V2x, Inc. · NYSE:VVX
V2x — Vectrus — Q4 2017 Earnings Presentation
14 slides from V2x's earnings presentation, Mar 1, 2018
Slide 1: Vectrus Fourth Quarter 2017 Results and Issuance of 2018 Guidance
VECTRUS FOURTH QUARTER 2017 RESULTS AND ISSUANCE OF 2018 GUIDANCE CHUCK PROW PRESIDENT AND CHIEF EXECUTIVE OFFICER MATT KLEIN SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER MARCH 1, 2018
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 STATEM
Slide 3: Q4 & Full-Year 2017 Highlights
Q4 & FULL-YEAR 2017 HIGHLIGHTS Page 3 • Q4 2017 financial results o Revenue of $296 million, up $8 million or 2.6% o Operating margin of 3.5% o Diluted EPS of $3.70; adjusted diluted EPS 1 $0.57 • Full-year 2017 financial results o Revenue of $1,115 million, down $76 million or 6.4% o Operating marg
Slide 4: U.S. Air Force: Securing the Base
U.S. Air Force SECURING THE BASE Page 4 Contract Name Contract Type Contract Value Contract Duration Maxwell BOS Firm-Fixed Price $278M May 2017 Mar 2024 Keesler Firm-Fixed Price $97M Aug 2017 May 2024 AFCAP Firm-Fixed Price $23M Mar 2017 Mar 2021 OPMAS-E Firm-Fixed Price $115M Jun 2017 Jan 2022 Kuw
Slide 5: Shifting Portfolio
27%25% 73%75% 0% 20% 40% 60% 80% 100% 20172016 Firm-Fixed-Price Cost-Plus and Cost Reimbursable 84% 2% 14% 82% 2% 16% Army Navy Air Force $0.7 $0.7 $2.2 $1.7 20172016 Funded Unfunded SHIFTING PORTFOLIO Page 5 Contract Mix ShiftDiversifying Client Mix Increased Backlog ($B) Favorable Prime / Sub Mix
Slide 6: Business Update
BUSINESS UPDATE Page 6 • Capital deployment will focus on organic and inorganic growth opportunities that align with our strategy • New business update o Almost $7 billion in potential new business opportunities identified over the next 12 months o Approx. $1 billion of proposals submitted and pendi
Slide 7: SENTEL Capabilities
SENTEL CAPABILITIES Page 7 SENTEL is a mission-focused business with expertise in specialized disciplines including Engineering and Advanced Technology Solutions, Intelligence Mission Support, and Logistics and Supply Chain Management (est. 1986). Fiscal 2017 revenue was $107 million. • Worldwide se
Slide 8: Differentiate Through Higher-Value Offerings
Page 8 DIFFERENTIATE THROUGH HIGHER-VALUE OFFERINGS ATTAIN 7% EBITDA MARGINS GROW REVENUE TO $2.5B HOW: Transform the way in which Logistics and Facilities services are delivered; become a full lifecycle provider in the converged infrastructure market; create partnerships with leading solutions prov
Slide 9: 2017 Financial Results
2017 FINANCIAL RESULTS Page 9 (1) See appendix for reconciliation of non-GAAP measure. Change in deferred tax liability related to Tax Cuts and Jobs Act. (In millions, except Operating Margin and Diluted Earnings Per Share) Q4 2017 Q4 2016 vs 2016 2017 2016 vs. 2016 Revenue 295.8$ 288.2$ 7.6$ 1,114.
Slide 10: Backlog
BACKLOG(1) Page 10 (2) (1) Total backlog represents firm orders and potential options on multi-year contracts, excluding potential orders under IDIQ contracts. Backlog also excludes contracts awarded to Vectrus but currently in protest with the GAO or the Federal Court of Claims. • Total backlog $2,
Slide 11: 2018 Guidance Summary
2018 GUIDANCE SUMMARY Page 11 2018 guidance assumptions: • Non-recurring transaction related expenses related to acquisition of SENTEL of $3 million • Capital expenditures approximately $9 million • Depreciation and amortization approximately $4.2 million • 2018 mandatory debt payments $4 million •
Slide 12: Appendix
ff APPENDIX \VECTRUS. Page 12
Slide 13: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES Page 13 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 net income and adjusted diluted earnings per share to be useful to
Slide 14: Vectrus Fourth Quarter 2017 Results and Issuance 2018 Guidance
CHUCK PROW PRESIDENT AND CHIEF EXECUTIVE OFFICER MATT KLEIN SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER VECTRUS FOURTH QUARTER 2017 RESULTS AND ISSUANCE 2018 GUIDANCE