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CACI Reports Results for Its Fiscal 2023 Fourth Quarter and Full Year and Issues Fiscal Year 2024 Guidance

Annual revenues of $6.7 billion, up 8% YoY

Annual net income of $384.7 million; Diluted EPS of $16.43, up 6% YoY

Annual adjusted net income of $440.9 million; Adjusted diluted EPS of $18.83, up 6% YoY

Annual EBITDA of $716.0 million and EBITDA margin of 10.7%, up 40 bps YoY

Annual contract awards of $10.1 billion and book-to-bill of 1.5x

Company committed to continued growth, strong margins, and healthy cash flow in Fiscal Year 2024

CACI International Inc (NYSE: CACI), a leading provider of expertise and technology to government customers, announced results today for its fiscal fourth quarter and full year ended June 30, 2023, and issued guidance for fiscal year 2024.

“Our strong Fiscal Year 2023 financial performance is the result of the consistent execution of our strategy,” said John Mengucci, CACI President and Chief Executive Officer. “We delivered on our commitments of top-line growth, margin expansion, and healthy cash flow generation. We won significant new business, including enterprise-scale IT modernization work with the Air Force, exquisite cyber work in the intelligence community, and development of the Navy’s next-generation shipboard signals intelligence and electronic warfare platform. We deployed capital in a flexible and opportunistic manner to drive value for our shareholders. And we continued to invest in our business and our people to ensure CACI remains positioned to deliver on our commitments in Fiscal Year 2024 and beyond.”

Fourth Quarter Results

 

(in millions, except earnings per share and DSO)

Three Months Ended

 

6/30/2023

 

 

6/30/2022

 

% Change

Revenues

$

1,703.1

 

$

1,642.3

 

3.7

%

Income from operations

$

148.8

 

$

119.8

 

24.2

%

Net income

$

107.8

 

$

93.0

 

15.9

%

Adjusted net income, a non-GAAP measure1

$

121.9

 

$

107.4

 

13.5

%

Diluted earnings per share

$

4.68

 

$

3.93

 

19.1

%

Adjusted diluted earnings per share, a non-GAAP measure1

$

5.30

 

$

4.54

 

16.7

%

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

$

185.7

 

$

157.1

 

18.2

%

Net cash provided by operating activities excluding MARPA1

$

124.8

 

$

152.4

 

-18.1

%

Free cash flow, a non-GAAP measure1

$

101.9

 

$

116.6

 

-12.6

%

Days sales outstanding (DSO)2

 

48

 

 

55

 

 

(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 June 30, 2023 and 2022 exclude the impact of the Company's Master Accounts Receivable Purchase Agreement (MARPA), which was a reduction of 7 days and 8 days, respectively.

Revenues in the fourth quarter of fiscal year 2023 increased 4 percent year-over-year, driven by organic growth. The increase in income from operations was driven by higher revenues 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. The decrease in cash from operations, excluding MARPA was driven primarily by higher tax payments.

Fourth Quarter Contract Awards

Contract awards in the fourth quarter totaled $2.3 billion, with nearly 70 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 seven-year single-award indefinite delivery indefinite quantity (IDIQ) mission technology contract, called Spectral, with a $1.2 billion ceiling for the U.S. Navy’s Naval Information Warfare Systems Command (NAVWAR). CACI recognized $600 million of award and backlog value based on current requirements in its fourth quarter of fiscal year 2023. CACI will utilize its industry-leading software development and electromagnetic spectrum capabilities to develop and deploy the Navy’s next-generation shipboard signals intelligence (SIGINT), electronic warfare (EW), and information operations (IO) weapon systems.
  • CACI was awarded a five-year, single-award $209 million mission expertise prime contract by the U.S. Fleet Forces Command (USFFC) to provide global logistics and technical training support to Naval Forces Logistics (NFL). Under the expanded contract, CACI will continue to provide advanced mission software and modern capabilities needed to ensure readiness and decision advantage across all domains.
  • CACI was awarded a five-year single-award, indefinite delivery indefinite quantity mission technology contract valued up to $125 million to continue providing vital full life cycle support for Command, Control, Computers, Communications, Cyber, Intelligence, Surveillance, and Reconnaissance (C5ISR) systems, including engineering and design, rapid prototyping, fabrication, and integration.
  • CACI was awarded a five-year single-award, indefinite delivery indefinite quantity (IDIQ) mission expertise contract valued up to $76.3 million.

Total backlog as of June 30, 2023 was $25.8 billion compared with $23.3 billion a year ago, an increase of 11 percent. Funded backlog as of June 30, 2023 was $3.7 billion compared with $3.2 billion a year ago, an increase of 16 percent.

Additional Highlights

  • CACI has been named to Forbes’ America’s Best Employers for Diversity 2023 for the second consecutive year. According to Forbes, companies were selected based on responses to an independent survey of more than 45,000 employees in the U.S. who work for companies with a minimum of 1,000 employees. Respondents answered questions regarding age, gender, ethnicity, disability, LGBTQIA+, and general diversity in their current workplace.
  • CACI’s Bluestone Analytics and Torchlight AI (Torchlight) announced a strategic partnership to provide the DarkPursuit capability within the Torchlight Catalyst platform. This partnership will provide Torchlight customers, mainly Special Operations Forces (SOF), with safe and secure access to browse the open, deep, and dark web.

Fiscal Year Results

 

(in millions, except earnings per share)

Twelve Months Ended

 

6/30/2023

 

 

6/30/2022

 

% Change

Revenues

$

6,702.5

 

$

6,202.9

 

8.1

%

Income from operations

$

567.5

 

$

496.3

 

14.3

%

Net income

$

384.7

 

$

366.8

 

4.9

%

Adjusted net income, a non-GAAP measure1

$

440.9

 

$

421.7

 

4.6

%

Diluted earnings per share

$

16.43

 

$

15.49

 

6.1

%

Adjusted diluted earnings per share, a non-GAAP measure1

$

18.83

 

$

17.81

 

5.7

%

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

$

716.0

 

$

637.5

 

12.3

%

Net cash provided by operating activities excluding MARPA1

$

345.8

 

$

769.8

 

-55.1

%

Free cash flow, a non-GAAP measure1

$

282.1

 

$

695.2

 

-59.4

%

(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.

Revenues in fiscal year 2023 increased 8 percent year-over-year, driven by 6 percent organic growth as well as revenues from acquisitions completed during the prior year. The increase in income from operations was driven by higher revenues and gross profit. Diluted earnings per share and adjusted diluted earnings per share increased due to higher income from operations, partially offset by higher interest expense and a higher tax rate. The decrease in cash from operations, excluding MARPA, was driven by tax benefits in the prior year from method changes enacted at the end of fiscal year 2021, as well as higher tax payments primarily related to Section 174 of the Tax Cuts and Jobs Act of 2017.

Fiscal Year 2024 Guidance

The table below summarizes our fiscal year 2024 guidance and represents our views as of August 9, 2023.

(in millions, except earnings per share)

Fiscal Year 2024 Guidance

Revenues

$7,000 - $7,200

Adjusted net income, a non-GAAP measure1

$440 - $465

Adjusted diluted earnings per share, a non-GAAP measure1

$19.13 - $20.22

Diluted weighted average shares

23.0

Free cash flow, a non-GAAP measure2

at least $400

(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 2024 free cash flow guidance assumes approximately $75 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 8:30 AM Eastern Time Thursday, August 10, 2023 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

At CACI International Inc (NYSE: CACI), our 23,000 talented and dynamic employees are ever vigilant in delivering distinctive expertise and technology to meet our customers’ greatest challenges in national security and government modernization. We are a company of good character, relentless innovation, and long-standing excellence. Our culture drives our success and earns us recognition as a Fortune World's Most Admired Company. CACI is a member of the Fortune 1000 Largest Companies, the Russell 1000 Index, and the S&P MidCap 400 Index. For more information, visit us at 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

Consolidated Statements of Operations (Unaudited)

(in thousands, except per share data)

 

 

Three Months Ended

 

Twelve Months Ended

 

 

6/30/2023

 

 

6/30/2022

 

% Change

 

 

6/30/2023

 

 

6/30/2022

 

% Change

Revenues

$

1,703,101

 

$

1,642,261

 

3.7

%

 

$

6,702,546

 

$

6,202,917

 

8.1

%

Costs of revenues:

 

 

 

 

 

 

 

 

 

 

 

Direct costs

 

1,108,861

 

 

1,080,818

 

2.6

%

 

 

4,402,728

 

 

4,051,188

 

8.7

%

Indirect costs and selling expenses

 

410,135

 

 

406,409

 

0.9

%

 

 

1,590,754

 

 

1,520,719

 

4.6

%

Depreciation and amortization

 

35,309

 

 

35,197

 

0.3

%

 

 

141,564

 

 

134,681

 

5.1

%

Total costs of revenues

 

1,554,305

 

 

1,522,424

 

2.1

%

 

 

6,135,046

 

 

5,706,588

 

7.5

%

Income from operations

 

148,796

 

 

119,837

 

24.2

%

 

 

567,500

 

 

496,329

 

14.3

%

Interest expense and other, net

 

24,156

 

 

11,266

 

114.4

%

 

 

83,861

 

 

41,757

 

100.8

%

Income before income taxes

 

124,640

 

 

108,571

 

14.8

%

 

 

483,639

 

 

454,572

 

6.4

%

Income taxes

 

16,873

 

 

15,602

 

8.1

%

 

 

98,904

 

 

87,778

 

12.7

%

Net income

$

107,767

 

$

92,969

 

15.9

%

 

$

384,735

 

$

366,794

 

4.9

%

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

$

4.73

 

$

3.97

 

19.1

%

 

$

16.59

 

$

15.64

 

6.1

%

Diluted earnings per share

$

4.68

 

$

3.93

 

19.1

%

 

$

16.43

 

$

15.49

 

6.1

%

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares used in per share computations:

 

 

 

 

 

 

 

 

 

 

 

Weighted-average basic shares outstanding

 

22,795

 

 

23,415

 

-2.6

%

 

 

23,196

 

 

23,446

 

-1.1

%

Weighted-average diluted shares outstanding

 

23,012

 

 

23,647

 

-2.7

%

 

 

23,413

 

 

23,677

 

-1.1

%

CACI International Inc

Consolidated Balance Sheets (Unaudited)

(in thousands)

 

 

 

6/30/2023

 

 

 

6/30/2022

 

ASSETS

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

115,776

 

$

114,804

Accounts receivable, net

 

894,946

 

 

 

926,144

 

Prepaid expenses and other current assets

 

199,315

 

 

 

168,690

 

Total current assets

 

1,210,037

 

 

 

1,209,638

 

 

 

 

 

Goodwill

 

4,084,705

 

 

 

4,058,291

 

Intangible assets, net

 

507,835

 

 

 

581,385

 

Property, plant and equipment, net

 

199,519

 

 

 

205,622

 

Operating lease right-of-use assets

 

312,989

 

 

 

317,359

 

Supplemental retirement savings plan assets

 

96,739

 

 

 

96,114

 

Accounts receivable, long-term

 

11,857

 

 

 

10,199

 

Other long-term assets

 

177,127

 

 

 

150,823

 

Total assets

$

6,600,808

 

 

$

6,629,431

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

Current liabilities:

 

 

 

Current portion of long-term debt

$

45,938

 

 

$

30,625

 

Accounts payable

 

198,177

 

 

 

303,443

 

Accrued compensation and benefits

 

372,354

 

 

 

405,722

 

Other accrued expenses and current liabilities

 

377,502

 

 

 

287,571

 

Total current liabilities

 

993,971

 

 

 

1,027,361

 

 

 

 

 

Long-term debt, net of current portion

 

1,650,443

 

 

 

1,702,148

 

Supplemental retirement savings plan obligations, net of current portion

 

104,912

 

 

 

102,127

 

Deferred income taxes

 

120,545

 

 

 

356,841

 

Operating lease liabilities, noncurrent

 

329,432

 

 

 

315,315

 

Other long-term liabilities

 

177,171

 

 

 

72,096

 

Total liabilities

 

3,376,474

 

 

 

3,575,888

 

 

 

 

 

Total shareholders’ equity

 

3,224,334

 

 

 

3,053,543

 

Total liabilities and shareholders’ equity

$

6,600,808

 

 

$

6,629,431

 

CACI International Inc

Consolidated Statements of Cash Flows (Unaudited)

(in thousands)

 

 

Twelve Months Ended

 

 

6/30/2023

 

 

 

6/30/2022

 

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

Net income

$

384,735

 

 

$

366,794

 

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

 

 

 

Depreciation and amortization

 

141,564

 

 

 

134,681

 

Amortization of deferred financing costs

 

2,233

 

 

 

2,276

 

Loss on extinguishment of debt

 

 

 

 

891

 

Non-cash lease expense

 

69,400

 

 

 

69,382

 

Stock-based compensation expense

 

39,643

 

 

 

31,732

 

Deferred income taxes

 

(146,013

)

 

 

9,570

 

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

 

 

 

Accounts receivable, net

 

32,081

 

 

 

(4,463

)

Prepaid expenses and other assets

 

(43,568

)

 

 

(13,605

)

Accounts payable and other accrued expenses

 

(6,629

)

 

 

80,874

 

Accrued compensation and benefits

 

(34,422

)

 

 

(55,037

)

Income taxes payable and receivable

 

10,997

 

 

 

187,854

 

Operating lease liabilities

 

(75,586

)

 

 

(74,080

)

Long-term liabilities

 

13,621

 

 

 

8,685

 

Net cash provided by operating activities

 

388,056

 

 

 

745,554

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

 

Capital expenditures

 

(63,717

)

 

 

(74,564

)

Acquisitions of businesses, net of cash acquired

 

(14,462

)

 

 

(615,508

)

Other

 

2,462

 

 

 

923

 

Net cash used in investing activities

 

(75,717

)

 

 

(689,149

)

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

Proceeds from borrowings under bank credit facilities

 

3,238,000

 

 

 

2,508,595

 

Principal payments made under bank credit facilities

 

(3,276,625

)

 

 

(2,508,542

)

Payment of financing costs under bank credit facilities

 

 

 

 

(6,286

)

Proceeds from employee stock purchase plans

 

10,225

 

 

 

9,728

 

Repurchases of common stock

 

(273,235

)

 

 

(9,785

)

Payment of taxes for equity transactions

 

(14,473

)

 

 

(14,919

)

Net cash used in financing activities

 

(316,108

)

 

 

(21,209

)

Effect of exchange rate changes on cash and cash equivalents

 

4,741

 

 

 

(8,423

)

Net change in cash and cash equivalents

 

972

 

 

 

26,773

 

Cash and cash equivalents, beginning of year

 

114,804

 

 

 

88,031

 

Cash and cash equivalents, end of year

$

115,776

 

 

$

114,804

 

Revenues by Customer Group (Unaudited)

 

 

Three Months Ended

(in thousands)

6/30/2023

 

6/30/2022

 

$ Change

 

% Change

Department of Defense

$

1,263,390

 

74.2

%

 

$

1,175,521

 

71.6

%

 

$

87,869

 

 

7.5

%

Federal Civilian agencies

 

353,828

 

20.8

%

 

 

383,393

 

23.3

%

 

 

(29,565

)

 

-7.7

%

Commercial and other

 

85,883

 

5.0

%

 

 

83,347

 

5.1

%

 

 

2,536

 

 

3.0

%

Total

$

1,703,101

 

100.0

%

 

$

1,642,261

 

100.0

%

 

$

60,840

 

 

3.7

%

 

 

Twelve Months Ended

(in thousands)

6/30/2023

 

6/30/2022

 

$ Change

 

% Change

Department of Defense

$

4,817,470

 

71.9

%

 

$

4,331,327

 

69.8

%

 

$

486,143

 

 

11.2

%

Federal Civilian agencies

 

1,533,295

 

22.9

%

 

 

1,549,791

 

25.0

%

 

 

(16,496

)

 

-1.1

%

Commercial and other

 

351,781

 

5.2

%

 

 

321,799

 

5.2

%

 

 

29,982

 

 

9.3

%

Total

$

6,702,546

 

100.0

%

 

$

6,202,917

 

100.0

%

 

$

499,629

 

 

8.1

%

Revenues by Contract Type (Unaudited)

 

 

Three Months Ended

(in thousands)

6/30/2023

 

6/30/2022

 

$ Change

 

% Change

Cost-plus-fee

$

999,947

 

58.8

%

 

$

959,664

 

58.4

%

 

$

40,283

 

 

4.2

%

Fixed-price

 

503,053

 

29.5

%

 

 

479,052

 

29.2

%

 

 

24,001

 

 

5.0

%

Time-and-materials

 

200,101

 

11.7

%

 

 

203,545

 

12.4

%

 

 

(3,444

)

 

-1.7

%

Total

$

1,703,101

 

100.0

%

 

$

1,642,261

 

100.0

%

 

$

60,840

 

 

3.7

%

 

 

Twelve Months Ended

(in thousands)

6/30/2023

 

6/30/2022

 

$ Change

 

% Change

Cost-plus-fee

$

3,896,725

 

58.1

%

 

$

3,632,359

 

58.6

%

 

$

264,366

 

7.3

%

Fixed-price

 

2,023,968

 

30.2

%

 

 

1,823,221

 

29.4

%

 

 

200,747

 

 

11.0

%

Time-and-materials

 

781,853

 

11.7

%

 

 

747,337

 

12.0

%

 

 

34,516

 

 

4.6

%

Total

$

6,702,546

 

100.0

%

 

$

6,202,917

 

100.0

%

 

$

499,629

 

 

8.1

%

Revenues by Prime or Subcontractor (Unaudited)

Three Months Ended

(in thousands)

6/30/2023

 

6/30/2022

 

$ Change

 

% Change

Prime contractor

$

1,505,818

 

88.4

%

 

$

1,467,712

 

89.4

%

 

$

38,106

 

 

2.6

%

Subcontractor

 

197,283

 

11.6

%

 

 

174,549

 

10.6

%

 

 

22,734

 

13.0

%

Total

$

1,703,101

 

100.0

%

 

$

1,642,261

 

100.0

%

 

$

60,840

 

 

3.7

%

 

 

Twelve Months Ended

(in thousands)

6/30/2023

 

6/30/2022

 

$ Change

 

% Change

Prime contractor

$

5,973,700

 

89.1

%

 

$

5,564,922

 

89.7

%

 

$

408,778

 

 

7.3

%

Subcontractor

 

728,846

 

10.9

%

 

 

637,995

 

10.3

%

 

 

90,851

 

14.2

%

Total

$

6,702,546

 

100.0

%

 

$

6,202,917

 

100.0

%

 

$

499,629

 

 

8.1

%

Revenues by Expertise or Technology (Unaudited)

 

 

Three Months Ended

(in thousands)

6/30/2023

 

6/30/2022

 

$ Change

 

% Change

Expertise

$

803,249

 

47.2

%

 

$

763,763

 

46.5

%

 

$

39,486

 

 

5.2

%

Technology

 

899,852

 

52.8

%

 

 

878,498

 

53.5

%

 

 

21,354

 

2.4

%

Total

$

1,703,101

 

100.0

%

 

$

1,642,261

 

100.0

%

 

$

60,840

 

 

3.7

%

 

 

Twelve Months Ended

(in thousands)

6/30/2023

 

6/30/2022

 

$ Change

 

% Change

Expertise

$

3,091,372

 

46.1

%

 

$

2,869,317

 

46.3

%

 

$

222,055

 

 

7.7

%

Technology

 

3,611,174

 

53.9

%

 

 

3,333,600

 

53.7

%

 

 

277,574

 

 

8.3

%

Total

$

6,702,546

 

100.0

%

 

$

6,202,917

 

100.0

%

 

$

499,629

 

 

8.1

%

Contract Awards (Unaudited)

 

 

Three Months Ended

(in thousands)

6/30/2023

 

6/30/2022

 

$ Change

 

% Change

Contract Awards

$

2,324,891

 

$

1,544,460

 

$

780,431

 

50.5

%

 

 

Twelve Months Ended

(in thousands)

6/30/2023

 

6/30/2022

 

$ Change

 

% Change

Contract Awards

$

10,118,442

 

$

7,107,824

 

$

3,010,618

 

42.4

%

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 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

 

Twelve Months Ended

 

 

6/30/2023

 

6/30/2022

 

% Change

 

6/30/2023

 

6/30/2022

 

% Change

 

 

Net income, as reported

$

107,767

 

 

$

92,969

 

 

15.9%

 

$

384,735

 

 

$

366,794

 

 

 

4.9%

 

 

Intangible amortization expense

 

18,618

 

 

 

19,189

 

 

-3.0%

 

 

75,426

 

 

 

74,133

 

 

 

1.7%

 

 

Tax effect of intangible amortization1

 

(4,524

)

 

 

(4,753

)

 

-4.8%

 

 

(19,236

)

 

 

(19,199

)

 

 

0.2%

 

 

Adjusted net income

$

121,861

 

 

$

107,405

 

 

13.5%

 

$

440,925

 

 

$

421,728

 

 

 

4.6%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Twelve Months Ended

 

 

 

6/30/2023

 

6/30/2022

 

% Change

 

6/30/2023

 

6/30/2022

 

% Change

 

 

Diluted EPS, as reported

$

4.68

 

 

$

3.93

 

 

19.1%

 

$

16.43

 

 

$

15.49

 

 

 

6.1%

 

 

Intangible amortization expense

 

0.81

 

 

 

0.81

 

 

0.0%

 

 

3.22

 

 

 

3.13

 

 

 

2.9%

 

 

Tax effect of intangible amortization1

 

(0.19

)

 

 

(0.20

)

 

-5.0%

 

 

(0.82

)

 

 

(0.81

)

 

 

1.2%

 

 

Adjusted diluted EPS

$

5.30

 

 

$

4.54

 

 

16.7%

 

$

18.83

 

 

$

17.81

 

 

 

5.7%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FY24 Current Guidance Range

 

 

(in millions, except per share data)

 

 

 

 

 

 

Low End

 

 

 

High End

 

 

Net income, as reported

 

 

 

 

 

 

$

386

 

 

 

---

 

 

$

411

 

 

 

Intangible amortization expense

 

 

 

 

 

 

 

72

 

 

 

---

 

 

 

72

 

 

 

Tax effect of intangible amortization1

 

 

 

 

 

 

 

(18

)

 

 

---

 

 

 

(18

)

 

 

Adjusted net income

 

 

 

 

 

 

$

440

 

 

 

---

 

 

$

465

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FY24 Current Guidance Range

 

 

 

 

 

 

 

 

 

Low End

 

 

 

High End

 

 

Diluted EPS, as reported

 

 

 

 

 

 

$

16.78

 

 

 

---

 

 

$

17.87

 

 

 

Intangible amortization expense

 

 

 

 

 

 

 

3.13

 

 

 

---

 

 

 

3.13

 

 

 

Tax effect of intangible amortization1

 

 

 

 

 

 

 

(0.78

)

 

 

---

 

 

 

(0.78

)

 

 

Adjusted diluted EPS

 

 

 

 

 

 

$

19.13

 

 

 

---

 

 

$

20.22

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Calculation uses an assumed full year statutory tax rate of 25.5% and 25.9% on non-GAAP tax deductible adjustments for June 30, 2023 and 2022, respectively.

Note: Numbers may not sum due to rounding.

Reconciliation of Net Income to Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) (Unaudited)

The Company views EBITDA and 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. EBITDA is a commonly used non-GAAP measure when comparing our results with those of other companies. We define EBITDA as GAAP net income plus net interest expense, income taxes, and depreciation and amortization expense (including depreciation within direct costs). We consider 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, which we do not believe are indicative of our operating performance. EBITDA margin is 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

 

Twelve Months Ended

 

 

(in thousands)

6/30/2023

 

6/30/2022

 

% Change

 

6/30/2023

 

6/30/2022

 

% Change

 

 

Net income

$

107,767

 

$

92,969

 

15.9%

 

$

384,735

 

$

366,794

 

4.9%

 

 

Plus:

 

 

 

 

 

 

 

 

 

 

 

 

 

Income taxes

 

16,873

 

 

15,602

 

8.1%

 

 

98,904

 

 

87,778

 

12.7%

 

 

Interest income and expense, net

 

24,156

 

 

11,266

 

114.4%

 

 

83,861

 

 

41,757

 

100.8%

 

 

Depreciation and amortization expense, including amounts within direct costs

 

36,898

 

 

37,255

 

-1.0%

 

 

148,482

 

 

141,179

 

5.2%

 

 

EBITDA

$

185,694

 

$

157,092

 

18.2%

 

$

715,982

 

$

637,508

 

12.3%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Twelve Months Ended

 

 

(in thousands)

6/30/2023

 

6/30/2022

 

% Change

 

6/30/2023

 

6/30/2022

 

% Change

 

 

Revenues, as reported

$

1,703,101

 

$

1,642,261

 

3.7%

 

$

6,702,546

 

$

6,202,917

 

8.1%

 

 

EBITDA

 

185,694

 

 

157,092

 

18.2%

 

 

715,982

 

 

637,508

 

12.3%

 

 

EBITDA margin

 

10.9%

 

 

9.6%

 

 

 

 

10.7%

 

 

10.3%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

Twelve Months Ended

 

 

(in thousands)

6/30/2023

 

6/30/2022

 

6/30/2023

 

6/30/2022

 

 

Net cash provided by operating activities

$

152,102

 

 

$

152,541

 

 

$

388,056

 

 

$

745,554

 

 

 

Cash used in (provided by) MARPA

 

(27,310

)

 

 

(118

)

 

 

(42,215

)

 

 

24,242

 

 

 

Net cash provided by operating activities excluding MARPA

 

124,792

 

 

 

152,423

 

 

 

345,841

 

 

 

769,796

 

 

 

Capital expenditures

 

(22,873

)

 

 

(35,822

)

 

 

(63,717

)

 

 

(74,564

)

 

 

Free cash flow

$

101,919

 

 

$

116,601

 

 

$

282,124

 

 

$

695,232

 

 

 

 

 

 

 

 

 

 

 

 

 

(in millions)

 

 

 

 

FY24

Current

Guidance

 

 

 

 

Net cash provided by operating activities

 

 

 

 

$

490

 

 

 

 

 

Cash used in (provided by) MARPA

 

 

 

 

 

 

 

 

 

 

Net cash provided by operating activities excluding MARPA

 

 

 

 

 

490

 

 

 

 

 

Capital expenditures

 

 

 

 

 

(90

)

 

 

 

 

Free cash flow

 

 

 

 

$

400

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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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