Caci International Inc 10-Q, filed Apr 28, 2022

Caci International Inc (CACI)

10-Q 2022-04-28 For: 2022-03-31

Added on April 12, 2026

About this 10-Q

Caci International Inc filed this 10-Q on April 28, 2022, covering the quarter ended March 31, 2022.

Headline figures

Quarter ended March 31, 2022, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $1.58B; up 2.1% from $1.55B a year earlier
Net income: $95.42M; down 20.7% from net income of $120.34M a year earlier
Diluted EPS: $4.04; down 15.5% from $4.78 a year earlier

Search and read filings like this one from Claude or ChatGPT with the SEC filings MCP server →


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock	CACI	New York Stock Exchange

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

		PAGE
PART I:	FINANCIAL INFORMATION

Item 1.	Financial Statements (Unaudited)

	Condensed Consolidated Statements of Operations	3

	Condensed Consolidated Statements of Comprehensive Income	4

	Condensed Consolidated Balance Sheets	5

	Condensed Consolidated Statements of Cash Flows	6

	Condensed Consolidated Statements of Shareholder’s Equity	7

	Notes to Condensed Consolidated Financial Statements	8

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	17

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	22

Item 4.	Controls and Procedures	23


PART II:	OTHER INFORMATION

Item 1.	Legal Proceedings	24

Item 1A.	Risk Factors	26

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	26

Item 3.	Defaults Upon Senior Securities	26

Item 4.	Mine Safety Disclosures	26

Item 5.	Other Information	26

Item 6.	Exhibits	27

	Signatures	28

	Three Months Ended				Nine Months Ended
	March 31,				March 31,
	2022		2021		2022		2021
Revenues	$	1,583,980	$	1,551,918	$	4,560,656	$	4,480,135
Costs of revenues:
Direct costs		1,022,181		1,000,235		2,970,370		2,887,300
Indirect costs and selling expenses		402,227		369,015		1,114,310		1,071,826
Depreciation and amortization		34,216		31,230		99,484		93,608
Total costs of revenues		1,458,624		1,400,480		4,184,164		4,052,734
Income from operations		125,356		151,438		376,492		427,401
Interest expense and other, net		9,084		8,954		30,491		28,021
Income before income taxes		116,272		142,484		346,001		399,380
Income taxes		20,855		22,140		72,176		78,914
Net income	$	95,417	$	120,344	$	273,825	$	320,466
Basic earnings per share	$	4.08	$	4.83	$	11.67	$	12.81
Diluted earnings per share	$	4.04	$	4.78	$	11.56	$	12.66
Weighted-average basic shares outstanding		23,409		24,935		23,457		25,026
Weighted-average diluted shares outstanding		23,616		25,166		23,687		25,307

	Three Months Ended					Nine Months Ended
	March 31,					March 31,
	2022			2021		2022			2021
Net income	$	95,417		$	120,344	$	273,825		$	320,466
Other comprehensive income (loss):
Foreign currency translation adjustment		(5,087	)		440		(11,274	)		21,946
Change in fair value of interest rate swap agreements, net of tax		17,361			6,467		24,999			11,363
Other comprehensive income, net of tax		12,274			6,907		13,725			33,309
Comprehensive income	$	107,691		$	127,251	$	287,550		$	353,775

	March 31,			June 30,
	2022			2021
ASSETS
Current assets:
Cash and cash equivalents	$	125,074		$	88,031
Accounts receivable, net		857,181			879,851
Prepaid expenses and other current assets		210,988			363,294
Total current assets		1,193,243			1,331,176
Goodwill		4,069,954			3,632,578
Intangible assets, net		601,464			476,106
Property, plant and equipment, net		187,363			190,444
Operating lease right-of-use assets		332,844			356,887
Supplemental retirement savings plan assets		100,298			102,984
Accounts receivable, long-term		11,134			12,159
Other long-term assets		80,449			70,038
Total assets	$	6,576,749		$	6,172,372
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Current portion of long-term debt	$	30,625		$	46,920
Accounts payable		218,026			148,636
Accrued compensation and benefits		377,456			409,275
Other accrued expenses and current liabilities		301,335			279,970
Total current liabilities		927,442			884,801
Long-term debt, net of current portion		1,823,240			1,688,919
Supplemental retirement savings plan obligations, net of current portion		104,644			104,490
Deferred income taxes		350,309			327,230
Operating lease liabilities, noncurrent		332,338			363,302
Other long-term liabilities		77,890			138,352
Total liabilities	$	3,615,863		$	3,507,094
COMMITMENTS AND CONTINGENCIES
Shareholders’ equity:
Preferred stock $0.10 par value, 10,000 shares authorized, no shares issued or outstanding		—			—
Common stock $0.10 par value, 80,000 shares authorized; 42,817 shares issued and 23,413 outstanding at March 31, 2022 and 42,676 shares issued and 23,554 outstanding at June 30, 2021		4,282			4,268
Additional paid-in capital		563,452			484,260
Retained earnings		3,462,912			3,189,087
Accumulated other comprehensive loss		(22,566	)		(36,291	)
Treasury stock, at cost (19,404 and 19,122 shares, respectively)		(1,047,329	)		(976,181	)
Total CACI shareholders’ equity		2,960,751			2,665,143
Noncontrolling interest		135			135
Total shareholders’ equity		2,960,886			2,665,278
Total liabilities and shareholders’ equity	$	6,576,749		$	6,172,372

	Common Stock Shares Amount				Additional Paid-in Capital			Retained Earnings		Accumulated Other Comprehensive Income (Loss)			Treasury Stock Shares Amount						Total CACI Shareholders’ Equity			Noncontrolling Interest		Total Shareholders’ Equity
Balance at December 31, 2021		42,810	$	4,281	$	555,968		$	3,367,495	$	(34,840	)		19,404		$	(1,047,329	)	$	2,845,575		$	135	$	2,845,710
Net income		—		—		—			95,417		—			—			—			95,417			—		95,417
Stock-based compensation expense		—		—		8,387			—		—			—			—			8,387			—		8,387
Tax withholdings on restricted share vestings		7		1		(773	)		—		—			—			—			(772	)		—		(772	)
Other comprehensive income, net of tax		—		—		—			—		12,274			—			—			12,274			—		12,274
Repurchases of common stock		—		—		(130	)		—		—			9			(2,176	)		(2,306	)		—		(2,306	)
Treasury stock issued under stock purchase plans		—		—		—			—		—			(9	)		2,176			2,176			—		2,176
Balance at March 31, 2022		42,817	$	4,282	$	563,452		$	3,462,912	$	(22,566	)		19,404		$	(1,047,329	)	$	2,960,751		$	135	$	2,960,886

Balance at December 31, 2020		42,663	$	4,266	$	570,176		$	2,931,766	$	(45,883	)		17,432		$	(576,181	)	$	2,884,144		$	135	$	2,884,279
Net income		—		—		—			120,344		—			—			—			120,344			—		120,344
Stock-based compensation expense		—		—		8,800			—		—			—			—			8,800			—		8,800
Tax withholdings on restricted share vestings		9		1		(905	)		—		—			—			—			(904	)		—		(904	)
Other comprehensive income, net of tax		—		—		—			—		6,907			—			—			6,907			—		6,907
Repurchases of common stock		—		—		(100,032	)		—		—			1,699			(402,177	)		(502,209	)		—		(502,209	)
Treasury stock issued under stock purchase plans		—		—		—			—		—			(9	)		2,177			2,177			—		2,177
Balance at March 31, 2021		42,672	$	4,267	$	478,039		$	3,052,110	$	(38,976	)		19,122		$	(976,181	)	$	2,519,259		$	135	$	2,519,394

Balance at June 30, 2021		42,676	$	4,268	$	484,260		$	3,189,087	$	(36,291	)		19,122		$	(976,181	)	$	2,665,143		$	135	$	2,665,278
Net income		—		—		—			273,825		—			—			—			273,825			—		273,825
Stock-based compensation expense		—		—		23,085			—		—			—			—			23,085			—		23,085
Tax withholdings on restricted share vestings		141		14		(14,585	)		—		—			—			—			(14,571	)		—		(14,571	)
Other comprehensive income, net of tax		—		—		—			—		13,725			—			—			13,725			—		13,725
Repurchases of common stock		—		—		70,631			—		—			310			(77,932	)		(7,301	)		—		(7,301	)
Treasury stock issued under stock purchase plans		—		—		61			—		—			(28	)		6,784			6,845			—		6,845
Balance at March 31, 2022		42,817	$	4,282	$	563,452		$	3,462,912	$	(22,566	)		19,404		$	(1,047,329	)	$	2,960,751		$	135	$	2,960,886

Balance at June 30, 2020		42,525	$	4,253	$	573,744		$	2,731,644	$	(72,285	)		17,432		$	(576,181	)	$	2,661,175		$	135	$	2,661,310
Net income		—		—		—			320,466		—			—			—			320,466			—		320,466
Stock-based compensation expense		—		—		23,841			—		—			—			—			23,841			—		23,841
Tax withholdings on restricted share vestings		147		14		(19,500	)		—		—			—			—			(19,486	)		—		(19,486	)
Other comprehensive income, net of tax		—		—		—			—		33,309			—			—			33,309			—		33,309
Repurchases of common stock		—		—		(100,065	)		—		—			1,721			(406,564	)		(506,629	)		—		(506,629	)
Treasury stock issued under stock purchase plans		—		—		19			—		—			(31	)		6,564			6,583			—		6,583
Balance at March 31, 2021		42,672	$	4,267	$	478,039		$	3,052,110	$	(38,976	)		19,122		$	(976,181	)	$	2,519,259		$	135	$	2,519,394

	March 31,			June 30,
	2022 (1)			2021
Intangible assets:
Customer contracts and related customer relationships	$	658,475		$	601,516
Acquired technologies		280,358			198,273
Intangible assets		938,833			799,789
Less accumulated amortization:
Customer contracts and related customer relationships		(266,260	)		(276,498	)
Acquired technologies		(71,109	)		(47,185	)
Less accumulated amortization		(337,369	)		(323,683	)
Total intangible assets, net	$	601,464		$	476,106

Fiscal year ending June 30,	Amount
2022 (remainder of year)	$	19,209
2023		75,506
2024		72,035
2025		67,872
2026		60,242
2027 and thereafter		306,600
	$	601,464

	Domestic			International			Total
Balance at June 30, 2021	$	3,491,747		$	140,831		$	3,632,578
Goodwill acquired (1)		444,648			—			444,648
Foreign currency translation		(41	)		(7,231	)		(7,272	)
Balance at March 31, 2022	$	3,936,354		$	133,600		$	4,069,954

	Three Months Ended						Nine Months Ended
	March 31, 2022						March 31, 2022
	Domestic		International		Total		Domestic		International		Total
Cost-plus-fee	$	889,624	$	—	$	889,624	$	2,672,695	$	—	$	2,672,695
Fixed-price		468,116		35,058		503,174		1,242,601		101,568		1,344,169
Time-and-materials		175,140		16,042		191,182		499,556		44,236		543,792
Total	$	1,532,880	$	51,100	$	1,583,980	$	4,414,852	$	145,804	$	4,560,656

	Three Months Ended						Nine Months Ended
	March 31, 2021						March 31, 2021
	Domestic		International		Total		Domestic		International		Total
Cost-plus-fee	$	905,774	$	—	$	905,774	$	2,572,967	$	—	$	2,572,967
Fixed-price		424,580		32,519		457,099		1,245,278		86,456		1,331,734
Time-and-materials		174,683		14,362		189,045		532,039		43,395		575,434
Total	$	1,505,037	$	46,881	$	1,551,918	$	4,350,284	$	129,851	$	4,480,135

		March 31,			June 30,
Description of Contract Related Balance	Financial Statement Classification	2022			2021
Billed and billable receivables	Accounts receivable, net	$	720,032		$	763,921
Contract assets – current unbilled receivables	Accounts receivable, net		137,149			115,930
Contract assets – current costs to obtain	Prepaid expenses and other current assets		4,907			4,144
Contract assets – noncurrent unbilled receivables	Accounts receivable, long-term		11,134			12,159
Contract assets – noncurrent costs to obtain	Other long-term assets		10,925			9,584
Contract liabilities – current deferred revenue and other contract liabilities	Other accrued expenses and current liabilities		(104,730	)		(70,907	)
Contract liabilities – noncurrent deferred revenue and other contract liabilities	Other long-term liabilities		(7,906	)		(6,837	)

	As of and for the Nine Months Ended
	March 31,
	2022			2021
Beginning balance:	$	182,027		$	200,000
Sales of receivables		2,041,215			2,048,585
Cash collections		(2,065,575	)		(2,058,725	)
Outstanding balance sold to Purchaser: (1)		157,667			189,860
Cash collected, not remitted to Purchaser (2)		(17,491	)		(76,388	)
Remaining sold receivables	$	140,176		$	113,472

Twelve months ending March 31,
2023	$	30,625
2024		38,281
2025		61,250
2026		61,250
2027		1,672,938
Principal amount of long-term debt		1,864,344
Less unamortized discounts and debt issuance costs		(10,479	)
Total long-term debt	$	1,853,865

	Nine Months Ended
	March 31,
	2022			2021
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	273,825		$	320,466
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		99,484			93,608
Amortization of deferred financing costs		1,712			1,743
Loss on extinguishment of debt		891			—
Non-cash lease expense		51,449			57,800
Stock-based compensation expense		23,085			23,841
Deferred income taxes		2,813			(585	)
Changes in operating assets and liabilities, net of effect of business acquisitions:
Accounts receivable, net		66,953			(18,826	)
Prepaid expenses and other assets		(27,227	)		(27,068	)
Accounts payable and other accrued expenses		23,056			27,933
Accrued compensation and benefits		(84,466	)		41,691
Income taxes payable and receivable		201,112			10,102
Operating lease liabilities		(54,575	)		(55,274	)
Long-term liabilities		14,901			25,085
Net cash provided by operating activities		593,013			500,516
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures		(38,742	)		(51,273	)
Acquisition of businesses, net of cash acquired		(615,769	)		(355,452	)
Other		923			2,744
Net cash used in investing activities		(653,588	)		(403,981	)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowings under bank credit facilities		2,087,095			2,478,500
Principal payments made under bank credit facilities		(1,965,386	)		(2,062,690	)
Payment of financing costs under bank credit facilities		(6,286	)		—
Proceeds from employee stock purchase plans		7,398			6,840
Repurchases of common stock		(7,301	)		(506,629	)
Payment of taxes for equity transactions		(14,685	)		(19,567	)
Net cash provided by (used in) financing activities		100,835			(103,546	)
Effect of exchange rate changes on cash and cash equivalents		(3,217	)		5,366
Net change in cash and cash equivalents		37,043			(1,645	)
Cash and cash equivalents at beginning of period		88,031			107,236
Cash and cash equivalents at end of period	$	125,074		$	105,591
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid (refunds received) during the period for income taxes	$	(146,985	)	$	48,855

	March 31,		June 30,
	2022		2021
Materials, purchased parts and supplies	$	55,050	$	52,615
Work in process		16,307		11,353
Finished goods		26,324		15,728
Total	$	97,681	$	79,696

			March 31,		June 30,
	Financial Statement	Fair Value	2022		2021
Description of Financial Instrument	Classification	Hierarchy	Fair Value
Interest rate swap agreements	Other long-term assets	Level 2	$	9,112	$	—
Interest rate swap agreements	Other accrued expenses and current liabilities	Level 2	$	390	$	1,028
Interest rate swap agreements	Other long-term liabilities	Level 2	$	671	$	24,838

	Dollar Amount								Dollar Amount
	Three Months Ended								Nine Months Ended
	March 31,				Change				March 31,				Change
	2022		2021		Dollar			Percent	2022		2021		Dollar			Percent
Revenues	$	1,583,980	$	1,551,918	$	32,062		2.1%	$	4,560,656	$	4,480,135	$	80,521		1.8%
Costs of revenues:
Direct costs		1,022,181		1,000,235		21,946		2.2%		2,970,370		2,887,300		83,070		2.9%
Indirect costs and selling expenses		402,227		369,015		33,212		9.0%		1,114,310		1,071,826		42,484		4.0%
Depreciation and amortization		34,216		31,230		2,986		9.6%		99,484		93,608		5,876		6.3%
Total costs of revenues		1,458,624		1,400,480		58,144		4.2%		4,184,164		4,052,734		131,430		3.2%
Income from operations		125,356		151,438		(26,082	)	(17.2)%		376,492		427,401		(50,909	)	(11.9)%
Interest expense and other, net		9,084		8,954		130		1.5%		30,491		28,021		2,470		8.8%
Income before income taxes		116,272		142,484		(26,212	)	(18.4)%		346,001		399,380		(53,379	)	(13.4)%
Income taxes		20,855		22,140		(1,285	)	(5.8)%		72,176		78,914		(6,738	)	(8.5)%
Net income	$	95,417	$	120,344	$	(24,927	)	(20.7)%	$	273,825	$	320,466	$	(46,641	)	(14.6)%

Period	Total Number of Shares Purchased		Average Price Paid Per Share		Total Number of Shares Purchased As Part of Publicly Announced Programs		Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs
January 2022		8,511	$	270.97		1,285,325		214,675
February 2022		—		—		—		—
March 2022		—	$	—		—		—
Total		8,511				1,285,325

			Incorporated by Reference
Exhibit No.	Description	Filed with this Form 10-Q	Form	Filing Date	Exhibit No.

31.1	Section 302 Certification John S. Mengucci	X

31.2	Section 302 Certification Thomas A. Mutryn	X

32.1	Section 906 Certification John S. Mengucci	X

32.2	Section 906 Certification Thomas A. Mutryn	X

101.INS	XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document)

101.SCH	Inline XBRL Taxonomy Extension Schema Document

101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document

101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document

101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document

104	Cover Page Interactive Data File (embedded within the Inline XBRL document and contained in Exhibit 101)

	CACI International Inc
	Registrant

Date: April 28, 2022	By:	/s/ John S. Mengucci
		John S. Mengucci
		President,
		Chief Executive Officer and Director
		(Principal Executive Officer)

Date: April 28, 2022	By:	/s/ Thomas A. Mutryn
		Thomas A. Mutryn
		Executive Vice President,
		Chief Financial Officer and Treasurer
		(Principal Financial Officer)

Date: April 28, 2022	By:	/s/ Travis B. Johnson
		Travis B. Johnson
		Senior Vice President, Corporate Controller
		and Chief Accounting Officer
		(Principal Accounting Officer)