V2x, Inc. · NYSE:VVX
V2x — Vectrus — Q3 2014 Earnings Presentation
15 slides from V2x's earnings presentation, Nov 11, 2014
Slide 1: Vectrus Third Quarter 2014 Earnings Presentation
VECTRUS THIRD QUARTER 2014 EARNINGS PRESENTATION KEN HUNZEKER CHIEF EXECUTIVE OFFICER AND PRESIDENT MATT KLEIN SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER NOVEMBER 11, 2014
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: Vectrus Investment Highlights
VECTRUS INVESTMENT HIGHLIGHTS • > $1B business supporting customers’ mission Strong Core Business • Long-term foundational contracts with $2.2B(1) in backlog(2) • Accomplished management team • More than 50-year legacy supporting customers’ key missions Enduring Customer • Recent expansion into Mari
Slide 4: Third Quarter Highlights
THIRD QUARTER HIGHLIGHTS • Vectrus successfully completed the spin-off from Exelis on September 27, 2014 • New contract wins are expected to add $1.4B to backlog in Q4 o U.S. Army Corps of Engineers Information Technology (ACE-IT) Contract(1) total contract value $517M, 5 years o U.S. Air Forces in
Slide 5: Third Quarter Awards
THIRD QUARTER AWARDS U.S. Army Corps of Engineers (USACE) Information Technology (ACE-IT) Contract (1) Total Contract Value $517M Contract Length: 5 years Scope of Work: Provide information management and information technology support services to more than 37,000 USACE customers. Work will be perfo
Slide 6: Awards Subsequent to Q3
AWARDS SUBSEQUENT TO Q3 U.S. Air Force Thule Base Maintenance Contract (TBMC) (1) Total Contract Value $411M Contract Length: 7 years, through Sept. 2022 Scope of Work: Operations and maintenance services at Thule Air Base to include: civil engineering, airfield and water port operations, fuels mana
Slide 7: Q3 2014 Financial Results
Q3 2014 FINANCIAL RESULTS -24% ORDERS Third Quarter Results Timing of Afghanistan & Middle East orders in 2013 $ millions, except Adj. Operating Margin Q3 2014 vs. 2013 Q3 book-to-bill(2) of 2.4x provides near- Orders (1) $ 703 $ (219) term cash flow visibility -16% ADJUSTED REVENUE (1) Adjusted Rev
Slide 8: YTD 2014 Financial Results
YTD 2014 FINANCIAL RESULTS -25% ORDERS Year-to-Date Results Lower service volume on Afghanistan & Middle East orders $ millions, except Adj. Operating Margin YTD 2014 vs. 2013 YTD Book-to-Bill (2) 1.3x Orders (1) $ 1,168 $ (384) -23% ADJUSTED REVENUE (1) Afghanistan contracts down $ 200M due Adjuste
Slide 9: Backlog
BACKLOG(1) ($B) (2) • Year-to-Date Book-to-Bill(2) 1.3x and Full Year expected to exceed 1.0x • Total Backlog(1) as of September 30, 2014 of $2.2B (excludes ACE-IT(3), Turkey Spain and Thule(4)) • September 30, 2014 backlog, adjusted to include the three recent wins is $3.6B (1) Total backlog repres
Slide 10: Updated 2014 Guidance and Summary
UPDATED 2014 GUIDANCE AND SUMMARY Adjusted Operating Adjusted EPS (4) Adjusted Revenue(1) Free Cash Flow (3) Margin(2) fully diluted $ millions $ millions (1) Guidance $ 1,150 to $ 1,200 4.0% to 4.5% $ 23 to $ 26 $ 2.70 to $ 2.90 SUMMARY • Three recent awards are expected to add ~$1.4B of total back
Slide 11: Vectrus Third Quarter 2014
VECTRUS THIRD QUARTER 2014 EARNINGS PRESENTATION NOVEMBER 11, 2014
Slide 12: Appendix
f APPENDIX
Slide 13: Reconciliation of Non-GAAP Measures (cont.)
RECONCILIATION OF NON-GAAP MEASURES (CONT.) The primary financial performance measures Vectrus uses to manage its business and monitor results of operations are revenue trends and operating income trends. In addition, we consider adjusted revenue, adjusted operating income, adjusted operating margin
Slide 14: Reconciliation of Non-GAAP Measures (cont.)
RECONCILIATION OF NON-GAAP MEASURES (CONT.) Three Months Ended Nine Months Ended $ millions September 30, September 30, Adjusted Operating Income (Non-GAAP Measure) 2014 2013 2014 2013 Net Income $ 2 $ 19 $ 19 $ 68 Income Taxes 1 10 11 38 Operating Income 3 29 30 106 Operating Margin 1.0% 8.3% 3.3%
Slide 15: Reconciliation of Non-GAAP Measures (cont.)
RECONCILIATION OF NON-GAAP MEASURES (CONT.) Three Months Ended Nine Months Ended $ millions, except EPS and outstanding shares September 30, September 30, Adjusted Net Income (non-GAAP Measure) 2014 2013 2014 2013 Net Income $ 2.1 $ 18.6 $ 19.5 $ 68.2 TARS Operating income (net of tax) (0.6) (0.7) (