Vse Corporation · NASDAQ:VSEC
Vse — Q4 2023 Earnings Presentation
15 slides from Vse's earnings presentation, Mar 7, 2024
Slide 1: Fourth Quarter and Full Year 2023 Results Conference Call
VSEcorp.com Fourth Quarter and Full Year 2023 Results Conference Call March 7, 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: Strategic Update: Portfolio Transformation to Enhance Growth and Profitability
Strategic Update Portfolio Transformation to Enhance Growth and Profitability Strategic Repositioning the Portfolio Turbine Controls Inc. Acquisition Federal & Defense Segment Divestiture Exploring Strategic Alternatives for Fleet ▪ Announcement: February 2024, VSE ▪ Announcement: February 2024, VSE
Slide 4: Full-Year 2023 Business Update
Full-Year 2023 Business Update Successful Program Execution, Coupled with Market Share Gains and Strategic Acquisitions, Drive Record Financial Performance Aviation Fleet +33% Revenue Growth +21% Revenue Growth • Record sales driven by execution on distribution • Strong revenue growth driven by comm
Slide 5: Financial Summary
Financial Summary 4Q 2023 Revenue Quarter-to-Date Full Year ▪ Aviation +43% and Fleet +26% 4Q'23 4Q’22 vs. vs. ▪ Aviation: Record revenue growth 4Q’22 2023 2022 ($ in millions except EPS) 2022 driven by strong program execution, an expansion of product offerings and Revenue $235.3 $172.0 +37% $860.5
Slide 6: Consolidated Performance Bridge
Consolidated Performance Bridge Revenue Operating Adj. Adj. EBITDA ▪ Aviation segment revenue and profit growth Income EBITDA Margin % supported by strong program execution, 4Q’22 QTD $172.0 $15.9 $21.6 12.5% expansion in distribution product offerings Aviation +46.5 +6.5 +8.1 +0.9 pts and MRO capab
Slide 7: Aviation Segment - 2023 4Q Review
Aviation Segment - 2023 4Q Review 4Q 2023 Y/Y Comparisons: Quarter-to-Date Full Year ▪ Revenue increased 43% to $154M in 4Q’23, 4Q'23 4Q'22 vs. 4Q'22 driven by strong execution on new and 2023 2022 vs. 2022 legacy distribution programs, an increase in ($ in millions) MRO activity, and the addition o
Slide 8: Fleet Segment - 2023 4Q Review
Fleet Segment - 2023 4Q Review Quarter-to-Date Full Year 4Q 2023 Y/Y Comparisons: ▪ Revenue increased 26% to $82M in 4Q’23, ($ in millions) 4Q'23 4Q'22 vs 4Q’22 2023 2022 vs 2022 driven by solid growth in e-commerce fulfillment and commercial fleet sales, Revenue $81.6 $64.8 +26% $316.5 $261.3 +21%
Slide 9: Balance Sheet Optionality
Balance Sheet Optionality 4Q Quarter-to-Date Full Year 4Q’23 4Q’22 2023 2022 ▪ Capital allocation priorities include financing ($ in millions) bolt-on Aviation segment acquisitions and working capital needs for strategic inventory Operating Cash Flow $28 $12 $(22) $8 and investments to support growt
Slide 10: 2024 Priorities To Drive Above-Market Growth and Accelerate Transformation and Strategy
2024 Priorities To Drive Above-Market Growth and Accelerate Transformation and Strategy > New Program Implementation - Pratt & Whitney Europe and Fuel Control Manufacturing Aviation Segment > Desser Integration > Organic Market-Share Gains and Expansion of Distribution Product and MRO Capabilities >
Slide 11: Appendix
VSE CORPORATION P APPENDIX
Slide 12: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations EBITDA and Adjusted EBITDA ($ in thousands, except per share data) Three months ended December 31, For the years ended December 31, 2023 2022 % Change 2023 2022 % Change Net income $ 12,834 $ 7,916 62.1% $ 43.152 $ 26,659 61.9% Interest expense, net 9,278 5,588 66.0%
Slide 13: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Adjusted Net Income and Adjusted EPS (Diluted) Three months ended December 31, For the years ended December 31, ($ in thousands, except per share data) 2023 2022 % Change 2023 2022 % Change Income from continuing operations $ 12,834 $ 7,916 62.1% $ 43,152 $ 26,659 61
Slide 14: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Segment EBITDA and Adjusted EBITDA Three months ended December 31, For the years ended December 31, ($ in thousands) 2023 2022 % Change 2023 2022 % Change Aviation Operating income $ 18,771 $ 12,327 52.3% $ 71,168 $ 36,416 95.4% Depreciation and amortization 5,064 3,
Slide 15: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Balance Sheet Reconciliation of Operating Cash Flow to Free Cash Flows Three Months ended December 31, For the years ended December 31, ($ in thousands) 2023 2022 2023 2022 Net cash (used in) provided by operating activities $27,942 $12,257 $(21,829) $8,051 Capital e