ManTech International Corporation (NASDAQ:MANT) Q3 2019 Earnings Conference Call - Final Transcript
Oct 30, 2019 • 05:00 pm ET
Ladies and gentlemen, good afternoon and welcome to the ManTech Third Quarter Fiscal Year 2019 Earnings Conference Call. [Operator Instructions]. Later we'll conduct a question-answer session and instructions will follow at that time. [Operator Instructions].
I would now like to turn the conference over to your host, Stephen Vather, Vice President, Corporate Development and Investor Relations.
Welcome, everyone. Thanks for participating in ManTech's third 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 the anticipated results. For a full discussion of these 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, let me hand the call over to Kevin.
Kevin M. Phillips
Good afternoon, everyone. I'm excited to share with you that ManTech delivered another exceptional quarter. Our financial results exhibited accelerating organic revenue and direct labor growth as well as improved profitability and robust cash flow. In Q3, we also maintained our business development momentum through a series of new contract awards as well as retention of recompetes. These results continue to demonstrate ManTech's differentiated market position driven by our dedicated and talented employees.
Let me briefly provide an update on the current budget environment. We are operating under a continuing resolution through November 21st, with the potential of a CR to extend as Congress negotiates the finer details of agency-level appropriations. Despite operating under a CR, the enacted two year budget deal for FY '20 and '21 provides our customers with visibility on their priorities and is allowing them to focus solely on their missions.
ManTech remains well aligned with customer spending priorities, particularly in cyber, IT and systems modernization, analytics and security and mission operations support. Our strategic alignment coupled with our differentiated and highly sought-after innovative solutions, drove $1.3 billion in contract awards in the quarter, which represents a book-to-bill of 2.2 times. Contract awards drove total backlog to increase 14% year-over-year to a record $9.5 billion, and funded backlog grew 17% to $1.5 billion.
Matt and Rick will provide additional details on the contract awards later in the call. Here are a few quick highlights on our bookings. First, approximately 70% of the awards in the quarter represent new work for ManTech. Second, 80% of the awards were for missions in enterprise IT, security and mission operations support and cyber. And finally, nearly half of the awards came from the defense customers. All that said, we are honored to continue working at the heart of