Presidio Inc (NASDAQ: PSDO) stock surged over 9.2% on 7 Sep, (as of 10:51 AM GMT-4; Source: Google finance).

During FY 18, the company created shareholder value through investing in the organic solutions set, executing on the tuck-in M&A strategy, deleveraging, and,taking capital structure actions to further bolster the strong free cash flow profile. During the FY 18, the compaany generated $123 million of free cash flow and used it for two things. First, the company announced a quarterly dividend program of $0.04 per share. Second, PSDO have entered into an agreement to repurchase 10,750,000 shares from Apollo. At year end, cash and cash equivalents were $37.0 million, total long-term debt was $686.6 million comprised entirely of the term loan facility (excluding debt issuance costs), and total net debt was $649.6 million (defined as total long-term debt less cash and cash equivalents), representing 2.9x net total leverage. As of June 30, 2018, PSDO had firm, executed backlog of $582 million, up 16% over the prior year, driven by strong growth in both Product and Service. Sequentially, the firm, executed backlog increased 10% over Q3.

PSDO in the fourth quarter of FY 18 has reported the adjusted earnings per share of 33 cents, beating the analysts’ estimates for the adjusted earnings per share of 32 cents. The company had reported the adjusted revenue growth of 5 percent to $729.3 million in the fourth quarter of FY 18, missing the analysts’ estimates for revenue of $756.82 billion. Revenue growth in the fourth quarter was driven by Digital Infrastructure solutions growth of 13.5%, where increased traction for next generation software defined infrastructure with automation and analytics led to increased sales of network upgrades. Cloud revenue decreased 22.7% and security revenue was flat with prior year. Cloud revenue was impacted by shifting of revenue recognition from a point in time to a period over the life of the contract with the customer as our revenue base continues to migrate to multi-year, recurring revenue contracts vs. point in time sales.

For FY 19, PSDO expect total revenue to be between $2,850 million to $2,900 million (compared to $2,765.2 million for fiscal 2018), which would represent Total Revenue growth of 3% to 5%. The company anticipate revenue growth in the first quarter of fiscal 2019 being on the low end of the full year guidance, and revenue growth in the second quarter of fiscal 2019 being on the high end of the full year guidance. For FY 18, adjusted EBITDA margin to be approximately 8%, Pro Forma Diluted EPS growth in the low double digit range excluding the accretion from the share repurchase, or growth in the mid to high teens including the impact of the share repurchase. Free Cash Flow is expected to be $30 million per quarter, but may be impacted by public cloud resale and managed services investments, as well as any tuck-in acquisitions funded through free cash flow.