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CACI Reports Results for Its Fiscal 2024 Third Quarter and Raises Fiscal Year Guidance
--Adjusted net income of $129.0 million and adjusted diluted EPS of $5.74, +17% YoY
--EBITDA margin of 11.3%, +200 basis points sequentially
--Contract awards of $3.5 billion representing a book-to-bill of 1.8x
--Raising Fiscal Year 2024 guidance for revenue, adjusted net income, and adjusted diluted EPS
CACI International Inc (NYSE: CACI), a leading provider of expertise and technology to government customers, announced results today for its fiscal third quarter ended March 31, 2024.
"CACI's outstanding performance reflects the continued successful execution of our strategy. We're winning and delivering in the marketplace with differentiated capabilities, exceptional business development, and program execution," said John Mengucci, CACI President and Chief Executive Officer. "Our third quarter results were strong across the board, including double-digit organic growth, margin expansion, $3.5 billion of awards, and record backlog. Our performance enables us to again raise fiscal year 2024 revenue and earnings guidance. We remain confident in our ability to drive long-term growth, increase free cash flow, and generate value for our customers and our shareholders."
Third Quarter Results
(in millions, except earnings per share and DSO) Three Months Ended 3/31/2023 % Change ------------------------ ------------------------- Revenues $ 1,937.5 $ 1,744.3 11.1 % Income from operations $ 181.3 $ 155.0 16.9 % Net income $ 115.4 $ 100.7 14.5 % Adjusted net income, a non-GAAP measure(1) $ 129.0 $ 114.5 12.7 % ---------------------------------------------------------------------------------------------- -- -------------------- -------------------- ---- -------------------- -------------------- ----- -- Diluted earnings per share $ 5.13 $ 4.33 18.5 % Adjusted diluted earnings per share, a non-GAAP measure(1) $ 5.74 $ 4.92 16.7 % ---------------------------------------------------------------------------------------------- -- -------------------- -------------------- ---- -------------------- -------------------- ----- -- Earnings before interest, taxes, depreciation and amortization (EBITDA), a non-GAAP measure(1) $ 218.0 $ 191.8 13.6 % ---------------------------------------------------------------------------------------------- -- -------------------- -------------------- ---- -------------------- -------------------- ----- -- Net cash provided by operating activities excluding MARPA(1) $ 113.6 $ 56.1 102.4 % Free cash flow, a non-GAAP measure(1) $ 101.9 $ 41.0 148.9 %
(1) This non-GAAP measure should not be considered in isolation or as a substitute for measures prepared in accordance with GAAP. For additional information regarding this non-GAAP measure, see the related explanation and reconciliation to the GAAP measure included below in this release. This non-GAAP measure should not be considered in isolation or as a substitute for measures prepared in accordance with GAAP. For additional information regarding this non-GAAP measure, see the related explanation and reconciliation to the GAAP measure included below in this release.
Revenues in the third quarter of fiscal year 2024 increased 11 percent year-over-year, driven by 10 percent organic growth. The increase in income from operations was driven by higher revenues and gross profit. Growth in diluted earnings per share and adjusted diluted earnings per share was driven by higher income from operations and share repurchases earlier in the year, partially offset by a higher tax provision and higher interest expense. The increase in cash from operations, excluding MARPA, was driven primarily by strong working capital and capital expenditure management, and higher net income.
Third Quarter Contract Awards
Contract awards in the third quarter totaled $3.5 billion, with approximately 46 percent for new business to CACI. Awards exclude ceiling values of multi-award, indefinite delivery, indefinite quantity (IDIQ) contracts. Some notable awards during the quarter were:
A five-year task order worth a total estimated value of $1.3 billion to provide communications and information technology expertise to U.S. European Command (USEUCOM) and U.S. Africa Command (USAFRICOM). This work continues and expands CACI's current relationship with these two 4-star commands, service component commands, and associated staff elements and organizations, by providing innovative IT solutions and expertise tailored to their missions to execute global multi-domain operations with NATO, allies, and mission partners to prevent conflict and respond in crisis. A $638 million task order to provide enterprise product support to the Department of Defense (DoD) for five years, enabling faster and more effective development and dissemination of actionable intelligence. A five-year DoD logistics and sustainment support task order worth up to $271 million. A task order valued at up to $199 million over five years to provide expertise to the DoD for tactical command, control, and communications support across the warfighting functions of movement and maneuver, command and control, fires, sustainment, protection, intelligence, and engagement. An order of counter-unmanned aircraft systems (C-UAS) by the Canadian Armed Forces that will defeat unmanned aerial vehicle threats, including small drones.
Total backlog as of March 31, 2024 was $28.6 billion compared with $25.3 billion a year ago, an increase of 13.0 percent. Funded backlog as of March 31, 2024 was $3.2 billion compared with $3.4 billion a year ago, a decrease of 5.9 percent. The change in funded backlog was driven by normal variation in timing of funding as well as particularly strong funding in the year-ago quarter.
Additional Highlights
Fortune magazine recognized CACI as one of the World's Most Admired Companies in 2024, commemorating its seventh consecutive year on the list and its 13th appearance since the list's inception. CACI received notable results in Fortune's survey criteria for the quality of its expertise and technology, long-term investment strategy, financial soundness, and social responsibility. CACI was chosen from among approximately 1,500 global companies considered by Fortune. For the fourth consecutive year, CACI was named a Top Workplace USA by employee engagement technology partner Energage, LLC. This latest accolade is a result of the company's strong culture, total rewards, and legacy spanning more than 60 years. Twenty one CACI employees were honored for their excellence in science, technology, engineering, and math (STEM) at the 38th annual Black Engineer of the Year Awards (BEYA) Global Competitiveness Conference held Feb. 15-17 in Baltimore, Maryland.
Fiscal Year 2024 Guidance
The table below summarizes our fiscal year 2024 guidance and represents our views as of April 24, 2024. Our revenue guidance reflects approximately $200 million of higher-than-expected material purchases by our customers, split evenly between the first and second quarters of fiscal year 2024. Our guidance also reflects lower diluted weighted average shares due to the effect of share repurchases earlier in the year.
(in millions, except earnings per share) Fiscal Year 2024 Prior Guidance -------------------- Revenues $7,500 - $7,600 $7,300 - $7,500 Adjusted net income, a non-GAAP measure(1) $455 - $465 $450 - $465 Adjusted diluted earnings per share, a non-GAAP measure(1) $20.13 - $20.58 $19.91 - $20.58 Diluted weighted average shares 22.6 22.6
(1) Adjusted net income and adjusted diluted earnings per share are defined as GAAP net income and GAAP diluted EPS, respectively, excluding intangible amortization expense and the related tax impact. This non-GAAP measure should not be considered in isolation or as a substitute for measures prepared in accordance with GAAP. For additional information regarding this non-GAAP measure, see the related explanation and reconciliation to the GAAP measure included below in this release. Adjusted net income and adjusted diluted earnings per share are defined as GAAP net income and GAAP diluted EPS, respectively, excluding intangible amortization expense and the related tax impact. This non-GAAP measure should not be considered in isolation or as a substitute for measures prepared in accordance with GAAP. For additional information regarding this non-GAAP measure, see the related explanation and reconciliation to the GAAP measure included below in this release.
Conference Call Information
We have scheduled a conference call for 8:00 AM Eastern Time Thursday, April 25, 2024 during which members of our senior management will be making a brief presentation focusing on third quarter results and operating trends, followed by a question-and-answer session. You can listen to the webcast and view the accompanying exhibits on CACI's investor relations website at http://investor.caci.com/events/default.aspx at the scheduled time. A replay of the call will also be available on CACI's investor relations website at http://investor.caci.com/.
About CACI
At CACI International Inc (NYSE: CACI), our 24,000 talented and dynamic employees are ever vigilant in delivering distinctive expertise and differentiated technology to meet our customers' greatest challenges in national security and government modernization. We are a company of good character, relentless innovation, and long-standing excellence. Our culture drives our success and earns us recognition as a Fortune World's Most Admired Company. CACI is a member of the Fortune 1000 Largest Companies, the Russell 1000 Index, and the S&P MidCap 400 Index. For more information, visit us at www.caci.com.
There are statements made herein that 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 risk factors that could cause actual results to be materially different from anticipated results. These risk factors include, but are not limited to, the following: our reliance on U.S. government contracts, which includes general risk around the government contract procurement process (such as bid protest, small business set asides, loss of work due to organizational conflicts of interest, etc.) and termination risks; significant delays or reductions in appropriations for our programs and broader changes in U.S. government funding and spending patterns; legislation that amends or changes discretionary spending levels or budget priorities, such as for homeland security or to address global pandemics like COVID-19; legal, regulatory, and political change from successive presidential administrations that could result in economic uncertainty; changes in U.S. federal agencies, current agreements with other nations, foreign events, or any other events which may affect the global economy, including the impact of global pandemics like COVID-19; the results of government audits and reviews conducted by the Defense Contract Audit Agency, the Defense Contract Management Agency, or other governmental entities with cognizant oversight; competitive factors such as pricing pressures and/or competition to hire and retain employees (particularly those with security clearances); failure to achieve contract awards in connection with re-competes for present business and/or competition for new business; regional and national economic conditions in the United States and globally, including but not limited to: terrorist activities or war, changes in interest rates, currency fluctuations, significant fluctuations in the equity markets, and market speculation regarding our continued independence; our ability to meet contractual performance obligations, including technologically complex obligations dependent on factors not wholly within our control; limited access to certain facilities required for us to perform our work, including during a global pandemic like COVID-19; changes in tax law, the interpretation of associated rules and regulations, or any other events impacting our effective tax rate; changes in technology; the potential impact of the announcement or consummation of a proposed transaction and our ability to successfully integrate the operations of our recent and any future acquisitions; our ability to achieve the objectives of near term or long-term business plans; the effects of health epidemics, pandemics and similar outbreaks may have material adverse effects on our business, financial position, results of operations and/or cash flows; and other risks described in our Securities and Exchange Commission filings.
CACI International Inc Consolidated Statements of Operations (Unaudited) (in thousands, except per share data) Three Months Ended Nine Months Ended ----------------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------------- 3/31/2024 3/31/2023 % Change 3/31/2024 3/31/2023 % Change ------------------------------ ------------------------------ ------------------- ------------------------------ ------------------------------ ------------------- Revenues $ 1,937,456 $ 1,744,270 11.1 % $ 5,621,537 $ 4,999,445 12.4 % -------------------- ---------- -------------------- ---------- ---------- --------- -------------------- ---------- -------------------- ---------- ---------- --------- Costs of revenues: 1,290,903 1,143,781 12.9 % 3,819,072 3,293,867 15.9 % Direct costs 430,134 410,235 4.9 % 1,244,122 1,180,619 5.4 % Indirect costs and selling expenses 35,115 35,220 -0.3 % 106,385 106,255 0.1 % Depreciation and amortization -------------------- ---------- -------------------- ---------- ---------- --------- -------------------- ---------- -------------------- ---------- ---------- --------- 1,756,152 1,589,236 10.5 % 5,169,579 4,580,741 12.9 % Total costs of revenues -------------------- ---------- -------------------- ---------- ---------- --------- -------------------- ---------- -------------------- ---------- ---------- --------- Income from operations 181,304 155,034 16.9 % 451,958 418,704 7.9 % 27,668 23,570 17.4 % 80,758 59,705 35.3 % Interest expense and other, net -------------------- ---------- -------------------- ---------- ---------- --------- -------------------- ---------- -------------------- ---------- ---------- --------- Income before income taxes 153,636 131,464 16.9 % 371,200 358,999 3.4 % 38,286 30,722 24.6 % 85,933 82,031 4.8 % Income taxes -------------------- ---------- -------------------- ---------- ---------- --------- -------------------- ---------- -------------------- ---------- ---------- --------- Net income $ 115,350 $ 100,742 14.5 % $ 285,267 $ 276,968 3.0 % ==================== ========== ==================== ========== ========== ========= ==================== ========== ==================== ========== ========== ========= Basic earnings per share $ 5.17 $ 4.37 18.3 % $ 12.73 $ 11.87 7.2 % Diluted earnings per share $ 5.13 $ 4.33 18.5 % $ 12.63 $ 11.76 7.4 % Weighted average shares used in per share computations: Weighted-average basic shares outstanding 22,292 23,055 -3.3 % 22,407 23,329 -4.0 %
CACI International Inc Consolidated Balance Sheets (Unaudited) (in thousands) 3/31/2024 6/30/2023 ------------------------------ ------------------------------ ASSETS Current assets: $ 159,226 $ 115,776 Cash and cash equivalents 1,013,677 894,946 Accounts receivable, net 220,623 199,315 Prepaid expenses and other current assets -------------------- ---------- -------------------- ---------- Total current assets 1,393,526 1,210,037 Goodwill 4,138,450 4,084,705 Intangible assets, net 490,004 507,835 Property, plant and equipment, net 188,226 199,519 Operating lease right-of-use assets 303,926 312,989 Supplemental retirement savings plan assets 98,962 96,739 Accounts receivable, long-term 12,557 11,857 Other long-term assets 178,733 177,127 -------------------- ---------- -------------------- ---------- Total assets $ 6,804,384 $ 6,600,808 ==================== ========== ==================== ========== LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: $ 61,250 $ 45,938 Current portion of long-term debt 363,451 198,177 Accounts payable 257,485 372,354 Accrued compensation and benefits 402,656 377,502 Other accrued expenses and current liabilities -------------------- ---------- -------------------- ---------- Total current liabilities 1,084,842 993,971 Long-term debt, net of current portion 1,631,150 1,650,443 Supplemental retirement savings plan obligations, net of current portion 112,455 104,912 Deferred income taxes 36,616 120,545 Operating lease liabilities, noncurrent 321,324 329,432 Other long-term liabilities 252,633 177,171 -------------------- ---------- -------------------- ---------- Total liabilities 3,439,020 3,376,474 -------------------- ---------- -------------------- ---------- ------------------------------ ------------------------------ Total shareholders' equity 3,365,364 3,224,334 -------------------- ---------- -------------------- ----------
CACI International Inc Consolidated Statements of Cash Flows (Unaudited) (in thousands) Nine Months Ended 3/31/2024 3/31/2023 -------------------------------------------------- ------------------------------------------------------ CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 285,267 $ 276,968 Adjustments to reconcile net income to net cash provided by operating activities: 106,385 106,255 Depreciation and amortization 1,644 1,688 Amortization of deferred financing costs 50,765 52,293 Non-cash lease expense 35,016 30,564 Stock-based compensation expense (36,231 ) (84,794 ) Deferred income taxes Changes in operating assets and liabilities, net of effect of business acquisitions: (109,617 ) (80,116 ) Accounts receivable, net (24,254 ) (42,137 ) Prepaid expenses and other assets 179,922 62,116 Accounts payable and other accrued expenses (117,580 ) (62,522 ) Accrued compensation and benefits 2,483 28,825 Income taxes payable and receivable (55,111 ) (58,667 ) Operating lease liabilities 21,434 5,481 Long-term liabilities -------------------- ---------- -------------------- -------------------- -------------- -------------------- Net cash provided by operating activities 340,123 235,954 -------------------- ---------- -------------------- -------------------- -------------- -------------------- CASH FLOWS FROM INVESTING ACTIVITIES (41,091 ) (40,844 ) Capital expenditures (81,577 ) -- Acquisitions of businesses, net of cash acquired 1,974 1,626 Other -------------------- ---------- -------------------- -------------------- -------------- -------------------- Net cash used in investing activities (120,694 ) (39,218 ) -------------------- ---------- -------------------- -------------------- -------------- -------------------- CASH FLOWS FROM FINANCING ACTIVITIES 2,421,000 2,384,000 Proceeds from borrowings under bank credit facilities (2,426,625 ) (2,314,969 ) Principal payments made under bank credit facilities 8,374 7,638 Proceeds from employee stock purchase plans (158,426 ) (270,449 ) Repurchases of common stock (19,945 ) (14,115 ) Payment of taxes for equity transactions -------------------- ---------- -------------------- -------------------- -------------- -------------------- Net cash used in financing activities (175,622 ) (207,895 ) -------------------- ---------- -------------------- -------------------- -------------- -------------------- (357 ) 3,144 Effect of exchange rate changes on cash and cash equivalents -------------------- ---------- -------------------- -------------------- -------------- -------------------- Net change in cash and cash equivalents 43,450 (8,015 ) Cash and cash equivalents, beginning of period 115,776 114,804 -------------------- ---------- -------------------- -------------------- -------------- --------------------
Revenues by Customer Group (Unaudited) Three Months Ended ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- (in thousands) 3/31/2024 3/31/2023 $ Change % Change -------------------------------------------------------- -------------------- -------------------------------------------------------- -------------------- ----------------------------------------------- -------------------- -------- Department of Defense 1,452,264 74.9 % 1,298,700 74.4 % 153,564 11.8 % $ $ $ Federal Civilian agencies 381,214 19.7 % 355,612 20.4 % 25,602 7.2 % Commercial and other 103,978 5.4 % 89,958 5.2 % 14,020 15.6 % -------------------- --------- -------------------- ----- -- -------------------- -------------------- --------- -------------------- ----- -- -------------------- -------------------- ------- -------------------- -------------------- ---- ---- Total 1,937,456 100.0 % 1,744,270 100.0 % $ 193,186 11.1 % $ $ ==================== ========= ==================== ===== == ==================== ==================== ========= ==================== ===== == ==================== ==================== ======= ==================== ==================== ==== ==== Nine Months Ended ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- (in thousands) 3/31/2024 3/31/2023 $ Change % Change -------------------------------------------------------- -------------------- -------------------------------------------------------- -------------------- ----------------------------------------------- -------------------- -------- Department of Defense 4,163,079 74.0 % 3,554,080 71.1 % 608,999 17.1 % $ $ $ Federal Civilian agencies 1,178,500 21.0 % 1,179,467 23.6 % (967 ) -0.1 % Commercial and other 279,958 5.0 % 265,898 5.3 % 14,060 5.3 % -------------------- --------- -------------------- ----- -- -------------------- -------------------- --------- -------------------- ----- -- -------------------- -------------------- ------- -------------------- -------------------- ---- ----
Revenues by Contract Type (Unaudited) Three Months Ended --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- (in thousands) 3/31/2024 3/31/2023 $ Change % Change ------------------------------------------------------- -------------------- ------------------------------------------------------- -------------------- ----------------------------------------------- -------------------- -------- Cost-plus-fee 1,174,219 60.6 % 1,008,688 57.8 % 165,531 16.4 % $ $ $ Fixed-price 520,987 26.9 % 529,786 30.4 % (8,799 ) -1.7 % Time-and-materials 242,250 12.5 % 205,796 11.8 % 36,454 17.7 % -------------------- --------- -------------------- ----- - -------------------- -------------------- --------- -------------------- ----- - -------------------- -------------------- ------- -------------------- -------------------- ---- ---- Total 1,937,456 100.0 % 1,744,270 100.0 % 193,186 11.1 % $ $ $ ==================== ========= ==================== ===== = ==================== ==================== ========= ==================== ===== = ==================== ==================== ======= ==================== ==================== ==== ==== Nine Months Ended --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- (in thousands) 3/31/2024 3/31/2023 $ Change % Change ------------------------------------------------------- -------------------- ------------------------------------------------------- -------------------- ----------------------------------------------- -------------------- -------- Cost-plus-fee 3,411,128 60.7 % 2,896,778 58.0 % 514,350 17.8 % $ $ $ Fixed-price 1,542,608 27.4 % 1,520,915 30.4 % 21,693 1.4 % Time-and-materials 667,801 11.9 % 581,752 11.6 % 86,049 14.8 % -------------------- --------- -------------------- ----- - -------------------- -------------------- --------- -------------------- ----- - -------------------- -------------------- ------- -------------------- -------------------- ---- ----
Revenues by Prime or Subcontractor (Unaudited) Three Months Ended --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- (in thousands) 3/31/2024 3/31/2023 $ Change % Change -------------------------------------------------------- -------------------- -------------------------------------------------------- -------------------- --------------------------- -------------------- -------- Prime contractor 1,741,777 89.9 % 1,556,733 89.2 % 185,044 11.9 % $ $ $ Subcontractor 195,679 10.1 % 187,537 10.8 % 8,142 4.3 % -------------------- --------- -------------------- ----- -- -------------------- -------------------- --------- -------------------- ----- -- -------------------- -------------------- ------- -------------------- ---- ---- Total 1,937,456 100.0 % 1,744,270 100.0 % 193,186 11.1 % $ $ $ ==================== ========= ==================== ===== == ==================== ==================== ========= ==================== ===== == ==================== ==================== ======= ==================== ==== ==== Nine Months Ended --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- (in thousands) 3/31/2024 3/31/2023 $ Change % Change -------------------------------------------------------- -------------------- -------------------------------------------------------- -------------------- --------------------------- -------------------- -------- Prime contractor 5,027,516 89.4 % 4,467,882 89.4 % 559,634 12.5 % $ $ $ Subcontractor 594,021 10.6 % 531,563 10.6 % 62,458 11.7 % -------------------- --------- -------------------- ----- -- -------------------- -------------------- --------- -------------------- ----- -- -------------------- -------------------- ------- -------------------- ---- ----
Revenues by Expertise or Technology (Unaudited) Three Months Ended --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- (in thousands) 3/31/2024 3/31/2023 $ Change % Change -------------------------------------------------------- -------------------- -------------------------------------------------------- -------------------- --------------------------- -------------------- -------- Expertise 916,955 47.3 % 812,300 46.6 % 104,655 12.9 % $ $ $ Technology 1,020,501 52.7 % 931,970 53.4 % 88,531 9.5 % -------------------- --------- -------------------- ----- -- -------------------- -------------------- --------- -------------------- ----- -- -------------------- -------------------- ------- -------------------- ---- ---- Total 1,937,456 100.0 % 1,744,270 100.0 % 193,186 11.1 % $ $ $ ==================== ========= ==================== ===== == ==================== ==================== ========= ==================== ===== == ==================== ==================== ======= ==================== ==== ==== Nine Months Ended --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- (in thousands) 3/31/2024 3/31/2023 $ Change % Change -------------------------------------------------------- -------------------- -------------------------------------------------------- -------------------- --------------------------- -------------------- -------- Expertise 2,644,590 47.0 % 2,288,123 45.8 % 356,467 15.6 % $ $ $ Technology 2,976,947 53.0 % 2,711,322 54.2 % 265,625 9.8 % -------------------- --------- -------------------- ----- -- -------------------- -------------------- --------- -------------------- ----- -- -------------------- -------------------- ------- -------------------- ---- ----
Contract Awards (Unaudited) Three Months Ended ------------------------------------------------------------------------------------------------------------ (in thousands) 3/31/2024 3/31/2023 $ Change % Change ------------- -------------------- ------------- -------------------- ------------- -------------------- --------- Contract Awards 3,503,358 1,059,094 2,444,264 230.8 % $ $ $ ==== ========= ==================== ==== ========= ==================== ==== ========= ==================== ===== ==== Nine Months Ended ------------------------------------------------------------------------------------------------------------ (in thousands) 3/31/2024 3/31/2023 $ Change % Change ------------- -------------------- ------------- -------------------- ------------- -------------------- ---------
Reconciliation of Net Income to Adjusted Net Income and Diluted EPS to Adjusted Diluted EPS (Unaudited)
Adjusted net income and Adjusted diluted EPS are non-GAAP performance measures. We define Adjusted net income and Adjusted diluted EPS as GAAP net income and GAAP diluted EPS, respectively, excluding intangible amortization expense and the related tax impact as we do not consider intangible amortization expense to be indicative of our operating performance. We believe that these performance measures provide management and investors with useful information in assessing trends in our ongoing operating performance, provide greater visibility in understanding the long-term financial performance of the Company, and allow investors to more easily compare our results to results of our peers. These non-GAAP measures should not be considered in isolation or as a substitute for performance measures prepared in accordance with GAAP.
(in thousands, except per share data) Three Months Ended Nine Months Ended ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ -------------------------------------------------------------------------------------------------------------------------------------------------------------------- 3/31/2023 % Change 3/31/2024 3/31/2023 % Change -------------------- ----------------------------------------------- -------------------- ---------------------------------------------- ----------------------------------------------- -------------------- ----------------------------------------------- -------------------- ------------------------------ Net income, as reported $ 115,350 $ 100,742 14.5 % $ 285,267 $ 276,968 3.0 % 18,358 18,585 -1.2 % 55,150 56,808 -2.9 % Intangible amortization expense (4,682 ) (4,813 ) -2.7 % (14,065 ) (14,712 ) -4.4 % Tax effect of intangible amortization(1) -------------------- ------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- ------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- ---------- -------------------- Adjusted net income $ 129,026 $ 114,514 12.7 % $ 326,352 $ 319,064 2.3 % ==================== ======= ==================== ==================== ==================== ======= ==================== ==================== ==================== ====== ==================== ==================== ======= ==================== ==================== ==================== ======= ==================== ==================== ========== ==================== Three Months Ended Nine Months Ended ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ -------------------------------------------------------------------------------------------------------------------------------------------------------------------- 3/31/2024 3/31/2023 % Change 3/31/2024 3/31/2023 % Change ----------------------------------------------- -------------------- ----------------------------------------------- -------------------- ---------------------------------------------- ----------------------------------------------- -------------------- ----------------------------------------------- -------------------- ------------------------------ Diluted EPS, as reported $ 5.13 $ 4.33 18.5 % $ 12.63 $ 11.76 7.4 % 0.82 0.80 2.5 % 2.44 2.41 1.2 % Intangible amortization expense (0.21 ) (0.21 ) 0.0 % (0.63 ) (0.62 ) 1.6 % Tax effect of intangible amortization(1) -------------------- ------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- ------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- ---------- -------------------- Adjusted diluted EPS $ 5.74 $ 4.92 16.7 % $ 14.44 $ 13.55 6.6 % ==================== ======= ==================== ==================== ==================== ======= ==================== ==================== ==================== ====== ==================== ==================== ======= ==================== ==================== ==================== ======= ==================== ==================== ========== ==================== ----------------------------------------------- -------------------- ----------------------------------------------- -------------------- ---------------------------------------------- FY24 Guidance Range ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ (in millions, except per share data) Low End High End Net income, as reported $ 400 --- $ 410 74 --- 74 Intangible amortization expense (19 ) --- (19 ) Tax effect of intangible amortization(1) -------------------- ------- -------------------- -------------------- ------ -------------------- Adjusted net income $ 455 --- $ 465 ==================== ======= ==================== ==================== ====== ==================== ----------------------------------------------- -------------------- ----------------------------------------------- -------------------- ---------------------------------------------- FY24 Guidance Range ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ Low End High End Diluted EPS, as reported $ 17.70 --- $ 18.14 3.27 --- 3.27 Intangible amortization expense (0.84 ) --- (0.84 ) Tax effect of intangible amortization(1) -------------------- ------- -------------------- -------------------- ------ -------------------- Adjusted diluted EPS $ 20.13 --- $ 20.58 ==================== ======= ==================== ==================== ====== ====================
(1) Calculation uses an assumed full year statutory tax rate of 25.5% and 25.9% on non-GAAP tax deductible adjustments for March 31, 2024 and 2023, respectively. Calculation uses an assumed full year statutory tax rate of 25.5% and 25.9% on non-GAAP tax deductible