Leidos Holdings, Inc. · NYSE:LDOS
Leidos — Q2 2016 Earnings Presentation
18 slides from Leidos's earnings presentation, Jul 28, 2016
Slide 1: Leidos 2Q 2016 Earnings Conference Call
LEIDOS 2Q 2016 Earnings Conference Call July 28, 2016
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 Q2 2016 Highlights − Revenue of $1.3B, +2.5% year over year − Adjusted EBITDA* margins of 7.4% − Non-GAAP EPS* of $0.68 − Cash Flow from Operations: +$72M Proposed Transaction Update − All regulatory approvals obtained − Form S-4 declared effective on July 11, 2016 − Transactio
Slide 4: National Security Solutions – Overview
National Security Solutions – Overview Revenue ($M) Revenue increased $36M, or 4% yoy, driven by: $879 $915 1000 Increase in revenues associated with the UK 800 Ministry of Defense program 600 400 200 0 Operating Income: 2Q CY 15 2Q FY 16 Operating income decreased $13M, or 18% yoy due to lower
Slide 5: National Security Solutions – Awards & Backlog
National Security Solutions – Awards & Backlog Backlog** ($M) $9,000 $8,497 $8,538 $8,026 $7,861 Book to Bill* $8,000 $7,288 5.0 $7,000 4.0 $6,000 4.0 $5,000 $6,638 $6,752 $6,554 $6,102 3.0 $5,765 $4,000 $3,000 2.0 1.1 1.1 $2,000 1.0 0.6 0.4 $1,000 $1,859 $1,786 $1,472 $1,759 $1,523 $0 0.0 2QCY15 3Q
Slide 6: Health and Infrastructure – Overview
Health and Infrastructure – Overview Revenue decreased $6M, or 2% yoy, due to: Revenue ($M) $379 $373 Growth in Federal Health business driven by ramp of 400 Defense Health program 300 200 Offset by a lower level of revenues from the Heavy 100 construction engineering business which was 0 divest
Slide 7: Health and Infrastructure – Awards & Backlog
Health and Infrastructure – Awards & Backlog Backlog ($M) $2,500 Book to Bill $1,931 $1,869 1.6 1.5 $2,000 $1,727 $1,746 $1,679 1.3 1.4 1.2 $1,500 $884 $820 1.2 $806 $757 1.0 0.9 $811 $1,000 0.8 0.7 0.6 $500 $921 $1,047 $1,049 $989 $868 0.4 0.2 $0 0.0 2QCY15 3QCY15 4QCY15 1QFY16 2QFY16 2QCY15 3QCY15
Slide 8: Leidos Fiscal Year 2016 Guidance
Leidos Fiscal Year 2016 Guidance Current Prior Revenue $5.1B to $5.2B $5.1B to $5.3B Non-GAAP Diluted EPS* $2.85 to $3.05 $2.75 to $2.95 Cash Flow from Continuing At or above Unchanged Operations $275M Fiscal year 2016 guidance excludes the impact of the potential transaction with Lockheed Martin, i
Slide 9: Profit and Loss – GAAP
Profit and Loss – GAAP Percentage 2QFY16 2QCY15 Change (in millions, except for per share amounts) Revenues $ 1,288 $ 1,257 2.5% Cost of revenues 1,141 1,113 Selling, general and administrative expenses 56 51 Acquisition and integration costs 15 - Asset impairment charges - 29 Restructuring expenses
Slide 10: Profit and Loss – Non-GAAP
Profit and Loss – Non-GAAP Percentage 2QFY16 2QCY151 Change (in millions, except for per share amounts) Revenues $ 1,288 $ 1,257 2.5% Cost of revenues 1,141 1,113 Selling, general and administrative expenses2 54 48 Non-GAAP operating income from continuing operations2,3 93 96 -3.1% Non-GAAP operatin
Slide 11: Appendices
Appendices Historical Financial Information Non-GAAP Financial Measures and Related Reconciliations
Slide 12: Non-GAAP Reconciliations
Non-GAAP Reconciliations This presentation includes certain non-GAAP financial measures, such as non-GAAP operating income, non-GAAP operating income margin, non-GAAP income from continuing operations, non-GAAP diluted earnings per share (EPS) and adjusted earnings before interest, taxes, depreciati
Slide 13: Historical Financial Information ─ Segment Results
Historical Financial Information ─ Segment Results 1QCY15 2QCY15 3QCY15 4QCY15 CY15 1QFY16 2QFY16 (in millions) National Security Solutions Revenues $ 862 $ 879 $ 878 $ 848 $ 3,467 $ 898 $ 915 Operating income $ 62 $ 74 $ 78 $ 65 $ 279 $ 72 $ 61 Health and Infrastructure Sector Revenues $ 385 $ 379
Slide 14: Historical Financial Information ─ Income Statement
Historical Financial Information ─ Income Statement 1QCY15 2QCY15 3QCY15 4QCY15 CY15 1QFY161 2QFY16 (in millions, except for per share amounts) Revenues $ 1,246 $ 1,257 $ 1,302 $ 1,281 $ 5,086 $ 1,312 $ 1,288 Cost of revenues 1,093 1,113 1,138 1,124 4,468 1,154 1,141 Selling, general and administrat
Slide 15: Historical Non-GAAP Income Statement
Historical Non-GAAP Income Statement 1QCY151 2QCY151 3QCY151 4QCY151 CY151 1QFY162 2QFY16 (in millions, except for per share amounts) Revenues $ 1,246 $ 1,257 $ 1,302 $ 1,281 $ 5,086 $ 1,312 $ 1,288 Cost of revenues 1,093 1,113 1,138 1,124 4,468 1,154 1,141 Selling, general and administrative expens
Slide 16: Non-GAAP Operating Income Reconciliation
Non-GAAP Operating Income Reconciliation 1QCY151 2QCY151 3QCY151 4QCY151 CY151 1QFY16 2QFY16 (in millions) GAAP operating income from continuing operations $ 38 $ 64 $ 94 $ 102 $ 298 $ 89 $ 75 Acquisition and integration costs - - - - - 9 15 Amortization of acquired intangible assets 2 3 2 2 9 1 2 A
Slide 17: Non-GAAP Financial Measures Reconciliation
Non-GAAP Financial Measures Reconciliation 1QCY151 2QCY151 3QCY151 4QCY151 CY151 1QFY162 2QFY16 (in millions, except for per share amounts) Non-GAAP operating income from continuing operations $ 82 $ 96 $ 101 $ 107 $ 386 $ 99 $ 93 Depreciation expense 10 9 9 7 35 7 7 Other (expense) income, net (1)
Slide 18: Definitions of Non-GAAP Financial Measures
Definitions of Non-GAAP Financial Measures Non-GAAP operating income is computed by excluding the following items from income (loss) from continuing operations: (i) other income (expense), net; (ii) interest expense; (iii) interest income; (iv) income tax (expense) benefit adjusted to reflect non-GA