ManTech International Corporation (NASDAQ:MANT) Q3 2017 Earnings Conference Call - Final Transcript
Nov 01, 2017 • 05:00 pm ET
Good day, ladies and gentlemen, and welcome to the ManTech Third Quarter Fiscal Year 2017 Earnings Conference Call. (Operator Instructions) As a reminder, this conference call is being recorded.
I would now like to turn the conference over to your host, Stephen Vather, Executive Director, Corporate Development. Please go ahead.
Thanks, Chelsea, and welcome, everyone. On today's call, we have George Pedersen, Chairman and CEO; Kevin Phillips, President and COO; Judy Bjornaas, EVP and CFO; and Dan Keefe and Bill Varner, our two Group Presidents.
(Forward-Looking Cautionary Statements)
Now I'd like to turn it over to George.
Good afternoon, and thank you for participating in today's call. I'm proud to report ManTech had an excellent quarter. We demonstrated steadfast revenue growth, robust bookings and outstanding cash flow. The $1.9 billion in contract awards in the third quarter is the second strongest in our history as a company. Additionally, shortly after the quarter close, we successfully completed the acquisition of InfoZen.
Three (ph) keys in the quarter and through 2017 are the results of a growth-focused strategy, coupled with the hard work and dedication of the entire ManTech team. Our focus remains on delivering the best-of-breed solutions to meet our customers' needs.
In 2018, ManTech will celebrate 50 years as a company. I'm proud of our history of supporting national security and protecting our homeland. Our customers know this is the steadfast commitment anytime, anywhere.
Now Kevin will provide you with more details on our operations. Kevin?
Thank you, George. I want to begin by highlighting that, in the third quarter, revenues, net income, earnings per share and operating cash flows were all up from 2016. We saw sustained year-over-year direct labor growth in Q3 as a result of new contract awards over the last (ph) 12 months. As George mentioned, we received $1.9 billion in contract awards, a 4.5 times book-to-bill, which is the strongest bookings quarter in five years and the second highest in our history. It also marks the 10th consecutive quarter of bookings at or above 1 times.
Equally noteworthy is that approximately 70% of the bookings in Q3 were for new business. A majority of the new work was for federal civilian customers, including the Department of State and NASA's Jet Propulsion Laboratories. Additionally, in the quarter, we won approximately $400 million of contract awards to provide cyber network operations solutions and services to our intelligence community customers. Dan and Bill will further discuss these awards later on the call.
Our bookings drove an increase in total backlog to $6.3 billion and funded backlog increased to $1.5 billion, sequentially up 28% and 40%, respectively. Over the last few years, we have been focused on expanding our presence with federal civilian customers, primarily in homeland security, federal health IT and, more recently, diplomatic security within the Department of State. We have utilized our exceptional full-spectrum cyber capabilities and our strong national security experience to expand in these markets.
In addition to full-spectrum cyber, we are also investing in