CACI International Inc

ladies and gentlemen thank you for standing by welcome to the caci international fourth quarter and fiscal year 2024 earnings 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 this call please press star zero and someone will help you at this time I would like to turn the conference call over to George Price, Senior Vice President of Investor Relations. Please go ahead, sir.

Thanks, Rachelle, and good morning, everyone. I'm George Price, Senior Vice President of Investor Relations for CACI. Thank you for joining us this morning. We are providing presentation slides, so let's move to slide two. There will be statements in this call that do not address historical fact 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 our company's SEC filings. Our safe harbor statement is included in 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 CECI International. John?

Thanks, George, and good morning, everyone. Thank you for joining us to discuss our fourth quarter and fiscal year 24 results, as well as our fiscal 25 guidance. With me this morning is Jeff McLaughlin, our Chief Financial Officer. Slide four, please. CCI delivered strong results in the fourth quarter, closing out an exceptional year by delivering 20% revenue growth during the quarter. For the full year, we delivered revenue growth of 14%, coming in ahead of our guidance, which we increased several times during the year. We delivered EBITDA of nearly $800 million, with an underlying EBITDA margin of 10.7%, consistent with our guidance. We also generated free cash flow of over $380 million and free cash flow per share of $17, the latter an increase of 41% from last year. And we won over $14 billion of contract awards, the highest in company history, which represents a 1.9 times book to bill for the year. Nearly 60% of that award value this renewed business to CACI. We continue to perform very well on our reconceives. Slide five, please. The outstanding results we delivered in fiscal 24 are a testament to our successful execution of a consistent, well-defined, and market-aligned strategy. The key enabler of our performance is business development. And as you can see, our BD team's performance has been exceptional. Our fourth quarter rewards alone were $5.4 billion representing a book to bill of 2.7 times. These awards add to an already impressive list of wins we have discussed in recent quarters. In fact, we have won seven awards of $1 billion or more in the past two years, which supports our ability to drive long-term growth as these programs ramp over multiple years. Our strategy of investing ahead of need, bidding less and winning more, focusing on larger and longer-term duration opportunities and proactively shaping those opportunities enabled CCI to win significant new work in fiscal 24. In addition, our focus on superior execution, which is foundational to the culture and always a top priority, further supports our growth through sole source extensions and expanded re-competes. We are in the right markets delivering high-value differentiated capabilities and executing at a superior level all of which support our ability to grow free cash flow per share in order to value our customers and shareholders. Slide six, please. Let me highlight a few of our fourth quarter awards that bring the successful execution of our strategy into focus. First, we won the eight-year, $2 billion NASA Consolidated Applications and Platform Services Award, known as MCAPS. DCI will deploy an agile at scale delivery model to standardize and centralize software development for more than 200 systems across NASA, enhancing quality, efficiency, and speed of delivery. These are critical outcomes for our customers, and we invested ahead of need years ago to develop industry-leading agile software capabilities, identify and shape the right opportunities, and show our customers the art of the possible. With the NCAPS win, CECI is now executing the three largest Agile programs in U.S. government, and we see a healthy pipeline of additional opportunities where these capabilities will continue to be a differentiator. Second, TACI was awarded a $100 million contract by the U.S. Army to provide signals intelligence and electronic warfare systems for the terrestrial layer system MANPAC program of record. Our MANPAC systems enable dismounted soldiers to conduct signals detection, direction finding, and electronic attack while on the move. supporting the Army's multi-domain operations and helping to dominate the electromagnetic spectrum. As we have discussed before, this is an increasingly critical domain and one where the U.S. is still in the early stages of modernization and investment. This award also highlights the progression of a customer moving from purchase order awards to acquisition of our technology via a program of record that will contain larger volumes than a single award. This provides for a more consistent award basis and enhances the visibility of our business. Lastly, I'd like to highlight two new expertise awards that illustrate our deep domain and technical knowledge, our industry-leading talent, and the opportunity to inform our technology. We won a six-year, $239 million task order to provide intelligence analysis and operational support to the U.S. Army commands in Europe and Africa. Every day. We see the headlines of how the US and its allies face increasing national security challenges across these regions, which is driving enduring requirements and resilient funding. DCI is uniquely positioned to assist the Army in anticipating and responding to these fast-evolving and complex threats. We also want a 10-year contract worth up to $450 million to provide operations and technical support to the Joint Navigation Warfare Center. part of the U.S. Space Force that focuses on positioning, navigation, and timing, or PNT, for the U.S. and our allies. PNT capabilities are a critical national security priority and an area where we have invested ahead of need in both technology and talent. This new work with the Space Force provides opportunities for future expansion, as well as the potential to inform our technology investments over time. Slide seven, please. Turning to the macro environment, we continue to see healthy demand and a strong pipeline of opportunities. Customer demand continues to be driven by the elevated global threat environment, the evolving capabilities of our adversaries, and the rapid pace of technology change with this significant need for modernization across government. The ACI's expertise in technology are intentionally aligned with enduring and well-funded national security priorities, including the electromagnetic spectrum and counter-UXS, application and network modernization, cloud migration, cyber, and intelligence analysis. And this is true not just for the United States, for our allies as well. From a budget perspective, government fiscal year 24 was supportive of CECI programs. We believe government fiscal year 25 will be no different. We are monitoring the GFY25 budget process, and overall, the budget is shaping up in line with our expectations. Like most years, we expect the coming year will begin with a continuing resolution. And as I've said, this typically does not have a material impact on our business, and we are very comfortable with the funding levels we see at this time. Slide eight, please. Looking back on fiscal 24, I'm very pleased with the execution of our strategy, our exceptional contract awards, and our strong operational and financial performance. Combined with the constructive macro environment, provides a great foundation for CACI as we enter the new year. With that in mind, in fiscal 25, we expect free cash flow per share growth of 11%, revenue growth of 6% to 8.5% on an underlying basis, which excludes the non-recurring $200 million in materials last year, and EBITDA margin in the high 10% range. Jeff will provide additional details on this guidance shortly. Our FY25 outlook is consistent with our value creation model, which is focused on driving long-term growth and free cash flow per share. In fact, I want to share that we are making changes to both our long-term incentive plan and our short-term annual bonus plan. Going forward, half of CACI's granted long-term incentive shares will be performance stock units tied to a three-year free cash flow target. Additionally, we have added a cash collection component to our short-term bonus plan. The result is that we're focused and incentivized on delivering value to our shareholders. That is our commitment. I look forward to updating you all as we progress through the year. With that, I'll turn the call over to John. Thank you, John, and good morning, everyone.