Slide 1: Vectrus First Quarter 2016 Results
VECTRUS FIRST QUARTER 2016 RESULTS KEN HUNZEKER CHIEF EXECUTIVE OFFICER AND PRESIDENT MATT KLEIN SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER MAY 11, 2016
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT Page 2 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 STATEM
Slide 3: Q1 2016 Highlights
Q1 2016 HIGHLIGHTS Page 3 • Strong first quarter results o Revenue increased 19% to $310.7 million o Operating margin of 3.8% o Diluted EPS of $0.61; an increase of 33% compared to Q1 2015 o Diluted EPS of $0.61 increased 30% compared to Q1 2015 adjusted diluted EPS of $0.47 o Net cash provided by o
Slide 4: Vectrus Update
VECTRUS UPDATE Page 4 • Re-competes remain a priority in 2016 o K-BOSSS o APS-5 Kuwait/Qatar o Maxwell BOS • Awarded the re-competition of the Enterprise Legacy Voice and Information System (ELVIS) contract approx. $12 million • New Business o Opportunities are materializing on the AFCAP IDIQ vehicl
Slide 5: Q1 2016 Financial Results
Q1 2016 FINANCIAL RESULTS Page 5 (1) See Appendix for definitions and reconciliation. (in millions, except operating margin and diluted EPS) Q1 2016 Q1 2015 vs. 2015 Funded Orders 605.2$ 143.7$ 461.5$ Revenue 310.7$ 260.9$ 49.8$ Operating Income 11.8$ 9.4$ 2.4$ Operating Margin 3.8 % 3.6 % 0.2 % Net
Slide 6: Backlog
BACKLOG1 Page 6 (2) (1) Total backlog represents firm orders and potential options on multi-year contracts, excluding potential orders under IDIQ contracts. • Total backlog $2.5 billion as of April 1, 2016 o Funded backlog $1.0 billion o Unfunded backlog $1.5 billion $0.7 $0.7 $0.9 $0.7 $1.0 $1.9 $1
Slide 7: Updated 2016 Guidance Summary
UPDATED 2016 GUIDANCE SUMMARY Page 7 (1) See Appendix for reconciliation. (2) 2016 diluted EPS is calculated using the estimated weighted average diluted common shares outstanding of 11.2 million for the year ending December 31, 2016. (3) 2016 free cash flow is calculated as estimated GAAP net cash
Slide 8: Ken Hunzeker and Matt Klein - Vectrus First Quarter 2016 Results
KEN HUNZEKER CHIEF EXECUTIVE OFFICER AND PRESIDENT MATT KLEIN SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER VECTRUS FIRST QUARTER 2016 RESULTS
Slide 9: Appendix
ff APPENDIX \VECTRUS.
Slide 10: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES Page 10 The primary financial performance measures we use to manage our business and monitor results of operations are revenue trends and operating income trends. In addition, we consider adjusted operating income, adjusted operating margin, adjusted net income, a
Slide 11: Reconciliation of Non-GAAP Measures (Cont.)
Page 11 RECONCILIATION OF NON-GAAP MEASURES (CONT.) (in thousands, except per share data) Adjusted Diluted Earnings Per Share April 1, 2016 March 27, 2015 Net income 6,589$ 4,965$ Separation costs 1 (pretax) — 146 Tax impact of adjustments — (53) Adjusted net income 6,589$ 5,058$ GAAP EPS - diluted
Slide 12: Reconciliation of Non-GAAP Measures (Cont.)
Page 12 RECONCILIATION OF NON-GAAP MEASURES (CONT.) (In thousands) 2015 Revenue 1,180,684$ (In thousands) Adjusted Operating Income (Non-GAAP Measure) 2015 Operating income 39,962$ Operating margin 3.4 % Separation costs 1 (pretax) 177 Tax indemnifications 2 3,300 Adjusted operating income 43,439$ A