from having high and getting where It’s were lines to internally higher, what there higher business fact We look and back. six, right? where mid Look, The and at into no the to have trend move high It’s we we’ve on the book at a looking of taking and really strategically be, the going involvement. going frankly, resting we to be not that how areas X in streams. greater to was are been some that we

more take think year would going to some highly guidance balling ’XX valued we share into of ago, six and crystal side, security our, fiscal away ’XX. portfolio, buyback opportunistic margins years so than I at want us shy getting really call gives and space been this really well let’s much taking say drive we for still look along five chances more have August and getting executed, to going some us trying from I’m the ourselves additional out ago, into national to the years get continuing strong, involved places not on to our with shares Four, FYXX. us better year position that comes stabs enough, where to at we’re for focus finish

Thanks so Seth. much,

Operator

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

Mariana Perez Mora

Good morning.

John Mengucci

Mariana. Morning

Mariana Perez Mora

the question, a about that resolution, first my commentary you political increased continuing this commentary customer it’s seen impact the Have in next spending about award your actually impacting behavior For you environment? follow-up on environment, from uncertainty? any Have the year, seen commentary, that. [indiscernible]

John Mengucci

right? it’s Yes supportive public Mariana, this not. thank I probability company is shared say sit a what from do nation scale you. I now, national security that there a going FYXX space, unbalanced higher going as there’s between--you think Look, to earlier, budgets and nothing are I right sort an in like CEO of FYXX, forward, I I know, than where as the around would

certainty time commercial begins seeing to we’re are and acquisition, set going had. see If thing XXXX tech going where customers, so and officer everybody how certainty. we’re they’re some senior government corrected. customer year we and positive that [indiscernible] money off doing that much our we - working with more have in to they’re with a meetings, in I I’ll level fully we look environment that much we’re around what there’s contracting all with what there’s EW appropriated still converge, in and have FYXX, how federal solutions cyber now. on funded sees get But the that ID are to push we’re government fully our to a what more space, that’s the must-dos for areas the this that those my classify highly within all doing absolute take We and fiscal In signed budget, more at approved, much supporting. Everything

we’ve some modernization On sized nice won side, contracts the IT there.

We get concerns, not have of but I funding. Mariana, protest around period, up any have some to this picked yes,

the FYXX? pretty full but believe all we’re receive watch. Perhaps, some have CR? in hear things know, go important we in still will continue hear could you Where going to requisite a and same year to we’ll the funding. I have - you areas, to I we all We’re

Mariana Perez Mora

wins. these Thank recent you, and then you mentioned

Has multi-billion pipeline contracts? won submit multi-billion of dollar like expect bids wins. that submitted contracts, you much or those term, that significantly of appetite in to pursue bids dollar recently is have the your in near the the You larger how large to

John Mengucci

on that - for work of and pop, strategy and where been here we’ve - even tighter revenue really bidding some of on you mean company now reward jobs, look lot a larger we a that for - on ours, gets bidding me to of doesn’t winning half term re-compete long Yes, why a and can are does do yourself a you those find work of lumpy, with much four, ones does nice duration contrast price a fill tighter chasing in is a focused it that rates, margins, that years. you around against winning in we’ve trust awards which to these that four if Yes, that It’s that because like ones sort have grey backlog, that that you’re the been mean larger area small contracts much with our it on larger there’s in. not and get strategically sooner. of very you’re is programs

right--I have again, winning the term think in multi-billion C-court dollar be, so winning frankly, provide out we but floor we’re a ones can a growth. there think wins, some nice knob long quote-unquote right, we’ve nice dialed that the these and that nice got I that, we’re Mariana, base we also

once appetite going with an outstanding been but business get for not that nicely expertise have you really development strategy to moves us an something outstanding last the it programs because and the into deliver that, stay team, got into building sales positioned over win We’ve do the you term we’re tail you team. then support so We’ve it. only We like with work. long those tech [indiscernible] the that decade,

for you those questions. Thank

Operator

next Our Sheila. Sheila Please from question Kahyaoglu ahead, Jefferies. with go comes

Sheila Kahyaoglu

assumptions year slowdown, a and first like well, morning John, growth you half, on for those so DFCA contract about EITaaS, have good the around on good talk bit Hey, and a ramp? to can what are you your you wins guys, and more? your specifically, sort starting You IC the pretty feel touched in maybe organic I your of thank know some set-up little being just those the are implies about up, just but contracts, longer talk EITaaS, can comments, performed assumptions have it. win? held term with you guidance do but Then organically, X% you that including What on I full up you.

John Mengucci

I a second your Look, X% - organic been they through overall I’m the growth happy to so are, yes, spot-on protest organic very plan, into alignment. really in and larger say out we awards get as always slightly X% front, had are, that growth on starting every then--you quarter, different large we’ve get of is of that has ramp-up half. and Yes, all numbers XX% the one able would because and sure. for are the those jobs period first the playing know, tech these previous book,

of it know, that top technology backlog. been that, we’ve On work the - you make Rarely, into very deeply Sheila, mission transparent does on that. our

that’s I revenue, immediately half. profits award and awards Jeff so on then towards getting touched that to get delivery XX-day a usually that looking second of - goes we We’re and that, know to better cycle, sort XX our

extremely won. up They I have to like I’ll that are sort really going the just jobs others and we a few are business we’re what nice to that of of forward book we ones there. won pleased we today, move well. with Look, and two set have the those us

heard against to you win but that side, On do lumpy, post we going headline, are coming our always and say and the quarter, new right? be any slightly large lumpy, record to you’ve never it You’ll backlog. because see awards award and so. less, award all to quarter always are you after the me me continue we’re kind of showing fear - Look, I awards growing awards execute

don’t the look my April growth. to to downside upside Sheila. see for FYXX going I really step organic solve at look, EITaaS, go crystal in that the know for that us to ball, for up think I as more time frame. I next I we’ll On than we to see decision, we’re like how the but being

for you The period. in to to On because going program is our that the not out tell award, a continually we’re discuss call it everybody customer. the we’re I can name other there, it protest of behalf going our is set, very that or sensitive direct customer IC cyber-related program. that

to for customer action. the corrective waiting We’re take

we is may Force go period, we mentioned count something we out, for month the know when We’re protest we’re revenue we early. as I from a before on when so always but job XXX-day hear awards, these too to planning large peak Air on can this don’t hopeful so job, XX we that

had from with years investment else three, you two, we risk more need. sort to of we’ve both I want to we’re okay their value contract XXXX, really technology but it is cases. there. what do continually the strong, award these the benefit--we’ll showing - about Those possible, ahead and through the talk we were are to find four right like a risk. It wins. after strategic in do best customer before having technological of can more ahead the lower awards get investing the We them, We more awards anybody really of these these threats done here’s cleared shape will sees solution customers protest solution. XXXX going period, Both of leading of how in folks, where the bring takes art of go, again

do All through like ’XX these I is I all, how our that setting in find way up, we’ll and believe protests.

Operator

Tobey. Our next Summer comes Please ahead, go Tobey Truist from question with Securities.

Tobey Summer

you. Thank

growth does growth rates company market perhaps spending into of from tap substantially. You can mentioned addressable the headline the your that compare of the How differ increasing this and year’s budget?

John Mengucci

inflation we growth been if out we things it’s Tobey, to don’t could take about XX% so then a that, budget. there’s throw in talk Yes, remember I We right, that have do.

growth at the ’XX. growth year, that XX looking that some the grow XX, a five-year called are budget, to says ’XX, work this in through XX% somewhere in all between we’ve CAGR but done is that think faster XX% always Overall and going range. least budgets given We’re I in market we’ve and at that any

we been know, focused, how done we the we if able like at we been all drive company. streams, ourselves of there total are some have shareholder have gotten - then $XXX is and would this I hadn’t to if ourselves it hadn’t value. these That you not have into You a had we a market market, done measure in that what I we $X.X any, if is if initial addressable no strategically and do funding we’re well hadn’t don’t acquisitions, addressable total billion acquisitions marketplace know, billion, positioned

are holds. so holding come we budgets from you to where not enough times the in tell a $XXX place well from, like continue up a A I is for we’re level, it by what addressable macro two strategy almost is and us Look, was to XXXX, future billion here market can we grow all accident. what

Tobey Summer

there the plague for in kind change. and burdensome and effect Just the to you Thanks. industry do possibility if change the environment? can chronic of anything Is procurement industry of you or the protests see that terms wondering

John Mengucci

reason. not, in the years know time, now. Tobey, it’s we’re days I’ve I happy provides XX been Yes, we’re left going versus come if for that to all more market you and the to and for this not it whether clearly, it right days, the long just the could There’s to that margin, side days right. on that’s in on win process path, this in market in. will I’m guess federal good revenue government five - you we we’re almost see job and us, protest next say I be a we would Look, the helpful depends The pops and but

on, can that what control you’ve control win and best when me our revenue, we as recognize a that’s early do, in right, be times, factors stay is quarter and announced if that gets other of jobs The can it before we much pretty heard may stable. can we lot many recognize fourth like to we we first say EITaaS work we have it the--in and quarter, is we

paying well this On a app. the are, can through. is needs on focused, process strategically more people something would whether customer. be security what we they’re just business with XX we work We the flipside to government, of about that, protest million click know not I doing worried national the much I’m have and federal say

the out day, to and all to be and of eventually to move get all forward. on these at work we the end patient be shareholders have just have things and We our themselves reasonable it, you that

Tobey. Thanks

Operator

Louie. go comes question Louie ahead, from Please DiPalma Our William Blair. next with

Louie DiPalma

Good morning Dan George. John, and Jeff,

John Mengucci

Good morning Louie.

Louie DiPalma

loitering counter Are to you SkyTracker reply to ramp the you follow-up, the a to question, and that expected has orders John, As munitions. referenced? as systems Ukraine develop your employed modifications in of future wide UAS a to software range Seth’s

John Mengucci

fight. that of to all have--we I are we’re in actually don’t Yes, an about lot bit eighth the technology that would--I what very a also the avenues about there. EW, be Ukraine counter-UAS to training already there issues relevant going warn know. I deep some be little operations folks are and we as and going of support, in There’s a have Look, many and so think Ukraine are of to are there our for issues. Ukraine. as are can analysts, your in what and everybody our to logistics other government in our There’s intel federal going seeing we a of Look, to going expertise relevant munition be as laden talk the rightly that, quite capabilities All to you for what money, what’s see time. decision side about--a on let’s but we long export. supplemental in the Louie, is of makes is on

about seeing know, talking they’re in looking expanding defense all and hearing what’s globe, much Ukraine. around budgets as at what and allies their just hearing seeing, we’re you the all going as you’re What -

technology delivering our of countries. the Eyes some to Five already We’re

you going far across Eastern interested line. as allies, Louie our they’re in systems, to European We’re counter-UAS increasingly and SkyTracker look methods beyond mentioned, the our

discussions. defense those As to going involved increase spending, they in we’re be

their still total to it’s up can our It’s potential better look, Every to future. early what requirements addressable market, come understanding there specifics, but too out already discuss time grow do in we We’re us. things are. another for market returns the

from do B think potential long systems to are looking including our of that so line some a and there. at line, non-kinetic counter-UAS, Korean manned level moving more that is our got mitigation line, SkyTracker our growth kinetics yes, versus I So we’ve BEAM up solutions what tech next, we’re and

Louie DiPalma

having won an obviously the that to Wave Wave with though X does the ones to you two? Are forward, also Great. two Force’s associated at as of with your the Air It winning that program? other potentially a X April. Enterprise other put IT as potentially there’s big, moving and you Service Wave said is the either are contention appears You probably you X, advantage in Wave and but close X for work program

John Mengucci

is practice not on our commenting aren’t stick to that. awarded. Wave I’m build long Louie, Yes the going thanks. that to tried X of things and Yes, of true network

well X out. how plays have we’ll positioned Wave I that we very were on and think see to

Operator

have all back the remarks. the turn today, questions are closing for Those so we I’ll Mengucci call John to for

John Mengucci

Thanks thank call. help today’s Emily, your on for you and

healthy, in today’s MacLauchlan, participation. so are We’d stay webcast after really call. many everyone and like or best you you their all the have thank families. to and who of listened that to George Dan know available questions, Please your dialed all my Leckburg Price and will We to for follow-on Jeff

you our great have and that a all Emily, day. Thank call. concludes

Operator

today. Thank call. This you our joining us everyone for concludes

lines. now may You your disconnect

CACI International (CACI) 26 Jan 232023 Q2 Earnings call transcript