V2x, Inc. · NYSE:VVX
V2x — Vectrus — Q1 2015 Earnings Presentation
13 slides from V2x's earnings presentation, May 7, 2015
Slide 1: Vectrus First Quarter 2015 Earnings Presentation
VECTRUS FIRST QUARTER 2015 EARNINGS PRESENTATION KEN HUNZEKER CHIEF EXECUTIVE OFFICER AND PRESIDENT MATT KLEIN SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER MAY 7, 2015
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 2015 Highlights
Q1 2015 HIGHLIGHTS • First quarter results support full-year guidance o Revenue $260.9 million o Operating margin 3.6% o Diluted earnings per share (EPS) $0.46; adjusted diluted earnings per share (1) $0.47 o Net cash used in operating activities ($27.2) million; Free cash flow (2) ($27.7) million •
Slide 4: Vectrus Environment
VECTRUS ENVIRONMENT • Update on 2015 contract re-competes o K-BOSSS o APS-5 Kuwait and Qatar o Maxwell Base Operating Services • Robust new business pipeline o Approx. $1 billion of proposals submitted and pending potential award(1), 100% for new business o $3 billion in potential new business oppor
Slide 5: Q1 2015 Financial Results
Q1 2015 FINANCIAL RESULTS First Quarter 2015 (In millions, except Operating Margin and Diluted Earnings Per Share) Q1 2015 Q1 2014 vs. 2014 Funded Orders $ 143.7 $ 140.4 $ 3.3 Revenue $ 260.9 $ 303.9 $ (43.0) Operating Income $ 9.4 $ 17.6 $ (8.2) Operating Margin 3.6% 5.8% (220) bps Net Cash Used in
Slide 6: Backlog
BACKLOG(1) ($B) $3.5 $2.9 $3.0 $3.0 $2.6 $0.4 $2.5 (2) $2.0 $2.1 $1.9 $1.9 $1.5 $1.0 $0.5 $0.8 $0.7 $0.7 $- Year Ending Q1 2015 Backlog with Thule Base December 31, 2014 Maintenance contract (2) Thule Unfunded Funded • Total Backlog(1) as of Q1 2015 of $2.6B (excludes Thule Base Maintenance contract
Slide 7: 2015 Guidance Summary
2015 GUIDANCE SUMMARY $ mi l l i ons , except per s ha re a mounts 2015 Guidance 2014 (1) 2015 Mid $Var % Var Revenue $ 1,100 to $ 1,200 $ 1,172 $ 1,150 $ (22) -1.9% Adjusted Operating Margin(2) 3.2% to 3.6% 4.3% 3.4% (90) BPS (3) Adjusted Diluted EPS $ 1.76 to $ 2.23 $ 2.80 $ 1.99 $ (0.81) -28.9% F
Slide 8: Vectrus Investment Highlights
VECTRUS INVESTMENT HIGHLIGHTS Strong Core Business Enduring Customer Relationships Significant Market Opportunity Large Pipeline of Potential Opportunities and Sound Growth Strategy Solid Financial Position Page 8
Slide 9: Vectrus First Quarter 2015 Earnings Presentation
VECTRUS FIRST QUARTER 2015 EARNINGS PRESENTATION MAY 7, 2015
Slide 10: Appendix
f APPENDIX
Slide 11: 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 12: Reconciliation of Non-GAAP Measures (cont.)
RECONCILIATION OF NON-GAAP MEASURES (CONT.) (In thousands) Three Months Ended March 27, March 29, Adjusted Operating Income (Non-GAAP Measure) 2015 2014 Net income $ 4,965 $ 11,235 Income taxes 2,794 6,343 Interest income (expense) (1,596) 22 Operating income 9,355 17,556 Operating margin 3.6% 5.8%
Slide 13: Reconciliation of Non-GAAP Measures (cont.)
RECONCILIATION OF NON-GAAP MEASURES (CONT.) (In thousands) Three Months Ended March 27, March 29, Free Cash Flow (Non-GAAP Measure) 2015 2014 Net cash used in operating activities $ (27,229) $ (56,451) Subtract: Capital expenditures (465) (507) Free cash flow $ (27,694) $ (56,958) (In millions) Thre