Parsons Corp at Raymond James Diversified Industrials Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Brian Gesuale - Raymond James & Associates, Inc. - Analyst : Maybe let's just level set the audience. Give us a brief history of Parsons. Talk about what you do for your customers and some of your competitive advantages and really discuss your mix of business.

Question: Brian Gesuale - Raymond James & Associates, Inc. - Analyst : That's fantastic, Carey. Maybe just a quick follow-up, you mentioned so many areas that is getting a lot of interest, whether it's cyber, missile defense. Can you point to one or two of those that you're seeing the most activity now as we start to think about that near peer threat or infrastructure spend that's been in the news so much?

Question: Brian Gesuale - Raymond James & Associates, Inc. - Analyst : It makes a lot of sense. I think you are really, really well positioned. I want to talk about things -- when we think about Parsons, it's been a consistent grower over the course of the company's history. 2021, your business contracted a little bit. You've really accelerated nicely here over the last several quarters. Can you talk about some of the factors that led to that re-acceleration here? You're now amongst the fastest in your peer group.

Question: Brian Gesuale - Raymond James & Associates, Inc. - Analyst : Fantastic. Maybe we stick with financials here. You provided a really healthy guide with your last update. Some might think it's conservative. But I thought really strong.

Question: Brian Gesuale - Raymond James & Associates, Inc. - Analyst : Measured is a great term. Can you maybe take us through some of the factors that would bring you in towards the low end versus some of the things that might bring you to the high end? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 23, 2022 / 12:35PM, PSN.N - Parsons Corp at Raymond James Diversified Industrials Conference

Question: Brian Gesuale - Raymond James & Associates, Inc. - Analyst : Yeah, fantastic. I was really pleased with the guide. You have mentioned government. You certainly do serve the government. This has been a bit of a funky year for government contracting, right? We started out very slow continuing resolution, not a lot of dollars in interest in defense and intel. Late Q1, all of a sudden, the (inaudible) turned on and there's a lot of funding, bumping every number up that we track. But the contracting really hasn't followed suit with many new awards. Can you maybe just talk about your expectation for award activity coming up in the government's fiscal year end? And if we don't see a meaningful flush, when do these awards get awarded because it's a matter of timing, right? It's not an if; it's a when. So how do you see that playing out here over the next couple of months?

Question: Brian Gesuale - Raymond James & Associates, Inc. - Analyst : That's great. Maybe if we jump back over to financials and maybe zoom out a little bit this time instead of talking about the year. Can you maybe talk about the long-term financial model, how we think about organic growth, maybe tucking in some acquisitions along the way to add capabilities, margins, cash flow, and really how you're thinking about the overall business from that perspective?

Question: Brian Gesuale - Raymond James & Associates, Inc. - Analyst : Right. One of the areas that's really changed dramatically has been infrastructure. If we think back over the last five years and what we have seen going forward, backlog had contracted in that business over a period of time. It seems likely the award activity, when you just talk about some of the proposals, it could really grow over the next several years. What type of magnitude are you thinking about when you think about what infrastructure could be over the next several years versus where it's been in the past?

Question: Brian Gesuale - Raymond James & Associates, Inc. - Analyst : It sounds exciting. Let's talk a little bit about execution now. This has been -- if we talk about funky year for contracting, the macros certainly presented a bunch of funky challenges as well. Would you talk about may be handful of things, including hiring and what attrition has looked like? Maybe also any supply chain impacts that you had to mitigate through? Also, maybe talk about how FX impacts your business, if at all. And then finally, talk about your longer-term contracts, how your protected for inflation.

Question: Brian Gesuale - Raymond James & Associates, Inc. - Analyst : That's really helpful. Maybe we pivot towards the balance sheet now at this point in time. Can you maybe talk about what you see as comfortable leverage, preferred use of cash and capital deployment, and how you look at your overall strategy from that perspective?

Question: Brian Gesuale - Raymond James & Associates, Inc. - Analyst : That's fantastic. This really concludes the formal part of the program. But I'd like to give my management teams a drop-the-mic moment. And so Carey, what message do you want -- no follow-up from me, this is all on you -- what message do you want the investors to take away this morning in the Parsons story? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 23, 2022 / 12:35PM, PSN.N - Parsons Corp at Raymond James Diversified Industrials Conference

Question: Brian Gesuale - Raymond James & Associates, Inc. - Analyst : It sure sounds like and we are excited to hear future updates. And I'll definitely be at the Analyst Day early next year.

Question: Brian Gesuale - Raymond James & Associates, Inc. - Analyst : Thank you so much.

Question: Brian Gesuale - Raymond James & Associates, Inc. - Analyst : Oh. A question from the audience? Unidentified Participant I have a quick question.

Question: Brian Gesuale - Raymond James & Associates, Inc. - Analyst : Great. Carey, Matt, thank you so much for joining us. And people in the audience, thanks for joining as well, as well as in the virtual world. Thank you.