Parsons(US:PSN)2025-04-30 10:35Acquisitions - The Company acquired TRS Group, Inc. for $36.6 million, with $3.8 million to be paid in July 2026, and generated $4.1 million in revenue for the three months ended March 31, 2025[37][38]. - The acquisition of BCC Engineering, LLC was completed for $233.5 million, with $27.6 million in revenue generated for the three months ended March 31, 2025[41][44]. - BlackSignal Technologies, LLC was acquired for $203.7 million, contributing $13.1 million in revenue for the three months ended March 31, 2025[46][48]. - The Company recognized $4.2 million of acquisition-related expenses for BCC and $2.5 million for BlackSignal in the consolidated statements of income for the year ended December 31, 2024[41][46]. Pro Forma Financials - Pro forma revenue for the three months ended March 31, 2025, assuming TRS acquisition was consummated at the beginning of fiscal year 2024, was $1,556.4 million[40]. - Pro forma net income for the same period, including noncontrolling interests, was $82.0 million[40]. - Pro forma revenue for the three months ended March 31, 2025, assuming BCC acquisition was consummated at the beginning of fiscal year 2023, was $1,554.4 million[45]. - Pro forma net income for the same period, including noncontrolling interests, was $82.8 million[45]. - Pro forma revenue for the three months ended March 31, 2025, assuming BlackSignal acquisition was consummated at the beginning of fiscal year 2023, was $1,554.4 million[49]. - Pro forma net income for the same period, including noncontrolling interests, was $82.7 million[49]. Revenue and Growth - Total revenue for the three months ended March 31, 2025, was $1,554,360 thousand, a slight increase from $1,535,676 thousand in the same period of 2024, representing a growth of 1.1%[51]. - The company recognized revenue of $117.3 million during the three months ended March 31, 2025, from contract liabilities that were recorded as of December 31, 2024[52]. - Revenue from consolidated joint ventures for the three months ended March 31, 2025 was $196.4 million, a decrease of 2.3% from $202.0 million in the same period of 2024[120]. - Revenue from unconsolidated joint ventures increased to $524.6 million for the three months ended March 31, 2025, up 10.8% from $473.5 million in the same period of 2024[122]. - Basic earnings per share for the three months ended March 31, 2025 was $0.62, an increase from $0.37 in the same period of 2024[134]. - Total revenue for the three months ended March 31, 2025, was $1,554,360, compared to $1,535,676 for the same period in 2024, representing a year-over-year increase of 1.2%[148]. - Adjusted EBITDA attributable to Parsons Corporation for Q1 2025 was $133,719, up from $125,504 in Q1 2024, reflecting a growth of 6.0%[145][152]. - Net income attributable to Parsons Corporation for Q1 2025 was $66,203, compared to $39,750 in Q1 2024, indicating a significant increase of 66.7%[145][146]. - Federal Solutions revenue decreased to $842,557 in Q1 2025 from $909,608 in Q1 2024, a decline of 7.4%[152]. - Critical Infrastructure revenue increased to $711,803 in Q1 2025 from $626,068 in Q1 2024, marking an increase of 13.7%[152]. - North America revenue for Q1 2025 was $1,284,232, slightly up from $1,272,250 in Q1 2024, a growth of 0.5%[148]. Assets and Liabilities - Contract assets increased to $822,781 thousand as of March 31, 2025, compared to $741,504 thousand at December 31, 2024, reflecting a growth of 10.9%[52]. - Remaining unsatisfied performance obligations (RUPO) amounted to $6.8 billion as of March 31, 2025, indicating the total dollar value of work to be performed on awarded contracts[56]. - The company expects to satisfy $4,334,583 thousand of RUPO within one year, with an additional $1,498,923 thousand expected to be satisfied in the following two years[59]. - Total accounts receivable, net, increased to $1,124,951 thousand as of March 31, 2025, from $1,100,396 thousand as of December 31, 2024, marking a growth of 2.2%[54]. - Goodwill increased from $2,082,680 thousand as of December 31, 2024, to $2,107,072 thousand as of March 31, 2025, primarily due to acquisitions[62]. - Consolidated joint ventures reported total assets of $505.9 million and total liabilities of $322.7 million as of March 31, 2025[120]. - Unconsolidated joint ventures had total assets of $1.9 billion and total liabilities of $1.4 billion as of March 31, 2025[122]. Expenses - The aggregate amortization expense of intangible assets for the three months ended March 31, 2025, was $16.4 million, compared to $13.7 million for the same period in 2024, reflecting an increase of 19.7%[63]. - The company reported total lease costs of $20,245 thousand for the three months ended March 31, 2025, slightly higher than $20,081 thousand for the same period in 2024[60]. - Depreciation expense for the three months ended March 31, 2025, was $9.1 million, a decrease from $9.4 million in the same period of 2024[65]. - The Company’s selling, general and administrative expenses for Q1 2025 totaled $91,536, compared to $69,725 in Q1 2024, reflecting a rise of 31.2%[145][146]. Debt and Financing - Total debt as of March 31, 2025, was $1,220.1 million, a decrease of 2.2% from $1,247.5 million on December 31, 2024[66]. - Short-term debt decreased from $463.4 million on December 31, 2024, to $434.9 million as of March 31, 2025, primarily due to a reduction in convertible senior notes[66]. - The company incurred $0.9 million in debt issuance costs related to the $350 million Delayed Draw Term Loan, which remains fully drawn as of March 31, 2025[67]. - Interest expense for the Delayed Draw Term Loan was $4.9 million for the three months ended March 31, 2025, down from $6.0 million for the same period in 2024[67]. - The company issued $800 million of 2.625% Convertible Senior Notes due 2029 in February 2024, with net proceeds of $781.1 million after transaction fees[82]. - The carrying value of the Convertible Senior Notes due 2029 was $785.4 million as of March 31, 2025, compared to $784.3 million on December 31, 2024[89]. - Interest expense for the Convertible Senior Notes due 2029 was $6.3 million for the three months ended March 31, 2025, compared to $2.4 million for the same period in 2024[89]. - The company recorded a deferred tax liability of $16.2 million related to the Convertible Senior Notes debt discount and capitalized debt issuance costs[81]. - The Company entered into capped call transactions with a cap price of $131.7575 per share, representing a 75% premium over the last reported sale price of $75.29 per share on February 21, 2024[91]. - The cost of the capped call transactions was $88.4 million, recorded as a reduction to additional paid-in capital[91]. - The Company used $391.8 million of net proceeds from the issuance of Convertible Senior Notes due 2029 to repurchase approximately $228.1 million of Convertible Senior Notes due 2025[93]. - A partial repurchase during the three months ended March 31, 2024, resulted in a $18.4 million repurchase loss and a $3.2 million charge to interest expense[94]. Tax and Commitments - The Company's effective tax rate decreased to 18.8% for the three months ended March 31, 2025, down from 19.5% for the same period in 2024[100]. - As of March 31, 2025, the Company's deferred tax assets were subject to a valuation allowance of $45.8 million[101]. - The Company has letters of credit commitments outstanding aggregating approximately $335.6 million as of March 31, 2025[99]. - The Company has a $650 million unsecured revolving credit facility, with interest rates at 5.7% as of March 31, 2025[97]. - The Company recorded a $211.0 million loss on debt extinguishment associated with the 0.25% Convertible Senior Notes due 2025[95]. Share Repurchase and Equity - The company repurchased 423,980 shares of common stock at an average price of $58.95 per share during the three months ended March 31, 2025[138]. - The company’s board authorized a share repurchase program with a capacity of $250 million as of March 2025, increasing from previous authorizations[135]. - The total joint venture equity for consolidated joint ventures decreased from $230.3 million as of December 31, 2024 to $183.1 million as of March 31, 2025[120]. - The company’s maximum exposure to loss from unconsolidated joint ventures is typically limited to the carrying value of the investment and future funding commitments[121].