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CACI Meets Estimates in 1Q

Zacks Equity Research

CACI International Inc. (CACI) reported its net income of $35.7 million or $1.49 per diluted share in its first quarter of fiscal 2013 (ended September 30, 2012), compared to $35.1 million or $1.18 per diluted share in the previous year period and $43.4 million or $1.59 per diluted share in its fourth quarter of fiscal 2012. The results were in line with the Zacks Consensus Estimate of $1.49 per share.

The annual surge in the earnings was driven by the company’s operational efficiency.


Revenue came in at $931.2 million, up 2.1% year over year but down 1.9% sequentially. The record sales during the quarter surpassed the Zacks Consensus Estimate of $930 million. Contract funding orders in the quarter came in at $1.4 billion, decreasing 11.9% year over year but up 56.8% sequentially.

As of September 30, 2012, total funded backlog was $2.45 billion, rising 24.4% sequentially. Total backlog amounted to $8.0 billion at the end of the quarter.

In terms of a customer mix, the Department of Defense accounted for about 75.7% of total revenue. Federal Civilian Agencies contributed about 18.7% to total revenue. Commercial customers accounted for 5.2% of total revenue and State and Local Governments added 0.4% to total revenue.


Operating income came in at $64.7 million, decreasing 14.4% annually and 15.6% sequentially.

Balance Sheet and Cash Flows

The company ended the quarter with cash and cash equivalents of $48.6 million, up from $15.7 million at the end of the previous quarter. Net long-term debt amounted to approximately $671.2 million, up from $532 million at the end of the previous quarter.

In the first quarter of fiscal 2013, net cash provided by operating activities was $67.7 million versus $56.1 million in the previous year period. Cash used for capital expenditures was $5.9 million, rising from $3.1 million in the year-ago period.

Share Repurchase

The company repurchased 4 million shares with an average price of $53.72 per share during July 2012.


Management reiterated its guidance for the full year of fiscal 2013. The company expects net income to be within the range of $160 million to $167 million in the fiscal year of 2013. Revenues are projected to be between $3,800 million and $4,000 million for the full fiscal year. Effective tax rate is expected to be at 39.0% in fiscal 2013. Diluted earnings per share are also projected to lie between $6.64 and $6.93 range.

Based in Arlington, Virginia, CACI International delivers IT applications and infrastructure to improve communications and secure the integrity of information systems and networks, enhance data collection and analysis, and increase efficiency and mission effectiveness. CACI International competes primarily in the government IT services arena, its competitors are: CGI Group, Inc. (GIB), ManTech International Corporation (MANT) and Sapient Corp. (SAPE), all of whom are strong rivals with their own particular strengths.

At present we have a Neutral recommendation on CACI International. The stock currently carries a Zacks #3 Rank, which translates into a short-term rating of Hold.

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