Vse Corporation · NASDAQ:VSEC
Vse — Q1 2024 Earnings Presentation
15 slides from Vse's earnings presentation, May 9, 2024
Slide 1: First Quarter 2024 Results Conference Call
VSEcorp.com First Quarter 2024 Results Conference Call May 9, 2024
Slide 2: Forward-Looking Statements and Non-GAAP Financial Measures
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 of the Exchang
Slide 3: Q1 2024 Business Update
Q1 2024 Business Update Successful Program Execution, Coupled with Market Share Gains, Drive Record Financial Performance in Aviation Aviation Fleet +43% Revenue Growth +5% Revenue Growth • Record sales driven by execution on distribution • Revenue growth driven by e-commerce fulfillment and program
Slide 4: Strategic Update
Strategic Update Portfolio Transformation to Enhance Growth and Profitability Strategic Repositioning the Portfolio Turbine Controls Inc. Acquisition Aviation Program and Acquisition Update FDS Transition Update ▪ Announcement: April 2024, VSE ▪ The launch of the Pratt & Whitney Canada ▪ Announcemen
Slide 5: Financial Summary
Financial Summary 1Q 2024 Revenue Quarter-to-Date ▪ Aviation +43% and Fleet +5% 1Q'24 1Q’23 vs. ▪ Aviation: Record revenue growth driven by ($ in millions except EPS) 1Q’23 strong distribution program execution, an increase in MRO activity, and Revenue $241.5 $188.6 +28% contributions from Desser Ae
Slide 6: Consolidated Performance Bridge
Consolidated Performance Bridge Revenue Operating Adj. Adj. EBITDA ▪ Aviation segment revenue and profit Income EBITDA Margin % growth supported by strong program 1Q’23 QTD $188.6 $16.8 $23.6 12.5% execution on new and existing distribution Aviation +49.1 +6.6 +8.8 +1.2 pts awards, expansion in MRO
Slide 7: Aviation Segment – 2024 1Q Review
Aviation Segment – 2024 1Q Review 1Q 2024 Y/Y Comparisons: Quarter-to-Date ▪ Revenue increased 43% to $162M in 1Q’24, driven by 1Q'24 1Q'23 vs. 1Q'23 strong execution on new and existing distribution ($ in millions) programs, an increase in MRO activity, and the addition of Desser Aerospace Revenue
Slide 8: Fleet Segment - 2024 1Q Review
Fleet Segment - 2024 1Q Review 1Q 2024 Y/Y Comparisons: Quarter-to-Date ▪ Revenue increased 5% to $79M in 1Q’24, driven by solid growth in e-commerce fulfillment and commercial fleet ($ in millions) 1Q'24 1Q'23 vs 1Q’23 sales, partially offset by lower USPS sales Revenue $79.2 $75.4 +5% ▪ As a perce
Slide 9: Balance Sheet Optionality
Balance Sheet Optionality 1Q Quarter-to-Date ▪ Capital allocation priorities include financing bolt-on Aviation segment 1Q’24 4Q’23 acquisitions and working capital needs for ($ in millions) strategic inventory and investments to Operating Cash Flow $(79) $28 support growth prospects ▪ Pro forma net
Slide 10: 2024 Priorities To Drive Above-Market Growth and Accelerate Transformation and Strategy
2024 Priorities To Drive Above-Market Growth and Accelerate Transformation and Strategy > Pratt & Whitney Europe Program Implementation and Launch of Europe Distribution Center-of-Excellence > Fuel Control Manufacturing Program Implementation > Desser Integration Aviation Segment > Turbine Controls
Slide 11: Appendix
VSE CORPORATION P APPENDIX
Slide 12: GAAP to Non-GAAP Reconciliations: EBITDA and Adjusted EBITDA
GAAP to Non-GAAP Reconciliations EBITDA and Adjusted EBITDA ($ in thousands, except per share data) Three months ended March 31, 2024 2023 % Change Net income $ 12,100 $ 8,120 49.0% Interest expense, net 9,187 5,980 53.6% Income taxes 2,887 2,678 7.8% Amortization of intangible assets 3,381 3,939 (1
Slide 13: GAAP to Non-GAAP Reconciliations: Adjusted Net Income and Adjusted EPS
GAAP to Non-GAAP Reconciliations Adjusted Net Income and Adjusted EPS (Diluted) Three months ended March 31, ($ in thousands, except per share data) 2024 2023 % Change Income from continuing operations $ 12,100 $ 8,120 49.0% Adjustments: Acquisition, integration and restructuring costs 2,348 1,475 5
Slide 14: GAAP to Non-GAAP Reconciliations: Segment EBITDA
GAAP to Non-GAAP Reconciliations Segment EBITDA and Adjusted EBITDA Three months ended March 31, ($ in thousands) 2024 2023 % Change Aviation Operating income $ 22,310 $ 15,664 42.4% Depreciation and amortization 4,933 3,254 51.6% EBITDA 27,243 18,918 44.0% Acquisition, integration and restructuring
Slide 15: GAAP to Non-GAAP Reconciliations: Balance Sheet
GAAP to Non-GAAP Reconciliations Balance Sheet Reconciliation of Operating Cash Flow to Free Cash Flows ($ in thousands) March 31, 2024 December 31, 2023 Net cash (used in) provided by operating activities $(79,060) $27,942 Capital expenditures (7,729) (7,871) Free Cash Flow $(86,789) $20,071 Reconc