Bay Street News

Parsons Reports Record Results Since IPO for the Second Quarter of 2024

Q2 2024 Financial Highlights

CHANTILLY, Va., July 31, 2024 (GLOBE NEWSWIRE) — Parsons Corporation (NYSE: PSN) today announced financial results for the second quarter ended June 30, 2024.

CEO Commentary
“We are very pleased with our second quarter results and what the entire Parsons’ team continues to accomplish. Over the last three years, we have transformed the company into a high-value solutions provider that differentiates by leveraging software and cutting-edge technology,” said Carey Smith, chair, president, and chief executive officer. This has resulted in another quarter of record revenue, profitability and cash flow, industry-leading organic revenue growth in both segments, improved win rates and a demonstrated ability to win larger contracts.”

“We achieved over 20% organic growth for the fifth consecutive quarter and double-digit growth across all business units and geographies. We also announced a strategic acquisition that expands our customer base and strengthens our offensive cyber operations and electronic warfare, while adding new capabilities in the counterspace radio frequency domain at a time when near peer adversaries are becoming increasingly aggressive. We are excited about our future as we are well-positioned to take advantage of the tailwinds that are positively impacting both of our segments and six end-markets.”

Second Quarter 2024 Results
Year-over-Year Comparisons (Q2 2024 vs. Q2 2023)
Total revenue for the second quarter of 2024 increased by $314 million, or 23%, to $1.7 billion. This increase was primarily driven by organic growth of 22% due to the continued ramp-up on recent contract awards and execution on the company’s backlog programs including significant growth from its critical infrastructure protection, cyber, and urban development markets. Operating income increased 46% to $111 million primarily due to the ramp-up of new and existing contracts. Net income increased 60% to $69 million. GAAP diluted earnings per share (EPS) attributable to Parsons was $0.63 in the second quarter of 2024, compared to $0.38 in the prior year period.

Adjusted EBITDA including noncontrolling interests for the second quarter of 2024 was $150 million, a 27% increase over the prior year period. Adjusted EBITDA margin expanded 30 basis points to 9.0% in the second quarter of 2024, compared to 8.7% in the second quarter of 2023. The year-over-year adjusted EBITDA and margin increases were driven primarily by higher volume on margin accretive contracts, program execution, and a deliberate focus on indirect cost management. Adjusted EPS was $0.84 in the second quarter of 2024, compared to $0.63 in the second 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 (Q2 2024 vs. Q2 2023)


 
    Three Months Ended     Growth     Six Months Ended     Growth  
(in millions)   June 30, 2024     June 30, 2023     Dollars/
Percent
    Percent     June 30, 2024     June 30, 2023     Dollars/
Percent
    Percent  
Revenue   $ 989     $ 763     $ 226       30 %   $ 1,898     $ 1,397     $ 501       36 %
Adjusted EBITDA     103       86       17       20 %   $ 195     $ 142     $ 53       38 %
Adjusted EBITDA margin     10.4 %     11.2 %     -0.8 %     -7.1 %     10.3 %     10.2 %     0.1 %     1 %

Certain amounts may not foot due to rounding

Second quarter 2024 Federal Solutions revenue increased $226 million, or 30%, compared to the prior year period due to organic growth of 27% 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 critical infrastructure protection and cyber markets.

Second quarter 2024 Federal Solutions adjusted EBITDA including noncontrolling interests increased by $17 million, or 20%. Adjusted EBITDA margin decreased to 10.4% from 11.2% in the prior year period as a result of the $20 million dollars in non-recurring incentive fees realized in Q2 2023. Excluding these incentive fees, Federal Solutions adjusted EBITDA margin would have increased by 160 basis points from the second quarter of 2023.

Critical Infrastructure Segment

Critical Infrastructure Year-over-Year Comparisons (Q2 2024 vs. Q2 2023)

 
    Three Months Ended     Growth     Six Months Ended     Growth  
(in millions)   June 30, 2024     June 30, 2023     Dollars/
Percent
    Percent     June 30, 2024     June 30, 2023     Dollars/
Percent
    Percent  
Revenue   $ 682     $ 594     $ 88       15 %   $ 1,308     $ 1,133     $ 175       15 %
Adjusted EBITDA   $ 47     $ 33     $ 15       46 %   $ 96     $ 67     $ 29       44 %
Adjusted EBITDA margin     7.0 %     5.5 %     1.5 %     27 %     7.3 %     5.9 %     1.4 %     24 %

Certain amounts may not foot due to rounding

Second quarter 2024 Critical Infrastructure revenue increased $88 million, or 15% from the prior year period on both an organic and inorganic basis. Organic growth was driven by higher volume in the company’s Middle East and North American infrastructure portfolios.

Second quarter 2024 adjusted EBITDA including noncontrolling interests increased by $15 million, or 46%, compared to the prior year period. Adjusted EBITDA margin increased 150 basis points to 7.0% from 5.5% in the prior year period. The adjusted EBITDA increases were driven by growth on accretive programs and improved operating performance.

Second Quarter 2024 Key Performance Indicators

Significant Contract Wins
Parsons continues to win new business across both segments and all six end markets. During the second quarter of 2024, the company won two single-award contracts worth more than $100 million each.

Additional Corporate Highlights
Parsons continues its successful track record of acquiring strategic companies in high-growth markets that broaden its portfolio and customer footprint. During the quarter, the company was recognized as a top three global industry leader for professional services by Engineering News-Record and received multiple awards for its sustainable practices and innovative solutions. Parsons was also recognized as one of the best places to work for new graduates.

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 second 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 $6.35 billion – $6.55 billion $6.1 billion – $6.4 billion
Adjusted EBITDA including non-controlling interest $555 million – $595 million $535 million – $575 million
Cash Flow from Operating Activities $395 million – $455 million $380 million – $440 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, July 31, 2024, at 8:00 a.m. ET to discuss the financial results for its second 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.us
PARSONS CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
 
   
    Three Months Ended     Six Months Ended  
    June 30, 2024     June 30, 2023     June 30, 2024     June 30, 2023  
Revenue   $ 1,670,467     $ 1,356,486     $ 3,206,143     $ 2,529,952  
Direct cost of contracts     1,318,931       1,068,220       2,529,758       1,985,408  
Equity in (losses) earnings of unconsolidated joint ventures     (16,837 )     75       (18,897 )     (5,765 )
Selling, general and administrative expenses     223,277       211,897       444,222       411,205  
Operating income     111,422       76,444       213,266       127,574  
Interest income     3,825       306       4,977       1,099  
Interest expense     (13,008 )     (7,299 )     (26,006 )     (13,757 )
Loss on extinguishment of debt                 (211,018 )      
Other income (expense), net     895       543       (2,431 )     1,857  
Total other income (expense)     (8,288 )     (6,450 )     (234,478 )     (10,801 )
Income (loss) before income tax expense     103,134       69,994       (21,212 )     116,773  
Income tax (expense) benefit     (22,415 )     (15,223 )     9,819       (26,726 )
Net income (loss) including noncontrolling interests     80,719       54,771       (11,393 )     90,047  
Net income attributable to noncontrolling interests     (11,547 )     (11,530 )     (26,790 )     (21,253 )
Net income (loss) attributable to Parsons Corporation   $ 69,172     $ 43,241     $ (38,183 )   $ 68,794  
Earnings (loss) per share:                        
Basic   $ 0.65     $ 0.41     $ (0.36 )   $ 0.66  
Diluted   $ 0.63     $ 0.38     $ (0.36 )   $ 0.61  
Weighted average number of shares used to compute basic and diluted EPS
(In thousands) (Unaudited)

 
    Three Months Ended     Six Months Ended  
    June 30, 2024     June 30, 2023     June 30, 2024     June 30, 2023  
Basic weighted average number of shares outstanding     106,303       104,908       106,170       104,856  
Dilutive effect of stock-based awards     1,233       883             941  
Dilutive effect of warrants     415                    
Dilutive effect of convertible senior notes due 2025     2,573       8,917             8,917  
Diluted weighted average number of shares outstanding     110,524       114,708       106,170       114,714  
Net income (loss) available to shareholders used to compute diluted EPS
(In thousands) (Unaudited)

 
    Three Months Ended     Six Months Ended  
    June 30, 2024     June 30, 2023     June 30, 2024     June 30, 2023  
Net income (loss) attributable to Parsons Corporation   $ 69,172     $ 43,241       (38,183 )     68,794  
Convertible senior notes if-converted method interest adjustment     54       554             1,106  
Diluted net income (loss) attributable to Parsons Corporation   $ 69,226     $ 43,795       (38,183 )     69,900  
  PARSONS CORPORATION
CONSOLIDATED BALANCE SHEETS
(In thousands, except share information)
           
      June 30, 2024     December 31, 2023  
      (Unaudited)        
Assets            
Current assets:            
  Cash and cash equivalents (including $128,259 and $128,761 Cash of consolidated joint ventures)   $ 528,462     $ 272,943  
  Accounts receivable, net (including $278,869 and $274,846 Accounts receivable of consolidated joint ventures, net)     1,042,936       915,638  
  Contract assets (including $41,963 and $11,096 Contract assets of consolidated joint ventures)     803,685       757,515  
  Prepaid expenses and other current assets (including $15,220 and $11,929 Prepaid expenses and other current assets of consolidated joint ventures)     198,619       191,430  
  Total current assets     2,573,702       2,137,526  
               
  Property and equipment, net (including $3,207 and $3,274 Property and equipment of consolidated joint ventures, net)     98,217       98,957  
  Right of use assets, operating leases (including $7,423 and $9,885 Right of use assets, operating leases of consolidated joint ventures)     136,169       159,211  
  Goodwill     1,790,903       1,792,665  
  Investments in and advances to unconsolidated joint ventures     157,243       128,204  
  Intangible assets, net     248,079       275,566  
  Deferred tax assets     162,669       140,162  
  Other noncurrent assets     71,748       71,770  
  Total assets   $ 5,238,730     $ 4,804,061  
               
Liabilities and Shareholders’ Equity            
Current liabilities:            
  Accounts payable (including $55,621 and $49,234 Accounts payable of consolidated joint ventures)   $ 252,838     $ 242,821  
  Accrued expenses and other current liabilities (including $150,734 and $145,040 Accrued expenses and other current liabilities of consolidated joint ventures)     822,124       801,423  
  Contract liabilities (including $66,042 and $61,234 Contract liabilities of consolidated joint ventures)     298,104       301,107  
  Short-term lease liabilities, operating leases (including $4,123 and $4,753 Short-term lease liabilities, operating leases of consolidated joint ventures)     52,840       58,556  
  Income taxes payable     1,042       6,977  
  Total current liabilities     1,426,948       1,410,884  
               
  Long-term employee incentives     25,491       22,924  
  Long-term debt     1,247,306       745,963  
  Long-term lease liabilities, operating leases (including $3,299 and $5,132 Long-term lease liabilities, operating leases of consolidated joint ventures)     98,152       117,505  
  Deferred tax liabilities     9,789       9,775  
  Other long-term liabilities     111,400       120,295  
  Total liabilities     2,919,086       2,427,346  
Contingencies (Note 12)            
Shareholders’ equity:            
  Common stock, $1 par value; authorized 1,000,000,000 shares; 146,698,035 and 146,341,363 shares issued; 50,022,445 and 45,960,122 public shares outstanding; 56,161,683 and 59,879,857 ESOP shares outstanding     146,697       146,341  
  Treasury stock, 40,501,385 shares at cost     (827,311 )     (827,311 )
  Additional paid-in capital     2,762,728       2,779,365  
  Retained earnings     155,535       203,724  
  Accumulated other comprehensive loss     (19,139 )     (14,908 )
  Total Parsons Corporation shareholders’ equity     2,218,510       2,287,211  
  Noncontrolling interests     101,134       89,504  
  Total shareholders’ equity     2,319,644       2,376,715  
  Total liabilities and shareholders’ equity     5,238,730       4,804,061  
  PARSONS CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands,
(Unaudited)
     
      For the Six Months Ended  
      June 30, 2024     June 30, 2023  
Cash flows from operating activities:            
  Net (loss) income including noncontrolling interests   $ (11,393 )   $ 90,047  
  Adjustments to reconcile net (loss) income to net cash used in operating activities            
  Depreciation and amortization     48,971       57,048  
  Amortization of debt issue costs     5,326       1,414  
  Loss (gain) on disposal of property and equipment     408       43  
  Loss on extinguishment of debt     211,018        
  Provision for doubtful accounts           91  
  Deferred taxes     (222 )     (5,220 )
  Foreign currency transaction gains and losses     2,039       230  
  Equity in losses of unconsolidated joint ventures     18,897       5,765  
  Return on investments in unconsolidated joint ventures     20,788       9,313  
  Stock-based compensation     20,675       15,978  
  Contributions of treasury stock     30,140       29,167  
  Changes in assets and liabilities, net of acquisitions and consolidated
joint ventures:
           
  Accounts receivable     (131,414 )     (227,756 )
  Contract assets     (47,905 )     (78,254 )
  Prepaid expenses and other assets     (9,396 )     (40,899 )
  Accounts payable     10,585       35,043  
  Accrued expenses and other current liabilities     (10,533 )     33,336  
  Contract liabilities     (1,360 )     76,522  
  Income taxes     (52,509 )     10,309  
  Other long-term liabilities     (6,308 )     1,809  
  Net cash provided by operating activities     97,807       13,986  
Cash flows from investing activities:            
  Capital expenditures     (18,698 )     (17,956 )
  Proceeds from sale of property and equipment     53       65  
  Payments for acquisitions, net of cash acquired     (63 )     (42,273 )
  Investments in unconsolidated joint ventures     (70,032 )     (24,507 )
  Return of investments in unconsolidated joint ventures     25       72  
  Proceeds from sales of investments in unconsolidated joint ventures           381  
  Net cash used in investing activities     (88,715 )     (84,218 )
Cash flows from financing activities:            
  Proceeds from borrowings under credit agreement     153,200       187,400  
  Repayments of borrowings under credit agreement     (153,200 )     (187,400 )
  Proceeds from issuance of convertible notes due 2029     800,000        
  Repurchases of convertible notes due 2025     (495,575 )      
  Payments for debt issuance costs     (19,185 )      
  Contributions by noncontrolling interests     77       200  
  Distributions to noncontrolling interests     (15,249 )     (2,487 )
  Repurchases of common stock     (10,000 )     (8,000 )
  Taxes paid on vested stock     (18,940 )     (6,838 )
  Capped call transactions     (88,400 )      
  Bond hedge termination     195,549        
  Redemption of warrants     (104,952 )      
  Proceeds from issuance of common stock     3,740       2,940  
  Net cash (used in) provided by financing activities     247,065       (14,185 )
  Effect of exchange rate changes     (638 )     467  
  Net increase (decrease) in cash, cash equivalents, and restricted cash     255,519       (83,950 )
  Cash, cash equivalents and restricted cash:            
  Beginning of year     272,943       262,539  
  End of period   $ 528,462     $ 178,589  
Contract Awards
(in thousands)

 
    Three Months Ended     Six Months Ended  
    June 30, 2024     June 30, 2023     June 30, 2024     June 30, 2023  
Federal Solutions   $ 805,170     $ 1,182,127     $ 2,087,810     $ 1,877,771  
Critical Infrastructure     694,894       749,035       1,494,563       1,435,620  
Total Awards   $ 1,500,064     $ 1,931,162     $ 3,582,373     $ 3,313,391  
Backlog
(in thousands)

 
    June 30, 2024     June 30, 2023  
Federal Solutions:            
Funded   $ 1,736,698     $ 1,506,235  
Unfunded     3,284,801       3,709,288  
Total Federal Solutions     5,021,499       5,215,523  
Critical Infrastructure:            
Funded     3,754,225       3,615,955  
Unfunded     55,882       70,109  
Total Critical Infrastructure     3,810,107       3,686,064  
Total Backlog   $ 8,831,606     $ 8,901,587  
Book-To-Bill Ratio1:

 
    Three Months Ended     Six Months Ended  
    June 30, 2024     June 30, 2023     June 30, 2024     June 30, 2023  
Federal Solutions     0.8       1.5       1.1       1.3  
Critical Infrastructure     1.0       1.3       1.1       1.3  
Overall     0.9       1.4       1.1       1.3  

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 Income (Loss) to Adjusted EBITDA
(in thousands)

 
    Three Months Ended     Six Months Ended  
    June 30, 2024     June 30, 2023     June 30, 2024     June 30, 2023  
Net income (loss) attributable to Parsons Corporation   $ 69,172     $ 43,241     $ (38,183 )   $ 68,794  
Interest expense, net     9,183       6,993       21,029       12,658  
Income tax expense (benefit)     22,415       15,223       (9,819 )     26,726  
Depreciation and amortization (a)     24,440       28,689       48,971       57,048  
Net income attributable to noncontrolling interests     11,547       11,530       26,790       21,253  
Equity-based compensation     10,647       9,314       23,303       16,017  
Loss on extinguishment of debt                 211,018        
Transaction-related costs (b)     2,302       1,917       5,188       3,535  
Restructuring (c)                       546  
Other (d)     524       1,399       3,026       2,120  
Adjusted EBITDA   $ 150,230     $ 118,306     $ 291,323     $ 208,697  

(a) Depreciation and amortization for the three and six months ended June 30, 2024, is $19.5 million and $39.3 million, respectively in the Federal Solutions Segment and $4.9 million and $9.7 million, respectively in the Critical Infrastructure Segment. Depreciation and amortization for the three and six months ended June 30, 2023, is $24.4 million and $48.4 million, respectively in the Federal Solutions Segment and $4.3 million and $8.6 million, respectively 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     Six Months Ended  
    June 30, 2024     June 30, 2023     June 30, 2024     June 30, 2023  
Federal Solutions Adjusted EBITDA attributable to Parsons Corporation   $ 102,781     $ 85,640     $ 195,322     $ 141,788  
Federal Solutions Adjusted EBITDA attributable to noncontrolling interests     41       85       90       170  
Federal Solutions Adjusted EBITDA including noncontrolling interests   $ 102,822     $ 85,725     $ 195,412     $ 141,958  
                         
Critical Infrastructure Adjusted EBITDA attributable to Parsons Corporation     35,612       20,936       68,575       45,293  
Critical Infrastructure Adjusted EBITDA attributable to noncontrolling interests     11,796       11,645       27,336       21,446  
Critical Infrastructure Adjusted EBITDA including noncontrolling interests   $ 47,408     $ 32,581     $ 95,911     $ 66,739  
                         
Total Adjusted EBITDA including noncontrolling interests   $ 150,230     $ 118,306     $ 291,323     $ 208,697  
PARSONS CORPORATION
Non-GAAP Financial Information
Reconciliation of Net Income (Loss) Attributable to Parsons Corporation to Adjusted Net Income Attributable to Parsons Corporation
(in thousands, except per share information)

 
    Three Months Ended     Six Months Ended  
    June 30, 2024     June 30, 2023     June 30, 2024     June 30, 2023  
Net income (loss) attributable to Parsons Corporation   $ 69,172     $ 43,241     $ (38,183 )   $ 68,794  
Acquisition related intangible asset amortization     13,741       18,117       27,449       36,126  
Equity-based compensation     10,647       9,314       23,303       16,017  
Loss on extinguishment of debt                 211,018        
Transaction-related costs (a)     2,302       1,917       5,188       3,535  
Restructuring (b)                       546  
Other (c)     524       1,399       3,026       2,120  
Tax effect on adjustments     (6,347 )     (7,726 )     (66,953 )     (15,075 )
Adjusted net income attributable to Parsons Corporation     90,039       66,262       164,848       112,063  
Adjusted earnings per share:                        
Weighted-average number of basic shares outstanding     106,303       104,908       106,170       104,856  
Weighted-average number of diluted shares outstanding (d)     107,536       105,791       107,523       105,797  
Adjusted net income attributable to Parsons Corporation per basic share   $ 0.85     $ 0.63     $ 1.55     $ 1.07  
Adjusted net income attributable to Parsons Corporation per diluted share   $ 0.84     $ 0.63     $ 1.53     $ 1.06  

(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.


Bay Street News