V2x, Inc. · NYSE:VVX
V2x — Vectrus — Q2 2019 Earnings Presentation
17 slides from V2x's earnings presentation, Aug 6, 2019
Slide 1: Vectrus Second Quarter 2019 Results
VECTRUS SECOND QUARTER 2019 RESULTS CHUCK PROW PRESIDENT AND CHIEF EXECUTIVE OFFICER BILL NOON ACTING CHIEF FINANCIAL OFFICER AUGUST 6, 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: Q2'19 Highlights
Q2’19 HIGHLIGHTS • Revenue growth of 3.3% to $331.6 million year-over-year reflects increasing momentum – Grew Navy revenue 68% yr/yr and Air Force revenue 20% • GAAP diluted EPS of $0.66, includes $0.08 per share of M&A related costs and LOGCAP V pre-operational legal costs – Adjusted diluted EPS o
Slide 4: Advantor: A Great Fit
ADVANTOR: A GREAT FIT FURTHER DIFFERENTIATES SOLUTIONS OFFERINGS ADVANCES STRATEGY TO LEAD THE CONVERGED INFRASTRUCTURE MARKET – Extends maintenance of facilities to the protection and security of facilities – Adds client relationships – Increases scope, stickiness, and cross-selling opportunities –
Slide 5: Q2 2019 Financial Results
Q2 2019 FINANCIAL RESULTS (1) See appendix for reconciliation of non-GAAP measures Page 5
Slide 6: Organic Growth - Backlog
ORGANIC GROWTH - BACKLOG(1) $4.6 $3.3 $3.4 $3.2 $3.0 $3.0 In In Billions • Total backlog $3,221 million as of June 28, 2019 - Funded backlog $934 million down 15% sequentially and 2% yr/yr - Unfunded backlog $2,287 million flat sequentially and yr/yr - Book-to-bill of 0.6x in Q2 and 1x on a trailing
Slide 7: Organic Growth to Date
ORGANIC GROWTH TO DATE Contract Name Type Duration Value Wins, Recompetes, Extensions LOGCAP V (10-year IDIQ contract duration) (1) Cost-Plus 5.0 yrs $1,383M K-BOSSS Extension Cost-Plus 1.0 yrs $548M Fleet Systems Engineering Team (FSET) Cost-Plus 5.0 yrs $151M Defensive Cyber and IT O&M - Governmen
Slide 8: LOGCAP V – Preparing for Phase-In
LOGCAP V – PREPARING FOR PHASE-IN CENTCOM INDOPACOM • Strengthens incumbency • Provides 10-year platform for growth • Retains work associated with K-BOSSS and client intimacy • Expands Iraq footprint • Vectrus teams preparing for the notice to proceed in both AORs • Key hires made; pre-operational w
Slide 9: 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 10: 2019 Guidance
2019 GUIDANCE 2019 (updated) guidance assumptions: • Operational capital expenditures approximately $10.0 million • Depreciation and amortization approximately $7.1 million • Mandatory debt payments $4.5 million • Interest expense approximately $6.0 million • Estimated tax rate of 22% • Diluted EPS
Slide 11: Revised EPS Guidance Reconciliation
REVISED EPS GUIDANCE RECONCILIATION (1) Impact of incremental D&A, Interest, and Tax (excluding Advantor) (2) Impact of Incremental Revenue Volume partially offset by Incremental Investment in Operations Page 11
Slide 12: Near-Term Priorities and Execution
NEAR-TERM PRIORITIES AND EXECUTION Vectrus Strategy Strategic Execution GROWTH – BUILD ON MOMENTUM • Retain re-compete programs • Portfolio diversification and solutions Enhance Expand Foundation Portfolio • Progress international sales campaign • LOGCAP V – Leverage new geographic position Innovate
Slide 13: Appendix
APPENDIX \VECTRUS
Slide 14: 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 operating income, adjusted operating margin, adjusted net income, adjusted
Slide 15: Reconciliation of Non-GAAP Measures (Cont.)
RECONCILIATION OF NON-GAAP MEASURES (CONT.) Page 15
Slide 16: Reconciliation of Non-GAAP Measures (Cont.)
RECONCILIATION OF NON-GAAP MEASURES (CONT.) Page 16
Slide 17: Reconciliation of Non-GAAP Measures (Cont.)
RECONCILIATION OF NON-GAAP MEASURES (CONT.) Page 17