Revenue growth projected to be 4.5 percent
with 3 percent organic
Net income projected to be $230 million to
$240 million
Operating cash flow projected to be greater
than $320 million
FY 2018 net income guidance raised
CACI International Inc (NYSE: CACI), a leading information
solutions and services provider to the federal government, issued
its guidance for its Fiscal Year 2019 (FY19) which begins July 1,
2018, and raised its Fiscal Year 2018 (FY18) net income
guidance.
Commentary
Ken Asbury, CACI’s President and CEO said, “Our FY19 guidance
builds on the revenue and profitability growth we delivered in
FY18. We are winning solutions business; our addressable market is
growing; and the budget environment has improved. I am confident
this plan will produce predictable, profitable growth and continue
generating long-term shareholder value. Lastly, I am very happy to
raise net income guidance as we near the end of a very successful
Fiscal Year 2018.”
Guidance for Fiscal Year 2019
The table below summarizes our FY19 guidance ranges and
represents our views as of June 20, 2018:
(In millions except for tax rate and
earnings per share)
Fiscal Year 2019
Guidance
Revenue $4,550 - $4,750 Net income attributable to CACI
$230 - $240 Effective corporate tax rate 24.9%
Diluted earnings per share $8.98 - $9.38 Diluted weighted
average shares 25.6
Following are the key factors related to our FY19 guidance:
- We expect indirect costs and selling
expenses will be approximately flat to slightly below FY18.
- Depreciation and amortization is
expected to be approximately $76 million.
- Net interest expense is expected to be
approximately $40 million.
- We expect that operating cash flow will
be greater than $320 million.
- We expect that capital expenditures
will total approximately $40-$45 million, driven by investment in
our Shared Services Center and facility consolidations.
FY18 Guidance Revised
We are revising the FY18 guidance we issued on May 2, 2018. As a
result of the continued strong operating performance on a number of
programs throughout our operations, particularly on our fixed price
contracts, we are raising our net income and diluted earnings per
share guidance. The table below summarizes our FY18 guidance and
represents our views as of June 20, 2018:
Current Fiscal Year Previous Fiscal
Year (In millions except for tax rate and earnings per share)
2018 Guidance 2018 Guidance Revenue
$4,400 - $4,500 $4,400 - $4,500 Net income
$292 - $297 $285 - $291 Effective corporate tax rate
-0.8%
-3.4%
Diluted earnings per share $11.54 - $11.74 $11.26 -
$11.50 Diluted weighted average shares 25.3
25.3
Investors are reminded that as a result of the Tax Cut and Jobs
Act (“Tax Reform”) enacted in December 2017, our net income in the
second quarter of FY18 benefited from a $94.8 million reduction in
our net deferred tax liability partially offset by a tax expense of
$9.7 million associated with cumulative foreign earnings. In
addition, we estimate that FY18 net income would have been
approximately $18 million higher if Tax Reform had been enacted for
the full year. Adjusting for these items in our revised guidance
results in a non-GAAP FY18 net income range of $225 million to $230
million and non-GAAP diluted earnings per share range of $8.87 to
$9.07. (See Reconciliation of Estimated FY18 Net Income to
Estimated non-GAAP Net Income excluding the impact of tax reform on
page 4).
Conference Call Information
We have scheduled a conference call for 8:30 AM Eastern Time
Thursday, June 21, 2018, 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 webcast and view the accompanying exhibits over
the Internet by logging on to
http://investor.caci.com/news/#upcomingevent at the scheduled time.
A replay of the call will also be available over the Internet and
can be accessed through our homepage (www.caci.com) by clicking on
the CACI Investor Relations tab.
CACI provides information solutions and services in support of
national security missions and government transformation for
Intelligence, Defense, and Federal Civilian customers. A Fortune
World’s Most Admired Company, CACI is a member of the Fortune 1000
Largest Companies, the Russell 2000 Index, and the S&P
SmallCap600 Index. CACI’s sustained commitment to ethics and
integrity defines its corporate culture and drives its success.
With approximately 18,600 employees worldwide, CACI provides
dynamic career opportunities for military veterans and industry
professionals to support the nation’s most critical missions. Join
us! 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: legal, regulatory, and political change
as a result of transitioning to a new presidential administration
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; 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, or any legislation that amends or changes
discretionary spending levels under that act; 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
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 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-Earnings Release
Reconciliation of Estimated FY18 Net Income
Excluding the Impact of Tax Reform(Unaudited)
The Company views Estimated FY18 Net Income excluding the impact
of Tax Reform, a non-GAAP measure, as an important indicator of
performance, consistent with the manner in which management
measures and forecasts the Company’s performance. Estimated FY18
Net Income excluding the impact of Tax Reform is defined as
Estimated GAAP Net Income adjusted to exclude the impact of Tax
Reform. We believe this is an important calculation to show company
performance without the benefits of Tax Reform. Management is
incented to perform via metrics without the impact of Tax Reform.
This non-GAAP measure should not be considered in isolation or as a
substitute for performance measures prepared in accordance with
GAAP.
EstimatedNet Income
EstimatedDiluted EPS
(Amounts in millions except per share amounts) Estimated net income
$292 - $297 $11.54 - $11.74
Estimated benefit if tax reform had
been
enacted for the full year
$18 $0.71
Estimated net income before remeasurement
and
transition tax reform adjustments
$310 - $315 $12.25 - $12.45
Remeasurement of deferred tax
liabilities,
as reported
($95) ($3.76)
Transition tax on foreign earnings, as
reported
$10 $0.38 Estimated net income, excluding tax reform $225 - $230
$8.87 - $9.07
View source
version on businesswire.com: https://www.businesswire.com/news/home/20180620006157/en/
CACI International IncJody Brown, Executive Vice President,
Public Relations703-841-7801jbrown@caci.comorDavid Dragics, Senior
Vice President, Investor Relations866-606-3471ddragics@caci.com
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