GlobeNewswire Inc | Feb 17, 2021 04:05PM EST

February 17, 2021

-- Revenue: $639 million for the fourth quarter and $2.52 billion for the year (11% organic growth) -- EBITDA Margin: 9.3% for the fourth quarter and 9.1% for the year -- Diluted EPS: $0.79 for the fourth quarter and $2.97 for the year -- Adjusted Diluted EPS: $0.89 for the fourth quarter and $3.36 for the year -- Book-to-Bill Ratio: 0.9 for the fourth quarter and 1.5 for the year -- Cash Flow from Operations: $247 million for the year (2.1 times Net Income) -- Raises quarterly cash dividend from $0.32 by 19% to $0.38 per share

HERNDON, Va., Feb. 17, 2021 (GLOBE NEWSWIRE) -- ManTech International Corporation (Nasdaq: MANT), a leading provider of innovative technologies and solutions for mission-critical national security programs, today announced financial results for the fourth quarter and full fiscal year 2020, which ended December31, 2020.

"Our fourth and fiscal year 2020 results exceeded expectations and demonstrate the continued resiliency and strength of our business. Despite our nation and our communities facing unprecedented challenges in 2020, ManTech's women and men kept focus on the success of our customers and their critical missions. As we look forward, ManTech's exceptional people, innovative and differentiated solutions, financial strength combined with our strategic focus position us well to drive long-term value creation for all of our stakeholders: customers, employees and shareholders," said ManTech Chairman, Chief Executive Officer and President Kevin M. Phillips.

Summary Operating Results

Three Months Ended Year Ended December 31, December 31,(In MillionsExcept Per Share 2020 2019 2020 2019 Amounts)Revenue $ 638.8 $ 604.4 $ 2,518.4 $ 2,222.6 Operating Income $ 40.2 $ 38.1 $ 158.0 $ 138.3 Net Income $ 32.2 $ 40.6 $ 120.5 $ 113.9 Diluted EPS $ 0.79 $ 1.00 $ 2.97 $ 2.83 Non-GAAP Financial Measures*EBITDA $ 59.2 $ 54.5 $ 228.3 $ 194.2 EBITDA Margin 9.3 % 9.0 % 9.1 % 8.7 %Adjusted Net $ 36.3 $ 32.9 $ 136.5 $ 117.0 IncomeAdjusted Diluted $ 0.89 $ 0.81 $ 3.36 $ 2.91 EPS*Information about ManTech's use of non-GAAP financial measures, including areconciliation of the non-GAAP financial measures to the most comparablefinancial measures calculated and presented in accordance with GAAP, isprovided under "Non-GAAP Financial Measures."

As a result of increased demand for our services and solutions, revenue was $639 million for the quarter and $2.52 billion for the year, up 6% and 13% over the comparable 2019 periods, respectively. In both the quarter and for the full year, revenue growth was driven by a combination of continued organic expansion from recent contract awards and acquisitions.

Operating income was $40.2 million for the quarter and $158.0 million for the year, up 6% and 14% over the comparable 2019 periods, respectively.

EBITDA was $59.2 million for the quarter and $228.3 million for the year, up 9% and 18% over the comparable 2019 periods, respectively. EBITDA margin was 9.3% for the quarter and 9.1% for the year, both showing improvement compared to respective 2019 periods.

Net income was $32.2 million for the quarter and $120.5 million for the year, down 21% and up 6% over the comparable 2019 periods, respectively. Diluted earnings per share ("EPS") was $0.79 for the quarter and $2.97 for the year, down 21% and up 5% over the comparable 2019 periods, respectively. Net income and EPS comparisons for the quarter and the year were hampered by a prior year metric that significantly benefited from the reassessment of research and development tax credits for 2019 and prior years.

Adjusted net income was $36.3 million for the quarter and $136.5 million for the year, up 10% and 17% over the comparable 2019 periods, respectively. Adjusted diluted EPS was $0.89 for the quarter and $3.36 for the year, up 10% and 15% over the comparable 2019 periods, respectively.

Cash Management and Capital Deployment

For the year, cash flow from operations totaled $247 million. Days sales outstanding (DSO) were 56 days, an improvement of 3 days compared to the fourth quarter of 2019.

During the quarter, the Company paid $12.9 million, or $0.32 per share, as part of its regular cash dividend program to its common stockholders of record as of December4, 2020. As of December31, 2020, the Company had $41.2 million in cash and cash equivalents and $15 million of outstanding borrowings on its $500 million revolving-credit facility, which provides the Company with ample financial capacity to pursue acquisitions and issue dividends, while maintaining a strong balance sheet.

The Company has increased the amount of its quarterly cash dividend from $0.32 to $0.38 per share.

The Board of Directors has declared a quarterly dividend of $0.38 to be paid on March26, 2021 to all common stockholders of record as of March12, 2021, as part of its regular quarterly cash dividend program. Based on the average of recent trading prices the new annual yield is approximately 1.7%. Future declarations of dividends and their record and payment dates are subject to the final determination of ManTech's Board of Directors.

Contract Awards

Contract awards (bookings) totaled $605 million in the quarter, representing a book-to-bill ratio of 0.9. For the year, contract awards totaled $3.7 billion for a book-to-bill ratio of 1.5. In 2020, approximately 45% of the awards were for new business. Book-to-bill ratios for both the quarter and the year reflect a healthy awards environment and ManTech's strong market positioning. Proposal activity remains steady and the Company expects contract awards to continue at a reasonable pace in 2021.

The Company's backlog of business at the end of the year was a record $10.2 billion, including $1.2 billion of funded backlog.

Forward Guidance

The Company expects to achieve revenue, adjusted net income and adjusted diluted earnings per share in 2021 as specified in the table below.

Measure Fiscal 2021 GuidanceRevenue (billion) $2.65 - $2.75Adjusted Net Income* (million) $142.5 - $147.4Adjusted Diluted EPS* $3.48 - $3.60*Information about ManTech's use of non-GAAP financial measures is providedunder "Non-GAAP Financial Measures"

Adjusted net income and adjusted diluted EPS exclude amortization of acquired intangibles and the related tax impact. The Company does not provide a reconciliation of forward-looking adjusted net income and adjusted diluted EPS, due to inherent difficulty in forecasting and quantifying these non-GAAP exclusions that are necessary for such reconciliation without unreasonable efforts. Material changes to any one of these items could have significant effect on future GAAP results.

ManTech Chief Financial Officer Judith L. Bjornaas said, Our operational agility and our steadfast commitment to the mission continues to result in solid financial outcomes. In 2021, we look to carry forward the strength and momentum of the business in our continuous drive for long-term value creation."

Conference Call

ManTech executive management will hold a conference call on February17, 2021, at 5 p.m. Eastern to discuss the financial results and outlook and answer questions. Analysts may participate on the conference call by dialing (877) 638-9567 (domestic) or (253) 237-1032 (international) and entering passcode 8986287. The conference call will be webcast simultaneously to the public through a link on the Investor Relations section of the ManTech website ( http://investor.mantech.com). A replay of the conference call will be available on the ManTech website approximately 2 hours after the conclusion of the conference call.

About ManTech International Corporation

ManTechprovides mission-focused technology solutions and services for U.S. defense, intelligence community and federal civilian agencies.In business more than 50 years, we excel in full-spectrum cyber, data collection & analytics, enterprise IT, systems and software engineering solutions that support national and homeland security. Additional information aboutManTechcan be found at www.mantech.com.

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, expect, intend, anticipate, believe, or estimate, or the negative of these terms or words of similar import, are intended to identify forward-looking statements.

These forward-looking statements are inherently subject to risks and uncertainties, and actual results and outcomes may differ materially from the results and outcomes we anticipate. Factors that could cause actual results to differ materially from the results we anticipate include, but are not limited to, the following: failure to maintain our relationship with the U.S. government, or the failure to compete effectively for new contract awards or to retain existing U.S. government contracts; disruptions to our business resulting from the COVID-19 pandemic or other similar global health epidemics, pandemics and/or other disease outbreaks; adverse changes in U.S. government spending for programs we support, whether due to changing mission priorities, socio-economic policies or federal budget constraints generally; inability to recruit and retain a sufficient number of employees with specialized skill sets or necessary security clearances who are in great demand and limited supply; failure to compete effectively for awards procured through the competitive bidding process, and the adverse impact of delays resulting from our competitors' protest of new contracts that are awarded to us; disruptions of our business or damage to our reputation resulting from cyber attacks and other security threats; failure to obtain option awards, task orders or funding under contracts; the government renegotiating, modifying or terminating our contracts; failure to comply with, or adverse change in, complex U.S. government laws and procurement regulations; adverse results in U.S. government audits or other investigations of our government contracts; failure to successfully integrate acquired companies or businesses into our operations or to realize any accretive or synergistic effects from such acquisitions; failure to mitigate risk associated with conducting business internationally; and adverse change in business conditions that may cause our investments in recorded goodwill to become impaired. These and other risk factors are more fully discussed in the section entitled "Risk Factors" in ManTech's Annual Report on Form 10-K previously filed with the Securities and Exchange Commission on Feb. 21, 2020, Item 1A of Part II of our Quarterly Reports on Form 10-Q, and, from time to time, in ManTech's other filings with the Securities and Exchange Commission.

The forward-looking statements included herein are only made as of the date of this press 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.



MANTECH INTERNATIONAL CORPORATIONCONSOLIDATED BALANCE SHEETS(In Thousands Except Share and Per Share Amounts)

(unaudited) December 31, 2020 2019ASSETS Cash and cash equivalents $ 41,193 $ 8,854 Receivables?net 400,621 398,976 Prepaid expenses 26,243 20,030 Taxes receivable?current 21,968 21,996 Other current assets 6,354 4,878 Total Current Assets 496,379 454,734 Goodwill 1,237,894 1,191,259 Other intangible assets?net 202,231 196,778 Property and equipment?net 121,296 85,631 Operating lease right of use assets 94,825 117,728 Employee supplemental savings plan assets 37,848 36,777 Investments 11,549 11,550 Other assets 11,642 13,457 TOTAL ASSETS $ 2,213,664 $ 2,107,914 LIABILITIES AND STOCKHOLDERS' EQUITY LIABILITIES Accounts payable $ 142,360 $ 138,029 Accrued salaries and related expenses 123,953 97,298 Contract liabilities 37,218 27,620 Operating lease obligations?current 30,105 29,047 Accrued expenses and other current liabilities 15,177 7,987 Total Current Liabilities 348,813 299,981 Deferred income taxes 141,638 131,782 Operating lease obligations?long term 80,242 103,148 Accrued retirement 36,310 35,552 Long term debt 15,000 36,500 Other long-term liabilities 12,249 10,309 TOTAL LIABILITIES 634,252 617,272 COMMITMENTS AND CONTINGENCIES STOCKHOLDERS' EQUITY Common stock, Class A?$0.01 par value;150,000,000 shares authorized; 27,538,474 and27,235,860 shares issued at December 31, 2020 275 272 and 2019; 27,294,361 and 26,991,747 sharesoutstanding at December 31, 2020 and 2019Common stock, Class B?$0.01 par value;50,000,000 shares authorized; 13,176,695 and 132 132 13,187,195 shares issued and outstanding atDecember 31, 2020 and 2019Additional paid-in capital 545,717 525,851 Treasury stock, 244,113 and 244,113 shares at (9,158 ) (9,158 )cost at December 31, 2020 and 2019Retained earnings 1,042,676 973,767 Accumulated other comprehensive loss (230 ) (222 )TOTAL STOCKHOLDERS' EQUITY 1,579,412 1,490,642 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 2,213,664 $ 2,107,914

MANTECH INTERNATIONAL CORPORATIONCONSOLIDATED STATEMENTS OF INCOME(In Thousands Except Per Share Amounts)

(unaudited) (unaudited) Three months ended Year Ended December 31, December 31, 2020 2019 2020 2019REVENUE $ 638,784 $ 604,413 $ 2,518,384 $ 2,222,559 Cost of services 541,027 515,198 2,138,791 1,893,461 General andadministrative 57,533 51,121 221,544 190,773 expensesOPERATING INCOME 40,224 38,094 158,049 138,325 Interest expense (303 ) (506 ) (1,900 ) (2,594 )Interest income 20 49 247 450 Other income 52 (33 ) 1 (83 )(expense), netINCOME FROMOPERATIONS BEFOREINCOME 39,993 37,604 156,397 136,098 TAXES AND EQUITYMETHOD INVESTMENTS(Provision) benefit (7,828 ) 3,017 (35,865 ) (22,212 )for income taxesEquity in earnings(losses) of (1 ) ? (2 ) 4 unconsolidatedsubsidiariesNET INCOME $ 32,164 $ 40,621 $ 120,530 $ 113,890 BASIC EARNINGS PER SHARE:Class A common stock $ 0.80 $ 1.01 $ 2.99 $ 2.85 Class B common stock $ 0.80 $ 1.01 $ 2.99 $ 2.85 DILUTED EARNINGS PER SHARE:Class A common stock $ 0.79 $ 1.00 $ 2.97 $ 2.83 Class B common stock $ 0.79 $ 1.00 $ 2.97 $ 2.83

MANTECH INTERNATIONAL CORPORATIONCONSOLIDATED STATEMENTS OF CASH FLOWS(In Thousands)

(unaudited) Year ended December 31, 2020 2019CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES: Net income $ 120,530 $ 113,890 Adjustments to reconcile net income to net cash flows from operating activities:Depreciation and amortization 70,300 55,879 Noncash lease expense 28,169 27,619 Deferred income taxes 9,856 15,739 Stock-based compensation expense 11,366 7,493 Bad debt expense 5,244 3,000 Contract loss reserve (372 ) (1,481 )(Gain) loss on sale and retirement of property and (172 ) 171 equipmentEquity in (earnings) losses of unconsolidated 2 (4 )subsidiariesChange in assets and liabilities?net of effects from acquired businesses:Receivables-net 1,298 24,660 Prepaid expenses (5,963 ) 419 Taxes receivable?current 28 (21,996 )Other current assets (987 ) 4,060 Employee supplemental savings plan asset (5,208 ) (6,297 )Other long-term assets (1,827 ) 97 Accounts payable (303 ) 14,707 Accrued salaries and related expenses 24,666 2,796 Contract liabilities 9,149 (589 )Accrued expenses and other current liabilities 9,248 (3,857 )Operating lease obligations (31,055 ) (28,520 )Accrued retirement 758 4,553 Other long-term liabilities 2,010 9,380 Other 507 (313 )Net cash flow from operating activities 247,244 221,406 CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES: Acquisition of businesses-net of cash acquired (78,815 ) (152,851 )Purchases of property and equipment (71,129 ) (54,795 )Investment in capitalized software for internal use (5,193 ) (3,677 )Proceeds from corporate owned life insurance 4,137 21 Proceeds from sale of property and equipment 869 ? Deferred contract costs ? (3,878 )Proceeds from equity method investment ? 283 Net cash used in investing activities (150,131 ) (214,897 )CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES: Borrowings under revolving credit facility 302,500 624,000 Repayments under revolving credit facility (324,000 ) (595,000 )Dividends paid (51,618 ) (43,205 )Proceeds from exercise of stock options 10,249 12,895 Payment consideration to tax authority on employee's (1,746 ) (1,503 )behalfPrincipal paid on financing leases (159 ) (136 )Net cash used in financing activities (64,774 ) (2,949 )NET CHANGE IN CASH AND CASH EQUIVALENTS 32,339 3,560 CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 8,854 5,294 CASH AND CASH EQUIVALENTS, END OF PERIOD $ 41,193 $ 8,854

Non-GAAP Financial Measures (Unaudited)

To supplement the review of ManTech's consolidated financial statements presented on a GAAP basis, the Company has provided non-GAAP calculations of certain financial measures. ManTech uses and refers to EBITDA, EBITDA margin, adjusted net income and adjusted EPS, all of which are non-GAAP financial measures. These non-GAAP financial measures have limitations as an analytical tool and should not be considered in isolation or as a substitute for the comparable GAAP measures.

ManTechs management believes that these non-GAAP financial measures provide additional useful information regarding the Companys operational and financial results. These non-GAAP financial measures eliminate the effect of non-cash items such as depreciation of tangible assets and amortization of intangible assets primarily recognized in business combinations as well as the effect of discrete tax items which we do not believe are indicative of our core operating performance. These non-GAAP financial measures are considered important and frequently utilized by investors and financial analysts covering ManTechs industry. The Companys computation of its non-GAAP financial measures may not be comparable to similarly titled measures reported by other companies, thus limiting their use for comparability.

The following tables present selected financial data, including the reconciliation of the non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with GAAP.

EBITDA is calculated by excluding depreciation and amortization expense, interest expense, interest income, other expense, income taxes and equity in losses of unconsolidated subsidiaries from net income.

EBITDA margin is calculated by dividing EBITDA by revenue.

Three months ended Year Ended December 31, December 31,(In Thousands) 2020 2019 2020 2019NET INCOME $ 32,164 $ 40,621 $ 120,530 $ 113,890 Equity in losses(earnings) of 1 ? 2 (4 )unconsolidatedsubsidiariesProvision (benefit) for 7,828 (3,017 ) 35,865 22,212 income taxesINCOME FROM OPERATIONSBEFORE INCOME $ 39,993 $ 37,604 $ 156,397 $ 136,098 TAXES AND EQUITY METHODINVESTMENTSOther expense (income), (52 ) 33 (1 ) 83 netInterest income (20 ) (49 ) (247 ) (450 )Interest expense 303 506 1,900 2,594 Depreciation and 19,019 16,409 70,300 55,879 amortizationEBITDA $ 59,243 $ 54,503 $ 228,349 $ 194,204 EBITDA Margin 9.3 % 9.0 % 9.1 % 8.7 %

Adjusted net income is calculated by excluding the following items and the related tax impacts from net income: (i) amortization of acquired intangible assets and (ii) discrete tax items.

Adjusted diluted EPS is calculated by dividing adjusted net income by the diluted weighted average number of shares outstanding.

Three months ended Year Ended December 31, December 31,(In Thousands Except 2020 2019 2020 2019Per Share Amounts)NET INCOME $ 32,164 $ 40,621 $ 120,530 $ 113,890 Amortization of 5,093 5,495 20,757 20,139 acquired intangiblesResearch anddevelopment tax ? (11,941 ) ? (11,941 )creditAdjustments for tax (998 ) (1,302 ) (4,753 ) (5,055 )effectADJUSTED NET INCOME $ 36,259 $ 32,873 $ 136,534 $ 117,033 ADJUSTED DILUTED EPS Class A common stock $ 0.89 $ 0.81 $ 3.36 $ 2.91 Class B common stock $ 0.89 $ 0.81 $ 3.36 $ 2.91 Note: Figures may not add due to rounding.

Investor Relations MediaStephen Vather Sheila BlackwellVP, M&A and Investor Relations VP, Enterprise Marketing & Communications(703) 218-6093 (301) 717-7345Stephen.Vather@ManTech.com Sheila.Blackwell@ManTech.com