EX-99 2 ci2464ex991.htm

Exhibit 99

CACI Reports Another Record Third Quarter
and Nine Months Results and Raises Guidance

Diluted earnings per share up 34% to $0.71

Net income up 37% for the quarter to $21.6 million

Operating income up 52% for the quarter to $38.3 million

Revenue up 44% for the quarter to $414.9 million

Operating cash flow of $45.3 million in the quarter

          ARLINGTON, Va., April 20 /PRNewswire-FirstCall/ -- CACI International Inc (NYSE: CAI), a leading information technology and network solutions provider to the federal government, announced today record results for its third fiscal quarter and nine months ending March 31, 2005.  Net income for the third quarter of fiscal year 2005 (FY05) increased 37 percent, while revenue was up 44 percent compared to the third quarter of fiscal year 2004 (FY04).  For the first nine months of FY05, net income was up 44 percent.  Revenue was up 52 percent versus a year ago.  Fundings from all contract sources were up 29 percent versus the prior year.

          The increase in earnings, revenue, and fundings in the quarter resulted from continuing growth across CACI’s diversified customer base for the systems integration, engineering services, and network services offerings of the company.  Organic revenue growth for the company in the quarter was 14.7 percent.  This growth is a result of CACI’s strategic focus and concentration on national security and intelligence, the global war against terrorism, and the reshaping of the way government agencies communicate, use and disseminate information, and deliver services to the citizens.  These areas continue to be of high national priority and are expected to receive strong funding support going forward.

          Third Quarter Results Reflect Increased Operating Margin and Strong Cash Flow
          Net income for the third quarter of FY05 was $21.6 million, or $0.71 per diluted share, an increase of 37 percent over net income of $15.8 million, or $0.53 per diluted share, reported in the third quarter of FY04.  Revenue for the quarter was $414.9 million, an increase of 44 percent over third quarter FY04 revenue of $288.4 million.  Operating income in the quarter was $38.3 million, an increase of 52 percent over third quarter FY04 operating income of $25.2 million.  For the third quarter, the operating margin increased to 9.2 percent from 8.7 percent a year earlier.  Net cash provided by operations in the quarter was $45.3 million, up 76 percent versus $25.8 million in the third fiscal quarter of FY04.

          The growth of the company’s operations was driven by both ongoing and new tasking to support the mission-critical needs of CACI’s Department of Defense (DoD) and intelligence community clients.  The operating margin increase was primarily from operational efficiencies including the highly successful integration of the Defense and Intelligence Group (D&IG) purchased from American Management Systems, Inc. This improvement more than offset the costs of Sarbanes-Oxley compliance, Restricted Stock Units, and Iraq-related costs.



          Third Quarter Highlights

          Highlights for CACI’s third fiscal quarter included:

 

*

Organic revenue growth for the company was 14.7 percent.

 

*

DoD revenue increased 54 percent compared to the third fiscal quarter of FY04 primarily as a result of the acquisition of the D&IG and the continuing demand from customers such as the military intelligence community, the Army’s Communications-Electronics Command, the Defense Information Systems Agency, and the U.S. Navy.

 

*

Fundings from all contract sources in the quarter were $465 million, an increase of 17.5 percent over the prior year. (Fundings from all contract sources for the first nine months increased significantly to $1.368 billion, up 29 percent from last year.)

 

*

A total of $1.6 billion in new proposals was submitted during the quarter, reflecting a dramatic increase in bid activity, and resulting in a total of $1.9 billion in proposals currently under evaluation for award.  Contract awards in the quarter were approximately $142 million, bringing the total contract awards for the first nine months of FY05 to approximately $954 million.

 

*

Total debt was reduced by $20.8 million during the quarter.

 

*

Operating cash flow increased to $45.3 million compared to $25.8 million a year ago.

 

*

Operating margin improved to 9.2 percent in the quarter compared to 8.7 percent last year.

 

*

Days sales outstanding improved to 76 days compared to 84 days a year ago.

 

*

A universal shelf registration statement was filed to enable the company to offer and sell up to $400 million of common stock, preferred stock, or debt securities from time to time in one or more public offerings.

          CEO’s Commentary
          Commenting on the results, Dr. J.P. London, CACI’s Chairman, President, and Chief Executive Officer, said, “CACI had a terrific third quarter, with strong operating metrics and solid revenue growth.  Our operating profits rose significantly and we increased our operating margin.  We also experienced exceptionally strong operating cash flow during the quarter.  Our organic growth was 14.7 percent, at the high end of our 12 to 15 percent operating goal.  With these results, we are building another record year for CACI.”

          Dr. London continued, “The volume of Requests for Proposals (RFPs) from CACI’s customers and prospects has increased significantly from three months ago.  When compared with the first half of our fiscal year, we are seeing a dramatic increase in the number of opportunities to which we are responding. CACI currently has approximately $1.9 billion in proposals under evaluation for award. We also anticipate that we will submit another $4.0 billion in proposals by the end of September 2005.  Approximately $3 billion of this $5.9 billion total is expected to be awarded by the end of the government’s fiscal year ending on September 30, 2005.

          “We are also actively seeking strategic acquisitions that will further expand our customer base and enhance our capabilities.  We are accelerating our recruiting activities to expand our employee population.  We’ve experienced a very high operational pace throughout this fiscal year as a result of the increasing reliance by the federal government on contractor support from the private sector. We believe that the combination of all these positive factors should position us for a strong fiscal year 2006 (FY06: July 1, 2005) and the continued enhancement of shareholder value.  Entering next year, our operating goal remains intact:  to grow CACI in excess of 20 percent -- 12 to 15 percent organically and five to eight percent through acquisitions.”



          First Nine Months FY05 Results Put CACI on Track for Record Year
          Net income for the first nine months of FY05 was $61.9 million, or $2.03 per diluted share, an increase of 44 percent over net income of $43.0 million, or $1.44 per diluted share, reported in the first nine months of FY04. Revenue for the first nine months was $1.193 billion, an increase of 52 percent over the first nine months FY04 revenue of $787.5 million.  Operating income in the first nine months of FY05 was $110.8 million, an increase of 61 percent over the first nine months FY04 operating income of $69.0 million. For the first nine months of FY05, the operating margin increased to 9.3 percent from 8.8 percent a year earlier.  Fundings from all contract sources for the first nine months increased significantly to $1.368 billion, up 29 percent from last year.

          Revenue growth was driven by growth in support to DoD customers and our successful acquisitions.  Net cash provided by operations for the first nine months of FY05 was $75.9 million, significantly exceeding the $12.9 million for the same period of FY04, and almost equal to cash generated for all of FY04.

          CACI Increases Guidance
          The company increased its guidance for its fourth quarter and for its full year FY05.  CACI’s organic revenue growth for the full year is projected to be between 15 and 16 percent. This guidance excludes any revenue or income from additional acquisitions that might be closed prior to the end of FY05.  The table below summarizes the guidance ranges for each of those periods and shows the change over the same periods in FY04: 

(In millions except for earnings per share)

 

Q4 FY05

 

Change

 

Total FY05

 

Change

 


 


 


 


 


 

Revenue

 

 

$415-$425

 

 

16%-19%

 

 

$1,608-$1,618

 

 

40%-41%

 

Net income

 

 

$21.8-$22.9

 

 

5%-11%

 

 

$83.7-$84.8

 

 

31%-33%

 

Diluted earnings per share

 

 

$0.71-$0.74

 

 

3%-7%

 

 

$2.74-$2.78

 

 

29%-31%

 

Diluted weighted average shares

 

 

30.9

 

 

 

 

 

30.5

 

 

 

 

          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
          The company has scheduled a conference call for 8:30 AM Eastern time Thursday, April 21st, during which management will be making a brief presentation focusing on third quarter results, operating trends and its expectations. A question-and-answer session will follow to allow further discussion of the results and the company’s future expectations. Interested parties can listen to the conference call and view the accompanying exhibits over the Internet by logging on to CACI’s Internet site at http://www.caci.com at the scheduled time. A replay of the call will also be available over the Internet beginning at 1:00 PM Eastern time Thursday, April 21st, and can be accessed through CACI’s homepage (http://www.caci.com) by clicking on the CACI Investor Info button.



          About CACI
          CACI International Inc provides the IT and network solutions needed to prevail in today’s new era of defense, intelligence, and e-government. From systems integration and managed network solutions to knowledge management, engineering, simulation, and information assurance, we deliver the IT applications and infrastructures our federal customers use to improve communications and collaboration, secure the integrity of information systems and networks, enhance data collection and analysis, and increase efficiency and mission effectiveness. Our solutions lead the transformation of defense and intelligence, assure homeland security, enhance decision-making, and help government to work smarter, faster, and more responsively. CACI, a member of the Russell 2000 and S&P SmallCap 600 indices, provides dynamic careers for approximately 9,500 employees working in over 100 offices in the U.S. and Europe. CACI is the IT provider for a networked world. Visit CACI on the web at http://www.caci.com.

          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 terrorist activities or war; 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 in the event of a priority need for funds, such as homeland security, the war on terrorism or rebuilding Iraq; government contract procurement (such as bid protest, small business set asides, 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 the appeal of CACI International Inc. ASBCA No. 53058; 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); 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; 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.

 

For investor information contact:

 

For other information contact:

 

David Dragics, Vice President,

 

Jody Brown, Executive Vice

 

Investor Relations

 

President, Public Relations

 

(703) 841-7835, ddragics@caci.com

 

(703) 841-7801, jbrown@caci.com




(Financial tables follow)

Summary Financial Tables

CACI International Inc
Consolidated Statements of Operations
(Amounts in thousands, except per share amounts)

 

 

Quarter Ended

 

Nine Months Ended

 

 

 


 


 

 

 

03/31/2005

 

03/31/2004

 

03/31/2005

 

03/31/2004

 

 

 



 



 



 



 

 

 

(Unaudited)

 

(Unaudited)

 

(Unaudited)

 

(Unaudited)

 

Revenue

 

$

414,946

 

$

288,411

 

$

1,193,284

 

$

787,507

 

Costs and expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

Direct costs

 

 

259,738

 

 

179,440

 

 

741,193

 

 

488,729

 

Indirect costs and selling expenses

 

 

108,827

 

 

79,377

 

 

317,216

 

 

217,441

 

Depreciation and amortization

 

 

8,075

 

 

4,382

 

 

24,072

 

 

12,384

 

Operating expenses

 

 

376,640

 

 

263,199

 

 

1,082,481

 

 

718,554

 

Operating income

 

 

38,306

 

 

25,212

 

 

110,803

 

 

68,953

 

Interest expense (income)

 

 

3,652

 

 

(212

)

 

10,945

 

 

(631

)

Income before income taxes

 

 

34,654

 

 

25,424

 

 

99,858

 

 

69,584

 

Income taxes

 

 

13,018

 

 

9,662

 

 

37,945

 

 

26,592

 

Net income

 

$

21,636

 

$

15,762

 

$

61,913

 

$

42,992

 

Basic earnings per share

 

$

0.72

 

$

0.54

 

$

2.09

 

$

1.48

 

Diluted earnings per share

 

$

0.71

 

$

0.53

 

$

2.03

 

$

1.44

 

Weighted average shares used in per share computations:

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

29,913

 

 

29,126

 

 

29,579

 

 

29,022

 

Diluted

 

 

30,681

 

 

29,935

 

 

30,459

 

 

29,875

 

Statement of Operations Margin Data

 

 

Quarter Ended

 

Nine Months Ended

 

 

 


 


 

 

 

03/31/2005

 

03/31/2004

 

03/31/2005

 

03/31/2004

 

 

 



 



 



 



 

Gross profit margin

 

 

37.4

%

 

37.8

%

 

37.9

%

 

37.9

%

Operating profit margin

 

 

9.2

%

 

8.7

%

 

9.3

%

 

8.8

%

Net profit margin

 

 

5.2

%

 

5.5

%

 

5.2

%

 

5.5

%




Summary Financial Tables (continued)

CACI International Inc
Condensed Consolidated Balance Sheets
(Amounts in thousands)

 

 

03/31/2005

 

06/30/2004

 

 

 



 



 

 

 

(Unaudited)

 

 

 

 

ASSETS:

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

74,838

 

$

63,029

 

Marketable securities

 

 

—  

 

 

515

 

Accounts receivable, net

 

 

 

 

 

 

 

Billed

 

 

330,287

 

 

320,041

 

Unbilled

 

 

24,050

 

 

28,326

 

Total accounts receivable, net

 

 

354,337

 

 

348,367

 

Other current assets

 

 

21,864

 

 

20,545

 

Total current assets

 

 

451,039

 

 

432,456

 

Property and equipment, net

 

 

24,502

 

 

25,489

 

Goodwill & intangible assets, net

 

 

642,931

 

 

651,475

 

Other

 

 

49,282

 

 

44,884

 

Total assets

 

$

1,167,754

 

$

1,154,304

 

LIABILITIES & SHAREHOLDERS’ EQUITY:

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

Notes payable

 

$

3,637

 

$

20,829

 

Accounts payable

 

 

27,561

 

 

37,662

 

Accrued compensation & benefits

 

 

78,703

 

 

72,387

 

Other current liabilities

 

 

76,691

 

 

93,383

 

Total current liabilities

 

 

186,592

 

 

224,261

 

Notes payable, long-term

 

 

343,746

 

 

391,401

 

Postretirement obligations

 

 

26,280

 

 

22,095

 

Other long-term liabilities

 

 

22,585

 

 

18,275

 

Shareholders’ equity

 

 

588,551

 

 

498,272

 

Total liabilities & shareholders’ equity

 

$

1,167,754

 

$

1,154,304

 




CACI International Inc
Condensed Consolidated Statements of Cash Flows
(Amounts in thousands)

 

 

 

Nine Months Ended

 

 

 


 

 

 

03/31/2005

 

03/31/2004

 

 

 



 



 

 

 

(Unaudited)

 

(Unaudited)

 

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

 

 

Net income

 

$

61,913

 

$

42,992

 

Reconciliation of net income to net cash provided by operating activities

 

 

 

 

 

 

 

Depreciation and amortization

 

 

24,072

 

 

12,384

 

Amortization of deferred financing costs

 

 

1,008

 

 

—  

 

Stock-based compensation expense

 

 

1,908

 

 

—  

 

Deferred income tax expense (benefit)

 

 

269

 

 

(3,173

)

Changes in operating assets and liabilities

 

 

 

 

 

 

 

Accounts receivable

 

 

(9,913

)

 

(39,830

)

Other current assets

 

 

1,714

 

 

(5,650

)

Accounts payable and accrued expenses

 

 

(18,608

)

 

(707

)

Accrued compensation & benefits

 

 

3,587

 

 

6,073

 

Other current liabilities

 

 

4,944

 

 

(6,568

)

Other liabilities

 

 

4,991

 

 

7,426

 

Net cash provided by operating activities

 

 

75,885

 

 

12,947

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

 

 

 

Capital expenditures

 

 

(6,727

)

 

(5,598

)

Purchases of businesses, net of cash acquired

 

 

(7,289

)

 

(79,014

)

Net redemptions of marketable securities

 

 

515

 

 

15,228

 

Other assets

 

 

(257

)

 

(2,133

)

Net cash used in investing activities

 

 

(13,758

)

 

(71,517

)

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

 

 

 

Net payments under credit facilities

 

 

(64,847

)

 

—  

 

Proceeds from employee stock transactions

 

 

5,255

 

 

2,485

 

Proceeds from exercise of stock options

 

 

14,483

 

 

6,911

 

Purchase of common stock for treasury

 

 

(5,954

)

 

(3,667

)

Net cash provided by (used in) financing activities

 

 

(51,063

)

 

5,729

 

Effect of exchange rates on cash and equivalents

 

 

745

 

 

1,740

 

Net increase (decrease) in cash and equivalents

 

 

11,809

 

 

(51,101

)

Cash and equivalents, beginning of period

 

 

63,029

 

 

73,735

 

Cash and equivalents, end of period

 

$

74,838

 

$

22,634

 




Summary Financial Tables (Continued)

Revenue by Customer Type

 

 

Quarter Ended

 

 

 

 

 

 

 

 

 


 

 

 

 

 

 

 

(dollars in thousands)

 

03/31/2005

 

03/31/2004

 

$ Change

 

% Change

 


 


 


 


 


 

Department of Defense

 

$

301,505

 

 

72.6

%

$

195,390

 

 

67.7

%

$

106,115

 

 

54.3

%

Federal Civilian Agencies

 

 

90,295

 

 

21.8

%

 

74,092

 

 

25.7

%

 

16,203

 

 

21.9

%

Commercial

 

 

16,926

 

 

4.1

%

 

14,739

 

 

5.1

%

 

2,187

 

 

14.8

%

State and Local Government

 

 

6,220

 

 

1.5

%

 

4,190

 

 

1.5

%

 

2,030

 

 

48.4

%

Total

 

$

414,946

 

 

100.0

%

$

288,411

 

 

100.0

%

$

126,535

 

 

43.9

%


 

 

Nine Months Ended

 

 

 


 

(dollars in thousands)

 

03/31/2005

 

03/31/2004

 


 


 


 

Department of Defense

 

$

863,906

 

 

72.4

%

$

517,052

 

 

65.7

%

Federal Civilian Agencies

 

 

262,495

 

 

22.0

%

 

218,837

 

 

27.8

%

Commercial

 

 

49,248

 

 

4.1

%

 

39,417

 

 

5.0

%

State and Local Government

 

 

17,635

 

 

1.5

%

 

12,201

 

 

1.5

%

Total

 

$

1,193,284

 

 

100.0

%

$

787,507

 

 

100.0

%


 

 

Nine Months Ended

 

 

 


 

(dollars in thousands)

 

$ Change

 

% Change

 


 


 


 

Department of Defense

 

$

346,854

 

 

67.1

%

Federal Civilian Agencies

 

 

43,658

 

 

20.0

%

Commercial

 

 

9,831

 

 

24.9

%

State and Local Government

 

 

5,434

 

 

44.5

%

Total

 

$

405,777

 

 

51.5

%

SOURCE  CACI International Inc
          -0-          04/20/2005
          /CONTACT:  For investor information contact:  David Dragics, Vice President, Investor Relations, +1-703-841-7835, ddragics@caci.com; or for other information contact: Jody Brown, Executive Vice President, Public Relations, +1-703-841-7801, jbrown@caci.com, both of CACI International Inc/
          /Web site:  http://www.caci.com/