ManTech International Corporation (NASDAQ:MANT) Q1 2018 Earnings Conference Call - Preliminary Transcript
May 02, 2018 • 05:00 pm ET
Good day, ladies and gentlemen, and welcome to the ManTech International Corporation First Quarter Fiscal Year 2018 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 be given at that time. (Operator Instructions) As a reminder, this program is being recorded.
And now, I would like to introduce your host for today's program, Stephen Vather, Executive Director, Corporate Development. Please go ahead.
Welcome, everyone. Thank you for participating on ManTech's First Quarter Call. On today's call, we have Kevin Phillips, President and CEO; Judy Bjornaas, Executive Vice President and CFO, as well as Dan Keefe and Rick Wagner, our two Group Presidents.
During this call, we'll make statements that do not address historical facts and thus are forward-looking statements made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to factors that could cause actual results to differ materially from anticipated results. For a full discussion of these risk factors and other risks and uncertainties, please refer to the section entitled, Risk Factors, in our latest Form 10-K and our other SEC filings. We undertake no obligation to update any of the forward-looking statements made on this call.
With that, I'd like to turn the call over to our CEO, Kevin Phillips. Kevin?
Kevin M. Phillips
Good afternoon, everybody. I'm pleased with our excellent results and start to 2018. We continue to execute on our strategy and our building on the momentum from last year. The contract awards we announced over the last few quarters are fueling strong organic growth and financial performance across the business.
As a result, our quarterly revenues, operating income, net income and earnings per share were all up year-over-year. I'd like to take a moment to thank our team for their steadfast dedication as we maintain our focus on growth, helping our customers succeed and increasing shareholder value.
People are at the core of ManTech and they are our most valuable asset. Maintaining our position as an employer of choice remains a key priority for us. I'm delighted to report that we saw year-over-year and sequential direct labor growth in Q1. As we ramp up on recent awards, we have added hundreds of highly talented employees to our ranks, bringing our exceptional employee base to 7,800 strong.
Judy will take you through the quarterly financial detail in a few minutes, so I want to focus my remarks on a few key areas, the budget environment, our market positioning and our opportunity pipeline. The budget environment is very strong. In March, Congress passed the omnibus appropriations for FY '18 mandating $655 billion for defense between base and overseas contingency operations accounts.This 8% increase represents a largest funding increase to defense in over a decade. Our customers are focused on rapidly obligating these additional funds against their mission requirements before the end of the fiscal year. Additionally, the FY '19 Presidential Budget contains a $686 billion request