| Summary of Adjusted EBITDA Business Segment Information |
The following tables present segment information provided to the CODM, as of each fiscal year presented, along with a reconciliation of segment adjusted EBITDA attributable to Parsons Corporation to net income attributable to Parsons Corporation for the periods presented (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended December 31, 2024 |
|
|
|
Federal
Solutions |
|
|
Critical
Infrastructure |
|
|
Total |
|
Revenue |
|
$ |
4,007,114 |
|
|
$ |
2,743,462 |
|
|
$ |
6,750,576 |
|
Direct cost of contracts |
|
|
(3,187,829 |
) |
|
|
(2,156,325 |
) |
|
|
(5,344,154 |
) |
Selling, general and administrative expenses (a) |
|
|
(157,442 |
) |
|
|
(146,744 |
) |
|
|
(304,186 |
) |
Equity in earnings (losses) of unconsolidated joint ventures |
|
|
3,254 |
|
|
|
(26,615 |
) |
|
|
(23,361 |
) |
Other segment items (b) |
|
|
(249,759 |
) |
|
|
(280,877 |
) |
|
|
(530,636 |
) |
Adjusted EBITDA attributable to Parsons Corporation |
|
$ |
415,338 |
|
|
$ |
132,901 |
|
|
|
548,239 |
|
Reconciliation: Segment Adjusted EBITDA to Net Income Attributable to Parsons Corporation |
|
|
|
|
|
|
|
|
|
Adjusted EBITDA attributable to non-controlling interests |
|
|
|
|
|
|
|
|
56,714 |
|
Depreciation and amortization |
|
|
|
|
|
|
|
|
(99,251 |
) |
Interest expense, net |
|
|
|
|
|
|
|
|
(40,154 |
) |
Income tax expense |
|
|
|
|
|
|
|
|
(76,986 |
) |
Equity-based compensation expense |
|
|
|
|
|
|
|
|
(61,492 |
) |
Convertible debt repurchase loss |
|
|
|
|
|
|
|
|
(18,355 |
) |
Transaction related costs (c) |
|
|
|
|
|
|
|
|
(17,138 |
) |
Other (e) |
|
|
|
|
|
|
|
|
(912 |
) |
Net income including noncontrolling interests |
|
|
|
|
|
|
|
|
290,665 |
|
Net income attributable to noncontrolling interests |
|
|
|
|
|
|
|
|
(55,612 |
) |
Net income attributable to Parsons Corporation |
|
|
|
|
|
|
|
$ |
235,053 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended December 31, 2023 |
|
|
|
Federal
Solutions |
|
|
Critical
Infrastructure |
|
|
Total |
|
Revenue |
|
$ |
3,020,701 |
|
|
$ |
2,422,048 |
|
|
$ |
5,442,749 |
|
Direct cost of contracts |
|
|
(2,375,350 |
) |
|
|
(1,861,385 |
) |
|
|
(4,236,735 |
) |
Selling, general and administrative expenses (a) |
|
|
(129,507 |
) |
|
|
(129,747 |
) |
|
|
(259,254 |
) |
Equity in earnings (losses) of unconsolidated joint ventures |
|
|
4,190 |
|
|
|
(51,941 |
) |
|
|
(47,751 |
) |
Other segment items (b) |
|
|
(230,784 |
) |
|
|
(251,190 |
) |
|
|
(481,974 |
) |
Adjusted EBITDA attributable to Parsons Corporation |
|
|
289,250 |
|
|
|
127,785 |
|
|
|
417,035 |
|
Reconciliation: Segment Adjusted EBITDA to Net Income Attributable to Parsons Corporation |
|
|
|
|
|
|
|
|
|
Adjusted EBITDA attributable to non-controlling interests |
|
|
|
|
|
|
|
|
47,638 |
|
Depreciation and amortization |
|
|
|
|
|
|
|
|
(119,973 |
) |
Interest expense, net |
|
|
|
|
|
|
|
|
(29,306 |
) |
Income tax expense |
|
|
|
|
|
|
|
|
(56,138 |
) |
Equity-based compensation expense |
|
|
|
|
|
|
|
|
(36,151 |
) |
Transaction related costs (c) |
|
|
|
|
|
|
|
|
(12,013 |
) |
Restructuring expense (d) |
|
|
|
|
|
|
|
|
(1,244 |
) |
Other (e) |
|
|
|
|
|
|
|
|
(1,933 |
) |
Net income including noncontrolling interests |
|
|
|
|
|
|
|
|
207,915 |
|
Net income attributable to noncontrolling interests |
|
|
|
|
|
|
|
|
(46,766 |
) |
Net income attributable to Parsons Corporation |
|
|
|
|
|
|
|
$ |
161,149 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended December 31, 2022 |
|
|
|
Federal
Solutions |
|
|
Critical
Infrastructure |
|
|
Total |
|
Revenue |
|
$ |
2,212,987 |
|
|
$ |
1,982,285 |
|
|
$ |
4,195,272 |
|
Direct cost of contracts |
|
|
(1,703,297 |
) |
|
|
(1,545,253 |
) |
|
|
(3,248,550 |
) |
Selling, general and administrative expenses (a) |
|
|
(117,759 |
) |
|
|
(110,468 |
) |
|
|
(228,227 |
) |
Equity in earnings of unconsolidated joint ventures |
|
|
3,677 |
|
|
|
12,670 |
|
|
|
16,347 |
|
Other segment items (b) |
|
|
(196,604 |
) |
|
|
(215,849 |
) |
|
|
(412,453 |
) |
Adjusted EBITDA attributable to Parsons Corporation |
|
|
199,004 |
|
|
|
123,385 |
|
|
|
322,389 |
|
Reconciliation: Segment Adjusted EBITDA to Net Income Attributable to Parsons Corporation |
|
|
|
|
|
|
|
|
|
Adjusted EBITDA attributable to non-controlling interests |
|
|
|
|
|
|
|
|
30,393 |
|
Depreciation and amortization |
|
|
|
|
|
|
|
|
(120,501 |
) |
Interest expense, net |
|
|
|
|
|
|
|
|
(22,219 |
) |
Income tax expense |
|
|
|
|
|
|
|
|
(39,657 |
) |
Equity-based compensation expense |
|
|
|
|
|
|
|
|
(24,354 |
) |
Transaction related costs (c) |
|
|
|
|
|
|
|
|
(16,270 |
) |
Restructuring expense (d) |
|
|
|
|
|
|
|
|
(213 |
) |
Other (e) |
|
|
|
|
|
|
|
|
(3,003 |
) |
Net income including noncontrolling interests |
|
|
|
|
|
|
|
|
126,565 |
|
Net income attributable to noncontrolling interests |
|
|
|
|
|
|
|
|
(29,901 |
) |
Net income attributable to Parsons Corporation |
|
|
|
|
|
|
|
$ |
96,664 |
|
(a)The amount of selling, general and administrative expenses (“SG&A”) is total SG&A excluding allocations. (b)The amount of other segment items is the difference between segment revenue less direct cost of contracts, segment SG&A expenses, equity in earnings (losses) of unconsolidated joint ventures, and Adjusted EBITDA attributable to Parsons Corporation. Other segment items primarily include: i.Corporate and shared segment SG&A (excluding Adjusted EBITDA items) ii.Noncontrolling interests attributable to operating income and other income/expense v.Foreign currency gain/loss, and vi.Certain other income/expense items (c)Reflects costs incurred in connection with acquisitions, and other non-recurring transaction costs, primarily fees paid for professional services and employee retention. (d)Reflects costs associated with and related to our corporate restructuring initiatives. 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.
|
| Summary of Revenues and Property and Equipment, Net by Geographic Area |
The following table presents revenues and property and equipment, net by geographic area (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2024 |
|
|
2023 |
|
|
2022 |
|
Revenues: |
|
|
|
|
|
|
|
|
|
North America |
|
$ |
5,677,933 |
|
|
$ |
4,481,492 |
|
|
$ |
3,463,128 |
|
Middle East |
|
|
1,052,509 |
|
|
|
943,175 |
|
|
|
710,830 |
|
Rest of World |
|
|
20,134 |
|
|
|
18,082 |
|
|
|
21,314 |
|
Total revenues |
|
$ |
6,750,576 |
|
|
$ |
5,442,749 |
|
|
$ |
4,195,272 |
|
Property and equipment, net |
|
|
|
|
|
|
|
|
|
North America |
|
$ |
101,044 |
|
|
$ |
91,766 |
|
|
$ |
91,217 |
|
Middle East |
|
|
10,531 |
|
|
|
7,191 |
|
|
|
4,833 |
|
Total property and equipment, net |
|
$ |
111,575 |
|
|
$ |
98,957 |
|
|
$ |
96,050 |
|
|
| Summary of Revenues by Business Lines |
The following table presents revenues by business lines (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2024 |
|
|
2023 |
|
|
2022 |
|
Revenue: |
|
|
|
|
|
|
|
|
|
Defense & Intelligence |
|
$ |
1,772,481 |
|
|
$ |
1,539,968 |
|
|
$ |
1,368,779 |
|
Engineered Systems |
|
|
2,234,633 |
|
|
|
1,480,733 |
|
|
|
844,208 |
|
Federal Solutions revenues |
|
|
4,007,114 |
|
|
|
3,020,701 |
|
|
|
2,212,987 |
|
Infrastructure – North America |
|
|
1,683,664 |
|
|
|
1,472,768 |
|
|
|
1,265,376 |
|
Infrastructure – Europe, Middle East and Africa |
|
|
1,059,798 |
|
|
|
949,280 |
|
|
|
716,909 |
|
Critical Infrastructure revenues |
|
|
2,743,462 |
|
|
|
2,422,048 |
|
|
|
1,982,285 |
|
Total revenues |
|
$ |
6,750,576 |
|
|
$ |
5,442,749 |
|
|
$ |
4,195,272 |
|
|