- Revenue:
$636 million , up 10% from the third quarter of 2019 - EBITDA Margin: 9.0%
- Diluted EPS:
$0.73 , up 6% from the third quarter of 2019 - Adjusted Diluted EPS:
$0.83 , up 6% from the third quarter of 2019 - Bookings of
$1.3 billion resulting in a book-to-bill ratio of 2.1 - Cash Flow from Operations:
$112 million - Raises and narrows the range of 2020 guidance on all measures
"We are pleased with the results we achieved in the third quarter, which included continued strong organic growth, solid profitability and robust cash flow," said
Summary Operating Results | |||
Three months ended | |||
(In Millions Except Per Share Amounts) | 2020 | 2019 | |
Revenue | |||
Operating Income | |||
Net Income | |||
Diluted EPS | |||
Non-GAAP Financial Measures* | |||
EBITDA | |||
EBITDA Margin | 9.0% | 9.0% | |
Adjusted Net Income | |||
Adjusted Diluted EPS | |||
*Information about |
Revenue was
Operating income was
EBITDA was
Cash Management and Capital Deployment
For the quarter, 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
- Data Analytics Solutions and Services for the
Department of Homeland Security .ManTech was awarded a 6-year contract totaling$273 million to continue providing advanced analytics tools and technologies to enhance Customs and Border Protection's (CBP) ability to identify and analyze threats to the homeland. - Full-Spectrum Cyber Operations for an agency of the
Department of Defense .ManTech was awarded a new, approximately 3.5-year contract totaling$266 million to provide full-spectrum cyber operations solutions. - Quick-Reaction Analysis and Intelligent Systems Engineering for the
Navy .ManTech was awarded a 5-year contract totaling$260 million to continue to support the Naval Air Systems Command's (NAVAIR) technology modernization initiatives to transform mission systems in manned maritime patrol and reconnaissance aircraft. - Threat and Risk Analysis and Technical Security Countermeasures for the
Department of State .ManTech was awarded a$121 million contract expansion to provide additional services to safeguard personnel globally supporting theDepartment of State's mission. - Operational Test,
Engineering Services and Cyber Research for theNavy .ManTech was awarded a new, 5-year contract totaling$85 million to provide hardware and software operational test, engineering and cyber research on newly developed and fielded sensors across NAVAIR platforms.
The Company also received a number of additional contract awards in the quarter including several extensions to existing contracts and new contracts from various customers, most of which are classified.
The Company’s backlog of business at quarter end was a new record of
Forward Guidance
The Company has raised and narrowed the range of its 2020 guidance for revenue, adjusted net income and adjusted diluted earnings per share as specified in the table below.
Measure | Fiscal 2020 Guidance |
Revenue (million) | |
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
CONDENSED CONSOLIDATED BALANCE SHEETS (In Thousands Except Share and Per Share Amounts) | |||||||
(unaudited) | |||||||
2020 | 2019 | ||||||
ASSETS | |||||||
Cash and cash equivalents | $ | 101,712 | $ | 8,854 | |||
Receivables—net | 382,855 | 398,976 | |||||
Prepaid expenses | 27,868 | 20,030 | |||||
Taxes receivable—current | 27,821 | 21,996 | |||||
Other current assets | 6,663 | 4,878 | |||||
Total Current Assets | 546,919 | 454,734 | |||||
1,191,270 | 1,191,259 | ||||||
Other intangible assets—net | 180,600 | 196,778 | |||||
Property and equipment—net | 116,548 | 85,631 | |||||
Operating lease right of use assets | 99,784 | 117,728 | |||||
Employee supplemental savings plan assets | 34,682 | 36,777 | |||||
Investments | 11,549 | 11,550 | |||||
Other assets | 13,096 | 13,457 | |||||
TOTAL ASSETS | $ | 2,194,448 | $ | 2,107,914 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
LIABILITIES | |||||||
Accounts payable and accrued expenses | $ | 170,500 | $ | 146,016 | |||
Accrued salaries and related expenses | 127,110 | 97,298 | |||||
Contract liabilities | 40,058 | 27,620 | |||||
Operating lease obligations—current | 30,235 | 29,047 | |||||
Total Current Liabilities | 367,903 | 299,981 | |||||
Deferred income taxes | 142,909 | 131,782 | |||||
Operating lease obligations—long term | 86,317 | 103,148 | |||||
Accrued retirement | 33,224 | 35,552 | |||||
Long term debt | — | 36,500 | |||||
Other long-term liabilities | 10,379 | 10,309 | |||||
TOTAL LIABILITIES | 640,732 | 617,272 | |||||
COMMITMENTS AND CONTINGENCIES | |||||||
STOCKHOLDERS' EQUITY | |||||||
Common stock, Class A—$0.01 par value; 150,000,000 shares authorized; 27,417,760 and 27,235,860 shares issued at 31, 2019; 27,173,647 and 26,991,747 shares outstanding at and | 274 | 272 | |||||
Common stock, Class B—$0.01 par value; 50,000,000 shares authorized; 13,187,195 and 13,187,195 shares issued and outstanding at 2020 and | 132 | 132 | |||||
Additional paid-in capital | 539,286 | 525,851 | |||||
(9,158 | ) | (9,158 | ) | ||||
Retained earnings | 1,023,448 | 973,767 | |||||
Accumulated other comprehensive loss | (266 | ) | (222 | ) | |||
TOTAL STOCKHOLDERS' EQUITY | 1,553,716 | 1,490,642 | |||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 2,194,448 | $ | 2,107,914 | |||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In Thousands Except Per Share Amounts) | ||||||||||||||||
(unaudited) Three months ended | (unaudited) Nine months ended | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
REVENUE | $ | 636,196 | $ | 579,179 | $ | 1,879,600 | $ | 1,618,146 | ||||||||
Cost of services | 538,000 | 487,914 | 1,597,764 | 1,378,263 | ||||||||||||
General and administrative expenses | 58,855 | 52,863 | 164,011 | 139,652 | ||||||||||||
OPERATING INCOME | 39,341 | 38,402 | 117,825 | 100,231 | ||||||||||||
Interest expense | (310 | ) | (659 | ) | (1,597 | ) | (2,088 | ) | ||||||||
Interest income | 40 | 90 | 227 | 401 | ||||||||||||
Other (expense), net | (29 | ) | (39 | ) | (51 | ) | (50 | ) | ||||||||
INCOME FROM OPERATIONS BEFORE INCOME TAXES AND EQUITY METHOD INVESTMENTS | 39,042 | 37,794 | 116,404 | 98,494 | ||||||||||||
Provision for income taxes | (9,303 | ) | (9,873 | ) | (28,037 | ) | (25,229 | ) | ||||||||
Equity in earnings (losses) of unconsolidated subsidiaries | — | 16 | (1 | ) | 4 | |||||||||||
NET INCOME | $ | 29,739 | $ | 27,937 | $ | 88,366 | $ | 73,269 | ||||||||
BASIC EARNINGS PER SHARE: | ||||||||||||||||
Class A common stock | $ | 0.74 | $ | 0.70 | $ | 2.19 | $ | 1.84 | ||||||||
Class B common stock | $ | 0.74 | $ | 0.70 | $ | 2.19 | $ | 1.84 | ||||||||
DILUTED EARNINGS PER SHARE: | ||||||||||||||||
Class A common stock | $ | 0.73 | $ | 0.69 | $ | 2.18 | $ | 1.82 | ||||||||
Class B common stock | $ | 0.73 | $ | 0.69 | $ | 2.18 | $ | 1.82 | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands) | |||||||
(unaudited) Nine months ended | |||||||
2020 | 2019 | ||||||
CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES: | |||||||
Net income | $ | 88,366 | $ | 73,269 | |||
Adjustments to reconcile net income to net cash flow from (used in) operating activities: | |||||||
Depreciation and amortization | 51,281 | 39,470 | |||||
Noncash lease expense | 20,738 | 20,949 | |||||
Deferred income taxes | 11,127 | 9,773 | |||||
Stock-based compensation expense | 8,533 | 5,188 | |||||
Bad debt expense | 5,244 | — | |||||
Contract loss reserve | (372 | ) | (881 | ) | |||
Loss on sale and retirement of property and equipment | 12 | 7 | |||||
Equity in (earnings) losses of unconsolidated subsidiaries | 1 | (4 | ) | ||||
Change in assets and liabilities—net of effects from acquired businesses: | |||||||
Receivables—net | 10,877 | 60,182 | |||||
Prepaid expenses | (7,838 | ) | (5,609 | ) | |||
Taxes receivable—current | (5,825 | ) | (1,653 | ) | |||
Other current assets | (1,333 | ) | 586 | ||||
Employee supplemental savings plan asset | (2,042 | ) | (4,396 | ) | |||
Other long-term assets | (1,939 | ) | 40 | ||||
Accounts payable and accrued expenses | 22,565 | 28,888 | |||||
Accrued salaries and related expenses | 29,812 | 9,830 | |||||
Operating lease obligations | (22,102 | ) | (21,077 | ) | |||
Contract liabilities | 12,438 | 15,682 | |||||
Accrued retirement | (2,328 | ) | 2,655 | ||||
Other long-term liabilities | 100 | 273 | |||||
Other | (182 | ) | (213 | ) | |||
Net cash flow from operating activities | 217,133 | 232,959 | |||||
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES: | |||||||
Purchases of property and equipment | (53,685 | ) | (38,455 | ) | |||
Investment in capitalized software | (5,193 | ) | (2,784 | ) | |||
Proceeds from corporate owned life insurance | 4,137 | — | |||||
Proceeds from sale of property and equipment | 869 | — | |||||
Acquisition of a business-net of cash acquired | — | (153,180 | ) | ||||
Deferred contract costs | — | (3,520 | ) | ||||
Proceeds from equity method investment | — | 283 | |||||
Net cash used in investing activities | (53,872 | ) | (197,656 | ) | |||
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES: | |||||||
Borrowing under revolving credit facility | 285,500 | 465,500 | |||||
Repayments under revolving credit facility | (322,000 | ) | (448,000 | ) | |||
Dividends paid | (38,689 | ) | (32,365 | ) | |||
Proceeds from exercise of stock options | 5,918 | 9,156 | |||||
Payment consideration to tax authority on employees' behalf | (1,014 | ) | (1,476 | ) | |||
Principal paid on financing leases | (118 | ) | (99 | ) | |||
Net cash used in financing activities | (70,403 | ) | (7,284 | ) | |||
NET CHANGE IN CASH AND CASH EQUIVALENTS | 92,858 | 28,019 | |||||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 8,854 | 5,294 | |||||
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ | 101,712 | $ | 33,313 | |||
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 losses of unconsolidated subsidiaries from net income.
EBITDA margin is calculated by dividing EBITDA by revenue.
Three months ended | |||||||
(In Thousands) | 2020 | 2019 | |||||
NET INCOME | $ | 29,739 | $ | 27,937 | |||
Equity in losses (earnings) of unconsolidated subsidiaries | — | (16 | ) | ||||
Provision for income taxes | 9,303 | 9,873 | |||||
INCOME FROM OPERATIONS BEFORE INCOME TAXES AND EQUITY METHOD INVESTMENTS | $ | 39,042 | $ | 37,794 | |||
Other expense (income), net | 29 | 39 | |||||
Interest income | (40 | ) | (90 | ) | |||
Interest expense | 310 | 659 | |||||
Depreciation and amortization | 18,127 | 13,840 | |||||
EBITDA | $ | 57,468 | $ | 52,242 | |||
EBITDA Margin | 9.0 | % | 9.0 | % | |||
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 | |||||||
(In Thousands Except Per Share Amounts) | 2020 | 2019 | |||||
NET INCOME | $ | 29,739 | $ | 27,937 | |||
Amortization of acquired intangibles | 5,130 | 4,912 | |||||
Adjustments for tax effect | (1,221 | ) | (1,282 | ) | |||
ADJUSTED NET INCOME | $ | 33,648 | $ | 31,567 | |||
ADJUSTED DILUTED EPS | |||||||
Class A common stock | $ | 0.83 | $ | 0.78 | |||
Class B common stock | $ | 0.83 | $ | 0.78 | |||
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:
2020 GlobeNewswire, Inc., source