Slide 1: First Quarter 2022 Results Conference Call
First Quarter 2022 Results Conference Call April 2022
Slide 2: Forward-Looking Statements and Non-GAAP Financial Measures
R A I S E T H E B A R 2 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 Exchange A
Slide 3: Executive Summary
R A I S E T H E B A R 3 EXECUTIVE SUMMARY Generated Y/Y Growth in Revenue and Adjusted Net Income • Total revenue +40% y/y, revenue growth in all segments • 73% y/y growth in adjusted net income Aviation Supported by Strong Growth Across Distribution and Repair • Revenue +110% y/y to a record $93.3
Slide 4: VSE Financial Summary
R A I S E T H E B A R Y/Y comparisons: • Revenue +40%, with growth in all business segments driven by strong demand and execution: Aviation +110%, Fleet +22%, Federal & Defense +8% 16.1%, Fleet +9.5%, Federal & Defense +1 • Adjusted EBITDA increased +43% as both organic and inorganic revenue growth
Slide 5: Consolidated Performance Bridge
R A I S E T H E B A R 5 CONSOLIDATED PERFORMANCE BRIDGE Y/Y comparisons: • Aviation segment revenue and profit increased, segment revenue and adjusted EBITDA grew sequentially every quarter since 2Q’20 • Fleet segment revenue growth supported by higher sales in commercial fleet and e-commerce fulfil
Slide 6: Aviation Segment
R A I S E T H E B A R 6 AVIATION SEGMENT ($ in millions) 1Q'22 vs. 1Q'21 Revenue $93.3 +110% Adjusted EBITDA $10.9 +389% Adjusted EBITDA % 11.6% +6.6 pts Operating income (loss) $7.6 NM(1) Revenue by Type: Distribution $70.9 +172% Repair $22.4 +22% (1) Not Meaningful as prior period was a net loss Y
Slide 7: Fleet Segment
R A I S E T H E B A R 7 FLEET SEGMENT ($ in millions) 1Q'22 vs. 1Q'21 Revenue $67.0 +22% Adjusted EBITDA $8.8 +9% Adjusted EBITDA % 13.1% (1.6)pts Operating income (loss) $6.4 +11% Revenue by Type: Other Government $37.4 1% DoD $1.7 (44)% Commercial $27.9 +93% Y/Y comparisons: • Revenue +22% driven
Slide 8: Federal & Defense Segment
R A I S E T H E B A R 8 FEDERAL & DEFENSE SEGMENT ($ in millions) 1Q'22 Vs.1Q'21 Revenue $70.9 +8% Adjusted EBITDA $3.8 (35)% Adjusted EBITDA % 5.3% (3.5)pts Operating income (loss) $(0.7) (114)% Contract Backlog: Bookings $92 +46% Backlog $198 +5% Y/Y comparisons: • Revenue increased +8% driven by
Slide 9: Balance Sheet Optionality
R A I S E T H E B A R • Sufficient liquidity of $100M cash and unused commitment availability under $350M revolving credit facility (due 2024) to support growth initiatives • Net Debt increase in 1Q’22 with $(19.4) free cash flow driven by completion of new Aviation Distribution Awards and timing of
Slide 10: Appendix
YWSE APPENDIX CORPORATION
Slide 11: GAAP to Non-GAAP Reconciliations: Adjusted Net Income and Adjusted EPS
R A I S E T H E B A R 11 GAAP TO NON-GAAP RECONCILIATIONS Adjusted Net Income and Adjusted EPS (Diluted) (1) Calculation uses an estimated statutory tax rate on non-GAAP tax deductible adjustments. (in thousands, except per share data) 1Q2021 2Q2021 3Q2021 4Q2021 1Q2022 Net income (loss) $ 5,111 $ (
Slide 12: GAAP to Non-GAAP Reconciliations: EBITDA and Adjusted EBITDA
R A I S E T H E B A R 12 GAAP TO NON-GAAP RECONCILIATIONS EBITDA and Adjusted EBITDA (in thousands, except per share data) 1Q2021 2Q2021 3Q2021 4Q2021 1Q2022 Net income (loss) $ 5,111 $ (12,366) $ 9,021 $ 6,200 $ 6,244 Interest expense, net 3,030 2,666 2,780 3,593 3,609 Income taxes 1,462 (3,014) 2,
Slide 13: GAAP to Non-GAAP Reconciliations: Segment EBITDA
R A I S E T H E B A R 13 GAAP TO NON-GAAP RECONCILIATIONS Segment EBITDA and Adjusted EBITDA (in thousands) 1Q2021 2Q2021 3Q2021 4Q2021 1Q2022 Aviation Operating income (loss) $ (332) $ (22,272) $ 3,719 $ 4,512 $ 7,622 Depreciation and amortization 2,554 2,554 3,062 2,898 3,035 EBITDA 2,222 (19,718)
Slide 14: GAAP to Non-GAAP Reconciliations: Balance Sheet
R A I S E T H E B A R 14 GAAP TO NON-GAAP RECONCILIATIONS Balance Sheet (1) TTM Adjusted EBITDA is defined as Adjusted EBITDA for the most recent twelve (12) month period Reconciliation of Operating Cash Flow to Free Cash Flows Three Months Ended (in thousands) 31-Mar-21 30-Jun-21 30-Sep-21 31-Dec-2
Slide 15: Investment Highlights
R A I S E T H E B A R 15 INVESTMENT HIGHLIGHTS 3 Distinct End Markets $33M Adj. Net Income ~2,000 Employees $817M Revenue 63+ Years Aftermarket Services Pure-play independent aftermarket service provider with strong organic & inorganic growth opportunities $80M Adj. EBITDA Global provider of afterma
Slide 16: VSE Senior Leadership
R A I S E T H E B A R VSE Senior Leadership 16 VSE EXECUTIVE TEAM John Cuomo President and CEO • 21+ years of aerospace distribution and services market industry experience • Appointed Chief Executive Officer and President of VSE Corporation in 2019 • Previously served as Vice President and General
Slide 17: Aviation Segment Overview
R A I S E T H E B A R Representative Customers 17 AVIATION SEGMENT OVERVIEW MRO Capability Development • New MRO offerings to support range of components and engine accessory repairs including: fuel and hydraulics, engine components and accessories, interiors, auxiliary power units, and avionics Dis
Slide 18: Fleet Segment Overview
R A I S E T H E B A R 18 FLEET SEGMENT OVERVIEW Commercial Customer Diversification • Expansion of commercial customer base to support new medium to large, high-duty cycle fleet customers Wallet Share Expansion • Product expansion to existing just-in-time clients E-commerce • Customized technology p
Slide 19: Federal & Defense Segment Overview
R A I S E T H E B A R 19 FEDERAL & DEFENSE SEGMENT OVERVIEW Market Expansion • Increase military aviation services with products, supply chain and repair services Capability Development • Broaden DoD logistics and supply chain offering to support underserved market demand International Growth • Util
Slide 20: Unique Value Proposition
R A I S E T H E B A R 20 UNIQUE VALUE PROPOSITION Differentiation drives market share gains, long-term sustainable revenue & margin expansion End-User and OEM-Centric Ability to offer bespoke solutions to support critical link between end-users and Original Equipment Manufacturers (“OEMs”) Agility L
Slide 21: Investment Opportunity
R A I S E T H E B A R 21 INVESTMENT OPPORTUNITY Unique pure-play independent aftermarket services company poised for growth Strategic Market Positioning, Strong Growth Strategy, Proven Execution Experience MISSION-CRITICAL AFTERMARKET SERVICES CULTURAL TRANSFORMATION DRIVING GROWTH STRONG CUSTOMER R