OIL & GAS

CACI International Inc, a leading information technology and network solutions provider to the federal government, announced today record results for its third fiscal quarter and nine months ending March 31, 2004. Net income for the third quarter of Fiscal Year 2004 (FY04) increased 38 percent, while revenue was up 30 percent compared to the third quarter of Fiscal Year 2003 (FY03). For the first nine months of FY04, net income was up 37 percent, while revenue was up 28 percent versus a year ago. The increase in earnings and revenue in the quarter and for the first nine months of FY04 resulted from continuing growth in CACI's systems integration, engineering services, and knowledge management offerings of its domestic operations. This growth is a result of the company's strategic focus on national security, the global war on terrorism, and the reshaping of the way government agencies communicate, use and disseminate information, deliver services, and conduct business. Third Quarter Margin Increase Driven by Operational Efficiencies and Mix of Business Net income for the third quarter of FY04 was $15.8 million, or $0.53 per diluted share, an increase of 38 percent over net income of $11.5 million, or $0.39 per diluted share, reported in the third quarter of FY03. Revenue for the quarter was $288.4 million, an increase of 30 percent over third quarter FY03 revenue of $222.0 million. Operating income in the quarter was $25.2 million, an increase of 41 percent over third quarter FY03 operating income of $17.9 million. For the third quarter, the operating margin increased to 8.7 percent from 8.0 percent a year earlier. The increased operating margin was driven primarily by continued operational efficiencies and a favorable mix of business. The growth of the company's operations, including recent acquisitions, continued to be driven by increased demand for mission-critical support for intelligence community customers, systems integration, engineering and logistics, and knowledge management support for the Department of Defense (DoD) and civilian agencies. Internal revenue growth for the company for the quarter was 11 percent. Third Quarter Highlights The following highlights occurred during the third fiscal quarter: * Contract awards for the quarter totaled approximately $395 million. * Operating cash flow for the quarter improved by $25.9 million. * Revenue from DoD customers increased 37 percent, driven primarily by higher demand from customers such as strategic and tactical organizations in the military intelligence community, the U.S. Army's Intelligence and Security Command, the U.S. Navy's Chief of Naval Aviation, and the Naval Surface Warfare Command. * Federal civilian agency revenue grew 17 percent primarily from higher volumes of work for customers such as the Department of Justice, the Securities and Exchange Commission, and other federal civilian agencies. * The acquisition of CMS Information Services, Inc. (CMS), which closed on March 1, 2004, broadens CACI's expertise in network solutions, financial management systems, and software engineering and integration. * The agreement to purchase the assets of the Defense and Intelligence Business Group of American Management Systems (AMS), with estimated revenue of $250 million in calendar year 2003, was announced. Nine Months FY04 Results Continue to Reflect Increasing Profitability and Growth in Key Areas Net income for the first nine months of FY04 was $43.0 million, or $1.44 per diluted share, an increase of 37 percent over net income of $31.4 million, or $1.07 per diluted share, reported for the first nine months of FY03. For the first nine months of FY04, revenue increased 28 percent, to $787.5 million, compared with $614.5 million reported in the same period of FY03. Operating income for the first nine months of FY04 was $69.0 million, up 40 percent over operating income of $49.3 million reported a year earlier. The operating margin in the first nine months of FY04 improved to 8.8 percent from 8.0 percent a year earlier. The higher operating margin was driven primarily by operational cost efficiencies, cost synergies associated with acquisitions, and a favorable mix of business. Revenue growth was driven by increased demand from federal government customers, such as those noted in the third quarter above. Internal revenue growth was 12 percent for the first nine months of the company's FY04. Commentary Commenting on the results, Dr. J.P. London, CACI's Chairman, President, and Chief Executive Officer, said, "Our trailing twelve months revenue exceeded $1 billion for the first time in CACI's history. We are extremely pleased to have surpassed this goal one year ahead of our original plan. Our third quarter results were driven by our focus on national priorities and the influx of mission critical work we have been experiencing since the beginning of this fiscal year. Worldwide, we continued to increase the number of CACI employees who directly support our clients. Over ten percent of our employees are located outside of the United States. We expanded our operating margins relative to last year. We saw our operating cash flow improve significantly. We announced contract awards with long-term clients as well as an award with new clients in the Social Security Administration as a result of our acquisition of CMS on March 1, 2004. Finally, we announced that we are working on the largest acquisition in CACI's 42-year history: the purchase of the defense and intelligence business of American Management Systems, which will rapidly expand our presence in the Department of Defense and intelligence community going forward." Dr. London continued, "Looking ahead to the final quarter of our FY04, we anticipate a successful completion of the AMS transaction. Having had the opportunity to personally meet several of their key customers and a large number of their employees, we are very enthusiastic in welcoming them to the CACI team. The AMS transaction is a major step toward CACI's stated goal of becoming a $2 billion enterprise by our Fiscal Year 2008, with increasing value to our shareholders. With our current revenue run rate and the AMS transaction in place, we anticipate that CACI's Fiscal Year 2005 (FY05) revenue should approach $1.5 billion, and that we should be able to continue to enhance our profit margins. We believe that through the combination of our growing base of business and this transaction we can continue to deliver enhanced value to our clients and to our shareholders." Update on Purchase of Defense and Intelligence Business Group of American Management Systems Progress has been made toward a near term closing of CACI's acquisition of the Defense and Intelligence Group of AMS. Sufficient shares have been tendered to CGI, Inc. to ensure that CGI will acquire control of AMS, and CGI has extended its offer until late April in an effort to capture at least 90% of all shares outstanding. Both CACI and CGI have passed the Hart Scott Rodino regulatory hurdle without comment from regulators. The companies now are awaiting the close of the extended tender offer period and receipt of Exon-Florio approval before CACI's acquisition can be closed. Company Guidance Increased for Remainder of FY04 The company also increased its guidance for its full year FY04, and issued updated guidance for its fourth fiscal quarter. This guidance excludes any revenue or income from the pending purchase of the Defense and Intelligence Business Group of AMS. The table below summarizes the guidance ranges for each of those periods and shows the change over the same periods in FY03: (In millions except for earnings per share) Q4'04 Change Total FY'04 Change Revenue $295-$305 29%-33% $1,083-$1,093 28%-30% Net Income $16.5-$17.1 24%-29% $59.5-$60.1 33%-34% Diluted earnings per share $0.55-$0.57 22%-27% $1.99-$2.01 31%-32% Diluted weighted average shares 30.1 29.9 Investors are reminded that actual results may differ from these estimates for the reasons described at the end of this release. Conference Call Information The company has scheduled a conference call for 8:30 AM Eastern time Thursday, April 22nd, during which management will be making a brief presentation focusing on third quarter results, operating trends and its expectations. A question-and-answer session will follow to allow further discussion of the results and the company's future expectations. Interested parties can listen to the conference call and view the accompanying exhibits over the Internet by logging on to CACI's Internet site at www.caci.comat the scheduled time. A replay of the call will also be available over the Internet beginning at 1:00 PM Eastern time Thursday, April 22nd, and can be accessed through CACI's homepage (www.caci.com) by clicking on the CACI Investor Info button. CACI International Inc provides the IT and network solutions needed to prevail in today's new era of defense, intelligence, and e-government. From systems integration and managed network solutions to knowledge management, engineering, simulation, and information assurance, we deliver the IT applications and infrastructures our federal customers use to improve communications and collaboration, secure the integrity of information systems and networks, enhance data collection and analysis, and increase efficiency and mission effectiveness. Our solutions lead the transformation of defense and intelligence, assure homeland security, enhance decision-making, and help government to work smarter, faster, and more responsively. CACI, a member of the Russell 2000 and S&P SmallCap 600 indices, provides dynamic careers for approximately 7,600 employees working in over 100 offices in the U.S. and Europe. CACI is the IT provider for a networked world. Visit CACI on the web at www.caci.com. Summary Financial Tables CACI International Inc Consolidated Statements of Operations (Amounts in thousands, except per share amounts) Quarter Ended Nine Months Ended 03/31/2004 03/31/2003 03/31/2004 03/31/2003 (Unaudited)(Unaudited)(Unaudited)(Unaudited) Revenue $288,411 $222,016 $787,507 $614,505 Costs and Expenses Direct costs 179,440 139,427 488,729 380,038 Indirect costs and selling expenses 79,377 61,696 217,441 176,398 Depreciation and amortization 4,382 3,040 12,384 8,730 Operating expenses 263,199 204,163 718,554 565,166 Operating income 25,212 17,853 68,953 49,339 Interest income (212) (477) (631) (958) Income before income taxes 25,424 18,330 69,584 50,297 Income taxes 9,662 6,872 26,592 18,863 Net income $15,762 $11,458 $42,992 $31,434 Basic earnings per share $0.54 $0.40 $1.48 $1.10 Diluted earnings per share $0.53 $0.39 $1.44 $1.07 Weighted average shares used in per share computations: Basic 29,126 28,718 29,022 28,620 Diluted 29,935 29,461 29,875 29,420 Statement of Operations Margin Data Quarter Ended Nine Months Ended 03/31/2004 03/31/2003 03/31/2004 03/31/2003 Gross profit margin 37.8% 37.2% 37.9% 38.2% Operating profit margin 8.7% 8.0% 8.8% 8.0% Net profit margin 5.5% 5.2% 5.5% 5.1% CACI International Inc Condensed Consolidated Balance Sheets (Amounts in thousands) 03/31/2004 06/30/2003 (Unaudited) ASSETS: Current assets Cash and cash equivalents $22,634 $73,735 Marketable securities 576 15,291 Accounts receivable, net Billed 247,293 179,202 Unbilled 20,691 18,891 Total accounts receivable, net 267,984 198,093 Other current assets 11,693 10,791 Total current assets 302,887 297,910 Property and equipment, net 20,271 18,634 Goodwill & intangible assets, net 263,600 218,708 Other 36,359 26,798 Total assets $623,117 $562,050 LIABILITIES & SHAREHOLDERS' EQUITY: Current liabilities Notes payable $1,632 $4,558 Accounts payable 16,332 20,739 Accrued compensation & benefits 54,271 44,460 Other current liabilities 40,182 45,568 Total current liabilities 112,417 115,325 Notes payable, long-term 880 - Postretirement obligations 23,017 14,619 Other long-term liabilities 8,545 10,571 Shareholders' equity 478,258 421,535 Total liabilities & shareholders' equity $623,117 $562,050 CACI International Inc Condensed Consolidated Statements of Cash Flows (Amounts in thousands) Nine Months Ended 03/31/2004 03/31/2003 (Unaudited) (Unaudited) CASH FLOWS FROM OPERATING ACTIVITIES: Net income $42,992 $31,434 Reconciliation of net income to net cash provided by operating activities Depreciation and amortization 12,384 8,730 Provision (benefit) for deferred income taxes (3,173) 1,796 Changes in operating assets and liabilities, net of effect of business acquisitions Accounts receivable, net (39,830) (23,497) Other current assets (5,650) (4,441) Accounts payable and accrued expenses (707) 13,578 Accrued compensation & benefits 6,142 3,559 Other current liabilities (6,568) 2,944 Other liabilities 7,426 4,359 Net cash provided by operating activities 13,016 38,462 CASH FLOWS FROM INVESTING ACTIVITIES: Acquisitions of property & equipment (5,598) (6,341) Purchases of businesses, net of cash acquired (79,014) (55,357) Proceeds from sales of marketable securities, net 15,228 4,753 Other assets (2,133) 993 Net cash used in investing activities (71,517) (55,952) CASH FLOWS FROM FINANCING ACTIVITIES: Payments under line-of-credit - (25,000) Proceeds from stock options exercised 6,911 3,422 Net proceeds from stock purchase plans 2,416 - Purchase of common stock for treasury (3,667) (105) Net cash provided by (used in) financing activities 5,660 (21,683) Effect of exchange rates on cash and equivalents 1,740 783 Net decrease in cash and equivalents (51,101) (38,390) Cash and equivalents, beginning of period 73,735 131,049 Cash and equivalents, end of period $22,634 $92,659 Revenue by Customer Type Quarter Ended (dollars in thousands) 03/31/2004 03/31/2003 $Change %Change Department of Defense $195,390 67.7% $142,557 64.2% $52,833 37.1% Federal Civilian Agencies 74,092 25.7% 63,218 28.5% 10,874 17.2% Commercial 14,739 5.1% 12,526 5.6% 2,213 17.7% State and Local Government 4,190 1.5% 3,715 1.7% 475 12.8% Total $288,411 100.0% $222,016 100.0% $66,395 29.9% Nine Months Ended (dollars in thousands) 03/31/2004 03/31/2003 $Change %Change Department of Defense $517,052 65.7% $391,341 63.7% $125,711 32.1% Federal Civilian Agencies 218,837 27.8% 173,868 28.3% 44,969 25.9% Commercial 39,417 5.0% 39,386 6.4% 31 0.1% State and Local Government 12,201 1.5% 9,910 1.6% 2,291 23.1% Total $787,507 100.0% $614,505 100.0% $173,002 28.2%