V2x, Inc. · NYSE:VVX
V2x — Vectrus — Q1 2019 Earnings Presentation
14 slides from V2x's earnings presentation, May 7, 2019
Slide 1: Vectrus First Quarter 2019 Results
VECTRUS FIRST QUARTER 2019 RESULTS CHUCK PROW PRESIDENT AND CHIEF EXECUTIVE OFFICER BILL NOON ACTING CHIEF FINANCIAL OFFICER MAY 7, 2019
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: Q1 2019 Highlights
Q1 2019 HIGHLIGHTS POST Q1’19 • LOGCAP V seat award and CENTCOM and INDOPACOM task orders – Subsequent to award, several protests were filed with the GAO – Positioned for double-digit revenue growth in 2020 Q1’19 • Revenue growth of 2% year-over-year reflects focus on service delivery excellence and
Slide 4: 2019 Financial Results
2019 FINANCIAL RESULTS (1) See appendix for reconciliation of non-GAAP measures Page 4
Slide 5: Organic Growth - Backlog
ORGANIC GROWTH - BACKLOG(1) $4.9 $3.3 $3.3 $3.4 $3.0 $3.0 • Total backlog $3,354 million as of March 29, 2019 - Funded backlog $1,100 million up 60% sequentially and 52% yr/yr - Unfunded backlog $2,254 million down 3% sequentially and 13% yr/yr - Book-to-bill of 2.0x in Q1 and 1.0x on a trailing twe
Slide 6: Organic Growth to Date
ORGANIC GROWTH TO DATE Contract Name Contract Type Contract Value LOGCAP V(1) Cost-Plus $1,383M K-BOSSS Extension Cost-Plus $548M Fleet Systems Engineering Team (FSET) Cost-Plus $151M YTD Awards Defensive Cyber and IT O&M - Cost-Plus $117M $2.2 (1) Government Client Billion AFCAP IV Task Order Fixed
Slide 7: Organic Growth - LOGCAP V
ORGANIC GROWTH - LOGCAP V LOGCAP V, $82 BILLION, 10 YEAR CONTRACT, FOUR COMPETITORS – • LOGCAP V task awards; $1.4 Billion, ~40% of awarded value • Double digit revenue growth expected in 2020 (given normal protest cycles) CENTCOM & INDOPACOM GIVE VECTRUS A PRESENCE OVERVIEW IN ALL 24 TIME ZONES • C
Slide 8: Near-Term Priorities and Execution
NEAR-TERM PRIORITIES AND EXECUTION Vectrus Strategy Strategic Execution GROWTH – BUILD ON MOMENTUM • Retain re-compete programs • Portfolio diversification and solutions Enhance Expand Foundation Portfolio • Progress international sales campaign • LOGCAP V – Leverage new geographic position Innovate
Slide 9: Driving to 5-Year Margin Goal
DRIVING TO 5-YEAR MARGIN GOAL Volume and Contract Mix Enterprise Vectrus Solutions and Client Mix Actions: Actions: Actions: • Growth to Create Scale • Enhance Program • Diversify Client Base Performance • Cost-Plus vs Fixed-Priced • Expand Intelligence • Leverage Supply Chain Footprint • Enhance su
Slide 10: 2019 Guidance
2019 GUIDANCE 2019 guidance assumptions: • Operational capital expenditures approximately $8.5 million • Depreciation and amortization approximately $4.1 million • Mandatory debt payments $4.5 million • Interest expense approximately $4.7 million • Estimated tax rate of 21% • Diluted EPS assumes 11.
Slide 11: Executing Validated Strategy
EXECUTING VALIDATED STRATEGY • In our mission to support our servicemen and women in their critical missions around the world, Vectrus continues to advance all capabilities • Vectrus’ focus on service delivery excellence, innovation, and growth are expanding and diversifying our client base and intr
Slide 12: Appendix
f APPENDIX
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 net income, adjusted diluted earnings per share, EBITDA and EBITDA % to be
Slide 14: Vectrus First Quarter 2019 Results
VECTRUS FIRST QUARTER 2019 RESULTS CHUCK PROW PRESIDENT AND CHIEF EXECUTIVE OFFICER BILL NOON ACTING CHIEF FINANCIAL OFFICER MAY 7, 2019