CACI Issues Guidance for Its Fiscal Year 2016
June 24 2015 - 3:05PM
Business Wire
- Organic revenue and higher net
income growth projected
- Revenue projected to be $3.3 billion
to $3.5 billion
- Net income projected to be $130
million to $140 million
- Diluted EPS projected to be $5.24 to
$5.65
- FY 2015 guidance reiterated
CACI International Inc (NYSE MKT: CACI), a leading information
solutions and services provider to the federal government, issued
its guidance for its Fiscal Year 2016 (FY16), which begins July 1,
2015, and reiterated its Fiscal Year 2015 (FY15) guidance.
Commentary
Ken Asbury, CACI’s President and CEO said, “Our FY16 plan
reflects the results we have achieved in realigning our
organization, executing our strategy, creating an effective cost
structure, and transforming our business development process. The
plan incorporates the record amount of new business awards we
received in FY15, and is tempered by the experience we gained as we
adapted to market uncertainty, delays in awards, and protests of
new business. Our focus on delivering larger, higher-end solutions
will drive organic revenue and net income growth for FY16 and the
long term.
“We are confident in our strategy and demonstrated ability to
win and retain business. CACI’s operational excellence, expanding
capabilities, and innovative solutions position us for continued
growth in a highly competitive market. We remain focused on our
customers’ current and emerging requirements and on delivering
long-term value for our shareholders.”
Guidance for Fiscal Year 2016
The table below summarizes our FY16 guidance ranges and
represents our views as of June 24, 2015:
(In millions except for tax rate and
earnings per share)
Fiscal Year 2016Guidance
Revenue $3,300 - $3,500 Net income attributable to
CACI $130 - $140 Effective corporate tax rate
38.5% Diluted earnings per share $5.24 - $5.65
Diluted weighted average shares 24.8
Following are the key factors related to our FY16 guidance:
- We expect that our direct labor costs
will be between 10 and 12 percent greater than what we expect in
FY15.
- Other direct costs will be 8 to 10
percent less than what we expect in FY15, with greater declines in
the first half of FY16.
- We anticipate that our indirect costs
and selling expenses, driven by fringe benefits on direct labor,
will be 4 to 5 percent higher than what we expect in FY15.
Excluding the direct labor fringe benefit increase, indirect costs
and selling expenses are expected to be about flat.
- Depreciation and amortization is
expected to be approximately $58 million.
- Our operating margin is expected be
slightly greater than 7.5 percent.
- Net interest expense is expected to be
approximately $38 million.
- We expect that operating cash flow will
be greater than $200 million.
- We expect capital expenditures will
total approximately $15 to $20 million.
- We anticipate that first half revenue
will be slightly lower than the first half of FY15 with net income
in the first quarter lower than the year earlier period; however,
we expect revenue to grow and favorable earnings comparisons in the
succeeding quarters of FY16 as we perform on new business awarded
in both FY15 and FY16.
FY15 Guidance Reiterated
We are reiterating the FY15 guidance we issued on April 29,
2015. The table below summarizes our FY15 guidance and represents
our views as of June 24, 2015:
(In millions except for tax rate and
earnings per share)
FY 2015Guidance
Revenue $3,300 - $3,350 Net income attributable to
CACI $125 - $130 Effective corporate tax rate
37.6% Diluted earnings per share $5.12 - $5.33
Diluted weighted average shares 24.4
Conference Call Information
We have scheduled a conference call for 8:30 AM Eastern Time
Thursday, June 25, 2015, during which members of our senior
management will be making a brief presentation followed by a
question-and-answer session to discuss the guidance and
management’s performance expectations for the new fiscal year. You
can listen to the conference call and view accompanying exhibits
over the Internet by logging on to CACI’s website at www.caci.com
at the scheduled time. You may also dial in to 1-877-303-9143,
confirmation code 42188597. Slides of the presentation will be
available on our website during the call. A replay of the call will
also be available over the Internet, and can be accessed through
CACI’s website (www.caci.com).
CACI provides information solutions and services in support of
national security missions and government transformation for
Intelligence, Defense, and Federal Civilian customers. A Fortune
magazine World’s Most Admired Company in the IT Services industry,
CACI is a member of the Fortune 1000 Largest Companies, the Russell
2000 Index, and the S&P SmallCap 600 Index. CACI provides
dynamic careers for over 16,700 employees in 120 offices worldwide.
Visit 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 globally; terrorist activities
or war; changes in interest rates; currency fluctuations;
significant fluctuations in the equity markets; changes in our
effective tax rate; failure to achieve contract awards in
connection with re-competes 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, implementation of
spending cuts (sequestration) under the Budget Control Act of 2011
and the Bipartisan Budget Act of 2013; changes in budgetary
priorities or in the event of a priority need for funds, such as
homeland security; government contract procurement (such as bid
protest, small business set asides, loss of work due to
organizational conflicts of interest, etc.) and termination risks;
the results of government audits and reviews conducted by the
Defense Contract Audit Agency, the Defense Contract Management
Agency, or other governmental entities with cognizant oversight;
individual business decisions of our clients; paradigm shifts in
technology; competitive factors such as pricing pressures and/or
competition to hire and retain employees (particularly those with
security clearances); market speculation regarding our continued
independence; material changes in laws or regulations applicable to
our businesses, particularly in connection with (i) government
contracts for services, (ii) outsourcing of activities that have
been performed by the government, and (iii) competition for task
orders under Government Wide Acquisition Contracts (GWACs) and/or
schedule contracts with the General Services Administration; the
ability to successfully integrate the operations of our recent and
any future acquisitions; our own ability to achieve the objectives
of near term or long range business plans; and other risks
described in our Securities and Exchange Commission filings.
CACI-Financial
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CACI International IncCorporate Communications and Media:Jody
Brown, Executive Vice President, Public
Relations703-841-7801jbrown@caci.comorInvestor Relations:David
Dragics, Senior Vice President, Investor
Relations866-606-3471ddragics@caci.com
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