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CACI Reports Results for Its Fiscal 2021 Fourth Quarter and Full Year and Issues Fiscal Year 2022 Guidance

Annual revenue of $6.0 billion, +6%

Annual net income of $457.4 million and Diluted EPS of $18.30

Annual adjusted net income of $507.2 million and Adjusted diluted EPS of $20.29

Annual cash from operations of $592.2 million, +14%;
Annual free cash flow of $537.1 million, +22%

Annual contract awards of $9.2 billion

Company expects continued organic growth, margin expansion, and strong cash flow in Fiscal Year 2022

RESTON, Va. — (BUSINESS WIRE) — August 11, 2021 — CACI International Inc ( NYSE:CACI), a leading provider of expertise and technology to government enterprise and mission customers, announced results today for its fiscal fourth quarter and full year ended June 30, 2021.

CEO Commentary and Outlook

John Mengucci, CACI’s President and CEO, said, “Our fourth quarter results capped another strong year for CACI. We again achieved our financial commitments, delivering organic revenue growth above our addressable market, margin expansion, and robust cash flow, as well as record backlog. Our financial performance supported a flexible and opportunistic capital deployment strategy, enabling us to both invest ahead of need and execute a value-creating accelerated share repurchase. In Fiscal Year 2022, we see continued growth above our addressable market, margin expansion, and strong cash flow generation, and remain committed to delivering value for our customers and our shareholders.”

Fourth Quarter Results

Three Months Ended
(in millions except earnings per share and DSO) 6/30/2021 6/30/2020 % Change
Revenue

$1,564.0

$1,495.6

4.6

%

Operating income

$112.1

$133.7

-16.2

%

Net income

$137.0

$93.7

46.1

%

Adjusted net income, a non-GAAP measure1

$149.4

$104.5

43.0

%

Diluted earnings per share

$5.74

$3.68

56.1

%

Adjusted diluted earnings per share, a non-GAAP measure1

$6.26

$4.10

52.7

%

Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), a non-GAAP measure1

$144.9

$162.9

-11.1

%

Net cash provided by operating activities excluding MARPA1

$99.5

$154.4

-35.5

%

Free cash flow, a non-GAAP measure1

$77.7

$136.4

-43.1

%

Days sales outstanding (DSO)2

54

57

(1)

This non-GAAP measure should not be considered in isolation or as a substitute for measures prepared in accordance with GAAP. For additional information regarding this non-GAAP measure, see the related explanation and reconciliation to the GAAP measure included below in this release.

(2)

The DSO calculations for fourth quarter FY21 and fourth quarter FY20 exclude the impact of the Company’s MARPA, which was 7 days and 9 days, respectively.

Revenue in Q4 FY21 increased 5% year-over-year as reported and 4% organically. The year-over-year decrease in operating income was driven by higher indirect expenses, the impact of tax elections taken under the CARES Act, and normal fluctuations in revenue mix. The year-over-year increases in net income and adjusted net income were due to a lower effective tax rate, partially offset by higher interest expense and the factors influencing operating income. Diluted earnings per share and adjusted diluted earnings per share increased faster than their respective net income metrics due to a lower share count as a result of the $500 million accelerated share repurchase announced in March 2021. The decrease in cash from operations, excluding MARPA, was driven by higher cash tax payments due to the aforementioned tax elections. The decrease in free cash flow was due to the same factors cited above, as well as higher capital expenditures.

Fourth Quarter Awards

Contract awards in Q4 FY21 totaled $3.6 billion, with approximately 40% for new business to CACI. For the full year, contract awards totaled $9.2 billion, with over 40% for new business to CACI. These awards exclude ceiling values of multi-award, indefinite delivery, indefinite quantity (IDIQ) contracts. Some notable awards during the quarter were:

Total backlog as of June 30, 2021 was $24.2 billion compared with $21.6 billion a year ago, an increase of 12 percent. Funded backlog as of June 30, 2021 was $3.3 billion compared with $2.8 billion a year ago, an increase of 18 percent.

Fourth Quarter Highlights

Fiscal Year Results

Twelve Months Ended
(in millions except earnings per share and DSO) 6/30/2021 6/30/2020 % Change
Revenue

$6,044.1

$5,720.0

5.7

%

Operating income

$539.5

$457.7

17.9

%

Net income

$457.4

$321.5

42.3

%

Adjusted net income, a non-GAAP measure1

$507.2

$365.2

38.9

%

Diluted earnings per share

$18.30

$12.61

45.1

%

Adjusted diluted earnings per share, a non-GAAP measure1

$20.29

$14.33

41.6

%

Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), a non-GAAP measure1

$668.6

$573.6

16.6

%

Net cash provided by operating activities excluding MARPA1

$610.2

$511.2

19.4

%

Free cash flow, a non-GAAP measure1

$537.1

$438.9

22.4

%

(1)

This non-GAAP measure should not be considered in isolation or as a substitute for measures prepared in accordance with GAAP. For additional information regarding this non-GAAP measure, see the related explanation and reconciliation to the GAAP measure included below in this release.

Revenue in FY21 increased 6% year-over-year as reported and 5% organically. The year-over-year increase in operating income was driven by strong contract execution and lower contract costs, and faster growth in higher-margin technology revenue. The year-over-year increases in net income and adjusted net income were due to higher operating income, a lower effective tax rate, and lower interest expense. The increase in cash from operations, excluding MARPA, was driven by higher net income, partially offset by higher cash taxes paid as a result of tax elections taken under the CARES Act. The increase in free cash flow was due to the same factors cited above.

FY22 Guidance

The table below summarizes our FY22 guidance and represents our views as of August 11, 2021.

(in millions except earnings per share) Fiscal Year 2022 Guidance
Revenue $6,200 - $6,400
Adjusted net income, a non-GAAP measure1 $430 - $450
Adjusted diluted earnings per share, a non-GAAP measure1 $18.00 - $18.83
Free cash flow, a non-GAAP measure2 at least $720

(1)

Adjusted net income and Adjusted diluted earnings per share are defined as GAAP net income and GAAP diluted EPS, respectively, excluding intangible amortization expense and the related tax impact. This non-GAAP measure should not be considered in isolation or as a substitute for measures prepared in accordance with GAAP. For additional information regarding this non-GAAP measure, see the related explanation and reconciliation to the GAAP measure included below in this release.

(2)

Expected Fiscal Year 2022 free cash flow includes an estimated $230 million tax refund related to certain tax elections, as well as a payroll tax deferral repayment of approximately $45 million. Free cash flow is defined as Net cash provided by operating activities excluding MARPA, less payments for capital expenditures (capex). This non-GAAP measure should not be considered in isolation or as a substitute for measures prepared in accordance with GAAP. For additional information regarding this non-GAAP measure, see the related explanation and reconciliation to the GAAP measure included below in this release.

Conference Call Information

We have scheduled a conference call for 8:30 AM Eastern Time Thursday, August 12, 2021 during which members of our senior management will be making a brief presentation focusing on fourth quarter and full year results and operating trends, followed by a question-and-answer session. You can listen to the webcast and view the accompanying exhibits on CACI’s investor relations website at http://investor.caci.com/events/default.aspx at the scheduled time. A replay of the call will also be available on CACI’s investor relations website at http://investor.caci.com/.

About CACI

CACI’s approximately 22,000 talented employees are vigilant in providing the unique expertise and distinctive technology that address our customers’ greatest enterprise and mission challenges. Our culture of good character, innovation, and excellence drives our success and earns us recognition as a Fortune World’s Most Admired Company. As a member of the Fortune 500 Largest Companies, the Russell 1000 Index, and the S&P MidCap 400 Index, we consistently deliver strong shareholder value. Visit us at www.caci.com.

There are statements made herein that 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 risk factors that could cause actual results to be materially different from anticipated results. These risk factors include, but are not limited to, the following: our reliance on U.S. government contracts, which includes general risk around the government contract procurement process (such as bid protest, small business set asides, loss of work due to organizational conflicts of interest, etc.) and termination risks; significant delays or reductions in appropriations for our programs and broader changes in U.S. government funding and spending patterns; legislation that amends or changes discretionary spending levels or budget priorities, such as for homeland security or to address global pandemics like COVID-19; legal, regulatory, and political change from successive presidential administrations 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, including the impact of global pandemics like COVID-19; 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; competitive factors such as pricing pressures and/or competition to hire and retain employees (particularly those with security clearances); failure to achieve contract awards in connection with re-competes for present business and/or competition for new business; regional and national economic conditions in the United States and globally, including but not limited to: terrorist activities or war, changes in interest rates, currency fluctuations, significant fluctuations in the equity markets, and market speculation regarding our continued independence; our ability to meet contractual performance obligations, including technologically complex obligations dependent on factors not wholly within our control; limited access to certain facilities required for us to perform our work, including during a global pandemic like COVID-19; changes in tax law, the interpretation of associated rules and regulations, or any other events impacting our effective tax rate; changes in technology; 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 ability to achieve the objectives of near term or long-term business plans; the effects of health epidemics, pandemics and similar outbreaks may have material adverse effects on our business, financial position, results of operations and/or cash flows; and other risks described in our Securities and Exchange Commission filings.

CACI-Earnings Release

Selected Financial Data
 
CACI International Inc
Condensed Consolidated Statements of Operations (Unaudited)
(Amounts in thousands, except per share amounts)
 
Three Months Ended Twelve Months Ended
6/30/2021 6/30/2020 % Change 6/30/2021 6/30/2020 % Change
Revenue

$

1,564,000

 

$

1,495,581

 

4.6

%

$

6,044,135

 

$

5,720,042

 

5.7

%

Costs of revenue:
Direct costs

 

1,043,407

 

 

981,678

 

6.3

%

 

3,930,707

 

 

3,719,056

 

5.7

%

Indirect costs and selling expenses

 

376,788

 

 

351,427

 

7.2

%

 

1,448,614

 

 

1,432,602

 

1.1

%

Depreciation and amortization

 

31,755

 

 

28,800

 

10.3

%

 

125,363

 

 

110,688

 

13.3

%

Total costs of revenue:

 

1,451,950

 

 

1,361,905

 

6.6

%

 

5,504,684

 

 

5,262,346

 

4.6

%

Operating income

 

112,050

 

 

133,676

 

-16.2

%

 

539,451

 

 

457,696

 

17.9

%

Interest expense and other, net

 

11,815

 

 

10,447

 

13.1

%

 

39,836

 

 

56,059

 

-28.9

%

Income before income taxes

 

100,235

 

 

123,229

 

-18.7

%

 

499,615

 

 

401,637

 

24.4

%

Income taxes

 

(36,742

)

 

29,498

 

-224.6

%

 

42,172

 

 

80,157

 

-47.4

%

Net income

$

136,977

 

$

93,731

 

46.1

%

$

457,443

 

$

321,480

 

42.3

%

 
Basic earnings per share

$

5.82

 

$

3.74

 

55.7

%

$

18.52

 

$

12.84

 

44.2

%

Diluted earnings per share

$

5.74

 

$

3.68

 

56.1

%

$

18.30

 

$

12.61

 

45.1

%

 
Weighted average shares used in per share computations:
Basic

 

23,552

 

 

25,088

 

 

24,705

 

 

25,031

 

Diluted

 

23,856

 

 

25,487

 

 

24,992

 

 

25,485

 

 
Statement of Operations Data (Unaudited)
Three Months Ended Twelve Months Ended
6/30/2021 6/30/2020 % Change 6/30/2021 6/30/2020 % Change
Operating income margin

 

7.2

%

 

8.9

%

 

8.9

%

 

8.0

%

Tax rate

 

-36.7

%

 

23.9

%

 

8.4

%

 

20.0

%

Net income margin

 

8.8

%

 

6.3

%

 

7.6

%

 

5.6

%

 
Adjusted EBITDA*

$

144,915

 

$

162,940

 

-11.1

%

$

668,582

 

$

573,585

 

16.6

%

Adjusted EBITDA Margin

 

9.3

%

 

10.9

%

 

11.1

%

 

10.0

%

* This non-GAAP measure should not be considered in isolation or as a substitute for measures prepared in accordance with GAAP. For additional information regarding this non-GAAP measure, see the related explanation and reconciliation to the GAAP measure included below in this release.
Selected Financial Data (Continued)
 
CACI International Inc
Condensed Consolidated Balance Sheets (Unaudited)
(Amounts in thousands)
 
6/30/2021 6/30/2020
ASSETS:
Current assets
Cash and cash equivalents

$

88,031

$

107,236

Accounts receivable, net

 

879,851

 

841,227

Prepaid expenses and other current assets

 

363,294

 

137,423

Total current assets

 

1,331,176

 

1,085,886

 
Goodwill and intangible assets, net

 

4,108,684

 

3,813,995

Property and equipment, net

 

190,444

 

170,521

Operating lease right-of-use assets

 

356,887

 

330,767

Other long-term assets

 

185,181

 

141,303

Total assets

$

6,172,372

$

5,542,472

 
LIABILITIES AND SHAREHOLDERS' EQUITY:
Current liabilities
Current portion of long-term debt

$

46,920

$

46,920

Accounts payable

 

148,636

 

89,961

Accrued compensation and benefits

 

409,275

 

338,760

Other accrued expenses and current liabilities

 

279,970

 

293,518

Total current liabilities

 

884,801

 

769,159

 
Long-term debt, net of current portion

 

1,688,919

 

1,357,519

Other long-term liabilities

 

933,374

 

754,484

Total liabilities

 

3,507,094

 

2,881,162

 
Shareholders' equity

 

2,665,278

 

2,661,310

Total liabilities and shareholders' equity

$

6,172,372

$

5,542,472

Selected Financial Data (Continued)
 
CACI International Inc
Condensed Consolidated Statements of Cash Flows (Unaudited)
(Amounts in thousands)
 
Twelve Months Ended
6/30/2021 6/30/2020
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income

$

457,443

 

$

321,480

 

Reconciliation of net income to net cash provided by operating activities:
Depreciation and amortization

 

125,363

 

 

110,688

 

Non-cash lease expense

 

77,148

 

 

73,248

 

Amortization of deferred financing costs

 

2,320

 

 

2,346

 

Loss on disposal of assets

 

6

 

 

190

 

Stock-based compensation expense

 

30,463

 

 

29,302

 

Deferred income taxes

 

108,973

 

 

17,874

 

Changes in operating assets and liabilities, net of effect of business acquisitions:
Accounts receivable, net

 

(38,162

)

 

34,550

 

Prepaid expenses and other assets

 

(15,766

)

 

(38,432

)

Accounts payable and other accrued expenses

 

49,812

 

 

(24,406

)

Accrued compensation and benefits

 

68,742

 

 

46,769

 

Income taxes payable and receivable

 

(231,971

)

 

(25,118

)

Operating lease liabilities

 

(73,057

)

 

(74,928

)

Long-term liabilities

 

30,901

 

 

45,142

 

Net cash provided by operating activities

 

592,215

 

 

518,705

 

 
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures

 

(73,129

)

 

(72,303

)

Cash paid for business acquisitions, net of cash acquired

 

(356,261

)

 

(106,226

)

Other

 

2,744

 

 

-

 

Net cash used in investing activities

 

(426,646

)

 

(178,529

)

 
CASH FLOWS FROM FINANCING ACTIVITIES:
Net borrowings (payments) under credit facilities

 

329,080

 

 

(262,920

)

Payment of contingent consideration

 

-

 

 

(8,700

)

Proceeds from employee stock purchase plans

 

9,181

 

 

7,432

 

Repurchases of common stock

 

(509,137

)

 

(7,806

)

Payment of taxes for equity transactions

 

(19,720

)

 

(31,400

)

Net cash used in financing activities

 

(190,596

)

 

(303,394

)

Effect of exchange rate changes on cash and cash equivalents

 

5,822

 

 

(1,574

)

Net change in cash and cash equivalents

 

(19,205

)

 

35,208

 

Cash and cash equivalents, beginning of period

 

107,236

 

 

72,028

 

Cash and cash equivalents, end of period

$

88,031

 

$

107,236

 

Selected Financial Data (Continued)
 
Revenue by Customer Group (Unaudited)
Three Months Ended
(dollars in thousands) 6/30/2021 6/30/2020 $ Change % Change
Department of Defense

1,094,166

69.9%

1,033,998

69.1%

$

60,168

5.8%

Federal Civilian Agencies

399,604

25.6%

400,459

26.8%

 

(855)

-0.2%

Commercial and other

70,230

4.5%

61,124

4.1%

 

9,106

14.9%

Total

1,564,000

100.0%

1,495,581

100.0%

$

68,419

4.6%

 
Twelve Months Ended
(dollars in thousands) 6/30/2021 6/30/2020 $ Change % Change
Department of Defense

4,185,292

69.3%

3,999,261

69.9%

$

186,031

4.7%

Federal Civilian Agencies

1,585,672

26.2%

1,467,801

25.7%

 

117,871

8.0%

Commercial and other

273,171

4.5%

252,980

4.4%

 

20,191

8.0%

Total

6,044,135

100.0%

5,720,042

100.0%

$

324,093

5.7%

 
Revenue by Contract Type (Unaudited)
Three Months Ended
(dollars in thousands) 6/30/2021 6/30/2020 $ Change % Change
Cost-plus-fee

931,871

59.6%

855,816

57.2%

$

76,055

8.9%

Fixed price

438,107

28.0%

416,896

27.9%

 

21,211

5.1%

Time and materials

194,022

12.4%

222,869

14.9%

 

(28,847)

-12.9%

Total

1,564,000

100.0%

1,495,581

100.0%

$

68,419

4.6%

 
Twelve Months Ended
(dollars in thousands) 6/30/2021 6/30/2020 $ Change % Change
Cost-plus-fee

3,504,838

58.0%

3,274,707

57.2%

$

230,131

7.0%

Fixed price

1,769,841

29.3%

1,629,475

28.5%

 

140,366

8.6%

Time and materials

769,456

12.7%

815,860

14.3%

 

(46,404)

-5.7%

Total

6,044,135

100.0%

5,720,042

100.0%

$

324,093

5.7%

 
Revenue by Prime or Subcontractor (Unaudited)
Three Months Ended
(dollars in thousands) 6/30/2021 6/30/2020 $ Change % Change
Prime

1,394,094

89.1%

1,368,745

91.5%

$

25,349

1.9%

Subcontractor

169,906

10.9%

126,836

8.5%

 

43,070

34.0%

Total

1,564,000

100.0%

1,495,581

100.0%

$

68,419

4.6%

 
Twelve Months Ended
(dollars in thousands) 6/30/2021 6/30/2020 $ Change % Change
Prime

5,449,590

90.2%

5,211,366

91.1%

$

238,224

4.6%

Subcontractor

594,545

9.8%

508,676

8.9%

 

85,869

16.9%

Total

6,044,135

100.0%

5,720,042

100.0%

$

324,093

5.7%

Selected Financial Data (Continued)
 
Revenue by Expertise or Technology (Unaudited)
Three Months Ended
(dollars in thousands) 6/30/2021 6/30/2020 $ Change % Change
Expertise

735,588

47.0%

773,789

51.7%

$

(38,201)

-4.9%

Technology

828,412

53.0%

721,792

48.3%

 

106,620

14.8%

Total

1,564,000

100.0%

1,495,581

100.0%

$

68,419

4.6%

 
Twelve Months Ended
(dollars in thousands) 6/30/2021 6/30/2020 $ Change % Change
Expertise

2,972,966

49.2%

3,001,512

52.5%

$

(28,546)

-1.0%

Technology

3,071,169

50.8%

2,718,530

47.5%

 

352,639

13.0%

Total

6,044,135

100.0%

5,720,042

100.0%

$

324,093

5.7%

Contract Awards Received (Unaudited)
Three Months Ended
(dollars in thousands) 6/30/2021 6/30/2020 $ Change % Change
Contract Awards

$

3,642,295

$

3,387,343

$

254,952

7.5%

 
Twelve Months Ended
(dollars in thousands) 6/30/2021 6/30/2020 $ Change % Change
Contract Awards

$

9,171,752

$

11,564,085

$

(2,392,333)

-20.7%

Reconciliation of Net Income to Adjusted Net Income and Diluted EPS to Adjusted Diluted EPS
(Unaudited)

Adjusted net income and Adjusted diluted EPS are non-GAAP performance measures. We define Adjusted net income and Adjusted diluted EPS as GAAP net income and GAAP diluted EPS, respectively, excluding intangible amortization expense and the related tax impact as we do not consider intangible amortization expense to be indicative of our core operating performance. We believe that these performance measures provide management and investors with useful information in assessing trends in our ongoing operating performance, provide greater visibility in understanding the long-term financial performance of the Company, and allow investors to more easily compare our results to results of our peers. These non-GAAP measures should not be considered in isolation or as a substitute for performance measures prepared in accordance with GAAP.

Reconciliation of Net Income to Adjusted Net Income and Diluted EPS to Adjusted Diluted EPS

Adjusted net income and Adjusted diluted EPS are non-GAAP performance measures. We define Adjusted net income and Adjusted diluted EPS as GAAP net income and GAAP diluted EPS, respectively, excluding intangible amortization expense and the related tax impact as we do not consider intangible amortization expense to be indicative of our core operating performance. We believe that these performance measures provide management and investors with useful information in assessing trends in our ongoing operating performance, provide greater visibility in understanding the long-term financial performance of the Company, and allow investors to more easily compare our results to results of our peers.

(amounts in thousands, except per share amounts) Three Months Ended Twelve Months Ended
6/30/2021 6/30/2020 % Change 6/30/2021 6/30/2020 % Change
Net income, as reported

$

136,977

 

$

93,731

 

46.1

%

$

457,443

 

$

321,480

 

 

42.3

%

Intangible amortization expense

 

16,896

 

 

14,634

 

15.5

%

 

67,501

 

 

59,273

 

 

13.9

%

Tax effect of intangible amortization (1)

 

(4,442

)

 

(3,848

)

15.4

%

 

(17,748

)

 

(15,585

)

 

13.9

%

Adjusted net income

$

149,431

 

$

104,517

 

43.0

%

$

507,196

 

$

365,168

 

 

38.9

%

 
Three Months Ended Twelve Months Ended
6/30/2021 6/30/2020 % Change 6/30/2021 6/30/2020 % Change
Diluted EPS, as reported

$

5.74

 

$

3.68

 

56.1

%

$

18.30

 

$

12.61

 

 

45.1

%

Intangible amortization expense

$

0.71

 

$

0.57

 

24.6

%

$

2.70

 

$

2.33

 

 

15.9

%

Tax effect of intangible amortization (1)

 

(0.19

)

 

(0.15

)

30.0

%

 

(0.71

)

 

(0.61

)

 

16.1

%

Adjusted diluted EPS

$

6.26

 

$

4.10

 

52.7

%

$

20.29

 

$

14.33

 

 

41.6

%

 
 
FY22 Guidance Range
(amounts in millions, except per share amounts) Low End High End
Net income, as reported

$

380

 

---

$

400

 

Intangible amortization expense

 

68

 

---

 

68

 

Tax effect of intangible amortization (1)

 

(18

)

---

 

(18

)

Adjusted net income

$

430

 

---

$

450

 

 
FY22 Guidance Range
Low End High End
Diluted EPS, as reported

$

15.90

 

---

$

16.74

 

Intangible amortization expense

$

2.85

 

---

$

2.85

 

Tax effect of intangible amortization (1)

 

(0.75

)

---

 

(0.75

)

Adjusted diluted EPS

$

18.00

 

---

$

18.83

 

 
(1) Calculation uses an estimated statutory tax rate of 26.3% on non-GAAP tax deductible adjustments.

Reconciliation of Net Income to Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)
(Unaudited)

The Company views Adjusted EBITDA and Adjusted EBITDA margin, both of which are defined as non-GAAP measures, as important indicators of performance, consistent with the manner in which management measures and forecasts the Company’s performance. Adjusted EBITDA is a commonly used non-GAAP measure when comparing our results with those of other companies. We define Adjusted EBITDA as GAAP net income plus net interest expense, income taxes, depreciation and amortization expense, including depreciation within direct costs, and earnout adjustments. We consider Adjusted EBITDA to be a useful metric for management and investors to evaluate and compare the ongoing operating performance of our business on a consistent basis across reporting periods, as it eliminates the effect of non-cash items such as depreciation of tangible assets, amortization of intangible assets primarily recognized in business combinations, as well as the effect of earnout gains and losses, which we do not believe are indicative of our core operating performance. Adjusted EBITDA margin is adjusted 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.

Three Months Ended Twelve Months Ended
(dollars in thousands) 6/30/2021 6/30/2020 % Change 6/30/2021 6/30/2020 % Change
Net income

$

136,977

 

$

93,731

 

46.1

%

$

457,443

 

$

321,480

 

42.3

%

Plus:
Income taxes

 

(36,742

)

 

29,498

 

-224.6

%

 

42,172

 

 

80,157

 

-47.4

%

Interest income and expense, net

 

11,815

 

 

10,447

 

13.1

%

 

39,836

 

 

56,059

 

-28.9

%

Depreciation and amortization expense, including amounts within direct costs

 

32,865

 

 

29,264

 

12.3

%

 

129,131

 

 

112,889

 

14.4

%

Earnout adjustments

 

-

 

 

-

 

 

-

 

 

3,000

 

-100.0

%

Adjusted EBITDA

$

144,915

 

$

162,940

 

-11.1

%

$

668,582

 

$

573,585

 

16.6

%

 
Three Months Ended Twelve Months Ended
(dollars in thousands) 6/30/2021 6/30/2020 % Change 6/30/2021 6/30/2020 % Change
Revenue, as reported

$

1,564,000

 

$

1,495,581

 

4.6

%

$

6,044,135

 

$

5,720,042

 

5.7

%

Adjusted EBITDA

 

144,915

 

 

162,940

 

-11.1

%

 

668,582

 

 

573,585

 

16.6

%

Adjusted EBITDA margin

 

9.3

%

 

10.9

%

 

11.1

%

 

10.0

%

Reconciliation of Net Cash Provided by Operating Activities to Net Cash Provided by Operating Activities Excluding MARPA and to Free Cash Flow
(Unaudited)

The Company defines Net cash provided by operating activities excluding MARPA as net cash provided by operating activities calculated in accordance with GAAP, adjusted to exclude cash flows from CACI’s Master Accounts Receivable Purchase Agreement (MARPA) for the sale of certain designated eligible U.S. government receivables up to a maximum amount of $200.0 million. Free cash flow is a non-GAAP liquidity measure and may not be comparable to similarly titled measures used by other companies. The Company defines Free cash flow as Net cash provided by operating activities excluding MARPA, less payments for capital expenditures. The Company uses these non-GAAP measures to assess our ability to generate cash from our business operations and plan for future operating and capital actions. We believe this measure allows investors to more easily compare current period results to prior period results and to results of our peers. Free cash flow does not represent residual cash flows available for discretionary purposes and should not be used as a substitute for cash flow measures prepared in accordance with GAAP.

Three Months Ended Twelve Months Ended
(Amounts in thousands) 6/30/2021 6/30/2020 6/30/2021 6/30/2020
Net cash provided by operating activities

$

91,699

 

$

160,880

 

$

592,215

 

$

518,705

 

Cash used (provided) by MARPA

 

7,833

 

 

(6,501

)

 

17,973

 

 

(7,473

)

Net cash provided by operating activities excluding MARPA

 

99,532

 

 

154,379

 

 

610,188

 

 

511,232

 

Capital expenditures

 

(21,856

)

 

(17,972

)

 

(73,129

)

 

(72,303

)

Free cash flow

$

77,676

 

$

136,407

 

$

537,059

 

$

438,929

 

 
 
(Amounts in millions) FY22 Guidance
Net cash provided by operating activities (1)

$

810

 

Cash used (provided) by MARPA

 

-

 

Net cash provided by operating activities excluding MARPA

 

810

 

Capital expenditures

 

(90

)

Free cash flow

$

720

 

(1) Includes estimated tax refund of $230 million related to certain tax elections, as well as payroll tax deferral repayment of approximately $45 million.

 



Contact:

Corporate Communications and Media:
Jody Brown, Executive Vice President, Public Relations
(703) 841-7801, jbrown@caci.com

Investor Relations:
Dan Leckburg, Senior Vice President, Investor Relations
(703) 841-7666, dleckburg@caci.com