ManTech International Corporation (NASDAQ:MANT) Q4 2018 Earnings Conference Call - Final Transcript

Feb 20, 2019 • 05:00 pm ET


ManTech International Corporation (NASDAQ:MANT) Q4 2018 Earnings Conference Call - Final Transcript


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Good day, ladies and gentlemen, and welcome to the ManTech Fourth 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 call over to your host Stephen Vather, Executive Director, Corporate Development. Please go ahead.

Stephen Vather

Welcome, everyone. Thank you for participating on our fourth quarter call. On today's call, we have Kevin Phillips, President and CEO; Judy Bjornaas, Executive Vice President and CFO; as well as Matt Tait and Rick Wagner, our two Group Presidents.

During this call, we will 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 these forward-looking statements made on this call.

Finally, on today's call, we will discuss some non-GAAP financial measures, which we believe provide useful information for investors. These non-GAAP measures should not be evaluated in isolation or as a substitute for GAAP performance measures. You can find a reconciliation of these non-GAAP measures discussed on this call in our fourth quarter earnings release.

With that, I'd like to turn the call over to Kevin.

Kevin M. Phillips

Good afternoon, everyone. Let me begin by thanking the entire ManTech team for their continued dedication and outstanding contributions throughout 2018, which resulted in a truly impressive year. For the third consecutive year in a row, ManTech delivered accelerating organic revenue growth evident across our business. Furthermore, I am pleased to see operating margin improvement and steady growth of our backlog, which provides for excellent long-term visibility. We continue to execute on our growth focused strategy that maximizes value for our customers, our employees and our shareholders.

Now to some thoughts on the market and budget environment, the majority of our customers, including the Department of Defense, intelligence community and our federal health customers entered FY'19 with full-year appropriations. I'm pleased that the remaining agencies that we're operating under a Continuing Resolution and were impacted by the shutdown are now funded for the full balance of the fiscal year. As a reminder, the DoD budget increased 3% for FY'19 and the recently approved Departments of Homeland Security and state budgets also exhibit growth. ManTech's 2018 results were minimally impacted from the shutdown. We saw more of an impact in January but that said, our exposure and impact was nominal.

And we fared better than many others across our industry. Broadly, the shutdown caused uncertainty in the timing of solicitations, awards and contract payments more than any other factor. I'm pleased in the way the team came together and to ensure that those members of the ManTech family