CACI International Inc (NYSE: CACI), a leading information solutions and services provider to the federal government, announced results today for its first fiscal quarter ended September 30, 2013. CEO Commentary and Outlook Ken Asbury, CACI’s President and CEO, said, “Our performance in the first quarter is in line with our expectations and demonstrates our ability to adapt to the changing conditions in our marketplace, which continues to be impacted by uncertainty surrounding budgetary constraints and sequestration. We continued implementing our three-part growth strategy by winning a significant amount of business and securing solid contract funding, both at levels comparable to last year; driving operational excellence; and executing on the first priority for the deployment of our capital, our mergers and acquisition program, culminating in the announcement in early October of our intent to purchase Six3 Systems, Inc. Our progress in the quarter gives us the confidence to reiterate our FY14 annual guidance. “We expect that the acquisition of Six3 Systems will have a positive impact on the balance of our FY14 and further differentiate CACI in our key market areas of cyber, C4ISR, and intelligence. The addition of Six3 Systems will further position CACI as a leader in digital signals processing and innovative cyber solutions for our national security customers.” First Quarter Results
(in millions except per-share data)
Net income attributable to CACI
Diluted earnings per share
Revenue for the first quarter of Fiscal Year 2014 (FY14) decreased 7.2 percent compared to the first quarter of Fiscal Year 2013 (FY13). The decrease in revenue in the first quarter of FY14 was driven primarily by the as expected reduction of material purchases and subcontract labor resulting from the drawdown in Southwest Asia and federal government budget-related reduction activities. The decrease in operating income in the quarter was due to the as expected $7.0 million year-over-year first quarter decline on a fixed-price contract, and $1.7 million of acquisition-related expenses for Six3 Systems, Inc., partially offset by cost reduction actions initiated in FY13. The fixed-price contract is expected to generate a normal level of profitability over its life. Net income attributable to CACI in the first quarter was $33.0 million, or $1.33 diluted earnings per share, a decrease of 7.6 percent from net income attributable to CACI of $35.7 million, or $1.49 diluted earnings per share, for the first quarter of FY13. The greater decrease in diluted earnings per share is due to the dilutive effect of our convertible notes, which mature in May 2014. Net cash provided by operations in the quarter was $27.3 million.