Caci reports results for its fiscal 2015 second quarter
Arlington, va.--(business wire)--caci international inc (nyse: caci), a leading information solutions and services provider to the federal government, announced results today for its second fiscal quarter ended december 31, 2014. ceo commentary and outlook ken asbury, caci’s president and ceo, said, “our results for the second quarter were in line with our expectations. we received record contract awards for the quarter, solid contract funding, and our backlog grew significantly as we continued to execute our strategy of winning business and delivering operational excellence. we also completed the substantial ramp-up associated with the significant growth of our background investigation work for the office of personnel management (opm). while the associated costs materially impacted our operating and net income for the quarter, we are reiterating our fy15 guidance as we will see the benefit of these investments in the second half of the year, in particular our fourth quarter. “we are confident in our competitive position and our ability to continue to meet the needs of our customers through the delivery of our innovative, affordable solutions and services. the first half of our fiscal year has provided us with a solid foundation for a strong finish in fy15 which gives us confidence in reiterating our guidance.” second quarter results revenue for the second quarter of fiscal year 2015 (fy15) decreased 8.8 percent compared to the second quarter of fiscal year 2014 (fy14). the decline in revenue was primarily due to a reduction of other direct costs resulting from in-theater reductions and federal government budget-related activities that were partially offset by increased direct labor. the decrease in operating and net income in the quarter was driven by start-up costs associated with the growth of background investigation work for the office of personnel management (opm). the lesser decrease in diluted earnings per share as compared to the decrease in net income was due to fewer diluted shares as a result of paying off our convertible notes in may 2014. for the second quarter six3 generated $91 million of revenue. for calendar year 2014 the six3 acquisition generated 5 percent accretion in gaap earnings per share and 13 percent in diluted adjusted earnings per share, excluding transaction expenses. additional financial metrics second quarter awards and contract funding orders our contract awards were $1.88 billion in the second quarter of fy15, 162 percent higher than the $717 million of contract awards in the second quarter of fy14. approximately 50 percent of our awards in the quarter were new business. contract funding orders in the second quarter were $571 million compared with $599 million in the year earlier quarter. our total backlog at december 31, 2014 was $9.8 billion. funded backlog at december 31, 2014 was $1.9 billion. second quarter highlights and recognition caci entered into a cooperative partnership with appcelerator® that will enable customers, particularly in the department of defense and the intelligence community, to rapidly develop and deploy secure smartphone and tablet apps at lower development cost. the partnership of caci and appcelerator will provide an end-to-end solution set to deliver secure, reliable, and cost-effective mobile apps to support federal agencies’ critical missions. in december caci appointed jerry briggs, former chief operating officer, health & public service north america of accenture, the world’s largest consulting firm, as executive vice president and business group manager of healthcare, litigation & enterprise it. mr. briggs is an experienced industry veteran who for 30 years led a $3 billion dollar healthcare and public service business and brings a strong track record of profitable growth in federal services. he will continue caci’s aggressive expansion in the healthcare sector. executive chairman and chairman of the board dr. j.p. (jack) london was named one of the “100 most influential people in business ethics” for 2014 by the ethisphere institute. the annual list recognizes people who have made a positive material impact on the world of business ethics. dr. london’s inclusion in this list underscores caci’s commitment to ethics and integrity in delivering our services and solutions to our customers. six months results revenue decreased 7.3 percent compared to revenue for the first half of fy14 due to reductions in subcontract labor and other direct costs resulting from in-theater reductions and federal government budget-related activities. the decrease in operating and net income in the first half of fy15 was due primarily to start-up costs associated with the significant growth of background investigation work for opm. the lesser decrease in diluted earnings per share as compared to the decrease in net income was due to fewer diluted shares as a result of paying off our convertible notes in may 2014. net cash provided by operations in the first half of fy15 was $93.3 million. additional financial metrics caci reiterates its fy15 guidance we are reiterating the fy15 guidance we issued on october 29, 2014. the table below summarizes our fy15 guidance ranges and represents our views as of january 28, 2015: fy 2015 guidance conference call information we have scheduled a conference call for 8:30 am eastern time thursday, january 29, 2015 during which members of our senior management team will be making a brief presentation focusing on second 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 45343421. 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 16,300 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: 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; 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 reconciliation of net income to net cash provided by operating activities: undistributed earnings of unconsolidated joint ventures other other $ change $ change $ change $ change $ change $ change $ change $ change $ change $ change 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 attributable to caci 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 attributable to caci plus stock-based compensation expense, depreciation and amortization, amortization of financing costs, and non-cash interest expense, 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. diluted weighted average shares, as reported
