Leidos Holdings, Inc. · NYSE:LDOS
Leidos — Q4 2020 Earnings Presentation
20 slides from Leidos's earnings presentation, Feb 23, 2021
Slide 1: Leidos 4Q 2020 Earnings Conference Call
Leidos 4Q 2020 Earnings Conference Call February 23, 2021
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: 4Q & FY 2020 Highlights
4Q & FY 2020 Highlights Generated record revenue of $3.3B for 4Q; $12.3B for FY 2020 Continued Delivered year-over-year revenue growth of 10.1% for 4Q; 10.8% for FY 2020 Revenue Growth Grew backlog to a record of $31.9B; 1.4x TTM book-to-bill Operating Margin Achieved adjusted EBITDA margins
Slide 4: Leidos FY 2020 Results
Leidos FY 2020 Results Revenue Non-GAAP Adjusted EBITDA Cash Flows from ($M) Diluted EPS Margin Operations(1) ($) (%) ($M) $12,297 $11,094 +10.8% 10.5% 10.8% (+0.8% $5.83 $1,334 organic) $5.17 +30bps +12.8% +$342M $992 FY2019 FY2020 FY2019 FY2020 FY2019 FY2020 FY2019 FY2020 Note 1: Dotted line repre
Slide 5: Leidos 4Q FY 20 Results
Leidos 4Q FY 20 Results Revenue Non-GAAP Adjusted EBITDA Cash Flows from ($M) Diluted EPS Margin Operations(1) ($) (%) ($M) $3,252 +10.1% $2,954 (-3.1% $1.63 11.0% 11.3% $169 organic) $1.51 +7.9% +30bps -$221M $(52) 4Q FY19 4Q FY20 4Q FY19 4Q FY20 4Q FY19 4Q FY20 4Q FY19 4Q FY20 Note 1: Dotted line
Slide 6: Defense Solutions Segment
Defense Solutions Segment Revenue Non-GAAP Operating Income Non-GAAP Operating Margin ($M) ($M) (%) $1,928 $172 +16.5% $163 9.8% (-1.6% $1,655 organic) +5.5% 8.9% -90bps 4Q FY19 4Q FY20 4Q FY19 4Q FY20 4Q FY19 4Q FY20 Note 1: Dotted line represents organic revenue for the quarter; see appendix for c
Slide 7: Civil Segment
Civil Segment Revenue Non-GAAP Operating Income Non-GAAP Operating Margin ($M) ($M) (%) $773 $811 +4.9% 12.0% 12.3% (-6.6% organic) $100 +30bps $93 +7.5% 4Q FY19 4Q FY20 4Q FY19 4Q FY20 4Q FY19 4Q FY20 Note 1: Dotted line represents organic revenue for the quarter; see appendix for calculation of or
Slide 8: Health Segment
Health Segment Revenue Non-GAAP Operating Income Non-GAAP Operating Margin ($M) ($M) (%) 18.5% $526 $513 $95 16.0% +250bps $84 +13.1% -2.5% 4Q FY19 4Q FY20 4Q FY19 4Q FY20 4Q FY19 4Q FY20 Note 1: See appendix for definition & reconciliation of Non-GAAP Financial Measures 8
Slide 9: Backlog & Book-to-Bill
Backlog & Book-to-Bill 30.7 31.7 31.9 28.3 Backlog1 ($B) 24.1 23.6 24.9 25.3 22.1 18.7 5.4 6.2 7.1 6.8 6.6 4Q FY19 1Q FY20 2Q FY20 3Q FY20 4Q FY20 Funded Backlog Negotiated Unfunded Backlog 1.9 Book-to-Bill22 1.6 1.5 1.4 Book-to-Bill 1.3 1.4 1.6 1.3 1.0 1.0 4Q FY19 1Q FY20 2Q FY20 3Q FY20 4Q FY20 Qu
Slide 10: 2021 Guidance
2021 Guidance Revenue $13.7B - $14.1B Adjusted EBITDA Margin(1) 10.3% - 10.5% Non-GAAP Diluted EPS(1)(2) $6.15 - $6.45 Operating Cash Flow(3)(4) Meet or exceed $850M Note: 2021 guidance does not include the announced acquisition of Gibbs & Cox. (1) A quantitative reconciliation of adjusted EBITDA ma
Slide 11: Guidance Assumptions
Guidance Assumptions Severity and duration of COVID-19 outbreak do not worsen beyond our current estimates Business Specific Return to additional closed customer work locations at the start of the 2nd quarter Factors Supplier lead times and delivery costs do not degrade from current state Ov
Slide 12: 2020 ESG Accomplishments & Recognitions
2020 ESG Accomplishments & Recognitions Sustainability is embedded within our business Environmental Social Governance 2021 Initiatives • SASB Submission • Science Based Target • Expanded Supply Chain Sustainability Program 12
Slide 13: Appendix
Appendix »~ leidos
Slide 14: Non-GAAP Financial Measures
Non-GAAP Financial Measures This presentation includes certain non-GAAP financial measures, such as 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 and amortization (E
Slide 15: Definition of Non-GAAP Financial Measures
Definition of Non-GAAP Financial Measures Non-GAAP operating income is computed by excluding the following items from net income: (i) non-operating expense, net; (ii) income tax expense, and (iii) the following discrete items and the related tax impacts: Acquisition, integration and restructuring
Slide 16: Organic Revenue Calculation
Organic Revenue Calculation 1QFY19 2QFY19 3QFY19 4QFY19 FY19 1QFY20 2QFY20 3QFY20 4QFY20 FY20 (dollars in millions) Defense Solutions Revenues, as reported $ 1,491 $ 1,560 $ 1,594 $ 1,655 $ 6,300 $ 1,705 $ 1,757 $ 1,951 $ 1,928 $ 7,341 Dynetics revenues (Acquired on 1/31/2020) - - - - - 129 206 302
Slide 17: Non-GAAP Operating Income Reconciliation
Non-GAAP Operating Income Reconciliation 1QFY19 2QFY19 3QFY19 4QFY19 FY19 1QFY20 2QFY20 3QFY20 4QFY20 FY20 (in millions) Operating income $ 192 $ 210 $ 249 $ 261 $ 912 $ 192 $ 249 $ 258 $ 299 $ 998 Acquisition, integration and restructuring costs 2 1 - 2 5 12 16 5 6 39 Amortization of acquired intan
Slide 18: Reportable Segments Non-GAAP Operating Income Reconciliation
Reportable Segments Non-GAAP Operating Income Reconciliation Quarter Ended January 1, 2021 (in millions) Acquisition, integration Amortization of Asset impairment Non-GAAP operating Operating income and restructuring costs acquired intangibles charges income Defense Solutions $ 147 $ 1 $ 24 $ - $ 17
Slide 19: Non-GAAP Financial Measures Reconciliation
Non-GAAP Financial Measures Reconciliation 1QFY19 2QFY19 3QFY19 4QFY19 FY19 1QFY20 2QFY20 3QFY20 4QFY20 FY20 (in millions, except per share amounts) Non-GAAP operating income $ 239 $ 256 $ 295 $ 309 $ 1,099 $ 246 $ 327 $ 324 $ 349 $ 1,246 Depreciation expense 15 14 16 16 61 18 20 22 24 84 Other inco
Slide 20: Non-GAAP Financial Measures Reconciliation (cont'd)
Non-GAAP Financial Measures Reconciliation (cont’d) Quarter Ended January 1, 2021 (in millions, except per share amounts) Acquisition, integration Amortization of Asset impairment As reported and restructuring costs acquired intangibles charges Non-GAAP results Operating income $ 299 $ 6 $ 43 $ 1 $