CACI International Inc (NYSE: CACI) issued its guidance for its Fiscal Year 2017 (FY17) which begins July 1, 2016, and reiterated its Fiscal Year 2016 (FY16) guidance.

Commentary

Ken Asbury, CACI’s President and CEO said, “Our FY17 guidance shows growth as a result of the successful integration and performance of National Security Solutions (NSS) and strong operating cash flow. We are entering the new fiscal year with a large backlog of business, a healthy pipeline of enduring opportunities, and the capabilities and enhanced position to pursue larger, more complex business where customers are seeking solutions rather than commoditized services.

“As we start FY17, we are confident in our market-focused strategy of winning business, delivering operational excellence, and deploying our capital for growth. We remain focused on providing innovative solutions and services that advance our customers’ most critical missions and produce long-term shareholder value.”

Guidance for Fiscal Year 2017

The table below summarizes our FY17 guidance ranges and represents our views as of June 22, 2016:

*** The Street sees FY17 revenue of $4.4 billion and EPS of $6.50.

Following are the key factors related to our FY17 guidance:

• We expect that our gross profit margin will range between 33 percent and 34 percent.
• We anticipate that our indirect costs and selling expenses will be 12 percent to 14 percent higher than what we expect in FY16, driven by the additional seven months of NSS.
• Depreciation and amortization is expected to be approximately $66 million.
• Net interest expense is expected to be approximately $50 million.
• We expect that operating cash flow will be greater than $240 million.
• We expect that capital expenditures will total approximately $30 million, higher than in typical years due to a large facility consolidation.
• We expect a seasonal percentage decrease of quarterly revenue between the fourth quarter of FY16 and the first quarter of FY17 similar to the average of the last three years.

FY16 Guidance Reiterated

We are reiterating the FY16 guidance we issued on April 27, 2016. The table below summarizes our FY16 guidance and represents our views as of June 22, 2016:

We have scheduled a conference call for 8:30 AM Eastern Time Thursday, June 23, 2016, during which members of our senior management will be making a brief presentation followed by a question-and-answer session to discuss the guidance and management’s performance expectations for the new fiscal year. You can listen to the conference call and view accompanying exhibits over the Internet by logging on to CACI’s website at www.caci.com at the scheduled time. You may also dial in to 1-888-771-4371, confirmation code 42651103. Slides of the presentation will be available on our website during the call. A replay of the call will also be available over the Internet, and can be accessed through CACI’s website (www.caci.com).