Leidos Holdings, Inc. · NYSE:LDOS
Leidos — Q1 CY2015 Earnings Presentation
17 slides from Leidos's earnings presentation, May 12, 2015
Slide 1: Leidos 1Q CY15 Earnings Conference Call
LEIDOS 1Q CY15 Earnings Conference Call May 12, 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 Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by words such as "expects," "intends," "plans," "antici
Slide 3: Executive Summary
Executive Summary Q1 CY15 Highlights − Revenue of $1.25B, -5% yoy − Non-GAAP Operating Income margins of 6.4%, -30bps yoy − Non-GAAP EPS of $0.65, +10% 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 $82M, or 9% yoy, driven Revenue ($M) by: 1000 $944 $862 Overseas drawdown impacting revenues from Overseas Contingency Operations ($57M) 500 Overall reductions in defense and U.S. government spending, and lower contract 0 awards 1Q FY 15 1Q
Slide 5: National Security Solutions – Awards & Backlog
National Security Solutions – Awards & Backlog Backlog ($M) $8,000 $6,991 Book to Bill $6,615 $6,541 $7,000 $6,087 1.0 0.9 $5,859 $6,000 0.8 0.7 $5,000 0.6 $5,005 $4,778 0.6 0.5 $4,000 $4,947 $4,491 $4,073 0.4 $3,000 0.4 $2,000 0.2 $1,000 $1,986 $1,837 $1,594 $1,596 $1,786 $0 0.0 1QFY15 2QFY15 3QFY1
Slide 6: Health and Engineering – Overview
Health and Engineering – Overview Revenue increased $13M, or 3% yoy, due to: Revenue ($M) Higher sales in our engineering, and security 600 products businesses $372 $385 Partially offset by lower sales in commercial health 400 200 0 Operating income decreased $30M yoy, due to: 1Q FY 15 1Q CY 15
Slide 7: Health and Engineering – Awards & Backlog
Health and Engineering – Awards & Backlog Backlog ($M) $2,000 $1,840 $1,798 $1,790 Book to Bill $1,706 $1,611 1.2 1.0 $1,500 $728 $750 $698 1.0 $645 $636 1.0 0.9 0.9 0.8 $1,000 0.8 0.6 $500 $1,112 $1,048 $1,092 $1,061 $975 0.4 0.2 $0 0.0 1QFY15 2QFY15 3QFY15 4QFY15 1QCY15 1QFY15 2QFY15 3QFY15 4QFY15
Slide 8: Leidos Calendar Year 2015 Guidance
Leidos Calendar Year 2015 Guidance Current Prior Revenue Unchanged $4.6B to $5.0B Non-GAAP Diluted EPS* Unchanged $2.20 to $2.45 Cash Flow from Continuing At or above Unchanged Operations $200M * For a definition of Non-GAAP Diluted EPS please see slide 17. 8 ©2015 LEIDOS. ALL RIGHTS RESERVED.
Slide 9: Profit and Loss
Profit and Loss Percentage 1QCY15 1QFY15 Change (in millions, except for per share amounts) Revenues $ 1,246 $ 1,312 (5%) Cost of revenues 1,093 1,141 (4%) Selling, general and administrative expenses 73 83 (12%) Asset impairment charges 40 - Restructuring expenses 2 1 Operating income 38 87 Operati
Slide 10: Appendix A
Appendix A Working Days per Quarter Non-GAAP Financial Information
Slide 11: 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 Increase / (Decrease) (1) 0 0 1 0 1 In March 2015, Leidos announced a change in the fiscal year end from the Friday nearest the end of January to the Friday closest to the end of December. The first quarter res
Slide 12: 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 13: Historical Financials ─ Segment Income Statement
Historical Financials ─ Segment Income Statement 1QFY15 2QFY15 3QFY15 4QFY15 FY15 1QCY15 (in millions) National Security Segment Revenues $ 944 $ 925 $ 906 $ 819 $ 3,594 $ 862 Operating income $ 77 $ 78 $ 72 $ 59 $ 286 $ 62 Health & Engineering Segment Revenues $ 372 $ 381 $ 373 $ 359 $ 1,485 $ 385
Slide 14: Historical Financials ─ Income Statement
Historical Financials ─ Income Statement 1QFY15 2QFY15 3QFY15 4QFY15 FY15 1QCY15 (in millions, except for per share amounts) Revenues $ 1,312 $ 1,306 $ 1,276 $ 1,169 $ 5,063 $ 1,246 Cost of revenues 1,141 1,119 1,115 1,017 4,392 1,093 Selling, general and administrative expenses 83 87 72 73 315 73 G
Slide 15: Non-GAAP Operating Income Reconciliation
Non-GAAP Operating Income Reconciliation 1QFY15 2QFY15 3QFY15 4QFY15 FY15 1QCY15 (in millions) Operating income (loss) from continuing operations $ 87 $ (410) $ 72 $ 37 $ (214) $ 38 Goodwill impairment charges - 486 - - 486 - Intangible asset impairment charges - 24 14 - 38 - Restructuring expenses
Slide 16: Non-GAAP EPS Reconciliation
Non-GAAP EPS Reconciliation 1QFY15 2QFY15 3QFY15 4QFY15 FY15 1QCY15 (in millions, except for per share amounts) GAAP income (loss) from continuing operations $ 45 $ (439) $ 38 $ 26 $ (330) $ 23 Goodwill impairment charges - 486 - - 486 - Intangible asset impairment charges - 24 14 - 38 - Restructuri
Slide 17: 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 and earnings per share, respectively. Non-GAAP operating income and non- GAAP dilut