Arlington, VA, August 13, 2008 - CACI International Inc (NYSE:CAI), a leading professional services and information technology solutions provider to the federal government, announced results today for its fourth fiscal quarter and twelve months ended June 30, 2008. CACI provides innovative solutions to meet America’s needs in national defense, intelligence, homeland security, and the improvement of government services, and is a leading strategic consolidator in its market space.
Fourth Quarter Results
For the fourth quarter of Fiscal Year 2008 (FY08), we reported record revenue of $655.0 million, up 25.9 percent over fourth quarter of Fiscal Year 2007 (FY07) revenue of $520.4 million. The increase during the quarter was driven by organic growth of 12.3 percent and acquired revenue. Operating income for the quarter was a record $46.4 million, up 22.4 percent, compared with operating income of $37.9 million in the year earlier quarter. The operating margin was 7.1 percent compared with 7.3 percent in the fourth quarter of FY07. Income before taxes for the quarter was $39.8 million, 17.8 percent higher than what was reported in the fourth quarter of FY07. Our tax rate increased to 40.8 percent from 38.4 percent in the year earlier quarter. Net income for the fourth quarter was $23.5 million, 13.1 percent higher than the $20.8 million reported in the fourth quarter of FY07. Diluted earnings per share were a record $0.77, a 13.7 percent increase over the $0.67 reported in the year earlier quarter. Operating cash flow in the quarter increased to $81.5 million from $47.3 million in the year earlier quarter. Days sales outstanding at the end of the quarter were 60 compared with 66 at the end of the fourth quarter of FY07. Earnings before interest, taxes, depreciation and amortization (EBITDA), a non-GAAP measure, were a record $58.5 million in the quarter, an increase of 22.6 percent over EBITDA of $47.7 million in the fourth quarter of FY07. The EBITDA margin, a non-GAAP measure, was 8.9 percent compared with 9.2 percent in the year earlier quarter.
Fourth Quarter Highlights
Major highlights and accomplishments during the fourth quarter of FY08 include:
Full Year FY08 Results
For all of FY08, we reported record revenue of $2.42 billion, up 24.9 percent over FY07 revenue of $1.94 billion. Organic revenue growth for the year was 13.8 percent compared with 1.2 percent in FY07. Operating income in FY08 was a record $162.8 million, up 11.6 percent over $145.9 million reported in FY07. The operating margin was 6.7 percent for FY08 compared with 7.5 percent for FY07. The effective tax rate for FY08 was 39.5 percent versus 37.3 percent for FY07. Net income for FY08 was $83.3 million, 6.1 percent higher than net income of $78.5 million for FY07. Diluted earnings per share were $2.72, an 8.4 percent increase over the $2.51 reported a year earlier. Operating cash flow for FY08 was $160.1 million compared with $168.0 million for FY07. EBITDA was a record $210.3 million for FY08, an increase of 13.7 percent over the previous record EBITDA of $184.9 million realized for FY07. The EBITDA margin for FY08 was 8.7 percent compared to 9.5 percent for FY07.
Major highlights and accomplishments during FY08 include:
Commenting on the company's financial results, Paul Cofoni, CACI's President and CEO, said, "Our solid, fourth quarter growth of net income and record diluted earnings per share and record revenue resulted in the strong second half performance which we promised at the beginning of our FY08. We are very pleased with our double-digit growth of net income and EPS in the second half of FY08. We had another year of strong operating cash flow. Our acquisitions delivered bottom line results that exceeded our expectations and contributed to our earnings per share. They also significantly increased our presence with key customers in the Intelligence Community. We continue to evaluate acquisition opportunities that will be accretive to our bottom line and leverage our capabilities with both existing and new customers. Between acquisitions and organic growth, we added approximately 1,600 people, raising our total employee population to nearly 12,000 highly qualified individuals at fiscal year end. Over 4,200 of these people hold a Top Secret or higher clearance, an increase of 29 percent from a year ago. They significantly increase our capability to support the Intelligence Community and the Defense Department. All these solid performance results contribute to positive momentum for Fiscal Year 2009 and beyond, and give us great confidence in meeting our long-term financial goals of consistently achieving at least eight to ten percent organic revenue growth and growth of net income by at least 15 percent, while continuously pursuing opportunities to improve our profit margin."
Mr. Cofoni continued: "We believe our nation's highest priority is the long-term challenge of asymmetric global terrorism. Our goal is to place CACI at the center of our clients' efforts to meet this challenge, with valuable solutions and cleared, dedicated personnel to help our clients enhance U.S. and global security. Our focus is congruent with the new 2008 National Defense Strategy and the views of both presidential candidates. This convergence of thinking from both defense and political leaders validates our growth strategy.
"I am extremely proud to lead a strong management team and all our CACI employees who are dedicated to being the best in providing quality service to our entire customer base. In Fiscal 2009, we will continue to strengthen our offerings for the Intelligence Community, Defense Department, and federal agencies with high-priority funding and a long-term demand for our services. We will leverage and continually enhance our core competencies in such areas as intelligence and security services, and cyber security. We enter fiscal 2009 with confidence and momentum, making continued progress toward our long-term financial goals, enhancing client capabilities, and building shareholder value."
Share Repurchase Authorization
CACI's Board of Directors has approved a share repurchase program for up to $20 million of the Company's common stock. Repurchases may take place from time to time on the open market, which may include the use of 10b5-1 trading plans or through negotiated transactions.
The timing and amount of purchases under the program will be determined by management based upon market conditions and other factors. The program does not require the Company to purchase any specific number or amount of shares. The Company may suspend the program at any time without notice.
CACI Reaffirms its FY09 Guidance
We are reaffirming our Fiscal Year 2009 (FY09) guidance which we issued on June 26, 2008. The table below summarizes the guidance ranges for FY09:
Forecasted revenue and diluted EPS do not include any amounts from future acquisitions.
This guidance represents our views as of August 13, 2008. Investors are reminded that actual results may differ from these estimates for the reasons described below 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 Thursday, August 14th, 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 1-877-440-5804 and enter the confirmation code 6395461. A replay of the call will also be available over the Internet beginning at 1:00 PM Eastern Time Thursday, August 14th, and can be accessed through our homepage (www.caci.com) by clicking on the CACI Investor Info button.
CACI International Inc provides the professional services and IT solutions needed to prevail in today's 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 integration 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. We add value to our clients' operations, increase their skills and capabilities, and enhance their missions. CACI is a member of the Fortune 1000 Largest Companies of 2007 and the Russell 2000 index. CACI provides dynamic careers for approximately 12,100 employees working in over 120 offices in the U.S. and Europe. CACI is the IT provider for a networked world. Visit CACI on the web at www.caci.com.
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 terrorist activities or war; changes in interest rates; currency fluctuations; 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; government contract procurement (such as bid protest, small business set asides, 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; 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); 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, (iii) competition for task orders under Government Wide Acquisition Contracts ("GWACs") and/or schedule contracts with the General Services Administration; and (iv) accounting for convertible debt instruments; 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.
Capability Maturity Model and CMMI are registered trademarks of Carnegie Mellon University.
(Financial tables follow)
Reconciliation of Total Revenue Growth and Organic Revenue Growth
We are presenting organic revenue growth to reflect the effect of acquisitions on total revenue growth. Revenue generated from the date a business is acquired through the first anniversary of that date is considered acquired revenue growth. All remaining revenue growth is considered organic. We believe that this non-GAAP financial measure provides investors with useful information to evaluate the growth rate of our core business. This non-GAAP measure should not be considered in isolation or as a substitute for performance measures prepared in accordance with GAAP.
Reconciliation of Net Income and Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA)
EBITDA, a measure used by management to evaluate operating performance, is defined by us as GAAP net income plus net interest expense, income taxes, and depreciation and amortization, as shown on our Condensed Consolidated Statements of Operations. We believe that this non-GAAP measure is a valuable indicator of our operating performance. EBITDA is a commonly used non-GAAP measure when comparing our results with those of other companies, but EBITDA as defined by us may not be computed in the same manner as similarly titled measures used by other companies. The EBITDA margin is EBITDA divided by revenue. These non-GAAP measures should not be considered in isolation or as a substitute for performance measures prepared in accordance with GAAP.
# # #
|Corporate Communications and Media:
Jody Brown, Executive Vice President, Public Relations
(703) 841-7801, firstname.lastname@example.org
David Dragics, Senior Vice President, Investor Relations
(866) 606-3471, email@example.com