ManTech International Corporation Reports FY 2002 Fourth Quarter and Full Year Results.Business Editors/High-Tech Writers FAIRFAX Fairfax, city (1990 pop. 19,622), historic seat of Fairfax co., NE Va., a residential suburb of Washington, D.C.; inc. 1892, as a city 1961 (at which time it became independent and no longer included in a county). There is some light manufacturing. , Va.--(BUSINESS WIRE)--March 4, 2003 ManTech International Corporation (Nasdaq:MANT) -- Fourth Quarter Revenue Up 23.7% From Prior Year -- Full Year Revenue of $500.2 Million, 15.9% Increase over 2001 -- Fourth Quarter and Full Year Income From Continuing Operations increased 54.8% and 40.6%, respectively -- Completed Acquisition of CTX Corporation ManTech International Corporation (Nasdaq:MANT) today announced the following results for its fourth quarter and full fiscal year ending December December: see month. 31, 2002. SUMMARY 2002 fourth quarter revenue increased to $142.5 million, up 23.7% compared with the same period in 2001. Income from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the for the fourth quarter increased 54.8% to $6.3 million while net income was reported at $3.4 million up from $1.1 million for the fourth quarter 2001. ManTech fully diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of from continuing operations for the fourth quarter ending December 31, 2002 were $0.23. Fully diluted earnings per share under GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). for the fourth quarter were $0.13. ManTech reported fiscal year 2002 revenue of $500.2 million, reaching $500 million for the first time in the company's history, an increase of 15.9% over the previous year, while income from continuing operations was up 40.6% to $22.8 million in 2002 compared with $16.2 million for 2001. ManTech reported 2002 full year net income of $19.2 million compared with $795 thousand for 2001. ManTech's 2002 full year fully diluted earnings per share from continuing operations came in at $0.88. Fully diluted earnings per share under GAAP for full year 2002 were $0.74. Commenting on the fourth quarter and 2002 full year, ManTech Chairman of the Board, President, and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. George George, river, c.345 mi (560 km) long, rising in a lake on the Quebec-Labrador boundary, E Canada. It flows N through Indian Lake (125 sq mi/324 sq km) to Ungava Bay (an arm of Hudson Strait). J. Pedersen stated, "2002 was a historic year for ManTech International Corporation--we started the year with our IPO (Initial Public Offering) The first time a company offers shares of stock to the public. While not a computer term per se, many founders, employees and insiders of computer companies have found this acronym more exciting than any tech term they ever heard. in February and concluded with the follow-on offering Follow-On Offering An offering of additional shares after a company has had an initial public offering. Notes: This sometimes means the company is strapped for cash. So they need to issue more shares to pay bills or finance a new project. in December. We also completed two strategic acquisitions, Aegis Research and CTX CTX Context (Management; Tandem) CTX Centex Corporation (stock symbol) CTX Centrex CTX Cyclophosphamide CTX Corporate Trade Exchange CTX Cytoxan CTX Cholera Toxin CTX Clinical Trial Exemption Corporation. We executed the offerings and the acquisitions while remaining sharply focused on our core mission of supporting National Security programs with advanced technology solutions." Pedersen continued, "From a performance perspective, 2002 was one of our best years ever--strong organic growth complemented by margin expansion--we look forward to similar progress in 2003." Finally, Pedersen commented on two recently announced acquisitions by ManTech: "ManTech IDS and ManTech MSM MSM - Micronetics Standard MUMPS mark a great start for 2003, expanding significantly our platform to target National Security programs." Full Year 2002 ManTech reported revenue for the fiscal year ending December 31, 2002 of $500.2 million. The 15.9% increase over 2001 was attributable primarily to increased volume of work under existing contracts and revenue from recent acquisitions. $23.7 million in revenue came from ManTech Aegis Research Corporation since its acquisition by ManTech on August 5, 2002, and ManTech CTX Corporation added $1.6 million after its acquisition on December 11, 2002. ManTech's core enterprise, excluding acquisitions, had revenue of $474.9 million in 2002, reflecting organic growth over 2001 of 10.1%. Growth in the service areas of secure systems and infrastructure solutions and information technology solutions contributed significantly to the increased revenue, especially expanded IT and security work for the U.S. Army's Communication and Electronics Command in Europe and support for various Department of State programs. Income from operations increased 28.3% to $38.5 million compared with $30.1 million in 2001. Income from operations return on sales Return on sales A measurement of operational efficiency equalingnet pre-tax profits divided by net sales expressed as a percentage. return on sales The portion of each dollar of sales that a firm is able to turn into income. also improved for the year 2002, increasing to 7.7% from 7.0% in 2001. The increased operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. and margins were partially a result of the company executing its strategy to increase the percentage of work under GSA (1) (Global mobile Suppliers Association, Sawbridgeworth, U.K., www.gsacom.com) A membership organization of suppliers of GSM products and services. Its goal is to promote GSM as the worldwide mobile communications standard. See GSM Association and GSM. contract schedules, generally implemented as time and materials labor and materials (time and materials) n. what some builders or repair people contract to provide and be paid for, rather than a fixed price or a percentage of the costs. or fixed price contracts which carry higher margins than traditional cost-plus government contracts. During fiscal year 2002, ManTech derived approximately 39.8% of its revenue from GSA schedule contracts versus 32.6% during 2001. ManTech's income from continuing operations was up 40.6% to $22.8 million in 2002 compared with $16.2 million for 2001. ManTech reported 2002 full year net income of $19.2 million compared with $795 thousand for 2001. ManTech's 2002 full year fully diluted earnings per share from continuing operations came in at $0.88. Fully diluted earnings per share under GAAP for full year 2002 were $0.74. For comparison purposes, after adjusting 2001 full year results and weighted average shares outstanding as if the company's IPO had occurred on February 12, 2001, (see note to Summary-Financial Table), full year pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. from continuing operations for the core ManTech business increased from $0.73 in 2001 to $0.84 in 2002. Discontinued Operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. : ManTech's discontinued operations included three foreign and two domestic commercial businesses as of September 30, 2001. As reported previously, four of the five entities were successfully disposed dis·pose v. dis·posed, dis·pos·ing, dis·pos·es v.tr. 1. To place or set in a particular order; arrange. 2. of prior to the end of the third quarter 2002. The sole remaining discontinued operation discontinued operation A segment of a business that has been abandoned or sold or for which plans for one or another of these actions have been approved. See also continuing operations. , the Australia-based consulting business, was sold in February 2003, after extended negotiations. ManTech reported that market conditions for the sale of the Australia-based business continued to deteriorate de·te·ri·o·rate v. 1. To grow worse in function or condition. 2. To weaken or disintegrate. since last estimating expected losses to dispose of To determine the fate of; to exercise the power of control over; to fix the condition, application, employment, etc. of; to direct or assign for a use. See also: Dispose the company. Based on ManTech's desire to exit the business, the company accepted the terms of a sale that resulted in an additional loss (net of tax) of $2.6 million in the fourth quarter of 2002. The company also took an additional charge of $0.3 million associated with contingencies Contingencies (ISSN 1048-9851) is the bimonthly magazine of the American Academy of Actuaries, providing a large and diverse readership with general interest and technical articles on a wide range of issues related to the actuarial profession. related to earlier disposed of operations. "The sale of ManTech's Australia-based consulting business marks the end of our discontinued operations process that we initiated in 2001," commented John A. Moore Moore, city (1990 pop. 40,761), Cleveland co., central Okla., a suburb of Oklahoma City; inc. 1887. Its manufactures include lightning- and surge-protection equipment, packaging for foods, and auto parts. , Jr., ManTech Executive Vice President and CFO See Chief Financial Officer. . Moore noted, "Although we were compelled to take additional charges as a result of market realities, we are pleased that this process is complete so that we can focus even more on our strategy to expand in our core federal government business supporting intelligence community and Department of Defense customers." ManTech also reported that no discontinued operations charges are anticipated in 2003. Key Performance Metrics Performance metrics are measures of an organizations activities and performance. Performance metrics should support a range of stakeholder needs from customers, shareholders to employees [1]. : At December 31, 2002, the company's backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. was $1.4 billion, an increase of 49.3% over 2001's $907.5 million. ManTech's funded backlog was reported at $196.7 million. In addition, the company's GSA schedule contract value on December 31, 2002 was $914.8 million, up from $864.8 million on the same date in 2001. The company determines its GSA schedule contract value by multiplying mul·ti·ply 1 v. mul·ti·plied, mul·ti·ply·ing, mul·ti·plies v.tr. 1. To increase the amount, number, or degree of. 2. Mathematics To perform multiplication on. the average monthly amount of funded work that it has been awarded under each of its GSA schedule contracts over the past fiscal year, by the number of months remaining in the term of those contracts, including existing options, except that it does not take into account remaining contract terms of more than 72 months. For the year ended December 31, 2002, ManTech derived approximately 96.3% of its revenue from Federal government contracts, and 90.8% of that revenue was derived from contracts on which ManTech was the prime contractor. Revenue from the Department of Defense and the intelligence community accounted for approximately 86.6%. Revenue from secure systems and infrastructure solutions and information technology work accounted for 75.7% of revenue in 2002 up from 70.3% in 2001. Approximately 24.3% of revenue came from systems engineering solutions, down from 29.7% in 2001. John Moore John Moore may be: Clergy
A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: improved by 70 basis points. We also hit our internal revenue growth rate target of 10%, a sign that our core ManTech business remains healthy. Complementing execution in our legacy business was expansion through acquisition--ManTech Aegis Research and ManTech CTX, and more recently IDS and MSM. We believe all four acquisitions will emerge as critical engines of growth and margin expansion as we enter 2003." Fourth Quarter 2002 Details Revenue for the fourth quarter 2002 came in at $142.5 million, including $14.6 million from ManTech Aegis Research Corporation and $1.6 million from ManTech CTX Corporation, an acquisition completed on December 11, 2002. Core ManTech revenue (which excludes both acquisitions) was reported at $126.3 million, up from $115.2 million for the same period in 2001, an increase of 9.6%. Income from operations for the fourth quarter increased 36.3% to $10.7 million compared with $7.8 million in 2001. Income from operations return on sales for the fourth quarter increased to 7.5%, reflecting 7.8% for ManTech Aegis Research Corporation and 7.5% for core ManTech, up from 6.8% for the same period last year. ManTech's income from continuing operations for the period was $6.3 million, including $0.5 million from ManTech Aegis Research Corporation and a non-material contribution from ManTech CTX due to timing of the transaction closing at the end of the quarter. Core ManTech fourth quarter 2002 income from continuing operations increased 41.5% to $5.8 million, compared with $4.1 million for the same period in 2001. Net income for the fourth quarter 2002 for core ManTech was $2.9 million compared with $1.1 million for the same period in 2001. ManTech's fully diluted earnings per share (EPS) from continuing operations for the fourth quarter were $0.23, $0.02 from ManTech Aegis Research and $0.21 from core ManTech. For comparison purposes, after adjusting the fourth quarter 2001 results and weighted average shares outstanding as if the company's IPO had occurred on February 12, 2001, (see note to Summary-Financial Table), fourth quarter pro forma fully diluted EPS from continuing operations for the core ManTech business increased from $0.18 in 2001 to $0.21 in 2002. Fully diluted EPS prepared in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting (GAAP) for the fourth quarter ending December 31, 2002, was $0.13. ManTech Aegis Research Corporation contributed $0.02 to the total. Fourth Quarter 2002 Operational Highlights: -- Naval Air Systems Command The Naval Air Systems Command, or NAVAIR, is the part of the United States Navy which provides materiel support for naval aircraft and airborne weapon systems, such as guided missiles. NAVAIR was established in 1966 as the successor to the Navy's Bureau of Naval Weapons (BuWeps). (NAVAIR NAVAIR Naval Air Systems Command ) and Naval Air Warfare air warfare Military operations conducted by airplanes, helicopters, or other aircraft against aircraft or targets on the ground and in the water. Air warfare did not become important until World War I (1914–18). Center Aircraft Division (NAWCAD NAWCAD Naval Air Warfare Center Aircraft Division ) Surface Communications and Information Systems Division (SCISD), St. Inigoes, Maryland Maryland (mâr`ələnd), one of the Middle Atlantic states of the United States. It is bounded by Delaware and the Atlantic Ocean (E), the District of Columbia (S), Virginia and West Virginia (S, W), and Pennsylvania (N). contract with a total estimated value of $33.4 million over the term of a one-year base period plus four one-year options. -- United States Army Medical Command The U.S. Army Medical Command, known as MEDCOM, is a major command of the U.S. Army that provides command and control of the Army's fixed-facility medical, dental, and veterinary treatment facilities, providing preventive care, medical research, development and training (MEDCOM MEDCOM Medical Command (US Army) MEDCOM Mediterranean Regional Committee for START ), Ft. Sam (1) (Security Accounts Manager) The part of Windows NT that manages the database of usernames, passwords and permissions. A SAM resides in each server as well as in each domain controller. See PDC and trust relationship. Houston, Texas information technology services contract: estimated value of $6.9 million over a term of a one-year base period plus four one-year options under GSA Schedule. -- Space and Naval Warfare naval warfare Military operations conducted on, under, or over the sea and waged against other seagoing vessels or targets on land or in the air. The earliest naval attacks were raids by the armed men of a tribe or town using fishing boats or merchant ships. Systems Center (SPAWAR SPAWAR Space & Naval Warfare Systems Command (US Navy) SPAWAR Space Warfare ) in Charleston, SC contract with an estimated value of $41 million over the term of a one-year base period plus four one-year options. -- Acquired CTX Corporation, of Vienna, Virginia Vienna is a town in Fairfax County, Virginia, United States. The population was 14,453 at the 2000 census and it has grown by about 3% since[1]. In July of 2005, CNN/Money and Money , a leading provider of information technology and software strategies and solutions to the national intelligence community. Company Guidance The company provided initial financial performance expectations for its first fiscal quarter and full year FY2003. As ManTech Aegis Research is now fully integrated into the ManTech enterprise, ManTech will not report ManTech Aegis Research Corporation results separately in 2003. Similarly, general performance guidance for ManTech IDS, ManTech CTX and ManTech MSM will be provided, but specific separate results will not be released as these companies integrate into the ManTech enterprise in 2003. The following guidance does not include future acquisitions:
1st Quarter Full Year
2003 2003
----------------------------------------------------------------------
$140 million - $667 million -
Revenue $143 million $680 million
----------------------------------------------------------------------
Diluted Earnings Per Share $0.20 - $0.22 $1.01 - $1.05
----------------------------------------------------------------------
Weighted Average Common
Shares Outstanding 32,131,405 32,202,304
----------------------------------------------------------------------
Financials Follow
MANTECH INTERNATIONAL CORPORATION
Summary - Financial Tables
(Dollars in Thousands Except Per Share Amounts)
Year Ended Quarter Ended
December 31, December 31,
----------------------- -----------------------
2002 2001 2002 2001
----------- ----------- ----------- -----------
REVENUES $500,219 $431,436 $142,492 $115,170
COST OF SERVICES 407,316 353,337 115,431 94,925
----------- ----------- ----------- -----------
GROSS PROFIT 92,903 78,099 27,061 20,245
----------- ----------- ----------- -----------
RETURN ON SALES % 18.57% 18.10% 18.99% 17.58%
COSTS AND EXPENSES:
General &
administrative 51,833 44,787 15,487 11,621
Depreciation &
amortization 2,530 3,262 923 811
----------- ----------- ----------- -----------
Total costs &
expenses 54,363 48,049 16,410 12,432
----------- ----------- ----------- -----------
INCOME FROM OPERATIONS 38,540 30,050 10,651 7,813
RETURN ON SALES % 7.70% 6.97% 7.47% 6.78%
Interest expense 647 2,922 325 539
Other (income) expense (629) (1,202) (293) 184
----------- ----------- ----------- -----------
INCOME BEFORE
PROVISION FOR INCOME
TAXES AND MINORITY
INTEREST 38,522 28,330 10,619 7,090
Provision for income
taxes (15,690) (12,083) (4,303) (3,021)
Minority interest --- (7) (1) 11
----------- ----------- ----------- -----------
INCOME FROM CONTINUING
OPERATIONS 22,832 16,240 6,315 4,080
Loss from discontinued
operations - net --- (6,533) --- ---
Loss on disposal of
discontinued
operations - net (3,681) (8,912) (2,886) (3,022)
----------- ----------- ----------- -----------
NET INCOME (LOSS) $19,151 $795 $3,429 $1,058
=========== =========== =========== ===========
BASIC EARNINGS (LOSS)
PER SHARE:
Income from
continuing
operations $0.89 $0.87 $0.23 $0.22
Loss from
discontinued
operations (0.14) (0.83) (0.10) (0.16)
----------- ----------- ----------- -----------
$0.75 $0.04 $0.13 $0.06
=========== =========== =========== ===========
Weighted average
common shares
outstanding 25,685,239 18,589,976 27,127,728 18,666,667
=========== =========== =========== ===========
DILUTED EARNINGS
(LOSS) PER SHARE:
Income from
continuing
operations $0.88 $0.87 $0.23 $0.22
Loss from
discontinued
operations (0.14) (0.83) (0.10) (0.16)
----------- ----------- ----------- -----------
$0.74 $0.04 $0.13 $0.06
=========== =========== =========== ===========
Weighted average
common shares
outstanding 25,957,761 18,749,597 27,363,856 18,826,288
=========== =========== =========== ===========
Year Ended Quarter Ended
December 31, December 31,
----------------------- -----------------------
2002 2001 2002 2001
----------- ----------- ----------- -----------
PROFORMA EARNINGS from
Continuing
Operations(1) $22,832 $18,878 $6,315 $4,697
PROFORMA DILUTED
EARNINGS PER SHARE
from Continuing
Operations(1) $0.88 $0.73 $0.23 $0.18
PROFORMA Weighted
Average Common Shares
Outstanding 25,957,761 25,699,000 27,363,856 26,619,000
Total Depreciation &
Amortization $3,993 $5,228 $1,230 $1,360
Earnings Before
Interest, Taxes,
Depreciation, and
Amortization (EBITDA) $42,533 $35,278 $11,881 $9,173
EBITDA ROS% 8.5% 8.2% 8.3% 8.0%
(1) Earnings and weighted average shares for 2001 have been adjusted
to reflect an IPO closing on February 12th of that year for
comparability. Earnings for 2001 were adjusted for net of tax
interest expense reductions and interest income increases.
Approximate Revenue from Continuing Operations by Customer Type:
Year Ended Quarter Ended
December 31, December 31,
-------------- -------------
2002 2001 2002 2001
------- ------ ------ ------
DOD/Intelligence Agencies 86.6% 85.1% 85.6% 87.9%
Federal Civilian Agencies 9.7% 11.1% 10.9% 9.4%
Commercial/State & Local 3.7% 3.8% 3.5% 2.7%
Total 100.0% 100.0% 100.0% 100.0%
Condensed Balance Sheet (in thousands):
Year Ended
December 31,
-------------------
2002 2001
-------- --------
Current Assets $229,911 $147,883
Current Liabilities 77,211 80,261
Working Capital 152,700 67,622
Total Debt 26,000 72,312
Stockholders' Equity 245,998 22,557
Total Assets 364,388 186,242
Conference Call: ManTech has scheduled a conference call for 5:00 p.m. Eastern, during which senior management will discuss fourth quarter and year-end results and respond to questions. Interested parties may access the call by dialing 800/759-3578 or 706/679-7301. The conference call will be Webcast (listen only) simultaneously via the web at www.mantech.com. Interested parties should dial in or log on approximately ten minutes prior to the start time of the call. A telephone replay of the call also will be available beginning at 9:00 p.m. Eastern Time on March 4, 2003 until midnight March 11, 2003. To access the replay, call 800/642-1687 or 706/645-9291. The confirmation code for the replay is 7860140. A replay also will be available on ManTech's Website approximately two hours after the conclusion of the call. About ManTech International Corporation: Headquartered in Fairfax, Virginia Fairfax is an independent city forming an enclave within the confines of Fairfax County, in the Commonwealth of Virginia. Although politically independent of the surrounding county, the City of Fairfax is nevertheless its county seatGR6. , ManTech International Corporation delivers a broad array of information technology and technical services solutions to U.S. federal government customers, focusing primarily on critical national defense programs for the intelligence community and Department of Defense. ManTech designs, develops, procures, implements, operates, tests and maintains mission-critical, enterprise information technology and communication systems and infrastructures for federal government customers in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and 34 countries worldwide. Additional information on ManTech can be found at www.mantech.com. Statements made in this press release which do not address historical facts could be interpreted to be forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . Examples of such forward looking statements include the Company's Revenue and Diluted Earnings Per Share Guidance for 1st Quarter 2003 and for the Full Year 2003, and the Company's belief that the Aegis Research, CTX, IDS and MSM acquisitions will provide the Company with numerous opportunities to continue to grow its revenue and expand its margins. Such statements are subject to factors that could cause actual results to differ materially from anticipated results. The factors that could cause actual results to differ materially from those anticipated include, but are not limited, to the following: failure to successfully integrate the recent acquisitions into the Company's existing operations, failure to experience any accretive effects of the recent acquisitions, failure to experience favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. results from synergies resulting from the recent acquisitions, failure to experience favorable results from the treatment and deductibility of goodwill, failure of government customers to exercise options under contracts; funding decisions of U.S. Government projects; government contract procurement The fancy word for "purchasing." The procurement department within an organization manages all the major purchases. (such as bid protest) and termination risks; competitive factors such as pricing pressures and/or competition to hire and retain employees; material changes in laws or regulations applicable to the company's businesses and other risk factors discussed in the company's filings with the Securities and Exchange Commission. The statements in this press release are made as of March 4, 2003, and the Company undertakes no obligation to update any of the forward-looking statements made herein, whether as a result of new information, future events, changes in expectations or otherwise. |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion