Caci reports record results for its fiscal 2011 third quarter and
raises guidance
Arlington, va.--(business wire)--caci international inc (nyse: caci), a leading professional services and information technology solutions provider to the federal government, announced results today for its third fiscal quarter ended march 31, 2011. third quarter results we are pleased to report record third quarter fiscal year 2011 (fy11) revenue of $913.4 million, an increase of 16.5 percent from the third quarter of fiscal year 2010 (fy10). the revenue increase was driven primarily by organic growth of 14.3 percent, reflecting continued growth in our c4isr solutions and services and business system solutions core competencies. operating income grew 30.6 percent over the prior year period to a record $61.8 million, driven by strong growth in direct labor and continued cost control. in addition, we benefitted from a $2.6 million decrease to our earn-out related liability for acquisitions made in fy10 and a lower than expected tax rate. net income for the third quarter of fy11 was a record $36.4 million, or $1.16 diluted earnings per share, an increase of 36.4 percent over net income of $26.7 million, or $0.87 diluted earnings per share, for the same period in fy10. net cash provided by operations in the quarter was $77.6 million. ceo commentary and outlook commenting on the company’s results, paul cofoni, caci’s president and ceo, said, “we delivered a very strong quarter, exceeding our goal of mid- to high-single-digit organic revenue growth and producing outstanding earnings growth. our robust pipeline, high win rate, operational excellence, and margin improvement initiatives yielded our exceptional financial results. we completed our june 2010 share repurchase program. in addition, as part of our balanced capital allocation strategy, caci’s board of directors recently approved a new $175 million share repurchase program. “caci operates in a large addressable market that continues to provide ample opportunities, even in a period of spending constraints, as evidenced by our revenue growth. we are well positioned in the areas of defense, intelligence, homeland security and the transformation and modernization of government. with the federal budget in place for the remainder of the government’s fiscal year 2011, we expect funding activity to increase over the next two quarters. the expansion of our cyber security practice is producing results as demonstrated by a recent cyber-related award under the s3 contract. given the strength of our pipeline and our focus on national security priorities in well-funded areas, we are confident in our ability to deliver another year of record results in fy11 and to further increase shareholder value in the years to come.” additional financial metrics third quarter contract funding orders and awards contract funding orders in the third quarter were $749 million. contract funding orders for the first nine months of fy11 were $2.7 billion, a 7.7 percent increase over the first nine months of fy10. funded backlog at march 31st was $1.9 billion, a 3.6 percent increase over the third quarter of fy10. total backlog at march 31st was $6.9 billion. during the third quarter, we won contract awards with an estimated value of $274 million. over 60 percent of these awards were for new business. contract awards for the first nine months of fy11 were $2.1 billion, a 22.2 percent increase over the first nine months of fy10. this fy11 nine-month figure excludes the $450 million department of homeland security tasc award announced in our second fiscal quarter, as a protest of this award was sustained in march 2011. third quarter awards included: a prime position on the u.s. army forces command (forscom) $2.5 billion, five-year indefinite delivery, indefinite quantity (idiq) operations, planning, training and resource support services ii (optarss ii) contract. we will leverage our deep functional understanding of forscom and its mission and continue to provide mobilization and deployment planning support for army activities worldwide. we included $50 million in estimated value to our awards, above, attributable to our business under the original optarss contract. a $41 million, three-year contract under the u.s. army idiq strategic services sourcing (s3) contract to support information assurance and cryptographic programs for the army’s communications-electronics research, development and engineering center. our services and solutions will help the army safeguard networks from security vulnerabilities and provide innovative mobile applications for battlefield communications. awards during the quarter on the s3 contract vehicle with the u.s. army totaled $50 million. the work on these awards supports the warfighter through our c4isr solutions and services. a prime position on the u.s. army forces command (forscom) $2.5 billion, five-year indefinite delivery, indefinite quantity (idiq) operations, planning, training and resource support services ii (optarss ii) contract. we will leverage our deep functional understanding of forscom and its mission and continue to provide mobilization and deployment planning support for army activities worldwide. we included $50 million in estimated value to our awards, above, attributable to our business under the original optarss contract. a $41 million, three-year contract under the u.s. army idiq strategic services sourcing (s3) contract to support information assurance and cryptographic programs for the army’s communications-electronics research, development and engineering center. our services and solutions will help the army safeguard networks from security vulnerabilities and provide innovative mobile applications for battlefield communications. awards during the quarter on the s3 contract vehicle with the u.s. army totaled $50 million. the work on these awards supports the warfighter through our c4isr solutions and services. not included in the above estimated value of awards are: a prime position on the federal bureau of investigation (fbi) $30 billion, eight-year idiq information technology supplies and support services contract. this is the largest contract ever awarded by the fbi, and we will compete for task orders to provide it services in areas such as cybersecurity, biometrics, secure communications, counterterrorism analytics, and systems operations and maintenance. a prime position on the department of justice (doj) $1.1 billion, six and one-half year idiq information technology support services 4 contract. we will provide services that will help doj fulfill its mission-critical objectives through improved cybersecurity, infrastructure, transparency, and innovation. a prime position on the federal bureau of investigation (fbi) $30 billion, eight-year idiq information technology supplies and support services contract. this is the largest contract ever awarded by the fbi, and we will compete for task orders to provide it services in areas such as cybersecurity, biometrics, secure communications, counterterrorism analytics, and systems operations and maintenance. a prime position on the department of justice (doj) $1.1 billion, six and one-half year idiq information technology support services 4 contract. we will provide services that will help doj fulfill its mission-critical objectives through improved cybersecurity, infrastructure, transparency, and innovation. other significant highlights dan allen was appointed as caci’s chief operating officer for u.s. operations. in this position, mr. allen will provide leadership to our business groups, and continue to enhance the operational excellence that supports our growth. mr. allen comes to caci from northrop grumman, where he served as sector vice president and general manager of the company's intelligence systems division, the primary division in northrop grumman's information systems sector focusing on intelligence and cyber solutions and services. during the fiscal third quarter, we repurchased 445,340 shares, at an average price of $58.68 per share, for a total cost of $26.1 million. as of april 25, 2011, we completed our june 2010 $50 million share repurchase program, repurchasing a total of 966,116 shares at an average price of $51.74 per share. this program increased value to our shareholders and offset dilution. subsequent to the end of the third fiscal quarter, caci’s board of directors approved a new $175 million share repurchase program. in march, we partnered with the u.s. naval institute and the center for security policy to co-sponsor countering cyber challenges to the industrial base, a symposium focused on issues the nation must address to protect its industrial base from cyber and insider threats. keynote speakers included former ambassador john r. bolton, former virginia governor james s. gilmore, iii, and former homeland security advisor frances townsend. panelists included congressman darrell issa, chair of the house committee on oversight and government reform. third quarter recognition caci’s recruiting and workforce planning team was recognized with the top electronic recruiting exchange (ere) recruiting excellence award for being the “recruiting department/function of the year.” the ere is the world's largest online community and forum for recruiting professionals, and its annual awards are considered to be some of the most prestigious in the industry. caci and terathink corporation were selected by the department of homeland security (dhs) to receive the 2011 dhs mentor-protÉgÉ team of the year award under the dhs mentor-protÉgÉ program. the program honors mentor-protÉgÉ teams that have made an outstanding contribution to the mission of dhs. as mentor, caci was honored jointly with its protÉgÉ, terathink, an american indian-owned small business. nine month results revenue in all of our core competencies grew in the first nine months of fy11, led by increases in c4isr solutions and services and integrated security and intelligence solutions. operating income increased 23.1 percent in the first nine months of fy11, primarily as a result of solid growth in direct labor and ongoing cost control. revenue, operating income and net income all reached record levels in the first nine months of fy11. net cash provided by operations for the first nine months was $146.8 million. additional financial metrics 9 months,fy11 9 months,fy10 % change caci increases its fy11 guidance we are increasing our fy11 guidance as a result of our strong third quarter performance. the table below summarizes the new guidance ranges for fy11: current fy11guidance previous fy11guidance this guidance represents our views as of may 4, 2011. investors are reminded that actual results may differ for the reasons described herein and in our filings with the securities and exchange commission. conference call information we have scheduled a conference call for 8:30 am eastern time thursday, may 5, 2011, during which members of our senior management team will be making a brief presentation focusing on third 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 49067366. a replay of the call will also be available over the internet beginning at 1:00 pm eastern time thursday, may 5, 2011 and can be accessed through our homepage (www.caci.com) by clicking on the caci investor info button. about caci caci provides professional services and it solutions needed to prevail in the areas of defense, intelligence, homeland security, and it modernization and government transformation. we deliver enterprise it and network services; data, information, and knowledge management services; business system solutions; logistics and material readiness; c4isr solutions and services; cyber solutions; integrated security and intelligence solutions; and program management and seta support services. caci services and solutions help our federal clients provide for national security, improve communications and collaboration, secure the integrity of information systems and networks, enhance data collection and analysis, and increase efficiency and mission effectiveness. caci is a member of the fortune 1000 largest companies and the russell 2000 index. caci provides dynamic careers for approximately 13,700 employees working in over 120 offices in the u.s. and internationally. visit caci on the web at www.caci.com and www.asymmetricthreat.net. 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 prolonged weakness; terrorist activities or war; changes in interest rates; currency fluctuations; significant fluctuations in the equity markets; changes in our effective tax rate; valuation of contingent consideration in connection with business combinations; 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, based on a change in spending patterns, or in the event of a priority need for funds, such as homeland security, the war on terrorism, or an economic stimulus package; 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; the results of government audits and reviews conducted by the defense contract audit agency, the defense contract management agency, or other government 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 the company’s securities and exchange commission filings. (financial tables follow) net income before noncontrolling interest in earnings of joint venture noncontrolling interest in earnings of joint venture **see reconciliation of net income to earnings before interest, taxes, depreciation and amortization and to adjusted net income on page 10. condensed consolidated balance sheets (unaudited) net income before noncontrolling interest in earnings of joint venture reconciliation of net income to net cash provided by operating activities: reconciliation of total revenue growth and organic revenue growth (unaudited) selected financial data (continued) reconciliation of net income to earnings before interest, taxes, depreciation and amortization (ebitda) and to adjusted net income (unaudited) diluted weighted average shares, as reported caci-financial
