Investor Presentation. May 2018

Transcription

1 Investor Presentation May 2018

2 Safe Harbor Statement This presentation contains forward-looking statements, within the definition of the Private Securities Litigation Reform Act of These statements are subject to numerous assumptions, risks, and uncertainties, many of which are outside of our control, and include the risks and uncertainties that are identified in the Risk Factor section in our Annual Report on Form 10-K (filed with the SEC on February 23, 2018), and in other periodic and current reports we file with the SEC. While the forward-looking statements herein reflect our current expectations, no assurance can be given that the results or events described in such statements will be achieved, and our actual results may differ materially from the results we anticipate. Our guidance for fiscal 2018, and the other statements regarding our financial outlook are expressly made as of May 2, 2018 (the date of our first quarter 2018 earnings press release and conference call). We undertake no obligation to revise or update any of these forward-looking statements (whether as a result of new information, subsequent events or circumstances, changes in expectations or otherwise) that may arise after the date of this presentation. 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. These measures include adjusted net income and adjusted diluted earnings per share. Each of these calculations excludes the impact of the re-measurement of deferred tax assets and liabilities and therefore, is considered a non-gaap financial measure. 2

3 Company Highlights A Mission-Focused National Security Company MANT Founded in 1968 HQ: Herndon, VA Public Since 2002 ~$1.9 Billion Cyber Secure IT Data Analytics Software & Systems Engineering Cleared 69% 47% Veterans 2018E Revenue Key Capabilities ~7,800 Employees 3

4 Experienced Team George J. Pedersen Co-founder, Executive Chairman and Chairman of the Board Served as director of ManTech since 1968, appointed Chairman in 1979, served as CEO from 1995 to 2017 and elevated to Executive Chairman in January 2018 Unparalleled knowledge of the company and its operations with 50 years of experience Kevin M. Phillips President & Chief Executive Officer, Director Appointed President and CEO effective January 2018 Previously served as President and COO since 2016 and EVP and CFO from 2005 to 2016, prior to those roles served as corporate vice president and assistant to the Chairman and Chief of Staff Judith L. Bjornaas Executive Vice President & Chief Financial Officer Named as EVP and CFO in 2016, previously served as Deputy CFO since 2010 Prior to ManTech, served as CFO at NCI Daniel J. Keefe President of Mission Solutions and Services Group (MSS) Named President and COO of MSS in 2013, joined ManTech as EVP and group general manager for MSS in 2011 Previously held senior management roles at L-3 Communications Richard J. Wagner President of Mission, Cyber & Intelligence Solutions Group (MCIS) Named President of MCIS effective January 2018 Previously served as COO of MCIS and prior to, held senior management roles at TASC (Engility) 4

5 Agile Business Model Mission-First and Customer-Focused Model for Long-Term Shareholder Value Steadfast Focus on Customers Mission Sustainable Organic Revenue Growth Win New Business and Recompetes Recruit and Retain Differentiated Talent M&A Prioritized for Capital Deployment Enhance Solutions and Services Offering Exceptional Program Execution Optimize Long-Term Shareholder Value 5

6 ($ in Billions) ($ in Billions) Budget Environment U.S. government remains the world s largest buyer of products and services Improved budget environment with continued growth potential Market opportunities are expanding and customers are procuring at a faster pace to meet mission objectives Department of Defense Budget Intelligence Budget $750 $650 $580 $606 $655 $65 $686 $69 $701 $20 $714 $20 $100 $80 $60 $67 $17 $71 $73 $18 $18 $78 $21 $81 $21 $550 $59 $83 $589 $617 $681 $694 $40 $20 $50 $53 $55 $58 $60 $521 $523 $ Base OCO & Other $ NIP Budget MIP Budget Request 2019 Request Source: 2019 DoD Budget Request; Consolidated Appropriations Act, 2018 Source: Director of National Intelligence 6

7 Current Market Dynamics and Trends Improved market dynamics and positive outlook despite some challenges Focus on Readiness and Speed BCA Caps Remain Protest Environment Scarce Talent Increased Solutioning Improving Award Pace Book-to-Bill 1.0x+ Longer Contract Durations Contract Consolidation 7

8 Differentiated Solutions and Services Cyber Secure Enterprise IT Data, Analysis & Mission IT Software & Systems Engineering Program Protection Multi- Disciplined Intelligence Solutions & Services C4ISR Test & Evaluation Differentiators in the market Training Supply Chain Management & Logistics Management Consulting 8

9 Aligned with Customer Priorities For 50 years, ManTech has been at the heart of our customers missions, supporting them anytime and anywhere Full Spectrum Cyber IT and Systems Modernization Data and Predictive Analytics Operational Readiness 9

10 Enduring Customer Relationships Intelligence Defense Federal Civilian 10

11 Robust Contract Awards Classified $184 Million IT and Engineering Services $82 Million C4I Integration and Engineering Services $133 Million Intelligence Analysis Support $847 Million Vehicle Engineering, Maintenance & Operations $817 Million Technical Solutions and Security Support $450 Million Managed IT Services $400 Million Cyber Network Operations and Other Intelligence Solutions and Services $124 Million Full-Spectrum Security, IT and Business Management Support $229 Million Business Intelligence Support Services $80 Million Warfare Analysis, Engineering and Technical Support Services $220 Million Enterprise IT Infrastructure Support $152 Million Worldwide Field Software Support 11

12 Business Development Success Qualified Pipeline of $20B+ High volume of proposal activity 10 Regular pace of award decisions Proposals in Process Industry-leading LTM book-to-bill of 2.2x ManTech is taking market share and providing innovation Proposals Outstanding $6B Improved Win Rates Continued BD Investments LTM Bookings of $4B (45% New Work) 12

13 ($ in Billions) ($ in Millions) Revenue and Contract Statistics Revenue by Role Sub 11% Revenue by Contract Type Fixed Price 25% Time & Materials 10% Cost Plus 65% Prime 89% Backlog Strong Bookings $ x $8.0 $6.0 $5.1 $7.1 $ x 1.7x 1.4x 2.4x $4,202 $ x $ x $2,299 $2.0 $430 $0.0 $1.2 $1.4 $1.2 Q1 '17 Q4 '17 Q1 '18 Funded 0.0x Q1 '17 Q1 '

14 ($ in Millions) Improved Financial Performance Commentary Revenue Strong revenue growth driven by recent contract awards $2,000 $1,500 $1,717 $1,925 Stable EBIT margins reflecting investments in the business Increasing EPS $1,000 $500 $418 $473 $0 Q1 '17 Q1 ' E EBIT Margin Adjusted Diluted EPS (1) 6.0% 5.8% 5.6% 5.7% 5.8% $2.25 $2.04 $1.62 (1) 4.0% $ % $0.75 $0.39 $ % $0.00 Q1 '17 Q1 ' E Q1 '17 Q1 ' E (1) Adjusted diluted EPS is a non-gaap financial measure; see appendix for definition and reconciliation

15 Outlook and Guidance Metric 2017 Actuals 2018 Guidance (GAAP) GAAP Adjusted Low High E Growth Revenue $1.72B - $1.90B $1.95B 11% to 14% EBIT Margin 5.7% - 5.7% 5.8% Up to 10 bps Net Income $114.1M $63.5M $80.1M $83.3M 26% to 31% (1) (1) Diluted EPS $2.91 $1.62 $2.00 $ % to 28% (2) (2) Operating Cash Flow Multiple 1.3x - 1.2x 1.5x Effective Tax Rate (17.3%) 34.7% Diluted WASO 39.2M - (1) 25.1% 40.0M (1) Adjusted Net Income, adjusted diluted EPS and adjusted effective tax rate are non-gaap financial measures; see appendix for definitions and reconciliations (2) Growth calculated from adjusted 2017 figures 15

16 Investment Highlights Growth Oriented Delivering sustainable revenue and earnings growth Growing backlog, consistently strong bookings and robust opportunity pipeline Mission and Customer Focused 50 years of supporting national and homeland security customers and missions Trusted partner ensuring mission success Differentiated Capabilities Agile business model with a focus on providing innovative technologies and solutions Leading provider of full-spectrum cyber since 2002 Exceptional Talent Experienced management team ~7,800 highly-skilled and cleared employees 16

17 Contact Information Investor Website: investor.mantech.com For investor inquiries, contact: Judy Bjornaas Executive Vice President and Chief Financial Officer (703) Stephen Vather Executive Director, Corporate Development (703)

18 Non-GAAP Financial Measures Reconciliation (unaudited) Year ended December 31, (In Thousands Except Per Share Amounts) INCOME FROM OPERATIONS BEFORE INCOME TAXES AND EQUITY METHOD INVES TMENTS $97,242 $90,070 Benefit (provision) for income taxes 16,859 (33,786) Effective income tax rate (17.3%) 37.5% Non-GAAP adjustment for 2017 Tax Act (50,605) 0 Adjusted non-gaap provision for income taxes (33,746) (33,786) Adjusted non-gaap effective income tax rate 34.7% 37.5% Equity in gains (losses) of unconsolidated subsidiaries ADJUS TED NON-GAAP NET INCOME $63,536 $56,391 ADJUSTED NON-GAAP BASIC EARNINGS PER SHARE: Class A common stock $1.63 $1.48 Class B common stock $1.63 $1.48 ADJUS TED NON-GAAP DILUTED EARNINGS PER S HARE: Class A common stock $1.62 $1.47 Class B common stock $1.62 $1.47 Note: Non-GAAP adjustments were only made to 2017 results; non-gaap adjustments were not made to 2016 results 18