Vse Corporation · NASDAQ:VSEC
Vse — Q4 2024 Earnings Presentation
16 slides from Vse's earnings presentation, Feb 27, 2025
Slide 1: Fourth Quarter and Full Year 2024 Results Conference Call
Fourth Quarter and Full year 2024 Results Conference Call February 27, 2025 vsecorp.com
Slide 2: Forward-Looking Statements and Non-GAAP Financial Measures
Introduction Forward-Looking Statements This presentation contains statements that, to the extent they are not recitations of historical fact, constitute "forward looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E o
Slide 3: 2024 and 2025 YTD Highlights
VSE Corporation 2024 and 2025 YTD Highlights A Year of Portfolio Transformation, Repositioning and Operational Excellence Aviation Fleet Strategic Acquisitions / Integrations New Program Implementations Support Legacy Programs / Scale § Kellstrom Acquisition: § European Distribution: Commercial Busi
Slide 4: Full Year 2024 Business Segment Update
VSE Corporation Full Year 2024 Business Segment Update Aviation Fleet +45% Revenue Growth (7)% Revenue Decline • Record sales driven by solid execution across both • Revenue decline was primarily driven by lower USPS revenue channels (distribution and MRO) and maintenance activity and therefore lowe
Slide 5: VSE 2024 Financial Summary
VSE Corporation VSE 2024 Financial Summary 4Q 2024 Y/Y Comparisons Quarter-to-Date Year-to-Date Revenue 4Q'24 4Q’23 vs. 2024 2023 vs. § Aviation +48% and Fleet (12)% in 4Q’24 ($ in millions except EPS) 4Q’23 2023 § Aviation: Record revenue and Record Revenue $299.0 $235.3 27% $1,080.1 $860.5 26% Adj
Slide 6: Consolidated Performance Bridge
VSE Corporation Consolidated Performance Bridge Operating Adj. Adj. Revenue EBITDA $ in millions Income EBITDA Margin % 4Q’23 QTD $235.3 $25.3 $31.4 13.4% § Aviation segment revenue and profit growth supported Aviation +73.7 +10.4 +13.4 +1.2 pts by strong program execution on distribution programs,
Slide 7: Aviation Segment – 4Q 2024 Review
Aviation Segment Aviation Segment – 4Q 2024 Review 4Q 2024 Y/Y Comparisons: Quarter-to-Date Year-to-Date § Revenue +48% to a record $227M in 4Q’24 vs. the prior-year period, driven by strong 4Q'24 4Q'23 vs. 4Q'23 2024 2023 vs. 2023 execution on new and existing distribution ($ in millions) programs,
Slide 8: Aviation Guidance: Accelerating Revenue and Margins
Aviation Segment Guidance Aviation Guidance: Accelerating Revenue and Margins Revenue Adjusted EBITDA % 15.5-16.5% +35-40% 16.3% HSD/LDD% 10-110 bps ~(90) bps 26%-28% $786M 2024 Full Year M&A VSE Organic 2025 2024 M&A Margin Aviation Margin 2025 Contribution Growth Dilution Expansion/ M&A Synergies
Slide 9: Fleet Segment – 4Q 2024 Review
Fleet Segment Fleet Segment – 4Q 2024 Review Quarter-to-Date Year-to-Date 4Q 2024 Y/Y Comparisons: § Revenue decreased (12)% to $72M in 4Q’24 ($ in millions) 4Q'24 4Q'23 vs 4Q’23 2024 2023 vs 2023 vs. the prior-year period, primarily driven by a decrease in USPS maintenance related Revenue $71.6 $81
Slide 10: Balance Sheet Review
Balance Sheet Balance Sheet Review Quarter-to-Date 4Q’24 3Q’24 2Q’24 1Q’24 ($ in millions) § Generated $52M of free cash flow in 4Q’24 Operating Cash $55 $10 $(18) $(79) Flow § $401M of net debt as of December 31, 2024 Free Cash Flow $52 $4 $(21) $(87) § $194M of revolver availability as of December
Slide 11: 2025 Priorities
2025 Priorities 2025 Priorities Corporate Aviation Financial § "ONE VSE" § Organic Growth Pipeline § Synergy Capture for Acquired § Fleet Segment Divestiture execution supporting above Aviation Businesses to Support Margin market growth in 2025+ Expansion and Transition to One Segment Equity Partner
Slide 12: Appendix
Appendix vsecorp.com
Slide 13: GAAP to Non-GAAP Reconciliations
Appendix GAAP to Non-GAAP Reconciliations EBITDA and Adjusted EBITDA ($ in thousands, except per share data) Three months ended December 31, Twelve months ended December 31, 2024 2023 % Change 2024 2023 % Change Net income $ 15,525 $ 12,834 21.0% $ 36,498 $ 43,152 (15.4)% Interest expense, net 6,943
Slide 14: GAAP to Non-GAAP Reconciliations
Appendix GAAP to Non-GAAP Reconciliations Adjusted Net Income and Adjusted EPS (Diluted) Three months ended December 31, Twelve months ended December 31, ($ in thousands, except per share data) 2024 2023 % Change 2024 2023 % Change Net Income from continuing operations $ 15,525 $ 12,834 21.0% $ 36,4
Slide 15: GAAP to Non-GAAP Reconciliations
Appendix GAAP to Non-GAAP Reconciliations Segment EBITDA and Adjusted EBITDA Three months ended December 31, Twelve months ended December 31, ($ in thousands) 2024 2023 % Change 2024 2023 % Change Aviation Operating income $ 29,173 $ 18,771 55.4% $ 101,387 $ 71,168 42.5% Depreciation and amortizatio
Slide 16: GAAP to Non-GAAP Reconciliations
Appendix GAAP to Non-GAAP Reconciliations Balance Sheet Reconciliation of Operating Cash Flow to Free Cash Flows ($ in thousands) December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024 Net cash provided by (used in) operating activities $55,375 $10,176 $(17,528) $(79,060) Capital expendit