Leidos Holdings, Inc. · NYSE:LDOS
Leidos — Q2 CY2015 Earnings Presentation
19 slides from Leidos's earnings presentation, Aug 5, 2015
Slide 1: Leidos 2Q CY15 Earnings Conference Call
LEIDOS 2Q CY15 Earnings Conference Call August 5, 2015
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 Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by words such as "expects," "intends," "plan
Slide 3: Executive Summary
Executive Summary Q2 CY15 Highlights − Revenue of $1.26B, -4% yoy − Non-GAAP Operating Income margins of 7.4%, -30bps yoy − Non-GAAP EPS of $0.73, +20% yoy Ongoing internal priorities include: − People − Innovation − Cost Capital deployment philosophy unchanged: − Paying regular quarterly divi
Slide 4: National Security Solutions – Overview
National Security Solutions – Overview Revenue declined $46M, or 5% yoy, driven Revenue ($M) by: 1000 $925 $879 Overseas drawdown impacting revenues from Overseas Contingency Operations ($51M) 500 0 Operating Income: 2Q FY 15 2Q CY 15 Operating income decreased $4M, or 5% yoy in-line with revenu
Slide 5: National Security Solutions – Awards & Backlog
National Security Solutions – Awards & Backlog Backlog ($M) $9,000 $8,497 Book to Bill $8,000 5.0 $6,615 $6,541 4.0 $7,000 $6,087 4.0 $5,859 $6,000 $5,000 $6,638 3.0 $4,000 $4,778 $4,947 $4,491 $4,073 2.0 $3,000 0.9 1.0 0.6 0.4 0.7 $2,000 $1,000 $1,837 $1,594 $1,596 $1,786 $1,859 0.0 $0 2QFY15 3QFY1
Slide 6: Health and Engineering – Overview
Health and Engineering – Overview Revenue decreased $2M, or 1% yoy, due to: Revenue ($M) Growth in engineering, offset by lower volumes in 600 commercial health and timing of security product $381 $379 shipments. 400 200 Operating income increased $475M yoy, due to: 0 Prior year period included
Slide 7: Health and Engineering – Awards & Backlog
Health and Engineering – Awards & Backlog Backlog ($M) $2,000 $1,798 $1,790 $1,706 Book to Bill $1,727 $1,800 $1,611 1.4 1.3 $1,600 $698 1.2 $1,400 $750 $645 1.0 $636 $806 1.0 0.9 $1,200 0.9 0.8 $1,000 0.8 $800 0.6 $600 $1,092 $1,061 0.4 $1,048 $975 $921 $400 0.2 $200 0.0 $0 2QFY15 3QFY15 4QFY15 1QC
Slide 8: Leidos Calendar Year 2015 Guidance
Leidos Calendar Year 2015 Guidance Current Prior Revenue $4.8B to $5.0B $4.6B to $5.0B Non-GAAP Diluted EPS* $2.40 to $2.60 $2.20 to $2.45 Cash Flow from Continuing At or above At or above Operations $250M $200M * For a definition of Non-GAAP Diluted EPS please see slide 19. 8 ©2015 LEIDOS. ALL RIGH
Slide 9: Profit and Loss
Profit and Loss Percentage 2QCY15 2QFY15 Change (in millions, except for per share amounts) Revenues $ 1,257 $ 1,306 (4%) Cost of revenues 1,113 1,119 (1%) Selling, general and administrative expenses 51 87 (41%) Goodwill impairment charges - 486 Asset impairment charges 29 24 Operating income (loss
Slide 10: Profit and Loss – Non-GAAP
Profit and Loss – Non-GAAP Percentage 2QCY15 2QFY15 Change (in millions, except for per share amounts) Revenues $ 1,257 $ 1,306 (4%) Cost of revenues 1,113 1,119 (1%) Selling, general and administrative expenses 51 87 (41%) Non-GAAP Operating income1 93 100 Non-GAAP operating income margin 7.4% 7.7%
Slide 11: Appendix A
Appendix A Working Days per Quarter 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: 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 14: Historical Financials ─ Segment Income Statement
Historical Financials ─ Segment Income Statement 1QFY15 2QFY15 3QFY15 4QFY15 FY15 1QCY15 2QCY15 (in millions) National Security Segment Revenues $ 944 $ 925 $ 906 $ 819 $ 3,594 $ 862 $ 879 Operating income $ 77 $ 78 $ 72 $ 59 $ 286 $ 62 $ 74 Health & Engineering Segment Revenues $ 372 $ 381 $ 373 $
Slide 15: Historical Financials ─ Income Statement
Historical Financials ─ Income Statement 1QFY15 2QFY15 3QFY15 4QFY15 FY15 1QCY15 2QCY15 (in millions, except for per share amounts) Revenues $ 1,312 $ 1,306 $ 1,276 $ 1,169 $ 5,063 $ 1,246 $ 1,257 Cost of revenues 1,141 1,119 1,115 1,017 4,392 1,093 1,113 Selling, general and administrative expenses
Slide 16: Historical Financials ─ Non-GAAP Income Statement
Historical Financials ─ Non-GAAP Income Statement 1QFY15 2QFY15 3QFY15 4QFY15 FY15 1QCY15 2QCY15 (in millions, except for per share amounts) Revenues $ 1,312 $ 1,306 $ 1,276 $ 1,169 $ 5,063 $ 1,246 $ 1,257 Cost of revenues 1,141 1,119 1,115 1,017 4,392 1,093 1,113 Selling, general and administrative
Slide 17: Non-GAAP Operating Income Reconciliation
Non-GAAP Operating Income Reconciliation 1QFY15 2QFY15 3QFY15 4QFY15 FY15 1QCY15 2QCY15 (in millions) Operating income (loss) from continuing operations $ 87 $ (410) $ 72 $ 37 $ (214) $ 38 $ 64 Asset impairment charges - 510 17 40 567 40 29 Restructuring expenses 1 - - 2 3 2 - Non-GAAP operating inc
Slide 18: Non-GAAP EPS Reconciliation
Non-GAAP EPS Reconciliation 1QFY15 2QFY15 3QFY15 4QFY15 FY15 1QCY15 2QCY15 (in millions, except for per share amounts) GAAP income (loss) from continuing operations $ 45 $ (439) $ 38 $ 26 $ (330) $ 23 $ 37 Asset impairment charges - 510 17 40 567 40 29 Restructuring expenses 1 - - 2 3 2 - Total non-
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 earnings (loss) per share, respectively. Non-GAAP operating income and n