- Revenue:
$634 million for the fourth quarter and$2.55 billion for the year - EBITDA Margin: 9.8% for the fourth quarter and 10.3% for the year
- Diluted EPS:
$0.73 for the fourth quarter and$3.35 for the year - Adjusted Diluted EPS:
$0.83 for the fourth quarter and$3.71 for the year - Book-to-
Bill Ratio : 0.9 for the fourth quarter and 1.1 for the year - Cash Flow from Operations:
$212 million for the year (1.5 times Net Income) - Raises quarterly cash dividend from
$0.38 by 8% to$0.41 per share
"As a result of our team's steadfast commitment to the success of our customers, we further solidified
Summary Operating Results
Three Months Ended | Year Ended | ||||||
(In Millions Except Per Share Amounts) | 2021 | 2020 | 2021 | 2020 | |||
Revenues | |||||||
Operating Income | |||||||
Net Income | |||||||
Diluted EPS | |||||||
Non-GAAP Financial Measures* | |||||||
EBITDA | |||||||
EBITDA Margin | 9.8% | 9.3% | 10.3% | 9.1% | |||
Adjusted Net Income | |||||||
Adjusted Diluted EPS |
*Information about
Revenues were
Operating income was
EBITDA was
Fourth quarter declines in net income, adjusted net income, diluted earnings per share ("EPS") and adjusted diluted EPS were driven by a higher tax rate as a result of several discrete factors.
Net income was
Adjusted net income was
Cash Management and Capital Deployment
For the year, cash flow from operations totaled
During the quarter, the Company paid
The Board of Directors has declared a quarterly dividend of
Contract Awards
Contract awards (bookings) totaled
The Company's backlog of business at the end of the year was a record
Forward Guidance
The Company expects to achieve revenue, adjusted net income and adjusted diluted earnings per share in 2022 as specified in the table below.
Measure | Fiscal 2022 Guidance |
Revenue (billion) | |
Adjusted Net Income* (million) | |
Adjusted Diluted EPS* |
*Information about
Adjusted net income and adjusted diluted EPS exclude amortization of acquired intangibles and the related tax impact. The Company does not provide a reconciliation of forward-looking adjusted net income and adjusted diluted EPS, due to inherent difficulty in forecasting and quantifying these non-GAAP exclusions that are necessary for such reconciliation without unreasonable efforts. Material changes to any one of these items could have significant effect on future GAAP results.
Conference Call
About
ManTech provides mission-focused technology solutions and services for
Forward-Looking Information
Statements and assumptions made in this press release, which do not address historical facts, constitute “forward-looking” statements that
These forward-looking statements are inherently subject to risks and uncertainties, and actual results and outcomes may differ materially from the results and outcomes we anticipate. Factors that could cause actual results to differ materially from the results we anticipate include, but are not limited to, the following: failure to maintain our relationship with the
The forward-looking statements included herein are only made as of the date of this press release, and
CONSOLIDATED BALANCE SHEETS
(In Thousands Except Share and Per Share Amounts)
(unaudited) | |||||||
2021 | 2020 | ||||||
ASSETS | |||||||
Cash and cash equivalents | $ | 53,374 | $ | 41,193 | |||
Receivables—net | 476,035 | 400,621 | |||||
Prepaid expenses | 32,600 | 26,243 | |||||
Taxes receivable—current | 22,140 | 21,968 | |||||
Other current assets | 13,372 | 6,354 | |||||
Total Current Assets | 597,521 | 496,379 | |||||
1,498,988 | 1,237,894 | ||||||
Other intangible assets—net | 265,555 | 202,231 | |||||
Property and equipment—net | 133,297 | 121,296 | |||||
Operating lease right of use assets | 75,319 | 94,825 | |||||
Employee supplemental savings plan assets | 43,342 | 37,848 | |||||
Investments | 11,555 | 11,549 | |||||
Other assets | 13,988 | 11,642 | |||||
TOTAL ASSETS | $ | 2,639,565 | $ | 2,213,664 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
LIABILITIES | |||||||
Accounts payable | $ | 169,140 | $ | 142,360 | |||
Accrued salaries and related expenses | 129,685 | 123,953 | |||||
Contract liabilities | 36,197 | 37,218 | |||||
Operating lease obligations—current | 32,557 | 30,105 | |||||
Accrued expenses and other current liabilities | 9,649 | 15,177 | |||||
Total Current Liabilities | 377,228 | 348,813 | |||||
Long term debt | 300,000 | 15,000 | |||||
Deferred income taxes | 174,060 | 141,638 | |||||
Operating lease obligations—long term | 63,575 | 80,242 | |||||
Accrued retirement | 36,053 | 36,310 | |||||
Other long-term liabilities | 13,229 | 12,249 | |||||
TOTAL LIABILITIES | 964,145 | 634,252 | |||||
COMMITMENTS AND CONTINGENCIES | |||||||
STOCKHOLDERS' EQUITY | |||||||
Common stock, Class A—$0.01 par value; 150,000,000 shares authorized; 27,863,041 and 27,538,474 shares issued at | 279 | 275 | |||||
Common stock, Class B—$0.01 par value; 50,000,000 shares authorized; 13,176,695 and 13,176,695 shares issued and outstanding at | 132 | 132 | |||||
Additional paid-in capital | 566,573 | 545,717 | |||||
(9,158 | ) | (9,158 | ) | ||||
Retained earnings | 1,117,867 | 1,042,676 | |||||
Accumulated other comprehensive loss | (273 | ) | (230 | ) | |||
TOTAL STOCKHOLDERS' EQUITY | 1,675,420 | 1,579,412 | |||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 2,639,565 | $ | 2,213,664 | |||
CONSOLIDATED STATEMENTS OF INCOME
(In Thousands Except Per Share Amounts)
(unaudited) | (unaudited) | ||||||||||||||
Three months ended | Year Ended | ||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||
REVENUES | $ | 634,333 | $ | 638,784 | $ | 2,553,956 | $ | 2,518,384 | |||||||
Cost of services | 542,755 | 541,027 | 2,174,545 | 2,138,791 | |||||||||||
General and administrative expenses | 49,118 | 57,533 | 192,595 | 221,544 | |||||||||||
OPERATING INCOME | 42,460 | 40,224 | 186,816 | 158,049 | |||||||||||
Interest expense | (1,063 | ) | (303 | ) | (2,389 | ) | (1,900 | ) | |||||||
Interest income | 13 | 20 | 128 | 247 | |||||||||||
Other income (expense), net | (52 | ) | 52 | (277 | ) | 1 | |||||||||
INCOME FROM OPERATIONS BEFORE INCOME TAXES AND EQUITY METHOD INVESTMENTS | 41,358 | 39,993 | 184,278 | 156,397 | |||||||||||
Provision for income taxes | (11,515 | ) | (7,828 | ) | (47,541 | ) | (35,865 | ) | |||||||
Equity in earnings (losses) of unconsolidated subsidiaries | 281 | (1 | ) | 280 | (2 | ) | |||||||||
NET INCOME | $ | 30,124 | $ | 32,164 | $ | 137,017 | $ | 120,530 | |||||||
BASIC EARNINGS PER SHARE: | |||||||||||||||
Class A common stock | $ | 0.74 | $ | 0.80 | $ | 3.37 | $ | 2.99 | |||||||
Class B common stock | $ | 0.74 | $ | 0.80 | $ | 3.37 | $ | 2.99 | |||||||
DILUTED EARNINGS PER SHARE: | |||||||||||||||
Class A common stock | $ | 0.73 | $ | 0.79 | $ | 3.35 | $ | 2.97 | |||||||
Class B common stock | $ | 0.73 | $ | 0.79 | $ | 3.35 | $ | 2.97 | |||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
(unaudited) | |||||||
Year ended | |||||||
2021 | 2020 | ||||||
CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES: | |||||||
Net income | $ | 137,017 | $ | 120,530 | |||
Adjustments to reconcile net income to net cash flows from operating activities: | |||||||
Depreciation and amortization | 77,075 | 70,300 | |||||
Noncash lease expense | 36,065 | 28,169 | |||||
Deferred income taxes | 17,450 | 9,856 | |||||
Stock-based compensation expense | 15,369 | 11,366 | |||||
Bad debt expense | (6,022 | ) | 5,244 | ||||
Contract loss reserve | — | (372 | ) | ||||
Change in assets and liabilities—net of effects from acquired businesses: | |||||||
Receivables-net | (3,954 | ) | 1,298 | ||||
Prepaid expenses | (1,790 | ) | (5,963 | ) | |||
Taxes receivable—current | 1,470 | 28 | |||||
Other current assets | 818 | (987 | ) | ||||
Employee supplemental savings plan asset | (5,764 | ) | (5,208 | ) | |||
Other assets | (4,941 | ) | (1,827 | ) | |||
Accounts payable | 14,475 | (303 | ) | ||||
Accrued salaries and related expenses | (18,040 | ) | 24,666 | ||||
Contract liabilities | (5,350 | ) | 9,149 | ||||
Operating lease obligations | (35,675 | ) | (31,055 | ) | |||
Accrued expenses and other current liabilities | (6,625 | ) | 9,248 | ||||
Accrued retirement | (257 | ) | 758 | ||||
Other long-term liabilities | 1,068 | 2,010 | |||||
Other | (218 | ) | 337 | ||||
Net cash flow from operating activities | 212,171 | 247,244 | |||||
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES: | |||||||
Acquisition of businesses-net of cash acquired | (370,811 | ) | (78,815 | ) | |||
Purchases of property and equipment | (54,908 | ) | (71,129 | ) | |||
Proceeds from sale of property and equipment | 302 | 869 | |||||
Proceeds from corporate owned life insurance | 270 | 4,137 | |||||
Investment in capitalized software for internal use | (9 | ) | (5,193 | ) | |||
Net cash (used in) investing activities | (425,156 | ) | (150,131 | ) | |||
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES: | |||||||
Borrowings under credit facility | 507,500 | 302,500 | |||||
Repayments under credit facility | (222,500 | ) | (324,000 | ) | |||
Dividends paid | (61,823 | ) | (51,618 | ) | |||
Proceeds from exercise of stock options | 9,758 | 10,249 | |||||
Payment consideration to tax authority on employee's behalf | (4,267 | ) | (1,746 | ) | |||
Debt issuance costs | (3,315 | ) | — | ||||
Principal paid on financing leases | (187 | ) | (159 | ) | |||
Net cash from (used in) financing activities | 225,166 | (64,774 | ) | ||||
NET CHANGE IN CASH AND CASH EQUIVALENTS | 12,181 | 32,339 | |||||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 41,193 | 8,854 | |||||
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ | 53,374 | $ | 41,193 | |||
Non-GAAP Financial Measures (Unaudited)
To supplement the review of
ManTech’s management believes that these non-GAAP financial measures provide additional useful information regarding the Company’s operational and financial results. These non-GAAP financial measures eliminate the effect of non-cash items such as depreciation of tangible assets and amortization of intangible assets primarily recognized in business combinations as well as the effect of discrete tax items which we do not believe are indicative of our core operating performance. These non-GAAP financial measures are considered important and frequently utilized by investors and financial analysts covering ManTech’s industry. The Company’s computation of its non-GAAP financial measures may not be comparable to similarly titled measures reported by other companies, thus limiting their use for comparability.
The following tables present selected financial data, including the reconciliation of the non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with GAAP.
EBITDA is calculated by excluding depreciation and amortization expense, interest expense, interest income, other expense, income taxes and equity in (earnings) losses of unconsolidated subsidiaries from net income.
EBITDA margin is calculated by dividing EBITDA by revenue.
Three months ended | Year Ended | ||||||||||||||
(In Thousands) | 2021 | 2020 | 2021 | 2020 | |||||||||||
NET INCOME | $ | 30,124 | $ | 32,164 | $ | 137,017 | $ | 120,530 | |||||||
Equity in losses (earnings) of unconsolidated subsidiaries | (281 | ) | 1 | (280 | ) | 2 | |||||||||
Provision for income taxes | 11,515 | 7,828 | 47,541 | 35,865 | |||||||||||
INCOME FROM OPERATIONS BEFORE INCOME TAXES AND EQUITY METHOD INVESTMENTS | $ | 41,358 | $ | 39,993 | $ | 184,278 | $ | 156,397 | |||||||
Other expense (income), net | 52 | (52 | ) | 277 | (1 | ) | |||||||||
Interest income | (13 | ) | (20 | ) | (128 | ) | (247 | ) | |||||||
Interest expense | 1,063 | 303 | 2,389 | 1,900 | |||||||||||
Depreciation and amortization | 19,637 | 19,019 | 77,075 | 70,300 | |||||||||||
EBITDA | $ | 62,097 | $ | 59,243 | $ | 263,891 | $ | 228,349 | |||||||
EBITDA Margin | 9.8 | % | 9.3 | % | 10.3 | % | 9.1 | % |
Adjusted net income is calculated by excluding the following items and the related tax impacts from net income: (i) amortization of acquired intangible assets and (ii) discrete tax items.
Adjusted diluted EPS is calculated by dividing adjusted net income by the diluted weighted average number of shares outstanding.
Three months ended | Year Ended | ||||||||||||||
(In Thousands Except Per Share Amounts) | 2021 | 2020 | 2021 | 2020 | |||||||||||
NET INCOME | $ | 30,124 | $ | 32,164 | $ | 137,017 | $ | 120,530 | |||||||
Amortization of acquired intangibles | 5,246 | 5,093 | 19,910 | 20,757 | |||||||||||
Adjustments for tax effect | (1,453 | ) | (998 | ) | (5,137 | ) | (4,753 | ) | |||||||
ADJUSTED NET INCOME | $ | 33,917 | $ | 36,259 | $ | 151,790 | $ | 136,534 | |||||||
ADJUSTED DILUTED EPS | |||||||||||||||
Class A common stock | $ | 0.83 | $ | 0.89 | $ | 3.71 | $ | 3.36 | |||||||
Class B common stock | $ | 0.83 | $ | 0.89 | $ | 3.71 | $ | 3.36 | |||||||
Note: Figures may not add due to rounding.
Investor Relations | Media |
VP, M&A and Investor Relations | VP, |
(703) 218-6093 | (301) 717-7345 |
Stephen.Vather@ManTech.com | Sheila.Blackwell@ManTech.com |
Source:
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