Schedule 1: |
||||||||||||||||
SCIENCE APPLICATIONS INTERNATIONAL CORPORATION |
||||||||||||||||
CONDENSED AND CONSOLIDATED STATEMENTS OF INCOME |
||||||||||||||||
(Unaudited) |
||||||||||||||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
November 1,
|
|
November 2,
|
|
November 1,
|
|
November 2,
|
||||||||
|
|
(in millions, except per share amounts) |
||||||||||||||
Revenues |
|
$ |
1,630 |
|
|
$ |
1,177 |
|
|
$ |
4,839 |
|
|
$ |
3,467 |
|
Cost of revenues |
|
1,456 |
|
|
1,048 |
|
|
4,300 |
|
|
3,125 |
|
||||
Selling, general and administrative expenses |
|
68 |
|
|
42 |
|
|
227 |
|
|
115 |
|
||||
Acquisition and integration costs |
|
12 |
|
|
14 |
|
|
30 |
|
|
14 |
|
||||
Operating income |
|
94 |
|
|
73 |
|
|
282 |
|
|
213 |
|
||||
Interest expense |
|
22 |
|
|
16 |
|
|
69 |
|
|
38 |
|
||||
Other (income) expense, net |
|
(1 |
) |
|
(1 |
) |
|
(4 |
) |
|
(2 |
) |
||||
Income before income taxes |
|
73 |
|
|
58 |
|
|
217 |
|
|
177 |
|
||||
Provision for income taxes |
|
(17 |
) |
|
(10 |
) |
|
(48 |
) |
|
(31 |
) |
||||
Net income |
|
$ |
56 |
|
|
$ |
48 |
|
|
$ |
169 |
|
|
$ |
146 |
|
Net income attributable to non-controlling interest |
|
1 |
|
|
— |
|
|
2 |
|
|
— |
|
||||
Net income attributable to common stockholders |
|
$ |
55 |
|
|
$ |
48 |
|
|
$ |
167 |
|
|
$ |
146 |
|
Weighted-average number of shares outstanding: |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
57.7 |
|
|
42.5 |
|
|
58.5 |
|
|
42.5 |
|
||||
Diluted |
|
58.3 |
|
|
43.2 |
|
|
59.2 |
|
|
43.3 |
|
||||
Earnings per share: |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
$ |
0.95 |
|
|
$ |
1.13 |
|
|
$ |
2.85 |
|
|
$ |
3.44 |
|
Diluted |
|
$ |
0.94 |
|
|
$ |
1.11 |
|
|
$ |
2.82 |
|
|
$ |
3.37 |
|
Schedule 2: | |||||||
SCIENCE APPLICATIONS INTERNATIONAL CORPORATION |
|||||||
CONDENSED AND CONSOLIDATED BALANCE SHEETS |
|||||||
(Unaudited) |
|||||||
|
November 1, 2019 |
|
February 1, 2019 |
||||
|
(in millions) |
||||||
ASSETS |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
162 |
|
|
$ |
237 |
|
Receivables, net |
1,118 |
|
|
1,050 |
|
||
Inventory, prepaid expenses and other current assets |
144 |
|
|
146 |
|
||
Total current assets |
1,424 |
|
|
1,433 |
|
||
Goodwill |
2,134 |
|
|
2,120 |
|
||
Intangible assets, net |
733 |
|
|
803 |
|
||
Property, plant, and equipment, net |
94 |
|
|
103 |
|
||
Other assets |
315 |
|
|
104 |
|
||
Total assets |
$ |
4,700 |
|
|
$ |
4,563 |
|
LIABILITIES AND EQUITY |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable and accrued liabilities |
$ |
808 |
|
|
$ |
632 |
|
Accrued payroll and employee benefits |
319 |
|
|
241 |
|
||
Long-term debt, current portion |
64 |
|
|
24 |
|
||
Total current liabilities |
1,191 |
|
|
897 |
|
||
Long-term debt, net of current portion |
1,872 |
|
|
2,065 |
|
||
Other long-term liabilities |
248 |
|
|
102 |
|
||
Total common stockholders' equity |
1,380 |
|
|
1,485 |
|
||
Non-controlling interest |
9 |
|
|
14 |
|
||
Total stockholders' equity |
1,389 |
|
|
1,499 |
|
||
Total liabilities and stockholders' equity |
$ |
4,700 |
|
|
$ |
4,563 |
|
Schedule 3: | ||||||||||||||||
SCIENCE APPLICATIONS INTERNATIONAL CORPORATION |
||||||||||||||||
CONDENSED AND CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||||||||||
(Unaudited) |
||||||||||||||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
November 1,
|
November 2,
|
November 1,
|
November 2,
|
||||||||||||
|
|
(in millions) |
||||||||||||||
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
||||||||
Net income |
|
$ |
56 |
|
|
$ |
48 |
|
|
$ |
169 |
|
|
$ |
146 |
|
Adjustments to reconcile net income to net cash provided by (used in) operating activities: |
|
|
|
|
|
|
|
|
||||||||
Depreciation and amortization |
|
33 |
|
|
11 |
|
|
103 |
|
|
33 |
|
||||
Deferred income taxes |
|
11 |
|
|
— |
|
|
27 |
|
|
— |
|
||||
Stock-based compensation expense |
|
9 |
|
|
8 |
|
|
29 |
|
|
24 |
|
||||
Loss on extinguishment of debt |
|
— |
|
|
4 |
|
|
— |
|
|
4 |
|
||||
Provision for inventory |
|
— |
|
|
25 |
|
|
— |
|
|
25 |
|
||||
Increase (decrease) resulting from changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
||||||||
Receivables |
|
(85 |
) |
|
(52 |
) |
|
(68 |
) |
|
(86 |
) |
||||
Inventory, prepaid expenses and other current assets |
|
(20 |
) |
|
(11 |
) |
|
(9 |
) |
|
(5 |
) |
||||
Other assets |
|
16 |
|
|
3 |
|
|
43 |
|
|
(9 |
) |
||||
Accounts payable and accrued liabilities |
|
57 |
|
|
(11 |
) |
|
78 |
|
|
(47 |
) |
||||
Accrued payroll and employee benefits |
|
60 |
|
|
56 |
|
|
78 |
|
|
69 |
|
||||
Other long-term liabilities |
|
(21 |
) |
|
5 |
|
|
(61 |
) |
|
8 |
|
||||
Net cash provided by operating activities |
|
116 |
|
|
86 |
|
|
389 |
|
|
162 |
|
||||
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
||||||||
Expenditures for property, plant, and equipment |
|
— |
|
|
(6 |
) |
|
(14 |
) |
|
(24 |
) |
||||
Purchases of marketable securities |
|
(1 |
) |
|
— |
|
|
(23 |
) |
|
— |
|
||||
Sales of marketable securities |
|
— |
|
|
— |
|
|
2 |
|
|
— |
|
||||
Other |
|
(2 |
) |
|
— |
|
|
(5 |
) |
|
1 |
|
||||
Net cash used in investing activities |
|
(3 |
) |
|
(6 |
) |
|
(40 |
) |
|
(23 |
) |
||||
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
||||||||
Dividend payments to stockholders |
|
(21 |
) |
|
(13 |
) |
|
(65 |
) |
|
(40 |
) |
||||
Principal payments on borrowings |
|
(103 |
) |
|
(759 |
) |
|
(258 |
) |
|
(776 |
) |
||||
Issuances of stock |
|
2 |
|
|
2 |
|
|
7 |
|
|
5 |
|
||||
Stock repurchased and retired or withheld for taxes on equity awards |
|
(1 |
) |
|
(1 |
) |
|
(196 |
) |
|
(56 |
) |
||||
Proceeds from borrowings |
|
— |
|
|
791 |
|
|
100 |
|
|
791 |
|
||||
Debt issuance costs |
|
— |
|
|
(12 |
) |
|
— |
|
|
(13 |
) |
||||
Distributions to non-controlling interest |
|
(2 |
) |
|
— |
|
|
(7 |
) |
|
— |
|
||||
Net cash (used in) provided by financing activities |
|
(125 |
) |
|
8 |
|
|
(419 |
) |
|
(89 |
) |
||||
Net (decrease) increase in cash, cash equivalents and restricted cash |
|
(12 |
) |
|
88 |
|
|
(70 |
) |
|
50 |
|
||||
Cash, cash equivalents and restricted cash at beginning of period |
|
188 |
|
|
114 |
|
|
246 |
|
|
152 |
|
||||
Cash, cash equivalents and restricted cash at end of period |
|
$ |
176 |
|
|
$ |
202 |
|
|
$ |
176 |
|
|
$ |
202 |
|
Schedule 4: |
||||||||||||
SCIENCE APPLICATIONS INTERNATIONAL CORPORATION |
||||||||||||
BACKLOG |
||||||||||||
(Unaudited) |
||||||||||||
The estimated value of our total backlog as of the dates presented was: |
||||||||||||
|
|
November 1, 2019 |
|
August 2, 2019 |
|
February 1, 2019 |
||||||
|
|
|
||||||||||
Funded backlog |
|
$ |
2,868 |
|
|
$ |
2,593 |
|
|
$ |
2,753 |
|
Negotiated unfunded backlog |
|
11,638 |
|
|
11,329 |
|
|
11,048 |
|
|||
Total backlog |
|
$ |
14,506 |
|
|
$ |
13,922 |
|
|
$ |
13,801 |
|