Leidos Holdings, Inc. · NYSE:LDOS
Leidos — Q1 FY2015 Earnings Presentation
18 slides from Leidos's earnings presentation, Jun 4, 2014
Slide 1: Leidos 1Q FY15 Earnings Conference Call
LEIDOS 1Q FY15 Earnings Conference Call June 4, 2014
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 Externally: Still soft − Difficult market conditions persist − Lack of long-term Federal budget clarity impacting new contract awards Internally: Taking action: − Driving organic growth • Capitalizing on new markets / no longer limited by Organizational Conflicts of Interest (O
Slide 4: National Security Solutions – Overview
National Security Solutions – Overview Revenue decline of $133M, or 12% yoy, Revenue ($M) driven by: 1500 $1,077 Overseas drawdown ($78M), including $944 1000 ramp down of JLI contract 500 Funding reductions, partially offset by 0 program wins 1Q FY 14 1Q FY 15 Managing the factors within our co
Slide 5: National Security Solutions – Awards & Backlog
National Security Solutions – Awards & Backlog Backlog ($M) Book to Bill $9,000 $8,121 2.0 1.8 $8,000 $7,609 $7,337 $7,458 $6,991 $7,000 1.5 $6,000 $5,000 $5,737 $6,166 $5,442 $5,604 $5,005 $4,000 1.0 0.7 $3,000 0.5 0.5 $2,000 0.5 0.3 $1,000 $1,872 $1,895 $1,955 $1,854 $1,986 $0 0.0 1QFY14 2QFY14 3Q
Slide 6: Health and Engineering – Overview
Health and Engineering – Overview Revenue declined $141M, or 27% yoy, Revenue ($M) driven by: $600 $521 Completion of 2 power plant projects ($63M) $380 $400 Timing of security product deliveries ($41M) $200 Sequestration impact on commercial health $0 & Fed. health ($15M) 1Q FY 14 1Q FY 15
Slide 7: Health and Engineering – Awards & Backlog
Health and Engineering – Awards & Backlog Backlog ($M) Book to Bill $2,000 $1,851 1.6 1.5 $1,758 $1,856 $1,847 $1,800 $1,665 1.4 $1,600 $694 $728 1.2 $1,400 $664 $816 1.0 1.0 $669 1.0 $1,200 0.8 $1,000 0.8 0.6 $800 0.6 $600 $1,094 $1,153 $1,123 $996 $1,040 0.4 $400 $200 0.2 $0 0.0 1QFY14 2QFY14 3QFY
Slide 8: Profit and Loss
Profit and Loss $ in millions, except for EPS 1Q15 1Q14 % chg. Revenues 1,320 1,597 -17% Cost of revenues 1,147 1,377 -17% Selling, general and administrative expenses 83 128 -35% Intangible asset impairment charges 0 2 Separation transaction and restructuring expenses 1 14 Operating income 89 76 17
Slide 9: Affirm Leidos Fiscal Year 2015 Guidance
Affirm Leidos Fiscal Year 2015 Guidance FY15 Guidance Revenue $4.9B to $5.1B Non-GAAP Diluted EPS* $2.35 to $2.55 Cash Flow from Continuing Operations At or above $350M * For a definition of Non-GAAP Diluted EPS please see slide 18 9 ©2013 LEIDOS. ALL RIGHTS RESERVED.
Slide 10: Appendix
Appendix * leidos
Slide 11: Working Days per Quarter
Working Days per Quarter Year Q1 Q2 Q3 Q4 ($ in millions) Total FY15 64 63 64 60 251 FY14 65 63 64 60 252 Increase / (Decrease) (1) 0 0 0 (1) 11 ©2013 LEIDOS. ALL RIGHTS RESERVED.
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 ─ Income Statement
Historical Financials ─ Income Statement 1Q14 2Q14 3Q14 4Q14 FY14 1Q15 Revenue $ 1,597 $ 1,462 $ 1,418 $ 1,295 $ 5,772 $ 1,320 Cost of revenue 1,377 1,296 1,223 1,110 5,006 1,147 Selling, general and administrative expenses 126 106 113 97 442 84 Bad debt expense 2 - 43 (1) 44 (1) Intangible asset im
Slide 14: Historical Financials ─ Segment Income Statement
Historical Financials ─ Segment Income Statement 1Q14 2Q14 3Q14 4Q14 FY14 1Q15 Health & Engineering Segment Revenue $ 521 $ 451 $ 408 $ 355 $ 1,735 $ 380 Operating income (loss) $ 35 $ (3) $ (30) $ 19 $ 21 $ 25 ($ in millions) National Security Segment Revenue $ 1,077 $ 1,019 $ 1,012 $ 941 $ 4,049 $
Slide 15: Non-GAAP Operating Income Reconciliation
Non-GAAP Operating Income Reconciliation 1Q14 2Q14 3Q14 4Q14 FY14 1Q15 Revenue $ 1,597 $ 1,462 $ 1,418 $ 1,295 $ 5,772 $ 1,320 Operating income (loss) ($ in millions) from continuing operations $ 76 $ 11 $ (5) $ 82 $ 164 $ 89 Intangible asset impairment charges 2 30 19 - 51 - Separation transaction
Slide 16: Non-GAAP EPS Reconciliation
Non-GAAP EPS Reconciliation 1Q14 2Q14 3Q14 4Q14 FY14 1Q15 GAAP income (loss) from continuing operations $ 40 $ 5 $ (8) $ 47 $ 84 $ 46 Intangible asset impairment charges 2 30 19 - 51 - ($ inSeparation millions) transaction and restructuring expenses 14 19 25 7 65 1 Impact of Plainfield 3 14 32 12 61
Slide 17: Non-GAAP Reconciliations
Non-GAAP Reconciliations Non-GAAP Operating Income is a non-GAAP financial measure that is reconciled to the most directly comparable GAAP financial measure, operating income. Non-GAAP operating income adjusts operating income for the following discrete items: Intangible asset impairment charges –
Slide 18: Non-GAAP Reconciliations (continued)
Non-GAAP Reconciliations (continued) Non-GAAP Earnings Per Share From Continuing Operations is a non-GAAP financial measure that is reconciled to the most directly comparable GAAP financial measure, earnings per share. Non-GAAP earnings per share adjusts earnings per share for the following discrete