CACI International Inc ˇ 1100 North Glebe Road ˇ Arlington Virginia 22201
CACI Reports Record Results for Its Fiscal 2010 Fourth Quarter and Full Year
Revenue increased 16.4 percent in the quarter, 15.3 percent for the year
Organic revenue growth of 14.3 percent in the quarter, 13.4 percent for the year
Contract funding orders increased 16.0 percent for the quarter, 14.2 percent for the year
Net income increased 8.8 percent in the quarter, 18.7 percent for the year
Operating cash flow increased 52.6 percent for the quarter, 38.7 percent for the year
Arlington, VA, August 17, 2010 - CACI International Inc (NYSE:CACI), a leading professional services and information technology solutions provider to the federal government, announced results today for its fourth fiscal quarter and full fiscal year ended June 30, 2010.
Fourth Quarter Results
We are pleased to report record fourth quarter net income of $29.9 million, or $0.96 diluted earnings per share. Net income increased 8.8 percent over net income of $27.5 million, or $0.91 diluted earnings per share, for the same period last year. The 16.4 percent increase in revenue in the quarter was driven by organic growth of 14.3 percent, reflecting the continued strong performance of our defense and intelligence businesses. This performance was driven primarily by growth in our core competencies of C4ISR, Logistics and Material Readiness, and Integrated Security and Intelligence Solutions.
Solid operating performance, lower interest expense and a lower tax rate drove our net income growth. Our strong annual net income growth drove higher variable stock compensation expense in the quarter, which had the effect of increasing our operating expense and moderating operating income growth. Our operating cash flow of $86.4 million in the quarter was 52.6 percent higher than in the fourth quarter of last year.
Fiscal Year 2010 Results
For the full year, our net income was a record $106.5 million, or $3.47 diluted earnings per share. This net income was an 18.7 percent increase over net income of $89.7 million, or $2.95 diluted earnings per share in Fiscal Year 2009 (FY09). The 15.3 percent increase in revenue in Fiscal Year 2010 (FY10) was driven by organic growth of 13.4 percent, reflecting the strong performance of our defense and intelligence businesses throughout the year.
Our strong operating performance, lower interest expense and a significantly lower tax rate drove our net income growth. Our higher net income increased variable cash and stock compensation expense, which had the effect of increasing operating expense and moderating operating income growth. The corporate tax rate was favorably affected by gains in the investments in CACI's deferred compensation plan and tax benefits related to software development. Our record operating cash flow of $209.3 million for the year was 38.7 percent higher than the amount reported in FY09.
CEO Commentary and Outlook
Commenting on the company's financial results, Paul Cofoni, CACI's President and CEO, said, "This marks the third consecutive year that we have met or exceeded our guidance in top- and bottom-line performance. FY10 was a record year for revenue, net income, diluted earnings per share, operating cash flow and contract funding orders. In addition, we completed three strategic acquisitions that have added to our portfolio of cyber security and IT modernization solutions. Our growth continues to be driven by the key support we provide to the warfighter in the critical, well-funded national security priorities of C4ISR and intelligence."
"We believe that FY11 will be another solid year for CACI. We expect to continue to generate strong operating cash flow, which will enhance our solid balance sheet and our ability to fund our future growth both organically and by acquisition. We believe our strengths are aligned with the government's well funded, high priority areas in the proposed federal budget for the next fiscal year. The requested Operations and Maintenance part of the defense appropriations, where we derive the majority of our revenue, is 8.5 percent higher than Fiscal 2010. We believe there will be negligible impact on our operations from the Secretary of Defense's recommendations to eliminate the Joint Forces Command, the office for Network and Information Integration and the J-6. We have been informed that the work we do for the Business Transformation Agency will continue following its transition to other organizations. During our FY11, we believe our operational excellence and our solid long-term customer relationships will continue to be contributing factors to maintaining our high recompete win rate, winning new business, and positioning us to provide our services to new customers in key growth areas of C4ISR and intelligence. This gives us the confidence to reiterate our guidance for FY11."
"We expect to see a continuing strong demand for our services and solutions in FY11 and beyond. We believe the initiatives to improve efficiency and effectiveness recently announced by the Secretary of Defense and the Office of Management and Budget will present new opportunities for our services and solutions that support the warfighter and the modernization of government. We are confident that we will continue to execute our strategy, deliver on our commitments and enhance shareholder value."
Additional Financial Metrics
Contract Funding Orders and Awards
CACI Reaffirms Its FY11 Guidance
We are reaffirming our Fiscal Year 2011 (FY11) guidance which we issued on June 29, 2010. The table below summarizes the guidance ranges for FY11:
This guidance represents our views as of August 17, 2010. 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 Wednesday, August 18, 2010 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 87216709. A replay of the call will also be available over the Internet beginning at 1:00 PM Eastern Time Wednesday, August 18, 2010 and can be accessed through our homepage (www.caci.com) by clicking on the CACI Investor Info button.
CACI provides professional services and IT solutions needed to prevail in the defense, intelligence, homeland security, and federal civilian government arenas. We deliver enterprise IT and network services; data, information, and knowledge management services; business system solutions; logistics and material readiness; C4ISR 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 13,200 employees working in over 120 offices in the U.S. and Europe. 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 a prolonged recession; 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 rebuilding Iraq, 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 or other government entities with cognizant oversight; the insourcing of contractor positions by the government; 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 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)
# # #
|Corporate Communications and Media:
Jody Brown, Executive Vice President
(703) 841-7801, firstname.lastname@example.org
David Dragics, Senior Vice President
(866) 606-3471, email@example.com