Annual revenue of $5.7 billion, +15%
year-over-year
Annual net income of $321.5 million and
Diluted EPS of $12.61, both +21% year-over-year
Annual cash from operations of $518.7
million
Record annual contract awards of $11.6
billion, +13% year-over-year
Company expects continued organic growth,
margin expansion, and strong cash flow in Fiscal Year
2021
CACI International Inc (NYSE: CACI), a leading provider of
expertise and technology to government enterprise and mission
customers, announced results today for its fiscal fourth quarter
and full year ended June 30, 2020.
CEO Commentary and Outlook
John Mengucci, CACI’s President and CEO, said, “Our fourth
quarter performance was a strong finish to a great Fiscal Year
2020. Amid the headwinds from COVID-19, we achieved our financial
commitments, delivering accelerating organic revenue growth, margin
expansion, robust cash flow, and double-digit growth in contract
awards and backlog. This strong performance is a testament to the
resiliency of our company and the commitment of our employees. We
are confident that we will continue to bring value to our customers
and shareholders. Our winning strategy and record performance in
Fiscal Year 2020 positions CACI for continued success in Fiscal
Year 2021 and beyond.”
Fourth Quarter Results
(in millions except per-share data)
Q4, FY20
Q4, FY19
% Change
Revenue
$1,495.6
$1,373.9
8.9%
Operating income
$133.7
$81.1
64.8%
Net income
$93.7
$50.0
87.3%
Diluted earnings per share
$3.68
$1.96
87.2%
Net cash provided by operating activities
excluding MARPA1
$154.4
$109.9
40.4%
Adjusted earnings before interest, taxes,
depreciation and amortization (EBITDA), a non-GAAP measure2
$162.9
$109.5
48.8%
Days sales outstanding (DSO)3
57
64
(1)
Fourth quarter FY20 and fourth quarter
FY19 net cash provided by operating activities exclude CACI’s
Master Accounts Receivable Purchase Agreement (MARPA). For more
details, see the Reconciliation of Net Cash Provided by Operating
Activities to Net Cash Provided by Operating Activities Excluding
MARPA on page 10 of this release.
(2)
See the Reconciliation of Net Income to
Adjusted Earnings Before Interest, Taxes, Depreciation and
Amortization (EBITDA) on page 10 of this release.
(3)
The DSO calculations for fourth quarter
FY20 and fourth quarter FY19 exclude the impact of the Company’s
MARPA, which was 9 days and 10 days, respectively.
Revenue in Q4 FY20 increased 9% year-over-year as reported and
8% organically. The year-over-year increase in operating income was
driven by higher revenue, especially in our technology business.
The year-over-year increase in net income was due to higher
operating income and lower interest expense, partially offset by a
higher effective tax rate. The increase in cash from operations,
excluding MARPA, was driven by higher net income and lower DSO as a
result of enhanced billing and collections processes.
Fourth Quarter Awards
Contract awards in Q4 FY20 totaled $3.4 billion, with over 55%
for new business to CACI. For the full year, contract awards
totaled $11.6 billion, with over 55% for new business to CACI.
These awards exclude ceiling values of multi-award, indefinite
delivery, indefinite quantity (IDIQ) contracts. Some notable awards
during the quarter were:
- A single-award IDIQ contract to provide mission technology,
including transport and cybersecurity services to the National
Geospatial-Intelligence Agency (NGA). The single award IDIQ has a
base period of five years and five 1-year award term periods with a
ceiling of $1.5 billion. This award is the largest in CACI’s
history.
- A five-year, single-award task order, with a ceiling value of
more than $465 million, to provide mission expertise and technology
to the U.S. Army Combat Capabilities Development Command's (CCDC)
Command, Control, Computers, Communications, Cyber, Intelligence,
Surveillance, and Reconnaissance (C5ISR) center including research
and development on cryptographic modernization, information
security, and tactical network protection.
- A five-year, single-award task order, with a ceiling value of
$112 million, to provide mission expertise and technology to the
U.S. Army's Systems Engineering, Architecture, Modeling and
Simulations (SEAMS) Division including research and development on
modeling and simulation, analysis, engineering, networking, and
experimentation support.
- A five-year task order, with a ceiling value of $63 million, to
provide enterprise expertise and technology to upgrade U.S. Army
infrastructure across the U.S. Indo-Pacific Command (INDOPACOM),
including continued enterprise support for the relocation of the
Army's garrison at Yongsan, Seoul, South Korea to Camp
Humphreys.
- An IDIQ contract by the U.S. Air Force Life Cycle Management
Center/Chief Architect Integration Office for the maturation,
demonstration and proliferation of capability across platforms and
domains, leveraging open systems design, modern software and
algorithm development in order to enable Joint All Domain Command
and Control (JADC2).
- A five-year, single-award task order, with a ceiling value of
$128 million, to provide mission expertise on precision targeting
and visual augmentation systems.
Total backlog as of June 30, 2020 was $21.6 billion compared
with $16.9 billion a year ago, an increase of 28 percent. Funded
backlog as of June 30, 2020 was $2.8 billion compared with $2.9
billion a year ago.
Fourth Quarter Highlights
- The U.S. Army’s Joint Counter-Small Unmanned Aircraft Systems
(C-sUAS) Office (JCO) has selected CACI’s CORIAN™ system to protect
DoD personnel and facilities against threats from unmanned aircraft
systems/drones.
- CACI has partnered with RigNet, Inc. to add new capabilities to
CACI’s secure mobile communications application for U.S. Government
agencies, SteelBox™, which is the first secure and certified mobile
communications app that enables government officials to use
smartphones to text and make calls without fear of eavesdropping or
data compromise. With the partnership of RigNet, CACI’s SteelBox
now also has the ability to “Break Out” and connect securely even
with users who don’t have the app.
- CACI has been named a Top Workplace in Washington, D.C. by The
Washington Post for the sixth consecutive year, and in New Jersey
by NJ.com for the first time. The rankings are based on employee
responses evaluating CACI’s leadership, culture, and benefits.
- CACI was named to the Best of the Best Top Veteran-Friendly
Companies list by U.S. Veterans Magazine. The magazine polls
Fortune 1000 companies and evaluates respondents based on the
opportunities the companies offer for veteran employees.
- WashingtonExec named Steve Tolbert, CACI Executive Vice
President of Business Systems, to its Top 25 DOD Execs to Watch in
2020 list, and Kevin McNeill, CACI Senior Vice President of
Cyberspace Solutions, to its Top 25 Cyber Execs to Watch in 2020
list.
Twelve Months Results
(in millions except per-share data)
Twelve Months, FY20
Twelve Months, FY19
% Change
Revenue
$5,720.0
$4,986.3
14.7%
Operating income
$457.7
$377.9
21.1%
Net income
$321.5
$265.6
21.0%
Diluted earnings per share
$12.61
$10.46
20.6%
Net cash provided by operating activities
excluding MARPA1
$511.2
$362.8
40.9%
Adjusted earnings before interest, taxes,
depreciation and amortization (EBITDA), a non-GAAP measure2
$573.6
$467.5
22.7%
(1)
FY20 and FY19 net cash provided by
operating activities exclude CACI’s Master Accounts Receivable
Purchase Agreement (MARPA). For more details, see the
Reconciliation of Net Cash Provided by Operating Activities to Net
Cash Provided by Operating Activities Excluding MARPA on page 10 of
this release.
(2)
See the Reconciliation of Net Income to
Adjusted Earnings Before Interest, Taxes, Depreciation and
Amortization (EBITDA) on page 10 of this release.
Revenue in FY20 increased 15% year-over-year as reported and 8%
organically. The year-over-year increase in operating income was
driven by the contribution from higher margin acquisitions and
organic margin expansion. The year-over-year increase in net income
was due to higher operating income, partially offset by higher
interest expense and a higher effective tax rate. The increase in
cash from operations, excluding MARPA, was driven by higher net
income and lower DSO as a result of enhanced billing and
collections processes.
FY21 Guidance
The table below summarizes our FY21 guidance and represents our
views as of August 12, 2020. Our FY21 guidance includes the
acquisition of Ascent Vision Technologies, LLC (AVT) announced
today. In addition, our FY21 guidance assumes continued impact from
COVID-19 through December 31, 2020 and that support currently
provided under Section 3610 of the Coronavirus Aid, Relief, and
Economic Security Act (CARES Act) is extended through that
period.
(In millions except for earnings per
share)
Fiscal Year 2021
Guidance
Revenue
$6,000 - $6,200
Net income
$347 - $367
Diluted earnings per share
$13.50 - $14.28
Diluted weighted average shares
25.7
Net cash provided by operating
activities
at least $580
Conference Call Information
We have scheduled a conference call for 8:30 AM Eastern Time
Thursday, August 13, 2020 during which members of our senior
management will be making a brief presentation focusing on fourth
quarter and full year results and operating trends, followed by a
question-and-answer session. You can listen to the webcast and view
the accompanying exhibits on CACI’s investor relations website at
http://investor.caci.com/events/default.aspx at the scheduled time.
A replay of the call will also be available on CACI’s investor
relations website at http://investor.caci.com/.
About CACI
CACI’s 23,000 talented employees are vigilant in providing the
unique expertise and distinctive technology that address our
customers’ greatest enterprise and mission challenges. Our culture
of good character, innovation, and excellence drives our success
and earns us recognition as a Fortune World’s Most Admired Company.
As a member of the Fortune 1000 Largest Companies, the Russell 1000
Index, and the S&P MidCap 400 Index, we consistently deliver
strong shareholder value. Visit us at www.caci.com.
There are statements made herein that do not address historical
facts and, therefore, could be interpreted to be forward-looking
statements as that term is defined in the Private Securities
Litigation Reform Act of 1995. Such statements are subject to risk
factors that could cause actual results to be materially different
from anticipated results. These risk factors include, but are not
limited to, the following: our reliance on U.S. government
contracts, which includes general risk around the government
contract procurement process (such as bid protest, small business
set asides, loss of work due to organizational conflicts of
interest, etc.) and termination risks; significant delays or
reductions in appropriations for our programs and broader changes
in U.S. government funding and spending patterns; legislation that
amends or changes discretionary spending levels or budget
priorities, such as for homeland security or to address global
pandemics like COVID-19; legal, regulatory, and political change
from successive presidential administrations that could result in
economic uncertainty; changes in U.S. federal agencies, current
agreements with other nations, foreign events, or any other events
which may affect the global economy, including the impact of global
pandemics like COVID-19; the results of government audits and
reviews conducted by the Defense Contract Audit Agency, the Defense
Contract Management Agency, or other governmental entities with
cognizant oversight; competitive factors such as pricing pressures
and/or competition to hire and retain employees (particularly those
with security clearances); failure to achieve contract awards in
connection with re-competes for present business and/or competition
for new business; regional and national economic conditions in the
United States and globally, including but not limited to: terrorist
activities or war, changes in interest rates, currency
fluctuations, significant fluctuations in the equity markets, and
market speculation regarding our continued independence; our
ability to meet contractual performance obligations, including
technologically complex obligations dependent on factors not wholly
within our control; limited access to certain facilities required
for us to perform our work, including during a global pandemic like
COVID-19; changes in tax law, the interpretation of associated
rules and regulations, or any other events impacting our effective
tax rate; changes in technology; the potential impact of the
announcement or consummation of a proposed transaction and our
ability to successfully integrate the operations of our recent and
any future acquisitions; our ability to achieve the objectives of
near term or long-term business plans; the effects of health
epidemics, pandemics and similar outbreaks may have material
adverse effects on our business, financial position, results of
operations and/or cash flows; and other risks described in our
Securities and Exchange Commission filings.
CACI-Earnings Release
Selected Financial Data CACI International Inc
Condensed Consolidated Statements of Operations (Unaudited)
(Amounts in thousands, except per share amounts)
Quarter
Ended Twelve Months Ended 6/30/2020
6/30/2019 % Change
6/30/2020 6/30/2019 %
Change Revenue
$
1,495,581
$
1,373,878
8.9
%
$
5,720,042
$
4,986,341
14.7
%
Costs of revenue Direct costs
981,678
906,420
8.3
%
3,719,056
3,304,053
12.6
%
Indirect costs and selling expenses
351,427
359,282
-2.2
%
1,432,602
1,218,544
17.6
%
Depreciation and amortization
28,800
27,080
6.4
%
110,688
85,877
28.9
%
Total costs of revenue
1,361,905
1,292,782
5.3
%
5,262,346
4,608,474
14.2
%
Operating income
133,676
81,096
64.8
%
457,696
377,867
21.1
%
Interest expense and other, net
10,447
18,185
-42.6
%
56,059
49,958
12.2
%
Income before income taxes
123,229
62,911
95.9
%
401,637
327,909
22.5
%
Income taxes
29,498
12,881
129.0
%
80,157
62,305
28.7
%
Net income
$
93,731
$
50,030
87.3
%
$
321,480
$
265,604
21.0
%
Basic earnings per share
$
3.74
$
2.01
85.8
%
$
12.84
$
10.70
20.1
%
Diluted earnings per share
$
3.68
$
1.96
87.2
%
$
12.61
$
10.46
20.6
%
Weighted average shares used in per share computations:
Basic
25,089
24,875
25,031
24,833
Diluted
25,496
25,472
25,485
25,395
Statement of Operations Data (Unaudited) Quarter
Ended Twelve Months Ended 6/30/2020
6/30/2019 6/30/2020 6/30/2019 % Change %
Change Operating income margin
8.9
%
5.9
%
8.0
%
7.6
%
Tax rate
23.9
%
20.5
%
20.0
%
19.0
%
Net income margin
6.3
%
3.6
%
5.6
%
5.3
%
Adjusted EBITDA*
$
162,940
$
109,487
48.8
%
$
573,585
$
467,470
22.7
%
Adjusted EBITDA Margin
10.9
%
8.0
%
10.0
%
9.4
%
* See Reconciliation of Net Income to Adjusted Earnings
before Interest, Taxes, Depreciation and Amortization on page 10
Selected Financial Data (Continued) CACI
International Inc Condensed Consolidated Balance Sheets
(Unaudited) (Amounts in thousands)
6/30/2020
6/30/2019 ASSETS: Current assets Cash and cash
equivalents
$
107,236
$
72,028
Accounts receivable, net
841,227
869,840
Prepaid expenses and other current assets
137,423
89,652
Total current assets
1,085,886
1,031,520
Goodwill and intangible assets, net
3,813,995
3,772,194
Property and equipment, net
170,521
149,676
Operating lease right-of-use assets
330,767
0
Other long-term assets
141,303
133,453
Total assets
$
5,542,472
$
5,086,843
LIABILITIES AND SHAREHOLDERS' EQUITY: Current
liabilities Current portion of long-term debt
$
46,920
$
46,920
Accounts payable
89,961
118,917
Accrued compensation and benefits
338,760
290,274
Other accrued expenses and current liabilities
293,518
235,611
Total current liabilities
769,159
691,722
Long-term debt, net of current portion
1,357,519
1,618,093
Other long-term liabilities
754,484
405,562
Total liabilities
2,881,162
2,715,377
Shareholders' equity
2,661,310
2,371,466
Total liabilities and shareholders' equity
$
5,542,472
$
5,086,843
Selected Financial Data (Continued) CACI
International Inc Condensed Consolidated Statements of Cash
Flows (Unaudited) (Amounts in thousands)
Twelve
Months Ended
6/30/2020
6/30/2019
CASH FLOWS FROM OPERATING ACTIVITIES: Net income
$
321,480
$
265,604
Reconciliation of net income to net cash provided by
operatingactivities: Depreciation and amortization
110,688
85,877
Non-cash lease expense
73,248
-
Amortization of deferred financing costs
2,346
2,406
Loss on extinguishment of debt
-
363
Loss on disposal of assets
190
70
Stock-based compensation expense
29,302
25,272
Deferred income taxes
17,874
(1,009
)
Changes in operating assets and liabilities, net of effect of
businessacquisitions: Accounts receivable, net
34,550
96,754
Prepaid expenses and other assets
(38,432
)
(5,372
)
Accounts payable and other accrued expenses
(24,406
)
70,692
Accrued compensation and benefits
46,769
8,387
Income taxes payable and receivable
(25,118
)
1,119
Operating lease liabilities
(74,928
)
-
Deferred rent
-
(538
)
Long-term liabilities
45,142
5,672
Net cash provided by operating activities
518,705
555,297
CASH FLOWS FROM INVESTING ACTIVITIES: Capital
expenditures
(72,303
)
(47,902
)
Cash paid for business acquisitions, net of cash acquired
(106,226
)
(1,082,809
)
Other
-
2,729
Net cash used in investing activities
(178,529
)
(1,127,982
)
CASH FLOWS FROM FINANCING ACTIVITIES: Net borrowings
(payments) under credit facilities
(262,920
)
599,903
Payment of contingent consideration
(8,700
)
(616
)
Proceeds from employee stock purchase plans
7,432
5,702
Repurchases of common stock
(7,806
)
(5,838
)
Payment of taxes for equity transactions
(31,400
)
(19,595
)
Net cash provided by (used in) financing activities
(303,394
)
579,556
Effect of exchange rate changes on cash and cash equivalents
(1,574
)
(1,037
)
Net increase in cash and cash equivalents
35,208
5,834
Cash and cash equivalents, beginning of period
72,028
66,194
Cash and cash equivalents, end of period
$
107,236
$
72,028
Selected Financial Data (Continued) Revenue by
Customer Type (Unaudited) Quarter Ended (dollars in
thousands)
6/30/2020 6/30/2019 $ Change %
Change Department of Defense
$
1,033,998
69.1
%
$
949,760
69.1
%
$
84,238
8.9
%
Federal Civilian Agencies
400,459
26.8
%
365,190
26.6
%
35,269
9.7
%
Commercial and other
61,124
4.1
%
58,928
4.3
%
2,196
3.7
%
Total
$
1,495,581
100.0
%
$
1,373,878
100.0
%
$
121,703
8.9
%
Twelve Months Ended (dollars in thousands)
6/30/2020 6/30/2019 $ Change % Change
Department of Defense
$
3,999,261
69.9
%
$
3,489,854
70.0
%
$
509,407
14.6
%
Federal Civilian Agencies
1,467,801
25.7
%
1,263,681
25.3
%
204,120
16.2
%
Commercial and other
252,980
4.4
%
232,806
4.7
%
20,174
8.7
%
Total
$
5,720,042
100.0
%
$
4,986,341
100.0
%
$
733,701
14.7
%
Revenue by Contract Type (Unaudited) Quarter
Ended (dollars in thousands)
6/30/2020 6/30/2019
$ Change % Change Cost reimbursable
$
855,816
57.2
%
$
761,088
55.4
%
$
94,728
12.4
%
Fixed price
416,896
27.9
%
410,174
29.9
%
6,722
1.6
%
Time and materials
222,869
14.9
%
202,616
14.7
%
20,253
10.0
%
Total
$
1,495,581
100.0
%
$
1,373,878
100.0
%
$
121,703
8.9
%
Twelve Months Ended (dollars in thousands)
6/30/2020 6/30/2019 $ Change % Change
Cost reimbursable
$
3,274,707
57.2
%
$
2,764,291
55.4
%
$
510,416
18.5
%
Fixed price
1,629,475
28.5
%
1,465,559
29.4
%
163,916
11.2
%
Time and materials
815,860
14.3
%
756,491
15.2
%
59,369
7.8
%
Total
$
5,720,042
100.0
%
$
4,986,341
100.0
%
$
733,701
14.7
%
Revenue Generated as a Prime versus Subcontractor
(Unaudited) Quarter Ended (dollars in thousands)
6/30/2020 6/30/2019 $ Change % Change
Prime
$
1,371,739
91.7
%
$
1,250,903
91.0
%
$
120,836
9.7
%
Subcontractor
123,842
8.3
%
122,975
9.0
%
867
0.7
%
Total
$
1,495,581
100.0
%
$
1,373,878
100.0
%
$
121,703
8.9
%
Twelve Months Ended (dollars in thousands)
6/30/2020 6/30/2019 $ Change % Change
Prime
$
5,221,300
91.3
%
$
4,586,330
92.0
%
$
634,970
13.9
%
Subcontractor
498,742
8.7
%
400,011
8.0
%
98,731
24.7
%
Total
$
5,720,042
100.0
%
$
4,986,341
100.0
%
$
733,701
14.7
%
Contract Awards Received (Unaudited)
Quarter Ended (dollars in thousands)
6/30/2020
6/30/2019 $ Change % Change Contract Awards
$
3,387,343
$
3,743,062
$
(355,719
)
-9.5
%
Twelve Months Ended (dollars in thousands)
6/30/2020 6/30/2019 $ Change % Change
Contract Awards
$
11,564,085
$
10,255,414
$
1,308,671
12.8
%
Reconciliation of Net Cash Provided by
Operating Activities to Net Cash Provided by Operating Activities
Excluding MARPA Facility (Unaudited)
The Company defines net cash provided by operating activities
excluding CACI’s Master Accounts Receivable Purchase Agreement
(MARPA) as net cash provided by operating activities calculated in
accordance with GAAP, adjusted to exclude net cash received from
CACI’s MARPA for the sale of certain designated eligible U.S.
government receivables. Under the MARPA, the Company can sell
eligible receivables, including certain billed and unbilled
receivables up to a maximum amount of $200.0 million. The Company
provides net cash provided by operating activities excluding MARPA
to allow investors to more easily compare current period results to
prior period results and to results of our peers. This non-GAAP
measure should not be considered in isolation or as a substitute
for performance measures prepared in accordance with GAAP.
QuarterEnded QuarterEnded TwelveMonths Ended
TwelveMonthsEnded (dollars in thousands)
6/30/2020
6/30/2019 6/30/2020 6/30/2019 Net cash
provided by operating activities
$
160,880
$
102,456
$
518,705
$
555,297
Cash used (provided) by MARPA
(6,501
)
7,473
(7,473
)
(192,527
)
Net cash provided by operating activities excluding MARPA
$
154,379
$
109,929
$
511,232
$
362,770
Reconciliation of Net Income to Adjusted
Earnings Before Interest, Taxes, Depreciation and Amortization
(EBITDA) (Unaudited)
The Company views Adjusted EBITDA and Adjusted EBITDA margin,
both of which are defined as non-GAAP measures, as important
indicators of performance, consistent with the manner in which
management measures and forecasts the Company’s performance.
Adjusted EBITDA is a commonly used non-GAAP measure when comparing
our results with those of other companies. We define Adjusted
EBITDA as GAAP net income plus net interest expense, income taxes,
depreciation and amortization expense, including depreciation
within direct costs, and earnout adjustments. We consider Adjusted
EBITDA to be a useful metric for management and investors to
evaluate and compare the ongoing operating performance of our
business on a consistent basis across reporting periods, as it
eliminates the effect of non-cash items such as depreciation of
tangible assets, amortization of intangible assets primarily
recognized in business combinations, as well as the effect of
earnout gains and losses, which we do not believe are indicative of
our core operating performance. Adjusted EBITDA margin is adjusted
EBITDA divided by revenue. These non-GAAP measures should not be
considered in isolation or as a substitute for performance measures
prepared in accordance with GAAP.
Quarter Ended Twelve Months Ended (dollars in
thousands)
6/30/2020 6/30/2019 % Change
6/30/2020 6/30/2019 % Change Net income
$
93,731
$
50,030
87.3
%
$
321,480
$
265,604
21.0
%
Plus: Income taxes
29,498
12,881
129.0
%
80,157
62,305
28.7
%
Interest income and expense, net
10,447
18,185
-42.6
%
56,059
49,958
12.2
%
Depreciation and amortization expense, including depreciation
within direct costs
29,264
27,691
5.7
%
112,889
88,603
27.4
%
Earnout adjustments
-
700
-100.0
%
3,000
1,000
200.0
%
Adjusted EBITDA
$
162,940
$
109,487
48.8
%
$
573,585
$
467,470
22.7
%
Quarter Ended Twelve Months Ended (dollars in
thousands)
6/30/2020 6/30/2019 % Change
6/30/2020 6/30/2019 % Change Revenue, as
reported
$
1,495,581
$
1,373,878
8.9
%
$
5,720,042
$
4,986,341
14.7
%
Adjusted EBITDA
162,940
109,487
48.8
%
573,585
467,470
22.7
%
Adjusted EBITDA margin
10.9
%
8.0
%
10.0
%
9.4
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200812005688/en/
Corporate Communications and Media: Jody Brown, Executive Vice
President, Public Relations (703) 841-7801, jbrown@caci.com
Investor Relations: Dan Leckburg, Senior Vice President,
Investor Relations (703) 841-7666, dleckburg@caci.com
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