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Caci International Cla Reports Operating Results (10-Q)

May 05, 2010 | About:

10qk

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Caci International Cla (CACI) filed Quarterly Report for the period ended 2010-03-31.

Caci International Cla has a market cap of $1.44 billion; its shares were traded at around $47.82 with a P/E ratio of 13.8 and P/S ratio of 0.5. Caci International Cla had an annual average earning growth of 16.9% over the past 10 years. GuruFocus rated Caci International Cla the business predictability rank of 4.5-star.CACI is in the portfolios of Westport Asset Management, David Dreman of Dreman Value Management, Murray Stahl of Horizon Asset Management, Paul Tudor Jones of The Tudor Group, George Soros of Soros Fund Management LLC, Steven Cohen of SAC Capital Advisors, Jim Simons of Renaissance Technologies LLC.

Highlight of Business Operations:

Revenue from federal civilian agencies decreased 2.2 percent, or $2.9 million, for the three months ended March 31, 2010, as compared to the same period a year ago. This decrease is primarily attributable to revenue earned in the three months ended March 31, 2009 on projects that were substantially completed prior to June 30, 2009 and the timing of the fees on certain contracts where we recognize a portion of the fees upon customer approval. Approximately 15.1 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 $19.7 million and $18.4 million for the three months ended March 31, 2010 and 2009, respectively.

Commercial revenue increased 81.5 percent, or $17.0 million, during the three months ended March 31, 2010, as compared to the same period a year ago. Of this increase $13.7 million came from our recent acquisitions. Commercial revenue is derived from both international and domestic operations. International operations accounted for 79.1 percent, or $30.0 million, of total commercial revenue, while domestic operations accounted for 20.9 percent, or $7.9 million. The increase in organic commercial revenue came from operations within the U.K. and was primarily caused by the improved performance of our U.K. operations during the quarter.

Income from operations for the three months ended March 31, 2010 was $47.3 million. This was an increase of $2.3 million, or 5.2 percent, from income from operations of $45.0 million for the three months ended March 31, 2009. Our operating margin was 6.0 percent down from the 6.7 percent during the same period a year ago. The decrease in operating margin is primary attributable to a growth in ODCs which exceeded our growth in direct labor.

As a percentage of revenue, direct costs were 70.3 percent and 68.5 percent for the three months ended March 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. The single largest component of direct costs, direct labor, was $206.1 million and $193.3 million for the three months ended March 31, 2010 and 2009, respectively. This increase in direct labor was primarily attributable to organic growth. ODCs were $345.1 million and $268.5 million during the three months ended March 31, 2010 and 2009, respectively. This increase was primarily driven by an increased volume of tasking across C4ISR integration services within our Strategic Services Sourcing (S3) contract.

Depreciation and amortization expense was $14.2 million and $11.8 million for the three months ended March 31, 2010 and 2009, respectively. The increase of $2.4 million, or 20.2 percent, was primarily the result of increased amortization expense attributable to acquired intangibles.

Interest expense and other, net decreased $1.1 million, or 13.9 percent, during the three months ended March 31, 2010 as compared to the same period a year ago. The decrease was primarily due to lower interest rates and the July 2009 $50.0 million prepayment on our term loan.

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