V2x, Inc. · NYSE:VVX
V2x — Vectrus — Q2 2015 Earnings Presentation
15 slides from V2x's earnings presentation, Aug 6, 2015
Slide 1: Vectrus Second Quarter 2015 Earnings Presentation
VECTRUS SECOND QUARTER 2015 EARNINGS PRESENTATION KEN HUNZEKER CHIEF EXECUTIVE OFFICER AND PRESIDENT MATT KLEIN SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER AUGUST 6, 2015
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: Celebrating 70 Years
Vi CELEBRATING 70 YEARS 70 YEARS of Service ag pee $Y es ; ate Sieuee ene es \VecrRUS. \VecrRus a
Slide 4: Celebrating 70 Years
v CELEBRATING 70 YEARS VECTRUS The quality we provided ‘on the DEW Line led in 1961 toa contract ‘supporting military ‘communications in Europe and the Mediterranean. Today ‘we continue to go where we are needed, ‘even supporting ships at ‘sea for the Navy. At right, the early headquarters for K- ‘T
Slide 5: Q2 2015 Highlights
Q2 2015 HIGHLIGHTS • Solid second quarter results o Revenue $309.5 million o Operating margin 3.5% o Diluted earnings per share (EPS) $0.56 o Year-to-date net cash used in operating activities $0.2 million; Free cash flow(1) use $0.9 million Incremental free cash flow2 $26.8 million during the qua
Slide 6: Vectrus Update
VECTRUS UPDATE • Macro Environment • Update on 2015 contract re-competes o K-BOSSS extension into March 2016 o APS-5 Kuwait and Qatar award decision anticipated in 2016 o Maxwell Base Operations Support extended into May 2016 • New Business update o Approx. $1 billion of proposals submitted and pend
Slide 7: Q2 2015 Financial Results
Q2 2015 FINANCIAL RESULTS Second Quarter 2015 (In millions, except Operating Margin and Diluted Earnings Per Share) Q2 2015 Q2 2014 vs. 2014 Funded Orders $ 332.4 $ 337.0 $ (4.6) Revenue $ 309.5 $ 312.9 $ (3.4) Operating Income $ 10.8 $ 9.4 $ 1.4 Operating Margin 3.5% 3.0% 50 bps (1) Diluted Earning
Slide 8: Year to Date 2015 Financial Results
YEAR TO DATE 2015 FINANCIAL RESULTS Year-to-date June 2015 (In millions, except Operating Margin and Diluted Earnings Per Share) Q2 2015 Q2 2014 vs. 2014 Funded Orders $ 476.0 $ 477.3 $ (1.3) Revenue $ 570.4 $ 616.9 $ (46.5) Operating Income $ 20.2 $ 27.0 $ (6.8) Operating Margin 3.5% 4.4% (90) YTD
Slide 9: Backlog
BACKLOG (1) ($B) $3.5 $3.0 $2.9 $2.6 $2.5 (2) $2.5 $2.0 $2.1 $1.9 $1.8 $1.5 $1.0 $0.5 $0.8 $0.7 $0.7 $- Year Ending Q1 2015 Q2 2015 December 31, 2014 Unfunded Funded • As of Q2 2015, total backlog of $2.5 billion o Funded backlog $0.7 billion o Unfunded backlog $1.8 billion (1) Total backlog represe
Slide 10: Updated 2015 Guidance Summary
UPDATED 2015 GUIDANCE SUMMARY $ millions, except per share amounts 2015 Guidance 2014 (1) 2015 Mid $Var % Var Revenue $ 1,150 to $ 1,200 $ 1,172 $ 1,175 $ 3 0.3% Adjusted Operating Margin (2) 3.2% to 3.6% 4.3% 3.4% (90) BPS Adjusted Diluted EPS (3) $ 1.85 to $ 2.23 $ 2.80 $ 2.04 $ (0.76) -27.1% Free
Slide 11: Vectrus Second Quarter 2015 Earnings Presentation
VECTRUS SECOND QUARTER 2015 EARNINGS PRESENTATION KEN HUNZEKER CHIEF EXECUTIVE OFFICER AND PRESIDENT MATT KLEIN SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER AUGUST 6, 2015
Slide 12: Appendix
f APPENDIX
Slide 13: Reconciliation of Non-GAAP Measures (cont.)
RECONCILIATION OF NON-GAAP MEASURES (CONT.) The primary financial performance measures Vectrus uses to manage its business and monitor results of operations are revenue trends and operating income trends. In addition, we consider adjusted revenue, adjusted operating income, adjusted operating margin
Slide 14: Reconciliation of Non-GAAP Measures (cont.)
RECONCILIATION OF NON-GAAP MEASURES (CONT.) (In thousands) Three Months Ended Six Months Ended June 26, June 28, June 26, June 28, Adjusted Operating Income (Non-GAAP Measure) 2015 2014 2015 2014 Net income $ 6,020 $ 6,132 $ 10,985 $ 17,367 Income taxes 3,388 3,317 6,182 9,660 Interest (expense) inc
Slide 15: Reconciliation of Non-GAAP Measures (cont.)
RECONCILIATION OF NON-GAAP MEASURES (CONT.) (In thousands) Six Months Ended Free Cash Flow (Non-GAAP Measure) June 26, 2015 June 28, 2014 Net cash (used in) and provided by operating activities $ (181) $ 2,637 Subtract: Capital expenditures (734) (1,004) Free cash flow $ (915) $ 1,633 (In millions)