CACI International announced the results of its first fiscal quarter that ended Sept. 30, showing revenue growth of 16.9% and organic growth of 5.6%, thanks to strong contracts awards, cash flow from operations and three recent acquisitions.
Revenue for the first quarter of FY20 increased compared to the first quarter of FY2019, driven by acquired and organic revenue growth. Operating income was impacted by strong results last year because of product sales timing and one-time benefits, and a decrease in net income is attributed to higher interest expense and a higher effective tax rate.
Plus, the company’s first quarter contract awards totaling $4 billion were a 58% increase over the first quarter of FY19, and 60% of contract award value is for new business.
These awards include two 5-year task orders with the U.S. Army totaling more than $1.3 billion; a 5-year $438 million mission expertise task order with the U.S. Air Force; a 5-year single-award indefinite delivery/indefinite quantity enterprise expertise contract with the Interior Department’s Business Integration Office; and a 5-year single-award IDIQ enterprise technology contract with the U.S. Navy’s Program Executive Office for Enterprise Information Systems.
These contracts, plus additional contract wins with the Navy, Army and Defense Intelligence Agency, include work supporting military intelligence operations, weapons and integrated combat systems assessments, software engineering and technical services, post-deployment support, intelligence operations and analytic support.
CACI also closed on three acquisitions in October, adding capabilities in mission expertise and technology areas of its business. The company purchased Next Century Corp., Linndustries Shielding Specialties and Deep3.
The aggregate purchase price was $105 million, and the acquisitions are expected to add about $50 million of revenue and $3 million of net income to the remainder of CACI’s fiscal year.
CACI also recently expanded its presence in the Texas Technology Corridor with the opening of a new office in Port San Antonio in September to collaborate with the U.S. Air Force. The company plans to create new space in the Capital Factory technology incubation hub in Austin.
“Our first quarter performance was a great start to Fiscal Year 2020,” said John Mengucci, CACI president and CEO. “We grew revenue, generated strong profitability and cash flow, and won $4 billion of contract awards. Subsequent to the quarter, we closed on three strategic acquisitions adding key capabilities in the mission expertise and technology areas of our business.”