Slide 1: Vectrus Third Quarter 2016 Results
VECTRUS THIRD QUARTER 2016 RESULTS KEN HUNZEKER CHIEF EXECUTIVE OFFICER AND PRESIDENT MATT KLEIN SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER NOVEMBER 9, 2016
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 2016 Highlights
Q3 2016 HIGHLIGHTS Page 3 • Third Quarter Results o Revenue of $283.8 million compared to $299.1 million in Q3 2015 o Operating margin of 3.9% compared to 2.8% in Q3 2015 o Adjusted operating margin1 in Q3 2015 was 3.9% o Diluted EPS of $0.60 compared to $1.29 in Q3 2015 o Adjusted diluted earnings
Slide 4: Vectrus Update
VECTRUS UPDATE Page 4 • Contract Updates o K-BOSSS – Army taking corrective action on the K-BOSSS 2.0 solicitation. o APS-5 Kuwait/Qatar • Cost Reductions • New Business o Approx. $1.5 billion of proposals submitted and pending potential award1, 100% for new business; almost $7 billion in potential
Slide 5: Third Quarter 2016 Financial Results
(in millions, except operating margin and diluted EPS) Q3 2016 Q3 2015 vs. 2015 Funded Orders 76.8$ 443.8$ (367.0)$ Revenue 283.8$ 299.1$ (15.3)$ Operating Income 11.2$ 8.5$ 2.7$ Operating Margin 3.9 % 2.8 % 1.1 % Diluted EPS 0.60$ 1.29$ (0.69)$ (in millions, except operating margin and diluted EPS)
Slide 6: Year-to-date September 30, 2016 Financial Results
(in millions, except operating margin and diluted EPS) 2016 2015 vs. 2015 Funded Orders 985.7$ 919.8$ 65.9$ Revenue 902.4$ 869.5$ 32.9$ Operating Income 34.3$ 28.7$ 5.6$ Operating Margin 3.8 % 3.3 % 0.5 % Net Cash Provided by Operating Activities 33.5$ 10.0$ 23.5$ Diluted EPS 1.76$ 2.31$ (0.55)$ (in
Slide 7: Debt Profile
$140.0 $93.5 6.0 3.0 3.0 2.0 8.0 2.6 - 5.2 2.7 3.5 3.5 3.5 3.5 $90 $100 $110 $120 $130 $140 $150 Q3 2014 Debt Balance Q4 2014 Q1 2015 Q2 2015 Q2 2015 Q3 2015 Q3 2015 Q4 2015 Q4 2015 Q1 2016 Q2 2016 Q2 2016 Q3 2016 Q3 2016 Q3 2016 Debt Balance Voluntary Payments Mandatory Payments DEBT PROFILE Page 7
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) Total backlog does not include the Thule Base Maintenance Contract. • Total Backlog $2,107 Million as of September 30, 2016 o Funded b
Slide 9: Updated 2016 Guidance Summary
UPDATED 2016 GUIDANCE SUMMARY Page 9 (1) See Appendix for reconciliation. (2) 2016 diluted EPS is calculated using the estimated weighted average diluted common shares outstanding of 11.2 million for the year ending December 31, 2016. (in millions, except operating margin and diluted EPS) (Prior) 20
Slide 10: Vectrus Third Quarter 2016 Results
KEN HUNZEKER CHIEF EXECUTIVE OFFICER AND PRESIDENT MATT KLEIN SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER VECTRUS THIRD QUARTER 2016 RESULTS
Slide 11: Appendix
ff APPENDIX \VECTRUS.
Slide 12: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES Page 12 The primary financial performance measures we use to manage our business and monitor results of operations are revenue trends and operating income trends. In addition, we consider adjusted operating income, adjusted operating margin, adjusted net income, a
Slide 13: Reconciliation of Non-GAAP Measures (Cont.)
RECONCILIATION OF NON-GAAP MEASURES (CONT.) Page 13 (in thousands, except operating margin and adjusted operating margin) Adjusted Operating Income (Non-GAAP Measure) September 30, 2016 September 25, 2015 September 30, 2016 September 25, 2015 Operating income 11,162$ 8,471$ 34,271$ 28,670$ Operating
Slide 14: Reconciliation of Non-GAAP Measures (Cont.)
Page 14 RECONCILIATION OF NON-GAAP MEASURES (CONT.) (In thousands) 2015 Revenue 1,180,684$ (In thousands) Adjusted Operating Income (Non-GAAP Measure) 2015 Operating income 39,962$ Operating margin 3.4 % Separation costs 1 (pretax) 177 Tax indemnifications 2 3,300 Adjusted operating income 43,439$ A