V2x, Inc. · NYSE:VVX
V2x — Raymond James & Associates 44th Annual Institutional Investors Conference (March 2023)
22 slides from V2x's conference presentation, Mar 6, 2023
Slide 1: Raymond James & Associates 44th Annual Institutional Investors Conference
Raymond James & Associates 44th Annual Institutional Investors Conference TRUSTED WHEREVER THE MISSION LEADS March 6, 2023 1
Slide 2: Disclaimers
Disclaimers FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act), and Section 27A of the Securities Act of 1933, as amended (the Securities Act), and the Private Securi
Slide 3: V2X, a Leader in Critical Mission Solutions
V2X, a Leader in Critical Mission Solutions Scaled, Global Leader Business Capabilities Leading provider of aerospace solutions, advanced technology & mission Maintains and modifies aircraft, vehicles, training and sustainment capabilities and weapon systems to improve availability and increase ef
Slide 4: Demonstrating Growth and Diversification
Demonstrating Growth and Diversification Top 10 programs have $3.9B $300M ~$12.3B 3.2x ~4.5 years1 of future (+5% y/y) (+8% y/y) Total Backlog3 Revenue Coverage 1 revenue under 2023E 2023E contract (weighted Revenue 1 Adj. EBITDA 1,2 average) >90% >15K ~50 ~93% Contract diversity with Revenue fr
Slide 5: Storied Histories and Shared Vision
Storied Histories and Shared Vision Decades of History and Service Client-Focused Culture Built on Shared Mission 1945 ITT Federal founded Integrity Commitment to upholding the highest ethical 2011 standards Exelis formed out of ITT Defense/Federal Systems 2014 Responsibility Vectrus spun out of Exe
Slide 6: Notable Recent Achievements
Notable Recent Achievements Significant Growth in the Pacific Revenue in the Pacific increased sevenfold in Q4 to $54M as mission requirements continue $11.5 B to expand and grow $7.1 B Expanded its presence in the region with additional work in the Philippines $2.2 B Growth expected to continue
Slide 7: Strategic Framework
Strategic Framework Expand the Base Capture New Markets • Expand Scope on Existing Business • Organic Campaigns • Sell More Services to Current Clients • FMS, International, Core Markets, and Enterprise Captures • Harden Solution Sell Through Model • Inorganic/Capital Allocation • Client Engagement
Slide 8: Organic Growth Strategy
Organic Growth Strategy Capabilities Route to Market Clients Aerospace Solutions SELL TO Maintains and modifies aircraft, vehicles, and Aerospace weapon systems to improve availability and Solutions increase efficiency SELL THROUGH Delivers O, I, & D level support on platforms and systems Advanc
Slide 9: Key Takeaways… Investing with V2X
Key Takeaways… Investing with V2X 1 Well-Aligned with U.S. Federal Budget Priorities in Stable End Markets 2 Long-Standing Relationships with Diverse Client Base 3 Significant Contract Backlog Drives Highly Visible Revenue Profile 4 Scaled Platform Providing Full Life Cycle of Mission Critical Solut
Slide 10: Appendix
Appendix TRUSTED WHEREVER THE MISSION LEADS 10
Slide 11: Q4’22 Highlights
Q4’22 Highlights • Strong Q4’22 results — Revenue of $978M; up 20% y/y on a pro forma basis, driven by strong growth on existing programs and phase-in of recent new business wins 1 1 — Adjusted EBITDA of $79.3M with a margin of 8.1% 1 — Adjusted diluted EPS of $0.92 • Grew revenue in INDOPACOM & Eur
Slide 12: Q4’22 Financial Results
Q4’22 Financial Results Revenue ($M) Adjusted EBITDA1 ($M) Adj. Diluted EPS1 $0.92 $0.92 $79.3 $978.2 $419.4 $15.3 Q4'21 Q4'22 Q4'21 Q4'22 Q4'21 Q4'22 — Q4’22 Adj. EPS impacted ($0.50) due to y/y higher cash interest expense — Q4’22 Adj. EPS impacted ($0.46) due to y/y higher effective tax rate 12 1
Slide 13: FY’22 Financial Results
FY’22 Financial Results Revenue ($M) Adjusted EBITDA1 ($M) Adj. Diluted EPS1 $2,890.9 $4.84 $201.0 $4.60 $1,783.7 $83.1 FY'21 FY'22 FY'21 FY'22 FY'21 FY'22 — FY’22 Adj. EPS impacted ($1.62) due to y/y higher cash interest expense — FY’22 Adj. EPS impacted ($0.55) due to y/y higher effective tax rate
Slide 14: Cash Flow and Liquidity
Cash Flow and Liquidity 2nd Half Operating Cash Flow ($M) Net Debt ($M) • Post merger adjusted operating cash flow1 of $125.0 million, excluding $51.1 million of Merger related payments • Net debt down ~$87 million from Merger close (July 5, 2022) $125.0 $1,308.0 $1,220.7 $73.9 • Revolver undrawn at
Slide 15: Significantly Improved Capital Structure
Significantly Improved Capital Structure New Facility Credit Facility Composition ($M) $1,800 $1,500 ABL Revolver $200 Second Lien $500 SOFR+CSA+3.00% Provides substantial cash interest (based on net leverage)2 $1,200 $185 Term Loan A expense savings of >$8M annually $250 $900 Provides step down in
Slide 16: 2023 Guidance
2023 Guidance 2023 2023 ($M, except per share data) Guidance Mid-Point Revenue $3,800 - $3,900 $3,850 Adjusted EBITDA1 $290 - $310 $300 Adjusted Diluted Earnings Per Share1 $3.80- $4.30 $4.05 Adjusted Net Cash Provided by Operating $115 - $135 $125 Activities1 2023 guidance assumptions include: • De
Slide 17: Reconciliation Of Non-GAAP Measures/Non-GAAP Definitions
Reconciliation Of Non-GAAP Measures/Non-GAAP Definitions This presentation includes certain non-GAAP financial measures, including adjusted operating income, adjusted operating margin, adjusted net income, adjusted diluted earnings per share, EBITDA, adjusted EBITDA, EBITDA margin, adjusted EBITDA m
Slide 18: Reconciliation Of Non-GAAP Measures
Reconciliation Of Non-GAAP Measures Non-GAAP Financial Measures Three Months Ended Three Months Ended M&A, Integration and Amortization of Acquired Amortization of Debt Prior Years' December 31, 2022 ($K, except per share data) December 31, 2022 Related Costs Intangible Assets Issuance Costs Tax Cre
Slide 19: Reconciliation Of Non-GAAP Measures
Reconciliation Of Non-GAAP Measures Non-GAAP Financial Measures Three Months Ended Three Months Ended M&A, Integration and Amortization of Acquired Amortization of Debt Prior Years' December 31, 2021 ($K, except per share data) December 31, 2021 Related Costs Intangible Assets Issuance Costs Tax Cre
Slide 20: Reconciliation Of Non-GAAP Measures
Reconciliation Of Non-GAAP Measures Non-GAAP Financial Measures Twelve Months Ended Twelve Months Ended M&A, Integration and Amortization of Acquired Amortization of Debt Prior Years' December 31, 2022 ($K, except per share data) December 31, 2022 Related Costs Intangible Assets Issuance Costs Tax C
Slide 21: Reconciliation Of Non-GAAP Measures
Reconciliation Of Non-GAAP Measures Non-GAAP Financial Measures Twelve Months Ended Twelve Months Ended M&A, Integration and Amortization of Acquired Amortization of Debt Prior Years' December 31, 2021 ($K, except per share data) December 31, 2021 Related Costs Intangible Assets Issuance Costs Tax C
Slide 22: Trusted Wherever the Mission Leads
TRUSTED WHEREVER THE MISSION LEADS 22
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