V2x, Inc. · NYSE:VVX
V2x — Vectrus — Q4 2016 Earnings Presentation
13 slides from V2x's earnings presentation, Mar 1, 2017
Slide 1: Vectrus Fourth Quarter 2016 Results
VECTRUS FOURTH QUARTER 2016 RESULTS CHUCK PROW PRESIDENT AND CHIEF EXECUTIVE OFFICER MATT KLEIN SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER MARCH 1, 2017
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: Full-Year 2016 Highlights
FULL-YEAR 2016 HIGHLIGHTS Page 3 • Full-Year 2016 Results o Revenue of $1,190.5 million o Operating margin of 3.6% o Diluted EPS of $2.16 o Net cash provided by operating activities of $36.6 million o Paid down $29 million of debt; $15 million voluntary • Awarded and successfully phased in a $21 mil
Slide 4: Business Update
BUSINESS UPDATE Page 4 • Contract Updates o K-BOSSS o APS-5 Kuwait/Qatar o Maxwell BOS • Thule Base Maintenance Contract Update • New Business o Approx. $1.5 billion of proposals submitted and pending potential award1, 100% for new business; almost $6 billion in potential new business opportunities
Slide 5: Vectrus Strategy Update
VECTRUS STRATEGY UPDATE Page 5 Vectrus will drive growth through strategic imperatives aligned to our three core strategies. ENHANCE PROGRAM EXECUTION AND EXPAND THE BASE EXPAND SERVICE OFFERING AND OPTIMIZE BUSINESS MODEL INFUSE TECHNOLOGY INTO CURRENT FACILITIES & LOGISTICS SERVICES (F&LS) BUSINES
Slide 6: Q4 and Full-Year 2016 Financial Results
Q4 AND FULL-YEAR 2016 FINANCIAL RESULTS Page 6 (1) Non-GAAP financial measure. See appendix for reconciliation. There were no adjustments to 2016 financial results. (In millions, except Operating Margin and Diluted Earnings Per Share) Q4 2016 Q4 2015 vs 2015 2016 2015 vs. 2015 Revenue 288.2$ 311.2$
Slide 7: Debt Profile
$140.0 $137.4 $114.0 $85.0 12.0 15.0 2.6 11.4 14.0 $75 $85 $95 $105 $115 $125 $135 $145 9/30/14 Debt Balance 2014 12/31/14 Debt Balance 2015 2015 12/31/15 Debt Balance 2016 2016 12/31/16 Debt Balance Voluntary Payments Mandatory Payments DEBT PROFILE Page 7 ($M) Total Debt Payment History: Mandatory
Slide 8: Backlog
BACKLOG(1)(2) Page 8 (2) (1) Total backlog represents firm orders and potential options on multi-year contracts, excluding potential orders under IDIQ contracts. (2) Q4 2016 total backlog includes the Thule Base Maintenance Contract. • Total backlog $2,356 million as of December 31, 2016 o Funded ba
Slide 9: 2017 Guidance Summary
2017 GUIDANCE SUMMARY Page 9 2017 guidance assumptions: • Capital expenditures approximately $1.0 million • Depreciation and amortization approximately $2.3 million • Equity-based founder’s grants drive non-cash expense total $0.6 million • 2017 mandatory debt payments $15.8 million • Interest expen
Slide 10: Vectrus Fourth Quarter 2016 Results
CHUCK PROW PRESIDENT AND CHIEF EXECUTIVE OFFICER MATT KLEIN SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER VECTRUS FOURTH QUARTER 2016 RESULTS
Slide 11: Appendix
ff APPENDIX \VECTRUS.
Slide 12: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES Page 12 The primary financial performance measures we use to manage our business and monitor results of operations are revenue trends and operating income trends. In addition, we consider adjusted operating income, adjusted operating margin, adjusted net income, a
Slide 13: Reconciliation of Non-GAAP Measures (Cont.)
RECONCILIATION OF NON-GAAP MEASURES (CONT.) Page 13 (In thousands) Adjusted Operating Income (Non-GAAP Measure) 2016 2015 2016 2015 Revenue 288,160$ 311,194$ 1,190,519 1,180,684 Operating income 8,555$ 11,291$ 42,826$ 39,962$ Separation costs 1 (pretax) — — — 177 Tax indemnifications 2 — — — 3,300 A