Slide 1: Second Quarter 2020 Earnings Conference Call
SECOND QUARTER 2020 Earnings Conference Call August 5, 2020
Slide 2: Forward Looking Statements
FORWARD This presentation 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 terminations or cancellations caused by competitors’ protests of major contract awards received by us;
Slide 3: Q2 2020 Key Takeaways
Q2 2020 KEY TAKEAWAYS Reiterated all fiscal year 2020 guidance metrics Strong adjusted EBITDA and cash flow results Revenue of $979M was in-line with internal expectations; includes $67M of adverse Q2 2020 REVENUE impact from COVID-19, as well as strategy to reduce pass-through revenue run-off $97
Slide 4: Q2 2020 Financial Highlights
Q2 2020 FINANCIAL HIGHLIGHTS Delivered Strong Second Quarter Adjusted EBITDA Total revenue of $979M decreased 1% from Q2 2019 Adjusted EBITDA increased 20% to $91M; adjusted EBITDA margin increased 160 basis points to 9.3% Q2 2020 total organic revenue increased 5% year-over-year excluding $67
Slide 5: Business Segment Highlights
BUSINESS SEGMENT HIGHLIGHTS Federal Solutions Critical Infrastructure Total revenue increased 1% year-over-year to $482M Total revenue decreased 3% year-over-year to $497M Q2 2020 organic revenue increased 6% y/y and 8% Q2 2020 organic revenue increased 4% y/y for the first half of 2020, exc
Slide 6: Recent Significant Contract Wins
RECENT SIGNIFICANT CONTRACT WINS Awarded Awarded a $307M contract with a classified customer to provide enterprise security, including both cyber and physical security. This $307M contract was awarded in the third quarter of 2020. As the lead partner of a joint venture (JV), Parsons was awarded a $2
Slide 7: Diversity and Excellence Awards
DIVERSITY AND EXCELLENCE AWARDS Continued Recognition for STEM Workforce Diversity Initiatives Recognized by STEM Workforce Diversity magazine for the fifth consecutive year as a top national STEM employer for minority groups, women, and people with disabilities working in science, technology, engin
Slide 8: Reiterated Fiscal Year 2020 Guidance
REITERATED FISCAL YEAR 2020 GUIDANCE Total Revenue Adjusted EBITDA Cash Flow From Operations $3.95 billion to $330 million to $230 million to $4.05 billion $360 million $250 million Net income guidance is not presented as the company believes market volatility in its share price and the resulting im
Slide 9: Appendix: Supplemental Materials
APPENDIX: SUPPLEMENTAL MATERIALS Sensitive / Confidential / Proprietary 9
Slide 10: Adjusted EBITDA Reconciliation
ADJUSTED EBITDA RECONCILIATION PARSONS CORPORATION Non-GAAP Financial Information Reconciliation of Net Income to Adjusted EBITDA (in thousands) Three Months Ended Six Months Ended June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Net income attributable to Parsons Corporation $23,299 $40,259
Slide 11: Adjusted EBITDA Attributable to NCI
ADJUSTED EBITDA ATTRIBUTABLE TO NCI PARSONS CORPORATION Non-GAAP Financial Information Computation of Adjusted EBITDA Attributable to Noncontrolling Interests (in thousands) Three Months Ended Six Months Ended June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Federal Solutions Adjusted EBITDA
Slide 12: Reconciliation of Net Income Attributable to Parsons
RECONCILIATION OF NET INCOME ATTRIBUTABLE TO PARSONS 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 Six Mont