Parsons Corporation. (NYSE:PSN) Q1 2022 Earnings Conference Call May 4, 2022 8:00 AM ET

Company Participants

Carey Smith - President & CEO

George Ball - CFO

Dave Spille - VP, IR

Conference Call Participants

Sheila Kahyaoglu - Jefferies

Gavin Parsons - Goldman Sachs

Bert Subin - Stifel Financial Corp

Cai von Rumohr - Cowen & Company

Louie DiPalma - William Blair

Tobey Sommer - Truist Securities

Ron Epstein - Bank of America

Operator

Good day, and thank you for standing by. Welcome to the First Quarter 2022 Parsons Corporation Earnings Conference Call. At this time, all participants are in listen-only mode. After the presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised, today's conference maybe recorded. [Operator Instructions]

I'd now like to hand the conference over to your host today, Dave Spille, Senior Vice President, Investor Relations. Please go ahead.

Dave Spille

Thank you. Good morning, and thank you for joining us today to discuss our first quarter 2022 financial results. Please note that we’ve provided presentation slides on the Investor Relations section of our website. On the call with me today are Carey Smith, President and CEO; and George Ball, CFO. Today, Carey will discuss our corporate strategy and operational highlights, and then George will provide an overview of our first quarter financial results. We then will close with a question-and-answer session.

Management may also make forward-looking statements during the call regarding future events, anticipated future trends, and the anticipated future performance of the company. We caution you that such statements are not guarantees of future performance, and involve risks and uncertainties that are difficult to predict. Actual results may differ materially from those projected in the forward-looking statements due to a variety of factors. These risk factors are described in our Form 10-K for fiscal year ended December 31, 2021, and other SEC filings. Please refer to our earnings press release for Parsons' complete forward-looking statement disclosure. We do not undertake any obligation to update forward-looking statements. Management will also make reference to non-GAAP financial measures during this call. We remind you that these non-GAAP financial measures are not a substitute for their comparable GAAP measures.

And now, I'll turn the call over to Carey.

Carey Smith

Thank you, Dave. Good morning, everyone, and welcome to Parson's first quarter 2022 earnings call. We delivered strong first quarter financial results, and continued the momentum established in the second half of 2021. We generated healthy organic revenue growth in both business segments, reported our highest first quarter adjusted EBITDA on operating cashflows since our IPO in May 2019, won three contract awards over $100 million, and continued strong hiring and retention. For the full year, we are reiterating our guidance across the board. During the quarter, we generated total year-over-year growth of 9%, with contributions from both segments and all four business units. Our year-over-year organic revenue growth was 6%, including 8% within our Critical Infrastructure segment, and 4% within our Federal Solutions segment. We also grew adjusted EBITDA 8% year-over-year, and improved operating cashflow by $40 million from the prior year period. I attribute this success to both our strategic evolution to an integrated solutions provider, as well as our strong operating discipline. We lead with differentiated technology, have proven our ability to recruit and retain employees, and have a strong position into complementary, enduring high-growth markets that are well aligned with macroeconomic trends, and United States Federal government priorities. This balanced portfolio across Critical Infrastructure and national security markets, is a differentiator for Parsons.