-
Contract awards of $777 million for the quarter; record $5.8
billion for the year, up 46 percent
-
Net income of $41.4 million for the quarter, up 13 percent;
$126.2 million for the year
-
Operating cash flow of $32.8 million for the quarter; $223.2
million for the year, up 12 percent
-
Total backlog of $9.6 billion, up 35 percent year-over-year
-
Reiterates FY16 guidance; forecasts organic revenue and net
income growth
CACI International Inc (NYSE
MKT: CACI), a leading information solutions and services provider to
the federal government, announced results today for its full year and
fourth fiscal quarter ended June 30, 2015.
CEO Commentary and Outlook
Ken
Asbury, CACI’s President and CEO, said, “Our results for the quarter
were in line with our expectations. We continued to win a significant
amount of contract awards and generated good cash flow. Overall, in our
fiscal year 2015, we achieved a record level of contract awards, a
record level of backlog, and increased our cash flow to $223 million.
“By transforming our business development approach and more closely
aligning our organization to key market areas, we have put in place a
solid foundation to deliver organic revenue and net income growth in
FY16. We will continue executing our strategy to meet our customers’
requirements and build long-term shareholder value.”
Fourth Quarter Results
|
|
|
|
|
|
|
|
|
|
|
|
(in millions except per-share data)
|
|
|
Q4, FY15
|
|
|
Q4, FY14
|
|
|
% Change
|
|
Revenue
|
|
|
$865.5
|
|
|
$905.7
|
|
|
-4.4%
|
|
Operating income
|
|
|
$75.1
|
|
|
$69.2
|
|
|
8.4%
|
|
Net income attributable to CACI
|
|
|
$41.4
|
|
|
$36.5
|
|
|
13.3%
|
|
Diluted earnings per share
|
|
|
$1.68
|
|
|
$1.49
|
|
|
12.8%
|
|
|
|
|
|
|
|
|
|
|
|
Revenue for the fourth quarter of Fiscal Year 2015 (FY15) decreased 4.4
percent compared to the fourth quarter of Fiscal Year 2014 (FY14). We
grew our direct labor base during the quarter, while other direct costs
declined due primarily to a reduction of subcontract labor resulting
from general federal government budget-related activities. The increase
in operating income was a result of increased work on a number of
existing contracts, new business, stronger award fees, an extra billing
day, and lower depreciation and amortization expense. Cash provided by
operations in the quarter was $32.8 million.
Additional Financial Metrics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q4, FY15
|
|
|
Q4, FY14
|
|
|
% Change
|
|
Earnings before interest, taxes, depreciation and amortization
(EBITDA), a non-GAAP measure (in millions)
|
|
|
$91.4
|
|
|
$87.5
|
|
|
4.4%
|
|
Diluted adjusted earnings per share, a non-GAAP measure
|
|
|
$2.19
|
|
|
$2.05
|
|
|
6.6%
|
|
Days sales outstanding
|
|
|
60
|
|
|
59
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth Quarter Awards and Contract Funding Orders
Our contract awards were $777 million in the fourth quarter of FY15,
11.3 percent higher than the $698 million of contract awards in the
fourth quarter of FY14. Approximately 20 percent of our awards in the
quarter were new business. Contract awards for all of FY15 were $5.8
billion, 46.3 percent higher than the $3.9 billion of contract awards in
all of FY14. Some of the awards in the quarter included:
-
A $61 million contract to continue support for the Defense Medical
Logistics Standard Support (DMLSS) system at the Joint Medical
Logistics Functional Development Center. This contract further expands
CACI’s work in our Health Solutions market area.
-
A $59.8 million four-year task order to provide modeling and analysis
support services for the U.S. Space and Naval Warfare Systems Command
and Naval Warfare Systems Center Atlantic Business Portfolios. This
work sustains our business in the Logistics and Material Readiness
market area.
-
A $48 million four-year, eight-month contract to provide operational
support services for the Office of the Under Secretary of Defense
(Comptroller) (OUSD(C)). CACI will continue providing a full spectrum
of on-site operational support in modernizing the critical information
systems of OUSD(C). The contract represents continuing work in our
Business Systems market area.
-
A $46 million contract to provide software engineering support for the
U.S. Army’s Program Executive Office Enterprise Information Systems.
This work maintains our business for this customer in our Business
Systems market area.
-
Two five-year task orders with a combined value of $29.8 million to
provide legal support services for the U.S. Securities and Exchange
Commission. This new work expands our business in the Investigation
and Litigation Support market area.
-
A multi-million dollar contract to provide systems engineering support
to the U.S. Army Communications-Electronics Research, Development, and
Engineering Center’s (CERDEC) Flight Activity. This contract increases
the size and scope of CACI's work for this customer and expands the
company's business in our Intelligence Systems and Support market area.
-
A multi-million dollar task order contract to continue providing rapid
response technical forensics and exploitation support for the U.S.
Army CERDEC Intelligence and Information Warfare Directorate. This
contract expands the size and scope of work we provide for this
customer in our Intelligence Systems and Support Services market area.
-
A prime position on a multiple-award indefinite delivery, indefinite
quantity contract with a nearly $1 billion dollar ceiling value to
continue our support for the U.S. Army’s CERDEC Intelligence and
Information Warfare Directorate. The multiple-year Technical
Information Engineering Services contract positions CACI for continued
growth in its Intelligence Services and Intelligence Systems and
Support market areas.
Contract funding orders in the quarter were $871 million compared with
$907 million in the year earlier quarter. For all of FY15, contract
funding orders were $3.8 billion, 4.0 percent higher than the $3.6
billion received in FY 14. Our total backlog at June 30, 2015 was $9.6
billion, 35 percent higher than our total backlog of $7.1 billion at
June 30, 2014. Funded backlog at June 30, 2015 was $2.0 billion, 29.6
percent higher than funded backlog of $1.6 billion at the end of FY14.
Fourth Quarter Recognition
-
The Washington Post named CACI to its ranking of 2015 Top
Workplaces in the greater Washington, DC area. The rankings are based
on surveys in which employees were asked to evaluate their companies
on such factors as the quality of leadership, pay and benefit
practices, and work-life balance issues.
Twelve Months Results
|
|
|
|
|
|
|
|
|
|
|
|
(in millions except per-share data)
|
|
|
Twelve Months,
FY15
|
|
|
Twelve Months,
FY14
|
|
|
% Change
|
|
Revenue
|
|
|
$3,313.5
|
|
|
$3,564.6
|
|
|
-7.0%
|
|
Operating income
|
|
|
$236.4
|
|
|
$257.4
|
|
|
-8.2%
|
|
Net income attributable to CACI
|
|
|
$126.2
|
|
|
$135.3
|
|
|
-6.7%
|
|
Diluted earnings per share
|
|
|
$5.17
|
|
|
$5.38
|
|
|
-3.8%
|
|
|
|
|
|
|
|
|
|
|
|
Revenue decreased 7.0 percent compared to revenue for the twelve months
of FY14. This decrease in revenue was primarily attributable to lower
subcontractor costs and other direct costs resulting from the drawdown
in Southwest Asia and federal government budget-related activities. The
decrease in operating income in FY15 was primarily a result of
budget-related activities, and ramp-up costs associated with the
significant growth of background investigation work for the Office of
Personnel Management. Cash provided by operations in FY15 was $223.2
million, 12.4 percent higher than the $198.6 million of cash provided by
operations in FY14.
Additional Financial Metrics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months,
FY15
|
|
|
Twelve Months,
FY14
|
|
|
% Change
|
|
Earnings before interest, taxes, depreciation and amortization
(EBITDA), a non-GAAP measure (in millions)
|
|
|
$303.2
|
|
|
$323.6
|
|
|
-6.3%
|
|
Diluted adjusted earnings per share, a non-GAAP measure
|
|
|
$7.23
|
|
|
$7.58
|
|
|
-4.6%
|
|
|
|
|
|
|
|
|
|
|
|
CACI Reiterates Its FY16 Guidance
We are reiterating the FY16 guidance we issued on June 24, 2015. The
table below summarizes our FY16 guidance ranges and represents our views
as of August 12, 2015:
|
|
|
|
|
|
|
(In millions except for tax rate and earnings per share)
|
|
|
|
Fiscal Year 2016
Guidance
|
|
Revenue
|
|
|
|
$3,300 - $3,500
|
|
Net income attributable to CACI
|
|
|
|
$130 - $140
|
|
Effective corporate tax rate
|
|
|
|
38.5%
|
|
Diluted earnings per share
|
|
|
|
$5.24 - $5.65
|
|
Diluted weighted average shares
|
|
|
|
24.8
|
|
|
|
|
|
|
Conference Call Information
We have scheduled a conference call for 8:30 AM Eastern Time Thursday,
August 13, 2015 during which members of our senior management team will
be making a brief presentation focusing on fourth 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 82120077. A replay of the call will also be available
over the Internet and can be accessed through our homepage (www.caci.com)
by clicking on the CACI Investor Info button.
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
16,700 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: regional and national economic conditions in the
United States and globally; 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
|
|
|
Selected Financial Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CACI International Inc
|
|
Condensed Consolidated Statements of Operations (Unaudited)
|
|
(Amounts in thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
|
|
|
|
|
|
|
Twelve Months Ended
|
|
|
|
|
|
|
|
|
6/30/2015
|
|
|
6/30/2014
|
|
|
% Change
|
|
|
6/30/2015
|
|
|
6/30/2014
|
|
|
% Change
|
|
Revenue
|
|
|
$
|
865,506
|
|
|
|
$
|
905,718
|
|
|
|
-4.4
|
%
|
|
|
$
|
3,313,452
|
|
|
|
$
|
3,564,562
|
|
|
|
-7.0
|
%
|
|
Costs of revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct costs
|
|
|
|
567,446
|
|
|
|
|
612,646
|
|
|
|
-7.4
|
%
|
|
|
|
2,193,585
|
|
|
|
|
2,426,520
|
|
|
|
-9.6
|
%
|
|
Indirect costs and selling expenses
|
|
|
|
206,996
|
|
|
|
|
205,754
|
|
|
|
0.6
|
%
|
|
|
|
817,403
|
|
|
|
|
815,458
|
|
|
|
0.2
|
%
|
|
Depreciation and amortization
|
|
|
|
15,985
|
|
|
|
|
18,083
|
|
|
|
-11.6
|
%
|
|
|
|
66,083
|
|
|
|
|
65,181
|
|
|
|
1.4
|
%
|
|
Total costs of revenue
|
|
|
|
790,427
|
|
|
|
|
836,483
|
|
|
|
-5.5
|
%
|
|
|
|
3,077,071
|
|
|
|
|
3,307,159
|
|
|
|
-7.0
|
%
|
|
Operating income
|
|
|
|
75,079
|
|
|
|
|
69,235
|
|
|
|
8.4
|
%
|
|
|
|
236,381
|
|
|
|
|
257,403
|
|
|
|
-8.2
|
%
|
|
Interest expense and other, net
|
|
|
|
8,605
|
|
|
|
|
9,834
|
|
|
|
-12.5
|
%
|
|
|
|
34,758
|
|
|
|
|
38,158
|
|
|
|
-8.9
|
%
|
|
Income before income taxes
|
|
|
|
66,474
|
|
|
|
|
59,401
|
|
|
|
11.9
|
%
|
|
|
|
201,623
|
|
|
|
|
219,245
|
|
|
|
-8.0
|
%
|
|
Income taxes
|
|
|
|
25,128
|
|
|
|
|
22,793
|
|
|
|
10.2
|
%
|
|
|
|
75,327
|
|
|
|
|
83,326
|
|
|
|
-9.6
|
%
|
|
Net income
|
|
|
|
41,346
|
|
|
|
|
36,608
|
|
|
|
12.9
|
%
|
|
|
|
126,296
|
|
|
|
|
135,919
|
|
|
|
-7.1
|
%
|
|
Noncontrolling interest
|
|
|
|
38
|
|
|
|
|
(74
|
)
|
|
|
|
|
|
|
|
(101
|
)
|
|
|
|
(603
|
)
|
|
|
|
|
|
Net income attributable to CACI
|
|
|
$
|
41,384
|
|
|
|
$
|
36,534
|
|
|
|
13.3
|
%
|
|
|
$
|
126,195
|
|
|
|
$
|
135,316
|
|
|
|
-6.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share
|
|
|
$
|
1.71
|
|
|
|
$
|
1.55
|
|
|
|
10.1
|
%
|
|
|
$
|
5.27
|
|
|
|
$
|
5.78
|
|
|
|
-8.8
|
%
|
|
Diluted earnings per share
|
|
|
$
|
1.68
|
|
|
|
$
|
1.49
|
|
|
|
12.8
|
%
|
|
|
$
|
5.17
|
|
|
|
$
|
5.38
|
|
|
|
-3.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares used in per share computations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
24,180
|
|
|
|
|
23,498
|
|
|
|
|
|
|
|
|
23,948
|
|
|
|
|
23,429
|
|
|
|
|
|
|
Diluted
|
|
|
|
24,613
|
|
|
|
|
24,517
|
|
|
|
|
|
|
|
|
24,388
|
|
|
|
|
25,155
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Statement of Operations Data (Unaudited)
|
|
|
|
|
|
|
Quarter Ended
|
|
|
|
|
|
|
Twelve Months Ended
|
|
|
|
|
|
|
|
|
6/30/2015
|
|
|
6/30/2014
|
|
|
% Change
|
|
|
6/30/2015
|
|
|
6/30/2014
|
|
|
% Change
|
|
Operating income margin
|
|
|
|
8.7
|
%
|
|
|
|
7.6
|
%
|
|
|
|
|
|
|
|
7.1
|
%
|
|
|
|
7.2
|
%
|
|
|
|
|
|
Tax rate
|
|
|
|
37.8
|
%
|
|
|
|
38.4
|
%
|
|
|
|
|
|
|
|
37.4
|
%
|
|
|
|
38.1
|
%
|
|
|
|
|
|
Net income margin
|
|
|
|
4.8
|
%
|
|
|
|
4.0
|
%
|
|
|
|
|
|
|
|
3.8
|
%
|
|
|
|
3.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA**
|
|
|
$
|
91,366
|
|
|
|
$
|
87,482
|
|
|
|
4.4
|
%
|
|
|
$
|
303,237
|
|
|
|
$
|
323,622
|
|
|
|
-6.3
|
%
|
|
EBITDA Margin
|
|
|
|
10.6
|
%
|
|
|
|
9.7
|
%
|
|
|
|
|
|
|
|
9.2
|
%
|
|
|
|
9.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income**
|
|
|
$
|
53,867
|
|
|
|
$
|
50,312
|
|
|
|
7.1
|
%
|
|
|
$
|
176,405
|
|
|
|
$
|
190,640
|
|
|
|
-7.5
|
%
|
|
Diluted adjusted earnings per share
|
|
|
$
|
2.19
|
|
|
|
$
|
2.05
|
|
|
|
6.6
|
%
|
|
|
$
|
7.23
|
|
|
|
$
|
7.58
|
|
|
|
-4.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
** 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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6/30/2015
|
|
|
6/30/2014
|
|
ASSETS:
|
|
|
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
35,364
|
|
|
$
|
64,461
|
|
Accounts receivable, net
|
|
|
|
596,155
|
|
|
|
615,580
|
|
Prepaid expenses and other current assets
|
|
|
|
44,941
|
|
|
|
55,808
|
|
Total current assets
|
|
|
|
676,460
|
|
|
|
735,849
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill and intangible assets, net
|
|
|
|
2,384,998
|
|
|
|
2,418,979
|
|
Property and equipment, net
|
|
|
|
63,689
|
|
|
|
68,485
|
|
Other long-term assets
|
|
|
|
131,969
|
|
|
|
135,825
|
|
Total assets
|
|
|
$
|
3,257,116
|
|
|
$
|
3,359,138
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY:
|
|
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
|
|
|
Current portion of long-term debt
|
|
|
$
|
38,965
|
|
|
$
|
41,563
|
|
Accounts payable
|
|
|
|
56,840
|
|
|
|
55,811
|
|
Accrued compensation and benefits
|
|
|
|
185,830
|
|
|
|
183,361
|
|
Other accrued expenses and current liabilities
|
|
|
|
118,046
|
|
|
|
141,852
|
|
Total current liabilities
|
|
|
|
399,681
|
|
|
|
422,587
|
|
|
|
|
|
|
|
|
|
|
|
Long-term debt, net of current portion
|
|
|
|
1,029,335
|
|
|
|
1,238,728
|
|
Other long-term liabilities
|
|
|
|
347,828
|
|
|
|
338,657
|
|
Total liabilities
|
|
|
|
1,776,844
|
|
|
|
1,999,972
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity
|
|
|
|
1,480,272
|
|
|
|
1,359,166
|
|
Total liabilities and shareholders' equity
|
|
|
$
|
3,257,116
|
|
|
$
|
3,359,138
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Financial Data (Continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CACI International Inc
|
|
Condensed Consolidated Statements of Cash Flows (Unaudited)
|
|
(Amounts in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended
|
|
|
|
|
6/30/2015
|
|
|
6/30/2014
|
|
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
$
|
126,296
|
|
|
|
$
|
135,919
|
|
|
Reconciliation of net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
66,083
|
|
|
|
|
65,181
|
|
|
Non-cash interest expense
|
|
|
|
-
|
|
|
|
|
11,421
|
|
|
Amortization of deferred financing costs
|
|
|
|
2,639
|
|
|
|
|
2,940
|
|
|
Loss on extinguishment of debt
|
|
|
|
272
|
|
|
|
|
4,116
|
|
|
Stock-based compensation expense
|
|
|
|
14,072
|
|
|
|
|
11,557
|
|
|
Provision for deferred income taxes
|
|
|
|
27,022
|
|
|
|
|
15,559
|
|
|
Undistributed earnings of unconsolidated joint ventures
|
|
|
|
(874
|
)
|
|
|
|
(1,656
|
)
|
|
Changes in operating assets and liabilities, net of effect of
business acquisitions:
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable, net
|
|
|
|
18,889
|
|
|
|
|
91,010
|
|
|
Prepaid expenses and other assets
|
|
|
|
(2,057
|
)
|
|
|
|
(4,666
|
)
|
|
Accounts payable and accrued expenses
|
|
|
|
(25,807
|
)
|
|
|
|
(121,148
|
)
|
|
Accrued compensation and benefits
|
|
|
|
2,776
|
|
|
|
|
(20,416
|
)
|
|
Income taxes receivable and payable
|
|
|
|
(3,630
|
)
|
|
|
|
6,710
|
|
|
Other liabilities
|
|
|
|
(2,466
|
)
|
|
|
|
2,116
|
|
|
Net cash provided by operating activities
|
|
|
|
223,215
|
|
|
|
|
198,643
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures
|
|
|
|
(17,444
|
)
|
|
|
|
(15,279
|
)
|
|
Purchases of businesses, net of cash acquired
|
|
|
|
(14,972
|
)
|
|
|
|
(839,050
|
)
|
|
Investment in unconsolidated joint venture
|
|
|
|
391
|
|
|
|
|
3,550
|
|
|
Other
|
|
|
|
629
|
|
|
|
|
(876
|
)
|
|
Net cash used in investing activities
|
|
|
|
(31,396
|
)
|
|
|
|
(851,655
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
Net (payments) borrowings under credit facilities
|
|
|
|
(213,451
|
)
|
|
|
|
660,850
|
|
|
Payment of contingent consideration
|
|
|
|
-
|
|
|
|
|
(3,294
|
)
|
|
Proceeds from employee stock purchase plans
|
|
|
|
3,287
|
|
|
|
|
3,527
|
|
|
Proceeds from exercise of stock options
|
|
|
|
691
|
|
|
|
|
-
|
|
|
Repurchase of common stock
|
|
|
|
(3,400
|
)
|
|
|
|
(3,653
|
)
|
|
Payment of taxes for equity transactions
|
|
|
|
(7,378
|
)
|
|
|
|
(9,764
|
)
|
|
Other
|
|
|
|
1,390
|
|
|
|
|
3,836
|
|
|
Net cash (used in) provided by financing activities
|
|
|
|
(218,861
|
)
|
|
|
|
651,502
|
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
|
|
(2,055
|
)
|
|
|
|
1,634
|
|
|
Net (decrease) increase in cash and cash equivalents
|
|
|
|
(29,097
|
)
|
|
|
|
124
|
|
|
Cash and cash equivalents, beginning of period
|
|
|
|
64,461
|
|
|
|
|
64,337
|
|
|
Cash and cash equivalents, end of period
|
|
|
$
|
35,364
|
|
|
|
$
|
64,461
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Financial Data (Continued)
|
|
|
|
|
|
Revenue by Customer Type (Unaudited)
|
|
|
|
Quarter Ended
|
|
|
|
|
|
(dollars in thousands)
|
|
6/30/2015
|
|
6/30/2014
|
|
$ Change
|
|
% Change
|
|
Department of Defense
|
|
$
|
576,284
|
|
66.6
|
%
|
|
$
|
653,665
|
|
72.2
|
%
|
|
$
|
(77,381
|
)
|
|
-11.8
|
%
|
|
Federal Civilian Agencies
|
|
|
236,979
|
|
27.4
|
%
|
|
|
199,777
|
|
22.1
|
%
|
|
|
37,202
|
|
|
18.6
|
%
|
|
Commercial and other
|
|
|
52,243
|
|
6.0
|
%
|
|
|
52,276
|
|
5.7
|
%
|
|
|
(33
|
)
|
|
-0.1
|
%
|
|
Total
|
|
$
|
865,506
|
|
100.0
|
%
|
|
$
|
905,718
|
|
100.0
|
%
|
|
$
|
(40,212
|
)
|
|
-4.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended
|
|
|
|
|
|
(dollars in thousands)
|
|
6/30/2015
|
|
6/30/2014
|
|
$ Change
|
|
% Change
|
|
Department of Defense
|
|
$
|
2,217,031
|
|
66.9
|
%
|
|
$
|
2,578,024
|
|
72.4
|
%
|
|
$
|
(360,993
|
)
|
|
-14.0
|
%
|
|
Federal Civilian Agencies
|
|
|
888,191
|
|
26.8
|
%
|
|
|
771,662
|
|
21.6
|
%
|
|
|
116,529
|
|
|
15.1
|
%
|
|
Commercial and other
|
|
|
208,230
|
|
6.3
|
%
|
|
|
214,876
|
|
6.0
|
%
|
|
|
(6,646
|
)
|
|
-3.1
|
%
|
|
Total
|
|
$
|
3,313,452
|
|
100.0
|
%
|
|
$
|
3,564,562
|
|
100.0
|
%
|
|
$
|
(251,110
|
)
|
|
-7.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue by Contract Type (Unaudited)
|
|
|
|
|
|
|
|
Quarter Ended
|
|
|
|
|
|
(dollars in thousands)
|
|
6/30/2015
|
|
6/30/2014
|
|
$ Change
|
|
% Change
|
|
Cost reimbursable
|
|
$
|
407,407
|
|
47.1
|
%
|
|
$
|
440,867
|
|
48.7
|
%
|
|
$
|
(33,460
|
)
|
|
-7.6
|
%
|
|
Fixed price
|
|
|
296,935
|
|
34.3
|
%
|
|
|
275,570
|
|
30.4
|
%
|
|
|
21,365
|
|
|
7.8
|
%
|
|
Time and materials
|
|
|
161,164
|
|
18.6
|
%
|
|
|
189,281
|
|
20.9
|
%
|
|
|
(28,117
|
)
|
|
-14.9
|
%
|
|
Total
|
|
$
|
865,506
|
|
100.0
|
%
|
|
$
|
905,718
|
|
100.0
|
%
|
|
$
|
(40,212
|
)
|
|
-4.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended
|
|
|
|
|
|
(dollars in thousands)
|
|
6/30/2015
|
|
6/30/2014
|
|
$ Change
|
|
% Change
|
|
Cost reimbursable
|
|
$
|
1,534,864
|
|
46.3
|
%
|
|
$
|
1,744,959
|
|
49.0
|
%
|
|
$
|
(210,095
|
)
|
|
-12.0
|
%
|
|
Fixed price
|
|
|
1,179,139
|
|
35.6
|
%
|
|
|
1,095,449
|
|
30.7
|
%
|
|
|
83,690
|
|
|
7.6
|
%
|
|
Time and materials
|
|
|
599,449
|
|
18.1
|
%
|
|
|
724,154
|
|
20.3
|
%
|
|
|
(124,705
|
)
|
|
-17.2
|
%
|
|
Total
|
|
$
|
3,313,452
|
|
100.0
|
%
|
|
$
|
3,564,562
|
|
100.0
|
%
|
|
$
|
(251,110
|
)
|
|
-7.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue Received as a Prime versus Subcontractor (Unaudited)
|
|
|
|
Quarter Ended
|
|
|
|
|
|
(dollars in thousands)
|
|
6/30/2015
|
|
6/30/2014
|
|
$ Change
|
|
% Change
|
|
Prime
|
|
$
|
780,187
|
|
90.1
|
%
|
|
$
|
809,376
|
|
89.4
|
%
|
|
$
|
(29,189
|
)
|
|
-3.6
|
%
|
|
Subcontractor
|
|
|
85,319
|
|
9.9
|
%
|
|
|
96,342
|
|
10.6
|
%
|
|
|
(11,023
|
)
|
|
-11.4
|
%
|
|
Total
|
|
$
|
865,506
|
|
100.0
|
%
|
|
$
|
905,718
|
|
100.0
|
%
|
|
$
|
(40,212
|
)
|
|
-4.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended
|
|
|
|
|
|
(dollars in thousands)
|
|
6/30/2015
|
|
6/30/2014
|
|
$ Change
|
|
% Change
|
|
Prime
|
|
$
|
2,965,683
|
|
89.5
|
%
|
|
$
|
3,191,939
|
|
89.5
|
%
|
|
$
|
(226,256
|
)
|
|
-7.1
|
%
|
|
Subcontractor
|
|
|
347,769
|
|
10.5
|
%
|
|
|
372,623
|
|
10.5
|
%
|
|
|
(24,854
|
)
|
|
-6.7
|
%
|
|
Total
|
|
$
|
3,313,452
|
|
100.0
|
%
|
|
$
|
3,564,562
|
|
100.0
|
%
|
|
$
|
(251,110
|
)
|
|
-7.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Financial Data (Continued)
|
|
|
|
|
|
|
|
|
|
|
|
Contract Funding Orders Received (Unaudited)
|
|
|
|
Quarter Ended
|
|
|
|
|
|
(dollars in thousands)
|
|
6/30/2015
|
|
6/30/2014
|
|
$ Change
|
|
% Change
|
|
Contract Funding Orders
|
|
$
|
871,345
|
|
$
|
906,836
|
|
$
|
(35,491
|
)
|
|
-3.9
|
%
|
|
|
|
Twelve Months Ended
|
|
|
|
|
|
(dollars in thousands)
|
|
6/30/2015
|
|
6/30/2014
|
|
$ Change
|
|
% Change
|
|
Contract Funding Orders
|
|
$
|
3,756,631
|
|
$
|
3,610,314
|
|
$
|
146,317
|
|
|
4.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct Costs by Category (Unaudited)
|
|
|
|
Quarter Ended
|
|
(dollars in thousands)
|
|
6/30/2015
|
|
6/30/2014
|
|
$ Change
|
|
% Change
|
|
Direct labor
|
|
$
|
276,326
|
|
48.7
|
%
|
|
$
|
263,959
|
|
43.1
|
%
|
|
$
|
12,367
|
|
|
4.7
|
%
|
|
Other direct costs
|
|
|
291,120
|
|
51.3
|
%
|
|
|
348,687
|
|
56.9
|
%
|
|
|
(57,567
|
)
|
|
-16.5
|
%
|
|
Total direct costs
|
|
$
|
567,446
|
|
100.0
|
%
|
|
$
|
612,646
|
|
100.0
|
%
|
|
$
|
(45,200
|
)
|
|
-7.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended
|
|
(dollars in thousands)
|
|
6/30/2015
|
|
6/30/2014
|
|
$ Change
|
|
% Change
|
|
Direct labor
|
|
$
|
1,062,882
|
|
48.5
|
%
|
|
$
|
1,028,045
|
|
42.4
|
%
|
|
$
|
34,837
|
|
|
3.4
|
%
|
|
Other direct costs
|
|
|
1,130,703
|
|
51.5
|
%
|
|
|
1,398,475
|
|
57.6
|
%
|
|
|
(267,772
|
)
|
|
-19.1
|
%
|
|
Total direct costs
|
|
$
|
2,193,585
|
|
100.0
|
%
|
|
$
|
2,426,520
|
|
100.0
|
%
|
|
$
|
(232,935
|
)
|
|
-9.6
|
%
|
|
|
|
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 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 plus stock-based compensation expense, depreciation and
amortization, and amortization of financing costs, 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
|
|
|
|
Twelve Months Ended
|
|
|
|
(dollars in thousands)
|
|
6/30/2015
|
|
6/30/2014
|
|
% Change
|
|
6/30/2015
|
|
6/30/2014
|
|
% Change
|
|
Net income, as reported
|
|
$
|
41,384
|
|
|
$
|
36,534
|
|
|
13.3
|
%
|
|
$
|
126,195
|
|
|
$
|
135,316
|
|
|
-6.7
|
%
|
|
Plus:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes
|
|
|
25,128
|
|
|
|
22,793
|
|
|
10.2
|
%
|
|
|
75,327
|
|
|
|
83,326
|
|
|
-9.6
|
%
|
|
|
Interest income and expense, net
|
|
|
8,869
|
|
|
|
10,072
|
|
|
-11.9
|
%
|
|
|
35,632
|
|
|
|
39,799
|
|
|
-10.5
|
%
|
|
|
Depreciation and amortization
|
|
|
15,985
|
|
|
|
18,083
|
|
|
-11.6
|
%
|
|
|
66,083
|
|
|
|
65,181
|
|
|
1.4
|
%
|
|
EBITDA
|
|
$
|
91,366
|
|
|
$
|
87,482
|
|
|
4.4
|
%
|
|
$
|
303,237
|
|
|
$
|
323,622
|
|
|
-6.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
|
|
|
|
Twelve Months Ended
|
|
|
|
(dollars in thousands)
|
|
6/30/2015
|
|
6/30/2014
|
|
% Change
|
|
6/30/2015
|
|
6/30/2014
|
|
% Change
|
|
Revenue, as reported
|
|
$
|
865,506
|
|
|
$
|
905,718
|
|
|
-4.4
|
%
|
|
$
|
3,313,452
|
|
|
$
|
3,564,562
|
|
|
-7.0
|
%
|
|
EBITDA
|
|
$
|
91,366
|
|
|
$
|
87,482
|
|
|
4.4
|
%
|
|
$
|
303,237
|
|
|
$
|
323,622
|
|
|
-6.3
|
%
|
|
EBITDA margin
|
|
|
10.6
|
%
|
|
|
9.7
|
%
|
|
|
|
|
9.2
|
%
|
|
|
9.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
|
|
|
|
Twelve Months Ended
|
|
|
|
(dollars in thousands)
|
|
6/30/2015
|
|
6/30/2014
|
|
% Change
|
|
6/30/2015
|
|
6/30/2014
|
|
% Change
|
|
Net income, as reported
|
|
$
|
41,384
|
|
|
$
|
36,534
|
|
|
13.3
|
%
|
|
$
|
126,195
|
|
|
$
|
135,316
|
|
|
-6.7
|
%
|
|
Plus:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation
|
|
|
4,021
|
|
|
|
2,667
|
|
|
50.8
|
%
|
|
|
14,072
|
|
|
|
11,557
|
|
|
21.8
|
%
|
|
|
Depreciation and amortization
|
|
|
15,985
|
|
|
|
18,083
|
|
|
-11.6
|
%
|
|
|
66,083
|
|
|
|
65,181
|
|
|
1.4
|
%
|
|
|
Amortization of financing costs
|
|
|
577
|
|
|
|
762
|
|
|
-24.3
|
%
|
|
|
2,639
|
|
|
|
2,940
|
|
|
-10.2
|
%
|
|
|
Non-cash interest expense
|
|
|
-
|
|
|
|
1,176
|
|
|
-100.0
|
%
|
|
|
-
|
|
|
|
11,421
|
|
|
-100.0
|
%
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Related tax effect
|
|
|
(8,100
|
)
|
|
|
(8,910
|
)
|
|
-9.1
|
%
|
|
|
(32,584
|
)
|
|
|
(35,775
|
)
|
|
-8.9
|
%
|
|
Adjusted net income
|
|
$
|
53,867
|
|
|
$
|
50,312
|
|
|
7.1
|
%
|
|
$
|
176,405
|
|
|
$
|
190,640
|
|
|
-7.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
|
|
|
|
Twelve Months Ended
|
|
|
|
(shares in thousands)
|
|
6/30/2015
|
|
6/30/2014
|
|
% Change
|
|
6/30/2015
|
|
6/30/2014
|
|
% Change
|
|
Diluted weighted average shares, as reported
|
|
|
24,613
|
|
|
|
24,517
|
|
|
|
|
|
24,388
|
|
|
|
25,155
|
|
|
|
|
Diluted earnings per share, as reported
|
|
$
|
1.68
|
|
|
$
|
1.49
|
|
|
12.8
|
%
|
|
$
|
5.17
|
|
|
$
|
5.38
|
|
|
-3.8
|
%
|
|
Diluted adjusted earnings per share
|
|
$
|
2.19
|
|
|
$
|
2.05
|
|
|
6.6
|
%
|
|
$
|
7.23
|
|
|
$
|
7.58
|
|
|
-4.6
|
%
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20150812006090/en/
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