V2x, Inc. · NYSE:VVX
V2x — Vectrus — Q2 2018 Earnings Presentation
12 slides from V2x's earnings presentation, Aug 7, 2018
Slide 1: Vectrus Second Quarter 2018 Results
VECTRUS SECOND QUARTER 2018 RESULTS CHUCK PROW PRESIDENT AND CHIEF EXECUTIVE OFFICER MATT KLEIN SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER AUGUST 7, 2018
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: Business Update
BUSINESS UPDATE • Solid Q2’18 results with revenue increasing 24% year-over-year o Vectrus base business grew 12% year-over-year with the remainder coming from SENTEL o Experienced growth in Middle East, Europe, and U.S. programs • Won over $125 million of new business in Q2’18 o Awarded $84 million
Slide 4: 2018 New Business Wins
2018 NEW BUSINESS WINS Contract Name Contract Type Contract Value Contract Duration U.S. Army Stuttgart Firm-Fixed-Price $43M Jun 2018 May 2023 Kuwait DFAC 3.0 Cost-Plus $108M Feb 2018 Feb 2023 IESS Firm-Fixed-Price $4.5M Jan 2018 Jan 2021 U.S. Air Force Sheppard Air Force Base Firm-Fixed-Price $84M
Slide 5: Q2 Operational Highlights
Q2 OPERATIONAL HIGHLIGHTS • Solid financial results o Revenue $321.1 million o Operating margin 4.0% o Diluted earnings per share $0.81 o Days sales outstanding (DSO): 60 • Backlog increased 17% year-over-year to $3.3 billion • SENTEL integration on schedule and below budget • Total leverage ratio o
Slide 6: Q2 2018 Financial Results
Q2 2018 FINANCIAL RESULTS Second Quarter 2018 Q2 Q2 (In millions, except Operating Margin and Diluted Earnings Per Share) 2018 2017 vs. 2017 Revenue $ 321.1 $ 259.3 $ 61.8 Operating income $ 13.0 $ 9.2 $ 3.8 Operating margin 4.0 % 3.5 % 0.5 % EBITDA $ 13.8 $ 9.6 $ 4.2 EBITDA margin 4.3 % 3.7 % 0.6 %
Slide 7: Backlog
BACKLOG(1) ($B) $3.5 $3.3 $3.3 $3.1 $2.9 $3.0 $2.8 $2.5 2.3(2) $2.0 2.6 $2.3 $2.2 $1.5 $1.9 $1.0 $0.8 1 $0.5 $0.9 $0.7 0.7 $- 2Q17 3Q17 4Q17 1Q18 2Q18 Funded Unfunded • Total backlog $3,277 million as of June 29, 2018 o Funded backlog $951 million o Unfunded backlog $2,326 million (1) Total backlog
Slide 8: 2018 Guidance Summary
2018 GUIDANCE SUMMARY 2018 Var to $ millions, except for operating margin and per share amounts 2018 Guidance Mid-Point 2017 Mid % Var Revenue $ 1,215 to $ 1,285 $ 1,250 $ 1,115 $ 135 12.1 % Operating Margin 3.6 % to 4.0 % 3.8 % 3.7 % 10 bps Net Income $ 30.9 to $ 36.9 $ 33.8 $ 59.5 $ (25.6) (43.1)%
Slide 9: Vectrus Second Quarter 2018 Results
VECTRUS SECOND QUARTER 2018 RESULTS CHUCK PROW PRESIDENT AND CHIEF EXECUTIVE OFFICER MATT KLEIN SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER
Slide 10: 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, EBITDA, EBITDA %, adjusted EBI
Slide 11: Reconciliation of Non-GAAP Measures (Cont.)
RECONCILIATION OF NON-GAAP MEASURES (CONT.) Year Ended (In thousands, except per share data) December 31, Adjusted Net Income and Adjusted Diluted Earnings Per Share (Non-GAAP Measures) 2017 Net income $ 59,497 Revaluation of deferred tax liability 1 (35,139) Adjusted net income $ 24,358 GAAP EPS, d
Slide 12: Reconciliation of Non-GAAP Measures (Cont.)
RECONCILIATION OF NON-GAAP MEASURES (CONT.) (In thousands) Adjusted Operating Income and Adjusted Operating Margin (Non-GAAP Measures) Three months ended Six months ended June 29, June 30, June 29, June 30, 2018 2017 2018 2017 Revenue $ 321,132 $ 259,318 $ 641,649 $ 549,380 Cost of revenue 292,064 2