ManTech Announces Financial Results for First Quarter of 2012
3 days 56 minutes ago - BusinessWire via Comtex
--Operating Income: $45.7 million
--Diluted EPS: $0.69
--Cash Flow from Operations: $52 million
--Dividends: $0.21 per share paid in March; $0.21 per share authorized for June
ManTech International Corporation (NASDAQ:MANT) (www.mantech.com
), a leading provider of innovative technologies and solutions for mission-critical national security programs, today announced financial results for the first quarter of 2012, which ended March 31, 2012.
"During this quarter we focused on positioning ManTech in high-growth, high-margin markets with the acquisitions of HBGary and Evolvent," said ManTech Chairman and Chief Executive Officer George J. Pedersen. "Both the cyber security and health care informatics markets offer strong potential for organic growth and allow us to offer solutions to both government and commercial customers. Our disciplined focus on cash, as evidenced by excellent collections this quarter, enables us to return dividends to our shareholders and to maintain a robust acquisition program. We are confident that ManTech will thrive even as the nation winds down its involvement in overseas conflicts because of our expanding presence in growth markets, our excellent reputation for efficient execution and our broad reach across key intelligence and defense customers. I believe ManTech is in a solid position for the future."
Summary Operating Results
Revenues for the quarter were $676.5 million, compared to $700.9 million in the first quarter of 2011. Quarterly revenues increased across the company's intelligence and cyber security programs, which partially offset industry-wide decreases in support to wartime missions.
Operating income for the quarter was $45.7 million, compared to $55.9 million in the first quarter of 2011. Operating margin of 6.8 percent was affected by increased market pressures on in-theater work, continued movement to cost-plus contracts, as well as increased levels of bid-and-proposal and acquisition-related expense. Net income for the quarter was $25.6 million, compared to $31.9 million in the first quarter of 2011. Diluted earnings per share for the quarter were $0.69, compared to $0.87 in the first quarter of 2011.
Cash Management and Capital Deployment
Cash flow from operations for the quarter was $52 million or 2.0 times net income. Days sales outstanding (DSO) were 76 days, compared to 80 days in the first quarter of 2011. As of March 31, 2012, ManTech had $119 million in cash and cash equivalents and $200 million in high-yield debt with no outstanding borrowings on its $500 million revolving-credit facility.
During the quarter, the company paid $7.7 million, or $0.21 per share, to its common stockholders of record as of March 9, 2012. The company also invested $39 million in the quarter to acquire the business of Evolvent Technologies, Inc., a leading federal healthcare systems integrator whose systems and processes enable better decision-making at the point of care and full integration of medical information across different platforms. ManTech expects Evolvent to contribute solid growth and operating margins and be accretive to earnings per share in 2012. Shortly after the acquisition, the Air Force Medical Service (AFMS) awarded Evolvent a prime position on the $958 million Consultant Advisory and Technical Services (CATS) contract.
After the close of the quarter, the company paid $24 million to acquire the business of HBGary, a cyber security developer whose comprehensive suite of software products detect, analyze, and diagnose advanced persistent threats and targeted malware. The company has an impressive list of customers in the financial services, energy, critical infrastructure and technology sectors. Since the acquisition announcement, HBGary has significantly increased its sales, including new contracts with a leading credit card company, a large payment processing services company, an international bank, energy companies, major retail chains, large federal agencies, and large federal contractors.
The Board of Directors has declared that the company will pay a cash dividend of $0.21 per share on June 22, 2012 to all common stockholders of record as of June 8, 2012 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 (bookings) totaled $308 million in the first quarter, representing a book-to-bill ratio of 0.5. Large, single-award contracts contributing to the quarterly bookings include:
-- Federal Bureau of Investigation (FBI) Information Services Support. Under a new contract award, ManTech will operate, maintain, refresh and enhance the FBI Criminal Justice Information Services (CJIS) Division's portfolio of information technology systems that process and share mission critical information for members of the law enforcement community in the United States and abroad. The CJIS Operations and Maintenance Professional Services (COMPS) contract award is valued at $69 million over four and one-half years.
-- Naval Air Systems Command (NAVAIR) Flight Test Support. Under a three-year, $46 million contract, ManTech will continue to provide flight test support solutions for the NAVAIR Manned and Unmanned Air Vehicle Evaluation Division (AIR 5.1.6), including program management, flight test engineering, software development and test, air vehicle stores compatibility, ballistics analysis and modeling, simulation and analysis solutions.
-- NASA Langley Administrative, Media, and Professional Services (LAMPS) Contract. NASA Langley Research Center awarded the joint venture team of ManTech and Genex Systems, LLC, a five-year prime contract to provide administrative, media and professional support services to organizations across the research center. ManTech's share of the $94 million award is approximately $24 million.
-- Naval Surface Warfare Center, Carderock Division (NSWCCD) Acoustic Engineering Services. NSWCCD awarded ManTech a three-year, $18 million contract to operate and maintain existing acoustic measurement systems and to design, fabricate, assemble, test and evaluate new systems. These efforts will be performed at designated U.S. and foreign shore-based facilities as well as at sea aboard various types and classes of test vehicles.
The Air Force CATS contract indicated above is a multiple-award contract under which ManTech will provide the Air Force Medical Service with a wide range of management and professional support, technical expertise and engineering services to maintain and reengineer its global operations. ManTech was also awarded a prime position on the United States Government Omnibus Network Enterprise (USG ONE) vehicle administered by the Department of Defense, Defense Information Systems Agency (DISA). Under this five-year, $476 million multiple-award contract, ManTech will provide information and communications support to various federal agencies.
The company's backlog of business at the end of quarter was $4.3 billion, of which $1.2 billion was funded. With high levels of proposal activity and submitted awards awaiting adjudication, the company expects to sustain strong contract award activity and increase backlog for the remainder of 2012.