MANT - Earnings call transcript Q4 2021 | Mantech International Corp

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Operator

Good day, ladies and gentlemen, and welcome to the ManTech Fourth Quarter Fiscal Year 2021 Earnings Conference Call. [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

Welcome, everyone. ManTech's earnings in participating for fourth call. quarter Thanks

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

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

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

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

Kevin Phillips

is to Their and missions testament mission-first, to to other to they rapidly express customer-focused continued our We situations, you am of of their thank ManTech's incredible and for critical culture. requirements want commitment uneven factors. how Stephen. a afternoon, during market emphasizing I complex successfully and proud I'd agility changing by dynamic resilience Good their personally ongoing our navigated how our a the XXXX, and Thanks, we environment, everyone, and for like business and remain pandemic healthy. among people by joining political hope the mission safe meet you year. families support call. the that customers. employees driven my embody to your unwavering to for sincere Throughout gratitude the I start evolving and

regarding Before retirement our acknowledge I the contributions after financial today Board company. want Pederson's George cofounded we made since of we our from to he ManTech years discuss results, to the announcement XX

As us responsibilities results. had for transitioned that note, expanded guidance. our true George generation. this achieved and backlog record financial to with We we strong previously Chairman with XXXX. and his thank to XXXX, immense partner me grew want I'll And an profit turn communicated now multiyear flow subsequently which on and career and ManTech's our CEO duties I and continually multiyear being ManTech, of offering team late personal caring the expertise has his innovating that an many people, tremendous and impact a he the us know, our striving this initiated to missions. build and to Today's important boundaries core behalf excellence to customers, transition On guide pushing at here played strategy road in in forward. of plan illustrious setting the advance part helped map for the be all to a our contributions. key in levels, for our George were metrics, cash of mentor all in the On next sustained company his will in is consistent you and in that, process. step in been our others. results a me us XXXX the announcement industry. customer a solutions profound margins values George and a instilled to George trusted late consistently a has do, He we

and capital on long-term completed executed we in acquisitions. growth commitment strategic Additionally, deploy our for X the fourth to quarter,

the driving small data forward and TMAC and intelligence mid-December. to our community. to of acquisition services First, welcome to family talented and of We in we that, company to look closed acquisition a Subsequent the growth the Technologies our of together. TMAC, both success announced providing employees Griffin Griffin engineering

long-term Our deploy strong creation. balance drive to value sheet continues to provide shareholder the financial us to with capital flexibility

remains long outlook medium Our solid. to term

constrained virus a recent QX well levels in acknowledge brief with most of impacts, respect to supply COVID-XX absences, contract the update. CR. and respect market. strains near-term which discussed The to labor this the we uptick part an early led more from Adding that, awards, uncertainties me to continuing the the previously in as infectious of to as somewhat effects and However, lingering variants competitive a constraints timing With direct chain COVID-specific in an extended of let quarter. offer labor

market appropriate to assets to continue NDAA. with prioritize our spread Shifting and safety measures We environment, closely of the employees. we to 'XX pleased FY monitor mitigate the take are the of and

However, still March operating the through CR a government is under XX.

that national to We are countering optimistic are recent It evident made and the appropriations advance overwhelming support cautiously threats. progress near-peer bipartisan to sharp in continue CR. there attention is threats to we with potential an avoid receive is another Congress full year that these and hopeful

emphasis 'XX market are positioning, digital and investments of strategy of DoD. in national within Defense request. the federal XXXX the focus. and of systems Strategy are long-term Secular well intact, budget result, National necessity sustained the the in to across ManTech's anticipating renewed upcoming a aligned our importance cyber given As we growth remain drivers the and the modernization particularly advancing government, the capabilities FY

necessary We our our across security flexibility customers' with are challenging security the most differentiated speed to customers. delivering missions and and meet homeland national at innovation, solutions

outlook. Now walk Judy and our XXXX Judy? through will of details the XXXX performance financial

Judy Bjornaas

Thanks, Kevin.

to our demonstrated our creation. Quarterly results long-term drive which value of position compared leverage to XXXX. ability of million, revenue financial was was down QX $XXX X% our resilience strong differentiated Our business to the and

largely team QX. billion, QX in touched variant lighter driven we and longer For impacting Unfortunately, EBITDA the the XXXX. COVID no in due but industry was by in XXXX from up direct coverage a was of QX for some the for X% indirect related over the XXX contract Both involuntary continued contribution XX unexpected from XXXX an last PTO year to of these labor or up EBITDA comparable nonrecurring benefit our and year greater-than-expected the QX than lower full points related and quarter was to exceptional spending, utilization year, from the cases offset benefit to was annual the lower $X.XX impacts. revenues and were stronger This $XXX XX% in period. XXXX. have closeout and revenue of drove year relative prior were the a our due and robust. million, for and year-over-year. early up nonetheless, international work. cases to year. year basis late increase EBITDA mild, Full Omicron expectations, Thankfully, QX up margin full was million, XX.X% year, X% $XX largely utilization were EBITDA X.X% the full margins

range. X% diluted EPS and down X% income and down the million EPS higher $XX our the GAAP the rate net and towards net by QX diluted income end On the diluted year. net adjusted QX EPS guidance rate and adjusted year-over-year. and were line, from higher X% significantly last impacted adjusted were adjusted EPS and tax fourth top quarter and the in compared to of diluted net million was income adjusted tax X% last was in income $X.XX, quarter, $X.XX, both $XX was bottom was both our year. Despite performance

the and compared EPS XX% and $X.XX, full to year, $XXX For diluted million XXXX. was was income up net XX%

diluted the last For adjusted year, $X.XX, adjusted and year. was XX% income million to $XXX up full net and EPS XX% was compared

X.Xx generated statements. balance cash to compared XX-day which We represents and robust the now XX for flow increase operations from was sheet year. cash Turning days, income. to million net last DFO of $XXX the year, a flow

sheet a near of balance to in acquisitions. quarter expect timing shareholder was a to priority In of our M&A. representing million back we to debt, leverage reflects $XXX in drive sheet We net ratio the in $XXX uptick acquisitions, due the the on as X.Xx. largely and strategic consistent drive end, leveraging million At this XXXX, invested the value of $XX through which down million creation term showed balance cash recent the

dividend on our dividends executing paid equates and dividend a be million March increase $X.XX $X.XX return distributions cash will us to The a per to to maintaining which $XX current authorized deployment from X% distributed our an share, XXXX, we or our shareholders. to annualized $X.XX in yield has by Additionally, committed strategy, in also of levels. new to to capital continues to in quarterly dividend We and our The Board of remain shareholders. X%. dividend steady M&A raise of prioritize

our Regarding opportunities the evaluate goal M&A, that and market. our strategy is our could across to positioning Federal accelerate enhance

the respect representing chain QX the to aligns the modeling, the preview guidance to this as view Moving new we guidance, second the from your add-on revenue. from less well backlog XXXX begin incrementally awards, that between contract billion new operating midpoint build as chain help The a largely supply XX% contract timing with environment revenue At with linear with we to recompetes market on come revenue assuming with to are to competitive of well supply $X.X as contribution of balance normalizes our we you the to and from reflects more approximately and anticipate labor awards as and our providing coming a and billion, this X% the We revenue afternoon half expect expansions in X% be XXXX. growth. constraints, business. $X.X mods of are contributing smaller and To CR. and

work be full of operations impacts the snow fourth the quarter well and from we as likely that involuntary reductions from resemble January as expectation off days of resulting in lightest COVID Afghanistan the will QX utilization the XXXX the lower Our as in the quarter support. and is impact year the

margins and to profitability. Moving

to in projected indirect and for EBITDA Our tailwinds excludes is XXXX. normalization which of spending nonrecurring enjoyed margin X.X%, accounts be the

tax diluted fully assumption adjusted between is $XXX.X ranges Underpinning and net $X.XX EPS XX.X expect shares. these and million XX.X% and and an diluted estimated approximately between share an million effective adjusted We income of rate million of $X.XX. count $XXX.X

to requiring cash that for representing is deferred from to for tax market year XXXX. X.X% and expect expenditures be years from the of R&D purposes over decline legislation capitalization are XXXX. Capital assumes around operations least a be beyond at X $XXX revenue, expected million We flow the

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

Matt Tait

for billion QX $X.X million in a QX the you, Thank book-to-bill X.X% in We full booked resulting the Judy. of full in for and year, X.Xx awards contract year. and in $XXX

for unmanned slower Navy work. In modernization These of wins comprised of a and with key the business in New the Corps in fighting the successfully secured XX% with recompetes exposure Marine previously war recompete discussed line of wins customers. year software awards derisk our for pair help system expectations adjudications intelligence we with in approximately XXXX. weapon labs and QX, incrementally

has now of execute $XX.X a awaiting a with backlog backlog respectable our $XX As foundation was and visibility exited a bookings, reached record qualified of billion billion adjudication. a result our the funded good We of providing these $X.X a billion, approximately $X billion to total year and with level with us over from. pipeline solid

on is revenue. the converting into priority steadfast Our pipeline

XXXX proposal customers for level new recompete healthy of a a activity expect We capabilities in of mix across and our work. and

We are providing our already is growth from enhanced acquisitions. engineering acquisition our digital resulting pleased The positioning recent new the Navy. in Technologies opportunities customers with in for with Griffin of

delighted first within our of Additionally, operating should the into quarter. by and acquisitions to be both inroads see complete new one. am the integration The smoothly, TMAC's engineering the integration the offering as presence progressing intelligence seamlessly I analytics offers data us is already remaining end community areas. to of expand

touch let compelling and for employee competitive topic for me upon ManTech's extremely highly an highly an incredibly amidst market us, value skilled talent. briefly talent. important endures proposition cleared Now

experience careers. employee are desired our empower further to and and our for optimizing rigorously are drive outcomes their employees working customers to We our

accelerating the are and retention attractive employees. our We talented concentrating hiring on candidates of the of maximizing

call earlier forward Dietz, for in lead With the him Steve over new promoted this civilian month to let made to hand last congratulate me Kevin to role. our with XX federal to business and has want I to the I working business. Lastly, we that, remarks. the Steve closing significant look over his contributions years who

Kevin Phillips

meet building our reputation most Thanks, trust best-of-breed premier and over with customers upon a legacy delivering We to the company by security in earned a mission-first XX-year and to solutions our needs. national philosophy. have pride with customer-focused We we mission challenging forward take Matt. their as look

on driving customers, employees our remains value focus strategic for shareholders. Our and long-term

and With note outlook. discuss to your open we to Before that I purpose our today's call for line stay ask financial of to you the topics. up want questions that, questions, ready these that on We and focused results those take kindly centered recent we keep our is on questions. the XXXX are

Operator

with Fargo. First Akers [Operator Wells Matt Instructions] question from

Matt Akers

about question run Could and for how how back good you coming afternoon. retirement. of of could George Just back sort to how we that once are on stand the of and -- and Thanks Hi, sort to through curious those we kind should talk sort think will congrats to -- here? Yes. how how about that's normal the year? pacing EBITDA ODCs the reverted of about think margins

Judy Bjornaas

have Yes. year full into We guide. that built the definitely

So we seasonality just do timing because of have margins fringe the some of expenses. in the

it's of in, the it a the on shift huge can depending So not margins. but timing definitely impact quarters come quarter-over-quarter, those the

Matt Akers

Great. And Okay. --

Kevin Phillips

latter pickup on A expect supply do higher year the in of some the chain level we that. on stuff, half the

Matt Akers

Yes.

at talked this earlier, that PTO returned you normal elevated about kind has that The point? levels to Okay. of

Judy Bjornaas

Yes.

much back normal operations. end by pretty think to I of were we January, the

Matt Akers

Yes.

Are last from to say you Okay. And guess revenue rate I TMAC? able what just the is one. run

Judy Bjornaas

small tuck-in acquisition. really a Immaterial. It's

Matt Akers

you. Thank Okay.

Operator

Our Securities. from Sommer comes question next SunTrust with Tobey

Jasper Bibb

look good wanted were moving kind not see you're be the about Jasper Tobey. as ask Hey, there ODCs of visibility but last had contemplating afternoon. thinking you through to and pieces Bibb you on year? that wanted year great, is I to for know some you how This just the I might guide? how in out

Judy Bjornaas

we're in -- projecting lot. we first not Yes, quarter, the a

currently being would the is we're but And think in. As definitely year, at looking majority forward. things we're projecting half very where those QX but throughout sometimes accelerate of back half to QX. to said, -- Then second I we it's come I think I say similar the loaded,

Jasper Bibb

speak Thanks. And could you your then was presence. I increasing Fed to hoping SIV

change You and in leadership effort? you opportunity the remarks. how talk any returns from highlighted the Can that about prepared that you're just early prosecuting

Matt Tait

Yes.

So announcement month February. that us was a the recent of by in

winner to excited federal of proven work who Steve have in been Deitz we're civilian a the So new has arena.

make have board to and him excited starting on difference. we're So to a

Jasper Bibb

Is for on the Okay. in seasonality million year? Got that? contribution the acquisition I Griffin additional kind guide. that kind to about is the of about a it. If month in there think business could another of add still range one right for full any beyond $XX And

Judy Bjornaas

in No, think said mid-XXs and the And seasonality month that. that. there's to I quarter from on per we no nothing fourth low changed call,

Jasper Bibb

customers versus so, Got are them had but recent seems and than a experiences? you recent responding last question Could me. it. I Last contrast just the be to the market CR this we've of for in how the or just one your your a know disruptive decade lot to bit more history?

Kevin Phillips

Yes.

got one and I the activity. of think custom to market but in terms different has a procurement CRs, ManTech feel the does bit the this little

of second well. think budget it's in I a kind also than getting the federal is more think will combined. of that year in it's that COVID funds budget be the utilization to the half part going But The of place, we the towards positive. and trend surge with is in once year push place overall prior higher in as

Jasper Bibb

for Thanks as the I'll questions right. congratulations well. taking add and my George for All

Kevin Phillips

Thanks.

Operator

is Khanna next Cowen. Gautam question from with Our

Gautam Khanna

guys. afternoon Hello. good Hey,

So congratulations and George Steve. both first, to

He's are going We quite miss to a George. legend.

And Or you then with X. quarter, TAMs, enjoys that that maybe a is just, you statement? he impact? other the in of The hope X% quantitatively if you. wondered that didn't to are number QX variance, was incremental implies sort and Thanks in the there we entire that the So the health. number? midpoint now aids XXXX growth did. last that specific and things are talked So about Judy, their be Is deal not retirement you new COVID kind arrears under the ODCs what will, good of expect I XXXX? that recover you to the on happen could

Judy Bjornaas

Yes.

view being So I XXXX. on much we're more guidance moderated in the ODCs, think our the in for

flat pretty to looking XXXX. So

as I were with we that that, we in into said, expecting in think expected building other some be had 'XX TMAC our ranges. of as of trying QX, to through as we what Afghanistan that. and just just of added then while So is through the and the year we in the similar the of guidance impact on far haven't line 'XX, we headwinds I QX nominal. growth, that And ODCs very it's the roll the and we're I And in some very just think QX thoughtful top think balance

Gautam Khanna

perspective Kevin, through you Do maybe, the And for have going maybe just to the of of your of you, timing the budget large calendar passage year bookings calendar we're for to will think cadence right QX? given do now? the respect to the QX, likely what budget Do bookings the starts QX break log with overhang think fiscal an jam happen unusually year? you year-end you given What's on kind government? think the in through a

Kevin Phillips

Yes, I'll pieces. couple it of put a

community obligate placed, the First, have we'll can to activity. getting starts moving I of I intelligence There's work, to or federal to them are new believe programs to the up some the customers in seeing outstanding. money think start add budgets existing that do. year here and back add follow when they're the catch their on to throughout if uptick have also quickly to that a lot you they that on been funding

pace to in-line we'll I favor, I'd they the see to within and a DoD quickly the new start this they'll and accelerating but think I to follow volume the quickly awards is get how do of proposal as that that starts, say, focus jury think out how amount have and the that. an a will year,

Gautam Khanna

it clearly, growth, you think given mentioned. headwinds it's you maybe the but for I the year entitled growth -- of to you've a year the X%. ones the you -- What kind X% rate kind long-term yet, rebound to is 'XX efforts X% the opine kind me, customer the we're about to talking in pipeline, other this not given Do we're What on to, of of pension alike? for concentration can and organic going know think do ManTech? Last one transition X%, Kevin, to is Afghan

do entitlement think long-term what the is? kind a you business of Just for

Kevin Phillips

that. entitlements on about know don't I

much have 'XX market and earn to the our How in day. We that it's our towards that I every whether strategy. moves But moving in think how 'XX. is quickly generally stripes or look, direction, said, funding

positive. it's think I

very our a business the I out. We're think things with said to about that all excited before, as entering the I've because, will we're will few over and approach years digitally dominant battlefield it. prove that. I that last think come position

So I well. very that views we're she as about as excited long-term organic growth. what to defer on Judy

I think procurements versus that environment, budgets federal up I and think Intel, of on based backdrop the play we flat have see in and global overall environment. threat the out going the the to to DoD just wait how be within but are

Judy Bjornaas

the I is mid-single say, Yes. the and throwing you plus would what back of growth the range. digits, out Gautam, hoping in strategically, kind that we will or that ranges we're were get there minus into

Gautam Khanna

you the guys. Thank you for Appreciate clarity.

Operator

comes America. of Mora with question Mariana from Bank next Our

Mariana Mora

Hello, you? how are

Judy Bjornaas

Fine.

Kevin Phillips

Doing good.

Mariana Mora

I you color are conversations some So from if customers? this confident on has to give are your going improve? with why what is, year? can is first us What know And last question don't you changed award like environment

Matt Tait

take Matt. that. so This yes, So I'll is

with in activity terms segment. within the We proposal opportunities are the Intel seeing of the activity

that's heading. Now sure we're but -- that, we've your that, to turns adjudications, indication where to point, every that we seeing they're into got make

but conversations, had we've also seeing we're So activity.

the try and that And to measured about into what and be we factor -- guide that. that's so

Mariana Mora

Okay. not I mentioned understand going Board. the you you Make be George stepping us wanted know has but just of a influence that table. the down the how forward? major Could is decision-making talk and help voting from announced, relationship about How in earnings think you then who that the about to to sense. it's still relationship is longer and officially the you we And large should power, going the shareholder

Kevin Phillips

everybody focused remain Board we how and us guide That on we The all. on have and equally. Sure. Board generation for we're very providing the returns to is a represents focused. strategy We're all focused and about very And market. Look, the excited George shareholders, approach have. we're that, supported the all

versus our and we that him of think would him those afforded reach scale, that we'll and out in confidence to when with to George appropriate, approach on I his investor any size base. as decisions the broader do has role in where his investor and are

Mariana Mora

you very Thank Okay. much.

Kevin Phillips

welcome. are You

Operator

Global. Our next question Kinstlinger comes Alliance from Brian with

Unidentified Analyst

Hi, for is Matt afternoon. This in Brian. good

is how So approximately was that was I are about new what And awards. XX% metrics on that? is were of you talking scope business of wondering expanded Or that of And if guys the any separate? work?

Judy Bjornaas

Yes.

the is new business true starts. So new

extensions of add-ons. the the recompete bookings either So wins for were or or balance

it's those within break that We all So separately. out don't number.

Unidentified Analyst

Okay. more color Thank you. the And provide on is shortage? there talent can any you

Matt Tait

-- pick I'll I'll yes, start there. So

off, work work home. seeing, an classified maybe I spaces that opportunity it's -- pay good yes, in to people get they first so think especially a from -- that in have real. go still place can We're maybe where the a still

So that the in that's -- is market. definitely we're something seeing

So thing, it's that to industry but an very just we're a -- all solve. working ManTech I thing not think hard again,

Kevin Phillips

course of supported the talent and security Kevin. and need or -- programs. meet bring needs, I'll, long improving to certification that and to promoted the we that's whether degree creating reform security best clearance national is internal groom have very This

hopeful within also opportunities segment it's that over time much that the market will needed. our And that we reported We will because economy. start about we're are be of think to the the very persistent adapting

Unidentified Analyst

Thanks much. Great. so

Operator

Our from Stanley. next Matt comes question Sharpe Morgan from

Matt Sharpe

about and for the in been company to good right Matt, revenue. pressure has Obviously, been as is Matt, exposure that you the what Historically, going downward some one Judy, evening somewhere questions. thanks the range company think forward, exposure mix? there's the IC Where community. for has and of XX% today? the XX% does for stand in think And of Kevi, Kevin starters I taking just here, Maybe the you. my intelligence had

Kevin Phillips

the potential a, same Yes. a delay of positioned. range. market. our Look, in terms that approach in say, to on It's We're more it holds I'd upside of well

or do community and intelligence has application be a will of it the it of to technology If to demand use how from does analysts that. you the there or what just about intelligence for does and We their what persistent role. needed do it cyber think the think a

So I against weighs in sectors. going you we're do see want add question The set to set. is federal that an other suspect amount surveillance that the opportunities Matt, defense anything there? that of of how opportunities, increased against come to opportunity and

Matt Tait

Excellent. No, you. thank Nailed it.

Matt Sharpe

Okay. book-to-bill then can full either for over happen? or XX% respect a And revenue across maybe some Judy. sort And line first just is With that? was the what to are the to give the it range, or year larger to that question that needed make maybe on sense any to the you X.X of X.X the bookings of recompetes to you I guide within us there the range? first half this support think goal need of get

Judy Bjornaas

don't We guide really Yes. on bookings.

from of said new. we of X% or contracts the less coming about that with backlog. than add-ons extensions XX% is to those Most balance midpoint in As recompetes or is

coming far of that's guidance as we what from. where provide it's kind on So as and growth

Matt Sharpe

And maybe just enough. Fair in M&A. it. one Got then on leverage

aggressive, Can you on getting that? less seeing more you're comment you bidding your remind just Is and color Judy, X.Xx then pipeline. quarter. increased you're think, I some maybe you Are past at us M&A at aggressive? of it activity this on end the where the maybe And comfortable mentioned behavior? peers' taking

Judy Bjornaas

Yes.

successful talk the that were than properties. then from pretty we we seeing. assuming would consistent X.Xx feel over we I leverage the So about let think very the Luckily, range on to Griffin, can the average standpoint, years find is right Kevin and I'll we've and our M&A, market we're comfortable what a which larger is been Xx that

Kevin Phillips

heavy was last year. very So a year

acquisition opportunity be capital how out. of from from little use acquisitions, sets we to very be of year the first announced, much I we'll bit approach we a aggressive, say, and acquisition That in to said, think this are but want an we come standpoint I'd the that we the to lighter and do dividend will of be, to outside we standpoint. for and and for half market want the continue measured what an where deploying focused on capital

Matt Sharpe

helpful. Got it. Thanks. that’s And

get industry. I both queue the this [indiscernible] leader a George best, wish quite the all and he’s for Before back in in ManTech

Kevin Phillips

you. Thank

Matt Tait

very much. Thank you

Operator

Instructions]. [Operator

Our from next with Global. comes question Brian Alliance Kinstlinger

Brian Kinstlinger

looking just a more metrics increasing? Do color but has a turnover that Is for that? Or turnover. employee mention talent on that forgot I you shortage? have Ho, to increased? is before, on little there like

Matt Tait

-- really could seeing security specifics talk we to have in that is talked place actually we're next about for programs all talent and drive around what we're to of but what the you, give won't like is do essentially we the I and macro pre-pandemic seeing. we don't it returning more Kevin as levels meet for But that, that's is So bore about in skills to hour I our the the and national have retain improve needs. the what

Brian Kinstlinger

Okay, great. Thank you.

Operator

It's from Gautam with Cowen. Khanna

Gautam Khanna

guys. Hey

kind to big that term? T&M of pipeline longer versus plus versus on curious fixed to if about of current requeue. plus and up in inform past, what talked us business how less margins the cost of I'm business mixing could about that talk the the Judy, I you the base you've to in was Sorry, compares I And terms -- wanted cost price? might

Judy Bjornaas

Yes.

XX% we're that been moving shift from of we've over And to major in years away a the in our see our more our last toward solution-based desire think base XX% customer start which I contracting, or us that. I about see to it's goal it's of to any now, mean XX% higher our range. cost-plus, couple the move would frankly, customers margins. right which opportunity But give for don't

Gautam Khanna

Okay. could bit just balance little sheet if you about And talk then longer-term a deployment.

the But curious, George about? You've -- anything talked Any sorry, on you respect a not the given to -- would change talk obviously, the long capital to the that strategy company dividend deployment maybe I'm time. has on been just could revisit for Board M&A with compensation you focused with composition Board. new

Kevin Phillips

deploying what confident we're capital. change. with we're and we're No how doing

Gautam Khanna

guys. again Thanks

Operator

Our question from William with comes Louie Blair. next DiPalma

Louie DiPalma

data wondering I Judy on more ManTech analytics and that but afternoon call IT enterprise excelled also Stephen. seems it you've with recent how have like and Good And touted engineering it past, recently, you tried acquired Kevin, your In how at partnership type was and because capabilities, ManTech capabilities ManTech's opportunities acquisitions. operations seems a Google. capabilities, how IT. today's positioned traditionally, for the cloud you just you and have And you cyber has type is you mentioned to your with strengthen highlighted enterprise more

how just So positioned ManTech was IT? I is enterprise wondering within

Matt Tait

is this Louie, So Matt.

those So some areas one the of X. the prior about right Mission for the us business. well be when calls, focus we in IT are for -- unique the X and then that think And is about, attracting you areas relationships have that yes, fortunate to talent technical on those. and And we're positioned across to talked that we've to all Enterprise you building very of spectrum very talked

So with to feel grow with with with business rest is an direction in alignment our customer right alignment we needs. -- set the the the that continuing opportunity in

Louie DiPalma

Thanks. the of still wondering, that contracts? And like fourth recognized to there down away? the that's there was I revenue And Afghanistan quarter go Great. in Afghanistan-related was wind update any any to going the is support was

Kevin Phillips

Yes.

time legacy we generally, as is presence But the sustainment in the being well have as of combination bulk very Those of company. Afghan-specific of are as QX QX. gone. out drawdown some low remaining military I various support East that shut same that for of the reducing and a think state a at QX activities in Middle work supporting department There's because out had the military embassy a requirements quarter down. going into as that's

Louie DiPalma

that exposure you any high-level And ManTech Afghanistan provide in types other can potential from there like the of overseas deployed States had contractors either United a has? they that Afghanistan you for that other or is were the could overview the be like projects? And that Kevin, supporting of

Kevin Phillips

supporting We have security. national of history XX-year a

need you We when we and us, customers all will And and of our the will the sector needs across we that all our go threats where long fact industry of near-peer for reallocate term. tell we'll can. our after the expect

Louie DiPalma

Stephen. and That’s and understandable. Kevin Judy Thank you Matt,

next question from comes Our Cowen. with Gautam Khanna

Gautam Khanna

with the customer up flexibility or what to to that I'm contracts address have would wanted emerging conflict? deploy that to existing the there just that of within Eurocom to allow you question. that I are Yes, deal you, to Ukraine personnel allow kind curious, Middle Poland, ManTech Russia deploy the on the provisions follow East last

Matt Tait

is this Gautam, Matt.

wherever pretty us we're I And in to support it go. missions, national covered guys we'll the after you -- succinctly, fact and that is, brief think yes, -- wherever will contracts which appropriate. our then here Kevin takes security as

Gautam Khanna

Kevin, kind And of seeing more then the Okay. those can size opportunities? pipeline? you also talk if the opportunities? could characterize Are M&A you And you of about

Kevin Phillips

remain disciplined on what first the going we I look and as of more we to So the us year. that the to be range lighter level year earlier, from mentioned on We half this consistency of expect at target. compared prior is and businesses

Gautam Khanna

Thank you guys.

Kevin Phillips

Thanks Gautam.

Stephen Vather

further like this questions looks we time. it at have no that Kevin,

your call senior members follow-ups. of usual, our be for Thank and you As team will interest all participation for any on in ManTech. available today's your

Operator

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

You may disconnect. now

Mantech International (MANT) 24 Feb 222021 Q4 Earnings call transcript