Organic growth, awards drive CACI’s record third quarter

Quarterly revenue tops $913 million, up 16.5 percent from a year ago

CACI International Inc. racked up a record third-quarter fiscal 2011 with revenue of $913.4 million, an increase of 16.5 percent compared with the third quarter of fiscal 2010.

The revenue increase was driven primarily by organic growth of 14.3 percent, “reflecting continued growth in our C4ISR Solutions and Services and Business System Solutions core competencies,” according to the company report of May 5.

Earnings before interest, taxes, depreciation and amortization totaled $76.7 million, an increase of almost 25 percent from the $61.5 million in the third quarter of 2010, the company said.

Operating income grew 30.6 percent over the prior year period to a record $61.8 million, driven by strong growth in direct labor and continued cost control.

In addition, CACI benefited from a $2.6 million decrease to earn-out related liability for acquisitions made in fiscal 2010 and a lower than expected tax rate, the company said.

Net income for the third quarter was a record $36.4 million, or $1.16 diluted earnings per share, an increase of 36.4 percent over net income of $26.7 million, or $0.87 diluted earnings per share, for the same period in fiscal  2010.

Net cash provided by operations in the quarter was $77.6 million.

Contract funding orders in the third quarter also grew to $749 million, bringing orders for the first nine months of FY 2011 to $2.7 billion, a 7.7 percent increase over the first nine months of FY 2010.

Funded backlog at March 31 was $1.9 billion, a 3.6 percent increase over the corresponding third quarter a year ago.

Total backlog at March 31st was $6.9 billion.

During the third quarter, CACI won an estimated $274 million in contracts with more than 60 percent of them coming from new business.

Contract awards for the first nine months of fiscal 2011 were $2.1 billion, a 22.2 percent increase over the first nine months a year ago.

This nine-month figure excludes the $450 million Homeland Security Department TASC award announced in the second quarter, because a protest of this award was sustained in March 2011, CACI said.

Third quarter awards included:

  • A prime position on the Army Forces Command $2.5 billion, five-year indefinite delivery, indefinite quantity Operations, Planning, Training and Resource Support Services II contract.
  • A $41 million, three-year contract under the Army IDIQ Strategic Services Sourcing contract to support information assurance and cryptographic programs for the Army's Communications-Electronics Research, Development and Engineering Center.

Not included in the above estimated value of awards were:

  • A prime position on the FBI’s $30 billion, eight-year IDIQ Information Technology Supplies and Support Services contract.
  • A prime position on the Justice Department’s $1.1 billion, six and one-half year IDIQ Information Technology Support Services 4 contract.

"We delivered a very strong quarter, exceeding our goal of mid- to high-single-digit organic revenue growth and producing outstanding earnings growth," Paul Cofoni, CACI president and CEO, said in the statement.

"With the federal budget in place for the remainder of the government's fiscal year 2011, we expect funding activity to increase over the next two quarters," he added.

CACI International, of Arlington, Va., ranks No. 16 on Washington Technology’s 2010 Top 100 list of the largest federal government contractors.

About the Author

David Hubler is the former print managing editor for GCN and senior editor for Washington Technology. He is freelance writer living in Annandale, Va.

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