Slide 1: Vectrus Second Quarter 2016 Results
VECTRUS SECOND QUARTER 2016 RESULTS KEN HUNZEKER CHIEF EXECUTIVE OFFICER AND PRESIDENT MATT KLEIN SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER AUGUST 10, 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: Q2 2016 Highlights
Q2 2016 HIGHLIGHTS Page 3 • Second quarter results o Revenue $307.9 million o Operating margin of 3.7% o Diluted EPS of $0.55 o Year-to-date 2016 net cash provided by operating activities $19.3 million Year-to-date 2016 free cash flow1 $19.0 million • Achieved a Vectrus record of 52 days sales out
Slide 4: Vectrus Update
VECTRUS UPDATE Page 4 • Recent events in Turkey • Re-compete update o K-BOSSS o APS-5 Kuwait/Qatar o Maxwell BOS • IT Networks update • New Business o Approx. $1 billion of proposals submitted and pending potential award1, 100% for new business; almost $7 billion in potential new business opportunit
Slide 5: Financial Results
FINANCIAL RESULTS Page 5 (in millions, except operating margin and diluted EPS) Q2 2016 Q2 2015 vs. 2015 Funded Orders 303.7$ 332.4$ (28.7)$ Revenue 307.9$ 309.5$ (1.6)$ Operating Income 11.3$ 10.8$ 0.5$ Operating Margin 3.7 % 3.5 % 0.2 % Diluted EPS 0.55$ 0.56$ (0.01)$ Second Quarter 2016 (in milli
Slide 6: Backlog
BACKLOG(1)(2) Page 6 (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 $2,332 million as of July 1, 2016 o Funded backlog
Slide 7: Updated 2016 Guidance Summary
UPDATED 2016 GUIDANCE SUMMARY Page 7 (1) See Appendix for reconciliation. (2) 2016 diluted EPS is calculated using the estimated weighted average diluted common shares outstanding of 11.2 million for the year ending December 31, 2016. (3) 2016 free cash flow is calculated as estimated GAAP net cash
Slide 8: Vectrus Second Quarter 2016 Results
KEN HUNZEKER CHIEF EXECUTIVE OFFICER AND PRESIDENT MATT KLEIN SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER VECTRUS SECOND QUARTER 2016 RESULTS
Slide 9: Appendix
ff APPENDIX \VECTRUS.
Slide 10: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES Page 10 The primary financial performance measures we use to manage our business and monitor results of operations are revenue trends and operating income trends. In addition, we consider adjusted operating income, adjusted operating margin, adjusted net income, a
Slide 11: Reconciliation of Non-GAAP Measures (Cont.)
Page 11 RECONCILIATION OF NON-GAAP MEASURES (CONT.) (In thousands) 2015 Revenue 1,180,684$ (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