Parsons Corp (NYSE: PSN) stock continued its bullish momentum rising over 6.5% on 19th June, 2019 (as of 1:26 pm GMT-4; Source: Google finance)
The company in the first quarter of FY 19 has reported 20% growth in the total revenue from the prior year period mainly due to the Polaris Alpha and OGSystems acquisitions, which had added $122 million, and organic growth in both the Federal Solutions and Critical Infrastructure market segments. Adjusted EBITDA for the first quarter of 2019 increased by 43% to $68 million over the prior year period. Adjusted EBITDA margin expanded to 7.5%, or by 120 basis points from the first quarter of 2018. Adjusted EBITDA and Adjusted EBITDA margin increased mainly on the back of recent acquisitions in the Federal Solutions segment, as well as organic revenue growth and margin expansion in both the Federal Solutions and Critical Infrastructure segments. The Federal Solutions segment also benefited from a shift in revenue mix to higher margin markets including cyber, intelligence, geospatial, missile defense and space.
Adjusted EBITDA attributable to Parsons for the first quarter of 2019 rose 47% to $64 million over the prior year period. Adjusted EPS was $0.57 in the first quarter 2019, a 67% increase over the first quarter of 2018. However, the Operating income declined 41% from the first quarter of 2018 primarily due to an increase in acquisition-related intangible amortization expenses and IPO costs.
Moreover, for the Federal Solutions segment, the first quarter 2019 revenue increased $131 million, or 45%, compared to the prior year period. The increase was mainly due to the acquisitions of Polaris Alpha and OGSystems, which contributed $122 million of revenue to the first quarter of 2019, as well as organic growth. For Critical Infrastructure segment, the first quarter 2019 revenue increased $18 million, or 4%, compared to the prior year period. The increase was primarily due to revenue growth on existing contracts.
Additionally, Book-to-bill ratio for the first quarter 2019 is of 1.4x on net bookings of $1.2 billion. Total backlog for the first quarter 2019 was of $8.6 billion, which is 35% increase over the first quarter of 2018. Cash flow used in operating activities for the first quarter 2019 was of $60 million, 8% increase from first quarter 2018. For the first quarter 2019, thw total and net debt were $659 million and $538 million, respectively. After the receipt of IPO proceeds, total and net debt were approximately $250 million and $50, respectively, which positioned the Company for continued investment in the implementation of its strategy.