Good quarter for CACI but uncertainty ahead

CACI International reported a record $928 million in revenue for the third-quarter 2012, an increase of 1.6 percent over the $913.4 million for the corresponding quarter of 2011.

Contract awards increased 16.1 percent to $547 million and contract funding orders increased 6.8 percent to $800 million.

Operating income was $72.8 million, a 17.8 percent increase over third-quarter 2011. And net income rose 12.2 percent to $40.9 million over the $36.4 million in the third-quarter 2011.

"We are pleased to have achieved record third-quarter results, given the challenging environment,” said CACI President and CEO Paul Cofoni, in the May 2 announcement. “We continue to grow direct labor, the most important driver of our bottom line performance, which has contributed to our improved operating margin. Awards and funding orders remained strong, and funded backlog improved relative to a year ago, a positive indicator of our future financial performance.”

Cofoni went on to say that CACI is “experiencing the effects of budget uncertainty on our customers, leading to slower-than-anticipated procurement actions that are affecting our revenue growth. We remain focused on our core strategy and continued solid execution for our customers, which will help us navigate through this period of uncertainty,” he said.

CACI will continue to focus on the key areas of defense, intelligence, homeland security, and government transformation with an emphasis on continuing to grow CACI direct labor, he added.

In the third quarter of FY11, the liabilities decreased and operating income increased by $2.8 million, CACI reported.

Pro forma operating income grew 23.3 percent over the prior year period to $72.8 million, driven primarily by growth of 8.1 percent in direct labor.

Pro forma net income attributable to CACI for the third quarter of FY12 was a record $40.9 million, or $1.45 pro forma diluted earnings per share, an increase of 17.6 percent over pro forma net income attributable to CACI of $34.7 million, or $1.11 pro forma diluted earnings per share, for the same period in FY11.

Net cash provided by operations in the quarter was $59.5 million.

CACI International Inc., of Arlington, Va., ranks No. 14 on Washington Technology’s 2011 Top 100 list of the largest federal government contractors.