V2x, Inc. · NYSE:VVX
V2x — Vectrus — Q1 2021 Earnings Presentation
18 slides from V2x's earnings presentation, May 11, 2021
Slide 1: Vectrus First Quarter 2021 Results
VECTRUS FIRST QUARTER 2021 RESULTS CHUCK PROW – PRESIDENT AND CHIEF EXECUTIVE OFFICER SUSAN LYNCH – SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER MAY 11, 2021
Slide 2: Safe Harbor Statement
Safe Harbor Statement Page 2 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 STATE
Slide 3: Q1'21 Results & Highlights
Page 3 1 See appendix for reconciliation of non-GAAP measures. 2 Pro forma Total Backlog includes protested awards. Q1’21 Results & Highlights Solid operating performance in Q1’21 Revenue of $434 million up $82.3 million or 23% y/y – Organic revenue up $13.4 million or 4% y/y Strong earnings r
Slide 4: Market Trends Support Converged Infrastructure Growth
As we transform the Army, we have to transform installations along with it. Gen. James C. McConville, Chief of Staff, Army Market Trends Support Converged Infrastructure Growth Page 4 The Federal technical services sector is transforming, and the addressable market is expanding. Clients are migratin
Slide 5: Converged Market Leadership
Converged Market Leadership Page 5 We leveraged our experience in how installations are operating today with how clients should prepare for the future by providing thought leadership to the marketplace We are also inserting operational technologies that provide real world, immediately practical capa
Slide 6: Vectrus is at the Forefront of 5G and Converged Infrastructure Enablement
Vectrus is at the Forefront of 5G and Converged Infrastructure Enablement Page 6 Naval Base Coronado & Marine Corp Logistics Command using 5G to build Smart Warehouses Private 5G Wireless Network Detect In-Bound and Out-Bound Property Verify Receipt against Advance Ship Notice (ASN) Verify Shipment
Slide 7: Notable Contract Wins to Date
Notable Contract Wins to Date Page 7 IDIQ Awarded GSA Schedule for facilities maintenance, energy management, water conservation & support services, & industrial aerospace coating solutions to all federal clients. GSA 03FAC $33M 4-year contract to support Navy technology modernization including syst
Slide 8: Pipeline Expansion Driving Positive Momentum
Page 8 Pipeline Expansion Driving Positive Momentum Steady proposal activity Solid expansion of opportunities across federal, non-federal, and international client sets Continued portfolio diversification and alignment to higher margin technology enabled solutions $ 6.0 $ 7.0 $ 7.7 $ 8.0 $ 9.1
Slide 9: Q1'21 Financial Results
Page 9 1 See appendix for reconciliation of non-GAAP measures. 2 Definition of metric updated in Q1 2021 to add-back amortization of acquired intangible assets. Q1’21 Financial Results Revenue increased $82.3M y/y, or 23.4% Organic revenue1 growth of $13.4M y/y, or 3.8% Revenue ($M) Adj. EBITDA
Slide 10: Q1'21 Revenue by Category
Page 10 Q1’21 Revenue by Category Customer Geographic Region Contract Type 59%18% 13% 10% Q1'21 Army Air Force Navy Other 70% 21% 4% 5% Q1'20 Army Air Force Navy Other 56%35% 9% Q1'21 Middle East United States Europe 68% 23% 9% Q1'20 Middle East United States Europe 67% 30% 3% Q1'21 Cost-type Fixed
Slide 11: Solid Backlog and Book-to-Bill
Solid Backlog and Book-to-Bill Page 11 Total Q1’21 Pro Forma Backlog of $5.8 Billion Pro forma backlog includes contracts under protest $1.3B Backlog is 2.7x the 2021 revenue mid-point, providing insight into future revenue and cash flow generation Backlog1 ($B) Trailing 12-Month Book-to-Bill Ra
Slide 12: Cash Flow and Liquidity
($M) 2020 2021 $ y/y change % y/y change YTD Net Cash Provided by (Used in) Operating Activities $1.1 ($21.7) ($22.8) N/A Cash2 $146.2 $38.3 ($107.9) (74%) Receivables $263.6 $359.2 $95.6 36% Debt $184.0 $177.0 ($7.0) (4%) Net Debt1 $37.8 $138.7 $100.9 267% Leverage Ratio (x) 2.62x 2.00x N/A (24%) P
Slide 13: Increasing 2021 Guidance Mid-Point
Increasing 2021 Guidance Mid-Point 2021 guidance assumptions include: Capital expenditures ~ $5 million Depreciation and amortization ~ $17 million Amortization of acquired intangible assets ~$11 million Mandatory debt payments $8.6 million Interest expense ~ $8 million Tax rate of ~ 19.
Slide 14: Appendix
vy APPENDIX
Slide 15: Reconciliation Of Non-GAAP Measures
Reconciliation Of Non-GAAP Measures Page 15 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, adjusted net income, a
Slide 16: Reconciliation Of Non-GAAP Measures
Reconciliation Of Non-GAAP Measures Page 16
Slide 17: Reconciliation Of Non-GAAP Measures
Reconciliation Of Non-GAAP Measures Page 17
Slide 18: Reconciliation Of Non-GAAP Measures
Reconciliation Of Non-GAAP Measures Page 18