Mercury Systems(US:MRCY)2021-08-10 20:05Company Overview - Mercury Systems operates at the intersection of high tech and defense, serving defense primes and critical infrastructure providers[6] - The company's goal is to provide all processing solutions on every system requiring uncompromised computing[6] - Mercury Systems has a strong presence with deployment on over 300 programs[6] Financial Performance - FY21 Revenue reached $924 million, demonstrating a 28% Compound Annual Growth Rate (CAGR) from FY16-FY21[9] - FY21 Adjusted EBITDA was $202 million, resulting in a 22% margin[9] - The company experienced approximately 94% average organic growth from FY16-FY21[9] Strategic Initiatives - Mercury Systems is implementing a transformational business model, investing 4-5x the defense industry average in Research & Development (R&D)[9, 12] - The company is benefiting from outsourcing, supply chain delayering, and "re-shoring"[12] - 1MPACT is a 3-year effort to achieve full growth and EBITDA potential, expecting $30M-$50M incremental adjusted EBITDA by FY25[13] Growth Strategies - The company aims for high-single to low-double digit organic growth through alignment with DoD priorities, increased outsourcing, program content expansion, and increased market share[14] - Strategic Mergers and Acquisitions (M&A) supplement growth, with 13 transactions completed since FY14[9, 14]