SAIC Announces Second Quarter of Fiscal Year 2024 Results
- Revenues of $1.78 billion
- Adjusted EBITDA margin of 9.8%
- None.
-
Revenues of
;$1.78 billion 8.3% organic growth adjusted for impact of divestitures
-
Net income of
; Adjusted EBITDA(1) of$247 million or$174 million 9.8% as a % of revenues, an increase of 70 bps year-over-year
-
Diluted earnings per share of
; Adjusted diluted earnings per share(1) of$4.56 $2.05
-
Cash flows provided by operating activities of
; Transaction-adjusted free cash flow(1) of$150 million $143 million
- Company increases revenue, adjusted EBITDA margin(1), and adjusted diluted EPS(1) guidance for fiscal year 2024
“I am proud of the financial performance we delivered in the quarter with both strong organic revenue growth and margin expansion. We remain on track to achieve our three year financial targets and are off to a strong start,” said SAIC CEO Nazzic Keene. "Our focus remains on building and sustaining our high-performance culture to deliver value for our employees, customers, and shareholders."
Second Quarter of Fiscal Year 2024: Summary Operating Results
|
Three Months Ended |
|||||||||
|
August 4,
|
|
Percent change |
|
July 29,
|
|||||
|
(in millions, except per share amounts) |
|||||||||
Revenues |
$ |
1,784 |
|
|
(3 |
)% |
|
$ |
1,831 |
|
Operating income |
|
362 |
|
|
190 |
% |
|
|
125 |
|
Operating income as a percentage of revenues |
|
20.3 |
% |
|
1,350 bps |
|
|
6.8 |
% |
|
Adjusted operating income(1) |
|
134 |
|
|
7 |
% |
|
|
125 |
|
Adjusted operating income as a percentage of revenues |
|
7.5 |
% |
|
70 bps |
|
|
6.8 |
% |
|
Net income |
|
247 |
|
|
234 |
% |
|
|
74 |
|
EBITDA(1) |
|
402 |
|
|
142 |
% |
|
|
166 |
|
EBITDA as a percentage of revenues |
|
22.5 |
% |
|
1,340 bps |
|
|
9.1 |
% |
|
Adjusted EBITDA(1) |
|
174 |
|
|
5 |
% |
|
|
166 |
|
Adjusted EBITDA as a percentage of revenues |
|
9.8 |
% |
|
70 bps |
|
|
9.1 |
% |
|
Diluted earnings per share |
$ |
4.56 |
|
|
251 |
% |
|
$ |
1.30 |
|
Adjusted diluted earnings per share(1) |
$ |
2.05 |
|
|
17 |
% |
|
$ |
1.75 |
|
Net cash provided by operating activities |
$ |
150 |
|
|
6 |
% |
|
$ |
141 |
|
Free cash flow(1) |
$ |
144 |
|
|
95 |
% |
|
$ |
74 |
|
Transaction-adjusted free cash flow(1) |
$ |
143 |
|
|
93 |
% |
|
$ |
74 |
|
(1)Non-GAAP measure, see Schedule 5 for information about this measure. |
Second Quarter Summary Results
Revenues for the quarter decreased
Operating income as a percentage of revenues increased from the comparable prior year period primarily due to the gain recognized from the sale of the Supply Chain Business, improved profitability across our contract portfolio, and lower indirect costs.
Adjusted EBITDA(1) as a percentage of revenues for the quarter increased to
Diluted earnings per share for the quarter was
Cash Generation and Capital Deployment
Cash flows provided by operating activities for the second quarter increased
During the quarter, SAIC deployed
Sale of Logistics and Supply Chain Management Business
On May 6, 2023, SAIC closed the sale of its logistics and supply chain management business to ASRC Federal Holding Company, LLC for
Quarterly Dividend Declared
On September 6, 2023, the Company's Board of Directors declared a cash dividend of
(1)Non-GAAP measure, see Schedule 5 for information about this measure. |
Backlog and Contract Awards
Net bookings for the quarter were approximately
Notable New Business Awards:
Notable Recompete Awards:
Naval Air Warfare Center Weapons Division: SAIC was awarded a multiple-award IDIQ contract with a
Notable Space and Intelligence Community Awards:
SAIC was awarded the following contracts subsequent to the end of the quarter which are not included in the current quarter net bookings and book-to-bill:
Fiscal Year 2024 Guidance
The table below summarizes fiscal year 2024 guidance and represents the Company's views as of September 7, 2023.
|
CURRENT |
PRIOR |
|
Fiscal Year |
Fiscal Year |
|
2024 Guidance |
2024 Guidance |
Revenue |
|
|
Adjusted EBITDA Margin(1) |
|
|
Adjusted Diluted EPS(1) |
|
|
Transaction-Adjusted Free Cash Flow(1) |
|
|
Webcast Information
SAIC management will discuss operations and financial results in an earnings conference call beginning at 10:00 a.m. Eastern time on September 7, 2023. The conference call will be webcast simultaneously to the public through a link on the Investor Relations section of the SAIC website (http://investors.saic.com). We will be providing webcast access only – “dial-in” access is no longer available. Additionally, a supplemental presentation will be available to the public through links to the Investor Relations section of the SAIC website. After the call concludes, an on-demand audio replay of the webcast can be accessed on the Investor Relations website.
About SAIC
SAIC® is a premier Fortune 500® technology integrator driving our nation’s technology transformation. Our robust portfolio of offerings across the defense, space, civilian and intelligence markets includes secure high-end solutions in engineering, digital, artificial intelligence and mission solutions. Using our expertise and understanding of existing and emerging technologies, we integrate the best components from our own portfolio and our partner ecosystem to deliver innovative, effective and efficient solutions that are critical to achieving our customers' missions.
We are approximately 24,000 strong; driven by mission, united by purpose, and inspired by opportunities. SAIC is an Equal Opportunity Employer, fostering a culture of diversity, equity and inclusion, which is core to our values and important to attract and retain exceptional talent. Headquartered in
GAAP to Non-GAAP Guidance Reconciliation
The Company does not provide a reconciliation of forward-looking adjusted diluted EPS to GAAP diluted EPS or adjusted EBITDA margin 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 net income may vary significantly based on actual events, the Company is not able to forecast GAAP diluted EPS or GAAP net income with reasonable certainty. The variability of the above charges may have an unpredictable and potentially significant impact on our future GAAP financial results.
(1)Non-GAAP measure, see Schedule 5 for information about this measure. |
(2)Current transaction-adjusted free cash flow guidance excludes expected cash tax and other payments of approximately |
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 may include, among others, estimates of future revenues, operating income, earnings, earnings per share, charges, total contract value, backlog, outstanding shares and cash flows, as well as statements about future dividends, share repurchases and other capital deployment plans. Such statements are not guarantees of future performance and involve risk, uncertainties and assumptions, and actual results may differ materially from the guidance and other forward-looking statements made in this release as a result of various factors. Risks, uncertainties and assumptions that could cause or contribute to these material differences include those discussed in the “Risk Factors,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Legal Proceedings” sections of our Annual Report on Form 10-K, as updated in any subsequent Quarterly Reports on Form 10-Q and other filings with the SEC, which may be viewed or obtained through the Investor Relations section of our website at www.saic.com or on the SEC’s website at www.sec.gov. Due to such risks, uncertainties and assumptions you are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof. SAIC expressly disclaims any duty to update any forward-looking statement provided in this release to reflect subsequent events, actual results or changes in SAIC’s expectations. SAIC also disclaims any duty to comment upon or correct information that may be contained in reports published by investment analysts or others.
Schedule 1:
SCIENCE APPLICATIONS INTERNATIONAL CORPORATION CONDENSED AND CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
|
|||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
August 4,
|
|
July 29,
|
|
August 4,
|
|
July 29,
|
||||||||
|
(in millions, except per share amounts) |
||||||||||||||
Revenues |
$ |
1,784 |
|
|
$ |
1,831 |
|
|
$ |
3,812 |
|
|
$ |
3,827 |
|
Cost of revenues |
|
1,568 |
|
|
|
1,612 |
|
|
|
3,361 |
|
|
|
3,382 |
|
Selling, general and administrative expenses |
|
88 |
|
|
|
93 |
|
|
|
172 |
|
|
|
185 |
|
Acquisition and integration costs |
|
1 |
|
|
|
1 |
|
|
|
1 |
|
|
|
10 |
|
Other operating income |
|
(235 |
) |
|
|
— |
|
|
|
(241 |
) |
|
|
— |
|
Operating income |
|
362 |
|
|
|
125 |
|
|
|
519 |
|
|
|
250 |
|
Interest expense |
|
33 |
|
|
|
30 |
|
|
|
66 |
|
|
|
57 |
|
Other (income) expense, net |
|
(6 |
) |
|
|
— |
|
|
|
(5 |
) |
|
|
3 |
|
Income before income taxes |
|
335 |
|
|
|
95 |
|
|
|
458 |
|
|
|
190 |
|
Provision for income taxes |
|
(88 |
) |
|
|
(21 |
) |
|
|
(113 |
) |
|
|
(42 |
) |
Net income |
$ |
247 |
|
|
$ |
74 |
|
|
$ |
345 |
|
|
$ |
148 |
|
Net income attributable to non-controlling interest |
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
2 |
|
Net income attributable to common stockholders |
$ |
247 |
|
|
$ |
73 |
|
|
$ |
345 |
|
|
$ |
146 |
|
Weighted-average number of shares outstanding: |
|
|
|
|
|
|
|
||||||||
Basic |
|
53.5 |
|
|
|
55.6 |
|
|
|
53.9 |
|
|
|
55.9 |
|
Diluted |
|
53.9 |
|
|
|
55.9 |
|
|
|
54.3 |
|
|
|
56.3 |
|
Earnings per share: |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
4.60 |
|
|
$ |
1.31 |
|
|
$ |
6.40 |
|
|
$ |
2.61 |
|
Diluted |
$ |
4.56 |
|
|
$ |
1.30 |
|
|
$ |
6.35 |
|
|
$ |
2.59 |
|
Schedule 2:
SCIENCE APPLICATIONS INTERNATIONAL CORPORATION CONDENSED AND CONSOLIDATED BALANCE SHEETS (Unaudited)
|
|||||||
|
August 4,
|
|
February 3,
|
||||
|
(in millions) |
||||||
ASSETS |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
352 |
|
$ |
109 |
||
Receivables, net |
|
958 |
|
|
|
936 |
|
Inventory, prepaid expenses and other current assets |
|
74 |
|
|
|
152 |
|
Total current assets |
|
1,384 |
|
|
|
1,197 |
|
Goodwill |
|
2,851 |
|
|
|
2,911 |
|
Intangible assets, net |
|
951 |
|
|
|
1,009 |
|
Property, plant, and equipment, net |
|
90 |
|
|
|
92 |
|
Operating lease right of use assets |
|
140 |
|
|
|
158 |
|
Other assets |
|
256 |
|
|
|
176 |
|
Total assets |
$ |
5,672 |
|
|
$ |
5,543 |
|
LIABILITIES AND EQUITY |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable and accrued liabilities |
$ |
820 |
|
|
$ |
767 |
|
Accrued payroll and employee benefits |
|
330 |
|
|
|
328 |
|
Long-term debt, current portion |
|
62 |
|
|
|
31 |
|
Total current liabilities |
|
1,212 |
|
|
|
1,126 |
|
Long-term debt, net of current portion |
|
2,215 |
|
|
|
2,343 |
|
Operating lease liabilities |
|
138 |
|
|
|
152 |
|
Other long-term liabilities |
|
264 |
|
|
|
218 |
|
Equity: |
|
|
|
||||
Total common stockholders' equity |
|
1,843 |
|
|
|
1,694 |
|
Non-controlling interest |
|
— |
|
|
|
10 |
|
Total stockholders' equity |
|
1,843 |
|
|
|
1,704 |
|
Total liabilities and stockholders' equity |
$ |
5,672 |
|
|
$ |
5,543 |
|
Schedule 3:
SCIENCE APPLICATIONS INTERNATIONAL CORPORATION CONDENSED AND CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
|
|||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
August 4,
|
|
July 29,
|
|
August 4,
|
|
July 29,
|
||||||||
|
(in millions) |
||||||||||||||
Cash flows from operating activities: |
|
|
|
|
|
|
|
||||||||
Net income |
$ |
247 |
|
|
$ |
74 |
|
|
$ |
345 |
|
|
$ |
148 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
|
||||||||
Depreciation and amortization |
|
36 |
|
|
|
40 |
|
|
|
72 |
|
|
|
81 |
|
Amortization of off-market customer contracts |
|
(2 |
) |
|
|
(4 |
) |
|
|
(4 |
) |
|
|
(6 |
) |
Amortization of debt issuance costs |
|
3 |
|
|
|
4 |
|
|
|
4 |
|
|
|
6 |
|
Deferred income taxes |
|
(19 |
) |
|
|
(24 |
) |
|
|
(25 |
) |
|
|
(22 |
) |
Stock-based compensation expense |
|
15 |
|
|
|
12 |
|
|
|
27 |
|
|
|
23 |
|
Gain on sale of long-lived assets |
|
(3 |
) |
|
|
— |
|
|
|
(3 |
) |
|
|
— |
|
Gain on divestitures |
|
(240 |
) |
|
|
— |
|
|
|
(247 |
) |
|
|
— |
|
Increase (decrease) resulting from changes in operating assets and liabilities, net of the effect of divestitures: |
|
|
|
|
|
|
|
||||||||
Receivables |
|
37 |
|
|
|
68 |
|
|
|
(90 |
) |
|
|
(21 |
) |
Inventory, prepaid expenses and other current assets |
|
4 |
|
|
|
(4 |
) |
|
|
8 |
|
|
|
7 |
|
Other assets |
|
(7 |
) |
|
|
2 |
|
|
|
(3 |
) |
|
|
5 |
|
Accounts payable and accrued liabilities |
|
(54 |
) |
|
|
(11 |
) |
|
|
52 |
|
|
|
29 |
|
Accrued payroll and employee benefits |
|
52 |
|
|
|
(58 |
) |
|
|
9 |
|
|
|
(27 |
) |
Income taxes payable |
|
67 |
|
|
|
37 |
|
|
|
74 |
|
|
|
36 |
|
Operating lease assets and liabilities, net |
|
1 |
|
|
|
4 |
|
|
|
(2 |
) |
|
|
— |
|
Other long-term liabilities |
|
13 |
|
|
|
1 |
|
|
|
15 |
|
|
|
— |
|
Net cash provided by operating activities |
|
150 |
|
|
|
141 |
|
|
|
232 |
|
|
|
259 |
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
||||||||
Expenditures for property, plant, and equipment |
|
(6 |
) |
|
|
(7 |
) |
|
|
(12 |
) |
|
|
(12 |
) |
Purchases of marketable securities |
|
(2 |
) |
|
|
(2 |
) |
|
|
(5 |
) |
|
|
(4 |
) |
Sales of marketable securities |
|
3 |
|
|
|
1 |
|
|
|
4 |
|
|
|
2 |
|
Proceeds from sale of long-lived assets |
|
3 |
|
|
|
— |
|
|
|
3 |
|
|
|
— |
|
Proceeds from divestitures |
|
— |
|
|
|
— |
|
|
|
355 |
|
|
|
— |
|
Cash divested upon deconsolidation of joint venture |
|
— |
|
|
|
— |
|
|
|
(8 |
) |
|
|
— |
|
Other |
|
— |
|
|
|
(3 |
) |
|
|
(3 |
) |
|
|
(3 |
) |
Net cash (used in) provided by investing activities |
|
(2 |
) |
|
|
(11 |
) |
|
|
334 |
|
|
|
(17 |
) |
Cash flows from financing activities: |
|
|
|
|
|
|
|
||||||||
Dividend payments to stockholders |
|
(20 |
) |
|
|
(20 |
) |
|
|
(41 |
) |
|
|
(42 |
) |
Principal payments on borrowings |
|
(100 |
) |
|
|
(516 |
) |
|
|
(260 |
) |
|
|
(575 |
) |
Issuances of stock |
|
4 |
|
|
|
4 |
|
|
|
8 |
|
|
|
8 |
|
Stock repurchased and retired or withheld for taxes on equity awards |
|
(102 |
) |
|
|
(64 |
) |
|
|
(190 |
) |
|
|
(148 |
) |
Proceeds from borrowings |
|
— |
|
|
|
515 |
|
|
|
160 |
|
|
|
515 |
|
Debt issuance costs |
|
— |
|
|
|
(5 |
) |
|
|
— |
|
|
|
(5 |
) |
Distributions to non-controlling interest |
|
— |
|
|
|
(1 |
) |
|
|
— |
|
|
|
(2 |
) |
Net cash used in financing activities |
|
(218 |
) |
|
|
(87 |
) |
|
|
(323 |
) |
|
|
(249 |
) |
Net (decrease) increase in cash, cash equivalents and restricted cash |
|
(70 |
) |
|
|
43 |
|
|
|
243 |
|
|
|
(7 |
) |
Cash, cash equivalents and restricted cash at beginning of period |
|
431 |
|
|
|
65 |
|
|
|
118 |
|
|
|
115 |
|
Cash, cash equivalents and restricted cash at end of period |
$ |
361 |
|
|
$ |
108 |
|
|
$ |
361 |
|
|
$ |
108 |
|
Schedule 4:
SCIENCE APPLICATIONS INTERNATIONAL CORPORATION BACKLOG (Unaudited)
The estimated value of our total backlog as of the dates presented was:
|
|||||||||||
|
August 4,
|
|
May 5,
|
|
February 3,
|
||||||
|
(in millions) |
||||||||||
Funded backlog |
$ |
3,716 |
|
$ |
3,899 |
|
$ |
3,554 |
|||
Negotiated unfunded backlog |
|
18,808 |
|
|
$ |
19,895 |
|
|
|
20,248 |
|
Total backlog |
$ |
22,524 |
|
|
$ |
23,794 |
|
|
$ |
23,802 |
|
Backlog represents the estimated amount of future revenues to be recognized under negotiated contracts and task orders as work is performed and excludes contract awards which have been protested by competitors until the protest is resolved in our favor. SAIC segregates backlog into two categories, funded backlog and negotiated unfunded backlog. Funded backlog for contracts with government agencies primarily represents contracts for which funding is appropriated less revenues previously recognized on these contracts, and does not include the unfunded portion of contracts where funding is incrementally appropriated or authorized by the |
Schedule 5:
SCIENCE APPLICATIONS INTERNATIONAL CORPORATION NON-GAAP FINANCIAL MEASURES (Unaudited)
This schedule describes the non-GAAP financial measures included in this earnings release. While we believe that these non-GAAP financial measures may be useful in evaluating our financial information, they should be considered as supplemental in nature and not as a substitute for financial information prepared in accordance with GAAP. Reconciliations, definitions, and how we believe these measures are useful to management and investors are provided below. Other companies may define similar measures differently.
EBITDA, Adjusted EBITDA and Adjusted Operating Income
|
|||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
August 4,
|
|
July 29,
|
|
August 4,
|
|
July 29,
|
||||||||
|
(in millions) |
||||||||||||||
Net income |
$ |
247 |
|
|
$ |
74 |
|
|
$ |
345 |
|
|
$ |
148 |
|
Interest expense and loss on sale of receivables |
|
35 |
|
|
|
31 |
|
|
|
71 |
|
|
|
59 |
|
Interest income |
|
(4 |
) |
|
|
— |
|
|
|
(5 |
) |
|
|
— |
|
Provision for income taxes |
|
88 |
|
|
|
21 |
|
|
|
113 |
|
|
|
42 |
|
Depreciation and amortization |
|
36 |
|
|
|
40 |
|
|
|
72 |
|
|
|
81 |
|
EBITDA(1) |
|
402 |
|
|
|
166 |
|
|
|
596 |
|
|
|
330 |
|
EBITDA as a percentage of revenues |
|
22.5 |
% |
|
|
9.1 |
% |
|
|
15.6 |
% |
|
|
8.6 |
% |
Acquisition and integration costs |
|
1 |
|
|
|
1 |
|
|
|
1 |
|
|
|
10 |
|
Restructuring and impairment costs |
|
5 |
|
|
|
2 |
|
|
|
6 |
|
|
|
2 |
|
Recovery of acquisition and integration costs and restructuring costs |
|
— |
|
|
|
(3 |
) |
|
|
— |
|
|
|
(3 |
) |
Gain on divestitures, net of transaction costs |
|
(234 |
) |
|
|
— |
|
|
|
(240 |
) |
|
|
— |
|
Adjusted EBITDA(1) |
$ |
174 |
|
|
$ |
166 |
|
|
$ |
363 |
|
|
$ |
339 |
|
Adjusted EBITDA as a percentage of revenues |
|
9.8 |
% |
|
|
9.1 |
% |
|
|
9.5 |
% |
|
|
8.9 |
% |
Operating income |
$ |
362 |
|
|
$ |
125 |
|
|
$ |
519 |
|
|
$ |
250 |
|
Operating income as a percentage of revenues |
|
20.3 |
% |
|
|
6.8 |
% |
|
|
13.6 |
% |
|
|
6.5 |
% |
Acquisition and integration costs |
|
1 |
|
|
|
1 |
|
|
|
1 |
|
|
|
10 |
|
Restructuring and impairment costs |
|
5 |
|
|
|
2 |
|
|
|
6 |
|
|
|
2 |
|
Recovery of acquisition and integration costs and restructuring costs |
|
— |
|
|
|
(3 |
) |
|
|
— |
|
|
|
(3 |
) |
Gain on divestitures, net of transaction costs |
|
(234 |
) |
|
|
— |
|
|
|
(240 |
) |
|
|
— |
|
Adjusted operating income(1) |
$ |
134 |
|
|
$ |
125 |
|
|
$ |
286 |
|
|
$ |
259 |
|
Adjusted operating income as a percentage of revenues |
|
7.5 |
% |
|
|
6.8 |
% |
|
|
7.5 |
% |
|
|
6.8 |
% |
EBITDA is a performance measure that is calculated by taking net income and excluding interest and loss on sale of receivables, provision for income taxes, and depreciation and amortization. Adjusted EBITDA and adjusted operating income are performance measures that exclude the impact of non-recurring transactions that we do not consider to be indicative of our ongoing operating performance. The acquisition and integration costs relate to the Company's acquisitions. The gain on divestitures includes gains associated with the deconsolidation of FSA and the sale of the logistics and supply chain management business, net of transaction costs. We believe that these performance measures provide management and investors with useful information in assessing trends in our ongoing operating performance and may provide greater visibility in understanding the long-term financial performance of the Company. |
(1)Non-GAAP measure, see above for definition. |
Schedule 5 (continued):
SCIENCE APPLICATIONS INTERNATIONAL CORPORATION NON-GAAP FINANCIAL MEASURES (Unaudited)
Adjusted Diluted Earnings Per Share
|
|||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
August 4,
|
|
July 29,
|
|
August 4,
|
|
July 29,
|
||||||||
Diluted earnings per share |
$ |
4.56 |
|
|
$ |
1.30 |
|
|
$ |
6.35 |
|
|
$ |
2.59 |
|
|
|
|
|
|
|
|
|
||||||||
Acquisition and integration costs and restructuring and impairment costs, divided by diluted 'weighted-average number of shares outstanding' (WASO) |
|
0.11 |
|
|
|
— |
|
|
|
0.13 |
|
|
|
0.16 |
|
Tax effect of acquisition and integration costs and restructuring and impairment costs, divided by diluted WASO |
|
(0.02 |
) |
|
|
— |
|
|
|
(0.03 |
) |
|
|
(0.03 |
) |
Net effect of acquisition and integration costs and restructuring and impairment costs, divided by diluted WASO |
|
0.09 |
|
|
|
— |
|
|
|
0.10 |
|
|
|
0.13 |
|
|
|
|
|
|
|
|
|
||||||||
Amortization of intangible assets, divided by diluted WASO |
|
0.54 |
|
|
|
0.57 |
|
|
|
1.07 |
|
|
|
1.15 |
|
Tax effect of amortization of intangible assets, divided by diluted WASO |
|
(0.09 |
) |
|
|
(0.12 |
) |
|
|
(0.21 |
) |
|
|
(0.25 |
) |
Net effect of amortization of intangible assets, divided by diluted WASO |
|
0.45 |
|
|
|
0.45 |
|
|
|
0.86 |
|
|
|
0.90 |
|
|
|
|
|
|
|
|
|
||||||||
Gain on divestitures, net of transaction costs, divided by diluted WASO |
|
(4.34 |
) |
|
|
— |
|
|
|
(4.42 |
) |
|
|
— |
|
Tax effect of gain on divestitures, net of transaction costs, divided by diluted WASO |
|
1.29 |
|
|
|
— |
|
|
|
1.30 |
|
|
|
— |
|
Net effect of gain on divestitures, net of transaction costs, divided by diluted WASO |
|
(3.05 |
) |
|
|
— |
|
|
|
(3.12 |
) |
|
|
— |
|
|
|
|
|
|
|
|
|
||||||||
Adjusted diluted earnings per share(1) |
$ |
2.05 |
|
|
$ |
1.75 |
|
|
$ |
4.19 |
|
|
$ |
3.62 |
|
Adjusted diluted earnings per share is a performance measure that excludes the impact of non-recurring transactions that we do not consider to be indicative of our ongoing operating performance. The acquisition and integration costs relate to the Company's acquisitions. The gain on divestitures includes gains associated with the deconsolidation of FSA and the sale of the logistics and supply chain management business, net of transaction costs. Adjusted diluted earnings per share also excludes amortization of intangible assets because we do not have a history of significant acquisition activity, we do not acquire businesses on a predictable cycle, and the amount of an acquisition's purchase price allocated to intangible assets and the related amortization term are unique to each acquisition. We believe that this performance measure provides management and investors with useful information in assessing trends in our ongoing operating performance and may provide greater visibility in understanding the long-term financial performance of the Company. |
(1)Non-GAAP measure, see above for definition. |
Schedule 5 (continued):
SCIENCE APPLICATIONS INTERNATIONAL CORPORATION NON-GAAP FINANCIAL MEASURES (Unaudited)
Free Cash Flow and Transaction-Adjusted Free Cash Flow
|
|||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
August 4,
|
|
July 29,
|
|
August 4,
|
|
July 29,
|
||||||||
|
(in millions) |
||||||||||||||
Net cash provided by operating activities |
$ |
150 |
|
|
$ |
141 |
|
|
$ |
232 |
|
|
$ |
259 |
|
Expenditures for property, plant, and equipment |
|
(6 |
) |
|
|
(7 |
) |
|
|
(12 |
) |
|
|
(12 |
) |
Cash used (provided) by MARPA Facility |
|
— |
|
|
|
(60 |
) |
|
|
— |
|
|
|
(60 |
) |
Free cash flow(1) |
$ |
144 |
|
|
$ |
74 |
|
|
$ |
220 |
|
|
$ |
187 |
|
L&SCM divestiture transaction fees |
|
7 |
|
|
|
— |
|
|
|
7 |
|
|
|
— |
|
L&SCM divestiture cash taxes |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
L&SCM divestiture transition services |
|
(8 |
) |
|
|
— |
|
|
|
(8 |
) |
|
|
— |
|
Transaction-adjusted free cash flow(1) |
$ |
143 |
|
|
$ |
74 |
|
|
$ |
219 |
|
|
$ |
187 |
|
|
|
FY24 Guidance |
|
|
(in millions) |
Net cash provided by operating activities |
|
|
Expenditures for property, plant, and equipment |
|
Approximately |
Free cash flow(1) |
|
|
L&SCM divestiture transaction fees |
|
Approximately |
L&SCM divestiture cash taxes |
|
Approximately |
Transaction-adjusted free cash flow(1) |
|
|
Free cash flow is calculated by taking cash flows provided by operating activities less expenditures for property, plant, and equipment and less cash flows from our Master Accounts Receivable Purchasing Agreement (MARPA Facility) for the sale of certain designated eligible |
(1)Non-GAAP measure, see above for definition. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20230907012873/en/
Investor Relations:
Joe DeNardi
+1.703.488.8528
joseph.w.denardi@saic.com
Media:
Thais Hanson
+1.703.676.8215
publicrelations@saic.com
Source: Science Applications International Corp.