Caci International Inc 10-Q, filed Jan 25, 2024

Caci International Inc (CACI)

10-Q 2024-01-25 For: 2023-12-31

Added on April 12, 2026

About this 10-Q

Caci International Inc filed this 10-Q on January 25, 2024, covering the quarter ended December 31, 2023.

Headline figures

Quarter ended December 31, 2023, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $1.83B; up 11.2% from $1.65B a year earlier
Net income: $83.87M; down 3.7% from net income of $87.1M a year earlier
Diluted EPS: $3.74; up 1.6% from $3.68 a year earlier

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Delaware						54-1345888
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)


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


		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 Shareholders’ Equity	7

	Notes to Condensed Consolidated Financial Statements	8

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	16

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	20

Item 4.	Controls and Procedures	20

PART II:	OTHER INFORMATION	22

Item 1.	Legal Proceedings	22

Item 1A.	Risk Factors	24

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	24

Item 3.	Defaults Upon Senior Securities	24

Item 4.	Mine Safety Disclosures	24

Item 5.	Other Information	24

Item 6.	Exhibits	25

	Signatures	26


	Three Months Ended December 31,				Six Months Ended December 31,
	2023		2022		2023		2022
Revenues	$	1,833,934	$	1,649,416	$	3,684,081	$	3,255,175
Costs of revenues:
Direct costs	1,255,251		1,094,314		2,528,169		2,150,086
Indirect costs and selling expenses	409,355		388,303		813,988		770,384
Depreciation and amortization	36,023		35,932		71,270		71,035
Total costs of revenues	1,700,629		1,518,549		3,413,427		2,991,505
Income from operations	133,305		130,867		270,654		263,670
Interest expense and other, net	27,519		19,942		53,090		36,135
Income before income taxes	105,786		110,925		217,564		227,535
Income taxes	21,916		23,824		47,647		51,309
Net income	$	83,870	$	87,101	$	169,917	$	176,226
Basic earnings per share	$	3.76	$	3.71	$	7.56	$	7.51
Diluted earnings per share	$	3.74	$	3.68	$	7.50	$	7.44
Weighted-average basic shares outstanding	22,282		23,506		22,464		23,463
Weighted-average diluted shares outstanding	22,407		23,676		22,650		23,677


	Three Months Ended December 31,				Six Months Ended December 31,
	2023		2022		2023		2022
Net income	$	83,870	$	87,101	$	169,917	$	176,226
Other comprehensive income (loss):
Foreign currency translation adjustment	11,446		17,123		2,245		(366)
Change in fair value of interest rate swap agreements, net of tax	(19,222)		(1,516)		(13,790)		14,013
Total other comprehensive income (loss), net of tax	(7,776)		15,607		(11,545)		13,647
Comprehensive income	$	76,094	$	102,708	$	158,372	$	189,873


x			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


o			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


	December 31, 2023		June 30, 2023
ASSETS
Current assets:
Cash and cash equivalents	$	128,851	$	115,776
Accounts receivable, net	947,452		894,946
Prepaid expenses and other current assets	227,501		199,315
Total current assets	1,303,804		1,210,037
Goodwill	4,106,113		4,084,705
Intangible assets, net	474,964		507,835
Property, plant and equipment, net	190,199		199,519
Operating lease right-of-use assets	309,084		312,989
Supplemental retirement savings plan assets	97,559		96,739
Accounts receivable, long-term	12,409		11,857
Other long-term assets	164,310		177,127
Total assets	$	6,658,442	$	6,600,808
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Current portion of long-term debt	$	61,250	$	45,938
Accounts payable	298,544		198,177
Accrued compensation and benefits	248,187		372,354
Other accrued expenses and current liabilities	378,145		377,502
Total current liabilities	986,126		993,971
Long-term debt, net of current portion	1,713,413		1,650,443
Supplemental retirement savings plan obligations, net of current portion	112,514		104,912
Deferred income taxes	55,293		120,545
Operating lease liabilities, noncurrent	323,919		329,432
Other long-term liabilities	231,553		177,171
Total liabilities	$	3,422,818	$	3,376,474
COMMITMENTS AND CONTINGENCIES (NOTE 9)
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; 43,027 shares issued and 22,285 outstanding at December 31, 2023 and 42,923 shares issued and 22,797 outstanding at June 30, 2023	4,303		4,292
Additional paid-in capital	602,613		546,334
Retained earnings	4,110,533		3,940,616
Accumulated other comprehensive loss	(16,596)		(5,051)
Treasury stock, at cost (20,742 and 20,126 shares, respectively)	(1,465,364)		(1,261,992)
Total CACI shareholders’ equity	3,235,489		3,224,199
Noncontrolling interest	135		135
Total shareholders’ equity	3,235,624		3,224,334
Total liabilities and shareholders’ equity	$	6,658,442	$	6,600,808


	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 September 30, 2023	42,929	$	4,293	$	594,885	$	4,026,663	$	(8,820)	20,703	$	(1,453,123)	$	3,163,898	$	135	$	3,164,033
Net income	—	—		—		83,870		—		—	—		83,870		—		83,870
Stock-based compensation expense	—	—		12,925		—		—		—	—		12,925		—		12,925
Tax withholdings on restricted share vestings	98	10		(17,341)		—		—		—	—		(17,331)		—		(17,331)
Other comprehensive loss, net of tax	—	—		—		—		(7,776)		—	—		(7,776)		—		(7,776)
Repurchases of common stock	—	—		12,144		—		—		48	(14,932)		(2,788)		—		(2,788)
Treasury stock issued under stock purchase plans	—	—		—		—		—		(9)	2,691		2,691		—		2,691
Balance at December 31, 2023	43,027	$	4,303	$	602,613	$	4,110,533	$	(16,596)	20,742	$	(1,465,364)	$	3,235,489	$	135	$	3,235,624

Balance at September 30, 2022	42,826	$	4,283	$	579,511	$	3,645,006	$	(33,036)	19,404	$	(1,047,329)	$	3,148,435	$	135	$	3,148,570
Net income	—	—		—		87,101		—		—	—		87,101		—		87,101
Stock-based compensation expense	—	—		11,757		—		—		—	—		11,757		—		11,757
Tax withholdings on restricted share vestings	85	8		(12,679)		—		—		—	—		(12,671)		—		(12,671)
Other comprehensive income, net of tax	—	—		—		—		15,607		—	—		15,607		—		15,607
Repurchases of common stock	—	—		(143)		—		—		10	(2,496)		(2,639)		—		(2,639)
Treasury stock issued under stock purchase plans	—	—		24		—		—		(10)	2,497		2,521		—		2,521
Balance at December 31, 2022	42,911	$	4,291	$	578,470	$	3,732,107	$	(17,429)	19,404	$	(1,047,328)	$	3,250,111	$	135	$	3,250,246

Balance at June 30, 2023	42,923	$	4,292	$	546,334	$	3,940,616	$	(5,051)	20,126	$	(1,261,992)	$	3,224,199	$	135	$	3,224,334
Net income	—	—		—		169,917		—		—	—		169,917		—		169,917
Stock-based compensation expense	—	—		22,949		—		—		—	—		22,949		—		22,949
Tax withholdings on restricted share vestings	104	11		(17,939)		—		—		—	—		(17,928)		—		(17,928)
Other comprehensive loss, net of tax	—	—		—		—		(11,545)		—	—		(11,545)		—		(11,545)
Repurchases of common stock	—	—		51,231		—		—		633	(208,676)		(157,445)		—		(157,445)
Treasury stock issued under stock purchase plans	—	—		38		—		—		(17)	5,304		5,342		—		5,342
Balance at December 31, 2023	43,027	$	4,303	$	602,613	$	4,110,533	$	(16,596)	20,742	$	(1,465,364)	$	3,235,489	$	135	$	3,235,624

Balance at June 30, 2022	42,820	$	4,282	$	571,650	$	3,555,881	$	(31,076)	19,404	$	(1,047,329)	$	3,053,408	$	135	$	3,053,543
Net income	—	—		—		176,226		—		—	—		176,226		—		176,226
Stock-based compensation expense	—	—		20,196		—		—		—	—		20,196		—		20,196
Tax withholdings on restricted share vestings	91	9		(13,115)		—		—		—	—		(13,106)		—		(13,106)
Other comprehensive income, net of tax	—	—		—		—		13,647		—	—		13,647		—		13,647
Repurchases of common stock	—	—		(325)		—		—		19	(4,961)		(5,286)		—		(5,286)
Treasury stock issued under stock purchase plans	—	—		64		—		—		(19)	4,962		5,026		—		5,026
Balance at December 31, 2022	42,911	$	4,291	$	578,470	$	3,732,107	$	(17,429)	19,404	$	(1,047,328)	$	3,250,111	$	135	$	3,250,246


	Domestic		International		Total
Balance at June 30, 2023	$	3,940,064	$	144,641	$	4,084,705
Goodwill acquired (1)	—		19,280		19,280
Foreign currency translation	418		1,710		2,128
Balance at December 31, 2023	$	3,940,482	$	165,631	$	4,106,113


	December 31, 2023						June 30, 2023
	Gross carrying value		Accumulated amortization		Net carrying value		Gross carrying value		Accumulated amortization		Net carrying value
Customer contracts and related customer relationships	$	659,629	$	(333,206)	$	326,423	$	655,877	$	(313,745)	$	342,132
Acquired technologies	276,746		(128,205)		148,541		277,180		(111,477)		165,703
Total intangible assets	$	936,375	$	(461,411)	$	474,964	$	933,057	$	(425,222)	$	507,835


	Three Months Ended December 31, 2023						Six Months Ended December 31, 2023
	Domestic		International		Total		Domestic		International		Total
Cost-plus-fee	$	1,102,474	$	—	$	1,102,474	$	2,236,909	$	—	$	2,236,909
Fixed-price	485,086		34,458		519,544		952,302		69,319		1,021,621
Time-and-materials	192,448		19,468		211,916		385,965		39,586		425,551
Total	$	1,780,008	$	53,926	$	1,833,934	$	3,575,176	$	108,905	$	3,684,081


	Three Months Ended December 31, 2022						Six Months Ended December 31, 2022
	Domestic		International		Total		Domestic		International		Total
Cost-plus-fee	$	953,344	$	—	$	953,344	$	1,888,090	$	—	$	1,888,090
Fixed-price	478,201		31,155		509,356		926,763		64,366		991,129
Time-and-materials	173,630		13,086		186,716		349,217		26,739		375,956
Total	$	1,605,175	$	44,241	$	1,649,416	$	3,164,070	$	91,105	$	3,255,175


Description of Contract Related Balance	Financial Statement Classification	December 31, 2023		June 30, 2023
Billed and billable receivables	Accounts receivable, net	$	792,647	$	763,547
Contract assets – current unbilled receivables	Accounts receivable, net	154,805		131,399
Contract assets – current costs to obtain	Prepaid expenses and other current assets	5,684		5,163
Contract assets – noncurrent unbilled receivables	Accounts receivable, long-term	12,409		11,857
Contract assets – noncurrent costs to obtain	Other long-term assets	10,598		8,294
Contract liabilities – current deferred revenue and other contract liabilities	Other accrued expenses and current liabilities	(128,861)		(138,469)
Contract liabilities – noncurrent deferred revenue and other contract liabilities	Other long-term liabilities	(5,393)		(5,522)


	December 31, 2023		June 30, 2023
Materials, purchased parts and supplies	$	93,506	$	78,691
Work in process	14,142		21,894
Finished goods	30,905		30,006
Total	$	138,553	$	130,591


	Six Months Ended December 31,
	2023		2022
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	169,917	$	176,226
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	71,270		71,035
Amortization of deferred financing costs	1,095		1,126

Non-cash lease expense	33,835		34,909
Stock-based compensation expense	22,949		20,196
Deferred income taxes	(25,770)		(48,320)
Changes in operating assets and liabilities, net of effect of business acquisitions:
Accounts receivable, net	(50,642)		55,518
Prepaid expenses and other assets	(28,703)		(30,322)
Accounts payable and other accrued expenses	90,769		28,157
Accrued compensation and benefits	(124,640)		(59,917)
Income taxes payable and receivable	2,879		(5,110)
Operating lease liabilities	(38,206)		(40,050)
Long-term liabilities	17,099		3,642
Net cash provided by operating activities	141,852		207,090
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures	(29,410)		(25,670)
Acquisitions of businesses, net of cash acquired	(10,869)		—
Other	1,974		—
Net cash used in investing activities	(38,305)		(25,670)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowings under bank credit facilities	1,531,500		1,101,500
Principal payments made under bank credit facilities	(1,454,313)		(1,269,813)

Proceeds from employee stock purchase plans	5,848		5,288
Repurchases of common stock	(155,765)		(5,286)
Payment of taxes for equity transactions	(18,061)		(13,269)
Net cash used in financing activities	(90,791)		(181,580)
Effect of exchange rate changes on cash and cash equivalents	319		94
Net change in cash and cash equivalents	13,075		(66)
Cash and cash equivalents, beginning of period	115,776		114,804
Cash and cash equivalents, end of period	$	128,851	$	114,738
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid during the period for income taxes, net of refunds	$	60,381	$	100,400


	As of and for the Six Months Ended December 31,
	2023		2022
Beginning balance:	$	200,000	$	157,785
Sales of receivables	1,518,549		1,460,825
Cash collections	(1,553,194)		(1,418,648)
Outstanding balance sold to Purchaser: (1)	165,355		199,962
Cash collected, not remitted to Purchaser (2)	(55,492)		(59,827)
Remaining sold receivables	$	109,863	$	140,135


	December 31, 2023		June 30, 2023
Bank credit facility – term loans	$	1,163,750	$	1,179,063
Bank credit facility – revolver loans	617,500		525,000
Principal amount of long-term debt	1,781,250		1,704,063
Less unamortized discounts and debt issuance costs	(6,587)		(7,682)
Total long-term debt	1,774,663		1,696,381
Less current portion	(61,250)		(45,938)
Long-term debt, net of current portion	$	1,713,413	$	1,650,443


	Three Months Ended December 31,								Six Months Ended December 31,
	2023		2022		Change				2023		2022		Change
	Dollars						Percent		Dollars						Percent
Department of Defense	$	1,358,509	$	1,160,060	$	198,449	17.1	%	$	2,710,815	$	2,255,380	$	455,435	20.2	%
Federal Civilian Agencies	389,942		399,768		(9,826)		(2.5)		797,286		823,855		(26,569)		(3.2)
Commercial and other	85,483		89,588		(4,105)		(4.6)		175,980		175,940		40		—
Total	$	1,833,934	$	1,649,416	$	184,518	11.2	%	$	3,684,081	$	3,255,175	$	428,906	13.2	%


Description of Financial Instrument	Financial Statement Classification	Fair Value Hierarchy	December 31, 2023		June 30, 2023
			Fair Value
Contingent consideration	Other accrued expenses and current liabilities	Level 3	$	(2,546)	$	—
Contingent consideration	Other long-term liabilities	Level 3	$	(8,327)	$	—
Interest rate swap agreements	Other long-term liabilities	Level 2	$	(250)	$	—
Interest rate swap agreements	Prepaid expenses and other current assets	Level 2	$	1,438	$	17
Interest rate swap agreements	Other long-term assets	Level 2	$	23,600	$	43,283


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 (1)
October 2023	48,321	$	318.72	48,321	1,194,146
November 2023	—	—		—	1,194,146
December 2023	—	—		—	1,194,146
Total	48,321	$	318.72	48,321


	CACI International Inc
	Registrant

Date: January 25, 2024	By:	/s/ John S. Mengucci
		John S. Mengucci President, Chief Executive Officer and Director (Principal Executive Officer)

Date: January 25, 2024	By:	/s/ Jeffrey D. MacLauchlan
		Jeffrey D. MacLauchlan Executive Vice President, Chief Financial Officer and Treasurer (Principal Financial Officer)

Date: January 25, 2024	By:	/s/ Eric F. Blazer
		Eric F. Blazer Senior Vice President, Chief Accounting Officer and Corporate Controller (Principal Accounting Officer)


Performance Level	EBITDA of the Company and its Subsidiaries for Performance Period	Percentage of Performance RSUs that Vest
Below Cut	Less than $2,153.23M	0%
Cut	$2,153.23M	50%
Target	$2,392.48M	100%
Stretch	$2,631.73M	200%