V2x, Inc. · NYSE:VVX
V2x — Vectrus — Investor Presentation (June 2019)
20 slides from V2x's investor presentation, Jun 11, 2019
Slide 1: Vectrus Investor Presentation
VECTRUS Investor Presentation JUNE 12, 2019
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: Investment Highlights
INVESTMENT HIGHLIGHTS History Global DoD support services provider with 70+ year legacy Performance Building on history of proven performance to diversify contract and client mix Transformation Transforming into higher value innovator in emerging $140B converged infrastructure market Proof of Succes
Slide 4: New Company, Proud History
NEW COMPANY, PROUD HISTORY 4-year old public company with a 70+ year legacy Leading operator of facilities, supply chains and IT networks for the U.S. military and intelligence community $1.3B 2018 revenue 22 countries 129 locations >35% veteran 6,700 employees workforce, perennial military-friendly
Slide 5: Transformation Creating Momentum
TRANSFORMATION CREATING MOMENTUM Broadened capabilities through investments Raised – SENTEL competitiveness and acquisition new business win Established targeted rate – Operational growth campaigns technologies Diversifying Improved customer customer mix value proposition and refined service Rebuilt
Slide 6: Evolving Addressable Market
EVOLVING ADDRESSABLE MARKET TAM: $140 Billion(1) Adjacent International Core Federal: Federal: Other: $36.5B • ~234 active major $49.5B $60.3B • Aligned to strong and military installations enduring funding sources Traditional Market Converged Market CORE SERVICES Vectrus Differentiation Vectrus Ope
Slide 7: Why We Win
WHY WE WIN Expertise in austere Decades-long client relationships environments around the globe Geographic diversity of Diversity of capabilities across presence in 22 countries operating environments Proven to perform against Global talent committed to client complex requirements success Cost struc
Slide 8: Growth Strategy
GROWTH STRATEGY Enhance Program Execution Expand Technology And Expand The Base Capabilities Diversify Customer Mix Infuse Technology Into Enhance Expand Existing Programs Foundation Portfolio Innovate and lead in the converged infrastructure market Organic Growth Add More Value Inorganic Growth • E
Slide 9: Organic Growth - LOGCAP V
ORGANIC GROWTH - LOGCAP V LOGCAP V, $82 BILLION, 10 YEAR CONTRACT, FOUR COMPETITORS – • LOGCAP V task awards; $1.4 Billion, ~40% of awarded value • Double digit revenue growth expected in 2020 (given normal protest cycles) CENTCOM & INDOPACOM GIVE VECTRUS A PRESENCE OVERVIEW IN ALL 24 TIME ZONES • C
Slide 10: Organic Growth - Case Studies
ORGANIC GROWTH - CASE STUDIES Growth Campaigns Expanding Scope (Air Force Example) Leveraging global footprint and client Deliberate, campaign based, approach to base for growth: organic growth in targeted clients: • Kuwait – Won $108M 5-year Army contract • Air Force rev. up ~50% year-over-year in
Slide 11: Organic Growth - Case Studies
ORGANIC GROWTH - CASE STUDIES Operational Technology Partnerships Solutions Introducing differentiated solutions teaming for opportunities across the focused on lowering cost and enhancing federal market place: performance: • Won $32M Readiness Support Subcontract in • Automated control of the worko
Slide 12: Organic Growth - Backlog
ORGANIC GROWTH - BACKLOG(1) $B $4.9 $3.3 $3.3 $3.4 $3.0 $3.0 Robust Pipeline $M $9,000 $1,400 $8,000 $1,000 $7,000 $1,500 $1,000 $6,000 $7,700 $7,000 $5,000 $6,000 $6,000 $4,000 Year Ending December Year Ending December Year Ending December Year Ending December 31, 2015 31, 2016 31, 2017 31, 2018 Pl
Slide 13: Performance, Execution, Profitability
PERFORMANCE, EXECUTION, PROFITABILITY Strategic Execution 5-Year EBITDA Margin Objective GROWTH – BUILD ON MOMENTUM • Retain re-compete programs • Portfolio diversification and solutions 8.0% 1.3% • Progress international sales campaign 7.0% 7.0% • LOGCAP V – Leverage new geographic position 6.0% 0.
Slide 14: Driving to 5-Year Margin Goal
DRIVING TO 5-YEAR MARGIN GOAL Volume and Contract Mix Enterprise Vectrus Solutions and Client Mix Actions: Actions: Actions: • Growth to Create Scale • Enhance Program • Diversify Client Base Performance • Cost-Plus vs Fixed-Priced • Expand Intelligence • Leverage Supply Chain Footprint • Enhance su
Slide 15: Q1 2019 Financial Results
Q1 2019 FINANCIAL RESULTS 1 1 (1) See appendix for reconciliation of non-GAAP measures Page 15
Slide 16: 2019 Guidance
2019 GUIDANCE2 2019 guidance assumptions: • EPS and margins expected to build sequentially throughout the year • EPS weighting is expected to be approx. 40% in H1’19 and 60% in H2’19 • Operational capital expenditures approximately $8.5 million • Depreciation and amortization approximately $4.1 mill
Slide 17: Investment Highlights
INVESTMENT HIGHLIGHTS History Global DoD support services provider with 70+ year legacy Performance Building on history of proven performance to diversify contract and client mix Transformation Transforming into higher value innovator in emerging $140B converged infrastructure market Proof of Succes
Slide 18: Appendix
APPENDIX \VECTRUS
Slide 19: 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 net income, adjusted diluted earnings per share, EBITDA and EBITDA % to be
Slide 20: Vectrus
VECTRUS Investor Presentation JUNE 12, 2019