Caci International Inc 10-Q, filed Oct 26, 2023

Caci International Inc (CACI)

10-Q 2023-10-26 For: 2023-09-30

Added on April 12, 2026

About this 10-Q

Caci International Inc filed this 10-Q on October 26, 2023, covering the quarter ended September 30, 2023.

Headline figures

Quarter ended September 30, 2023, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $1.85B; up 15.2% from $1.61B a year earlier
Net income: $86.05M; down 3.5% from net income of $89.13M a year earlier
Diluted EPS: $3.76; unchanged from $3.76 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	15

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	19

Item 4.	Controls and Procedures	19

PART II:	OTHER INFORMATION	21

Item 1.	Legal Proceedings	21

Item 1A.	Risk Factors	23

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	23

Item 3.	Defaults Upon Senior Securities	23

Item 4.	Mine Safety Disclosures	23

Item 5.	Other Information	23

Item 6.	Exhibits	24

	Signatures	25


	Three Months Ended September 30,
	2023		2022
Revenues	$	1,850,147	$	1,605,759
Costs of revenues:
Direct costs	1,272,918		1,055,772
Indirect costs and selling expenses	404,633		382,081
Depreciation and amortization	35,247		35,103
Total costs of revenues	1,712,798		1,472,956
Income from operations	137,349		132,803
Interest expense and other, net	25,571		16,193
Income before income taxes	111,778		116,610
Income taxes	25,731		27,485
Net income	$	86,047	$	89,125
Basic earnings per share	$	3.80	$	3.81
Diluted earnings per share	$	3.76	$	3.76
Weighted-average basic shares outstanding	22,647		23,420
Weighted-average diluted shares outstanding	22,894		23,678


	Three Months Ended September 30,
	2023		2022
Net income	$	86,047	$	89,125
Other comprehensive income (loss):
Foreign currency translation adjustment	(9,201)		(17,489)
Change in fair value of interest rate swap agreements, net of tax	5,432		15,529
Total other comprehensive loss, net of tax	(3,769)		(1,960)
Comprehensive income	$	82,278	$	87,165


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


	September 30, 2023		June 30, 2023
ASSETS
Current assets:
Cash and cash equivalents	$	125,546	$	115,776
Accounts receivable, net	1,002,638		894,946
Prepaid expenses and other current assets	238,227		199,315
Total current assets	1,366,411		1,210,037
Goodwill	4,078,368		4,084,705
Intangible assets, net	489,126		507,835
Property, plant and equipment, net	196,579		199,519
Operating lease right-of-use assets	313,812		312,989
Supplemental retirement savings plan assets	94,211		96,739
Accounts receivable, long-term	13,296		11,857
Other long-term assets	185,668		177,127
Total assets	$	6,737,471	$	6,600,808
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Current portion of long-term debt	$	53,594	$	45,938
Accounts payable	356,439		198,177
Accrued compensation and benefits	281,838		372,354
Other accrued expenses and current liabilities	408,256		377,502
Total current liabilities	1,100,127		993,971
Long-term debt, net of current portion	1,735,677		1,650,443
Supplemental retirement savings plan obligations, net of current portion	108,712		104,912
Deferred income taxes	101,513		120,545
Operating lease liabilities, noncurrent	332,675		329,432
Other long-term liabilities	194,734		177,171
Total liabilities	$	3,573,438	$	3,376,474
COMMITMENTS AND CONTINGENCIES (NOTE 8)
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; 42,929 shares issued and 22,226 outstanding at September 30, 2023 and 42,923 shares issued and 22,797 outstanding at June 30, 2023	4,293		4,292
Additional paid-in capital	594,885		546,334
Retained earnings	4,026,663		3,940,616
Accumulated other comprehensive loss	(8,820)		(5,051)
Treasury stock, at cost (20,703 and 20,126 shares, respectively)	(1,453,123)		(1,261,992)
Total CACI shareholders’ equity	3,163,898		3,224,199
Noncontrolling interest	135		135
Total shareholders’ equity	3,164,033		3,224,334
Total liabilities and shareholders’ equity	$	6,737,471	$	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 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	—	—		—		86,047		—		—	—		86,047		—		86,047
Stock-based compensation expense	—	—		10,024		—		—		—	—		10,024		—		10,024
Tax withholdings on restricted share vestings	6	1		(598)		—		—		—	—		(597)		—		(597)
Other comprehensive loss, net of tax	—	—		—		—		(3,769)		—	—		(3,769)		—		(3,769)
Repurchases of common stock	—	—		39,087		—		—		585	(193,744)		(154,657)		—		(154,657)
Treasury stock issued under stock purchase plans	—	—		38		—		—		(8)	2,613		2,651		—		2,651
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

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	—	—		—		89,125		—		—	—		89,125		—		89,125
Stock-based compensation expense	—	—		8,439		—		—		—	—		8,439		—		8,439
Tax withholdings on restricted share vestings	6	1		(436)		—		—		—	—		(435)		—		(435)
Other comprehensive loss, net of tax	—	—		—		—		(1,960)		—	—		(1,960)		—		(1,960)
Repurchases of common stock	—	—		(182)		—		—		9	(2,465)		(2,647)		—		(2,647)
Treasury stock issued under stock purchase plans	—	—		40		—		—		(9)	2,465		2,505		—		2,505
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


	Domestic		International		Total
Balance at June 30, 2023	$	3,940,064	$	144,641	$	4,084,705
Goodwill acquired (1)	—		(633)		(633)
Foreign currency translation	(531)		(5,173)		(5,704)
Balance at September 30, 2023	$	3,939,533	$	138,835	$	4,078,368


	September 30, 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	$	655,330	$	(323,302)	$	332,028	$	655,877	$	(313,745)	$	342,132
Acquired technologies	277,105		(120,007)		157,098		277,180		(111,477)		165,703
Total intangible assets	$	932,435	$	(443,309)	$	489,126	$	933,057	$	(425,222)	$	507,835


	Three Months Ended September 30, 2023						Three Months Ended September 30, 2022
	Domestic		International		Total		Domestic		International		Total
Cost-plus-fee	$	1,134,435	$	—	$	1,134,435	$	934,746	$	—	$	934,746
Fixed-price	467,216		34,861		502,077		448,562		33,211		481,773
Time-and-materials	193,517		20,118		213,635		175,587		13,653		189,240
Total	$	1,795,168	$	54,979	$	1,850,147	$	1,558,895	$	46,864	$	1,605,759


Description of Contract Related Balance	Financial Statement Classification	September 30, 2023		June 30, 2023
Billed and billable receivables	Accounts receivable, net	$	852,523	$	763,547
Contract assets – current unbilled receivables	Accounts receivable, net	150,115		131,399
Contract assets – current costs to obtain	Prepaid expenses and other current assets	5,512		5,163
Contract assets – noncurrent unbilled receivables	Accounts receivable, long-term	13,296		11,857
Contract assets – noncurrent costs to obtain	Other long-term assets	9,840		8,294
Contract liabilities – current deferred revenue and other contract liabilities	Other accrued expenses and current liabilities	(127,806)		(138,469)
Contract liabilities – noncurrent deferred revenue and other contract liabilities	Other long-term liabilities	(5,613)		(5,522)


	September 30, 2023		June 30, 2023
Materials, purchased parts and supplies	$	89,063	$	78,691
Work in process	19,774		21,894
Finished goods	32,043		30,006
Total	$	140,880	$	130,591


	As of and for the Three Months Ended September 30,
	2023		2022
Beginning balance:	$	200,000	$	157,785
Sales of receivables	695,260		737,873
Cash collections	(718,427)		(735,969)
Outstanding balance sold to Purchaser: (1)	176,833		159,689
Cash collected, not remitted to Purchaser (2)	(80,542)		(24,550)
Remaining sold receivables	$	96,291	$	135,139


	Three Months Ended September 30,
	2023		2022
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	86,047	$	89,125
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	35,247		35,103
Amortization of deferred financing costs	547		564

Non-cash lease expense	16,932		17,319
Stock-based compensation expense	10,024		8,439
Deferred income taxes	(7,812)		(31,177)
Changes in operating assets and liabilities, net of effect of business acquisitions:
Accounts receivable, net	(111,159)		126,859
Prepaid expenses and other assets	(37,343)		(34,438)
Accounts payable and other accrued expenses	154,469		(52,598)
Accrued compensation and benefits	(90,511)		(31,048)
Income taxes payable and receivable	23,803		35,514
Operating lease liabilities	(17,800)		(19,903)
Long-term liabilities	7,644		1,084
Net cash provided by operating activities	70,088		144,843
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures	(13,991)		(12,771)
Acquisitions of businesses, net of cash acquired	(347)		—
Other	1,974		—
Net cash used in investing activities	(12,364)		(12,771)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowings under bank credit facilities	732,500		378,000
Principal payments made under bank credit facilities	(640,156)		(483,656)

Proceeds from employee stock purchase plans	3,156		2,791
Repurchases of common stock	(140,364)		(2,647)
Payment of taxes for equity transactions	(697)		(584)
Net cash used in financing activities	(45,561)		(106,096)
Effect of exchange rate changes on cash and cash equivalents	(2,393)		(4,144)
Net change in cash and cash equivalents	9,770		21,832
Cash and cash equivalents, beginning of period	115,776		114,804
Cash and cash equivalents, end of period	$	125,546	$	136,636
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid during the period for income taxes, net of refunds	$	5,989	$	20,786


	September 30, 2023		June 30, 2023
Bank credit facility – term loans	$	1,171,406	$	1,179,063
Bank credit facility – revolver loans	625,000		525,000
Principal amount of long-term debt	1,796,406		1,704,063
Less unamortized discounts and debt issuance costs	(7,135)		(7,682)
Total long-term debt	1,789,271		1,696,381
Less current portion	(53,594)		(45,938)
Long-term debt, net of current portion	$	1,735,677	$	1,650,443


	Three Months Ended September 30,
	2023		2022		Change
	Dollars						Percent
Department of Defense	$	1,352,306	$	1,095,320	$	256,986	23.5	%
Federal Civilian Agencies	407,344		424,087		(16,743)		(3.9)
Commercial and other	90,497		86,352		4,145		4.8
Total	$	1,850,147	$	1,605,759	$	244,388	15.2	%


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)
July 2023	8,067	$	344.80	8,067	1,852,435
August 2023	186,371	339.72		186,371	1,666,064
September 2023	390,369	318.33		390,369	1,275,695
Total	584,807	$	325.52	584,807


Description of Financial Instrument	Financial Statement Classification	Fair Value Hierarchy	September 30, 2023		June 30, 2023
			Fair Value
Interest rate swap agreements	Prepaid expenses and other current assets	Level 2	$	2,363	$	17
Interest rate swap agreements	Other long-term assets	Level 2	$	48,228	$	43,283


	CACI International Inc
	Registrant

Date: October 26, 2023	By:	/s/ John S. Mengucci
		John S. Mengucci President, Chief Executive Officer and Director (Principal Executive Officer)

Date: October 26, 2023	By:	/s/ Jeffrey D. MacLauchlan
		Jeffrey D. MacLauchlan Executive Vice President, Chief Financial Officer and Treasurer (Principal Financial Officer and Principal Accounting Officer)