CACI International (CACI)

Q4 2012 Earnings Call

August 16, 2012 8:30 am ET


David L. Dragics - Senior Vice President of Investor Relations

Daniel D. Allen - Chief Executive Officer and President

Thomas A. Mutryn - Chief Financial Officer, Executive Vice President and Treasurer

John S. Mengucci - Chief Operating Officer and President of U.S. Operations


Michael S. Lewis - Lazard Capital Markets LLC, Research Division

Edward S. Caso - Wells Fargo Securities, LLC, Research Division

Robert Spingarn - Crédit Suisse AG, Research Division

Joseph Nadol - JP Morgan Chase & Co, Research Division

Cai Von Rumohr - Cowen and Company, LLC, Research Division

Matthew Lipton - Morgan Stanley, Research Division

Brian Kinstlinger - Sidoti & Company, LLC

Jason Kupferberg - Jefferies & Company, Inc., Research Division

Tobey Sommer - SunTrust Robinson Humphrey, Inc., Research Division

Mark C. Jordan - Noble Financial Group, Inc., Research Division

William R. Loomis - Stifel, Nicolaus & Co., Inc., Research Division



Ladies and gentlemen, thank you for standing by. Welcome to the CACI International Fourth Quarter Full Year 2012 Conference Call. Today's call is being recorded. [Operator Instructions] At this time, I would like to turn the conference call over to Dave Dragics, Senior Vice President of Investor Relations for CACI International. Please go ahead, sir.

David L. Dragics

Thanks, Allie, and good morning, ladies and gentlemen. I'm Dave Dragics, Senior Vice President of Investor Relations at CACI International, and we're very pleased that you're able to participate with us today.

Now as is our practice, we're providing presentation slides, so let's move to Slide #2 and about our written, oral disclosures and commentary. There will be statements in this call that do not address historical fact and, as such, constitute forward-looking statements under current law. These statements reflect our views as of today and are subject to important factors that could cause our actual results to differ materially from anticipated results. Now factors that could cause our actual results to differ materially from those we anticipate are listed at the bottom of last evening's earnings release and are described in the company's Securities and Exchange Commission filings. And our Safe Harbor statement is included on this exhibit and should be incorporated as part of any transcript of this call.

I'd also like to point out that our presentation today will include discussion of non-GAAP financial measures, and these non-GAAP measures should not be considered in isolation or as a substitute for performance measures prepared in accordance with GAAP.

Now let's go to the next slide, please. And to open up our discussion this morning, here's Dan Allen, President and Chief Executive Officer of CACI International. Dan?

Daniel D. Allen

Thanks, Dave, and good morning, everyone. Joining me on the call this morning are Tom Mutryn, Chief Financial Officer; John Mengucci, Chief Operating Officer and President of U.S. Operations; and Greg Bradford, Chief Executive of CACI Limited in the U.K.

Let's go to Slide 4, please. Yesterday, CACI announced another quarter of solid performance, capping off a fiscal year that saw us achieve record levels in revenue, net income, earnings per share and cash flow from operations. We also achieved record awards and funding orders in fiscal year '12. Tom and John will discuss the details of these results shortly. But first, I would like to take a few minutes to share my perspective of CACI, our top priorities and how we expect them to drive shareholder value in the future.

As you know, I joined CACI about 18 months ago and became CEO on July 1. I knew when I joined the company that CACI was an agile, high-performing company with a reputation for focusing on client success. What has impressed me even more in my time here is just how broad our client base is and the range of systems and services that we are providing our clients today.

There are several important and differentiating elements that I believe will drive our future performance, and I would like to highlight a few of them. First, we have a large and established client base providing a steady stream of new opportunities. Because we offer a broad range of information solutions, service and product to these clients, we maintain a large addressable market. We are executing on roughly 2,200 ongoing contracts or task orders. Our new business win rate and high recompete win rate allow us to continuously refresh our current program and add new business across our platform. This large addressable market provides us room to maneuver as we see opportunities while the diversity of our clients and contracts minimizes the risk associated with any individual program.

Our record of program performance is another major differentiator for CACI. As you have heard us say many times: Once we win the business, we execute on it extremely well. This commitment to operational excellence leads to trusted client relationships and a consistently high recompete win rate that protects our base of existing business. Our ability to manage complex program successfully is and will remain one of the keys to our success.

And finally, I believe CACI's culture is a real differentiator and an important contributor to our performance. Our employees uphold the highest levels of ethics and integrity. We streamline processes wherever possible to ensure we operate efficiently and effectively. Even as the company has grown, we have retained our flexibility and responsiveness to our clients. We maintain an entrepreneurial spirit that focuses on understanding our clients' needs and quickly adapting to meet their evolving missions. We empower our program managers and our frontline employees to make decisions that affect program performance and customer satisfaction because they are the ones who know best how to address client issues. This decentralized approach creates an institutional agility that I believe sets us apart.

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