x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 22-1852179 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
12015 Lee Jackson Highway, Fairfax, VA | 22033 |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer | x | Accelerated filer | o |
Non-accelerated filer | o (Do not check if a smaller reporting company) | Smaller reporting company | o |
Page No. | ||
Item 1. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
Item 1. | ||
Item 1A. | ||
Item 6. |
Item 1. | Financial Statements |
(unaudited) | |||||||
June 30, 2013 | December 31, 2012 | ||||||
ASSETS | |||||||
CURRENT ASSETS: | |||||||
Cash and cash equivalents | $ | 193,578 | $ | 134,896 | |||
Receivables—net | 512,010 | 548,309 | |||||
Prepaid expenses and other | 15,438 | 27,185 | |||||
Contractual inventory | — | 34,762 | |||||
Total Current Assets | 721,026 | 745,152 | |||||
Goodwill | 871,019 | 861,912 | |||||
Other intangible assets—net | 160,672 | 167,910 | |||||
Property and equipment—net | 27,882 | 28,588 | |||||
Employee supplemental savings plan assets | 28,514 | 27,352 | |||||
Other assets | 10,186 | 10,995 | |||||
TOTAL ASSETS | $ | 1,819,299 | $ | 1,841,909 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
CURRENT LIABILITIES: | |||||||
Accounts payable and accrued expenses | $ | 238,195 | $ | 315,582 | |||
Accrued salaries and related expenses | 65,433 | 52,364 | |||||
Billings in excess of revenue earned | 13,024 | 15,031 | |||||
Deferred income taxes—current | 1,229 | 4,266 | |||||
Total Current Liabilities | 317,881 | 387,243 | |||||
Long-term debt | 200,000 | 200,000 | |||||
Deferred income taxes—non-current | 66,593 | 50,645 | |||||
Accrued retirement | 29,484 | 29,390 | |||||
Other long-term liabilities | 11,183 | 9,403 | |||||
TOTAL LIABILITIES | 625,141 | 676,681 | |||||
COMMITMENTS AND CONTINGENCIES | |||||||
STOCKHOLDERS’ EQUITY: | |||||||
Common stock, Class A—$0.01 par value; 150,000,000 shares authorized; 24,205,326 and 24,093,832 shares issued at June 30, 2013 and December 31, 2012; 23,961,213 and 23,849,719 shares outstanding at June 30, 2013 and December 31, 2012 | 242 | 241 | |||||
Common stock, Class B—$0.01 par value; 50,000,000 shares authorized; 13,192,845 and 13,192,845 shares issued and outstanding at June 30, 2013 and December 31, 2012 | 132 | 132 | |||||
Additional paid-in capital | 421,555 | 417,917 | |||||
Treasury stock, 244,113 and 244,113 shares at cost at June 30, 2013 and December 31, 2012 | (9,158 | ) | (9,158 | ) | |||
Retained earnings | 782,387 | 756,241 | |||||
Accumulated other comprehensive income (loss) | (149 | ) | (145 | ) | |||
Unearned employee stock ownership plan shares | (851 | ) | — | ||||
TOTAL STOCKHOLDERS’ EQUITY | 1,194,158 | 1,165,228 | |||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 1,819,299 | $ | 1,841,909 |
(unaudited) Three months ended June 30, | (unaudited) Six months ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
REVENUES | $ | 605,129 | $ | 638,937 | $ | 1,251,137 | $ | 1,315,446 | |||||||
Cost of services | 523,039 | 544,110 | 1,085,336 | 1,126,977 | |||||||||||
General and administrative expenses | 43,419 | 49,947 | 90,759 | 97,894 | |||||||||||
OPERATING INCOME | 38,671 | 44,880 | 75,042 | 90,575 | |||||||||||
Interest expense | (4,062 | ) | (4,009 | ) | (8,113 | ) | (8,157 | ) | |||||||
Interest income | 113 | 67 | 226 | 139 | |||||||||||
Other income (expense), net | (90 | ) | (103 | ) | (44 | ) | (88 | ) | |||||||
INCOME FROM OPERATIONS BEFORE INCOME TAXES | 34,632 | 40,835 | 67,111 | 82,469 | |||||||||||
Provision for income taxes | (13,081 | ) | (16,090 | ) | (25,380 | ) | (32,082 | ) | |||||||
NET INCOME | $ | 21,551 | $ | 24,745 | $ | 41,731 | $ | 50,387 | |||||||
BASIC EARNINGS PER SHARE: | |||||||||||||||
Class A basic earnings per share | $ | 0.58 | $ | 0.67 | $ | 1.13 | $ | 1.37 | |||||||
Weighted average common shares outstanding | 23,910 | 23,697 | 23,871 | 23,670 | |||||||||||
Class B basic earnings per share | $ | 0.58 | $ | 0.67 | $ | 1.13 | $ | 1.37 | |||||||
Weighted average common shares outstanding | 13,193 | 13,193 | 13,193 | 13,193 | |||||||||||
DILUTED EARNINGS PER SHARE: | |||||||||||||||
Class A diluted earnings per share | $ | 0.58 | $ | 0.67 | $ | 1.12 | $ | 1.36 | |||||||
Weighted average common shares outstanding | 23,940 | 23,736 | 23,908 | 23,726 | |||||||||||
Class B diluted earnings per share | $ | 0.58 | $ | 0.67 | $ | 1.12 | $ | 1.36 | |||||||
Weighted average common shares outstanding | 13,193 | 13,193 | 13,193 | 13,193 |
(unaudited) Three months ended June 30, | (unaudited) Six months ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
NET INCOME | $ | 21,551 | $ | 24,745 | $ | 41,731 | $ | 50,387 | |||||||
OTHER COMPREHENSIVE INCOME (LOSS): | |||||||||||||||
Translation adjustment, net of tax | (3 | ) | (19 | ) | (4 | ) | (70 | ) | |||||||
Total other comprehensive income (loss) | (3 | ) | (19 | ) | (4 | ) | (70 | ) | |||||||
COMPREHENSIVE INCOME | $ | 21,548 | $ | 24,726 | $ | 41,727 | $ | 50,317 |
(unaudited) Six months ended June 30, | |||||||
2013 | 2012 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Net income | $ | 41,731 | $ | 50,387 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 15,332 | 37,296 | |||||
Deferred income taxes | 11,647 | 3,626 | |||||
Stock-based compensation | 2,778 | 4,431 | |||||
Gain on sale of property and equipment | (400 | ) | — | ||||
Excess tax benefits from the exercise of stock options | (46 | ) | (43 | ) | |||
Change in assets and liabilities—net of effects from acquired businesses: | |||||||
Receivables—net | 37,705 | 26,095 | |||||
Contractual inventory | 34,762 | — | |||||
Prepaid expenses and other | 11,625 | 8,320 | |||||
Accounts payable and accrued expenses | (77,730 | ) | (16,064 | ) | |||
Accrued salaries and related expenses | 12,493 | (3,053 | ) | ||||
Billings in excess of revenue earned | (2,007 | ) | (22,036 | ) | |||
Accrued retirement | 94 | (232 | ) | ||||
Other | 1,154 | 2,120 | |||||
Net cash flow from operating activities | 89,138 | 90,847 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Acquisition of businesses—net of cash acquired | (11,382 | ) | (62,188 | ) | |||
Purchases of property and equipment | (3,762 | ) | (4,438 | ) | |||
Investment in capitalized software for internal use | (1,249 | ) | (1,693 | ) | |||
Proceeds from sale of property and equipment | 400 | — | |||||
Proceeds from sale of investment | 239 | 185 | |||||
Proceeds from disposition of a business | — | 1,799 | |||||
Net cash flow from investing activities | (15,754 | ) | (66,335 | ) | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Dividends paid | (15,577 | ) | (15,492 | ) | |||
Proceeds from exercise of stock options | 829 | 1,115 | |||||
Excess tax benefits from the exercise of stock options | 46 | 43 | |||||
Net cash flow from financing activities | (14,702 | ) | (14,334 | ) | |||
NET CHANGE IN CASH AND CASH EQUIVALENTS | 58,682 | 10,178 | |||||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 134,896 | 114,483 | |||||
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ | 193,578 | $ | 124,661 | |||
SUPPLEMENTAL CASH FLOW INFORMATION | |||||||
Cash paid for income taxes | $ | 3,322 | $ | 11,691 | |||
Cash paid for interest | $ | 8,012 | $ | 7,838 | |||
Noncash investing and financing activities: | |||||||
Employee stock ownership plan contributions | $ | 1,287 | $ | 1,382 | |||
Capital expenditures incurred but not yet paid | $ | — | $ | 26 |
1. | Introduction and Overview |
2. | Basis of Presentation |
3. | Acquisitions |
4. | Earnings Per Share |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Distributed earnings | $ | 7,802 | $ | 7,756 | $ | 15,585 | $ | 15,501 | |||||||
Undistributed earnings | 13,749 | 16,989 | 26,146 | 34,886 | |||||||||||
Net income | $ | 21,551 | $ | 24,745 | $ | 41,731 | $ | 50,387 | |||||||
Class A common stock: | |||||||||||||||
Basic net income available to common stockholders | $ | 13,888 | $ | 15,896 | $ | 26,877 | $ | 32,354 | |||||||
Basic weighted average common shares outstanding | 23,910 | 23,697 | 23,871 | 23,670 | |||||||||||
Basic earnings per share | $ | 0.58 | $ | 0.67 | $ | 1.13 | $ | 1.37 | |||||||
Diluted net income available to common stockholders | $ | 13,894 | $ | 15,905 | $ | 26,892 | $ | 32,381 | |||||||
Effect of potential exercise of stock options | 30 | 39 | 37 | 56 | |||||||||||
Diluted weighted average common shares outstanding | 23,940 | 23,736 | 23,908 | 23,726 | |||||||||||
Diluted earnings per share | $ | 0.58 | $ | 0.67 | $ | 1.12 | $ | 1.36 | |||||||
Class B common shares: | |||||||||||||||
Basic net income available to common stockholders | $ | 7,663 | $ | 8,849 | $ | 14,854 | $ | 18,033 | |||||||
Basic weighted average common shares outstanding | 13,193 | 13,193 | 13,193 | 13,193 | |||||||||||
Basic earnings per share | $ | 0.58 | $ | 0.67 | $ | 1.13 | $ | 1.37 | |||||||
Diluted net income available to common stockholders | $ | 7,657 | $ | 8,840 | $ | 14,839 | $ | 18,006 | |||||||
Effect of potential exercise of stock options | — | — | — | — | |||||||||||
Diluted weighted average common shares outstanding | 13,193 | 13,193 | 13,193 | 13,193 | |||||||||||
Diluted earnings per share | $ | 0.58 | $ | 0.67 | $ | 1.12 | $ | 1.36 |
5. | Receivables |
June 30, 2013 | December 31, 2012 | ||||||
Billed receivables | $ | 411,646 | $ | 420,598 | |||
Unbilled receivables: | |||||||
Amounts billable | 94,951 | 119,893 | |||||
Revenues recorded in excess of funding | 7,579 | 11,148 | |||||
Retainage | 7,627 | 6,119 | |||||
Allowance for doubtful accounts | (9,793 | ) | (9,449 | ) | |||
Receivables, net | $ | 512,010 | $ | 548,309 |
6. | Property and Equipment |
June 30, 2013 | December 31, 2012 | ||||||
Furniture and equipment | $ | 47,983 | $ | 94,934 | |||
Leasehold improvements | 31,188 | 28,932 | |||||
79,171 | 123,866 | ||||||
Less: Accumulated depreciation and amortization | (51,289 | ) | (95,278 | ) | |||
Total property and equipment, net | $ | 27,882 | $ | 28,588 |
7. | Goodwill and Other Intangible Assets |
Goodwill Balance | |||
Balance at December 31, 2011 | $ | 808,455 | |
Additional consideration for the acquisition of Worldwide Information Network Systems, Inc. | 212 | ||
Acquisition-Evolvent | 33,175 | ||
Acquisition-HBGary | 20,070 | ||
Balance at December 31, 2012 | $ | 861,912 | |
Acquisition-ALTA | 8,847 | ||
Other | 260 | ||
Balance at June 30, 2013 | $ | 871,019 |
June 30, 2013 | December 31, 2012 | ||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||||
Other intangible assets: | |||||||||||||||||||||||
Contract and program intangible assets | $ | 251,572 | $ | 100,991 | $ | 150,581 | $ | 249,882 | $ | 92,400 | $ | 157,482 | |||||||||||
Capitalized software cost for internal use | 32,098 | 22,082 | 10,016 | 30,985 | 20,637 | 10,348 | |||||||||||||||||
Other | 115 | 40 | 75 | 115 | 35 | 80 | |||||||||||||||||
Total other intangible assets, net | $ | 283,785 | $ | 123,113 | $ | 160,672 | $ | 280,982 | $ | 113,072 | $ | 167,910 |
For the remaining six months ending December 31, 2013 | $ | 10,150 | |
For the year ending: | |||
December 31, 2014 | $ | 18,209 | |
December 31, 2015 | $ | 15,605 | |
December 31, 2016 | $ | 13,603 | |
December 31, 2017 | $ | 11,886 | |
December 31, 2018 | $ | 10,739 |
8. | Long-term Debt |
June 30, 2013 | December 31, 2012 | ||||||
Revolving credit facility | $ | — | $ | — | |||
7.25% senior unsecured notes | 200,000 | 200,000 | |||||
Long-term debt | $ | 200,000 | $ | 200,000 |
Six months ended June 30, | |||||||
2013 | 2012 | ||||||
Borrowing under revolving credit facility | $ | — | $ | 9,000 | |||
Repayment of borrowings under revolving credit facility | $ | — | $ | (9,000 | ) |
9. | Commitments and Contingencies |
10. | Stock-Based Compensation |
Six months ended June 30, | |||||
2013 | 2012 | ||||
Volatility | 32.45 | % | 30.49 | % | |
Expected life of options (in years) | 3.14 | 3.04 | |||
Risk-free interest rate | 0.44 | % | 0.56 | % | |
Dividend yield | 3.00 | % | 2.25 | % |
Number of Shares | Weighted Average Exercise Price | Aggregate Intrinsic Value (in thousands) | ||||||||
Shares under option, December 31, 2011 | 2,886,110 | $ | 41.14 | $ | 1,096 | |||||
Options granted | 986,650 | $ | 29.24 | |||||||
Options exercised | (38,542 | ) | $ | 28.93 | $ | 215 | ||||
Options cancelled and expired | (413,022 | ) | $ | 39.27 | ||||||
Shares under option, December 31, 2012 | 3,421,196 | $ | 38.61 | $ | 626 | |||||
Options granted | 488,850 | $ | 26.96 | |||||||
Options exercised | (39,000 | ) | $ | 21.28 | $ | 224 | ||||
Options cancelled and expired | (522,858 | ) | $ | 38.70 | ||||||
Shares under option, June 30, 2013 | 3,348,188 | $ | 37.10 | $ | 462 |
Number of Shares | Weighted Average Fair Value | |||||
Non-vested stock options at December 31, 2012 | 1,697,992 | $ | 7.37 | |||
Options granted | 488,850 | $ | 4.81 | |||
Vested during the period | (381,286 | ) | $ | 10.31 | ||
Options cancelled | (216,673 | ) | $ | 6.90 | ||
Non-vested stock options at June 30, 2013 | 1,588,883 | $ | 5.94 |
Number of Shares | Weighted Average Remaining Contractual Life (years) | Weighted Average Exercise Price | Aggregate Intrinsic Value (in thousands) | |||||||||
Stock options exercisable | 1,759,305 | 1.8 | $ | 43.19 | $ | 418 | ||||||
Stock options expected to vest | 1,400,422 | 4.0 | $ | 30.55 | $ | 39 | ||||||
Stock options exercisable and expected to vest | 3,159,727 |
Number of Shares | Grant Date Fair Value (in thousands) | |||||
Non-vested at December 31, 2011 | 30,667 | |||||
Granted | 24,000 | $ | 576 | |||
Vested | (27,334 | ) | $ | 1,237 | ||
Forfeited | — | |||||
Non-vested at December 31, 2012 | 27,333 | |||||
Granted | 24,000 | $ | 664 | |||
Vested | (27,333 | ) | $ | 742 | ||
Forfeited | — | |||||
Non-vested at June 30, 2013 | 24,000 |
11. | Business Segment and Geographic Area Information |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||
United States | $ | 603,997 | 99.8 | % | $ | 637,775 | 99.8 | % | $ | 1,248,817 | 99.8 | % | $ | 1,312,991 | 99.8 | % | |||||||||||
International | 1,132 | 0.2 | % | 1,162 | 0.2 | % | 2,320 | 0.2 | % | 2,455 | 0.2 | % | |||||||||||||||
Total | $ | 605,129 | $ | 638,937 | $ | 1,251,137 | $ | 1,315,446 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||
Contract A | $ | 137,570 | 22.7 | % | $ | 140,584 | 22.0 | % | $ | 275,483 | 22.0 | % | $ | 282,407 | 21.5 | % | |||||||||||
All other contracts | 467,559 | 77.3 | % | 498,353 | 78.0 | % | 975,654 | 78.0 | % | 1,033,039 | 78.5 | % | |||||||||||||||
Total | $ | 605,129 | $ | 638,937 | $ | 1,251,137 | $ | 1,315,446 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||
Operating Income: | |||||||||||||||||||||||||||
Contract A | $ | 5,684 | 14.7 | % | $ | 9,475 | 21.1 | % | $ | 11,796 | 15.7 | % | $ | 18,848 | 20.8 | % | |||||||||||
All other contracts | 32,987 | 85.3 | % | 35,405 | 78.9 | % | 63,246 | 84.3 | % | 71,727 | 79.2 | % | |||||||||||||||
Total | $ | 38,671 | $ | 44,880 | $ | 75,042 | $ | 90,575 |
June 30, 2013 | December 31, 2012 | ||||||||||||
Receivables, net: | |||||||||||||
Contract C | $ | 65,579 | 12.8 | % | $ | — | — | % | |||||
Contract A | 63,213 | 12.3 | % | 90,752 | 16.6 | % | |||||||
Contract B | 9,498 | 1.9 | % | 62,709 | 11.4 | % | |||||||
All other contracts | 373,720 | 73.0 | % | 394,848 | 72.0 | % | |||||||
Total | $ | 512,010 | $ | 548,309 |
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
• | adverse changes or delays in U.S. government spending for programs we support due to cost cutting and efficiency initiatives, changing mission priorities (including the withdrawal from Afghanistan) and other efforts to reduce federal government spending generally; |
• | uncertainty regarding the timing and nature of government action to complete the budget process and otherwise address budgetary constraints, sequestration or other factors; |
• | failure to compete effectively for new contract awards or to retain existing U.S. government contracts; |
• | failure to obtain option awards, task orders or funding under contracts; |
• | delays in the competitive bidding process caused by competitors' protests of contract awards received by us or other factors; |
• | failure to realize the full amount of our backlog or adverse changes in the timing of receipt of revenues under contracts included in backlog; |
• | renegotiation, modification or termination of our contracts, or failure to perform in conformity with contract terms or our expectations; |
• | adverse changes in our mix of contract types; |
• | disruption of our business or damage to our reputation resulting from security breaches in customer systems, internal systems or service failures (including as a result of cyber or other security threats), or employee or subcontractor misconduct; |
• | adverse changes in business conditions that may cause our investments in recorded goodwill to become impaired; |
• | failure to maintain strong relationship with other contractors; |
• | 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 successfully identify and execute future acquisitions; |
• | non-compliance with, or adverse changes in, complex U.S. government procurement laws, regulations or processes; |
• | adverse results of U.S. government audits or other investigations of our government contracts; and |
• | adverse changes in our financing arrangements, such as increases in interest rates and restrictions imposed by our outstanding indebtedness, including the ability to meet financial covenants, or inability to obtain new or additional financing. |
Three months ended June 30, | Period-to-Period Change | |||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2012 to 2013 | ||||||||||||||||
Dollars | Percentage | Dollars | Percentage | |||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
REVENUES | $ | 605,129 | $ | 638,937 | 100.0 | % | 100.0 | % | $ | (33,808 | ) | (5.3 | )% | |||||||
Cost of services | 523,039 | 544,110 | 86.4 | % | 85.2 | % | (21,071 | ) | (3.9 | )% | ||||||||||
General and administrative expenses | 43,419 | 49,947 | 7.2 | % | 7.8 | % | (6,528 | ) | (13.1 | )% | ||||||||||
OPERATING INCOME | 38,671 | 44,880 | 6.4 | % | 7.0 | % | (6,209 | ) | (13.8 | )% | ||||||||||
Interest expense | (4,062 | ) | (4,009 | ) | 0.7 | % | 0.6 | % | (53 | ) | 1.3 | % | ||||||||
Interest income | 113 | 67 | — | % | — | % | 46 | 68.7 | % | |||||||||||
Other income (expense), net | (90 | ) | (103 | ) | — | % | — | % | 13 | (12.6 | )% | |||||||||
INCOME FROM OPERATIONS BEFORE INCOME TAXES | 34,632 | 40,835 | 5.7 | % | 6.4 | % | (6,203 | ) | (15.2 | )% | ||||||||||
Provision for income taxes | (13,081 | ) | (16,090 | ) | 2.1 | % | 2.5 | % | 3,009 | (18.7 | )% | |||||||||
NET INCOME | $ | 21,551 | $ | 24,745 | 3.6 | % | 3.9 | % | $ | (3,194 | ) | (12.9 | )% |
Six months ended June 30, | Period-to-Period Change | |||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2012 to 2013 | ||||||||||||||||
Dollars | Percentage | Dollars | Percentage | |||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
REVENUES | $ | 1,251,137 | $ | 1,315,446 | 100.0 | % | 100.0 | % | $ | (64,309 | ) | (4.9 | )% | |||||||
Cost of services | 1,085,336 | 1,126,977 | 86.7 | % | 85.7 | % | (41,641 | ) | (3.7 | )% | ||||||||||
General and administrative expenses | 90,759 | 97,894 | 7.3 | % | 7.4 | % | (7,135 | ) | (7.3 | )% | ||||||||||
OPERATING INCOME | 75,042 | 90,575 | 6.0 | % | 6.9 | % | (15,533 | ) | (17.1 | )% | ||||||||||
Interest expense | (8,113 | ) | (8,157 | ) | 0.6 | % | 0.6 | % | 44 | (0.5 | )% | |||||||||
Interest income | 226 | 139 | — | % | — | % | 87 | 62.6 | % | |||||||||||
Other income (expense), net | (44 | ) | (88 | ) | — | % | — | % | 44 | (50.0 | )% | |||||||||
INCOME FROM OPERATIONS BEFORE INCOME TAXES | 67,111 | 82,469 | 5.4 | % | 6.3 | % | (15,358 | ) | (18.6 | )% | ||||||||||
Provision for income taxes | (25,380 | ) | (32,082 | ) | 2.1 | % | 2.5 | % | 6,702 | (20.9 | )% | |||||||||
NET INCOME | $ | 41,731 | $ | 50,387 | 3.3 | % | 3.8 | % | $ | (8,656 | ) | (17.2 | )% |
Six months ended June 30, | |||||||
2013 | 2012 | ||||||
Borrowing under revolving credit facility | $ | — | $ | 9,000 | |||
Repayment of borrowings under revolving credit facility | $ | — | $ | (9,000 | ) |
Item 3. | Quantitative and Qualitative Disclosures about Market Risk |
Item 4. | Controls and Procedures |
Item 1. | Legal Proceedings |
Item 1A. | Risk Factors |
Item 6. | Exhibits |
Exhibit | Description of Exhibit |
12.1‡ | Ratio of Earnings to Fixed Charges. |
31.1‡ | Certification of Chief Executive Officer pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as amended. |
31.2‡ | Certification of Chief Financial Officer pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as amended. |
32‡ | Certification of Chief Executive Officer and Chief Financial Officer pursuant to Rule 13a-14(b) of the Securities Exchange Act of 1934, as amended. |
101 | The following materials from the ManTech International Corporation Quarterly Report on Form 10-Q for the quarter ended June 30, 2013, formatted in XBRL (eXtensible Business Reporting Language): (i) Condensed Consolidated Balance Sheets at June 30, 2013 and December 31, 2012; (ii) Condensed Consolidated Statements of Income for the Three and Six Months Ended June 30, 2013 and 2012; (iii) Condensed Consolidated Statements of Comprehensive Income for the Three and Six Months Ended June 30, 2013 and 2012; (iv) Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2013 and 2012; and (v) Notes to Condensed Consolidated Financial Statements. |
‡ | Filed herewith. |
MANTECH INTERNATIONAL CORPORATION | |||
By: | /s/ GEORGE J. PEDERSEN | ||
Date: | August 1, 2013 | Name: | George J. Pedersen |
Title: | Chairman of the Board of Directors and Chief Executive Officer |
By: | /s/ KEVIN M. PHILLIPS | ||
Date: | August 1, 2013 | Name: | Kevin M. Phillips |
Title: | Chief Financial Officer |
Six months ended June 30, | Year Ended December 31, | ||||||||||||||||||
2013 | 2012 | 2011 | 2010 | 2009 | |||||||||||||||
Fixed Charges: | |||||||||||||||||||
Interest expense (1) | $ | 7,834 | $ | 15,776 | $ | 15,304 | $ | 12,233 | $ | 1,141 | |||||||||
Amortized premiums, discounts and capitalized expenses related to indebtedness (2) | 688 | 1,345 | 1,291 | 937 | 300 | ||||||||||||||
Estimate of the interest within rental expense (3) | 7,408 | 17,354 | 18,396 | 15,957 | 17,128 | ||||||||||||||
Total Fixed Charges | $ | 15,930 | $ | 34,475 | $ | 34,991 | $ | 29,127 | $ | 18,569 | |||||||||
Earnings: | |||||||||||||||||||
Pre-tax income from continuing operations before income or loss from equity investees (4) | $ | 67,111 | $ | 154,954 | $ | 215,502 | $ | 202,451 | $ | 178,508 | |||||||||
Fixed Charges | 15,930 | 34,475 | 34,991 | 29,127 | 18,569 | ||||||||||||||
Distributed income of equity investees (4) | — | — | — | — | — | ||||||||||||||
Total Earnings | $ | 83,041 | $ | 189,429 | $ | 250,493 | $ | 231,578 | $ | 197,077 | |||||||||
Ratio of Earnings to Fixed Charges | 5.2 | 5.5 | 7.2 | 8.0 | 10.6 | ||||||||||||||
(1) Interest expense consists of interest on indebtedness. | |||||||||||||||||||
(2) Represents the amortization of financing costs incurred in connection with the Company's credit agreement and our 7.25% senior unsecured notes. | |||||||||||||||||||
(3) The proportion of rental expense deemed to be representative of the interest factor is one third. | |||||||||||||||||||
(4) Equity investees are investments accounted for using the equity method of accounting. |
By: | /s/ GEORGE J. PEDERSEN | |
Name: | George J. Pedersen | |
Title: | Chairman of the Board of Directors and Chief Executive Officer |
By: | /s/ KEVIN M. PHILLIPS | |
Name: | Kevin M. Phillips | |
Title: | Chief Financial Officer |
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
By: | /s/ GEORGE J. PEDERSEN | |
Name: | George J. Pedersen | |
Title: | Chairman of the Board of Directors and Chief Executive Officer |
By: | /s/ KEVIN M. PHILLIPS | |
Name: | Kevin M. Phillips | |
Title: | Chief Financial Officer |
Business Segment And Geographic Area Information
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Segment And Geographic Area Information | Business Segment and Geographic Area Information We have one reportable segment. We deliver a broad array of information technology and technical services solutions under contracts with the U.S. government, state and local governments and commercial customers. Our federal government customers typically exercise independent contracting authority, and even offices or divisions within an agency or department may directly, or through a prime contractor, use our services as a separate customer so long as that customer has independent decision-making and contracting authority within its organization. Revenues from the U.S. government under prime contracts and subcontracts were approximately 99.0% and 99.2% of our total revenues for the six months ended June 30, 2013 and 2012, respectively. There were no sales to any customers within a single country (except for the United States) where the sales accounted for 10% or more of total revenues. We treat sales to U.S. government customers as sales within the United States regardless of where the services are performed. Substantially all assets of continuing operations were held in the United States for the periods ended June 30, 2013 and December 31, 2012. Revenues by geographic customer and the related percentages of total revenues for the three and six months ended June 30, 2013 and 2012 were as follows (dollars in thousands):
The following table includes contracts that exceeded 10% of our revenues for the three and six months ended June 30, 2013 and 2012 (dollars in thousands):
The following table includes contracts that exceeded 10% of our operating income for the three and six months ended June 30, 2013 and 2012 (dollars in thousands):
The following table includes contracts that exceeded 10% of our receivables, net at June 30, 2013 and December 31, 2012 (dollars in thousands):
Disclosure items required under ASC 280, Segment Reporting, including interest income, interest expense, depreciation and amortization expense, expenses for stock-based compensation programs, certain unallowable costs as determined under Federal Acquisition Regulations and expenditures for segment assets are not applicable as we review those items on a consolidated basis. |
Condensed Consolidated Statements Of Income (USD $)
In Thousands, except Per Share data, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
|
Revenues | $ 605,129 | $ 638,937 | $ 1,251,137 | $ 1,315,446 |
Cost of services | 523,039 | 544,110 | 1,085,336 | 1,126,977 |
General and administrative expenses | 43,419 | 49,947 | 90,759 | 97,894 |
Operating Income | 38,671 | 44,880 | 75,042 | 90,575 |
Interest expense | (4,062) | (4,009) | (8,113) | (8,157) |
Interest income | 113 | 67 | 226 | 139 |
Other income (expense), net | (90) | (103) | (44) | (88) |
Income from operations before income taxes | 34,632 | 40,835 | 67,111 | 82,469 |
Provision for income taxes | (13,081) | (16,090) | (25,380) | (32,082) |
Net income | $ 21,551 | $ 24,745 | $ 41,731 | $ 50,387 |
Class A Common Stock [Member]
|
||||
Basic earnings per share | $ 0.58 | $ 0.67 | $ 1.13 | $ 1.37 |
Basic weighted average common shares outstanding | 23,910 | 23,697 | 23,871 | 23,670 |
Diluted earnings per share | $ 0.58 | $ 0.67 | $ 1.12 | $ 1.36 |
Diluted weighted average common shares outstanding | 23,940 | 23,736 | 23,908 | 23,726 |
Class B Common Stock [Member]
|
||||
Basic earnings per share | $ 0.58 | $ 0.67 | $ 1.13 | $ 1.37 |
Basic weighted average common shares outstanding | 13,193 | 13,193 | 13,193 | 13,193 |
Diluted earnings per share | $ 0.58 | $ 0.67 | $ 1.12 | $ 1.36 |
Diluted weighted average common shares outstanding | 13,193 | 13,193 | 13,193 | 13,193 |
Earnings Per Share
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | Earnings Per Share Under ASC 260, Earnings per Share, the two-class method is an earnings allocation formula that determines earnings per share for each class of common stock according to dividends declared (or accumulated) and participation rights in undistributed earnings. Under that method, basic and diluted earnings per share data are presented for each class of common stock. In applying the two-class method, we determined that undistributed earnings should be allocated equally on a per share basis between Class A and Class B common stock. Under the Company’s Certificate of Incorporation, the holders of the common stock are entitled to participate ratably, on a share-for-share basis as if all shares of common stock were of a single class, in such dividends, as may be declared by the Board of Directors. During each of the the six month periods ended June 30, 2013 and 2012, we declared and paid two quarterly dividends in the amount of $0.21 per share on both classes of common stock. Basic earnings per share has been computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding during each period. Shares issued during the period and shares reacquired during the period are weighted for the portion of the period in which the shares were outstanding. Diluted earnings per share has been computed in a manner consistent with that of basic earnings per share while giving effect to all potentially dilutive common shares that were outstanding during each period. The net income available to common stockholders and weighted average number of common shares outstanding used to compute basic and diluted earnings per share for each class of common stock are as follows (in thousands, except per share amounts):
For the three months ended June 30, 2013 and 2012, options to purchase 3.3 million and 3.0 million shares, respectively, were outstanding but not included in the computation of diluted earnings per share because the options’ effect would have been anti-dilutive. For the six months ended June 30, 2013 and 2012, options to purchase 3.5 million and 2.9 million shares, respectively, were outstanding but not included in the computation of diluted earnings per share because the options' effect would have been anti-dilutive. For the six months ended June 30, 2013 and 2012, shares issued from the exercise of stock option were 39 thousand and 37 thousand, respectively. |
Business Segment And Geographic Area Information (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Revenues by Geographic Customer and Related Percentage Of Total Revenues | Revenues by geographic customer and the related percentages of total revenues for the three and six months ended June 30, 2013 and 2012 were as follows (dollars in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contracts Exceeding 10% Of Revenues | The following table includes contracts that exceeded 10% of our revenues for the three and six months ended June 30, 2013 and 2012 (dollars in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contracts Exceeding 10% Of Operating Income | The following table includes contracts that exceeded 10% of our operating income for the three and six months ended June 30, 2013 and 2012 (dollars in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contracts Exceeding 10% Of Receivables, net | The following table includes contracts that exceeded 10% of our receivables, net at June 30, 2013 and December 31, 2012 (dollars in thousands):
|
Earnings Per Share (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted | The net income available to common stockholders and weighted average number of common shares outstanding used to compute basic and diluted earnings per share for each class of common stock are as follows (in thousands, except per share amounts):
|
Business Segment And Geographic Area Information (Contracts Exceeding 10% Of Revenues) (Table) (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
|
Revenue, Major Customer [Line Items] | ||||
Revenues | $ 605,129 | $ 638,937 | $ 1,251,137 | $ 1,315,446 |
Contract A [Member]
|
||||
Revenue, Major Customer [Line Items] | ||||
Revenue, Major Customer, Amount | 137,570 | 140,584 | 275,483 | 282,407 |
Revenue, Major Customer, Percentage | 22.70% | 22.00% | 22.00% | 21.50% |
All Other Contracts [Member]
|
||||
Revenue, Major Customer [Line Items] | ||||
Revenues, Other Contracts, Amount | $ 467,559 | $ 498,353 | $ 975,654 | $ 1,033,039 |
Revenues, Other Contracts, Percentage | 77.30% | 78.00% | 78.00% | 78.50% |
Long-Term Debt (Activity Under Revolving Credit Facility) (Table) (Details) (USD $)
In Thousands, unless otherwise specified |
6 Months Ended | |
---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
|
Debt Disclosure [Abstract] | ||
Borrowings under revolving credit facility | $ 0 | $ 9,000 |
Repayments of borrowings under revolving credit facility | $ 0 | $ (9,000) |
Earnings Per Share (Narrative) (Details) (USD $)
|
3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
Mar. 31, 2013
|
Jun. 30, 2012
|
Mar. 31, 2012
|
Jun. 30, 2013
dividends
|
Jun. 30, 2012
dividends
|
Dec. 31, 2012
|
|
Earnings Per Share [Abstract] | |||||||
Number of Dividends Declared and Paid | 2 | 2 | |||||
Dividend Declared And Paid | $ 0.21 | $ 0.21 | $ 0.21 | $ 0.21 | |||
Options to purchase | 3,300,000 | 3,000,000 | 3,500,000 | 2,900,000 | |||
Shares issued from the exercise of stock options | 39,000 | 36,542 | 38,542 |
Business Segment And Geographic Area Information (Narrative) (Details)
|
3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
Revenues [Member]
|
Jun. 30, 2012
Revenues [Member]
|
Jun. 30, 2013
Revenues [Member]
|
Jun. 30, 2012
Revenues [Member]
|
Jun. 30, 2013
Operating Income [Member]
|
Jun. 30, 2012
Operating Income [Member]
|
Jun. 30, 2013
Operating Income [Member]
|
Jun. 30, 2012
Operating Income [Member]
|
Jun. 30, 2013
Receivables [Member]
|
Dec. 31, 2012
Receivables [Member]
|
|
Segment Reporting Information [Line Items] | ||||||||||||||
Number of reportable segments | 1 | |||||||||||||
Percentage of revenue from U.S. Government | 99.00% | 99.20% | ||||||||||||
Concentration Risk, Percentage | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% |
Goodwill And Other Intangible Assets (Narrative) (Details) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
|
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization of Intangible Assets | $ 5.1 | $ 5.1 | $ 10.2 | $ 9.9 |
Business Segment And Geographic Area Information (Contracts Exceeding 10% Of Operating Income) (Table) (Detail) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
|
Segment Reporting Information [Line Items] | ||||
Operating Income | $ 38,671 | $ 44,880 | $ 75,042 | $ 90,575 |
Contract A [Member]
|
||||
Segment Reporting Information [Line Items] | ||||
Operating Income, Major Contracts, Amount | 5,684 | 9,475 | 11,796 | 18,848 |
Operating Income, Major Contracts, Percentage | 14.70% | 21.10% | 15.70% | 20.80% |
All Other Contracts [Member]
|
||||
Segment Reporting Information [Line Items] | ||||
Operating Income, Other Contracts, Amount | $ 32,987 | $ 35,405 | $ 63,246 | $ 71,727 |
Operating Income, Other Contracts, Percentage | 85.30% | 78.90% | 84.30% | 79.20% |
Property And Equipment (Major Classes Of Property And Equipment) (Table) (Details) (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2013
|
Dec. 31, 2012
|
---|---|---|
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 79,171 | $ 123,866 |
Less: Accumulated depreciation and amortization | (51,289) | (95,278) |
Total property and equipment-net | 27,882 | 28,588 |
Furniture and Equipment [Member]
|
||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 47,983 | 94,934 |
Leasehold Improvements [Member]
|
||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 31,188 | $ 28,932 |
Introduction and Overview (Narrative) (Details)
|
6 Months Ended |
---|---|
Jun. 30, 2013
contracts
federalagenices
|
|
Introduction And Overview [Abstract] | |
Number Of Federal Agencies | 50 |
Number Of Contracts | 1,000 |
Basis of Presentation
|
6 Months Ended |
---|---|
Jun. 30, 2013
|
|
Basis of Presentation [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Certain information and note disclosures normally included in the annual financial statements, prepared in accordance with accounting principles generally accepted in the United States of America, have been condensed or omitted pursuant to those rules and regulations. We recommend that you read these unaudited condensed consolidated financial statements in conjunction with the audited consolidated financial statements and related notes included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2012, previously filed with the SEC. We believe that the unaudited condensed consolidated financial statements in this Form 10-Q reflect all adjustments that are necessary to fairly present the financial position, results of operations and cash flows for the interim periods presented. The results of operations for such interim periods are not necessarily indicative of the results that can be expected for the full year. |
Receivables
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts Receivable, Net [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables | Receivables We deliver a broad array of information technology and technical services solutions under contracts with the U.S. government, state and local governments and commercial customers. The components of contract receivables are as follows (in thousands):
Amounts billable consist principally of amounts to be billed within the next month. Revenues recorded in excess of funding are billable upon receipt of contractual amendments or other modifications. Revenues recorded in excess of milestone billings on fixed price contracts consist of amounts not expected to be billed within the next month. The retainage is billable upon completion of contract performance and approval of final indirect expense rates by the government. Accounts receivable at June 30, 2013, are expected to be substantially collected within one year except for approximately $1.6 million, of which amount 90.4% is related to receivables from direct sales to the U.S. government. The remainder is related to receivables from contracts in which we acted as a subcontractor to other contractors. The Company does not believe it has significant exposure to credit risk as accounts receivable and the related unbilled amounts are primarily due from the U.S. government. The allowance for doubtful accounts represents the Company’s exposure to compliance issues, contractual issues and bad debt related to prime contractors. |
Acquisitions
|
6 Months Ended |
---|---|
Jun. 30, 2013
|
|
Business Combinations [Abstract] | |
Acquisitions | Acquisitions Our acquisitions have been accounted for using the acquisition method of accounting under Accounting Standards Codification (ASC) 805, Business Combinations. ALTA Systems, Inc.-On January 8, 2013, we completed the acquisition of ALTA Systems, Inc. (ALTA). The results of ALTA's operations have been included in our consolidated financial statements since that date. The acquisition was completed through a stock purchase agreement dated January 8, 2013, by and among ManTech International Corporation, ALTA Holdings LLC and the sole member of ALTA Holding LLC. ALTA is an information technology (IT) and professional services company with valuable applications in healthcare systems and capital planning. ALTA provides a broad range of IT and professional services to government and private industry in three major areas: capital planning and investment control; system design, development and operations; and fraud detection and statistical analysis. The acquisition allows ManTech to deliver technology services through ALTA's prime position on the Centers for Medicare and Medicaid Services (CMS) Enterprise Systems Development (ESD) contract. ManTech funded the acquisition with cash on hand. The stock purchase agreement did not contain provisions for contingent consideration. During the six months ended June 30, 2013, ManTech incurred approximately $0.1 million of acquisition costs related to the ALTA transaction, which are included in the general and administrative expense in our condensed consolidated statement of income. The purchase price of $10.2 million has been preliminarily allocated to the underlying assets and liabilities based on their estimated fair value at the date of acquisition. We are still evaluating the fair value of assets and liabilities acquired. We have preliminarily recorded total assets of $11.1 million, including goodwill and intangible assets recognized in connection with the acquisition, and total liabilities of $0.9 million. Included in total assets were $0.7 million in acquisition related intangible assets. We recorded goodwill of $8.8 million, which will be deductible for tax purposes over 15 years, assuming adequate levels of taxable income. Recognition of goodwill is largely attributed to the value paid for ALTA's capabilities in providing technology services to the federal government in the health care sector. In preliminarily allocating the purchase price, we considered among other factors, analysis of historical financial performance and estimates of future performance of ALTA's contracts. The components of other intangible assets associated with the acquisition were customer relationships and backlog valued at $0.6 million and $0.1 million, respectively. Customer contracts and related relationships represent the underlying relationships and agreements with ALTA's existing customers. Customer relationships and backlog are amortized straight-line over their estimated useful lives of approximately 20 years and 1 year, respectively. The weighted-average amortization period for the intangible assets is 17.1 years. HBGary, Inc.-On April 2, 2012, we completed the acquisition of certain assets of HBGary, Inc. (HBGary). The results of HBGary's operations have been included in our consolidated financial statements since that date. The acquisition was completed through an asset purchase agreement dated February 27, 2012, by and among a subsidiary of ManTech International Corporation, HBGary and the shareholders of HBGary. HBGary provides a comprehensive suite of software products to detect, analyze and diagnose Advance Persistent Threats and targeted malware. The company has customers in the financial services, energy, critical infrastructure and technology sectors. This acquisition broadened our cyber security solution capability for customers. ManTech funded the acquisition with cash on hand. The asset purchase agreement did not contain provisions for contingent consideration. During the six months ended June 30, 2012, ManTech incurred approximately $0.5 million of acquisition costs related to the HBGary transaction, which are included in the general and administrative expense in our condensed consolidated statement of income. The purchase price of $23.8 million was allocated to the underlying assets and liabilities based on their fair value at the date of acquisition. Total assets were $24.6 million, including goodwill and intangible assets recognized in connection with the acquisition, and total liabilities were $0.8 million. Included in total assets were $3.1 million in acquisition related intangible assets. We recorded goodwill of $20.1 million, which will be deductible for tax purposes over 15 years, assuming adequate levels of taxable income. Recognition of goodwill is largely attributed to the value paid for HBGary's capabilities in providing cyber service and product solutions to both federal and commercial customers. The components of other intangible assets associated with the acquisition were developed technology, customer relationships and trademark valued at $2.0 million, $0.9 million and $0.2 million, respectively. Developed technology represents the software developed by HBGary to detect, analyze and diagnose Advanced Persistent Threats and targeted malware. Customer relationships represent the underlying relationship with HBGary customers in the financial services, energy, critical infrastructure and technology sectors. Trademark represents the HBGary trade name that is recognized in the industry. Developed technology, customer relationships and trademark are amortized straight-line over their estimated useful lives of approximately 3 years, 2 years and 2 years, respectively. The weighted-average amortization period for the intangible assets is 2.5 years. Evolvent Technologies, Inc.-On January 6, 2012, we completed the acquisition of Evolvent Technologies, Inc. (Evolvent). The results of Evolvent's operations have been included in our consolidated financial statements since that date. The acquisition was completed through an equity purchase agreement dated January 6, 2012, by and among ManTech, shareholders and warrantholders of the parent of Evolvent, Evolvent, and Prudent Management, LLC in its capacity as the sellers' representative. Evolvent provides services in clinical IT, clinical business intelligence, imaging cyber security, behavioral health, tele-health, software development and systems integration. Its systems and processes enable better decision-making at the point of care and full integration of medical information across different platforms. This acquisition has enabled ManTech to expand its customer relationships and deliver IT solutions through Evolvent's existing relationships with the Department of Defense health organizations, the Veterans Administration and the Department of Health and Human Services. ManTech funded the acquisition with cash on hand. The equity purchase agreement did not contain provisions for contingent consideration. During the six months ended June 30, 2012, the Company incurred $0.2 million of acquisition costs associated with the Evolvent transaction, which are included in general and administrative expense in our condensed consolidated statement of income. The purchase price of $39.9 million was allocated to the underlying assets and liabilities based on their fair value at the date of acquisition. Total assets were $46.9 million, including goodwill and intangible assets recognized in connection with the acquisition, and total liabilities were $7.0 million. Included in total assets were $3.7 million in acquisition related intangible assets. We recorded goodwill of $33.2 million, which is not deductible for tax purposes. Recognition of goodwill is largely attributed to the highly skilled employees and the value paid for Evolvent's capabilities in providing IT services and solutions to the federal government healthcare sector. In allocating the purchase price, we considered among other factors, analyses of historical performance and estimates of future performance of Evolvent's contracts. The components of other intangible assets associated with the acquisition were customer relationships and backlog valued at $3.4 million and $0.3 million, respectively. Customer contracts and related relationships represent the underlying relationships and agreements with Evolvent's existing customers. Customer relationships and backlog are amortized over their estimated useful lives of 20 years and 1 year, respectively, using the pattern of benefits method. The weighted-average amortization period for the intangible assets is 18.5 years. |
Stock-Based Compensation (Schedule Of Share-based Payment Award, Stock Options, Valuation Assumptions) (Table) (Details)
|
6 Months Ended | |
---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
|
Share-based Compensation [Abstract] | ||
Volatility | 32.45% | 30.49% |
Expected life of options | 3 years 1 month 20 days | 3 years 0 months 13 days |
Risk-free interest rate | 0.44% | 0.56% |
Dividend yield | 3.00% | 2.25% |
Goodwill And Other Intangible Assets (Changes In Carrying Amounts Of Goodwill) (Details) (USD $)
In Thousands, unless otherwise specified |
6 Months Ended | 12 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|---|
Jun. 30, 2013
|
Dec. 31, 2011
|
Dec. 31, 2012
Worldwide Information Network Systems, Inc. [Member]
|
Dec. 31, 2012
Evolvent Technologies, Inc. [Member]
|
Dec. 31, 2012
HBGary, Inc. [Member]
|
Jun. 30, 2013
ALTA Systems, Inc [Member]
|
|
Goodwill [Roll Forward] | ||||||
Goodwill balance, period start | $ 861,912 | $ 808,455 | ||||
Additional consideration for the acquisition | 212 | |||||
Acquisition | 33,175 | 20,070 | 8,847 | |||
Other | 260 | |||||
Goodwill balance, period end | $ 871,019 | $ 808,455 |