-
Operating income of $40.4 million, up 17% over first quarter 2008
-
Net Income of $24.5 million, up 23% over first quarter 2008
-
Diluted earnings per share of $0.68, up 19% over first quarter 2008
-
Contract awards of $502 million in the first quarter
-
Updates 2009 Full Year Revenue and EPS Guidance
ManTech International Corporation (NASDAQ: MANT) today announced
results for the first quarter of 2009. ManTech reported revenue of
$449.6 million for the first quarter of 2009, up $24.5 million, or 6%,
compared to $425.1 million for the same period in 2008.
Operating income in the first quarter was $40.4 million (9.0% of
revenue) up 17% compared to $34.6 million (8.1% of revenue) for the same
period in 2008. Net Income in the first quarter was $24.5 million up 23%
compared to $19.9 million for the same period in 2008. Diluted earnings
per share were $0.68 for the first quarter, up 19% compared to $0.57 for
the same period in 2008.
First quarter revenue was reduced due to deferred or delayed
procurements on some of our Army programs, such as countermine/JERRV and
pass-through requirements on other defense contracts including our
regional support centers (RSC).
Contract Awards & Backlog
ManTech had contract awards of $502 million in the first quarter with
67% of the awards coming from new or add-on business.
As a result of the contract awards received in the first quarter of
2009, ManTech’s reported backlog as of March 31, 2009 was $4.07 billion,
an 18% increase from $3.44 billion as of March 31, 2008. Funded backlog
was a $1.10 billion as of March 31, 2009, a 16% increase from $949
million as of March 31, 2008.
DDK Technology Group Acquisition Completed
ManTech closed the acquisition of DDK Technology Group, Inc.
(DDK) on March 13, 2009. DDK is a rapidly growing provider of cyber
security to the DoD, with particular focus on the Naval Criminal
Investigative Service (NCIS). Headquartered in Lanham, MD, DDK is a
highly-specialized company providing cyber intelligence analysis,
computer and network forensics and counterterrorism/ counterintelligence
support and analysis globally. All of DDK’s over 50 employees have
high-level clearances.
Cyber Security and Comprehensive National Cyber Initiative (CNCI)
Update
The White House’s 60-day federal government cyber security review has
been completed, which will now allow the government to focus on
execution of its cyber security strategy. This will drive increased
procurement and spending in the second half of 2009 related to core
ManTech cyber security customers. As a leading provider of cyber
security solutions, ManTech contributed to the Intelligence and National
Security Alliance’s (INSA) submission for the cyber security 60-day
review.
“Given ManTech’s unique position with leading cyber security agencies
and customers, across the Intelligence, DoD and DHS agencies, we see
expanding opportunities that will lead to strong growth in our cyber
security segment of the business,” said George J. Pedersen, Chairman &
Chief Executive Officer, ManTech International Corporation.
During the quarter, the Company renewed and significantly increased the
scope of one of its cyber security contracts. Additionally, other
existing cyber security contracts have seen expansion during the quarter.
Cash Flow and Balance Sheet Information
Days Sales Outstanding of accounts receivable, or DSOs, were 89 days as
of March 31, 2009 and net debt was approximately $86 million.
“The first quarter’s cash collections were negatively impacted by
several large receivable collections that did not occur until early
April. We anticipate our cash flow from operations conversion versus net
income will be at least 75% for the year based on a mid-70 day DSO
level,” said Kevin M. Phillips, Executive Vice President and Chief
Financial Officer, ManTech International Corporation.
Company Guidance
The Company’s initial second quarter and updated full year 2009 guidance
is summarized in the table below. ManTech’s guidance does not include
future acquisitions or divestitures.
|
|
|
(Dollars in millions, except earnings per share amounts)
|
|
|
|
2nd Quarter 2009
|
|
Full Year 2009
|
|
Revenue
|
|
$480 - $510
|
|
$2,000 - $2,075
|
|
Net Income
|
|
$25.7 – $26.7
|
|
$105.5 – $108.9
|
|
Diluted Earnings Per Share
|
|
$0.71 – $0.74
|
|
$2.91 – $3.01
|
|
Weighted Average Shares Outstanding
|
|
36.15 million
|
|
36.20 million
|
|
|
|
|
|
|
Key Guidance Assumptions
-
Countermine/JERRV revenues of $105 million in the second quarter and
at least $410 million for full year 2009
-
Net interest expense of $150,000 in the second quarter and $450,000
for the full year
-
Tax rate of 39.2% for the second quarter and for full year 2009
-
Increasing requirements and funding on existing cyber security
contracts and programs as well as growth in the cyber security
business development pipeline
The guidance reflects current visibility on the stated programs above.
The passage of DoD supplemental appropriations of $83 billion (of which
$45 billion is for the Army) anticipated in late May 2009 may support
additional mission requirements for ManTech’s business base.
Conference Call
ManTech executive management will hold a conference call today at 5 p.m.
ET, to discuss first quarter 2009 results and answer questions.
Interested parties may access the call by dialing (888) 797-2996
(domestic) or (913) 312-0829 (international). The conference call will
be Webcast (listen only) simultaneously via the Internet at www.mantech.com.
Interested parties should dial in or log on approximately ten minutes
prior to the start of the call.
A replay of the call will be available beginning at 9 p.m. today and
will remain available through midnight, May 13, 2009. To access the
replay, call (888) 203-1112 (domestic) or (719) 457-0820
(international). The confirmation code for the replay is 8146922. A
replay will also be available on ManTech’s website approximately two
hours after the conclusion of the call.
About ManTech International Corporation:
Headquartered in Fairfax, Virginia with approximately 8,000
professionals, ManTech International Corporation is a leading provider
of innovative technologies and solutions for mission-critical national
security programs for the Intelligence Community; the departments of
Defense, State, Homeland Security and Justice; the Space Community and
other U.S. federal government customers. ManTech’s expertise includes
systems engineering, systems integration, software development services,
enterprise architecture, cyber security, information assurance,
intelligence operations and analysis support, network and critical
infrastructure protection, information operations and information
warfare support, information technology, communications integration,
global logistics and supply chain management, and service oriented
architectures. The company supports the advanced telecommunications
systems that are used in Operation Iraqi Freedom and in other parts of
the world; has developed a secure, collaborative communications system
for the U.S. Department of Homeland Security; and builds and maintains
secure databases that track terrorists. The company operates in the
United States and approximately 40 countries. In 2008, BusinessWeek
magazine chose ManTech for its ‘InfoTech 100’ listing representing the
best performing tech companies in the world; Forbes.com named
ManTech as one of the 400 Best Big Companies in the nation; and A-Space,
a Web 2.0 enhanced collaboration tool that ManTech developed for the
Intelligence Community was named one of the Top 50 Inventions of the
Year by Time magazine. Also in 2008, GI Jobs magazine
named ManTech a Top Ten Military Friendly Employer for the third year in
a row. Additional information on 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,”
"intends,” "should,” "expects,” "plans,” "projects,” "anticipates,”
"believes,” "estimates,” "predicts,” "potential,” "continue,” or
"opportunity," or the negative of these terms or words of similar import
are intended to identify forward-looking statements.
These forward-looking statements are subject to known and unknown risks
and uncertainties, which could cause actual results to differ materially
from those anticipated, including, without limitation: adverse changes
in U.S. government spending priorities; failure to retain existing U.S.
government contracts, win new contracts, or win recompetes; adverse
results of U.S. government audits of our government contracts; risks
associated with complex U.S. government procurement laws and
regulations; adverse effect of contract consolidations; risk of contract
performance or termination; failure to obtain option awards, task orders
or funding under contracts; adverse changes in our mix of contract
types; failure to successfully integrate recently acquired companies or
businesses into our operations or to realize any accretive or
synergistic effects from such acquisitions; failure to identify, execute
or effectively integrate future acquisitions; risks of financing, such
as increases in interest rates and restrictions imposed by our credit
agreement; and competition. These and other risk factors are more fully
discussed in the section entitled "Risks Factors" in ManTech's Annual
Report on Form 10-K filed with the Securities and Exchange Commission on
February 27, 2009, and, from time to time, in ManTech's other filings
with the Securities and Exchange Commission, including among others, its
reports on Form 10-Q.
The forward-looking statements included in this news release are only
made as of the date of this news 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
|
|
CONSOLIDATED BALANCE SHEETS
|
|
(Dollars in Thousands Except Per Share Amounts)
|
|
|
|
|
|
|
|
(unaudited)
|
|
|
|
March 31,
|
|
December 31,
|
|
|
|
2009
|
|
2008
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
CURRENT ASSETS:
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
9,598
|
|
|
$
|
4,375
|
|
|
Receivables—net
|
|
|
445,398
|
|
|
|
407,248
|
|
|
Prepaid expenses and other
|
|
|
8,866
|
|
|
|
14,200
|
|
|
Total Current Assets
|
|
|
463,862
|
|
|
|
425,823
|
|
|
|
|
|
|
|
|
|
|
|
|
Property and equipment—net
|
|
|
16,442
|
|
|
|
16,563
|
|
|
Goodwill
|
|
|
488,778
|
|
|
|
479,516
|
|
|
Other intangibles—net
|
|
|
80,647
|
|
|
|
78,710
|
|
|
Employee supplemental savings plan assets
|
|
|
13,896
|
|
|
|
14,771
|
|
|
Other assets
|
|
|
5,930
|
|
|
|
6,329
|
|
|
TOTAL ASSETS
|
|
$
|
1,069,555
|
|
|
$
|
1,021,712
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES:
|
|
|
|
|
|
|
|
|
|
Current portion of debt
|
|
$
|
95,200
|
|
|
$
|
44,100
|
|
|
Accounts payable and accrued expenses
|
|
|
148,805
|
|
|
|
157,407
|
|
|
Accrued salaries and related expenses
|
|
|
49,924
|
|
|
|
75,121
|
|
|
Billings in excess of revenue earned
|
|
|
9,369
|
|
|
|
8,451
|
|
|
Total Current Liabilities
|
|
|
303,298
|
|
|
|
285,079
|
|
|
|
|
|
|
|
|
|
|
|
|
Accrued retirement
|
|
|
15,229
|
|
|
|
15,930
|
|
|
Other long-term liabilities
|
|
|
8,151
|
|
|
|
7,769
|
|
|
Deferred income taxes—non-current
|
|
|
33,984
|
|
|
|
32,398
|
|
|
TOTAL LIABILITIES
|
|
|
360,662
|
|
|
|
341,176
|
|
|
|
|
|
|
|
|
|
|
|
|
COMMITMENTS AND CONTINGENCIES
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS' EQUITY:
|
|
|
|
|
|
|
|
|
|
Common stock, Class A—$0.01 par value; 150,000,000 shares
authorized; 22,107,822 and 21,765,004 shares issued at March 31,
2009 and December 31, 2008; 21,864,782 and 21,521,964 shares
outstanding at March 31, 2009 and December 31, 2008
|
|
|
221
|
|
|
|
218
|
|
|
Common stock, Class B—$0.01 par value; 50,000,000 shares authorized;
13,678,345 and 13,958,345 shares issued and outstanding at March 31,
2009 and December 31, 2008
|
|
|
137
|
|
|
|
140
|
|
|
Additional paid-in capital
|
|
|
340,338
|
|
|
|
336,454
|
|
|
Treasury stock, 243,040 shares at cost at March 31, 2009 and
December 31, 2008
|
|
|
(9,114
|
)
|
|
|
(9,114
|
)
|
|
Retained earnings
|
|
|
377,456
|
|
|
|
352,978
|
|
|
Accumulated other comprehensive loss
|
|
|
(145
|
)
|
|
|
(140
|
)
|
|
TOTAL STOCKHOLDERS' EQUITY
|
|
|
708,893
|
|
|
|
680,536
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
$
|
1,069,555
|
|
|
$
|
1,021,712
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MANTECH INTERNATIONAL CORPORATION
|
|
CONSOLIDATED STATEMENTS OF INCOME
|
|
(Dollars in Thousands Except Per Share Amounts)
|
|
|
|
|
|
|
|
(unaudited)
|
|
|
|
Three months ended March 31,
|
|
|
|
2009
|
|
2008
|
|
|
|
|
|
|
|
|
|
|
|
REVENUES
|
|
$
|
449,570
|
|
|
$
|
425,072
|
|
|
Cost of services
|
|
|
370,304
|
|
|
|
355,718
|
|
|
General and administrative expenses
|
|
|
38,908
|
|
|
|
34,800
|
|
|
OPERATING INCOME
|
|
|
40,358
|
|
|
|
34,554
|
|
|
Interest expense
|
|
|
(303
|
)
|
|
|
(1,642
|
)
|
|
Interest income
|
|
|
69
|
|
|
|
211
|
|
|
Other expense, net
|
|
|
(3
|
)
|
|
|
(120
|
)
|
|
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
|
|
|
40,121
|
|
|
|
33,003
|
|
|
Provision for income taxes
|
|
|
(15,643
|
)
|
|
|
(13,070
|
)
|
|
NET INCOME
|
|
$
|
24,478
|
|
|
$
|
19,933
|
|
|
|
|
|
|
|
|
|
|
|
|
BASIC EARNINGS PER SHARE:
|
|
|
|
|
|
|
|
|
|
Class A basic earnings per share
|
|
$
|
0.69
|
|
|
$
|
0.58
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding
|
|
|
21,594
|
|
|
|
20,319
|
|
|
|
|
|
|
|
|
|
|
|
|
Class B basic earnings per share
|
|
$
|
0.69
|
|
|
$
|
0.58
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding
|
|
|
13,912
|
|
|
|
14,238
|
|
|
|
|
|
|
|
|
|
|
|
|
DILUTED EARNINGS PER SHARE:
|
|
|
|
|
|
|
|
|
|
Class A diluted earnings per share
|
|
$
|
0.68
|
|
|
$
|
0.57
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding
|
|
|
21,955
|
|
|
|
20,782
|
|
|
|
|
|
|
|
|
|
|
|
|
Class B diluted earnings per share
|
|
$
|
0.68
|
|
|
$
|
0.57
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding
|
|
|
13,912
|
|
|
|
14,238
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MANTECH INTERNATIONAL CORPORATION
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(Dollars in Thousands)
|
|
|
|
|
|
|
|
(unaudited)
|
|
|
|
Three months ended March 31,
|
|
|
|
2009
|
|
2008
|
|
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
24,478
|
|
|
$
|
19,933
|
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
|
|
Stock-based compensation
|
|
|
1,729
|
|
|
|
1,733
|
|
|
Excess tax benefits from exercise of stock options
|
|
|
(173
|
)
|
|
|
(842
|
)
|
|
Deferred income taxes
|
|
|
862
|
|
|
|
404
|
|
|
Depreciation and amortization
|
|
|
4,402
|
|
|
|
4,167
|
|
|
Change in assets and liabilities—net of effects from acquired
businesses:
|
|
|
|
|
|
|
|
|
|
Receivables-net
|
|
|
(36,863
|
)
|
|
|
(13,927
|
)
|
|
Prepaid expenses and other
|
|
|
6,066
|
|
|
|
5,363
|
|
|
Accounts payable and accrued expenses
|
|
|
(8,491
|
)
|
|
|
14,221
|
|
|
Accrued salaries and related expenses
|
|
|
(25,555
|
)
|
|
|
(15,285
|
)
|
|
Billings in excess of revenue earned
|
|
|
918
|
|
|
|
(960
|
)
|
|
Accrued retirement
|
|
|
174
|
|
|
|
(1,015
|
)
|
|
Other
|
|
|
647
|
|
|
|
1,219
|
|
|
Net cash flow from operating activities
|
|
|
(31,806
|
)
|
|
|
15,011
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
Purchases of property and equipment
|
|
|
(443
|
)
|
|
|
(576
|
)
|
|
Investment in capitalized software for internal use
|
|
|
(1,232
|
)
|
|
|
(459
|
)
|
|
Acquisition of businesses - net of cash acquired
|
|
|
(14,336
|
)
|
|
|
(213
|
)
|
|
Net cash flow from investing activities
|
|
|
(16,011
|
)
|
|
|
(1,248
|
)
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
Proceeds from exercise of stock options
|
|
|
1,767
|
|
|
|
4,231
|
|
|
Excess tax benefits from the exercise of stock options
|
|
|
173
|
|
|
|
842
|
|
|
Net borrowings (repayment) under the line of credit
|
|
|
51,100
|
|
|
|
(16,900
|
)
|
|
Net cash flow from financing activities
|
|
|
53,040
|
|
|
|
(11,827
|
)
|
|
|
|
|
|
|
|
|
|
|
|
NET INCREASE IN CASH AND CASH EQUIVALENTS
|
|
|
5,223
|
|
|
|
1,936
|
|
|
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
|
|
|
4,375
|
|
|
|
8,048
|
|
|
CASH AND CASH EQUIVALENTS, END OF PERIOD
|
|
$
|
9,598
|
|
|
$
|
9,984
|
|
|
|
|
|
|
|
|
|
|
|

ManTech International Corporation
Joseph Cormier
Senior
Vice President, Corporate Development
703-218-8258
joe.cormier@mantech.com
or
Mark
Root
Executive Director, Corporate Communications
703-218-8397;
cell: 571-259-1169
mark.root@mantech.com