Sequestration dampens CACI's quarter results
Layoffs, other moves taken to bolster efficiency and profitability
- By Nick Wakeman
- May 02, 2013
Sequestration and the draw down in Iraq and Afghanistan have conspired to bring down revenue at CACI International.
But the company has made several moves to shore up the bottom line, including layoffs and share repurchases.
The unspecified number of layoffs cost the company $2 million in CACI’s third quarter, which ended March 31, and could cost $3 million to $5 million in the fourth quarter, which ends June 30, according to statements made during the company’s analyst call on Thursday.
The personnel cuts are part of the company’s efforts to gain efficiencies, and to be properly sized going forward, chief financial officer Tom Mutryn said.
The uncertainty surrounding sequestration and delays in contract awards also caused the company to lower its guidance for annual results to the $3.65 billion to $3.75 billion range, which would represent a 0 to minus 3 percent drop from its 2012 results. Net income is expected to be in the $151 million to $157 million range. The low end would be a 2 percent drop from 2012 results, and the high end of the range is a 2 percent gain.
For the third quarter, the company reported $906.2 million in revenue, compared to $928 million in the same quarter last year, a 2.3 percent decline. Net income was $38.5 million, compared to $40.9 million in the 2012 quarter, a 6.1 percent decline. The company said that, if certain adjustments were made to 2012 results, the decline is closer to 0.5 percent.
Some positive signs for CACI include a funded backlog of $1.9 billion, and that virtually all of its expected fiscal 2013 revenue is fully funded by the government. The company also plans to submit more than $12 billion in bids over the next six months.
Nick Wakeman is the editor-in-chief of Washington Technology. Follow him on Twitter: @nick_wakeman.