VSE Corporation Announces Fourth Quarter and Full-Year 2020 Results

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[{"type":"text","content":"\nStrategic transformation underway, positioned for organic and inorganic growth in 2021\n\n ALEXANDRIA, Va.--(BUSINESS WIRE)--\nVSE Corporation (NASDAQ: VSEC, “VSE”, or the “Company”), a leading provider of aftermarket distribution and maintenance, repair and overhaul (\"MRO\") services for land, sea and air transportation assets for government and commercial markets, today announced results for the fourth quarter and full-year 2020.\n\nFOURTH QUARTER 2020 RESULTS\n(As compared to the Fourth Quarter 2019)\n\n\nTotal Revenues of $150.0 million declined 23.2%\n\n\nTotal Revenues, excluding divestitures, declined 19.6%(1)\n\n\nGAAP Net Income of $6.0 million declined 39.8%\n\n\nAdjusted Net Income of $5.8 million declined 49.8%\n\n\nAdjusted EBITDA of $17.3 million declined 25.2%\n\n\n(1) Excludes the previously announced divestitures of Prime Turbines and CT Aerospace\n\nFor the three months ended December 31, 2020, the Company reported total revenue of $150.0 million, versus $195.3 million for the same period ended 2019. The Company reported adjusted net income of $5.8 million or $0.52 per adjusted diluted share, compared to $11.5 million or $1.04 per adjusted diluted share in the prior-year period. Adjusted EBITDA declined to $17.3 million in fourth quarter 2020, versus $23.1 million for the same period in 2019. The Company reported negative free cash flow of $0.9 million during the fourth quarter 2020, which includes $10.7 million of inventory purchases supporting the recently announced new product distribution agreements in the Aviation segment.\n\nAviation segment revenue, excluding the previously divested Prime Turbines and CT Aerospace assets, declined 26.2% on a year-over-year basis in the fourth quarter 2020, as lower revenue passenger miles at major airline customers resulted in reduced commercial MRO activity. During the fourth quarter, Aviation segment revenue increased 6.5% when compared to the third quarter 2020, supported by a combination of market share gains within the parts distribution business, together with increased demand for parts and services from business and general aviation (B&GA) customers. Federal and Defense segment revenue declined 28.8% on a year-over-year basis in the fourth quarter 2020, primarily due to the completion of a DoD program during the first quarter 2020. Fleet segment revenue increas...

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