Science Applications International Corporation (NYSE:SAIC) Q4 2020 Earnings Conference Call - Final Transcript

Mar 26, 2020 • 05:00 pm ET

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Science Applications International Corporation (NYSE:SAIC) Q4 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good afternoon and welcome to SAIC's Fourth Quarter and Full Fiscal Year 2020 Earnings Call.

At this time I would like to turn the conference call 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 fourth quarter and full fiscal year 2020 earnings call. Joining me today to discuss our business and financial results are Nazzic Keene, SAIC's Chief Executive Officer; and Charlie Mathis, our Chief Financial Officer.

This afternoon we issued our earnings release, which can be found at investors.saic.com, where you also find supplemental financial presentation slides to be utilized in conjunction with today's call. Both of these documents in addition to our Form 10-K 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, and 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

Good afternoon and thank you for joining us to discuss SAIC's fourth quarter and full fiscal year 2020 results, our outlook for fiscal year 2021 and the execution of our strategy to continue providing value to all of our stakeholders. SAIC's full year results reflect strong operational and financial performance as we successfully implemented many strategic initiatives to position the company for sustained profitable growth and long-term value creation. Charlie will provide details on the business development and financial results. But I would like to highlight a few areas of our strong performance in fiscal year 2020.

SAIC delivered strong profitability and cash generation that met or exceeded the expectations that were set at the beginning of the year. Compared to fiscal year 2019, SAIC improved adjusted EBITDA margins by 80 basis points and increased our free cash flow by $281 million to $437 million representing a 180% increase in the fiscal year. Additionally, we are on track to generate over $0.5 billion in free cash flow in fiscal year '22. We also had a very successful business development year with a book-to-bill of 1.2 times with strong third and fourth quarters of 1.4