SAIC(US:SAIC)2024-12-05 21:04Financial Performance - Revenues for the three months ended November 1, 2024, were $1,976 million, a 4.3% increase from $1,895 million for the same period last year[8]. - Operating income for the nine months ended November 1, 2024, was $425 million, down 35.8% from $662 million for the same period last year[8]. - Net income for the three months ended November 1, 2024, was $106 million, representing a 14.0% increase compared to $93 million for the same period last year[11]. - Basic earnings per share for the three months ended November 1, 2024, were $2.15, up 20.1% from $1.79 for the same period last year[8]. - Comprehensive income for the three months ended November 1, 2024, was $105 million, compared to $90 million for the same period last year[11]. - Net income for the nine months ended November 1, 2024, was $264 million, compared to $438 million for the same period in 2023, representing a decrease of 39.7%[23]. - For the three months ended November 1, 2024, total revenues reached $1,976 million, an increase from $1,895 million in the same period last year, representing a growth of approximately 4.3%[110]. - For the nine months ended November 1, 2024, total revenue reached $5,641 million, compared to $4,465 million for the same period in the previous year, marking a year-over-year increase of 26.3%[61]. Assets and Liabilities - Total current assets as of November 1, 2024, were $1,160 million, an increase from $1,131 million as of February 2, 2024[15]. - Total liabilities as of November 1, 2024, were $3,663 million, a decrease from $3,529 million as of February 2, 2024[15]. - Cash and cash equivalents decreased to $46 million as of November 1, 2024, down from $94 million as of February 2, 2024[15]. - Accounts payable increased to $714 million as of November 1, 2024, compared to $567 million as of February 2, 2024[15]. - Retained earnings increased to $1,602 million as of November 1, 2024, from $1,432 million as of February 2, 2024[15]. - The company reported a decrease in receivables by $108 million for the nine months ended November 1, 2024, compared to a decrease of $142 million for the same period in 2023[23]. - The company reported a remaining performance obligation (RPO) of approximately $5.7 billion as of November 1, 2024, with an expectation to recognize revenue on about 81% of this amount over the next 12 months[65]. Cash Flow and Investments - Net cash provided by operating activities increased to $379 million for the nine months ended November 1, 2024, compared to $333 million for the same period in 2023, an increase of 13.8%[23]. - The company reported a net increase of $95 million to cash flows from operating activities from sold receivables for the nine months ended November 1, 2024, compared to no net impact in the prior year[103]. - Cash used in investing activities for the nine months ended November 1, 2024 was $15 million, a significant decrease from $324 million in the prior year, primarily due to the $356 million cash proceeds from the sale of the Supply Chain Business in the previous period[202]. - The company executed a $510 million senior secured term loan credit facility (Term Loan B3 Facility) due February 2031, which was fully borrowed to pay off previous loans[86]. - The company borrowed $975 million and repaid $860 million under the Revolving Credit Facility during the nine months ended November 1, 2024[91]. Shareholder Returns - Cash dividends paid were $57 million for the nine months ended November 1, 2024, compared to $60 million for the same period in 2023, reflecting a decrease of 5%[23]. - The company declared a quarterly dividend of $0.37 per share during the three months ended November 1, 2024[53]. - The company has authorized a share repurchase program of up to $1.2 billion, effective December 16, 2024[129]. - The company repurchased approximately 23.4 million shares under its repurchase plan, with a total authorized repurchase of approximately 24.4 million shares[52]. Business Segments - 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[27]. - The Defense and Intelligence segment generated revenues of $1,515 million, while the Civilian segment contributed $461 million for the same quarter, indicating a strong performance in both areas[110]. - The operating income for the Defense and Intelligence segment was $344 million for the nine months ended November 1, 2024, compared to $336 million in the same period last year, showing a modest increase[115]. - The Civilian segment's operating income was $105 million for the nine months ended November 1, 2024, compared to $139 million in the same period last year, reflecting a decrease of approximately 24.5%[115]. Operational Changes - The company completed a business reorganization effective February 3, 2024, transitioning from two customer-facing operating sectors to five business groups, enhancing operational efficiency[104]. - The company completed a business reorganization effective February 3, 2024, creating five customer-facing business groups[134]. Tax and Compliance - The effective income tax rate for the three months ended November 1, 2024, was 15.6%, a decrease from 18.0% for the same period in 2023, primarily due to the non-recurrence of a gain from the disposition of the Supply Chain Business[80][83]. - The company is currently subject to ongoing investigations by the U.S. Department of Justice, which may impact future financial results[121]. Future Outlook - The company expects to recognize revenue from a substantial portion of its funded backlog within the next twelve months[189]. - The fiscal year 2025 budget includes a 1% growth for defense budgets and an overall 1% growth for non-defense budgets[140]. - The company anticipates future cash needs for working capital, capital expenditures, and contractual commitments, evaluating cash provided by operating activities and free cash flow[197].