V2x, Inc. · NYSE:VVX
V2x — Vectrus — Q1 2020 Earnings Presentation
16 slides from V2x's earnings presentation, May 12, 2020
Slide 1: Vectrus First Quarter 2020 Results
VECTRUS FIRST QUARTER 2020 RESULTS CHUCK PROW PRESIDENT AND CHIEF EXECUTIVE OFFICER SUSAN LYNCH SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER May 12, 2020
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: Strong Q1'20 Results
STRONG Q1’20 RESULTS • Revenue +8% Y/Y; EPS of $0.74; Adjusted EPS1 of $0.75 – Army revenue +9%, Air Force revenue +8%, Navy revenue +1% – Adj. EBITDA1 margin expanded 30 bps Y/Y – Minimal impact from COVID-19 (~$2 million revenue and $0.02 EPS) • Army footprint expanding through LOGCAP V transition
Slide 4: COVID-19: Meeting the Challenge of the Moment
COVID-19: MEETING THE CHALLENGE OF THE MOMENT • We continue to operate very effectively under COVID-19 and thank our employees for their unwavering commitment to our clients’ mission and to our country’s national security • Successfully implemented measures to ensure employee health and safety; ongo
Slide 5: Q1'20 Results
Q1’20 RESULTS Revenue ($M) Op. Income, Adj. EBITDA1($M) $351.7 $14.6 $325.9 $12.5 $12.8 $10.4 1 Revenue Operating Income Adjusted EBITDA Q1'19 Q1'20 Q1'19 Q1'20 Margins EPS 4.2% $0.74 $0.75 3.9% $0.69 $0.62 3.5% 3.2% Operating Margin Adj. EBITDA Mgn 1 Diluted EPS Adj. Diluted EPS1 Q1'19 Q1'20 Q1'19
Slide 6: Cash and Leverage
CASH AND LEVERAGE Q1 2020 Q1 2019 vs. 2019 % VAR Year-to-date net cash provided by (used in) operating activities$ 1.1 $ (6.4) $ 7.5 117 % Cash$ 146.2 $ 48.2 $ 98.0 203 % Receivables$ 263.6 $ 244.1 $ 19.5 8 % Debt$ 184.0 $ 74.0 $ 110.0 149 % Net Debt 1 $ 37.8 $ 25.8 $ 12.0 46 % Leverage Ratio 2.62x
Slide 7: Total Backlog
TOTAL BACKLOG1 $5.0 $4.0 $3.0 $3.0 $2.3 $2.0 $2.3 $2.2 $ IN BILLIONS $2.0 $1.0 $1.1 $1.1 $0.9 $0.8 $0.7 $0.0 2 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Funded Unfunded • Total Q1’20 backlog $4.1 billion - Funded backlog $1.1 billion - Unfunded backlog $3.0 billion - Book-to-bill of 1.5x on a trailing twelve mo
Slide 8: 2020 Guidance
2020 GUIDANCE 2019 Var to $ millions, except for EBITDA margins and per share amounts 2020 Guidance 2020 Mid 2019 Mid %Var Revenue $ 1,475 to $ 1,525 $ 1,500 $ 1,383 $ 117 8.5 % EBITDA Margin 4.6 % to 4.8 % 4.7 % 4.1 % 60bps Adjusted EBITDA Margin 1 4.6 % to 4.8 % 4.7 % 4.3 % 40bps Diluted Earnings
Slide 9: LOGCAP V – Phasing In at DoD's Direction
LOGCAP V – PHASING IN AT DOD’S DIRECTION CENTCOM INDOPACOM • Strengthens Middle East incumbency • Provides 10-year platform for growth • Retains work associated with K-BOSSS and client intimacy • Expands Iraq footprint • Expands geographical footprint • Notice to Proceed – transition and Set-the-The
Slide 10: Robust New Business Pipeline
ROBUST NEW BUSINESS PIPELINE $12.0 $10.0 $1.4 $2.4 $8.0 $1.4 $1.0 $1.5 $1.0 $6.0 $ IN BILLIONS $8.8 $4.0 $7.7 $8.0 $7.0 $6.0 $6.0 $2.0 $0.0 Q4'15 Q4'16 Q4'17 Q4'18 Q4'19 Q1'20 Bids Plan to Submit Bids Submitted Page 10
Slide 11: Growth – Build on Momentum
GROWTH – BUILD ON MOMENTUM Vectrus Strategy Strategic Execution Progress Toward 5-Year Objectives • Significantly enhanced portfolio of clients and mix • Successfully integrated 2 acquisitions • Improved operating technology capability Enhance Expand Foundation Portfolio • Refined ability to grow •
Slide 12: Appendix
APPENDIX \VECTRUS
Slide 13: 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 14: Reconciliation of Non-GAAP Measures (Cont.)
RECONCILIATION OF NON-GAAP MEASURES (CONT.) Adjusted Net Income, Adjusted Diluted Earnings Per Share (Non-GAAP Measures) Three Months Ended LOGCAP V Pre- Three Months Ended April 3, 2020 As Operational Legal April 3, 2020 As 1 2 (In thousands, except per share data) Reported M&A Related Costs Costs
Slide 15: Reconciliation of Non-GAAP Measures (Cont.)
RECONCILIATION OF NON-GAAP MEASURES (CONT.) Adjusted Net Income, Adjusted Diluted Earnings Per Share (Non-GAAP Measures) Three Months Ended LOGCAP V Pre- Three Months Ended March 29, 2019 As Operational Legal March 28, 2019 As (In thousands, except per share data) Reported M&A Related Costs1 Costs2
Slide 16: Reconciliation of Non-GAAP Measures (Cont.)
RECONCILIATION OF NON-GAAP MEASURES (CONT.) Three Months Ended Three Months Ended April 3, 2020 As Three Months Ended April 3, 2020 As (In thousands) Reported April 3, 2020 Advantor Reported - Organic Revenue $ 351,734 $ 11,186 $ 340,548 Three Months Ended Three Months Ended Three Months Ended March