Science Applications International Corporation (NYSE:SAIC) Q2 2020 Earnings Conference Call Transcript

Sep 05, 2019 • 05:00 pm ET

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Science Applications International Corporation (NYSE:SAIC) Q2 2020 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good day and welcome to the SAIC Fiscal Year 2020 Second Quarter Earnings Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Shane Canestra, SAIC's Vice President of Investor Relations. Please go ahead, sir.

Executive
Shane Canestra

Good afternoon. My name is Shane Canestra, SAIC's Vice President of Investor Relations. And thank you for joining our second quarter fiscal year 2020 earnings call.

Joining me today to discuss our business and financial results are Nazzic Keene, SAIC's Chief Executive Officer; Charlie Mathis, our Chief Financial Officer and other members of our management team. This afternoon, we issued our earnings release, which can be found at investors.saic.com, where you also find supplemental financial presentation slide to be utilized in conjunction with today's call. Both of these documents, in addition to our Form 10-Q to be filed soon, should be utilized in evaluating our results and outlook, along with information provided on today's call.

Please note that we may make forward-looking statements on today's call that are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from statements made on this call. I refer you to our SEC filings for a discussion of these risks, including the Risk Factors section of our annual report on Form 10-K and quarterly reports on Form 10-Q. In addition, the statements represent our views as of today and subsequent events may cause our views to change. We may elect to update the forward-looking statements at some point in the future, but we specifically disclaim any obligation to do so.

In addition, we will discuss non-GAAP financial measures and other metrics, which we believe provide useful information for investors in both our press release and supplemental financial presentation slides, include reconciliations to the most comparable GAAP measures.

It is now my pleasure to introduce our CEO, Nazzic Keene.

Executive
Nazzic Keene

Thank you, Shane, and good afternoon. SAIC took another positive step forward in the second quarter of fiscal 2020, keeping our attention on operational performance, progressing on the integration of the Engility acquisition and delivering strong financial and business development results. While Charlie will discuss the financial results in greater detail, our second quarter reflects strength in a contract portfolio that is aligned to key areas of our market with strong profitability and free cash flow generation. The second quarter delivered revenues of $1.6 billion in line with our expectations and equating to a 43% total revenue growth from the prior year quarter. Strong adjusted EBITDA margins were 8.4% for the second quarter, up 90 basis points from last year. The cash generation profile of the company continues to be compelling, with second quarter and first half cash flow providing continued confidence in our full year target and enabling capital deployment for shareholder value creation.

Net bookings for the quarter were approximately $1.9 billion, excluding about $400 million of single award IDIQ vehicles, translate into a quarterly book to bill of 1.2. On a pro forma basis,