CACI Reports Results for Its Fiscal 2023 Third Quarter

Revenues of $1.7 billion, 10% YoY growth

Net income of $100.7 million and Diluted EPS of $4.33

Adjusted EBITDA of $191.8 million and Adjusted EBITDA Margin of 11.0%

Adjusted net income of $114.5 million and Adjusted diluted EPS of $4.92

Raising Fiscal Year 2023 guidance for Revenue, Adjusted Net Income, and Adjusted EPS

CACI International Inc (NYSE: CACI), a leading provider of expertise and technology to government enterprise and mission customers, announced results today for its fiscal third quarter ended March 31, 2023.

John Mengucci, CACI President and Chief Executive Officer, said, “Our third quarter results demonstrate the continued successful execution of our strategy. We delivered double-digit revenue growth, strong profitability, and solid cash flow. CACI is winning and executing in the marketplace with differentiated Technology and Expertise, growing our backlog, and pursuing a strong pipeline of additional opportunities. Given our year-to-date performance and strong position, we are raising our fiscal year 2023 revenue and earnings guidance.”

Third Quarter Results

 

Three Months Ended

(in millions, except earnings per share and DSO)

3/31/2023

 

3/31/2022

 

% Change

Revenues

$

1,744.3

 

$

1,584.0

 

10.1

%

Income from operations

$

155.0

 

$

125.4

 

23.7

%

Net income

$

100.7

 

$

95.4

 

5.6

%

Adjusted net income, a non-GAAP measure1

$

114.5

 

$

109.6

 

4.4

%

Diluted earnings per share

$

4.33

 

$

4.04

 

7.2

%

Adjusted diluted earnings per share, a non-GAAP measure1

$

4.92

 

$

4.64

 

6.0

%

Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), a non-GAAP measure1

$

191.8

 

$

161.5

 

18.8

%

Net cash provided by operating activities excluding MARPA1

$

56.1

 

$

314.1

 

-82.1

%

Free cash flow, a non-GAAP measure1

$

41.0

 

$

296.9

 

-86.2

%

Days sales outstanding (DSO)2

 

53

 

 

51

 

 

(1)

 

This non-GAAP measure should not be considered in isolation or as a substitute for measures prepared in accordance with GAAP. For additional information regarding this non-GAAP measure, see the related explanation and reconciliation to the GAAP measure included below in this release.

(2)   The DSO calculations for three months ended March 31, 2023 and 2022 exclude the impact of the Company’s Master Accounts Receivable Purchase Agreement (MARPA), which was 6 days and 8 days, respectively.

Revenues in the third quarter of fiscal year 2023 increased 10 percent year-over-year, driven entirely by organic growth. The increase in income from operations was driven by higher revenue and gross profit. Diluted earnings per share and adjusted diluted earnings per share increased due to higher operating income, partially offset by higher interest expense and a higher tax rate. Net cash provided by operating activities excluding MARPA and free cash flow decreased primarily as a result of tax benefits from method changes in the year ago quarter.

Third Quarter Contract Awards

Contract awards in the third quarter totaled $1.1 billion, with approximately 50 percent for new business to CACI. Awards exclude ceiling values of multi-award, indefinite delivery, indefinite quantity (IDIQ) contracts. Some notable awards during the quarter were:

  • CACI was awarded a $100 million extension to continue mission software development support for the Air Force Distributed Common Ground System (DCGS) program. DCGS is the Air Force’s primary intelligence, surveillance and reconnaissance (ISR) planning and direction, collection, processing and exploitation, analysis and dissemination (PCPAD) weapon system. The system employs a global communications architecture that connects multiple intelligence platforms and sensors. The contract extension allows CACI to continue to enhance and modernize system capabilities with tools that enable warfighters to process and disseminate intelligence data.
  • CACI was awarded a $46 million single-award task order to provide mission expertise and analysis in science, technology, engineering, and mathematics (STEM) categories to support the Department of Defense (DoD) and Intelligence Community (IC).

Total backlog as of March 31, 2023 was $25.3 billion compared with $23.5 billion a year ago, an increase of 8 percent. Funded backlog as of March 31, 2023 was $3.4 billion compared with $2.8 billion a year ago, an increase of 21 percent.

Additional Highlights

  • CACI was awarded Top Workplace USA 2023 by employee engagement technology partner Energage, LLC for the third consecutive year. Honorees are chosen based solely on employee feedback gathered through a confidential employee engagement survey, issued by Energage. Results are calculated by comparing the survey's research-based statements, that evaluate factors such as leadership, culture, and benefits that are proven to predict high performance, against industry benchmarks.
  • CACI was recognized by Fortune magazine as a World's Most Admired Companies for 2023 commemorating CACI's 6th consecutive year on the list and its 12th appearance since the list's inception. CACI received top rankings in Fortune's survey criteria for the quality of its technology and expertise offerings and management. CACI was also recognized for its long-term investment value. CACI was chosen from among approximately 1,500 global companies considered by Fortune.
  • Thirteen CACI employees were honored for their excellence in science, technology, engineering, and math (STEM) at the 37th annual Global Competitiveness Conference for the Black Engineer of the Year Awards (BEYA), including one who accepted the coveted Community Service Award. CACI is a supporter of BEYA's mission and a corporate sponsor of the conference. As part of its diversity and inclusion efforts, CACI partners with BEYA to help expand the company's networking, recruitment, and career development opportunities.
  • CACI signed a five-year cooperative research & development agreement (CRADA) with the U.S. Army Space and Missile Defense Technical Center (USASMDC-TC) to further the development of advanced payload technologies, space sensor applications, and resilient Positioning, Navigation & Timing (PNT). The payload includes two software-defined technology applications that enable precise, resilient PNT and tactical signals intelligence (TacISR) capabilities while in low earth orbit (LEO).
  • CACI successfully demonstrated its Spectral Sieve and Pit Viper low-size, weight, and power (SWaP) intelligence, surveillance, and reconnaissance (ISR) and electronic warfare (EW) technologies for small to medium unmanned aircraft systems (UAS) at the U.S. Army's Project Convergence Technology Gateway. CACI delivered real-time situational awareness and targeting information for commanders through direction-finding, geolocation, and active cyber effects.
  • The Intelligence and National Security Alliance (INSA) named Todd Probert, CACI President of National Security and Innovative Solutions, to its Board of Directors. Probert will serve a three-year term, effective January 1, 2023. INSA is the leading nonpartisan, nonprofit forum for driving public-private partnerships to advance intelligence and national security priorities.

Fiscal Year 2023 Guidance

The table below summarizes our fiscal year 2023 guidance and represents our views as of April 26, 2023. Free cash flow guidance reflects the delay of a $40 million tax refund related to the previously-disclosed tax method changes.

(in millions, except earnings per share)

Fiscal Year 2023

Current Guidance

 

Prior Guidance

Revenues

$6,675 - $6,750

 

$6,475 - $6,675

Adjusted net income, a non-GAAP measure1

$425 - $440

 

$420 - $440

Adjusted diluted earnings per share, a non-GAAP measure1

$18.09 - $18.72

 

$17.65 - $18.49

Diluted weighted average shares

23.5

 

23.8

Free cash flow, a non-GAAP measure2

at least $280

 

at least $320

(1)

 

Adjusted net income and adjusted diluted earnings per share are defined as GAAP net income and GAAP diluted EPS, respectively, excluding intangible amortization expense and the related tax impact. This non-GAAP measure should not be considered in isolation or as a substitute for measures prepared in accordance with GAAP. For additional information regarding this non-GAAP measure, see the related explanation and reconciliation to the GAAP measure included below in this release.

(2)

 

Free cash flow is defined as net cash provided by operating activities excluding MARPA, less payments for capital expenditures (capex). This non-GAAP measure should not be considered in isolation or as a substitute for measures prepared in accordance with GAAP. Fiscal year 2023 free cash flow guidance assumes $95 million in tax payments related to Section 174 of the Tax Cuts and Jobs Act of 2017. For additional information regarding this non-GAAP measure, see the related explanation and reconciliation to the GAAP measure included below in this release.

Conference Call Information

We have scheduled a conference call for 8:00 AM Eastern Time Thursday, April 27, 2023 during which members of our senior management will be making a brief presentation focusing on third quarter 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 approximately 22,000 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 International Inc

Condensed Consolidated Statements of Operations (Unaudited)

(in thousands, except per share data)

 

Three Months Ended

 

Nine Months Ended

 

3/31/2023

 

3/31/2022

 

% Change

 

3/31/2023

 

3/31/2022

 

% Change

Revenues

$

1,744,270

 

$

1,583,980

 

10.1

%

 

$

4,999,445

 

$

4,560,656

 

9.6

%

Costs of revenues:

 

 

 

 

 

 

 

 

 

 

 

Direct costs

 

1,143,781

 

 

1,022,181

 

11.9

%

 

 

3,293,867

 

 

2,970,370

 

10.9

%

Indirect costs and selling expenses

 

410,235

 

 

402,227

 

2.0

%

 

 

1,180,619

 

 

1,114,310

 

6.0

%

Depreciation and amortization

 

35,220

 

 

34,216

 

2.9

%

 

 

106,255

 

 

99,484

 

6.8

%

Total costs of revenues:

 

1,589,236

 

 

1,458,624

 

9.0

%

 

 

4,580,741

 

 

4,184,164

 

9.5

%

Income from operations

 

155,034

 

 

125,356

 

23.7

%

 

 

418,704

 

 

376,492

 

11.2

%

Interest expense and other, net

 

23,570

 

 

9,084

 

159.5

%

 

 

59,705

 

 

30,491

 

95.8

%

Income before income taxes

 

131,464

 

 

116,272

 

13.1

%

 

 

358,999

 

 

346,001

 

3.8

%

Income taxes

 

30,722

 

 

20,855

 

47.3

%

 

 

82,031

 

 

72,176

 

13.7

%

Net income

$

100,742

 

$

95,417

 

5.6

%

 

$

276,968

 

$

273,825

 

1.1

%

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

$

4.37

 

$

4.08

 

7.1

%

 

$

11.87

 

$

11.67

 

1.7

%

Diluted earnings per share

$

4.33

 

$

4.04

 

7.2

%

 

$

11.76

 

$

11.56

 

1.7

%

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares used in per share computations:

 

 

 

 

 

 

 

 

 

 

 

Basic

 

23,055

 

 

23,409

 

-1.5

%

 

 

23,329

 

 

23,457

 

-0.5

%

Diluted

 

23,277

 

 

23,616

 

-1.4

%

 

 

23,546

 

 

23,687

 

-0.6

%

 

 

 

 

 

 

 

 

 

 

 

 

CACI International Inc

Condensed Consolidated Balance Sheets (Unaudited)

(in thousands)

 

3/31/2023

 

6/30/2022

ASSETS

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

106,789

 

$

114,804

Accounts receivable, net

 

1,004,733

 

 

926,144

Prepaid expenses and other current assets

 

197,120

 

 

168,690

Total current assets

 

1,308,642

 

 

1,209,638

 

 

 

 

Goodwill

 

4,066,260

 

 

4,058,291

Intangible assets, net

 

524,445

 

 

581,385

Property, plant and equipment, net

 

197,549

 

 

205,622

Operating lease right-of-use assets

 

285,746

 

 

317,359

Supplemental retirement savings plan assets

 

96,434

 

 

96,114

Accounts receivable, long-term

 

12,653

 

 

10,199

Other long-term assets

 

159,827

 

 

150,823

Total assets

$

6,651,556

 

$

6,629,431

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

Current liabilities:

 

 

 

Current portion of long-term debt

$

38,281

 

$

30,625

Accounts payable

 

323,346

 

 

303,443

Accrued compensation and benefits

 

344,039

 

 

405,722

Other accrued expenses and current liabilities

 

358,790

 

 

287,571

Total current liabilities

 

1,064,456

 

 

1,027,361

 

 

 

 

Long-term debt, net of current portion

 

1,765,210

 

 

1,702,148

Supplemental retirement savings plan obligations, net of current portion

 

103,023

 

 

102,127

Deferred income taxes

 

202,755

 

 

356,841

Operating lease liabilities, noncurrent

 

278,344

 

 

315,315

Other long-term liabilities

 

148,128

 

 

72,096

Total liabilities

 

3,561,916

 

 

3,575,888

 

 

 

 

Total shareholders’ equity

 

3,089,640

 

 

3,053,543

Total liabilities and shareholders’ equity

$

6,651,556

 

$

6,629,431

CACI International Inc

Condensed Consolidated Statements of Cash Flows (Unaudited)

(in thousands)

 

Nine Months Ended

 

3/31/2023

 

3/31/2022

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

Net income

$

276,968

 

 

$

273,825

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

Depreciation and amortization

 

106,255

 

 

 

99,484

 

Amortization of deferred financing costs

 

1,688

 

 

 

1,712

 

Loss on extinguishment of debt

 

 

 

 

891

 

Non-cash lease expense

 

52,293

 

 

 

51,449

 

Stock-based compensation expense

 

30,564

 

 

 

23,085

 

Deferred income taxes

 

(84,794

)

 

 

2,813

 

Changes in operating assets and liabilities, net of effect of business acquisitions:

 

 

 

Accounts receivable, net

 

(80,116

)

 

 

66,953

 

Prepaid expenses and other assets

 

(42,137

)

 

 

(27,227

)

Accounts payable and other accrued expenses

 

62,116

 

 

 

23,056

 

Accrued compensation and benefits

 

(62,522

)

 

 

(84,466

)

Income taxes payable and receivable

 

28,825

 

 

 

201,112

 

Operating lease liabilities

 

(58,667

)

 

 

(54,575

)

Long-term liabilities

 

5,481

 

 

 

14,901

 

Net cash provided by operating activities

 

235,954

 

 

 

593,013

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

Capital expenditures

 

(40,844

)

 

 

(38,742

)

Acquisitions of businesses, net of cash acquired

 

 

 

 

(615,769

)

Other

 

1,626

 

 

 

923

 

Net cash used in investing activities

 

(39,218

)

 

 

(653,588

)

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

Proceeds from borrowings under bank credit facilities

 

2,384,000

 

 

 

2,087,095

 

Principal payments made under bank credit facilities

 

(2,314,969

)

 

 

(1,965,386

)

Payment of financing costs under bank credit facilities

 

 

 

 

(6,286

)

Proceeds from employee stock purchase plans

 

7,638

 

 

 

7,398

 

Repurchases of common stock

 

(270,449

)

 

 

(7,301

)

Payment of taxes for equity transactions

 

(14,115

)

 

 

(14,685

)

Net cash (used in) provided by financing activities

 

(207,895

)

 

 

100,835

 

Effect of exchange rate changes on cash and cash equivalents

 

3,144

 

 

 

(3,217

)

Net change in cash and cash equivalents

 

(8,015

)

 

 

37,043

 

Cash and cash equivalents at beginning of period

 

114,804

 

 

 

88,031

 

Cash and cash equivalents at end of period

$

106,789

 

 

$

125,074

 

Revenues by Customer Group (Unaudited)

 

Three Months Ended

(in thousands)

3/31/2023

3/31/2022

$ Change

 

% Change

Department of Defense

$

1,298,700

 

74.4

%

 

$

1,118,665

 

70.7

%

 

$

180,035

 

 

16.1

%

Federal Civilian agencies

 

355,612

 

20.4

%

 

 

380,837

 

24.0

%

 

 

(25,225

)

 

-6.6

%

Commercial and other

 

89,958

 

5.2

%

 

 

84,478

 

5.3

%

 

 

5,480

 

 

6.5

%

Total

$

1,744,270

 

100.0

%

 

$

1,583,980

 

100.0

%

 

$

160,290

 

 

10.1

%

 

Nine Months Ended

(in thousands)

3/31/2023

3/31/2022

$ Change

 

% Change

Department of Defense

$

3,554,080

 

71.1

%

 

$

3,155,806

 

69.2

%

 

$

398,274

 

 

12.6

%

Federal Civilian agencies

 

1,179,467

 

23.6

%

 

 

1,166,398

 

25.6

%

 

 

13,069

 

 

1.1

%

Commercial and other

 

265,898

 

5.3

%

 

 

238,452

 

5.2

%

 

 

27,446

 

 

11.5

%

Total

$

4,999,445

 

100.0

%

��

$

4,560,656

 

100.0

%

 

$

438,789

 

 

9.6

%

Revenues by Contract Type (Unaudited)

 

Three Months Ended

(in thousands)

3/31/2023

3/31/2022

$ Change

 

% Change

Cost-plus-fee

$

1,008,688

 

57.8

%

 

$

889,624

 

56.1

%

 

$

119,064

 

 

13.4

%

Fixed-price

 

529,786

 

30.4

%

 

 

503,174

 

31.8

%

 

 

26,612

 

 

5.3

%

Time-and-materials

 

205,796

 

11.8

%

 

 

191,182

 

12.1

%

 

 

14,614

 

 

7.6

%

Total

$

1,744,270

 

100.0

%

 

$

1,583,980

 

100.0

%

 

$

160,290

 

 

10.1

%

 

Nine Months Ended

(in thousands)

3/31/2023

3/31/2022

$ Change

 

% Change

Cost-plus-fee

$

2,896,778

 

58.0

%

 

$

2,672,695

 

58.6

%

 

$

224,083

 

 

8.4

%

Fixed-price

 

1,520,915

 

30.4

%

 

 

1,344,169

 

29.5

%

 

 

176,746

 

 

13.1

%

Time-and-materials

 

581,752

 

11.6

%

 

 

543,792

 

11.9

%

 

 

37,960

 

 

7.0

%

Total

$

4,999,445

 

100.0

%

 

$

4,560,656

 

100.0

%

 

$

438,789

 

 

9.6

%

Revenues by Prime or Subcontractor (Unaudited)

 

Three Months Ended

(in thousands)

3/31/2023

3/31/2022

$ Change

 

% Change

Prime contractor

$

1,556,733

 

89.2

%

 

$

1,419,805

 

89.6

%

 

$

136,928

 

 

9.6

%

Subcontractor

 

187,537

 

10.8

%

 

 

164,175

 

10.4

%

 

 

23,362

 

 

14.2

%

Total

$

1,744,270

 

100.0

%

 

$

1,583,980

 

100.0

%

 

$

160,290

 

 

10.1

%

 

Nine Months Ended

(in thousands)

3/31/2023

3/31/2022

$ Change

 

% Change

Prime contractor

$

4,467,882

 

89.4

%

 

$

4,097,210

 

89.8

%

 

$

370,672

 

 

9.0

%

Subcontractor

 

531,563

 

10.6

%

 

 

463,446

 

10.2

%

 

 

68,117

 

 

14.7

%

Total

$

4,999,445

 

100.0

%

 

$

4,560,656

 

100.0

%

 

$

438,789

 

 

9.6

%

Revenues by Expertise or Technology (Unaudited)

 

Three Months Ended

(in thousands)

3/31/2023

3/31/2022

$ Change

 

% Change

Expertise

$

812,300

 

46.6

%

 

$

716,199

 

45.2

%

 

$

96,101

 

 

13.4

%

Technology

 

931,970

 

53.4

%

 

 

867,781

 

54.8

%

 

 

64,189

 

 

7.4

%

Total

$

1,744,270

 

100.0

%

 

$

1,583,980

 

100.0

%

 

$

160,290

 

 

10.1

%

 

Nine Months Ended

(in thousands)

3/31/2023

3/31/2022

$ Change

 

% Change

Expertise

$

2,288,123

 

45.8

%

 

$

2,105,554

 

46.2

%

 

$

182,569

 

 

8.7

%

Technology

 

2,711,322

 

54.2

%

 

 

2,455,102

 

53.8

%

 

 

256,220

 

 

10.4

%

Total

$

4,999,445

 

100.0

%

 

$

4,560,656

 

100.0

%

 

$

438,789

 

 

9.6

%

Contract Awards (Unaudited)

 

Three Months Ended

(in thousands)

3/31/2023

3/31/2022

$ Change

 

% Change

Contract Awards

$

1,059,095

 

$

1,222,723

 

$

(163,628

)

 

-13.4

%

 

Nine Months Ended

(in thousands)

3/31/2023

3/31/2022

$ Change

 

% Change

Contract Awards

$

7,793,551

 

$

5,563,364

 

$

2,230,187

 

 

40.1

%

Reconciliation of Net Income to Adjusted Net Income and Diluted EPS to Adjusted Diluted EPS

(Unaudited)

Adjusted net income and Adjusted diluted EPS are non-GAAP performance measures. We define Adjusted net income and Adjusted diluted EPS as GAAP net income and GAAP diluted EPS, respectively, excluding intangible amortization expense and the related tax impact as we do not consider intangible amortization expense to be indicative of our core operating performance. We believe that these performance measures provide management and investors with useful information in assessing trends in our ongoing operating performance, provide greater visibility in understanding the long-term financial performance of the Company, and allow investors to more easily compare our results to results of our peers. These non-GAAP measures should not be considered in isolation or as a substitute for performance measures prepared in accordance with GAAP.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in thousands, except per share data)

Three Months Ended

 

Nine Months Ended

 

 

 

3/31/2023

3/31/2022

% Change

 

3/31/2023

3/31/2022

% Change

 

 

Net income, as reported

$

100,742

 

 

$

95,417

 

 

5.6

%

 

$

276,968

 

 

$

273,825

 

 

 

1.1

%

 

 

Intangible amortization expense

 

18,585

 

 

 

19,297

 

 

-3.7

%

 

 

56,808

 

 

 

54,944

 

 

 

3.4

%

 

 

Tax effect of intangible amortization1

 

(4,813

)

 

 

(5,074

)

 

-5.1

%

 

 

(14,712

)

 

 

(14,446

)

 

 

1.8

%

 

 

Adjusted net income

$

114,514

 

 

$

109,640

 

 

4.4

%

 

$

319,064

 

 

$

314,323

 

 

 

1.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

 

3/31/2023

3/31/2022

% Change

 

3/31/2023

3/31/2022

% Change

 

 

Diluted EPS, as reported

$

4.33

 

 

$

4.04

 

 

7.2

%

 

$

11.76

 

 

$

11.56

 

 

 

1.7

%

 

 

Intangible amortization expense

 

0.80

 

 

 

0.82

 

 

-2.4

%

 

 

2.41

 

 

 

2.32

 

 

 

3.9

%

 

 

Tax effect of intangible amortization1

 

(0.21

)

 

 

(0.22

)

 

-4.5

%

 

 

(0.62

)

 

 

(0.61

)

 

 

1.6

%

 

 

Adjusted diluted EPS

$

4.92

 

 

$

4.64

 

 

6.0

%

 

$

13.55

 

 

$

13.27

 

 

 

2.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FY23 Current Guidance Range

 

 

(in millions, except per share data)

 

 

 

 

 

 

Low End

 

 

 

High End

 

 

 

Net income, as reported

 

 

 

 

 

 

$

369

 

 

 

---

 

 

$

384

 

 

 

Intangible amortization expense

 

 

 

 

 

 

 

75

 

 

 

---

 

 

 

75

 

 

 

Tax effect of intangible amortization1

 

 

 

 

 

 

 

(19

)

 

 

---

 

 

 

(19

)

 

 

Adjusted net income

 

 

 

 

 

 

$

425

 

 

 

---

 

 

$

440

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FY23 Current Guidance Range

 

 

 

 

 

 

 

 

 

Low End

 

 

 

High End

 

 

 

Diluted EPS, as reported

 

 

 

 

 

 

$

15.71

 

 

 

---

 

 

$

16.34

 

 

 

Intangible amortization expense

 

 

 

 

 

 

 

3.19

 

 

 

---

 

 

 

3.19

 

 

 

Tax effect of intangible amortization1

 

 

 

 

 

 

 

(0.81

)

 

 

---

 

 

 

(0.81

)

 

 

Adjusted diluted EPS

 

 

 

 

 

 

$

18.09

 

 

 

---

 

 

$

18.72

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Calculation uses an assumed full year statutory tax rate of 25.9% and 26.3% on non-GAAP tax deductible adjustments for March 31, 2023 and 2022, respectively.

 

 

 

Note: Numbers may not sum due to rounding.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

(in thousands)

3/31/2023

3/31/2022

% Change

 

3/31/2023

3/31/2022

% Change

 

 

Net income

$

100,742

 

 

$

95,417

 

 

5.6

%

 

$

276,968

 

 

$

273,825

 

 

1.1

%

 

 

Plus:

 

 

 

 

 

 

 

 

 

 

 

 

 

Income taxes

 

30,722

 

 

 

20,855

 

 

47.3

%

 

 

82,031

 

 

 

72,176

 

 

13.7

%

 

 

Interest income and expense, net

 

23,570

 

 

 

9,084

 

 

159.5

%

 

 

59,705

 

 

 

30,491

 

 

95.8

%

 

 

Depreciation and amortization expense, including amounts within direct costs

 

36,771

 

 

 

36,095

 

 

1.9

%

 

 

111,584

 

 

 

103,924

 

 

7.4

%

 

 

Adjusted EBITDA

$

191,805

 

 

$

161,451

 

 

18.8

%

 

$

530,288

 

 

$

480,416

 

 

10.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

(in thousands)

3/31/2023

3/31/2022

% Change

 

3/31/2023

3/31/2022

% Change

 

 

Revenues, as reported

$

1,744,270

 

 

$

1,583,980

 

 

10.1

%

 

$

4,999,445

 

 

$

4,560,656

 

 

9.6

%

 

 

Adjusted EBITDA

 

191,805

 

 

 

161,451

 

 

18.8

%

 

 

530,288

 

 

 

480,416

 

 

10.4

%

 

 

Adjusted EBITDA margin

 

11.0

%

 

 

10.2

%

 

 

 

 

10.6

%

 

 

10.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of Net Cash Provided by Operating Activities to Net Cash Provided by Operating Activities Excluding MARPA and to Free Cash Flow

(Unaudited)

The Company defines Net cash provided by operating activities excluding MARPA, a non-GAAP measure, as net cash provided by operating activities calculated in accordance with GAAP, adjusted to exclude cash flows from CACI’s Master Accounts Receivable Purchase Agreement (MARPA) for the sale of certain designated eligible U.S. government receivables up to a maximum amount of $200.0 million. Free cash flow is a non-GAAP liquidity measure and may not be comparable to similarly titled measures used by other companies. The Company defines Free cash flow as Net cash provided by operating activities excluding MARPA, less payments for capital expenditures. The Company uses these non-GAAP measures to assess our ability to generate cash from our business operations and plan for future operating and capital actions. We believe these measures allow investors to more easily compare current period results to prior period results and to results of our peers. Free cash flow does not represent residual cash flows available for discretionary purposes and should not be used as a substitute for cash flow measures prepared in accordance with GAAP.

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

(in thousands)

3/31/2023

 

3/31/2022

 

3/31/2023

 

3/31/2022

 

 

Net cash provided by operating activities

$

28,864

 

 

$

284,248

 

 

$

235,954

 

 

$

593,013

 

 

 

Cash used in (provided by) MARPA

 

27,272

 

 

 

29,811

 

 

 

(14,905

)

 

 

24,360

 

 

 

Net cash provided by operating activities excluding MARPA

 

56,136

 

 

 

314,059

 

 

 

221,049

 

 

 

617,373

 

 

 

Capital expenditures

 

(15,174

)

 

 

(17,110

)

 

 

(40,844

)

 

 

(38,742

)

 

 

Free cash flow

$

40,962

 

 

$

296,949

 

 

$

180,205

 

 

$

578,631

 

 

 

 

 

 

 

 

 

 

 

 

 

(in millions)

 

 

 

 

FY23

Current

Guidance

 

 

 

 

Net cash provided by operating activities

 

 

 

 

$

360

 

 

 

 

 

Cash used in (provided by) MARPA

 

 

 

 

 

 

 

 

 

 

Net cash provided by operating activities excluding MARPA

 

 

 

 

 

360

 

 

 

 

 

Capital expenditures

 

 

 

 

 

(80

)

 

 

 

 

Free cash flow

 

 

 

 

$

280

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contacts

Corporate Communications and Media:

Lorraine Corcoran, Executive Vice President, Corporate Communications

(703) 434-4165, lorraine.corcoran@caci.com

Investor Relations:

Daniel Leckburg, Senior Vice President, Investor Relations

(703) 841-7666, dleckburg@caci.com

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