Leidos Holdings, Inc. · NYSE:LDOS
Leidos — Q2 FY2015 Earnings Presentation
18 slides from Leidos's earnings presentation, Sep 9, 2014
Slide 1: Leidos 2Q FY15 Earnings Conference Call
LEIDOS 2Q FY15 Earnings Conference Call September 9, 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 Continued Pressure Externally − Difficult market conditions in commercial health and engineering − Lack of long-term Federal budget clarity impacting new contract awards National Security Sector − Solid business with attractive cash flow and earnings characteristics Health an
Slide 4: National Security Solutions – Overview
National Security Solutions – Overview Revenue decline of $94M or 9% yoy: Revenue ($M) Overseas drawdown $73M, including 1500 $1,019 ramp down of Airborne and JLI/MRAP $925 1000 contracts. 500 Funding reductions, partially offset by 0 program wins 2Q FY 14 2Q FY 15 Operating Margin Expansion:
Slide 5: National Security Solutions – Awards & Backlog
National Security Solutions – Awards & Backlog Backlog ($M) $9,000 $8,000 $7,337 $8,121 $7,458 Book to Bill $6,991 $7,000 $6,615 2.0 1.8 $6,000 1.5 $5,000 $6,166 $5,442 $5,604 $5,005 $4,000 $4,778 1.0 0.7 $3,000 0.6 0.5 $2,000 0.5 0.3 $1,000 $1,895 $1,955 $1,854 $1,986 $1,837 $0 0.0 2QFY14 3QFY14 4Q
Slide 6: Health and Engineering – Overview
Health and Engineering – Overview Revenue declined $64M, or 14% yoy, Revenue ($M) driven by: 500 Completion of energy design-build $445 450 construction projects in fiscal 2014 ($34M) 400 $381 Lower sales volume in commercial health 350 ($20M) 300 2Q FY 14 2Q FY 15 Timing of security product d
Slide 7: Health and Engineering – Awards & Backlog
Health and Engineering – Awards & Backlog Backlog ($M) $2,000 $1,838 $1,838 $1,840 $1,798 Book to Bill $1,800 $1,650 1.6 1.5 $1,600 1.4 $816 $694 $728 $1,400 $750 $669 1.2 1.0 $1,200 1.0 1.0 0.9 $1,000 0.8 0.8 $800 0.6 $600 $1,144 $1,112 $981 $1,022 $1,048 0.4 $400 0.2 $200 0.0 $0 2QFY14 3QFY14 4QFY
Slide 8: Profit and Loss
Profit and Loss $ in millions, except for EPS 2Q15 2Q14 % chg. Revenues $1,306 $1,457 -10% Cost of revenues 1,119 1,293 -13% Selling, general and administrative expenses 87 105 -17% Goodwill impairment charges 486 - Intangible asset impairment charges 24 30 Separation transaction and restructuring e
Slide 9: Updated Leidos Fiscal Year 2015 Guidance
Updated Leidos Fiscal Year 2015 Guidance Current Prior FY15 Guidance FY15 Guidance Revenue $4.9B to $5.1B $4.9B to $5.1B Non-GAAP Diluted EPS* $2.10 to $2.30 $2.35 to $2.55 Cash Flow from Continuing At or above At or above Operations $300M $350M * For a definition of Non-GAAP Diluted EPS please see
Slide 10: Appendix
Appendix * leidos
Slide 11: Working Days per Quarter
Working Days per Quarter Year Q1 Q2 Q3 Q4 ($ 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 National Security Segment Revenue $ 1,077 $ 1,019 $ 1,011 $ 942 $ 4,049 $ 944 $ 925 Operating income $ 71 $ 72 $ 66 $ 83 $ 292 $ 77 $ 78 ($ in millions) Health & Engineering Segment Revenue $ 517 $ 445 $ 406 $ 350 $
Slide 14: Historical Financials ─ Income Statement
Historical Financials ─ Income Statement 1Q14 2Q14 3Q14 4Q14 FY14 1Q15 2Q15 Revenue $ 1,593 $ 1,457 $ 1,414 $ 1,291 $ 5,755 $ 1,312 $ 1,306 Cost of revenue 1,373 1,293 1,219 1,107 4,992 1,141 1,119 Selling, general and administrative expenses 125 105 113 97 440 84 82 Bad debt expense 2 - 43 (1) 44 (
Slide 15: Non-GAAP Operating Income Reconciliation
Non-GAAP Operating Income Reconciliation 1Q14 2Q14 3Q14 4Q14 FY14 1Q15 2Q15 Revenue $ 1,593 $ 1,457 $ 1,414 $ 1,291 $ 5,755 $ 1,312 $ 1,306 ($ in millions) Operating income (loss) from continuing operations $ 77 $ 10 $ (5) $ 81 $ 163 $ 87 $ (410) Goodwill impairment charges - - - - - - 486 Intangibl
Slide 16: Non-GAAP EPS Reconciliation
Non-GAAP EPS Reconciliation 1Q14 2Q14 3Q14 4Q14 FY14 1Q15 2Q15 GAAP income (loss) from continuing operations $ 41 $ 4 $ (8) $ 47 $ 84 $ 45 $ (439) Goodwill impairment charges - - - - - - 486 ($ in millions) Intangible asset impairment charges 2 30 19 - 51 - 24 Separation transaction and restructurin
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