Science Applications International Corporation (NYSE: SAIC)

Science Applications International Corporation (NYSE: SAIC), a leading technology integrator providing high-end solutions in engineering, IT, and mission solutions across the defense, space, civilian, and intelligence markets, recently stated results for the 3rd-quarter finished November 1, 2k19.

Revenues for the quarter inclined $453.00M, or 38.00 percent, compared to the previous year quarter due to the acquisition of Engility. Adjusting for the impact of acquired revenues, revenues contracted 1.50 percent due to acquisition-related dis-synergies.

Operating income as a percentage of revenues of 5.80 percent, declined from 6.20 percent in the comparable previous year duration, due to inclined intangible asset amortization, lower current quarter net profit write-ups and acquisition, and integration costs, partially offset by cost synergies.

Net income attributable to common stockholders for the quarter inclined $7.00 as compared to a similar duration in the previous year primarily due to inclined operating income ($17.00M, net of tax), partially offset by higher interest cost and a higher effective tax rate.

Adjusted EBITDA(1) as a percentage of revenues for the quarter remained consistent with the previous year. Cost synergies related to the acquisition were offset by lower net profit write-ups.

Diluted earnings for each share for the quarter were $0.940 compared to $1.110 in the previous year quarter. Adjusted diluted earnings for each share(1) for the quarter was $1.390 compared to $1.470 in the prior-year quarter. The weighted-average diluted shares outstanding throughout the quarter inclined to 58.30M from 43.20M throughout the prior-year quarter, primarily due to shares issued for the acquisition of Engility.

(1)Non-GAAP measure, see Schedule 5 for information about this measure.

Cash Generation and Capital Deployment

Cash flows provided by operating activities for the 3rd-quarter were $116.00M, an incline of $30.00M compared to a similar duration in the previous year. The improvement is primarily due to cash provided from the operating activities of Engility.

Throughout the quarter, SAIC deployed $24.00M of capital, consisting of $21.00M in cash dividends and $3.00M of term loan repayment. There were no plan share repurchases in the 3rd-quarter. Not included in the 3rd-quarter capital deployment was the $100.00M repayment of funds borrowed on our revolving credit facility throughout the 2nd-quarter to directly repurchase shares from a private equity shareholder.

New Business Awards

Net bookings for the quarter were approximately $2.20B, which reflects a book-to-bill ratio of 1.40. SAIC’s estimated backlog of signed business orders at the end of the quarter was approximately $14.50B of which $2.90B was funded.