Leidos Holdings, Inc. · NYSE:LDOS
Leidos — Q1 2016 Earnings Presentation
18 slides from Leidos's earnings presentation, Apr 27, 2016
Slide 1: Leidos 1Q 2016 Earnings Conference Call
LEIDOS 1Q 2016 Earnings Conference Call April 27, 2016
Slide 2: Forward-Looking Statements
Forward-Looking Statements Certain statements in this release contain or are based on “forward-looking” information within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by words such as “expects,” “intends,” “plans,” “
Slide 3: Executive Summary
Executive Summary Q1 2016 Highlights − Revenue of $1.3B, +5% yoy − Adjusted EBITDA* margins of 7.9%, +60bps yoy − Non-GAAP EPS* of $0.72, +7.5% yoy − Cash Flow from Operations: -$18M Proposed Transaction Update − Hart Scott Rodino review period expired on March 28, 2016 − Form S-4 filed with SEC
Slide 4: National Security Solutions – Overview
National Security Solutions – Overview Revenue ($M) Revenue increased $36M, or 4% yoy, driven by: 1000 $862 $898 Increase in revenues associated with the UK 800 Ministry of Defense program 600 400 200 Operating Income: 0 Operating income increased $10M, or 16% yoy 1Q CY 15 1Q FY 16 due to the re
Slide 5: National Security Solutions – Awards & Backlog
National Security Solutions – Awards & Backlog Backlog** ($M) Book to Bill* $8,497 $8,538 $9,000 $8,026 4.5 $7,861 4.0 $8,000 4.0 $7,000 $5,859 3.5 $6,000 3.0 $5,000 $6,638 $6,752 $6,554 $6,102 2.5 $4,000 $4,073 2.0 $3,000 1.5 1.1 1.1 $2,000 1.0 0.7 0.4 $1,000 $1,786 $1,859 $1,786 $1,472 $1,759 0.5
Slide 6: Health and Infrastructure – Overview
Health and Infrastructure – Overview Revenue increased $29M, or 8% yoy, due to: Revenue ($M) Growth in Federal Health business driven by ramp of 500 $414 $385 Defense Health program 400 300 Increase in security products revenues 200 Partially offset by lower volumes in commercial health 100 0
Slide 7: Health and Infrastructure – Awards & Backlog
Health and Infrastructure – Awards & Backlog Backlog ($M) Book to Bill $2,500 1.5 1.6 $1,931 1.4 1.3 $2,000 $1,727 $1,869 $1,746 $1,611 1.2 $1,500 $884 $820 1.0 0.9 0.9 $636 $806 $757 0.8 0.7 $1,000 0.6 0.4 $500 $975 $921 $1,047 $1,049 $989 0.2 $0 0.0 1QCY15 2QCY15 3QCY15 4QCY15 1QFY16 1QCY15 2QCY15
Slide 8: Leidos Fiscal Year 2016 Guidance
Leidos Fiscal Year 2016 Guidance Current Prior Revenue Unchanged $5.1B to $5.3B Non-GAAP Diluted EPS* Unchanged $2.75 to $2.95 Cash Flow from Continuing At or above Unchanged Operations $275M Fiscal year 2016 guidance excludes the impact of the potential transaction with Lockheed Martin, including t
Slide 9: Profit and Loss – GAAP
Profit and Loss – GAAP Percentage 1QFY16 1QCY15 Change (in millions, except for per share amounts) Revenues $ 1,312 $ 1,246 5.3% Cost of revenues 1,154 1,093 Selling, general and administrative expenses 60 73 Acquisition and integration costs 9 - Asset impairment charges - 40 Restructuring expenses
Slide 10: Profit and Loss – Non-GAAP
Profit and Loss – Non-GAAP Percentage 1QFY16 1QCY151 Change (in millions, except for per share amounts) Revenues $ 1,312 $ 1,246 5.3% Cost of revenues 1,154 1,093 Selling, general and administrative expenses2 59 71 Non-GAAP operating income from continuing operations2,3 99 82 20.7% Non-GAAP operatin
Slide 11: Appendices
Appendices Historical Financial Information Non-GAAP Financial Measures and Related Reconciliations
Slide 12: Non-GAAP Reconciliations
Non-GAAP Reconciliations This presentation includes certain non-GAAP financial measures, such as non-GAAP operating income, non-GAAP operating income margin, non-GAAP income from continuing operations, non-GAAP diluted earnings per share (EPS) and adjusted earnings before interest, taxes, depreciati
Slide 13: Historical Financial Information ─ Segment Results
Historical Financial Information ─ Segment Results 1QCY15 2QCY15 3QCY15 4QCY15 CY15 1QFY16 (in millions) National Security Solutions Revenues $ 862 $ 879 $ 878 $ 848 $ 3,467 $ 898 Operating income $ 62 $ 74 $ 78 $ 65 $ 279 $ 72 Health and Infrastructure Sector Revenues $ 385 $ 379 $ 418 $ 432 $ 1,61
Slide 14: Historical Financial Information ─ Income Statement
Historical Financial Information ─ Income Statement 1QCY15 2QCY15 3QCY15 4QCY15 CY15 1QFY16 (in millions, except for per share amounts) Revenues $ 1,246 $ 1,257 $ 1,302 $ 1,281 $ 5,086 $ 1,312 Cost of revenues 1,093 1,113 1,138 1,124 4,468 1,154 Selling, general and administrative expenses 1 73 51 6
Slide 15: Historical Non-GAAP Income Statement
Historical Non-GAAP Income Statement 1QCY151 2QCY151 3QCY151 4QCY151 CY151 1QFY16 (in millions, except for per share amounts) Revenues $ 1,246 $ 1,257 $ 1,302 $ 1,281 $ 5,086 $ 1,312 Cost of revenues 1,093 1,113 1,138 1,124 4,468 1,154 Selling, general and administrative expenses 2 71 48 63 50 232 5
Slide 16: Non-GAAP Operating Income Reconciliation
Non-GAAP Operating Income Reconciliation 1QCY151 2QCY151 3QCY151 4QCY151 CY151 1QFY16 (in millions) GAAP operating income from continuing operations $ 38 $ 64 $ 94 $ 102 $ 298 $ 89 Acquisition and integration costs - - - - - 9 Amortization of acquired intangible assets 2 3 2 2 9 1 Asset impairment c
Slide 17: Non-GAAP Financial Measures Reconciliation
Non-GAAP Financial Measures Reconciliation 1QCY151 2QCY151 3QCY151 4QCY151 CY151 1QFY16 (in millions, except for per share amounts) Non-GAAP operating income from continuing operations $ 82 $ 96 $ 101 $ 107 $ 386 $ 99 Depreciation expense 10 9 9 7 35 7 Other (income) expense, net (1) 2 - 1 2 (2) Adj
Slide 18: Definitions of Non-GAAP Financial Measures
Definitions of Non-GAAP Financial Measures Non-GAAP operating income is computed by excluding the following items from income (loss) from continuing operations: (i) other income (expense), net; (ii) interest expense; (iii) interest income; (iv) income tax (expense) benefit adjusted to reflect non-GA