- Q4 FY24 revenues of $1.74 billion, 7.7% organic growth(1);
FY24 revenues of $7.44 billion, 7.4% organic growth(1); organic
growth reflects impacts of divestitures and additional five working
days in the prior year
- Q4 FY24 net income of $39 million, adjusted EBITDA(1) of
$127 million or 7.3% of revenue; FY24 net income of $477 million,
adjusted EBITDA(1) of $668 million or 9.0% of revenue; impacted by
higher incentive-based compensation
- Q4 FY24 diluted earnings per share of $0.74, adjusted
diluted earnings per share(1) of $1.43; FY24 diluted earnings per
share of $8.88, adjusted diluted earnings per share(1) of
$7.88
- Q4 FY24 cash flows provided by operating activities of $63
million, transaction-adjusted free cash flow(1) of $119 million;
FY24 cash flows provided by operating activities of $396 million,
transaction-adjusted free cash flow(1) of $486 million
- Updated FY25 guidance reflects higher revenue and free cash
flow(1)
Science Applications International Corporation (Nasdaq: SAIC), a
premier Fortune 500® technology integrator driving our nation's
digital transformation across the defense, space, civilian, and
intelligence markets, today announced results for the fourth
quarter and full fiscal year ended February 2, 2024.
“We delivered strong financial results in the quarter with
revenue, earnings per share and free cash flow ahead of
expectations,” said Toni Townes-Whitley, SAIC Chief Executive
Officer. “As we embark on the next phase of our corporate strategy
to become the premier mission integrator in our market, I am
confident that the investments we are making in Fiscal Year 2025
will accelerate our ability to drive value for all our
stakeholders. I want to thank all of our employees for a strong
Fiscal Year 2024, their enthusiasm towards embracing our vision,
and their focus on execution of our strategy.”
Fourth Quarter and Full Fiscal Year
2024: Summary Operating Results
Three Months Ended
Year Ended
February 2, 2024
Percent change
February 3, 2023
February 2, 2024
Percent change
February 3, 2023
(in millions, except per share
amounts)
Revenues
$
1,737
(12
)%
$
1,968
$
7,444
(3
)%
$
7,704
Operating income
79
(33
)%
118
741
48
%
501
Operating income as a percentage of
revenues
4.5
%
-150bps
6.0
%
10.0
%
350bps
6.5
%
Adjusted operating income(1)
89
(32
)%
131
519
(1
)%
526
Adjusted operating income as a percentage
of revenues
5.1
%
-160bps
6.7
%
7.0
%
20bps
6.8
%
Net income attributable to common
stockholders
39
(47
)%
74
477
59
%
300
EBITDA(1)
118
(26
)%
160
891
35
%
658
EBITDA as a percentage of revenues
6.8
%
-130bps
8.1
%
12.0
%
350bps
8.5
%
Adjusted EBITDA(1)
127
(26
)%
171
668
(2
)%
680
Adjusted EBITDA as a percentage of
revenues
7.3
%
-140bps
8.7
%
9.0
%
20bps
8.8
%
Diluted earnings per share
$
0.74
(45
)%
$
1.34
$
8.88
65
%
$
5.38
Adjusted diluted earnings per share(1)
$
1.43
(30
)%
$
2.04
$
7.88
4
%
$
7.55
Net cash provided by operating
activities
$
63
(57
)%
$
145
$
396
(26
)%
$
532
Free cash flow(1)
$
97
(34
)%
$
148
$
414
(9
)%
$
457
Transaction-adjusted free cash flow(1)
$
119
(20
)%
$
148
$
486
6
%
$
457
(1)Non-GAAP measure, see Schedule 5 for
information about this measure
The Company utilizes a 52/53 week fiscal year ending on the
Friday closest to January 31, with fiscal quarters typically
consisting of 13 weeks. Fiscal year 2024 consisted of 52 weeks,
while fiscal year 2023 consisted of 53 weeks with the extra week
occurring in the fourth quarter.
Fourth Quarter Summary
Results
Revenues for the quarter decreased $231 million compared to the
prior year quarter primarily due to the sale of the logistics and
supply chain management business (Supply Chain Business) ($183
million), the deconsolidation of the Forfeiture Support Associates
J.V. (FSA) ($37 million), five additional working days in the prior
year period, contract completions, and a reserve on a customer
receivable related to a program completed prior to FY2022,
partially offset by ramp up on new and existing contracts.
Adjusting for the impact of the divestiture, deconsolidation and
estimated impact of the additional five working days in the prior
year period, revenues increased by approximately 7.7%.
Operating income as a percentage of revenues decreased to 4.5%
for the quarter as compared to 6.0% in the comparable prior year
period primarily due to the sale of the Supply Chain Business,
deconsolidation of FSA, higher incentive-based compensation
expense, including acceleration of stock-based compensation related
to the reorganization and executive transition, and a reserve on a
customer receivable related to a program completed prior to
FY2022.
Adjusted EBITDA(1) as a percentage of revenues for the quarter
was 7.3%, compared to 8.7% for the prior year quarter primarily due
to the sale of the Supply Chain Business, deconsolidation of FSA,
higher incentive-based compensation expense, including acceleration
of stock-based compensation related to the reorganization and
executive transition, and a reserve on a customer receivable
related to a program completed prior to FY2022.
Diluted earnings per share for the quarter was $0.74 compared to
$1.34 in the prior year quarter. Adjusted diluted earnings per
share(1) was $1.43 for the quarter compared to $2.04 in the prior
year quarter. The weighted-average diluted shares outstanding
during the quarter decreased to 52.7 million shares from 55.3
million during the prior year quarter.
Fiscal Year 2024 Summary
Results
Revenues for the fiscal year decreased $260 million compared to
the prior year primarily due to the sale of the Supply Chain
Business ($493 million) and the deconsolidation of FSA ($143
million), contract completions, and five additional working days in
the prior year period. This was partially offset by ramp up in
volume on existing and new contracts. Adjusting for the impact of
the divestiture, deconsolidation and estimated impact of the
additional five working days in the prior year period, revenues
grew approximately 7.4%.
Operating income as a percentage of revenues for the fiscal year
was 10.0%, an increase from 6.5% of revenues in the prior fiscal
year. The increase was primarily due to the sale of the Supply
Chain business ($233 million), deconsolidation of FSA ($7 million),
improved profitability across our contract portfolio and lower
acquisition and integration costs, partially offset by higher
incentive-based compensation expense, including acceleration of
stock-based compensation related to the reorganization and
executive transition.
Adjusted EBITDA(1) as a percentage of revenues for the fiscal
year increased to 9.0%, compared to 8.8% in the prior fiscal year.
The increase was driven by improved profitability across our
contract portfolio, partially offset by higher incentive-based
compensation expense, including acceleration of stock-based
compensation related to the reorganization and executive
transition.
Diluted earnings per share for the year was $8.88 compared to
$5.38 in the prior year. Adjusted diluted earnings per share(1) was
$7.88 for the year compared to $7.55 in the prior year. The
weighted-average diluted shares outstanding during the year
decreased to 53.7 million shares from 55.8 million shares during
the prior year.
Cash Generation and Capital
Deployment
Total cash flows provided by operating activities for the fourth
quarter were $63 million, a decrease of $82 million compared to the
prior year quarter, primarily due to lower cash provided by the
Master Accounts Receivable Purchase Agreement (MARPA) Facility with
MUFG Bank, LTD and other changes in working capital.
Total cash flows provided by operating activities for the year
were $396 million, a decrease of $136 million from the prior year,
primarily due to lower cash provided by the Master Accounts
Receivable Purchase Agreement (MARPA) Facility with MUFG Bank, LTD
and higher tax payments in the current year, partially offset by
lower incentive-based compensation payments in the current year and
other changes in working capital.
During the quarter, SAIC deployed $116 million of capital,
consisting of $86 million of share repurchases in accordance with
established repurchase plans, $19 million in cash dividends to
shareholders, and $11 million of capital expenditures. For the
year, SAIC deployed $463 million of capital, consisting of share
repurchases of $357 million (approximately 3.3 million shares) in
accordance with established repurchase plans, cash dividends of $79
million to shareholders, and $27 million of capital
expenditures.
(1)Non-GAAP measure, see Schedule 5 for information about this
measure
Quarterly Dividend
Declared
As previously announced, subsequent to fiscal year-end, the
Company’s Board of Directors ("Board of Directors") declared a cash
dividend of $0.37 per share of the Company’s common stock payable
on April 26, 2024 to stockholders of record on April 12, 2024. SAIC
intends to continue paying dividends on a quarterly basis, although
the declaration of any future dividends will be determined by the
Board of Directors each quarter and will depend on earnings,
financial condition, capital requirements and other factors.
Backlog and Contract
Awards
Net bookings for the quarter were approximately $1.4 billion,
which reflects a book-to-bill ratio of approximately 0.8. Net
bookings for the year were approximately $6.7 billion, which
reflects a book-to-bill ratio of approximately 0.9.
SAIC’s estimated backlog at the end of fiscal year 2024 was
approximately $22.8 billion of which $3.5 billion was funded.
SAIC was awarded the following contracts during the quarter:
Notable New Awards:
U.S. Navy Torpedo Test Sets: During the quarter, SAIC was
awarded a five-year, $80 million contract by the U.S. Navy for the
completion of the MK710 TSTS design and then to produce and deliver
MK 710 Torpedo System Test Sets (TSTS) to enhance the Navy’s
capability to provide the Submarine force with high quality, tested
and validated MK 48 heavyweight torpedoes. Under the contract, SAIC
will provide MK 710 TSTS which will be used to test and validate
the integrity and operational status of warshot MK 48 heavyweight
torpedoes prior to delivery to the Navy. The testing and validation
of exercise torpedoes supports the training, tactics development
and certification of torpedo upgrades for Navy.
U.S. Navy Hypersonics Advanced Concepts and Strategic
Missions Programs: During the quarter, SAIC was awarded a
five-year, $63 million contract from the U.S. Navy to support
hypersonics advanced concepts and strategic mission solutions for
the Navy’s Strategic Systems Programs (SSP) and the Naval Surface
Warfare Center (NSWC) Crane, Ind., Strategic Systems Hardware
Division (GXW). Under the new contract, SAIC will enhance
hypersonics advanced concepts and strategic missions focused on
next-generation systems, subsystems, components, features and
technologies to include Hardware-in-the-Loop (HWIL) and
Software-in-the-Loop (SWIL) simulations, manufacturing techniques
and other strategic mission areas.
Notable Recompete Awards:
U.S. Army Reserve Command (USARC): During the quarter,
SAIC was awarded a five-year (one year base, plus four, one-year
option periods), $141 million contract to provide system support to
the USARC through their United States Army Reserve Command
Information Technology Support Services (USARC ITSS II) contract.
Under this contract, SAIC will support USARC’s mission by
consolidating enterprise IT services at a global scale through
standardized, responsive and cost-effective solutions. The USARC
ITSS II program will be managed out of Fort Liberty, North
Carolina, and provide a wide range of IT services for more than
65,000 users across over 700 locations, primarily in the U.S. with
additional sites in Asia, Europe, Pacific region and Puerto Rico.
This effort will focus on delivering mission value and enhanced
user experience, while improving cybersecurity, network
availability and reliability for USARC and its customers.
U.S. Space and Intelligence Community: During the
quarter, SAIC was awarded approximately $315 million of contract
awards by space and intelligence community organizations. These
awards represent a combination of new business and recompetes.
Notable Awards Subsequent to Period End (not included in current
quarter bookings):
U.S. Space Force: Subsequent to the end of the quarter,
SAIC was awarded a five-year (one year base, plus four, one-year
option periods), $444 million contract to support Digital
Transformation, Acquisition, Modernization and Modification (DTAMM)
for the U.S. Space Force's Space Systems Command and Space Launch
Deltas (SLDs) 30 and 45. SAIC will support the modernization of the
space launch range instrumentation. The efforts will support an
accelerated national launch cadence across the Eastern Range (ER)
and Western Range (WR) including Cape Canaveral Space Force Station
and Patrick Space Force Base in Fla. and Vandenberg Space Force
Base in Calif. Experts from SAIC and partners will collaborate to
modernize antiquated instrumentation and processes to enable a
faster and more integrated launch environment. SAIC remains at the
forefront of national priorities to explore, secure and influence
space by leveraging industry expertise and legacy in this domain.
In addition to DTAMM, SAIC's work facilitates future unmanned
spacecraft, earth science data-collecting satellites, space-ground
systems for military joint all-domain command and control and
more.
Other Notable News
SAIC Announces to Realign Organization to Optimize Strategic
Pivots and Increase Organic Growth: During the quarter, SAIC
announced a business reorganization that replaces its current two
operating sectors with five customer facing business groups
supported by the enterprise organizations, including the Innovation
Factory. The reorganization is effective February 3, 2024 and is
designed to enhance management's involvement with customers and
advance SAIC’s innovation and go-to-market strategy.
SAIC’s ReadyOne™ software named Big Idea at the 2024 BIG
Innovation Awards: The Business Intelligence Group named SAIC’s
ReadyOne™ software a winning product at the of the 2024 BIG
Innovation Awards. This annual business awards program recognizes
organizations, products, and people that are bringing new ideas to
life in innovative ways. ReadyOne™ is SAIC’s platform to rapidly
install and configure readily usable digital engineering ecosystems
for engineering teams and stakeholders.
Fiscal Year 2025
Guidance
The Company's outlook for fiscal year 2025 is being provided.
The table below summarizes fiscal year 2025 guidance and represents
our views as of March 18, 2024.
PRIOR
CURRENT
Fiscal Year
Fiscal Year
2025 Guidance
2025 Guidance
Revenue
$7.25B - $7.40B
$7.35B - $7.50B
Adjusted EBITDA(1)
-
$680M - $700M
Adjusted EBITDA Margin %(1)
9.4% - 9.6%
9.2% - 9.4%
Adjusted Diluted EPS(1)
$8.00 - $8.20
$8.00 - $8.20
Free Cash Flow(1)
$480M - $500M
$490M - $510M
(1)Non-GAAP measure, see Schedule 5 for
information about this measure
Webcast Information
SAIC management will discuss operations and financial results in
an earnings conference call beginning at 10 a.m. Eastern time on
March 18, 2024. The conference call will be webcast simultaneously
to the public through a link on the Investor Relations section of
the SAIC website (http://investors.saic.com). We will be providing
webcast access only – “dial-in” access is no longer available.
Additionally, a supplemental presentation will be available to the
public through links to the Investor Relations section of the SAIC
website. After the call concludes, an on-demand audio replay of the
webcast can be accessed on the Investor Relations website.
About SAIC
SAIC® is a premier Fortune 500® technology integrator focused on
advancing the power of technology and innovation to serve and
protect our world. Our robust portfolio of offerings across the
defense, space, civilian and intelligence markets includes secure
high-end solutions in mission IT, enterprise IT, engineering
services and professional services. We integrate emerging
technology, rapidly and securely, into mission critical operations
that modernize and enable critical national imperatives.
We are approximately 24,000 strong; driven by mission, united by
purpose, and inspired by opportunities. SAIC is an Equal
Opportunity Employer, fostering a culture of diversity, equity and
inclusion, which is core to our values and important to attract and
retain exceptional talent. Headquartered in Reston, Virginia, SAIC
has annual revenues of approximately $7.4 billion. For more
information, visit saic.com. For ongoing news, please visit our
newsroom.
GAAP to Non-GAAP Guidance
Reconciliation
The Company does not provide a reconciliation of forward-looking
adjusted diluted EPS to GAAP diluted EPS or adjusted EBITDA margin
to GAAP net income due to the inherent difficulty in forecasting
and quantifying certain amounts that are necessary for such
reconciliation. Because certain deductions for non-GAAP exclusions
used to calculate net income may vary significantly based on actual
events, the Company is not able to forecast GAAP diluted EPS or
GAAP net income with reasonable certainty. The variability of the
above charges may have an unpredictable and potentially significant
impact on our future GAAP financial results.
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,” “anticipates,” “believes,” “estimates,”
“guidance,” and similar words or phrases. Forward-looking
statements in this release may include, among others, estimates of
future revenues, operating income, earnings, earnings per share,
charges, total contract value, backlog, outstanding shares and cash
flows, as well as statements about future dividends, share
repurchases and other capital deployment plans. Such statements are
not guarantees of future performance and involve risk,
uncertainties and assumptions, and actual results may differ
materially from the guidance and other forward-looking statements
made in this release as a result of various factors. Risks,
uncertainties and assumptions that could cause or contribute to
these material differences include those discussed in the “Risk
Factors,” “Management’s Discussion and Analysis of Financial
Condition and Results of Operations” and “Legal Proceedings”
sections of our Annual Report on Form 10-K, as updated in any
subsequent Quarterly Reports on Form 10-Q and other filings with
the SEC, which may be viewed or obtained through the Investor
Relations section of our website at www.saic.com or on the SEC’s
website at www.sec.gov. Due to such risks, uncertainties and
assumptions you are cautioned not to place undue reliance on such
forward-looking statements, which speak only as of the date hereof.
SAIC expressly disclaims any duty to update any forward-looking
statement provided in this release to reflect subsequent events,
actual results or changes in SAIC’s expectations. SAIC also
disclaims any duty to comment upon or correct information that may
be contained in reports published by investment analysts or
others.
Schedule 1:
SCIENCE APPLICATIONS
INTERNATIONAL CORPORATION
CONDENSED AND CONSOLIDATED
STATEMENTS OF INCOME
(Unaudited)
Three Months Ended
Year Ended
February 2, 2024
February 3, 2023
February 2, 2024
February 3, 2023
(in millions, except per share
amounts)
Revenues
$
1,737
$
1,968
$
7,444
$
7,704
Cost of revenues
1,545
1,746
6,572
6,816
Selling, general and administrative
expenses
114
102
373
374
Acquisition and integration costs
—
2
1
13
Gain on divestitures, net of transaction
costs
—
—
(240
)
—
Other operating income
(1
)
—
(3
)
—
Operating income
79
118
741
501
Interest expense, net
32
32
120
118
Other (income) expense, net
(1
)
1
1
8
Income before income taxes
48
85
620
375
Provision for income taxes
(9
)
(10
)
(143
)
(72
)
Net income
$
39
$
75
$
477
$
303
Net income attributable to non-controlling
interest
—
1
—
3
Net income attributable to common
stockholders
$
39
$
74
$
477
$
300
Weighted-average number of shares
outstanding:
Basic
52.0
54.6
53.1
55.3
Diluted
52.7
55.3
53.7
55.8
Earnings per share:
Basic
$
0.75
$
1.36
$
8.98
$
5.42
Diluted
$
0.74
$
1.34
$
8.88
$
5.38
Schedule 2:
SCIENCE APPLICATIONS
INTERNATIONAL CORPORATION
CONDENSED AND CONSOLIDATED
BALANCE SHEETS
(Unaudited)
February 2, 2024
February 3, 2023
(in millions)
ASSETS
Current assets:
Cash and cash equivalents
$
94
$
109
Receivables, net
914
936
Inventory, prepaid expenses and other
current assets
123
152
Total current assets
1,131
1,197
Goodwill
2,851
2,911
Intangible assets, net
894
1,009
Property, plant, and equipment, net
91
92
Operating lease right of use assets
152
158
Deferred income taxes
—
14
Other assets
195
162
Total assets
$
5,314
$
5,543
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable and accrued
liabilities
$
711
$
767
Accrued payroll and employee benefits
370
328
Long-term debt, current portion
77
31
Total current liabilities
1,158
1,126
Long-term debt, net of current portion
2,022
2,343
Operating lease liabilities
147
152
Deferred income taxes
28
—
Other long-term liabilities
174
218
Equity:
Total common stockholders' equity
1,785
1,694
Non-controlling interest
—
10
Total stockholders' equity
1,785
1,704
Total liabilities and stockholders'
equity
$
5,314
$
5,543
Schedule 3:
SCIENCE APPLICATIONS
INTERNATIONAL CORPORATION
CONDENSED AND CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Unaudited)
Three Months Ended
Year Ended
February 2, 2024
February 3, 2023
February 2, 2024
February 3, 2023
(in millions)
Cash flows from operating activities:
Net income
$
39
$
75
$
477
$
303
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization
36
39
142
157
Amortization of off-market customer
contracts
—
(2
)
(5
)
(14
)
Amortization of debt issuance costs
3
1
7
9
Deferred income taxes
16
12
(17
)
(17
)
Stock-based compensation expense
26
13
68
48
Gain on divestitures
—
—
(247
)
—
Impairment of assets
—
4
—
4
Other
(5
)
—
(8
)
—
Increase (decrease) resulting from changes
in operating assets and liabilities, net of the effect of the
acquisitions and divestitures:
Receivables
96
123
(46
)
79
Inventory, prepaid expenses, and other
current assets
(56
)
(17
)
(43
)
(10
)
Other assets
(19
)
1
(14
)
6
Accounts payable and accrued
liabilities
(128
)
(47
)
13
(9
)
Accrued payroll and employee benefits
53
(68
)
49
(36
)
Operating lease assets and liabilities,
net
(1
)
(2
)
(4
)
(3
)
Other long-term liabilities
3
13
24
15
Net cash provided by operating
activities
63
145
396
532
Cash flows from investing activities:
Expenditures for property, plant, and
equipment
(11
)
(7
)
(27
)
(25
)
Purchases of marketable securities
(2
)
(2
)
(8
)
(7
)
Sales of marketable securities
1
1
6
4
Proceeds from divestitures
—
—
356
—
Cash divested upon deconsolidation of
joint venture
—
—
(8
)
—
Other
2
(5
)
(5
)
(8
)
Net cash (used in) provided by investing
activities
(10
)
(13
)
314
(36
)
Cash flows from financing activities:
Dividend payments to stockholders
(19
)
(20
)
(79
)
(83
)
Principal payments on borrowings
(166
)
(210
)
(441
)
(990
)
Issuances of stock
4
4
17
16
Stock repurchased and retired or withheld
for taxes on equity awards
(89
)
(59
)
(382
)
(267
)
Proceeds from borrowings
—
210
160
840
Debt issuance costs
—
—
—
(6
)
Distributions to non-controlling
interest
—
(1
)
—
(3
)
Net cash used in financing activities
(270
)
(76
)
(725
)
(493
)
Net (decrease) increase in cash, cash
equivalents and restricted cash
(217
)
56
(15
)
3
Cash, cash equivalents and restricted cash
at beginning of period
320
62
118
115
Cash, cash equivalents and restricted cash
at end of period
$
103
$
118
$
103
$
118
Schedule 4:
SCIENCE APPLICATIONS
INTERNATIONAL CORPORATION
BACKLOG
(Unaudited)
The estimated value of our total backlog
as of the dates presented was:
February 2, 2024
November 3, 2023
February 3, 2023
(in millions)
Funded backlog
$
3,539
$
4,036
$
3,554
Negotiated unfunded backlog
19,224
19,102
20,248
Total backlog
$
22,763
$
23,138
$
23,802
Backlog represents the estimated amount of future revenues to be
recognized under negotiated contracts and task orders as work is
performed and excludes contract awards which have been protested by
competitors until the protest is resolved in our favor. SAIC
segregates backlog into two categories, funded backlog and
negotiated unfunded backlog. Funded backlog for contracts with
government agencies primarily represents contracts for which
funding is appropriated less revenues previously recognized on
these contracts, and does not include the unfunded portion of
contracts where funding is incrementally appropriated or authorized
by the U.S. government and other customers even though the contract
may call for performance over a number of years. Funded backlog for
contracts with non-government agencies represents the estimated
value of contracts which may cover multiple future years under
which SAIC is obligated to perform, less revenues previously
recognized on these contracts. Negotiated unfunded backlog
represents the estimated future revenues to be earned from
negotiated contracts for which funding has not been appropriated or
authorized, and unexercised priced contract options. Negotiated
unfunded backlog does not include any estimate of future potential
task orders expected to be awarded under indefinite delivery,
indefinite quantity ("IDIQ"), U.S. General Services Administration
("GSA") schedules or other master agreement contract vehicles, with
the exception of certain IDIQ contracts where task orders are not
competitively awarded and separately priced but instead are used as
a funding mechanism, and where there is a basis for estimating
future revenues and funding on future anticipated task orders.
Schedule 5:
SCIENCE APPLICATIONS
INTERNATIONAL CORPORATION
NON-GAAP FINANCIAL
MEASURES
(Unaudited)
This schedule describes the non-GAAP financial measures included in
this earnings release. While we believe that these non-GAAP
financial measures may be useful in evaluating our financial
information, they should be considered as supplemental in nature
and not as a substitute for financial information prepared in
accordance with GAAP. Reconciliations, definitions, and how we
believe these measures are useful to management and investors are
provided below. Other companies may define similar measures
differently.
EBITDA, Adjusted
EBITDA and Adjusted Operating Income
Three Months Ended
Year Ended
February 2, 2024
February 3, 2023
February 2, 2024
February 3, 2023
(in millions)
Revenues
$
1,737
$
1,968
$
7,444
$
7,704
Net income
39
75
477
303
Interest expense, net and loss on sale of
receivables
34
36
129
126
Provision for income taxes
9
10
143
72
Depreciation and amortization
36
39
142
157
EBITDA(1)
$
118
$
160
$
891
$
658
EBITDA as a percentage of revenues
6.8
%
8.1
%
12.0
%
8.5
%
Acquisition and integration costs
—
2
1
13
Restructuring and impairment costs
15
17
23
24
Depreciation included in acquisition and
integration costs and restructuring and impairment costs
(1
)
(2
)
(1
)
(3
)
Recovery of acquisition and integration
costs and restructuring and impairment costs
(5
)
(6
)
(6
)
(12
)
Gain on divestitures, net of transaction
costs
—
—
(240
)
—
Adjusted EBITDA(1)
$
127
$
171
$
668
$
680
Adjusted EBITDA as a percentage of
revenues
7.3
%
8.7
%
9.0
%
8.8
%
Operating income
$
79
$
118
$
741
$
501
Operating income as a percentage of
revenues
4.5
%
6.0
%
10.0
%
6.5
%
Acquisition and integration costs
—
2
1
13
Restructuring and impairment costs
15
17
23
24
Recovery of acquisition and integration
costs and restructuring and impairment costs
(5
)
(6
)
(6
)
(12
)
Gain on divestitures, net of transaction
costs
—
—
(240
)
—
Adjusted operating income(1)
$
89
$
131
$
519
$
526
Adjusted operating income as a percentage
of revenues
5.1
%
6.7
%
7.0
%
6.8
%
EBITDA is a performance measure that is
calculated by taking net income and excluding interest and loss on
sale of receivables, provision for income taxes, and depreciation
and amortization. Adjusted EBITDA and adjusted operating income are
performance measures that exclude the impact of non-recurring
transactions that we do not consider to be indicative of our
ongoing operating performance. The acquisition and integration
costs relate to the Company's acquisitions. The gain on
divestitures includes gains associated with the deconsolidation of
FSA and the sale of the logistics and supply chain management
business, net of transaction costs. We believe that these
performance measures provide management and investors with useful
information in assessing trends in our ongoing operating
performance and may provide greater visibility in understanding the
long-term financial performance of the Company.
(1)Non-GAAP measure, see above for definition.
Schedule 5
(continued):
SCIENCE APPLICATIONS
INTERNATIONAL CORPORATION
NON-GAAP FINANCIAL
MEASURES
(Unaudited)
Adjusted Diluted
Earnings Per Share
Three Months Ended February 2,
2024
As Reported
Acquisition and integration
costs
Restructuring and impairment
costs
Recovery of acquisition and
integration costs and restructuring and impairment costs
Amortization of intangible
assets
Gain on divestitures, net of
transaction costs
Non-GAAP results(1)
Income before income taxes
48
—
15
(5
)
29
—
87
Income tax expense
(9
)
—
(1
)
1
(5
)
2
(12
)
Net income attributable to common
stockholders
$
39
$
—
$
14
$
(4
)
$
24
$
2
$
75
Diluted EPS attributable to common
stockholders
$
0.74
$
—
$
0.27
$
(0.08
)
$
0.46
$
0.04
$
1.43
Three Months Ended February 3,
2023
As Reported
Acquisition and integration
costs
Restructuring and impairment
costs
Recovery of acquisition and
integration costs and restructuring and impairment costs
Amortization of intangible
assets
Non-GAAP results(1)
Income before income taxes
85
2
17
(6
)
31
129
Income tax expense
(10
)
—
(2
)
1
(4
)
(15
)
Net Income
75
2
15
(5
)
27
114
Less: Net income attributable to
non-controlling interest
1
—
—
—
—
1
Net income attributable to common
stockholders
$
74
$
2
$
15
$
(5
)
$
27
$
113
Diluted EPS attributable to common
stockholders
$
1.34
$
0.03
$
0.27
$
(0.09
)
$
0.49
$
2.04
Adjusted diluted earnings per share is a
performance measure that excludes the impact of non-recurring
transactions that we do not consider to be indicative of our
ongoing operating performance. The acquisition and integration
costs relate to the Company's acquisitions. The gain on
divestitures includes gain associated the sale of the logistics and
supply chain management business, net of transaction costs.
Adjusted diluted earnings per share also excludes amortization of
intangible assets because we do not have a history of significant
acquisition activity, we do not acquire businesses on a predictable
cycle, and the amount of an acquisition's purchase price allocated
to intangible assets and the related amortization term are unique
to each acquisition. We believe that this performance measure
provides management and investors with useful information in
assessing trends in our ongoing operating performance and may
provide greater visibility in understanding the long-term financial
performance of the Company.
(1)Non-GAAP measure, see above for definition.
Schedule 5
(continued):
SCIENCE APPLICATIONS
INTERNATIONAL CORPORATION
NON-GAAP FINANCIAL
MEASURES
(Unaudited)
Adjusted Diluted
Earnings Per Share
Year Ended February 2,
2024
As Reported
Acquisition and integration
costs
Restructuring and impairment
costs
Recovery of acquisition and
integration costs and restructuring and impairment costs
Amortization of intangible
assets
Gain on divestitures, net of
transaction costs
Non-GAAP results(1)
Income before income taxes
620
1
23
(6
)
115
(240
)
513
Income tax expense
(143
)
—
(2
)
1
(21
)
75
(90
)
Net income attributable to common
stockholders
$
477
$
1
$
21
$
(5
)
$
94
$
(165
)
$
423
Diluted EPS attributable to common
stockholders
$
8.88
$
0.02
$
0.39
$
(0.09
)
$
1.75
$
(3.07
)
$
7.88
Year Ended February 3,
2023
As Reported
Acquisition and integration
costs
Restructuring and impairment
costs
Recovery of acquisition and
integration costs and restructuring and impairment costs
Amortization of intangible
assets
Non-GAAP results(1)
Income before income taxes
375
13
24
(12
)
125
525
Income tax expense
(72
)
(2
)
(5
)
2
(24
)
(101
)
Net Income
$
303
$
11
$
19
$
(10
)
$
101
$
424
Less: Net income attributable to
non-controlling interest
3
—
—
—
—
3
Net income attributable to common
stockholders
$
300
$
11
$
19
$
(10
)
$
101
$
421
Diluted EPS attributable to common
stockholders
$
5.38
$
0.20
$
0.34
$
(0.18
)
$
1.81
$
7.55
Adjusted diluted earnings per share is a
performance measure that excludes the impact of non-recurring
transactions that we do not consider to be indicative of our
ongoing operating performance. The acquisition and integration
costs relate to the Company's acquisitions. The gain on
divestitures includes gains associated with the deconsolidation of
FSA and the sale of the logistics and supply chain management
business, net of transaction costs. Adjusted diluted earnings per
share also excludes amortization of intangible assets because we do
not have a history of significant acquisition activity, we do not
acquire businesses on a predictable cycle, and the amount of an
acquisition's purchase price allocated to intangible assets and the
related amortization term are unique to each acquisition. We
believe that this performance measure provides management and
investors with useful information in assessing trends in our
ongoing operating performance and may provide greater visibility in
understanding the long-term financial performance of the
Company.
(1)Non-GAAP measure, see above for definition.
Schedule 5
(continued):
SCIENCE APPLICATIONS
INTERNATIONAL CORPORATION
NON-GAAP FINANCIAL
MEASURES
(Unaudited)
Free Cash
Flow
Three Months Ended
Year Ended
February 2, 2024
February 3, 2023
February 2, 2024
February 3, 2023
(in millions)
Net cash provided by operating
activities
$
63
$
145
$
396
$
532
Expenditures for property, plant, and
equipment
(11
)
(7
)
(27
)
(25
)
Cash used (provided) by MARPA Facility
45
10
45
(50
)
Free cash flow(1)
$
97
$
148
$
414
$
457
L&SCM divestiture transaction fees
—
—
7
—
L&SCM divestiture cash taxes
18
—
74
—
L&SCM divestiture transition
services
4
—
(9
)
—
Transaction-adjusted free cash
flow(1)
$
119
$
148
$
486
$
457
FY25 Guidance
(in millions)
Net cash provided by operating
activities
$520M to $540M
Expenditures for property, plant, and
equipment
Approximately $30M
Free cash flow(1)
$490M to $510M
Free cash flow is calculated by taking
cash flows provided by operating activities less expenditures for
property, plant, and equipment and less cash flows from our Master
Accounts Receivable Purchasing Agreement ("MARPA Facility") for the
sale of certain designated eligible U.S. government receivables.
Under the MARPA Facility, the Company can sell eligible receivables
up to a maximum amount of $300 million. Transaction-adjusted free
cash flow excludes cash taxes, transaction fees, and other costs
related to the divestiture of the logistics and supply chain
management business from free cash flow as previously defined. We
believe that free cash flow and transaction-adjusted free cash flow
provides management and investors with useful information in
assessing trends in our cash flows and in comparing them to other
peer companies, many of whom present similar non-GAAP liquidity
measures. These measures should not be considered as a measure of
residual cash flow available for discretionary purposes.
(1)Non-GAAP measure, see above for definition.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240315356837/en/
Investor Relations: Joe DeNardi, +1.703.488.8528,
joseph.w.denardi@saic.com
Media: Thais Hanson, +1.703.676.8215,
publicrelations@saic.com
Grafico Azioni Science Applications (NYSE:SAIC)
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Da Nov 2024 a Dic 2024
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