ManTech International Corporation (NASDAQ:MANT) Q2 2018 Earnings Conference Call - Final Transcript
Aug 01, 2018 • 05:00 pm ET
Ladies and gentlemen, good afternoon, and welcome to the ManTech Second Quarter Fiscal Year 2018 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, Executive Director, Corporate Development.
Welcome, everyone. Thanks for participating on ManTech's second quarter call. On today's call, we have Kevin Phillips, President and CEO; Judy Bjornaas, EVP and CFO; as well as Matt Tait and Rick Wagner, our two Group Presidents.
(Forward-Looking Cautionary Statements) With that, I would like to turn the call over to our CEO, Kevin Phillips. Kevin?
Good afternoon, everyone. I'm pleased to report that ManTech delivered another quarter of exceptional performance. We maintained an aggressive pace of organic growth, and were awarded a number of new contracts that put us in a solid position for continued growth. All of our key financial metrics, including quarterly revenues, operating income, net income, earnings per share and cash flow, exhibited growth year-over-year.
The market environment remained strong, and from a budget standpoint, we are pleased that Congress appears to be making meaningful headway on FY 2019 defense appropriations with draft markups being generally in line with the President's budget request. However, there's potential for FY 2019 to begin under a continuing resolution, which could have a slight impact on the timing of new contract awards for the industry. Overall, ManTech's portfolio of capabilities and customers continues to be well aligned with budget priorities.
We are seeing customers apply strong focus within the space and cyber domains with both policy and execution. These efforts lean more broadly toward supporting national security and national defense strategies. Lastly, customers continue to be focused on improving the speed of bringing talent and technology to the mission as well as streamlining the acquisition process.
Over the last few years, I have consistently discussed our steadfast investments in bolstering ManTech's differentiators in full-spectrum cyber solutions, systems and software engineering, security enterprise IT solutions and data analytics. Those investments have taken the form of improvements in our business development engine, improving our technical solution capabilities and strategic acquisitions.
Additionally, we made improvements to our recruiting and systems infrastructure to support anticipated growth. I am pleased to say that our performance in the quarter, particularly around winning new contracts of scale in the enterprise IT and systems modernization area, is a result of that focused strategy. This is a continuation of a multiyear trend that we are experiencing across our business. Customers are embracing ManTech's differentiated solutions, agility and technology leadership. In turn, the operating team is focused on the ramp-up and successful performance of its new contract awards.
As noted on our last earnings call, early in the second quarter, we were awarded a 10-year, $959 million enterprise IT contract with the Department of Defense agency. This contract represents one of the larger IT initiatives awarded to us and is all new work for ManTech. In the quarter, we won several new contracts supporting the Navy's