MANT
$63.32
Mantech Intl Cp A
($.83)
(1.29%)
Earnings Details
1st Quarter March 2019
Wednesday, May 01, 2019 4:01:00 PM
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Summary

Mantech Intl Cp A Beats

Mantech Intl Cp A (MANT) reported 1st Quarter March 2019 earnings of $0.53 per share on revenue of $501.9 million. The consensus earnings estimate was $0.53 per share on revenue of $506.8 million. The Earnings Whisper number was $0.52 per share. Revenue grew 6.1% on a year-over-year basis.

The company said it expects 2019 earnings of $2.21 to $2.33 per share on revenue of $2.13 billion to $2.21 billion. The company's previous guidance was earnings of $2.15 to $2.28 per share on revenue of $2.05 billion to $2.15 billion and the current consensus earnings estimate is $2.25 per share on revenue of $2.10 billion for the year ending December 31, 2019.

Mantech International Corp provides technologies and solutions for mission-critical national security programs for the Intelligence Community, the departments of Defence, State, Homeland Security, Health and Human Services, Veterans Affairs and Justice.

Results
Reported Earnings
$0.53
Earnings Whisper
$0.52
Consensus Estimate
$0.53
Reported Revenue
$501.9 Mil
Revenue Estimate
$506.8 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

ManTech Announces Financial Results for First Quarter of 2019

  • Bookings of $556 million, resulting in a book-to-bill ratio of 1.1 and a LTM book-to-bill of 1.8
  • Revenues: $502 million, up 6% from first quarter of 2018
  • Operating Income: $28.5 million for an operating margin of 5.7%
  • Diluted EPS: $0.53, up 4% from first quarter of 2018
  • Cash Flow from Operations: $47 million or 2.2 times net income
  • Kforce Government Solutions (KGS) acquisition expands federal civilian presence and adds Transformation Twenty-One Total Technology Next Generation (T4NG) contract vehicle

HERNDON, Va., May 01, 2019 (GLOBE NEWSWIRE) -- ManTech International Corporation (Nasdaq: MANT), a leading provider of innovative technologies and solutions for mission-critical national security programs, today announced financial results for the first quarter of fiscal year 2019, which ended March 31, 2019.

"ManTech's steady operational execution resulted in continued organic revenue growth, improved profitability and excellent cash flow generation in the quarter. The market environment remains healthy with a robust opportunity set that aligns well with ManTech's differentiated capabilities. I am pleased with our solid start to 2019 and look forward to the continued success of the business," said ManTech President and Chief Executive Officer, Kevin M. Phillips.

Summary Operating Results

 Three months ended
March 31,
(In Millions Except Per Share Amounts)2019 2018
Revenue$501.9 $473.2
Operating Income$28.5 $26.4
Operating Margin5.7% 5.6%
Depreciation and Amortization$12.6 $13.2
Depreciation and Amortization % of Revenue2.5% 2.8%
Net Income$21.1 $20.1
Diluted Weighted Average Common Shares Outstanding40.0 39.7
Diluted Earnings Per Share$0.53 $0.51

As a result of increased demand for our services and solutions, revenues for the quarter were $501.9 million, up 6% from $473.2 million in the first quarter of 2018. Revenue growth was driven by organic expansion from recent contract awards.

Operating income for the quarter was $28.5 million, up 8% compared to the first quarter of 2018, representing an operating margin of 5.7%. For the quarter, net income was $21.1 million and diluted earnings per share were $0.53, up 5% and 4%, respectively, compared to the first quarter of 2018.

Cash Management and Capital Deployment

 Three months ended
March 31,
(Dollars In Millions)2019 2018
Net Income$21.1 $20.1
Cash Flow from (Used in) Operations$47.3 $(18.0)
Operating Cash Flow Multiple of Net Income2.2x (0.9)x
Capital Expenditures$8.3 $8.7
Days Sales Outstanding (DSO)70 69
Cash and Cash Equivalents, End of Period$120.5 $10.4
Current and Long Term Debt, End of Period$96.0 $65.5

Cash flow from operations for the quarter was $47.3 million or 2.2 times net income. Days sales outstanding (DSO) were 70 days, an increase of 1 day compared to the first quarter of 2018. As of March 31, 2019, the Company had $120.5 million in cash and cash equivalents and $96.0 million of outstanding borrowings on its $500 million revolving-credit facility, which provides the Company with ample financial capacity to support organic growth, pursue acquisitions and issue dividends while maintaining a strong balance sheet.

In the first quarter, the Company paid $10.7 million in dividends, or $0.27 per share, to its common stockholders of record as of March 8, 2019. The Board of Directors has declared that the Company will pay a cash dividend of $0.27 per share on June 21, 2019, to all common stockholders of record as of June 7, 2019, as part of its regular quarterly cash dividend program. Future declarations of dividends and their record and payment dates are subject to the final determination of ManTech's Board of Directors.

Contract Awards

Contract awards (bookings) totaled $556 million in the quarter, representing a book-to-bill ratio of 1.1. In the first quarter approximately 30% of the awards were for new business. Over the trailing 12 months, the book-to-bill ratio is 1.8. ManTech's notable single-award contract in the quarter includes:

  • Systems Engineering and Consulting Support for the Department of Homeland Security (DHS) Customs and Border Protection (CBP). ManTech was awarded a 5-year contract totaling $128 million to provide CBP with program management, engineering and consulting support.

The Company received a number of additional contract awards in the quarter including several extensions to existing contracts and new contracts from various customers. Approximately 65% of the awards won in the quarter were with classified customers to provide enterprise IT, systems engineering and integration, cyber and insider threat capabilities.

In addition, the Company won a multiple-award indefinite-delivery, indefinite-quantity (IDIQ) contract, which is not included in bookings:

  • Army Program Executive Office - Intelligence, Electronic Warfare and Sensors (PEO IEW&S) R4 IDIQ. Under this 10-year, $982 million multiple award contract ManTech will have the opportunity to win task orders to provide a range of cyber and electronic warfare services and solutions.

The Company’s backlog of business at quarter end was $8.4 billion and funded backlog was $1.5 billion.

Forward Guidance

Based on our strong performance year to date and the recent acquisition of KGS, we are raising our 2019 guidance range on revenue, net income and diluted earnings per share as specified in the table below.

MeasureFiscal 2019 Guidance
Revenue (billion)$2.13 - $2.21
Net Income (million)$88.9 - $93.9
Diluted Earnings per Share$2.21 - $2.33

ManTech Chief Financial Officer Judith L. Bjornaas said, "I am pleased with the strong performance of the business in the first quarter. We continue to optimize shareholder value through our strong operational execution coupled with our prudent capital deployment on strategic acquisitions. We remain focused on capturing new business and growing our direct labor base to sustain our financial success."

Conference Call

ManTech executive management will hold a conference call on May 1, 2019, at 5 p.m. Eastern to discuss the financial results and outlook and answer questions. Analysts may participate on the conference call by dialing 877-638-9567 (domestic) or 253-237-1032 (international) and entering passcode 3045768.  The conference call will be webcast simultaneously to the public through a link on the Investor Relations section of the ManTech website (http://investor.mantech.com). A replay of the conference call will be available on the ManTech website approximately 2 hours after the conclusion of the conference call.

About ManTech International Corporation

ManTech provides mission-focused technology solutions and services for U.S. defense, intelligence community and federal civilian agencies. In business more than 50 years, we excel in full-spectrum cyber, data collection & analytics, enterprise IT, systems and software engineering solutions that support national and homeland security. Additional information about ManTech can be found at www.mantech.com.

Forward-Looking Information

Statements and assumptions made in this press release, which do not address historical facts, constitute “forward-looking” statements that ManTech believes to be within the definition in the Private Securities Litigation Reform Act of 1995 and involve risks and uncertainties, many of which are outside of our control. Words such as “may,” “will,” “expect,” “intend,” “anticipate,” “believe,” or “estimate,” or the negative of these terms or words of similar import, are intended to identify forward-looking statements.

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 U.S. government, or compete effectively for contract awards; inability to recruit and retain sufficient number of employees with specialized skill sets or necessary security clearances who are in great demand and limited supply; adverse changes in U.S. government spending for programs we support, whether due to changing mission priorities, socio-economic policies, cost reduction initiatives by our customers, or other federal budget constraints generally; disruption of our business or damage to our reputation resulting from security breaches in customer systems, internal systems (including as a result of cyber or other security threats), or employee misconduct; failure to realize the full amount of our backlog or adverse changes in the timing of receipt of revenues under contracts included in backlog; issues relating to competing effectively for awards procured through the competitive bidding process; failure to obtain option awards, task orders or funding under contracts; renegotiation, modification or termination of our contracts, or failure to perform in conformity with contract terms or our expectations; failure to successfully integrate acquired companies or businesses into our operations or to realize any accretive or synergistic effects from such acquisitions; non-compliance with, or adverse changes in, complex U.S. government laws, procurement regulations or processes; and adverse results of U.S. government audits or other investigations of our government contracts. These and other risk factors are more fully discussed in the section entitled "Risk Factors" in ManTech's Annual Report on Form 10-K previously filed with the Securities and Exchange Commission on Feb. 22, 2019, Item 1A of Part II of our Quarterly Reports on Form 10-Q, and, from time to time, in ManTech's other filings with the Securities and Exchange Commission.

The forward-looking statements included herein are only made as of the date of this press release, and ManTech undertakes no obligation to publicly update any of the forward-looking statements made herein, whether as a result of new information, subsequent events or circumstances, changes in expectations or otherwise.

  
MANTECH INTERNATIONAL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In Thousands Except Share and Per Share Amounts)
  
 (unaudited)
 March 31,
 2019
 December 31,
 2018
ASSETS   
Cash and cash equivalents$120,535  $5,294 
Receivables—net390,851  405,378 
Prepaid expenses21,356  23,398 
Other current assets4,776  5,915 
Total Current Assets537,518  439,985 
Goodwill1,085,806  1,085,806 
Other intangible assets—net167,092  171,962 
Operating lease right of use assets119,807   
Property and equipment—net54,479  51,427 
Employee supplemental savings plan assets33,606  30,501 
Investments11,817  11,830 
Other assets13,529  12,360 
TOTAL ASSETS$2,023,654  $1,803,871 
LIABILITIES AND STOCKHOLDERS' EQUITY   
LIABILITIES   
Accounts payable and accrued expenses$128,746  $126,066 
Accrued salaries and related expenses82,384  89,058 
Contract liabilities28,830  28,209 
Operating lease liabilities—current26,260   
Total Current Liabilities266,220  243,333 
Long term debt96,000  7,500 
Deferred income taxes111,714  108,956 
Operating lease liabilities—long term104,465   
Accrued retirement31,238  30,999 
Other long-term liabilities830  11,889 
TOTAL LIABILITIES610,467  402,677 
COMMITMENTS AND CONTINGENCIES   
STOCKHOLDERS' EQUITY   
Common stock, Class A—$0.01 par value; 150,000,000 shares authorized; 26,916,995 and 26,817,513 shares issued at March 31, 2019 and December 31, 2018; 26,672,882 and 26,573,400 shares outstanding at March 31, 2019 and December 31, 2018269  268 
Common stock, Class B—$0.01 par value; 50,000,000 shares authorized; 13,188,045 and 13,188,045 shares issued and outstanding at March 31, 2019 and December 31, 2018132  132 
Additional paid-in capital508,605  506,970 
Treasury stock, 244,113 and 244,113 shares at cost at March 31, 2019 and December 31, 2018(9,158) (9,158)
Retained earnings913,429  903,084 
Accumulated other comprehensive loss(90) (102)
TOTAL STOCKHOLDERS’ EQUITY1,413,187  1,401,194 
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY$2,023,654  $1,803,871 


  
MANTECH INTERNATIONAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In Thousands Except Per Share Amounts)
  
 (unaudited)
Three months ended
March 31,
 2019 2018
REVENUE$501,930  $473,236 
Cost of services431,083  403,933 
General and administrative expenses42,315  42,882 
OPERATING INCOME28,532  26,421 
Interest expense(484) (734)
Interest income190  15 
Other income (expense), net(42) 4 
INCOME FROM OPERATIONS BEFORE INCOME TAXES AND EQUITY METHOD INVESTMENTS28,196  25,706 
Provision for income taxes(7,066) (5,679)
Equity in earnings (losses) of unconsolidated subsidiaries(12) 40 
NET INCOME$21,118  $20,067 
BASIC EARNINGS PER SHARE:   
Class A common stock$0.53  $0.51 
Class B common stock$0.53  $0.51 
DILUTED EARNINGS PER SHARE:   
Class A common stock$0.53  $0.51 
Class B common stock$0.53  $0.51 


  
MANTECH INTERNATIONAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
  
 (unaudited)
Three months ended
March 31,
 2019 2018
CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES:   
Net income$21,118  $20,067 
Adjustments to reconcile net income to net cash flow from (used in) operating activities:   
Depreciation and amortization12,644  13,209 
Noncash lease expense6,814   
Deferred income taxes2,758  3,969 
Stock-based compensation expense1,311  1,054 
Equity in (earnings) losses of unconsolidated subsidiaries12  (40)
Change in assets and liabilities—net of effects from acquired businesses:   
Receivables—net14,527  (45,458)
Prepaid expenses(1,463) (5,616)
Other current assets1,139  2,361 
Employee supplemental savings plan asset(3,105) 255 
Accounts payable and accrued expenses3,923  4,980 
Accrued salaries and related expenses(6,674) (9,873)
Contract liabilities621  (397)
Operating lease liabilities(6,752)  
Accrued retirement239  (2,224)
Other227  (302)
Net cash flow from (used in) operating activities47,339  (18,015)
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES:   
Purchases of property and equipment(7,238) (6,574)
Deferred contract costs(1,892) (295)
Investment in capitalized software for internal use(1,024) (2,097)
Net cash used in investing activities(10,154) (8,966)
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:   
Borrowing under revolving credit facility240,000  191,000 
Repayments under revolving credit facility(151,500) (156,500)
Dividends paid(10,744) (9,861)
Proceeds from exercise of stock options1,682  5,996 
Payment consideration to tax authority on employees' behalf(1,357) (2,723)
Principal paid on financing leases(25)  
Net cash flow from financing activities78,056  27,912 
NET CHANGE IN CASH AND CASH EQUIVALENTS115,241  931 
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD5,294  9,451 
CASH AND CASH EQUIVALENTS, END OF PERIOD$120,535  $10,382 
        

ManTech-F

ManTech International Corporation

Investor Relations

Judy BjornaasStephen Vather 
Executive Vice President and CFOExecutive Director, Corporate Development 
(703) 218-8269(703) 218-6093 
Investor.Relations@ManTech.comStephen.Vather@ManTech.com 

Media
Jim Crawford
Executive Director, External Communications
(O) (703) 259-3636 | (M) 571-466-7550
James.Crawford2@ManTech.com

 

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Source: ManTech International Corporation