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CACI International

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FY2018 Annual Report · CACI International
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I N S I G H T F U L  Breakthroughs.  OU T S TA N D I N G  Performance.

2 0 1 8  

  A N N U A L  

  R E P O R T

I N S I G H T F U L   Breakthroughs

| Our Culture  
is what makes  
us unique.

IDEAS That Inspire.

TECHNOLOGIES That Matter.

EVER VIGILANT.

CACI’s unwavering commitment to our customers’ missions has led to insightful break-
throughs and outstanding performance, setting the stage for a bright future of sustained 
growth. For more than 56 years, CACI has delivered solutions and services that protect 
our nation’s interests and transform government operations. As we continue to attract new 
customers and advance the state of technology, we remain grounded in our foundational 
culture of ethics, integrity, and good character.

Our strategy to win new business, deliver operational excellence, and deploy our capital for 
long-term growth opportunities has set us on a path to ever greater success. We are winning 
larger, more solutions-oriented business that meets our customers’ present requirements 
and anticipates emerging needs. Our talented employees continue to demonstrate the 
highest levels of professionalism and dedication to mission, garnering frequent accolades 
from our customers.

This commitment to excellence has led to our fourth recognition as a Fortune magazine 
World’s Most Admired Company. CACI was also named a Washington Post Top Workplace 
in the greater Washington, D.C. area, and a Top Workplace in Memphis, TN; Baltimore, 
MD; and Colorado. Our support for veterans hiring has led to recognition from multiple 
sources, including a Best for Vets ranking by the Military Times. 

We continually foster an environment of mutual respect for our employees, partners, and 
customers. Our culture of innovation and good character has led us to success, and we take 
pride in upholding the highest standards of ethics and integrity. We remain ever vigilant 
in serving our customers and our nation, and look forward to continuing to provide our 
shareholders with enduring value.

CACI Executive Officers 

Front left to right: 

Dr. J.P. London, Executive Chairman and Chairman of the Board 

Kenneth Asbury, President and Chief Executive Officer

Back left to right: 

Gregory R. Bradford, President and Chief Executive, CACI Limited 

DeEtte Gray, President, U.S. Operations

John S. Mengucci, Chief Operating Officer

Thomas A. Mutryn, Executive Vice President, Chief Financial Officer, and Treasurer

O U T S TA N D I N G   Performance

F Y 1 8   F I N A N C I A L   H I G H L I G H T S

REVENUE

($M)

*
NET INCOME

($M)

DILUTED EARNINGS

*

SHAREHOLDERS’ EQUITY

*

($M)

($M)

301

11.93

2,107

4,468

4,355

3,744

3,565

3,313

1,794

1,607

1,480

1,359

164

135

126

143

6.53

5.76

5.38

5.17

14

15

16

17

18

14

15

16

17

18

14

15

16

17

18

14

15

16

17

18

| Strengthening 
Our Position in  
Fiscal Year 2018.

Income Statement Data
(in thousands, except per share data and percentages)

Year ended June 30 

Revenue 

Operating Income 

Net Income 

Diluted Earnings per Share 

Weighted-average Diluted Shares 

Balance Sheet Data 
(in thousands, except percentages)

Year ended June 30 

Total Assets 

Working Capital 

Shareholders’ Equity 

Return on Equity 

*
2018 

% Change 

2017

$4,467,860 

340,700 

301,171 

11.93 

25,255 

2.6% 

14.6% 

84.0% 

82.7%  

*
2018 

% Change 

$4,034,206 

392,210 

2,106,887 

15.4% 

3.1% 

11.1% 

17.5% 

$4,354,617

297,261

163,671

6.53

25,069 

2017

$3,911,082

353,158

1,793,721

9.6%

*	 Net	income	for	FY18	benefited	from	a	net	reduction	to	income	taxes	of	$103,273,	or	$4.09	per	diluted	share,	related	to	the	enactment	of	the	

Tax	Cuts	and	Jobs	Act	in	December	2017.

WINNING 
new business.

DRIVING 
operational  
excellence.

INVESTING 
our capital for  
future growth.

2 0 1 8   C A C I   A N N U A L   R E P O R T      |      1 

 
 
To Our Fellow 
CACI SHAREHOLDERS

Strengthening Our Position in Fiscal Year 2018. 

Our market position continued to improve in FY18, with 

another year of consistent and healthy organic revenue 

growth. We pursued and won larger, more complex work 

that expanded our customer base and solutions portfolio. 

We once again set records for revenue, net income, cash 

flow, and diluted earnings per share. We invested in critical 

technologies where our expertise is established and 

opportunities abound. We embarked on a path to drive 

further efficiencies with the opening of our Dr. J.P. (Jack) 

London Shared Services Center in Oklahoma City, OK.  

Our focus remains on the steady execution of our 

successful long-term, market-based strategy to win  

new business, drive operational excellence, and deploy  

our capital for future growth.

Dr. J.P. (Jack) London Shared Services Center in Oklahoma City, OK

2      |      2 0 1 8   C A C I   A N N U A L   R E P O R T

As we entered FY19, all forward indicators were strong. 
Our funded backlog was $2.1 billion and our total backlog 
was $11.3 billion. Almost 93 percent of our planned 
revenue for FY19 comes from contracts on which we 
currently perform. In addition, we had over $8.2 billion 
in submitted proposals under evaluation, with almost 60 
percent being new business to CACI.

Our market-based strategy continues to show results 
in terms of steady top- and bottom-line growth.  We 
are pursuing and winning larger, more solutions-based 
programs and delivering outstanding performance on 
existing contracts. Our customers are showing their appre-
ciation for the work of CACI employees, and our programs 
are achieving high marks and financial recognition for 
strong performance. 

In terms of capital deployment, mergers and acquisitions 
remain our top priority. We made strategic acquisitions 
in cyber technology and enterprise IT in FY18 and began 
FY19 with the acquisition of a Navy systems engineering 
business, which allows CACI to take a leading role in the 
long-term operations and revitalization of the nation’s 
fleet. These purchases follow the successful pattern of 
acquisitions from the past several years, in which we 
gained technical and mission expertise that helped us win a 
broader array of high-value prime contracts. By adding new 
capabilities and new customers in strategic areas of our 12 
markets, we are generating long-term revenue and predict-
able, profitable growth to deliver significant shareholder 
value in FY19 and beyond.

We purchased two companies under our United Kingdom 
(UK) operations, which had another year of record finan-
cial performance. These additions provide geographic 
information systems software, information technology 
consulting, software engineering, and data analytics. Both 
enhance our position as a market-leading provider of IT 
products and services to commercial and government 
organizations in the UK. 

The passing of legislation for the funding of the U.S. federal 
government through its 2019 fiscal year has been positive 
news for our industry, company, and customers. Current 
priorities reflect a long-term commitment to national secu-
rity and the modernization of systems and infrastructure. 
Steadier budgets allow government agencies to plan for the 
future, and CACI has the right experience and expertise to 
assist them as they make necessary changes.

To ensure steady future growth, CACI is currently investing in several 
emerging technologies, including artificial intelligence and machine 
learning,  robotic process automation, digital signals processing solutions, 
and innovative technologies within the electromagnetic spectrum. We 
continue to develop long-term industry partnerships with key commercial 
and other technology providers that enable us to win new business and 
expand our role as a systems integrator. To this end, CACI achieved a 
significant milestone with our designation as an Amazon Web Services 
Premier Consulting Partner. 

To attract new talent and retain our existing high performers, we are 
leveraging savings gained from tax reform and the efficiencies of our 
Shared Services Center to invest in upgrading benefits based on employee 
feedback and industry benchmarks. We are also investing in training and 
professional development to enable our employees to grow their careers 
within the company and differentiate our offerings to customers.

We are very proud of the outstanding performance of our dedicated 
employees, and we thank them for their integrity and commitment to our 
customers’ missions and the success of our company. We also thank you, 
our fellow shareholders, for your continued support.

Dr. J.P. (Jack) London
Executive Chairman and Chairman of  
the Board,  CACI International Inc

Kenneth Asbury
President and Chief Executive Officer,   
CACI International Inc

|

Financial 
Accomplishments 

Driving Shareholder Value

Revenue of $4.47 billion,  
2.6% greater than the  
$4.35 billion of last year.

Operating income of 
$340.7 million,  
14.6% greater than the  
$297.3 million of last year.

Net income of 
$301.2 million,  
84.0% greater than the  
$163.7 million of last year. 

Diluted earnings  
per share of $11.93,  
82.7% greater than the  
diluted earnings per share  
of $6.53 reported in Fiscal 2017.

Operating cash flow of  
$325.1 million,  
15.6% greater than the  
$281.3 million of a year ago.

Contract awards of 
$5.23 billion;  
10 consecutive quarters of 
awards greater than $1 billion.

Contract funding orders of 
$4.76 billion,
15.5% greater than the  
$4.12 billion of a year ago.

Funded backlog at fiscal  
year-end of $2.14 billion.

Total backlog at fiscal  
year-end of $11.27 billion.

2 0 1 8   C A C I   A N N U A L   R E P O R T      |      3

Pioneering National Security Solutions. 
Transforming Government.

  Dominance  

across all domains.

The proliferation of threats the United 
States faces has made the national security 
mission increasingly complex. As defense 
and intelligence leaders adapt to this 
dynamic scenario, they are in need of 
response options that span all the domains: 
land, sea, air, space, and cyberspace. 
CACI is pushing to the forefront of this 
new multi-domain paradigm, delivering 
flexible, rapid-response solutions that meet 
the needs of government customers from 
headquarters to the field.  

We have expanded our suite of counter-
unmanned aircraft systems (C-UAS) 
that protect lives and infrastructure in  
both civil and military environments. 
Our long experience in digital and foreign 
instrumentation signals processing and 
full-spectrum cyber has led to the develop-
ment of new software-defined  
electronic warfare systems to thwart 
and exploit adversarial surveillance 
and reconnaissance, cellular, radio, and 
command and control systems. Equally 
important is our expertise in bolstering 
the resiliency of these platforms and 
protecting them from attack. 

When operations tempo increases, leaders 
from the strategy room to the front lines 
must remain informed. CACI engineers  
cybersecure networks and provides 
enterprise IT operations to customers in 
a multitude of environments that reach 
across the globe. We produce and deploy 
high-quality, interoperable electronic 
communications and command and 
control systems that span satellite, audio-
visual, UHF, VHF, and radio technologies. 

|  MISSION MATTERS 
to us and our customers.

We have pioneered widely used intel-
ligence fusion solutions, as well as a full 
array of visualization and decision-
making tools that promote situational 
awareness and aid in selecting the optimal 
course of action in any domain – even 
space. Our intelligence analysts turn 
collected data into actionable products, 
using CACI’s specialized tools and 
systems, including those that leverage 
artificial intelligence capabilities, to 
speed delivery. Our launch of the CACI 
All-Source Tradecraft Academy 
ensures our professionals continuously 
access training that is relevant, timely,  
and comprehensive. 

4      |      

UAS DETECTED

  Precision Technologies  

for evolving threats.

AIR

SEA

  Amplifying Efficiency  
with next-generation  
technology.

            Welcome to CACI                                   
”CACI
INFORMATION DEPLOYED.   SOLUTIONS ADVANCED.   MISSIONS ACCOMPLISHED.
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    • | C AC I I N T ER N AT I O N A L I N C Consolidated Statements of Operations (amounts in thousands, except per share data) 2018 2017 2016 Year ended June 30 REVENUE Costs of revenue: Direct costs Indirect costs and selling expenses Depreciation and amortization Total costs of revenue Income from operations Interest expense and other, net Income before income taxes Income tax (benefit) expense Net income EARNINGS PER COMMON AND COMMON EQUIVALENT SHARE Basic: Weighted-average shares outstanding Earnings per share Diluted: Weighted-average shares outstanding Earnings per share $4,467,860 $4,354,617 $3,744,053 2,978,608 1,076,356 72,196 2,934,804 1,050,792 71,760 2,487,633 926,918 64,752 $4,127,160 $4,057,356 $3,479,303 340,700 42,036 298,664 (2,507) $301,171 24,616 $12.23 25,255 $11.93 297,261 48,642 248,619 84,948 $163,671 24,401 $6.71 25,069 $6.53 264,750 41,138 223,612 80,813 $142,799 24,262 $5.89 24,802 $5.76 The financial information above should be read in conjunction with the consolidated financial statements and notes thereto included in CACI’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC). 6 | 2 0 1 8 C A C I A N N U A L R E P O R T | C AC I I N T ER N AT I O N A L I N C Consolidated Balance Sheets (amounts in thousands, except per share data) 2018 2017 June 30 ASSETS Current assets: Cash and cash equivalents Accounts receivable, net Prepaid expenses and other current assets Total current assets Goodwill Intangible assets, net Property and equipment, net Supplemental retirement savings plan assets Accounts receivable, long-term Other long-term assets Total assets LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Current portion of long-term debt Accounts payable Accrued compensation and benefits Other accrued expenses and current liabilities Total current liabilities Long-term debt, net of current portion Supplemental retirement savings plan obligations, net of current portion Deferred income taxes Other long-term liabilities Total liabilities Shareholders’ equity: Preferred stock $0.10 par value, 10,000 shares authorized, no shares issued Common stock $0.10 par value, 80,000 shares authorized, 42,139 and 24,704 outstanding at June 30, 2018 and 41,896 issued and 24,462 outstanding at June 30, 2017 Additional paid-in capital Retained earnings Accumulated other comprehensive loss Treasury stock, at cost (17,434 and 17,435 shares, respectively) Total CACI shareholders’ equity Noncontrolling interest Total shareholders’ equity Total liabilities and shareholders’ equity 66,194 806,871 58,126 $931,191 2,620,835 241,755 101,140 91,490 8,620 39,175 65,539 757,341 57,022 $879,902 2,577,435 235,371 91,749 91,367 7,886 27,372 $4,034,206 $3,911,082 46,920 82,017 259,442 150,602 53,965 62,874 239,741 170,164 $538,981 $526,744 1,015,420 86,851 200,880 85,187 1,177,598 81,823 273,320 57,876 $1,927,319 $2,117,361 — — 4,214 570,964 2,126,790 (19,030) (576,186) $2,106,752 135 $2,106,887 $4,034,206 4,190 569,080 1,825,619 (29,116) (576,187) $1,793,586 135 $1,793,721 $3,911,082 The financial information above should be read in conjunction with the consolidated financial statements and notes thereto included in CACI’s Annual Report on Form 10-K filed with the SEC. There are statements made herein which reflect our intent, belief or current expectations and do not address historical facts. Such statements could be interpreted to be forward-looking statements within the meaning of federal securities laws. Please refer to CACI’s Annual Report on Form 10-K as well as CACI’s other filings with the SEC, for a description of the substantial risks and uncertainties related to the forward-looking statements included herein. 2 0 1 8 C A C I A N N U A L R E P O R T | 7 CACI Board of Directors Dr. J.P. London (1981) 3*, 4, 5, 7, 8 Executive Chairman and Chairman of the Board, CACI International Inc; Chief Executive Officer, 1984-2007. Director, Friends of the National World War II Memorial, U.S. Navy Memorial Foundation, Naval Historical Foundation, and CAUSE (Comfort for America’s Uniformed Services) Kenneth Asbury (2013) 3 President and Chief Executive Officer, CACI International Inc; former President and Chief Executive Officer of ASRC Federal Holding Company; former President of the Civil business of Lockheed Martin; served in the U.S. Army Security Agency Michael A. Daniels (2013) 2, 4, 5, 6, 7 Director of Blackberry and Mercury Systems, Inc.; Chairman of the Logistics Management Institute; former Chairman of the Board and Chief Executive Officer of Mobile 365, Inc.; former Director of Sybase, Inc., Verisign, Telcordia Technologies, and Luna Innovations; former senior executive at Science Applications International Corporation; former Chairman and Chief Executive Officer of Network Solutions, Inc; former Chairman of GlobalLogic Hon. James S. Gilmore III (2009) 1, 2, 4, 5, 8* Former Governor of the Commonwealth of Virginia; President and Chief Executive Officer of the American Opportunity Foundation; former Chairman, U.S. Congressional Advisory Panel to Assess Domestic Response Capabilities Involving Terrorism and Weapons of Mass Destruction William L. Jews (2013) 1, 2, 4, 5, 8 Director of Choice Hotels International, Inc.; former Director of Fortress International Group, Inc., the Ryland Group, Inc. and the CalAtlantic Group, Inc.; former President and Chief Executive Officer of CareFirst, Inc., CareFirst of Maryland, Inc., Group Hospitalization and Medical Services, Inc., and Blue Cross Blue Shield of Maryland, Inc.; former Chief Executive Officer of Blue Cross Blue Shield of Delaware Admiral Gregory G. Johnson (2006) 2, 3, 5*, 7, 8 Founder, Snow Ridge Associates; Admiral, U.S. Navy (Ret.); former Commander, U.S. Naval Forces Europe and Africa; Commander in Chief, Allied (NATO) Forces Southern Europe 8 | 2 0 1 8 C A C I A N N U A L R E P O R T James L. Pavitt (2008) 1, 2, 5, 7*, 8 President of JLP Associates, LLC; former Principal of The Scowcroft Group; former Deputy Director for Operations, head of America’s Clandestine Services, and Chief of the Counterproliferation Division, Central Intelligence Agency; former Senior Intelligence Advisor, National Security Council team for President George H.W. Bush Dr. Warren R. Phillips (1974) 1*, 3, 5, 6*, 7 Former Chief Financial Officer, Albanian- Macedonian-Bulgarian Oil Pipeline Corporation; former Professor of Government and Politics, Vice President for Academics, and Assistant Vice President for Administration for the University of Maryland; former Executive Vice Chairman and Chief Financial Officer, Maryland Moscow, Inc.; former Chief Executive Officer and Chairman of the Board of Directors, Advanced Blast Protection, Inc. Debora A. Plunkett (2018) 1, 4, 5 Director of J.C. Penney Company, Inc.; Adjunct Professor at the University of Maryland University College; former Director, Information Assurance Directorate, Deputy Director of Information Assurance, and Senior Advisor to the Director of the U.S. National Security Agency; former Director, Office of Transnational Threats, United States National Security Council Charles P. Revoile (1993) 1, 2*, 3, 4, 6 Legal and business consultant; former Senior Vice President, General Counsel and Secretary, CACI International Inc; former Vice President and General Counsel of Stanwick Corporation; former Counsel, Communications Division, Westinghouse Electric Corporation General William S. Wallace (2009) 1, 4*, 5, 7, 8 General, U.S. Army (Ret.); former Commander, Fifth U.S. Corps during Operation Iraqi Freedom; former Commander, Joint Warfighting Center and Commanding General, 4th Infantry Division; former Commanding General of Army Combined Arms Center and National Training Center Front left to right: Dr. Warren R. Phillips, Dr. J.P. London, Kenneth Asbury Middle left to right: Charles P. Revoile, Admiral Gregory G. Johnson, James L. Pavitt, General William S. Wallace Back left to right: Honorable James S. Gilmore III, William L. Jews, Michael A. Daniels, Debora A. Plunkett ( ) Denotes year elected/appointed a director of the Company * Denotes Chairmanship of Committee 1 Member of Audit Committee 2 Member of Compensation Committee 3 Member of Executive Committee 4 Member of Investor Relations Committee 5 Member of Strategic Assessment Committee 6 Member of Corporate Governance and Nominating Committee 7 Member of Security and Risk Assessment Committee 8 Member of Culture, Character, Integrity, and Ethics Committee CACI provides information solutions and services in support of national security missions and government transformation for Intelligence, Defense, and Federal Civilian customers. A Fortune World’s Most Admired Company, CACI is a member of the Fortune 1000 Largest Companies, the Russell 2000 Index, and the S&P SmallCap600 Index. CACI’s sustained commitment to ethics and integrity defines its corporate culture and drives its success. CACI provides dynamic career opportunities for military veterans and industry professionals to support the nation’s most critical missions. Corporate Headquarters CACI International Inc 1100 North Glebe Road, Arlington, VA 22201 (703) 841-7800 www.caci.com European Headquarters CACI House – Kensington Village Avonmore Road London, England W14 8TS (01144207) 602-6000 www.caci.co.uk Visit our website at: www.caci.com Find career opportunities at: careers.caci.com Connect with us through social media: CACI (NYSE: CACI) is a member of the Russell 2000 Index and the S&P SmallCap 600 Index and can be found on the web at www.caci.com Adobe and Amazon Web Services are registered trademarks. CACI and CACI Ever Vigilant are registered trademarks of CACI. © CACI 2018 Shareholder Information Corporate Headquarters CACI International Inc 1100 North Glebe Road, Arlington, VA 22201 (703) 841-7800 Annual Meeting The 2018 annual meeting will be held at 9:30 am EST, November 15, 2018 at: Sheraton Tysons Hotel 8661 Leesburg Pike, Tysons, VA 22182 Common Stock CACI International Inc is listed on the New York Stock Exchange (NYSE) under the symbol CACI. Daily quotes on the common stock can be obtained in most daily newspapers and online services. Quarter High Low High Low 2018 2017 1st 2nd 3rd 4th $142.85 $147.31 $159.40 $174.80 $118.10 $121.60 $133.00 $147.15 $103.21 $133.70 $135.35 $132.45 $87.67 $96.05 $117.25 $112.10 As of August 7, 2018, there were approximately 229 holders of record of CACI International Inc common stock, and 24,705,478 shares outstanding. Shareholder Services All questions concerning registered shareholder accounts and stock transfer matters, including name or address changes, transfers, and other services, should be directed to CACI’s transfer agent and registrar: Computershare P.O. Box 30170 College Station, TX 77842-3170 (800) 736-3001/(781) 575-3100 www.computershare.com/investor Independent Auditor Ernst & Young LLP 1775 Tysons Boulevard, Tysons, VA 22102 Annual Report on Form 10-K The annual report on Form 10-K to the Securities and Exchange Commission may be obtained without charge by addressing a request to: CACI International Inc Investor Relations 1100 North Glebe Road, Arlington, VA 22201 The CACI International Inc 2018 Annual Report is available from the CACI website at www.caci.com. An Adobe Acrobat Portable Document Format (PDF) file of the print version can be downloaded from this location. In addition, other documents can also be obtained at the same location. CACI on the Internet Information on CACI’s solutions and services can be found via the CACI website (www.caci.com). Financial results, corporate news releases, and other CACI activities can also be found there. Additional Information Inquiries from institutional investors, financial analysts, and portfolio managers should be directed to: Daniel Leckburg, Vice President, Investor Relations (866) 606-3471, dleckburg@caci.com Inquiries from individual shareholders and registered representatives should be directed to: Mary Peevy, Investor Relations (866) 606-3471, mpeevy@caci.com Inquiries from the financial and other media should be directed to: Jody Brown, Executive Vice President, Public Relations (703) 841-7801, jbrown@caci.com Driven by CHARACTER For more than 56 years, CACI’s culture of ethics, integrity, excellence, and innovation has been the driving force behind our success. Our daily commitment to these values inspires our delivery of leading-edge information solutions and services in support of defense, intelligence, and federal civilian customers. As we answer our customers’ most pressing needs to safeguard our nation and serve the American people, we remain rigorously dedicated to acting with good character. CORPORATE HEADQUARTERS CACI International Inc 1100 North Glebe Road Arlington, VA 22201 (703) 841-7800 www.caci.com