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
May
4, 2011
(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 |
RESULTS OF OPERATIONS AND FINANCIAL CONDITION; |
and 7.01: |
REGULATION FD DISCLOSURE |
On May 4, 2011, the Registrant released its financial results for the third quarter of fiscal year 2011.
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 May 5, 2011 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 May 4, 2011 announcing CACI’s financial results for the third quarter of fiscal year 2011. |
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 |
Exhibit 99
CACI Reports Record Results for Its Fiscal 2011 Third Quarter and Raises Guidance
Diluted earnings per share increased 33.5 percent to a record $1.16
Revenue increased 16.5 percent to a record $913.4 million
Organic revenue increased 14.3 percent
ARLINGTON, Va.--(BUSINESS WIRE)--May 4, 2011--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, 2011.
Third Quarter Results
(in millions except per share data) | Q3, FY11 | Q3, FY10 | % Change | |||
Revenue | $913.4 | $784.2 | 16.5% | |||
Operating income | $61.8 | $47.3 | 30.6% | |||
Net income | $36.4 | $26.7 | 36.4% | |||
Diluted earnings per share | $1.16 | $0.87 | 33.5% | |||
We are pleased to report record third quarter Fiscal Year 2011 (FY11) revenue of $913.4 million, an increase of 16.5 percent from the third quarter of Fiscal Year 2010 (FY10). The revenue increase was driven primarily by organic growth of 14.3 percent, reflecting continued growth in our C4ISR Solutions and Services and Business System Solutions core competencies. Operating income grew 30.6 percent over the prior year period to a record $61.8 million, driven by strong growth in direct labor and continued cost control. In addition, we benefitted from a $2.6 million decrease to our earn-out related liability for acquisitions made in FY10 and a lower than expected tax rate. Net income for the third quarter of FY11 was a record $36.4 million, or $1.16 diluted earnings per share, an increase of 36.4 percent over net income of $26.7 million, or $0.87 diluted earnings per share, for the same period in FY10. Net cash provided by operations in the quarter was $77.6 million.
CEO Commentary and Outlook
Commenting on the company’s results, Paul Cofoni, CACI’s President and CEO, said, “We delivered a very strong quarter, exceeding our goal of mid- to high-single-digit organic revenue growth and producing outstanding earnings growth. Our robust pipeline, high win rate, operational excellence, and margin improvement initiatives yielded our exceptional financial results. We completed our June 2010 share repurchase program. In addition, as part of our balanced capital allocation strategy, CACI’s Board of Directors recently approved a new $175 million share repurchase program.
“CACI operates in a large addressable market that continues to provide ample opportunities, even in a period of spending constraints, as evidenced by our revenue growth. We are well positioned in the areas of defense, intelligence, homeland security and the transformation and modernization of government. With the federal budget in place for the remainder of the government’s fiscal year 2011, we expect funding activity to increase over the next two quarters. The expansion of our cyber security practice is producing results as demonstrated by a recent cyber-related award under the S3 contract. Given the strength of our pipeline and our focus on national security priorities in well-funded areas, we are confident in our ability to deliver another year of record results in FY11 and to further increase shareholder value in the years to come.”
Additional Financial Metrics
(in millions except per share data) | Q3, FY11 | Q3, FY10 | % Change | |||
Earnings before interest, taxes, depreciation and amortization (EBITDA), a non-GAAP measure | $76.7 | $61.5 | 24.8% | |||
Diluted adjusted earnings per share, a non-GAAP measure | $1.61 | $1.32 | 21.8% | |||
Days sales outstanding | 54 | 59 | ||||
Third Quarter Contract Funding Orders and Awards
Other Significant Highlights
Third Quarter Recognition
Nine Month Results
(in millions except per share data) | 9 Months, FY11 | 9 Months, FY10 | % Change | |||
Revenue | $2,614.6 | $2,300.4 | 13.7% | |||
Operating income | $173.3 | $140.8 | 23.1% | |||
Net income | $98.3 | $76.6 | 28.3% | |||
Diluted earnings per share | $3.16 | $2.51 | 26.1% | |||
Revenue in all of our core competencies grew in the first nine months of FY11, led by increases in C4ISR Solutions and Services and Integrated Security and Intelligence Solutions. Operating income increased 23.1 percent in the first nine months of FY11, primarily as a result of solid growth in direct labor and ongoing cost control. Revenue, operating income and net income all reached record levels in the first nine months of FY11. Net cash provided by operations for the first nine months was $146.8 million.
Additional Financial Metrics
(in millions except per share data) |
9 Months, |
9 Months, |
% Change |
|||
Earnings before interest, taxes, depreciation and amortization (EBITDA), a non-GAAP measure | $215.7 | $179.4 | 20.3% | |||
Diluted adjusted earnings per share, a non-GAAP measure | $4.44 | $3.83 | 16.1% | |||
CACI Increases its FY11 Guidance
We are increasing our FY11 guidance as a result of our strong third quarter performance. The table below summarizes the new guidance ranges for FY11:
(in millions except per share data) |
Current FY11 |
Previous FY11 |
||
Revenue | $3,500 - $3,630 | $3,500 - $3,630 | ||
Net income | $130 - $135 | $127 - $132 | ||
Diluted earnings per share | $4.15 - $4.30 | $4.05 - $4.20 | ||
Diluted weighted average shares | 31.3 | 31.3 | ||
This guidance represents our views as of May 4, 2011. Investors are reminded that actual results may differ for the reasons described herein 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, May 5, 2011, 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 49067366. A replay of the call will also be available over the Internet beginning at 1:00 PM Eastern Time Thursday, May 5, 2011 and can be accessed through our homepage (www.caci.com) by clicking on the CACI Investor Info button.
About CACI
CACI provides professional services and IT solutions needed to prevail in the areas of defense, intelligence, homeland security, and IT modernization and government transformation. We deliver enterprise IT and network services; data, information, and knowledge management services; business system solutions; logistics and material readiness; C4ISR solutions and services; cyber solutions; 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. CACI is a member of the Fortune 1000 Largest Companies and the Russell 2000 index. CACI provides dynamic careers for approximately 13,700 employees working in over 120 offices in the U.S. and internationally. 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 prolonged weakness; terrorist activities or war; changes in interest rates; currency fluctuations; significant fluctuations in the equity markets; changes in our effective tax rate; valuation of contingent consideration in connection with business combinations; 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 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, the Defense Contract Management Agency, or other government entities with cognizant oversight; 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 and 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.
(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 | |||||||||||||||||||||
3/31/2011 | 3/31/2010 | % Change | 3/31/2011 | 3/31/2010 | % Change | |||||||||||||||||
Revenue | $ | 913,369 | $ | 784,169 | 16.5 | % | $ | 2,614,618 | $ | 2,300,414 | 13.7 | % | ||||||||||
Costs of revenue | ||||||||||||||||||||||
Direct costs | 645,404 | 551,191 | 17.1 | % | 1,843,410 | 1,604,848 | 14.9 | % | ||||||||||||||
Indirect costs and selling expenses | 191,403 | 171,451 | 11.6 | % | 555,972 | 515,849 | 7.8 | % | ||||||||||||||
Depreciation and amortization | 14,777 | 14,205 | 4.0 | % | 41,919 | 38,906 | 7.7 | % | ||||||||||||||
Total costs of revenue | 851,584 | 736,847 | 15.6 | % | 2,441,301 | 2,159,603 | 13.0 | % | ||||||||||||||
Operating income | 61,785 | 47,322 | 30.6 | % | 173,317 | 140,811 | 23.1 | % | ||||||||||||||
Interest expense and other, net | 5,674 | 6,488 | -12.5 | % | 17,498 | 20,874 | -16.2 | % | ||||||||||||||
Income before income taxes | 56,111 | 40,834 | 37.4 | % | 155,819 | 119,937 | 29.9 | % | ||||||||||||||
Income taxes | 19,397 | 14,055 | 38.0 | % | 56,781 | 42,973 | 32.1 | % | ||||||||||||||
Net income before noncontrolling interest in earnings of joint venture |
36,714 | 26,779 | 37.1 | % | 99,038 | 76,964 | 28.7 | % | ||||||||||||||
Noncontrolling interest in earnings of joint venture |
(287 | ) | (71 | ) | (721 | ) | (349 | ) | ||||||||||||||
Net income attributable to CACI | $ | 36,427 | $ | 26,708 | 36.4 | % | $ | 98,317 | $ | 76,615 | 28.3 | % | ||||||||||
Basic earnings per share | $ | 1.20 | $ | 0.89 | 35.5 | % | $ | 3.24 | $ | 2.55 | 27.4 | % | ||||||||||
Diluted earnings per share | $ | 1.16 | $ | 0.87 | 33.5 | % | $ | 3.16 | $ | 2.51 | 26.1 | % | ||||||||||
Weighted average shares used in per share computations: | ||||||||||||||||||||||
Basic | 30,373 | 30,171 | 30,321 | 30,104 | ||||||||||||||||||
Diluted | 31,300 | 30,641 | 31,102 | 30,561 | ||||||||||||||||||
Statement of Operations Data (Unaudited) | ||||||||||||||||||||||
Quarter Ended | Nine Months Ended | |||||||||||||||||||||
3/31/2011 | 3/31/2010 | % Change | 3/31/2011 | 3/31/2010 | % Change | |||||||||||||||||
Operating income margin | 6.8 | % | 6.0 | % | 6.6 | % | 6.1 | % | ||||||||||||||
Tax rate | 34.7 | % | 34.5 | % | 36.6 | % | 35.9 | % | ||||||||||||||
Net income margin | 4.0 | % | 3.4 | % | 3.8 | % | 3.3 | % | ||||||||||||||
EBITDA** | $ | 76,709 | $ | 61,456 | 24.8 | % | $ | 215,702 | $ | 179,368 | 20.3 | % | ||||||||||
EBITDA Margin | 8.4 | % | 7.8 | % | 8.2 | % | 7.8 | % | ||||||||||||||
Adjusted net income** | $ | 50,287 | $ | 40,432 | 24.4 | % | $ | 138,193 | $ | 116,992 | 18.1 | % | ||||||||||
Diluted adjusted earnings per share | $ | 1.61 | $ | 1.32 | 21.8 | % | $ | 4.44 | $ | 3.83 | 16.1 | % | ||||||||||
**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) | ||||||
3/31/2011 | 6/30/2010 | |||||
ASSETS: | ||||||
Current assets | ||||||
Cash and cash equivalents | $ | 98,348 | $ | 254,543 | ||
Accounts receivable, net | 573,112 | 531,033 | ||||
Prepaid expenses and other current assets | 55,935 | 55,170 | ||||
Total current assets | 727,395 | 840,746 | ||||
Goodwill and intangible assets, net | 1,383,614 | 1,270,159 | ||||
Property and equipment, net | 60,549 | 58,666 | ||||
Other long-term assets | 98,855 | 75,195 | ||||
Total assets | $ | 2,270,413 | $ | 2,244,766 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY: | ||||||
Current liabilities | ||||||
Current portion of long-term debt | $ | 7,500 | $ | 278,653 | ||
Accounts payable | 101,081 | 98,421 | ||||
Accrued compensation and benefits | 166,701 | 152,790 | ||||
Other accrued expenses and current liabilities | 167,909 | 128,559 | ||||
Total current liabilities | 443,191 | 658,423 | ||||
Long-term debt, net of current portion | 401,435 | 252,451 | ||||
Other long-term liabilities | 165,088 | 160,737 | ||||
Total liabilities | 1,009,714 | 1,071,611 | ||||
Shareholders' equity | 1,260,699 | 1,173,155 | ||||
Total liabilities and shareholders' equity | $ | 2,270,413 | $ | 2,244,766 | ||
Selected Financial Data (Continued) | ||||||||
CACI International Inc | ||||||||
Condensed Consolidated Statements of Cash Flows (Unaudited) | ||||||||
(Amounts in thousands) | ||||||||
Nine Months Ended | ||||||||
3/31/2011 | 3/31/2010 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net income before noncontrolling interest in earnings of joint venture |
$ | 99,038 | $ | 76,964 | ||||
Reconciliation of net income to net cash provided by operating activities: |
||||||||
Depreciation and amortization | 41,919 | 38,906 | ||||||
Non-cash interest expense | 8,359 | 7,811 | ||||||
Amortization of deferred financing costs | 2,274 | 1,819 | ||||||
Stock-based compensation expense | 13,109 | 17,950 | ||||||
Provision (benefit) for deferred income taxes | 7,805 | (2,076 | ) | |||||
Changes in operating assets and liabilities | ||||||||
Accounts receivable, net | (24,787 | ) | (41,737 | ) | ||||
Prepaid expenses and other assets | (15,314 | ) | (11,517 | ) | ||||
Accounts payable and accrued expenses | 5,615 | 19,672 | ||||||
Accrued compensation and benefits | 6,392 | 4,888 | ||||||
Income taxes receivable and payable | (9,079 | ) | (2,245 | ) | ||||
Other liabilities | 11,508 | 12,512 | ||||||
Net cash provided by operating activities | 146,839 | 122,947 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Capital expenditures | (9,170 | ) | (20,519 | ) | ||||
Purchases of businesses, net of cash acquired | (129,621 | ) | (88,059 | ) | ||||
Investment in unconsolidated joint venture, net | (5,451 | ) | - | |||||
Other | 749 | 945 | ||||||
Net cash used in investing activities | (143,493 | ) | (107,633 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Net payments under credit facilities | (136,550 | ) | (52,857 | ) | ||||
Proceeds from employee stock purchase plans | 3,264 | 3,658 | ||||||
Proceeds from exercise of stock options | 18,136 | 5,455 | ||||||
Purchase of common stock | (47,040 | ) | (2,610 | ) | ||||
Other | 1,291 | (56 | ) | |||||
Net cash used in financing activities | (160,899 | ) | (46,410 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents | 1,358 | (2,645 | ) | |||||
Net decrease in cash and cash equivalents | (156,195 | ) | (33,741 | ) | ||||
Cash and cash equivalents, beginning of period | 254,543 | 208,488 | ||||||
Cash and cash equivalents, end of period | $ | 98,348 | $ | 174,747 | ||||
Selected Financial Data (Continued) | |||||||||||||||||||
Revenue by Customer Type (Unaudited) | |||||||||||||||||||
Quarter Ended | |||||||||||||||||||
(dollars in thousands) | 3/31/2011 | 3/31/2010 | $Change | % Change | |||||||||||||||
Department of Defense | $ | 735,639 | 80.5 | % | $ | 611,884 | 78.0 | % | $ | 123,755 | 20.2 | % | |||||||
Federal Civilian Agencies | 129,349 | 14.2 | % | 130,661 | 16.7 | % | (1,312 | ) | -1.0 | % | |||||||||
Commercial | 44,917 | 4.9 | % | 37,867 | 4.8 | % | 7,050 | 18.6 | % | ||||||||||
State and Local Governments | 3,464 | 0.4 | % | 3,757 | 0.5 | % | (293 | ) | -7.8 | % | |||||||||
Total | $ | 913,369 | 100.0 | % | $ | 784,169 | 100.0 | % | $ | 129,200 | 16.5 | % | |||||||
Nine Months Ended | |||||||||||||||||||
(dollars in thousands) | 3/31/2011 | 3/31/2010 | $Change | % Change | |||||||||||||||
Department of Defense | $ | 2,078,870 | 79.5 | % | $ | 1,786,846 | 77.7 | % | $ | 292,024 | 16.3 | % | |||||||
Federal Civilian Agencies | 399,251 | 15.3 | % | 393,408 | 17.1 | % | 5,843 | 1.5 | % | ||||||||||
Commercial | 126,179 | 4.8 | % | 107,087 | 4.6 | % | 19,092 | 17.8 | % | ||||||||||
State and Local Governments | 10,318 | 0.4 | % | 13,073 | 0.6 | % | (2,755 | ) | -21.1 | % | |||||||||
Total | $ | 2,614,618 | 100.0 | % | $ | 2,300,414 | 100.0 | % | $ | 314,204 | 13.7 | % | |||||||
Revenue by Contract Type (Unaudited) | |||||||||||||||||||
Quarter Ended | |||||||||||||||||||
(dollars in thousands) | 3/31/2011 | 3/31/2010 | $Change | % Change | |||||||||||||||
Time and materials | $ | 346,142 | 37.9 | % | $ | 363,997 | 46.4 | % | $ | (17,855 | ) | -4.9 | % | ||||||
Cost reimbursable | 338,383 | 37.0 | % | 259,235 | 33.1 | % | 79,148 | 30.5 | % | ||||||||||
Fixed price | 228,844 | 25.1 | % | 160,937 | 20.5 | % | 67,907 | 42.2 | % | ||||||||||
Total | $ | 913,369 | 100.0 | % | $ | 784,169 | 100.0 | % | $ | 129,200 | 16.5 | % | |||||||
Nine Months Ended | |||||||||||||||||||
(dollars in thousands) | 3/31/2011 | 3/31/2010 | $Change | % Change | |||||||||||||||
Time and materials | $ | 1,082,635 | 41.4 | % | $ | 1,083,328 | 47.1 | % | $ | (693 | ) | -0.1 | % | ||||||
Cost reimbursable | 889,386 | 34.0 | % | 748,240 | 32.5 | % | 141,146 | 18.9 | % | ||||||||||
Fixed price | 642,597 | 24.6 | % | 468,846 | 20.4 | % | 173,751 | 37.1 | % | ||||||||||
Total | $ | 2,614,618 | 100.0 | % | $ | 2,300,414 | 100.0 | % | $ | 314,204 | 13.7 | % | |||||||
Revenue Received as a Prime versus Subcontractor (Unaudited) | |||||||||||||||||||
Quarter Ended | |||||||||||||||||||
(dollars in thousands) | 3/31/2011 | 3/31/2010 | $Change | % Change | |||||||||||||||
Prime | $ | 798,428 | 87.4 | % | $ | 671,593 | 85.6 | % | $ | 126,835 | 18.9 | % | |||||||
Subcontractor | 114,941 | 12.6 | % | 112,576 | 14.4 | % | 2,365 | 2.1 | % | ||||||||||
Total | $ | 913,369 | 100.0 | % | $ | 784,169 | 100.0 | % | $ | 129,200 | 16.5 | % | |||||||
Nine Months Ended | |||||||||||||||||||
(dollars in thousands) | 3/31/2011 | 3/31/2010 | $Change | % Change | |||||||||||||||
Prime | $ | 2,262,517 | 86.5 | % | $ | 1,955,928 | 85.0 | % | $ | 306,589 | 15.7 | % | |||||||
Subcontractor | 352,101 | 13.5 | % | 344,486 | 15.0 | % | 7,615 | 2.2 | % | ||||||||||
Total | $ | 2,614,618 | 100.0 | % | $ | 2,300,414 | 100.0 | % | $ | 314,204 | 13.7 | % | |||||||
Selected Financial Data (Continued) | |||||||||||||
Contract Funding Orders Received (Unaudited) | |||||||||||||
Quarter Ended | |||||||||||||
(dollars in thousands) | 3/31/2011 | 3/31/2010 | $Change | % Change | |||||||||
Contract Funding Orders | $ | 749,103 | $ | 886,050 | $ | (136,947 | ) | -15.5 | % | ||||
Nine Months Ended | |||||||||||||
(dollars in thousands) | 3/31/2011 | 3/31/2010 | $Change | % Change | |||||||||
Contract Funding Orders | $ | 2,721,388 | $ | 2,526,833 | $ | 194,555 | 7.7 | % | |||||
Direct Costs by Category (Unaudited) | ||||||||||||||||||
Quarter Ended | ||||||||||||||||||
(dollars in thousands) | 3/31/2011 | 3/31/2010 | $Change | % Change | ||||||||||||||
Direct labor | $ | 233,257 | 36.1 | % | $ | 206,079 | 37.4 | % | $ | 27,178 | 13.2 | % | ||||||
Other direct costs | 412,147 | 63.9 | % | 345,112 | 62.6 | % | 67,035 | 19.4 | % | |||||||||
Total direct costs | $ | 645,404 | 100.0 | % | $ | 551,191 | 100.0 | % | $ | 94,213 | 17.1 | % | ||||||
Nine Months Ended | ||||||||||||||||||
(dollars in thousands) | 3/31/2011 | 3/31/2010 | $Change | % Change | ||||||||||||||
Direct labor | $ | 656,149 | 35.6 | % | $ | 598,883 | 37.3 | % | $ | 57,266 | 9.6 | % | ||||||
Other direct costs | 1,187,261 | 64.4 | % | 1,005,965 | 62.7 | % | 181,296 | 18.0 | % | |||||||||
Total direct costs | $ | 1,843,410 | 100.0 | % | $ | 1,604,848 | 100.0 | % | $ | 238,562 | 14.9 | % | ||||||
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) | 3/31/2011 | 3/31/2010 | % Change | 3/31/2011 | 3/31/2010 | % Change | ||||||||||||
Revenue, as reported | $ | 913,369 | $ | 784,169 | 16.5 | % | $ | 3,463,335 | $ | 3,029,315 | 14.3 | % | ||||||
Less: | ||||||||||||||||||
Acquired revenue | 17,014 | 62,993 | ||||||||||||||||
Organic revenue | $ | 896,355 | $ | 784,169 | 14.3 | % | $ | 3,400,342 | $ | 3,029,315 | 12.2 | % | ||||||
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) | 3/31/2011 | 3/31/2010 | % Change | 3/31/2011 | 3/31/2010 | % Change | ||||||||||||||||
Net income attributable to CACI | $ | 36,427 | $ | 26,708 | 36.4 | % | $ | 98,317 | $ | 76,615 | 28.3 | % | ||||||||||
Plus: | ||||||||||||||||||||||
Income taxes | 19,397 | 14,055 | 38.0 | % | 56,781 | 42,973 | 32.1 | % | ||||||||||||||
Interest income and expense, net | 6,108 | 6,488 | -5.9 | % | 18,685 | 20,874 | -10.5 | % | ||||||||||||||
Depreciation and amortization | 14,777 | 14,205 | 4.0 | % | 41,919 | 38,906 | 7.7 | % | ||||||||||||||
EBITDA | $ | 76,709 | $ | 61,456 | 24.8 | % | $ | 215,702 | $ | 179,368 | 20.3 | % | ||||||||||
Quarter Ended | Nine Months Ended | |||||||||||||||||||||
(dollars in thousands) | 3/31/2011 | 3/31/2010 | % Change | 3/31/2011 | 3/31/2010 | % Change | ||||||||||||||||
Revenue, as reported | $ | 913,369 | $ | 784,169 | 16.5 | % | $ | 2,614,618 | $ | 2,300,414 | 13.7 | % | ||||||||||
EBITDA | $ | 76,709 | $ | 61,456 | 24.8 | % | $ | 215,702 | $ | 179,368 | 20.3 | % | ||||||||||
EBITDA margin | 8.4 | % | 7.8 | % | 8.2 | % | 7.8 | % | ||||||||||||||
Quarter Ended | Nine Months Ended | |||||||||||||||||||||
(dollars in thousands) | 3/31/2011 | 3/31/2010 | % Change | 3/31/2011 | 3/31/2010 | % Change | ||||||||||||||||
Net income attributable to CACI | $ | 36,427 | $ | 26,708 | 36.4 | % | $ | 98,317 | $ | 76,615 | 28.3 | % | ||||||||||
Plus: | ||||||||||||||||||||||
Stock-based compensation | 4,696 | 5,205 | -9.8 | % | 13,109 | 17,950 | -27.0 | % | ||||||||||||||
Depreciation and amortization | 14,777 | 14,205 | 4.0 | % | 41,919 | 38,906 | 7.7 | % | ||||||||||||||
Amortization of financing costs | 512 | 537 | -4.7 | % | 2,274 | 1,819 | 25.0 | % | ||||||||||||||
Non-cash interest expense | 2,837 | 2,651 | 7.0 | % | 8,359 | 7,811 | 7.0 | % | ||||||||||||||
Less: | ||||||||||||||||||||||
Related tax effect | (8,962 | ) | (8,874 | ) | 1.0 | % | (25,785 | ) | (26,109 | ) | -1.2 | % | ||||||||||
Adjusted net income | $ | 50,287 | $ | 40,432 | 24.4 | % | $ | 138,193 | $ | 116,992 | 18.1 | % | ||||||||||
Quarter Ended | Nine Months Ended | |||||||||||||||||||||
(shares in thousands) | 3/31/2011 | 3/31/2010 | % Change | 3/31/2011 | 3/31/2010 | % Change | ||||||||||||||||
Diluted weighted average shares, as reported |
31,300 | 30,641 | 31,102 | 30,561 | ||||||||||||||||||
Diluted earnings per share | $ | 1.16 | $ | 0.87 | 33.5 | % | $ | 3.16 | $ | 2.51 | 26.1 | % | ||||||||||
Diluted adjusted earnings per share | $ | 1.61 | $ | 1.32 | 21.8 | % | $ | 4.44 | $ | 3.83 | 16.1 | % | ||||||||||
CACI-Financial
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