CACI Reports Guidance for Its Fiscal Year 2015

CACI Reports Guidance for Its Fiscal Year 2015

Professional Services Close-Up

30 June 2014

CACI International Inc. has issued its guidance for its Fiscal Year 2015 (FY15), which begins July 1, and reiterated its Fiscal Year 2014 (FY14) guidance.

Guidance for Fiscal Year 2015

In its release on June 25, the Company noted that for FY15 it expects revenue to be between $3.3 billion and $3.6 billion and net income to be between $125 million and $135 million. The Company expects that operating cash flow for the year will be approximately $200 million.

(In millions except for tax rate and earnings per share)

Fiscal Year 2015Guidance Revenue $3,300 – $3,600 Net income attributable to CACI $125 – $135 Effective corporate tax rate 38.5 percent Diluted earnings per share $5.10 – $5.51 Diluted weighted average shares 24.5

Commentary

Ken Asbury, CACI’s President and CEO said, “In FY14 we positioned CACI for long-term success by strengthening business development and enhancing our unique, high-end skills and capabilities, most notably with the acquisition of Six3 Systems. While we expect market uncertainties to persist in FY15, we believe that our differentiated position, operational excellence, and demonstrated ability to win contract awards will help offset the impact of constrained federal spending.

“Consequently, as we look ahead to FY15, we are well-postured to support our customers’ critical missions and priorities with innovative solutions and services, delivering excellence in all we do. We will also continue to position CACI for success in those market areas where we see viable growth opportunities. We believe that these actions will further enhance CACI’s competitive advantage and create long-term shareholder value.”

FY15 Guidance

Following are the key factors related to our FY15 guidance:

-We expect that uncertainty with regard to federal spending will continue; that there is more clarity with regard to U.S. forces in Afghanistan; and that the rate of change in run-rates on professional services contracts will slow.

-We anticipate a seasonal decrease of quarterly revenue between the fourth quarter of FY14 and the first quarter of our FY15 similar to prior years.

-We expect that our direct labor costs will be between 4 and 7 percent greater than what we expect in FY14. Other directs costs will be 4 to 7 percent less than what we expect in FY14.

-We anticipate that our indirect costs and selling expenses will be 2 to 4 percent higher than FY14.

-Depreciation and amortization is expected to be approximately $67 million.

-Our operating margin is expected to be about even with FY14.

-Net interest expense is expected to be approximately $41 million.

-We expect capital expenditures will total approximately $15 to $20 million.

FY14 Guidance Reiterated

(In millions except for tax rate and earnings per share)

FY 2014Guidance Revenue $3,500 – $3,600 Net income attributable to CACI $130 – $140 Effective corporate tax rate 38 percent Diluted earnings per share $5.12 – $5.51 Diluted weighted average shares 25.4

CACI provides information solutions and services in support of national security missions and government transformation for Intelligence, Defense, and Federal Civilian customers.

More information and complete details:

caci.com

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