ManTech follows third quarter trend of mixed results
Third quarter up from the second, but year-to-year drop is significant
- By Mark Hoover
- Nov 05, 2012
ManTech International Corp. reported great cash flow, and increased revenues from the second quarter to the third, but the company took a hit in other areas such as year-to-year revenue.
ManTech chairman and CEO, George J. Pedersen, was hopeful, however, and said that the"third quarter of fiscal year 2012 marked a continuation of strong bookings growth for ManTech.”
Customers ultimately came through for the company, in ManTech’s priority areas, despite initial, industry-wide delays, he said.
Pedersen also said that the company has “record backlog of $7 billion,” with $1.2 billion in third quarter bookings and $5.5 billion over the last 12 months.
Cash collections were reported to be strong for ManTech this quarter, which ended Sept. 30.
“After generating $97 million in operating cash flow, we had a record cash balance of $209 million,” Pedersen said.
With $200 million in high-yield debt with no outstanding borrowings on its $500 million revolving-credit facility, the company has the financial capacity to pursue acquisitions, issue dividends, and maintain a strong balance sheet.
Cash flow from operations for the quarter was $97 million or 3.9 times net income.
Third quarter revenues were $645 million, an increase from the second quarter’s $638.9 million, but a drop of just under $100 million from third quarter 2011’s $734.6 million.
Revenue areas include intelligence, cybersecurity and health care, each of which increased year-over-year, ManTech said.
Operating income, $42.8 million this quarter, also dropped from third quarter 2011’s $58.5 million. ManTech said that operating margin of 6.6 percent reflected greater investment in new market growth areas.
Third quarter net income was $24.4 million, a decrease from $34.5 million in third quarter net income for 2011.
Diluted earnings per share fell by slightly over 30 cents, at 66 cents in comparison to 2011’s 94 cents.
The company also said that it won a number of both standard and task order contracts that totaled $1.2 billion in the third quarter. ManTech listed the following four contracts as having contributed to the quarter:
- Strategic Services Sourcing Command, Control,Communications, Computers, Intelligence, Surveillance and Reconnaissance Support
- Joint Interoperability Test Command Support Services
- U.S. Marine Corps Cougar Support
- Armed Forces Health Longitudinal Technology application-Theater Support.
Mark Hoover is a senior staff writer with Washington Technology. You can contact him at email@example.com, or connect with him on Twitter at @mhooverWT.