Parsons Corporation (NYSE: PSN) today announced financial results
for the first quarter ended March 31, 2024.
CEO Commentary
“Our momentum continues with a strong start to
2024 after reporting record financial results in fiscal years 2022
and 2023. For the first quarter of 2024, we had record results for
revenue, adjusted EBITDA, adjusted EBITDA margin, contract awards,
and total backlog,” said Carey Smith, chair, president, and chief
executive officer. “We also achieved record first quarter organic
revenue growth of 29%, making this the fourth consecutive quarter
where organic growth exceeded 20%. Our record total
revenue was driven by double-digit growth across all four
business units and major geographies. Looking forward, I am excited
about our business given the ample tailwinds we have in both
segments, our strong backlog and pipeline, low recompete levels,
and robust balance sheet that will enable us to continue to make
accretive acquisitions to drive future revenue growth and margin
expansion.”
First Quarter 2024 Results
Year-over-Year Comparisons (Q1 2024 vs.
Q1 2023)
Total revenue for the first quarter of 2024
increased by $362 million, or 31%, to $1.5 billion. This increase
was primarily driven by organic growth of 29% due to the continued
ramp-up on recent contract awards and execution on the company's
backlog programs. Operating income increased 99% to $102 million
primarily due to the ramp-up of new and existing contracts. Net
loss was $107 million due to a $214 million pre-tax charge related
to the repurchase of a portion of the company's 2025 convertible
notes in the quarter. This charge was primarily due to the strength
of the company’s operating performance, which drove its stock price
to a level above the conversion price of the company’s 2025
convertible bond. GAAP diluted earnings (loss) per share (EPS)
attributable to Parsons was ($1.01) in the first quarter of 2023,
compared to $0.23 in the prior year period. Excluding the impact
from the convertible bond transaction, GAAP diluted EPS
attributable to Parsons would have been $0.49 per share.
Adjusted EBITDA including noncontrolling
interests for the first quarter of 2024 was $141 million, a 56%
increase over the prior year period. Adjusted EBITDA margin
expanded 150 basis points to 9.2% in the first quarter of 2024,
compared to 7.7% in the first quarter of 2023. The year-over-year
adjusted EBITDA and margin increases were driven primarily by
increased volume on margin accretive contracts and a deliberate
focus on cost management and controls. Adjusted EPS was $0.70 in
the first quarter of 2024, compared to $0.43 in the first quarter
of 2023. The year-over-year adjusted EPS increase was driven by the
previously mentioned adjusted EBITDA increase noted above.
Segment Results
Federal Solutions Segment
Federal Solutions Year-over-Year
Comparisons (Q1 2024 vs. Q1 2023)
|
|
Three Months Ended |
|
|
Growth |
|
|
|
March 31, 2024 |
|
|
March 31, 2023 |
|
|
Dollars/ Percent |
|
|
Percent |
|
Revenue |
|
$ |
909,608 |
|
|
$ |
634,546 |
|
|
$ |
275,062 |
|
|
|
43 |
% |
Adjusted
EBITDA |
|
$ |
92,590 |
|
|
$ |
56,233 |
|
|
$ |
36,357 |
|
|
|
65 |
% |
Adjusted
EBITDA margin |
|
|
10.2 |
% |
|
|
8.9 |
% |
|
|
1.3 |
% |
|
|
15 |
% |
First quarter 2024 revenue increased $275
million, or 43%, compared to the prior year period due to organic
growth of 41% and the contribution from the company's SealingTech
acquisition. Organic growth was driven primarily by the ramp-up of
recent contract wins and growth on existing contracts to include
strength in the company's cyber portfolio.
First quarter 2024 Federal Solutions adjusted
EBITDA including noncontrolling interests increased by $36 million,
or 65%. Adjusted EBITDA margin increased 130 basis points to 10.2%
from 8.9% in the prior year period. These increases were driven
primarily by increased volume on accretive contracts, effective
cost control, and a favorable adjustment related to the achievement
of program milestones.
Critical Infrastructure
Segment
Critical Infrastructure Year-over-Year
Comparisons (Q1 2024 vs. Q1 2023)
|
|
Three Months Ended |
|
|
Growth |
|
|
|
March 31, 2024 |
|
|
March 31, 2023 |
|
|
Dollars/ Percent |
|
|
Percent |
|
Revenue |
|
$ |
626,068 |
|
|
$ |
538,920 |
|
|
$ |
87,148 |
|
|
|
16 |
% |
Adjusted
EBITDA |
|
$ |
48,503 |
|
|
$ |
34,158 |
|
|
$ |
14,345 |
|
|
|
42 |
% |
Adjusted
EBITDA margin |
|
|
7.7 |
% |
|
|
6.3 |
% |
|
|
1.4 |
% |
|
|
22 |
% |
First quarter 2024 Critical Infrastructure
revenue increased $87 million, or 16%, compared to the prior year
period driven by organic growth of 15% and a nominal amount of
revenue contribution from acquisitions. Organic growth was driven
by higher volume in the company's Middle East and North American
infrastructure portfolios.
First quarter 2024 adjusted EBITDA including
noncontrolling interests increased by $14 million, or 42%, compared
to the prior year period. Adjusted EBITDA margin increased 140
basis points to 7.7% from 6.3% in the prior year period. The
adjusted EBITDA increases were driven by higher volume on accretive
programs and improved operating performance.
First Quarter 2024 Key Performance
Indicators
- Book-to-bill ratio: 1.4x on net
bookings of $2.1 billion.
- Book-to-bill ratio (trailing
twelve-months): 1.2x on net bookings of $6.7 billion.
- Total backlog: $9.0 billion, up
$664 million from Q1 2023.
- Cash flow used in operating
activities: First quarter 2024: $63 million compared to $9 million
in first quarter of 2023. The increased cash consumption from the
prior year period was the result of timing on receipts and higher
incentive compensation costs given the company's strong fiscal year
2023 operating performance and increased employee base.
Significant Contract Wins
Parsons continues to win large strategic
contracts across both segments supporting national security
priorities and unprecedented global infrastructure spend. During
the first quarter of 2024, the company won three single-award
contracts worth more than $100 million each and several other
strategic wins.
- Selected by the Gateway Development
Commission as the delivery partner on the $16 billion Hudson Tunnel
Project and the company plans to book its portion of this contract
in the second quarter of 2024. This milestone project is supported
by the bipartisan Infrastructure Investment and Jobs Act and is
slated to receive nearly $12 billion in Federal funding, the
largest investment for a mass transit project in modern history.
Over the last twelve months, Parsons has won three of the largest
North America transportation wins in the company’s history - the
Hudson River Tunnel, JFK International Airport Roadways, and Newark
Bay Bridge projects.
- Option period awards totaling $970
million with a confidential customer in the company's Federal
Solutions segment.
- Awarded two significant contracts
in Saudi Arabia during the first quarter. The first was a new $87
million three-year contract. This project is for the development of
a luxury mountain tourism destination and the real estate
development customer is owned by the Public Investment Fund of
Saudi Arabia. The second award was a $53 million contract for
program management of Riyadh’s road network. Following a record in
2023 of 33% organic growth, Parsons continues to win work in the
Middle East as a result of its’ trusted partner reputation.
- Selected by the United States
Department of Labor to assist with planning, management, and
oversight of the Job Corps Facilities Program. Parsons is the sole
awardee on the $115 million contract of which it booked $46 million
in the first quarter of 2024. Parsons has performed project
management on this contract since 2013.
- Parsons was one of two companies
awarded a position on an IDIQ contract by the National Nuclear
Security Administration’s Office of Nuclear Smuggling Detection and
Deterrence. This $1 billion ceiling value contract to deploy global
counter-nuclear smuggling systems represents new work and Parsons
was already awarded two task orders for $13 million. This strategic
win is an important progression of the company's decades-long
legacy of serving global and national non-proliferation security
missions.
- Awarded a $63 million contract by
the U.S. Air Force Life Cycle Management Center of which the
company booked $44 million in the first quarter of 2024. The scope
is for a directed energy laser system that has already neutralized
more than 4,000 unexploded ordnance and allows for the precise
detonation of submunitions, cluster and general bombs, land mines,
and artillery shells. This is the first ground-based laser system
in production and has been deployed in Iraq, Afghanistan, and the
Indo-Pacific region, where it demonstrated 100% effectiveness.
- Awarded a one-year base contract by
the National Oceanic and Atmospheric Administration for system
integration and cloud management services for the Traffic
Coordination System for Space. The contract is valued at $27
million of which the company booked the base value of $16 million
in the first quarter of 2024. Under this contract, Parsons will
provide space situational awareness and space traffic coordination
services to private and civil space operators. Parsons is now
providing space situational awareness solutions to both commercial
and DoD customers.
Additional Corporate
Highlights
Parsons continues its 80-year history of
cultivating a responsible enterprise. During the quarter, the
company was named one of the World's Most Ethical Companies by
Ethisphere for the 15th consecutive year. Parsons was also
recognized for delivering project excellence on three major
infrastructure programs, and honored for its Diversity, Equity, and
Inclusion efforts and for being a military friendly employer.
- Named by Ethisphere as one of the
2024 World's Most Ethical Companies. The company has been honored
with this recognition for 15 consecutive years.
- Parsons was recognized for
delivering project excellence on three major infrastructure
programs. Parsons Newark Liberty International Airport's Terminal A
joint venture project was named the world's best new airport
terminal by the global airport evaluation firm Skytrax. This
project is just one of three North American airport terminals to
receive a five-star rating from Skytrax. Additionally, the I-270
North Design Build Project, for which Parsons served as the primary
consultant, was selected as one of the American Public Works
Association’s 2024 Transportation Projects of the Year. Finally,
the American Council of Engineering Companies of New York
recognized Parsons with the Empire award for the East Side Access
project for its significant contributions to the growth,
prosperity, and betterment of the community.
- The American Council of Engineering
Companies of New York honored Parsons with The Community Builder
award. This award recognizes companies for actively engaging with
the community in their Diversity, Equity, Inclusion, and Belonging
efforts, and leaving a lasting legacy of positive change and
unity.
- Recognized by the Washington
Business Journal for Parsons dedication to fostering diversity and
inclusion within the company's organization and for having a
substantial portion of females on the company's Board of
Directors.
- Received the 2024 Gold Award for
being a Military Friendly® employer. This prestigious award
highlights an organization’s commitment, effort, and success in
creating sustainable and meaningful opportunity for the military
community.
Fiscal Year 2024 Guidance
The company is increasing its fiscal year 2024
revenue, adjusted EBITDA, and cash flow from operations guidance
ranges to reflect its strong first quarter operating performance
and its outlook for the remainder of the year. The table below
summarizes the company’s fiscal year 2024 guidance.
|
Current Fiscal Year 2024
Guidance |
Prior Fiscal Year 2024
Guidance |
Revenue |
$ 6.1
billion - $6.4 billion |
$5.8 billion
- $6.0 billion |
Adjusted
EBITDA including non-controlling interest |
$535 million
- $575 million |
$505 million
- $545 million |
Cash Flow from Operating Activities |
$380 million - $440 million |
$350 million - $410 million |
Net income guidance is not presented as the
company believes volatility associated with interest, taxes,
depreciation, amortization and other matters affecting net income,
including but not limited to one-time and nonrecurring events and
impact of M&A, will preclude the company from providing
accurate net income guidance for fiscal year 2024.
Conference Call Information
Parsons will host a conference call today, May
1, 2024, at 8:00 a.m. ET to discuss the financial results for its
first quarter 2024.
Access to a webcast of the live conference call
can be obtained through the Investor Relations section of the
company's website (https://investors.parsons.com). Those parties
interested in participating via telephone may register on the
Investor Relations website or by clicking here.
A replay will be available on the company's
website approximately two hours after the conference call and
continuing for one year.
About Parsons Corporation
Parsons (NYSE: PSN) is a leading disruptive
technology provider in the national security and global
infrastructure markets, with capabilities across cyber and
intelligence, space and missile defense, transportation,
environmental remediation, urban development, and critical
infrastructure protection. Please visit Parsons.com and follow us
on LinkedIn and Facebook to learn how we’re making an impact.
Forward-Looking Statements
This Earnings Release and materials included
therewith contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995, Section 27A
of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Forward-looking
statements are based on our current expectations, beliefs, and
assumptions, and are not guarantees of future performance.
Forward-looking statements are inherently subject to uncertainties,
risks, changes in circumstances, trends and factors that are
difficult to predict, many of which are outside of our control.
Accordingly, actual performance, results and events may vary
materially from those indicated in the forward-looking statements,
and you should not rely on the forward-looking statements as
predictions of future performance, results or events. Numerous
factors could cause actual future performance, results and events
to differ materially from those indicated in the forward-looking
statements, including, among others: the impact of COVID-19; any
issue that compromises our relationships with the U.S. federal
government or its agencies or other state, local or foreign
governments or agencies; any issues that damage our professional
reputation; changes in governmental priorities that shift
expenditures away from agencies or programs that we support; our
dependence on long-term government contracts, which are subject to
the government’s budgetary approval process; the size of
addressable markets and the amount of government spending on
private contractors; failure by us or our employees to obtain and
maintain necessary security clearances or certifications; failure
to comply with numerous laws and regulations; changes in government
procurement, contract or other practices or the adoption by
governments of new laws, rules, regulations and programs in a
manner adverse to us; the termination or nonrenewal of our
government contracts, particularly our contracts with the U.S.
government; our ability to compete effectively in the competitive
bidding process and delays, contract terminations or cancellations
caused by competitors’ protests of major contract awards received
by us; our ability to generate revenue under certain of our
contracts; any inability to attract, train or retain employees with
the requisite skills, experience and security clearances; the loss
of members of senior management or failure to develop new leaders;
misconduct or other improper activities from our employees or
subcontractors; our ability to realize the full value of our
backlog and the timing of our receipt of revenue under contracts
included in backlog; changes in the mix of our contracts and our
ability to accurately estimate or otherwise recover expenses, time
and resources for our contracts; changes in estimates used in
recognizing revenue; internal system or service failures and
security breaches; and inherent uncertainties and potential adverse
developments in legal proceedings including litigation, audits,
reviews and investigations, which may result in material adverse
judgments, settlements or other unfavorable outcomes. These factors
are not exhaustive and additional factors could adversely affect
our business and financial performance. For a discussion of
additional factors that could materially adversely affect our
business and financial performance, see the factors including under
the caption “Risk Factors” in our Annual Report with the Securities
and Exchange Commission pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934 for the fiscal year ended December
31, 2023, on Form 10-K, filed on February 14, 2024, and our other
filings with the Securities and Exchange Commission.
All forward-looking statements are based on
currently available information and speak only as of the date on
which they are made. We assume no obligation to update any
forward-looking statements made in this presentation that becomes
untrue because of subsequent events, new information or otherwise,
except to the extent we are required to do so in connection with
our ongoing requirements under federal securities laws.
Media: |
Investor
Relations: |
Bryce
McDevitt |
Dave
Spille |
Parsons
Corporation |
Parsons
Corporation |
(703)
851-4425 |
(571)
655-8264 |
Bryce.McDevitt@Parsons.com |
Dave.Spille@Parsons.com |
|
|
PARSONS CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS (In
thousands, except per share data) (Unaudited)
|
|
Three Months Ended |
|
|
|
March 31, 2024 |
|
|
March 31, 2023 |
|
Revenue |
|
$ |
1,535,676 |
|
|
$ |
1,173,466 |
|
Direct cost
of contracts |
|
|
1,210,827 |
|
|
|
917,188 |
|
Equity in
losses of unconsolidated joint ventures |
|
|
(2,060 |
) |
|
|
(5,840 |
) |
Selling,
general and administrative expenses |
|
|
220,945 |
|
|
|
199,308 |
|
Operating
income |
|
|
101,844 |
|
|
|
51,130 |
|
Interest
income |
|
|
1,152 |
|
|
|
793 |
|
Interest
expense |
|
|
(12,998 |
) |
|
|
(6,458 |
) |
Loss on
extinguishment of debt |
|
|
(211,018 |
) |
|
|
- |
|
Other income
(expense), net |
|
|
(3,326 |
) |
|
|
1,314 |
|
Total other
income (expense) |
|
|
(226,190 |
) |
|
|
(4,351 |
) |
(Loss)
income before income tax expense |
|
|
(124,346 |
) |
|
|
46,779 |
|
Income tax
benefit (expense) |
|
|
32,234 |
|
|
|
(11,503 |
) |
Net (loss)
income including noncontrolling interests |
|
|
(92,112 |
) |
|
|
35,276 |
|
Net income
attributable to noncontrolling interests |
|
|
(15,243 |
) |
|
|
(9,723 |
) |
Net (loss)
income attributable to Parsons Corporation |
|
$ |
(107,355 |
) |
|
$ |
25,553 |
|
(Loss)
earnings per share: |
|
|
|
|
|
|
Basic |
|
$ |
(1.01 |
) |
|
$ |
0.24 |
|
Diluted |
|
$ |
(1.01 |
) |
|
$ |
0.23 |
|
Weighted average number shares used to
compute basic and diluted EPS (In thousands)
(Unaudited)
|
|
Three Months Ended |
|
|
|
March 31, 2024 |
|
|
March 31, 2023 |
|
Basic weighted average number of shares outstanding |
|
|
106,037 |
|
|
|
104,805 |
|
Dilutive
effect of stock-based awards |
|
|
- |
|
|
|
1,032 |
|
Dilutive
effect of convertible senior notes due 2025 |
|
|
- |
|
|
|
8,917 |
|
Diluted
weighted average number of shares outstanding |
|
|
106,037 |
|
|
|
114,754 |
|
Net (loss) income available to
shareholders used to compute diluted EPS as a result of adopting
the if-converted method in connection with the Convertible Senior
Notes (In thousands) (Unaudited)
|
|
Three Months Ended |
|
|
|
March 31, 2024 |
|
|
March 31, 2023 |
|
Net (loss) income attributable to Parsons Corporation |
|
$ |
(107,355 |
) |
|
$ |
25,553 |
|
Convertible
senior notes if-converted method interest adjustment |
|
|
- |
|
|
|
551 |
|
Diluted net
(loss) income attributable to Parsons Corporation |
|
$ |
(107,355 |
) |
|
$ |
26,104 |
|
|
|
|
|
PARSONS CORPORATION
CONSOLIDATED BALANCE SHEETS (In thousands, except
share information)
|
|
|
March 31,
2024 |
|
|
December 31,
2023 |
|
|
|
|
(Unaudited) |
|
|
|
|
Assets |
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
Cash and cash equivalents (including $84,810 and $128,761 Cash of
consolidated joint ventures) |
|
$ |
423,120 |
|
|
$ |
272,943 |
|
|
Accounts
receivable, net (including $332,308 and $274,846 Accounts
receivable of consolidated joint ventures, net) |
|
|
1,023,463 |
|
|
|
915,638 |
|
|
Contract
assets (including $8,521 and $11,096 Contract assets of
consolidated joint ventures) |
|
|
768,007 |
|
|
|
757,515 |
|
|
Prepaid
expenses and other current assets (including $15,808 and $11,929
Prepaid expenses and other current assets of consolidated joint
ventures) |
|
|
212,664 |
|
|
|
191,430 |
|
|
Total current assets |
|
|
2,427,254 |
|
|
|
2,137,526 |
|
|
|
|
|
|
|
|
|
|
Property and
equipment, net (including $3,565 and $3,274 Property and equipment
of consolidated joint ventures, net) |
|
|
98,499 |
|
|
|
98,957 |
|
|
Right of use
assets, operating leases (including $8,656 and $9,885 Right of use
assets, operating leases of consolidated joint ventures) |
|
|
145,803 |
|
|
|
159,211 |
|
|
Goodwill |
|
|
1,791,443 |
|
|
|
1,792,665 |
|
|
Investments
in and advances to unconsolidated joint ventures |
|
|
145,043 |
|
|
|
128,204 |
|
|
Intangible
assets, net |
|
|
261,856 |
|
|
|
275,566 |
|
|
Deferred tax
assets |
|
|
157,547 |
|
|
|
140,162 |
|
|
Other
noncurrent assets |
|
|
70,998 |
|
|
|
71,770 |
|
|
Total assets |
|
$ |
5,098,443 |
|
|
$ |
4,804,061 |
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders' Equity |
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
Accounts
payable (including $33,339 and $49,234 Accounts payable of
consolidated joint ventures) |
|
$ |
274,140 |
|
|
$ |
242,821 |
|
|
Accrued
expenses and other current liabilities (including $165,434 and
$145,040 Accrued expenses and other current liabilities of
consolidated joint ventures) |
|
|
739,211 |
|
|
|
801,423 |
|
|
Contract
liabilities (including $60,374 and $61,234 Contract liabilities of
consolidated joint ventures) |
|
|
282,962 |
|
|
|
301,107 |
|
|
Short-term
lease liabilities, operating leases (including $4,445 and $4,753
Short-term lease liabilities, operating leases of consolidated
joint ventures) |
|
|
55,024 |
|
|
|
58,556 |
|
|
Income taxes
payable |
|
|
2,366 |
|
|
|
6,977 |
|
|
Total current liabilities |
|
|
1,353,703 |
|
|
|
1,410,884 |
|
|
|
|
|
|
|
|
|
|
Long-term
employee incentives |
|
|
24,447 |
|
|
|
22,924 |
|
|
Long-term
debt |
|
|
1,246,443 |
|
|
|
745,963 |
|
|
Long-term
lease liabilities, operating leases (including $4,211 and $5,132
Long-term lease liabilities, operating leases of consolidated joint
ventures) |
|
|
106,692 |
|
|
|
117,505 |
|
|
Deferred tax
liabilities |
|
|
9,763 |
|
|
|
9,775 |
|
|
Other
long-term liabilities |
|
|
114,238 |
|
|
|
120,295 |
|
|
Total liabilities |
|
|
2,855,286 |
|
|
|
2,427,346 |
|
Contingencies (Note 14) |
|
|
|
|
|
|
Shareholders' equity: |
|
|
|
|
|
|
|
Common
stock, $1 par value; authorized 1,000,000,000 shares; 146,717,387
and 146,341,363 shares issued; 48,205,185 and 45,960,122 public
shares outstanding; 57,998,295 and 59,879,857 ESOP shares
outstanding |
|
|
146,717 |
|
|
|
146,341 |
|
|
Treasury
stock, 40,501,385 shares at cost |
|
|
(827,311 |
) |
|
|
(827,311 |
) |
|
Additional
paid-in capital |
|
|
2,759,867 |
|
|
|
2,779,365 |
|
|
Retained
earnings |
|
|
87,261 |
|
|
|
203,724 |
|
|
Accumulated
other comprehensive loss |
|
|
(16,866 |
) |
|
|
(14,908 |
) |
|
Total
Parsons Corporation shareholders' equity |
|
|
2,149,668 |
|
|
|
2,287,211 |
|
|
Noncontrolling interests |
|
|
93,489 |
|
|
|
89,504 |
|
|
Total
shareholders' equity |
|
|
2,243,157 |
|
|
|
2,376,715 |
|
|
Total liabilities and shareholders' equity |
|
|
5,098,443 |
|
|
|
4,804,061 |
|
|
|
|
|
|
|
PARSONS CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS (In
thousands, (Unaudited)
|
|
|
For the Three Months Ended |
|
|
|
|
March 31, 2024 |
|
|
March 31, 2023 |
|
Cash flows from operating activities: |
|
|
|
|
|
|
|
Net (loss) income including noncontrolling interests |
|
$ |
(92,112 |
) |
|
$ |
35,276 |
|
|
Adjustments
to reconcile net (loss) income to net cash used in operating
activities |
|
|
|
|
|
|
|
Depreciation
and amortization |
|
|
24,531 |
|
|
|
28,359 |
|
|
Amortization
of debt issue costs |
|
|
4,099 |
|
|
|
657 |
|
|
Loss (gain)
on disposal of property and equipment |
|
|
198 |
|
|
|
(3 |
) |
|
Loss on
extinguishment of debt |
|
|
211,018 |
|
|
|
- |
|
|
Deferred
taxes |
|
|
4,796 |
|
|
|
(2,586 |
) |
|
Foreign
currency transaction gains and losses |
|
|
2,311 |
|
|
|
(290 |
) |
|
Equity in
losses of unconsolidated joint ventures |
|
|
2,060 |
|
|
|
5,840 |
|
|
Return on
investments in unconsolidated joint ventures |
|
|
16,106 |
|
|
|
7,793 |
|
|
Stock-based
compensation |
|
|
10,523 |
|
|
|
6,992 |
|
|
Contributions of treasury stock |
|
|
15,030 |
|
|
|
14,435 |
|
|
Changes in
assets and liabilities, net of acquisitions and consolidated joint
ventures: |
|
|
|
|
|
|
|
Accounts
receivable |
|
|
(110,066 |
) |
|
|
(47,482 |
) |
|
Contract
assets |
|
|
(11,715 |
) |
|
|
(49,098 |
) |
|
Prepaid
expenses and other assets |
|
|
(21,602 |
) |
|
|
(27,948 |
) |
|
Accounts
payable |
|
|
31,685 |
|
|
|
8,009 |
|
|
Accrued
expenses and other current liabilities |
|
|
(77,591 |
) |
|
|
(10,898 |
) |
|
Contract
liabilities |
|
|
(17,090 |
) |
|
|
16,113 |
|
|
Income
taxes |
|
|
(51,080 |
) |
|
|
6,408 |
|
|
Other
long-term liabilities |
|
|
(4,521 |
) |
|
|
(567 |
) |
|
Net cash
used in operating activities |
|
|
(63,420 |
) |
|
|
(8,990 |
) |
Cash flows from investing activities: |
|
|
|
|
|
|
|
Capital
expenditures |
|
|
(9,436 |
) |
|
|
(8,146 |
) |
|
Proceeds
from sale of property and equipment |
|
|
2 |
|
|
|
19 |
|
|
Investments
in unconsolidated joint ventures |
|
|
(36,076 |
) |
|
|
(13,016 |
) |
|
Proceeds
from sales of investments in unconsolidated joint ventures |
|
|
- |
|
|
|
381 |
|
|
Net cash
used in investing activities |
|
|
(45,510 |
) |
|
|
(20,762 |
) |
Cash flows from financing activities: |
|
|
|
|
|
|
|
Proceeds
from borrowings under credit agreement |
|
|
153,200 |
|
|
|
5,700 |
|
|
Repayments
of borrowings under credit agreement |
|
|
(153,200 |
) |
|
|
(5,700 |
) |
|
Proceeds
from issuance of convertible notes due 2029 |
|
|
800,000 |
|
|
|
- |
|
|
Repurchases
of convertible notes due 2025 |
|
|
(495,575 |
) |
|
|
- |
|
|
Payments for
debt issuance costs |
|
|
(18,941 |
) |
|
|
- |
|
|
Contributions by noncontrolling interests |
|
|
- |
|
|
|
200 |
|
|
Distributions to noncontrolling interests |
|
|
(11,258 |
) |
|
|
(638 |
) |
|
Repurchases
of common stock |
|
|
- |
|
|
|
(6,000 |
) |
|
Taxes paid
on vested stock |
|
|
(16,914 |
) |
|
|
(6,064 |
) |
|
Capped call
transactions |
|
|
(88,400 |
) |
|
|
- |
|
|
Bond hedge
termination |
|
|
195,549 |
|
|
|
- |
|
|
Redemption
of warrants |
|
|
(104,952 |
) |
|
|
- |
|
|
Net cash
(used in) provided by financing activities |
|
|
259,509 |
|
|
|
(12,502 |
) |
|
Effect of
exchange rate changes |
|
|
(402 |
) |
|
|
154 |
|
|
Net increase
(decrease) in cash, cash equivalents, and restricted cash |
|
|
150,177 |
|
|
|
(42,100 |
) |
|
Cash, cash
equivalents and restricted cash: |
|
|
|
|
|
|
|
Beginning of
year |
|
|
272,943 |
|
|
|
262,539 |
|
|
End of
period |
|
$ |
423,120 |
|
|
$ |
220,439 |
|
Contract Awards (in
thousands)
|
|
Three Months Ended |
|
|
|
March 31, 2024 |
|
|
March 31, 2023 |
|
Federal Solutions |
|
$ |
1,282,640 |
|
|
$ |
695,644 |
|
Critical
Infrastructure |
|
|
799,669 |
|
|
|
686,585 |
|
Total
Awards |
|
$ |
2,082,309 |
|
|
$ |
1,382,229 |
|
Backlog (in thousands)
|
|
March 31, 2024 |
|
|
March 31, 2023 |
|
Federal
Solutions: |
|
|
|
|
|
|
Funded |
|
$ |
1,804,251 |
|
|
$ |
1,694,740 |
|
Unfunded |
|
|
3,450,328 |
|
|
|
3,175,568 |
|
Total
Federal Solutions |
|
|
5,254,579 |
|
|
|
4,870,308 |
|
Critical
Infrastructure: |
|
|
|
|
|
|
Funded |
|
|
3,706,435 |
|
|
|
3,445,068 |
|
Unfunded |
|
|
67,829 |
|
|
|
49,866 |
|
Total
Critical Infrastructure |
|
|
3,774,264 |
|
|
|
3,494,934 |
|
Total
Backlog |
|
$ |
9,028,843 |
|
|
$ |
8,365,242 |
|
Book-To-Bill
Ratio1:
|
|
Three Months Ended |
|
|
|
March 31, 2024 |
|
|
March 31, 2023 |
|
Federal Solutions |
|
|
1.4 |
|
|
|
1.1 |
|
Critical
Infrastructure |
|
|
1.3 |
|
|
|
1.3 |
|
Overall |
|
|
1.4 |
|
|
|
1.2 |
|
Non-GAAP Financial Information
The tables under "Parsons Corporation Inc. Reconciliation of
Non-GAAP Measures" present Adjusted Net Income attributable to
Parsons Corporation, Adjusted Earnings per Share, Earnings before
Interest, Taxes, Depreciation, and Amortization (“EBITDA”),
Adjusted EBITDA, EBITDA Margin, and Adjusted EBITDA Margin,
reconciled to their most directly comparable GAAP measure. These
financial measures are calculated and presented on the basis of
methodologies other than in accordance with U.S. generally accepted
accounting principles ("Non-GAAP Measures"). Parsons has provided
these Non-GAAP Measures to adjust for, among other things, the
impact of amortization expenses related to our acquisitions, costs
associated with a loss or gain on the disposal or sale of property,
plant and equipment, restructuring and related expenses, costs
associated with mergers and acquisitions, software implementation
costs, legal and settlement costs, and other costs considered
non-operational in nature. These items have been Adjusted because
they are not considered core to the company’s business or otherwise
not considered operational or because these charges are non-cash or
non-recurring. The company presents these Non-GAAP Measures because
management believes that they are meaningful to understanding
Parsons’s performance during the periods presented and the
company’s ongoing business. Non-GAAP Measures are not prepared in
accordance with GAAP and therefore are not necessarily comparable
to similarly titled metrics or the financial results of other
companies. These Non-GAAP Measures should be considered a
supplement to, not a substitute for, or superior to, the
corresponding financial measures calculated in accordance with
GAAP.
1 Book-to-Bill ratio is calculated as total
contract awards divided by total revenue for the period.
PARSONS CORPORATION
Non-GAAP Financial Information
Reconciliation of Net (Loss) Income to Adjusted
EBITDA (in thousands)
|
|
Three Months Ended |
|
|
|
March 31, 2024 |
|
|
March 31, 2023 |
|
Net (loss) income attributable to Parsons Corporation |
|
$ |
(107,355 |
) |
|
$ |
25,553 |
|
Interest expense, net |
|
|
11,846 |
|
|
|
5,665 |
|
Income tax (benefit) expense |
|
|
(32,234 |
) |
|
|
11,503 |
|
Depreciation and amortization (a) |
|
|
24,531 |
|
|
|
28,359 |
|
Net income attributable to noncontrolling interests |
|
|
15,243 |
|
|
|
9,723 |
|
Equity-based compensation |
|
|
12,656 |
|
|
|
6,703 |
|
Loss on extinguishment of debt |
|
|
211,018 |
|
|
|
- |
|
Transaction-related costs (b) |
|
|
2,886 |
|
|
|
1,618 |
|
Restructuring (c) |
|
|
- |
|
|
|
546 |
|
Other (d) |
|
|
2,502 |
|
|
|
721 |
|
Adjusted EBITDA |
|
$ |
141,093 |
|
|
$ |
90,391 |
|
(a) |
|
Depreciation and amortization for the three months ended
March 31, 2024, is $19.8 million in the Federal Solutions
Segment and $4.8 million in the Critical Infrastructure Segment.
Depreciation and amortization for the three months ended
March 31, 2023, is $24.0 million in the Federal Solutions
Segment and $4.4 million in the Critical Infrastructure
Segment. |
(b) |
|
Reflects costs incurred in
connection with acquisitions and other non-recurring transaction
costs, primarily fees paid for professional services and employee
retention. |
(c) |
|
Reflects costs associated with
and related to our corporate restructuring initiatives. |
(d) |
|
Includes a combination of
gain/loss related to sale of fixed assets, software implementation
costs, and other individually insignificant items that are
non-recurring in nature. |
|
|
|
PARSONS CORPORATION
Non-GAAP Financial Information Computation
of Adjusted EBITDA Attributable to Noncontrolling
Interests (in thousands)
|
|
Three months ended |
|
|
|
March 31, 2024 |
|
|
March 31, 2023 |
|
Federal Solutions Adjusted EBITDA attributable to Parsons
Corporation |
|
$ |
92,541 |
|
|
$ |
56,148 |
|
Federal
Solutions Adjusted EBITDA attributable to noncontrolling
interests |
|
|
49 |
|
|
|
85 |
|
Federal
Solutions Adjusted EBITDA including noncontrolling interests |
|
$ |
92,590 |
|
|
$ |
56,233 |
|
|
|
|
|
|
|
|
Critical
Infrastructure Adjusted EBITDA attributable to Parsons
Corporation |
|
|
32,963 |
|
|
|
24,357 |
|
Critical
Infrastructure Adjusted EBITDA attributable to noncontrolling
interests |
|
|
15,540 |
|
|
|
9,801 |
|
Critical
Infrastructure Adjusted EBITDA including noncontrolling
interests |
|
$ |
48,503 |
|
|
$ |
34,158 |
|
|
|
|
|
|
|
|
Total
Adjusted EBITDA including noncontrolling interests |
|
$ |
141,093 |
|
|
$ |
90,391 |
|
|
|
PARSONS CORPORATION
Non-GAAP Financial Information
Reconciliation of Net (Loss) Income Attributable to Parsons
Corporation to Adjusted Net Income Attributable to Parsons
Corporation (in thousands, except per share
information)
|
|
Three Months Ended |
|
|
|
March 31, 2024 |
|
|
March 31, 2023 |
|
Net (loss) income attributable to Parsons Corporation |
|
$ |
(107,355 |
) |
|
$ |
25,553 |
|
Acquisition
related intangible asset amortization |
|
|
13,708 |
|
|
|
18,009 |
|
Equity-based
compensation |
|
|
12,656 |
|
|
|
6,703 |
|
Loss on
extinguishment of debt |
|
|
211,018 |
|
|
|
- |
|
Transaction-related costs (a) |
|
|
2,886 |
|
|
|
1,618 |
|
Restructuring (b) |
|
|
- |
|
|
|
546 |
|
Other
(c) |
|
|
2,502 |
|
|
|
721 |
|
Tax effect
on adjustments |
|
|
(60,606 |
) |
|
|
(7,349 |
) |
Adjusted net
income attributable to Parsons Corporation |
|
|
74,809 |
|
|
|
45,801 |
|
Adjusted
earnings per share: |
|
|
|
|
|
|
Weighted-average number of basic shares outstanding |
|
|
106,037 |
|
|
|
104,805 |
|
Weighted-average number of diluted shares outstanding (d) |
|
|
107,539 |
|
|
|
105,837 |
|
Adjusted net income attributable to Parsons Corporation per basic
share |
|
$ |
0.71 |
|
|
$ |
0.44 |
|
Adjusted net income attributable to Parsons Corporation per diluted
share |
|
$ |
0.70 |
|
|
$ |
0.43 |
|
(a) |
|
Reflects costs incurred in connection with acquisitions and other
non-recurring transaction costs, primarily fees paid for
professional services and employee retention. |
(b) |
|
Reflects costs associated with
and related to our corporate restructuring initiatives. |
(c) |
|
Includes a combination of
gain/loss related to sale of fixed assets, software implementation
costs, and other individually insignificant items that are
non-recurring in nature. |
(d) |
|
Excludes dilutive effect of
convertible senior notes due 2025 due to bond hedge. |
Parsons (NYSE:PSN)
과거 데이터 주식 차트
부터 8월(8) 2024 으로 9월(9) 2024
Parsons (NYSE:PSN)
과거 데이터 주식 차트
부터 9월(9) 2023 으로 9월(9) 2024