V2x, Inc. · NYSE:VVX
V2x — Vectrus — Q1 2018 Earnings Presentation
13 slides from V2x's earnings presentation, May 8, 2018
Slide 1: Vectrus First Quarter 2018 Results
VECTRUS FIRST QUARTER 2018 RESULTS CHUCK PROW PRESIDENT AND CHIEF EXECUTIVE OFFICER MATT KLEIN SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER MAY 8, 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 Q1 results driven by operational improvements and enhanced sales efforts o Q1 results combined with contract wins and extensions increase revenue visibility o Modestly increasing 2018 guidance for revenue, net income and diluted earnings per share • Won over $120 million of n
Slide 4: Strategic Progress
STRATEGIC PROGRESS How We Are Doing It What We Plan To Do Enhance Foundation Executing continuous sales cycle to increase organic growth Strengthened methods and approaches to grow in and around our base Vectrus will be an innovator and (Keesler, AFCAP, DFAC 3.0, RSS II wins) leader in the convergen
Slide 5: Five Year Plan, Targeted Outcomes
FIVE YEAR PLAN, TARGETED OUTCOMES Vectrus will be an innovator and leader in the convergence of our clients' physical and digital infrastructure and supply chains, targeting $2.5 billion in revenue and 7% EBITDA margins by 2023 HOW: Transform the way in which ACTION: Transform Vectrus into a Logisti
Slide 6: Q1 Financial Highlights
Q1 FINANCIAL HIGHLIGHTS • ASC 606, revenue recognition accounting standard adopted January 1, 2018 • Solid financial results o Revenue $320.5 million o Operating margin 2.7%; diluted earnings per share $0.54 1 o Adjusted operating margin 3.7% under former ASC 605 revenue guidance 1 o Adjusted operat
Slide 7: Q1 2018 Financial Results
Q1 2018 FINANCIAL RESULTS First Quarter 2018 Q1 Q1 (In millions, except Operating Margin and Diluted Earnings Per Share) 2018 2017 vs. 2017 Revenue $ 320.5 $ 290.0 $ 30.5 Operating income $ 8.7 $ 11.7 $ (3.0) Operating margin 2.7 % 4.0 % (1.3)% Net income $ 6.1 $ 6.7 $ (0.6) Diluted earnings per sha
Slide 8: Backlog
BACKLOG(1) ($B) $3.5 $3.1 $3.3 $3.0 $2.9 $2.8 $2.9 $2.5 (2) 2.6 $2.0 $2.3 $2.0 $1.9 $2.2 $1.5 $1.0 $0.9 $0.8 $0.5 $0.9 $0.7 0.7 $- 1Q17 2Q17 3Q17 4Q17 1Q18 Funded Unfunded • Total backlog $3,306 million as of March 30, 2018 o Funded backlog $723 million o Unfunded backlog $2,583 million • SENTEL con
Slide 9: 2018 Guidance Summary
2018 GUIDANCE SUMMARY (Prior) (Updated) (Prior) (Updated) 2018 2018 Var to $ millions, except for operating margin and per share amounts 2018 Guidance 2018 Guidance Mid-Point Mid-Point 2017 Mid %Var Revenue $ 1,205 to $ 1,275 $ 1,215 to $ 1,285 $ 1,240 $ 1,250 $ 1,115 $ 135 12.1 % Operating Margin (
Slide 10: Vectrus First Quarter 2018 Results
VECTRUS FIRST QUARTER 2018 RESULTS CHUCK PROW PRESIDENT AND CHIEF EXECUTIVE OFFICER MATT KLEIN SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER
Slide 11: 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 ASC 605 results, adjusted operating income, adjusted operating margin, EBITDA, EBITD
Slide 12: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES Year Ended (In thousands, except per share data) December 31, Adjusted Net Income and Adjusted Diluted Earnings Per Share (Non-GAAP Measure) 2017 Net income $ 59,497 Revaluation of deferred tax liability 1 (35,139) Adjusted net income $ 24,358 GAAP EPS, diluted $5
Slide 13: Reconciliation of Non-GAAP Measures (Cont.)
RECONCILIATION OF NON-GAAP MEASURES (CONT.) Impact of ASC606 vs. ASC605 In thousands, except for % and diluted EPS Three Months Ended March 30, 2018 EBITDA and adjusted EBITDA (Non-GAAP Measure) ASC 606 ASC 605 Change ASC 606 vs. ASC 605 (Non-GAAP Measure) ASC 606 ASC 605 Change In thousands, except