V2x, Inc. · NYSE:VVX
V2x — Vectrus — Q2 2016 Earnings Presentation
11 slides from V2x's earnings presentation, Aug 10, 2016
Slide 1: Vectrus Second Quarter 2016 Results
VECTRUS SECOND QUARTER 2016 RESULTS KEN HUNZEKER CHIEF EXECUTIVE OFFICER AND PRESIDENT MATT KLEIN SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER AUGUST 10, 2016
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 (THE "ACT"): CERTAIN MATERIAL PRESENTED HEREIN INCLUDES FORWARD-LOOKING STATEMENTS INTENDED TO QUALIFY FOR THE SAFE HARBOR FROM LIABILITY ESTABLISHED BY THE ACT. THESE FORWARD-LOOKING STATEMENTS IN
Slide 3: Q2 2016 Highlights
Q2 2016 HIGHLIGHTS • Second quarter results o Revenue $307.9 million o Operating margin of 3.7% o Diluted EPS of $0.55 o Year-to-date 2016 net cash provided by operating activities $19.3 million Year-to-date 2016 free cash flow1 $19.0 million • Achieved a Vectrus record of 52 days sales outstandin
Slide 4: Vectrus Update
VECTRUS UPDATE • Recent events in Turkey • Re-compete update o K-BOSSS o APS-5 Kuwait/Qatar o Maxwell BOS • IT Networks update • New Business o Approx. $1 billion of proposals submitted and pending potential award1, 100% for new business; almost $7 billion in potential new business opportunities ide
Slide 5: Financial Results
FINANCIAL RESULTS Second Quarter 2016 Q2 Q2 (in millions, except operating margin and diluted EPS) 2016 2015 vs. 2015 Funded Orders $ 303.7 $ 332.4 $ (28.7) Revenue $ 307.9 $ 309.5 $ (1.6) Operating Income $ 11.3 $ 10.8 $ 0.5 Operating Margin 3.7 % 3.5 % 0.2 % Diluted EPS $ 0.55 $ 0.56 $ (0.01) Year
Slide 6: Backlog
BACKLOG(1)(2) ($B) $3.0 $2.5 $2.4 $2.4 $2.5 $2.5 $2.3 $2.0 (2) $1.5 $1.8 $1.5 $1.7 $1.5 $1.3 $1.0 $0.5 $0.7 $0.9 $0.7 $1.0 $1.0 $- Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Funded Unfunded • Total backlog $2,332 million as of July 1, 2016 o Funded backlog $975 million o Unfunded backlog $1,357 million
Slide 7: Updated 2016 Guidance Summary
UPDATED 2016 GUIDANCE SUMMARY (Updated) (Prior) (Updated) 2016 Mid (Prior) (Updated) 2016 2016 Adjusted Variance (in millions, except operating margin and diluted EPS) 2016 Guidance 2016 Guidance Mid-point Mid-point 20151 to 2015 %Var Revenue $1,150 to $ 1,190 $1,180 to $ 1,200 $ 1,170 $ 1,190 $ 1,1
Slide 8: Vectrus Second Quarter 2016 Results
VECTRUS SECOND QUARTER 2016 RESULTS KEN HUNZEKER CHIEF EXECUTIVE OFFICER AND PRESIDENT MATT KLEIN SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER
Slide 9: Appendix
f APPENDIX
Slide 10: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES The primary financial performance measures we use to manage our business and monitor results of operations are revenue trends and operating income trends. In addition, we consider adjusted operating income, adjusted operating margin, adjusted net income, adjusted
Slide 11: Reconciliation of Non-GAAP Measures (cont.)
RECONCILIATION OF NON-GAAP MEASURES (CONT.) Year Ended Year Ended December 31, (In thousands, except for share and per share data) December 31, (In thousands) 2015 Adjusted Net Income and Adjusted Diluted Revenue $ 1,180,684 Earnings Per Share (Non-GAAP Measure) 2015 Net income $ 30,973 1 Year Ended