CACI International Inc. ended its fiscal 2011 by racking up record revenues of $963.2 million for the fourth quarter and $3.6 billion for the year. What is behind its growth?
CACI International Inc. ended its fiscal 2011 with record revenues for the fourth quarter and for the year, hitting $3.6 billion in revenue, a 13.6 percent increase over last year.
The company's fiscal year ends June 30 and for the last quarter of the year, revenue totaled a record $963.2 million, a 13.5 percent increase from the $848.7 revenue recorded in the corresponding quarter of FY 2010.
The revenue increase was driven primarily by organic growth of 11.5 percent, reflecting continued growth in CACI’s command, control, communications, computers, intelligence, surveillance, and reconnaissance (C4ISR) solutions and services, cyber solutions, enterprise IT management, program management and Systems Engineering and Technical Assistance (SETA) services core competencies, the statement said.
Pro forma operating income grew to a record $69.9 million, or 36.3 percent over the prior year 4Q period’s $51.3 million, driven by strong growth in direct labor and continued cost control.
CACI also benefitted from a lower than expected tax rate, the company said.
Pro forma net income for the fourth quarter of FY11 was a record $40.9 million, or $1.28 pro forma diluted earnings per share, an increase of 44.8 percent over pro forma net income of $28.3 million, or $0.91 pro forma diluted earnings per share, for the same period in FY10.
Net cash provided by operations in the quarter was $79.1 million.
Liabilities decreased $8.2 million in the fourth quarter with a corresponding increase to operating income. In the fourth quarter of FY10, the liabilities decreased, and operating income increased, by $2.7 million, CACI said.
Contract funding orders in the fourth quarter were $871.5 million compared to $895.4 million in the year earlier quarter. Contract funding orders for FY11 were $3.6 billion, a 5.0 percent increase over FY10.
Funded backlog at June 30 was $1.8 billion compared to $1.9 billion at June 30, 2010. Total backlog at June 30 was $6.8 billion, the same as a year ago.
During the fourth quarter, CACI won contract awards with an estimated value of $550 million. Approximately one-half of these awards were for new business.
Fourth quarter contract awards included approximately $183 million under the Strategic Services Sourcing (S3) contract and approximately $136 million in previously unannounced national security-related awards.
Not included in the above estimated value of awards in the quarter was CACI’s prime position on the Veterans Affairs Department’s multiple award five-year, $12 billion, IDIQ Transformation Twenty-One Total Technology contract.
"In Fiscal 2011, we delivered on our financial goals of mid- to high-single-digit organic revenue growth and double-digit earnings growth,” Paul Cofoni, CACI president and CEO, said in the statement.
“We achieved record results in revenue, operating income, EPS, and cash flow, and our strong funding orders for the year — the highest in CACI's history — give us confidence that we will sustain our top and bottom line growth into the future,” he said.
“CACI remains well positioned within the services industry and has executed excessively well under strong leadership,” Lazard Capital Markets’ aerospace and defense analyst Michael Lewis, wrote in an August 18 analysis of CACI’s earnings.
“Q4, again, exceeded our expectations with CACI remaining the strongest organic grower in the services sector,” he said.