ManTech International Corporation (NASDAQ:MANT) ( www.mantech.com), a leading provider of innovative technologies and solutions for mission-critical national security programs, today announced financial results for the fourth quarter and fiscal year 2012, which ended Dec. 31, 2012.
“In fiscal year 2012, ManTech demonstrated its market-leading position with a record $4.8 billion in bookings, producing record year-end levels of total and funded backlog,” said ManTech Chairman and Chief Executive Officer George J. Pedersen. “We also entered new markets of healthcare and commercial cyber that will drive our next phase of growth. Our intelligence and cyber business demonstrated strong growth. We experienced reduced demand for subcontractors and materials across portions of our defense business. Given the appropriations impasse, we preserved cash in 2012, leaving us well positioned for strategic actions in 2013. With our strong balance sheet and future cash flows, we expect to be more acquisitive this year as national priorities clarify and we continue to build out our recent investment areas.”
Summary Operating Results
Revenues for the quarter were $621.8 million, compared to $681.8 million in the fourth quarter of fiscal year 2011. Revenues for the year were $2.58 billion, compared to $2.87 billion in fiscal year 2011. Revenues in strategic investment areas, including intelligence, cyber security and healthcare, increased in the quarter and the year compared to the comparable period for 2011. Significant deliveries of cloud computing infrastructure systems that were expected in the fourth quarter were moved to the first quarter of 2013. Quarterly and annual revenues declined as a result of fewer other direct costs (ODCs) on the S-3 contract with the U.S. Army Communications and Electronics Command (CECOM). For the year, revenues on the contract were $610 million, compared to $928 million in fiscal year 2011.Operating income was $37.7 million for the quarter and $171.0 million for the full year. Operating margin of 6.1 percent for the quarter reflected continued investment in new market areas as well as transition costs on the new Mine Resistant Ambush Protected (MRAP) Contractor Logistics Sustainment and Support (CLSS) Services contract. Net income was $20.2 million for the quarter and $95.0 million for the full year. Diluted earnings per share were $0.55 for the quarter and $2.57 for the full year. Quarterly and annual profits were impacted by the migration of time-and-material contracts to cost-plus contracts and increased price competition on in-theater mission support.