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Parsons Reports Strong First Quarter 2023 Results

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Q1 2023 Financial Highlights

  • Record quarterly revenue of $1.2 billion, representing a 24% increase year-over-year
  • Record quarterly organic revenue growth of 12% driven by strength in both segments
  • Record first quarter net income increases by 24% to $26 million
  • Record first quarter adjusted EBITDA increases by 22% to $90 million
  • Record first quarter cash flow from operations increases $17 million from Q1 2022
  • Book-to-bill ratio of 1.2x on contract awards growth of 51%
  • Increasing 2023 guidance ranges for revenue, adjusted EBITDA, and cash flow from operations

CENTREVILLE, Va., May 03, 2023 (GLOBE NEWSWIRE) — Parsons Corporation (NYSE: PSN) today announced financial results for the first quarter ended March 31, 2023.

CEO Commentary

“We had a strong quarter with record first quarter total revenue, organic growth, adjusted EBITDA, and cash flow results,” said Carey Smith, chair, president, and chief executive officer. “We also won large strategic contracts in both our Federal Solutions and Critical Infrastructure segments driving a 51% increase in contract award activity. In addition, we maintained our hiring and retention momentum, acquired a strategic asset that enhances Parsons’ critical infrastructure protection capabilities, and increased all three of our 2023 guidance metrics. I am very excited about our business given the significant amount of new and recompete contracts we have won, our strong backlog, and robust balance sheet that will enable us to continue to make accretive acquisitions to drive future revenue growth and margin expansion.”

First Quarter 2023 Results

Year-over-Year Comparisons (Q1 2023 vs. Q1 2022)

Total revenue for the first quarter of 2023 increased by $224 million, or 24%, to $1.2 billion. This increase was primarily driven by organic growth of 12% due to higher volume on new and existing contracts. The company’s Xator acquisition contributed approximately $112 million of revenue in the first quarter of 2023. Operating income increased 43% to $51 million primarily due to the ramp-up of new and existing contracts. Net income increased 24% to $26 million. GAAP diluted earnings per share (EPS) attributable to Parsons was $0.23 in the first quarter of 2023, compared to $0.19 in the prior year period.

Adjusted EBITDA including noncontrolling interests for the first quarter of 2023 was $90 million, a 22% increase over the prior year period. The adjusted EBITDA increase was driven primarily by the ramp-up of new and existing contracts and contributions from our Xator acquisition. Adjusted EBITDA margin was 7.7% in the first quarter of 2023, compared to 7.8% in the first quarter of 2022. The year over year margin decrease was primarily driven by lower equity in earnings as a result of contract change orders, which are delaying the timing of profit recognition into future quarters, and legacy program impacts. Adjusted EPS was $0.43 in the first quarter of 2023, compared to $0.40 in the first quarter of 2022. The year-over-year adjusted EPS increase was driven by the adjusted EBITDA increases noted above.

Segment Results

Federal Solutions Segment

Federal Solutions Year-over-Year Comparisons (Q1 2023 vs. Q1 2022)

    Three Months Ended     Growth  
    March 31, 2023     March 31, 2022     Dollars/
Percent
    Percent  
Revenue   $ 634,546     $ 491,629     $ 142,917       29 %
Adjusted EBITDA   $ 56,233     $ 42,755     $ 13,478       32 %
Adjusted EBITDA margin     8.9 %     8.7 %     0.2 %     2 %

First quarter 2023 revenue increased $143 million, or 29%, compared to the prior year period due to organic growth of 6% and approximately $112 million from Xator. Organic revenue growth was primarily driven by higher volume on existing contracts.

First quarter 2023 Federal Solutions adjusted EBITDA including noncontrolling interests increased by $13 million, or 32%. Adjusted EBITDA margin increased to 8.9% from 8.7% in the prior year period. These increases were driven primarily by operating leverage and our higher margin Xator acquisition.

Critical Infrastructure Segment

Critical Infrastructure Year-over-Year Comparisons (Q1 2023 vs. Q1 2022)

    Three Months Ended     Growth  
    March 31, 2023     March 31, 2022     Dollars/
Percent
    Percent  
Revenue   $ 538,920     $ 457,440     $ 81,480       18 %
Adjusted EBITDA   $ 34,158     $ 31,493     $ 2,665       8 %
Adjusted EBITDA margin     6.3 %     6.9 %     -0.6 %     -9 %

First quarter 2023 Critical Infrastructure revenue increased $81 million, or 18% (all organic), compared to the prior year period driven primarily by higher contract volume in both our Middle East and North American operations.

First quarter 2023 adjusted EBITDA including noncontrolling interests increased by $2.7 million, or 8%, compared to the prior year period. Adjusted EBITDA margin decreased to 6.3% from 6.9% in the prior year period. The increase in adjusted EBITDA was driven by higher volume on new and existing contracts, offset by lower equity in earnings as a result of change orders and legacy program impacts.

First Quarter 2023 Key Performance Indicators

  • Book-to-bill ratio: 1.2x on net bookings of $1.4 billion.
  • Book-to-bill ratio (trailing twelve-months): 1.1x on net bookings of $4.7 billion.
  • Total backlog: $8.4 billion, up $186 million from Q4 2022.
  • Cash flow from operating activities: First quarter 2023: ($9) million compared to ($26) million in first quarter of 2022.

Significant Contract Wins

Parsons continues to win large strategic contracts in both the Federal Solutions and Critical Infrastructure segments. During the first quarter of 2023, the company won three single-award contracts worth more than $100 million each and several meaningful multiple-award IDIQ contracts. Shortly after the first quarter ended, Parsons received three additional single-award contracts valued at more than $100 million each.

  • Awarded a new three-year $750 million State Department humanitarian support contract. Led by Xator, the $750 million ceiling single-award contract includes a one-year base period of $250 million and two one-year option periods valued at $250 million each. The company booked the first year of this contract for $250 million.
  • Received an additional $214 million to continue overseeing the implementation of remediation projects on the Giant Mine program in Canada, which is one of the largest mine reclamation projects in the world.
  • Awarded a new $164 million four-year contract by the Army Corps of Engineers to deliver a new Explosive Decomposition Chamber facility at Holston Army Ammunition Plant. This follows Parsons’ award of the Radford Army Ammunition Plant for a new Energetic Waste Incinerator / Contaminated Waste Processor. These strategic wins are part of the larger and broader 15-year and more than $16 billion Army Ammunition Plant Modernization Plan to modernize the United States’ depots, arsenals, and ammunition plants.
  • Awarded a $94 million recompete contract to provide command, control, communications, computers, and capabilities development support services to the United States Cyber Command. This important contract provides support to expand full-spectrum military cyberspace operations. The period of performance is one 12-month base period with four 12-month options.
  • Awarded prime positions on several multiple-award IDIQ vehicles including a $75 billion ceiling contract with the Department of Health and Human Services Administration for the provision and operation of Influx Care Facilities.
  • After the end of Q1 2023, the company was awarded the recompete Technical Support Services Contract 5 by the Federal Aviation Administration (FAA). The $1.8 billion ceiling value contract will support the FAA’s Aviation System Capital Investment Plan and includes a base period of four years and two three-year option periods. Parsons has been the prime contractor for this work for more than two decades. With the Infrastructure Investment and Jobs Act, the FAA has $5 billion of additional funding for facilities-related work.
  • After the end of Q1 2023, the company was awarded a new five-year single-award contract in the federal solutions segment from the General Services Administration with a potential value of $1.2 billion. This contract supports the Department of Defense and its strategic partners in delivering global quick reaction capabilities leveraging advanced technology solutions across the all-domain battlespace.
  • After the first quarter of 2023 ended, the company was also awarded a new four year single-award contract for a transportation project valued at more than $100 million.

Additional Corporate Highlights

Parsons continues to build on its strong track record of acquiring and partnering with strategic companies in high-growth markets that broaden its portfolio and customer footprint. During the quarter, the company also won multiple awards for its hiring, diversity, and ethical business practices.

  • Announced the IPKeys Power Partners acquisition to enhance the company’s critical infrastructure protection capabilities through comprehensive cloud-based cybersecurity, software solutions that operate at the intersection of information and operational technology, and technologies that will help accelerate the global clean energy transition.
  • Named by Ethisphere as one of the 2023 World’s Most Ethical Companies. The company has been honored with this recognition for 14 consecutive years.
  • Established a strategic partnership with Microsoft to help organizations around the world enhance their digital transformation and cybersecurity capabilities. The partnership will build upon existing collaboration between the two companies, combining the power of Microsoft’s Azure cloud and artificial intelligence (AI) technologies with Parsons’ expertise in the national security and global infrastructure markets, unlocking efficiencies, improving security, and opening doors to innovation as both companies work to upgrade society’s infrastructure.
  • Recognized by Minority Engineer Magazine’s Top 50 Diversity Employer List for 2023.
  • Recognized by the Los Angeles Business Journal as the Diversity, Equity, and Inclusion Large Company of the Year.
  • Recognized by The American Council of Engineering Companies of New York for the company’s initiatives that attract, hire, and promote personal and professional growth opportunities for women, racial diversity, LGBTQ+ and other underrepresented people in the engineering industry in New York.

Fiscal Year 2023 Guidance

The company is increasing its fiscal year 2023 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 2023 guidance.

  Current Fiscal Year
2023 Guidance
Prior Fiscal Year
2023 Guidance
Revenue $4.5 billion – $4.7 billion $4.375 billion – $4.575 billion
Adjusted EBITDA including non-controlling interest $375 million – $415 million $365 million – $405 million
Cash Flow from Operating Activities $275 million – $335 million $270 million – $330 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 2023.

Conference Call Information

Parsons will host a conference call today, May 3, 2023, at 8:00 a.m. ET to discuss the financial results for its first quarter 2023.

Listeners may access a webcast of the live conference call from the Investor Relations section of the company’s website at www.Parsons.com. Listeners may also access a slide presentation on the website, which summarizes the company’s first quarter 2023 results. Listeners should go to the website 15 minutes before the live event to download and install any necessary audio software.

Listeners may also participate in the conference call by dialing +1 833-634-2602 (domestic) or +1 412-902-4114 (international). No passcode is required.

A replay will be available on the company’s website approximately two hours after the conference call and continuing for one year. A telephonic replay also will be available through May 10, 2023, at +1 877-344-7529 (domestic) or +1 412-317-0088 (international) and entering passcode 2235905.

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, 2022, on Form 10-K, filed on February 17, 2023, 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.

PARSONS CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)

    For the Three Months Ended  
    March 31, 2023     March 31, 2022  
Revenue   $ 1,173,466     $ 949,069  
Direct cost of contracts     917,188       733,900  
Equity in (losses) earnings of unconsolidated joint ventures     (5,840 )     5,598  
Selling, general and administrative expenses     199,308       185,077  
Operating income     51,130       35,690  
Interest income     793       65  
Interest expense     (6,458 )     (3,938 )
Other income (expense), net     1,314       145  
Total other income (expense)     (4,351 )     (3,728 )
Income before income tax expense     46,779       31,962  
Income tax expense     (11,503 )     (8,119 )
Net income including noncontrolling interests     35,276       23,843  
Net income attributable to noncontrolling interests     (9,723 )     (3,176 )
Net income attributable to Parsons Corporation   $ 25,553     $ 20,667  
Earnings per share:            
Basic   $ 0.24     $ 0.20  
Diluted   $ 0.23     $ 0.19  
                 

Weighted average number shares used to compute basic and diluted EPS
(In thousands) (Unaudited)

    Three Months Ended  
    March 31, 2023     March 31, 2022  
Basic weighted average number of shares outstanding     104,805       103,769  
Stock-based awards     1,032       780  
Convertible senior notes     8,917       8,917  
Diluted weighted average number of shares outstanding     114,754       113,466  
                 

Net 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, 2023     March 31, 2022  
Net income attributable to Parsons Corporation   $ 25,553     $ 20,667  
Convertible senior notes if-converted method interest adjustment     551       540  
Diluted net income attributable to Parsons Corporation   $ 26,104     $ 21,207  
                 

PARSONS CORPORATION
CONSOLIDATED BALANCE SHEETS
(In thousands, except share information)

      March 31, 2023     December 31, 2022  
      (Unaudited)        
Assets            
Current assets:            
  Cash and cash equivalents (including $96,662 and $53,193 Cash of consolidated joint ventures)   $ 220,439     $ 262,539  
  Accounts receivable, net (including $212,924 and $217,419 Accounts receivable of consolidated joint ventures, net)     763,720       717,345  
  Contract assets (including $9,285 and $11,313 Contract assets of consolidated joint ventures)     683,631       634,033  
  Prepaid expenses and other current assets (including $12,871 and $7,913 Prepaid expenses and other current assets of consolidated joint ventures)     133,553       105,866  
  Total current assets     1,801,343       1,719,783  
               
  Property and equipment, net (including $3,083 and $2,543 Property and equipment of consolidated joint ventures, net)     94,759       96,050  
  Right of use assets, operating leases (including $6,863 and $6,315 Right of use assets, operating leases of consolidated joint ventures)     148,095       155,090  
  Goodwill     1,661,913       1,661,850  
  Investments in and advances to unconsolidated joint ventures     107,416       107,425  
  Intangible assets, net     236,117       254,127  
  Deferred tax assets     140,366       137,709  
  Other noncurrent assets     65,797       66,108  
  Total assets   $ 4,255,806     $ 4,198,142  
               
Liabilities and Shareholders’ Equity            
Current liabilities:            
  Accounts payable (including $45,581 and $49,078 Accounts payable of consolidated joint ventures)   $ 209,462     $ 201,428  
  Accrued expenses and other current liabilities (including $128,145 and $102,417 Accrued expenses and other current liabilities of consolidated joint ventures)     635,089       630,193  
  Contract liabilities (including $39,958 and $40,654 Contract liabilities of consolidated joint ventures)     229,225       213,064  
  Short-term lease liabilities, operating leases (including $2,992 and $2,552 Short-term lease liabilities, operating leases of consolidated joint ventures)     55,606       59,144  
  Income taxes payable     10,689       4,290  
  Total current liabilities     1,140,071       1,108,119  
               
  Long-term employee incentives     18,599       17,375  
  Long-term debt     744,140       743,605  
  Long-term lease liabilities, operating leases (including $3,871 and $3,763 Long-term lease liabilities, operating leases of consolidated joint ventures)     107,482       111,417  
  Deferred tax liabilities     12,555       12,471  
  Other long-term liabilities     107,429       109,220  
  Total liabilities     2,130,276       2,102,207  
Contingencies (Note 12)            
Shareholders’ equity:            
  Common stock, $1 par value; authorized 1,000,000,000 shares; 146,243,639 and 146,132,016 shares issued; 42,248,807 and 40,960,845 public shares outstanding; 62,565,812 and 63,742,151 ESOP shares outstanding     146,244       146,132  
  Treasury stock, 41,429,020 shares at cost     (844,936 )     (844,936 )
  Additional paid-in capital     2,712,167       2,717,134  
  Retained earnings     68,429       43,089  
  Accumulated other comprehensive loss     (18,025 )     (17,849 )
  Total Parsons Corporation shareholders’ equity     2,063,879       2,043,570  
  Noncontrolling interests     61,651       52,365  
  Total shareholders’ equity     2,125,530       2,095,935  
  Total liabilities and shareholders’ equity   $ 4,255,806     $ 4,198,142  
                   

PARSONS CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)

      For the Three Months Ended  
      March 31, 2023     March 31, 2022  
Cash flows from operating activities:            
  Net income including noncontrolling interests   $ 35,276     $ 23,843  
  Adjustments to reconcile net income to net cash used in operating activities            
  Depreciation and amortization     28,359       30,509  
  Amortization of debt issue costs     657       649  
  Gain on disposal of property and equipment     (3 )     (39 )
  Provision for doubtful accounts           (3 )
  Deferred taxes     (2,586 )     (2,566 )
  Foreign currency transaction gains and losses     (290 )     882  
  Equity in losses (earnings) of unconsolidated joint ventures     5,840       (5,598 )
  Return on investments in unconsolidated joint ventures     7,793       11,874  
  Stock-based compensation     6,992       3,898  
  Contributions of treasury stock     14,435       13,054  
  Changes in assets and liabilities, net of acquisitions and newly consolidated
joint ventures:
           
  Accounts receivable     (47,482 )     (46,690 )
  Contract assets     (49,098 )     (21,212 )
  Prepaid expenses and other assets     (27,948 )     4,496  
  Accounts payable     8,009       (39,342 )
  Accrued expenses and other current liabilities     (10,898 )     (4,134 )
  Contract liabilities     16,113       945  
  Income taxes     6,408       4,706  
  Other long-term liabilities     (567 )     (986 )
  Net cash used in operating activities     (8,990 )     (25,714 )
Cash flows from investing activities:            
  Capital expenditures     (8,146 )     (4,473 )
  Proceeds from sale of property and equipment     19       112  
  Investments in unconsolidated joint ventures     (13,016 )     (9,713 )
  Return of investments in unconsolidated joint ventures           644  
  Proceeds from sales of investments in unconsolidated joint ventures     381        
  Net cash used in investing activities     (20,762 )     (13,430 )
Cash flows from financing activities:            
  Proceeds from borrowings under credit agreement     5,700        
  Repayments of borrowings under credit agreement     (5,700 )      
  Contributions by noncontrolling interests     200       1,226  
  Distributions to noncontrolling interests     (638 )     (8,309 )
  Repurchases of common stock     (6,000 )     (5,548 )
  Taxes paid on vested stock     (6,064 )     (5,771 )
  Net cash used in financing activities     (12,502 )     (18,402 )
  Effect of exchange rate changes     154       425  
  Net decrease in cash, cash equivalents, and restricted cash     (42,100 )     (57,121 )
  Cash, cash equivalents and restricted cash:            
  Beginning of year     262,539       343,883  
  End of period   $ 220,439     $ 286,762  
                   

Contract Awards
(in thousands)

    Three Months Ended  
    March 31, 2023     March 31, 2022  
Federal Solutions   $ 695,644     $ 456,888  
Critical Infrastructure     686,585       460,268  
Total Awards   $ 1,382,229     $ 917,156  
                 

Backlog
(in thousands)

    March 31, 2023     March 31, 2022  
Federal Solutions:            
Funded   $ 1,694,740     $ 1,300,476  
Unfunded     3,175,568       3,883,550  
Total Federal Solutions     4,870,308       5,184,026  
Critical Infrastructure:            
Funded     3,445,068       2,976,099  
Unfunded     49,866       64,660  
Total Critical Infrastructure     3,494,934       3,040,759  
Total Backlog   $ 8,365,242     $ 8,224,785  
                 

Book-To-Bill Ratio1:

    Three Months Ended  
    March 31, 2023     March 31, 2022  
Federal Solutions     1.1       0.9  
Critical Infrastructure     1.3       1.0  
Overall     1.2       1.0  

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 to Adjusted EBITDA
(in thousands)

    Three Months Ended  
    March 31, 2023     March 31, 2022  
Net income attributable to Parsons Corporation   $ 25,553     $ 20,667  
Interest expense, net     5,665       3,873  
Income tax provision (benefit)     11,503       8,119  
Depreciation and amortization (a)     28,359       30,509  
Net income attributable to noncontrolling interests     9,723       3,176  
Equity-based compensation     6,703       3,898  
Transaction-related costs (b)     1,618       2,398  
Restructuring (c)     546       213  
Other (d)     721       1,395  
Adjusted EBITDA   $ 90,391     $ 74,248  

(a) 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. Depreciation and amortization for the three months ended March 31, 2022, is $26.2 million in the Federal Solutions Segment and $4.3 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, 2023     March 31, 2022  
Federal Solutions Adjusted EBITDA attributable to Parsons Corporation   $ 56,148     $ 42,638  
Federal Solutions Adjusted EBITDA attributable to noncontrolling interests     85       117  
Federal Solutions Adjusted EBITDA including noncontrolling interests   $ 56,233     $ 42,755  
             
Critical Infrastructure Adjusted EBITDA attributable to Parsons Corporation     24,357       28,315  
Critical Infrastructure Adjusted EBITDA attributable to noncontrolling interests     9,801       3,178  
Critical Infrastructure Adjusted EBITDA including noncontrolling interests   $ 34,158     $ 31,493  
             
Total Adjusted EBITDA including noncontrolling interests   $ 90,391     $ 74,248  
                 

PARSONS CORPORATION
Non-GAAP Financial Information
Reconciliation of Net Income Attributable to Parsons Corporation to Adjusted Net Income Attributable to Parsons Corporation
(in thousands, except per share information)

    Three Months Ended  
    March 31, 2023     March 31, 2022  
Net income attributable to Parsons Corporation   $ 25,553     $ 20,667  
Acquisition related intangible asset amortization     18,009       20,090  
Equity-based compensation     6,703       3,898  
Transaction-related costs (a)     1,618       2,398  
Restructuring (b)     546       213  
Other (c)     721       1,395  
Tax effect on adjustments     (7,349 )     (6,672 )
Adjusted net income attributable to Parsons Corporation     45,801       41,989  
Adjusted earnings per share:            
Weighted-average number of basic shares outstanding     104,805       103,769  
Weighted-average number of diluted shares outstanding (d)     105,837       104,548  
Adjusted net income attributable to Parsons Corporation per basic share   $ 0.44     $ 0.40  
Adjusted net income attributable to Parsons Corporation per diluted share   $ 0.43     $ 0.40  

(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 to bond hedge.

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Artificial Intelligence

Invoca Wins CX Today Award for Best Conversational Intelligence Solution of 2024; Launches European Data Centre and Adds UK Sales Leader

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CX Today recognises Invoca as the foremost visionary in the Conversational Intelligence category. Additionally, expands its European presence with a new Data Centre and the appointment of Duncan MacPherson as UK Director of Sales.
LONDON, March 28, 2024 /PRNewswire/ — Invoca, the leading revenue execution platform for revenue teams, has won the CX Today Award for ‘Best Conversational Intelligence Solution’ of 2024. CX Today, the leading international news publication honouring excellence in CX technology, hosted the CX Awards to honour excellence in CX leadership, technology innovation, and industry success.

“Invoca’s exceptional work in conversational intelligence has helped push the category forward, and we are thrilled to see their accomplishments acknowledged at CX Awards 2024,” said Charlie Mitchell, Senior Editor at CX Today and host of the awards.
The award recognises Invoca’s strength in empowering revenue teams across marketing, contact centre sales, and customer experience to enhance buying experiences, increase high-value leads, and boost revenue. For businesses that acquire customers over the phone, Invoca enables these digital marketing and contact centre teams to collaborate to drive revenue growth. Invoca stands out for capturing deep insights from consumer calls and digital interactions and ingesting revenue driven by calls and other metadata from CRM and contact centre solutions, making Invoca the source of truth for consumer engagements.
“We’re thrilled to be named the Best Conversational Intelligence Solution of 2024 by CX Today as we highlight our longstanding vision to help brands acquire customers and grow their revenue,” said Gregg Johnson, CEO of Invoca. “As AI pioneers in this space, having first introduced our broad base of patented AI technologies in 2015, artificial intelligence and machine learning are core to helping companies improve the customer experience and connect the buyer journey.”
The CX Awards’ judging panel, including Dan Miller, Lead Analyst at Opus Research, reviewed hundreds of applications for their organisation’s ability to improve overall customer experience through innovation and high-impact features.
“Invoca continues to demonstrate that they are a clear leader in conversational intelligence AI. We recognised Invoca for their ability to employ a sophisticated blend of AI technologies — including patented machine learning, generative AI, voice biometrics, and deep learning neural networks, to drive revenue,” said Dan Miller, CX Awards judge and Lead Analyst at Opus Research.
Invoca Launches New European Platform and Data Centre Amid U.K. Sales Leadership Expansion
Invoca continues to reinforce its commitment to maintaining data excellence with unwavering reliability and strict adherence to security standards. Protecting customer data privacy remains a top priority, particularly given the heightened concerns surrounding security and privacy. Invoca’s new European platform and localised data centres support its growing customer base by ensuring all customers can adhere to the highest level of enterprise-grade data privacy, and GDPR compliance standards. Invoca’s powerful EU-based infrastructure enables its customers to recreate the same Invoca experience using the full feature suite while maintaining the highest standards of quality.
Invoca has also welcomed Duncan MacPherson as UK Director of Sales. MacPherson brings extensive experience with large companies and start-ups selling customer engagement solutions. This is part of an overall expansion in the UK market, which includes hiring a localised sales and customer success team, sales development, and marketing support.
More Information:
See the results you can get with Invoca’s award-winning conversation intelligence: https://www.invoca.com/customersInvoca’s GDPR Compliance: Everything You Need to Know: https://www.invoca.com/blog/invocas-gdpr-compliance-everything-you-need-to-knowWatch the CX Today Awards winners revealed on demand: www.cxtoday.com/cxawardsJoin Invoca’s talented team today: https://www.invoca.com/company/careersAbout InvocaInvoca is a revenue execution platform that connects marketing and sales teams to help them track and optimise the buying journey to drive more revenue. By using a comprehensive revenue execution platform with deep integrations with leading technology platforms, revenue teams can better connect their paid media investments directly to revenue, improve digital engagement, and deliver the best buyer experiences to drive more sales. With Invoca, top consumer brands, including AutoNation, DIRECTV, Mayo Clinic, Mutual of Omaha, and Verizon, experience unbelievable results powered by undeniable data. Invoca has raised $184M from leading venture capitalists, including Upfront Ventures, Accel, Silver Lake Waterman, H.I.G. Growth Partners, and Salesforce Ventures. For more information, visit www.invoca.com.
About CX AwardsHosted by CX Today, the awards ceremony has become the beacon of recognition for companies and professionals pushing the envelope in the CX technology sphere.
The CX Awards 2024 is here for its fourth year and is bigger and better than ever before! Winners of the 2023 awards included Vonage, Calabrio, and UJET and more. Then, the ceremony included exclusive streams from our people winners, Jay Patel from Webex and Kimberley Wood from Ultimate. Yet, this year’s event featured many more CX leaders who shared their unique takes on the space.
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ASC Achieves Certification for Webex Calling

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ASC announces compliance recording and AI-driven analytics tool for Webex Calling
HÖSBACH, Germany, March 28, 2024 /PRNewswire/ — ASC Technologies, a leading provider of comprehensive recording and analytics tools, announces its successful certification for Webex Calling with Webex by Cisco, a leading provider of collaboration technologies powering hybrid work and customer experience. This certification distinguishes ASC as one of the few global vendors who are authorized to provide record capabilities for Webex Calling communications. This capability is essential for organizations in regulated industries that must adhere to strict compliance standards.

A key benefit of the ASC solution is the simple and fast configuration in the Webex Control Hub, which ensures a high level of user-friendliness. In addition, ASC enables the migration of on-premise solutions to the cloud by seamlessly transferring recordings to the cloud environment. This step enables organizations to accelerate their digital transformation and take advantage of cloud-based services. In addition, AI-driven analytics, powered by ASC’s solutions, help organizations gain a comprehensive view of their communications, enrich customer relationships, and streamline compliance and risk management processes.
“As a stable company that has been established in the market for 60 years, we see the certification for Webex Calling not only as a confirmation of our technological expertise, but also as a promise to our customers and partners,” says Dr. Gerald Kromer, CEO of ASC. “We are committed to providing innovative and reliable solutions that meet the demands of today’s communications technologies while ensuring our customers’ compliance requirements.”
This certification is a further milestone in ASC’s successful partnership with Cisco, which has already existed for 20 years. ASC will be exhibiting at Enterprise Connect in Gaylord Palms, and Cisco Live in Las Vegas, showcasing its innovative recording and analytics solutions and demonstrating the results of its collaboration with Cisco. These events offer a glimpse into how ASC’s solutions drive efficiency and insight.
About ASC
ASC is a worldwide leading provider of software and cloud solutions in the field of omni-channel recording, quality management, and analytics. Among our target groups are all companies that record their communications, especially financial service providers, contact centers, and public safety organizations. We offer solutions for recording as well as AI-based analysis and evaluation of all communications – with full flexibility as a cloud service, on-premise or as a hybrid solution. Headquartered in Germany with subsidiaries in 14 countries and experienced system integration partners in over 60 countries, ASC is the #1 Europe-based player in its industry.
About Webex by Cisco
Webex is a leading provider of cloud-based collaboration solutions which includes video meetings, calling, messaging, events, customer experience solutions like contact center and purpose-built collaboration devices. At Webex, we start with people and their experiences first. This focus on delivering inclusive collaboration experiences fuels our innovation, which leverages AI and Machine Learning, to remove the barriers of geography, language, personality, and familiarity with technology. Our solutions are underpinned with security and privacy by design. We work with the world’s leading business and productivity apps – delivered through a single application and interface. Learn more at webex.com.
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WSPN and MathWallet Jointly Launch StableWallet, Pioneering AA Wallet for Web3

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TORTOLA, British Virgin Islands, March 28, 2024 /PRNewswire/ — WSPN, a global digital payments leader providing transparent, fast, and efficient solutions leveraging distributed ledger technology, has partnered with leading Web3 wallet provider MathWallet to launch StableWallet – a groundbreaking new account abstraction (AA) wallet that represents a major advancement in the Web3 space. StableWallet provides enhanced security, convenience, and flexibility for managing digital assets across multiple blockchains.

“Through our partnership with MathWallet, we are proud to introduce StableWallet, leveraging pioneering AA technology to transform digital asset management,” said Raymond Yuan, Founder of WSPN. “StableWallet exemplifies our commitment to driving innovation in digital payments and the Web3 ecosystem.”
Account abstraction (AA) wallets represent a significant leap forward in the Web3 ecosystem, blurring the lines between traditional private key wallets and smart contract-based accounts. By integrating both functionalities, AA wallets enable users to define their wallets through programmable smart contracts, unlocking a realm of advanced features and customization options.
Leveraging the transformative power of Account Abstraction, StableWallet stands at the forefront of security innovation, offering unmatched protection through advanced programmable recovery mechanisms and robust multi-signature controls. Seamlessly blending security with convenience, StableWallet ensures a user-centric experience by automating gas fees, simplifying transactions, and providing limitless customization possibilities through deep integration of programmable smart contracts.
Beyond its pioneering security measures, StableWallet serves as a pivotal link between the Ethereum and Polygon ecosystems, facilitating effortless asset management across diverse chains through a unified cross-chain interface. At its debut, StableWallet boasts essential features such as native support for Ethereum and Polygon networks, flexibility in fee token options with WUSD and USDT, and the capacity for multi-chain crypto smart contract wallet functionalities.
“We are thrilled to partner with WSPN and jointly unveil StableWallet’s powerful capabilities,” said Eric, CTO of MathWallet. “By combining cutting-edge account abstraction technology with robust security features and cross-chain compatibility, StableWallet empowers users to explore the decentralized realm with unparalleled confidence.”
Looking ahead, StableWallet has an ambitious roadmap to roll out new capabilities that will further elevate the user experience. Upcoming features include daily free transfers, batch transactions with one-click execution, enterprise multi-signature smart wallets, and integration with collaboration platforms, etc. These additions, among others, will continuously expand StableWallet’s functionality to meet evolving user needs in the Web3 space.
Whether for a seasoned cryptocurrency enthusiast or a beginner to the blockchain world, StableWallet offers a powerful tool to revolutionize user experience of digital asset management. Stay tuned for upcoming feature releases and network expansions as WSPN and MathWallet continue to push the boundaries of Web3 technology.
About WSPN
WSPN is a global digital payments company that provides transparent, fast, and efficient digital payment solutions leveraging the latest technological advancements of Distributed Ledger Technology (“DLT”). We are dedicated to shaping seamless digital payment solutions for our global partners worldwide at the frontier of future digital payments and financial inclusion.
Worldwide USD (‘WUSD’), WSPN’s flagship USD stablecoin, is a fiat-collateralized stablecoin that is pegged to the U.S. Dollar at a 1:1 ratio. Dedicated to optimizing payment solutions for web3 users, WUSD empowers the real economy through secure, transparent, and licensed digital payments, spanning stablecoins, exchanges and cards, all geared for global expansion.
Learn more: www.wspn.io  | Twitter | LinkedIn 
About MathWallet
MathWallet is the Multichain Wallet for Web3 that enables token storage of over 150 chains including BTC, ETH, Polkadot, Cosmos, Filecoin, Solana, BNBChain, etc, supports cross-chain token bridges and multi-chain dApp store. Our investors include Fenbushi Capital, Binance Labs, Fundamental Labs, Multicoin Capital, NGC Ventures, Amber Group, 6Eagle Capital.
Visit mathwallet.org for more information.
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