V2x, Inc. · NYSE:VVX
V2x — Vectrus — Q2 2021 Earnings Presentation
20 slides from V2x's earnings presentation, Aug 10, 2021
Slide 1: Vectrus Second Quarter 2021 Results
VECTRUS SECOND QUARTER 2021 RESULTS CHUCK PROW – PRESIDENT AND CHIEF EXECUTIVE OFFICER SUSAN LYNCH – SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER AUGUST 10, 2021
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 I
Slide 3: Q2'21 Results & Highlights
Q2’21 Results & Highlights Achieved strong operating performance in Q2’21 Revenue +40% y/y to $471 million, with strong organic growth of 21% Momentum driving strong sequential and year-over-year performance – Operating income of $22.6 million – Adjusted EBITDA of $26.6 million and margin1 of
Slide 4: Strategic Framework Driving Performance
Strategic Framework Driving Performance Market Leadership Growth & Capital Allocation Traditional Market Converged Converged Market Operational Technology Logistics Services Facilities IT Services Strategy Organic Growth Program Talent & Culture Development Enterprise Performance Improvement Page 4
Slide 5: Expanding in the Pacific
Expanding in the Pacific Vectrus’ position in the Pacific region (INDOPACOM) is rapidly expanding and our capabilities in the region are aligned to support the mission requirements of our clients We expect additional growth in INDOPACOM given our position under LOGCAP V to support the Army throughou
Slide 6: Executing Growth through Client Campaigns
Executing Growth through Client Campaigns Delivering on our strategy to diversify our Navy Campaign client portfolio, win new business, and improve operational performance by — Since 2018 have won over half a billion of prime Navy aggressively leveraging technology BOS contracts (Bahrain, NSGB, Ro
Slide 7: Track-Record of Successful M&A Execution and Integration
Track-Record of Successful M&A Execution and Integration Acquisitions of Zenetex / HHB are on track and expanding new business opportunities Continued focus on inorganic growth to diversify our client portfolio, expand the breadth of our capabilities and solutions while strengthening our leaders
Slide 8: Pipeline Expansion Driving Positive Momentum
Pipeline Expansion Driving Positive Momentum ($B) $ 11.1 $11.4 $ 10.4 $ 1.7 $ 9.1 $ 2.0 $ 2.4 $ 8.0 $ 1.4 $ 7.5 $ 1.0 $ 1.5 $ 9.1 $ 9.7 $ 7.7 $ 8.0 $ 7.0 $ 6.0 2016 2017 2018 2019 2020 Q2 2021 Bids Planned to Submit Bids Submitted Steady proposal activity Solid expansion of opportunities across
Slide 9: Q2'21 Financial Results
Q2’21 Financial Results Revenue ($M) Operating Margin & Adj. EBITDA Margin1 5.6% $470.8 4.8% $336.1 2.0% 0.7% Q2'20 Q2'21 Q2'20 Q2'21 Diluted EPS Adj. Diluted EPS1,2 $1.35 $1.52 $0.31 $0.09 Q2'20 Q2'21 Q2'20 Q2'21 1 See appendix for reconciliation of non-GAAP measures. 2 Definition of metric updated
Slide 10: Q2'21 Revenue by Category
Q2’21 Revenue by Category Customer Geographic Region Contract Type Q2'21 Q2'21 Q2'21 3% 9% 6% 8% 12% 24% 13% 31% 55% 66% 73% Army Air Force Navy Other Middle East US Europe Asia Cost-type Fixed Price T&M 1 Q2'20 Q2'20 Q2'20 5% 1% 4% 11% 28% 23% 25% 68% 63% 72% Army Air Force Navy Other Middle East U
Slide 11: Solid Backlog and Book-to-Bill
Solid Backlog and Book-to-Bill Backlog1 ($B) Trailing 12-Month Book-to-Bill Ratio $5.3 $5.1 $4.9 $ 0.4 2.1 x $4.5 $3.8 $3.7 1.5 x 1.5 x 1.4 x $ 4.2 $ 3.6 $ 3.6 1.2 x $ 3.6 $ 2.9 $ 2.7 0.8 x $ 0.9 $ 1.0 $ 0.9 $ 1.3 $ 1.3 $ 0.9 2 Q2'20 Q3'20 Q4'20 Q1 '21 Q2 '21 Q2'21PF2 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q
Slide 12: Cash Flow and Liquidity
Cash Flow and Liquidity First Half ($M) 2020 2021 $ y/y change % y/y change YTD Net Cash Provided by (Used in) Operating Activities $34.4 $14.0 ($20.4) (59.3%) Cash $62.7 $69.8 $7.1 11.3% Receivables $260.3 $353.8 $93.5 35.9% Debt $67.5 $175.0 $107.5 159.3% 1 Net Debt $4.8 $105.2 $100.4 NA Leverage
Slide 13: Increasing 2021 Revenue & EPS Guidance
Increasing 2021 Revenue & EPS Guidance 2021 Mid- 2020 Previous 2021 Updated 2021 2021 Mid- Point vs 2020 ($M, except per share data) Actual Guidance Guidance Point Growth Revenue $1,396 $1,680 — $1,715 $1,745 — $1,780 $1,762 26.2% Operating Income Margin (%) 3.1% 3.7% — 3.9% 3.7% — 3.9% 3.8% 70 bps
Slide 14: Appendix
Gf APPENDIX \VECTRUS TRUE TO YOUR MISSION
Slide 15: Reconciliation Of Non-GAAP Measures
Reconciliation Of Non-GAAP Measures The primary financial performance measures we use to manage our business and monitor results of operations are revenue trends and operating income trends. In addition, we consider adjusted operating income, adjusted operating margin, adjusted net income, adjusted
Slide 16: Reconciliation Of Non-GAAP Measures
Reconciliation Of Non-GAAP Measures Adjusted Net Income, Adjusted Diluted Earnings Per Share (Non-GAAP Measures) Three Months LOGCAP V Pre- Amortization of Three Months Ended Ended July 2, 2021 Operational Legal acquired intangible July 2, 2021 As ($K, except per share data) As Reported M&A Related
Slide 17: Reconciliation Of Non-GAAP Measures
Reconciliation Of Non-GAAP Measures Adjusted Net Income, Adjusted Diluted Earnings Per Share (Non-GAAP Measures) Three Months LOGCAP V Pre- Amortization of Three Months Ended Ended July 3, 2020 Operational Legal acquired intangible July 3, 2020 As ($K, except per share data) As Reported M&A Related
Slide 18: Reconciliation Of Non-GAAP Measures
Reconciliation Of Non-GAAP Measures Adjusted Net Income, Adjusted Diluted Earnings Per Share (Non-GAAP Measures) Six Months Ended LOGCAP V Pre- Amortization of Six Months Ended July 2, 2021 As Operational Legal acquired intangible July 2, 2021 As ($K, except per share data) Reported M&A Related Cost
Slide 19: Reconciliation Of Non-GAAP Measures
Reconciliation Of Non-GAAP Measures Adjusted Net Income, Adjusted Diluted Earnings Per Share (Non-GAAP Measures) Six Months Ended LOGCAP V Pre- Amortization of Six Months Ended July 3, 2020 As Operational Legal acquired intangible July 3, 2020 As ($K, except per share data) Reported M&A Related Cost
Slide 20: Reconciliation Of Non-GAAP Measures
Reconciliation Of Non-GAAP Measures Three Months Ended Three Months Ended Three Months Ended July 2, 2021 July 2, 2021 Zenetex July 2, 2021 ($K) As Reported & HHB As Reported - Organic Revenue $ 470,845 $ 64,397 $ 406,448 Three Months Ended Three Months Ended Three Months Ended July 3, 2020 As July