CACI Reports Record Results for Fiscal 2009 Fourth Quarter and Full Year

Diluted EPS increased 24.5 percent in the quarter, 15.3 percent for the year

Revenue increased 11.3 percent in the quarter, 12.8 percent for the year

Organic revenue increased 10.5 percent in the quarter, 9.9 percent for the year

Contract funding orders increased 20.7 percent in the quarter, 19.8 percent for the year

Arlington, Va., August 12, 2009 – CACI International Inc (NYSE:  CACI), 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, 2009.   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 2009 (FY09), we reported record revenue of $728.9 million, up 11.3 percent over fourth quarter of Fiscal Year 2008 (FY08) revenue of $655.0 million.  The increase in revenue during the quarter was driven by organic growth of 10.5 percent.  Operating income for the quarter was a record $52.6 million, up 13.4 percent, compared with operating income of $46.4 million in the year earlier quarter.  The operating margin was 7.2 percent compared with 7.1 percent in the fourth quarter of FY08.  Our effective tax rate decreased to 38.8 percent from 40.8 percent in the year earlier quarter as a result of gains realized in the fourth quarter of FY09 on assets invested in our deferred compensation plan.  Net income for the fourth quarter was a record $29.0 million, up 23.0 percent compared with $23.5 million for the fourth quarter of FY08.  Diluted earnings per share were a record $0.95, up 24.5 percent, compared with $0.77 per diluted share in the year earlier quarter.  Cash generated by operations was $56.6 million compared with $81.5 million in the year earlier quarter.  Days sales outstanding at the end of the quarter were 59 compared with 60 days at the end of the fourth quarter of FY08.  Diluted cash earnings per share, a non-GAAP measure, were $1.27, up 15.4 percent, compared with diluted cash earnings per share of $1.10 in the fourth quarter of FY08.

Fourth Quarter Contract Funding Orders and Awards

·

Contract funding orders totaled $771.6 million, a 20.7 percent increase over the fourth quarter of FY08.  Funded backlog was $1.6 billion, a 17.6 percent increase over the fourth quarter of FY08. Total backlog at the end of FY09 was $7.8 billion, 11.0 percent higher than the year-end FY08 backlog of $7.0 billion.

·

Contract awards were an estimated value of $1.3 billion including:

o

A multiple-award indefinite delivery/indefinite quantity (IDIQ) contract with a ceiling value of $900 million to support the U.S. Army's Technical Engineering and Support Services (TESS) program, a recompete win with an estimated value of $500 million.

o

Awards totaling $179 million on the Strategic Services Sourcing (S3) contract vehicle with the Army.

o

A prime IDIQ contract with a ceiling value of $84 million to continue providing advertising, media, and marketing support to the Army National Guard (ARNG) State Media Services Program.

Fourth Quarter Appointments and Industry Recognition

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The Honorable James S. Gilmore III, former Governor of Virginia, and General William Scott Wallace, USA (Ret.), former Commanding General of the U.S. Army Training and Doctrine Command, were appointed to CACI's Board of Directors.

·

Deborah Dunie, Executive Vice President and Chief Technology Officer, was named Chairperson of the Armed Forces Communications and Electronics Association (AFCEA) International's Technical Committee.

CEO Commentary

Commenting on the company’s financial results, Paul Cofoni, CACI’s President and CEO, said, “Our record results for both the quarter and the year validate our strategy to focus our solutions in the well-funded and critical areas of defense, intelligence, homeland security, and IT modernization.  National security remains at the top of our government’s greatest challenges, and we will continue to concentrate our resources to help our clients preserve the freedom and liberty of our nation’s citizens.   Even with multiple domestic issues facing our country, we cannot lose sight of ever-increasing threats from determined, persistent, and well-resourced terrorist organizations.  There is no margin for error in our national security posture.

“Looking ahead we expect to see continued strong performance in CACI’s   U.S. operations.  We anticipate continued demand for our valuable and proven solutions to keep our nation safe and implement efficient and cost-effective IT solutions to modernize federal agencies.   We are positioned to expand our capabilities in defense healthcare logistics and IT modernization and address new opportunities in cyber security, smart power, and energy.  We expect to see continued growth in our highly profitable U.K. operations, including greater penetration into the public sector.

“Our fundamentals are strong.  We expect FY10 to be another year of double-digit earnings per share growth, mid to high single digit organic revenue growth and strong cash generation.  We believe we are aligned with the priorities of the current administration, and perfectly positioned to win new business on complex, large-scale contracts.  We are confident that our aggressive and experienced leadership team will continue to make CACI a leader in our markets, provide high-quality and best-value solutions to our clients, and build long-term shareholder value.”

Full Year FY09 Results

For all of FY09, we reported record revenue of $2.73 billion, up 12.8 percent over FY08 revenue of $2.42 billion.  Organic revenue growth for the year was 9.9 percent.  Operating income in FY09 was a record $184.1 million, up 13.1 percent, compared with $162.8 million reported in FY08.  Net income in FY09 was a record $95.5 million, 14.6 percent higher than net income of $83.3 million for FY08.  Diluted earnings per share were a record $3.14, up 15.3 percent, compared with $2.72 per diluted share reported a year earlier. Operating cash flow for FY09 was $151.1 million, compared with $160.1 million for FY08.  Diluted cash earnings per share were $4.46, up 9.7 percent, compared with diluted cash earnings per share of $4.07 in FY08.

FY09 Contract Funding Orders and Awards

·

Contract funding orders totaled a record $3.0 billion, a 19.8 percent increase over contract funding orders of $2.5 billion received in FY08.

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Contract awards totaled a record $3.9 billion, up 37.0 percent over FY08, including:

o

Approximately $700 million in awards on the S3 contract vehicle throughout the year. At the end of our fiscal year, we had received more than $2 billion on this vehicle since its inception in March 2006.

o

GENESIS III, a prime contract with a $452 million ceiling to continue providing mission support services to the U.S. Army Intelligence and Security Command.

o

The General Service Administration's (GSA) ten-year, multiple award Alliant program with an initial estimated value to CACI of $350 million.

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A five-year, single award prime task order of $150 million by the U.S. Navy's Naval Sea Systems Command to modernize shipyards and maintenance centers through information technology upgrades and software development.

·

Additional major contract awards not included in the above total include prime positions on:

o

The Army's ten-year, multiple award Program Executive Office for Simulation, Training and Instrumentation (PEO STRI) Omnibus Contract II with an overall ceiling value of $17.5 billion.

o

The five-year, multiple award United States Strategic Command Systems and Mission Support II (USAMS II) program, with an overall ceiling value of $900 million.

o

The Army's five-year, multiple award Biometrics Operations and Support Services–Unrestricted (BOSS-U) contract with an estimated ceiling value of $500 million.

o

A five-year multiple award contract with a ceiling value of $260 million to support the Department of Defense Business Transformation Agency in the area of thought leadership and change management.

FY09 Industry Recognition

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CACI was rated by Fortune Magazine as among the Most Admired IT Companies in the world and the Most Admired Company in Virginia.

CACI Reaffirms Its FY10 Guidance

We are reaffirming our Fiscal Year 2010 (FY10) guidance which we issued on June 25, 2009.  In addition to the assumptions supporting our FY10 guidance outlined at the time we issued it, every key performance metric trend for our U.S. Operations continues to point in a positive direction:  contract awards, contract funding orders, our win rates for both new and recompeted business, the growth of our pipeline of qualified opportunities, and hiring and retention. This guidance also includes the adoption of Financial Accounting Standards Board Staff Position No. APB 14-1, Accounting for Convertible Debt Instruments That May be Settled in Cash Upon Conversion (Including Partial Cash Settlement).  The table below summarizes the guidance ranges for FY10:

This guidance does not include any contributions from future acquisitions.

This guidance represents our views as of August 12, 2009.  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 13 th , 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 1-800-967-7134 and enter the confirmation code 9640622. A replay of the call will also be available over the Internet beginning at 1:00 PM Eastern Time Thursday , August 13 th , and can be accessed through our homepage ( www.caci.com ) by clicking on the CACI Investor Info button.

About CACI

CACI Internationa l 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 security, information assurance, and information operations; 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 and the Russell 2000 index. CACI provides dynamic careers for approximately 12, 5 00 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 and www.asymmetricthreat.net .

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 th e 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 anticipat e d 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 a prolonged recession; terrorist activities or war; changes in interest rates; cu rrency fluctuations ; significant fluctuations in the equity markets; 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 a nd 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,  rebu ilding Iraq, or an economic stimulus package; 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 investigations i nto allegations of improper actions related to the provision of services in support of U.S. military operations in Iraq; the results of government audit and reviews conducted by the Defense Contract Audit Agency or other governmental entities with cogniza n t 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 regar d ing 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, (iii) c o mpetition 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 ter m or long range business plans; and other risks described in the company ’ s Securities and Exchange Commission filings.

 

(Financial tables follow)

*See Reconciliation of Net Income to Earnings before Interest, Taxes, Depreciation and Amortization   and to Cash Net Income on page 10

 

Revenue Received as a Prime versus Subcontractor (Unaudited)

Selected Financial Data (Continued)

Contract Funding Orders Received (Unaudited)

 

Reconciliation of Total Revenue Growth and Organic Revenue Growth

(Unaudited)

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.

 

Selected Financial Data (Continued)

Reconciliation of Net Income to Earnings Before Interest, Taxes, Depreciation

and Amortization (EBITDA) and to Cash Net Income

(Unaudited)

The Company views EBITDA, EBITDA margin, Cash Net Income and Diluted Cash Earnings Per Share as important indicators of performance, consistent with the manner in which management measures and forecasts the Company’s performance.   EBITDA is a commonly used non-GAAP measure when comparing our results with those of other companies.  We believe Cash Net Income is a significant driver of long-term value and is used by investors to measure our performance.  This measure in particular assists readers in further understanding our results and trends from period-to-period by removing certain non-cash items that do not impact the cash flow performance of our business.  EBITDA is defined by us as GAAP net income plus net interest expense, income taxes, and depreciation and amortization.  EBITDA margin is EBITDA divided by revenue.  Cash Net Income is defined by us as GAAP net income plus stock-based compensation expense,  depreciation and amortization, and amortization of financing costs, net of related tax effects.  Diluted Cash Earnings Per Share is Cash Net Income divided by diluted weighted-average shares, as reported.  EBITDA and Cash Net Income as defined by us may not be computed in the same manner as similarly titled measures used by other companies.  These non-GAAP measures should not be considered in isolation or as a substitute for performance measures prepared in accordance with GAAP.

		Quarter Ended												Twelve Months Ended
(dollars in thousands)		6/30/2009				6/30/2008				% Change				6/30/2009				6/30/2008				% Change
Net income, as reported		$	28,965			$	23,549				23.0	%		$	95,480			$	83,323				14.6	%
Plus:
Income taxes			18,388				16,260				13.1	%			66,311				54,308				22.1	%
Interest income and expense, net			4,988				6,156				-19.0	%			21,604				24,723				-12.6	%
Depreciation and amortization			10,959				12,128				-9.6	%			46,592				47,517				-1.9	%
EBITDA		$	63,300			$	58,093				9.0	%		$	229,987			$	209,871				9.6	%

		Quarter Ended												Twelve Months Ended
(dollars in thousands)		6/30/2009				6/30/2008				% Change				6/30/2009				6/30/2008				% Change
Revenue, as reported		$	728,901			$	655,016				11.3	%		$	2,730,162			$	2,420,537				12.8	%
EBITDA		$	63,300			$	58,093				9.0	%		$	229,987			$	209,871				9.6	%
EBITDA margin			8.7	%			8.9	%							8.4	%			8.7	%

		Quarter Ended												Twelve Months Ended
(dollars in thousands)		6/30/2009				6/30/2008				% Change				6/30/2009				6/30/2008				% Change
Net income, as reported		$	28,965			$	23,549				23.0	%		$	95,480			$	83,323				14.6	%
Plus:
Stock-based compensation			3,737				3,955				-5.5	%			16,821				17,639				-4.6	%
Depreciation and amortization			10,959				12,128				-9.6	%			46,592				47,517				-1.9	%
Amortization of financing costs			944				686				37.6	%			2,841				2,531				12.2	%
Less:
Related tax effect			(6,142	)			(6,585	)			-6.7	%			(26,018	)			(26,581	)			-2.1	%
Cash net income		$	38,463			$	33,733				14.0	%		$	135,716			$	124,429				9.1	%

		Quarter Ended												Twelve Months Ended
(shares in thousands)		6/30/2009				6/30/2008				% Change				6/30/2009				6/30/2008				% Change
Diluted weighted average shares,
as reported			30,369				30,740								30,427				30,606
Diluted earnings per share, as reported		$	0.95			$	0.77				24.5	%		$	3.14			$	2.72				15.3	%
Diluted cash earnings per share		$	1.27			$	1.10				15.4	%		$	4.46			$	4.07				9.7	%