Contracts, acquisitions spur ManTech's 4Q double-digit growth

ManTech International Corp. saw its fourth-quarter 2010 revenues reach $697.9 million, a 29 percent increase from the $542.1 million registered in the fourth quarter of fiscal 2009.

Revenues for fiscal year 2010, which ended Dec. 31, were $2.60 billion, up 29 percent from $2.02 billion in fiscal year 2009, according to a Feb. 23 company report.

Organic growth was 4 percent for the quarter and greater than 10 percent for the fiscal year, driven primarily by recent awards for intelligence, surveillance and reconnaissance (ISR), systems engineering, and test and evaluation programs, ManTech said.

The company also attributed its organic growth to expanded requirements on existing cybersecurity and logistics contracts, offsetting slowdowns in material purchases in support of in-theater vehicle maintenance contracts.

Excluding the in-theater vehicle maintenance contracts, organic growth was 15 percent and 18 percent for the fourth quarter and fiscal year, respectively.

Operating income for the quarter was $58.9 million (8.4 percent of revenue), up 24 percent from $47.4 million (8.7 percent of revenue) in the fourth quarter of fiscal 2009. Full-year operating income was $215.1 million (8.3 percent of revenue), up 20 percent from $179.1 million (8.9 percent of revenue) in fiscal 2009.

Net income for the fourth quarter was $34 million, up 15 percent from $29.5 million in the corresponding quarter of 2009.

Full-year net income was $125.1 million, up 12 percent from $111.8 million in fiscal 2009.

The company invested $135 million in the quarter to purchase QinetiQ North America’s Security and Intelligence Solutions business and MTCSC Inc.

Including the first-quarter acquisition of Sensor Technologies Inc., ManTech invested $377 million during fiscal 2010 on the three acquisitions.

On February 11, ManTech used a modest amount of cash on hand to acquire TranTech Inc. The transaction is expected to be immediately accretive to earnings per share.

As of Dec. 31, 2010, the company had $85 million in cash and cash equivalents and $200 million in debt with no borrowings on its $350 million revolving-credit facility.

Contract awards totaled $257 million in the fourth quarter and $2.8 billion for the fiscal year, representing a book-to-bill ratio of 0.4 and 1.1 for the fourth quarter and fiscal year, respectively.

The fourth-quarter bookings total excludes several contracts that were awarded but were subsequently protested. Contract awards in the quarter were also affected by a number of delays, ManTech said.

Large, single-award contracts received during the quarter included:

• Naval Air Warfare Center Aircraft Division (NAWCAD) Support, a five-year, $57 million contract.
• Naval Surface Warfare Center (NSWC) Ship Silencing Support, a four-year, $45 million task order by the NSWC Carderock Division.

In addition, ManTech won several indefinite-delivery, indefinite-quantity contracts that are not included in bookings, most notably an FBI Information Technology Supplies and Support Services (IT SSS) task order and a Commercial Enterprise Omnibus for Support Services (CEOss) prime contract with the Marine Corps Systems Command.

The company’s backlog of business at the end of the fourth quarter was $4.9 billion, of which $1.6 billion was funded.

“Fiscal year 2010 was an excellent year for ManTech, marked by double-digit growth, increased profitability, excellent cash flow and strong contract awards,” ManTech Chairman and Chief Executive Officer George J. Pedersen said in the statement.

Pedersen said the company expects to exceed $3 billion in revenue in 2011.

ManTech also reported contract awards of about $700 million in less than two months of 2011.

ManTech International, of Fairfax, Va., ranks No. 31 on Washington Technology’s 2010 Top 100 list of the largest federal government contractors.