PSN - Earnings call transcript Q2 2022

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Operator

Good day, and welcome to the Parsons Corporation’s Second Quarter 2022 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note that this event is being recorded. I would now like to turn the conference over to Dave Spille, Senior Vice President, Investor Relations. sir. ahead go Please

Dave Spille

Relations morning, our you results. second provided the that Good website. today Please joining to we’ve Investor on slides discuss quarter presentation of and you. our for thank us note section Thank XXXX financial

statements. And GAAP financial to over measures obligation are comparable to remind turn reference any financial non-GAAP the disclosure. these their We risks to ended today with December an projected this future described forward-looking SEC quarter Today, will non-GAAP and and CFO. we’ll anticipated future measures XX-K to Management difficult may during We statements complete performance, Carey press Smith, year will fiscal also those release then will risk our make for results measures. operational a and for statements to to in Actual not undertake overview during the highlights, discuss second our update XXXX, predict. not then statement involve the our Management guarantees Matt On CEO; me for forward-looking statements of and trends, Chair, the results. a are refer These Carey. caution Matt factors. provide differ anticipated and in uncertainties of that call the with make also substitute that forward-looking not materially the regarding filings. that XX, such future our question-and-answer we financial other call are events, are are and call factors from We and you earnings will of now, you Ofilos, Carey President close may do company. Form variety forward-looking future Please and Parsons' corporate call due strategy a session. of performance and

Carey Smith

to Thank earnings quarter you, and Good XXXX second morning, Dave. Parson's welcome call.

call want today. review we our welcome to Ofilos our Before to Matt quarterly results, I

over in to our his appointed security of Lord, investor July the Ball, roadshows, leader Matt as partner natural am a also and I great week, strategic business of you Secretary has significant months benefit made council addition year, of will Matt much and as to Acquisition the and of we I industry to CFO from next acumen, for a since member Sustainment CFO. service leadership former also insights the Parsons will Many me financial Defense Board his Under expertise CFO as want pleased As to of know announce continue and had thank have announced markets. enabled our Ellen our to has and and and over to growth enjoy Chief Matt a Directors. become last impact to Board. our team October that numerous for an was and have integrity in and calls. as his member company he of I look am XX. Matt the him contributions effective public at Financial infrastructure critical XXXX. Parsons we prior leadership our thrilled working to operations. experience, George His our thought of national George to taking we both been on valued Since last last the meet several Officer conference to a positive selection and during been conferences, I forward you will a with I have our opportunity

solutions knowledge. we're with imagine, As an and to defense and stature have you complement her George’s infrastructure can thrilled expertise, will individual which federal

results delivered We continued. over to strong turn as second established financial let's year quarter momentum the Now, results. our last

cash and in-line IPO our X% quarter, expectations. achieved is adjusted which we and organic our since growth, EBITDA highest with results the flow we our revenue During generated

leveraged financially and Critical our since our diversifies strategic the federal acquisition IPO. also Infrastructure solutions is Xator market addressable our balance segments. that to and an increases and We our both important differentiates acquisition and sheet accretive capabilities further in largest our customer complete our base, broadens

performance As first we and a result half few increasing which of acquisition, revenue our through adjusted XXXX are discuss Xator in EBITDA a guidance, strong minutes. the the of our will and Matt

total XX%. second of revenue the During quarter, we growth generated

segment. driving Federal These Our segment year-over-year including within our Critical sustained XX% was contracts, recruiting over within effectively the and our driven on award expand X%, and grew single to and growth existing year-over-year expect adjusted we've last the margins and the X% in We made markets. contracts, large half well-funded business improvements second retention, Solutions XX% and by to results growing task year. growing our orders organic revenue operating of the reflect to revenue year two were and in Infrastructure EBITDA

flow cash generated from operations during also We million the of $XX quarter.

to to customers' large missions that with in are areas security continue ability to deliver our strategic infrastructure win national and us global Our successfully contracts has allowed aligned priorities. on

basis, Infrastructure an second seventh X.Xx quarter, marking the driven X.Xx segment, ratio book-to-bill a During book-to-bill the we consecutive in has quarter ratio X.Xx. book-to-bill a enterprise Critical by in of Infrastructure's exceeded which achieved on ratio our Critical

fast-growing program with notable largest A quality our of the Saudi the $XX in is National related on increase Metro Nuclear Xator to Riyadh value May million awarded projects. contract to million for contract rail Administration. to customer A our project re-compete worth During on million An infrastructure $XX of developing by program. world. the XX. $XX acquisition Services the million task XXXX contract a contract improve for entertainment in Management customer by as life And provide Enterprise over the of the a sector Construction contract we part $XXX development contracts. Saudi Arabia order quarter, classified a following closed Vision $XX system second Department the new Energy, Security management win after million were new the which for A metro program, the contract

ceiling and we Command, $XX billion values the Middle Facilities quarter finalized. $XX are We also for values second million. two contacts won that with East being these large of won Naval multiple-award After Customers Agency Health Defense are prime ended, respectfully. the IDIQ positions on contracts contracts Engineering with two and Systems

prime ceiling also $X on won contract with over two a XX years contacts. value billion classified IDIQ multiple-award provide additional cyber a One IDIQ positions is We operations. to offensive

their is programs. infrastructure activity protests infrastructure in anticipated over Arabia's award only provinces infrastructure Critical second remains award been the evaluate investing as million stages of major for build Federal segment spending the of an a healthy Middle Agency’s Infrastructure to with Overall, diverse in at to East remains Modeling healthy States, Defense Solutions and increased. United have taking with projects than the increase XX accelerating strong segment. and Support contract win strong years. November future very prolonged economy passage in ceiling has in the spending longer The last is IDIQ is Exercise, with in Award particularly beginning the Threat In the multiple our aligned Infrastructure Assessment, proposals the and candidates to quarters few also contract Reduction and Saudi XXXX. in slower $XXX Simulation objective the remains and their spending for and and anticipated over clients due are

cyber, States in next strong of have we funds. expect as the contracts. share existing our which several large and revenue organic over and overall believe and the large adjudicated award we're operate obligates fair to fortunate is critical United space, quarters, Solutions, of to We and resulting In activity single orders we in high government such than two proposals these an continue protection, focused several to more contract as award few on missile vehicles, past won we our Federal we task be years in will infrastructure well-funded driving we win are markets appropriated However, new increase growth. our over anticipate defense, contracts to the priority

Xator the noted we end closed acquisition May. million As the of at $XXX previously,

to effectively margins command, growth presence companies and expands and EBITDA intelligence new our continue also sheet financially know Xator with well or customer more. community, have the we acquisitions civilian adjusted XX% We Parsons access federal balance of operations revenue special accretive provides of and to complete use State strong customers. markets solutions benefiting unmanned to systems, surveillance whose segments. position XXXX counter the aircraft in budget expected Parsons training is from grow With and XX% of a in both biometrics, our systems, enhances and over business and of Xator security XXXX. capabilities security, Department critical of Xator to national infrastructure,

Top synergies a Parsons the and diverse strong with where opened and in PALADIN, This honored showcased start the portfolio ESG to contract quarter, the the capabilities as off D.C. Xator called Washington million classified area. Parsons to and to already Engineer their Business a Parsons more recognized with integration Minority is than of family. the we companies employer Xator’s XXX was laboratory we Washington we welcome its perspective, partners. for again as pleased most customers discuss $XX an metropolitan the win the From and are one we magazine, to by were Parsons development by Journal employers and employees where XX

our Best In four Secretary the the won these project Sustainable Environmental our for In projects. customers' XXXX addition, rankings over our extension These and Program and summary, our progress am one Consultant of rankings News-Record’s Spring of chemical encouraged in for Professional our about recognized Services of the remediation project Defense of Route Transport reflect the and year value as future. top provide especially and both in Management Parsons by past and support warfare Remediation Valley the Metro won we quarter Dubai Engineering firms. this Award companies Award. overall was our optimistic in materiel, reputation I markets

half of when opportunities the both on that exist of our made employees. yet budgets financial to in the is improvements we take since that, turn results macroeconomic of quarter, continue Parsons employees and to our uncertainty. starting segments, the we last will the back our technical to business growing security during the infrastructure our markets our time during momentum delivered and results. over a last national year. We see I record Matt. broader hard of particularly gratifying and strong extends our as we've call It further progress to our of the year work expertise market a well-positioned impact With advantage over positive the and volatility This and is across talented is having track leverage expect critical both again our and the experiencing

Matt Ofilos

growth Parsons. company high I'm last the the talent customers. managers, our opportunity I named opportunity of the you, security functional continue team. for as some the our to couldn't Thank engineers, most infrastructure, with many complex time spend as we projects I more joining we and support had Carey. to the I’ve finance ahead experience CFO be honored leadership, as two about for year, Since to be and by the team amazed be deliver markets. the of on of and enthusiastic defense, program

mentorship to Board. of Before I X I Ball George look service member and want his them over me I continuing our financials, our review with to of the a CFO nine as years last to work forward for his to months. company’s thank as the for

Now, let's turn to the financials.

XXXX, were of a up increased of year discussed increased XX% from total indicated, EBITDA including has BlackHorse our second $XX partially basis was million our ramp on XXX Carey and organic growth transaction for acquisitions, $XX XX% were second acquisitions. This expenses was million Solutions’ to the by Starting EBITDA Organic where As higher up turn through awards acquisition revenue contract expenses, to million XXXX. growth the revenue driven adjusted up organic Federal first increase driven by the an and EBITDA quarter Total contract segments. growth of XX% quarter margin XXXX. segments. second quarter to now by points of and SWPF driven Federal due negative contracts, $XX was quarter and SWPF Solutions, was of driven $XX related by both activity contract, stronger of million revenue and million SG&A and impact or from from from Xator. acquisitions. of the by results recent $XX from XX% by stronger to existing $XX the offset increased and completion on $XX costs. highlighted increased first by or The of revenue million, which These growth program and from Organic from X.X%. adjusted ramp with partially $XX quarter of prior EBITDA by the and increased increased approximately and XX% These quarter primarily growth second completion. by the quarter XXXX mainly operating the primarily in driven performance from contributions second period contribution to second X% were I'll adjusted increases million previously X.X%. strong our contract margin on acquisitions. increased awards basis. quarter Adjusted the contributions primarily increases from was offset million increased per organic by the program performance XXXX, at

Moving our Critical Infrastructure now to Segment.

growth, million or quarter driven to from on of These decreases adjusted adjustments XX% Infrastructure Second increased This and in was X.X%. by of second adjusted EBITDA $XX by up EBITDA all by were cost Critical XXXX, from organic. hiring increased awards, and increase by quarter X% contract XXXX, margin programs, ramp the decreased performance. $X legacy revenue investments the or was completions. primarily future recent driven of which and program decreased quarter stronger second the million of primarily program activity,

costs and expand margins to to of the the We expect in normalize year. half these second

discuss Next, sheet metrics. and flow cash balance I'll

at at QX net XX the XXXX quarter end QX XX of DSO and XXXX. the of to was of at second Our end compared the days, end XX of the days days

compared quarter the Xator of reported million related decrease of to of related the we to million quarter in the the year due transaction expenditures critical $XX second Operating get flow Capital The to win. in This to million XXXX in second which $XXX million, was period. second totaled million recent to from period. cash due expect from operating in quarter includes East. to we the the totaled infrastructure was with cash planned of a the XXXX, second mid-point totaled us range. for the million XXXX year Our year strong contract of $XX $X timing Consistent typical $X primarily large XXXX $XX the in our flow prior million, the months six investments increase to prior of the compared of flow Middle received patterns, half be to seasonality guidance cash $X payments. cash

ratio sheet the balance leverage ended quarter as million includes debt Our of purchase with remains Xator. for strong X.Xx, price the from impact which we $XXX a net the

ratio XX-month Turning the book-to-bill contract book-to-bill million, representing second of a to quarter, of reported $XXX also trailing On our awards for ratio bookings basis, X.Xx. X.Xx. we is a

first backlog quarter annual the than to represent two in-line Our of at quarter of end a backlog the XXXX second and total totaled more of revenue. billion $X.X continues with little years

turn Now, to our guidance. let's

the of adjusted EBITDA guidance We’re to the organic ranges our increasing in and year, outlook Xator our the our remainder strong XXXX performance reflect revenue and operating year, first the acquisition. our half for of

offset reiterating We transaction by flow with are our will were our be guidance results first as in-line and generated expectations cash cash by outflows. Xator half related flow

organic range of to are our This strong increasing the million we Xator. XXXX, our $X.XX well XX% growth, growth as billion. represents from $X.XX revenue $XXX by billion of range at midpoint the For million $XXX contribution approximately reflects to as both and

which $XXX between to range EBITDA from adjusted million million includes our and Xator. $XX increasing are approximately We $XXX million,

ranges. of the adjusted our Our our EBITDA and X.X% guidance revenue margin at is midpoint

As indicated expected adjusted guidance our remain and flow of net are million to million conversion free we cash cash $XXX approximately at earlier, $XXX is to of XXX% flow income. reiterating

over As to quarters XXXX XX% to second the we total grow relates to revenue, year X% revenue it prior approximately periods. third respective fourth and the expect half in

of for rate a growth the with to the EBITDA, terms and of guidance we both in fourth get quarters third midpoint adjusted XXXX the year-over-year X% growth quarter expect In of to to fourth XX% range. higher

been of sequential Slide improvements continue updated in have outlined PowerPoint we call cash Other the key on flow, presentation. that, typical XXXX Carey. With consistent today's cadence. turn and with assumptions guidance operating XX our balance year, I'll quarterly also our to in the to connection are with throughout For back expect the

Carey Smith

our results. Matt. revenue We I'm very significant both in-line growth segments cash pleased delivered results you, Thank expectations. with and adjusted with and business quarter second our organic flow generated in EBITDA

an leader. increasing shifted laser we're delivering continue consistent and a can on we line in place where is our Our flow, the to merchants on to remain leadership and improving we Parsons and business cash We shareholder where budgets. stabilizing value. a into on top focused growing team drive industry focused capitalizing transforming were results position from so We've

would to for and I team always, missions. entire tireless our dedication our thank like efforts As customers' their to

foundation business line the achieved are our for open of that, ongoing operational employees Our will excellence. not we and now their have could goals the without questions. commitment our to With we

Operator

today first will Sheila Instructions] And Kahyaoglu our [Operator with from you. question Jefferies. come go Please Thank ahead.

Sheila Kahyaoglu

morning, and Matt to guys, both Good Hi. and George. congrats

about growth organic, there Solutions? be guidance the And you Federal and improved your $XXX that end by trends any talk here? a in? what, just revenue completions So, can million, of? contract organic What kicking $XXX of we on aware restart from markets going with other maybe million in what’s should of sort really Carey, Are different within

Carey Smith

Sure.

thank ticked the contract So a XXX question. XXX them years What's Sheila we of you million. most of on two the all for lot organic is over were growth past greater won million, they had and around awards really single than side that

we've been contracts. much to single aligned to what IDIQ this is with they're time. about orders those those What's So national award able onto do very at needs task security important know is drive

Department focused all of missile critical on [quadrant CXISR, our [ph]. and contract on FAA important the areas defense, as and infrastructure our We've contracts such cyberspace, contract] improvement side. Defense. seen Federal some that's they're for So, protection, And also the in

programs the Middle driver strong has large continue. we've oil win the and been prices. programs, four that big to right the but East Infrastructure Saudi out gate. of both XXXX, moving on They've their those and fortunate contracts Critical has Vision the left, based as the to growth we side, expect also been part to organic accelerated Middle revenue On The the been East in

Sheila Kahyaoglu

And quarter. to Great. just bookings being ask I the little a in later then on wanted bit

revenue half. you I mentioned have be an quarter versus And this FS the out specifically? for time bookings] [ph] [what the How of second historically? do we think you should looking much visibility improvement in in

Carey Smith

Sure.

go again just awarded. do we orders. So, values got that already task and to good we've because I'll back and the ceiling won large We're have visibility it's been revenue those already contracts driving we've

if able strong get goes is we've industry contracts. larger So, that very Team's a we're I lumpy, with and like think is defense proud sense fact for IPO it we're drive and leading. really Book-to-bill we to us. such that's matters revenue these and award where the been obviously single our book-to-bill it's in best would inherently say just really But with word so, strong overall, and of interesting revenue, the missile pleased mostly we are quarter, contract I'd up. that

XX% If at year-over-year. to to backlog unfunded in up I backlog, going to been And move was our you able our highlight, Federal we've backlog funded also, look funded is

Sheila Kahyaoglu

much Difficulty]. for guys. so that you, Thanks [Technical Thank

Carey Smith

Thank you.

Matt Ofilos

Thanks, Sheila.

Operator

And Truist. Tobey our come ahead. with Please next Sommer question from will go

Jasper Bibb

Jasper questions. Hey, Toby. morning. on taking Bibb good This Thanks our is actually for for

been quarters. in could expectations going provide you acceleration there's a on are impressive communities was more I just past hoping in color forward? a connected bit the and pretty that business So, your few your what progress

Carey Smith

Yes.

board. had So, we transit communities. won business. new up to [indiscernible] We've been We've we've wins. some across fortunate the to aviation We've win are thinking had wins. I also mean, it

also year a having that's write-downs not one we the would biggest like large I and a ago. So, write-downs, did been say

Jasper Bibb

a speak acquisition, to then Department to then to you State you're the of opportunities customer? profile the with recompete seeing business? ask can I of And the access And that Xator Okay. giving as about what just wanted

Carey Smith

missed part. I caught second but I the the part, first

what part So, question? second your was recompetes and the of

Jasper Bibb

giving with as State customer? Department access of to opportunities New the a

Carey Smith

Certainly.

they recompetes, have percentage. low recompete the on very So,

competencies, to with that that performs about and ran their see, is you security, of secured the And look were can we core most enhance State. if and major that not intelligence, our director State. there years security. have processing that would actually biometrics we signals frequency, and of And more work X we is there's capability, our Xator work our building done diplomatic of large area of they we provide our opportunities the out our critical – bear. with Fortunately, security and capability. diplomatic we look is across the XX for between focus with our can radar We diplomatic Department of with then largely Department years can bring in all solution capabilities we contracts cyber The additional security, radio capabilities if a counter-UAS back team can example office with. with and provide directors that have other infrastructure be, you great A to beyond overseas office also most

just Department [ph] potential see the State. with the [part of State, we not growth of of current So, but a across the] Department

Jasper Bibb

Makes sense. Thanks Okay. everyone.

Carey Smith

Thank you.

Matt Ofilos

Thanks.

Operator

go question next come with will ahead. Please our from Subin Stifel. Bert And

Bert Subin

Hey, glad dose Matt George's I'm of good morning to departed. before knowledge and small encyclopedic got and congratulations he to George. I a

Matt Ofilos

Bert. Thanks,

Bert Subin

So, you. Carey, maybe for one first

year, You that acquired in outlook noted you've additional in that a $XX reason sales as XXX but million that EBITDA, no conservative organic there a updated that think with or what view update a for is Xator? guidance? million I so the Is EBITDA increase you beyond just for essentially taken you assumes a

Carey Smith

thanks year measured always for we the To infrastructure, that X.X% the That's date we've be the rest in important Bert. margin as need to the for for the on to had for We're X.X%. very to midpoint, X.X% focused at guidance. of Federal low providing question, first, us. happy the aware with get Well, you're We're Xs, credit growth to year.

we can change will this spread the the very order confident the venture project quarter. And order that also that years. over joint is achieve good midpoint. on did be overall for mentioned Overall, it's George be million year EBITDA, change a X.X it will three We because X but this million, an thing we're quarter. unconsolidated a And that additive have for last next

achieve. we providing again, did had If we you really in look QX, X.X% last X.X% and just going about at to QX, we're historically in and what guidance it's measured year, that

Bert Subin

in sort benefit UAE awards be tailwinds Makes follow-up, from rising, then ultimately the at getting with too? noted systems project presentation, just this Carey. from the to you growth the what X sense. expect noted the traction do you're expect East you least of you And guys Saudi Arabia? increased for the you infrastructure? U.S. in question defense side, Middle in critical missile lever largest a And Thanks, department Clearly, the missile follow-on and approving similar a, state a there, and Canadian any just on incremental infrastructure the defense billion are in there as do

Carey Smith

Sure.

So, a going one in the would time East to short-term, What because programs significant pulled and Canada the be win is the done And Middle the why the is first awards roll-out. in was will is, say Canadian to ahead that's I East States for the more us. driver able recently. Middle because has a their passed build of infrastructure left been is little major that's infrastructure build take really XXXX. we've the four United to just

such several kind run those of in with Federal planned upticks infrastructure they're the timeframe. our on rate largely already FAA of more But act. [indiscernible]. starting in contracts funds, So, already full what and of to expected start We've mode. to funds type and from for received XXXX with We're as see we

implementation uptick, As the some UAE far things the systems installation the with we where design. and do supporting contract there. couple we're in Saudi a involved Arabia, as have so missile defense of Army Corps we In and the of a

[ph] missile more the Guam, is an that new opportunity on opportunity there. [indiscernible] would The Patriot for like, be would So for if [INDOPACOM] system, focused get area, expect really us so for so, in we defense us. uptick they're been and that's biggest would on of defense buying that I

Bert Subin

Matt. congrats and Carey, Thanks,

Matt Ofilos

Bert. Thanks,

Carey Smith

Thank you.

Operator

go our question come And with Sachs. Parsons will Gavin next from ahead. Please Goldman

Gavin Parsons

Matt and good and to Hey, George. congrats morning

Matt Ofilos

Gavin. Thanks,

Gavin Parsons

the if more what mentioned half you to maybe year a back to you this charges just, or last on Infrastructure the Carey, what margins to I of confidence of were in and a margins in were to you gives the little could. back detail up? us of guide, give on little to that but and bit the that headwinds what there need see spend dragged kind quarter able Matt, few each quarters time want can Critical get maybe you more we being more get there the

Carey Smith

Thanks, Gavin. Yes.

we're adjusted overall, EBITDA our in-line first, would and guidance, but I organic the into expectations three them So, our holding dollars EBITDA put with dollar buckets. were

leadership category about is a able investment have talked needed team the and that on perform been to was East that what I winning staff The ready Middle people win, to growth. one place do in we've first in we're also but to we projects network. of day up

spent in we money, as investment as some So, well proposal mobilization, Been there. recruiting. for

The all fund – second margin. and are category three equal, kind these of

second a way, on The talked to material. were we've programs that growth all on is those I'm cost legacy on the three, three call. cost category the for while growth and about the the not happy – they by

in operations, one kind that hit million. that have is program one growth so completed no materiality of first the was one to we're there threshold up our So, $X X. But of cost the programs, down we on those

program year we've The up this year. second to of as wrap the at for been on end track still last indicated we're the

next the year. one only one is third The goes into that

are We and minimize. see starting this significant charges Again, write-downs quarter. to no those

efforts. is those on execution program the improving So,

program the was smaller have in wrap-up category some ones that completions. up the Middle North East in third ones wrapped those America, had Middle in and been that then we've the programs replace America. but The East We awarded North will in

Gavin Parsons

Great.

revenue organic us update Kwajalein those and contributed the fully programs in normalized helpful. the you On and how an are those just FAA this tracking, year? much if COVID That's can Federal on growth where or growth, now Okay. give like impacted Solutions

Carey Smith

definitely act and started to Systems of running. The receive part, quarter. And contract Those fully already as fact, for in and Yes, second up they're they're is some FAA in this funding levels. as the were particular up pre-COVID in because Engineered ramping, very contributors far Matt? strong the they've infrastructure

Matt Ofilos

quarter. each the think $XX one I about for of So, revenue contributed million

Gavin Parsons

a you maybe way to just on much there give in Federal, total how and we visibility moved one just years? know then much orders those get few ceiling but that task backlog have good great. reported is on recognize is the don't them. due ceilings mentioned visibility just that in backlog you do I Okay, last over need And one the you you last to hasn't higher the last the years can guys over think about that up much way, IDIQ

Carey Smith

booked and not put won backlog. about probably billion we X We've have into have yet or that

Gavin Parsons

Got it.

you all. Thank Okay.

Carey Smith

you. Thank

Operator

question go from And Please ahead. come Sullivan will with our Company. Josh Benchmark The next

Josh Sullivan

congratulations Hey, Carey. good George. morning, and Matt, Welcome

Matt Ofilos

Thanks, Josh.

Carey Smith

Thank you.

Josh Sullivan

What the products UAV And expect counter the margin see and Xator the long-term to with might biometrics hardware then road? influence hardware, long-term cross current down the services the the in between more looking to balance strategy profile? opportunities is we just acquisition, how portfolio. of at that growing Should

Carey Smith

Yes.

really on M&As basically focused us a all chain have prime we've win that's and up continue, that predominantly being bid do what's we but of some you where products, where solutions integrated it's side, jobs. been moves house. focus products have us our focused to we're on product just think offerings, the that's It I portfolio, provider enabled side been. and our and the an value are infrastructure We also to and that critical these So, that's really From on. can hardware not software federal software and of see the expect the larger but

Josh Sullivan

here? you on the in it. labor Are do as any increase Got see front And tech recruitment [ph] inspiring] seeing companies large [stop what you then availability? measurable

Carey Smith

Well, first, of recruitment proud the past our say really for year. we're I'll

on we quarter strong grew hiring. a quarter at actually over was which one, two look XX% you If quarter,

If a just that companies, is over since grew June Overall, think job part I'll on at this of really year, the were XX% from year, first that we and of but good strong companies. and tech IPO. half very last was say which is hiring May our all months team you our best tech recruiting. of is look doing from second the I of half not

Josh Sullivan

Great. Thank you for the time.

Carey Smith

you. Thank

Operator

Instructions] Cai Rumohr next come [Operator with will go Our from von Cowen. Please ahead.

Cai von Rumohr

so let congrats me much. Thanks everyone George. in and to And welcoming join Matt

think budget anemic I'm same I Fed that pattern expected very much mean, XXXX revenues So, know pretty with the little better with I as confused generous. [indiscernible] everyone was FY bookings and was a the we your than Solutions. yet and

the expected in for we we budget but to bookings? QX, in terms QX? your what see and flush Solutions So a blowout – super for guess, there mixed, expectation I What's Fed are expect of QX comments where going should like

Carey Smith

Yes. Thanks, Cai.

book-to-bill of a have XX really in large these super We awaiting get depends program award. not It expecting inherently again, is billion adjudicated. flush So lumpy. when notice I'm do QX. awards

programs So, for greater number And that, have we XXX is a us. XX than which within big million. that are

So, it's those. depend the of really going timing on to

million in Solutions. is that protest million XXX have of that Federal also and XXX is We

of So, fact and to how that we very predict and get again, on the depend when protests we orders really why are proud these depends we adjudicated. have I'm really them. because to don't drive have once task that tough those to that's on and the it always can IDIQs Bookings

Cai von Rumohr

the IDIQs, mentioned what's you had expectations? kind after, on I mean, the the four also task those, you you those? multi-award of any the then – expect been do you And I book you. the assume has What Thank order two And book of two quarter, activity in orders. you don't task only

Carey Smith

Yes.

those So, awarded. were four just

that task orders. that There they're threat so So, our – we any new. on has protested, Other in we too contract protest defense have order the I is task was mentioned queue. don't reduction than one been that, that yet just

Cai von Rumohr

And for an broken Vanguard last this opportunity is, contract, know, to I Xator? State is Great. you is has as that one guess be going recompeted with SAIC up, of Department the and that

Carey Smith

opportunity [I [ph]. at, looking we are an is that guess] It

Cai von Rumohr

very Okay. much. Thank you

Matt Ofilos

Cai. Thanks,

Carey Smith

Thank you.

Operator

[Operator Instructions] ahead. question from come William DiPalma Louie go Our Blair. next will with Please

Louie DiPalma

Carey, Matt, morning. Good and Dave.

Matt Ofilos

Good morning, Louie.

Carey Smith

morning. Good

Louie DiPalma

My on job. order. Matt your and several roles year great result. as CEOIS relates $XXX million the Everyone the congrats task such to you new last question won on contracts George and how

billion you those contracts drivers X% this contract, a classified organic the or for key your $X so were think growth million Faroe and three won I contract quarter? program separate Mine the XXX

Carey Smith

the were drivers that two CS. The main were and CCMS

Louie DiPalma

have And or Great. expect that quarters last you from these growth continued we next contracts fully ramped over the year, have coming large them? Carey, they should won

Carey Smith

the the pretty pace first now So, and other ones we're pace. contract are They're at the picking a same rate CCMS. booked. good right up on run fashion. [CS] up the was picking That the [ph] in

of award because this external expect orders contracts, one the awarded at best XX has was IDIQs driving these first. you be task time, run would We would to that which I'd rate it we're have but roughly that say the single CCMS

Louie DiPalma

position highlighted infrastructure like would opportunities you have right their infrastructure now? are hot for Xator critical for Parsons a how Great. And for the I four mean, infrastructure acquisition, security, the utilized Xator cyber of as topic bill solutions how security critical is

Carey Smith

Yes, great question.

on it So starting in protection, infrastructure built act, resiliency. Xator the their bill we're resiliency Any cyber infrastructure component leverage Based and critical there's to and XXX is qualifications. have does to system. and billion that's funded that for into the work infrastructure cyber in tied that gets supposed to always within

think airports, to require a all role And where good or transit we ports, about So, rail and if those are going can think play. to have systems Xator you or that's security.

Louie DiPalma

what bill you pipeline Great. said in of deliberate does expect now? here? like of overall? And seeing one, dispersed, right have the look related very Some ramp funds like your you peers like overall pace the of infrastructure from have And the terms that do being activity final are to been what

Carey Smith

Yes.

have level some So, the as work the for a budget Metro example, longer you I use an local, a They we do, FAA kind could federal you're down all and blurred and applied. because it [Amtrak] for being takes to with if and example. gets little I we're sort federal funds Washington see blurred, performing. get have it's flow of state facilities, because, funds [ph] or we're mostly the gets starting infrastructure seen that and the some that use first through budget Likewise, of but to could and

we'd a see grant programs when XXXX being again, already from funds are are new being purpose, grant said up, already, stood we've always would applied, programs to but ramp. Formula bigger expect a be out planning are existing rolling

Louie DiPalma

Carey. Thanks, everyone. good. Sounds Thanks,

Carey Smith

Louie. you, Thank

Matt Ofilos

Thanks, Louie.

Operator

have And that's questions for time the today. all we

our session. any for remarks. question-and-answer to So, closing conclude will conference Spille this back over I'd turn to like David the

Dave Spille

joining Thank this us you morning. for

call any a with And have great over to hesitate we'll and please with weeks. that, forward end me look you the many don't of coming you a give we speaking If Have day. to questions, today's call.

Operator

presentation. is concluded. for you today's conference attending The now Thank

time. at You may now your disconnect lines this

Parsons (PSN) 3 Aug 222022 Q2 Earnings call transcript