2014 CACI International Stockholders Meeting CEO Overview
Ladies and gentlemen, fellow shareholders, welcome to CACI International's FY 2014 Annual Stockholders Meeting.
In Fiscal Year '14, we continued to execute on our three-part growth strategy: to win new business, deliver operational excellence to our customers, and deploy our capital for future growth through our M&A program. I am pleased to report that our execution of this strategy has been excellent, and our performance gives us confidence for the future.
We are winning significant new business in our $200 billion-plus addressable market. We continue to deliver strong program performance to our customers, and are closely aligned to our 10 market areas.
When I became CEO of CACI, I made winning new business my top priority. Winning new business is still my top priority. And I am pleased to announce that the investments we have been making in business development - in building a new team, refining our shot selection to fewer bids that have higher financial and strategic value - have been paying off. Throughout 2014, we had higher contract awards each quarter, year over year. Furthermore, we have been increasing the amount of higher-margin solutions business that we pursue.
One of the things that distinguishes CACI from its competitors in the marketplace is our delivery of operational excellence. We believe that it matters to our customers who they do business with, and that they want to do business with a company that has a reputation for integrity, commitment, and quality. Let me share an example of what I mean. In the first quarter of 2015, the Office of Personnel Management (OPM) decided to significantly expand the volume of background investigations that we perform. We have supported OPM in this critical national security mission since 2004, and their decision reflects the trust we've earned through a decade of stellar performance and our reputation for integrity and ethical service.
We are not content to rest on our reputation, though, and we continue to strive to improve our operation. Every investment we make that helps us deliver greater value to our customers, whether through better cost control, innovative solutions, or just plain good character, helps us win new business and retain the business we have.
The third part of our growth strategy, our mergers and acquisitions program, continues to serve us very well. In FY14 we completed the largest and most complex acquisition in CACI's history: Six3 Systems, which is now fully integrated into our core business. Six3's capabilities continue to impress us with their creativity and innovation. We are excited by the opportunities they open up to better serve new and existing customers in the electronic warfare, signals intelligence, and cyber market space.
Our customers, particularly our military and Intelligence Community customers, face a highly adaptive threat environment, from both peer and asymmetric adversaries. Asymmetric warfare, including the cyber attacks against critical infrastructure that we seem to read about every week, is a very real threat. Six3 completes CACI's command of the electromagnetic spectrum and cyber warfare that is crucial to our military and intelligence customers. The capabilities that the combination of Six3 and CACI can provide are why we continue to see significant, differentiated growth potential from Six3.
Although we have performed well, and are always looking for new opportunities, it is important to remember that we are still operating in an uncertain market environment. Sequestration is still the law of the land. Unless the new Congress repeals or changes the law, sequestration will come back into full force next October. That said, our customers still have missions to complete, even with constrained resources. We stand ready to meet their requirements for innovative, high-end solutions, services, and products, as we have for 53 years.
As a result of the successful execution of our growth strategy under challenging conditions, CACI's FY14 performance reflected our ability to adapt to an uncertain market environment. We won a significant amount of business and secured solid contract funding, achieved high levels of operational excellence, and completed the integration of an acquisition that has expanded our competitive advantage and positioned us for future growth.
Also in FY14, we continued to receive recognition for our performance. Our strong culture of innovation, good character, and dedication to our customers' vital missions contributed to Fortune magazine recognizing us as one of the "Most Admired Companies" for 2014 in both our industry and in Virginia, where we have our headquarters. We were also named a top employer for veterans by two leading publications: Forbes and Army Times. We are very proud of these recognitions. They are a testament to our culture, but also to our longstanding support to America's military men and women both in and out of uniform.
Looking ahead, we are confident in the strategy that we have been executing for the last two years. The results of the first quarter of 2015 bear out our confidence. We had record contract awards for the quarter across all 10 of our markets, and also received significant contract funding orders. We expanded our workforce, hiring more background investigators to meet the requirements of the additional OPM work we will be supporting.
Overall, we are pleased with our execution on our growth strategy. We continue to demonstrate that we are able to meet the challenges of new market realities, enhance our customers' capabilities, win business, and position ourselves with solid competitive advantages in all our markets. I am confident we will continue to deliver shareholder value in FY15 and beyond.
Finally, I would like to thank the more than 16,000 men and women of CACI for their hard work and outstanding performance. Their commitment to CACI's culture of good character and ethics is essential to our pursuit of excellence for our customers, our company, and you, our shareholders.
Now, here is John Mengucci to provide our operational highlights.