Leidos Holdings, Inc. · NYSE:LDOS
Leidos — Q4 FY2015 Earnings Presentation
17 slides from Leidos's earnings presentation, Mar 25, 2015
Slide 1: Leidos 4Q FY15 Earnings Conference Call
LEIDOS 4Q FY15 Earnings Conference Call March 25, 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 Fiscal Year 15 Highlights − Revenue in upper end of guided range − Non-GAAP EPS exceeded the guided range − Robust cash flow from operations − Increased non-GAAP earnings per share year-over-year Ongoing internal priorities include: − Business development − Cost reductions − Po
Slide 4: National Security Solutions – Overview
National Security Solutions – Overview Revenue ($M) Revenue declined $123M, or 13% yoy, 1000 $942 driven by: $819 800 Overseas drawdown (~$80M), including 600 400 reduction in airborne programs 200 Overall reductions in defense and U.S. 0 government spending resulting from 4Q FY 14 4Q FY 15 sequ
Slide 5: National Security Solutions – Awards & Backlog
National Security Solutions – Awards & Backlog Backlog ($M) Book to Bill $8,000 $7,458 $6,991 1.0 0.9 $7,000 $6,615 $6,541 $6,087 $6,000 0.8 $5,000 0.6 $5,604 $5,005 0.6 0.5 $4,000 $4,778 $4,947 0.4 $4,491 $3,000 0.4 0.3 $2,000 0.2 $1,000 $1,854 $1,986 $1,837 $1,594 $1,596 $0 0.0 4QFY14 1QFY15 2QFY1
Slide 6: Health and Engineering – Overview
Health and Engineering – Overview Revenue increased $9M, or 3% yoy, due to: Revenue ($M) Increased sales in the engineering business from 400 $350 $359 new design-build and energy efficiency programs 300 New awards and program ramps in our federal 200 health business 100 Partially offset by lo
Slide 7: Health and Engineering – Awards & Backlog
Health and Engineering – Awards & Backlog Backlog ($M) Book to Bill $2,000 $1,838 $1,840 $1,798 1.2 $1,790 $1,706 1.0 1.0 1.0 1.0 0.9 $1,500 $694 $728 $750 $698 0.8 $645 0.8 $1,000 0.6 0.4 $1,144 $1,112 $1,092 $1,061 $500 $1,048 0.2 $0 0.0 4QFY14 1QFY15 2QFY15 3QFY15 4QFY15 4QFY14 1QFY15 2QFY15 3QFY
Slide 8: Leidos Calendar Year 2015 Guidance
Leidos Calendar Year 2015 Guidance CY15 Guidance Revenue $4.6B to $5.0B Non-GAAP Diluted EPS* $2.20 to $2.45 Cash Flow from Continuing Operations At or above $200M 1 Leidos announced on 3/25/2015 that its Board of Directors has approved a proposal to modify the Company’s fiscal year end to the Frida
Slide 9: Profit and Loss
Profit and Loss 4Q15 4Q14 % chg. (in millions, except for per share amounts) Revenues $1,169 $1,291 (9%) Cost of revenues 1,017 1,107 (8%) Selling, general and administrative expenses 71 97 (27%) Bad debt expense 2 (1) Asset impairment charges 40 - Separation transaction and restructuring expenses 2
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 (Decrease) / Increase (1) 0 0 1 0 1 Leidos announced on 3/25/2015 that its Board of Directors has approved a proposal to modify the Company’s fiscal year end to the Friday closest to the end of December, versus
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 1Q14 2Q14 3Q14 4Q14 FY14 1Q15 2Q15 3Q15 4Q15 FY15 (in millions) National Security Segment Revenue $ 1,077 $ 1,019 $ 1,011 $ 942 $ 4,049 $ 944 $ 925 $ 906 $ 819 $ 3,594 Operating income $ 71 $ 72 $ 66 $ 83 $ 292 $ 77 $ 78 $ 72 $ 59 $ 286 Health & Engin
Slide 14: Historical Financials ─ Income Statement
Historical Financials ─ Income Statement 1Q14 2Q14 3Q14 4Q14 FY14 1Q15 2Q15 3Q15 4Q15 FY15 (in millions, except for per share amounts) Revenue $ 1,593 $ 1,457 $ 1,414 $ 1,291 $ 5,755 $ 1,312 $ 1,306 $ 1,276 $ 1,169 $ 5,063 Cost of revenue 1,373 1,293 1,219 1,107 4,992 1,141 1,119 1,115 1,017 4,392 S
Slide 15: Non-GAAP Operating Income Reconciliation
Non-GAAP Operating Income Reconciliation 1Q14 2Q14 3Q14 4Q14 FY14 1Q15 2Q15 3Q15 4Q15 FY15 (in millions) Operating income (loss) from continuing operations $ 77 $ 10 $ (5) $ 81 $ 163 $ 87 $ (410) $ 72 $ 37 $ (214) Goodwill impairment charges - - - - - - 486 - - 486 Intangible asset impairment charge
Slide 16: Non-GAAP EPS Reconciliation
Non-GAAP EPS Reconciliation 1Q14 2Q14 3Q14 4Q14 FY14 1Q15 2Q15 3Q15 4Q15 FY15 (in millions, except for per share amounts) GAAP income (loss) from continuing operations $ 41 $ 4 $ (8) $ 47 $ 84 $ 45 $ (439) $ 38 $ 26 $ (330) Goodwill impairment charges - - - - - - 486 - - 486 Intangible asset impairm
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 measure, operating income. Non-GAAP operating income and non-GAAP diluted earnings per share are adjusted for