Leidos Holdings, Inc. · NYSE:LDOS
Leidos — Q1 2019 Earnings Presentation
17 slides from Leidos's earnings presentation, Apr 30, 2019
Slide 1: Leidos 1Q 2019 Earnings Conference Call
Leidos 1Q 2019 Earnings Conference Call April 30, 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: 1Q FY 2019 Highlights
1Q FY 2019 Highlights Continued acceleration of revenue growth: +5.5% year-over-year Accelerating Growth Record backlog position of $21.5B Book-to-bill of 1.3 High cash conversion: 155%(1) 1Q’19 Total Cash Inflows of $555M, includes Strong Cash Flow Cash flow from operations: $288M Bal
Slide 4: Leidos 1Q FY 19 Results
Leidos 1Q FY 19 Results Non-GAAP Adjusted EBITDA Cash Flows from Revenue ($B) Diluted EPS Margin Operations ($) (%) ($M) $1.13 $288 $2.6 $1.03 10.2% 10.1% +9.7% +$266M +5.5% -10bps $2.4 $22 1Q FY18 1Q FY19 1Q FY18 1Q FY19 1Q FY18 1Q FY19 1Q FY18 1Q FY19 Note: See appendix for definition & reconcilia
Slide 5: Defense Solutions Segment
Defense Solutions Segment Revenue Non-GAAP Operating Income Non-GAAP Operating Margin ($M) ($M) (%) $1,267 $107 9.0% $1,189 $104 +6.6% 8.2% -2.8% -80bps 1Q FY18 1Q FY19 1Q FY18 1Q FY19 1Q FY18 1Q FY19 Note: See appendix for definition & reconciliation of Non-GAAP Financial Measures 5
Slide 6: Civil Segment
Civil Segment Revenue Non-GAAP Operating Income Non-GAAP Operating Margin ($M) ($M) (%) 11.3% 11.0% $94 $93 $829 $847 -30 bps -1.1% +2.2% 1Q FY18 1Q FY19 1Q FY18 1Q FY19 1Q FY18 1Q FY19 Note: See appendix for definition & reconciliation of Non-GAAP Financial Measures 6
Slide 7: Health Segment
Health Segment Revenue Non-GAAP Operating Income Non-GAAP Operating Margin ($M) ($M) (%) $463 12.5% $425 11.9% +8.9% $53 $55 -60bps +3.8% 1Q FY18 1Q FY19 1Q FY18 1Q FY19 1Q FY18 1Q FY19 Note: See appendix for definition & reconciliation of Non-GAAP Financial Measures 7
Slide 8: Backlog & Book-to-Bill
Backlog & Book-to-Bill 20.8 21.5 20.3 17.6 18.3 Backlog1 ($B) 14.2 14.4 15.4 13.0 13.0 5.3 6.1 6.4 6.1 4.6 1QFY18 2QFY18 3QFY18 4QFY18 1QFY19 1.8 Book-to-Bill2 1.4 1.2 1.3 1.0 1QFY18 2QFY18 3QFY18 4QFY18 1QFY19 Funded Backlog Negotiated Unfunded Backlog (1) Backlog presented at exchange rate in effe
Slide 9: 2019 Guidance
2019 Guidance Current Prior Revenue $10.5B - $10.9B $10.5B - $10.9B Adjusted EBITDA Margin(1) 9.9% - 10.1% 9.9% - 10.1% Non-GAAP Diluted EPS(1,2) $4.30 - $4.65 $4.25 - $4.60 Operating Cash Flow Meet or exceed $825M(3) Meet or exceed $725M(3) (1) A quantitative reconciliation of adjusted EBITDA margi
Slide 10: Estimated Net Cash Inflow from Real Estate Consolidation
Estimated 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: Investi
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; (ii) income tax expense, and (iii) the following discrete items: Integration and restructuring costs - Represents integration, lease ter
Slide 14: Non-GAAP Operating Income Reconciliation
Non-GAAP Operating Income Reconciliation 1QFY18 2QFY18 3QFY18 4QFY18 FY18 1QFY19 (in millions) Operating income $ 159 $ 199 $ 203 $ 188 $ 749 $ 192 Integration and restructuring costs 17 8 7 5 37 2 Amortization of acquired intangibles 50 51 50 50 201 42 Amortization of equity method investment 3 2 2
Slide 15: Reportable Segments Non-GAAP Operating Income Reconciliation
Reportable Segments Non-GAAP Operating Income Reconciliation Quarter Ended March 29, 2019 (in millions) Operating income Integration and Amortization of Amortization of equity Asset impairment Non-GAAP operating (loss) restructuring costs acquired intangibles method investment charges income (loss)
Slide 16: Non-GAAP Financial Measures Reconciliation
Non-GAAP Financial Measures Reconciliation 1QFY18 2QFY18 3QFY18 4QFY18 FY18 1QFY19 (in millions, except per share amounts) Non-GAAP operating income $ 236 $ 260 $ 262 $ 246 $ 1,004 $ 239 Depreciation expense 13 15 14 14 56 15 Other income (expense), net - 1 2 (4) (1) 4 Amortization of internally dev
Slide 17: Non-GAAP Financial Measures Reconciliation (cont’d)
Non-GAAP Financial Measures Reconciliation (cont’d) Quarter Ended March 29, 2019 (in millions, except per share amounts) Amortization of Amortization of Integration and acquired equity method Gain on sale of Other tax As reported restructuring costs intangibles investment business adjustments Non-GA