Science Applications International Corporation (NYSE:SAIC) Q1 2024 Earnings Conference Call June 5, 2023 10:00 AM ET Company Participants Joe DeNardi - VP of IR and Strategic Ventures Nazzic Keene - CEO Prabu Natarajan - CFO Conference Call Participants Tobey Sommer - Truist Securities Matt Akers - Wells Fargo Bert Subin - Stifel Cai von Rumohr - Cowen Sheila Kahyaoglu - Jefferies Jason Gursky - Citi Operator Hello, and thank you for standing by. My name is Regina, and I will be your conference operator tod ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended May 5, 2023 or TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to ______ Commission File Number 001-35832 Science Applications International Corporation (Exact name of registrant as specified in its charter) Delaware 46 ...

Non-GAAP Reconciliation – FY24 Free Cash Flow Guidance (1) "Free cash flow" is a non-GAAP financial measure that is reconciled in this schedule to the most directly comparable GAAP financial measures. This non-GAAP financial measure provides investors with greater visibility into cash flows provided by operating activities, but is not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with SAIC's consolidated financial statements prepar ...

Science Applications International Corporation (NASDAQ:SAIC) Q4 2023 Earnings Conference Call April 3, 2023 10:00 AM ET Company Participants Joe DeNardi - Investor Relations Nazzic Keene - Chief Executive Officer Prabu Natarajan - Chief Financial Officer Conference Call Participants Jason Gursky - Citi Matt Akers - Wells Fargo Cai von Rumohr - Cowen Greg Konrad - Jefferies Tobey Sommer - Truist Securities Louie DiPalma - William Blair Operator Good morning. My name is Rob and I will be your conference opera ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended February 3, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to _____ Commission file number 001-35832 Science Applications International Corporation (Exact name of registrant as specified in its charter) Delaware 46-19 ...

Science Applications International Corporation Fiscal Year 2023 Third Quarter Earnings Call Supplemental Financial Presentation December 5, 2022 SAIC. We're not just another company that solves problems. No, we're a company that never stops reaching. Never stops pushing beyond our limits. To rethink engineering n a digital world, we reached. To redefine space training through virtual reality, we reached. To redesign new combat vehicles for our troops, we reached. And what's the one thing we haven't reached? ...

Part I Financial Information [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Presents unaudited condensed and consolidated financial statements for Q3 FY2023, detailing income, balance sheets, cash flows, and notes [Condensed and Consolidated Statements of Income](index=4&type=section&id=Condensed%20and%20Consolidated%20Statements%20of%20Income) | Metric | Three Months Ended Oct 28, 2022 ($M) | Three Months Ended Oct 29, 2021 ($M) | Nine Months Ended Oct 28, 2022 ($M) | Nine Months Ended Oct 29, 2021 ($M) | | :--- | :--- | :--- | :--- | :--- | | **Revenues** | $1,909M | $1,898M | $5,736M | $5,612M | | **Operating Income** | $133M | $114M | $383M | $377M | | **Net Income** | $80M | $71M | $228M | $235M | | **Diluted EPS** | $1.45 | $1.22 | $4.04 | $4.01 | - Revenues for the third quarter increased slightly to **$1,909 million** from **$1,898 million** year-over-year. Net income attributable to common stockholders grew to **$80 million**, or **$1.45 per diluted share**, compared to **$71 million**, or **$1.22 per diluted share**, in the prior-year period[6](index=6&type=chunk) [Condensed and Consolidated Balance Sheets](index=7&type=section&id=Condensed%20and%20Consolidated%20Balance%20Sheets) | Metric | October 28, 2022 ($M) | January 28, 2022 ($M) | | :--- | :--- | :--- | | **Total Current Assets** | $1,247M | $1,263M | | **Goodwill** | $2,911M | $2,913M | | **Total Assets** | $5,628M | $5,746M | | **Total Current Liabilities** | $1,230M | $1,352M | | **Long-term Debt, net** | $2,358M | $2,370M | | **Total Stockholders' Equity** | $1,696M | $1,629M | | **Total Liabilities and Stockholders' Equity** | $5,628M | $5,746M | - As of October 28, 2022, total assets were **$5.63 billion**, a slight decrease from **$5.75 billion** at the end of fiscal 2022. Total stockholders' equity increased to **$1.70 billion** from **$1.63 billion** over the same period, primarily due to retained earnings[12](index=12&type=chunk) [Condensed and Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20and%20Consolidated%20Statements%20of%20Cash%20Flows) | Cash Flow Activity | Nine Months Ended Oct 28, 2022 ($M) | Nine Months Ended Oct 29, 2021 ($M) | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $387M | $415M | | **Net cash used in investing activities** | ($23M) | ($272M) | | **Net cash used in financing activities** | ($417M) | ($176M) | | **Net decrease in cash** | ($53M) | ($33M) | - For the nine months ended October 28, 2022, net cash from operating activities was **$387 million**, down from **$415 million** in the prior year. Investing activities used significantly less cash (**$23 million** vs. **$272 million**) due to the absence of major acquisitions in the current period. Financing activities used more cash (**$417 million** vs. **$176 million**) mainly due to debt repayments and increased share repurchases[16](index=16&type=chunk) [Notes to Condensed and Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20and%20Consolidated%20Financial%20Statements) - The company is a leading provider of technical, engineering, and enterprise IT services, primarily to the U.S. government, operating as a single reportable segment[17](index=17&type=chunk)[18](index=18&type=chunk) - Acquisition and integration costs were **$1 million** and **$11 million** for the three and nine months ended October 28, 2022, respectively, a significant decrease from **$12 million** and **$36 million** in the prior-year periods[30](index=30&type=chunk) - The company declared and paid a quarterly dividend of **$0.37 per share** during the third quarter of fiscal 2023[38](index=38&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q3 FY2023 financial performance, highlighting revenue and operating income growth, key metrics, and liquidity [Results of Operations](index=27&type=section&id=Results%20of%20Operations) | Metric | Three Months Ended Oct 28, 2022 ($M) | Change vs. Prior Year | Nine Months Ended Oct 28, 2022 ($M) | Change vs. Prior Year | | :--- | :--- | :--- | :--- | :--- | | **Revenues** | $1,909M | 1% | $5,736M | 2% | | **Operating Income** | $133M | 17% | $383M | 2% | | **Operating Margin** | 7.0% | +1.0 ppt | 6.7% | 0.0 ppt | - Q3 revenue increased by **$11 million (1%)** year-over-year, primarily due to the ramp-up of new and existing contracts, partially offset by contract completions[99](index=99&type=chunk) - Q3 operating income as a percentage of revenues increased to **7.0%** from **6.0%** in the prior year, mainly due to lower acquisition and integration costs and indirect costs[103](index=103&type=chunk) [Non-GAAP Measures](index=29&type=section&id=Non-GAAP%20Measures) | Metric | Three Months Ended Oct 28, 2022 ($M) | Three Months Ended Oct 29, 2021 ($M) | Nine Months Ended Oct 28, 2022 ($M) | Nine Months Ended Oct 29, 2021 ($M) | | :--- | :--- | :--- | :--- | :--- | | **Net Income** | $80M | $71M | $228M | $235M | | **EBITDA** | $168M | $159M | $498M | $505M | | **Adjusted EBITDA** | $170M | $171M | $509M | $540M | | **Adjusted EBITDA Margin** | 8.9% | 9.0% | 8.9% | 9.6% | - Adjusted EBITDA for the nine months ended October 28, 2022, decreased to **$509 million** from **$540 million** in the prior year, with the margin contracting to **8.9%** from **9.6%**, primarily due to lower net favorable changes in contract estimates[112](index=112&type=chunk) [Other Key Performance Measures](index=30&type=section&id=Other%20Key%20Performance%20Measures) - Net bookings were an estimated **$2.0 billion** for the third quarter and **$6.1 billion** for the first nine months of fiscal 2023[117](index=117&type=chunk) | Backlog Category | October 28, 2022 ($M) | January 28, 2022 ($M) | | :--- | :--- | :--- | | **Funded Backlog** | $4,019M | $3,491M | | **Negotiated Unfunded Backlog** | $20,413M | $20,601M | | **Total Backlog** | $24,432M | $24,092M | [Liquidity and Capital Resources](index=32&type=section&id=Liquidity%20and%20Capital%20Resources) - The company expects to fund ongoing operations with cash on hand, future operating cash flows, its **$1.0 billion** Revolving Credit Facility, and its **$300 million** MARPA (receivables sale) Facility[120](index=120&type=chunk) - Net cash from operating activities decreased by **$28 million** to **$387 million** for the nine months ended October 28, 2022, compared to the prior year, due to timing of customer collections and other working capital changes[105](index=105&type=chunk)[125](index=125&type=chunk) - The Tax Cuts and Jobs Act of 2017, requiring capitalization of R&D costs, is expected to decrease cash flows from operations in fiscal 2023 by a minimum of **$90 million** if not deferred or repealed by Congress[124](index=124&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=33&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Reports no material changes to market risks from those disclosed in the most recent Annual Report on Form 10-K - There have been no material changes to the company's market risks from those discussed in the most recently filed Annual Report on Form 10-K[130](index=130&type=chunk) [Item 4. Controls and Procedures](index=33&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls were effective as of October 28, 2022, with no material changes to internal controls - Management concluded that as of October 28, 2022, the company's disclosure controls and procedures were operating and effective[131](index=131&type=chunk) - There were no changes in internal control over financial reporting during the quarter that materially affected, or are likely to materially affect, internal controls[132](index=132&type=chunk) Part II Other Information [Item 1. Legal Proceedings](index=35&type=section&id=Item%201.%20Legal%20Proceedings) Refers to Note 11 for legal proceedings, indicating no material adverse effects from normal business claims - Information regarding legal proceedings is provided in Note 11 to the condensed and consolidated financial statements[134](index=134&type=chunk) [Item 1A. Risk Factors](index=35&type=section&id=Item%201A.%20Risk%20Factors) Reports no material changes from the risk factors disclosed in the most recent Annual Report on Form 10-K - There have been no material changes from the risk factors disclosed in the most recently filed Annual Report on Form 10-K[136](index=136&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=35&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Details Q3 common stock repurchases and remaining authorized shares under the repurchase program | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | July 30 - Sep 2, 2022 | 226,413 | $93.86 | | Sep 3 - Sep 30, 2022 | 205,791 | $91.84 | | Oct 1 - Oct 28, 2022 | 196,770 | $95.07 | | **Total** | **628,974** | **$93.57** | - As of October 28, 2022, approximately **7.9 million shares** may yet be purchased under the publicly announced repurchase program[138](index=138&type=chunk)[139](index=139&type=chunk) [Item 6. Exhibits](index=36&type=section&id=Item%206.%20Exhibits) Lists exhibits filed with Form 10-Q, including CEO/CFO certifications and the Interactive Data File (Inline XBRL) - Exhibits filed with the report include CEO and CFO certifications under Sections 302 and 906 of the Sarbanes-Oxley Act[143](index=143&type=chunk)

Science Applications International Corporation Fiscal Year 2023 Second Quarter Earnings Call Supplemental Financial Presentation September 1, 2022 SAIC. BRING ON TOMORROW. We're not just another company that solves problems. No, we're a company that never stops reaching. Never stops pushing beyond our limits. To rethink engineering n a digital world, we reached. To redefine space training through virtual reality, we reached. To redesign new combat vehicles for our troops, we reached. And what's the one thin ...

Science Applications International Corporation (NASDAQ:SAIC) Q2 2023 Earnings Conference Call September 1, 2022 10:00 AM ET Company Participants Joe DeNardi – Vice President-Investor Relations and Strategic Ventures Nazzic Keene – Chief Executive Officer Prabu Natarajan – Chief Financial Officer Conference Call Participants Ellen Page – Jefferies Gavin Parsons – Goldman Sachs Bert Subin – Stifel Cai von Rumohr – Cowen Matt Akers – Wells Fargo Seth Seifman – JPMorgan Tobey Sommer – Truist Securities Colin Ca ...

Part I Financial Information [Financial Statements](index=4&type=section&id=Item%201%20Financial%20Statements) The unaudited financial statements present the company's income, balance sheet, and cash flows for the period [Condensed and Consolidated Statements of Income](index=4&type=section&id=Condensed%20and%20Consolidated%20Statements%20of%20Income) Quarterly revenue remained flat while net income declined, with six-month revenue growing but net income decreasing Consolidated Statements of Income (Unaudited) | Metric | Three Months Ended July 29, 2022 | Three Months Ended July 30, 2021 | Six Months Ended July 29, 2022 | Six Months Ended July 30, 2021 | | :--- | :--- | :--- | :--- | :--- | | **Revenues** | $1,831M | $1,836M | $3,827M | $3,714M | | **Operating Income** | $125M | $133M | $250M | $263M | | **Net Income Attributable to Common Stockholders** | $73M | $82M | $146M | $163M | | **Diluted EPS** | $1.30 | $1.41 | $2.59 | $2.79 | [Condensed and Consolidated Balance Sheets](index=7&type=section&id=Condensed%20and%20Consolidated%20Balance%20Sheets) Total assets slightly decreased, with goodwill and intangible assets as key components, while equity increased Balance Sheet Highlights (Unaudited) | Metric | July 29, 2022 | January 28, 2022 | | :--- | :--- | :--- | | Cash and cash equivalents | $99M | $106M | | Goodwill | $2,911M | $2,913M | | **Total Assets** | **$5,654M** | **$5,746M** | | Long-term debt, net of current portion | $2,462M | $2,370M | | **Total Liabilities** | **$4,001M** | **$4,117M** | | **Total Stockholders' Equity** | **$1,653M** | **$1,629M** | [Condensed and Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20and%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow decreased while cash used in financing increased, driven by debt and share repurchases Cash Flow Summary (Unaudited) | Cash Flow Activity | Six Months Ended July 29, 2022 | Six Months Ended July 30, 2021 | | :--- | :--- | :--- | | Net cash provided by operating activities | $259M | $281M | | Net cash used in investing activities | ($17M) | ($256M) | | Net cash used in financing activities | ($249M) | ($73M) | | **Net decrease in cash** | **($7M)** | **($48M)** | [Notes to Condensed and Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20and%20Consolidated%20Financial%20Statements) The notes detail accounting policies, revenue recognition, debt, share repurchases, and performance obligations - The company is a leading provider of technical, engineering, and enterprise IT services, primarily to the U.S. government[17](index=17&type=chunk) - In June 2022, the share repurchase plan was increased by **8.0 million shares**, with approximately **15.9 million shares** repurchased under the program as of July 29, 2022[38](index=38&type=chunk) - A quarterly dividend of **$0.37 per share** was declared and paid during the quarter[39](index=39&type=chunk) - As of July 29, 2022, the company had **$5.0 billion** of remaining performance obligations, with approximately **80%** expected to be recognized as revenue over the next 12 months[47](index=47&type=chunk) - On June 30, 2022, the company amended its credit agreement, establishing a new **$1,230 million Term Loan A Facility** and increasing its Revolving Credit Facility to **$1,000 million**[60](index=60&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=24&type=section&id=Item%202%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management analyzes flat quarterly revenue, declining operating income, and a strong backlog of $24.3 billion Results of Operations Summary | Metric | Three Months Ended July 29, 2022 | % Change YoY | Six Months Ended July 29, 2022 | % Change YoY | | :--- | :--- | :--- | :--- | :--- | | **Revenues** | $1,831M | 0% | $3,827M | 3% | | **Operating Income** | $125M | (6%) | $250M | (5%) | | **Net Income Attributable to Common Stockholders** | $73M | (11%) | $146M | (10%) | - Quarterly revenue decrease of **$5 million** was primarily due to contract completions and one fewer working day, partially offset by the Halfaker acquisition (approx. **$30 million**) and new contract ramps[100](index=100&type=chunk) - Six-month revenue increase of **$113 million** was driven by new/existing contract ramps and the Halfaker acquisition (approx. **$72 million**)[101](index=101&type=chunk) Backlog and Bookings | Metric | Value (in billions) | | :--- | :--- | | Total Backlog (as of July 29, 2022) | $24.3 | | Net Bookings (Q2 FY23) | $2.1 | | Net Bookings (First Half FY23) | $4.1 | - The Tax Cuts and Jobs Act of 2017, which requires capitalization of R&D costs, is expected to decrease cash flows from operations in fiscal 2023 by a **minimum of $90 million** if not deferred or repealed by Congress[125](index=125&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=31&type=section&id=Item%203%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Market risk disclosures remain materially unchanged from the most recent Annual Report on Form 10-K - There have been no material changes to the company's market risks since the last Annual Report on Form 10-K[131](index=131&type=chunk) [Controls and Procedures](index=31&type=section&id=Item%204%20Controls%20and%20Procedures) Disclosure controls and procedures were deemed effective with no material changes to internal controls - The company's disclosure controls and procedures were evaluated and concluded to be effective as of the end of the quarter[132](index=132&type=chunk) - No material changes were made to the internal control over financial reporting during the quarter[133](index=133&type=chunk) Part II Other Information [Legal Proceedings](index=33&type=section&id=Item%201%20Legal%20Proceedings) Details regarding legal matters are cross-referenced to Note 11 of the financial statements - Information regarding legal proceedings is provided in Note 11 to the condensed and consolidated financial statements[135](index=135&type=chunk) [Risk Factors](index=33&type=section&id=Item%201A%20Risk%20Factors) Risk factors remain materially unchanged from those disclosed in the latest Annual Report on Form 10-K - There have been no material changes to the risk factors disclosed in the most recent Form 10-K[137](index=137&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=33&type=section&id=Item%202%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased 706,379 shares and increased its share repurchase authorization by 8.0 million shares Common Stock Repurchases (Q2 FY23) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | Apr 30 - Jun 3, 2022 | 358,544 | $83.26 | | Jun 4 - Jul 1, 2022 | 165,457 | $91.10 | | Jul 2 - Jul 29, 2022 | 182,378 | $93.21 | | **Total** | **706,379** | **$87.66** | - In June 2022, the share repurchase plan was increased by **8.0 million shares**, bringing the total authorized shares to be repurchased to approximately **24.4 million**, with **15.9 million shares** repurchased under the program as of July 29, 2022[139](index=139&type=chunk) [Exhibits](index=34&type=section&id=Item%206%20Exhibits) Filed exhibits include the amended credit agreement and required CEO/CFO Sarbanes-Oxley certifications - Key exhibits filed include the Fifth Amendment to the Third Amended and Restated Credit Agreement and CEO/CFO certifications pursuant to Sarbanes-Oxley Sections 302 and 906[143](index=143&type=chunk)