ManTech Announces Financial Results for Third Quarter of 2012

  ManTech Announces Financial Results for Third Quarter of 2012

  *Revenue: $645.0 million
  *Diluted EPS: $0.66
  *Cash Flow from Operations: $97 million
  *Bookings: $1.2 billion in contract awards for a book-to-bill ratio of 1.9
  *Dividends: $0.21 per share paid in September; $0.21 per share authorized
    for December

Business Wire

FAIRFAX, Va. -- November 01, 2012

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 third
quarter of 2012, which ended Sept. 30, 2012.

“The third quarter of fiscal year 2012 marked a continuation of strong
bookings growth for ManTech,” said ManTech Chairman and Chief Executive
Officer George J. Pedersen. “After experiencing industry-wide delays in
contract awards and funding for much of the year, we have seen customers move
forward with procurements in the priority areas we serve. With bookings of
$1.2 billion in the third quarter and $5.5 billion over the last 12 months, we
now have record backlog of $7.0 billion. The third quarter was also strong for
cash collections. After generating $97 million in operating cash flow, we had
a record cash balance of $209 million. These superb results provide us a
strong foundation for growth in priority government programs and position us
well for the long-term.”

Summary Operating Results

Revenues for the quarter were $645.0 million, up from $638.9 million in the
second quarter of fiscal year 2012. Revenues in strategic investment areas,
including intelligence, cyber security and healthcare, increased
year-over-year. Revenues for the third quarter of 2011 were $734.6 million.

Operating income for the quarter was $42.8 million, compared to $58.5 million
in the third quarter of 2011. Operating margin of 6.6 percent reflected
greater investment in new market growth areas. Net income for the quarter was
$24.4 million, compared to $34.5 million in the third quarter of 2011. Diluted
earnings per share for the quarter were $0.66, compared to $0.94 in the third
quarter of 2011.

Cash Management and Capital Deployment

Cash flow from operations for the quarter was $97 million or 3.9 times net
income. Days sales outstanding (DSO) were 66 days, a seven-day improvement
compared to the second quarter of 2012. As of Sept. 30, 2012, ManTech had $209
million in cash and cash equivalents—the highest quarter-ending balance in its
history. 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.

During the quarter, the company paid $7.8 million, or $0.21 per share, to its
common stockholders of record as of Sept. 7, 2012. The Board of Directors has
declared that the company will pay a cash dividend of $0.21 per share on Dec.
21, 2012 to all common stockholders of record as of Dec. 7, 2012 as part of
its regular quarterly cash dividend program. Future declarations of dividends
and their record and payment dates are subject to the final determination of
ManTech's Board of Directors.

Contract Awards

ManTech achieved strong business development success across a wide array of
customers, including both standard awards and
indefinite-delivery/indefinite-quantity (IDIQ) contracts. Contract awards
(bookings) totaled $1.2 billion in the third quarter, representing a
book-to-bill ratio of 1.9. Nearly one-third of the awards were for new
business. Large awards contributing to the quarterly bookings include:

  *Strategic Services Sourcing (S3) Command, Control, Communications,
    Computers, Intelligence, Surveillance and Reconnaissance (C4ISR) Support.
    ManTech was awarded ten prime S3 task orders totaling $710 million over
    two years to provide C4ISR engineering, sustainment, logistics, and
    business operations support services to the U.S. Army
    Communications-Electronics Command (CECOM). Under these task orders
    ManTech will support mission critical systems, including the Distributed
    Common Ground System – Army (DCGS-A), Army Battle Command Systems (ABCS),
    Base Expeditionary Targeting and Surveillance Systems – Combined
    (BETSS-C), Guardrail, and Elevated Sensor programs. Three task orders
    totaling $168 million represent new work for ManTech.
  *Joint Interoperability Test Command (JITC) Support Services. Under an $871
    million, five-year, multiple-award IDIQ contract, ManTech will support
    test and evaluation (T&E) missions at the Defense Information Systems
    Agency (DISA) JITC. Extending its 20-year legacy of support to JITC,
    ManTech will provide testing, scientific, engineering, logistic,
    administrative and ancillary support to DISA T&E missions, including
    operation and maintenance of test tools, labs, networks, infrastructure
    and administrative support cells. Based on historical levels of support
    under predecessor contracts, the company allocated $175 million to
    bookings and backlog.
  *U.S. Marine Corps Cougar Support. The U.S. Marine Corps Systems Command
    awarded ManTech a $30 million, 28-month contract to provide maintenance
    and on-the-job training for the Cougar family of mine resistant ambush
    protected (MRAP) vehicles. ManTech will conduct initial inspections and
    perform vehicle repairs, sustainment maintenance, retrofits and
    modifications to all Cougar vehicles in Afghanistan and provide
    instruction in all MRAP courses at Camp Lejeune, Camp Johnson, and Red
    River Army Depot.
  *Armed Forces Health Longitudinal Technology Application-Theater (AHLTA-T)
    Support. Under a $21 million, three-year contract for the U.S. Army
    Medical Research Acquisition Activity (USAMRAA), ManTech will provide new
    development and sustainment support for AHLTA-T to include code
    optimization, database conversion, capability and new feature additions,
    mobile computing enhancements and code upgrades. AHLTA-T is a clinical
    documentation and management system that serves as the military’s
    electronic health record (EHR) for every soldier, sailor, airman, marine,
    and beneficiary entitled to DoD health care in theater of operations.

In addition, the company won several multiple-award IDIQ contracts that are
not included in bookings, several of which provide significant growth
opportunities for ManTech:

  *Software Engineering Center (SEC) Support. Under a $7 billion, five-year
    contract, ManTech will provide comprehensive software and systems
    engineering services to the SEC, a component of CECOM. ManTech’s Agile
    software development processes, CMMI Maturity Level 3 development rating,
    rapid prototyping capability and cyber and information assurance toolsets
    will prove essential to assist the SEC in meeting their mission
  *Enhanced Army Global Logistics Enterprise (EAGLE) Basic Ordering Agreement
    (BOA). Fluor ManTech Logistics Services, LLC (FMLS), a joint business
    enterprise of ManTech and Fluor Corporation, was awarded a BOA under the
    EAGLE program by the U.S. Army Sustainment Command. For the next five
    years FMLS will compete to prepare forces for deployment, sustainment and
    redeployment and rebuild readiness for future deployments and
    contingencies. Services can be provided worldwide to the Department of the
    Army, coalition partners, joint bases, foreign governments and other
    Department of Defense agencies.
  *Security Engineering Support Services in the National Capital Region
    (NCR). Under a $225 million, five-year contract with the Space and Naval
    Warfare Systems Center Atlantic, ManTech will perform systems engineering,
    analysis, development, acquisition, integration, installation, software
    development and maintenance, testing and integrated logistical support for
    anti-terrorism/force protection systems for high-value Navy and other
    government activities in the NCR.

During the third quarter, the Government Accountability Office denied the
protest of award of the Contractor Logistics Sustainment and Support (CLSS)
Services contract to ManTech. The $2.85 billion award was reflected in second
quarter bookings but only the initial funding increment of $248 million was
recorded in second quarter backlog. With the large volume of third quarter
awards and the full amount of CLSS in backlog, the company’s backlog of
business at the end of third quarter was a record $7.0 billion, of which $1.6
billion was funded. Compared to the second quarter of fiscal year 2012, total
backlog increased 73 percent and funded backlog increased 15 percent.

Forward Guidance

The company is updating its expected financial performance for 2012 based on
year-to-date results and a revised forward outlook. The company now expects to
achieve revenue, net income and diluted earnings per share as specified in the
table below.

Measure                     Fiscal 2012 Guidance
Revenue (million)           $2,650
Net Income (million)        $101
Diluted Earnings Per Share  $2.72

ManTech Chief Financial Officer Kevin M. Phillips said, “We are excited about
the exceptional awards activity in 2012 and expect to build on this quarter’s
momentum and grow headcount and revenue significantly in the fourth quarter.
Our business development success in the quarter underscores our ability to
offer differentiated, competitive solutions. Profitability from our
investments in commercial cyber and healthcare IT, as well as expansions of
existing priority programs such as AMBIANCE, is lower than expected but will
improve as these businesses execute their new awards. Our strong balance sheet
and our positioning in key markets with important customers will allow us to
return cash to shareholders and invest in growth regardless of sequestration.”

Conference Call

ManTech executive management will hold a conference call on Nov. 1, 2012, 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
31029991. The conference call will be webcast simultaneously to the public
through a link on the Investor Relations section of the ManTech website

A replay of the conference call will be available by telephone approximately
two hours after the conclusion of the call through Nov. 7, 2012, by dialing
855-859-2056 (domestic) or 404-537-3406 (international) and entering passcode
31029991. In addition, a replay of the webcast will be available on the
ManTech website approximately two hours after the conclusion of the conference

About ManTech International Corporation

ManTech is a leading provider of innovative technologies and solutions for
mission-critical national security programs for the intelligence community;
the Department of Defense, including its health organizations; the departments
of State, Homeland Security, Energy and Justice, including the Federal Bureau
of Investigation (FBI); the space community; and other U.S. federal government
customers. We provide support to critical national security programs for
approximately 60 federal agencies through approximately 1,000 current
contracts. ManTech's expertise includes command, control, communications,
computers, intelligence, surveillance and reconnaissance (C4ISR) lifecycle
support; cyber security; global logistics support;
intelligence/counter-intelligence support; information technology (IT)
modernization and sustainment; systems engineering; test and evaluation; and
health IT. ManTech supports major national missions, such as military
readiness, terrorist threat detection, information security and border
protection. Additional information on ManTech can be found at

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: adverse changes in U.S. government spending levels for
programs we support due to budgetary constraints affecting federal government
spending, changing mission priorities or other factors; adverse changes in our
mix of contract types; failure to retain existing U.S. government contracts,
win new contracts or win recompetes; failure to obtain option awards, task
orders or funding under contracts; risk of contract renegotiation,
performance, modification or termination; competition; failure to maintain
strong relationships with other contractors; failure to successfully integrate
recently acquired companies or businesses into our operations or to realize
any accretive or synergistic effects from such acquisitions; risks associated
with complex U.S. government procurement laws and regulations; adverse results
of U.S. government audits of our government contracts; risks of financing,
such as increases in interest rates and restrictions imposed by our
outstanding indebtedness, including the ability to meet financial covenants,
and risks related to an inability to obtain new or additional financing; and
failure to identify, execute or effectively integrate future acquisitions.
These and other risk factors are more fully discussed in the section entitled
“Risks Factors” in ManTech’s Annual Report on Form 10-K previously filed with
the Securities and Exchange Commission on Feb. 24, 2012, 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

(In Thousands Except Share Amounts)
                                                  September 30,   December 31,
                                                  2012            2011
Cash and cash equivalents                         $208,930        $114,483
Receivables—net                                   474,844         540,468
Prepaid expenses and other                        22,881         33,115     
Total Current Assets                              706,655         688,066
Property and equipment—net                        29,901          47,435
Goodwill                                          861,934         808,455
Other intangibles—net                             172,134         177,764
Employee supplemental savings plan assets         26,184          25,026
Other assets                                      12,059         13,460     
TOTAL ASSETS                                      $1,808,867     $1,760,206 
Accounts payable and accrued expenses             $274,818        $280,277
Accrued salaries and related expenses             80,997          72,467
Billings in excess of revenue earned              15,460         34,956     
Total Current Liabilities                         371,275         387,700
Long-term debt                                    200,000         200,000
Accrued retirement                                27,555          26,155
Other long-term liabilities                       9,340           7,871
Deferred income taxes—non-current                 52,602         49,223     
TOTAL LIABILITIES                                 660,772        670,949    
Common stock, Class A—$0.01 par value;
150,000,000 shares authorized; 24,054,755 and
23,882,331 shares issued at September 30, 2012    241             239
and December 31, 2011; 23,810,642 and
23,638,218 shares outstanding at September 30,
2012 and December 31, 2011
Common stock, Class B—$0.01 par value;
50,000,000 shares authorized; 13,192,845 and      132             132
13,192,845 shares issued and outstanding at
September 30, 2012 and December 31, 2011
Additional paid-in capital                        415,864         406,083
Treasury stock, 244,113 and 244,113 shares at
cost at September 30, 2012 and December 31,       (9,158      )   (9,158     )
Retained earnings                                 743,814         692,272
Accumulated other comprehensive income (loss)     (383        )   (311       )
Unearned Employee Stock Ownership Plan Shares     (2,415      )   0          
TOTAL STOCKHOLDERS' EQUITY                        1,148,095      1,089,257  
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY        $1,808,867     $1,760,206 

(In Thousands Except Per Share Amounts)
                         (unaudited)               (unaudited)
                         Three months ended        Nine months ended
                         September 30,             September 30,
                         2012         2011         2012           2011
REVENUES                 $645,028     $734,607     $1,960,474     $2,188,144
Cost of                  551,493      629,181      1,678,470      1,873,595
General and
administrative           50,776      46,918      148,670       141,018    
OPERATING                42,759       58,508       133,334        173,531
Interest                 (4,110   )   (3,857   )   (12,267    )   (11,806    )
Interest                 118          107          257            230
Other income             10          (20      )   (78        )   3,896      
(expense), net
OPERATIONS               38,777       54,738       121,246        165,851
Provision for            (14,350  )   (20,252  )   (46,432    )   (63,020    )
income taxes
NET INCOME               $24,427     $34,486     $74,814       $102,831   
Class A basic
earnings per             $0.66       $0.94       $2.03         $2.81      
average common           23,760      23,513      23,700        23,360     
Class B basic
earnings per             $0.66       $0.94       $2.03         $2.81      
average common           13,193      13,193      13,193        13,246     
Class A
diluted                  $0.66       $0.94       $2.03         $2.80      
earnings per
average common           23,778      23,607      23,743        23,493     
Class B
diluted                  $0.66       $0.94       $2.03         $2.80      
earnings per
average common           13,193      13,193      13,193        13,246     

(In Thousands)
                                                     Nine months ended
                                                     September 30,
                                                     2012          2011
Net income                                           $ 74,814      $ 102,831
Adjustments to reconcile net income to net
cash provided by operating activities:
Stock-based compensation                             6,295         6,813
Excess tax benefits from the exercise of             (43       )   (244      )
stock options
Deferred income taxes                                5,079         (10,245   )
Depreciation and amortization                        44,768        28,700
Gain on sale of investments                          -             (3,745    )
Change in assets and liabilities—net of
effects from acquired businesses:
Receivables-net                                      72,360        (9,471    )
Prepaid expenses and other                           9,181         4,351
Accounts payable and accrued expenses                (13,160   )   (2,605    )
Accrued salaries and related expenses                6,580         17,079
Billings in excess of revenue earned                 (20,027   )   44,469
Accrued retirement                                   1,400         (1,786    )
Other                                                1,016        1,975     
Net cash flow from operating activities              188,263      178,122   
Acquisition of businesses-net of cash                (63,093   )   (20,300   )
Purchases of property and equipment                  (8,393    )   (51,372   )
Disposition of a business                            1,799         -
Investment in capitalized software for               (2,215    )   (5,105    )
internal use
Proceeds from sale of investment                     185          3,255     
Net cash flow from investing activities              (71,717   )   (73,522   )
Dividends paid                                       (23,257   )   (15,400   )
Proceeds from exercise of stock options              1,115         7,665
Excess tax benefits from the exercise of             43            244
stock options
Treasury stock acquired                              -            (44       )
Net cash flow from financing activities              (22,099   )   (7,535    )
NET CHANGE IN CASH AND CASH EQUIVALENTS              94,447        97,065
CASH AND CASH EQUIVALENTS, BEGINNING OF              $114,483     84,829    
CASH AND CASH EQUIVALENTS, END OF PERIOD             $ 208,930    $ 181,894 


ManTech International Corporation
Stuart Davis, 703-218-8269

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