ManTech Reports Record Third Quarter 2003 Results.Business Editors 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)--Oct. 29, 2003 ManTech International Corporation (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :MANT), a leading provider of information technology and technical services solutions to the Department of Defense and the intelligence community, today announced record operating results for the third quarter of 2003. ManTech's revenue for the third quarter 2003 increased year-over-year 39% to $181.6 million, 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. increased 48% to $16.2 million and 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 (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. ) rose 21% to $0.29. "ManTech's third quarter results reflect our success at positioning the company to play a meaningful role in the market for national security. We have gained traction Traction Definition Traction is the use of a pulling force to treat muscle and skeleton disorders. Purpose Traction is usually applied to the arms and legs, the neck, the backbone, or the pelvis. across the entire spectrum of our defense, intelligence and homeland security Noun 1. Homeland Security - the federal department that administers all matters relating to homeland security Department of Homeland Security executive department - a federal department in the executive branch of the government of the United States markets as evidenced by the fact that now approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 93% of our revenue for the quarter was derived de·rive v. de·rived, de·riv·ing, de·rives v.tr. 1. To obtain or receive from a source. 2. from our contracts with the Department of Defense and intelligence community," stated 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 Pedersen is a surname, and may refer to
v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. the momentum created from our fully integrated, uniform business platform." ManTech International Corporation reported revenue for the quarter ending September September: see month. 30, 2003 of $181.6 million, up from $130.4 million for the same period in 2002, an increase of 39%. The results reflect an organic growth rate of over 12% from the $161.5 million in 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 revenue for the comparable period in 2002, which includes the revenue for each period of the companies acquired by ManTech since that time. This revenue growth was primarily attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to new business supporting national security programs for the Department of Defense and intelligence community. Operating income for the quarter was $16.2 million, an increase of 48% over 2002. Operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: for the quarter expanded to 8.9% compared with 8.4% for the same period in 2002. The margin expansion in the quarter is attributable both to higher margin contributions from acquired companies and to operating efficiencies. Net income for the quarter rose 47% to $9.2 million from $6.3 million in 2002, while 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 were $0.29, up from $0.24 in 2002. ManTech recently received contract awards and contract expansions with an estimated value in excess of $260 million, including previously unannounced contract awards and existing contract expansions totaling approximately $160 million. Of particular note, ManTech won several significant blanket blanket, sheet, usually of heavy woolen, or partly woolen, cloth, for use as a shawl, bed covering, or horse covering. The blanketmaking of primitive people is one of the finest remaining examples of early domestic artwork. purchase agreements (BPAs) during the quarter. ManTech was selected as one of three prime contractors by the Department of Justice, under a BPA BPA British Paediatric Association. that is estimated to be approximately $100 million per fiscal year, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the solicitation solicitation In criminal law, the act of asking, inducing, or directing someone to commit a crime. The person soliciting another becomes an accomplice to the crime. The term also refers to the act of obtaining bribes, as well as to the crime of a prostitute who offers sexual , to support the Justice Consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: Office Network (JCON JCON Justice Consolidated Office Network JCON Java Console ) Program. ManTech also won a GSA-based BPA contract with the Marine Corps Systems Command Marine Corps Systems Command (MARCORSYSCOM) is located at MCB Quantico. Mission Serve as the Commandant's principal agent for acquisition and sustainment of systems and equipment used by the operating forces to accomplish their warfighting mission. to provide a wide variety of technical support services support services Psychology Non-health care-related ancillary services–eg, transportation, financial aid, support groups, homemaker services, respite services, and other services , including specialized spe·cial·ize v. spe·cial·ized, spe·cial·iz·ing, spe·cial·iz·es v.intr. 1. To pursue a special activity, occupation, or field of study. 2. IT services and engineering support, software development, test and evaluation support and C4I C4I Command, Control, Communications, Computers, & Intelligence (US DoD) C4I Command Control Communications Computer and Intelligence systems integration. Further, the company won a multi-year contract with the National Security Agency to provide full life cycle engineering, operations, and maintenance support for several NSA NSA abbr. National Security Agency Noun 1. NSA - the United States cryptologic organization that coordinates and directs highly specialized activities to protect United States information systems and to produce foreign mission-related systems. ManTech reported 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. of $1.5 billion as of September 30, 2003, compared with $1.2 billion on the same date in 2002. Funded backlog as of September 30, 2003 was $410 million, an increase of 81% over the same date in 2002. At the end of the third quarter, ManTech had approximately $1.3 billion in proposals under evaluation and a pipeline of qualified opportunities over $4.5 billion. ManTech derived about 90% of its revenue during the quarter ended September 30, 2003 from prime contracts, and approximately 44% of its revenue for the period came from 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. schedule contracts. Revenue from the Department of Defense and the intelligence community accounted for approximately 93% of revenue for the third quarter ending September 30, 2003. Revenue from work in secure systems and information technology solutions increased to 85% of revenue in the third quarter 2003 from 78% in 2002. Company Guidance: Based on recent business trends and the expectation of continuing strength in our national security markets, ManTech reaffirms the following guidance for 2003:
4th Quarter 2003 Full Year 2003
----------------------------------------------------------------------
Revenue $188 million - $198 $695 million - $705
million million
----------------------------------------------------------------------
Diluted Earnings Per Share $0.29 - $0.31 $1.07 - $1.09
----------------------------------------------------------------------
Weighted Average Common
Shares Outstanding 32,385,918 32,163,476
----------------------------------------------------------------------
Regarding 2004 guidance, all current indications suggest top-line growth to be in the range of 13% to 15%, with consistent, or slightly better, growth in earnings for next year. Conference Call: ManTech has scheduled a conference call for 5:00 p.m., EST EST electroshock therapy. EST abbr. electroshock therapy October October: see month. 29, 2003, during which executive management will discuss third quarter results and respond to questions. Interested parties may access the call by dialing (800) 915-4836 (domestic) or (973) 317-5319 (international). The conference call will be Webcast (listen only) simultaneously si·mul·ta·ne·ous adj. 1. Happening, existing, or done at the same time. See Synonyms at contemporary. 2. Mathematics via the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the at www.mantech.com. Interested parties should dial in or log on approximately ten minutes prior to the start time of the call. A replay of the call will also be available beginning at 9:00 p.m. on October 29, 2003, and will remain available through midnight on November November: see month. 11, 2003. To access the replay, call (800) 428-6051 (domestic) or (973) 709-2089 (international). The confirmation code for the replay is 307876. 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 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 over 30 countries worldwide. Additional information can be found at www.mantech.com. Cautionary Statement About 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. : This press release contains forward-looking statements that involve substantial risks and uncertainties. You can identify these statements by forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. words such as "may," "will," "expect," "intend," "anticipate," "believe," "estimate," "continue" and other similar words. You should read statements that contain these words carefully because they discuss the Company's future expectations, make projections of the company's future results of operations or financial condition or state other forward-looking information. Examples of such forward-looking statements include the company's expected future earnings as suggested by backlog estimates, updated guidance projections, and the company's belief that there will be increased defense and intelligence spending in the future. 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 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 The point where a line, channel or circuit ends. See SCSI termination and hybrid. risks; competitive factors such as pricing pressures and/or and/or conj. Used to indicate that either or both of the items connected by it are involved. Usage Note: And/or is widely used in legal and business writing. competition to hire and retain employees; the company's ability to identify, execute To run a program, which causes the computer to carry out its instructions. See executable code, instruction and EXE file. execute - execution or effectively integrate future acquisitions; the company's ability to successfully raise additional capital; changes to the tax laws relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the treatment and deductibility of goodwill or any change in tax rates; additional costs related to compliance with the Sarbanes-Oxley Act See SOX. of 2002, any revised NASDAQ listing standards, SEC rule changes or other corporate governance Corporate Governance The relationship between all the stakeholders in a company. This includes the shareholders, directors, and management of a company, as defined by the corporate charter, bylaws, formal policy, and rule of law. issues; failure to experience continued positive defense and intelligence budget and spending trends; 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 October 29, 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.
MANTECH INTERNATIONAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Dollars in Thousands Except Per Share Amounts)
Three months ended Nine months ended
September 30, September 30,
------------------------- -------------------------
2003 2002 2003 2002
------------ ------------ ------------ ------------
(unaudited) (unaudited) (unaudited) (unaudited)
REVENUES $ 181,590 $ 130,425 $ 506,789 $ 357,727
COST OF SERVICES 147,461 105,995 411,593 291,885
------------ ------------ ------------ ------------
GROSS PROFIT 34,129 24,430 95,196 65,842
------------ ------------ ------------ ------------
COSTS AND EXPENSES:
General and
administrative 16,723 12,856 47,657 36,346
Depreciation
and amortization 1,181 603 3,358 1,608
------------ ------------ ------------ ------------
Total
costs and
expenses 17,904 13,459 51,015 37,954
------------ ------------ ------------ ------------
INCOME FROM
OPERATIONS 16,225 10,971 44,181 27,888
Interest expense 618 119 1,639 322
Other expense
(income) 58 186 328 (337)
------------ ------------ ------------ ------------
INCOME BEFORE
PROVISION FOR
INCOME TAXES AND
MINORITY INTEREST 15,549 10,666 42,214 27,903
Provision for
income taxes (6,321) (4,382) (17,144) (11,387)
Minority interest (1) 3 (4) --
------------ ------------ ------------ ------------
INCOME FROM
CONTINUING
OPERATIONS 9,227 6,287 25,066 16,516
Loss on disposal of
discontinued
operations--net -- -- -- (795)
------------ ------------ ------------ ------------
NET INCOME $ 9,227 $ 6,287 $ 25,066 $ 15,721
------------ ------------ ------------ ------------
BASIC EARNINGS
(LOSS) PER SHARE:
Income from
continuing
operations $ 0.29 $ 0.24 $ 0.78 $ 0.66
Loss from
discontinued
operations -- -- -- (0.03)
------------ ------------ ------------ ------------
$ 0.29 $ 0.24 $ 0.78 $ 0.63
------------ ------------ ------------ ------------
Weighted average
common shares
outstanding 32,007,957 26,471,122 31,955,522 25,199,125
------------ ------------ ------------ ------------
DILUTED EARNINGS
(LOSS) PER SHARE:
Income from
continuing
operations $ 0.29 $ 0.24 $ 0.78 $ 0.65
Loss from
discontinued
operations -- -- -- (0.03)
------------ ------------ ------------ ------------
$ 0.29 $ 0.24 $ 0.78 $ 0.62
------------ ------------ ------------ ------------
Weighted average
common shares
outstanding 32,335,226 26,741,466 32,094,136 25,483,548
------------ ------------ ------------ ------------
MANTECH INTERNATIONAL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in Thousands)
September December
30, 31,
2003 2002
---------- ----------
(unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 19,810 $ 81,096
Cash in escrow 828 --
Receivables--net 174,120 133,122
Prepaid expenses and other 14,481 8,955
Assets held for sale 1,270 6,738
----------- -----------
Total current assets 210,509 229,911
Property and equipment--net 11,426 9,131
Goodwill 147,988 94,003
Other intangibles 17,314 10,231
Investments 9,913 7,631
Employee supplemental savings plan assets 9,411 8,068
Other assets 6,448 5,413
----------- -----------
TOTAL ASSETS $413,009 $364,388
----------- -----------
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current portion of debt $ 76 $ 1,000
Accounts payable and accrued expenses 42,766 32,905
Accrued salaries and related expenses 26,254 23,619
Deferred income taxes 18,272 11,888
Billings in excess of revenue earned 5,699 2,700
Liabilities held for sale 1,462 5,099
----------- -----------
Total current liabilities 94,529 77,211
Debt--net of current portion 25,203 25,000
Accrued retirement 10,904 9,555
Other long-term liabilities 5,431 1,838
Deferred income taxes 4,064 4,744
Minority interest 46 42
----------- -----------
TOTAL LIABILITIES 140,177 118,390
----------- -----------
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Common stock, Class A 164 163
Common stock, Class B 156 156
Additional paid-in capital 208,943 206,861
Retained earnings 65,909 40,843
Accumulated other comprehensive loss (1,566) (2,025)
Unearned ESOP shares (774) --
Deferred compensation 640 640
Shares held in grantor trust (640) (640)
----------- -----------
TOTAL STOCKHOLDERS' EQUITY 272,832 245,998
----------- -----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $413,009 $364,388
----------- -----------
MANTECH INTERNATIONAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in Thousands)
Nine months ended
September 30,
-------------------------
2003 2002
------------ ------------
(unaudited) (unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 25,066 $ 15,721
Adjustments to reconcile net income to
net cash provided by operating
activities:
Equity in losses (earnings) of affiliates 844 (237)
Loss from discontinued operations -- 795
Deferred income taxes 4,872 89
Minority interest in income of
consolidated subsidiaries 4 --
Loss on disposals of property and
equipment 13 17
Depreciation and amortization 4,962 2,763
Change in assets and liabilities--net of
effects from acquired and discontinued
businesses:
Increase in receivables (28,132) (14,829)
(Increase) decrease in prepaid
expenses and other (5,963) 792
Increase (decrease) in accounts
payable and accrued expenses 4,682 (1,296)
(Decrease) increase in accrued
salaries and related expenses (1,656) 320
Increase in billings in excess of
revenue earned 2,549 232
Increase in other long-term
liabilities 69 107
Increase in accrued retirement 1,348 185
------------ ------------
Net cash provided by operating activities of
continuing operations 8,658 4,659
------------ ------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sales of property and
equipment 1 2
Investment in Integrated Data Systems
Corporation, net of cash acquired of
$2,820 (63,145) --
Investment in MSM Security Services,
Inc., net of cash acquired of $20 (5,107) --
Investment in property and equipment (2,826) (2,119)
Investment in capitalized software
products (1,488) (768)
Investment in Advanced Development Group,
Inc. (230) --
Investment in CTX Corporation (47) --
Investment in Aegis Research Corporation (10) (69,269)
Dividends from MASI U.K. 315 592
Proceeds from notes receivable -- 350
Dividends from GSE Preferred Stock -- 75
------------ ------------
Net cash used in investing activities of
continuing operations (72,537) (71,137)
------------ ------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Payment of not-to-compete financings (1,000) --
Proceeds from exercise of stock options 916 268
Proceeds from common stock issuance--net
of offering expenses -- 110,157
Net decrease in borrowings under lines of
credit -- (32,300)
Repayment of subordinated debt -- (8,000)
Repayment of term loan -- (5,908)
Repayment of notes payable -- (104)
------------ ------------
Net cash (used in) provided by financing
activities of continuing operations (84) 64,113
------------ ------------
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND
CASH EQUIVALENTS (5) 95
------------ ------------
NET CASH PROVIDED BY (USED IN) DISCONTINUED
OPERATIONS 2,682 (2,233)
------------ ------------
NET DECREASE IN CASH AND CASH EQUIVALENTS (61,286) (4,503)
CASH AND CASH EQUIVALENTS, BEGINNING OF
PERIOD 81,096 26,902
------------ ------------
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 19,810 $ 22,399
------------ ------------
MANTECH INTERNATIONAL CORPORATION
EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION
AND AMORTIZATION (EBITDA)
(Dollars in Thousands)
Three Months Ended Nine Months Ended
September 30, September 30,
----------------- -----------------
2003 2002 2003 2002
-------- -------- -------- --------
Net Income $9,227 $6,287 $25,066 $15,721
Plus: Loss from Discontinued
Operations --- --- --- 795
-------- -------- -------- --------
Income from Continuing Operations 9,227 6,287 25,066 16,516
Plus: Interest Expense 618 119 1,639 322
Income Taxes 6,321 4,382 17,144 11,387
Depreciation and Amortization 1,855 1,013 4,961 2,763
Other Expense (Income) 58 186 328 (337)
Minority Interest 1 (3) 4 ---
-------- -------- -------- --------
EBITDA $18,080 $11,984 $49,142 $30,651
-------- -------- -------- --------
EBITDA ROS% 10.0% 9.2% 9.7% 8.6%
NOTE: EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become is defined as net income plus the loss from discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. , interest expense, income taxes, depreciation and amortization, other expense, minority interest, and minus other income. EBITDA as calculated by us may be calculated differently than EBITDA for other companies. We have provided EBITDA because we believe it is a commonly used measure of financial performance in comparable companies and is provided to help investors evaluate companies on a consistent basis, as well as to enhance an understanding of our operating results. EBITDA should not be construed as either an alternative to net income as an indicator Indicator Anything used to predict future financial or economic trends. Notes: In the context of technical analysis, an indicator is a mathematical calculation based on a securities price and/or volume. The result is used to predict future prices. of our operating performance or as an alternative to cash flows as a measure of liquidity. |
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