Parsons Corporation

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Thank you. Good morning, and thank you for joining us today to discuss our first quarter 2023 financial results. Please note that we provided presentation slides on the Investor Relations section of our website. On the call with me today are Carrie Smith, Chair, President, and CEO, and Matt Ophuls, CFO. Today, Carrie will discuss our corporate strategy and operational highlights, and then Matt will provide an overview of our first quarter financial results and a review of our 2023 guidance. We then will close with a question and answer session. Management may also make forward-looking statements during the call regarding future events, anticipated future trends, and the anticipated future performance of the company. We caution you that such statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. Actual results may differ materially from those projected in the forward-looking statements due to a variety of factors. These risk factors are described in our Form 10-K for fiscal year ended December 31, 2022, and other SEC filings. Please refer to our earnings press release for Parson's complete forward-looking statement disclosure. We do not undertake any obligation to update forward-looking statements. Management will also make reference to non-GAAP financial measures during this call, and we remind you that these non-GAAP financial measures are not a substitute for the comparable GAAP measures. And now we'll turn the call over to Carrie.

Thank you, Dave. Good morning and welcome to Parsons' first quarter 2023 earnings call. We had an excellent start to the year. We delivered all-time records for revenue of $1.2 billion and year-over-year organic revenue growth of 12%. We also delivered first quarter records for adjusted EBITDA and cash flow. In addition, our year-over-year contract awards increased by approximately 50% in both our federal solutions and critical infrastructure segments. We continued our hiring and retention momentum, and we acquired a strategic company that enhances persons' critical infrastructure protection capabilities in both of our business segments. I am very pleased with our results this quarter, as we've strengthened our federal national security portfolio and our global critical infrastructure posture across all six of our end markets. cyber and intelligence, space and missile defense, critical infrastructure protection, transportation, environmental remediation, and urban development. As a result of our strong first quarter performance, we are increasing our 2023 guidance ranges for all financial metrics, which Matt will discuss in a few minutes. During the first quarter, we achieved a book-to-bill ratio of 1.2 times on an enterprise basis, including 1.3 times in critical infrastructure and 1.1 times in federal solutions. These results were driven by a 52% year-over-year increase in federal solutions contract award activity and a 49% increase in critical infrastructure award activity. This is now the 10th consecutive quarter in which critical infrastructure's book-to-bill ratio has exceeded 1.0 times. Our ability to successfully deliver our customers' missions has enabled us to continue to win large, new, and repeat contracts in areas aligned with national security and global infrastructure priorities. During the quarter, we were awarded three contracts that exceeded $100 million. And after the first quarter ended, we won three additional contracts that were worth more than $100 million each. These meaningful and long-duration contract wins span our four business units and our six end markets, which has solidified our financial outlook and positioned us well for the future. Significant first quarter and early second quarter contracts included a new three-year, $750 million State Department humanitarian support contract. Led by Exitor, this delivery order contract includes a one-year base period of $250 million and two one-year option periods valued at $250 million each. For this significant contract win, we booked $250 million in the first quarter. Exitor has won a substantial amount of new business and has performed exceptionally well in its first year with Parsons. This recent win follows the $119 million Department of State award we announced last quarter to provide electronic security systems, operation centers, and counter unmanned aerial systems worldwide. We were awarded an additional $214 million to continue overseeing the Giant Mine Remediation Program in Canada, which is one of the largest mine reclamation projects in the world. We won a new $164 million four-year contract by the Army Corps of Engineers to deliver a new explosive decomposition chamber facility and host an Army ammunition plant. This follows Parsons' award of the Radford Army Ammunition Plant for a new energetic waste incinerator and contaminated waste processor. These strategic wins are part of the Army's larger and broader 15-year and more than $16 billion ammunition plant modernization plan to modernize the United States depots, arsenals, and ammunition plants. In addition to the three wins greater than $100 million each, We were awarded a $94 million repeat contract to provide command, control, communications, computers, and capabilities development services to the United States Cyber Command. This important contract provides support to expand full spectrum military cyberspace operations. The period of performance is one 12 month base period with four 12 month options. Finally, we won prime positions on several multiple award IDIQ vehicles, including a $75 billion ceiling contract with the Department of Health and Human Services Administration for the provision and operation of influx care facilities. After the first quarter ended, we were awarded three contracts greater than $100 million each. The first is a new five-year single award contract in our federal solutions segment from the General Services Administration with a potential value of $1.2 billion. This contract supports the Department of Defense and its strategic partners in delivering global quick reaction capabilities, leveraging advanced technology solutions across the all-domain battle space. The second new contract is a four-year single award contract for a roads and highways transportation project valued at more than $100 billion. Additionally, after the first quarter ended, we successfully won our major federal aviation administration technical support services contract repeat. This $1.8 billion ceiling value contract will support the FAA's aviation system capital investment plan and includes a base period of four years and two three-year option periods. Parsons has been the prime contractor for this work for more than two decades and supported this critical customer for more than four decades. With the Infrastructure Investment and Jobs Act, the FAA has $5 billion of additional funding for facilities-related work. With the FAA win, we have now won all four of our key repeat contracts over the last two years, including the Teams, FAA, and Faro and Giant Mine contracts. These long-duration contracts span from 7 to 20 years and are worth approximately $2 billion each, which solidifies our financial outlook. These wins are a testament to our strong program execution, customer relationships, and repeat win rates. During the first quarter, we also announced the acquisition of IPKeys Power Partners. This strategic acquisition, which closed in April, expands Parsons' presence in two rapidly growing end markets, grid modernization and cyber resiliency for critical infrastructure. IP Keys enables Parsons to bring cybersecurity tools, technology, and market experience to utility operators to secure operations, optimize efficiency, and achieve grid resiliency. This acquisition is consistent with our strategy of completing accretive acquisitions of companies with revenue growth and adjusted EBITDA margins of 10% or more, while adding intellectual property that strengthens the company's existing portfolio in both business segments. With the macro environment focused on utility and water, critical infrastructure protection and modernization, we look forward to the contributions that IP Keys will bring to Parsons. We maintained our robust balance sheet and ended the first quarter with a 1.4 times net leverage ratio. We continue to have an active M&A pipeline in both segments and will use our strong balance sheet to complete additional accretive acquisitions that drive growth and margin expansion into our business. We continue to build on our longstanding commitment to ESG. During the first quarter, we were recognized for our initiatives that attract, hire, and promote women, racial diversity, LGBTQ+, and other underrepresented people into the engineering industry. Additionally, we are proud that we were named one of the world's most ethical companies by Ethisphere for the 14th consecutive year. In April, we released our 2023 ESG report, highlighting key milestones and initiatives we achieved last year. These include year-over-year decreases in scope one, two, and three emissions, to reduce our carbon footprint. ESG is fundamental to our core values and how we operate as a company. In summary, we delivered record first quarter total revenue, organic revenue growth, adjusted EBITDA, and cash flow results. We also achieved a healthy book-to-bill ratio by increasing contract awards by approximately 50% in both segments. We continued to execute on our strategic M&A program by acquiring IP keys. These results illustrate our continued momentum, and I am proud of the work our talented employees deliver every day on our customers' most critical missions. Looking forward, I am very excited about our business. We have the right portfolio, the right team at the right time to capitalize on unprecedented global infrastructure spending and growing demand for national security solutions. We've solidified our financial outlook by winning a significant amount of new and repeat business, and we have a strong balance sheet that will enable us to continue to make accretive acquisitions to drive revenue growth and margin expansion. With that, I'll turn the call over to Matt to discuss our first quarter financial highlights. Matt?