CACI Reports Results for Its Fiscal 2024 First Quarter and Raises Fiscal Year Revenue, Adjusted Diluted EPS, and Free Cash Flow Guidance

Revenues of $1.9 billion

Net income of $86.0 million and diluted EPS of $3.76

Adjusted net income of $99.7 million and adjusted diluted EPS of $4.36

Contract awards of $3.1 billion and book-to-bill of 1.7x

CACI International Inc (NYSE:CACI), a leading provider of expertise and technology to government customers, announced results today for its fiscal first quarter ended September 30, 2023.

"Our first quarter results represent a great start to fiscal year 2024 and underscore the exceptional execution of our business," said John Mengucci, CACI President and Chief Executive Officer. "The business is performing well and ahead of our expectations at this point in the year. We are strategically positioned in the right markets with differentiated capabilities. As a result, we continue to win high-value, enduring work that supports our long-term value creation goals of delivering top-line growth, strong profitability, and robust free cash flow. Our financial strength enables us to opportunistically deploy capital, most recently by repurchasing an additional $150 million of our stock representing about two percent of our outstanding shares. Given our year-to-date performance and strong position, we are raising our fiscal year 2024 revenue, adjusted EPS, and free cash flow guidance."

First Quarter Results

Revenues in the first quarter of fiscal year 2024 increased 15 percent year-over-year, driven by organic growth, which included approximately $100 million of higher-than-expected material purchases by our customers. The higher material purchases contributed approximately six points of revenue growth with no material contribution to profit. The increase in income from operations was driven by higher revenues and gross profit. Diluted earnings per share and adjusted diluted earnings per share were unchanged year-over-year, with higher income from operations, lower tax provision, and share repurchases offset by higher interest expense. Cash from operations, excluding MARPA was influenced primarily by higher revenue and the associated temporary effect on working capital.

First Quarter Contract Awards

Contract awards in the first quarter totaled $3.1 billion, with over 50 percent for new business to CACI. Awards exclude ceiling values of multi-award, indefinite delivery, indefinite quantity (IDIQ) contracts. Some notable awards during the quarter were:

• CACI was awarded an eight-year, single-award technology task order valued at up to $1.3 billion to provide global enterprise network modernization to an Intelligence Community customer. CACI recognized approximately $750 million of award and backlog value based on current requirements in its first quarter of fiscal year 2024.

• CACI was awarded a five-year expertise contract, with a maximum ceiling value of $917 million, to continue to provide complete life cycle software and systems engineering to improve battlespace awareness for the U.S. Air Force. This contract award significantly expands CACI's long-standing work. Under the contract, CACI will implement Agile and adaptable processes to develop software and data analysis capabilities to advance and modernize command, control, communications, computers, cyber, intelligence, surveillance, and reconnaissance (C5ISR) programs. These capabilities will enhance information dissemination and decision-making across the Air Force and intelligence community, improve information security, and meet program mission objectives.

• CACI was awarded a five-year expertise task order worth up to $420 million to continue to provide program management, engineering, administration, procurement, logistics, mechanical, and technical support to the Department of Defense (DoD).

• CACI was awarded a five-year technology task order valued at up to $219 million to provide cyber defense and C5ISR support to the DoD.

• CACI was awarded a four-year single-award, IDIQ expertise contract worth up to $150 million to continue its support of spaceflight systems, simulation, and software for NASA Johnson Space Center (JSC). The program provides advanced aerospace engineering for crewed spacecraft systems, development of simulation and Virtual Reality (VR) applications, and software in support of human space flight. This award builds on more than three decades of CACI's dedicated support for JSC's mission.

Total backlog as of September 30, 2023 was $26.7 billion compared with $24.9 billion a year ago, an increase of 7 percent. Funded backlog as of September 30, 2023 was $4.2 billion compared with $3.7 billion a year ago, an increase of 14 percent.

Additional Highlights

• CACI appointed Stanton D. Sloane to its Board of Directors where he will serve as an independent director on the Board. Sloane began his career in 1984 with General Electric Aerospace, which subsequently merged to become a business of Martin Marietta, then Lockheed Martin, in the 1990s. He held a variety of executive roles including engineering, program management, and business development. In 2004, he was promoted to Executive Vice President, Integrated Systems and Solutions, one of the major divisions of Lockheed Martin.

• CACI was named to Forbes' Best Employers for Women 2023 for the second consecutive year. Separately, CACI was named a Top Workplace in San Antonio by employee engagement technology partner Energage, LLC. for a fifth consecutive year.

• CACI announced a new, multi-year Strategic Collaboration Agreement (SCA) with Amazon Web Services (AWS) to further advance the company's application of AWS services as a trusted provider of secure, agile, innovative solutions that can be rapidly adopted by customers in the U.S. government. CACI will build on its successful Agile-at-scale delivery execution model by applying a similar approach to enhance and scale cloud adoption through this SCA.

Fiscal Year 2024 Guidance

The table below summarizes our fiscal year 2024 guidance and represents our views as of October 25, 2023. Our revenue guidance now reflects approximately $200 million of higher-than-expected material purchases by our customers, split evenly between the first and second quarters of fiscal year 2024. This revenue has no material contribution to profit. Our guidance also now reflects lower diluted weighted average shares due to the effect of the share repurchases made during the first quarter. Higher free cash flow reflects first quarter results and confidence in our expectations for the year.

Conference Call Information

We have scheduled a conference call for 8:00 AM Eastern Time Thursday, October 26, 2023 during which members of our senior management will be making a brief presentation focusing on first quarter 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

At CACI International Inc (NYSE:CACI), our 23,000 talented and dynamic employees are ever vigilant in delivering distinctive expertise and differentiated technology to meet our customers' greatest challenges in national security and government modernization. We are a company of good character, relentless innovation, and long-standing excellence. Our culture drives our success and earns us recognition as a Fortune World's Most Admired Company. CACI is a member of the Fortune 1000 Largest Companies, the Russell 1000 Index, and the S&P MidCap 400 Index. For more information, 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.

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 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 Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) (Unaudited)

The Company views EBITDA and 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. EBITDA is a commonly used non-GAAP measure when comparing our results with those of other companies. We define EBITDA as GAAP net income plus net interest expense, income taxes, and depreciation and amortization expense (including depreciation within direct costs). We consider 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, which we do not believe are indicative of our operating performance. EBITDA margin is 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.

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, a non-GAAP measure, 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 these measures allow 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.

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