ManTech revenue, earnings take second quarter hit

By nearly every measure, ManTech International Corp. had a rough second quarter:

• Revenue is down: $638.9 million for the second quarter of 2012 (ended June 30) versus $752.7 million for the quarter a year ago.
• Operating income is down: $44.9 million for 2012, compared to $59.2 million for second quarter last year.
• Net income is down: $24.7 million compared to $36.4 million.
• Net cash flow is down more than 50 percent: $90.8 million for the first six months of 2012, compared to $186.7 million for the same period in 2011.

But in the company’s quarterly statement, Chairman and CEO George Pedersen is quick to point out some bright spots for the company:

• A $2.85 billion contract to support mine-resistant and protected vehicles. It is the company’s largest contract.
• Growth in the company’s cyber and intelligence business.
• A continuing resolution agreement in Congress that extends funding through March 2013 at current levels.

“We expect that customers will soon release funds that they have been holding, which will provide us the opportunity to return to the growth profile that investors have come to expect,” Pedersen said.

ManTech’s growth troubles have been pegged to declining sales because of the drawn down in Iraq and Afghanistan. Other issues pointed out by Raymond James analysts Brian Gesuale and Matt Bugarin include more lower-margin, cost-plus contracts and shaky visibility into the company non-war-related business.

ManTech isn’t the only company to report lower sales and depressed profitability. Both Lockheed Martin and Northrop Grumman reported dips in their IT businesses.