V2x, Inc. · NYSE:VVX
V2x — Vectrus — Q1 2015 Earnings Presentation
13 slides from V2x's earnings presentation, May 6, 2015
Slide 1: Vectrus First Quarter 2015 Earnings Presentation
VECTRUS FIRST QUARTER 2015 EARNINGS PRESENTATION KEN HUNZEKER CHIEF EXECUTIVE OFFICER AND PRESIDENT MATT KLEIN SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER MAY 7, 2015
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 2015 Highlights
Q1 2015 HIGHLIGHTS Page 3 • First quarter results support full-year guidance o Revenue $260.9 million o Operating margin 3.6% o Diluted earnings per share (EPS) $0.46; adjusted diluted earnings per share (1) $0.47 o Net cash used in operating activities ($27.2) million; Free cash flow (2) ($27.7) mi
Slide 4: Vectrus Environment
VECTRUS ENVIRONMENT Page 4 • Update on 2015 contract re-competes o K-BOSSS o APS-5 Kuwait and Qatar o Maxwell Base Operating Services • Robust new business pipeline o Approx. $1 billion of proposals submitted and pending potential award(1), 100% for new business o $3 billion in potential new busines
Slide 5: Q1 2015 Financial Results
Q1 2015 FINANCIAL RESULTS Page 5 (In millions, except Operating Margin and Diluted Earnings Per Share) Q1 2015 Q1 2014 vs. 2014 Funded Orders 143.7$ 140.4$ 3.3$ Revenue 260.9$ 303.9$ (43.0)$ Operating Income 9.4$ 17.6$ (8.2)$ Operating Margin 3.6% 5.8% (220) bps Net Cash Used in Operating Activities
Slide 6: Backlog
BACKLOG(1) • Total Backlog(1) as of Q1 2015 of $2.6B (excludes Thule Base Maintenance contract award(2) until all protests are resolved); adjusted backlog(1) which includes the Thule Base Maintenance contract award(2) is $3.0B Page 6 (2) (1) Total backlog represents firm orders and potential options
Slide 7: 2015 Guidance Summary
2015 GUIDANCE SUMMARY PAGE 7 (1) All 2014 numbers, exclude TARS program historical results and separation costs. See Appendix for reconciliation. (2) 2015 adjusted operating margin excludes the pretax impact of 2015 separation costs, in the amount of $500K. (3) 2015 adjusted diluted EPS excludes the
Slide 8: Vectrus Investment Highlights
VECTRUS INVESTMENT HIGHLIGHTS Page 8 Strong Core Business Enduring Customer Relationships Significant Market Opportunity Large Pipeline of Potential Opportunities and Sound Growth Strategy Solid Financial Position
Slide 9: Vectrus First Quarter 2015
VECTRUS FIRST QUARTER 2015 EARNINGS PRESENTATION MAY 7, 2015
Slide 10: Appendix
ff APPENDIX \VECTRUS.
Slide 11: Reconciliation of Non-GAAP Measures (cont.)
RECONCILIATION OF NON-GAAP MEASURES (CONT.) Page 11 The primary financial performance measures Vectrus uses to manage its business and monitor results of operations are revenue trends and operating income trends. In addition, we consider adjusted revenue, adjusted operating income, adjusted operatin
Slide 12: Reconciliation of Non-GAAP Measures (cont.)
RECONCILIATION OF NON-GAAP MEASURES (CONT.) Page 12 (In thousands) Adjusted Operating Income (Non-GAAP Measure) March 27, 2015 March 29, 2014 Net income 4,965$ 11,235$ Income taxes 2,794 6,343 Interest income (expense) (1,596) 22 Operating income 9,355 17,556 Operating margin 3.6% 5.8% TARS operatin
Slide 13: Reconciliation of Non-GAAP Measures (cont.)
RECONCILIATION OF NON-GAAP MEASURES (CONT.) Page 13 (In millions) Adjusted Funded Orders (Non-GAAP Measure) March 27, 2015 March 29, 2014 Orders 143.7$ 140.4$ TARS Orders ¹ — (23.4) Adjusted Orders 143.7$ 117.0$ Three Months Ended ¹ TARS program historical revenue, which has been retained by Exelis