SAIC Presents Planned Company's Business and Financial Objectives at Investor
Senior Management Introduces Post-Spin Technical, Engineering and Enterprise
Information Technology Services and Solutions Business
NEW YORK, Sept. 11, 2013
NEW YORK, Sept. 11, 2013 /PRNewswire/ --SAIC, Inc. (NYSE: SAI) today held an
Investor Day event in New York City in which the senior leadership team of the
planned spin-off company, ScienceApplications International Corp. (SAIC),
presented its business plans and financial objectives.
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SAIC, Inc. previously announced plans to create two independent, publicly
traded companies. Upon completion of the planned spin-off transaction, the
technical, engineering and enterprise IT services business will retain the
name SAIC and trade under (NYSE: SAIC), while the government and commercial
solutions company will be named Leidos and trade under (NYSE: LDOS).
CEO-designate Tony Moraco detailed new SAIC's redesign to potential
shareholders and said that following the separation, the company will more
effectively pursue new and existing market opportunities without the
constraints of organizational conflicts of interest (OCI).
"We have transformed new SAIC to be a more streamlined organization and better
aligned with our customers' critical missions," Moraco said. "We will leverage
the full potential of our technical engineering and enterprise IT offerings
and expertise to position our enterprise for enduring success. We are a
leading technology integrator providing full lifecycle services and solutions
to the markets we serve."
Scale and Contract Diversity Deliver Value
With approximately $4 billion in revenues and 14,000 employees, SAIC will have
a balanced distribution of revenue sources, more than 1,500 contracts and task
orders, and will be a prime contractor on 91 percent of its contracts.
Following the separation, SAIC will have a capital structure with more than
$225 million in cash and $500 million in debt with a five-year term as well as
access to a five-year, $200 million revolving credit facility.
"Through operating income improvement and strong, predictable cash flow
generation, we intend to execute an effective and disciplined capital
deployment strategy to deploy excess cash, all designed to maximize
shareholder value," said CFO-designate John Hartley.
Growth Opportunities Unconstrained by OCI
Without the constraints of OCI, SAIC will be able to access an estimated $25
billion in new market opportunities, for a total addressable market of $185
"SAIC will sustain and protect its current customer base and drive organic
growth by expanding offerings to existing customers and growing in adjacent
markets," said Nazzic Keene, president of the Enterprise IT Sector.
"The company's new operating model is organized to sell and deliver SAIC's
full enterprise capabilities through one team, combined with a new focus on
services and solutions, and targeted investments," Keene continued. "This
separation transaction has given us a unique opportunity to optimize SAIC to
better serve our customers in a more efficient organizational structure that
we expect will yield improved financial results for our shareholders and
opportunities for our employees."
Learn more about new SAIC
oDownload your copy of the presentation here
oListen to the webcast here
Contact: Investor Relations: Paul Levi, 703.676.2283, firstname.lastname@example.org,
Media Contact: Lucy Reilly Fitch, (703) 676-6340, email@example.com
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