CACI Reports Results for Its Fiscal 2022 Second Quarter

·21 min read

Revenues of $1.5 billion

Net income of $90.3 million and Diluted EPS of $3.83

Adjusted net income of $103.6 million and Adjusted diluted EPS of $4.39

Adjusted EBITDA of $158.0 million and Adjusted EBITDA margin of 10.6%

Robust cash flow from operations and free cash flow

Contract awards of $2.0 billion

RESTON, Va., January 26, 2022--(BUSINESS WIRE)--CACI International Inc (NYSE: CACI), a leading provider of expertise and technology to government enterprise and mission customers, announced results today for its fiscal second quarter ended December 31, 2021.

John Mengucci, CACI President and Chief Executive Officer, said, "We delivered solid results in the second quarter, with organic growth, healthy profitability, and robust cash flow. Contract awards were strong and included nearly $600 million of classified contracts, demonstrating our differentiation and the value of investing ahead of customer need to address critical national security and modernization priorities. We continued to execute on our flexible and opportunistic capital deployment strategy, making two acquisitions that enhance our capabilities and customer footprint in high-value areas of our addressable market. CACI remains well-positioned to deliver long-term growth, margin expansion, and shareholder value."

Second Quarter Results

Three Months Ended

(in millions, except earnings per share and DSO)

12/31/2021

12/31/2020

% Change

Revenue

$1,485.8

$1,468.7

1.2

%

Income from operations

$124.1

$141.5

-12.3

%

Net income

$90.3

$106.5

-15.2

%

Adjusted net income, a non-GAAP measure1

$103.6

$119.4

-13.2

%

Diluted earnings per share

$3.83

$4.18

-8.4

%

Adjusted diluted earnings per share, a non-GAAP measure1

$4.39

$4.69

-6.4

%

Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), a non-GAAP measure1

$158.0

$174.6

-9.5

%

Net cash provided by operating activities excluding MARPA1

$128.9

$189.8

-32.1

%

Free cash flow, a non-GAAP measure1

$117.4

$174.2

-32.6

%

Days sales outstanding (DSO)2

53

53

(1)

This non-GAAP measure should not be considered in isolation or as a substitute for measures prepared in accordance with GAAP. For additional information regarding this non-GAAP measure, see the related explanation and reconciliation to the GAAP measure included below in this release.

(2)

The DSO calculations for three months ended December 31, 2021 and 2020 exclude the impact of the Company’s MARPA, which was 9 days and 10 days, respectively.

Revenues in Q2 FY22 increased 1 percent year-over-year organically. The year-over-year decrease in income from operations was driven primarily by unusually high profitability in the year-ago quarter, which was partially due to low cost of delivery on fixed-price programs and lower travel and medical expenses related to the COVID-19 pandemic. Diluted earnings per share and adjusted diluted earnings per share decreased due to lower income from operations, higher interest expense, and a higher tax rate, partially offset by a lower share count as a result of the $500 million accelerated share repurchase announced in March 2021. The decrease in cash from operations, excluding MARPA, was driven by a $21 million benefit from deferred payroll taxes under the CARES Act in the year-ago quarter and a $47 million repayment of deferred payroll taxes in the current quarter. Excluding the CARES Act impacts, both cash from operations and free cash flow would have increased when compared to Q2 FY21.

Second Quarter Contract Awards

Contract awards in Q2 FY22 totaled $2.0 billion, with approximately 70 percent for new business to CACI. Awards exclude ceiling values of multi-award, indefinite delivery, indefinite quantity (IDIQ) contracts. Some notable awards during the quarter were:

  • A new five-year, single-award task order, with a ceiling value of $514 million, to provide network modernization of outside plant (OSP) infrastructure and facilities across major U.S. Army locations within the continental United States. Awarded by GSA FEDSIM under the Alliant 2 contract vehicle, CACI engineers, managers, and technicians will deliver enterprise technology to enhance capabilities and improve capacity needed for an underground fiber optic cable infrastructure required to support robust, reliable, high-speed voice, video and data networks for critical command and control systems.

  • Approximately $600 million in previously unannounced awards on classified contracts with federal government customers supporting national security.

Total backlog as of December 31, 2021 was $24.1 billion compared with $22.4 billion a year ago, an increase of 8 percent. Funded backlog as of December 31, 2021 was $3.1 billion compared with $2.9 billion a year ago, an increase of 7 percent.

Additional Second Quarter Highlights

  • CACI completed its acquisition of SA Photonics, Inc., a leading provider of innovative multi-domain photonics technologies for free-space optical (FSO) communications. Together, CACI's Photonic Solutions and SA Photonics will address a broader market spanning high-end manned flight programs to the value based proliferated Low-Earth Orbit (LEO) market that the Space Development Agency (SDA) and the U.S. Space Force are seeking. CACI will offer the most advanced photonics engineering and manufacturing capabilities in the U.S. by adding two major facilities in California and Florida to its existing footprint in New Jersey.

  • CACI acquired ID Technologies (IDT), an innovative enterprise IT, Infrastructure-as-a-Service, and network modernization provider with NSA- compliant Commercial Solutions for Classified (CSfC) technology. The acquisition closed on December 29, 2021 with a total purchase consideration of $225 million. The acquisition expands CACI’s secure network modernization capabilities with CSfC software equipping U.S government workers with modern devices to operate virtually anywhere within essential systems that are vital to national security. Additionally, CACI will leverage IDT’s capabilities in product and engineering solutions to deliver on our customer’s cloud, network, and end-user initiatives.

  • CACI Board Member, The Honorable Susan M. "Sue" Gordon, received the William H. Webster Distinguished Service Award on Dec. 1, 2021. Ms. Gordon was recognized for her significant contributions to the Intelligence Community and was named as one of the United States' most accomplished national security leaders.

  • CACI's Lt. Gen. Michael Nagata, U.S. Army (Ret.), Corporate Strategic Advisor and Senior Vice President, received the National Defense Industrial Association's (NDIA) Special Operations/Low Intensity Conflict (SO/LIC) DeProspero Lifetime Achievement Award on November 4, 2021. The DeProspero Lifetime Achievement Award recognizes sustained, distinguished service and is presented annually to an individual who has made distinctive lifetime contributions with significant impact in the areas of Special Operations, Low Intensity Conflict, or Irregular Warfare.

  • CACI entered into a partnership with Yubico through a memorandum of understanding that establishes Yubico as the exclusive provider of multi-factor authentication (MFA) solutions in support of CACI's trusted mobile platforms. Yubico will provide YubiKey 5 FIPS Series products for enhanced security and authentication protocols for CACI's software-defined key loading devices that enable more capable, secure, and resilient communications for U.S. government missions.

FY22 Guidance

The table below summarizes our FY22 guidance and represents our views as of January 26, 2022.

Fiscal Year 2022

(in millions except earnings per share)

Current Guidance

Prior Guidance

Revenues

$6,300 - $6,400

$6,200 - $6,400

Adjusted net income, a non-GAAP measure1

$430 - $440

$430 - $450

Adjusted diluted earnings per share, a non-GAAP measure1

$18.14 - $18.57

$18.00 - $18.83

Diluted weighted average shares

23.7

23.9

Free cash flow, a non-GAAP measure2

at least $720

at least $720

(1)

Adjusted net income and Adjusted diluted earnings per share are defined as GAAP net income and GAAP diluted EPS, respectively, excluding intangible amortization expense and the related tax impact. This non-GAAP measure should not be considered in isolation or as a substitute for measures prepared in accordance with GAAP. For additional information regarding this non-GAAP measure, see the related explanation and reconciliation to the GAAP measure included below in this release.

(2)

Expected Fiscal Year 2022 free cash flow includes an estimated $230 million tax benefit related to certain tax elections, as well as a payroll tax deferral repayment of approximately $47 million. Free cash flow is defined as Net cash provided by operating activities excluding MARPA, less payments for capital expenditures (capex). This non-GAAP measure should not be considered in isolation or as a substitute for measures prepared in accordance with GAAP. For additional information regarding this non-GAAP measure, see the related explanation and reconciliation to the GAAP measure included below in this release.

Conference Call Information

We have scheduled a conference call for 8:30 AM Eastern Time Thursday, January 27, 2022 during which members of our senior management 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 webcast and view the accompanying exhibits on CACI’s investor relations website at http://investor.caci.com/events/default.aspx at the scheduled time. A replay of the call will also be available on CACI’s investor relations website at http://investor.caci.com/.

About CACI

CACI’s approximately 22,000 talented employees are vigilant in providing the unique expertise and distinctive technology that address our customers’ greatest enterprise and mission challenges. Our culture of good character, innovation, and excellence drives our success and earns us recognition as a Fortune World's Most Admired Company. As a member of the Fortune 500 Largest Companies, the Russell 1000 Index, and the S&P MidCap 400 Index, we consistently deliver strong shareholder value. Visit us at www.caci.com.

There are statements made herein that 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 risk factors that could cause actual results to be materially different from anticipated results. These risk factors include, but are not limited to, the following: our reliance on U.S. government contracts, which includes general risk around the government contract procurement process (such as bid protest, small business set asides, loss of work due to organizational conflicts of interest, etc.) and termination risks; significant delays or reductions in appropriations for our programs and broader changes in U.S. government funding and spending patterns; legislation that amends or changes discretionary spending levels or budget priorities, such as for homeland security or to address global pandemics like COVID-19; legal, regulatory, and political change from successive presidential administrations that could result in economic uncertainty; changes in U.S. federal agencies, current agreements with other nations, foreign events, or any other events which may affect the global economy, including the impact of global pandemics like COVID-19; 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; competitive factors such as pricing pressures and/or competition to hire and retain employees (particularly those with security clearances); failure to achieve contract awards in connection with re-competes for present business and/or competition for new business; regional and national economic conditions in the United States and globally, including but not limited to: terrorist activities or war, changes in interest rates, currency fluctuations, significant fluctuations in the equity markets, and market speculation regarding our continued independence; our ability to meet contractual performance obligations, including technologically complex obligations dependent on factors not wholly within our control; limited access to certain facilities required for us to perform our work, including during a global pandemic like COVID-19; changes in tax law, the interpretation of associated rules and regulations, or any other events impacting our effective tax rate; changes in technology; the potential impact of the announcement or consummation of a proposed transaction and our ability to successfully integrate the operations of our recent and any future acquisitions; our ability to achieve the objectives of near term or long-term business plans; the effects of health epidemics, pandemics and similar outbreaks may have material adverse effects on our business, financial position, results of operations and/or cash flows; and other risks described in our Securities and Exchange Commission filings.

CACI International Inc

Condensed Consolidated Statements of Operations (Unaudited)

(in thousands, except per share data)

Three Months Ended

Six Months Ended

12/31/2021

12/31/2020

% Change

12/31/2021

12/31/2020

% Change

Revenues

$

1,485,778

$

1,468,711

1.2%

$

2,976,676

$

2,928,217

1.7%

Costs of revenues:

Direct costs

974,018

947,131

2.8%

1,948,189

1,887,065

3.2%

Indirect costs and selling expenses

354,977

347,807

2.1%

712,083

702,811

1.3%

Depreciation and amortization

32,676

32,234

1.4%

65,268

62,378

4.6%

Total costs of revenues:

1,361,671

1,327,172

2.6%

2,725,540

2,652,254

2.8%

Income from operations

124,107

141,539

-12.3%

251,136

275,963

-9.0%

Interest expense and other, net

11,009

9,087

21.2%

21,407

19,067

12.3%

Income before income taxes

113,098

132,452

-14.6%

229,729

256,896

-10.6%

Income taxes

22,799

25,974

-12.2%

51,321

56,774

-9.6%

Net income

$

90,299

$

106,478

-15.2%

$

178,408

$

200,122

-10.9%

Basic earnings per share

$

3.86

$

4.22

-8.5%

$

7.60

$

7.95

-4.5%

Diluted earnings per share

$

3.83

$

4.18

-8.4%

$

7.52

$

7.86

-4.3%

Weighted average shares used in per share computations:

Basic

23,399

25,225

23,480

25,162

Diluted

23,598

25,451

23,722

25,469

Statement of Operations Data (Unaudited)

Three Months Ended

Six Months Ended

12/31/2021

12/31/2020

% Change

12/31/2021

12/31/2020

% Change

Income from operations (as a % of Revenues)

8.4%

9.6%

8.4%

9.4%

Effective tax rate

20.2%

19.6%

22.3%

22.1%

Net income (as a % of Revenues)

6.1%

7.2%

6.0%

6.8%

Adjusted EBITDA1

$

158,025

$

174,580

-9.5%

$

318,965

$

340,016

-6.2%

Adjusted EBITDA Margin1

10.6%

11.9%

10.7%

11.6%

(1) This non-GAAP measure should not be considered in isolation or as a substitute for measures prepared in accordance with GAAP. For additional information regarding this non-GAAP measure, see the related explanation and reconciliation to the GAAP measure included below in this release.

CACI International Inc

Condensed Consolidated Balance Sheets (Unaudited)

(in thousands)

12/31/2021

6/30/2021

ASSETS

Current assets:

Cash and cash equivalents

$

124,103

$

88,031

Accounts receivable, net

854,415

879,851

Prepaid expenses and other current assets

356,543

363,294

Total current assets

1,335,061

1,331,176

Goodwill

4,064,968

3,632,578

Intangible assets, net

620,688

476,106

Property, plant and equipment, net

190,214

190,444

Operating lease right-of-use assets

352,242

356,887

Supplemental retirement savings plan assets

103,698

102,984

Accounts receivable, long-term

11,398

12,159

Other long-term assets

72,421

70,038

Total assets

$

6,750,690

$

6,172,372

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

Current portion of long-term debt

$

30,625

$

46,920

Accounts payable

217,795

148,636

Accrued compensation and benefits

372,501

409,275

Other accrued expenses and current liabilities

316,098

279,970

Total current liabilities

937,019

884,801

Long-term debt, net of current portion

2,079,831

1,688,919

Supplemental retirement savings plan obligations, net of current portion

109,444

104,490

Deferred income taxes

339,360

327,230

Operating lease liabilities, noncurrent

355,323

363,302

Other long-term liabilities

84,003

138,352

Total liabilities

3,904,980

3,507,094

COMMITMENTS AND CONTINGENCIES

Shareholders' equity:

Common stock

4,281

4,268

Additional paid-in-capital

555,968

484,260

Retained earnings

3,367,495

3,189,087

Accumulated other comprehensive loss

(34,840

)

(36,291

)

Treasury stock, at cost

(1,047,329

)

(976,181

)

Total CACI shareholders' equity

2,845,575

2,665,143

Noncontrolling interest

135

135

Total shareholders' equity

2,845,710

2,665,278

Total liabilities and shareholders' equity

$

6,750,690

$

6,172,372

CACI International Inc

Condensed Consolidated Statements of Cash Flows (Unaudited)

(in thousands)

Six Months Ended

12/31/2021

12/31/2020

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income

$

178,408

$

200,122

Adjustments to reconcile net income to net cash provided

by operating activities:

Depreciation and amortization

65,268

62,378

Amortization of deferred financing costs

1,147

1,163

Loss on extinguishment of debt

891

-

Non-cash lease expense

33,943

38,436

Stock-based compensation expense

14,698

15,041

Deferred income taxes

(1,962

)

(6,311

)

Changes in operating assets and liabilities, net of effect of

business acquisitions:

Accounts receivable, net

72,650

94,292

Prepaid expenses and other assets

(24,701

)

(20,605

)

Accounts payable and other accrued expenses

39,535

(30,087

)

Accrued compensation and benefits

(89,752

)

39,461

Income taxes payable and receivable

46,402

11,107

Operating lease liabilities

(34,169

)

(37,916

)

Long-term liabilities

6,407

15,206

Net cash provided by operating activities

308,765

382,287

CASH FLOWS FROM INVESTING ACTIVITIES:

Capital expenditures

(21,632

)

(31,873

)

Acquisitions of businesses, net of cash acquired

(609,356

)

(355,127

)

Other

923

-

Net cash used in investing activities

(630,065

)

(387,000

)

CASH FLOWS FROM FINANCING ACTIVITIES:

Proceeds from borrowings under bank credit facilities

Principal payments made under bank credit facilities

Payment of financing costs under bank credit facilities

Proceeds from employee stock purchase plans

5,221

4,664

Repurchases of common stock

(4,995

)

(4,420

)

Payment of taxes for equity transactions

(13,956

)

(18,649

)

Net cash provided by (used in) financing activities

358,849

(5,865

)

Effect of exchange rate changes on cash and cash equivalents

Net change in cash and cash equivalents

36,072

(5,122

)

Cash and cash equivalents, beginning of period

88,031

107,236

Cash and cash equivalents, end of period

$

124,103

$

102,114

Revenues by Customer Group (Unaudited)

Three Months Ended

(in thousands)

12/31/2021

12/31/2020

$ Change

% Change

Department of Defense

$

1,037,014

69.8%

$

1,012,875

68.9%

$

24,139

2.4%

Federal Civilian Agencies

371,897

25.0%

390,034

26.6%

(18,137)

-4.7%

Commercial and other

76,867

5.2%

65,802

4.5%

11,065

16.8%

Total

$

1,485,778

100.0%

$

1,468,711

100.0%

$

17,067

1.2%

Six Months Ended

(in thousands)

12/31/2021

12/31/2020

$ Change

% Change

Department of Defense

2,037,141

68.4%

2,017,070

68.9%

$

20,071

1.0%

Federal Civilian Agencies

785,561

26.4%

780,213

26.6%

5,348

0.7%

Commercial and other

153,974

5.2%

130,934

4.5%

23,040

17.6%

Total

2,976,676

100.0%

2,928,217

100.0%

$

48,459

1.7%

Revenues by Contract Type (Unaudited)

Three Months Ended

(in thousands)

12/31/2021

12/31/2020

$ Change

% Change

Cost-plus-fee

$

889,358

59.8%

$

843,584

57.5%

$

45,774

5.4%

Fixed price

433,290

29.2%

440,821

30.0%

(7,531)

-1.7%

Time and materials

163,130

11.0%

184,306

12.5%

(21,176)

-11.5%

Total

$

1,485,778

100.0%

$

1,468,711

100.0%

$

17,067

1.2%

Six Months Ended

(in thousands)

12/31/2021

12/31/2020

$ Change

% Change

Cost-plus-fee

1,783,071

59.9%

1,667,193

56.9%

$

115,878

7.0%

Fixed price

840,995

28.3%

874,635

29.9%

(33,640)

-3.8%

Time and materials

352,610

11.8%

386,389

13.2%

(33,779)

-8.7%

Total

2,976,676

100.0%

2,928,217

100.0%

$

48,459

1.7%

Revenues by Prime or Subcontractor (Unaudited)

Three Months Ended

(in thousands)

12/31/2021

12/31/2020

$ Change

% Change

Prime

$

1,335,846

89.9%

$

1,327,025

90.4%

$

8,821

0.7%

Subcontractor

149,932

10.1%

141,686

9.6%

8,246

5.8%

Total

$

1,485,778

100.0%

$

1,468,711

100.0%

$

17,067

1.2%

Six Months Ended

(in thousands)

12/31/2021

12/31/2020

$ Change

% Change

Prime

2,677,405

89.9%

2,653,863

90.6%

$

23,542

0.9%

Subcontractor

299,271

10.1%

274,354

9.4%

24,917

9.1%

Total

2,976,676

100.0%

2,928,217

100.0%

$

48,459

1.7%

Revenues by Expertise or Technology (Unaudited)

Three Months Ended

(in thousands)

12/31/2021

12/31/2020

$ Change

% Change

Expertise

$

686,309

46.2%

$

732,276

49.9%

$

(45,967)

-6.3%

Technology

799,469

53.8%

736,435

50.1%

63,034

8.6%

Total

$

1,485,778

100.0%

$

1,468,711

100.0%

$

17,067

1.2%

Six Months Ended

(in thousands)

12/31/2021

12/31/2020

$ Change

% Change

Expertise

1,389,355

46.7%

1,472,959

50.3%

$

(83,604)

-5.7%

Technology

1,587,321

53.3%

1,455,258

49.7%

132,063

9.1%

Total

2,976,676

100.0%

2,928,217

100.0%

$

48,459

1.7%

Contract Awards (Unaudited)

Three Months Ended

(in thousands)

12/31/2021

12/31/2020

$ Change

% Change

Contract Awards

$

1,952,672

$

2,129,108

$

(176,436)

-8.3%

Six Months Ended

(in thousands)

12/31/2021

12/31/2020

$ Change

% Change

Contract Awards

$

4,340,641

$

3,963,866

$

376,775

9.5%

Reconciliation of Net Income to Adjusted Net Income and Diluted EPS to Adjusted Diluted EPS
(Unaudited)

Adjusted net income and Adjusted diluted EPS are non-GAAP performance measures. We define Adjusted net income and Adjusted diluted EPS as GAAP net income and GAAP diluted EPS, respectively, excluding intangible amortization expense and the related tax impact as we do not consider intangible amortization expense to be indicative of our core operating performance. We believe that these performance measures provide management and investors with useful information in assessing trends in our ongoing operating performance, provide greater visibility in understanding the long-term financial performance of the Company, and allow investors to more easily compare our results to results of our peers. These non-GAAP measures should not be considered in isolation or as a substitute for performance measures prepared in accordance with GAAP.

(in thousands, except per share data)

Three Months Ended

Six Months Ended

12/31/2021

12/31/2020

% Change

12/31/2021

12/31/2020

% Change

Net income, as reported

$

90,299

$

106,478

-15.2

%

$

178,408

$

200,122

-10.9

%

Intangible amortization expense

18,054

17,478

3.3

%

35,647

33,612

6.1

%

Tax effect of intangible amortization1

(4,747

)

(4,595

)

3.3

%

(9,373

)

(8,838

)

6.1

%

Adjusted net income

$

103,606

$

119,361

-13.2

%

$

204,682

$

224,896

-9.0

%

Three Months Ended

Six Months Ended

12/31/2021

12/31/2020

% Change

12/31/2021

12/31/2020

% Change

Diluted EPS, as reported

$

3.83

$

4.18

-8.4

%

$

7.52

$

7.86

-4.3

%

Intangible amortization expense

0.77

0.69

11.6

%

1.50

1.32

13.6

%

Tax effect of intangible amortization1

(0.21

)

(0.18

)

16.7

%

(0.39

)

(0.35

)

11.4

%

Adjusted diluted EPS

$

4.39

$

4.69

-6.4

%

$

8.63

$

8.83

-2.3

%

(in millions, except per share amounts)

FY22 Guidance Range

Low End

High End

Net income, as reported

$

375

---

$

385

Intangible amortization expense

74

---

74

Tax effect of intangible amortization1

(20

)

---

(20

)

Adjusted net income

$

430

---

$

440

FY22 Guidance Range

Low End

High End

Diluted EPS, as reported

$

15.83

---

$

16.26

Intangible amortization expense

3.13

---

3.13

Tax effect of intangible amortization1

(0.82

)

---

(0.82

)

Adjusted diluted EPS

$

18.14

---

$

18.57

(1) Calculation uses an assumed statutory tax rate of 26.3% on non-GAAP tax deductible adjustments.

Note: Numbers may not sum due to rounding

Reconciliation of Net Income to Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)
(Unaudited)

The Company views Adjusted EBITDA and Adjusted EBITDA margin, both of which are defined as non-GAAP measures, as important indicators of performance, consistent with the manner in which management measures and forecasts the Company’s performance. Adjusted EBITDA is a commonly used non-GAAP measure when comparing our results with those of other companies. We define Adjusted EBITDA as GAAP net income plus net interest expense, income taxes, depreciation and amortization expense (including depreciation within direct costs), and earnout adjustments. We consider Adjusted EBITDA to be a useful metric for management and investors to evaluate and compare the ongoing operating performance of our business on a consistent basis across reporting periods, as it eliminates the effect of non-cash items such as depreciation of tangible assets, amortization of intangible assets primarily recognized in business combinations, as well as the effect of earnout gains and losses, which we do not believe are indicative of our core operating performance. Adjusted EBITDA margin is adjusted EBITDA divided by revenue. These non-GAAP measures should not be considered in isolation or as a substitute for performance measures prepared in accordance with GAAP.

Three Months Ended

Six Months Ended

(in thousands)

12/31/2021

12/31/2020

% Change

12/31/2021

12/31/2020

% Change

Net income

$

90,299

$

106,478

-15.2

%

$

178,408

$

200,122

-10.9

%

Plus:

Income taxes

22,799

25,974

-12.2

%

51,321

56,774

-9.6

%

Interest income and expense, net

11,009

9,087

21.2

%

21,407

19,067

12.3

%

Depreciation and amortization expense, including amounts within direct costs

33,918

33,041

2.7

%

67,829

64,053

5.9

%

Adjusted EBITDA

$

158,025

$

174,580

-9.5

%

$

318,965

$

340,016

-6.2

%

Three Months Ended

Six Months Ended

(in thousands)

12/31/2021

12/31/2020

% Change

12/31/2021

12/31/2020

% Change

Revenues, as reported

$

1,485,778

$

1,468,711

1.2

%

$

2,976,676

$

2,928,217

1.7

%

Adjusted EBITDA

158,025

174,580

-9.5

%

318,965

340,016

-6.2

%

Adjusted EBITDA margin

10.6

%

11.9

%

10.7

%

11.6

%

Reconciliation of Net Cash Provided by Operating Activities to Net Cash Provided by Operating Activities Excluding MARPA and to Free Cash Flow
(Unaudited)

The Company defines Net cash provided by operating activities excluding MARPA, a non-GAAP measure, as net cash provided by operating activities calculated in accordance with GAAP, adjusted to exclude cash flows from CACI’s Master Accounts Receivable Purchase Agreement (MARPA) for the sale of certain designated eligible U.S. government receivables up to a maximum amount of $200.0 million. Free cash flow is a non-GAAP liquidity measure and may not be comparable to similarly titled measures used by other companies. The Company defines Free cash flow as Net cash provided by operating activities excluding MARPA, less payments for capital expenditures. The Company uses these non-GAAP measures to assess our ability to generate cash from our business operations and plan for future operating and capital actions. We believe this measure allows investors to more easily compare current period results to prior period results and to results of our peers. Free cash flow does not represent residual cash flows available for discretionary purposes and should not be used as a substitute for cash flow measures prepared in accordance with GAAP.

Three Months Ended

Six Months Ended

(in thousands)

12/31/2021

12/31/2020

12/31/2021

12/31/2020

Net cash provided by operating activities

$

122,812

$

205,387

$

308,765

$

382,287

Cash used in (provided by) MARPA

6,038

(15,553

)

(5,451

)

242

Net cash provided by operating activities excluding MARPA

128,850

189,834

303,314

382,529

Capital expenditures

(11,429

)

(15,591

)

(21,632

)

(31,873

)

Free cash flow

$

117,421

$

174,243

$

281,682

$

350,656

(in millions)

FY22 Guidance

Net cash provided by operating activities1

$

810

Cash used in (provided by) MARPA

-

Net cash provided by operating activities excluding MARPA

810

Capital expenditures

(90

)

Free cash flow

$

720

(1) Includes estimated tax benefits of $230 million related to certain tax elections, as well as payroll tax deferral repayment of approximately $47 million.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220126005901/en/

Contacts

Corporate Communications and Media:
Jody Brown, Executive Vice President, Public Relations
(703) 841-7801, jbrown@caci.com

Investor Relations:
Daniel Leckburg, Senior Vice President, Investor Relations
(703) 841-7666, dleckburg@caci.com