CACI International Inc

Ladies and gentlemen, thank you for standing by. Welcome to the CACI International Third Quarter Fiscal Year 2023 Conference Call. Today's call is being recorded. At this time, all lines are in a listen-only mode. Later, we will announce the opportunity for questions and instructions will be given at that time. If you should need any assistance during the call, please press star and then zero and someone will help you. At this time, I would like to turn the conference call over to Dan Lechberg, Senior Vice President of Investor Relations for CACI International. Please go ahead, sir.

Well, thank you, and good morning, everyone. I'm Dan Lechberg, Senior Vice President of Investor Relations for CACI International. Thank you for joining us this morning. We are providing presentation slides, so let's move to slide number two. There will be statements in this call that do not address historical facts, and as such constitute forward-looking statements under current law. These statements reflect our views as of today and are subject to important factors that could cause our actual results to differ materially from anticipated. Those factors are listed at the bottom of last night's press release and are described in the company's SEC filings. Our safe harbor statement is included on this exhibit and should be incorporated as part of any transcript of this call. I would also like to point out that our presentation will include discussion of non-GAAP financial measures. These should not be considered in isolation or as a substitute for performance measures prepared in accordance with GAAP. Let's turn to slide three, please. To open our discussion this morning, here's John Mangucci, President and Chief Executive Officer of CACI International. John.

Thanks, Dan, and good morning, everyone. Thank you for joining us to discuss our third quarter fiscal year 23 results. With me this morning is Jeff McLaughlin, our Chief Financial Officer. Slide four, please. Last night, we released our third quarter results, and I'm very pleased with our performance. We grew revenue by 10%, all of which is organic, with growth in both expertise and technology. Profitability was strong, with an adjusted EBITDA margin of 11%, and cash flow was solid. A trailing 12 months book to bill of 1.4 times remains very healthy. As a result of our strong year-to-date performance, we are raising our fiscal 2023 revenue and earnings guidance. And Jeff will provide additional financial details shortly. Let's go to slide five, please. Turning to the external environment, market and demand trends remain very favorable to CACI. Government fiscal year 23 budgets showed healthy growth, and we continue to see positive funding trends. The President's GFY24 budget request calls for further growth in defense, which is just the starting point as Congress begins the budget process. While budget indications are positive, we will continue to monitor the process and debt ceiling negotiations. We see continued growth in key areas of focus for CACI, driven by the heightened global threat environment, bipartisan support for national security, and the need for modernization. From a capability perspective, we see continued government demand in several important areas for CACI, including broad modernization of both applications and networks and accelerating demand for cloud migration, the space domain with photonics and situational awareness, and electromagnetic spectrum, including software-defined signals intelligence and electronic warfare and their convergence with cyber. CACI's industry leadership and commitment to invest ahead of need position us extremely well to deliver innovation to our customers and value to our shareholders. Slide six, please. We continue to successfully execute our strategy of building differentiated capabilities rooted in software and deep domain expertise. Just as important, we remain focused on exceptional execution. The combination of these two factors enables CECI to not only win new work in the marketplace, but also retain expand and extend that work over time. Let me give you some examples. First, our Enterprise IT as a Service or ITAS award with the United States Air Force is the largest contract award in our company's history. This award demonstrates CECI's leading position in broad IT modernization. While the award has been under protest, I am happy to say that our win was recently upheld by the GAO. We are ready to get to work. and look forward to beginning this important program for the Air Force in the near future. Second, I want to highlight the Army's Integrated Personnel and Pay System, or IPSA. IPSA is the largest PeopleSoft implementation in the federal government and arguably the most complex PeopleSoft implementation at scale in the world, serving more than 1 million soldiers. We are excited to have rolled out the latest version of the system earlier this year. For the first time, the Army has a single system for managing more than one million soldiers across the Army, Army Reserve, and Army National Guard. That is software development at scale, and we look forward to working with our customer to provide additional functionality and enhancements to further support our soldiers. This performance is yet another example of CACI's industry and software development for both enterprise and mission customers. In the space domain, we continue to see strong demand for our photonics technology from both government and private customers. We also continue to invest in and advance this critical technology, and as a result, continue to achieve important performance and interoperability milestones. CECI's photonics technology enables secure space-based communications networks using more powerful, efficient technology that transmits more data faster. We are currently under contract to deliver optical communications terminals for the SDA under tranche 0 and tranche 1 for both the transport and tracking layers. And we continue to provide our photonics technology to a wide range of additional classified programs at multiple orbital altitudes. Finally, we continue to demonstrate leadership in the electromagnetic spectrum, an increasingly important area of focus for national security, particularly and the Pacific in European theaters. CACI is one of the largest providers of sensing systems across all domains, land, air, sea, space, and cyber. As we've discussed before, one of our key differentiators is a strategy focused on software-defined technology. This allows us to update capabilities in a faster, more agile manner, enabling our national security customers to stay ahead of rapidly advancing adversaries and threats. In the latest example of this capability, we recently executed the first over-the-air software upgrade of an operational system on a Navy ship at sea. Rather than waiting for the ship to return to port, we deployed an over-the-horizon update to enhance capabilities while keeping the asset on mission. This software-enabled speed and agility is critical to the context of near-peer competition. we delivered strong results that remain confident in our long-term prospects. We are successfully executing our strategy. We're making the right investments, hiring and retaining top talent, winning new work, delivering with excellence, and leveraging our financial strength to drive free cash flow per share and additional shareholder value. On top of all that, while we are effectively managing our capital structure to allow for flexible and opportunistic capital deployment, and taking advantage of all available value-creating initiatives, like the tax method change we recently affected. As a result of our performance to date and our strong position, we are raising our fiscal year 2023 revenue and earnings guidance. With that, I'll turn the call over to Jeff.