Transcript Document

CACI International Inc
First Fiscal Quarter FY11
Earnings Conference Call
October 28, 2010
Forward-looking Statements
There are statements made herein which 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 factors that could cause actual results to differ materially from anticipated results. The
factors that could cause actual results to differ materially from those anticipated include, but are not limited to,
the following: regional and national economic conditions in the United States and the United Kingdom, including
conditions that result from a prolonged recession; terrorist activities or war; changes in interest rates; currency
fluctuations; significant fluctuations in the equity markets; changes in our effective tax rate; finalization of
accounting for business combinations, including valuation of intangibles and contingent consideration; failure to
achieve contract awards in connection with recompetes for present business and/or competition for new business;
the risks and uncertainties associated with client interest in and purchases of new products and/or services;
continued funding of U.S. government or other public sector projects, based on a change in spending patterns, or
in the event of a priority need for funds, such as homeland security, the war on terrorism or rebuilding Iraq, or an
economic stimulus package; government contract procurement (such as bid protest, small business set asides,
loss of work due to organizational conflicts of interest, etc.) and termination risks; the results of government
investigations into allegations of improper actions related to the provision of services in support of U.S. military
operations in Iraq; the results of government audits and reviews conducted by the Defense Contract Audit Agency
or other government entities with cognizant oversight; the insourcing of contractor positions by the government;
individual business decisions of our clients; paradigm shifts in technology; competitive factors such as pricing
pressures and/or competition to hire and retain employees (particularly those with security clearances); market
speculation regarding our continued independence; material changes in laws or regulations applicable to our
businesses, particularly in connection with (i) government contracts for services, (ii) outsourcing of activities that
have been performed by the government, and (iii) competition for task orders under Government Wide
Acquisition Contracts (“GWACs”) and/or schedule contracts with the General Services Administration; the ability
to successfully integrate the operations of our recent or any future acquisitions; our own ability to achieve the
objectives of near term or long range business plans; and other risks described in the company’s
Securities and Exchange Commission filings.
CACI Proprietary Information
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Participants
— Paul Cofoni
President & Chief Executive Officer
— Tom Mutryn
Chief Financial Officer
— Bill Fairl
President of U.S. Operations
— Greg Bradford
Chief Executive of CACI Limited UK
CACI Proprietary Information
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Record First Quarter Results
RECORDS
RECORD
} Revenue of $834.0M
RECORD
} Operating income of $52.1M
RECORD
} Net income of $28.7M
RECORD
} Diluted EPS of $0.92
RECORD
} Contract funding orders of $1.46B
RECORD
} Contract awards of $1.48B
…………………………………………………………..
up 12.8%
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up 13.2%
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up 20.1%
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up 17.7%
…..….
up 39.9%
…………………..........…...….
up 102.6%
Raising FY 2011 revenue guidance by
$200 million and EPS guidance by $0.20
CACI Proprietary Information
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Strong Execution of Growth Strategy
 Signed agreements to acquire TechniGraphics and ASR
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Moves us into the geospatial intelligence market
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Strengthens end-to-end solutions for Intelligence Community
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Both expected to close on November 1, 2010
CACI Proprietary Information
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5
Aligned With Government Priorities
 Leadership in our market space
 Mission-critical warfighter support in priority areas
−
Less vulnerable to DoD’s spending reprioritization initiatives
 Already performing on IT modernization
CACI Proprietary Information
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6
Raising Guidance
 Strong first quarter performance
 Record funding orders and contract wins
 Strong funded backlog
 Successful retention of existing business
 Operational excellence
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7
Record Financial Results
Total Revenue Up 12.8%
Record revenue driven by:
Operating Income Up 13.2%
Record operating income driven by:
 Organic revenue growth of 10.8%
 Strong growth in direct costs
 Direct labor growth of 7.3%
 Continued control of indirect costs
 ODC growth of 20.6%
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8
Record Bottom-Line Results
Net Income Up 20.1%
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Diluted EPS Up 17.7%
Q1 effective tax rate of 37.8%; FY 2011 projection of 38.1%
Repurchased 395,000 shares at an average price of $42.62
Record diluted adjusted EPS of $1.34
CACI Proprietary Information
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9
Strong Balance Sheet
DSOs
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Cash and equivalents of $110 million
Net debt of $295 million
New credit facility
−
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$150 million term loan and $600 million revolving credit facility
Provides additional financial flexibility for years to come
CACI Proprietary Information
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10
Raising Guidance for FY11
Revenue (millions)
Net Income (millions)
Diluted EPS
Diluted shares (millions)
Current FY11
Guidance
Previous FY11
Guidance
$3,450 - $3,600
$3,250 - $3,400
$121 - $128
$116 - $122
$3.90 - $4.10
$3.70 - $3.90
31.1
31.3
FY11 revenue expected to be 10 – 14% over ’10
FY11 net income expected to be 14 – 20% over ’10
FY11 diluted EPS expected to be 12 – 18% over ’10
This guidance represents our views as of October 27, 2010. Investors are reminded that actual results
may differ from these estimates for reasons described in our Safe Harbor Statement and our filings with
the SEC.
CACI Proprietary Information
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Record Funding Orders and Awards
 Operational excellence drives performance
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Contract funding orders grew 39.9% to $1.46 billion
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Funded backlog of $2.5 billion
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Awards of $1.48 billion increased 102.6% over last year
 70% of awards were for new business
 Average period of contract performance 2+ years
 Providing increased growth in FY 2011
CACI Proprietary Information
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12
Extraordinary Customer Wins
 Two large, single-award wins in Healthcare IT
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Department of Veterans Affairs $91 million Virtual Lifetime
Electronic Record (VLER) contract
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Selected for Department of Defense’s $75 million Virtual
Interactive Processing System (VIPS) contract
CACI Proprietary Information
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13
Extraordinary Customer Wins
(cont’d)
 Two biometrics awards totaling $239 million
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Experimentation, demonstration, and fielding of biometric and
information management capabilities
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Development of biometrics tools that recognize and track
individuals
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14
Extraordinary Customer Wins
(cont’d)
 Large IDIQ contracts
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Army Rapid Response – Third Generation:
5-year award with ceiling value of $16.4 billion
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Centers for Disease Control and Prevention:
10-year award with a ceiling value of $1 billion
CACI Proprietary Information
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15
Opportunities Remain Attractive
 Pipeline remains strong
$3.8 billion in submitted proposals, scheduled for award by the
end of March 2011
— Expect to submit approximately $7.5 billion new proposals
during the next two quarters
 About half are recompetes
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 Continued strength in new hiring
Approximately 200 net new hires
— Open hiring requisitions grew to more than 400
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Operating margin improvement plans continue
Margin improvement training programs for our managers
— Added a margin improvement element to our Incentive
Compensation plan
— Key component of Bid and Proposal investment decisions
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CACI Proprietary Information
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CEO Closing Comments
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First quarter demonstrates success of focused growth
strategy
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Record awards show our innovation and differentiation
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Strategic M&A complementing our strengths and adding
depth to our solutions
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Positioned in areas of highest priority for our nation
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Consistently achieving our financial goals
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Raising our FY11 guidance
CACI Proprietary Information
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