EX-99 2 dex99.htm PRESS RELEASE Press Release

Exhibit 99

 

LOGO

 

FOR IMMEDIATE RELEASE

 

For additional information contact:

   
Mark Root   Maureen Crystal
Executive Director, Corporate Communications   Executive Director, Investor Relations
off: 703-218-8397; cell: 703-407-9393   703-218-8262
mark.root@mantech.com   maureen.crystal@mantech.com

 

ManTech Reports Record 2004 First Quarter Results and Increases Guidance

 

  First quarter revenues increased 37 percent to $202.8 million

 

  Operating income increased 53 percent for the quarter to $19.4 million

 

  Diluted EPS increased 59 percent for the quarter to $0.35

 

  Organic growth of 24 percent in first quarter revenues

 

  Management increases guidance for 2004

 

FAIRFAX, Virginia, April 28, 2004 – ManTech International Corporation (Nasdaq: MANT), a leading provider of innovative technologies and solutions focused on mission-critical national security programs for the Intelligence Community, the Department of Defense and other federal government customers, today announced record results for the first quarter of 2004.

 

ManTech reported revenue of $202.8 million for the first quarter of 2004, up $54.7 million, or 37 percent, compared to $148.1 million for the same period in 2003. The results reflect an organic growth rate of 24 percent from the comparable period in 2003 due to a surge in our defense systems support related to activities in Iraq, Europe and the United States, and increased spending for national and homeland security. Also increasing the revenues in the most recent quarter was $3.6 million related to certain operations of ACS Defense acquired during the quarter.

 

Operating income in the first quarter was $19.4 million, an increase of 53 percent over the comparable period in 2003. The operating margin for the quarter expanded to 9.5 percent compared with 8.6 percent for the same period in 2003. The margin expansion in the quarter was primarily attributable to operating leverage from the surge in defense business and to a $1 million profit pickup due to improvements on a fixed-price contract. Fully diluted EPS were $0.35 for the first quarter of 2004, up 59 percent from $0.22 in the same quarter of 2003.

 

“We are pleased to report record-setting quarterly revenues, profits and earnings,” said George J. Pedersen, ManTech International Chairman of the Board, CEO and President.” We are now reaping the benefits of the strategy we implemented several years ago to pursue the high-end intelligence and defense market. Our results reflect synergies from our prior acquisitions as well as our strong internal growth results. Based on our strong financial


performance, favorable market conditions, and the completion of the integration of our latest acquisition – we are looking forward to continued success and strong performance for the remainder of 2004.”

 

Key Performance Metrics

 

Reported total backlog as of March 31, 2004, was $1.4 billion and funded backlog as of March 31, 2004, was $352 million. ManTech derived approximately 87 percent of its revenue during the first quarter of 2004 from prime contracts, and over 43 percent of its revenue from work under GSA schedule contracts. Revenue from the Department of Defense and the Intelligence Community accounted for over 93 percent of revenue for the first quarter of 2004. ManTech’s time and materials contracts accounted for 55 percent of revenue, fixed-price contracts accounted for 15 percent of revenue and cost-plus contracts accounted for 30 percent of revenue.

 

Business Highlights

 

  Award of three contracts totaling $62.1 million from the Department of Homeland Security for program management and strategic planning—$11.5 million; information technology and infrastructure support —$21.6 million; and personnel security investigation services—$29 million.

 

  Receipt of two U.S. Army contracts in the Command, Control, Communications, Computers and Intelligence area totaling $31.2 million.

 

  Award of a multi-company, five-year, indefinite-delivery, indefinite-quantity (IDIQ) contract to provide program management and technical support to the U.S. Naval Air Systems Command. The contract has a potential value to all participants of $460 million.

 

  Announcement of a $22.5 million contract from the National Security Agency to provide engineering and maintenance support for computer and communications equipment.

 

  Award of a $12.9 million, Shipboard Advanced Radar Target Identification Systems (SARTIS) contract from the Naval Air Warfare Center Aircraft Division.

 

  Selected for the Seaport Enhanced, 15-year, IDIQ, multiple-award contract to provide engineering/technical and program management support services to the Naval Sea Systems Command. The contract has a total potential value to all participants of $19.5 billion.

 

  In February, ManTech acquired operations from Affiliated Computer Services, Inc., that support the U.S. Air Force Electronic Systems Center’s Information Technology Services Program.

 

“Our contract awards this past quarter from the Department of Defense and Intelligence Community are a testament to our continued strong performance for these customers,” said Pedersen. “These recent wins, coupled with the contract awards we received in late 2003 from the Department of Homeland Security and the Justice Department, push us further toward our goal of becoming one of the few companies with the capability to help integrate critical information from the Intelligence Community, the Department of Defense, Department of State, Department of Justice, and the Department of Homeland Security.”

 

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Company Guidance for 2004 Increased Due to Expanded Business

 

With the record results for the quarter, the recent acquisition of ACS, and the strategic and financial position of the company today, the company has expanded guidance for 2004. For the second quarter of 2004, revenue guidance is increased to the range of $204 million to $208 million, with diluted EPS in the range of $0.32 to $0.34 per share. For the full-year 2004, guidance for revenues is increased to the range of $840 million to $855 million, with diluted EPS in the range of $1.38 to $1.42, without further acquisitions. This assumes diluted shares of 32.5 million for the second quarter and 32.6 million for the full year 2004

 

    

Second Quarter 2004


  

Full Year 2004


Revenue

   $204 million – $208 million    $840 million – $855 million

Diluted Earnings Per Share

   $0.32 – $0.34    $1.38 – $1.42

Weighted Average Common Shares Outstanding

   32.5 million    32.6 million

 

Conference Call:

 

ManTech executive management will hold a conference call today at 5 p.m. EST, to discuss first quarter 2004 and full year 2004 results and answer questions. Interested parties may access the call by dialing (800) 759-3578 (domestic) or (706) 679-7301 (international). The conference call will be Webcast (listen only) simultaneously via the Internet at www.mantech.com. Interested parties should dial in or log on approximately ten minutes prior to the start of the call.

 

A replay of the call will be available beginning at 9 p.m. today and will remain available through midnight, May 14. To access the replay, call (800) 642-1687 (domestic) or (706) 645-9291 (international). The confirmation code for the replay is 6737440. 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, ManTech International Corporation is a leading provider of innovative technologies and solutions for mission-critical national security programs for the Intelligence Community, the Department of Defense and other U.S. federal government customers. The company’s expertise includes software development, enterprise security architecture, information assurance, intelligence operations support, network and critical infrastructure protection, information technology, communications integration and engineering support. With annual revenues in excess of $700 million and more than 5,000 highly qualified employees, the company operates in the United States and over 30 countries worldwide. Additional information on ManTech can be found at www.mantech.com.

 

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Forward-Looking Information:

 

Statements and assumptions made in this press release, which do not address historical facts, constitute “forward-looking” statements that ManTech believes to be within the definition in the Private Securities Litigation Reform Act of 1995 and involve risks and uncertainties, many of which are outside of our control. Words such as “may,” “will,” “intends,” “should,” “expects,” “plans,” “projects,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” “continue,” or “opportunity,” or the negative of these terms or words of similar import are intended to identify forward-looking statements.

 

These forward-looking statements are subject to known and unknown risks and uncertainties, which could cause actual results to differ materially from those anticipated, including, without limitation: adverse changes in U.S. government spending priorities; failure to retain existing U.S. government contracts or win new contracts; failure to obtain option awards, task orders, or funding under contracts; risks of contract performance; risks of contract termination, either for default or for the convenience of the U.S. government; adverse results of U.S. government audits of our U.S. government contracts; risks associated with complex U.S. government procurement laws and regulations; failure to experience favorable results from acquisition synergies; and material changes in laws or regulations applicable to the company’s businesses. These and other risk factors are more fully discussed in the section entitled “Risks Related to the Company’s Business” in ManTech’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 15, 2004, and, from time to time, in ManTech’s other filings with the Securities and Exchange Commission, including among others, its reports on Form 8-K and Form 10-Q.

 

The forward-looking statements included in this news release are only made as of the date of this news release and ManTech undertakes no obligation to publicly update any of the forward-looking statements made herein, whether as a result of new information, subsequent events or circumstances, changes in expectations or otherwise.

 

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MANTECH INTERNATIONAL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Dollars in Thousands Except Per Share Amounts)

 

     Three months ended March 31,

 
     2004

    2003

 
     (unaudited)     (unaudited)  
REVENUES    $ 202,769     $ 148,123  
COST OF SERVICES      163,574       119,782  
    


 


GROSS PROFIT      39,195       28,341  
    


 


COSTS AND EXPENSES:                 

General and administrative

     18,536       14,739  

Depreciation and amortization

     1,298       935  
    


 


Total costs and expenses

     19,834       15,674  
    


 


INCOME FROM OPERATIONS      19,361       12,667  

Interest expense

     542       334  

Other expense (income)

     (302 )     622  
    


 


INCOME BEFORE PROVISION FOR INCOME TAXES AND MINORITY INTEREST      19,121       11,711  

Provision for income taxes

     (7,779 )     (4,748 )

Minority interest

     (2 )     (1 )
    


 


NET INCOME    $ 11,340     $ 6,962  
    


 


BASIC EARNINGS PER SHARE    $ 0.35     $ 0.22  
    


 


Weighted average common shares outstanding

     32,129,949       31,915,814  
    


 


DILUTED EARNINGS PER SHARE    $ 0.35     $ 0.22  
    


 


Weighted average common shares outstanding

     32,358,250       31,935,340  
    


 


 

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MANTECH INTERNATIONAL CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in Thousands)

 

    

March 31,

2004


   

December 31,

2003


 
     (unaudited)     (unaudited)  
ASSETS                 
CURRENT ASSETS:                 

Cash and cash equivalents

   $ 4,547     $ 9,166  

Cash In escrow

     830       829  

Receivables—net

     212,959       204,539  

Prepaid expenses and other

     17,457       17,527  

Assets held for sale

     1,326       1,332  
    


 


Total current assets

     237,119       233,393  

Property and equipment—net

     10,887       10,920  

Goodwill

     151,047       149,548  

Other intangibles

     21,534       15,741  

Investments

     5,983       5,560  

Employee supplemental savings plan assets

     11,496       10,594  

Other assets

     10,823       10,378  
    


 


TOTAL ASSETS    $ 448,889     $ 436,134  
    


 


LIABILITIES AND STOCKHOLDERS’ EQUITY                 
CURRENT LIABILITIES:                 

Current portion of debt

   $ 78     $ 77  

Accounts payable and accrued expenses

     40,384       45,157  

Accrued salaries and related expenses

     26,344       30,548  

Deferred income taxes

     26,300       20,092  

Billings in excess of revenue earned

     5,880       4,514  

Liabilities held for sale

     1,128       1,164  
    


 


Total current liabilities

     100,114       101,552  

Debt—net of current portion

     25,500       25,184  

Accrued retirement

     12,833       11,914  

Other long-term liabilities

     5,660       5,178  

Deferred income taxes

     5,221       4,553  

Minority interest

     51       49  
    


 


TOTAL LIABILITIES      149,379       148,430  
    


 


COMMITMENTS AND CONTINGENCIES                 
STOCKHOLDERS’ EQUITY:                 

Common stock, Class A

     171       170  

Common stock, Class B

     151       151  

Additional paid in capital

     212,859       212,564  

Retained earnings

     87,342       76,003  

Accumulated other comprehensive loss

     (1,013 )     (1,184 )

Deferred compensation

     640       640  

Shares held in grantor trust

     (640 )     (640 )
    


 


TOTAL STOCKHOLDERS’ EQUITY      299,510       287,704  
    


 


TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY    $ 448,889     $ 436,134  
    


 


 

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MANTECH INTERNATIONAL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Dollars in Thousands)

 

     Three months ended March 31,

 
     2004

    2003

 
     (unaudited)     (unaudited)  
CASH FLOWS FROM OPERATING ACTIVITIES:                 

Net income

   $ 11,340     $ 6,962  

Adjustments to reconcile net income to net cash used in operating activities:

                

Equity in (earnings) losses of affiliates

     (115 )     874  

Increase (Decrease) in deferred income taxes

     6,900       (570 )

Minority interest in income of consolidated subsidiaries

     1       1  

Loss on disposals of property and equipment

     4       —    

Depreciation and amortization

     1,710       1,412  

Change in assets and liabilities—net of effects from acquired and discontinued businesses:

                

(Increase) in contract receivables

     (8,412 )     (9,627 )

(Increase) in prepaid expenses and other

     (1,279 )     (2,278 )

(Decrease) in accounts payable and accrued expenses

     (6,253 )     (3,019 )

(Decrease) Increase in accrued salaries and related expenses

     (4,165 )     3,079  

Increase in billings in excess of revenue earned

     1,362       1,582  

Increase in deferred rent

     49       9  

Increase in accrued retirement

     919       121  
    


 


Net cash provided by (used in) operating activities of continuing operations

     2,061       (1,454 )
    


 


CASH FLOWS FROM INVESTING ACTIVITIES:                 

Investment in property and equipment

     (793 )     (879 )

Proceeds from sales of property and equipment

     1       —    

Investment in capitalized software products

     (111 )     (504 )

Acquisition of Business

     (6,509 )     (66,691 )
    


 


Net cash used in investing activities of continuing operations

     (7,412 )     (68,074 )
    


 


CASH FLOWS FROM FINANCING ACTIVITIES:                 

Payment of not-to-compete financings

     —         (1,000 )

Proceeds from exercise of stock options

     256          

Net increase in borrowings under lines of credit

     501       —    
    


 


Net cash provided by (used in) financing activities of continuing operations

     757       (1,000 )
    


 


EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS      4       33  
    


 


NET CASH (USED IN) PROVIDED BY DISCONTINUED OPERATIONS      (29 )     2,050  
    


 


NET (DECREASE) IN CASH AND CASH EQUIVALENTS      (4,619 )     (68,445 )
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD      9,166       81,096  
    


 


CASH AND CASH EQUIVALENTS, END OF PERIOD    $ 4,547     $ 12,651  
    


 


 

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