-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, FOtFkXCz6A4rGv1IRXz1w0masYoU4/yodRmMx+xEGTOsdyWr6X3Fs5C+i6U8aAy/ Mh9QfAuJOp/h44we7OF3GQ== 0001157523-10-002430.txt : 20100428 0001157523-10-002430.hdr.sgml : 20100428 20100428165811 ACCESSION NUMBER: 0001157523-10-002430 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20100428 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20100428 DATE AS OF CHANGE: 20100428 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CACI INTERNATIONAL INC /DE/ CENTRAL INDEX KEY: 0000016058 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-COMPUTER INTEGRATED SYSTEMS DESIGN [7373] IRS NUMBER: 541345888 STATE OF INCORPORATION: DE FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-31400 FILM NUMBER: 10777558 BUSINESS ADDRESS: STREET 1: 1100 N GLEBE ST CITY: ARLINGTON STATE: VA ZIP: 22201 BUSINESS PHONE: 7038417800 MAIL ADDRESS: STREET 1: 1100 NORTH GLEBE ROAD CITY: ARLINGTON STATE: VA ZIP: 22201 FORMER COMPANY: FORMER CONFORMED NAME: CACI INC /DE/ DATE OF NAME CHANGE: 19870119 FORMER COMPANY: FORMER CONFORMED NAME: CONSOLIDATED ANALYSIS CENTERS INC DATE OF NAME CHANGE: 19730102 FORMER COMPANY: FORMER CONFORMED NAME: CALIFORNIA ANALYSIS CENTER INC DATE OF NAME CHANGE: 19680603 8-K 1 a6269064.htm CACI INTERNATIONAL INC 8-K

U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

Form 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934

April 28, 2010
(Date of Report)

CACI International Inc
(Exact name of registrant as specified in its Charter)

Delaware

001-31400

54-1345899

(State or other jurisdiction

of incorporation)

(Commission File Number) (IRS Employer Identification Number)

1100 N. Glebe Road
Arlington, Virginia 22201
(Address of Principal executive offices)(ZIP code)

(703) 841-7800
(Registrant’s telephone number, including area code)


Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))


ITEMS 2.02
and 7.01:

RESULTS OF OPERATIONS AND FINANCIAL CONDITION;
REGULATION FD DISCLOSURE

On April 28, 2010, the Registrant released its financial results for the third quarter of fiscal year 2010.

A copy of the Registrant’s press release announcing the financial results as well as the schedule for a conference call and “web cast” on April 29, 2010 is attached as Exhibit 99 to this current report on Form 8-K.

ITEM 9.01: FINANCIAL STATEMENTS AND EXHIBITS

(d) Exhibits
 
Exhibit 99 Press Release dated April 28, 2010 announcing CACI’s financial results for the third quarter of fiscal year 2010.

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

CACI International Inc
 
Registrant


By:

/s/ Arnold D. Morse

Arnold D. Morse
Senior Vice President, Chief Legal
Officer and Secretary

EX-99 2 a6269064ex99.htm EXHIBIT 99

Exhibit 99

CACI Reports Record Results for its Fiscal 2010 Third Quarter

Diluted earnings per share increased 20.6 percent to $0.87

Revenue increased 16.3 percent to $784 million, driven by 14.2 percent organic growth

Contract funding orders increased 19.2 percent to $886 million

ARLINGTON, Va.--(BUSINESS WIRE)--April 28, 2010--CACI International Inc (NYSE: CACI), a leading professional services and information technology solutions provider to the federal government, announced results today for its third fiscal quarter ended March 31, 2010.

We are pleased to report record third quarter net income of $26.7 million, or $0.87 diluted earnings per share. This net income was a 21.6 percent increase over net income of $22.0 million, or $0.72 diluted earnings per share, for the same period last year. The 16.3 percent increase in revenue in the quarter was driven by organic growth of 14.2 percent, reflecting the continued strong performance of our defense and intelligence businesses.

Commenting on the company’s financial results, Paul Cofoni, CACI’s President and CEO, said, “Our results this quarter continue to reflect the strength of our strategy to provide mission-critical services in support of well-funded national security priorities. We exceeded our financial goals of mid- to high-single-digit organic revenue growth and double-digit earnings growth. We continued to experience growth in all of our core competencies, with another particularly strong quarter from C4ISR Integration Services. Funding orders maintained their strong pace, and we successfully defended all of our major recompeted contracts. We continued to generate strong cash flows, and we completed the important previously announced acquisition of SystemWare, Inc. that enhances our solutions in counterintelligence and cybersecurity. We are very pleased to deliver another quarter of record results to our shareholders.”

Third Quarter Results

                         
(in millions except per-share data)       Q3, FY10       Q3, FY09       % Change
Revenue       $784.2       $674.0       16.3%
Operating income       $47.3       $45.0       5.2%
Net income       $26.7       $22.0       21.6%
Diluted earnings per share       $0.87       $0.72       20.6%
                 

Net income and diluted earnings per share grew as a result of higher operating income, reduced net interest expense and a lower corporate tax rate due primarily to the performance of investments in CACI’s deferred compensation plan and tax benefits related to software development.


Additional Financial Metrics

             
($ in millions, except per share data)   Q3, FY10   Q3, FY09   % Change
Earnings before interest, taxes, depreciation and amortization (EBITDA), a non-GAAP measure   $61.5   $56.7   8.4%
Diluted adjusted earnings per share, a non-GAAP measure   $1.32   $1.10   20.0%
Days sales outstanding   59   61    
     

Third Quarter Contract Funding Orders and Awards

  • Contract funding orders were $886 million, a 19.2 percent increase over the third quarter of FY09. Funded backlog was $1.9 billion, a 17.0 percent increase over the third quarter of FY09. Total backlog was $7.3 billion.
  • We won a prime position on a new multiple award, five-year indefinite delivery, indefinite quantity task order with a ceiling of $588 million to support the U.S. Navy’s Space and Naval Warfare Systems (SPAWAR) Command’s command and control operations.
  • We also won additional contract awards with an estimated value of $455 million including:
    • A $219 million award from the U.S. Navy to provide C4ISR and business software and maintenance services to the SPAWAR Systems Center Atlantic for up to five years.
    • Approximately $65 million in previously unannounced awards from the Intelligence Community.

Third Quarter Acquisition and Recognition

  • We completed the acquisition of SystemWare, Inc., a $16 million designer, manufacturer and provider of signals acquisition and analysis systems that enable users to monitor and detect cybersecurity vulnerabilities.
  • CACI’s U.S. operations achieved an enterprise-wide Capability Maturity Model Integration (CMMI®) Maturity Level 3 rating, recognizing our delivery of software engineering and systems integration capabilities to our customers.

CEO Commentary

Mr. Cofoni commented, “Looking ahead to 2011, we are confident in our ability to continue to deliver double-digit earnings growth and mid- to high-single-digit organic revenue growth by successfully executing our strategy of providing mission-critical services to support national security priorities in well-funded areas. The administration has proposed a four percent increase in the 2011 Department of Defense baseline budget, with an eight and one half percent increase in the Operations and Maintenance accounts where we derive the majority of our funding. Our pipeline is robust and includes especially attractive bid opportunities in the areas of cybersecurity and national intelligence. We are accelerating our M&A program to capitalize on the increasing number of reasonably valued attractive candidates that fit our growth strategy, and the availability of capital at reasonable interest rates. We believe we remain well-positioned to grow and enhance shareholder value.”


Nine Month Results

             
(in millions except per-share data)   9 Months, FY10   9 Months, FY09   % Change
Revenue   $2,300.4   $2,001.3   14.9%
Operating income   $140.8   $131.5   7.0%
Net income   $76.6   $62.2   23.1%
Diluted earnings per share   $2.51   $2.04   22.7%
     

Revenue in all of our core competencies grew with the strongest increase in C4ISR Integration Services. Operating income increased in the first nine months as a result of solid growth in both direct labor and other direct costs. Net income increased as a result of higher operating income and lower interest expense and income taxes.

Additional Financial Metrics

             
  9 Months,   9 Months,  
($ in millions, except per share data)   FY10   FY09   % Change
Earnings before interest, taxes, depreciation and amortization (EBITDA), a non-GAAP measure   $179.4   $166.7   7.6%
Diluted adjusted earnings per share, a non-GAAP measure   $3.83   $3.19   19.8%
 

CACI Updates Its FY10 Guidance

We are updating our FY10 guidance. The table below summarizes the guidance ranges for FY10:

                 
      Current FY10       Previous FY10
(In millions except for earnings per share)       Guidance       Guidance
Revenue       $3,050-$3,125       $3,050-$3,125
Net income       $103.8-$107.4       $101.0-$107.1
Diluted earnings per share       $3.38-$3.50       $3.30-$3.50
Diluted weighted average shares       30.7       30.6
 

This guidance represents our views as of April 28, 2010. Investors are reminded that actual results may differ from these estimates for the reasons described below and in our filings with the Securities and Exchange Commission.

Conference Call Information

We have scheduled a conference call for 8:30 AM Eastern Time Thursday, April 29, 2010 during which members of our senior management team 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 conference call and view the accompanying exhibits over the Internet by logging on to our homepage, www.caci.com, at the scheduled time, or you may dial 877-303-9143 and enter the confirmation code 61017336. A replay of the call will also be available over the Internet beginning at 1:00 PM Eastern Time Thursday, April 29, 2010 and can be accessed through our homepage (www.caci.com) by clicking on the CACI Investor Info button.


About CACI

CACI International Inc provides the professional services and IT solutions needed to prevail in today’s defense, intelligence, homeland security, and federal civilian government arenas. We deliver enterprise IT and network services; data, information, and knowledge management services; business system solutions; logistics and material readiness; C4ISR integration services; cyber security; integrated security and intelligence solutions; and program management and SETA support services. CACI services and solutions help our federal clients provide for national security, improve communications and collaboration, secure the integrity of information systems and networks, enhance data collection and analysis, and increase efficiency and mission effectiveness. We add value to our clients’ operations, increase their skills and capabilities, and enhance their missions. CACI is a member of the Fortune 1000 Largest Companies and the Russell 2000 index. CACI provides dynamic careers for approximately 13,000 employees working in over 120 offices in the U.S. and Europe. CACI is the IT provider for a networked world. Visit CACI on the web at www.caci.com and www.asymmetricthreat.net.

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 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.


 

(Financial Tables follow)

 
 
Selected Financial Data
 
CACI International Inc
Condensed Consolidated Statements of Operations (Unaudited)
(Amounts in thousands, except per share amounts)
 
  Quarter Ended     Nine Months Ended  
3/31/2010   3/31/2009 3/31/2010   3/31/2009
  As adjusted* % Change   As adjusted* % Change
Revenue $ 784,169   $ 673,994   16.3 % $ 2,300,414   $ 2,001,261   14.9 %
Costs of revenue
Direct costs 551,191 461,757 19.4 % 1,604,848 1,366,790 17.4 %
Indirect costs and selling expenses 171,451 155,445 10.3 % 515,849 467,297 10.4 %
Depreciation and amortization   14,205     11,818   20.2 %   38,906     35,633   9.2 %
Total costs of revenue   736,847     629,020   17.1 %   2,159,603     1,869,720   15.5 %
Operating income 47,322 44,974 5.2 % 140,811 131,541 7.0 %
Interest expense and other, net   6,488     7,538   -13.9 %   20,874     23,699   -11.9 %
Income before income taxes 40,834 37,436 9.1 % 119,937 107,842 11.2 %
Income taxes   14,055     15,356   -8.5 %   42,973     45,141   -4.8 %

Net income before noncontrolling interest in earnings of joint venture

26,779 22,080 21.3 % 76,964 62,701 22.7 %

Noncontrolling interest in earnings of joint venture

  (71 )   (108 )   (349 )   (487 )
Net income attributable to CACI $ 26,708   $ 21,972   21.6 % $ 76,615   $ 62,214   23.1 %
 
Basic earnings per share $ 0.89 $ 0.73 20.6 % $ 2.55 $ 2.08 22.6 %
Diluted earnings per share $ 0.87 $ 0.72 20.6 % $ 2.51 $ 2.04 22.7 %
 
Weighted average shares used in per share computations:
Basic 30,171 29,939 30,104 29,979
Diluted 30,641 30,410 30,561 30,446
 

*Certain balances for the period ended March 31, 2009 have been adjusted to reflect the retroactive application of new accounting standards related to convertible debt and minority interest.

 
 
Statement of Operations Data (Unaudited)
 
Quarter Ended Nine Months Ended
3/31/2010 3/31/2009 3/31/2010 3/31/2009
  As adjusted* % Change   As adjusted* % Change  
Operating income margin 6.0 % 6.7 % 6.1 % 6.6 %
Tax rate 34.5 % 41.1 % 35.9 % 42.0 %
Net income margin 3.4 % 3.3 % 3.3 % 3.1 %
 
EBITDA** $ 61,456 $ 56,684 8.4 % $ 179,368 $ 166,687 7.6 %
EBITDA Margin 7.8 % 8.4 % 7.8 % 8.3 %
 
Adjusted net income** $ 40,432 $ 33,427 21.0 % $ 116,992 $ 97,253 20.3 %
Diluted adjusted earnings per share $ 1.32 $ 1.10 20.0 % $ 3.83 $ 3.19 19.8 %
 

*Certain balances for the period ended March 31, 2009 have been adjusted to reflect the retroactive application of new accounting standards related to convertible debt and minority interest.

**See Reconciliation of Net Income to Earnings before Interest, Taxes, Depreciation and Amortization and to Adjusted Net Income on page 10.

 

 
Selected Financial Data (Continued)
 
CACI International Inc
Condensed Consolidated Balance Sheets (Unaudited)
(Amounts in thousands)
    3/31/2010     6/30/2009
  As adjusted*
ASSETS:
Current assets
Cash and cash equivalents $ 174,747 $ 208,488
Accounts receivable, net 524,207 477,025
Prepaid expenses and other current assets   57,400   39,319
Total current assets 756,354 724,832
 
Goodwill and intangible assets, net 1,281,539 1,181,579
Property and equipment, net 59,650 30,923
Other long-term assets   73,128   68,745
Total assets $ 2,170,671 $ 2,006,079
 
LIABILITIES AND SHAREHOLDERS' EQUITY:
Current liabilities
Current portion of long-term debt $ 2,972 $ 9,464
Accounts payable 82,041 87,300
Accrued compensation and benefits 149,150 137,843
Other accrued expenses and current liabilities   115,673   83,297
Total current liabilities 349,836 317,904
 
Long-term debt, net of current portion 526,187 570,078
Other long-term liabilities   164,848   88,489
Total liabilities   1,040,871   976,471
 
Shareholders' equity   1,129,800   1,029,608
Total liabilities and shareholders' equity $ 2,170,671 $ 2,006,079
 
*Certain balances as of June 30, 2009 have been adjusted to reflect the retroactive application of new accounting standards related to convertible debt and minority interest.
 

 
Selected Financial Data (Continued)
 
CACI International Inc
Condensed Consolidated Statements of Cash Flows (Unaudited)
(Amounts in thousands)
 
  Nine Months Ended
3/31/2010   3/31/2009
  as adjusted*
CASH FLOWS FROM OPERATING ACTIVITIES:

Net income before noncontrolling interest in earnings of joint venture

$ 76,964 $ 62,701

Reconciliation of net income to net cash provided by operating activities:

Depreciation and amortization 38,906 35,633
Non-cash interest expense 7,811 7,299
Amortization of deferred financing costs 1,819 1,681
Stock-based compensation expense 17,950 13,084
(Benefit) provision for deferred income taxes (2,076 ) 9,457

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

Accounts receivable, net (41,737 ) (31,045 )
Prepaid expenses and other current assets (11,517 ) 3,133
Accounts payable and accrued expenses 19,672 4,554
Accrued compensation and benefits 4,888 (6,208 )
Income taxes receivable and payable (2,245 ) (325 )
Other liabilities   12,512     (5,676 )
Net cash provided by operating activities   122,947     94,288  
 
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures (20,519 ) (9,080 )
Purchases of businesses, net of cash acquired (88,059 ) (8,787 )
Other   945     502  
Net cash used in investing activities   (107,633 )   (17,365 )
 
CASH FLOWS FROM FINANCING ACTIVITIES:
Net payments under credit facilities (52,857 ) (3,672 )
Proceeds from employee stock purchase plans 3,658 4,668
Proceeds from exercise of stock options 5,455 2,069
Purchase of common stock (2,610 ) (22,798 )
Other   (56 )   (961 )
Net cash used in financing activities   (46,410 )   (20,694 )
Effect of exchange rate changes on cash and cash equivalents   (2,645 )   (2,318 )
Net (decrease) increase in cash and cash equivalents (33,741 ) 53,911
Cash and cash equivalents, beginning of period   208,488     120,396  
Cash and cash equivalents, end of period $ 174,747   $ 174,307  
 
*Certain balances for the period ended March 31, 2009 have been adjusted to reflect the retroactive application of new accounting standards related to convertible debt and minority interest.
 

 
Selected Financial Data (Continued)
 
Revenue by Customer Type (Unaudited)
     
Quarter Ended              
(dollars in thousands) 3/31/2010   3/31/2009  

$ Change

 

% Change

Department of Defense $ 611,884   78.0 %   $ 514,713   76.4 % $ 97,171 18.9 %
Federal Civilian Agencies 130,661 16.7 % 133,568 19.8 % (2,907 ) -2.2 %
Commercial 37,867 4.8 % 20,860 3.1 % 17,007 81.5 %
State and Local Governments   3,757   0.5 %     4,853   0.7 %     (1,096 )   -22.6 %
Total $ 784,169   100.0 %   $ 673,994   100.0 %   $ 110,175     16.3 %
 
Nine Months Ended              
(dollars in thousands) 3/31/2010   3/31/2009  

$ Change

  % Change
Department of Defense $ 1,786,846 77.7 % $ 1,514,421 75.7 % $ 272,425 18.0 %
Federal Civilian Agencies 393,408 17.1 % 405,119 20.2 % (11,711 ) -2.9 %
Commercial 107,087 4.6 % 66,375 3.3 % 40,712 61.3 %
State and Local Governments   13,073   0.6 %     15,346   0.8 %     (2,273 )   -14.8 %
Total $ 2,300,414   100.0 %   $ 2,001,261   100.0 %   $ 299,153     14.9 %
 
 
Revenue by Contract Type (Unaudited)
 
Quarter Ended              
(dollars in thousands) 3/31/2010   3/31/2009  

$ Change

 

% Change

Time and materials $ 363,997 46.4 % $ 316,998 47.0 % $ 46,999 14.8 %
Cost reimbursable 259,235 33.1 % 221,792 32.9 % 37,443 16.9 %
Fixed price   160,937   20.5 %     135,204   20.1 %     25,733     19.0 %
Total $ 784,169   100.0 %   $ 673,994   100.0 %   $ 110,175     16.3 %
 
Nine Months Ended              
(dollars in thousands) 3/31/2010   3/31/2009  

$ Change

 

% Change

Time and materials $ 1,083,328 47.1 % $ 966,314 48.3 % $ 117,014 12.1 %
Cost reimbursable 748,240 32.5 % 629,028 31.4 % 119,212 19.0 %
Fixed price   468,846   20.4 %     405,919   20.3 %     62,927     15.5 %
Total $ 2,300,414   100.0 %   $ 2,001,261   100.0 %   $ 299,153     14.9 %
 
 
Revenue Received as a Prime versus Subcontractor (Unaudited)
 
Quarter Ended              
(dollars in thousands) 3/31/2010   3/31/2009  

$ Change

  % Change
Prime $ 671,593 85.6 % $ 558,698 82.9 % $ 112,895 20.2 %
Subcontractor   112,576   14.4 %     115,296   17.1 %     (2,720 )   -2.4 %
Total $ 784,169   100.0 %   $ 673,994   100.0 %   $ 110,175     16.3 %
 
Nine Months Ended              
(dollars in thousands) 3/31/2010   3/31/2009  

$ Change

  % Change
Prime $ 1,955,928 85.0 % $ 1,653,623 82.6 % $ 302,305 18.3 %
Subcontractor   344,486   15.0 %     347,638   17.4 %     (3,152 )   -0.9 %
Total $ 2,300,414   100.0 %   $ 2,001,261   100.0 %   $ 299,153     14.9 %
 

 
Selected Financial Data (Continued)
 
Contract Funding Orders Received (Unaudited)
 
  Quarter Ended        
(dollars in thousands) 3/31/2010   3/31/2009  

$ Change

  % Change
Contract Funding Orders $ 886,050   $ 743,329   $ 142,721   19.2 %
   
Nine Months Ended            
(dollars in thousands) 3/31/2010   3/31/2009  

$ Change

  % Change
Contract Funding Orders $ 2,526,833   $ 2,224,866   $ 301,967   13.6 %
 
 
Direct Costs by Category (Unaudited)
 
Quarter Ended
(dollars in thousands) 3/31/2010   3/31/2009  

$ Change

  % Change
Direct labor $ 206,079   37.4 %   $ 193,305   41.9 %   $ 12,774   6.6 %
Other direct costs   345,112   62.6 %     268,452   58.1 %     76,660   28.6 %
Total direct costs $ 551,191   100.0 %   $ 461,757   100.0 %   $ 89,434   19.4 %
 
Nine Months Ended
(dollars in thousands) 3/31/2010   3/31/2009  

$ Change

  % Change
Direct labor $ 598,883 37.3 % $ 556,723 40.7 % $ 42,160 7.6 %
Other direct costs   1,005,965   62.7 %     810,067   59.3 %     195,898   24.2 %
Total direct costs $ 1,604,848   100.0 %   $ 1,366,790   100.0 %   $ 238,058   17.4 %
 
 

Reconciliation of Total Revenue Growth and Organic Revenue Growth

(Unaudited)

 
We are presenting organic revenue growth to reflect the effect of acquisitions on total revenue growth. Revenue generated from the date a business is acquired through the first anniversary of that date is considered acquired revenue growth. All remaining revenue growth is considered organic. We believe that this non-GAAP financial measure provides investors with useful information to evaluate the growth rate of our core business. This non-GAAP measure 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) 3/31/2010   3/31/2009   % Change   3/31/2010   3/31/2009   % Change
Revenue, as reported $ 784,169   $ 673,994   16.3 %   $ 3,029,315   $ 2,656,277   14.0 %
Less:
Acquired revenue   14,552                 43,814            
Organic revenue $ 769,617   $ 673,994   14.2 %   $ 2,985,501   $ 2,656,277   12.4 %
 

 

Selected Financial Data (Continued)

Reconciliation of Net Income to Earnings Before Interest, Taxes, Depreciation

and Amortization (EBITDA) and to Adjusted Net Income

(Unaudited)

 
The Company views EBITDA, EBITDA margin, Adjusted Net Income and Diluted Adjusted Earnings Per Share 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 believe Adjusted Net Income is a significant driver of long-term value and is used by investors to measure our performance. This measure in particular assists readers in further understanding our results and trends from period-to-period by removing certain non-cash items that do not impact the cash flow performance of our business. EBITDA is defined by us as GAAP net income attributable to CACI plus net interest expense, income taxes, and depreciation and amortization. EBITDA margin is EBITDA divided by revenue. Adjusted Net Income is defined by us as GAAP net income attributable to CACI plus stock-based compensation expense, depreciation and amortization, amortization of financing costs, and non-cash interest expense net of related tax effects. Diluted Adjusted Earnings Per Share is Adjusted Net Income divided by diluted weighted-average shares, as reported. EBITDA and Adjusted Net Income as defined by us may not be computed in the same manner as similarly titled measures used by other companies. These non-GAAP measures should not be considered in isolation or as a substitute for performance measures prepared in accordance with GAAP.
 
 
  Quarter Ended   Nine Months Ended
(dollars in thousands) 3/31/2010   3/31/2009     3/31/2010   3/31/2009  
    As adjusted*   % Change       As adjusted*   % Change
Net income attributable to CACI $ 26,708 $ 21,972 21.6 % $ 76,615 $ 62,214 23.1 %
Plus:
Income taxes 14,055 15,356 -8.5 % 42,973 45,141 -4.8 %
Interest income and expense, net 6,488 7,538 -13.9 % 20,874 23,699 -11.9 %
Depreciation and amortization   14,205       11,818     20.2 %     38,906       35,633     9.2 %
EBITDA $ 61,456     $ 56,684     8.4 %   $ 179,368     $ 166,687     7.6 %
 
 
Quarter Ended   Nine Months Ended
(dollars in thousands) 3/31/2010 3/31/2009 3/31/2010 3/31/2009
    As adjusted*   % Change       As adjusted*   % Change
Revenue, as reported $ 784,169 $ 673,994 16.3 % $ 2,300,414 $ 2,001,261 14.9 %
EBITDA $ 61,456     $ 56,684     8.4 %   $ 179,368     $ 166,687     7.6 %
EBITDA margin   7.8 %     8.4 %           7.8 %     8.3 %      
 
 
Quarter Ended   Nine Months Ended
(dollars in thousands) 3/31/2010 3/31/2009 3/31/2010 3/31/2009
    As adjusted*   % Change       As adjusted*   % Change
Net income attributable to CACI $ 26,708 $ 21,972 21.6 % $ 76,615 $ 62,214 23.1 %
Plus:
Stock-based compensation 5,205 4,007 29.9 % 17,950 13,084 37.2 %
Depreciation and amortization 14,205 11,818 20.2 % 38,906 35,633 9.2 %
Amortization of financing costs 537 561 -4.3 % 1,819 1,681 8.2 %
Non-cash interest expense 2,651 2,477 7.0 % 7,811 7,299 7.0 %
Less:
Related tax effect   (8,874 )     (7,408 )   19.8 %     (26,109 )     (22,658 )   15.2 %
Adjusted net income $ 40,432     $ 33,427     21.0 %   $ 116,992     $ 97,253     20.3 %
 
 
Quarter Ended   Nine Months Ended
(shares in thousands) 3/31/2010 3/31/2009 3/31/2010 3/31/2009
    As adjusted*   % Change       As adjusted*   % Change

Diluted weighted average shares, as reported

30,641 30,410 30,561 30,446
Diluted earnings per share, as reported $ 0.87     $ 0.72     20.6 %   $ 2.51     $ 2.04     22.7 %
Diluted adjusted earnings per share $ 1.32     $ 1.10     20.0 %   $ 3.83     $ 3.19     19.8 %
 
*Certain balances for the periods ended March 31, 2009 have been adjusted to reflect the retroactive application of new accounting standards related to convertible debt and minority interest.
 

CONTACT:
CACI International Inc
Corporate Communications and Media:
Jody Brown, Executive Vice President, Public Relations
(703) 841-7801, jbrown@caci.com
or
Investor Relations:
David Dragics, Senior Vice President, Investor Relations
(866) 606-3471, ddragics@caci.com

-----END PRIVACY-ENHANCED MESSAGE-----