Parsons Corporation (NYSE:PSN) Q1 2021 Earnings Conference Call May 5, 2021 8:00 AM ET Corporate Participants Dave Spille - Global Head of Investor Relations Chuck Harrington - Chairman and Chief Executive Officer George Ball - Chief Financial Officer Carey Smith - President and Chief Operating Officer Conference Call Participants Joseph DeNardi - Stifel Sheila Kahyaoglu - Jefferies Tobey Sommer - Truist Securities Gavin Parsons - Goldman Sachs Cai Von Rumohr - Cowen Josh Sullivan - Benchmark Company Marian ...

| --- | --- | --- | --- | --- | --- | |--------------------------|-------|-------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | FIRST QUARTER 2021 | | | | | | | Earnings Conference Call | | | | | | | May 5, 2021 | | | | | | | | | | | | | FORWARD LOOKING STATEMENTS 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 Section 21E of the Se ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Parsons Corporation (Exact Name of Registrant as Specified in its Charter) WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-07782 Delaware 95-3232481 (State or other jurisdiction ...

| --- | --- | --- | |--------------------------------------|-------|-------| | | | | | | | | | | | | | | | | | Fourth Quarter and Fiscal Year 2020 | | | | Earnings Conference Call | | | | February 24, 2021 | | | FORWARD LOOKING STATEMENTS 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 Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking stat ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO Commission File Number 001-07782 PARSONS CORPORATION (Exact name of Registrant as Specified in Its Charter) Delaware 95-3232481 (State or other jurisdiction of ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-07782 Parsons Corporation (Exact Name of Registrant as Specified in its Charter) Delaware 95-3232481 (State or other jurisdic ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-07782 Parsons Corporation (Exact Name of Registrant as Specified in its Charter) Delaware 95-3232481 (State or other jurisdiction ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-07782 Parsons Corporation (Exact Name of Registrant as Specified in its Charter) Delaware 95-3232481 (State or other jurisdiction ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO Commission File Number 001-07782 PARSONS CORPORATION (Exact name of Registrant as Specified in Its Charter) Delaware 95-3232481 (State or other jurisdiction of ...

Revenue and Growth - Revenue for the nine months ended September 30, 2019, was $2.9 billion, with a 5% growth in Q3 2019[145] - The company's revenue for the three months ended September 30, 2019, was $88,990,000, compared to $88,564,000 for the same period in 2018, reflecting a slight increase[187] - For the nine months ended September 30, 2019, revenue was $237,219,000, up from $192,029,000 in the same period of 2018[187] - Revenue for the three months ended September 30, 2019, was $1,023,277, an increase of $47,120, or 4.8%, compared to $976,157 in the same period last year[194] - Revenue for the nine months ended September 30, 2019, was $2,917,424, an increase of $285,856, or 10.9%, compared to $2,631,568 in the same period last year[194] Contract Awards and Backlog - Total contract awards for the nine months ended September 30, 2019, amounted to $3.3 billion, with Federal Solutions contributing 62% and Critical Infrastructure 38%[145] - Backlog as of September 30, 2019, was $8.3 billion, with $2.8 billion expected to be recognized as revenue in the following twelve months[155] - The book-to-bill ratio for the nine months ended September 30, 2019, was 1.1, indicating that awards generated exceeded revenue recognized[157] - Federal Solutions segment backlog increased from $4.8 billion in September 2018 to $5.2 billion in September 2019[153] - New awards in the Federal Solutions segment for the nine months ended September 30, 2019, were $2.1 billion, up from $1.6 billion in the same period of 2018[150] - The Critical Infrastructure segment saw a decrease in new awards from $1.6 billion in the nine months ended September 30, 2018, to $1.3 billion in the same period of 2019[150] Financial Performance - Adjusted EBITDA for the three months ended September 30, 2019, was $88,990,000, with a net income margin of 6.0% and an adjusted EBITDA margin of 8.7%[187] - Total Adjusted EBITDA for the three months ended September 30, 2019, was $88,990, reflecting a slight increase of $426, or 0.5%, compared to the same period in 2018[192] - Net income attributable to Parsons Corporation for the three months ended September 30, 2019, was 5.6% of revenue, compared to 4.2% in the same period last year[193] - The company recorded a net income attributable to Parsons Corporation of $56,812,000 for the three months ended September 30, 2019, compared to $41,222,000 for the same period in 2018[188] - Adjusted EBITDA for Federal Solutions for the nine months ended September 30, 2019, increased by $25,606,000 (25.3%) to $126,658,000[211] - Adjusted EBITDA for Critical Infrastructure for the nine months ended September 30, 2019, increased by $21,881,000 (27.3%) to $102,177,000[214] Expenses and Costs - Direct costs of contracts for the three months ended September 30, 2019, were $798,552, an increase of $15,534, or 2.0%, compared to $783,018 in the same period last year[196] - Indirect, general and administrative expenses for the three months ended September 30, 2019, were $178,550, an increase of $27,817, or 18.5%, compared to $150,733 in the same period last year[198] - Total ESOP contribution expense for the three months ended September 30, 2019, was $12.3 million, compared to $11.4 million for the same period in 2018[181] - The company expects operating expenses to increase due to anticipated growth and costs associated with being a public company, but expects these costs to decline as a percentage of total revenue over time[181] Tax and Income - The effective income tax rate is expected to increase following the termination of the company's "S" Corporation status, leading to a decrease in net income[170] - Income tax benefit for the three months ended September 30, 2019, was $(15,453,000), a decrease of $19,607,000 (472.0%) compared to the same period in 2018[205] - The company recorded a deferred tax benefit of $85 million during the quarter ended September 30, 2019, reflecting an increase of $29 million from previous estimates[208] Cash Flow and Liquidity - The company believes it has adequate liquidity and capital resources to fund operations and support ongoing acquisition strategies for at least the next twelve months[220] - Cash provided by operating activities has been adequate to fund operations, with management regularly monitoring liquidity measures[219] - Net cash provided by operating activities increased by $30.8 million to $130.6 million for the nine months ended September 30, 2019, compared to $99.8 million for the same period in 2018[225] - Cash, cash equivalents, and restricted cash decreased by $134.7 million to $146.5 million at September 30, 2019, from $281.2 million at December 31, 2018[223] - Accounts receivable decreased from $482.6 million at December 31, 2018 to $318.0 million at September 30, 2019, reflecting a focus on collecting outstanding receivables[222] - Net days sales outstanding (DSO) improved from 67 days at September 28, 2018 to 58 days at September 30, 2019, driven by increased revenue from business acquisitions[225] Acquisitions - The company acquired Polaris Alpha for $489.1 million on May 31, 2018, and OGSystems for $292.4 million on January 7, 2019, enhancing its capabilities in national security and intelligence[165][166] - Net cash used in investing activities decreased by $38.1 million to $541.7 million for the nine months ended September 30, 2019, primarily related to acquisitions of OGSystems and QRC Technologies[227] Interest and Other Income - Interest income for the three months ended September 30, 2019, increased by $76,000 (21.7%) to $427,000, while interest expense decreased by $1,031,000 (17.4%) to $4,909,000[203] - Total other income (expense) for the nine months ended September 30, 2019, was $(82,844,000), a decrease of $62,816,000 (131.9%) compared to the same period in 2018[203] - Equity in earnings of unconsolidated joint ventures decreased by $5,433, or 42.8%, for the three months ended September 30, 2019, compared to the same period last year[197] Segment Performance - Federal Solutions revenue for the three months ended September 30, 2019, increased by $42,450,000 (9.6%) to $486,175,000, with organic revenue growth of $3,200,000[211] - The Federal Solutions segment contributed an increase of $42.5 million in revenue for the three months ended September 30, 2019[194] - The Critical Infrastructure segment saw a revenue increase of $4.7 million for the three months ended September 30, 2019[194] - Critical Infrastructure revenue for the nine months ended September 30, 2019, decreased by $25,503,000 (1.6%) to $1,529,940,000[214]