Leidos Holdings, Inc. · NYSE:LDOS
Leidos — Q4 2022 Earnings Presentation
16 slides from Leidos's earnings presentation, Feb 14, 2023
Slide 1: Leidos Q4 FY22 Earnings Conference Call
Leidos Q4 FY22 Earnings Conference Call February 14, 2023
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: Non-GAAP Financial Measures
Non-GAAP Financial Measures This presentation includes certain non-GAAP financial measures, such as organic growth, 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 an
Slide 4: CEO Key Messages
CEO Key Messages 1 Delivering on financial commitments ▪ Record Q4 revenue and non-GAAP diluted EPS ▪ Success against FY22 guidance; momentum on key financial metrics ▪ Scale and agility enabled us to overcome industry headwinds Deploying capital to create shareholder value 2 ▪ Weighted towards shar
Slide 5: FY22 and Q4 Results: Income Statement
FY22 and Q4 Results: Income Statement Revenues (M) Adjusted EBITDA Margin Non-GAAP Diluted EPS $14,396 11.0% $6.62 $6.60 $13,737 10.4% Fiscal Year +5% -60 bps (0.3)% FY21 FY22 FY21 FY22 FY21 FY22 $3,697 $1.83 $3,491 10.7% 10.3% $1.56 +6% +40 bps +17% Q4 5
Slide 6: FY22 and Q4 Results: Segment Revenues
FY22 and Q4 Results: Segment Revenues (M) Defense Solutions Civil Health $3,464 $2,688 $8,244 $2,548 $8,032 $3,157 Fiscal Year +3% +10% +5% FY21 FY22 FY21 FY22 FY21 FY22 $938 $691 $630 $800 $2,061 $2,068 +0.3% +17% +10% Q4 6
Slide 7: FY22 and Q4 Results: Segment Non-GAAP Margin
FY22 and Q4 Results: Segment Non-GAAP Margin Defense Solutions Civil Health 18.8% 17.1% 8.6% 10.2% Fiscal Year 8.3% 9.2% -100 bps -170 bps -30 bps FY21 FY22 FY21 FY22 FY21 FY22 17.8% 11.2% 8.6% 10.0% 14.3% 8.2% +40 bps +120 bps -350 bps Q4 7
Slide 8: FY22 and Q4 Results: Cash Flow/Balance Sheet
FY22 and Q4 Results: Cash Flow/Balance Sheet Solid cash generation—maintaining operational focus Q4 FY22 Cash Flow ▪ Operating cash flow $105M $986M Generation ▪ Free cash flow $52M $857M ▪ DSO of 58 days for second straight quarter Following balanced long-term capital deployment approach Q4 FY22 ▪
Slide 9: 2023 Guidance
2023 Guidance Measure FY23 Guidance Revenues (billions) Prior $14.7 - $15.1 Adjusted EBITDA Margin 10.3% - 10.5% Non-GAAP Diluted EPS $6.40 - $6.80 Cash Flows Provided by Operating Activities (millions) at or above $700 KEY ASSUMPTIONS ▪ Continuing Resolution for 10/1/23 - 12/31/23 with no Governmen
Slide 10: Appendix: Non-GAAP Reconciliations
Appendix: Non-GAAP Reconciliations
Slide 11: Organic Growth
Organic Growth Percent Percent (in millions, except growth rates) Q4 FY22 Q4 FY21 Change FY22 FY21 Change Defense Solutions Revenues, as reported $ 2,068 $ 2,061 NM $ 8,244 $ 8,032 3% Acquisition and divestiture revenues(1) 21 5 80 17 Organic revenues $ 2,047 $ 2,056 NM $ 8,164 $ 8,015 2% Civil Reve
Slide 12: Non-GAAP Income Metrics Reconciliation (Quarter)
Non-GAAP Income Metrics Reconciliation (Quarter) Three Months Ended December 30, 2022 Three Months Ended December 31, 2021 Acquisition, Acquisition, integration integration and Amortization Asset and Amortization Asset restructuring of acquired impairment Derivative Non-GAAP restructuring of acquire
Slide 13: Non-GAAP Income Metrics Reconciliation (FY)
Non-GAAP Income Metrics Reconciliation (FY) Year Ended December 30, 2022 Year Ended December 31, 2021 Acquisition, Acquisition, integration integration and Amortization Asset and Amortization Asset (in millions, except per share restructuring of acquired impairment Derivative Non-GAAP restructuring
Slide 14: Segment Non-GAAP OI Reconciliation (Quarter)
Segment Non-GAAP OI Reconciliation (Quarter) Three Months Ended December 30, 2022 Acquisition, integration and Amortization of Asset Non-GAAP Non-GAAP Operating restructuring acquired impairment operating operating (in millions) income (loss) costs intangibles charges income (loss) margin(1) Defense
Slide 15: Segment Non-GAAP OI Reconciliation (FY)
Segment Non-GAAP OI Reconciliation (FY) Year Ended December 30, 2022 Acquisition, integration and Amortization of Asset Non-GAAP Non-GAAP Operating restructuring acquired impairment operating operating (in millions) income (loss) costs intangibles charges income (loss) margin(1) Defense Solutions $
Slide 16: Free Cash Flow
Free Cash Flow Three Months Ended Year Ended December 30, December 31, December 30, December 31, (in millions, except conversion ratio) 2022 2021 2022 2021 Net cash provided by operating activities $ 105 $ 210 $ 986 $ 1,031 Payments for property, equipment and software (53) (33) (129) (104) Free cas