(Source: PRNewswire-FirstCall)
ARLINGTON, Va., April 29 /PRNewswire-FirstCall/ -- CACI International Inc , a leading professional services and information technology solutions provider to the federal government, announced results today for its third fiscal quarter and nine months ended March 31, 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.
Third Quarter Results
For the third quarter of Fiscal Year 2009 (FY09), we reported record revenue of $674.0 million, up 6.3 percent over third quarter of Fiscal Year 2008 (FY08) revenue of $634.2 million. The increase in revenue during the quarter was driven by organic growth of 5.5 percent. Organic growth for federal government revenue in the quarter was 6.7 percent. Operating income for the quarter was $45.0 million, up 3.5 percent compared with operating income of $43.5 million in the year earlier quarter. The operating margin was 6.7 percent compared with 6.9 percent in the third quarter of FY08. Income before taxes for the quarter was $39.7 million, 8.2 percent higher than what was reported in the third quarter of FY08. Our effective tax rate increased to 41.0 percent from 39.3 percent in the year earlier quarter. During the third quarter of FY09, our effective tax rate continued to be negatively impacted by non-deductible losses on assets invested in our deferred compensation plan. Net income for the third quarter was $23.4 million, up 5.1 percent compared with $22.3 million for the third quarter of FY08. Diluted earnings per share were $0.77, up 5.7 percent, compared with $0.73 per diluted share in the year earlier quarter. Cash generated by operations was $80.1 million, up 27.7 percent compared with $62.8 million in the year earlier quarter. Days sales outstanding at the end of the quarter were 61 compared with 67 days at the end of the third quarter of FY08. Earnings before interest, taxes, depreciation and amortization (EBITDA), a non-GAAP measure, were $56.7 million in the quarter compared with EBITDA of $55.8 million in the third quarter of FY08.
Third Quarter Highlights
Major highlights and accomplishments during the third quarter of FY09 include:
-- Contract funding orders totaling $743.3 million, a 5.2 percent increase over the third quarter of FY08. Funded backlog of approximately $1.6 billion, a 14 percent increase over the third quarter of FY08. -- Contract funding orders for the first nine months of FY09 totaled $2.2 billion, an increase of 19.5 percent over the $1.9 billion received in the first nine months of FY08. -- Contract awards with an estimated value of $768 million including: -- A prime position on the General Service Administration's (GSA) ten-year, multiple award Alliant program with an initial estimated value to CACI of $350 million. This follow-on award to the GSA's ANSWER and Millennia contracts positions us to increase our business throughout the federal government. -- Awards on the Strategic Services Sourcing (S3) contract vehicle with the Army totaling $240 million. Since March 2006, we have been awarded over $1.8 billion in task orders on this vehicle in support of the Army's C4ISR (command, control, communications, computers, intelligence, surveillance and reconnaissance) needs. -- A five-year, $50 million prime contract to continue our acquisition, financial, and program management assistance to the Defense Advanced Research Projects Agency (DARPA). CACI's work enables DARPA scientists and researchers to focus their critical skills on direct support for national defense. -- A five-year, $31 million prime contract under the Defense Information Systems Agency ENCORE II contract vehicle to continue management and technical support for the Acquisition Technology and Logistics component in the DoD's Office of the Undersecretary of Defense. -- Additional major awards not included in the $768 million total above: -- A prime position to support 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. This new award expands our program management and systems engineering and technical assistance (PM SETA) functional core competency in support of the program's cyber and intelligence, surveillance, and reconnaissance missions. -- A prime position on the U.S. Army's five-year, multiple award Biometrics Operations and Support Services -- Unrestricted (BOSS-U) contract with an estimated ceiling value of $500 million. This new award positions us to support the Army's Biometrics Task Force across a broad spectrum of functional areas. -- A prime position on the Army's ten-year, multiple award Program Executive Office for Simulation, Training and Instrumentation Omnibus Contract II (PEO STOC II) contract vehicle with an overall ceiling value of $17.5 billion. This new award positions us to significantly increase the size and scope of our modeling and simulation work throughout the Department of Defense (DoD) and will draw upon solutions developed through our C4ISR core competency. -- Contract awards for the first nine months of FY09 with an estimated total value of $2.6 billion, an increase of 16.2 percent over the first nine months of FY08. -- Intelligence Community revenue eight percent higher than the third quarter of FY08, representing 37 percent of our revenue for the quarter compared to 36 percent a year ago. Intelligence revenue for the first nine months of FY09 grew 26 percent, representing 38 percent of year-to-date revenue compared to 34 percent a year ago. -- CACI being named by Fortune Magazine as the Most Admired Company in Virginia and placed among Fortune's Top 5 Most Admired IT Companies worldwide. The Most Admired list is the definitive report card on corporate reputations. -- CACI Chief Technology Officer Deb Dunie being selected to chair the Technical Committee for the Armed Forces Communications and Electronics Association. Her responsibilities include developing more interactive discussion forums and advancing government and industry dialogue on issues of national importance. CEO Commentary
Commenting on the results, Paul Cofoni, CACI's President and CEO, said, "We are very pleased with our record third quarter results: revenue, net income, earnings per share, operating cash flow, and contract funding orders. Our U.S. Operations turned in another solid quarter, and our United Kingdom operations grew revenue and earnings sequentially. Our positive performance through the first three quarters of the fiscal year validates our fundamental strategy of focusing our services and solutions on the key areas of defense, intelligence, and homeland security. We expect the government to continue to rely on the valuable and proven contributions of contractors in these areas to counter the very real and dangerous external threats that still face our nation.
"Throughout our history, we have consistently positioned ourselves with high-value solutions in areas requiring the highest levels of thought leadership and IT and professional services capability. These are areas that demand the very best services and solutions. CACI's strategy is to provide customers with the best solutions while assuring American citizens of the most effective use of their hard-earned dollars. Our solutions are aligned with the administration's focus on cyber security, smart power, and IT modernization, where we expect our services to remain in high demand. The Intelligence Community is another well-funded and high-demand / high-value area that continues to provide opportunities for CACI. We are particularly proud of our ISR and document exploitation capabilities, which bring critical value to our clients.
"Over our 47-year history, we've grown with every administration and adjusted to market changes with new solutions that meet client requirements while enhancing shareholder value. Our forward indicators are strong, we are winning Tier 1 contracts at a record rate, and have a robust pipeline of opportunities. Our balance sheet, backlog, and cash flow are rock solid. CACI leads in our markets, brings value to our clients, delivers on our commitments, and builds long-term shareholder trust and value."
Nine Months FY09 Results
For the first nine months of FY09, we reported record revenue of $2.00 billion, up 13.4 percent over the first nine months of FY08 revenue of $1.77 billion. Operating income in the first nine months of FY09 was $131.5 million, up 12.9 percent, compared with $116.5 million reported in the first nine months of FY08. The operating margin was 6.6 percent for the first nine months of FY09, the same as in the year earlier period. Income before taxes for the first nine months of FY09 was $114.4 million, 17.0 percent higher than what was reported in the first nine months of FY08. The effective tax rate for the first nine months of FY09 was 41.9 percent versus 38.9 percent in the year earlier period.
