SAIC Announces First Quarter of Fiscal Year 2022 Results

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Science Applications International Corporation, a premier Fortune 500® technology integrator driving our nation's digital transformation across the defense, space, civilian, and intelligence markets, announced results for the first quarter ended April 30, 2021.

“SAIC’s first quarter results are a strong start to fiscal year 2022. Our team produced great business development results and generated higher revenues and earnings," said SAIC CEO Nazzic Keene. "The announcement today of our intent to acquire Halfaker and Associates expands our presence in public sector health and enhances our digital transformation capabilities. We are optimistic about the future due to a well-defined and focused strategy, strong financial performance, and what we all hope are the waning days of the pandemic. Bring on Tomorrow."

First Quarter of Fiscal Year 2022: Summary Operating Results

First Quarter Summary Results

Revenues for the quarter increased $121 million, or 6.9%, compared to the prior year quarter due to the acquisition of Unisys Federal (which occurred in the middle of the first quarter of the prior year period), increased volume on existing programs, and revenue on new contracts primarily supporting the U.S. Air Force, partially offset by the completion of certain contracts. Adjusting for the impact of acquired revenues and divested revenues, revenues grew 2.6% primarily due to net increases in program volume and new awards. We estimate the first quarter program impact from the COVID-19 pandemic to be approximately $33 million of revenue, primarily driven by reduced volume in our supply chain business, lower FAA training service revenues, and uncertain profit recovery on ready-state labor.

Operating income as a percentage of revenues of 6.9%, increased from 4.4% in the comparable prior year period due to lower acquisition and integration costs, improved profitability across our contract portfolio, the acquisition of Unisys Federal (which occurred in the middle of the first quarter of the prior year period), lower indirect costs due to timing, and benefit from a net favorable settlement of prior indirect rate years, partially offset by increased intangible asset amortization. 

Adjusted EBITDA as a percentage of revenues for the quarter increased to 9.8% of revenues from 7.8% of revenues in the prior year quarter primarily due to a net increase in profitability across our existing contract portfolio, the acquisition of Unisys Federal (which occurred in the middle of the first quarter of the prior year period), lower indirect costs due to timing, and benefit from a net favorable settlement of prior indirect rate years. We estimate the first quarter program impact from the COVID-19 pandemic to be approximately $4 million of adjusted EBITDA.

Diluted earnings per share for the quarter was $1.38 compared to $0.62 in the prior year quarter. Adjusted diluted earnings per share for the quarter was $1.94 compared to $1.38 in the prior year quarter. The weighted-average diluted shares outstanding during the quarter increased to 58.7 million from 58.5 million during the prior year quarter.