CACI Reports Results for its Fiscal 2013 Second Quarter and Revises Fiscal Year 2013 Guidance

  CACI Reports Results for its Fiscal 2013 Second Quarter and Revises Fiscal
  Year 2013 Guidance

      Diluted EPS increased 24.5 percent over FY12 adjusted diluted EPS

        Net income increased 7.4 percent over FY12 adjusted net income

        Contract funding orders increased 3.4 percent for the quarter

Business Wire

ARLINGTON, Va. -- January 30, 2013

CACI International Inc (NYSE: CACI), a leading information solutions and
services provider to the federal government, announced results today for its
second fiscal quarter ended December 31, 2012:

  *Revenue of $931.6 million
  *Operating income of $69.6 million
  *Net income attributable to CACI of $39.7 million
  *Diluted earnings per share of $1.69

CEO Commentary and Outlook

Dan Allen, CACI’s President and CEO, said, “CACI’s second quarter results
demonstrate continued progress in executing our market-driven strategy. During
the quarter, we delivered solid net income, secured a record level of second
quarter funding, maintained a strong backlog position, and expanded our new
business pipeline of opportunities. We experienced growth in four of our
addressable markets. We also completed two acquisitions this quarter that
expand our presence in the Healthcare market. Emergint Technologies and IDL
Solutions bring new customers and increase our capabilities in the federal
civilian healthcare and health insurance areas with more cost-effective
business processes, enhanced customer service, and improved patient care.

“We began our Fiscal Year 2013 (FY13) with a planning assumption that the
government would be operating under a continuing resolution (CR) for our
entire fiscal year. In the back half of our second quarter, we began to see
our customers take a more cautious approach to spending as well as awarding
contracts, driven by the uncertainties around sequestration. As we look to the
second half of our fiscal year, we expect our customers’ behavior to continue
with fewer contract awards than planned. Given these conditions, we are
revising our guidance for the remainder of this fiscal year.

“We remain confident in our strategy to focus on the government’s high
priority missions. We continue to see new business opportunities and our
pipeline remains strong. Our strategic mergers and acquisitions program is
focusing on markets in which we see the potential for growth. We are confident
that our ability to execute on a disciplined, balanced strategy will enable us
to identify competitive positions in our large addressable market that will
deliver long-term value to our shareholders.”

Second Quarter Comparisons

When analyzing our performance, we believe better insight and a more
meaningful comparison of our FY13 results with those of Fiscal Year 2012
(FY12) can be made by adjusting for three material one-time items that
positively impacted our results last year. The one-time item that impacted our
second quarter FY12 results, which we discussed when we released both our
second quarter FY12 results and our FY13 annual guidance, is
greater-than-expected profitability on a large fixed-price contract that
generated $4.1 million in additional net income in the second quarter of FY12
and $7.1 million during the full year of FY12.

Results for the second quarter of FY13 compared with results for the second
quarter of FY12, excluding the item described above, are shown below:

                                                             
                                                 Q2, FY12
(in millions except per share data)  Q2, FY13  As Adjusted    % Change
                                                 (see page 13)
Revenue                              $931.6    $973.2         -4.3%
Operating income                     $69.6     $67.9          2.5%
Net income attributable to CACI      $39.7     $36.9          7.4%
Diluted earnings per share           $1.69     $1.35          24.5%

Revenue decreased 4.3 percent from revenue for the second quarter of FY12 due
to anticipated lower other direct costs pass-throughs in C4ISR and
Intelligence as a result of the draw down in Afghanistan. We experienced
growth in four of our markets, with strong growth in Integrated Security
Solutions and Investigation and Litigation Support. Operating income increased
primarily as a result of a 5.1 percent growth in direct labor and cost
control. Net income attributable to CACI in the second quarter of FY13 was
$39.7 million, or $1.69 diluted earnings per share, an increase of 7.4 percent
over adjusted net income attributable to CACI of $36.9 million, or $1.35
adjusted diluted earnings per share, for the same period in FY12. The larger
increase in diluted earnings per share was due to share repurchase activity in
FY12. Net cash provided by operations in the quarter was $23.8 million. (See
Reconciliation of Revenue, Operating Income, Net Income, and Diluted Earnings
Per Share to Adjusted Amounts on page 13.)

For a comparison of our FY13 results to FY12 results reported in accordance
with generally accepted accounting principles (GAAP), see the income statement
on page 7 of this release.

Additional Financial Metrics

                                                       
                                                                 
                                             Q2, FY13  Q2, FY12    % Change
                                                          As Adjusted
Earnings before interest, taxes,
depreciation and amortization (EBITDA),       $83.5     $82.7       1.0%
a non-GAAP measure (in millions)
Diluted adjusted earnings per share, a        $2.22     $1.85       20.1%
non-GAAP measure
Days sales outstanding                        59        61          

Second Quarter Awards and Contract Funding Orders

During the second quarter, which is a seasonal period of lower levels of
contracting activity, we experienced the effects of our clients operating
under a continuing resolution (CR) and the threat of sequestration. As a
result, contract awards for the quarter were $512 million. Awards were
received in all ten of our markets, led by Business Systems, C4ISR, Enterprise
IT, Integrated Security Solutions, and Intelligence. FY13 year-to-date awards
totaled $2.3 billion, led by Business Systems, C4ISR, Intelligence,
Investigation and Litigation Support, and Logistics and Material Readiness.

Contract funding orders in the second quarter were $625 million, and $2.0
billion year-to-date. Our total backlog at December 31, 2012 was $7.6 billion.
Funded backlog at December 31, 2012 was $2.1 billion.

During the quarter we continued to expand our inventory of indefinite
delivery, indefinite quantity (IDIQ) contract vehicles by being awarded prime
positions on new multiple and single award contracts, bringing our combined
total to over 160 of these vehicles. IDIQ contract vehicles support our growth
plans across our ten markets and provide us the flexibility to deliver on our
customers’ mission-critical requirements. Awards during the quarter included:

  *A $10 billion, five-year multiple-award to develop, field, and sustain
    turnkey telecommunications solutions on the U.S. Army Global Tactical
    Advanced Communications System contract. This is new work for both the
    Department of Defense (DoD) and civilian agencies that expands our strong
    presence in the C4ISR market.
  *A $5.6 billion, five-year multiple-award contract supporting the Defense
    Intelligence Agency’s Solutions for Intelligence Analysis (SIA) II
    program. This is follow-on work to the original SIA program awarded to us
    in 2008. This work further expands our business in the Intelligence market
    in the critical area of analysis.
  *Within our C4ISR market, an $899 million, five-year multiple-award to
    support the U.S. Navy’s SPAWAR Battlespace Awareness program. This new
    work further expands our presence in the C4ISR market.

Other Second Quarter Highlights

  *We completed the acquisition of Emergint Technologies, Inc., a premier
    provider of emerging technology solutions, including health data
    integration and analysis and data and records management, that are focused
    on the data driven needs of national health organizations. Emergint brings
    to CACI relationships with key health-focused agencies, including the
    Centers for Disease Control and Prevention, the National Institutes of
    Health, and the U.S. Food and Drug Administration. This acquisition builds
    upon our healthcare IT capabilities and expands our presence in the
    growing healthcare market.
  *We also completed the acquisition of IDL Solutions, Inc., a leading
    provider of information solutions, applications, data analytics and
    mission-critical systems support to healthcare clients and other civilian
    agencies. The company brings us relationships with the Centers for
    Medicare and Medicaid Services and the Food and Drug Administration. IDL
    complements our acquisition of Emergint Technologies and further expands
    our presence in support of affordable healthcare and the federal health
    insurance area.

Second Quarter Recognition

  *CACI’s recruiting organization earned significant recognition for our
    industry-leading programs recruiting, hiring, and developing career
    opportunities for military veterans:

       *We won Best Industry Veteran Hiring Program from the Coalition for
         Government Procurement, a national trade association whose members
         account for 70 percent of commercial services and products sold
         through GSA schedules.
       *We were selected for the Top 100 Companies Recruiting Veterans list
         by U.S. Veterans magazine, a print and online publication focusing on
         minority, disabled, and transitioning veterans.

  *CACI was listed as the 18^th largest public company in revenue in the
    Washington Post’s Top 200 local companies, advancing from 20^th last year.

Six Months Results

The following are our results for the first six months of our FY13:

  *Revenue of $1.86 billion
  *Operating income of $134.3 million
  *Net income attributable to CACI of $75.4 million
  *Diluted earnings per share of $3.17

Six Months Comparison

As mentioned on page 1 of this release, we believe better insight and a more
meaningful comparison of our FY13 results with those of FY12 can be made by
adjusting for three material one-time items that positively impacted our
results last year. These items, which we discussed when we released both our
six months FY12 results and our FY13 annual guidance, are:

  *A large commercial product sale that generated $12.0 million of revenue
    and $6.1 million of net income in the first quarter of FY12
  *Greater-than-expected profitability on a large fixed-price contract that
    generated $4.7 million in additional net income in the first six months of
    FY12 and $7.1 million during the full year of FY12
  *A $0.4 million increase in net income in the first quarter of FY12
    associated with a reduction in the fair value of contingent consideration
    related to a prior year acquisition

Results for the first six months of FY13 compared with results for the first
six months of FY12, excluding the items described above, are shown below:

                                                                  
                                                      Six Months,
(in millions except per share     Six Months, FY13  FY12           % Change
data)                                                 As Adjusted
                                                      (see page 13)
Revenue                           $1,862.9          $1,885.6       -1.2%
Operating income                  $134.3            $132.0         1.8%
Net income attributable to CACI   $75.4             $72.0          4.6%
Diluted earnings per share        $3.17             $2.52          25.8%

Revenue decreased 1.2 percent from adjusted revenue for the first half of FY12
due to anticipated lower other direct costs pass-throughs in C4ISR and
Intelligence as a result of the draw down in Afghanistan. We experienced
growth in five of our markets, with strong growth in Business Systems,
Healthcare, and Investigation and Litigation Support. Operating income
increased primarily as a result of a 5.8 percent growth in direct labor. Net
income attributable to CACI in the first six months of FY13 was $75.4 million,
or $3.17 diluted earnings per share, an increase of 4.6 percent over adjusted
net income attributable to CACI of $72.0 million, or $2.52 adjusted diluted
earnings per share, for the same period in FY12. The larger increase in
diluted earnings per share was due to two share repurchase programs largely
executed in FY12. Net cash provided by operations in the first half of FY13
was $91.5 million, an increase of 7.3 percent over the year earlier period and
a record for the first half. (See Reconciliation of Revenue, Operating Income,
Net Income, and Diluted Earnings Per Share to Adjusted Amounts on page 13.)

For a comparison of our FY13 results to FY12 results reported in accordance
with GAAP, see the income statement on page 7 of this release.

Additional Financial Metrics

                                                                  
                                              Six       Six Months,
                                            Months,  FY12 As      % Change
                                              FY13      Adjusted
Earnings before interest, taxes,
depreciation and amortization (EBITDA),      $161.6   $160.6       0.7%
a non-GAAP measure (in millions)
Diluted adjusted earnings per share, a       $4.19    $3.43        22.3%
non-GAAP measure

CACI Revises Its FY13 Guidance

We are revising the FY13 guidance we issued on October 31, 2012. Our previous
guidance assumed that we would be operating in a CR environment throughout our
fiscal year. During our second quarter, we saw greater than expected declines
in contracting activity and spending levels significantly below those of a
typical CR environment. As we look to the second half of our FY13, we expect
this pattern of behavior to continue. The table below summarizes our FY13
guidance ranges:

(In millions except for tax rate and earnings per share)  FY 2013
                                                           Guidance
Revenue                                                   $3,700 - $3,900
Net income attributable to CACI                           $157 - $163
Diluted earnings per share                                $6.54 - $6.79

We are now assuming a lower effective tax rate of 38 percent as a result of
non-taxable gains in our deferred compensation plan and certain tax credits.
We are also reducing the number of diluted weighted average shares to 24.0
million for FY13, mainly due to equity award exercises and forfeitures. This
information represents our views as of January 30, 2013.

Conference Call Information

We have scheduled a conference call for 8:30 AM Eastern Time Thursday, January
31, 2013 during which members of our senior management team will be making a
brief presentation focusing on second quarter results and operating trends
followed by a question-and-answer session. You can listen to the conference
call and view the accompanying exhibits over the Internet by logging on to our
homepage, www.caci.com, at the scheduled time, or you may dial 877-303-9143
and enter the confirmation code 78657433. A replay of the call will also be
available over the Internet beginning at 1:00 PM Eastern Time Thursday,
January 31, 2013 and can be accessed through our homepage (www.caci.com) by
clicking on the CACI Investor Info button.

CACI provides information solutions and services in support of national
security missions and government transformation for Intelligence, Defense, and
Federal Civilian clients. A member of the Fortune 1000 Largest Companies and
the Russell 2000 Index, CACI provides dynamic careers for approximately 15,500
employees working in over 120 offices worldwide. Visit www.caci.com.

There are statements made herein which do not address historical facts and,
therefore, could be interpreted to be forward-looking statements as that term
is defined in the Private Securities Litigation Reform Act of 1995. Such
statements are subject to factors that could cause actual results to differ
materially from anticipated results. The factors that could cause actual
results to differ materially from those anticipated include, but are not
limited to, the following: regional and national economic conditions in the
United States and globally (including the impact of uncertainty regarding U.S.
debt limits and actions taken related thereto); terrorist activities or war;
changes in interest rates; currency fluctuations; significant fluctuations in
the equity markets; changes in our effective tax rate; failure to achieve
contract awards in connection with re-competes for present business and/or
competition for new business; the risks and uncertainties associated with
client interest in and purchases of new products and/or services; continued
funding of U.S. government or other public sector projects, based on a change
in spending patterns, implementation of spending cuts (sequestration) under
the Budget Control Act of 2011, changes in budgetary priorities or in the
event of a priority need for funds, such as homeland security or the war on
terrorism; government contract procurement (such as bid protest, small
business set asides, loss of work due to organizational conflicts of interest,
etc.) and termination risks; the results of government investigations into
allegations of improper actions related to the provision of services in
support of U.S. military operations in Iraq; the results of government audits
and reviews conducted by the Defense Contract Audit Agency, the Defense
Contract Management Agency, or other governmental entities with cognizant
oversight; individual business decisions of our clients; paradigm shifts in
technology; competitive factors such as pricing pressures and/or competition
to hire and retain employees (particularly those with security clearances);
market speculation regarding our continued independence; material changes in
laws or regulations applicable to our businesses, particularly in connection
with (i) government contracts for services, (ii) outsourcing of activities
that have been performed by the government, and (iii) competition for task
orders under Government Wide Acquisition Contracts (GWACs) and/or schedule
contracts with the General Services Administration; the ability to
successfully integrate the operations of our recent and any future
acquisitions; our own ability to achieve the objectives of near term or long
range business plans; and other risks described in our Securities and Exchange
Commission filings.

CACI-Financial

Selected Financial Data
                                                                                 
CACI
International
Inc
Condensed Consolidated Statements of Operations (Unaudited)
(Amounts in thousands, except per share
amounts)
                                                                                         
                   Quarter Ended                         Six Months Ended
                   12/31/2012    12/31/2011    %         12/31/2012      12/31/2011      %
                                               Change                                    Change
Revenue            $ 931,627    $ 973,243    -4.3  %   $ 1,862,863    $ 1,897,638    -1.8  %
Costs of revenue
  Direct costs       639,649       679,398     -5.9  %     1,285,286       1,314,329     -2.2  %
  Indirect costs
  and selling        209,068       204,541     2.2   %     416,691         404,823       2.9   %
  expenses
  Depreciation
  and               13,328      14,598     -8.7  %    26,567        28,126       -5.5  %
  amortization
Total costs of      862,045     898,537    -4.1  %    1,728,544     1,747,278    -1.1  %
revenue
Operating income     69,582        74,706      -6.9  %     134,319         150,360       -10.7 %
Interest expense    6,231       6,538      -4.7  %    13,013        12,138       7.2   %
and other, net
Income before        63,351        68,168      -7.1  %     121,306         138,222       -12.2 %
income taxes
Income taxes        23,371      26,888     -13.1 %    45,336        54,829       -17.3 %
Net income
including
portion
attributable
  to
  noncontrolling
  interest in
  earnings
  of joint           39,980        41,280      -3.1  %     75,970          83,393        -8.9  %
  venture
Noncontrolling
interest in
earnings
  of joint          (304    )    (219    )              (586      )    (192      )
  venture
Net income
attributable to    $ 39,676     $ 41,061     -3.4  %   $ 75,384       $ 83,201       -9.4  %
CACI
                                                                                         
Basic earnings     $ 1.74        $ 1.55        11.8  %   $ 3.29          $ 3.01          9.3   %
per share
Diluted earnings   $ 1.69        $ 1.51        12.0  %   $ 3.17          $ 2.91          8.9   %
per share
                                                                                         
Weighted average
shares used in
per share
computations:
  Basic              22,852        26,450                  22,942          27,683
  Diluted            23,537        27,270                  23,758          28,556
                                                                                         
Statement of Operations Data (Unaudited)
                   Quarter Ended                         Six Months Ended
                   12/31/2012    12/31/2011    %         12/31/2012      12/31/2011      %
                                               Change                                    Change
Operating income     7.5     %     7.7     %               7.2       %     7.9       %
margin
Tax rate             37.1    %     39.6    %               37.6      %     39.7      %
Net income           4.3     %     4.2     %               4.0       %     4.4       %
margin
                                                                                         
Adjusted EBITDA*   $ 83,499      $ 82,682      1.0   %   $ 161,619       $ 160,570       0.7   %
Adjusted EBITDA      9.0     %     8.5     %               8.7       %     8.5       %
Margin
                                                                                         
Adjusted net       $ 52,145      $ 50,319      3.6   %   $ 99,558        $ 97,862        1.7   %
income*
Diluted adjusted
earnings per       $ 2.22        $ 1.85        20.1  %   $ 4.19          $ 3.43          22.3  %
share
                                                                                         
  *See Reconciliation of Net Income to Adjusted Earnings before Interest, Taxes, Depreciation
  and Amortization and to Adjusted
  Net Income on page 12.


Selected Financial Data (Continued)
                                                            
CACI International Inc
Condensed Consolidated Balance Sheets (Unaudited)
(Amounts in thousands)


                                                 12/31/2012        6/30/2012
ASSETS:
Current assets
Cash and cash equivalents                        $ 37,509          $ 15,740
Accounts receivable, net                           609,969           628,842
Prepaid expenses and other current assets         51,857           41,210
Total current assets                               699,335           685,792
                                                                     
Goodwill and intangible assets, net                1,601,337         1,521,769
Property and equipment, net                        70,393            67,449
Other long-term assets                            128,501          113,212
Total assets                                     $ 2,499,566       $ 2,388,222
                                                                     
LIABILITIES AND SHAREHOLDERS' EQUITY:
Current liabilities
Current portion of long-term debt                $ 7,500           $ 7,500
Accounts payable                                   132,210           149,549
Accrued compensation and benefits                  161,669           180,871
Other accrued expenses and current                134,947          147,009
liabilities
Total current liabilities                          436,326           484,929
                                                                     
Long-term debt, net of current portion             695,237           527,307
Other long-term liabilities                       239,592          211,541
Total liabilities                                 1,371,155        1,223,777
                                                                     
Shareholders' equity                              1,128,411        1,164,445
Total liabilities and shareholders' equity       $ 2,499,566       $ 2,388,222
                                                                     


Selected Financial Data (Continued)
                                                           
CACI International Inc
Condensed Consolidated Statements of Cash Flows (Unaudited)
(Amounts in thousands)

                                                                             
                                               Six Months Ended
                                               12/31/2012         12/31/2011
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income including portion
attributable to noncontrolling interest        $ 75,970           $ 83,393
in earnings of joint venture
Reconciliation of net income to net cash
provided by operating activities:
Depreciation and amortization                    26,567             28,126
Non-cash interest expense                        6,325              5,910
Amortization of deferred financing costs         1,012              1,248
Stock-based compensation expense                 5,901              7,243
Provision for deferred income taxes              9,866              14,162
Distribution of earnings from                    3,545              -
unconsolidated joint venture
Equity in earnings of unconsolidated             (1,319   )         (661     )
joint venture
Changes in operating assets and
liabilities, net of effect of business
acquisitions
Accounts receivable, net                         39,114             (69,232  )
Prepaid expenses and other assets                (14,749  )         (1,385   )
Accounts payable and accrued expenses            (26,794  )         47,861
Accrued compensation and benefits                (32,219  )         (24,263  )
Income taxes receivable and payable              (13,940  )         (10,091  )
Supplemental retirement savings plan
obligations and other long term                 12,267           3,030    
liabilities
Net cash provided by operating                  91,546           85,341   
activities
                                                                             
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures                             (10,032  )         (7,138   )
Purchases of businesses, net of cash             (100,062 )         (171,811 )
acquired
Investment in unconsolidated joint               (1,421   )         -
venture
Other                                           (1,012   )        (765     )
Net cash used in investing activities           (112,527 )        (179,714 )
                                                                             
CASH FLOWS FROM FINANCING ACTIVITIES:
Net borrowings under credit facilities           160,638            180,001
Payment of contingent consideration              -                  (20,255  )
Proceeds from employee stock purchase            2,495              2,205
plans
Proceeds from exercise of stock options          4,742              2,700
Repurchases of common stock                      (125,411 )         (209,680 )
Other                                           (120     )        (695     )
Net cash provided by (used in) financing        42,344           (45,724  )
activities
Effect of exchange rate changes on cash         406              (675     )
and cash equivalents
Net increase (decrease) in cash and cash         21,769             (140,772 )
equivalents
Cash and cash equivalents, beginning of         15,740           164,817  
period
Cash and cash equivalents, end of period       $ 37,509          $ 24,045   
                                                                             

                                                                       
Selected Financial Data (Continued)
                                                                                
Revenue by Customer Type (Unaudited)
                  Quarter Ended                                         
(dollars in       12/31/2012                12/31/2011                $ Change       %
thousands)                                                                                 Change
Department of     $ 703,479       75.5  %     $ 768,667       79.0  %     $ (65,188  )     -8.5  %
Defense
Federal
Civilian            175,773       18.9  %       159,132       16.3  %       16,641         10.5  %
Agencies
Commercial          48,398        5.2   %       41,723        4.3   %       6,675          16.0  %
State and
Local              3,977       0.4   %    3,721       0.4   %    256         6.9   %
Governments
Total             $ 931,627     100.0 %   $ 973,243     100.0 %   $ (41,616  )   -4.3  %
                                                                                           
                  Six Months Ended                                      
(dollars in       12/31/2012                12/31/2011                $ Change       %
thousands)                                                                                 Change
Department of     $ 1,408,540     75.6  %     $ 1,501,934     79.2  %     $ (93,394  )     -6.2  %
Defense
Federal
Civilian            350,427       18.8  %       293,141       15.4  %       57,286         19.5  %
Agencies
Commercial          96,599        5.2   %       94,705        5.0   %       1,894          2.0   %
State and
Local              7,297       0.4   %    7,858       0.4   %    (561     )   -7.1  %
Governments
Total             $ 1,862,863   100.0 %   $ 1,897,638   100.0 %   $ (34,775  )   -1.8  %
                                                                                           
Revenue by Contract Type (Unaudited)
                  Quarter Ended                                         
(dollars in       12/31/2012                12/31/2011                $ Change       %
thousands)                                                                                 Change
Cost              $ 454,564       48.8  %     $ 433,341       44.5  %     $ 21,223         4.9   %
reimbursable
Fixed price         259,505       27.9  %       256,011       26.3  %       3,494          1.4   %
Time and           217,558     23.3  %    283,891     29.2  %    (66,333  )   -23.4 %
materials
Total             $ 931,627     100.0 %   $ 973,243     100.0 %   $ (41,616  )   -4.3  %
                                                                                           
                  Six Months Ended                                                 
(dollars in       12/31/2012                12/31/2011                $ Change       %
thousands)                                                                                 Change
Cost              $ 891,371       47.8  %     $ 807,954       42.6  %     $ 83,417         10.3  %
reimbursable
Fixed price         523,442       28.1  %       513,190       27.0  %       10,252         2.0   %
Time and           448,050     24.1  %    576,494     30.4  %    (128,444 )   -22.3 %
materials
Total             $ 1,862,863   100.0 %   $ 1,897,638   100.0 %   $ (34,775  )   -1.8  %
                                                                                           
Revenue Received as a Prime versus Subcontractor (Unaudited)
                  Quarter Ended                                                       
(dollars in       12/31/2012                12/31/2011                $ Change       %
thousands)                                                                                 Change
Prime             $ 815,668       87.6  %     $ 865,332       88.9  %     $ (49,664  )     -5.7  %
Subcontractor      115,959     12.4  %    107,911     11.1  %    8,048       7.5   %
Total             $ 931,627     100.0 %   $ 973,243     100.0 %   $ (41,616  )   -4.3  %
                                                                                           
                  Six Months Ended                                                    
(dollars in       12/31/2012                12/31/2011                $ Change       %
thousands)                                                                                 Change
Prime             $ 1,639,399     88.0  %     $ 1,676,565     88.4  %     $ (37,166  )     -2.2  %
Subcontractor      223,464     12.0  %    221,073     11.6  %    2,391       1.1   %
Total             $ 1,862,863   100.0 %   $ 1,897,638   100.0 %   $ (34,775  )   -1.8  %
                                                                                                 

                                                                 
Selected Financial Data (Continued)
                        
Contract Funding Orders Received (Unaudited)
                          Quarter Ended                           
(dollars in thousands)    12/31/2012   12/31/2011   $ Change      % Change
Contract Funding Orders   $ 625,481    $ 604,671    $ 20,810     3.4   %
                          Six Months Ended                        
(dollars in thousands)    12/31/2012   12/31/2011   $ Change      % Change
Contract Funding Orders   $ 2,038,727  $ 2,208,600  $ (169,873 )  -7.7  %
                                                                     

                                                                     
Direct Costs by Category (Unaudited)
            Quarter Ended
(dollars                                                                   %
in           12/31/2012             12/31/2011             $ Change     Change
thousands)
Direct       $ 249,012     38.9  %   $ 236,851     34.9  %   $ 12,161      5.1   %
labor
Other
direct        390,637    61.1  %   442,547    65.1  %   (51,910 )  -11.7 %
costs
Total
direct       $ 639,649    100.0 %  $ 679,398    100.0 %  $ (39,749 )  -5.9  %
costs
                                                                           
             Six Months Ended
(dollars                                                                   %
in           12/31/2012             12/31/2011             $ Change     Change
thousands)
Direct       $ 501,054     39.0  %   $ 473,616     36.0  %   $ 27,438      5.8   %
labor
Other
direct        784,232    61.0  %   840,713    64.0  %   (56,481 )  -6.7  %
costs
Total
direct       $ 1,285,286  100.0 %  $ 1,314,329  100.0 %  $ (29,043 )  -2.2  %
costs
                                                                           


Reconciliation of Total Revenue Growth and Organic Revenue Growth
(Unaudited)

We are presenting organic revenue growth, on both an as reported and as
adjusted basis, to reflect the effect of acquisitions on total revenue growth.
Revenue generated from the date a business is acquired through the first
anniversary of that date is considered acquired revenue growth. All remaining
revenue growth is considered organic. We believe that this non-GAAP financial
measure provides investors with useful information to evaluate the growth rate
of our core business. This non-GAAP measure should not be considered in
isolation or as a substitute for performance measures prepared in accordance
with GAAP.


                                                                     
             Quarter Ended                     Twelve Months Ended
(dollars                               %                                    %
in           12/31/2012  12/31/2011  Change  12/31/2012   12/31/2011   Change
thousands)
Revenue,
as           $  931,627   $  973,243   -4.3 %   $ 3,739,699   $ 3,774,169   -0.9 %
reported
Less:
Acquired       25,062                      120,691                
revenue
Organic      $  906,565  $  973,243  -6.9 %  $ 3,619,008  $ 3,774,169  -4.1 %
revenue
                                                                            
             Quarter Ended                     Twelve Months Ended
(dollars                               %                                    %
in           12/31/2012  12/31/2011  Change  12/31/2012   12/31/2011*  Change
thousands)
Revenue,
as           $  931,627   $  973,243   -4.3 %   $ 3,739,699   $ 3,762,134   -0.6 %
adjusted*
Less:
Acquired       25,062                      120,691                
revenue
Organic      $  906,565  $  973,243  -6.9 %  $ 3,619,008  $ 3,762,134  -3.8 %
revenue


* Revenue for the quarter ended September 30, 2011 is adjusted. See
Reconciliation of Revenue, Operating Income, Net Income and Diluted Earnings
Per Share to Adjusted Amounts on page 13.



Selected Financial Data (Continued)
Reconciliation of Net Income to Adjusted Earnings Before Interest, Taxes,
Depreciation
and Amortization (EBITDA) and to Adjusted Net Income
(Unaudited)

The Company views EBITDA, EBITDA margin, Adjusted Net Income and Diluted
Adjusted Earnings Per Share as important indicators of performance, consistent
with the manner in which management measures and forecasts the Company’s
performance. EBITDA is a commonly used non-GAAP measure when comparing our
results with those of other companies. We believe Adjusted Net Income is a
significant driver of long-term value and is used by investors to measure our
performance. This measure in particular assists readers in further
understanding our results and trends from period-to-period by removing certain
non-cash items that do not impact the cash flow performance of our business.
We are presenting FY12 EBITDA, EBITDA margin, Adjusted Net Income and Diluted
Adjusted Earnings Per Share on an adjusted basis, to remove the impact of
three material items that positively impacted our FY12 results as we believe
these adjusted measures provide a better comparison to our ongoing, recurring
operations. Adjusted EBITDA is defined by us as GAAP net income plus net
interest expense, income taxes, and depreciation and amortization, and less
the three material items described earlier in this release. Adjusted EBITDA
margin is adjusted EBITDA divided by adjusted revenue. Adjusted Net Income is
defined by us as GAAP net income plus stock-based compensation expense,
depreciation and amortization, and amortization of financing costs, and less
the three material items described earlier in this release; net of related tax
effects computed using an assumed marginal tax rate of 39.3 percent. Diluted
Adjusted Earnings Per Share is Adjusted Net Income divided by diluted
weighted-average shares, as reported. Adjusted EBITDA and Adjusted Net Income
as defined by us may not be computed in the same manner as similarly titled
measures used by other companies. These non-GAAP measures should not be
considered in isolation or as a substitute for performance measures prepared
in accordance with GAAP.


                                                                              
               Quarter Ended                        Six Months Ended
(dollars in    12/31/2012   12/31/2011   %        12/31/2012     12/31/2011     %
thousands)                                 Change                                    Change
Net income
attributable   $ 39,676      $ 41,061      -3.4  %   $ 75,384        $ 83,201        -9.4  %
to CACI, as
reported
Plus:
Income taxes     23,371        26,888      -13.1 %     45,336          54,829        -17.3 %
Interest
income and       7,124         6,935       2.7   %     14,332          12,799        12.0  %
expense, net
Depreciation
and              13,328        14,598      -8.7  %     26,567          28,126        -5.5  %
amortization
Less:
Product sale     -             -                       -               (10,093   )
adjustment
Fixed price
contract         -             (6,800  )               -               (7,700    )
adjustment
Earn-out        -          -                  -            (592      )  
adjustment
Adjusted       $ 83,499    $ 82,682    1.0   %  $ 161,619     $ 160,570     0.7   %
EBITDA
                                                                                     
               Quarter Ended                        Six Months Ended
(dollars in    12/31/2012   12/31/2011   %        12/31/2012     12/31/2011     %
thousands)                                 Change                                    Change
Revenue, as    $ 931,627     $ 973,243     -4.3  %   $ 1,862,863     $ 1,885,603     -1.2  %
adjusted
Adjusted       $ 83,499    $ 82,682    1.0   %  $ 161,619     $ 160,570     0.7   %
EBITDA
Adjusted
EBITDA          9.0     %   8.5     %           8.7       %   8.5       %  
margin
                                                                                     
               Quarter Ended                        Six Months Ended
(dollars in    12/31/2012   12/31/2011   %        12/31/2012     12/31/2011     %
thousands)                                 Change                                    Change
Net income
attributable   $ 39,676      $ 41,061      -3.4  %   $ 75,384        $ 83,201        -9.4  %
to CACI, as
reported
Plus:
Stock-based      3,501         4,031       -13.1 %     5,901           7,243         -18.5 %
compensation
Depreciation
and              13,328        14,598      -8.7  %     26,567          28,126        -5.5  %
amortization
Amortization
of financing     518           439         18.0  %     1,012           1,248         -18.9 %
costs
Non-cash
interest         3,185         2,976       7.0   %     6,325           5,910         7.0   %
expense
Less:
Product sale     -             -                       -               (10,093   )
adjustment
Fixed price
contract         -             (6,800  )               -               (7,700    )
adjustment
Earn-out         -             -                       -               (592      )
adjustment
Related tax     (8,063  )   (5,986  )  34.7  %   (15,631   )   (9,481    )  64.9  %
effect
Adjusted net   $ 52,145    $ 50,319    3.6   %  $ 99,558      $ 97,862      1.7   %
income
                                                                                     
               Quarter Ended                        Six Months Ended
(shares in     12/31/2012   12/31/2011   %        12/31/2012     12/31/2011     %
thousands)                                 Change                                    Change
Diluted
weighted
average          23,537        27,270                  23,758          28,556
shares, as
reported
Diluted
earnings per   $ 1.69      $ 1.51      12.0  %  $ 3.17        $ 2.91        8.9   %
share, as
reported
Diluted
adjusted       $ 2.22      $ 1.85      20.1  %  $ 4.19        $ 3.43        22.3  %
earnings per
share
                                                                                     


Selected Financial Data (continued)

Reconciliation of Revenue, Operating Income, Net Income and Diluted Earnings
Per Share
to Adjusted Amounts
(Unaudited)

As described earlier in this release, the Company is presenting adjusted
Revenue, Operating Income, Net Income and Diluted Earnings per Share to
present results excluding the impact of three material items recorded during
the fiscal year ended June 30, 2012. During the second quarter of FY12, only
the fixed price contract adjustment impacted the income statement, as follows:
$6.8 million reduction of direct costs. These items were recorded in the
income statement for the first six months of FY12, as follows: product sale --
$12.0 million of revenue and $1.9 million of indirect costs and selling
expenses; fixed price contract adjustment-- $7.7 million reduction of direct
costs; and earn-out adjustment -- $0.6 million reduction in indirect costs and
selling expenses. The Company believes that presenting the key measures of
Revenue, Operating Income, Net Income, and Diluted Earnings per Share without
the impact of these material items recorded in FY12 provides readers a better
comparison to our ongoing, recurring operations. These non-GAAP measures
should not be considered in isolation or as a substitute for performance
measures prepared in accordance with GAAP.


                                                                         
               Quarter Ended                      Six Months Ended
(dollars in    12/31/2012  12/31/2011   %       12/31/2012   12/31/2011     %
thousands)                                Change                                 Change
Revenue, as    $  931,627   $ 973,243     -4.3 %   $ 1,862,863   $ 1,897,638     -1.8  %
reported
Less:
Product sale     -         -                 -           (12,035   )  
adjustment
Revenue, as    $  931,627  $ 973,243   -4.3 %  $ 1,862,863  $ 1,885,603   -1.2  %
adjusted
                                                                                 
               Quarter Ended                      Six Months Ended
(dollars in    12/31/2012  12/31/2011   %       12/31/2012   12/31/2011     %
thousands)                                Change                                 Change
Operating
income, as     $  69,582    $ 74,706      -6.9 %   $ 134,319     $ 150,360       -10.7 %
reported
Less:
Product sale      -           -                      -             (10,093   )
adjustment
Fixed price
contract          -           (6,800  )              -             (7,700    )
adjustment
Earn-out         -         -                 -           (592      )  
adjustment
Operating
income, as     $  69,582   $ 67,906    2.5  %  $ 134,319    $ 131,975     1.8   %
adjusted
                                                                                 
               Quarter Ended                      Six Months Ended
(dollars in    12/31/2012  12/31/2011   %       12/31/2012   12/31/2011     %
thousands)                                Change                                 Change
Net income
attributable   $  39,676    $ 41,061      -3.4 %   $ 75,384      $ 83,201        -9.4  %
to CACI, as
reported
Less:
Product sale      -           -                      -             (10,093   )
adjustment
Fixed price
contract          -           (6,800  )              -             (7,700    )
adjustment
Earn-out          -           -                      -             (592      )
adjustment
Plus:
Related tax      -         2,672             -           7,225       
effect*
Net income,    $  39,676   $ 36,933    7.4  %  $ 75,384     $ 72,041      4.6   %
as adjusted
                                                                                 
               Quarter Ended                      Six Months Ended
(shares in     12/31/2012  12/31/2011   %       12/31/2012   12/31/2011     %
thousands)                                Change                                 Change
Diluted
weighted
average           23,537      27,270                 23,758        28,556
shares, as
reported
Diluted
earnings per   $  1.69     $ 1.51      12.0 %  $ 3.17       $ 2.91        8.9   %
share, as
reported
Diluted
earnings per   $  1.69     $ 1.35      24.5 %  $ 3.17       $ 2.52        25.8  %
share, as
adjusted
                                                                                 
* Computed using an assumed marginal tax rate of 39.3 percent for the period ended
12/31/2011.


Contact:

CACI International Inc
Corporate Communications and Media:
Jody Brown, Executive Vice President,
Corporate Communications
703-841-7801
jbrown@caci.com
or
Investor Relations:
David Dragics, Senior Vice President,
Investor Relations
866-606-3471
ddragics@caci.com
 
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