Leidos Holdings, Inc. · NYSE:LDOS
Leidos — Q3 CY2015 Earnings Presentation
19 slides from Leidos's earnings presentation, Oct 29, 2015
Slide 1: Leidos 3Q CY15 Earnings Conference Call
LEIDOS 3Q CY15 Earnings Conference Call October 29, 2015
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 Q3 CY15 Highlights − Revenue of $1.30B, +2% yoy − Non-GAAP Operating Income margins of 7.5%, +50bps yoy − Non-GAAP EPS of $0.71, +9% yoy − Significant Cash Flow from Operations: $269M Ongoing internal priorities include: − People − Innovation − Cost Capital deployment philoso
Slide 4: National Security Solutions – Overview
National Security Solutions – Overview Revenue ($M) Revenue declined $28M, or 3% yoy, driven 1000 $906 $878 by: 800 Overseas drawdown impacting revenues from 600 Overseas Contingency Operations ($44M) 400 Non OCO Revenue increased 2% 200 0 3Q FY 15 3Q CY 15 Operating Income: Operating income i
Slide 5: National Security Solutions – Awards & Backlog
National Security Solutions – Awards & Backlog Backlog ($M) Book to Bill $9,000 $8,497 $8,538 4.5 4.0 $8,000 $6,541 4.0 $7,000 $6,087 $5,859 3.5 $6,000 3.0 $5,000 $6,638 $6,752 2.5 $4,000 $4,947 $4,491 $4,073 2.0 $3,000 1.5 1.1 0.9 $2,000 1.0 0.7 0.4 $1,000 $1,594 $1,596 $1,786 $1,859 $1,786 0.5 $0
Slide 6: Health and Engineering – Overview
Health and Engineering – Overview Revenue ($M) Revenue increased $45M, or 12% yoy, due to: 500 Growth in engineering and security products $418 400 $373 businesses, partially offset by lower volumes in 300 commercial health. 200 100 Operating income increased $9M yoy, primarily 0 due to: 3Q FY 15
Slide 7: Health and Engineering – Awards & Backlog
Health and Engineering – Awards & Backlog $2,500 Backlog ($M) Book to Bill 1.6 1.5 $1,931 $2,000 $1,790 $1,706 1.4 1.3 $1,611 $1,727 1.2 $1,500 $698 $884 1.0 $645 $806 1.0 0.9 $636 0.8 $1,000 0.8 0.6 $500 $1,092 $1,061 $975 $1,047 0.4 $921 0.2 $0 0.0 3QFY15 4QFY15 1QCY15 2QCY15 3QCY15 3QFY15 4QFY15
Slide 8: Leidos Calendar Year 2015 Guidance
Leidos Calendar Year 2015 Guidance Current Prior Revenue $4.95B to $5.10B $4.80B to $5.00B Non-GAAP Diluted EPS* $2.65 to $2.80 $2.40 to $2.60 Cash Flow from Continuing At or above At or above Operations $300M $250M * For a definition of Non-GAAP Diluted EPS please see slide 19. 8 ©2015 LEIDOS. ALL
Slide 9: Profit and Loss – GAAP
Profit and Loss – GAAP Percentage 3QCY15 3QFY15 Change (in millions, except for per share amounts) Revenues $ 1,302 $ 1,276 2% Cost of revenues 1,138 1,115 2% Selling, general and administrative expenses 53 72 (26%) Bad debt expense 13 - Asset impairment charges 4 17 Operating income 94 72 Operating
Slide 10: Profit and Loss – Non-GAAP
Profit and Loss – Non-GAAP Percentage 3QCY15 3QFY15 Change (in millions, except for per share amounts) Revenues $ 1,302 $ 1,276 2% Cost of revenues 1,138 1,115 2% Selling, general and administrative expenses 53 72 (26%) Bad debt expense 13 - Non-GAAP Operating income1 98 89 Non-GAAP operating income
Slide 11: Appendix A
Appendix A Working Days per Quarter GAAP Financial Information Non-GAAP Financial Information
Slide 12: Working Days per Quarter
Working Days per Quarter Year Q1 Q2 Q3 Q4 Total CY15 63 63 64 61 251 FY15 64 63 64 60 251 (Decrease) / Increase (1) 0 0 1 0 Note 1: In March 2015, Leidos announced a change in its fiscal year end from the Friday nearest the end of January to the Friday closest to the end of December. The first quart
Slide 13: Historical Financials ─ Segment Income Statement
Historical Financials ─ Segment Income Statement 1QFY15 2QFY15 3QFY15 4QFY15 FY15 1QCY15 2QCY15 3QCY15 (in millions) National Security Segment Revenues $ 944 $ 925 $ 906 $ 819 $ 3,594 $ 862 $ 879 $ 878 Operating income $ 77 $ 78 $ 72 $ 59 $ 286 $ 62 $ 74 $ 78 Health & Engineering Segment Revenues $
Slide 14: Historical Financials ─ Income Statement
Historical Financials ─ Income Statement 1QFY15 2QFY15 3QFY15 4QFY15 FY15 1QCY15 2QCY15 3QCY15 (in millions, except for per share amounts) Revenues $ 1,312 $ 1,306 $ 1,276 $ 1,169 $ 5,063 $ 1,246 $ 1,257 $ 1,302 Cost of revenues 1,141 1,119 1,115 1,017 4,392 1,093 1,113 1,138 Selling, general and ad
Slide 15: Non-GAAP Reconciliations
Non-GAAP Reconciliations This presentation includes certain non-GAAP financial measures, such as operating income 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 generally accepted accoun
Slide 16: Historical Financials ─ Non-GAAP Income Statement
Historical Financials ─ Non-GAAP Income Statement 1QFY15 2QFY15 3QFY15 4QFY15 FY15 1QCY15 2QCY15 3QCY15 (in millions, except for per share amounts) Revenues $ 1,312 $ 1,306 $ 1,276 $ 1,169 $ 5,063 $ 1,246 $ 1,257 $ 1,302 Cost of revenues 1,141 1,119 1,115 1,017 4,392 1,093 1,113 1,138 Selling, gener
Slide 17: Non-GAAP Operating Income Reconciliation
Non-GAAP Operating Income Reconciliation 1QFY15 2QFY15 3QFY15 4QFY15 FY15 1QCY15 2QCY15 3QCY15 (in millions) Operating income (loss) from continuing operations $ 87 $ (410) $ 72 $ 37 $ (214) $ 38 $ 64 $ 94 Asset impairment charges - 510 17 40 567 40 29 4 Restructuring expenses 1 - - 2 3 2 - - Non-GA
Slide 18: Non-GAAP EPS Reconciliation
Non-GAAP EPS Reconciliation 1QFY15 2QFY15 3QFY15 4QFY15 FY15 1QCY15 2QCY15 3QCY15 (in millions, except for per share amounts) GAAP income (loss) from continuing operations $ 45 $ (439) $ 38 $ 26 $ (330) $ 23 $ 37 $ 49 Asset impairment charges - 510 17 40 567 40 29 4 Restructuring expenses 1 - - 2 3
Slide 19: Non-GAAP Reconciliations
Non-GAAP Reconciliations Non-GAAP operating income and non-GAAP diluted earnings per share are non-GAAP financial measures that are reconciled to the most directly comparable GAAP financial measures, operating income (loss) and diluted earnings (loss) per share, respectively. Non-GAAP operating inco