Leidos Holdings, Inc. · NYSE:LDOS
Leidos — Q1 2023 Earnings Presentation
13 slides from Leidos's earnings presentation, May 2, 2023
Slide 1: Leidos Q1 FY23 Earnings Conference Call
Leidos Q1 FY23 Earnings Conference Call May 2, 2023 Leidos Proprietary
Slide 2: Forward-Looking Statements
Forward-Looking Statements Certain statements in this presentation 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," "pla
Slide 3: Non-GAAP Financial Measures
Non-GAAP Financial Measures This presentation includes certain non-GAAP financial measures, such as organic growth, non-GAAP operating income, non- GAAP operating margin, non-GAAP effective tax rate, non-GAAP diluted earnings per share (EPS), adjusted earnings before interest, taxes, depreciation an
Slide 4: CEO Key Messages
CEO Key Messages Strong revenue growth–above guidance, in line with multi-year targets 1 ▪ Record revenues on YoY growth of 6% with growth across all three segments ▪ Organic revenue growth over 5%, led by Civil and Health segments ▪ Earnings and cash performance will build momentum throughout the y
Slide 5: Q1 FY23 Results: Income Statement
Q1 FY23 Results: Income Statement Revenues (M) Adjusted EBITDA Margin (%) Non-GAAP Diluted EPS +5.9% -80 bps -7.0% 5 Leidos Proprietary
Slide 6: Q1 FY23 Results: Reporting Segments
Q1 FY23 Results: Reporting Segments Defense Solutions Civil Health Revenues (M) +9.2% +10.3% +3.1% Non-GAAP OI Margin +30 bps -130 bps -330 bps 6 Leidos Proprietary
Slide 7: Q1 FY23 Results: Cash Flow / Balance Sheet
Q1 FY23 Results: Cash Flow / Balance Sheet Cash flow generation depressed based on one-time events Cash Flow ▪ Operating cash flow $(98)M Generation ▪ Non-GAAP free cash flow $(137)M ▪ Tax payments from prior year activities $191M Following balanced long-term approach to capital deployment ▪ Total r
Slide 8: 2023 Guidance
2023 Guidance Measure Current FY23 Guidance Prior Revenues (billions) $14.7 - $15.1 Adjusted EBITDA Margin 10.3% - 10.5% Non-GAAP Diluted EPS $6.40 - $6.80 Cash Flows Provided by Operating Activities (millions) at or above $700 Key Assumptions: ▪ Continuing Resolution for GFY23 in place through 12/3
Slide 9: Appendix: Non-GAAP Reconciliations
Appendix: Non-GAAP Reconciliations Leidos Proprietary
Slide 10: Organic Growth
Organic Growth Percent (in millions, except growth rates) Q1 FY23 Q1 FY22 Change Defense Solutions Revenues, as reported $ 2,112 $ 2,049 3 % Acquisition and divestiture revenues(1) 30 4 Organic revenues $ 2,082 $ 2,045 2 % Civil Revenues, as reported $ 877 $ 795 10 % Health Revenues, as reported $ 7
Slide 11: Non-GAAP Income Metrics
Non-GAAP Income Metrics Three Months Ended March 31, 2023 Three Months Ended April 1, 2022 Acquisition, Acquisition, Amortization of integration and Amortization of integration and Non-GAAP As reported acquired restructuring acquired Non-GAAP restructuring results intangibles(2) (in millions, except
Slide 12: Segment Non-GAAP Operating Income
Segment Non-GAAP Operating Income Three Months Ended March 31, 2023 Acquisition, integration and Amortization of Non-GAAP Non-GAAP Operating restructuring acquired operating operating (in millions) income (loss) costs intangibles income (loss) margin(1) Defense Solutions $ 147 $ — $ 30 $ 177 8.4 % C
Slide 13: Non-GAAP Free Cash Flow
Non-GAAP Free Cash Flow Three Months Ended (in millions, except conversion ratio) March 31, 2023 April 1, 2022 Net cash (used in) provided by operating activities $ (98) $ 93 Payments for property, equipment and software (39) (28) Non-GAAP free cash flow $ (137) $ 65 Net income attributable to Leido