Leidos Holdings, Inc. · NYSE:LDOS
Leidos — Q4 2023 Earnings Presentation
18 slides from Leidos's earnings presentation, Feb 13, 2024
Slide 1: Leidos Q4 FY23 Earnings Conference Call
Leidos Q4 FY23 Earnings Conference Call February 13, 2024
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS Certain statements in this release contain or are based on "forward- our compliance with various U.S. government and other government intellectual property and other proprietary rights by third parties of looking" information within the meaning of the Private Securities pr
Slide 3: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES This presentation includes certain non-GAAP financial measures, Leidos does not provide a reconciliation of forward-looking such as organic growth, non-GAAP operating income, non-GAAP adjusted EBITDA margins or non-GAAP diluted EPS to GAAP net operating margin, non-GAAP e
Slide 4: CEO Key Messages
CEO KEY MESSAGES 2023 FINANCIAL BUILDING A BETTER 2024 PERFORMANCE FUTURE EXPECTATIONS - Record Q4 revenue; robust - New Capability-Focused - Meet or exceed all '22-'24 margins; strong cash Organization operational— targets collections delivering benefits - Robust strategic analysis to - Exceeded 20
Slide 5: Making Smart Smarter
MAKING SMART SMARTER LEIDOS Leidos Q4 2023 Earnings Conference Call 5
Slide 6: FY23 and Q4 Results: Income Statement
FY23 AND Q4 RESULTS: INCOME STATEMENT Revenues Adjusted EBITDA Margin Non-GAAP Diluted EPS $15,438M $7.30 $14,396M 10.8% $6.60 10.4% Fiscal Year +7.2% +40 bps +10.6% FY22 FY23 FY22 FY23 FY22 FY23 11.4% $3,980M 10.7% $1.99 $3,697M $1.83 +7.7% +70 bps +8.7% Q4 LEIDOS Leidos Q4 2023 Earnings Conference
Slide 7: FY23 and Q4 Results: Segment Revenues
FY23 AND Q4 RESULTS: SEGMENT REVENUES Defense Solutions Civil Health $8,732M $8,244M Fiscal Year +5.9% +5.8% +13.2% $3,464M $3,664M $2,688M $3,042M FY22 FY23 FY22 FY23 FY22 FY23 $2,212M $2,068M Q4 +7.0% +2.5% +16.8% $938M $961M $807M $691M LEIDOS Leidos Q4 2023 Earnings Conference Call 7
Slide 8: FY23 and Q4 Results: Segment Non-GAAP Margins
FY23 AND Q4 RESULTS: SEGMENT NON-GAAP MARGINS Defense Solutions Civil Health 18.1% 17.1% Fiscal Year +50 bps 9.2% unchanged 9.2% +100 bps 8.3% 8.8% FY22 FY23 FY22 FY23 FY22 FY23 19.0% 14.3% 11.2% 10.8% Q4 +40 bps -40 bps +470 bps 8.6% 9.0% LEIDOS Leidos Q4 2023 Earnings Conference Call 8
Slide 9: FY23 and Q4 Results: Cash Flow / Balance Sheet
FY23 AND Q4 RESULTS: CASH FLOW / BALANCE SHEET Q4 FY23 - Operating cash flow $304M $1,165M Higher than anticipated Cash Flow Generation - Non-GAAP free cash flow $226M $958M due to strong collections - DSO of 56 days, 1-day improvement sequentially Q4 FY23 Strong balance sheet - Total return to shar
Slide 10: 2024 Guidance
2024 GUIDANCE Measure FY24 Guidance Revenues (B) $15.7 - $16.1 Adjusted EBITDA Margin Mid-to-High 10% Non-GAAP Diluted EPS $7.50 - $7.90 Cash Flows Provided by Operating Activities (B) approximately $1.1 Key Assumptions – Conservatism built around budget uncertainties – 134M average shares outstandi
Slide 11: Appendix: Non-GAAP Reconciliations
APPENDIX Non-GAAP Reconciliations LEIDOS Leidos Q4 2023 Earnings Conference Call 11
Slide 12: Organic Growth
ORGANIC GROWTH (in millions, except growth rates) Q4 FY23 Q4 FY22 % Change FY23 FY22 % Change Defense Solutions Revenues, as reported $ 2,212 $ 2,068 7% $ 8,732 $ 8,244 6% Acquisition and divestiture revenues(1) 9 2 95 6 Organic revenues $ 2,203 $ 2,066 7% $ 8,637 $ 8,238 5% Civil Revenues, as repor
Slide 13: Q4 Non-GAAP Income Metrics
Q4 NON-GAAP INCOME METRICS Three Months Ended December 29, 2023 Three Months Ended December 30, 2022 Acquisition, Acquisition, integration integration and Amortization Asset Goodwill Non- and Amortization Asset Non- As restructuring of acquired impairment impairment GAAP As restructuring of acquired
Slide 14: Full Year Non-GAAP Income Metrics
FULL YEAR NON-GAAP INCOME METRICS Year Ended December 29, 2023 Year Ended December 30, 2022 Acquisition, Acquisition, integration integration and Amortization Asset Goodwill Non- and Amortization Asset Non- As restructuring of acquired impairment impairment GAAP As restructuring of acquired impairme
Slide 15: Q4 Segment Non-GAAP Operating Income
Q4 SEGMENT NON-GAAP OPERATING INCOME Three Months Ended December 29, 2023 Acquisition, integration and Amortization of Goodwill Asset Non-GAAP Non-GAAP Operating restructuring acquired impairment impairment operating operating (in millions) income (loss) costs intangibles charges charges income (los
Slide 16: Full Year Segment Non-GAAP Operating Income
FULL YEAR SEGMENT NON-GAAP OPERATING INCOME Year Ended December 29, 2023 Acquisition, integration and Amortization of Goodwill Asset Non-GAAP Non-GAAP Operating restructuring acquired impairment impairment operating operating (in millions) income (loss) costs intangibles charges charges income (loss
Slide 17: Non-GAAP Free Cash Flow
NON-GAAP FREE CASH FLOW Three Months Ended Year Ended (in millions, except conversion ratio) December 29, December 30, December 29, December 30, 2023 2022 2023 2022 Net cash provided by operating activities(1) $ 304 $ 125 $ 1,165 $ 992 Payments for property, equipment and software (78) (53) (207) (1
Slide 18: Recast of Selected Segment Financials
RECAST OF SELECTED SEGMENT FINANCIALS Year Ended December 29, December 30, (in millions) 2023 2022 National Security and Digital $ 7,196 $ 6,745 Health & Civil 4,238 3,945 Commercial & International 2,126 1,900 Defense Systems 1,878 1,806 Total $ 15,438 $ 14,396 Year Ended December 29, 2023 Acquisit