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Caci International Cla Reports Operating Results (10-Q)

February 04, 2011 | About:
10qk

10qk

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Caci International Cla (CACI) filed Quarterly Report for the period ended 2010-12-31.

Caci Intl A has a market cap of $1.76 billion; its shares were traded at around $58.04 with a P/E ratio of 16.1 and P/S ratio of 0.5. Caci Intl A had an annual average earning growth of 16% over the past 10 years. GuruFocus rated Caci Intl A the business predictability rank of 4-star.Hedge Fund Gurus that owns CACI: Paul Tudor Jones of The Tudor Group, Jim Simons of Renaissance Technologies LLC, George Soros of Soros Fund Management LLC, Steven Cohen of SAC Capital Advisors. Mutual Fund and Other Gurus that owns CACI: Westport Asset Management, David Dreman of Dreman Value Management.

Highlight of Business Operations:

DoD revenue increased 13.9 percent, or $84.0 million, for the three months ended December 31, 2010, as compared to the same period a year ago. $10.1 million of the increase was attributable to acquired DoD revenue and the remaining $73.9 million of the increase was attributable to revenue from existing operations. DoD revenue includes services provided to the U.S. Army, our largest customer, where our services focus on supporting readiness, tactical military intelligence, and communications of the commands in Iraq and Afghanistan. DoD revenue also includes work with the U.S. Navy and other DoD agencies across all of our major service offerings. Revenue in the quarter ended December 31, 2010 was favorably impacted by the timing of recognition of award fees on certain programs which a year ago were recognized in the quarter ended September 30, 2009 and this year were recognized in the quarter ended December 31, 2010.

Revenue from federal civilian agencies increased 2.7 percent, or $3.6 million, for the three months ended December 31, 2010, as compared to the same period a year ago. Of the federal civilian agency revenue growth, $3.3 million, was attributable to existing operations and $0.3 million, was attributable to acquisitions. Approximately 17.1 percent of the federal civilian agency revenue for the quarter was derived from DoJ, for whom we provide litigation support services. Revenue from DoJ was $22.7 million and $19.0 million for the three months ended December 31, 2010 and 2009, respectively.

Commercial and other revenue increased 8.0 percent, or $3.2 million, during the three months ended December 31, 2010, as compared to the same period a year ago. Commercial revenue is derived from both international and domestic operations. International operations accounted for 65.9 percent, or $28.6 million, of total commercial revenue, while domestic operations accounted for 34.1 percent, or $14.8 million. The increase in commercial revenue is primarily attributable to acquired revenue.

As a percentage of revenue, direct costs were 70.2 percent and 69.9 percent for the three months ended December 31, 2010 and 2009, respectively. Direct costs include direct labor and ODCs, which include, among other costs, subcontractor labor and materials along with equipment purchases and travel expenses. ODCs, which are common in our industry, typically are incurred in response to specific client tasks and may vary from period to period. Direct labor was $211.8 million and $196.1 million for the three months ended December 31, 2010 and 2009, respectively. This increase in direct labor was attributable primarily to organic growth. ODCs were $396.7 million and $347.1 million during the three months ended December 31, 2010 and 2009, respectively. This increase was primarily driven by an increased volume of tasking across C4ISR services within our Strategic Services Sourcing contract.

Indirect costs and selling expenses include fringe benefits, marketing expenses, bid and proposal costs, indirect labor, and other discretionary expenses. As a percentage of revenue, indirect costs and selling expenses were 21.4 percent and 22.2 percent for the three months ended December 31, 2010 and 2009, respectively. The decrease in indirect costs and selling expenses as a percentage of revenue was primarily a result of controlling our various indirect and general and administrative expenses and the aforementioned higher ODC content which require less indirect costs and selling expenses. Total stock-based compensation expense, a component of indirect costs, was $3.5 million and $6.1 million for the three months ended December 31, 2010 and 2009. Stock-based compensation expense for the three months ended December 31, 2010 was favorably impacted by higher forfeitures. Stock-based compensation expense for the three months ended December 31, 2009 reflected additional expense recorded during that quarter attributable to the August 2008 performance-based restricted stock unit grant based upon the then-current estimate of performance during the performance measurement period.

Depreciation and amortization expense was $14.1 million and $13.5 million for the three months ended December 31, 2010 and 2009, respectively. The increase of $0.5 million, or 3.8 percent, was primarily the result of amortization expense attributable to intangibles acquired in the Companys recent acquisitions offset in part by a decrease in amortization on externally marketed software.

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10qk
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