Leidos Holdings, Inc. Reports First Quarter Fiscal Year 2021 Results
Leidos Holdings, Inc. (NYSE: LDOS) reported Q1 2021 revenues of $3.32 billion, a 14.7% increase from Q1 2020. Organic growth was 8.9% after accounting for acquisitions. Operating income rose by 60.4% to $308 million, with an operating margin increase from 6.6%% to 9.3%%. Diluted EPS surged to $1.42 from $0.80. Notable new contracts included a $1 billion award for military counseling services. The company revised fiscal 2021 guidance, projecting revenues unchanged at $13.7 billion to $14.1 billion and raised non-GAAP EPS guidance to $6.35 to $6.65.
- Q1 revenues increased by 14.7% to $3.32 billion.
- Organic revenue growth of 8.9%, totaling $258 million.
- Operating income up by 60.4% to $308 million.
- Diluted EPS rose to $1.42 from $0.80.
- Revised fiscal 2021 guidance includes adjusted EBITDA margin of 10.5% to 10.7%.
- Net cash from operating activities decreased to $239 million from $372 million.
RESTON, Va., May 4, 2021 /PRNewswire/ -- Leidos Holdings, Inc. (NYSE: LDOS), a FORTUNE 500® science and technology leader, today reported financial results for the first quarter of fiscal year 2021.
Roger Krone, Leidos Chairman and Chief Executive Officer, commented: "First quarter results reflect the perseverance, focus and tremendous execution of our employees and business partners. New quarterly record levels of revenue, non-GAAP EPS and backlog were achieved, and significant organic growth was delivered across all business segments. This early momentum favorably positions Leidos to deliver on our full year financial commitments."
Summary Results
Revenues for the quarter were
Operating income for the quarter was
Diluted earnings per share ("EPS") attributable to Leidos common stockholders for the quarter was
Defense Solutions
Defense Solutions revenues for the quarter of
Defense Solutions operating income margin for the quarter was
Civil
Civil revenues for the quarter of
Civil operating income margin for the quarter was
Health
Health revenues for the quarter of
Health operating income margin for the quarter was
Cash Flow Summary
Net cash provided by operating activities for the quarter was
Net cash used in investing activities for the quarter was
Net cash used in financing activities for the quarter was
As of April 2, 2021, we had
New Business Awards
Net bookings totaled
Notable recent awards received include:
- Military and Family Life Counseling Support Services: The Company was awarded a new prime contract to provide non-medical counseling to military service members and their families through the Military and Family Life Counseling (MFLC) program. Under the contract, Leidos will provide face-to-face non-medical counseling, consultation and outreach services at approximately 100 U.S. military installations or nearby civilian communities. Leidos will also provide management and logistical support for counselors to provide services in accordance with established performance measures. The award has a total estimated value of approximately
$1 billion and includes a 12-month base period with four 12-month options and two 12-month award term incentive periods. - U.S. Customs and Border Protection Multi-Energy Portal Systems Support: The Company was awarded a prime contract by U.S. Customs and Border Protection (CBP) to provide Multi-Energy Portal (MEP) systems for non-intrusive inspection of commercial vehicles at land and sea ports of entry. Under the contract, Leidos will integrate, deploy and train CBP staff to use its VACIS® MEP with low-energy backscatter and high-energy transmission cargo inspection system. The multiple-award indefinite delivery/indefinite quantity contract has a total value of
$480 million and includes a five-year base period of performance and options up to 10 years, if exercised. - Naval Array Technical Support Center Services: The Company was awarded a prime contract by the Naval Undersea Warfare Center - Newport Division to provide engineering, technical and management services for the Naval Array Technical Support Center. Under the contract, Leidos will perform tasks for the U.S. Navy's Sensors and SONAR Systems Department. Leidos will be responsible for production engineering, technical and logistics support of the Navy and foreign governments' towed array assets. The single-award, indefinite delivery/indefinite quantity, cost-plus-fixed-fee and firm-fixed-price contract has a total estimated value of
$149.2 million . - U.S. Intelligence Community: The Company was awarded contracts valued at
$822 million , if all options are exercised, by U.S. national security and intelligence clients. Though the specific nature of these contracts is classified, they all encompass mission-critical services that help to counter global threats and strengthen national security.
Backlog at the end of the quarter was
Forward Guidance
As a result of the Company's year-to-date performance and updated expectations, the Company is revising its fiscal year 2021 guidance as follows:
- Revenues of
$13.7 billion to$14.1 billion , remained unchanged from previous guidance; - Adjusted EBITDA margins of
10.5% to10.7% , up from10.3% to10.5% ; - Non-GAAP diluted EPS of
$6.35 to$6.65 , up from$6.15 to$6.45 ; and - Cash flows provided by operating activities at or above
$875 million , up from previous guidance of$850 million .
Non-GAAP diluted EPS excludes amortization of acquired intangible assets, acquisition, integration and restructuring costs and other tax adjustments. For additional information regarding non-GAAP diluted EPS and Leidos' other non-GAAP financial measures, see the related explanations and reconciliations to GAAP measures included elsewhere in this release.
The Company does not provide a reconciliation of forward-looking adjusted EBITDA margins (non-GAAP) or non-GAAP diluted EPS to GAAP net income, due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation. Because certain deductions for non-GAAP exclusions used to calculate projected net income may vary significantly based on actual events, the Company is not able to forecast on a GAAP basis with reasonable certainty all deductions needed in order to provide a GAAP calculation of projected net income at this time. The amounts of these deductions may be material and, therefore, could result in projected GAAP net income and diluted EPS being materially less than projected adjusted EBITDA margins (non-GAAP) and non-GAAP diluted EPS.
Conference Call Information
Leidos management will discuss operations and financial results in an earnings conference call beginning at 8:00 A.M. eastern time on May 4, 2021. Analysts and institutional investors may participate by dialing +1 (877) 869-3847 (toll-free U.S.) or +1 (201) 689-8261 (international callers).
A live audio broadcast of the conference call along with a supplemental presentation will be available to the public through links on the Leidos Investor Relations website (http://ir.leidos.com).
After the call concludes, an audio replay can be accessed on the Leidos Investor Relations website or by dialing +1 (877) 660-6853 (toll-free U.S.) or +1 (201) 612-7415 (international callers) and entering conference ID 13718327.
About Leidos
Leidos is a Fortune 500® information technology, engineering, and science solutions and services leader working to solve the world's toughest challenges in the defense, intelligence, civil and health markets. The Company's 39,000 employees support vital missions for government and commercial customers. Headquartered in Reston, Va., Leidos reported annual revenues of approximately
For more information, visit www.leidos.com.
Forward-Looking Statements
Certain statements in this release contain or are based on "forward-looking" information within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by words such as "expects," "intends," "plans," "anticipates," "believes," "estimates," "guidance" and similar words or phrases. Forward-looking statements in this release include, among others, estimates of future revenues, adjusted EBITDA margins, diluted EPS (including on a non-GAAP basis) and cash flows provided by operating activities, as well as statements about our business contingency plans, the impact of COVID-19 and related actions taken to prevent its spread and contract awards. These statements reflect our belief and assumptions as to future events that may not prove to be accurate.
Actual performance and results may differ materially from those results anticipated by our guidance and other forward-looking statements made in this release depending on a variety of factors, including but not limited to: the impact of COVID-19 or future epidemics on our business, including the potential for facility closures, re-evaluation of U.S. government spending levels and priorities, delay of new contract awards, our ability to recover costs under contracts and insurance challenges; developments in the U.S. government defense and non-defense budgets, including budget reductions, sequestration, implementation of spending limits or changes in budgetary priorities, or delays in the U.S. government budget process or approval of raising the debt ceiling; delays in the U.S. government contract procurement process or the award of contracts and delays or loss of contracts as a result of competitor protests; changes in U.S. government procurement rules, regulations and practices; our compliance with various U.S. government and other government procurement rules and regulations; governmental reviews, audits and investigations of our Company; our ability to effectively compete and win contracts with the U.S. government and other customers; our reliance on information technology spending by hospitals/healthcare organizations; our reliance on infrastructure investments by industrial and natural resources organizations; energy efficiency and alternative energy sourcing investments; investments by U.S. government and commercial organizations in environmental impact and remediation projects; our ability to attract, train and retain skilled employees, including our management team, and to obtain security clearances for our employees; our ability to accurately estimate costs associated with our firm-fixed-price contracts and other contracts; resolution of legal and other disputes with our customers and others or legal or regulatory compliance issues; cybersecurity, data security or other security threats, systems failures or other disruptions of our business; our compliance with international, federal, state and local laws and regulations regarding privacy, data security, protection, storage, retention, transfer and disposal, technology protection and personal information; the damage and disruption to our business resulting from natural disasters; our ability to effectively acquire businesses and make investments; our ability to maintain relationships with prime contractors, subcontractors and joint venture partners; our ability to manage performance and other risks related to customer contracts; the failure of our inspection or detection systems to detect threats; the adequacy of our insurance programs, customer indemnifications or other liability protections designed to protect us from significant product or other liability claims; our ability to manage risks associated with our international business; exposure to lawsuits and contingencies associated with Lockheed Martin's Information Systems & Global Solutions business; our ability to protect our intellectual property and other proprietary rights by third parties of infringement, misappropriation or other violations; our ability to prevail in litigation brought by third parties of infringement, misappropriation or other violations by us of their intellectual property rights; our ability to declare future dividends based on our earnings, financial condition, capital requirements and other factors, including compliance with applicable law and our agreements; our ability to grow our commercial health and infrastructure businesses, which could be negatively affected by budgetary constraints faced by hospitals and by developers of energy and infrastructure projects; our ability to successfully integrate acquired businesses; and our ability to execute our business plan and long-term management initiatives effectively and to overcome these and other known and unknown risks that we face. These are only some of the factors that may affect the forward-looking statements contained in this release. For further information concerning risks and uncertainties associated with our business, please refer to the filings we make from time to time with the U.S. Securities and Exchange Commission ("SEC"), including the "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Legal Proceedings" sections of our latest Annual Report on Form 10-K and quarterly reports on Form 10-Q, all of which may be viewed or obtained through the Investor Relations section of our website at www.leidos.com.
All information in this release is as of May 4, 2021. The Company expressly disclaims any duty to update the guidance or any other forward-looking statement provided in this release to reflect subsequent events, actual results or changes in the Company's expectations. The Company also disclaims any duty to comment upon or correct information that may be contained in reports published by investment analysts or others.
CONTACTS: | |
Investor Relations: | Media Relations: |
Peter M. Berl | Melissa Lee Dueñas |
571.526.7582 | 571.526.6850 |
LEIDOS HOLDINGS, INC. | ||||||||
Three Months | ||||||||
April 2, | April 3, | |||||||
Revenues | $ | 3,315 | $ | 2,889 | ||||
Cost of revenues | 2,848 | 2,494 | ||||||
Selling, general and administrative expenses | 159 | 197 | ||||||
Acquisition, integration and restructuring costs | 5 | 12 | ||||||
Equity earnings of non-consolidated subsidiaries | (5) | (6) | ||||||
Operating income | 308 | 192 | ||||||
Non-operating expense: | ||||||||
Interest expense, net | (45) | (48) | ||||||
Other expense, net | (1) | (14) | ||||||
Income before income taxes | 262 | 130 | ||||||
Income tax expense | (57) | (15) | ||||||
Net income attributable to Leidos common stockholders | $ | 205 | $ | 115 | ||||
Earnings per share: | ||||||||
Basic | $ | 1.44 | $ | 0.81 | ||||
Diluted | 1.42 | 0.80 | ||||||
Weighted average number of common shares outstanding: | ||||||||
Basic | 142 | 142 | ||||||
Diluted | 144 | 144 | ||||||
Cash dividends declared per share | $ | 0.34 | $ | 0.34 | ||||
LEIDOS HOLDINGS, INC. | ||||||||
April 2, | January 1, | |||||||
Assets: | ||||||||
Cash and cash equivalents | $ | 377 | $ | 524 | ||||
Receivables, net | 2,160 | 2,137 | ||||||
Inventory, net | 268 | 276 | ||||||
Other current assets | 452 | 402 | ||||||
Total current assets | 3,257 | 3,339 | ||||||
Property, plant and equipment, net | 655 | 604 | ||||||
Intangible assets, net | 1,234 | 1,216 | ||||||
Goodwill | 6,456 | 6,313 | ||||||
Operating lease right-of-use assets, net | 584 | 581 | ||||||
Other assets | 452 | 458 | ||||||
Total assets | $ | 12,638 | $ | 12,511 | ||||
Liabilities: | ||||||||
Accounts payable and accrued liabilities | $ | 2,133 | $ | 2,175 | ||||
Accrued payroll and employee benefits | 684 | 632 | ||||||
Long-term debt, current portion | 103 | 100 | ||||||
Total current liabilities | 2,920 | 2,907 | ||||||
Long-term debt, net of current portion | 4,663 | 4,644 | ||||||
Operating lease liabilities | 557 | 564 | ||||||
Deferred tax liabilities | 243 | 234 | ||||||
Other long-term liabilities | 275 | 291 | ||||||
Total liabilities | 8,658 | 8,640 | ||||||
Stockholders' equity: | ||||||||
Common stock, | — | — | ||||||
Additional paid-in capital | 2,486 | 2,580 | ||||||
Retained earnings | 1,484 | 1,328 | ||||||
Accumulated other comprehensive loss | (37) | (46) | ||||||
Total Leidos stockholders' equity | 3,933 | 3,862 | ||||||
Non-controlling interest | 47 | 9 | ||||||
Total stockholders' equity | 3,980 | 3,871 | ||||||
Total liabilities and stockholders' equity | $ | 12,638 | $ | 12,511 | ||||
LEIDOS HOLDINGS, INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) | ||||||||
Three Months | ||||||||
April 2, | April 3, | |||||||
Cash flows from operations: | ||||||||
Net income | $ | 205 | $ | 115 | ||||
Adjustments to reconcile net income to net cash provided by operations: | ||||||||
Depreciation and amortization | 77 | 61 | ||||||
Stock-based compensation | 15 | 15 | ||||||
Deferred income taxes | — | 2 | ||||||
Other | (8) | 28 | ||||||
Change in assets and liabilities, net of effects of acquisitions and dispositions: | ||||||||
Receivables | (10) | 89 | ||||||
Other current assets and other long-term assets | 5 | (43) | ||||||
Accounts payable and accrued liabilities and other long-term liabilities | (148) | 25 | ||||||
Accrued payroll and employee benefits | 50 | 68 | ||||||
Income taxes receivable/payable | 53 | 12 | ||||||
Net cash provided by operating activities | 239 | 372 | ||||||
Cash flows from investing activities: | ||||||||
Acquisition of businesses, net of cash acquired | (218) | (1,642) | ||||||
Payments for property, equipment and software | (26) | (44) | ||||||
Other | — | 1 | ||||||
Net cash used in investing activities | (244) | (1,685) | ||||||
Cash flows from financing activities: | ||||||||
Proceeds from debt issuance | — | 3,175 | ||||||
Payments of long-term debt | (26) | (1,927) | ||||||
Payments for debt issuance costs | — | (12) | ||||||
Dividend payments | (50) | (51) | ||||||
Repurchases of stock and other | (123) | (32) | ||||||
Capital contributions from non-controlling interests | 38 | — | ||||||
Proceeds from issuances of stock | 13 | 8 | ||||||
Net cash (used in) provided by financing activities | (148) | 1,161 | ||||||
Net decrease in cash, cash equivalents and restricted cash | (153) | (152) | ||||||
Cash, cash equivalents and restricted cash at beginning of period | 687 | 717 | ||||||
Cash, cash equivalents and restricted cash at end of period | $ | 534 | $ | 565 | ||||
Less: restricted cash at end of period | 157 | 120 | ||||||
Cash and cash equivalents at end of period | $ | 377 | $ | 445 | ||||
LEIDOS HOLDINGS, INC. | |||||||||||||||
The segment information for the periods presented was as follows: | |||||||||||||||
Three Months Ended | |||||||||||||||
April 2, | April 3, | Dollar | Percent change | ||||||||||||
Revenues: | |||||||||||||||
Defense Solutions | $ | 1,958 | $ | 1,705 | $ | 253 | 14.8 | % | |||||||
Civil | 766 | 654 | 112 | 17.1 | % | ||||||||||
Health | 591 | 530 | 61 | 11.5 | % | ||||||||||
Total | $ | 3,315 | $ | 2,889 | $ | 426 | 14.7 | % | |||||||
Operating income (loss): | |||||||||||||||
Defense Solutions | $ | 152 | $ | 95 | $ | 57 | 60.0 | % | |||||||
Civil | 74 | 59 | 15 | 25.4 | % | ||||||||||
Health | 102 | 73 | 29 | 39.7 | % | ||||||||||
Corporate | (20) | (35) | 15 | (42.9) | % | ||||||||||
Total | $ | 308 | $ | 192 | $ | 116 | 60.4 | % | |||||||
Operating income margin: | |||||||||||||||
Defense Solutions | 7.8 | % | 5.6 | % | |||||||||||
Civil | 9.7 | % | 9.0 | % | |||||||||||
Health | 17.3 | % | 13.8 | % | |||||||||||
Total | 9.3 | % | 6.6 | % | |||||||||||
LEIDOS HOLDINGS, INC. | ||||||||
Backlog represents the estimated amount of future revenues to be recognized under negotiated contracts. Backlog value is based on management's estimates about volume of services, availability of customer funding and other factors, and excludes contracts that are under protest. Our estimate of backlog comprises both funded and negotiated unfunded backlog. Backlog estimates are subject to change and may be affected by several factors including modifications of contracts, non-exercise of options, foreign currency movements, etc. | ||||||||
Funded backlog for contracts with the U.S. government represents the value on contracts for which funding is appropriated less revenues previously recognized on these contracts. Funded backlog for contracts with non-U.S. government entities and commercial customers represents the estimated value on contracts, which may cover multiple future years, under which Leidos is obligated to perform, less revenue previously recognized on the contracts. | ||||||||
Negotiated unfunded backlog represents estimated amounts of revenue to be earned in the future from contracts for which funding has not been appropriated and unexercised priced contract options. Negotiated unfunded backlog does not include unexercised option periods and future potential task orders expected to be awarded under indefinite delivery/indefinite quantity ("IDIQ"), General Services Administration Schedule or other master agreement contract vehicles, with the exception of certain IDIQ contracts where task orders are not competitively awarded or separately priced but instead are used as a funding mechanism, and where there is a basis for estimating future revenues and funding on future anticipated task orders. | ||||||||
The estimated value of backlog as of the dates presented was as follows: | ||||||||
April 2, | January 1, | |||||||
Defense Solutions: | ||||||||
Funded backlog | $ | 4,142 | $ | 3,710 | ||||
Negotiated unfunded backlog | 14,393 | 14,721 | ||||||
Total Defense Solutions backlog | $ | 18,535 | $ | 18,431 | ||||
Civil: | ||||||||
Funded backlog | $ | 1,531 | $ | 1,398 | ||||
Negotiated unfunded backlog | 6,857 | 7,051 | ||||||
Total Civil backlog | $ | 8,388 | $ | 8,449 | ||||
Health: | ||||||||
Funded backlog | $ | 1,310 | $ | 1,486 | ||||
Negotiated unfunded backlog | 4,348 | 3,546 | ||||||
Total Health backlog | $ | 5,658 | $ | 5,032 | ||||
Total: | ||||||||
Funded backlog | $ | 6,983 | $ | 6,594 | ||||
Negotiated unfunded backlog | 25,598 | 25,318 | ||||||
Total backlog | $ | 32,581 | $ | 31,912 | ||||
The change in backlog for the Defense Solutions reportable segment reflects
LEIDOS HOLDINGS, INC.
UNAUDITED NON-GAAP FINANCIAL MEASURES
(in millions, except per share amounts)
The Company uses and refers to non-GAAP operating income, non-GAAP operating margin, adjusted EBITDA, adjusted EBITDA margin and non-GAAP diluted EPS, which are not measures of financial performance under generally accepted accounting principles in the U.S. and, accordingly, these measures should not be considered in isolation or as a substitute for the comparable GAAP measures and should be read in conjunction with the Company's consolidated financial statements prepared in accordance with GAAP.
Management believes that these non-GAAP measures provide another measure of the Company's results of operations and financial condition, including its ability to comply with financial covenants. These non-GAAP measures are frequently used by financial analysts covering Leidos and its peers. The Company's computation of its non-GAAP measures may not be comparable to similarly titled measures reported by other companies, thus limiting their use for comparability.
Non-GAAP operating income is computed by excluding the following items from net income: (i) non-operating expense, net; (ii) income tax expense; and (iii) the following discrete items and the related tax impacts:
- Acquisition, integration and restructuring costs – Represents acquisition, integration, lease termination and severance costs related to the Company's acquisitions.
- Amortization of acquired intangible assets – Represents the amortization of the fair value of the acquired intangible assets.
- Acquisition related financing costs – Represents the amortization of the debt financing commitments in connection with the Company's acquisitions of Dynetics and the SD&A Businesses.
- Loss on debt modification – Represents the write-off of debt discount and debt issuance costs as a result of debt modifications.
Non-GAAP operating margin is computed by dividing non-GAAP operating income by revenue.
Adjusted EBITDA is computed by excluding the following items from income before income taxes: (i) discrete items as identified above; (ii) interest expense; (iii) interest income; (iv) depreciation expense; and (v) amortization of intangibles.
Adjusted EBITDA margin is computed by dividing adjusted EBITDA by revenue.
Non-GAAP diluted EPS is computed by dividing net income, adjusted for the discrete items as identified above and the related tax impacts, by the diluted weighted average number of common shares outstanding.
LEIDOS HOLDINGS, INC. | ||||||||||||||||
The following tables present the reconciliation of the non-GAAP measures identified above to the most directly comparable GAAP measures: | ||||||||||||||||
Three Months Ended April 2, 2021 | ||||||||||||||||
As reported | Acquisition, | Amortization | Non-GAAP | |||||||||||||
Operating income | $ | 308 | $ | 5 | $ | 54 | $ | 367 | ||||||||
Non-operating expense, net | (46) | — | — | (46) | ||||||||||||
Income before income taxes | 262 | 5 | 54 | 321 | ||||||||||||
Income tax expense(1) | (57) | (1) | (14) | (72) | ||||||||||||
Net income attributable to Leidos common stockholders | $ | 205 | $ | 4 | $ | 40 | $ | 249 | ||||||||
Diluted EPS attributable to Leidos common stockholders | $ | 1.42 | $ | 0.03 | $ | 0.28 | $ | 1.73 | ||||||||
Diluted shares | 144 | 144 | 144 | 144 | ||||||||||||
Three Months Ended April 2, 2021 | ||||||||||||||||
As reported | Acquisition, | Amortization of acquired | Non-GAAP | |||||||||||||
Income before income taxes | $ | 262 | $ | 5 | $ | 54 | $ | 321 | ||||||||
Depreciation expense | 22 | — | — | 22 | ||||||||||||
Amortization of intangibles | 55 | — | (54) | 1 | ||||||||||||
Interest expense, net | 45 | — | — | 45 | ||||||||||||
EBITDA | $ | 384 | $ | 5 | $ | — | $ | 389 | ||||||||
EBITDA margin | 11.6 | % | 11.7 | % | ||||||||||||
(1) Calculation uses an estimated statutory tax rate on non-GAAP adjustments. | ||||||||||||||||
LEIDOS HOLDINGS, INC. | |||||||||||||||||||||||||
Three Months Ended April 3, 2020 | |||||||||||||||||||||||||
As reported | Acquisition, | Amortization of | Acquisition | Loss on debt | Non-GAAP | ||||||||||||||||||||
Operating income | $ | 192 | $ | 12 | $ | 42 | $ | — | $ | — | $ | 246 | |||||||||||||
Non-operating expense, | (62) | — | — | 2 | 19 | (41) | |||||||||||||||||||
Income before income | 130 | 12 | 42 | 2 | 19 | 205 | |||||||||||||||||||
Income tax expense(1) | (15) | (3) | (10) | (1) | (5) | (34) | |||||||||||||||||||
Net income attributable | $ | 115 | $ | 9 | $ | 32 | $ | 1 | $ | 14 | $ | 171 | |||||||||||||
Diluted EPS attributable | $ | 0.80 | $ | 0.06 | $ | 0.22 | $ | 0.01 | $ | 0.10 | $ | 1.19 | |||||||||||||
Diluted shares | 144 | 144 | 144 | 144 | 144 | 144 | |||||||||||||||||||
Three Months Ended April 3, 2020 | |||||||||||||||||||||||||
As reported | Acquisition, | Amortization of | Acquisition | Loss on debt | Non-GAAP | ||||||||||||||||||||
Income before income | |||||||||||||||||||||||||
taxes | $ | 130 | $ | 12 | $ | 42 | $ | 2 | $ | 19 | $ | 205 | |||||||||||||
Depreciation expense | 18 | — | — | — | — | 18 | |||||||||||||||||||
Amortization of | 43 | — | (42) | — | — | 1 | |||||||||||||||||||
Interest expense, net | 48 | — | — | (2) | — | 46 | |||||||||||||||||||
EBITDA | $ | 239 | $ | 12 | $ | — | $ | — | $ | 19 | $ | 270 | |||||||||||||
EBITDA margin | 8.3 | % | 9.3 | % | |||||||||||||||||||||
(1) Calculation uses an estimated statutory tax rate on non-GAAP adjustments. | |||||||||||||||||||||||||
LEIDOS HOLDINGS, INC. | |||||||||||||||||||
The following tables present the reconciliation of the non-GAAP operating income by reportable segment and Corporate: | |||||||||||||||||||
Three Months Ended April 2, 2021 | |||||||||||||||||||
Operating | Acquisition, | Amortization of | Non-GAAP | Non-GAAP | |||||||||||||||
Defense Solutions | $ | 152 | $ | — | $ | 28 | $ | 180 | 9.2 | % | |||||||||
Civil | 74 | — | 18 | 92 | 12.0 | % | |||||||||||||
Health | 102 | — | 8 | 110 | 18.6 | % | |||||||||||||
Corporate | (20) | 5 | — | (15) | NM | ||||||||||||||
Total | $ | 308 | $ | 5 | $ | 54 | $ | 367 | 11.1 | % | |||||||||
Three Months Ended April 3, 2020 | |||||||||||||||||||
Operating | Acquisition, | Amortization of | Non-GAAP | Non-GAAP | |||||||||||||||
Defense Solutions | $ | 95 | $ | — | $ | 21 | $ | 116 | 6.8 | % | |||||||||
Civil | 59 | — | 12 | 71 | 10.9 | % | |||||||||||||
Health | 73 | — | 9 | 82 | 15.5 | % | |||||||||||||
Corporate | (35) | 12 | — | (23) | NM | ||||||||||||||
Total | $ | 192 | $ | 12 | $ | 42 | $ | 246 | 8.5 | % | |||||||||
NM - Not Meaningful | |||||||||||||||||||
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SOURCE Leidos
