|
Computer
Sciences Corporation
|
May
21, 2008
|
|||||||||||||||
|
Revenues
by Segment
|
||||||||||||||||
|
(preliminary
and unaudited)
|
||||||||||||||||
|
Fourth
Quarter Ended
|
||||||||||||||||
|
March
28,
|
March
30,
|
%
of Total
|
||||||||||||||
|
(In
millions)
|
2008
|
2007
|
Fiscal
2008
|
Fiscal
2007
|
||||||||||||
|
U.S.
Commercial
|
$ | 1,151.5 | $ | 963.7 | 26 | % | 24 | % | ||||||||
|
Europe
|
1,383.6 | 1,233.0 | 31 | 30 | ||||||||||||
|
Other
International
|
473.9 | 388.5 | 10 | 10 | ||||||||||||
|
Global
Commercial
|
3,009.0 | 2,585.2 | 67 | 64 | ||||||||||||
|
Department
of Defense
|
977.6 | 959.4 | 22 | 24 | ||||||||||||
|
Civil
Agencies
|
441.7 | 461.5 | 10 | 10 | ||||||||||||
|
Other
(1)
|
56.1 | 38.0 | 1 | 1 | ||||||||||||
|
North
American Public Sector
|
1,475.4 | 1,458.9 | 33 | 36 | ||||||||||||
| $ | 4,484.4 | $ | 4,044.1 | 100 | % | 100 | % | |||||||||
|
Twelve
Months Ended
|
||||||||||||||||
|
March
28,
|
March
30,
|
%
of Total
|
||||||||||||||
|
(In
millions)
|
2008
|
2007
|
Fiscal
2008
|
Fiscal
2007
|
||||||||||||
|
U.S.
Commercial
|
$ | 4,128.6 | $ | 3,776.7 | 25 | % | 25 | % | ||||||||
|
Europe
|
4,824.6 | 4,144.6 | 29 | 28 | ||||||||||||
|
Other
International
|
1,765.2 | 1,487.1 | 11 | 10 | ||||||||||||
|
Global
Commercial
|
10,718.4 | 9,408.4 | 65 | 63 | ||||||||||||
|
Department
of Defense
|
3,859.7 | 3,603.3 | 23 | 25 | ||||||||||||
|
Civil
Agencies
|
1,734.0 | 1,686.8 | 11 | 11 | ||||||||||||
|
Other
(1)
|
187.4 | 156.4 | 1 | 1 | ||||||||||||
|
North
American Public Sector
|
5,781.1 | 5,446.5 | 35 | 37 | ||||||||||||
| $ | 16,499.5 | $ | 14,854.9 | 100 | % | 100 | % | |||||||||
|
(1)
|
Other
revenues consist of state, local and foreign government as well as
commercial contracts performed by the North American Public
Sector.
|
|
Computer
Sciences Corporation
|
May
21, 2008
|
|
Consolidated
Statements of Income
|
|
|
(preliminary
and unaudited)
|
|
|
Fourth
Quarter Ended
|
Twelve
Months Ended
|
|||||||||||||||
|
(In millions except
per-share amounts)
|
March
28,
|
March
30,
|
March
28,
|
March
30,
|
||||||||||||
|
2008
|
2007
|
2008
|
2007
|
|||||||||||||
|
Revenues
|
$ | 4,484.4 | $ | 4,044.1 | $ | 16,499.5 | $ | 14,854.9 | ||||||||
|
Costs
of services (excludes depreciation and amortization)
|
3,498.4 | 3,139.5 | 13,151.9 | 11,813.5 | ||||||||||||
|
Selling,
general and administrative
|
253.5 | 236.3 | 975.4 | 918.3 | ||||||||||||
|
Depreciation
and amortization
|
320.3 | 284.4 | 1,198.6 | 1,073.6 | ||||||||||||
|
Interest
expense
|
56.3 | 57.7 | 185.4 | 217.9 | ||||||||||||
|
Interest
income
|
(11.3 | ) | (7.7 | ) | (37.1 | ) | (49.5 | ) | ||||||||
|
Special
items
|
63.4 | 36.2 | 155.8 | 316.1 | ||||||||||||
|
Other
income
|
(6.5 | ) | (14.1 | ) | (48.4 | ) | (41.3 | ) | ||||||||
|
Total
costs and expenses
|
4,174.1 | 3,732.3 | 15,581.6 | 14,248.6 | ||||||||||||
|
Income
before taxes
|
310.3 | 311.8 | 917.9 | 606.3 | ||||||||||||
|
Taxes
on income
|
128.6 | 57.6 | 373.3 | 209.0 | ||||||||||||
|
Net
income
|
$ | 181.7 | $ | 254.2 | $ | 544.6 | $ | 397.3 | ||||||||
|
Basic
|
$ | 1.16 | $ | 1.47 | $ | 3.26 | $ | 2.25 | ||||||||
|
Diluted
|
$ | 1.15 | $ | 1.44 | $ | 3.20 | $ | 2.21 | ||||||||
|
Average
common shares outstanding for:
|
||||||||||||||||
|
Basic
EPS
|
156.210 | 173.061 | 167.233 | 176.263 | ||||||||||||
|
Diluted
EPS
|
157.624 | 176.397 | 170.168 | 179.733 | ||||||||||||
|
Earnings
before special items, interest and taxes
|
$ | 418.7 | $ | 398.0 | $ | 1,222.0 | $ | 1,090.8 | ||||||||
|
Computer
Sciences Corporation
|
May
21, 2008
|
|||||||
|
Selected
Balance Sheet Data
|
||||||||
|
(preliminary
and unaudited)
|
||||||||
|
March
28,
|
March
30,
|
|||||||
|
(In
millions)
|
2008
|
2007
|
||||||
|
Assets
|
||||||||
|
Cash
and cash equivalents
|
$ | 698.9 | $ | 1,050.1 | ||||
|
Receivables,
net of allowance for doubtful accounts
|
4,459.8 | 4,187.4 | ||||||
|
Prepaid
expenses and other current assets
|
1,764.5 | 1,464.0 | ||||||
|
Total
current assets
|
6,923.2 | 6,701.5 | ||||||
|
Property
and equipment, net
|
2,764.6 | 2,539.1 | ||||||
|
Outsourcing
contract costs, net
|
925.4 | 1,029.5 | ||||||
|
Software,
net
|
527.4 | 513.3 | ||||||
|
Goodwill
|
3,975.2 | 2,500.1 | ||||||
|
Other
assets
|
659.0 | 456.7 | ||||||
|
Total
assets
|
$ | 15,774.8 | $ | 13,740.2 | ||||
|
Liabilities
|
||||||||
|
Short-term
debt and current maturities of long-term debt
|
$ | 838.4 | $ | 93.7 | ||||
|
Accounts
payable
|
798.1 | 855.7 | ||||||
|
Accrued
payroll and related costs
|
926.6 | 732.5 | ||||||
|
Other
accrued expenses
|
1,638.7 | 2,014.1 | ||||||
|
Deferred
revenue
|
1,078.5 | 1,025.5 | ||||||
|
Income
taxes payable and deferred income taxes
|
310.0 | 934.6 | ||||||
|
Total
current liabilities
|
5,590.3 | 5,656.1 | ||||||
|
Long-term
debt, net
|
2,635.3 | 1,412.2 | ||||||
|
Income
tax liabilities
|
1,235.6 | |||||||
|
Other
long-term liabilities
|
851.8 | 1,131.9 | ||||||
|
Stockholders'
Equity
|
5,461.8 | 5,540.0 | ||||||
|
Total
liabilities and stockholders' equity
|
$ | 15,774.8 | $ | 13,740.2 | ||||
|
Computer
Sciences Corporation
|
May
21, 2008
|
|||||||
|
Consolidated
Statements of Cash Flows
|
||||||||
|
(preliminary
and unaudited)
|
||||||||
|
Twelve
Months Ended
|
||||||||
|
(In
millions)
|
March
28,
|
March
30,
|
||||||
|
2008
|
2007
|
|||||||
|
Cash
flows from operating activities:
|
||||||||
|
Net
income
|
$ | 544.6 | $ | 397.3 | ||||
|
Adjustments
to reconcile net income to net cash used in operating
activities:
|
||||||||
|
Depreciation
and amortization and other non-cash charges
|
1,281.3 | 963.1 | ||||||
|
Loss/(Gain)
on dispositions
|
2.5 | (23.2 | ) | |||||
|
Changes
in operating assets and liabilities, net of effects of
acquisitions:
|
||||||||
|
Increase
in assets
|
(479.4 | ) | (563.0 | ) | ||||
|
(Decrease)
increase in liabilities
|
(6.1 | ) | 804.4 | |||||
|
Net
cash provided by operating activities
|
1,342.9 | 1,578.6 | ||||||
|
Investing
activities:
|
||||||||
|
Purchases
of property and equipment
|
(876.6 | ) | (685.9 | ) | ||||
|
Acquisitions,
net of cash acquired
|
(1,591.1 | ) | (134.3 | ) | ||||
|
Business
disposition
|
2.8 | |||||||
|
Outsourcing
contracts
|
(165.3 | ) | (112.7 | ) | ||||
|
Software
|
(171.7 | ) | (154.2 | ) | ||||
|
Other
investing activities, net
|
86.0 | 211.6 | ||||||
|
Net
cash used in investing activities
|
(2,718.7 | ) | (872.7 | ) | ||||
|
Financing
activities:
|
||||||||
|
Net
borrowing of commercial paper
|
255.2 | |||||||
|
Borrowings
under lines of credit
|
304.7 | 542.9 | ||||||
|
Repayment
of borrowings under lines of credit
|
(317.0 | ) | (564.4 | ) | ||||
|
Principal
payments on long-term debt
|
(1,440.3 | ) | (40.8 | ) | ||||
|
Proceeds
from debt issuance
|
3,100.0 | |||||||
|
Proceeds
from stock options, and other common stock transactions
|
86.0 | 94.8 | ||||||
|
Excess
tax benefit from stock-based compensation
|
10.7 | 12.1 | ||||||
|
Repurchase
of common stock, net of settlement
|
(1,013.2 | ) | (1,000.0 | ) | ||||
|
Other
financing activities, net
|
11.8 | (0.1 | ) | |||||
|
Net
cash provided by (used in) financing activities
|
997.9 | (955.5 | ) | |||||
|
Effect
of exchange rate changes on cash and cash equivalents
|
26.7 | 9.0 | ||||||
|
Net
decrease in cash and cash equivalents
|
(351.2 | ) | (240.6 | ) | ||||
|
Cash
and cash equivalents at beginning of year
|
1,050.1 | 1,290.7 | ||||||
|
Cash
and cash equivalents at end of period
|
$ | 698.9 | $ | 1,050.1 | ||||
|
Computer
Sciences Corporation
|
May
21, 2008
|
|
Non-GAAP
Financial Measures
|
|
|
The
following tables reconcile Earnings Before Interest, Taxes, and
Depreciation and Amortization (EBITDA); Earnings Before Interest and Taxes
(EBIT); and Free Cash Flow to the most directly comparable financial
measure calculated and presented in accordance with accounting principles
generally accepted in the United States (GAAP). CSC management
believes that these three non-GAAP financial measures provide useful information
to investors regarding the Company's financial condition and results of
operations as they provide another measure of the Company's profitability
and ability to service its debt, and are considered important measures by
financial analysts covering CSC and its peers. Management uses
earnings before special items to evaluate business unit financial
performance and it is one of the measures used in assessing management
performance. One of the limitations associated with the use of
earnings before special items (as compared to reported earnings) is that
it does not reflect the complete financial results of the
Company. CSC compensates for these limitations by providing a
reconciliation between earnings before special items and reported
earnings.
|
|
|
GAAP
Reconciliations
|
||||||||||||||||
|
(In
millions)
|
||||||||||||||||
|
EBITDA
/ EBIT (preliminary and unaudited)
|
Fourth
Quarter Ended
|
Twelve
Months Ended
|
||||||||||||||
|
March
28,
|
March
30,
|
March
28,
|
March
30,
|
|||||||||||||
|
2008
|
2007
|
2008
|
2007
|
|||||||||||||
|
EBITDA
and special items
|
$ | 739.0 | $ | 682.4 | $ | 2,420.6 | $ | 2,164.4 | ||||||||
|
Special
items
|
63.4 | 36.2 | 155.8 | 316.1 | ||||||||||||
|
EBITDA
|
675.6 | 646.2 | 2,264.8 | 1,848.3 | ||||||||||||
|
Depreciation
and amortization
|
320.3 | 284.4 | 1,198.6 | 1,073.6 | ||||||||||||
|
EBIT
|
355.3 | 361.8 | 1,066.2 | 774.7 | ||||||||||||
|
Interest,
net
|
45.0 | 50.0 | 148.3 | 168.4 | ||||||||||||
|
Income
before taxes
|
310.3 | 311.8 | 917.9 | 606.3 | ||||||||||||
|
Taxes
on income
|
128.6 | 57.6 | 373.3 | 209.0 | ||||||||||||
|
Net
income
|
$ | 181.7 | $ | 254.2 | $ | 544.6 | $ | 397.3 | ||||||||
|
Free
Cash Flow (preliminary and unaudited)
|
Twelve
Months Ended
|
|||||||
|
March
28,
|
March
30,
|
|||||||
|
2008
|
2007
|
|||||||
|
Free
cash flow before restructuring
|
$ | 305.6 | $ | 853.2 | ||||
|
Cash
used in restructuring, net of tax
|
130.4 | 181.7 | ||||||
|
Free
cash flow
|
175.2 | 671.5 | ||||||
|
Net
cash used in investing activities
|
2,718.7 | 872.7 | ||||||
|
Acquisitions,
net of cash acquired
|
(1,591.1 | ) | (134.3 | ) | ||||
|
Dispositions
|
2.8 | |||||||
|
Proceeds
from redemption of investment in preferred stock
|
126.5 | |||||||
|
Capital
lease payments
|
40.1 | 39.4 | ||||||
|
Net
cash provided by operating activities
|
$ | 1,342.9 | $ | 1,578.6 | ||||
|
Note:
|
Capital
lease payments and proceeds from the sale of property and equipment
(included in investing activities) are included in the calculation of free
cash flow. Proceeds from the redemption of DynCorp preferred
stock is included in other investing activities and is being excluded from
the calculation of free cash flow.
|
|
Computer
Sciences Corporation
|
May
21, 2008
|
|
Earnings
per Share Reconciliation (preliminary and unaudited)
|
|
|
The
following table is presented to illustrate the impact of the special items
on earnings per share. The earnings per share amounts presented
below include non-GAAP measures. This table should be read in
conjunction with the Consolidated Statements of Income within this release
on which the GAAP earnings per share measures are
presented. Earnings per share before special items provides a
basis for comparing current operating performance to past and future
operating performance. CSC management believes that these
non-GAAP financial measures provide useful information to investors
regarding the Company's financial condition and results of operations as
they provide another measure of the Company's profitability and ability to
service its debt, and are considered important measures by financial
analysts covering CSC and its peers. Management uses earnings
before special items to evaluate business unit financial performance and
it is one of the measures used in assessing management
performance. One of the limitations associated with the use of
earnings before special items (as compared to reported earnings) is that
it does not reflect the complete financial results of the
Company. CSC compensates for these limitations by providing a
reconciliation between earnings before special items and reported
earnings.
|
|
|
Fourth
Quarter Ended
|
||||||||||||||||
|
March
28, 2008
|
March
30, 2007
|
|||||||||||||||
|
EPS
|
EPS
|
|||||||||||||||
|
Amount
|
(diluted)
|
Amount
|
(diluted)
|
|||||||||||||
|
Net
income and EPS (diluted), as reported
|
$ | 181.7 | $ | 1.15 | $ | 254.2 | $ | 1.44 | ||||||||
|
Add
back: Special items
|
45.6 | 0.29 | 25.0 | 0.14 | ||||||||||||
|
Income before special items
|
$ | 227.3 | $ | 1.44 | $ | 279.2 | $ | 1.58 | ||||||||
|
Average
common shares outstanding for diluted EPS
|
157.624 | 176.397 | ||||||||||||||
|
Twelve
Months Ended
|
||||||||||||||||
|
March
28, 2008
|
March
30, 2007
|
|||||||||||||||
|
EPS
|
EPS
|
|||||||||||||||
|
Amount
|
(diluted)
|
Amount
|
(diluted)
|
|||||||||||||
|
Net
income and EPS (diluted), as reported
|
$ | 544.6 | $ | 3.20 | $ | 397.3 | $ | 2.21 | ||||||||
|
Add
back: Special items
|
108.2 | 0.64 | 262.0 | 1.46 | ||||||||||||
|
Income before special items
|
$ | 652.8 | $ | 3.84 | $ | 659.3 | $ | 3.67 | ||||||||
|
Average
common shares outstanding for diluted EPS
|
170.168 | 179.733 | ||||||||||||||
|
Notes:
|
All
amounts are net of taxes.
|
|
Amounts
are in millions except per-share
amounts.
|