Parsons Reports First Quarter 2020 Financial Results; Chuck Harrington Quoted

Chuck Harrington
Chuck Harrington

Parsons has announced financial results for the first quarter that ended March 31, reporting revenue increases, strong revenue growth and net income increases, the company reported on Wednesday.

"In what was an unprecedented first quarter, we delivered strong organic revenue growth and achieved profitability results that exceeded our internal plan. We continue to win high-end work in our Federal Solutions market and deliver revenue growth in our Critical Infrastructure segment," said Chuck Harrington, chairman and CEO of Parsons and 2020 Wash100 Award recipient. 

Parsons reported a total revenue for the first quarter of 2020 increased 7 percent to $971 million. The company's operating income increased 3 percent to $24 million primarily due to organic revenue growth and a net income increase of 33 percent over the prior year period to $13 million. 

The company's net income margin increased to 1.3 percent. Diluted earnings per share (EPS) attributable to Parsons was $0.13 in the first quarter of 2020 compared to $0.12 in the first quarter of 2019. Adjusted EBITDA has experienced a 16 percent decrease from the strong prior year period. Adjusted EBITDA margin decreased to 6.2 percent.

First quarter 2020 revenue increased $55 million, or 13 percent, compared to the prior year period. The increase was driven by organic growth of 11 percent and $6 million from acquisitions. First quarter 2020 Federal Solutions Adjusted EBITDA decreased by $9 million, compared to the prior year period. 

Parsons reported adjusted EBITDA margin decreased to 6.6 percent. First quarter 2020 revenue increased $12 million, compared to the prior year period. The increase was driven primarily by growth on existing contracts.

First quarter 2020 Critical Infrastructure Adjusted EBITDA including noncontrolling interests decreased by $3 million. Adjusted EBITDA margin including noncontrolling interests decreased to 5.8 percent, driven by lower equity in earnings from unconsolidated joint ventures.

Parsons reported notable contract awards throughout the quarter. The company continued to win large single-award contracts in its Federal Solutions segment. In addition, the company won a prime position on a significant multiple-award indefinite-delivery/indefinite-quantity (IDIQ) contract and a large joint venture project.

The company noted the successful launch of DetectWise, a product suite that includes contactless, mobile health screening kiosks, modular testing and decontamination facilities to keep the public safe in high-traffic areas. 

Parsons has been named a global leader in defining and advancing the standards of ethical business practices by Ethisphere, as one of the 2020 World's Most Ethical Companies. The company has been honored with this recognition for 11 consecutive years.

The company has also established a strategic partnership with ALS for launch and space system engineering, operations, and integration opportunities with the U.S. government and commercial customers.

"I would like to send our deepest sympathies to all who have been affected by the COVID-19 pandemic. These are challenging times for everyone, and we will continue to put the safety and well-being of our employees, customers and partners first," added Harrington.

About Parsons Corporation

Parsons is a leading disruptive technology provider in the global defense, intelligence, and critical infrastructure markets, with capabilities across cybersecurity, missile defense, space, connected infrastructure, and smart cities.

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