SAIC Presents Planned Company's Business and Financial Objectives at Investor Day SENIOR MANAGEMENT INTRODUCES POST-SPIN TECHNICAL, ENGINEERING AND ENTERPRISE INFORMATION TECHNOLOGY SERVICES AND SOLUTIONS BUSINESS
Public Company Information:
SAIC, Inc. (NYSE: SAI) today held an Investor Day event in New York City in which the senior leadership team of the planned spin-off company, Science Applications International Corp. (SAIC), presented its business plans and financial objectives.
SAIC, Inc. previously announced plans to create two independent, publicly traded companies. Upon completion of the planned spin-off transaction, the technical, engineering and enterprise IT services business will retain the name SAIC and trade under (NYSE: SAIC), while the government and commercial solutions company will be named Leidos and trade under (NYSE: LDOS).
CEO-designate Tony Moraco detailed new SAIC's redesign to potential shareholders and said that following the separation, the company will more effectively pursue new and existing market opportunities without the constraints of organizational conflicts of interest (OCI).
"We have transformed new SAIC to be a more streamlined organization and better aligned with our customers' critical missions," Moraco said. "We will leverage the full potential of our technical engineering and enterprise IT offerings and expertise to position our enterprise for enduring success. We are a leading technology integrator providing full lifecycle services and solutions to the markets we serve."
Scale and Contract Diversity Deliver Value
With approximately $4 billion in revenues and 14,000 employees, SAIC will have a balanced distribution of revenue sources, more than 1,500 contracts and task orders, and will be a prime contractor on 91 percent of its contracts.
Following the separation, SAIC will have a capital structure with more than $225 million in cash and $500 million in debt with a five-year term as well as access to a five-year, $200 million revolving credit facility.
"Through operating income improvement and strong, predictable cash flow generation, we intend to execute an effective and disciplined capital deployment strategy to deploy excess cash, all designed to maximize shareholder value," said CFO-designate John Hartley.
Growth Opportunities Unconstrained by OCI
Without the constraints of OCI, SAIC will be able to access an estimated $25 billionin new market opportunities, for a total addressable market of $185 billion post-spin.
"SAIC will sustain and protect its current customer base and drive organic growth by expanding offerings to existing customers and growing in adjacent markets," said Nazzic Keene, president of the Enterprise IT Sector.
"The company's new operating model is organized to sell and deliver SAIC's full enterprise capabilities through one team, combined with a new focus on services and solutions, and targeted investments," Keene continued. "This separation transaction has given us a unique opportunity to optimize SAIC to better serve our customers in a more efficient organizational structure that we expect will yield improved financial results for our shareholders and opportunities for our employees."
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