{"id":487458,"date":"2021-05-05T06:33:58","date_gmt":"2021-05-05T10:33:58","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/parsons-reports-first-quarter-2021-results\/"},"modified":"2021-05-05T06:33:58","modified_gmt":"2021-05-05T10:33:58","slug":"parsons-reports-first-quarter-2021-results","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/parsons-reports-first-quarter-2021-results\/","title":{"rendered":"Parsons Reports First Quarter 2021 Results"},"content":{"rendered":"
\n

Q1 2021 Financial Highlights<\/h2>\n

– Revenue of $875 million, includes $64 million of net adverse impact from COVID-19 and pass-through revenue<\/h2>\n

– Net income of $9 million and margin of 1.0%<\/h2>\n

– Adjusted EBITDA of $69 million and margin of 7.9%<\/h2>\n

– Book-to-bill ratio of 1.2x, driven by Critical Infrastructure book-to-bill ratio of 1.4x<\/h2>\n

– Total backlog increased 4.7% from the first quarter of 2020<\/h2>\n

Strategic Highlights<\/h2>\n

– Strong Q1 2021 with six contract wins over $100 million; great start to Q2 2021 with approximately $1 billion in contract wins in the quarter<\/h2>\n

– Strong Braxton performance and integration<\/h2>\n

– Recognized as a top employer by leading minority, women, and human rights organizations<\/h2>\n

– Updated executive compensation policy to tie a portion to core values including diversity, integrity, safety, and sustainability<\/h2>\n

PR Newswire<\/p>\n<\/p><\/div>\n

\n

\n CENTREVILLE, Va.<\/span>, May 5, 2021<\/span> \/PRNewswire\/ — Parsons Corporation (NYSE: PSN) today announced financial results for the first quarter ended March 31, 2021<\/span>.<\/p>\n

\n CEO Commentary<\/b>\n <\/p>\n

“We delivered strong bookings and significant margin expansion with results in line with our internal expectations and historical seasonal patterns. We continue to win large new contracts and I credit that to our focus on technology solutions and our exceptional team,” said Chuck Harrington<\/span>, chairman and chief executive officer of Parsons Corporation. <\/p>\n

“We are off to a strong start to the second quarter with approximately $1 billion<\/span> of awards, and we are excited about our positions in growing and enduring markets in both segments. Revenue growth will accelerate while margins will continue to expand and free cash flow conversion will remain strong as we benefit from our technology solutions aligned with the Biden Administration’s infrastructure and defense priorities and as we move beyond COVID and pass-through revenue headwinds. We will also continue to leverage our robust balance sheet for accretive acquisitions in line with our targeted M&A strategy.”<\/p>\n

\n First Quarter 2021 Results<\/b>\n <\/p>\n

Total revenue for the first quarter of 2021 decreased by $96 million<\/span>, or 10%, from the prior year period to $875 million<\/span>. This decrease was primarily driven by $64 million<\/span> of contract work impacted by the COVID-19 pandemic and lower pass-through revenue. Operating income increased 8%\u00a0to $26<\/span> million\u00a0primarily due to increased contract profitability, including contributions from the company’s high-margin Braxton acquisition. Net income decreased to $9<\/span> million\u00a0and net income margin decreased to 1.0%\u00a0from the prior year period. Diluted earnings per share (EPS) attributable to Parsons was $0<\/span>.09\u00a0in the first quarter of 2021, compared to $0<\/span>.13\u00a0in the prior year period.<\/p>\n

Adjusted EBITDA including noncontrolling interests for the first quarter of 2021 was $69 million<\/span>, a 14%\u00a0increase over the prior year period. Adjusted EBITDA margin increased 170 basis points to 7.9%. Adjusted EPS increased to $0.34<\/span>, compared to $0<\/span>.33\u00a0in the first quarter of 2020.<\/p>\n

\n Segment Results <\/b>\n <\/p>\n

\n
\n Federal Solutions Segment<\/u>
\n <\/b>\n <\/p>\n

\n\n\n\n\n\n\n
\n \n <\/td>\n\n \n <\/td>\n\n

\n
\n Three Months Ended<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n
\n Growth<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n<\/tr>\n
\n \n <\/td>\n\n \n <\/td>\n\n

\n
\n March<\/b>
\n \u00a0<\/b>
\n 31,
2021<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n
\n March<\/b>
\n \u00a0<\/b>
\n 31,
2020<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n
\n Dollars\/<\/b>
\n <\/span>\n <\/p>\n

\n
\n Percent<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n
\n Percent<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n<\/tr>\n
\n

\n Revenue<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 452,069<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 477,571<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n (25,502)<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n

\n -5<\/span>\n <\/p>\n<\/td>\n

\n

\n %<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Adjusted EBITDA<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 32,057<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 31,709<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 348<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n

\n 1<\/span>\n <\/p>\n<\/td>\n

\n

\n %<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Adjusted EBITDA margin<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n 7.1<\/span>\n <\/p>\n<\/td>\n

\n

\n %<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n 6.6<\/span>\n <\/p>\n<\/td>\n

\n

\n %<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n 0.5<\/span>\n <\/p>\n<\/td>\n

\n

\n %<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n 7<\/span>\n <\/p>\n<\/td>\n

\n

\n %<\/span>\n <\/p>\n<\/td>\n<\/tr>\n<\/table><\/div>\n

First quarter 2021 revenue decreased $26 million<\/span>, or 5%, compared to the prior year period primarily due to approximately $27 million<\/span> of net contract work impacted by COVID-19 and lower pass-through revenue, and contract transitions, offset by $31 million<\/span> of acquisition revenue. <\/p>\n

First quarter 2021 Federal Solutions adjusted EBITDA including noncontrolling interests increased by $0.3 million<\/span>, or 1%, compared to the prior year period. Adjusted EBITDA margin increased 50 basis points to 7.1%\u00a0from the first quarter of 2020. Adjusted EBITDA was relatively flat with the prior year period and the increase in adjusted EBITDA margin was driven by increased contract profitability and contributions from the Braxton acquisition.<\/p>\n

\n Critical Infrastructure Segment<\/b>\n <\/p>\n

\n\n\n\n\n\n\n
\n \n <\/td>\n\n \n <\/td>\n\n

\n
\n Three Months Ended<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n
\n Growth<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n<\/tr>\n
\n \n <\/td>\n\n \n <\/td>\n\n

\n
\n March<\/b>
\n \u00a0<\/b>
\n 31,
2021<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n
\n March<\/b>
\n \u00a0<\/b>
\n 31,
2020<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n
\n Dollars\/<\/b>
\n <\/span>\n <\/p>\n

\n
\n Percent<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n
\n Percent<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n<\/tr>\n
\n

\n Revenue<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 422,628<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 493,422<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n (70,794)<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n

\n -14<\/span>\n <\/p>\n<\/td>\n

\n

\n %<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Adjusted EBITDA<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 36,642<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 28,787<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 7,855<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n

\n 27<\/span>\n <\/p>\n<\/td>\n

\n

\n %<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Adjusted EBITDA margin<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n 8.7<\/span>\n <\/p>\n<\/td>\n

\n

\n %<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n 5.8<\/span>\n <\/p>\n<\/td>\n

\n

\n %<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n 2.8<\/span>\n <\/p>\n<\/td>\n

\n

\n %<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n 49<\/span>\n <\/p>\n<\/td>\n

\n

\n %<\/span>\n <\/p>\n<\/td>\n<\/tr>\n<\/table><\/div>\n

First quarter 2021 Critical Infrastructure revenue decreased $71 million<\/span>, or 14%, compared to the prior year period. The decrease was primarily driven by approximately $37 million<\/span> of net contract work impacted by COVID-19 and lower volume on contracts with pass-through revenue, as well as contract transitions.<\/p>\n

First quarter 2021 adjusted EBITDA including noncontrolling interests increased by $8 million<\/span>, or 27%, compared to the prior year period. Adjusted EBITDA margin increased 280 basis points to 8.7%. These increases were primarily driven by lower selling, general and administrative expenses and increased contract profitability.<\/p>\n

\n First Quarter 2021 Key Performance Indicators<\/b>\n <\/p>\n