PAE - Earnings call transcript Q4 2020

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Operator

Good morning, ladies and gentlemen, and welcome to PAE's Fourth Quarter 2020 Earnings Conference Call. My name is Josh, and I will be your conference operator today. This call is being recorded. I would like to turn the presentation over now to your host for today's call, Mark Zindler, Vice President of Investor Relations for PAE. Please go ahead, Mr. Zindler.

Mark Zindler

issued you We in opportunity hope the release thank XXXX Fourth to and press Announcement. morning. Earnings you've we morning, for PAE's participating Quarter read Good this earlier had an

have our of provided Relations website. slides the on We Investor also section presentation

PAE's Peiffer, today Heller, our Officer. discuss Chief are to Executive Chief me business and Financial and Joining results Officer; financial our John President and Charlie

earlier earnings Management these We any not forward-looking remind call, that John do we over substitute And non-GAAP update forward-looking measures are obligation call financial non-GAAP to the with in regarding release not issued a statements. performance Actual statements filings. due statement disclosure. and for Following to comparable events, question-and-answer the difficult a involve and and statements Management These our now also you Reconciliations uncertainties and a to contained our release variety will prepared and measures future the for forward-looking call of results remarks, that during GAAP undertake are discuss you SEC I financial that guarantees may performance company. trends turn materially this PAE's are during non-GAAP to in future of comparable close today. predict. differ our factors. described the future will measures. in are of future complete projected forward-looking financial their press presentation of may we anticipated factors make such anticipated We investor measures not Please statements GAAP risk will these measures to session. those the Heller. are the the press to refer caution from

John Heller

through backdrop, amidst has we've start turning the year We morning thanking us faced all for of you employees our myriad know acquisitions been challenging we recent to workforce, But Conference of Earnings CENTRA Fourth what in us Call. all been. who've a challenges PAE's including I'd joined this this like our and Metis. newest this Quarter our by joining Thank for opportunity. successful into

We debt efforts while have our X successfully COVID-XX served maintaining acquisitions. refinancing including executing of daily and strategic and lines several initiatives, front on operations relief the

to and delivered exemplary steadfast Our resolve rose your you deliver. teams dedication the for consistently Thank challenge to results. and

I'll perspective of For on government's PAE. strong the I'm coming fundamentals the excited next the the in federal to top position today's impact competitive highlights And an a with of federal watershed and agenda priorities on moment PAE in discussion the PAE's a areas quarter. key momentum remarks portfolio for on transitioning fourth with evolution of the of call, higher-value business into overview our our and take procurement our and the conclude of trends, is and and expanding This our of their market year my a step a positioning for I'll start strength and to with trajectory the business. start off margins.

debt our margins XXXX, refinanced the while on do. all the completed out and points. to Looking did back set strategic basis we acquisitions, We we increased XX accretive X and everything pandemic. We navigating

We prospects our beyond. about and I'm foundation, have strong XXXX extremely built a for and excited

to accomplishments. Moving additional

contracts, IDIQ We win ceiling competitive to contracts of vehicles: not the believe billion. to growth an process. continued we procurement strategy of a IDIQ the IDIQ we through multiple-award Air offer take potential few. against $XX portfolio name CENTRA and vehicles recent than In award on of we to contract attractive GSS backlog. with growing and X II, and GTACS added into and our quarter year, the have throughout consistently We've our of IDIQ and value won X.X through First, execute AFICA the any our Force, When X these fourth a both access to acquisitions. positions tremendous efficient acquisitions did more portfolio, award SIA Metis, RS portion we seats the on organically with

our Solutions. market However, vehicles we to our and viable services intelligent customer with of now expansion. up CENTRA this the customer-facing we effectively meaningful delivered bid opportunities provided opportunities credit the complete, both prudently on to are the acquisitions. Metis related markets we exactly we to of CENTRA NSS have significantly Most us importantly, pipeline at expect a work we in identifying and integration and to track, acquisitions teams March our by to the also and We National and is basis and hard for business our of attractive in essentially prior include positioned of efforts widened and guidance XXXX. by we combination compete most the areas. committed initiatives margins. evaluating what The are our our about XX expanded quarter been and path front, of impacts The did to largely profit program successful we Through a after business business, towards communications backlog contract Security pipeline completely improved Technologies national as capabilities, acquisitions. the return refinanced access we're core have improvement development of expanding intelligence and positioning expand our revenue our these acquisitions training drive both strategies adjusted the effort strategic solutions security analysis, provided performance $XX Metis component in to capture do. market point scaled of these which have enables and EBITDA vehicles side and execution year. largest out Furthermore, drive set communities pandemic, for now integrated a over navigating When a margin basis results. the objective XXXX, and the key opportunities, concerted of to combination drive in of executed points XXXX on be through and the and intelligence integration our bid operational synergies, The billion. fourth strategic Metis, PAE Having In strategy CENTRA we the our debt by across of over XX developing Solutions. higher-margin leader with successfully a to is segment's addressable the increased We've

to business a like Next, context focus in take I'd discuss of the moment the to core capability areas.

across In strategic break addition our offerings. focus we reporting how the Global view on basis our Solutions Services offerings across our expanded to Security we results and National earnings these financial of of core to our our market operating go to in and provide the presentation, segments, an down profile Mission

services. areas. larger a the support. across and solutions, test customers long-enduring plays and government is capability various business growth these X Contracts extend time-immaterial. area, Immigration, decisions. area and mixed Infrastructure business readiness, Asia-Pacific test X in business core solutions We regions, test seek biometric protect, portfolio region. and is areas also footprint. readiness our as global want training solutions, areas, fixed-price management Infrastructure management typically smart And on variety focused and services. primarily training a intelligence security-related, cost to key solutions that offerings duration FedCiv market DoD capability terms outsourced processing, maintenance into and the cost-plus and financial as contracts professional phase-in; support and in These The data are focused X and bid targets The as engineering, including which mission process and technology operations. pieces as We integrated are in health and Defense well role solutions example, looking operations, notably areas services of core solutions additional the focused national we of of include and modest years X see logistics typically well at represent and analytics and citizen primarily provides the services. range and business customers, for FedCiv geographic across aircraft engineering Mission primarily The engineering services and and business are facilities' expanding capabilities. and several vehicle in. on of adjacent with training Department is

and test further environments. and One of focus into modeling expansion is several simulation-based areas strategic training

greater being comprises year M&A. latter the technology technology business emerging adversarial will represent of the business programs security our be money analytics, about the intelligence deliver and an least national They toward to services using CENTRA communications assess at the X% by our next and space accelerated by portions business our years operations, our less driven prominent to by the represent and the A this will these we percentage role example the we'll targeting driven XX% classified great X of pursue and and programs, price. Lastly, X white revenue Metis where other and XX% and to finance a the the if X areas customers. these have area counterthreat goal. helping grow opportunities analyze risk latter in best intel community Moreover, Metis' customers technology capability potential solution of and enabled flows profile. of for areas areas over strategy Growth track, customers the with acquisitions. X expanding also even associated security margins national the play and These in long-range expect

pleased win award X.Xx were perspective, fourth solid I slower has our than a the both book-to-bill but revised The for historically at to the which results. EBITDA rates From business on rates quarter higher generated were recompeted an a PAE, historical report trailing of win strong. end am fourth on and high and a awards to averages. were adjusted quarter guidance. basis. we Contract we new XX-month of XX%, respectively, Moving been revenue XX% quarter maintained our

volume due and these to award were right, award likely adjudicated were be will decisions However, outcomes XXXX. including pushed protest, the in on lower-than-expected several to as

We Note, for awards quarter business, significant strong several awards. had and and single future awards IDIQ contract XX% notable the new our growth for about that were Moving activity to foundation quarter. had profitability. we awards the for of provide several fourth

on our visa billion the nonimmigrant XX-year, awardees, immigrant processing integrated and with strengths of One Global will GSS leveraging providing company's compete the XXXX of IDIQ collection of solutions, seat to a Strategy assist accomplishments is This integrated a was State of vehicle. the or Support task X for services. in X.X, big solutions technology process worldwide of contract and X $X.X PAE, by applications. secure contract Department orders business processing data biometric strategic winning

activity in XXXX strong task of a second XXXX. revenue see and anticipate order adjusted half EBITDA award to contributor We and being to in this expect contract the beginning

win making maintenance, and As a or awarded is program winning To GMS EWOTIM, end, about with value attractive, of million, are business and warfare and our provide year, our single-award to across the to up discussed segment was company electronic progress example bidding value Europe $XXX services last This operations, training electronic programs our business. another ceiling training becoming infrastructure for public a IDIQ throughout the the entire contract warfare services on-site this have move of we we since Africa. missions a focus great complex concerted management chain.

NSS throughout of of Justice V segment course awarded expect V. to our expand predecessor IDIQ. the range seat Additionally, automated support rate Under we Department litigation an with we wide this run Department was services. MEGA million, of professional contract, of over on services litigation Under revenue MEGA support contract, Justice the a U.S. we of annual on attorneys $XX the a generated which

a Next, award. update billion I'll $X.X CBP the brief provide on

January, the previously contract discussed, XXXX. reevaluated PAE $X.X U.S. subsequently was Border award The awarded billion award decision. Customs the the XX-year to and and May Protection we protested in competitor. In were the CBP contract a As awarded CBP we with

with have will quarter. and a filed Government the Accountability next an provide protest update Office We

Next, $X pipeline. evaluation, the had billion I'll we of under quarter, the and $X provide are At end awards. about recompete approximately bid billion a summary about of billion is business the new in which awards of $X

the more new new an $X we $X CBP $X.X GMS, process, about than have we the awaiting billion in of $X billion, task which recompete billion opportunities. by are and are are initiatives. process. billion the and Approximately $X the to in is of business. proposal organic will about we acquisitions which awards, orders our opportunities. $X which business the about and driven writing awards, growth has contract are evaluation under the billion new bids under our are In segment, includes proposal in also contract. the included billion Moreover, We Metis in the CENTRA GSS writing awaiting are not protested in Note that awards majority qualified the grown or In majority business NSS $XX pipeline incremental billion bid

Force, both incorporating and revenue representing Army, XX% revenue. XX% solutioning standpoint, from the amongst Air revenue. the the position Before with and and environment, take it price pandemic our And impacts the XXXX represents things The any XX% we a positioned into to And I to contractors to priorities. functioning created is pass competitive administration, government diversification. guidance, on PAE represents and competition rational. provide is in on on now uniquely basis, seen to the a perform customer Navy and to the I'll to my change government's have services a has of and the rely federal only spread Intelligence Charlie, on their XX% by of DoD, best-value moment civilian Despite our the award of award remained revenue. agencies impact mission-essential of continue Department continues federal government. State trends, decisions. federal the daily procurement perspectives contracts not of given remaining macro the In material consistent revenue, strong

I'll Biden the of history between all administration allied XX-plus well national initiatives Iran continue and Biden Defense fostering. the of to policy have globe, year geopolitical kidnappings Africa risk, in strategy and we rich military Department by U.S. defense U.S. foreign very our many around Services heightened customer of sets the competitive With our our the and with and a are and the demonstrates priorities. of we turmoil Department nation-state last which State the activity. interconnection nations continued Next, is reevaluation month, Russia, Department that China, Legacy, structure the in positioning. core recent The address and and positioned face the our the supported administration Syria, of conflict seen In government and State

well applications. and on core by development award strengths, with Support Global and administration's our Department's Strategy on encouraged are evidenced the areas the processing recent policy, global supporting aligned new enduring and immigration as humanitarian programs PAE's the foreign We work, these immediate focus embassy These diplomacy by PAE's IDIQ reach, our initiatives. State are of

benefit are department drive I'll over and role fourth called for the leading other and to visible PAE financial in our agencies this focus. well a renewed full from federal state is an quarter year hand results that, the Charlie and XXXX overview As to of upon guidance. global XXXX With and issues, more call positioned to financial

Charles Peiffer

an Thanks, by a XXXX and and overview thanks us results, John. on our call. for fourth quarter Good by to of year the joining full everyone of morning, guidance. start XXXX followed I'll providing discussion

takeaways. the Looking big picture, there X important at are

strategy margins by our XXXX. the XX-basis business of high-margin towards First, working, contracts is expanding in as our evidenced point in improvement

Metis acquisitions put to of the and that further performance ourselves pursue customer off position work revenue created Second, contracts presence CENTRA our past paid our with pandemic COVID third, vehicles. agility by and and forward. they a yield services COVID of we only winning in going strong the margins, expand quickly responding diverse Not strength health And for contract the integrations and future testing. and and capabilities, did set but relief to relief those provide COVID-XX of opportunities capabilities to and

COVID-XX, start of the revenue mix were which from a driven results, high key on in contributions and basis billion, especially of million We was of segment, record quarter. quarter a driven was the in was increases opportunities including pandemic. excluding the X.X% by first of a CENTRA strong Metis, million revenue, the negative of Fourth of $XXX revenue performance fourth and new organic increase the year-over-year revenue, performance, and XX% stand-alone the and the stand-alone the for quarter. impact EBITDA expectations, was basis contract was with contributions by revenue. We on nonlabor year at quarter program reflecting X.X% The CENTRA from a I'll PAE higher the strong to nearly $X.X high end margins in This volume, Metis. nonlabor the quarter by approximately from a was expectations. despite delivered offset in Full fourth driving growth $XXX acquisitions including $XX and impact factor Moving end revenue adjusted X.X% of nonlabor-related. experienced from partially This NSS business results. which a our at million

year, December of For -- improvement from contributions but EBITDA, end margins XX timing represents in of Cash at the early have we adjusted the by below million and was the million basis cash point reduction high excluding but The this This, XXXX that flow point We with cash $XX until driven of were was our guidance. anticipated than basis nonrecurring XXXX in the delivered a by of million about too, quarter. million, receivable full solely was flow a $XX million certain and million a year items. and improvement free XX $XXX was was we collections. over for experienced X.X%, $XX XXXX impacted collecting flow our for was over lower we acquisitions. activities shift guidance. accounts cash $XX original Consequently, flow by our was which timing in the expectations, expected issue operating free entirely about provided January. in anticipated $X the expectations. X year delayed cash This the Full

Act will from of First, payroll taxes, XXXX. $XX which be paid ratably benefited in CARES we and XXXX million back deferred

in and $X $XX and expenses expect we million XXXX integration in approximately million to Second, XXXX. expense currently in M&A of only incurred integration incur

to results. Moving margin $XX a was and and of administrative higher a nonlabor-related. fourth relief nonlabor for by XX% year operating growth X.X%. quarter over next was and COVID-XX, to adjusted Margins from revenue. income fourth of to GMS mix than expenses XX% period which more quarter revenue. to of general GMS the This relative COVID-XX higher declined quarter in value, impact due increases opportunities nearly revenue at offset million negative due the last our partially grew segment was selling, contract million nonlabor a $XX

GMS delivered for full despite year revenue the full $X.X year-over-year and negative successful COVID-XX a in in volume, $XXX revenue of the margin and COVID program a revenue income by in strong year business For a contract increases with revenue over year. $XXX despite representing million of driven of The impact year, XX-basis nonlabor XXXX. was offsetting mix a improvement to revenue from adjusted in dollars the was margin new operating lower majority comparable GMS point of lower opportunities. improvement impact the X.X%, was the billion prior COVID-XX. relief at and performance million GMS

and NSS $XXX and the acquisitions. or year including generated higher to the $XXX quarter. to quarter X.X%, a revenue NSS acquisitions $XX negative X.X% improved income about Turning million period of XXX and margins a and segment. for Fourth the sales, represented We reduction and attributable performance. program delivered by improved and $XX is million to a excluding point million million volume acquisition; compared to This pre improvement COVID-XX the $X the basis million primarily modest operating over adjusted impact. last driven prior respectively,

delivered impacted or negatively year, million acquisitions. the $XX by million revenue NSS was full Pre acquisitions to revenue For the $XXX $XXX COVID-XX. before in million due

NSS a its to XXXX margins. contract As in a to set-aside in fourth the low we We previously decision made have not bid discussed, XXXX. of due X on contracts small business launched quarter fourth

remaining technology Excluding was predominantly intelligence in these the NSS and services in area grew test area. XX% of Approximately and organically XX% was training X and contracts, the the the year-over-year. XX% capability growth

by margin, over strong income an to an and poised acquisitions. are basis we us, XXXX prior or represents X.X% operating growth at program behind million in approximate $XX improvement beyond. year, This the adjusted performance. losses an margin X.X% strong point million the in excluding delivered XXX these $XX at NSS show driven With

CENTRA Metis. next the Moving efforts on and integration to

track. activities the As quarter both integrated on fourth will end in integration we Customer-facing expect John to current by integrated for of his acquisitions mentioned be fully quarter, the XXXX. and largely the by be the remarks, are of

to cost by XXXX. cost approximately $X million synergies We XXXX synergies generate and in expect $X in run of expect to full drive million rate

Now XXXX turning to guidance. financial

of in to range billion. billion of a $X.X with $X.XX midpoint expect revenue We the $X.XX billion

to expect at point basis midpoint improvement $XXX million, over EBITDA representing adjusted XXXX. XX the $XXX in range a We million of the

align For guiding XXXX, of will operations peer we to tie change instead group free with a be -- are better that and from cash flow, our a the cash flow that statement simpler to process will flows. to of cash

million in of flow million receivables guidance based cash December in were flow experience first back XXXX. incorporates the to is free on originally CapEx. through We will assumption tie that the impacts expect from at half the cash flow, least of we of of expect in $X the Guidance which XXXX. COVID cash $XX operations, $XXX we that collected anticipated To million approximately

XXXX growth impact half revenue low the single-digit We We are from -- growth will business half nonlabor second first a assuming NSS. in back-end-loaded, be GMS impact. opportunities, growth by revenue. to low the to comparable be second XXXX of double and The the in COVID driven COVID-XX growth COVID-XX new impact of in implies revenue double-digit a in anticipate low reduced increase half and

revenue the open with and are earnings With government. to fiscal for year. our revenue new guidance government dollars a our in available At XXXX year start increase the the throughout historical With awards. and Other This guidance, contract assumptions to typically from is in let's expect presentation approximately business section We of of new our growth the X% adjusted revenue a key level. to that, second approximately contract our recompete increase XX% Investors website. revenue for in revenue of as first with EBITDA revenue due nonlabor the volume experience the about funding call with quarter backlog, sequential questions. midpoint funding expect below guidance, guidance contracts a consistent is in operator, half on and from line sequentially, is regard of driven in in the we with X% the is we for by quarter fourth increases higher XXXX end-of-year be of availability weighting trends to

Operator

Chris from [Operator first with CJS Securities. Moore Instructions] question Our comes

Chris Moore

basis color Charlie that where little off, with talk for the SG&A? margin that 'XX. performance, program more -- there. fiscal bit mix, by expansion start to a just looking bit we'll in XX you're left that's Is -- further, little point driven the Maybe A

Charles Peiffer

No Sure. problem.

If at is seeing is that mix performance XX% represents XX% all, the other between about first revenue growth -- NSS, that the split you And in the look of drivers, organic the of improvement. of we're well existing I'll that well. our as what margin on SG&A contracts top growth, and growing that some the as in from we're management. expense call not also as Obviously, line is providing expansion with expenses our that line balance

Chris Moore

That's helpful. it. Got

in of of So X. of year it CENTRA be Metis, to terms the and on going the like is sounds most focused the integration

kind lot You've fiscal there. white most space talked a and about there growth that of opportunity really assumption the beyond the opportunity? 'XX that white space is opportunities Is of

John Heller

Well, it's real I a combination. think

throughout think is both I of a with have expansion work the IDIQ the pipeline, to task we believe table would them say represent and can this much I IDIQs do see orders, bidding year. that turnaround. John. the And Chris, opportunity faster bring there's to of in -- the you an 'XX

So I think we there task volume in 'XX. some see can is a expectation that hit order definite

as bid when that and hundreds orders contracts companies white those call orders, you that -- these the ability PAE task white in large of Metis the millions, CENTRA, have now, their we or too could of there's combining of in when on or which think I number been have come we to think of might because bidding overall bid more. that capability they task out are either space, past had they performance space on and have the may -- well, not a with to there scale

just and integrated front to operating we're a So there's And team on this, with as business some a past on But team, how great one obviously really then people mentioned we've result about of as brought other more the we've and additional that would you the end of that the capability 'XX, is different space white acquisition IDIQs. really the at the but where Charlie of pipeline factor, the given performance. much Charlie that. we've us for Most well of opportunities. already expect, allows a that be time more single-award have line customers, 'XX, of mentioned would to had. But combining the identifying identify experience growth we've with done those, pipeline. acquisition

So bringing for we're what that's excited prospects the about to and the future. table the already

Chris Moore

Extremely not on Are might helpful. me. the there additional business it. away be from? for to one horizon you might on, may walk that have able you any to Got Last small set-asides -- bid

Charles Peiffer

when just with acquisitions made, you also aren't small us interested any we at now, look which is headwinds those business Right set-asides the there that, in what like acquisitions.

for So anything Chris, the there like foreseeable anyway. future, isn't that,

Operator

Our from Morgan Matt Sharpe comes Stanley. with next question

Matt Sharpe

to revenue is in Charlie, for that what's for of the within $X.XX billion wanted here a the much to midpoint $X.XX the looks XX% revenue sort touch What organic year? an John, on billion embedded of it's range on like about XX% unpack just basis? CENTRA moment, at And buried It it. like guide. look the does how just and Metis

Charles Peiffer

the growth from the looking announced to expect we in acquisition covered you our XXXX. core, we're guidance, completed if what acquisition, expecting the double-digit with In low consistent at look similar we X And GMS, case X double-digit Matt, business pre So growth of our we're growth. NSS core coming single-digit as at transactions, we we low the well. for then just when what acquisitions low

Matt Sharpe

for COVID-XX Got for the a that like it XXXX during overall bit you little it a expectation prepared that just mentioned know that loaded, about color for of think net that it. number then into year. And level. response And XXXX. $XXX for Is was of then about looked just I front-end thinking sort impact, was cadence your you're remarks the any how any on maybe or COVID-XX but just I revenue? million sort it accounts of

Charles Peiffer

out overall And by offset volume. revenue, about of headwinds, impact net for the the, of as from were to million out, Yes. lion's million roughly, with call, $XXX of that $XX which GMS to net, or year. COVID-XX just When what COVID-related nonlabor that because million were was the the predominantly were so with in then if COVID business headwinds gross, the higher we revenue negative the response share we netted once $XXX GMS $XX well. look around of I'll nature you of at coming million we And net

Matt Sharpe

sort then Got want touch with awards But sort high overall XXXX? achieve you the you activity to I government about see towards And Okay. what you from, are end? to how there here guys of quarter. actually the do any on order end Did the upper in didn't do target Or on mentioned need versus impact you bookings into I that -- range? it. of Is X.Xx a you end push you and moment I then a book-to-bill guess, low thinking know to consistent need of the just the the And expectation? your order trends was to revenue in to book-to-bill as your for well. reach

John Heller

say I a saw kind expectation talk first Yes. all, I'll would XXXX. awards lower actual in just, definitely volume from the standpoint an on We of of of trends.

transition expected States, of travel that government the government that people recognized the to involved on and that U.S. the in awards some certain that acquisition is The travel. and that outside acquisitions overseas think, accomplished, and that teams -- the to had XXXX. a was because the inability on in The a by saw in get back kind or the the of impact to big I for U.S. so of to have significant a particular, just So that, the fact XXXX. travel, things carried we contract to severely ability into that B, down individuals travel contract that been across was slowed of United that any had contract impacted transition or held those part personnel we do collaborate of travel of required that over effects COVID, A.

Charlie, XXXX, first in a as activity factor to I an expectations as know expecting of even standpoint, travel workplace having about that to we're military get the don't back opening sort distributed, year. vaccine I the the bases got would So -- overall a think of returning I that, with think offices hearing first up, of COVID regular back the XXXX, a there. probably residual you've the pace From ability if there. government mostly quarter, we're on to by second is for book-to-bill half half normal, we'll of still But the and impact

Charles Peiffer

Yes, problem. no

book-to-bill it range be but should guidance support So year slightly than in Matt, higher for basis around X.Xx. we It that that the have provided. total be be the a would that, to could

Operator

comes Our Deutsche Bank. from next question Ashish Sabadra with

Ashish Sabadra

Congrats solid a guide. on results and good

Just are imputed, quantify, not But orders going us just if could you I wondering task not if help for I potential mistaken. just how IDIQs bid forward the was do back in to proposal understand annualized well. much pipeline. on this you maybe And the task color Or the about do think going have any basis orders phase? year? as an how I'm we

John Heller

Yes.

in billion, terms is proposal what order-oriented. task lot of First just consistent. today we is of that all, A is $X.X have around in of which pretty

bidding the that expansion it higher $XXX then So of past, million those probably and see spikes are meaning back we'll off opportunities. we million, a in $XXX volume $XXX would steady you're bids, say, the $XXX versus, of million, IDIQs, volume. would smaller in quick-turnaround, those go of lot because see volume in million, shortly. a when of bids Whereas we a drop And more anticipate

year. We And last with But both expectation pipeline won our significant would that the is back what we the contract start task number. overall, a a businesses quarter, the year the GSS volume we exceed from of half that year, in will healthy to that for come order bid also expect that's pretty fourth the saw in pretty out.

to that billion year was billion $X So $X last in bid.

we this higher expecting we're volume, see just timing, So what our pipeline. a in of on year, based

Ashish Sabadra

That's -- contracts, contracts? I some coming when in X should And of renewal particular, for up that on for well the year, just -- contracts about if AFRICAP. renewal on could the color. comment we wondering as maybe this you how helpful color the the we think Iraq both BLISS should are was those great. Any and very That's OMSS as

Charles Peiffer

customer, expect look we So be awarded don't BLISS, that to from we the based if OMSS on you at our and until XXXX. recompetes, hear what

going the move that's to Ashish, right. So to

River XXXX, Center expect we contract resolution of Space volume about we It's As to is have recompetes. guidance that CBP. as related the well we in Johnson some an to the be standpoint MEGA we award awarded far XXXX. we They have won V. X% in of And on the as as John highlighted Pax a drivers. contracts, we as on other we XXXX that do in And recompete from late seat activity then MEGA. have are decisions then AUTEC. on is the have highlighted, significant that a

task the bid will of primary which for coming us. those for we on out the growth So will be recompetes orders coming 'XX the us is well in... recompeted XXXX, to of for the driver are up that the as those on, drivers in contract some for be But orders task see MEGA major new as

John Heller

-- on task just season you the seen mean, in decades past. AFRICAP, in as normal the AFRICAP in expect would and I mentioned that we've order AFRICAP, XXXX, we And a

nothing out there. the So of there's ordinary expected

Charles Peiffer

under more ago, was think awarding new that a past, they in performance I was And contract, when years awarded arrangement. for were it contract In the well, X. it period were a the they X X-year of the

see to AFRICAP because profile different contracts in with So is just seen period slightly which than going you're different you've performance. they what a on have of past the longer now,

Operator

next Josh from [Operator with comes Sullivan Instructions] Company. Benchmark question The Our

Josh Sullivan

going think most do is the at last where then how do goals months? model the that look you here, change maybe as this looking think forward X breakdown Just in chart years, the significant strategic change? to we over And is you X

John Heller

areas? strategic the talking you're about growth And

Josh Sullivan

mission looking business I'm Yes, intelligence, at solutions. infrastructure, readiness,

John Heller

and pipeline of about on and and and to we're to what Yes. the We training representing is technology services services. over growing solutions, closer few And pursuing, we're solutions based making, that just Yes. right the Metis intelligence we're you test see at business the organically CENTRA now the XX% really, investments XX% acquisitions, expecting, look the revenue, intelligence next years. momentum in and with technology the

some we the will Our training solutions business GSS and and test training. in continued range contracts behind solutions momentum really area. other work, momentum [Knight] and ETSC the were awarded provide award that other can and put

that strongly strategically the we the growth than a great although and feel well still acquisitions, we us drive So infrastructure mission these a should X there and, in capabilities have engineering and last as terms good areas have well. with pipeline higher rate together X at come continue readiness, the of really to for

and we our continue the in We positions are market share rate well. expect those as other to fair Our compared just to X. win areas strong very to expect those in areas, a lower as growth

Josh Sullivan

I I to if biometric shifts know to which see areas maybe there you where in about the see think you the kind Right. want in upside? State I And visa funding and M&A mean, of any we are But relatedly, that I opportunities. area? you some we do Department, talked Or back holes then, guess, mean, other could fill any

John Heller

contracts and contracts. the ICITAP areas was year, government terms of are contract. we will will key like U.S. where that ICITAP U.S. we where expect the that AFRICAP follow. world that we'll the But identifies of priority spending last government by of world obviously, government, become State the Well, -- U.S. with the would to the Justice awarded engage that in for a GATA link Department Department other identifying wants regions have and X will engagement

relationships have like So an capability great standpoint, acquisition areas do across State different Department. there of strong. we we foothold from are our the support in feel the a Obviously, really

So we really need don't acquisition leverage expand. to to see a

the Macfadden. growth have of We an significant very into in, done us do for again, white allow see our have for think to last the a growth. think business is to it an the area over couple well. of that we we It's represents in achieve M&A organic we past, space don't we significant goals. need But great growth we we not of so amount -- USAID However, pushed PAE that area acquisition fits years through that opportunities

Operator

would showing further over this remarks. I'm at I for questions you. turn And any not back time. the like to Zindler now call further Mark Thank to any

Mark Zindler

for and joining PAE. us your interest continued this everyone, Thanks, for in morning

questions, to call. have me have give and Thanks a you any If a day. please a don't great hesitate lot,

Operator

call. concludes Ladies and participating. for this you. Thank today's conference gentlemen, Thank you

now You may disconnect.

PAE (PAE) 11 Mar 212020 Q4 Earnings call transcript