Information technology services provider CACI International Inc. (CACI - Free Report) ended fiscal 2016 with a bang as it reported strong fourth-quarter results with healthy year-over-year increase in both earnings and revenues. GAAP earnings for the reported quarter were $43.6 million or $1.75 per share compared with $41.4 million or $1.68 per share in the prior-year quarter. The year-over-year increase in earnings was primarily driven by a significant improvement in revenues.
On a non-GAAP basis, fourth-quarter fiscal 2016 earnings were $2.35 per share, up from $2.119 in the year-earlier quarter. Adjusted earnings (excluding stock-based compensation expenses) for the reported quarter were $2.24 per share, which comprehensively beat the Zacks Consensus Estimate of $1.58. For fiscal 2016, GAAP earnings were $142.8 million or $5.76 per share, up from $126.2 million or $5.17 per share in fiscal 2015. Non-GAAP earnings for fiscal 2016 were $7.87 per share compared with $7.23 in fiscal 2015.
Quarterly revenues were up 28.7% year over year to $1,113.9 million largely due to the accretive acquisition of National Security Solutions (NSS). The reported revenues exceeded the Zacks Consensus Estimate of $1,099 million. Fiscal 2016 revenues increased to $3.7 billion from $3.3 billion in fiscal 2015 owing to positive contribution from NSS acquisition.
Other Significant Details
Contract awards more than doubled in the reported quarter to $1.6 billion, culminating in approximately 50% new business for CACI International. Contract funding orders were record high at $1.1 billion, up 30% year over year. Total backlog as of Jun 30, 2016 was $11 billion with a funded backlog of $2.3 billion.
In terms of customer mix, the Department of Defense accounted for about 64.1% of the total revenue in the reported quarter. Federal Civilian Agencies contributed about 29.2%, while Commercial and other customers accounted for 6.7% of revenues.
Operating income aggregated $81.1 million in the reported quarter compared with $75.1 million in the year-ago quarter. The increase in operating income was driven by higher revenues. Adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA) increased to $100.1 million from $91.4 million in the year-ago quarter.
Balance Sheet and Cash Flow
At fiscal-end 2016, CACI International had cash and cash equivalents of $49.1 million compared with $35.4 million at fiscal-end 2015. Long-term debt (net of current portion) totaled $1,402.1 million as of Jun 30, 2016 compared with $1,024.6 million in the prior-year period.
Net cash from operations for fiscal 2016 was $242.6 million compared with $226.9 million in the year-ago period.
Guidance Reiterated
CACI International reiterated its earlier guidance for fiscal 2017. For fiscal 2017, revenues are expected in the range of $4,050 million–$4,250 million. Net income is expected in the range of $150 million to $160 million, resulting in earnings per share in the range of $6.02–$6.43.
Moving ahead, CACI International expects to diligently focus on its operating plans to reward shareholders with attractive risk-adjusted returns. The company remains confident about its competitive position and continued ability to meet customer requirements through the delivery of innovative, affordable solutions and services.
CACI International currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the industry include CSG Systems International Inc. (CSGS - Free Report) , Forrester Research Inc. (FORR - Free Report) and Ebix Inc. , each carrying a Zacks Rank #2 (Buy).
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Information technology services provider CACI International Inc. (CACI - Free Report) ended fiscal 2016 with a bang as it reported strong fourth-quarter results with healthy year-over-year increase in both earnings and revenues. GAAP earnings for the reported quarter were $43.6 million or $1.75 per share compared with $41.4 million or $1.68 per share in the prior-year quarter. The year-over-year increase in earnings was primarily driven by a significant improvement in revenues.
On a non-GAAP basis, fourth-quarter fiscal 2016 earnings were $2.35 per share, up from $2.119 in the year-earlier quarter. Adjusted earnings (excluding stock-based compensation expenses) for the reported quarter were $2.24 per share, which comprehensively beat the Zacks Consensus Estimate of $1.58. For fiscal 2016, GAAP earnings were $142.8 million or $5.76 per share, up from $126.2 million or $5.17 per share in fiscal 2015. Non-GAAP earnings for fiscal 2016 were $7.87 per share compared with $7.23 in fiscal 2015.
Quarterly revenues were up 28.7% year over year to $1,113.9 million largely due to the accretive acquisition of National Security Solutions (NSS). The reported revenues exceeded the Zacks Consensus Estimate of $1,099 million. Fiscal 2016 revenues increased to $3.7 billion from $3.3 billion in fiscal 2015 owing to positive contribution from NSS acquisition.
Other Significant Details
Contract awards more than doubled in the reported quarter to $1.6 billion, culminating in approximately 50% new business for CACI International. Contract funding orders were record high at $1.1 billion, up 30% year over year. Total backlog as of Jun 30, 2016 was $11 billion with a funded backlog of $2.3 billion.
In terms of customer mix, the Department of Defense accounted for about 64.1% of the total revenue in the reported quarter. Federal Civilian Agencies contributed about 29.2%, while Commercial and other customers accounted for 6.7% of revenues.
Operating income aggregated $81.1 million in the reported quarter compared with $75.1 million in the year-ago quarter. The increase in operating income was driven by higher revenues. Adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA) increased to $100.1 million from $91.4 million in the year-ago quarter.
Balance Sheet and Cash Flow
At fiscal-end 2016, CACI International had cash and cash equivalents of $49.1 million compared with $35.4 million at fiscal-end 2015. Long-term debt (net of current portion) totaled $1,402.1 million as of Jun 30, 2016 compared with $1,024.6 million in the prior-year period.
Net cash from operations for fiscal 2016 was $242.6 million compared with $226.9 million in the year-ago period.
Guidance Reiterated
CACI International reiterated its earlier guidance for fiscal 2017. For fiscal 2017, revenues are expected in the range of $4,050 million–$4,250 million. Net income is expected in the range of $150 million to $160 million, resulting in earnings per share in the range of $6.02–$6.43.
Moving ahead, CACI International expects to diligently focus on its operating plans to reward shareholders with attractive risk-adjusted returns. The company remains confident about its competitive position and continued ability to meet customer requirements through the delivery of innovative, affordable solutions and services.
CACI International currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the industry include CSG Systems International Inc. (CSGS - Free Report) , Forrester Research Inc. (FORR - Free Report) and Ebix Inc. , each carrying a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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