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FAIRFAX, Va.--(BUSINESS WIRE)--Feb. 27, 2008--ManTech International Corporation (Nasdaq:MANT), today announced results for the fourth quarter and for the full year ended December 31, 2007, that reflect strong growth in revenues and profitability across our business.
Fourth Quarter 2007 Results
For the fourth quarter of 2007, ManTech reported revenue of $421.8 million, up $131.1 million, or 45%, compared to $290.7 million for the same period in 2006. The results reflect an organic growth rate of 28% based on pro forma revenue for the fourth quarter 2006, which includes the effect of the SRS Technologies (May 2007) and McDonald Bradley (December 2007) acquisitions. Fourth quarter revenue growth was primarily driven by the Company's support to the nation's defense initiative both domestically and abroad, the acquisition of SRS and the increased level of material acquisitions to support mission-critical programs, such as Countermine.
Operating income in the fourth quarter was $36.4 million. Net income from continuing operations in the fourth quarter was $21.4 million, up 40%, compared to $15.3 million in the same period in 2006. Diluted earnings per share from continuing operations was $0.61 for the fourth quarter, up 36%, compared to $0.45 for the same period last year.
Full Year 2007 Results
Revenues for the full year 2007 were $1.448 billion, up $311 million, or 27%, over 2006 revenues of $1.137 billion. Revenue growth in 2007 was attributable to new business supporting national security programs for the Department of Defense, Intelligence Community, and Homeland Security related agencies. The results reflect a full year organic growth rate of 16% based on year-over-year pro forma revenue.
Operating income for the full year was $113.7 million. Net income from continuing operations for the full year was $67.3 million, up 21%, compared to $55.6 million in 2006. Diluted earnings per share from continuing operations was $1.95 for the full year, up 19%, compared to $1.64 for 2006.
"ManTech had an exceptional year, where we continued to deliver strong and consistent operating results," said George J. Pedersen, Chairman of the Board and Chief Executive Officer, ManTech International Corporation. "As we enter our fortieth year, ManTech has never been better positioned to capitalize on opportunities in the defense, intelligence and homeland security communities we serve, which should allow us to continue the momentum we have gained over the past several years."
Contract Awards & Backlog Metrics
ManTech had contract awards of $200 million for the fourth quarter 2007 and $1.24 billion for the full year 2007, with 77% or approximately $955 million coming from new business awards or expansion of existing contracts. ManTech's reported backlog as of December 31, 2007 was $3.24 billion and funded backlog was $758 million.
"2007 was a great year across many operating metrics and given our large amount of new and expanding business opportunities, we are excited about our prospects to deliver on our objectives in 2008," said Robert A. Coleman, President and Chief Operating Officer, ManTech International Corporation.
Cash Flow and Balance Sheet Information
Days Sales Outstanding of accounts receivable, or DSOs, were 72 days as of December 31, 2007 and were 70 days prior to the addition of MBI in mid-December. For the year cash flow from operations was over $63 million and net debt at the end of December was approximately $157 million.
McDonald Bradley Acquisition Completed
The Company closed the MBI acquisition on December 18, 2007. Headquartered in Herndon, VA and founded in 1985, MBI was a privately-held company and leading provider of high-end, mission-critical, technology-differentiated solutions primarily in the areas of Service Oriented Architectures, data interoperability and information assurance. Over 60% of the company's revenue is derived from DOD, Intelligence and Homeland Security markets with the Defense Intelligence Agency (DIA) as their largest customer. The company is a prime contractor on the Department of Homeland Security's (DHS) EAGLE contract. Two-thirds of MBI's 270 employees hold security clearances with 45 percent holding Top Secret level or above clearances.
Company Guidance
The Company's first quarter 2008 and full year 2008 guidance is summarized in the table below. ManTech's guidance does not include any future acquisitions or divestitures.
(Dollars in millions, except earnings per share amounts)
1st Quarter 2008 Full Year 2008
----------------------------------------------------------------------
Revenue $425 - $435 $1,725 - $1,785
----------------------------------------------------------------------
Net Income $19.7 - $20.6 $82.7 - $86.8
----------------------------------------------------------------------
Diluted Earnings Per Share from
Continuing Operations $0.56 - $0.59 $2.34 - $2.46
----------------------------------------------------------------------
Weighted Average Shares Outstanding 35.1 million 35.3 million
----------------------------------------------------------------------
The Company's revenue guidance for the first quarter and full year 2008 reflects the continuation of strong business momentum in its core national security and defense business. ManTech's first quarter 2008 revenue guidance represents total revenue growth of 44% to 48% and pro forma organic revenue growth of 19% to 22%. ManTech's 2008 full year revenue guidance represents total revenue growth of 19% to 23% and pro forma organic revenue growth of 10% to 13% without any future acquisitions. The organic growth rate is derived by adding 2007 revenue for both SRS and MBI to ManTech's estimated 2007 annual revenue. The Company's first quarter 2008 earnings per share range represents 44% to 51% growth over first quarter 2007 and for the full year 2008 represents 20% to 26% growth over 2007.
Conference Call
ManTech executive management will hold a conference call today at 5 p.m. EST, to discuss fourth quarter and full year 2007 results and answer questions. Interested parties may access the call by dialing (888) 211-4432 (domestic) or (913) 312-0673 (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 8 p.m. today and will remain available through midnight, March 12, 2008. To access the replay, call (888) 203-1112 (domestic) or (719) 457-0820 (international). The confirmation code for the replay is 8945916. 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 over 7,300 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, technology and software development, enterprise security architecture, information assurance, intelligence operations support, network and critical infrastructure protection, information technology, communications integration and engineering support. 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 42 countries. In 2007, ManTech was named one of BusinessWeek.com's fastest growing tech companies; to Business 2.0 magazine's 100 Fastest Growing Technology Companies list for the second year in a row; to the Deloitte & Touche list of the 50 fastest growing technology companies in Virginia; and a GI Jobs magazine Top Ten Military Friendly Employer. 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 consolidation; 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; 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 March 9, 2007, 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)
December 31,
--------------------------
2007 2006
------------ -------------
(unaudited) (unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 8,048 $ 41,510
Receivables--net 337,467 236,445
Prepaid expenses and other 19,104 13,581
Assets of operations held for sale - 3,373
------------ -------------
Total Current Assets 364,619 294,909
Property and equipment--net 14,170 13,881
Goodwill 451,832 238,322
Other intangibles--net 82,976 40,180
Employee supplemental savings plan assets 17,999 15,427
Other assets 5,907 10,533
------------ -------------
TOTAL ASSETS $ 937,503 $ 613,252
============ =============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current portion of debt $ 126,000 $ -
Accounts payable and accrued expenses 100,447 72,125
Accrued salaries and related expenses 61,429 47,356
Deferred income taxes--current - 140
Billings in excess of revenue earned 8,334 5,284
Liabilities of operations held for sale - 1,815
------------ -------------
Total Current Liabilities 296,210 126,720
Debt--net of current portion 39,000 -
Accrued retirement 18,973 16,750
Other long-term liabilities 7,848 3,302
Deferred income taxes--non-current 24,167 7,464
------------ -------------
TOTAL LIABILITIES 386,198 154,236
------------ -------------
COMMITMENTS AND CONTINGENCIES - -
STOCKHOLDERS' EQUITY:
Common stock, Class A--$0.01 par value;
150,000,000 shares authorized;
20,474,379 and 19,020,181 shares issued
at December 31, 2007 and 2006;
20,231,339 and 19,020,181 shares
outstanding at December 31, 2007 and
2006 205 190
Common stock, Class B--$0.01 par value;
50,000,000 shares authorized;
14,279,813 and 15,032,293 shares issued
and outstanding at December 31, 2007
and 2006 143 150
Additional paid-in capital 297,827 263,409
Treasury stock, 243,040 shares at cost
at December 31, 2007 (9,114) -
Retained earnings 262,686 195,604
Accumulated other comprehensive loss (147) (120)
Unearned ESOP shares (295) (217)
Deferred compensation - 640
Shares held in grantor trust - (640)
------------ -------------
TOTAL STOCKHOLDERS' EQUITY 551,305 459,016
------------ -------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 937,503 $ 613,252
============ =============
MANTECH INTERNATIONAL CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(In Thousands Except Per Share Amounts)
Three months ended Year ended
December 31, December 31,
----------------------- -------------------------
2007 2006 2007 2006
----------- ----------- ----------- -------------
(unaudited) (unaudited) (unaudited) (unaudited)
REVENUES $421,754 $290,712 $1,448,098 $ 1,137,178
Cost of services 353,861 241,925 1,214,150 944,150
General and
administrative
expenses 31,453 26,320 120,244 102,378
----------- ----------- ----------- -------------
OPERATING INCOME 36,440 22,467 113,704 90,650
Gain on disposal
of operations - 955 - 955
Interest expense (1,680) (252) (5,103) (2,375)
Interest income 155 370 1,261 809
Other income
(expense), net 1 374 263 382
----------- ----------- ----------- -------------
INCOME BEFORE
PROVISION FOR
INCOME TAXES 34,916 23,914 110,125 90,421
Provision for income
taxes (13,536) (8,621) (42,798) (34,825)
----------- ----------- ----------- -------------
INCOME FROM
CONTINUING
OPERATIONS 21,380 15,293 67,327 55,596
(Loss) from
discontinued
operations, net of
taxes - (1,374) (458) (4,895)
Gain on sale of
discontinued
operation, net of
taxes (to CEO) - - 338 -
----------- ----------- ----------- -------------
NET INCOME $ 21,380 $ 13,919 $ 67,207 $ 50,701
=========== =========== =========== =============
BASIC EARNINGS
(LOSS) PER SHARE:
Class A common
stock
Income from
continuing
operations $ 0.62 $ 0.45 $ 1.97 $ 1.66
(Loss) on
discontinued
operations, net
of taxes - (0.04) (0.00) (0.15)
----------- ----------- ----------- -------------
Class A basic
earnings per
share $ 0.62 $ 0.41 $ 1.97 $ 1.51
=========== =========== =========== =============
Weighted average
common shares
outstanding 20,064 18,821 19,683 18,450
=========== =========== =========== =============
Class B common
stock
Income from
continuing
operations $ 0.62 $ 0.45 $ 1.97 $ 1.66
(Loss) on
discontinued
operations, net
of taxes - (0.04) (0.00) (0.15)
----------- ----------- ----------- -------------
Class B basic
earnings per
share $ 0.62 $ 0.41 $ 1.97 $ 1.51
=========== =========== =========== =============
Weighted average
common shares
outstanding 14,346 15,053 14,431 15,062
=========== =========== =========== =============
DILUTED EARNINGS
(LOSS) PER SHARE:
Class A common
stock
Income from
continuing
operations $ 0.61 $ 0.45 $ 1.95 $ 1.64
(Loss) on
discontinued
operations, net
of taxes - (0.04) (0.00) (0.15)
----------- ----------- ----------- -------------
Class A diluted
earnings per
share $ 0.61 $ 0.41 $ 1.95 $ 1.49
=========== =========== =========== =============
Weighted average
common shares
outstanding 20,522 19,288 20,102 18,893
=========== =========== =========== =============
Class B common
stock
Income from
continuing
operations $ 0.61 $ 0.45 $ 1.95 $ 1.64
(Loss) on
discontinued
operations, net
of taxes - (0.04) (0.00) (0.15)
----------- ----------- ----------- -------------
Class B basic
earnings per
share $ 0.61 $ 0.41 $ 1.95 $ 1.49
=========== =========== =========== =============
Weighted average
common shares
outstanding 14,346 15,053 14,431 15,062
=========== =========== =========== =============
MANTECH INTERNATIONAL CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in Thousands)
Year Ended December 31,
--------------------------
2007 2006
------------ -------------
(unaudited) (unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 67,207 $ 50,701
Adjustments to reconcile net income to net
cash provided by operating activities:
Loss from discontinued operations - net of
tax 458 4,929
Gain on disposal of operations - (955)
Gain on sale of discontinued operation, net
of tax (338) -
Unrealized loss (gain) on warrants 76 (543)
Stock-based compensation 6,706 5,830
Excess tax benefits from the exercise of
stock options (2,374) (2,918)
Deferred income taxes 284 (1,271)
Depreciation and amortization 14,244 10,177
Change in assets and liabilities--net of
effects from acquired and disposed
businesses:
Receivables-net (45,275) 5,180
Prepaid expenses and other 5,498 (4,271)
Accounts payable and accrued expenses 16,350 17,950
Accrued salaries and related expenses (143) 4,777
Billings in excess of revenue earned (158) (1,328)
Accrued retirement 2,120 3,546
Other 231 (897)
------------ -------------
Net cash flow from operating activities of
continuing operations 64,886 90,907
Net cash flow from discontinued operations (1,562) (6,551)
------------ -------------
Net cash flow from operating activities 63,324 84,356
------------ -------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment (2,721) (5,160)
Proceeds from the sale of property and
equipment 1,828 6
Investment in capitalized software for
internal use (2,113) (2,245)
Exercise of GSE warrants (133) -
Proceeds from sale of GSE shares 600 -
Acquisition of businesses, net of cash
acquired (275,747) (19,845)
Proceeds from disposal of operations and
equity method investment - 2,000
------------ -------------
Net investing cash flow from continuing
operations (278,286) (25,244)
Net investing cash flow from discontinued
operations 3,000 (465)
------------ -------------
Net cash flow from investing activities (275,286) (25,709)
------------ -------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of stock options 13,075 16,790
Excess tax benefits from the exercise of
stock options 2,374 2,918
Excess tax benefit from distribution of
shares held in grantor trust 8,581 -
Treasury stock acquired (9,114) -
Borrowing under line of credit, non-current 39,000 -
Net increase (decrease) in borrowing under
lines of credit, net of associated
origination fees 124,584 (42,402)
Repayment of notes payable - (121)
------------ -------------
Net cash flow from financing activities 178,500 (22,815)
------------ -------------
NET (DECREASE) INCREASE IN CASH AND CASH
EQUIVALENTS (33,462) 35,832
CASH AND CASH EQUIVALENTS, BEGINNING OF
PERIOD 41,510 5,678
------------ -------------
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 8,048 $ 41,510
============ =============
CONTACT: ManTech International Corporation, Fairfax
Joseph Cormier
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
SOURCE: ManTech International Corporation
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