Slide 1: First Quarter 2023 Earnings Conference Call Presentation
FIRST QUARTER 2023 Earnings Conference Call Presentation May 3, 2023
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 contract terminations or cancellations caused by competitors’ protests of major contract awards receive
Slide 3: Major Messages
MAJOR MESSAGES Strong First Quarter 2023 Results Highest quarterly revenue and organic growth in our history Record Q1 adjusted EBITDA and operating cash flow results Contract award activity increased approximately 50% year-over-year in both segments 10 consecutive quarters with a C.I. book-
Slide 4: Q1 2023 Key Highlights
Q1 2023 KEY HIGHLIGHTS Record start to the year Delivered strong results with record quarterly revenue and organic growth Total revenue growth of 24% year-over-year; total organic growth of 12% Q1 2023 REVENUE Strong revenue driven by Critical Infrastructure organic growth of 18% and Federal $
Slide 5: Q1 2023 Financial Summary
Q1 2023 FINANCIAL SUMMARY Record quarterly revenue and organic growth; record first quarter adjusted EBITDA and strong contract award activity Q1 2023 total revenue of $1,173M increased 24% year-over- Contract awards increased 51% to $1,382M year and 12% organically from Q1 2022 Total backlog
Slide 6: Business Segment Summary
BUSINESS SEGMENT SUMMARY Federal Solutions Critical Infrastructure Q1 2023 revenue increased 29% and increased Q1 2023 revenue increased 18% (all organic) 6% organically from Q1 2022 from Q1 2022 Contract awards increased 52% year-over-year New contract awards increased 49% year-over- Book
Slide 7: Significant Contract Wins – Q1 2023
SIGNIFICANT CONTRACT WINS – Q1 2023 Awarded 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 $750M option periods valued at $250 million
Slide 8: Significant Contract Wins - After Q1 2023 Closed
SIGNIFICANT CONTRACT WINS - After Q1 2023 Closed After the first quarter closed, the company was awarded the recompete Technical Support Services Contract 5 by the Awarded Federal Aviation Administration (FAA). The $1.8 billion ceiling value contract will support the FAA’s Aviation System Capital In
Slide 9: ESG Highlights
ESG Highlights Named One of the World’s Most Ethical Companies for 14 Consecutive Years 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. Top 50 Employer by Minority Engineer Magazine Recognized as a to
Slide 10: Fiscal Year 2023 Guidance: Increasing All Guidance Ranges
FISCAL YEAR 2023 GUIDANCE: INCREASING ALL GUIDANCE RANGES Current FY23 Prior FY23 FY23 Y/Y Growth at Guidance Guidance Mid-Point Total Revenue $4.5 - $4.7B $4.375 - $4.575B +10% (+5% organic) Adjusted EBITDA $375 - $415M $365 - $405M +12% Cash Flow from Operations $275 - $335M $270 - $330M +28% Net
Slide 11: Fiscal Year 2023 Guidance Assumptions
FISCAL YEAR 2023 GUIDANCE ASSUMPTIONS ~ 54% of total revenue to be generated from Federal FY23 guidance includes ~ $10M of transaction and Solutions segment at the mid-point other expenses from prior acquisitions, but does not include future acquisitions Adjusted EBITDA margin of ~ 8.6% at the
Slide 12: Appendix: Supplemental Materials
APPENDIX: SUPPLEMENTAL MATERIALS Parsons Corporation Sensitive / Proprietary 12
Slide 13: Adjusted EBITDA Reconciliation
ADJUSTED EBITDA RECONCILIATION 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 ta
Slide 14: 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 March 31, 2023 March 31, 2022 Federal Solutions Adjusted EBITDA attributable to Parsons Corporation $56,148
Slide 15: Adjusted Net Income Attributable to Parsons
ADJUSTED 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 March 31, 2023 Ma