RESTON, Va., Sept. 18, 2024 (GLOBE NEWSWIRE) -- Science Applications International Corp. (NASDAQ: SAIC) has been awarded a new $229 million contract by the U.S. Department of Defense to provide vital IT solutions under the NORAD/USNORTHCOM Information Technology Enterprise Services (NITES) program. "NORAD and USNORTHCOM defend America and its people," said Vinnie DiFronzo, executive vice president for Air Force and Combatant Commands at SAIC. "SAIC is committed to delivering a highlyresilient, highly-availa ...

Core Viewpoint - Science Applications International Corporation (SAIC) reported better-than-expected results for the second quarter of fiscal 2025, with adjusted earnings of $2.05 per share, surpassing the Zacks Consensus Estimate of $1.86 [1][2]. Financial Performance - Revenues increased by 1.9% year over year to $1.82 billion, exceeding the consensus mark of $1.8 billion, driven by organic growth and new business wins, despite challenges from contract transitions [3]. - Adjusted EBITDA was $170 million, down 2% year over year, with the adjusted EBITDA margin contracting by 40 basis points to 9.4% [3][6]. - Net bookings for the fiscal second quarter were $1.2 billion, resulting in a book-to-bill ratio of 0.6, with an estimated backlog of signed business deals at $22.9 billion [5]. - Selling, general and administrative (SG&A) expenses decreased by 12.5% to $77 million, with SG&A as a percentage of revenues declining from 4.9% to 4.2% [5]. Business Structure and Guidance - Effective February 3, 2024, SAIC reorganized its business structure into five new customer-facing business groups, which are combined into two reportable segments: Defense and Intelligence, and Civilian [4]. - The company reaffirmed its fiscal 2025 guidance, projecting revenues in the range of $7.35-$7.50 billion and adjusted earnings between $8.10-$8.30 per share [8]. - SAIC expects adjusted EBITDA in the range of $680-$700 million and free cash flow between $490-$510 million [9]. Balance Sheet and Cash Flow - As of the end of the fiscal second quarter, SAIC had cash and cash equivalents of $48 million, down from $49 million in the previous quarter [7]. - Long-term debt was reported at $1.97 billion, a slight decrease from $1.99 billion [7]. - The company generated operating cash flow of $138 million and free cash flow of $241 million during the fiscal second quarter [7].

Financial Performance - Revenues for the three months ended August 2, 2024, were $1,818 million, a 1.9% increase from $1,784 million for the same period in 2023[3] - Net income for the three months ended August 2, 2024, was $81 million, a decrease of 67.2% compared to $247 million for the same period in 2023[3] - Basic earnings per share for the three months ended August 2, 2024, were $1.59, down 65.4% from $4.60 for the same period in 2023[3] - Operating income for the three months ended August 2, 2024, was $134 million, a significant decrease from $362 million for the same period in 2023[3] - The company reported a comprehensive income of $73 million for the three months ended August 2, 2024, compared to $254 million for the same period in 2023[4] - Net income for the six months ended August 2, 2024, was $158 million, compared to $345 million for the same period in 2023, reflecting a decrease of 54%[9] - For the six months ended August 2, 2024, revenues were $3,665 million, a decrease from $3,812 million for the same period in 2023[32] - Total operating income for the six months ended August 2, 2024, was $265 million, down from $519 million for the same period in 2023[69] Assets and Liabilities - Total assets as of August 2, 2024, were $5,250 million, a decrease from $5,314 million as of February 2, 2024[6] - Current liabilities increased to $1,292 million as of August 2, 2024, compared to $1,158 million as of February 2, 2024[6] - Total stockholders' equity decreased to $1,625 million as of August 2, 2024, from $1,785 million as of February 2, 2024[6] - As of August 2, 2024, the total debt of the Company was $2.177 billion, with a net debt of $1.980 billion after accounting for the current portion[51] Cash Flow and Investments - Cash provided by operating activities was $236 million for the six months ended August 2, 2024, slightly up from $232 million in the same period of 2023[9] - Total cash, cash equivalents, and restricted cash at the end of the period was $56 million, down from $361 million at the end of the same period in 2023[9] - The company reported a net cash used in investing activities of $16 million for the six months ended August 2, 2024, compared to a net cash provided of $334 million in the same period of 2023[9] - Cash proceeds from the divestiture of the Supply Chain Business amounted to $356 million, enhancing the company's focus on long-term strategic growth areas[42] Stock and Dividends - The company repurchased $304 million worth of stock during the six months ended August 2, 2024, compared to $190 million in the same period of 2023, indicating a significant increase in stock buybacks[9] - The company declared cash dividends of $39 million during the six months ended August 2, 2024, compared to $41 million in the same period in 2023[9] - The company declared a quarterly dividend of $0.37 per share during the three months ended August 2, 2024[28] Business Operations and Strategy - The company completed a business reorganization effective February 3, 2024, transitioning from two customer-facing operating sectors to five business groups[11] - The Defense and Intelligence segment provides a diverse portfolio of national security solutions to U.S. government agencies, while the Civilian segment focuses on solutions for federal, state, and local governments[12] - The Innovation Factory supports the operating segments by developing enterprise-class solutions, including a focus on AI, application development, and cybersecurity[13] - The company anticipates that future spending packages from the U.S. government may provide additional opportunities in areas of focus such as digital modernization and climate resiliency[87] - The company is focused on leveraging its scale and technical expertise to differentiate itself from competitors, particularly in large contract opportunities[88] Performance Obligations and Backlog - The company reported approximately $5.4 billion in remaining performance obligations (RPO) as of August 2, 2024, with an expectation to recognize 79% of this amount over the next 12 months[38] - Total backlog as of August 2, 2024, was $22.899 billion, consisting of $4.237 billion in funded backlog and $18.662 billion in negotiated unfunded backlog[114] - The company expects to recognize revenue from a substantial portion of its funded backlog within the next twelve months[114] Tax and Accounting - The effective income tax rate for the three months ended August 2, 2024, was 19.6%, a decrease from 26.4% for the same period in 2023[49] - The company plans to adopt new accounting standards related to income taxes and segment reporting in fiscal years 2025 and 2026, respectively[23][24] Market and Segment Performance - The Defense and Intelligence segment generated revenues of $1,415 million for the three months ended August 2, 2024, compared to $1,389 million for the same period in 2023, reflecting a growth of 1.9%[69] - The Civilian segment reported revenues of $403 million for the three months ended August 2, 2024, up from $395 million in the same period of 2023, marking a 2.0% increase[69] - Revenues for the three months ended August 2, 2024, increased by $34 million (2%) compared to the same period in the prior year, primarily due to ramp-up in volume on existing and new contracts[94] Investigations and Compliance - The company is involved in ongoing investigations by the U.S. Department of Justice, which may impact future financial results, although no material adverse effects are currently anticipated[71] - The Company is in compliance with the covenants under its Credit Facility as of August 2, 2024[56]

Financial Data and Key Metrics Changes - The company reported second quarter organic revenue growth of 2% year-over-year, with adjusted EBITDA of $170 million and a margin of 9.4% [7][8] - Adjusted diluted earnings per share increased to $2.05, benefiting from a lower effective tax rate of approximately 19.5% and a 5% year-over-year reduction in the weighted average share count [7][8] - Free cash flow for the second quarter was $241 million, contributing to a total of $262 million for the first half, representing over 50% of the full year guidance [8][16] Business Line Data and Key Metrics Changes - The company is focusing on increasing submissions in the Civilian market and within Enterprise and Mission IT, which are expected to drive outsized growth [10][11] - Net bookings for the quarter were $1.2 billion, resulting in a book-to-bill ratio of 0.6x for the quarter and 1.1x on a trailing 12-month basis [13] Market Data and Key Metrics Changes - The company is experiencing a headwind of approximately 5% from recompete pressures, which is expected to ease going into fiscal year 2026 [15][39] - The company anticipates that the political environment will not significantly impact its Civilian and Defense portfolios due to bipartisan support for key agencies [20][21] Company Strategy and Development Direction - The company has implemented an enterprise operating model designed to optimize investment planning and align its pipeline with growth vectors, focusing on four pivots: portfolio, go-to-market, culture, and brand [9] - The strategy aims to increase the total value of submissions, improve the quality of bids, and drive bookings and backlog growth, with expectations for a book-to-bill ratio of 1.2x by the first half of fiscal year 2026 [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the guidance for fiscal year 2025 and sustaining momentum into fiscal year 2026, despite some revenue challenges in the second half of the year [8][15] - The company is optimistic about its ability to gain market share in the Civilian space, as it is currently underrepresented [21] Other Important Information - The company returned approximately $220 million to shareholders in the quarter, including $201 million in share repurchases, and is on track to exceed its repurchase target for the year [14][16] - The company is maintaining a high threshold for M&A while focusing on its share repurchase program [16] Q&A Session Summary Question: What gives confidence to reach a book-to-bill of 1.2? - Management indicated that the submission rate and a larger qualification pipeline, with about $10 billion of submitted bids pending award, support this confidence [18][19] Question: How does the company view the Civilian versus Defense budget shifts? - Management believes the Civilian portfolio is insulated from major swings due to bipartisan support, while defense spending is expected to remain stable [20][21] Question: What is the risk around execution for the bids being chased? - The company is focusing on bidding more strategically and margin-accretively, with an emphasis on fixed-price contracts and tightening execution expectations [24][25] Question: What is the status of the recompete for the largest contract? - Management expects no award activity until the next fiscal year, with potential revenue impact in fiscal year 2026 or early fiscal year 2027 [51][53]

U.S. stocks traded mixed toward the end of trading, with the Nasdaq Composite gaining around 0.5% on Thursday. The Dow traded down 0.36% to 40,828.19 while the NASDAQ rose 0.53% to 17,174.66. The S&P 500 also fell, dropping, 0.08% to 5,515.76. Check This Out: How To Earn $500 A Month From Smith & Wesson Brands Stock Ahead Of Q1 Earnings Report Leading and Lagging Sectors Consumer discretionary shares climbed by 1.4% on Thursday. In trading on Thursday, health care shares fell by 1.2%. Top Headline Science A ...

Key Takeaways Science Applications International Corporation, or SAIC, exceeded profit and sales forecasts on increased contract volume. The government and defense technology provider also raised its full-year EPS guidance. Free cash flow rose 67% year-over-year. Shares of Science Applications International Corporation (SAIC), or SAIC, advanced Thursday when the government and defense technology provider posted better-than-expected results and boosted its guidance as the volume of contracts increased. SAIC ...

SAIC (SAIC) came out with quarterly earnings of $2.05 per share, beating the Zacks Consensus Estimate of $1.86 per share. This compares to earnings of $2.05 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of 10.22%. A quarter ago, it was expected that this information technology company would post earnings of $1.93 per share when it actually produced earnings of $1.92, delivering a surprise of -0.52%. Over the last four quarters, ...

Core Insights - Science Applications International Corporation (SAIC) reported revenues of $1.82 billion for the second quarter of Fiscal Year 2025, reflecting a 2% organic growth compared to the previous year [1][4] - The company achieved a net income of $81 million and an adjusted EBITDA of $170 million, which is 9.4% of revenues [1][3] - SAIC increased its adjusted diluted earnings per share (EPS) guidance for Fiscal Year 2025 to a range of $8.10 - $8.30, reaffirming all other financial guidance for the year [1][14] Financial Performance - Revenues increased by $34 million or 2% year-over-year, primarily due to ramp-up in volume on existing and new contracts, partially offset by contract completions [4][26] - Operating income decreased significantly to $134 million, down 63% from $362 million in the prior year, largely due to a prior year gain from the sale of the Supply Chain Business [3][5] - Net income fell by 67% from $247 million to $81 million, while diluted EPS dropped from $4.56 to $1.58 [3][7] Cash Flow and Capital Deployment - Cash flows from operating activities decreased by $12 million to $138 million, attributed to higher cash used from the Master Accounts Receivable Purchase Agreement [8] - Free cash flow increased significantly by 67% to $241 million compared to $144 million in the prior year [1][8] - The company deployed $226 million in capital, including $201 million for share repurchases and $19 million in cash dividends [9][10] Backlog and Contract Awards - Net bookings for the quarter were approximately $1.2 billion, resulting in a book-to-bill ratio of 0.6, while the trailing twelve months book-to-bill ratio stood at 1.1 [11] - The estimated backlog at the end of the quarter was approximately $22.9 billion, with $4.2 billion funded [11][29] - Notable contract awards included a $134 million task order from the U.S. Treasury and a $206 million recompete from the Department of Veterans Affairs [12][13] Guidance and Future Outlook - The company expressed confidence in achieving Fiscal Year 2027 targets of 5% organic revenue growth and mid-9% adjusted EBITDA margins [2] - Management reaffirmed its guidance for Fiscal Year 2025, projecting revenues between $7.35 billion and $7.50 billion and adjusted EBITDA between $680 million and $700 million [15][14]

Financial Performance - Revenues for Q2 FY2025 were $1.82 billion, reflecting a 2% organic growth compared to the same period last year[1]. - Net income decreased to $81 million, while adjusted EBITDA was $170 million, representing 9.4% of revenues[1][3]. - Diluted earnings per share (EPS) were $1.58, down 65% from $4.56 in the prior year quarter; adjusted diluted EPS remained at $2.05[3]. - Operating income as a percentage of revenues decreased to 7.4% from 20.3% in the prior year, primarily due to contract completions[3]. - The company reported a net income of $81 million for the three months ended August 2, 2024, down from $247 million in the same period last year[17]. - Net income for the three months ended August 2, 2024, was $81 million, down 67.2% from $247 million for the same period last year[25]. - Adjusted EBITDA for the three months ended August 2, 2024, was $170 million, representing 9.4% of revenues, compared to $174 million and 9.8% of revenues for the same period last year[25]. - Total revenues for the six months ended August 2, 2024, were $3,665 million, a decrease of 3.8% from $3,812 million for the same period last year[25]. - Net income for the six months ended August 2, 2024, was $205 million, compared to $227 million for the same period in 2023, reflecting a decrease of approximately 9.7%[33]. - Diluted EPS for the six months ended August 2, 2024, was $3.97, down from $4.19 in the prior year, representing a decline of about 5.3%[34]. Cash Flow and Liquidity - Free cash flow increased by 67% to $241 million compared to $144 million in the prior year[2][5]. - Net cash provided by operating activities for the quarter was $138 million, compared to $150 million in the prior year[17]. - Free cash flow for the three months ended August 2, 2024, was $241 million, an increase from $144 million in the same period last year, marking a growth of approximately 67.4%[35]. - Transaction-adjusted free cash flow for the three months ended August 2, 2024, was $241 million, compared to $143 million in the prior year, indicating a rise of about 68.5%[35]. - The company expects net cash provided by operating activities to be between $520 million and $540 million for the upcoming period[36]. - Projected free cash flow is estimated to be between $490 million and $510 million, reflecting strong operational performance[36]. Backlog and Bookings - Net bookings for the quarter were approximately $1.2 billion, resulting in a book-to-bill ratio of 0.6 and a trailing twelve months book-to-bill ratio of 1.1[7]. - The estimated backlog at the end of the quarter was approximately $22.9 billion, with $4.2 billion funded[7]. - The total backlog as of August 2, 2024, was $22,899 million, consisting of $4,237 million in funded backlog and $18,662 million in negotiated unfunded backlog[23]. Segment Performance - Operating income for the Defense and Intelligence segment was $107 million, with an operating income margin of 7.6%[18][20]. - The Civilian segment reported revenues of $403 million, also reflecting a 2% increase compared to the prior year[22]. Guidance and Future Outlook - The company increased its adjusted diluted EPS guidance for FY2025 to $8.10 - $8.30, reaffirming all other financial guidance[9]. - The company plans to continue focusing on cash flow trends and liquidity measures to enhance financial performance and shareholder value[35]. - The company is committed to optimizing its facilities and managing long-lived asset impairments as part of its restructuring strategy[34]. Other Financial Metrics - Cash flows from operating activities decreased by $12 million compared to the prior year, mainly due to higher cash used from the Master Accounts Receivable Purchase Agreement[5]. - Total current liabilities increased to $1,292 million from $1,158 million year-over-year[16]. - Principal payments on borrowings for the quarter amounted to $296 million, compared to $100 million in the prior year[17]. - The company experienced a decrease in cash and cash equivalents to $56 million at the end of the period, down from $361 million[17]. - Operating loss in the Corporate segment increased to $7 million, primarily due to the prior year gain from divestiture[22]. - The company incurred restructuring and impairment costs of $5 million for the three months ended August 2, 2024[31]. - The EBITDA margin for the six months ended August 2, 2024, was 9.2%, compared to 15.6% for the same period last year[25]. - The company reported interest expense of $35 million for the three months ended August 2, 2024, compared to $31 million for the same period last year[25]. - The company reported a loss on divestitures of $234 million for the three months ended August 4, 2023[25]. - Acquisition and integration costs for the six months ended August 2, 2024, amounted to $4 million, while restructuring and impairment costs were $6 million[33]. - The company reported a significant gain on divestitures, net of transaction costs, amounting to $240 million for the six months ended August 4, 2023[34].

RESTON, Va., Aug. 30, 2024 (GLOBE NEWSWIRE) -- Science Applications International Corp. (NASDAQ: SAIC) announced today that the company's board of directors declared a cash dividend of $0.37 per share of the company's common stock payable on October 25, 2024 to stockholders of record on October 11, 2024. SAIC intends to continue paying dividends on a quarterly basis, although the declaration of any future dividends will be determined by the board of directors each quarter and will depend on earnings, financ ...