Leidos Holdings, Inc. · NYSE:LDOS
Leidos — Q4 2018 Earnings Presentation
17 slides from Leidos's earnings presentation, Feb 19, 2019
Slide 1: Leidos 4Q 2018 Earnings Conference Call
Leidos 4Q 2018 Earnings Conference Call February 19, 2019
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: 4Q & FY 2018 Highlights
4Q & FY 2018 Highlights Revenue growth: 5.2% year-over-year; highest level in 2 years 4Q’18 book-to-bill of 1.2x; 2018 book-to-bill of 1.3x Driving Growth Record annual net bookings of $13.7B Record backlog position of $20.8B 4Q’18 cash flows from operations: $104M Generating Strong 2018
Slide 4: Leidos 4Q FY18 Results
Leidos 4Q FY 18 Results Non-GAAP Adjusted EBITDA Cash Flows from Revenue ($B) Diluted EPS Margin Operations ($) (%) ($M) $2.6 $1.10 $2.5 $164 9.7% 9.7% +5.2% +26% $0.87 Flat -$60M $104 4Q FY17 4Q FY18 4Q FY17 4Q FY18 4Q FY17 4Q FY18 4Q FY17 4Q FY18 Note: See appendix for definition & reconciliation
Slide 5: Defense Solutions Segment
Defense Solutions Segment Revenue Non-GAAP Operating Income Non-GAAP Operating Margin ($M) ($M) (%) $1,265 $113 9.3% $1,221 +3.6% -13% $98 -160bps 7.7% 4Q FY17 4Q FY18 4Q FY17 4Q FY18 4Q FY17 4Q FY18 Note: See appendix for definition & reconciliation of Non-GAAP Financial Measures 5
Slide 6: Civil Segment
Civil Segment Revenue Non-GAAP Operating Income Non-GAAP Operating Margin ($M) ($M) (%) 10.7% 9.7% $854 $885 $91 -94 bps $86 -5% +3.6% 4Q FY17 4Q FY18 4Q FY17 4Q FY18 4Q FY17 4Q FY18 Note: See appendix for definition & reconciliation of Non-GAAP Financial Measures 6
Slide 7: Health Segment
Health Segment Revenue Non-GAAP Operating Income Non-GAAP Operating Margin ($M) ($M) (%) $80 $497 16.1% $441 +12.7% +51% +408bps 12.0% $53 4Q FY17 4Q FY18 4Q FY17 4Q FY18 4Q FY17 4Q FY18 Note: See appendix for definition & reconciliation of Non-GAAP Financial Measures 7
Slide 8: Backlog & Book-to-Bill
Backlog & Book-to-Bill 20.3 20.8 17.5 17.6 18.3 Backlog1 ($B) 14.2 14.4 12.5 13.0 13.0 5.0 5.3 6.1 6.4 4.6 4QFY17 1QFY18 2QFY18 3QFY18 4QFY18 1.8 Book to Bill2 1.4 1.0 1.2 0.9 4QFY17 1QFY18 2QFY18 3QFY18 4QFY18 Funded Backlog Negotiated Unfunded Backlog (1) Backlog presented at exchange rate in effe
Slide 9: 2019 Guidance
2019 Guidance Revenue $10.5B - $10.9B Adjusted EBITDA Margin(1) 9.9% - 10.1% Non-GAAP Diluted EPS(1,2) $4.25 - $4.60 Operating Cash Flow Meet or exceed $725M(3) (1) A quantitative reconciliation of adjusted EBITDA margin and non-GAAP diluted EPS forward-looking guidance to the most directly comparab
Slide 10: Net Cash Inflow from Real Estate Consolidation
Net Cash Inflow from Real Estate Consolidation Cash Flow Proceeds/ Period Classification (Investment) Property Action Impacted CapEx Inflow: Financing +$14M San Diego Campus Point Building sale Q4 ‘18 Inflow: Investing +$65M San Diego Campus Point Building sale Q1 ‘19 Inflow: Investing +$31M Gai
Slide 11: Appendix
Appendix > leidos
Slide 12: Non-GAAP Financial Measures
Non-GAAP Financial Measures This presentation includes certain non-GAAP financial measures, such as 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 and amortization (E
Slide 13: Definition of Non-GAAP Financial Measures
Definition of Non-GAAP Financial Measures Non-GAAP operating income is computed by excluding the following items from net income: (i) non-operating expense, net; and (ii) the following discrete items and the related tax impacts: Acquisition, integration and restructuring costs - Represents acquisi
Slide 14: Non-GAAP Operating Income Reconciliation
Non-GAAP Operating Income Reconciliation 1QFY17 2QFY17 3QFY17 4QFY17 FY17 1QFY18 2QFY18 3QFY18 4QFY18 FY18 (in millions) Operating income $ 141 $ 166 $ 151 $ 101 $ 559 $ 159 $ 199 $ 203 $ 188 $ 749 Acquisition, integration and restructuring 32 22 27 58 139 17 8 7 5 37 Amortization of acquired intang
Slide 15: Reportable Segments Non-GAAP Operating Income Reconciliation
Reportable Segments Non-GAAP Operating Income Reconciliation Quarter Ended December 28, 2018 (in millions) Operating income Acquisition, integration Amortization of Amortization of equity Non-GAAP operating (loss) and restructuring costs intangibles method investment income (loss) Defense Solutions
Slide 16: Non-GAAP Financial Measures Reconciliation
Non-GAAP Financial Measures Reconciliation 1QFY172 2QFY172 3QFY17 4QFY17 FY17 1QFY18 2QFY18 3QFY18 4QFY18 FY18 (in millions, except per share amounts) Non-GAAP operating income $ 242 $ 264 $ 256 $ 231 $ 993 $ 236 $ 260 $ 262 $ 246 $ 1,004 Depreciation expense 13 13 16 13 55 13 15 14 14 56 Other inco
Slide 17: Non-GAAP Financial Measures Reconciliation (cont'd)
Non-GAAP Financial Measures Reconciliation (cont’d) Quarter Ended December 28, 2018 (in millions, except per share amounts) Acquisition, Amortization of Tax adjustments integration and Amortization of equity method on assets held for Other tax As reported restructuring costs intangibles investment s