CACI Reports Results for Its Fiscal 2024 Second Quarter and Raises Fiscal Year Guidance

Rhea-AI Summary

CACI International Inc (NYSE: CACI) reported strong second-quarter results for fiscal year 2024, with revenues of $1.8 billion, an 11% year-over-year increase. Net income was $83.9 million, with diluted EPS of $3.74, both up 2% year-over-year. The company raised its guidance for fiscal year 2024, projecting an increase in revenue, adjusted net income, adjusted diluted EPS, and free cash flow. CACI also announced contract awards of $2.2 billion, with a book-to-bill ratio of 1.2x.

Positive

• Revenues increased by 11.2% year-over-year, driven by organic growth.
• Contract awards totaled $2.2 billion, with approximately 55% for new business to CACI.
• The company raised its guidance for fiscal year 2024, projecting an increase in revenue, adjusted net income, adjusted diluted EPS, and free cash flow.

Negative

• None.

Insights

Financial Analyst

The financial results reported by CACI International Inc reflect a robust performance, with revenues showing an 11.2% year-over-year increase, primarily attributed to organic growth. This is a strong indicator of the company's ability to expand its market share and operational efficiency. Furthermore, the reported book-to-bill ratio of 1.2x suggests that the company is securing more new business than it is billing, which is a positive sign for future revenue streams. However, it's important to note that despite the revenue growth, there was a 3.7% decline in net income and a 3.6% decrease in adjusted net income. This divergence could be due to various factors such as increased operational costs or investments in growth opportunities that have yet to yield returns. The rise in free cash flow, a crucial indicator of financial health, by 647.4% to $67.8 million, shows improved liquidity and the potential for future investments or shareholder returns.

Market Research Analyst

In the context of the defense and government services industry, CACI's significant contract awards, including the $526 million GENMOD project and the $382 million task order for DEVCOM ESID, indicate the company's competitive edge and strategic positioning in securing large-scale government contracts. These awards not only contribute to the company's backlog, which has increased by 2% to $26.9 billion, but also reinforce CACI's reputation and reliability as a service provider. The 16% increase in funded backlog to $3.7 billion is particularly noteworthy as it represents contracts that have received appropriations, thus providing more visibility into future earnings. Additionally, the company's recognition as a top employer for veterans and its strategic hiring, such as bringing on Tanya M. Skeen, align with the industry's focus on leveraging expertise to navigate the complex landscape of defense contracting and technology development.

Economist

CACI's performance and upward revision of its fiscal year 2024 guidance reflect broader economic trends, such as increased government spending on defense and technology modernization. The company's ability to capitalize on these trends, as evidenced by the $200 million in higher-than-expected material purchases by customers, is indicative of the sector's resilience and growth potential. The improved guidance, with a revenue increase estimate of $7,300 to $7,500 million, adjusted net income of $450 to $465 million and a minimum free cash flow of $420 million, suggests a bullish outlook on the company's operational capabilities. This could potentially influence investor sentiment positively. However, it is essential to consider macroeconomic factors such as tax policy changes, including the impact of Section 174 of the Tax Cuts and Jobs Act, which could affect future cash flows and investment strategies.

Revenues of $1.8 billion, +11% YoY

Net income of $83.9 million and diluted EPS of $3.74, +2% YoY

Adjusted net income of $97.6 million and adjusted diluted EPS of $4.36, +2% YoY

Contract awards of $2.2 billion and book-to-bill of 1.2x

Raising Fiscal Year 2024 guidance for revenue, adjusted net income, adjusted diluted EPS, and free cash flow

RESTON, Va.--(BUSINESS WIRE)-- CACI International Inc (NYSE: CACI), a leading provider of expertise and technology to government customers, announced results today for its fiscal second quarter ended December 31, 2023.

“I’m pleased with how our business is performing, both the near-term conversion of our growing backlog as well as our positioning for future growth,” said John Mengucci, CACI President and Chief Executive Officer. “The first half of Fiscal Year 2024 played out as we expected and we are seeing increasing momentum in the second half of the year. This acceleration enables us to raise our Fiscal Year 2024 guidance. We continue to win in the marketplace by providing differentiated capabilities, investing ahead of customer need, and leveraging our exceptional past performance and business development. We remain confident in our ability to drive long-term growth, increase free cash flow, and generate value for our customers and our shareholders.”

Second Quarter Results

(in millions, except earnings per share and DSO)	Three Months Ended
	12/31/2023			12/31/2022			% Change
Revenues	$	1,833.9		$	1,649.4		11.2	%
Income from operations	$	133.3		$	130.9		1.9	%
Net income	$	83.9		$	87.1		-3.7	%
Adjusted net income, a non-GAAP measure1	$	97.6		$	101.3		-3.6	%
Diluted earnings per share	$	3.74		$	3.68		1.6	%
Adjusted diluted earnings per share, a non-GAAP measure1	$	4.36		$	4.28		1.9	%
Earnings before interest, taxes, depreciation and amortization (EBITDA), a non-GAAP measure1	$	170.9		$	168.4		1.5	%
Net cash provided by operating activities excluding MARPA1	$	83.2		$	22.0		278.8	%
Free cash flow, a non-GAAP measure1	$	67.8		$	9.1		647.4	%
Days sales outstanding (DSO)2		47			51

(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, 2023 and 2022 exclude the impact of the Company's Master Accounts Receivable Purchase Agreement (MARPA), which was 6 days and 8 days, respectively.

Revenues in the second quarter of fiscal year 2024 increased 11.2 percent year-over-year, essentially all organic growth. The increase in income from operations was driven by higher revenues and gross profit. Growth in diluted earnings per share and adjusted diluted earnings per share was driven by higher income from operations, lower tax provision, and share repurchases, partially offset by higher interest expense. The increase in cash from operations, excluding MARPA was driven primarily by higher cash tax payments in the year-ago quarter, including a $47 million payment related to Section 174 of the Tax Cuts and Jobs Act of 2017.

Second Quarter Contract Awards

Contract awards in the second quarter totaled $2.2 billion, with approximately 55 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:

• CACI was selected for Global Enterprise Network Modernization (GENMOD), a five-year, single-award task order worth up to $526 million to provide network modernization and sustainment technology to the U.S. Army. CACI will deliver vertical integration to create a robust, reliable, and high-speed network modernizing the Army’s enterprise IT infrastructure and facilities across the Pacific and Southwest Asia.
• CACI won a single-award, five-year task order worth up to $382 million to provide technology to the U.S. Army Combat Capabilities Development Command (DEVCOM) Engineering and Systems Integration Directorate (ESID) Trojan Engineering and Systems Integration (ESI) Advancement of Trojan Systems (EATS). CACI will provide advanced software and full life cycle support for the Trojan family of systems across the Army military intelligence enterprise at all echelons.
• CACI was awarded a $239 million task order to provide technology, including commercial solution for classified (CSfC), to modernize a Department of Defense network.
• CACI was awarded a five-year task order valued at up to $64 million to provide complete life cycle hardware and systems engineering for the U.S. Air Force Distributed Common Ground System (DCGS). CACI’s proven mobile technologies deliver scalable, customizable mobile command, control, computers, and communications (C4) capabilities. This technology award will support the Air Force Life Cycle Management Center C2ISR Division under the Program Executive Office (PEO) – Digital Directorate.

Total backlog as of December 31, 2023 was $26.9 billion compared with $26.5 billion a year ago, an increase of 2 percent. Funded backlog as of December 31, 2023 was $3.7 billion compared with $3.2 billion a year ago, an increase of 16 percent.

Additional Highlights

• CACI was named to the Forbes 2023 list of America’s Best Employers for Veterans for the fourth consecutive year. As an employer with a workforce of approximately 23,000 employees, of which 38% are veterans, military spouses, or current members of the National Guard and Reserves, CACI strives to create a welcoming environment that allows veterans to thrive and continue their mission. CACI ranked seventh in Aerospace and Defense and 39th overall.
• CACI received the National Veteran Small Business Coalition’s (NVSBC) Champions Award for exceeding the NVSBC-established goals for subcontracting to service-disabled and veteran-owned small businesses (SD/VOSB’s) during the federal government’s fiscal year 2022.
• CACI hired Tanya M. Skeen, former Assistant Secretary of Defense for Acquisition (Acting), as Senior Vice President of Corporate Strategy and Development. In this role, she will be providing guidance and recommendations on investments to further advance CACI’s capabilities aimed at satisfying our customers’ future mission needs.

Fiscal Year 2024 Guidance

The table below summarizes our fiscal year 2024 guidance and represents our views as of January 24, 2024. Our revenue guidance reflects approximately $200 million of higher-than-expected material purchases by our customers, split evenly between the first and second quarters of fiscal year 2024. Our guidance also reflects lower diluted weighted average shares due to the effect of share repurchases.

(in millions, except earnings per share)	Fiscal Year 2024
	Current Guidance		Prior Guidance
Revenues	$7,300 - $7,500		$7,200 - $7,400
Adjusted net income, a non-GAAP measure1	$450 - $465		$440 - $465
Adjusted diluted earnings per share, a non-GAAP measure1	$19.91 - $20.58		$19.38 - $20.48
Diluted weighted average shares	22.6		22.7
Free cash flow, a non-GAAP measure2	at least $420		at least $410

(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)		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. Fiscal year 2024 free cash flow guidance assumes approximately $75 million in tax payments related to Section 174 of the Tax Cuts and Jobs Act of 2017. 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 8:00 AM Eastern Time Thursday, January 25, 2024 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

At CACI International Inc (NYSE: CACI), our 23,000 talented and dynamic employees are ever vigilant in delivering distinctive expertise and differentiated technology to meet our customers’ greatest challenges in national security and government modernization. We are a company of good character, relentless innovation, and long-standing excellence. Our culture drives our success and earns us recognition as a Fortune World's Most Admired Company. CACI is a member of the Fortune 1000 Largest Companies, the Russell 1000 Index, and the S&P MidCap 400 Index. For more information, 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 Consolidated Statements of Operations (Unaudited) (in thousands, except per share data)
	Three Months Ended									Six Months Ended
	12/31/2023			12/31/2022			% Change			12/31/2023			12/31/2022			% Change
Revenues	$	1,833,934		$	1,649,416		11.2	%		$	3,684,081		$	3,255,175		13.2	%
Costs of revenues:
Direct costs		1,255,251			1,094,314		14.7	%			2,528,169			2,150,086		17.6	%
Indirect costs and selling expenses		409,355			388,303		5.4	%			813,988			770,384		5.7	%
Depreciation and amortization		36,023			35,932		0.3	%			71,270			71,035		0.3	%
Total costs of revenues		1,700,629			1,518,549		12.0	%			3,413,427			2,991,505		14.1	%
Income from operations		133,305			130,867		1.9	%			270,654			263,670		2.6	%
Interest expense and other, net		27,519			19,942		38.0	%			53,090			36,135		46.9	%
Income before income taxes		105,786			110,925		-4.6	%			217,564			227,535		-4.4	%
Income taxes		21,916			23,824		-8.0	%			47,647			51,309		-7.1	%
Net income	$	83,870		$	87,101		-3.7	%		$	169,917		$	176,226		-3.6	%
Basic earnings per share	$	3.76		$	3.71		1.3	%		$	7.56		$	7.51		0.7	%
Diluted earnings per share	$	3.74		$	3.68		1.6	%		$	7.50		$	7.44		0.8	%
Weighted average shares used in per share computations:
Weighted-average basic shares outstanding		22,282			23,506		-5.2	%			22,464			23,463		-4.3	%
Weighted-average diluted shares outstanding		22,407			23,676		-5.4	%			22,650			23,677		-4.3	%

CACI International Inc Consolidated Balance Sheets (Unaudited) (in thousands)
	12/31/2023			6/30/2023
ASSETS
Current assets:
Cash and cash equivalents	$	128,851		$	115,776
Accounts receivable, net		947,452			894,946
Prepaid expenses and other current assets		227,501			199,315
Total current assets		1,303,804			1,210,037
Goodwill		4,106,113			4,084,705
Intangible assets, net		474,964			507,835
Property, plant and equipment, net		190,199			199,519
Operating lease right-of-use assets		309,084			312,989
Supplemental retirement savings plan assets		97,559			96,739
Accounts receivable, long-term		12,409			11,857
Other long-term assets		164,310			177,127
Total assets	$	6,658,442		$	6,600,808
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt	$	61,250		$	45,938
Accounts payable		298,544			198,177
Accrued compensation and benefits		248,187			372,354
Other accrued expenses and current liabilities		378,145			377,502
Total current liabilities		986,126			993,971
Long-term debt, net of current portion		1,713,413			1,650,443
Supplemental retirement savings plan obligations, net of current portion		112,514			104,912
Deferred income taxes		55,293			120,545
Operating lease liabilities, noncurrent		323,919			329,432
Other long-term liabilities		231,553			177,171
Total liabilities		3,422,818			3,376,474
Total shareholders' equity		3,235,624			3,224,334
Total liabilities and shareholders' equity	$	6,658,442		$	6,600,808

CACI International Inc Consolidated Statements of Cash Flows (Unaudited) (in thousands)
	Six Months Ended
	12/31/2023				12/31/2022
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	169,917			$	176,226
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		71,270				71,035
Amortization of deferred financing costs		1,095				1,126
Non-cash lease expense		33,835				34,909
Stock-based compensation expense		22,949				20,196
Deferred income taxes		(25,770	)			(48,320	)
Changes in operating assets and liabilities, net of effect of business acquisitions:
Accounts receivable, net		(50,642	)			55,518
Prepaid expenses and other assets		(28,703	)			(30,322	)
Accounts payable and other accrued expenses		90,769				28,157
Accrued compensation and benefits		(124,640	)			(59,917	)
Income taxes payable and receivable		2,879				(5,110	)
Operating lease liabilities		(38,206	)			(40,050	)
Long-term liabilities		17,099				3,642
Net cash provided by operating activities		141,852				207,090
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures		(29,410	)			(25,670	)
Acquisitions of businesses, net of cash acquired		(10,869	)			—
Other		1,974				—
Net cash used in investing activities		(38,305	)			(25,670	)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowings under bank credit facilities		1,531,500				1,101,500
Principal payments made under bank credit facilities		(1,454,313	)			(1,269,813	)
Proceeds from employee stock purchase plans		5,848				5,288
Repurchases of common stock		(155,765	)			(5,286	)
Payment of taxes for equity transactions		(18,061	)			(13,269	)
Net cash used in financing activities		(90,791	)			(181,580	)
Effect of exchange rate changes on cash and cash equivalents		319				94
Net change in cash and cash equivalents		13,075				(66	)
Cash and cash equivalents, beginning of period		115,776				114,804
Cash and cash equivalents, end of period	$	128,851			$	114,738

Revenues by Customer Group (Unaudited)
	Three Months Ended
(in thousands)	12/31/2023						12/31/2022						$ Change				% Change
Department of Defense	$	1,358,509		74.0	%		$	1,160,060		70.4	%		$	198,449			17.1	%
Federal Civilian agencies		389,942		21.3	%			399,768		24.2	%			(9,826	)		-2.5	%
Commercial and other		85,483		4.7	%			89,588		5.4	%			(4,105	)		-4.6	%
Total	$	1,833,934		100.0	%		$	1,649,416		100.0	%		$	184,518			11.2	%
	Six Months Ended
(in thousands)	12/31/2023						12/31/2022						$ Change				% Change
Department of Defense	$	2,710,815		73.6	%		$	2,255,380		69.3	%		$	455,435			20.2	%
Federal Civilian agencies		797,286		21.6	%			823,855		25.3	%			(26,569	)		-3.2	%
Commercial and other		175,980		4.8	%			175,940		5.4	%			40			—	%
Total	$	3,684,081		100.0	%		$	3,255,175		100.0	%		$	428,906			13.2	%

Revenues by Contract Type (Unaudited)
	Three Months Ended
(in thousands)	12/31/2023						12/31/2022						$ Change			% Change
Cost-plus-fee	$	1,102,474		60.1	%		$	953,344		57.8	%		$	149,130		15.6	%
Fixed-price		519,544		28.3	%			509,356		30.9	%			10,188		2.0	%
Time-and-materials		211,916		11.6	%			186,716		11.3	%			25,200		13.5	%
Total	$	1,833,934		100.0	%		$	1,649,416		100.0	%		$	184,518		11.2	%
	Six Months Ended
(in thousands)	12/31/2023						12/31/2022						$ Change			% Change
Cost-plus-fee	$	2,236,909		60.7	%		$	1,888,090		58.1	%		$	348,819		18.5	%
Fixed-price		1,021,621		27.7	%			991,129		30.4	%			30,492		3.1	%
Time-and-materials		425,551		11.6	%			375,956		11.5	%			49,595		13.2	%
Total	$	3,684,081		100.0	%		$	3,255,175		100.0	%		$	428,906		13.2	%

Revenues by Prime or Subcontractor (Unaudited)
	Three Months Ended
(in thousands)	12/31/2023						12/31/2022						$ Change			% Change
Prime contractor	$	1,636,377		89.2	%		$	1,460,839		88.6	%		$	175,538		12.0	%
Subcontractor		197,557		10.8	%			188,577		11.4	%			8,980		4.8	%
Total	$	1,833,934		100.0	%		$	1,649,416		100.0	%		$	184,518		11.2	%
	Six Months Ended
(in thousands)	12/31/2023						12/31/2022						$ Change			% Change
Prime contractor	$	3,285,739		89.2	%		$	2,911,149		89.4	%		$	374,590		12.9	%
Subcontractor		398,342		10.8	%			344,026		10.6	%			54,316		15.8	%
Total	$	3,684,081		100.0	%		$	3,255,175		100.0	%		$	428,906		13.2	%

Revenues by Expertise or Technology (Unaudited)
	Three Months Ended
(in thousands)	12/31/2023						12/31/2022						$ Change			% Change
Expertise	$	849,541		46.3	%		$	741,620		45.0	%		$	107,921		14.6	%
Technology		984,393		53.7	%			907,796		55.0	%			76,597		8.4	%
Total	$	1,833,934		100.0	%		$	1,649,416		100.0	%		$	184,518		11.2	%
	Six Months Ended
(in thousands)	12/31/2023						12/31/2022						$ Change			% Change
Expertise	$	1,727,635		46.9	%		$	1,475,823		45.3	%		$	251,812		17.1	%
Technology		1,956,446		53.1	%			1,779,352		54.7	%			177,094		10.0	%
Total	$	3,684,081		100.0	%		$	3,255,175		100.0	%		$	428,906		13.2	%

Contract Awards (Unaudited)
	Three Months Ended
(in thousands)	12/31/2023			12/31/2022			$ Change				% Change
Contract Awards	$	2,199,671		$	3,488,834		$	(1,289,163	)		-37.0	%
	Six Months Ended
(in thousands)	12/31/2023			12/31/2022			$ Change				% Change
Contract Awards	$	5,268,914		$	6,734,457		$	(1,465,543	)		-21.8	%

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 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
		12/31/2023				12/31/2022				% Change				12/31/2023				12/31/2022				% Change
	Net income, as reported	$	83,870			$	87,101				-3.7	%		$	169,917			$	176,226			-3.6	%
	Intangible amortization expense		18,426				19,109				-3.6	%			36,792				38,223			-3.7	%
	Tax effect of intangible amortization1		(4,699	)			(4,949	)			-5.1	%			(9,383	)			(9,899	)		-5.2	%
	Adjusted net income	$	97,597			$	101,261				-3.6	%		$	197,326			$	204,550			-3.5	%
		Three Months Ended												Six Months Ended
		12/31/2023				12/31/2022				% Change				12/31/2023				12/31/2022				% Change
	Diluted EPS, as reported	$	3.74			$	3.68				1.6	%		$	7.50			$	7.44			0.8	%
	Intangible amortization expense		0.82				0.81				1.2	%			1.62				1.61			0.6	%
	Tax effect of intangible amortization1		(0.20	)			(0.21	)			-4.8	%			(0.41	)			(0.41	)		—	%
	Adjusted diluted EPS	$	4.36			$	4.28				1.9	%		$	8.71			$	8.64			0.8	%
		FY24 Guidance Range
	(in millions, except per share data)	Low End								High End
	Net income, as reported	$	396				---			$	411
	Intangible amortization expense		73				---				73
	Tax effect of intangible amortization1		(19	)			---				(19	)
	Adjusted net income	$	450				---			$	465
		FY24 Guidance Range
		Low End								High End
	Diluted EPS, as reported	$	17.52				---			$	18.19
	Intangible amortization expense		3.23				---				3.23
	Tax effect of intangible amortization1		(0.84	)			---				(0.84	)
	Adjusted diluted EPS	$	19.91				---			$	20.58

(1)		Calculation uses an assumed full year statutory tax rate of 25.5% and 25.9% on non-GAAP tax deductible adjustments for December 31, 2023 and 2022, respectively.
Note: Numbers may not sum due to rounding.

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

The Company views EBITDA and 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. EBITDA is a commonly used non-GAAP measure when comparing our results with those of other companies. We define EBITDA as GAAP net income plus net interest expense, income taxes, and depreciation and amortization expense (including depreciation within direct costs). We consider 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, which we do not believe are indicative of our operating performance. EBITDA margin is 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)	12/31/2023				12/31/2022				% Change			12/31/2023				12/31/2022				% Change
	Net income	$	83,870			$	87,101			-3.7	%		$	169,917			$	176,226			-3.6	%
	Plus:
	Income taxes		21,916				23,824			-8.0	%			47,647				51,309			-7.1	%
	Interest income and expense, net		27,519				19,942			38.0	%			53,090				36,135			46.9	%
	Depreciation and amortization expense, including amounts within direct costs		37,612				37,582			0.1	%			74,501				74,813			-0.4	%
	EBITDA	$	170,917			$	168,449			1.5	%		$	345,155			$	338,483			2.0	%
		Three Months Ended											Six Months Ended
	(in thousands)	12/31/2023				12/31/2022				% Change			12/31/2023				12/31/2022				% Change
	Revenues, as reported	$	1,833,934			$	1,649,416			11.2	%		$	3,684,081			$	3,255,175			13.2	%
	EBITDA		170,917				168,449			1.5	%			345,155				338,483			2.0	%
	EBITDA margin		9.3	%			10.2	%						9.4	%			10.4	%

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 $250.0 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 these measures allow 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)	12/31/2023				12/31/2022				12/31/2023				12/31/2022
	Net cash provided by operating activities	$	71,764			$	62,247			$	141,852			$	207,090
	Cash used in (provided by) MARPA		11,478				(40,273	)			34,645				(42,177	)
	Net cash provided by operating activities excluding MARPA		83,242				21,974				176,497				164,913
	Capital expenditures		(15,419	)			(12,899	)			(29,410	)			(25,670	)
	Free cash flow	$	67,823			$	9,075			$	147,087			$	139,243
		FY24 Guidance
	(in millions)	Current				Prior
	Net cash provided by operating activities	$	510			$	500
	Cash used in (provided by) MARPA		—				—
	Net cash provided by operating activities excluding MARPA		510				500
	Capital expenditures		(90	)			(90	)
	Free cash flow	$	420			$	410

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240124200482/en/

Corporate Communications and Media:

Lorraine Corcoran, Executive Vice President, Corporate Communications

(703) 434-4165, lorraine.corcoran@caci.com

Investor Relations:

George Price, Senior Vice President, Investor Relations

(703) 841-7818, george.price@caci.com

Source: CACI International Inc

FAQ

What are CACI International Inc's (NYSE: CACI) second-quarter fiscal year 2024 revenues?

CACI International Inc reported second-quarter fiscal year 2024 revenues of $1.8 billion, representing an 11.2% year-over-year increase.

What was the net income for CACI International Inc in the second quarter of fiscal year 2024?

The net income for CACI International Inc in the second quarter of fiscal year 2024 was $83.9 million.

What was the diluted EPS for CACI International Inc in the second quarter of fiscal year 2024?

The diluted EPS for CACI International Inc in the second quarter of fiscal year 2024 was $3.74.

What was the book-to-bill ratio for CACI International Inc in the second quarter of fiscal year 2024?

The book-to-bill ratio for CACI International Inc in the second quarter of fiscal year 2024 was 1.2x.

What was the total contract awards for CACI International Inc in the second quarter of fiscal year 2024?

CACI International Inc received total contract awards of $2.2 billion in the second quarter of fiscal year 2024.

What is CACI International Inc's guidance for fiscal year 2024 revenue?

CACI International Inc's guidance for fiscal year 2024 revenue is in the range of $7,300 to $7,500 million.

What is the percentage increase in revenue for CACI International Inc from the second quarter of fiscal year 2023 to the second quarter of fiscal year 2024?

CACI International Inc's revenue increased by 11.2% year-over-year from the second quarter of fiscal year 2023 to the second quarter of fiscal year 2024.