Leidos Holdings, Inc. · NYSE:LDOS
Leidos — Q3 FY2015 Earnings Presentation
18 slides from Leidos's earnings presentation, Dec 3, 2014
Slide 1: Leidos 3Q FY15 Earnings Conference Call
LEIDOS 3Q FY15 Earnings Conference Call December 3, 2014
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 Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by words such as "expects," "intends," "plans," "antici
Slide 3: Executive Summary
Executive Summary Strong 3Q15 − Revenue and earnings ahead of expectations − Robust cash flow from operations − Increased operating margins year over year Ongoing internal improvements − Business development − Cost reductions − Portfolio shaping Capital deployment philosophy unchanged: − Payin
Slide 4: National Security Solutions – Overview
National Security Solutions – Overview Revenue ($M) Revenue declined $105M, or 10% yoy, 1200 $1,011 driven by: $906 800 Overseas drawdown ($51M), including ramp down of JLI contract 400 Overall reductions in defense and U.S. 0 government spending resulting from 3Q FY 14 3Q FY 15 sequestration an
Slide 5: National Security Solutions – Awards & Backlog
National Security Solutions – Awards & Backlog Backlog ($M) Book to Bill $9,000 $8,121 $7,458 2.0 1.8 $8,000 $6,991 $7,000 $6,615 $6,541 1.5 $6,000 $5,000 $6,166 $5,604 $5,005 1.0 0.9 $4,000 $4,778 $4,947 $3,000 0.5 0.6 $2,000 0.5 0.3 $1,000 $1,955 $1,854 $1,986 $1,837 $1,594 $0 0.0 3QFY14 4QFY14 1Q
Slide 6: Health and Engineering – Overview
Health and Engineering – Overview Revenue declined $33M, or 8% yoy, due to: Revenue ($M) 500 Lower commercial health revenues ($20M) $406 $373 Lower revenues in security products ($13M) 400 300 200 Operating income increased $34M yoy, due to: 100 0 Favorable comparison to 3Q14, which was 3Q FY
Slide 7: Health and Engineering – Awards & Backlog
Health and Engineering – Awards & Backlog Backlog ($M) Book to Bill $1,838 $1,838 $1,840 $1,798 2.0 $2,000 $1,790 1.5 1.5 $1,500 $816 $694 $728 $750 $698 1.0 1.0 1.0 1.0 0.9 $1,000 $1,144 $1,112 0.5 $500 $1,022 $1,048 $1,092 0.0 $0 3QFY14 4QFY14 1QFY15 2QFY15 3QFY15 3QFY14 4QFY14 1QFY15 2QFY15 3QFY1
Slide 8: Leidos Fiscal Year 2015 Guidance
Leidos Fiscal Year 2015 Guidance No change to Fiscal Year 2015 Guidance FY15 Guidance Revenue $4.9B to $5.1B Non-GAAP Diluted EPS* $2.10 to $2.30 Cash Flow from Continuing Operations At or above $300M * For a definition of Non-GAAP Diluted EPS please see slide 18 8 ©2014 LEIDOS. ALL RIGHTS RESERVE
Slide 9: Profit and Loss
Profit and Loss $ in millions, except for EPS 3QFY15 3QFY14 % chg. Revenues $1,276 $1,414 (10%) Cost of revenues 1,115 1,219 (9%) Selling, general and administrative expenses 72 113 (36%) Bad debt expense - 43 Intangible asset impairment charges 17 19 Separation transaction and restructuring expense
Slide 10: Appendix
Appendix * leidos
Slide 11: Working Days per Quarter
Working Days per Quarter Year Q1 Q2 Q3 Q4 ($ in millions) Total FY15 64 63 64 60 251 FY14 65 63 64 60 252 Increase / (Decrease) (1) 0 0 0 (1) 11 ©2014 LEIDOS. ALL RIGHTS RESERVED.
Slide 12: Non-GAAP Reconciliations
Non-GAAP Reconciliations This presentation includes certain non-GAAP financial measures, such as operating income, operating margin, and earnings per share. These non-GAAP financial measures are not meant to be considered in isolation or as a substitute for results prepared in accordance with genera
Slide 13: Historical Financials ─ Segment Income Statement
Historical Financials ─ Segment Income Statement 1Q14 2Q14 3Q14 4Q14 FY14 1Q15 2Q15 3Q15 National Security Segment Revenue $ 1,077 $ 1,019 $ 1,011 $ 942 $ 4,049 $ 944 $ 925 $ 906 Operating income $ 71 $ 72 $ 66 $ 83 $ 292 $ 77 $ 78 $ 72 ($ in millions) Health & Engineering Segment Revenue $ 517 $ 44
Slide 14: Historical Financials ─ Income Statement
Historical Financials ─ Income Statement 1Q14 2Q14 3Q14 4Q14 FY14 1Q15 2Q15 3Q15 Revenue $ 1,593 $ 1,457 $ 1,414 $ 1,291 $ 5,755 $ 1,312 $ 1,306 $ 1,276 Cost of revenue 1,373 1,293 1,219 1,107 4,992 1,141 1,119 1,115 Selling, general and administrative expenses 125 105 113 97 440 84 82 73 Bad debt e
Slide 15: Non-GAAP Operating Income Reconciliation
Non-GAAP Operating Income Reconciliation 1Q14 2Q14 3Q14 4Q14 FY14 1Q15 2Q15 3Q15 Revenue $ 1,593 $ 1,457 $ 1,414 $ 1,291 $ 5,755 $ 1,312 $ 1,306 $ 1,276 ($ in millions) Operating income (loss) from continuing operations $ 77 $ 10 $ (5) $ 81 $ 163 $ 87 $ (410) $ 72 Goodwill impairment charges - - - -
Slide 16: Non-GAAP EPS Reconciliation
Non-GAAP EPS Reconciliation 1Q14 2Q14 3Q14 4Q14 FY14 1Q15 2Q15 3Q15 GAAP income (loss) from continuing operations $ 41 $ 4 $ (8) $ 47 $ 84 $ 45 $ (439) $ 38 Goodwill impairment charges - - - - - - 486 - ($ in millions) Intangible asset impairment charges 2 30 19 - 51 - 24 17 Separation transaction a
Slide 17: Non-GAAP Reconciliations
Non-GAAP Reconciliations Non-GAAP Operating Income is a non-GAAP financial measure that is reconciled to the most directly comparable GAAP financial measure, operating income. Non-GAAP operating income adjusts operating income for the following discrete items: Goodwill and Intangible asset impairm
Slide 18: Non-GAAP Reconciliations (continued)
Non-GAAP Reconciliations (continued) Non-GAAP Earnings Per Share is a non-GAAP financial measure that is reconciled to the most directly comparable GAAP financial measure, earnings per share. Non-GAAP earnings per share adjusts earnings per share for the following discrete items: Goodwill and Inta