Leidos Holdings, Inc. · NYSE:LDOS
Leidos — Q1 2022 Earnings Presentation
14 slides from Leidos's earnings presentation, May 3, 2022
Slide 1: Leidos Q1 FY22 Earnings Conference Call
Leidos Q1 FY22 Earnings Conference Call May 3, 2022
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: Non-GAAP Financial Measures
Non-GAAP Financial Measures This presentation includes certain non-GAAP financial measures, such as organic growth, 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 an
Slide 4: CEO Key Messages
CEO Key Messages 1 Strong, balanced financial results ▪ Record revenues on YoY growth of 5.4% (4.4% organic) ▪ Non-GAAP diluted EPS and adjusted EBITDA margin ahead of plan ▪ On path to deliver over $1B of operating cash flow in 2022 Business Development momentum sets stage for continued growth 2 ▪
Slide 5: Q1 FY22 Results: Income Statement
Q1 FY22 Results: Income Statement Revenues (M) Adjusted EBITDA Margin (%) Non-GAAP Diluted EPS ($) $3,494 $1.73 $3,315 +5.4% total +4.4% organic 11.7% -8.6% $1.58 -150 bps 10.2% $3,460 Q1 FY21 Q1 FY22 Q1 FY21 Q1 FY22 Q1 FY21 Q1 FY22 Note: Shaded upper portion on Q1 FY22 revenues represents acquired
Slide 6: Q1 FY22 Results: Reporting Segments
Q1 FY22 Results: Reporting Segments Defense Solutions Civil Health $650 $766 $795 $591 Revenues (M) $1,958 $2,049 +3.8% +4.6% total +10.0% +3.0% organic $2,015 Q1 FY21 Q1 FY22 Q1 FY21 Q1 FY22 Q1 FY21 Q1 FY22 Non-GAAP Op Margin 12.0% 9.2% -110 bps 8.1% 18.6% 19.2% -430 bps 7.7% +60 bps Note: Shaded u
Slide 7: Q1 FY22 Results: Cash Flow / Balance Sheet
Q1 FY22 Results: Cash Flow / Balance Sheet On path to deliver over $1B in operational cash flow Cash Flow ▪ Operating cash flow $93M Generation ▪ Free cash flow $65M ▪ Consistent with historical pattern, cash generation heavily weighted to H2 Following balanced long-term approach to capital deployme
Slide 8: 2022 Guidance
2022 Guidance Current Prior Measure FY22 Guidance Revenues (billions) $13.9 - $14.3 Adjusted EBITDA Margin 10.3% - 10.5% Non-GAAP Diluted EPS $6.10 - $6.50 Cash Flows Provided by Operating Activities (billions) at or above $1.0 The guidance for cash flows provided by operating activities assumes tha
Slide 9: 2022 Guidance Assumptions
2022 Guidance Assumptions Prior ▪ Continuing Resolution for GFY23 in place from 10/1/22-12/31/22 with no Government shutdown ▪ Customer payment practices remain consistent with historical experience ▪ Procurement schedules are not further extended or cancelled beyond Customer/Budget our present fore
Slide 10: Appendix: Non-GAAP Reconciliations
Appendix: Non-GAAP Reconciliations
Slide 11: Organic Growth
Organic Growth Percent (in millions, except growth rates) Q1 FY22 Q1 FY21 Change Defense Solutions Revenues, as reported $ 2,049 $ 1,958 5% Acquisition and divestiture revenues(1) 34 2 Pro-forma revenues (Organic Growth Rate) $ 2,015 $ 1,956 3% Civil Revenues, as reported $ 795 $ 766 4% Health Reven
Slide 12: Non-GAAP Income Metrics Reconciliation
Non-GAAP Income Metrics Reconciliation Three Months Ended April 1, 2022 Three Months Ended April 2, 2021 Acquisition, Acquisition, integration and Amortization of integration and Amortization of restructuring acquired Non-GAAP restructuring acquired Non-GAAP (in millions, except per share amounts) A
Slide 13: Segment Non-GAAP Income Metrics Reconciliation
Segment Non-GAAP Income Metrics Reconciliation Three Months Ended April 1, 2022 Acquisition, integration and Amortization of Non-GAAP Non-GAAP Operating restructuring acquired operating operating (in millions) income (loss) costs intangibles income (loss) margin(1) Defense Solutions $ 133 $ — $ 33 $
Slide 14: Free Cash Flow
Free Cash Flow Three Months Ended (in millions, except conversion ratio) April 1, 2022 April 2, 2021 Net cash provided by operating activities $ 93 $ 239 Payments for property, equipment and software (28) (26) Free cash flow $ 65 $ 213 Net income attributable to Leidos common stockholders $ 175 $ 20