Science Applications International Corporation

Welcome to SAIC's first quarter fiscal year 2022 earnings call. At this time, I would like to turn the conference over to Shane Kinestra, SAIC's Vice President of Investor Relations. Please go ahead, sir.

Good afternoon, and thank you for joining SAIC's first quarter fiscal year 2022 earnings call. My name is Shane Kinestra, Vice President of Investor Relations and And joining me today to discuss an exciting announcement and our business and financial results are Nazik Keen, SAIC's Chief Executive Officer, and Prabhu Natarajan, our Chief Financial Officer. Today, we will discuss our results for the first quarter of fiscal year 2022 that ended April 30th, 2021. This afternoon, we issued our earnings release, which can be found at investors.saic.com, where you'll also find supplemental financial presentation slides to be utilized in conjunction with today's call. In addition, we issue a separate press release today regarding the company's intention to acquire Halfacre and Associates. These documents, in addition to our Form 10-Q to be filed soon, should be utilized in evaluating our results and outlook, along with information provided on today's call. Please note that we may make forward-looking statements on today's call that are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from statements made on this call. I refer you to our SEC filings for a discussion of these risks, including the risk factors section of our annual report on Form 10-K and quarterly reports on Form 10-Q. In addition, the statements represent our views as of today, and subsequent events may cause our views to change. We may elect to update the forward-looking statements at some point in the future, but we specifically disclaim any obligation to do so. In addition, we will discuss non-GAAP financial measures and other metrics, which we believe provide useful information for investors, and both our press release and supplemental financial presentation slides include reconciliations to the most comparable gap measures. It is now my pleasure to introduce our CEO, Nozick Keene.

Thank you, Shane, and good afternoon. We appreciate you joining us today to discuss SAIC's strong start to fiscal year 2022 and our positive outlook for the rest of the year. We have a lot of good news to share today, including the exciting announcement that we've entered into a definitive agreement to acquire Half Acre & Associates, expanding our reach in the public sector health market. We will also discuss our solid first quarter financial performance and strong business development results as we continue executing on our strategy for long-term shareholder value creation. But I would like to start with the acquisition announcement. We've often talked about our strategic interest in profitably growing our business in the public sector health market, further expanding opportunities for long-term value creation. The acquisition of Half Acre & Associates does exactly that. As outlined on page five of the supplemental presentation, Half Acre & Associates, founded in 2006, is a mission-focused, pure play health IT company. This acquisition fills a frequently discussed gap in our portfolio, immediately accelerating our strategy in the very attractive, growing public sector health market. This combination will immediately increase SAIC's customer and market access and directly aligns with our strategic focus and capability expansion in IT modernization, digital and cloud transformation, and data accountability and analytics. SAIC will now have one of the largest and most compelling suite of digital transformation offerings in the government services space. And while Prabhu will cover the financial details, I would like to highlight that their financial profile is accretive to SAIC's with strong revenue growth and low double-digit EBITDA margin. And with over four years of 2020 revenue and backlog, they offer strong revenue visibility through SAIC's fiscal year 2024. Please turn to slide six. Also headquartered here in Northern Virginia, Halfacre & Associates is home to over 550 highly skilled, credentialed, and mission-focused professionals. As I mentioned, they serve several critically important federal health customers with a large presence in the Department of Veterans Affairs where they are a top five IT provider on the $22 billion T4NG vehicle. They also serve valued customers in the Centers for Medicare and Medicaid Services, Department of Health and Human Services, and health customers in the Department of Defense. As you can see on this chart, they provide some of the most in-demand services across the federal government today. We remain confident that priorities such as digital services, data analytics, cybersecurity, and cloud solutions will continue to draw investment from our customers. Prabhu, can you please discuss the financial details of the half-acre and associates acquisition?