Slide 1: Vectrus Third Quarter 2015 Earnings Presentation
VECTRUS THIRD QUARTER 2015 EARNINGS PRESENTATION KEN HUNZEKER CHIEF EXECUTIVE OFFICER AND PRESIDENT MATT KLEIN SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER NOVEMBER 5, 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: Q3 2015 Highlights
Q3 2015 HIGHLIGHTS Page 3 • Completed first full year as a publicly-traded pure-play government services provider • Core business revenue (1) increased 17%(1) compared to the prior year period • Army Corps of Engineers Information Technology (ACE-IT) contract fully operational • Solid third quarter
Slide 4: Vectrus Update
VECTRUS UPDATE Page 4 (1) Indefinite Delivery Indefinite Quantity (IDIQ) contracts carry no value in the pipeline of potential proposals to be submitted until a specific task order is identified. • Appointed Vice President for IT & Network Communication Services • Contract updates o Recompetes: K-BO
Slide 5: Q3 2015 Financial Results
Q3 2015 FINANCIAL RESULTS Page 5 (1) For periods ended September 27, 2014 (date of the Spin-off) and prior, basic and diluted earnings per share are computed using the number of shares of Vectrus common stock outstanding on September 27, 2014, the date on which the Vectrus common stock was distribut
Slide 6: Year to Date 2015 Financial Results
YEAR TO DATE 2015 FINANCIAL RESULTS Page 6 (1) For periods ended September 27, 2014 (date of the Spin-off), and prior, basic and diluted earnings per share are computed using the number of shares of Vectrus common stock outstanding on September 27, 2014, the date on which the Vectrus common stock wa
Slide 7: Backlog
BACKLOG (1) Page 7 (1) Total backlog represents firm orders and potential options on multi-year contracts, excluding potential orders under Indefinite-Delivery/Indefinite-Quantity (IDIQ) contracts. • As of Q3 2015, total backlog of $2.4 billion o Funded backlog $0.9 billion o Unfunded backlog $1.5 b
Slide 8: Updated 2015 Guidance Summary
UPDATED 2015 GUIDANCE SUMMARY Page 8 (1) All 2014 numbers exclude TARS program historical results and separation costs. See Appendix for reconciliation. (2) 2015 adjusted operating margin guidance excludes the pretax impact of year-to-date separation costs to become a standalone public company in th
Slide 9: Vectrus Third Quarter 2015
VECTRUS THIRD QUARTER 2015 EARNINGS PRESENTATION KEN HUNZEKER CHIEF EXECUTIVE OFFICER AND PRESIDENT MATT KLEIN SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER NOVEMBER 5, 2015
Slide 10: Appendix
ff APPENDIX \VECTRUS.
Slide 11: Reconciliation of Non-GAAP Measures (cont.)
RECONCILIATION OF NON-GAAP MEASURES (CONT.) Page 11 The primary financial performance measures we use to manage our business and monitor results of operations are revenue trends and operating income trends. In addition, we consider adjusted revenue, adjusted operating income, adjusted operating marg
Slide 12: Reconciliation of Non-GAAP Measures (cont.)
RECONCILIATION OF NON-GAAP MEASURES (CONT.) Page 12 (In thousands) Adjusted Operating Income (Non-GAAP Measure) September 25, 2015 September 26, 2014 September 25, 2015 September 26, 2014 Net income 14,028$ 2,114$ 25,012$ 19,482$ Income tax (benefit) expense (7,140) 1,155 (958) 10,815 Interest (expe
Slide 13: Reconciliation of Non-GAAP Measures (cont.)
RECONCILIATION OF NON-GAAP MEASURES (CONT.) Page 13 (In thousands) Free Cash Flow (Non-GAAP Measure) September 25, 2015 September 26, 2014 Net cash provided by operating activities 10,044$ 40,180$ Subtract: Capital expenditures (769) (2 049) Free cash flow 9,275$ 38,131$ (In millions) Adjusted Funde