Slide 1: Third Quarter 2022 Results
Third Quarter 2022 Results TRUSTED WHEREVER THE MISSION LEADS November 8, 2022 Q3'22 Earnings Presentation \\ 1
Slide 2: Call Participants
Call Participants Chuck Prow Susan Lynch President and Chief Executive Senior Vice President and Chief Officer Financial Officer Q3'22 Earnings Presentation \\ 2
Slide 3: Disclaimers
Disclaimers FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act), and Section 27A of the Securities Act of 1933, as amended (the Securities Act), and the Private Securi
Slide 4: Q3'22 Highlights
Q3’22 Highlights 1 • Strong Q3’22 results and initial quarter as V2X 1 — Revenue of $958 million ; Pro forma revenue of $961 million, up 10% y/y driven by strong growth on existing programs and phase-in of recent new business wins — Operating income of $4.5 million includes ~$45 million of merger an
Slide 5: Integration Timeline and Goals
Integration Timeline and Goals Integration Workstreams Fully March Operational August • DELIVER: Operating units focused on delivering 2022 2022 2022 commitments Transaction Announced • INTEGRATE: Executing integration plans and achieving 2022 synergies Delivering Results Today • FINANCIAL: On track
Slide 6: Leading Growth Indicators
Leading Growth Indicators ~$20B >$6B ~$13B Near-Term Trailing Twelve Total Backlog 3.5x Revenue Pipeline Month Awards Coverage1 • Expanding scope on existing business ~$20 billion in near-term new business — Recently awarded the USMC KC-130J Cockpit Upgrades for 48 opportunities aircraft by leveragi
Slide 7: Strategy Provides Robust Market Potential
Strategy Provides Robust Market Potential Significant Market Opportunity • The V2X strategy is designed to deliver growth by CONVERGED ENVIRONMENT providing converged solutions that fuse the digital and physical aspects of our clients' missions CONVERGED • The V2X market focus is designed to leverag
Slide 8: Q3'22 Financial Results
Q3’22 Financial Results Operating Income & Adj. Revenue ($M) EBITDA1 ($M) Diluted EPS Adj. Diluted EPS1,2 $79.0 $0.87 $1.33 $958.2 $459.4 $1.17 $(0.56) $20.5 $12.9 $4.5 Q3'21 Q3'22 Q3’21 Q3’22 Q3’21 Q3’22 Q3'21 Q3'22 Q3'22 Earnings Presentation \\ 8 1 See appendix for reconciliation of non-GAAP meas
Slide 9: Cash Flow and Liquidity
Cash Flow and Liquidity QTD Operating Cash Flow ($M) Net Debt ($M) Strong Q3’22 adjusted operating cash flow1 of $121.2 million, excluding $41.1 million of Merger related payments Net debt down ~$87 million or 7% from Merger close (July 5) $121 $1,308 $1,221 $80 Revolver undrawn at quarter end
Slide 10: Solid Deleveraging Profile
Solid Deleveraging Profile Net leverage ratio1 at 3.7x Net Leverage1 Leverage ratio reduced by 4.0x 0.3x in under 3 months 3.7x Robust future cash 2.0 – 3.0x generation supported by ~$13 billion backlog2 Clear path to deleveraging Mid-term target of 2.0-3.0x Pro Forma at Close Q3'22 Mid-Term Target
Slide 11: Second Half 2022 Guidance
Second Half 2022 Guidance1 2H 2022 2H 2022 2H 2022 2H 2022 ($M, except per share Guidance M id-P oint Guidance Mid-Point data) (P revious) (P revious) (Revised) (Revised) Revenue $1,900 - $1,940 $1,920 $1,920 - $1,940 $1,930 Adjusted EBITDA2 ($) $140 - $150 $145 $145 - $150 $147.5 Adjusted Diluted $
Slide 12: Key Takeaways… Investing with V2X
Key Takeaways… Investing with V2X Differentiated capabilities and robust portfolio of solutions providing full life-cycle support to the most critical & enduring missions Geographic, client, and contract diversity with no task order >11% of revenue Significant anticipated revenue visibility with >40
Slide 13: Appendix
Appendix TRUSTED WHEREVER THE MISSION LEADS Q3'22 Earnings Presentation \\ 13
Slide 14: Reconciliation Of Non-GAAP Measures/Non-GAAP Definitions
Reconciliation Of Non-GAAP Measures/Non-GAAP Definitions This presentation includes certain non-GAAP financial measures, including adjusted operating income, adjusted operating margin, adjusted net income, adjusted diluted earnings per share, EBITDA, adjusted EBITDA, EBITDA margin, adjusted EBITDA m
Slide 15: Reconciliation Of Non-GAAP Measures
Reconciliation Of Non-GAAP Measures Non-GAAP Financial Measures Three Months Ended Three Months Ended M&A, Integration and Amortization of Acquired Amortization of Debt Prior Years' September 30, 2022 ($K, except per share data) September 30, 2022 Related Costs Intangible Assets Issuance Costs Tax C
Slide 16: Reconciliation Of Non-GAAP Measures
Reconciliation Of Non-GAAP Measures Non-GAAP Financial Measures Three Months Ended Three Months Ended M&A, Integration and Amortization of Acquired Amortization of Debt Prior Years' October 1, 2021 ($K, except per share data) October 1, 2021 Related Costs Intangible Assets Issuance Costs Tax Credits
Slide 17: Trusted Wherever The Mission Leads
TRUSTED WHEREVER THE MISSION LEADS Q3'22 Earnings Presentation \\ 17