CACI International Inc. (CACI) reported pro forma net income of $41.1 million or $1.51 per diluted share in its second quarter financial results of fiscal 2012, compared to $32.9 million or $1.06 per diluted share in the previous year period. This comprehensively beat the Zacks Consensus Estimate of $1.39 per share.
Revenues
Pro forma revenues came in at $973.2 million, up 12.2% year over year and 5.3% sequentially. Contract funding orders in the quarter were $605 million, rising 17% year over year but falling 62.2% sequentially.
As of December 31, 2011, total funded backlog was $2.19 billion, up 0.5% year over year but down 13.1% sequentially. Total backlog amounted to $8.0 billion at the end of December 31, 2011, rising 7.4% annually.
In terms of a customer mix, the Department of Defense accounted for 79.0% of total revenue. Federal Civilian Agencies contributed about 16.3% of total revenue. Commercial customers accounted for 4.3% of total revenue and State and Local Governments added 0.4% to total revenue.
Margins
Pro forma operating margin came in at 7.7%, up from 6.8% in the year-ago quarter and 8.2%, in the previous quarter. This was directly attributable to the 26.8% annual rise in operating income coming in at $74.7 million, evolving from direct labor growth and production efficiencies attained.
Balance Sheet and Cash Flows
The company ended the quarter with cash and cash equivalents of $24 million, down from $28.6 million at the end of the previous quarter. Net long-term debt amounted to approximately $590 million, rising from $528 million at the end of the previous quarter.
Net cash provided for operating activities during the first six months of fiscal 2012 ameliorated to $85.3 million versus $68.5 million during the first six months of fiscal 2011. During this time, cash used for capital expenditures was $7.1 million rising from $5.8 million during the first six months of fiscal 2011. Cash used for share repurchases amounted to $209.7 million during the first six months of fiscal 2012.
Outlook
The strong quarterly and overall six months’ performance of the company induced CACI to raise its 2012 guidance on the whole. The company now expects net income between $162 million - $168 million, up from the previous estimate of $157 million - $163 million.
Diluted EPS is projected to fall between $5.72 and $5.94, up from the previous guidance range of $5.55 and $5.80. Effective corporate tax rate is expected to diminish to 39.8% from its prior projection of 39.9% and overall revenue estimates have been reiterated to fall between $3,850 million and $4,050 million in fiscal 2012.
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