Science Applications International Corporation (SAIC) today announced results for the second quarter ended August 3, 2018.
“With our fourth quarter of consecutive revenue growth, SAIC delivered strong second quarter results including increased profitability and contract bookings,” said SAIC CEO Tony Moraco. “Our long term strategy, Ingenuity 2025, that we began executing two years ago and in advance of an improved market environment, positions SAIC well to create value for our customers and shareholders."
Revenues for the quarter increased $37 million, or 3.4%, compared to the prior year quarter due to increased orders in our supply chain portfolio ($31 million) and revenue on new contracts primarily supporting NASA and other federal civilian agencies ($24 million). These increases were partially offset by completion of contracts and other net decreases across our portfolio ($18 million).
Operating income as a percentage of revenues increased to 6.6%, compared to 5.5% for the prior year quarter, driven by improved performance across our portfolio and the continued realization of cost efficiencies.
Net income for the quarter increased $13 million as compared to the same period in the prior year due to higher operating income.
Adjusted EBITDA(1) as a percentage of revenues for the quarter increased to 7.5%, compared to 6.7% for the prior year quarter, driven by improved performance across our portfolio and the realization of cost efficiencies resulting from our restructuring activities in fiscal 2018.
Diluted earnings per share was $1.13 for the quarter. The weighted-average diluted shares outstanding during the quarter was 43.2 million shares.
(1) Non-GAAP measure, see Schedule 5 for information about this measure.
Cash Generation and Capital Deployment
Total cash flows used in operating activities for the second quarter were $12 million, compared $35 million used in operating activities during the same period in the prior year. The improvement is primarily due to prior year delayed collections caused by a government payment system issue, partially offset by an increase in working capital investments in platform integration programs.
During the quarter SAIC deployed $22 million of capital, consisting of $13 million in cash dividends and a $9 million term loan repayment. No plan share repurchases were made during the quarter as SAIC evaluated alternative capital deployment opportunities including the pending acquisition of Engility.
To view full results, including financial tables, please visit https://investors.saic.com/press-release/financial/saic-announces-second-quarter-fiscal-year-2019-results
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