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Jan 31, 2020

SAIC Q4 2020 Earnings Report

SAIC's Q4 2020 results reflected strong revenue growth and earnings per share driven by the acquisition of Engility and strong operational performance.

Key Takeaways

SAIC announced strong Q4 and full fiscal year 2020 results, with a 29% increase in revenue to $1.54 billion and diluted earnings per share of $1.01. The company's performance was driven by the acquisition of Engility and strong operational execution.

Q4 revenues reached $1.54 billion, a 29% increase year-over-year.

Diluted earnings per share for Q4 were $1.01, with adjusted diluted earnings per share at $1.58.

Q4 cash flows from operating activities totaled $69 million.

Book-to-bill ratio for Q4 was 1.5.

Total Revenue
$1.54B
Previous year: $1.19B
+29.2%
EPS
$1.58
Previous year: $1.17
+35.0%
Total Backlog
$15.3B
Gross Profit
$167M
Previous year: $122M
+36.9%
Cash and Equivalents
$188M
Previous year: $237M
-20.7%
Free Cash Flow
$62M
Previous year: $18M
+244.4%
Total Assets
$4.71B
Previous year: $4.56B
+3.2%

SAIC

SAIC

Forward Guidance

SAIC believes it is prudent to provide post-quarter clarity and transparency on the company’s liquidity and capital structure. At the completion of the acquisition of Unisys Federal on March 13, 2020, the company had approximately $2.9 billion of long term debt. SAIC has ample liquidity and a strong capital structure to more than adequately service this debt in the context of potential business impacts from the COVID-19 virus.

Positive Outlook

  • SAIC has ample liquidity and a strong capital structure to more than adequately service this debt in the context of potential business impacts from the COVID-19 virus.
  • At the close of the Unisys Federal acquisition, SAIC had $155 million of cash on hand
  • SAIC has full access to our $400 million committed revolving credit facility.
  • SAIC is a well-capitalized company
  • SAIC primarily serves the U.S. Federal Government, providing business stability through long term contracts, a flexible cost structure, and a customer whose obligations to pay invoices are backed by full faith and credit of the US Government.