Leidos Holdings, Inc. (LDOS) 10-Q Quarterly Report July 2019

RESTON, Va., July 30, 2019 – Leidos Holdings, Inc. (NYSE: LDOS), a FORTUNE 500^®science and technology leader, today reported financial results for the second quarter of fiscal year 2019.

Roger Krone, Leidos Chairman and Chief Executive Officer, commented: "Our growth momentum continues to accelerate through the second quarter, with nearly 9% organic revenue growth, a record backlog position, and strong win-rates. Our success in executing against our pipeline and driving growth across all segments of our business enables us to raise our full-year guidance for both revenue and earnings. In addition, our recently announced dividend increase demonstrates the confidence of the board of directors and management team in the strength of the Company's cash flow generation and ability to sustainably generate value for our shareholders."

Summary Results

Revenues for the quarter were $2.73 billion, compared to $2.53 billion in the prior year quarter, reflecting a 7.9% increase. Revenues grew 8.8% when adjusting for the commercial cybersecurity business that was sold during the first quarter of 2019.

Operating income for the quarter was $210 million, compared to $199 million in the prior year quarter. Operating income margin decreased to 7.7% from 7.9% in the prior year quarter. Non-GAAP operating income margin for the quarter was 9.4%, compared to 10.3% in the prior year quarter, primarily attributable to lower net profit write-ups in the current quarter.

Diluted earnings per share ("EPS") attributable to Leidos common stockholders for the quarter was $0.93, compared to $0.94 in the prior year quarter. Non-GAAP diluted EPS for the quarter was $1.16, compared to $1.12 in the prior year quarter. The weighted average diluted share count for the quarter was 146 million compared to 154 million in the prior year quarter, primarily due to stock repurchases in the first quarter of 2019 and fourth quarter of 2018.

Defense Solutions

Defense Solutions revenues for the quarter of $1,346 million increased by $84 million, or 6.7%, compared to the prior year quarter. The revenue increase was primarily attributable to new awards, partially offset by the completion of certain contracts and lower net profit write-ups in the current quarter.

Defense Solutions operating income margin for the quarter was 7.5%, compared to 7.4% in the prior year quarter. On a non-GAAP basis, operating income margin for the quarter was 8.6%, compared to 8.8% in the prior year quarter, primarily attributable to lower net profit write-ups in the current quarter.

Civil

Civil revenues for the quarter of $881 million increased by $65 million, or 8.0%, compared to the prior year quarter. The revenue increase was primarily attributable to new awards and a net increase in program volumes, partially offset by the impact of the sale of our commercial cybersecurity business in the first quarter of 2019 and lower net profit write-ups in the current quarter.

Civil operating income margin for the quarter was 7.7%, compared to 7.4% in the prior year quarter. On a non-GAAP basis, operating income margin for the quarter was 9.9%, compared to 10.3% in the prior year quarter, primarily attributable to lower net profit write-ups in the current quarter.

The following information was filed by Leidos Holdings, Inc. (LDOS) on Tuesday, July 30, 2019 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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Inside Leidos Holdings, Inc.'s 10-Q Quarterly Report:

Revenue - Product Highlight
Net cash provided by investing activities increased $330 million for the six months ended June 28, 2019, when compared to the prior year, primarily due to proceeds of $267 million received for the disposition of our commercial cybersecurity business and sale of real estate properties and $81 million of cash paid in the prior year related to our 2016 acquisition, partially offset by higher purchases of equipment and software.

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Inside this 10-Q Quarterly Report

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Leidos Holdings, Inc. provided additional information to their SEC Filing as exhibits

Exhibit 31.1: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 31.2: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 32.1: Section 1350 Certification

Exhibit 32.2: Section 1350 Certification

Ticker: LDOS
CIK: 1336920
Form Type: 10-Q Quarterly Report
Accession Number: 0001336920-19-000041
Submitted to the SEC: Tue Jul 30 2019 9:01:32 AM EST
Accepted by the SEC: Tue Jul 30 2019
Period: Friday, June 28, 2019
Industry: Computer Integrated Systems Design