SAIC(SAIC) - 2025 Q2 - Quarterly Report

Financial Performance - Revenues for the three months ended August 2, 2024, were $1,818 million, a 1.9$1,784 million for the same period in 2023[3] - Net income for the three months ended August 2, 2024, was $81 million, a decrease of 67.2$247 million for the same period in 2023[3] - Basic earnings per share for the three months ended August 2, 2024, were $1.59, down 65.4$4.60 for the same period in 2023[3] - Operating income for the three months ended August 2, 2024, was $134 million, a significant decrease from$362 million for the same period in 2023[3] - The company reported a comprehensive income of $73 million for the three months ended August 2, 2024, compared to$254 million for the same period in 2023[4] - Net income for the six months ended August 2, 2024, was $158 million, compared to$345 million for the same period in 2023, reflecting a decrease of 54%[9] - For the six months ended August 2, 2024, revenues were $3,665 million, a decrease from$3,812 million for the same period in 2023[32] - Total operating income for the six months ended August 2, 2024, was $265 million, down from$519 million for the same period in 2023[69] Assets and Liabilities - Total assets as of August 2, 2024, were $5,250 million, a decrease from$5,314 million as of February 2, 2024[6] - Current liabilities increased to $1,292 million as of August 2, 2024, compared to$1,158 million as of February 2, 2024[6] - Total stockholders' equity decreased to $1,625 million as of August 2, 2024, from$1,785 million as of February 2, 2024[6] - As of August 2, 2024, the total debt of the Company was $2.177 billion, with a net debt of$1.980 billion after accounting for the current portion[51] Cash Flow and Investments - Cash provided by operating activities was $236 million for the six months ended August 2, 2024, slightly up from$232 million in the same period of 2023[9] - Total cash, cash equivalents, and restricted cash at the end of the period was $56 million, down from$361 million at the end of the same period in 2023[9] - The company reported a net cash used in investing activities of $16 million for the six months ended August 2, 2024, compared to a net cash provided of$334 million in the same period of 2023[9] - Cash proceeds from the divestiture of the Supply Chain Business amounted to $356 million, enhancing the company's focus on long-term strategic growth areas[42] Stock and Dividends - The company repurchased$304 million worth of stock during the six months ended August 2, 2024, compared to $190 million in the same period of 2023, indicating a significant increase in stock buybacks[9] - The company declared cash dividends of$39 million during the six months ended August 2, 2024, compared to $41 million in the same period in 2023[9] - The company declared a quarterly dividend of$0.37 per share during the three months ended August 2, 2024[28] Business Operations and Strategy - The company completed a business reorganization effective February 3, 2024, transitioning from two customer-facing operating sectors to five business groups[11] - The Defense and Intelligence segment provides a diverse portfolio of national security solutions to U.S. government agencies, while the Civilian segment focuses on solutions for federal, state, and local governments[12] - The Innovation Factory supports the operating segments by developing enterprise-class solutions, including a focus on AI, application development, and cybersecurity[13] - The company anticipates that future spending packages from the U.S. government may provide additional opportunities in areas of focus such as digital modernization and climate resiliency[87] - The company is focused on leveraging its scale and technical expertise to differentiate itself from competitors, particularly in large contract opportunities[88] Performance Obligations and Backlog - The company reported approximately $5.4 billion in remaining performance obligations (RPO) as of August 2, 2024, with an expectation to recognize 79$22.899 billion, consisting of $4.237 billion in funded backlog and$18.662 billion in negotiated unfunded backlog[114] - The company expects to recognize revenue from a substantial portion of its funded backlog within the next twelve months[114] Tax and Accounting - The effective income tax rate for the three months ended August 2, 2024, was 19.6%, a decrease from 26.4% for the same period in 2023[49] - The company plans to adopt new accounting standards related to income taxes and segment reporting in fiscal years 2025 and 2026, respectively[23][24] Market and Segment Performance - The Defense and Intelligence segment generated revenues of $1,415 million for the three months ended August 2, 2024, compared to$1,389 million for the same period in 2023, reflecting a growth of 1.9%[69] - The Civilian segment reported revenues of $403 million for the three months ended August 2, 2024, up from$395 million in the same period of 2023, marking a 2.0% increase[69] - Revenues for the three months ended August 2, 2024, increased by $34 million (2%) compared to the same period in the prior year, primarily due to ramp-up in volume on existing and new contracts[94] Investigations and Compliance - The company is involved in ongoing investigations by the U.S. Department of Justice, which may impact future financial results, although no material adverse effects are currently anticipated[71] - The Company is in compliance with the covenants under its Credit Facility as of August 2, 2024[56]