MANT - Earnings call transcript Q3 2021 | Mantech International Corp

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Operator

Ladies and gentlemen, good afternoon and welcome to the ManTech Third Quarter Fiscal Year 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later we will conduct a question-and-answer session and instructions will follow at that time. [Operator Instructions] As a reminder, this conference call is being recorded. I would now like to turn the conference over to Stephen Vather, Vice President, Corporate Development and Investor Relations.

Stephen Vather

everyone. Welcome on call. participating third ManTech's for quarter Thanks

Joining and and President; is Kevin Matt Chairman, CEO, Phillips, our Judy our me COO. today Tait, Bjornaas, our CFO;

from historical statements During are pursuant made subject anticipated forward-looking could Reform Safe the the that do will Act call, of the thus cause make to provisions to Securities this not forward-looking factors we to differ address actual statements Private facts Harbor statements of and are These materially that results. results Litigation XXXX.

today's For discussion and these Risk and financial uncertainties, update some On Form a useful SEC or factors will please our statements to of entitled substitute should obligation other believe XX-K non-GAAP any in provide a isolation GAAP section this call, filings. measures, the for we of be performance made full non-GAAP no other We investors. These not as for and information measures our refer risks to call. discuss Factors undertake which in latest the forward-looking we evaluated on measures.

on find discussed the over let hand Kevin. call a of in earnings call With non-GAAP reconciliation me the third measures that, to can release. our You quarter this

Kevin Phillips

exceptional and profitability Thanks ManTech third cash everyone. good the Stephen flow in afternoon and delivered quarter.

in growth fell revenue bookings expectations. However, short of

remain industry intelligence continuing feel enterprise chain namely lingering both three return Unfortunately, to on to the in in IT, our positioned navigating within for position are intelligence areas our offerings. confident drivers across foundational slower market. priority full environment, hard continue We penetrate remains key challenges other supply complex cyber, data community which tight supply our and the We demand and That expectations chain. uneven we mission-focused from are our impacts fronts; a for outpaced the said, and fundamentals business for serving operating long-term our and of the customers, attractive market. analytics, our pandemic, and We the in intelligence is we our spectrum and secure us. customers in solutions creating mission of the trajectories certain higher favorable, and growth the labor challenges, Operationally, the community that see recovery durable market. to normal

in impact, intelligence business and several take quarters. meaningful expect overall performance. award component However, higher the Intel may near-term, to normal which that ManTech's the in evident face our and return continues to our is of amplifies relative delays, that to pipeline customers exposure a we more

chain. supply the Next,

While we less the timing customer demand material and trend is the hopeful procurements. challenges but to path of are is to clear, normal that predictable, much the supply near horizon. a on significantly become level impacting Similarly, chain expect this linger,

of Finally, among on executive tightening the workforce have labor vaccinations we are in affects a will seeing requiring the have what order entering market the quarter about fourth and uncertainty effects and our XXXX.

We the efforts have mandate, the but still remaining deadline. to prior December with close comply work some to gap made to this concerted have

thank revenue low our a that single-digit supported this over overseas shift and defense we for dedication mission overall operations related short-term, is of create March the last overseas Turning are in balance strategy peer headwind national and support on employees into and departure the for our one in shift around over from near what the to the clear In we year see to this the counterterrorism to two from focused Afghanistan, threats. that contingency will Afghanistan years. XXXX. proud their is as to operation a the Withdrawal have in decades U.S.

operations the within is the Additionally, SOCOM-focused a we reductions anticipate selective and of ManTech project are beginning in see war. support cold to Army. field

course understood need evolving the of well to mission than adapt have to we the greater requirements. Over years, XX

aligned, vast pivoting with natural and the focus, future coupled in the peer near the remarks, to years. to mission. earlier occur to constrain In program is balance moves organic that near-term last growth level discussed few the well mission compared we my aggregate, of are factors portfolio conclusions the As every of majority a this will our year

of XXXX We uncertainties. for our are headwinds and review recalibrating XXXX revised later our as expectations performance, a year-to-date our call. the outlook on result will Judy these and

that other Moving focused under early through core agenda to priorities began status resolution, on road the ceiling appropriations, ManTech's to shift the continue quick continue to investment of year congressional clearly infrastructure, map. a Irrespective currently our continuing to budget of the align priorities fiscal update. remains right. The lasts government We appropriations December. cause capabilities the with and may well have a debt which defined and customers to that

and warfighting space the near-peer cyber partly of both driven focus. by domains First, growth

need notably, data modernize trend at IT, meet edge. the software Second, tomorrow. delivering the and greater analytics, the broad this are complex, challenges but we to today and within and automation, The customer need of to for and systems are needs seeing

M&A, nearly family. gear. as and of an certainly how discuss sheet into We higher as continued welcoming forward warfare Griffin for the to implementation avenue technology builds intend employees position active customers robust, balance systems going digital increasing about we will enhanced digital traditional additional traditional and and has intent supportive into should full Technologies think the value-accretive of important our pro capabilities. million. we forma business capabilities is acquire the of operating you and to Recently, our an peer adds We on a engineering into Griffin's for is and posture with Judy our Lastly, rapid XXXX. The announced acquisitions. for maintain been near $XXX missions importance. -- to Demand and acquisition organically to Defense see the Department focus X,XXX these this ramps of look growth ManTech

operational the to it turn over I'll Now, to Matt? cover development and business Matt quarter. the highlights for

Matt Tait

we approximately in booked resulting of times. million $XXX book-to-bill you, Thank In contract the in Kevin. a quarter, X.X awards,

in of within and recompetes outcome signature-silencing systems well major and as engineering naval, work. quarter RDT&E support well incremental propelled continue include contract we book-to-bill drivers quarter the X.X on-contract retention in important existing trend. two the came with Our for capability a a times, programs. These by contract intelligence enterprise and O&M are contract XX-month acoustic sits force Force, to were in $XX winning other principal bookings bookings growth. million to continue Bookings priorities the last the providing That There to below the resilient seasonally DoD. as also space the Furthermore, and $XXX light surface as of pivot as million the were integration parts majority were expectations. for submarine ratio at that Air Navy a providing QX the The said, our to systems engineering. continue with Navy, launch the awards engineering in strategic and awards services demonstrate multiyear pleased our with into of a of strength

last To First, community the versus the more close overall bookings. the as earlier, meaningful Kevin pandemic, bookings than it averaging color, was a months, discussed have we customers. over add within less ManTech's prior comprised to total our of company's bit Intel of quarter lacked bookings intelligence to XX adjudications a half

new we This Federal our pursuits on effort large penetrate of demand. markets business into will a that less Business. persistent is new, Second, successful concerted have desired part Civilian in to our were than

customers expansion into defense, existing to ourselves advance make position federal support security to continue other agencies. will homeland and our intel, we while strategic We to moves

recompete representing percent and $X.X total healthy our growth backlog funded We $X was of of backlog new billion opportunities. three $XX.X billion quarter result quarter a mix at these year-over-year As business exited which with with billion. in a proposals bookings, the outstanding, nearly end, at has

We positioning are continuing to key are prosecute and and seeing driver adjudications competitive on remain a bookings. our submissions. cadence to our proposal the steady timing, pipeline of volume, The quarterly

pipeline respect fine-tuning We outcomes business continually maximize our optimal conversion. process are to development with to

to a the minute over call like welcome Judy, I team. to would newest take leadership member turn of I Before the our to

Head have experience to look his has We Judy us further valuable turn our base. technology more Hathaway leading focused leveraging affect and are solutions I array high-performance to discuss With across missions. initiatives an the to detail. like over excited our it our of to results DoD to business. of join in defense David financial strategic, expertise bringing that, customer operational, our forward David significant to on Defense I'd teams, technology to as

Judith Bjornaas

revenue which QX million, due that flat revenue referenced earlier. Kevin was short notably to compared in of expectations, Thanks XXXX. of QX Matt. $XXX most fell was to ODCs Quarterly the delays

Additionally, an usage labor turnover PTO direct in increased uptick contribution and pressured quarter. in the

million resulted their as $XX diluted XX% continued margins was million, up of from work. contract was XX% We basis was Adjusted continue also last to closeout a spending some $X.XX, labor EBITDA up from a XXXX. come an overall net stronger year, EBITDA income margin QX one-time to in quarter was benefit QX natural saw million for respectively. of EPS diluted related indirect and for end and and Net the benefit was adjusted programs international from year-over-year XX% and under This up some from mix, respectively. $XX points up cost in XXX EPS XX% QX, QX. income $X.XX, XX% $XX to XX.X%, and

rate was expected than at Our in quarter. the higher effective tax XX.X%

quarter, and strong was debt. now million balance robust operations showed in XX Turning no cash $XXX net was quarter a balance million X.X from the and income the $XXX to At the end, a driven statements, which of flow sheet cash cash and days. represented DSO flow times sheet by in

steady a authorized of Additionally, to dividend for in to $X.XX million The through has long-term return share Board per to shareholders. in our paid reflects Technologies capital maintaining of cash our of in QX, December. us acquisition deployment value we distributed M&A. creation Griffin continue to commitment The current cash $XX dividends be

intend Kevin to mentioned that additive on continuing we our active opportunities As to position. and are competitive M&A view remain by to we review are earlier,

of expect leverage. times acquisition the have to Following we approximately Griffin, X.X

guidance. business remaining for are increasing ODCs, EPS market from income more net diluted impacts our labor previously for on current guidance Moving based from adjusted competitive drivers market revenue revised new reflect reduced the a The we performance our outcomes likely to are quarters, pressures delayed on and and and decreasing communicated factors. and behind continued the guidance adjusted contribution. to year-to-date

billion is guidance representing to to $X.XXX $X.XX year-over-year. X% billion, revenue now X% growth a Our

increasing adjusted $X.XX. diluted to in with net the to EPS be $X.XX are $XXX.X $XXX.X We million outlook of adjusted our income for of million to range

be over tailwinds which basis responsible are also for XXXX. closeout lighter improvement for from lower EBITDA are would and expenses full strong ODCs, fourth M&A-related the nice a full these margin year for PTO trends contract spend year XX our approximately primarily In the year uptick margin a and represents Many XX.X%, utilization. but quarter higher, are net the expected tax income higher X.X%, The margins points EPS some onetime management, million XXX XXXX diluted that basis point will our outperformance assume of normalized and adjusted shares. of for guide, indirect adjusting share adjusted when continue approximately there increase, QX of which cost the our greater to includes than total, the same higher drive We a rate of increasing XX% be factors, of ranges fee average pickups. Year-to-date, EBITDA effective consistent, diluted level XX XXXX. known to margin count slightly fully a and approximately

$XXX than Finally, least with touch X.X% than for at revenue flow thought is at operations be cash lighter the a to expenditures from year. less previously capital still expected to be expected million, of

gone our performance will through that impact XXXX. have of a we call, this for factors number financial expected During

offer XXXX premature is provide it to commentary. we guidance, wanted While some to detailed directional

the X%, least full total expect at We of which year of contribution is from growth inclusive Griffin. revenue

a in in a of issues our continuation XXXX. We of XXXX, of number are are factors second we many which the with are of the half dealing assessment considering of

wanted the of the to our cross change view. our walk impacting in trajectory, current major each expected I near-term Given factors growth

another that to natural normal and uncertainty our have supply of on we it earlier, and sustainment-related approaching year ODCs. that Intel but As programs versus the and chain program is with inclusive to full level Matt new efforts, the related fact year growth mentioned work; certain year-to-date the respect of to revenue. will of conclusions, of new include field a been XX% disproportionately not headwinds the recompetes limited the efforts to existing bookings and expectation Afghan Furthermore, lingering timing have business of impact

Moving on to margins.

are in flat Our X.X% EBITDA EBITDA points our which normalized and extended but The range, are basis potentially against XXXX XX potential our up guide, implies margin. business for business impact next year to risks into closely fully that margin X.X% monitoring, the to lapse government disruptions the are factored the from executive we in order are of the not funding. to expectations vaccination a

business the is factors. Our into visibility confined the current XXXX and preview to market

our on guidance to earnings this refine expect We year-end call preliminary in February.

to remarks. Let the call for closing hand Kevin back me over some

Kevin Phillips

is growth continuing and to conversion, acquisitions focused on value. talent, Thanks long-term pipeline to drive deliver Judy. our attracting keenly to team recent capital leveraging retaining In shareholder our closing, deploy and

some in discussed work, are greater we great our market demand a and technology-enabled experienced seeing detail, cyber we needs. more but areas towards As shift in mission of

customer capabilities Our and priorities. We're to national questions. of sets are differentiated take aligned portfolio now well your ready to

Operator

Wells Instructions] [Operator Our from is Matt question Fargo. Akers first from

open. now is line Your

Matt Akers

Yes, Thanks. if you to business coming slowdown back I to some that could you of of seeing? or your the a to I new funding intel. staff bit does customer hi. start you're of And on think think again? what lead sort what little Good comment specifically, contracts you us I to mean guess, -- get or afternoon. of kind out wonder do through get kind those the that need needs do of slowdown or more to add happen will for in

Kevin Phillips

budget again office I'll physically as by to ability The about the the bit role do it's back in he have community the staffing Intel continue a ability both. make organization. they has and then the of down to of of Matt be It's impacted then where within more XX timely their the outcomes having has back out Kevin. they requirements. constraints, are timing we months. over coming in and fashion the their mission to of add, if to their needs, COVID It's a and disrupted what job awards community Yes, been their in get coming and to send open, definitely as combination be in well or adjudications to combination a speak wants found shut It's do in when persistent. the is government a little not to that the But about that of can. intelligence last

Matt Akers

I in Griffin. general, Got is deal in more, of to seeing one multiple do kind it. just of that of comment or could for the Thanks. -- of on competitive Or And then what in of I in space how M&A that? just general? what kind able guess you just paid terms multiples if you maybe sort kind you're Are what for

Judith Bjornaas

the able the enterprise. Yes, I comparable on we for digital leverage that a systems capabilities think multiple engineering, and paid focused to assets, engineering being market we're across -- really

Kevin Phillips

combination ManTech. And I'll add. of into Look, we're excited about Griffin the

of this have engineering we've very the how digital a going in, very support Pacific is the think, The they engineering, heavy investments complementary. a Naval of about surface We analytics, presence, work but offer I shift view to and are we're type Navy compelling what along do their as and of the data with to Navy continues. systems combination the invested

peer we that about against excited together can pretty and we're forward do what new So, the near coming going focus. threat

Matt Akers

Thank Great. you.

Operator

Thank you.

of line from Stanley. next Matt Morgan comes Sharpe question the Our from

Your line open. is now

Matt Sharpe

say, is to, environment? of a question to between could revision how deal. congrats about million. much I it Or Matt, parse challenges more Judy, longer was is you how is just $XXX expected? and community tied in on and the wondering your the tied Griffin maybe guide down And on just of Judy, the business reflective if that that the good supply the a Kevin, than persisting are deterioration much Intel chain? afternoon revenue is

Judith Bjornaas

longer expected the year, I not taking were than the those in is half challenge we're seeing mean, the more XXXX we the and it's that. to we expecting ODCs, levels of second had just think the in fully I we return expected. to

as unsuccessful we and And there, the see unfortunately, would some bids that larger we return. assumed the bookings, market went for Civil Intel the were did we in adjudications Fed we had far of after. As some Business

basically, built So, of we new kind any the have of the year. business into second half

little than the guide. I have for of then Afghan was think sustainment bit most came and part, our bit expecting. Now, little on a work and we larger de-risked out were just faster And we the a

Kevin Phillips

about sustainment area, one support the Kevin. around is persistent in up there It's and military that's I'll add Afghan. because fuel persistence

is quick. that fairly So,

of some systems to single-digit. in But look these the going more are support They're year over reducing systems of in XXXX funding. next terms have time. that -- as two-year total, combination you that's significantly US-based terms supported towards high well revenue XXXX a as the long And for year. into from low also headwinds, there's be region a that if weighted for period, the of OCO back half single-digit and heavily drawdown, In of this the work that to

can its that's military these result of thing for you We've Now, some the shifting that programs. of it's terms that good those for a of as done is But see that their well. to a in support drawdown decades. -- systems focus as support definitely

Matt Tait

in fundamental getting think, right We those our be see way. like though, we that have able funded strategy opportunities XXXX, moved long-term. the business mean are do to the grow to that there I to things We still in

Matt Sharpe

we and a it, helpful. the otherwise employees of like back risk might percentage to currently Got risk provide alluded you that either to unvaccinated any your risk Kevin, just the around able you this are some to end associated with way of year, then tied EO? context of eight the what to of remarks of December think year introductory COVID-XX. And into the on I'd the by about that's sort mandate. vaccination around or to next how be think the should Are or

Kevin Phillips

to hard really thing a determine. That's

that what time to the our We that trend of that's out don't have if is is zero anything each above are quickly we by to the market, and we line. date direction closer it's risk. a customers, to the a needed under we workforce given to But That that. tight And and said, how we that XX% together have to think our need is allowed exemptions get have paperwork And plays that to of yet. to as construct continues in over to note. everybody shots it come what clear has important do get total fairly all labor received right already risk

Matt Sharpe

back I'll it. Got the Thanks. get queue. in

Operator

you. Thank

Our Cowen. of Khanna the Gautam comes question from from next line

open. line is now Your

Gautam Khanna

for I put all could Hi. headwinds the it you known was if on together next year. wondering

And low the decline single-digit from so from about Afghanistan. I heard withdrawal

number then a if or wondered could just whatever about I that And the something other single-digit So, known $XX topline. you But the related some decline then something I business. headwinds. heard million is if X% to aggregate in you is And high is in of can a year, backfill big it? Anything how give And could that How can model also, for you Griffin? us so we next large correctly. how this is much that?

Kevin Phillips

a Kevin, high level. it's Yes, me, just

So, when combination single-digit, sustainment work. high I say field both a of Afghan and that's the

and So, of supply that's the going growth the traditional the be that around generally in to risk into pushed year. upward to work. next as well that business in from second of chain total We sustainment from going or where half option likely ODC are about the as intelligence year military the view them terms the new

So, we're being cautious about And the have programs. half. then any growth from those end-of-life first in we

until correct? in I the to And talk about have and So -- think Judy, Is to wait, are composition. we're February, that overall aggregate. I those going to think

Judith Bjornaas

to then what to to just We as out Kevin clearer we'll is given and go that kind set going have -- kind around like. a level and mentioned, able wanted of the we'll the in February, on be some acquisition look until headwinds Yes. just guardrails XXXX to picture lot throw of XXXX,

Gautam Khanna

how topline? for Griffin us Okay. Could sense give is you the at large a

Judith Bjornaas

XXXX. haven't XXXX monthly range to right of close for now, a to mid-XX in to December, it want of at if a -- low if run we kind on projected into see to guidance. I But would you in revenue basis, early mean into it Yes, rate we kind look were be that

Gautam Khanna

Okay. Thank you. I appreciate it.

Operator

Thank you.

comes question next line Partners. Brian from Alliance Kinstlinger of the from Our Global

open. now is line Your

Brian Kinstlinger

to right is margins? the you positions? fulfill employees them, Can The then plan to program. how now the be unvaccinated Great. is that? keep What work like can wages a tight And replace assuming you can't any in share for hiring you Thank if difficult order have labor plan can't market, programs protect Obviously, staff? you. they deployed to into on the

Matt Tait

we're question Matt. for of -- kind which customer-based. this -- let that's Sure, is I'll kind is start everything doing of But a with me our there. we're what multi-threaded employees, is

Intel, Federal requirements unique that. versus all going as versus Civilian defense have we're through So,

being very to with trying to either employee we're to proactive So, we're or be continue accommodation work make opportunity sure giving ManTech. able with that get an to our every population, them

have do plans that. place to So in we

concern think analytics inflation we some don't really of that of So, over around through really but we date item. and we proactively We we're our certain perspective. trying maybe could hiring question to own where I that's proactively have make yet. also answer that. on the your I staff, just is from a mean, work the have ahead think there don't a hair, I be really, have maybe eight -- we've future looked our seen placed where at December wage -- right? areas immediate the hiring sure To issues

do us Although, fortunate cost these plus of that majority in issues. a work work. obviously, kinds customers through with we have And we who will have flexible are we of

to in way that a ways benefit allow maybe and us work us that some can this in through So cannot. others

Brian Kinstlinger

quick is ManTech's? would being My Is to much. EBITDA be days the attrition mentioned comparison historically? there And so follow-up Great. first, these helpful. Griffin. Maybe issue. an attrition compared just you then a a similar Thanks on follow-up, Where to margin

Matt Tait

So, hand over I'll it then and get the turnover you. Judy to

the -- a perspective. back just what a so we're really would going I I turnover what to normal call pre-pandemic turnover seeing levels So, is, from on think,

Judith Bjornaas

rest of say, with XX% program in Griffin is the -- early are that XX% look to range it in the impact general, to And would the XXXX. a line in the business. And is standpoint, then from margin full our margins that our of I DoD

Brian Kinstlinger

Thank you.

Operator

you. Thank

line Securities. the of question next Sommer comes Tobey Truist from Our from

open. line Your is

Tobey Sommer

faster business? you talk inflation, to aspect wage to what primary vein inflation Could is questions. Thank And probably of which to either make relevant us the to preceding that's some easier you. your it preserve of a of or it about margins, the Similar in wage pace grow expand to either it would inflation organically, easier. And harder? ability harder your mean or or make make

Kevin Phillips

me each we for It's talent then those have we often high built mutually if flexibility learn work the we in through. need let come right the can already sets manage Kevin, demand increasing add. through wage is. between or start program, a something go that into make for a can't how the industry that to inflation, just customers built matter Matt above if going It's of does and be wants I the that when and escalation escalation customer amount of and comment to that's and because talent. and the an mean to that in we've to is there's Look, it much discussions across

a there's So, impact but concern we'll level to, Matt is isn't really want have the of creating to something would speak it today see you how us seen it has the plays -- tracking we've any. all market overall potential and given vaccination, we also that out. that Again, of that are if to just it mentioned

Tobey Sommer

first of, you the does guardrails initial so, sort XXXX, into a that guess CR a long some comments and context does -- In if got resolution, expectations about for the quarter I what could -- got into it as extending I how you about And you put your your into? comment XXXX. we of continuing contemplate

Judith Bjornaas

have meaningfully I shutdown not going obviously, that government continuing guardrails. new of we that to those taken is think account. things I for a at taken But is what like and think into out given kind not account, that don't a business that, we've change for CR into the timing looking yes, we're thrown Yes,

Tobey Sommer

and And doing recruiting different last kind the Are then of that your bit recruiting of largely more. utilizing like to recipe delving used same? sort to on in the more historically outsourced activities, a providers Or talent anything little that Okay. for is is retain me talents? the attract something either you into question that try front, just comes in land to perhaps you've the

Matt Tait

so would we with in supplement I where certain resources overall -- will So, say already that. we need areas outside

as we always that that's something -- use. So, a we lever

-- the same. would while say are be more from might So, is we and approach we that I the of processes say that right I would using now, still doing the

Tobey Sommer

Okay. very much. you Thank

Operator

you. Thank

Perez Our the Mariana comes next of question America. from from Bank Mora line of

Your line is open.

Mariana Perez Mora

for to back going are inventories have? they any to it XX question you to like the to awards It's burn Good from be with long backlog award by afternoon. and regarding you your My work And understand Intel conversation get point months. customers, I been think what environment. how view is will would is your the of the be or enough of to exposed time take can or of them actually obsolete die normal, programs we them? And are to able that do

Matt Tait

going we to to -- really quarters. be this, them really I several on expect think it's still So, don't

anticipating half the think to back XXXX question. we answer for what of I your is are that,

Mariana Perez Mora

feel and but you understand us is what give to just And then back new that have you like get they'll makes information, there? little And they'll that I can comfortable provide this normal? levels, those you you get why know any back that you can -- to a color feel comfortable not bit

Matt Tait

on Yes, Sure. -- that's behalf. like without you said, their speaking

I think of people the more are workforce are into the is -- things that the bringing to we seeing actually return business the mandate is the vaccine now. there because

what there yet, there. getting would I is that that an Not uptick they're there call but they're a So, workflow. normal in

of see starting are that. you why more that's signs So, to

Mariana Perez Mora

to Civilian Federal gears switch I'll then segment. And the Okay.

your like what's and strategy give than win pricing mentioned was You expected. lower the going capabilities you us forward? that Can it was rate some if color

Matt Tait

new over and -- that and customers there we great we just what just Sure. need I go is a It's out unfortunate of rate a Federal really we've did in Civilian, and need really on the some -- we moving years, have our work not On think. what do didn't wanted those competitive, focus of to to our pan out Federal pipeline in do favor. win so And opportunities. so had bigger good really, and new that last the some there do couple after forward we Civilian. to opportunities customer intimacy, But so

Mariana Perez Mora

you. Thank Okay.

Operator

[Operator from from Louie Blair. Thank DiPalma next you. Our William question Instructions] comes

is open. line Your

Louie DiPalma

Kevin, Steven, good and Matt, Judy evening.

Kevin Phillips

Good evening.

Louie DiPalma

Matt, bookings previously, have XX%. you XX%, of mentioned how recently your only intelligence bookings they whereas been as percentage community approximately total were a

topic, you seen market fluctuations your As to or your that prevailing it this win and share are in you maintaining regard? rate have relates any

Matt Tait

I the delays. seeing think think industry so I overall is --

at don't retain that the we I do the market and consistent continue from of Intel expect anything have and this in the that win they like recompetes the past. where like opportunity future So, been averages have We -- I our with feel a rates we like we're be losing think perspective, to we within share point. to market and feel pipeline

Louie DiPalma

Great. also prior answer. the to related And

Thanks. development civil Was the Liberty to Booz large mentioned acquired make recently also you On to commentary, anything pursuits. be business Allen unsuccessful lacking? that obviously, that for successful there were IT any program you on you programs? set, more artificial are Do analysis computing need intelligence, lacking? no-code low-code, feel these that know We development. acquisitions you like several awards? larger software for point was specific you for were can specific analytics, skill any that talent Is whether to it's you cloud data there these acquired they like and particular that development, Or there you error software

Matt Tait

Sure.

we as appropriate within any as -- well capabilities and think leverage as to were will investment both M&A the organic business. and Federal advance we to I business Civilian across our entire not lacking So, continue so in

customers. think us, for I were these newer

kind refocusing are we making intimacy so better customer moving sure of forward. have we and And

Louie DiPalma

perhaps that is price program intense there could point very or that the lower civil were those Is And the take to for like large like vendors more like to Great. fact a large won pursuits, competition margin willing for they -- programs these competitive? civil price programs? you an are

Matt Tait

think I but competition price always -- market. the not Civilian, across there's just within Federal

within not not pressure, of call couple I -- but something but LPTA, -- the we -- to -- see market. if that not seeing a asking back that -- what that that So, that I normal really relative would places, swung a the pendulum in like has mean you're competitive to we're

Louie DiPalma

was there's contracts, might to cloud mega it's and a I lot Dynamics heritage -- it Yes, to lot and Peraton difficult it break how of into that and and these Leidos a these seems be with and ultra of and large price General like it to ManTech those types it place referring -- a of SAIC that Okay. IT/cloud and taking contract. providers those seems have competitive, contracts lot as relates mega for competition IT IT for of intensely how there's just CACI, between contracts given like

any deficiency like or it's was are wondering I of on of terms if types in like the if contracts So, to scale margins just those there's you? unappealing

Matt Tait

sets. No, those Sure. types all able we've opportunity of those I'll perspective, a -- well expectation, within be I with as for that to been those competitive pricing competitive to -- say, And a our as think a that's environments from others. be from of in folks it's that

to But do I looking expand have Within we to we the capabilities. The get competitive. do are our you customers and that those. the Federal into. be the us, point, right, just it's footprint. are -- have what as there to for think us, have for working Civilian, capability said, have -- found like, And is your we're we right are these areas we recognized We to newer pricing

intimacy that. where is on of working that so aspect And we're the customer

Kevin Phillips

also enterprise we're go mega after, cautious terms the deals in we add on more how to your many IT of point. that I'll

Matt Tait

Right.

Louie DiPalma

sense. makes Thanks. That Great.

Operator

Thank you.

the Our Gautam of comes Khanna question next from line Cowen. from

is open. Your line

Gautam Khanna

wondering I mind. don't because lot you to -- how of if shortfalls a guidance? far then follow-up, just year, And are like a initial pieces moving relative were ODC there you just mentioned. this the the Hey, was

if were last quarter, was ODCs? to to So, -- quarter, relative Just quarter. next much you ODCs this just how

Judith Bjornaas

of We're going in specifics number, of into go to do expecting we were mentioned, think and it second not accelerate as the year, the the half to but didn't. the I I it --

So, of resulted XXXX it's of the that one the components revision the in guidance.

Gautam Khanna

impair or maybe you effects whatever, Judy, you can't the Is just the ODCs, routers not? knock-on or because that actually to have of absence company's it ramp there the does ability product, it like, one a is also the does whether curious, secondary of the impact like be until direct work? labor? execute I'm --

Judith Bjornaas

take Yes, I'll [indiscernible] Matt let

Matt Tait

expecting, little delayed together. of bit unique later supply together ways. we're of bringing labor question, there we're of part is But this suppliers that contribution I Gautam, how to is I when Sure, because think mean in is XXXX, with that the but kind the goes putting really your a that's from that. revenue components chain kind by It's of in we're

what's we happening. work. that some how when doing so constraints, That's And chain that's we're have supply

a more kind you So, that make that's it level a bit you need happen. platform little what and because doing hopefully, so we're clarity of are gives that on things to

Gautam Khanna

Are Okay. talked be year year. monitoring? the about there individually next ones recompete guys that And we kind large should any of then you normal

Judith Bjornaas

our anything Yes, have over don't that's of X% revenue. we

Gautam Khanna

Thank you.

Operator

Thank you.

from comes question Kinstlinger Alliance next line of Global the Partners. Brian from Our

Your is now open. line

Brian Kinstlinger

were Realizing new that couple Can just give of for you total? quarter of a existing most and September expansion number of Yes, a your small of from of percentage just what the numbers us was bookings that questions. work. as of the business

Matt Tait

quarterly Yes, do I XX% right? The about this that, it new, recompete. XX% bookings can for quarter, was

Brian Kinstlinger

you And that reversal that nonrecurring numbers see debts. the quarter? other lot could is, total the I $X.X were for helped, a But what question the the bad back quarter, in a for Great. third closeouts you of nonrecurring benefits I million maybe it. but that the assume gave contract include into probably the also benefits,

Judith Bjornaas

it. plus still And it clearly probably mean, then indirect half I about a of forward. carrying was that's Yes, part of the that think so big -- I expense

Brian Kinstlinger

more would about second have it? been I is probably for like margins think how quarter, not So, those benefits, should the that if

Judith Bjornaas

down X.X%. it XX.X% the normalizing again, the to of at were mean, guide normalized looking revised I kind full kind for we the of of Yes. year,

Brian Kinstlinger

Okay. Thank All right. you.

Operator

no over time, this to like questions. I'm turn I to At the you. back would call for Thank showing remarks. closing further Vather Stephen

Stephen Vather

and joining for on and interest for Thank ManTech. Chi-Chi call you, your today's of for in all you

be a evening. the As follow-up any will good questions. and team usual, available Have senior for I

Operator

your conference. gentlemen, today's wonderful a and Thank conclude you participation this and for have Ladies does evening.

You may now all disconnect.

Mantech International (MANT) 3 Nov 212021 Q3 Earnings call transcript