V2x, Inc. · NYSE:VVX
V2x — Vectrus — Q3 2018 Earnings Presentation
10 slides from V2x's earnings presentation, Nov 6, 2018
Slide 1: Vectrus Third Quarter 2018 Results
VECTRUS THIRD QUARTER 2018 RESULTS CHUCK PROW PRESIDENT AND CHIEF EXECUTIVE OFFICER MATT KLEIN SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER NOVEMBER 6, 2018
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: Business Update
BUSINESS UPDATE • Solid Q3’18 results with revenue increasing 14% year-over-year o Vectrus base business grew 4% year-over-year with the remainder coming from SENTEL o Experienced growth in Europe, Middle East and U.S. programs • Successfully phased-in approximately $130 million of new business • Ne
Slide 4: 2018 New Business Wins
2018 NEW BUSINESS WINS(1) Contract Name Contract Type Contract Value Contract Duration Stuttgart Firm-Fixed-Price $43M Jun 2018 May 2023 Kuwait DFAC 3.0 Cost-Plus $108M Feb 2018 Feb 2023 IESS Firm-Fixed-Price $4.5M Jan 2018 Jan 2021 Sheppard Air Force Base Firm-Fixed-Price $84M Oct 2018 Aug 2025 Al
Slide 5: Q3 Operational Highlights
Q3 OPERATIONAL HIGHLIGHTS • Solid financial results o Revenue $308.1 million o Operating margin 4.5% o Diluted earnings per share $0.86 • YTD net cash provided by operating activities $8.7 million o Significant cash collections expected in Q4 • Total backlog $3.0 billion • SENTEL integration essenti
Slide 6: Q3 2018 Financial Results
Q3 2018 FINANCIAL RESULTS Page 6
Slide 7: Backlog
BACKLOG(1) ($B) $3.5 $3.3 $3.3 $3.1 $3.0 $3.0 $2.9 $2.5 (2) $2.3 $2.2 $2.0 $2.6 $2.3 $2.2 $1.5 $1.0 $1.0 $0.5 $0.8 $0.7 $0.7 $0.8 $0.0 3Q17 4Q17 1Q18 2Q18 3Q18 Funded Unfunded • Total backlog $3,007 million as of September 28, 2018 o Funded backlog $773 million o Unfunded backlog $2,234 million (1)
Slide 8: 2018 Guidance Summary
2018 GUIDANCE SUMMARY 2018 guidance assumptions: • Capital expenditures approximately $9.0 million • Depreciation and amortization expense approximately $4.2 million • 2018 mandatory debt payments $4.0 million • Interest expense approximately $4.7 million • Diluted EPS assumes 11.4 million weighted
Slide 9: Vectrus Third Quarter 2018 Results
VECTRUS THIRD QUARTER 2018 RESULTS CHUCK PROW PRESIDENT AND CHIEF EXECUTIVE OFFICER MATT KLEIN SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER
Slide 10: 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 EBITDA, EBITDA %, adjusted net income and adjusted diluted earnings per share to be