SAIC(US:SAIC)2024-06-03 10:55Financial Performance - Revenues for Q1 FY2025 were $1.85 billion, a decrease of 9% compared to $2.03 billion in Q1 FY2024, primarily due to the divestiture of the Supply Chain Business[5] - Net income for the quarter was $77 million, down 21% from $98 million in the prior year[4] - Adjusted EBITDA was $166 million, representing 9.0% of revenues, a decrease from 9.3% in the same period last year[7] - Diluted earnings per share were $1.48, down 17% from $1.79 in the prior year, while adjusted diluted EPS was $1.92, down 10% from $2.14[7] - Revenues for the quarter decreased by $181 million or 8.9% year-over-year, from $2,028 million in Q1 2023 to $1,847 million in Q1 2024[31] - Operating income fell to $131 million, a decrease of $26 million or 16.6% compared to $157 million in the same quarter last year[31] - Net income for the quarter was $77 million, down from $98 million in the prior year, representing a decline of 21.4%[31] - Revenues for the three months ended May 3, 2024, were $1,847 million, a decrease of 8.9% from $2,028 million in the same period of 2023[45] - Net income for the same period was $77 million, down from $98 million, reflecting a decline of 21.4%[45] - Adjusted EBITDA was $166 million, representing 9.0% of revenues, compared to $189 million or 9.3% of revenues in the prior year[45] - Free cash flow for the three months ended May 3, 2024, was $13 million, significantly lower than $76 million in the same period of 2023[54] - Total revenue for fiscal 2024 was $7,704 million, a 3.5% increase from $7,444 million in fiscal 2023[60] - Operating income for fiscal 2024 was $741 million, up 47.9% from $501 million in fiscal 2023[60] - The total operating income margin for fiscal 2024 was 10.0%, compared to 6.5% in fiscal 2023[60] - The total non-GAAP operating income for fiscal 2024 was $634 million, with a margin of 8.5%[63] Backlog and Bookings - Net bookings for the quarter were approximately $2.6 billion, resulting in a book-to-bill ratio of 1.4[11] - The estimated backlog at the end of the quarter was approximately $23.6 billion, with $3.5 billion funded[11] - Total backlog increased to $23,564 million as of May 3, 2024, compared to $22,763 million on February 2, 2024, reflecting growth in both funded and unfunded backlog[42] - Funded backlog for Defense and Intelligence was $2,629 million, while Civilian funded backlog was $839 million, totaling $3,468 million[42] Segment Performance - The Defense and Intelligence segment reported revenues of $1,436 million, a decrease of $161 million or 10% year-over-year, while Civilian segment revenues decreased by $20 million or 5%[37][38] - The Defense and Intelligence segment generated an adjusted operating income of $107 million, while the Civilian segment contributed $34 million[48] - Defense and Intelligence segment revenue for the twelve months ended February 2, 2024, was $5,817 million, slightly down from $5,876 million in the previous year[60] - Civilian segment revenue decreased to $1,627 million in fiscal 2024 from $1,828 million in fiscal 2023, representing an 11% decline[60] Capital Management - SAIC deployed $107 million in capital during the quarter, including $81 million for share repurchases and $20 million in cash dividends[9] - Cash and cash equivalents decreased from $94 million to $49 million during the quarter[33] - Principal payments on borrowings increased significantly to $310 million from $160 million in the prior year[35] - The company provided FY25 guidance for net cash provided by operating activities between $520 million and $540 million[54] - The company expects approximately $30 million in expenditures for property, plant, and equipment in FY25[54] Strategic Initiatives - The company launched a multi-year growth strategy aimed at enhancing its portfolio and market approach[19] - Notable new contracts included a $444 million award from the U.S. Space Force for digital transformation support[12] - The company completed a business reorganization effective February 3, 2024, transitioning to five customer-facing business groups[57] - The acquisition and integration costs for the three months ended May 3, 2024, were $2 million, while restructuring and impairment costs were $2 million[48] - The company anticipates continued revenue growth in the upcoming quarters, adjusting for the impact of divestitures[38]