Computer Sciences Corporation

November 11, 2003

 

Revenues by Market Sector
Consolidated Statements of Income
Summarized Balance Sheet and Additional Information
GAAP Reconciliations

Revenues by Market Sector

(unaudited)

 
   

                                 Second Quarter Ended                                 

   

Oct. 3,

 

Sept. 27,

 

               % of Total               

(In millions)

 

      2003      

 

      2002      

 

 Fiscal 2004 

 

 Fiscal 2003 

                 

    U.S. commercial

 

$   932.0   

 

$   950.1   

 

26%     

 

35%     

    Europe

 

851.9   

 

703.5   

 

24        

 

26        

    Other international

 

        288.1   

 

        294.8   

 

          8        

 

        11        

Global commercial

 

     2,072.0   

 

     1,948.4   

 

        58        

 

        72        

                 

    Department of Defense

 

984.6   

 

449.3   

 

27        

 

16        

    Civil agencies

 

        534.6   

 

        322.4   

 

        15        

 

        12        

U.S. federal government

 

     1,519.2   

 

        771.7   

 

        42        

 

        28        

                 
   

$3,591.2   
=========

 

$2,720.1   
=========

 

100%     
=========

 

100%     
=========

   


                                    Six Months Ended                                    

   

Oct. 3,

 

Sept. 27,

 

               % of Total               

(In millions)

 

      2003      

 

      2002      

 

 Fiscal 2004 

 

 Fiscal 2003 

                 

    U.S. commercial

 

$1,894.1   

 

$1,946.2   

 

27%     

 

36%     

    Europe

 

1,671.1   

 

1,382.3   

 

23        

 

25        

    Other international

 

        581.4   

 

        582.3   

 

          8        

 

        11        

Global commercial

 

     4,146.6   

 

     3,910.8   

 

        58        

 

        72        

                 

    Department of Defense

 

1,889.2   

 

921.8   

 

26        

 

17        

    Civil agencies

 

     1,110.2   

 

        641.2   

 

        16        

 

        11        

U.S. federal government

 

     2,999.4   

 

     1,563.0   

 

        42        

 

        28        

                 
   

$7,146.0   
=========

 

$5,473.8   
=========

 

100%     
=========

 

100%     
=========

                 

Note:

The table presents revenue by market sector. Revenue by operating segment will be presented in the Company's Quarterly Report on Form 10-Q.

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Computer Sciences Corporation

November 11, 2003

 

 

Consolidated Statements of Income

 

 

 

 

 

 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Second Quarter Ended

 

    Six Months Ended    

 

Oct. 3,

 

Sept. 27,

 

Oct. 3,

 

Sept. 27,

(In millions except per-share amounts)

   2003   

 

   2002*  

 

  2003   

 

  2002*  

 

 

 

 

 

 

 

 

Revenues*

$3,591.2 

 

$2,720.1 

 

$7,146.0 

 

$5,473.8 

 

 

 

 

 

 

 

 

Costs of services*

2,958.6 

 

2,185.1 

 

5,890.3 

 

4,416.8 

 

 

 

 

 

 

 

 

Selling, general and administrative*

199.9 

 

174.3 

 

408.6 

 

356.9 

 

 

 

 

 

 

 

 

Depreciation and amortization*

229.0 

 

197.5 

 

464.0 

 

393.1 

 

 

 

 

 

 

 

 

Interest expense

40.5 

 

35.7 

 

83.6 

 

70.0 

 

 

 

 

 

 

 

 

Interest income

(1.4)

 

(2.0)

 

(4.4)

 

(3.7)

 

 

 

 

 

 

 

 

Special items

         9.2 

 

               

 

       15.4 

 

               

 

 

 

 

 

 

 

 

Total costs and expenses

  3,435.8 

 

  2,590.6 

 

  6,857.5 

 

  5,233.1 

 

 

 

 

 

 

 

 

Income before taxes

155.4 

 

129.5 

 

288.5 

 

240.7 

 

 

 

 

 

 

 

 

Taxes on income

       47.3 

 

       36.6 

 

       88.1 

 

       68.8 

 

 

 

 

 

 

 

 

Net income

$  108.1 
======

 

$    92.9 
======

 

$  200.4 
======

 

$  171.9 
======

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Basic

$    0.58 
======

 

$    0.54 
======

 

$    1.07 
======

 

$    1.00 
======

 

 

 

 

 

 

 

 

     Diluted

$    0.57 
======

 

$    0.54 
======

 

$    1.06 
======

 

$    1.00 
======

 

 

 

 

 

 

 

 

* Figures have been adjusted to conform to CSC's current presentation.

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Computer Sciences Corporation

November 11, 2003

 

Summarized Balance Sheet and Additional Information

(unaudited)

 

 

 

 

 

 

 

 

October 3,

 

March 28,

(In millions)

       2003       

 

       2003       

Assets

 

 

 

  Cash and cash equivalents

$    199.1   

 

$    299.6   

  Receivables

3,450.8   

 

3,320.2   

  Other current assets

           608.8   

 

           468.3   

      Total current assets

        4,258.7   

 

        4,088.1   

 

 

 

 

  Property and equipment, net

2,110.4   

 

1,987.6   

  Outsourcing contract costs, net

948.2   

 

923.5   

  Software, net

364.7   

 

355.6   

  Excess of cost of businesses acquired over related net assets, net

2,590.5   

 

2,507.3   

  Other assets

           594.7   

 

           571.1   

      Total assets

 $10,867.2   
==========

 

 $10,433.2   
==========

 

 

 

 

  Short-term debt and current maturities of long-term debt

208.2   

 

274.8   

  Accounts payable and accrued expenses

2,151.6   

 

2,272.0   

  Deferred revenue

222.9   

 

222.6   

  Income taxes payable

           282.0   

 

           217.8   

      Total current liabilities

        2,864.7   

 

        2,987.2   

 

 

 

 

  Long-term debt, net

2,340.5   

 

2,204.9   

  Other long-term liabilities

690.5   

 

634.7   

 

 

 

 

  Stockholders' equity

        4,971.5   

 

        4,606.4   

 

 

 

 

      Total liabilities and stockholders' equity

$10,867.2   
==========

 

$10,433.2   
==========

 

 

 

 

  Debt as a percentage of total capitalization

33.9%   

 

35.0%   


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Computer Sciences Corporation

November 11, 2003

 

The following tables reconcile Earnings Before Interest, Taxes, Depreciation and Amortization, and Special Items ("EBITDA and Special Items"); Earnings Before Interest and Taxes ("EBIT"); and Free Cash Flow to the most directly comparable financial measure calculated and presented in accordance with U.S. Generally Accepted Accounting Principles ("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.

 

 

 

 

 

 

 

 

GAAP Reconciliations

 

 

 

 

 

 

 

(In millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA / EBIT (unaudited)

 Second Quarter Ended 

 

     Six Months Ended     

 

Oct. 3,

 

Sept. 27,

 

Oct. 3,

 

Sept. 27,

 

     2003     

 

     2002     

 

     2003     

 

     2002     

EBITDA and Special Items

$ 432.7    

 

$ 360.7    

 

$ 847.1    

 

$ 700.1    

    Special Items

         9.2    

 

                  

 

       15.4    

 

                  

EBITDA

423.5    

 

360.7    

 

831.7    

 

700.1    

    Depreciation and Amortization

     229.0    

 

     197.5    

 

     464.0    

 

     393.1    

EBIT

194.5    

 

163.2    

 

367.7    

 

307.0    

    Interest, net

       39.1    

 

       33.7    

 

       79.2    

 

       66.3    

Income Before Taxes

155.4    

 

129.5    

 

288.5    

 

240.7    

    Income Taxes

       47.3    

 

       36.6    

 

       88.1    

 

       68.8    

Net Income

$ 108.1    
=======  

 

$   92.9    
=======  

 

$ 200.4    
=======  

 

$ 171.9    
=======  

 

 

 

 

 

 

 

 

Net Income as a percent of revenue

3.0%    

 

3.4%    

 

2.8%    

 

3.1%    

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Free Cash Flow (unaudited)

 

 

     Six Months Ended     

 

 

 

 

 

Oct. 3,

 

Sept. 27,

 

 

 

 

 

     2003     

 

     2002     

Free Cash Flow

 

 

 

 

$(195.3)   

 

$(168.6)   

Cash flows used in investing activities

 

 

 

 

562.1    

 

360.3   

Acquisition, net of cash acquired

 

 

 

 

 

 

(7.7)   

Dispositions

 

 

 

 

       10.2    

 

       73.6    

Cash flows provided by operating activities

 

 

 

 

$ 377.0    
=======  

 

$ 257.6    
=======  


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