CACI International Inc (NYSE: CACI), a leading information solutions and
services provider to the federal government, issued its guidance for its
Fiscal Year 2015 (FY15), which begins July 1, 2014, and reiterated its
Fiscal Year 2014 (FY14) guidance.
Guidance for Fiscal Year 2015
For FY15 we expect revenue to be between $3.3 billion and $3.6 billion
and net income to be between $125 million and $135 million. We expect
that operating cash flow for the year will be approximately $200 million.
The table below summarizes our FY15 guidance ranges and represents our
views as of June 25, 2014:
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(In millions except for tax rate and earnings per share)
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Fiscal Year 2015 Guidance
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Revenue
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$3,300 - $3,600
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Net income attributable to CACI
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$125 - $135
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Effective corporate tax rate
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38.5%
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Diluted earnings per share
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$5.10 - $5.51
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Diluted weighted average shares
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24.5
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Commentary
Ken Asbury, CACI’s President and CEO said, “In FY14 we positioned CACI
for long-term success by strengthening business development and
enhancing our unique, high-end skills and capabilities, most notably
with the acquisition of Six3 Systems. While we expect market
uncertainties to persist in FY15, we believe that our differentiated
position, operational excellence, and demonstrated ability to win
contract awards will help offset the impact of constrained federal
spending.
“Consequently, as we look ahead to FY15, we are well-postured to support
our customers’ critical missions and priorities with innovative
solutions and services, delivering excellence in all we do. We will also
continue to position CACI for success in those market areas where we
see viable growth opportunities. We believe that these actions will
further enhance CACI's competitive advantage and create long-term
shareholder value.”
FY15 Guidance
Following are the key factors related to our FY15 guidance:
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We expect that uncertainty with regard to federal spending will
continue; that there is more clarity with regard to U.S. forces in
Afghanistan; and that the rate of change in run-rates on professional
services contracts will slow.
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We anticipate a seasonal decrease of quarterly revenue between the
fourth quarter of FY14 and the first quarter of our FY15 similar to
prior years.
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We expect that our direct labor costs will be between 4 and 7 percent
greater than what we expect in FY14. Other directs costs will be 4 to
7 percent less than what we expect in FY14.
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We anticipate that our indirect costs and selling expenses will be 2
to 4 percent higher than FY14.
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Depreciation and amortization is expected to be approximately $67
million.
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Our operating margin is expected to be about even with FY14.
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Net interest expense is expected to be approximately $41 million.
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We expect capital expenditures will total approximately $15 to $20
million.
FY14 Guidance Reiterated
We are reiterating the FY14 guidance we issued on April 30, 2014. The
table below summarizes our FY14 guidance and represents our views as of
June 25, 2014:
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(In millions except for tax rate and earnings per share)
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FY 2014 Guidance
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Revenue
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$3,500 - $3,600
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Net income attributable to CACI
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$130 - $140
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Effective corporate tax rate
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38%
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Diluted earnings per share
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$5.12 - $5.51
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Diluted weighted average shares
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25.4
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Conference Call Information
We have scheduled a conference call for 8:30 AM Eastern Time Thursday,
June 26, 2014, during which members of our senior management will be
making a brief presentation followed by a question-and-answer session to
discuss the guidance and management’s performance expectations for the
new fiscal year. You can listen to the conference call and view
accompanying exhibits over the Internet by logging on to CACI’s website
at www.caci.com
at the scheduled time. You may also dial in to 1-877-303-9143,
confirmation code 48864475. Slides of the presentation will be available
on our website during the call. A replay of the call will also be
available over the Internet, and can be accessed through CACI’s website (www.caci.com).
CACI provides information solutions and services in support of national
security missions and government transformation for Intelligence,
Defense, and Federal Civilian customers. A Fortune magazine
World’s Most Admired Company in the IT Services industry, CACI is a
member of the Fortune 1000 Largest Companies, the Russell 2000 Index,
and the S&P SmallCap 600 Index. CACI provides dynamic careers for over
15,300 employees in 120 offices worldwide. Visit 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: the successful integration of our acquisition of Six3
Systems, actual revenue and earnings realized by Six3 Systems, and the
performance of the Six3 Systems business; regional and national economic
conditions in the United States and globally (including the impact of
uncertainty regarding U.S. debt limits and actions taken related
thereto); terrorist activities or war; changes in interest rates;
currency fluctuations; significant fluctuations in the equity markets;
changes in our effective tax rate; failure to achieve contract awards in
connection with re-competes 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, implementation of spending cuts
(sequestration) under the Budget Control Act of 2011 and the Bipartisan
Budget Act of 2013; changes in budgetary priorities or in the
event of a priority need for funds, such as homeland security;
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 audits and
reviews conducted by the Defense Contract Audit Agency, the Defense
Contract Management Agency, or other governmental 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 our Securities
and Exchange Commission filings.
CACI-Financial
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