EX-99 2 ca7726ex99.htm EXHIBIT 99

Exhibit 99

CACI Reports Fiscal 2007 First Quarter Results

 Revenue Increased 10.5 Percent to $467.6 Million
 Operating Income Increased 9.1 Percent to $36.5 Million
 Contract Funding Orders of $605 Million, Up 27 Percent
 Contract Awards Total $900 Million, Up 13 Percent

          ARLINGTON, Va., Nov. 1 /PRNewswire-FirstCall/ -- CACI International Inc (NYSE: CAI), a leading information technology and network solutions provider to the federal government, announced results today for its quarter ended September 30, 2006. CACI provides innovative solutions to meet America’s national needs in defense, intelligence, homeland security, and the transformation of government, and is a leading strategic consolidator in its market space.

          First Quarter Results

          For the first quarter of Fiscal Year 2007 (FY07) the Company reported record revenue of $467.6 million, up 10.5 percent over first quarter of Fiscal Year 2006 (FY06) revenue of $423.1 million.  Operating income for the quarter was $36.5 million versus operating income of $33.5 million in the year earlier quarter, an increase of 9.1 percent.  The Company’s operating margin in the quarter was 7.8 percent compared with 7.9 percent in the year earlier quarter. The effective tax rate for the quarter was 38.0 percent versus 36.0 percent in the first quarter of FY06.  Net income for the first quarter was $18.8 million, or $0.60 per diluted share, down 1.7 percent compared with $19.1 million, or $0.62 per diluted share, for the first quarter of FY06.  The decrease in net income was primarily due to higher interest expense and income taxes compared to the year earlier quarter.  Operating cash flow for the quarter was $42.5 million compared with $38.2 million in the year earlier quarter.

          First Quarter Highlights:

          In addition to the revenue and earnings, major highlights and accomplishments during the first quarter of FY07 include:

 

*

Contract awards totaled approximately $900 million:

 

 

--

Nearly 60 percent is for new work with the remainder being recompeted work retained by the Company

 

 

--

Approximately $230 million is from the Intelligence Community

 

 

 

 

 

*

Significant prime, Indefinite Delivery/Indefinite Quantity (IDIQ) multiple award contracts not included in the above are:

 

 

--

The Department of Homeland Security (DHS) Enterprise Acquisition Gateway for Enterprise Solutions (EAGLE) program to provide management support services

 

 

--

Support of the Design and Engineering Support Program (DESP II) for the Air Force Material Command and the Army Tank and Automotive Command

 

 

 

 

 

*

Contract funding orders totaled $605 million, an increase of 27 percent over $477 million in the first quarter of FY06


          CEO Commentary

          Commenting on the results for the quarter, Dr. J.P. (Jack) London, CACI’s Chairman, President, and CEO said, “I am pleased to announce CACI has had a great start for the year with approximately $900 million in contract awards and over $600 million in contract funding orders in the quarter.  This record level of activity reflects the ongoing priority needs of the federal marketplace we serve.  It also indicates that CACI is winning recompetes, new business opportunities and large tier one contracts.  We believe that this quarter’s award and contract funding activity sets the stage for solid financial performance in our FY07 and beyond.”

          CACI Guidance

          The Company issued its guidance for its second fiscal quarter and all of FY07. This guidance excludes the revenue or earnings from future acquisitions that may be completed prior to the end of FY07.

(In millions except for earnings per share)

 

2nd Quarter

 

Total Year

 

 

 

 

Revenue

 

 

$475 - $495

 

 

$2,000 - $2,100

 

Diluted earnings per share

 

 

$0.65 - $0.72

 

 

$2.91 - $3.15

 

Diluted weighted average shares

 

 

31.3

 

 

31.4

 

          This guidance represents our views as of November 1, 2006.  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.

          The Company also announced that beginning with its Fiscal Year 2008 (FY08), it will issue only annual guidance with quarterly updates.  The primary focus of CACI’s management is on the long-term goals and strategies it sets and develops to grow the Company and enhance shareholder value.  By issuing and updating annual guidance, management believes it can better communicate and educate all investors in using a long-term focus in their analysis and capital investment decisions regarding CACI, and, as a result, promote an investor focus on the Company’s long-term value proposition in the marketplace.

          Conference Call Information

          The Company has scheduled a conference call for 8:30 AM Eastern Time Thursday, November 2nd, during which management will be making a brief presentation focusing on first 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 homepage, 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, November 2nd, 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 has been named to the Fortune 1000 Largest Companies of 2006. A member of the Russell 1000 index, CACI provides dynamic careers for approximately 10,100 employees working in over 130 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 may 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 United Kingdom, including conditions that result from terrorist activities or war; changes in interest rates; currency fluctuations; 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, 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; 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 the continued independence of the Company; 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 scheduled 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-Q; 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)


Selected Financial Data

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

 

 

Quarter Ended

 

 

 

 

 

 

 

 

 

 

 

 

9/30/2006

 

9/30/2005

 

% Change

 

 

 

 

 

 

Revenue

 

$

467,623

 

$

423,106

 

 

10.5

%

 

 

 

 

 

 

 

Costs of revenue

 

 

 

 

 

 

 

 

 

 

Direct costs

 

 

300,727

 

 

270,877

 

 

11.0

%

Indirect costs and selling expenses

 

 

119,855

 

 

111,206

 

 

7.8

%

Depreciation and amortization

 

 

10,506

 

 

7,535

 

 

39.4

%

 

 

 

 

 

 

 

Total costs of revenue

 

 

431,088

 

 

389,618

 

 

10.6

%

 

 

 

 

 

 

 

Operating income

 

 

36,535

 

 

33,488

 

 

9.1

%

Interest expense, net

 

 

6,209

 

 

3,613

 

 

71.9

%

 

 

 

 

 

 

 

Income before income taxes

 

 

30,326

 

 

29,875

 

 

1.5

%

Income taxes

 

 

11,523

 

 

10,752

 

 

7.2

%

 

 

 

 

 

 

 

Net income

 

$

18,803

 

$

19,123

 

 

-1.7

%

 

 

 

 

 

 

 

Basic earnings per share

 

$

0.61

 

$

0.64

 

 

-3.5

%

Diluted earnings per share

 

$

0.60

 

$

0.62

 

 

-2.5

%

Weighted average shares used in per share computations:

 

 

 

 

 

 

 

 

 

 

Basic

 

 

30,629

 

 

30,073

 

 

 

 

Diluted

 

 

31,278

 

 

31,002

 

 

 

 

Statements of Operations Data (Unaudited)

 

 

Quarter Ended

 

 

 

 

 

 

9/30/2006

 

9/30/2005

 

 

 

 

 

Operating profit margin

 

 

7.8

%

 

7.9

%

Tax rate

 

 

38.0

%

 

36.0

%

Net profit margin

 

 

4.0

%

 

4.5

%


Selected Financial Data (Continued)

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

 

 

9/30/2006

 

6/30/2006

 

 

 

 

 

ASSETS:

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

40,590

 

$

24,650

 

Accounts receivable, net

 

 

383,345

 

 

392,013

 

Other current assets

 

 

27,398

 

 

33,166

 

 

 

 

 

Total current assets

 

 

451,333

 

 

449,829

 

Goodwill and intangible assets, net

 

 

825,487

 

 

832,184

 

Property and equipment, net

 

 

24,039

 

 

25,082

 

Other long-term assets

 

 

66,204

 

 

60,995

 

 

 

 

 

Total assets

 

$

1,367,063

 

$

1,368,090

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY:

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

Notes payable

 

$

3,544

 

$

3,543

 

Accounts payable

 

 

50,548

 

 

44,921

 

Accrued compensation and benefits

 

 

85,440

 

 

93,398

 

Other accrued expenses

 

 

73,336

 

 

69,503

 

 

 

 

 

Total current liabilities

 

 

212,868

 

 

211,365

 

Notes payable, net of current portion

 

 

338,431

 

 

364,317

 

Other long-term liabilities

 

 

45,468

 

 

47,049

 

 

 

 

 

Total liabilities

 

 

596,767

 

 

622,731

 

Shareholders’ equity

 

 

770,296

 

 

745,359

 

 

 

 

 

Total liabilities and shareholders’ equity

 

$

1,367,063

 

$

1,368,090

 

 

 

 

 


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

 

 

Three Months Ended

 

 

 

 

 

 

9/30/2006

 

9/30/2005

 

 

 

 

 

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

 

 

Net income

 

$

18,803

 

$

19,123

 

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

 

 

 

 

 

 

 

Depreciation and amortization

 

 

10,506

 

 

7,535

 

Amortization of deferred financing costs

 

 

355

 

 

355

 

Stock-based compensation expense

 

 

4,433

 

 

7,013

 

Benefit for deferred income taxes

 

 

(3,468

)

 

(761

)

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

Accounts receivable, net

 

 

7,173

 

 

12,869

 

Other current assets

 

 

2,414

 

 

(1,755

)

Accounts payable and accrued expenses

 

 

1,320

 

 

286

 

Accrued compensation and benefits

 

 

(8,718

)

 

(9,934

)

Income taxes payable and receivable

 

 

6,762

 

 

296

 

Other liabilities

 

 

2,891

 

 

3,205

 

 

 

 

 

Net cash provided by operating activities

 

 

42,471

 

 

38,232

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

 

 

 

Capital expenditures

 

 

(2,109

)

 

(2,207

)

Other long-term assets

 

 

(804

)

 

(1,381

)

 

 

 

 

Net cash used in investing activities

 

 

(2,913

)

 

(3,588

)

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

 

 

 

Net repayments under line of credit

 

 

(25,886

)

 

(985

)

Proceeds from employee stock transactions

 

 

1,995

 

 

2,852

 

Proceeds from exercise of stock options

 

 

1,349

 

 

3,555

 

Repurchase of common stock

 

 

(1,310

)

 

(2,981

)

Other

 

 

71

 

 

1,041

 

 

 

 

 

Net cash (used in) provided by financing activities

 

 

(23,781

)

 

3,482

 

 

 

 

 

Effect of changes in currency rates on cash

 

 

163

 

 

(161

)

 

 

 

 

Net increase in cash and equivalents

 

 

15,940

 

 

37,965

 

Cash and equivalents, beginning of period

 

 

24,650

 

 

132,965

 

 

 

 

 

Cash and equivalents, end of period

 

$

40,590

 

$

170,930

 

 

 

 

 


Selected Financial Data (Continued)

Revenue by Customer Type (Unaudited)
Quarter Ended

(dollars in thousands)

 

9/30/2006

 

9/30/2005

 

$ Change

 

% Change

 

 

 

 

 

 

Department of Defense

 

$

334,101

 

 

71.4

%

$

307,208

 

 

72.6

%

$

26,893

 

 

8.8

%

Federal Civilian Agencies

 

 

107,845

 

 

23.1

%

 

93,060

 

 

22.0

%

 

14,785

 

 

15.9

%

Commercial

 

 

21,005

 

 

4.5

%

 

16,509

 

 

3.9

%

 

4,496

 

 

27.2

%

State and Local Governments

 

 

4,672

 

 

1.0

%

 

6,329

 

 

1.5

%

 

(1,657

)

 

-26.2

%

 

 

 

 

 

 

 

 

 

 

Total

 

$

467,623

 

 

100.0

%

$

423,106

 

 

100.0

%

$

44,517

 

 

10.5

%

 

 

 

 

 

 

 

 

 

 

Revenue by Contract Type (Unaudited)
Quarter Ended

(dollars in thousands)

 

9/30/2006

 

9/30/2005

 

$ Change

 

% Change

 

 

 

 

 

 

Time and materials

 

$

243,189

 

 

52.0

%

$

231,358

 

 

54.7

%

$

11,831

 

 

5.1

%

Cost reimbursable

 

 

129,697

 

 

27.7

%

 

110,251

 

 

26.0

%

 

19,446

 

 

17.6

%

Fixed price

 

 

94,737

 

 

20.3

%

 

81,497

 

 

19.3

%

 

13,240

 

 

16.2

%

 

 

 

 

 

 

 

 

 

 

Total

 

$

467,623

 

 

100.0

%

$

423,106

 

 

100.0

%

$

44,517

 

 

10.5

%

 

 

 

 

 

 

 

 

 

 

Revenue Received as a Prime versus Subcontractor (Unaudited)
Quarter Ended

(dollars in thousands)

 

9/30/2006

 

9/30/2005

 

$ Change

 

% Change

 

 

 

 

 

 

Prime

 

$

381,227

 

 

81.5

%

$

352,418

 

 

83.3

%

$

28,809

 

 

8.2

%

Subcontractor

 

 

86,396

 

 

18.5

%

 

70,688

 

 

16.7

%

 

15,708

 

 

22.2

%

 

 

 

 

 

 

 

 

 

 

Total

 

$

467,623

 

 

100.0

%

$

423,106

 

 

100.0

%

$

44,517

 

 

10.5

%

 

 

 

 

 

 

 

 

 

 

Contract Funding Orders Received (Unaudited)
Quarter Ended

(dollars in thousands)

 

09/30/2006

 

09/30/2005

 

$ Change

 

% Change

 

 

 

 

 

 

Contract Funding Orders

 

$

605,189

 

$

477,435

 

$

127,754

 

 

26.8

%

c

Reconciliation of Total Revenue Growth and Organic Revenue Growth
(Unaudited)

          The Company has presented organic revenue growth to reflect 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.  The Company believes that this non-GAAP financial measure provides investors with useful information to evaluate the growth rate of the Company’s 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)

 

9/30/2006

 

9/30/2005

 

% Change

 

9/30/2006

 

9/30/2005

 

% Change

 

 

 

 

 

 

 

 

Revenue, as reported

 

$

467,623

 

$

423,106

 

 

10.5

%

$

1,799,841

 

$

1,657,515

 

 

8.6

%

Less:  Acquired revenue

 

 

60,057

 

 

—  

 

 

 

 

 

136,818

 

 

—  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Organic revenue

 

$

407,566

 

$

423,106

 

 

-3.7

%

$

1,663,023

 

$

1,657,515

 

 

0.3

%