CACI International has announced its third fiscal quarter ended March 31, 2020, noting revenue of $1.5 billion, net income of $80.6 million, robust cash flow from operations and contract awards of $1.4 billion, the company reported on Thursday.
John Mengucci, CACI’s president and CEO, and 2020 Wash100 Award recipient, said, “As our nation navigates the COVID-19 pandemic, CACI is focused on taking all necessary actions to ensure the health and safety of our employees, to continue our unwavering commitment to our customers, to continue to operate the company in a fiscally responsible manner, and to support the communities in which we work and live.”
CACI has estimated the impact from COVID-19 in the third quarter was approximately $10 million of revenue, $6 million of operating income and $4.5 million of net income, driven by CACI employees and subcontractors unable to access facilities due to COVID-19 and who could not telework.
However, CACI’s business remains operationally and financially resilient. The company’s balance sheet has noted appropriate debt levels at 2.8 times its twelve-months EBITDA, and has generated strong cash flow.
Contract awards in Q3 FY20 totaled $1.4 billion. Approximately 50 percent of contract award value is for new business to CACI, excluding ceiling values of multi-award, indefinite delivery, indefinite quantity (IDIQ) contracts.
CACI noted a six-year, single-award task order, with a ceiling value of nearly $249 million, to provide mission expertise to U.S. Africa Command (AFRICOM) for operations, planning, and training support, as well as a five-year, single-award task order, awarded under the SeaPort-NxG contract vehicle, with a ceiling value of more than $83 million by the U.S. Navy.
In addition, the company secured a prime position on a multiple-award, indefinite delivery/indefinite quantity contract, with a ceiling value of $249 million, by the Naval Sea Systems Command, to provide mission expertise related to analyses and initiatives that improve effectiveness, efficiency, and affordability in ship design, manufacturing, and lifecycle support.
The company was also awarded a five-year, six-month, if all options are exercised, single award, indefinite-delivery/indefinite-quantity contract, with a ceiling value of more than $199 million, to provide the U.S. Navy with mission expertise to support special operations communications systems, satellite communications and network support services.
CACI also commented on the appointment of Susan Gordon to the company’s Board of Directors. Gordon has served in senior leadership positions across numerous intelligence organizations. She has brought more than 30 years of leadership across a broad spectrum of complex issues, most notably in the development of innovative technology and transformative outcomes for the Intelligence Community.
The company has also named Daniel Walsh, who most recently served as White House Deputy Chief of Staff, a Corporate Strategic Advisor and Senior Vice President to support the development of CACI's national defense and homeland security business strategy. Walsh will help to enhance CACI's position in the national security market and help to expand key client relationships.
CACI has been recognized for its achievements, commenting on two notable awards. The company was honored by The Global M&A Network with two awards for the successful acquisition of LGS Innovations. Fortune magazine recognized CACI as one of the World's Most Admired Companies for 2020.
“Our third quarter financial results were strong with robust revenue growth, strong profitability, healthy cash flow, and high levels of contract awards. We are well-positioned in a large addressable market, serving stable government customers with enduring national security priorities under long-term contracts. We remain confident in delivering on our commitments of organic growth, margin expansion, and creating enduring shareholder value,” Mengucci continued.
CACI’s 23,000 talented employees are vigilant in providing the unique expertise and distinctive technology that address our customers’ greatest enterprise and mission challenges. Our culture of good character, innovation, and excellence drives our success and earns us recognition as a Fortune World’s Most Admired Company. As a member of the Fortune 1000 Largest Companies, the Russell 1000 Index, and the S&P MidCap 400 Index, we consistently deliver strong shareholder value.