CACI
Raises FY 2009 EPS Guidance to $3.09 to $3.16 per Share and Issues Fiscal Year
2010 Guidance
FY
2010 revenue projected at $2.85 billion to $2.95 billion, up 6% to
9%
Adopting
new accounting standard for convertible debt, increasing non-cash interest
expense
FY
2010 net income projected at $97.8 million to $103.9 million, up 9% to
16%
FY
2010 diluted EPS projected to be $3.20 to $3.40, up 9% to 16%
FY
2010 operating cash flow projected to be approximately $130 million
Arlington,
Va., June 25, 2009 – CACI International Inc (NYSE: CACI
)
, a leading professional
services and information technology provider to the federal government, issued
its guidance for its Fiscal Year 2010 (FY10), which begins July 1,
2009. CACI provides innovative solutions to meet America’s needs in
national defense, intelligence, homeland security, and the transformation of
government, and is a leading strategic consolidator in its market
space.
Guidance
for Fiscal Year 2009 Increased
We are
proud to announce that we are increasing our annual guidance for Fiscal Year
2009 (FY09). The table below summarizes the increased guidance
ranges.
|
In
millions except EPS
|
Current
Guidance
(As
of 6/25/09)
|
Previous
Guidance
(As
of 4/29/09)
|
|
Revenue
|
$2,650-$2,750
|
$2,650-$2,750
|
|
Net
income
|
$94.1-$96.3
|
$90.0-$93.0
|
|
Diluted
earnings per share
|
$3.09-$3.16
|
$2.95-$3.05
|
|
Diluted
weighted average shares
|
30.4
|
30.5
|
The major
drivers behind the increase in our guidance are:
|
·
|
The
continuing strong performance of our US operations: $0.04 -
$0.05 per share.
|
|
·
|
A
better than expected performance in our UK operations: $0.01 -
$0.02 per share.
|
|
·
|
Improvement
in the company’s effective corporate tax rate due to the performance of
investments in CACI’s deferred compensation plan: $0.05 per
share.
|
|
·
|
A
net gain associated with commercial legal matters: $0.03 per
share.
|
This
guidance represents our views as of June 25, 2009. Investors are
reminded that actual results may differ for the reasons described herein and in
our filings with the Securities and Exchange Commission.
Guidance
for FY 2010
We are
issuing our initial FY10 annual guidance. As we have previously
communicated, beginning with FY10 we are required to adopt Financial Accounting
Standards Board Staff Position No. APB 14-1,
Accounting for Convertible Debt
Instruments
T
hat
M
ay be Settled in Cash Upon
Conversio
n
(Including Partia
l Cash Settlement)
(FSP
14-1) with regard to our $300 million, 2.125 percent convertible senior
subordinated notes (the Notes) that mature on May 1, 2014 and were issued on May
16, 2007. This new standard requires that we recognize interest
expense on the Notes using an interest rate in effect at issuance for comparable
debt instruments that did not contain conversion features. FSP 14-1
will have no impact on our cash flow. The adoption of FSP 14-1
requires a retrospective application to the date the Notes were
issued. The table below reflects the impact of FSP 14-1 on our annual
results from the date the Notes were issued through FY10.
|
In
millions except EPS
|
FY2007
|
FY2008
|
FY2009
|
FY2010
|
|
Change
in interest expense and other, net
|
$1.1
|
$8.9
|
$9.5
|
$10.2
|
|
Change
in income taxes
|
$(0.4)
|
$(3.5)
|
$(3.7)
|
$(4.0)
|
|
Change
in net income
|
$(0.6)
|
$(5.4)
|
$(5.8)
|
$(6.2)
|
|
Change
in diluted earnings per share
|
$(0.02)
|
$(0.18)
|
$(0.19)
|
$(0.20)
|
We will
reflect the new accounting in our FY10 financial statements, beginning with our
Quarterly Report on Form 10-Q for the quarter ending September 30,
2009.
The
following table summarizes our guidance for FY10 and shows the comparison with
FY09 after the retrospective application of FSP 14-1 on our current FY09
guidance ranges.
|
In
millions except EPS
|
FY
2010
|
FY
2009
With
FSP 14-1
|
|
Revenue
|
$2,850-$2,950
|
$2,650-$2,750
|
|
Net
income
|
$97.8-$103.9
|
$88.3-$90.5
|
|
Diluted
earnings per share
|
$3.20-$3.40
|
$2.90-$2.97
|
|
Diluted
weighted average shares
|
30.6
|
30.4
|
We
project that cash flows from operations will be approximately $130
million. Our guidance does not include any impacts from future
acquisitions.
Following
are the assumptions supporting our guidance:
|
·
|
We
expect continued profitable growth of our domestic operations during
FY10.
|
|
·
|
We
believe we are well-positioned to win new business in the administration’s
high priority areas of cyber security, information technology
modernization, and smart power.
|
|
·
|
We
expect continued improved performance of our United
Kingdom operations during
FY10.
|
|
·
|
We
expect an effective corporate tax rate of 39.5 percent, which assumes no
net investment gains or losses in our deferred compensation plan
assets in FY10.
|
This
guidance represents our views as of June 25, 2009. Investors are
reminded that actual results may differ for the reasons described herein and in
our filings with the Securities and Exchange Commission.
Commentary
Commenting
on the FY09 and FY10 guidance, Paul Cofoni, CACI’s President and CEO, said, “Our
FY09 performance has been very strong, and we are raising our earnings guidance
accordingly. The record level of awards and contract funding orders
we are receiving during our FY09 has helped to establish our best-ever funded
backlog and total backlog to date for CACI as we start FY10. We
believe this will result in continued, solid organic growth for us during
FY10. Our performance is especially impressive given the challenges
we have faced. Our FY10 guidance is consistent with our annual
financial goals of double-digit earnings growth, mid to high single digit
organic revenue growth, and strong cash flow. I am proud of the
extraordinary effort of our management team and the contributions of our
innovative and dedicated employees.
Going
forward, our domestic operations are solidly positioned in the well-funded and
high-priority areas of defense, intelligence, homeland security, and IT
modernization. We remain agile in responding to market changes and
aligned with the administration’s priorities in cyber security, smart power, and
IT modernization. We believe our clients will continue to rely on our
proven CACI solutions to deliver the best value for our government and citizens
and help keep our nation safe. We continue to sustain our client base
while winning new business, including prime positions on large, growing
contracts.
We
generate strong cash flow and have a solid balance sheet. And we
remain active in pursuing strategic acquisitions that provide attractive
valuations, are accretive, and bring added and complementary solutions to both
new and existing clients.
As we
enter FY10, we are confident that we can continue our strong performance and
make progress toward our vision of being the best in all we do. We
expect to be a leader in our markets, bring value to our clients, deliver on our
commitments, and build long-term shareholder trust and value.”
Conference
Call Information
We have
scheduled a conference call for 8:30 AM ET Friday, June 26
th
. Interested
parties can listen to the conference call and view accompanying exhibits over
the Internet by logging on to CACI’s Internet site at
www.caci.com
at the
scheduled time. They may also dial in to 877-718-5092, confirmation
code 8354763. A replay of the call will be available over the Internet,
and can be accessed through CACI’s homepage by clicking on the CACI Investor
Info button.
About
CACI
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 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 12,400 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
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 a prolonged recession;
terrorist activities or war; changes in interest rates; currency 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 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, rebuilding 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 into allegations of improper actions related to the
provision of services in support of U.S. military operations in Iraq; the
results of government audits and reviews conducted by the Defense Contract Audit
Agency or other governmental entity 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; 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.
#
# #
|
Corporate
Communications and Media:
|
|
Investor
Relations:
|
|
|
|
|
|
Jody
Brown, Executive Vice President, Public Relations
|
|
David
Dragics, Senior Vice President, Investor Relations
|
|
|
|
|
|
(703)
841-7801,
jbrown@caci.com
|
|
(866)
606-3471,
ddragics@caci.com
|