EX-99.1 2 ci3440ex991.htm

Exhibit 99

CACI Reports Record Quarterly and Annual Results

     •   For Fiscal Year 2005:

 

-

Revenue increased 42% to $1.62 billion

 

-

Operating income increased 44% to $151.1 million

 

-

Diluted EPS increased 31% to $2.79 for the year

 

-

Operating cash flow increased 81% to $137 million

 

-

Contract funding orders increased 34% to $1.8 billion

          ARLINGTON, Va., Aug. 17 CACI International Inc (NYSE: CAI), a leading information technology and network solutions provider to the federal government, announced today record results for its fourth fiscal quarter and twelve months ending June 30, 2005. 

          Fourth Quarter Results
          For the fourth quarter of fiscal year 2005 (FY05) the Company reported revenue of $429.8 million, up $71.5 million, or 20 percent, over fiscal year 2004 (FY04) fourth quarter revenue of $358.3 million.  Approximately 14 percent of this increase represents organic growth, and the remainder results from the May 2004 acquisition of the Defense and Intelligence Group of American Management Systems, Inc.  Operating income during the quarter increased to $40.3 million, up 13 percent over operating income of $35.8 million during the same period a year ago.

          Net income for the fourth quarter was $23.4 million, or $0.76 per diluted share, an increase of 13 percent over net income of $20.7 million, or $0.69 per diluted share, for the fourth quarter of FY04.  The Company’s operating margin was 9.4 percent for the quarter, and operating cash flow totaled $61.4 million.

          Other highlights for CACI’s fourth quarter included:

 

Contract funding orders totaled $433 million, an increase of 57 percent

 

Contract awards were approximately $259 million, including:

 

 

o

$89 million in national security and intelligence work

 

 

o

$73 million to support U.S. Naval aviation readiness

 

 

o

$25 million to support the U.S. Army’s Ammunition Management System

 

Days sales outstanding improved to 70 days versus 88 days a year ago

 

The Company’s cash balance increased to $133 million at June 30, 2005

          Full Year FY05 Results
          For the full fiscal year, revenue increased 42 percent to $1.62 billion, versus $1.15 billion of revenue for FY04.  Approximately 16 percent of the revenue growth was organic and across a broad base of Department of Defense, intelligence, and federal civilian agency customers.  The remaining 26 percent of the revenue growth was from acquisitions. Operating income increased 44 percent to $151.1 million compared with $104.7 million in FY04.

          Net income for FY05 was $85.3 million, or $2.79 per diluted share, an increase of 34 percent over net income of $63.7 million, or $2.13 per diluted share, reported in FY04.  The Company’s operating margin increased to 9.3 percent for the year, up from 9.1 percent during FY04.  Net cash provided by operations for FY05 was a record $137 million, an increase of 81 percent from FY04.

2



          FY05 Highlights
          In addition to the record revenue, earnings, and operating cash flow, major highlights and accomplishments during fiscal year 2005 include:

 

Contract funding orders increased to $1.8 billion, up 34 percent over FY04

 

Funded backlog was up 19% over the previous year to $887 million; total backlog at the end of FY05 was approximately $3.4 billion

 

Total contract awards for FY05 were approximately $1.2 billion, including:

 

 

o

Over $300 million in national security and intelligence work

 

 

o

$126 million to support the Navy Enterprise Maintenance Automated Information System (NEMAIS)

 

 

o

$85 million to support the Navy’s fleet assistance and shipboard training (FAST) program

 

 

o

$75 million to support information systems for Navy shipyards

 

Organic revenue growth for FY05 was 16 percent

 

Operating cash flow increased 81 percent to $137 million

 

Added to the Russell 1000 index; previously listed in the Russell 2000 index

          CEO’s Commentary
          Commenting on the results, Dr. J.P. (Jack) London, CACI’s Chairman, President, and Chief Executive Officer, said, “CACI delivered the best year- end and fourth quarter profits and revenue in our history. We set new growth records in every quarter of the fiscal year. Our CACI teams turned in exceptional contributions across all our operations both domestic and international. Our organic growth rate of 16 percent for the year exceeded the high end of our 12 to 15 percent goal.

          We have added new, key staff to our senior management team over the last 12 months, including the recent addition of Paul Cofoni as President of our U.S. Operations. Paul brings significant senior-level Tier 1 leadership that will reinforce our Tier 1 competitive position and facilitate our goal to deliver $3 billion in annual revenue by our fiscal year 2009.”

          Dr. London continued, “CACI is a strong growth company in a dynamic market. Our capabilities are aligned with national priorities in defense, intelligence, homeland security, and the transformation of the way the federal government does business. Our strategy is focused on helping government clients complete their most important missions, so we grow in areas of the government’s most critical needs. Thanks to a very successful core business strategy and our exceptional CACI team, we have met our growth targets again and produced another outstanding fiscal performance.”

          CACI Reiterates Guidance and Adopts FAS 123R
          The Company reiterates its guidance for its first quarter and full year FY06 as originally issued on June 23, 2005.  This guidance excludes the revenue or earnings from future acquisitions that may be completed prior to the end of FY06.

3



          Projected revenue and earnings for FY06 includes the adoption of FAS 123R and is shown with and without the effect of stock option expensing, as follows:

(In millions except for earnings per share)

 

1st Quarter

 

Total Year


 


 


Revenue

 

$420 - $430

 

$1,775 - $1,850

Pro forma diluted earnings per share, exclusive of effect of stock option expense

 

$0.71 - $0.74

 

$3.10 - $3.25

Stock option expense

 

$(0.11) - $(0.12)

 

$(0.26) - $(0.27)

Diluted earnings per share, inclusive of effect of stock option expense

 

$0.60 - $0.62

 

$2.84 - $2.98

Diluted weighted average shares

 

30.9

 

31.0

          The greater effect of expensing options in the first quarter relative to all of FY06 is due to immediate expense recognition, as required by accounting principles generally accepted in the U.S., of 100 percent of the entire estimated fair value of certain option grants.  The total stock compensation expense, which includes both the expense of stock options as shown above and the expense of restricted stock units granted by the Company, is a non-cash expense that has no effect on the Company’s cash flow.  Investors are cautioned that street consensus estimates may or may not reflect the effects of FAS 123R.

          This guidance represents our views as of August 17, 2005.  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, August 18th, during which management will be making a brief presentation focusing on fourth 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, August 18th, and can be accessed through CACI’s homepage (http://www.caci.com) by clicking on the CACI Investor Info button. 

4



          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 1000 and S&P SmallCap 600 indices, provides dynamic careers for approximately 9,600 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; changes that could result from accounting adjustments requested in connection with finalizing our Report on Form 10-K; 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 President,

 

 

Investor Relations

 

Public Relations

 

 

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

 

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

 

(Financial tables follow)

5



Summary Financial Tables
CACI International Inc
Consolidated Statements of Operations

(Amounts in thousands, except per share amounts)

 

 

Quarter Ended

 

Year Ended

 

 

 


 


 

 

 

6/30/2005

 

6/30/2004

 

6/30/2005

 

6/30/2004

 

 

 



 



 



 



 

 

 

(Unaudited)

 

(Unaudited)

 

(Unaudited)

 

(Unaudited)

 

Revenue

 

$

429,778

 

$

358,278

 

$

1,623,062

 

$

1,145,785

 

Costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

Direct costs

 

 

278,281

 

 

219,642

 

 

1,019,474

 

 

708,371

 

Indirect costs and selling expenses

 

 

103,286

 

 

96,223

 

 

420,502

 

 

313,664

 

Depreciation and amortization

 

 

7,950

 

 

6,652

 

 

32,022

 

 

19,036

 

 

 



 



 



 



 

Total costs and expenses

 

 

389,517

 

 

322,517

 

 

1,471,998

 

 

1,041,071

 

Operating income

 

 

40,261

 

 

35,761

 

 

151,064

 

 

104,714

 

Interest expense, net

 

 

3,820

 

 

2,414

 

 

14,765

 

 

1,783

 

 

 



 



 



 



 

Income before income taxes

 

 

36,441

 

 

33,347

 

 

136,299

 

 

102,931

 

Income taxes

 

 

13,038

 

 

12,670

 

 

50,983

 

 

39,262

 

 

 



 



 



 



 

Net income

 

$

23,403

 

$

20,677

 

$

85,316

 

$

63,669

 

 

 



 



 



 



 

Basic earnings per share

 

$

0.78

 

$

0.71

 

$

2.88

 

$

2.19

 

Diluted earnings per share

 

$

0.76

 

$

0.69

 

$

2.79

 

$

2.13

 

Weighted average shares used in per share computations:

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

29,963

 

 

29,140

 

 

29,675

 

 

29,051

 

Diluted

 

 

30,802

 

 

29,884

 

 

30,564

 

 

29,877

 

Statement of Operations Margin Data

 

 

Quarter Ended

 

Year Ended

 

 

 


 


 

 

 

6/30/2005

 

6/30/2004

 

6/30/2005

 

6/30/2004

 

 

 



 



 



 



 

Gross profit margin

 

 

35.3

%

 

38.7

%

 

37.2

%

 

38.2

%

Operating profit margin

 

 

9.4

%

 

10.0

%

 

9.3

%

 

9.1

%

Net profit margin

 

 

5.4

%

 

5.8

%

 

5.3

%

 

5.6

%

6



Summary Financial Tables (continued)
CACI International Inc
Condensed Consolidated Balance Sheets

(Amounts in thousands)

 

 

6/30/2005

 

6/30/2004

 

 

 



 



 

 

 

(Unaudited)

 

(Unaudited)

 

ASSETS:

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

132,965

 

$

63,029

 

Marketable securities

 

 

—  

 

 

515

 

Accounts receivable, net

 

 

 

 

 

 

 

Billed

 

 

311,046

 

 

320,041

 

Unbilled

 

 

27,009

 

 

28,326

 

 

 



 



 

Total accounts receivable, net

 

 

338,055

 

 

348,367

 

Other current assets

 

 

21,910

 

 

20,545

 

 

 



 



 

Total current assets

 

 

492,930

 

 

432,456

 

Property and equipment, net

 

 

24,261

 

 

25,489

 

Goodwill & intangible assets, net

 

 

636,081

 

 

651,475

 

Other

 

 

50,363

 

 

44,884

 

 

 



 



 

Total assets

 

$

1,203,635

 

$

1,154,304

 

 

 



 



 

               

LIABILITIES & SHAREHOLDERS’ EQUITY:

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

Notes payable

 

$

3,641

 

$

20,829

 

Accounts payable

 

 

36,900

 

 

37,662

 

Accrued compensation & benefits

 

 

77,903

 

 

72,387

 

Other current liabilities

 

 

88,857

 

 

93,383

 

 

 



 



 

Total current liabilities

 

 

207,301

 

 

224,261

 

               

Notes payable, long-term

 

 

342,861

 

 

391,401

 

Postretirement obligations

 

 

27,788

 

 

22,095

 

Other long-term liabilities

 

 

13,460

 

 

18,275

 

               

Shareholders’ equity

 

 

612,225

 

 

498,272

 

               

 

 



 



 

Total liabilities & shareholders’ equity

 

$

1,203,635

 

$

1,154,304

 

 

 



 



 

7



Summary Financial Tables (continued)
CACI International Inc
Condensed Consolidated Statements of Cash Flows

(Amounts in thousands)

 

 

Year Ended

 

 

 


 

 

 

6/30/2005

 

6/30/2004

 

 

 



 



 

 

 

(Unaudited)

 

(Unaudited)

 

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

 

 

Net income

 

$

85,316

 

$

63,669

 

Reconciliation of net income to net cash provided by operating activities

 

 

 

 

 

 

 

Depreciation and amortization

 

 

32,022

 

 

19,036

 

Amortization of deferred financing costs

 

 

1,344

 

 

224

 

Stock-based compensation expense

 

 

2,275

 

 

159

 

Deferred income tax benefit

 

 

(8,780

)

 

(7,078

)

Changes in operating assets and liabilities

 

 

 

 

 

 

 

Accounts receivable

 

 

5,493

 

 

(42,491

)

Other current assets

 

 

(1,390

)

 

(9,728

)

Accounts payable and accrued expenses

 

 

(5,410

)

 

27,625

 

Accrued compensation & benefits

 

 

5,177

 

 

17,187

 

Other current liabilities

 

 

15,565

 

 

1,388

 

Other liabilities

 

 

5,610

 

 

5,824

 

 

 



 



 

Net cash provided by operating activities

 

 

137,222

 

 

75,815

 

               

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

 

 

 

Capital expenditures

 

 

(8,793

)

 

(8,703

)

Purchases of businesses, net of cash acquired

 

 

(6,823

)

 

(503,331

)

Net purchases of marketable securities

 

 

515

 

 

15,290

 

Other assets

 

 

(1,634

)

 

73

 

 

 



 



 

Net cash used in investing activities

 

 

(16,735

)

 

(496,671

)

               

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

 

 

 

Net proceeds (payments) under credit facilities

 

 

(65,729

)

 

411,325

 

Payment of financing cost

 

 

—  

 

 

(8,221

)

Proceeds from employee stock transactions

 

 

7,261

 

 

3,495

 

Proceeds from exercise of stock options

 

 

16,351

 

 

6,967

 

Purchase of common stock for treasury

 

 

(8,362

)

 

(4,883

)

 

 



 



 

Net cash provided by (used in) financing activities

 

 

(50,479

)

 

408,683

 

               

Effect of exchange rates on cash and equivalents

 

 

(72

)

 

1,467

 

 

 



 



 

               

Net increase (decrease) in cash and equivalents

 

 

69,936

 

 

(10,706

)

Cash and equivalents, beginning of period

 

 

63,029

 

 

73,735

 

 

 



 



 

Cash and equivalents, end of period

 

$

132,965

 

$

63,029

 

 

 



 



 

8



Summary Financial Tables (Continued)
Revenue by Customer Type

(Unaudited)

 

 

Quarter Ended

 

   
 

(dollars in thousands)

 

6/30/2005

 

6/30/2004

 

$Change

 

%Change

 


 


 


 



 



 

Department of Defense

 

$

315,353

 

 

73.3

%

$

254,868

 

 

71.2

%

$

60,485

 

 

23.7

%

Federal Civilian Agencies

 

 

88,391

 

 

20.6

%

 

82,869

 

 

23.1

%

 

5,522

 

 

6.7

%

Commercial

 

 

18,892

 

 

4.4

%

 

16,289

 

 

4.5

%

 

2,603

 

 

16.0

%

State and Local Government

 

 

7,142

 

 

1.7

%

 

4,252

 

 

1.2

%

 

2,890

 

 

68.0

%

   

 

 

 

 

 

 

Total

 

$

429,778

 

 

100.0

%

$

358,278

 

 

100.0

%

$

71,500

 

 

20.0

%

   

 

 

 

 

 

 

 

 

Year Ended

 

 

 


 

(dollars in thousands)

 

6/30/2005

 

6/30/2004

 

$Change

 

%Change

 


 


 


 


 


 

Department of Defense

 

$

1,179,259

 

 

72.7

%

$

771,920

 

 

67.4

%

$

407,339

 

 

52.8

%

Federal Civilian Agencies

 

 

350,886

 

 

21.6

%

 

301,706

 

 

26.3

%

 

49,180

 

 

16.3

%

Commercial

 

 

68,140

 

 

4.2

%

 

55,706

 

 

4.9

%

 

12,434

 

 

22.3

%

State and Local Government

 

 

24,777

 

 

1.5

%

 

16,453

 

 

1.4

%

 

8,324

 

 

50.6

%

 

 



 



 



 



 



 



 

Total

 

$

1,623,062

 

 

100.0

%

$

1,145,785

 

 

100.0

%

$

477,277

 

 

41.7

%

 

 



 



 



 



 



 



 

9