CACI Reports Record Third Quarter and Nine Months Results

Revenue for the Quarter up 21 Percent;

Income from Continuing Operations up 26 Percent



Apr 19, 2001, 01:00 ET from CACI International Inc

    ARLINGTON, Va., April 19 /PRNewswire/ -- CACI International Inc
 (Nasdaq:   CACI) today announced record results for its third fiscal quarter and
 nine months ended March 31, 2001.  Revenue for the third quarter of Fiscal
 Year 2001 (FY01) reached $148.2 million, an increase of 21 percent over third
 quarter FY2000 revenue of $122.1 million.  Revenue growth in the third quarter
 came primarily from higher levels of managed network and engineering services
 business for agencies within the Department of Defense.
     Operating income for the quarter increased to $10.1 million, up 30 percent
 from $7.8 million a year earlier, due to lower relative indirect costs and
 selling expenses offsetting higher direct costs.  The operating profit margin
 in the third quarter was 6.8 percent versus 6.4 percent a year earlier.
 Income from continuing operations for the quarter was $5.6 million, or $0.48
 per diluted share, an increase of 26 percent over third quarter FY2000 income
 from continuing operations of $4.4 million, or $0.38 per diluted share.
 Earnings before interest, taxes, depreciation and amortization (EBITDA) were
 $13.8 million, 9.3 percent of revenue, up 28 percent compared to $10.8
 million, and 8.8 percent of revenue, a year ago.
 
     Nine Months FY 2001 Results
 
     For the first nine months of FY01, revenue increased 13 percent to $409.9
 million compared with $361.9 million reported in the first nine months of
 FY2000.  Revenue growth in the first nine months of FY01 was driven primarily
 by higher volumes of managed network and engineering services business for the
 federal government.  Operating income was $26.6 million, up 13 percent over
 FY2000 operating income of $23.6 million.  The increase was attributable to
 lower indirect costs and selling expense offsetting higher direct costs.  The
 operating profit margin for the first nine months of FY01 was 6.5 percent,
 equal to that reported for the similar period in FY2000.  Income from
 continuing operations for the first nine months of FY01 was up 15 percent to
 $14.7 million, or $1.28 per diluted share, versus $12.8 million, or $1.11 per
 diluted share, in FY2000.   EBITDA for the first nine months of FY2001 was
 $36.9 million, 9.0 percent of revenue, up 15 percent over the $32.2 million,
 or 8.9 percent of revenue, reported in the first nine months of FY2000.
     Commenting on the latest quarterly results, Dr. J. P. London, CACI's
 Chairman, President, and Chief Executive Officer, said, "We are very pleased
 with our third quarter results.  As we had anticipated, the combination of the
 integrating of N.E.T. Federal Services managed network capabilities and
 increasing levels of engineering services work in C4ISR (command, control,
 communications, computers, and intelligence surveillance and reconnaissance)
 accelerated the growth of revenue and operating income.  Our United Kingdom-
 based Marketing Systems Group experienced another solid quarter of growth,
 despite the impact of foreign exchange rates.  And, we are particularly
 pleased by our progress this past quarter in reducing the level of debt on our
 balance sheet, and keeping it strong."
     Dr. London continued, "As we enter the last quarter of our fiscal year,
 the diversity of our lines of business and client base continues to support
 our overall growth despite continued softness in certain markets and areas.
 Using the strength of that diversity and our expanding capabilities to focus
 on the numerous opportunities within the federal market space, we expect to
 achieve our previously announced earnings expectations for FY 2001, and build
 on the progress we have made this year as we finalize our plans for FY 2002."
 
     Company Guidance
 
     The company also issued its expectations for its fourth fiscal quarter and
 full year FY01 as follows:
 
                                         Q4, FY01                  FY01
     Revenue (in thousands)     $148,000 -- $155,000     $558,000 -- $563,000
     Diluted earnings per share       $0.50 -- $0.56           $1.78 -- $1.84
 
     The company estimates that revenue for the fourth quarter will range from
 $148 million to $155 million, up 15 percent to 20 percent over the previous
 year, but down slightly from previous guidance.  The decrease is attributable
 to lower anticipated revenue from Globalstar, commercial e-business
 initiatives, and other direct costs (ODC's).
     The company also indicated it is maintaining its fourth quarter earnings
 guidance of $0.50 to $0.56 per diluted share, narrowing the range for the full
 year to $1.78 to $1.84 per diluted share.
 
     Third Quarter Highlights
 
     The following highlights occurred during the third fiscal quarter:
 
     *  N.E.T. Federal Services has been essentially integrated into the
        company's operations, resulting in an expansion of the company's
        managed network services.  Revenue for this line of business grew 96
        percent in the quarter and 58 percent for the first nine months of
        FY01.
     *  Revenue derived from GSA contract vehicles increased 101 percent in the
        quarter, representing 17 percent of the company's revenue in the
        period.  Revenue from this means of procurement is expected to exceed
        15 percent of total revenue for the fiscal year compared with 11
        percent in FY01.
     *  The company received awards totaling approximately $22 million for new
        systems integration and engineering services work for intelligence
        organizations and other agencies.
     *  Total debt at the end of the quarter was $51 million, a 20 percent
        reduction from total debt on December 31, 2000 of $63.7 million.
     *  Days sales outstanding at the end of the quarter were 76 days compared
        with 84 days a year ago, and 91 days in the prior quarter.
 
     CACI International Inc, a member of the Russell 2000 and S&P SmallCap 600
 indices, is a worldwide leader in information technology, e-Business, and
 networld solutions.  Founded on simulation technology in 1962, the company has
 evolved a diverse solutions portfolio for today's net economy.  From across
 the technology spectrum, CACI integrates the networks, systems, and software
 for telecommunications, e-Commerce, information assurance, and all forms of
 information management.  CACI centers of excellence are unique in the
 industry, offering "try-before-buy" solutions so clients save time and
 resources.  With approximately 5,000 employees and more than 90 offices in the
 U.S. and Europe, CACI meets complex client challenges with comprehensive,
 reliable solutions.  Visit CACI on the web at http://www.caci.com .
 
     There are statements made herein which do not address historical facts
 and, therefore, could be interpreted to be forward-looking statements as that
 term is defined in the Private Securities Litigation Reform Act of 1995.  Such
 statements are subject to factors that could cause actual results to differ
 materially from anticipated results.  The factors that could cause actual
 results to differ materially from those anticipated include, but are not
 limited to, the following:  regional and national economic conditions; changes
 in interest rates; changes in foreign exchange rates; failure to achieve
 contract awards in connection with recompetes for present business and/or
 competition for new business; the risks and uncertainties associated with
 client interest in and purchases of new products and/or services; continued
 funding of U.S. Government or other public sector projects in the event of a
 priority need for funds; government contract procurement (such as bid protest)
 and termination risks; individual business decisions of our clients; paradigm
 shifts in technology; competitive factors such as pricing pressures and/or
 competition to hire and retain employees; our ability to complete acquisitions
 and/or divestitures appropriate to achievement of our strategic plans;
 material changes in laws or regulations applicable to our businesses; our own
 ability to achieve the objectives of near term or long range business plans,
 particularly those relating to investments in new product development and new
 business initiatives, and other risks described in the Company's Securities
 and Exchange Commission filings.
 
     Financial tables follow.
 
     Summary Financial Tables
     CACI International Inc
     (Amounts in thousands, except per share amounts)
 
                                Quarter Ended           Nine Months Ended
     Income Statement Data:
                            3/31/01       3/31/00       3/31/01      3/31/00
 
     Revenue               $148,195      $122,112     $409,930      $361,871
     Costs and Expenses
       Direct costs          91,764        70,751      249,612       212,008
       Indirect costs and
         sellings expenses   42,638        40,572      123,434       117,651
       Depreciation and
         amortization         2,202         2,066        6,338         5,806
       Goodwill
         amortization         1,491           938        3,917         2,767
     Operating expenses     138,095       114,327      383,301       338,232
     Operating income        10,100         7,785       26,629        23,639
     Interest expense           983           539        2,566         2,695
     Income from
       continuing
       operations before
       income taxes           9,117         7,246       24,063        20,944
     Income taxes on
       continuing
       operations             3,556         2,827        9,384         8,170
     Income from
       continuing
       operations             5,561         4,419       14,679        12,774
     Discontinued Operations
       Loss from operations
       of discontinued
       COMNET Products
       Division (less
       applicable income
       tax benefit)               -             -            -          (320)
     Gain on disposal of
       COMNET Products
       Division, Including
       provision of $118
       for operating losses
       during phase-out
       period (less
       applicable income
       taxes of $13,512)          -             -            -        21,134
     Net income              $5,561        $4,419     $ 14,679      $ 33,588
 
     Basic earnings
       per share
     Income from continuing
       operations             $0.49         $0.39        $1.30         $1.14
       Loss from operations
       of discontinued
       COMNET Products
       Division                  $-            $-           $-        $(0.03)
     Gain on disposal of
       COMNET Products
       Division                  $-            $-           $-         $1.88
     Basic earnings per
       share                  $0.49         $0.39        $1.30         $2.99
     Diluted earnings
       per share
     Income from continuing
       operations             $0.48         $0.38        $1.28         $1.11
       Loss from operations
         of discontinued
         COMNET Products
         Division                $-            $-           $-        $(0.03)
     Gain on disposal of
       COMNET Products
       Division                  $-            $-           $-         $1.83
     Diluted earnings
       per share              $0.48         $0.38        $1.28         $2.91
 
     Weighted average shares
       used in per share
       computations:
       Basic                 11,301        11,428       11,299        11,242
       Diluted               11,507        11,693       11,475        11,530
 
 
              Revenue from Continuing Operations by Customer Type
 
                                        Quarter Ended
     (dollars in thousands)     03/31/2001       03/31/2000   $ Change % Change
     Department of Defense  $88,567   59.8%   $61,105   50.0%  $27,462   44.9%
     Federal Civilian
      Agencies               37,302   25.1%    37,725   30.9%     (423)  -1.1%
     Commercial              17,032   11.5%    16,244   13.3%      788    4.9%
     State and Local
      Government              5,294    3.6%     7,038    5.8%   (1,744) -24.8%
     Total                 $148,195  100.0%  $122,112  100.0%  $26,083   21.4%
 
                                      Nine Months Ended
     (dollars in thousands)     03/31/2001       03/31/2000   $ Change % Change
     Department of Defense $232,317   56.7%  $183,694   50.8%  $48,623   26.5%
     Federal Civilian
      Agencies              108,648   26.5%   101,571   28.0%    7,077    7.0%
     Commercial              50,428   12.3%    49,097   13.6%    1,331    2.7%
     State and Local
      Government             18,537    4.5%    27,509    7.6%   (8,972) -32.6%
     Total                 $409,930  100.0%  $361,871  100.0%  $48,059   13.3%
 
 
                     Income From Continuing Operations Data
 
                                  Quarter Ended          Nine Months Ended
     (dollars in thousands)   03/31/2001   03/31/2000  03/31/2001   03/31/2000
     Gross profit margin         38.1%        42.1%        39.1%        41.4%
     Operating profit margin      6.8%         6.4%         6.5%         6.5%
     Continuing operations margin 3.8%         3.6%         3.6%         3.5%
     Net margin                   3.8%         3.6%         3.6%         9.3%
     Earnings Before Interest,
      Taxes, Depreciation
      Depreciation and
      Amortization (EBITDA)    $13,793      $10,789      $36,884      $32,212
        As a % of revenue         9.3%         8.8%         9.0%         8.9%
 
                    Balance Sheet Data
 
     (dollars in thousands)   03/31/2001  06/30/2000
     Current assets           $149,103     $131,930
     Current liabilities        71,488       62,116
     Working capital            77,615       69,814
     Total debt                 51,000       28,263
     Stockholders' equity      150,185      141,968
     Total assets              274,972      235,997
 
 

SOURCE CACI International Inc
    ARLINGTON, Va., April 19 /PRNewswire/ -- CACI International Inc
 (Nasdaq:   CACI) today announced record results for its third fiscal quarter and
 nine months ended March 31, 2001.  Revenue for the third quarter of Fiscal
 Year 2001 (FY01) reached $148.2 million, an increase of 21 percent over third
 quarter FY2000 revenue of $122.1 million.  Revenue growth in the third quarter
 came primarily from higher levels of managed network and engineering services
 business for agencies within the Department of Defense.
     Operating income for the quarter increased to $10.1 million, up 30 percent
 from $7.8 million a year earlier, due to lower relative indirect costs and
 selling expenses offsetting higher direct costs.  The operating profit margin
 in the third quarter was 6.8 percent versus 6.4 percent a year earlier.
 Income from continuing operations for the quarter was $5.6 million, or $0.48
 per diluted share, an increase of 26 percent over third quarter FY2000 income
 from continuing operations of $4.4 million, or $0.38 per diluted share.
 Earnings before interest, taxes, depreciation and amortization (EBITDA) were
 $13.8 million, 9.3 percent of revenue, up 28 percent compared to $10.8
 million, and 8.8 percent of revenue, a year ago.
 
     Nine Months FY 2001 Results
 
     For the first nine months of FY01, revenue increased 13 percent to $409.9
 million compared with $361.9 million reported in the first nine months of
 FY2000.  Revenue growth in the first nine months of FY01 was driven primarily
 by higher volumes of managed network and engineering services business for the
 federal government.  Operating income was $26.6 million, up 13 percent over
 FY2000 operating income of $23.6 million.  The increase was attributable to
 lower indirect costs and selling expense offsetting higher direct costs.  The
 operating profit margin for the first nine months of FY01 was 6.5 percent,
 equal to that reported for the similar period in FY2000.  Income from
 continuing operations for the first nine months of FY01 was up 15 percent to
 $14.7 million, or $1.28 per diluted share, versus $12.8 million, or $1.11 per
 diluted share, in FY2000.   EBITDA for the first nine months of FY2001 was
 $36.9 million, 9.0 percent of revenue, up 15 percent over the $32.2 million,
 or 8.9 percent of revenue, reported in the first nine months of FY2000.
     Commenting on the latest quarterly results, Dr. J. P. London, CACI's
 Chairman, President, and Chief Executive Officer, said, "We are very pleased
 with our third quarter results.  As we had anticipated, the combination of the
 integrating of N.E.T. Federal Services managed network capabilities and
 increasing levels of engineering services work in C4ISR (command, control,
 communications, computers, and intelligence surveillance and reconnaissance)
 accelerated the growth of revenue and operating income.  Our United Kingdom-
 based Marketing Systems Group experienced another solid quarter of growth,
 despite the impact of foreign exchange rates.  And, we are particularly
 pleased by our progress this past quarter in reducing the level of debt on our
 balance sheet, and keeping it strong."
     Dr. London continued, "As we enter the last quarter of our fiscal year,
 the diversity of our lines of business and client base continues to support
 our overall growth despite continued softness in certain markets and areas.
 Using the strength of that diversity and our expanding capabilities to focus
 on the numerous opportunities within the federal market space, we expect to
 achieve our previously announced earnings expectations for FY 2001, and build
 on the progress we have made this year as we finalize our plans for FY 2002."
 
     Company Guidance
 
     The company also issued its expectations for its fourth fiscal quarter and
 full year FY01 as follows:
 
                                         Q4, FY01                  FY01
     Revenue (in thousands)     $148,000 -- $155,000     $558,000 -- $563,000
     Diluted earnings per share       $0.50 -- $0.56           $1.78 -- $1.84
 
     The company estimates that revenue for the fourth quarter will range from
 $148 million to $155 million, up 15 percent to 20 percent over the previous
 year, but down slightly from previous guidance.  The decrease is attributable
 to lower anticipated revenue from Globalstar, commercial e-business
 initiatives, and other direct costs (ODC's).
     The company also indicated it is maintaining its fourth quarter earnings
 guidance of $0.50 to $0.56 per diluted share, narrowing the range for the full
 year to $1.78 to $1.84 per diluted share.
 
     Third Quarter Highlights
 
     The following highlights occurred during the third fiscal quarter:
 
     *  N.E.T. Federal Services has been essentially integrated into the
        company's operations, resulting in an expansion of the company's
        managed network services.  Revenue for this line of business grew 96
        percent in the quarter and 58 percent for the first nine months of
        FY01.
     *  Revenue derived from GSA contract vehicles increased 101 percent in the
        quarter, representing 17 percent of the company's revenue in the
        period.  Revenue from this means of procurement is expected to exceed
        15 percent of total revenue for the fiscal year compared with 11
        percent in FY01.
     *  The company received awards totaling approximately $22 million for new
        systems integration and engineering services work for intelligence
        organizations and other agencies.
     *  Total debt at the end of the quarter was $51 million, a 20 percent
        reduction from total debt on December 31, 2000 of $63.7 million.
     *  Days sales outstanding at the end of the quarter were 76 days compared
        with 84 days a year ago, and 91 days in the prior quarter.
 
     CACI International Inc, a member of the Russell 2000 and S&P SmallCap 600
 indices, is a worldwide leader in information technology, e-Business, and
 networld solutions.  Founded on simulation technology in 1962, the company has
 evolved a diverse solutions portfolio for today's net economy.  From across
 the technology spectrum, CACI integrates the networks, systems, and software
 for telecommunications, e-Commerce, information assurance, and all forms of
 information management.  CACI centers of excellence are unique in the
 industry, offering "try-before-buy" solutions so clients save time and
 resources.  With approximately 5,000 employees and more than 90 offices in the
 U.S. and Europe, CACI meets complex client challenges with comprehensive,
 reliable solutions.  Visit CACI on the web at http://www.caci.com .
 
     There are statements made herein which do not address historical facts
 and, therefore, could be interpreted to be forward-looking statements as that
 term is defined in the Private Securities Litigation Reform Act of 1995.  Such
 statements are subject to factors that could cause actual results to differ
 materially from anticipated results.  The factors that could cause actual
 results to differ materially from those anticipated include, but are not
 limited to, the following:  regional and national economic conditions; changes
 in interest rates; changes in foreign exchange rates; failure to achieve
 contract awards in connection with recompetes for present business and/or
 competition for new business; the risks and uncertainties associated with
 client interest in and purchases of new products and/or services; continued
 funding of U.S. Government or other public sector projects in the event of a
 priority need for funds; government contract procurement (such as bid protest)
 and termination risks; individual business decisions of our clients; paradigm
 shifts in technology; competitive factors such as pricing pressures and/or
 competition to hire and retain employees; our ability to complete acquisitions
 and/or divestitures appropriate to achievement of our strategic plans;
 material changes in laws or regulations applicable to our businesses; our own
 ability to achieve the objectives of near term or long range business plans,
 particularly those relating to investments in new product development and new
 business initiatives, and other risks described in the Company's Securities
 and Exchange Commission filings.
 
     Financial tables follow.
 
     Summary Financial Tables
     CACI International Inc
     (Amounts in thousands, except per share amounts)
 
                                Quarter Ended           Nine Months Ended
     Income Statement Data:
                            3/31/01       3/31/00       3/31/01      3/31/00
 
     Revenue               $148,195      $122,112     $409,930      $361,871
     Costs and Expenses
       Direct costs          91,764        70,751      249,612       212,008
       Indirect costs and
         sellings expenses   42,638        40,572      123,434       117,651
       Depreciation and
         amortization         2,202         2,066        6,338         5,806
       Goodwill
         amortization         1,491           938        3,917         2,767
     Operating expenses     138,095       114,327      383,301       338,232
     Operating income        10,100         7,785       26,629        23,639
     Interest expense           983           539        2,566         2,695
     Income from
       continuing
       operations before
       income taxes           9,117         7,246       24,063        20,944
     Income taxes on
       continuing
       operations             3,556         2,827        9,384         8,170
     Income from
       continuing
       operations             5,561         4,419       14,679        12,774
     Discontinued Operations
       Loss from operations
       of discontinued
       COMNET Products
       Division (less
       applicable income
       tax benefit)               -             -            -          (320)
     Gain on disposal of
       COMNET Products
       Division, Including
       provision of $118
       for operating losses
       during phase-out
       period (less
       applicable income
       taxes of $13,512)          -             -            -        21,134
     Net income              $5,561        $4,419     $ 14,679      $ 33,588
 
     Basic earnings
       per share
     Income from continuing
       operations             $0.49         $0.39        $1.30         $1.14
       Loss from operations
       of discontinued
       COMNET Products
       Division                  $-            $-           $-        $(0.03)
     Gain on disposal of
       COMNET Products
       Division                  $-            $-           $-         $1.88
     Basic earnings per
       share                  $0.49         $0.39        $1.30         $2.99
     Diluted earnings
       per share
     Income from continuing
       operations             $0.48         $0.38        $1.28         $1.11
       Loss from operations
         of discontinued
         COMNET Products
         Division                $-            $-           $-        $(0.03)
     Gain on disposal of
       COMNET Products
       Division                  $-            $-           $-         $1.83
     Diluted earnings
       per share              $0.48         $0.38        $1.28         $2.91
 
     Weighted average shares
       used in per share
       computations:
       Basic                 11,301        11,428       11,299        11,242
       Diluted               11,507        11,693       11,475        11,530
 
 
              Revenue from Continuing Operations by Customer Type
 
                                        Quarter Ended
     (dollars in thousands)     03/31/2001       03/31/2000   $ Change % Change
     Department of Defense  $88,567   59.8%   $61,105   50.0%  $27,462   44.9%
     Federal Civilian
      Agencies               37,302   25.1%    37,725   30.9%     (423)  -1.1%
     Commercial              17,032   11.5%    16,244   13.3%      788    4.9%
     State and Local
      Government              5,294    3.6%     7,038    5.8%   (1,744) -24.8%
     Total                 $148,195  100.0%  $122,112  100.0%  $26,083   21.4%
 
                                      Nine Months Ended
     (dollars in thousands)     03/31/2001       03/31/2000   $ Change % Change
     Department of Defense $232,317   56.7%  $183,694   50.8%  $48,623   26.5%
     Federal Civilian
      Agencies              108,648   26.5%   101,571   28.0%    7,077    7.0%
     Commercial              50,428   12.3%    49,097   13.6%    1,331    2.7%
     State and Local
      Government             18,537    4.5%    27,509    7.6%   (8,972) -32.6%
     Total                 $409,930  100.0%  $361,871  100.0%  $48,059   13.3%
 
 
                     Income From Continuing Operations Data
 
                                  Quarter Ended          Nine Months Ended
     (dollars in thousands)   03/31/2001   03/31/2000  03/31/2001   03/31/2000
     Gross profit margin         38.1%        42.1%        39.1%        41.4%
     Operating profit margin      6.8%         6.4%         6.5%         6.5%
     Continuing operations margin 3.8%         3.6%         3.6%         3.5%
     Net margin                   3.8%         3.6%         3.6%         9.3%
     Earnings Before Interest,
      Taxes, Depreciation
      Depreciation and
      Amortization (EBITDA)    $13,793      $10,789      $36,884      $32,212
        As a % of revenue         9.3%         8.8%         9.0%         8.9%
 
                    Balance Sheet Data
 
     (dollars in thousands)   03/31/2001  06/30/2000
     Current assets           $149,103     $131,930
     Current liabilities        71,488       62,116
     Working capital            77,615       69,814
     Total debt                 51,000       28,263
     Stockholders' equity      150,185      141,968
     Total assets              274,972      235,997
 
 SOURCE  CACI International Inc