Leidos Holdings, Inc. · NYSE:LDOS
Leidos — Q2 2022 Earnings Presentation
13 slides from Leidos's earnings presentation, Aug 2, 2022
Slide 1: Leidos Q2 FY22 Earnings Conference Call
Leidos Q2 FY22 Earnings Conference Call August 2, 2022
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," "plan
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 1 Strong, balanced financial results ▪ Record revenues on YoY growth of 4.3% (4.0% organic) ▪ Strong core profitability ▪ On path to deliver at least $1B of operating cash flow in 2022 Business Development momentum sets stage for continued growth 2 ▪ Net book-to-bill ratio of 0.6x (
Slide 5: Q2 FY22 Results: Income Statement
Q2 FY22 Results: Income Statement Revenues (M) Adjusted EBITDA Margin (%) Non-GAAP Diluted EPS ($) $3,597 $3,448 10.4% +4.3% total 10.2% 4.6% $1.59 +4.0% organic $1.52 -20 bps $3,443 $3,580 Q2 FY21 Q2 FY22 Q2 FY21 Q2 FY22 Q2 FY21 Q2 FY22 Note: For Revenues, shaded upper portion of Q2 FY22 column rep
Slide 6: Q2 FY22 Results: Reporting Segments
Q2 FY22 Results: Reporting Segments Defense Solutions Civil Health $2,052 $857 $688 $2,004 $799 $645 Revenues (M) +7.3% +2.4% total +6.7% +1.8% organic $2,035 $1,999 Q2 FY21 Q2 FY22 Q2 FY21 Q2 FY22 Q2 FY21 Q2 FY22 Non-GAAP Op Margin 9.1% unchanged 19.8% 8.3% 8.3% 17.8% -260 bps 6.5% +200 bps Note: F
Slide 7: Q2 FY22 Results: Cash Flow / Balance Sheet
Q2 FY22 Results: Cash Flow / Balance Sheet On path to deliver at least $1B in operational cash flow Cash Flow ▪ Operating cash flow $40M Generation ▪ Free cash flow $19M ▪ Consistent with historical pattern, cash generation weighted to H2 Following balanced long-term approach to capital deployment ▪
Slide 8: 2022 Guidance
2022 Guidance Measure Current FY22 Guidance Prior Revenues (billions) $13.9 - $14.3 Adjusted EBITDA Margin 10.3% - 10.5% Non-GAAP Diluted EPS $6.10 - $6.50 Cash Flows Provided by Operating Activities (billions) at or above $1.0 Key Assumptions: ▪ Continuing Resolution for GFY23 in place from 10/1/22
Slide 9: Appendix: Non-GAAP Reconciliations
Appendix: Non-GAAP Reconciliations
Slide 10: Organic Growth
Organic Growth Percent (in millions, except growth rates) Q2 FY22 Q2 FY21 Change Defense Solutions Revenues, as reported $ 2,052 $ 2,004 2% Acquisition and divestiture revenues(1) 17 5 Pro-forma revenues (Organic Growth Rate) $ 2,035 $ 1,999 2% Civil Revenues, as reported $ 857 $ 799 7% Health Reven
Slide 11: Non-GAAP Income Metrics Reconciliation
Non-GAAP Income Metrics Reconciliation Three Months Ended July 1, 2022 Three Months Ended July 2, 2021 Acquisition, Acquisition, integration and Amortization of Asset integration and Amortization of restructuring acquired impairment Non-GAAP restructuring acquired Non-GAAP (in millions, except per s
Slide 12: Segment Non-GAAP Operating Income Reconciliation
Segment Non-GAAP Operating Income Reconciliation Three Months Ended July 1, 2022 Acquisition, integration and Amortization of Asset Non-GAAP Non-GAAP Operating restructuring acquired impairment operating operating (in millions) income (loss) costs intangibles charges income (loss) margin(1) Defense
Slide 13: Free Cash Flow
Free Cash Flow Three Months Ended (in millions, except conversion ratio) July 1, 2022 July 2, 2021 Net cash provided by operating activities $ 40 $ 17 Payments for property, equipment and software (21) (21) Free cash flow $ 19 $ (4) Net income attributable to Leidos common stockholders $ 171 $ 169 A