ManTech Q1 numbers slip as wartime contracting declines

ManTech International Corp. reported first quarter 2012 revenue of $676.5 million, compared to $700.9 million in the first quarter of 2011.

Quarterly revenues increased across the company's intelligence and cyber security programs, which partially offset industrywide decreases in support of wartime missions, the company announced May 3.

"During this quarter we focused on positioning ManTech in high-growth, high-margin markets with the acquisitions of HBGary and Evolvent," said ManTech Chairman and Chief Executive Officer George Pedersen in the earnings statement released at the close of the markets.

"Both the cyber security and health care informatics markets offer strong potential for organic growth and allow us to offer solutions to both government and commercial customers,” he said.

“Our disciplined focus on cash, as evidenced by excellent collections this quarter, enables us to return dividends to our shareholders and to maintain a robust acquisition program. We are confident that ManTech will thrive even as the nation winds down its involvement in overseas conflicts because of our expanding presence in growth markets, our excellent reputation for efficient execution and our broad reach across key intelligence and defense customers. I believe ManTech is in a solid position for the future," Pedersen said.

Operating income for the quarter was $45.7 million, compared to $55.9 million in the first quarter of 2011.

Operating margin of 6.8 percent was affected by increased market pressures on in-theater work, continued movement to cost-plus contracts, as well as increased levels of bid-and-proposal and acquisition-related expense.

Net income for the quarter was $25.6 million, compared to $31.9 million in the first quarter of 2011. Diluted earnings per share for the quarter were $0.69, compared to $0.87 in the first quarter of 2011.

Contract awards totaled $308 million in the first quarter, representing a book-to-bill ratio of 0.5.

Large, single-award contracts contributing to the quarterly bookings include:

• FBI Information Services Support contract valued at $69 million over four and one-half years.
• Naval Air Systems Command Flight Test Support contract: a three-year, $46 million contract for flight test support for the NAVAIR Manned and Unmanned Air Vehicle Evaluation Division.
• NASA Langley Administrative, Media, and Professional Services contract, a joint venture of ManTech and Genex Systems, a five-year prime contract with ManTech's share of the $94 million award approximately $24 million.
• Naval Surface Warfare Center, Carderock Division Acoustic Engineering Services, a three-year, $18 million contract to operate and maintain existing acoustic measurement systems.

The company's backlog of business at the end of the first quarter was $4.3 billion, of which $1.2 billion was funded.

ManTech International Inc., of Fairfax, Va., ranks No. 22 on Washington Technology’s 2011 Top 100 list of the largest federal government contractors.