Highlights:
* Revenue: $676 million, up 6.7% from the first quarter of 2021
* EBITDA Margin: 9.7%
* Diluted EPS: $0.76
* Adjusted Diluted EPS: $0.89
* Cash Flow from Operations: $34 million
* Bookings of $464 million resulting in a book-to-bill ratio of 0.7
* Reiterates 2022 guidance on all measures
HERNDON, Va-- 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 2022, which ended March 31, 2022.
'In the first quarter, ManTech delivered strong operating results with solid performance across revenue, profitability measures, cash flow and bookings. The increase in the global threat environment is driving heightened focus on the importance of strategic, national capabilities to enable deterrence. ManTech has proudly supported evolving national security missions for over 50 years and remains fully committed to our customers' missions,' said ManTech Chairman, Chief Executive Officer and President Kevin M. Phillips.
Summary Operating Results
Three months ended
March 31,
(In Millions Except Per Share Amounts) 2022 2021
Revenue $ 675.5 $ 633.2
Operating Income $ 43.8 $ 42.4
Net Income $ 31.3 $ 32.3
Diluted EPS $ 0.76 $ 0.79
Non-GAAP Financial Measures*
EBITDA $ 65.8 $61.6
EBITDA Margin 9.7 % 9.7 %
Adjusted Net Income $36.6 $ 36.2
Adjusted Diluted EPS $ 0.89 $ 0.88
*Information about ManTech's use of non-GAAP financial measures, including a reconciliation of the non-GAAP financial measures to the most comparable financial measures calculated and presented in accordance with GAAP, is provided under 'Non-GAAP Financial Measures.'
Revenue was $676 million, reflecting 6.7% growth compared to the first quarter of 2021. Revenue growth was driven by a combination of acquisitions and organic expansion from contract awards.
Operating income was $43.8 million for the quarter, up 3% from the first quarter of 2021. Net income was $31.3 million and diluted earnings per share ('EPS') was $0.76, down 3% and 4% from the first quarter of 2021, respectively.
EBITDA was $65.8 million for the quarter, up 7% from the first quarter of 2021, representing an EBITDA margin of 9.7% for the quarter. Adjusted net income was $36.6 million and adjusted diluted EPS was $0.89, both up 1% from the first quarter of 2021.
Cash Management and Capital Deployment
For the quarter, cash from operations totaled $34 million. Days sales outstanding (DSO) were 63 days, an improvement of 5 days compared to the fourth quarter of 2021.
During the quarter, the Company paid $16.7 million, or $0.41 per share, as part of its regular cash dividend program to its common stockholders of record as of March 11, 2022. As of March 31, 2022, the Company had $60.3 million in cash and cash equivalents and $300.0 million of outstanding borrowings under its revolving-credit facility and delayed draw term loan facility. The Company has ample financial capacity to continue funding organic investments, pursue growth-oriented acquisitions and issue dividends while maintaining a strong balance sheet.
The Board of Directors has declared a quarterly dividend of $0.41 to be paid June 24, 2022, to all common stockholders of record as of June 10, 2022, as part of the Company's 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 $464 million in the quarter, representing a book-to-bill ratio of 0.7. The Company's awards in the quarter primarily consisted of new contracts and extensions to existing contracts from diverse sets of customers. In the first quarter, approximately 66% of the awards were for new business. Proposal activity remains steady and the Company anticipates incremental normalization of the contract award environment in the second half of 2022.
The Company's backlog of business at quarter end was $10.3 billion including $1.4 billion of funded backlog.
Forward Guidance
The Company is maintaining the range of its 2022 guidance for revenue, adjusted net income and adjusted diluted earnings per share as specified in the table below.
Measure Fiscal 2022 Guidance
Revenue (million) $2,600 - $2,700
Adjusted Net Income* (million) $141.3 - $148.5
Adjusted Diluted EPS* $3.42 - $3.60
*Information about ManTech's use of non-GAAP financial measures is provided under 'Non-GAAP Financial Measures'
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 the inherent difficulty of forecasting and quantifying these non-GAAP exclusions, which are necessary for such reconciliation without unreasonable efforts. Material changes to any one of these items could have significant effect on future GAAP results.
ManTech Chief Financial Officer Judith L. Bjornaas said, 'I am pleased with the steady quarterly financial performance and believe it offers a durable foundation for continued execution throughout the year.'
Conference Call
ManTech executive management will hold a conference call on May 4, 2022, 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 4163436. 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 the failure to compete effectively for new contract awards or to retain existing U.S. government contracts; disruptions to our business resulting from the COVID-19 pandemic or other similar global health epidemics, pandemics and/or other disease outbreaks; adverse changes in U.S. government spending for programs we support, whether due to changing mission priorities, socio-economic policies or federal budget constraints generally; inability to recruit and retain a sufficient number of employees with specialized skill sets or necessary security clearances who are in great demand and limited supply; failure to compete effectively for awards procured through the competitive bidding process, and the adverse impact of delays resulting from our competitors' protest of new contracts that are awarded to us; disruptions of our business or damage to our reputation resulting from cyberattacks and other security threats; failure to obtain option awards, task orders or funding under contracts; the government renegotiating, modifying or terminating our contracts; failure to comply with, or adverse change in, complex U.S. government laws and procurement regulations; adverse results in U.S. government audits or other investigations of our government contracts; failure to successfully integrate acquired companies or businesses into our operations or to realize any accretive or synergistic effects from such acquisitions; failure to mitigate risk associated with conducting business internationally; and adverse change in business conditions that may cause our investments in recorded goodwill to become impaired. 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. 25, 2022, 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: See full results at:
https://investor.mantech.com/press-releases/press-release-details/mantech-announces-financial-results-first-quarter-2022
Investor Relations Media
Stephen Vather Sheila Blackwell
VP, M&A and Investor Relations VP, Enterprise Marketing & Communications
(703) 218-6093 (301) 717-7345
Stephen.Vather@ManTech.com Sheila.Blackwell@ManTech.com
MANTECH INTERNATIONAL CORPORATION 