V2x, Inc. · NYSE:VVX
V2x — Vectrus — Q2 2020 Earnings Presentation
18 slides from V2x's earnings presentation, Aug 11, 2020
Slide 1: Vectrus Second Quarter 2020 Results
VECTRUS SECOND QUARTER 2020 RESULTS CHUCK PROW – PRESIDENT AND CHIEF EXECUTIVE OFFICER SUSAN LYNCH – SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER AUGUST 11, 2020
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: Q2'20 Results
Q2’20 Results Solid Q2’20 revenue of $336 million and adjusted diluted EPS1 of $0.24 Strong Operating Cash Flow of $33.3 million in Q2’20 (+52% Q2’20 Revenue: $336M, growth of 1.3% yr/yr) including $13 million favorable impact from CARES • Act tax deferrals One contract adjustment and one-time c
Slide 4: Q2'20 Contract and Closeout Adjustments
Q2’20 Contract and Closeout Adjustments Issue Contract adjustment to a European program. For a number Contract Adjustment of reasons, both volume and cost, the outcome-based contract is in a loss position. EPS Impact Resolution ($0.36) The company is working with the client to resolve this iss
Slide 5: Notable Contract Wins to Date
Notable Contract Wins to Date IDIQ Seat Position on AFCAP V Contract - $6.4 billion indefinite- $6.4B delivery/indefinite-quantity (IDIQ) contract vehicle Awarded 8-year firm fixed-price contract for base operations support $210M services at Isa Air Base, Bahrain, and its outlying support sites incl
Slide 6: Solid Backlog and Book-to-Bill
Solid Backlog and Book-to-Bill Backlog1 (in billions) Trailing 12-Month Book-to-Bill Ratio $4.1 $4.0 $3.8 1.6 x $ 0.2 1.5 x 1.4 x $3.2 $3.0 $2.7 1.0 x 1.0 x $ 3.0 $ 2.9 $ 2.9 0.8 x $ 2.3 $ 2.2 $ 2.0 $ 1.0 $ 0.9 $ 0.8 $ 0.7 $ 0.9 $ 0.9 2Q'19 3Q'19 4Q'19 1Q'20 Q2'20 Q2'20 2Q'19 3Q'19 4Q'19 1Q'20 Q2'20
Slide 7: Robust Pipeline of Future Growth
Robust Pipeline of Future Growth Total qualified pipeline at Q2’20 of $10.6 Billion Current pipeline represents 20% growth from Q2 2019 Includes $1.1 billion of submitted bids and $9.5 billion of bids planned to be submitted in the next twelve months $ 10.4 $10.6 $ 1.1 $ 9.1 $ 2.4 $ 8.0 $ 7.5 $
Slide 8: Well Positioned for Market Share Growth in DoD O&M and Base Operations
Well Positioned for Market Share Growth in DoD O&M and Base Operations Budget Base O&M ($M) DoD Base Operations & FSRM Budgets ($M) Sequestration 250,000 45,000 Enacted 40,000 35,000 200,000 Enhance Expand Foundation Portfolio 30,000 150,000 25,000 20,000 15,000 100,000 10,000 5,000 50,000 - Add Mor
Slide 9: Q2'20 Financial Results
Q2’20 Financial Results Revenue ($M) EBITDA1 Margin Diluted1 EPS 0.3% $ 0.14 $ 22.3 $ 4.2 4.2% $ 0.74 2.4% $ 0.54 $ 331.6 $ 336.1 2.0% $ 0.24 Q2'19 Q2'20 Q2'19 Q2'20 Q2'19 Q2'20 Contract adjustment and one- Adjusted results1 COVID-19 impact time closeouts Revenue increased by $4.5 million, or Ad
Slide 10: Liquidity
Liquidity First Half $millions 2019 2020 $ yr/yr change % yr/yr change YTD Net Cash Provided by (Used in) Operating Activities $15.5 $34.4 $18.9 122% Cash $70.3 $62.7 ($7.6) (11%) Receivables $237.2 $260.3 $23.1 10% Debt $73.0 $67.5 ($5.5) (8%) 1 Net Debt $2.7 $4.8 $2.1 78% Leverage Ratio (x) 1.17x
Slide 11: Second-Half 2020 Guidance
Second-Half 2020 Guidance 2H 2019 2H 2020 2H 2020 $millions, Unless Otherwise Stated Actual Mid-point Guidance Revenue $725 $707 $697— $717 Adjusted EBITDA Margin (%) 4.5% 4.9 % 4.8 % — 5.0% Adjusted Diluted Earnings Per Share $1.65 $1.77 $1.70 — $1.84 Net Cash Provided by Operating Activities $12.1
Slide 12: Revised Full-Year 2020 Guidance
Revised Full-Year 2020 Guidance (Prior) (Revised) $millions, Unless Otherwise Stated 2019 Actual 2020 Guidance 2020 Guidance Revenue $1,383 $1,475 — $1,525 $1,385 — $1,405 Adjusted EBITDA Margin (%) 4.3% 4.6 % — 4.8 % 4.0 % — 4.1 % Adjusted Diluted Earnings Per Share $3.08 $3.48 — $3.81 $2.68 — $2.8
Slide 13: 2020 Revenue & EPS Guidance Reconciliation
2020 Revenue & EPS Guidance Reconciliation $25 $40 $4 $36 $1,500 $1,395 Prior 2020 revenue COVID-19 1H COVID-19 2H Q2 contract Protest, award Revised 2020 midpoint adjustment and delays and other revenue midpoint one-time closeouts $0.16 $0.13 $0.54 $0.09 $0.15 $0.15 $3.67 $2.75 Prior 2020 diluted C
Slide 14: Appendix
f APPENDIX \VECTRUS TRUE TO YOUR MISSION
Slide 15: Reconciliation Of Non-GAAP Measures
Reconciliation Of Non-GAAP Measures The primary financial performance measures we use to manage our business and monitor results of operations are revenue trends and operating income trends. In addition, we consider adjusted operating income, adjusted operating margin, adjusted net income, adjusted
Slide 16: Reconciliation Of Non-GAAP Measures: Adjusted Net Income and EPS
Reconciliation Of Non-GAAP Measures Adjusted Net Income, Adjusted Diluted Earnings Per Share (Non-GAAP Measures) Three Months Ended LOGCAP V Pre- Three Months Ended July 3, 2020 As Operational Legal July 3, 2020 As ($ in thousands, except per share data) Reported M&A Related Costs Costs Reported - A
Slide 17: Reconciliation Of Non-GAAP Measures: Adjusted Net Income and EPS
Reconciliation Of Non-GAAP Measures Adjusted Net Income, Adjusted Diluted Earnings Per Share (Non-GAAP Measures) Three Months Ended LOGCAP V Pre- Three Months Ended June 28, 2019 As Operational Legal June 28, 2019 As ($ in thousands, except per share data) Reported M&A Related Costs Costs Reported -
Slide 18: Reconciliation Of Non-GAAP Measures: Organic Revenue
Reconciliation Of Non-GAAP Measures Three Months Three Months Three Months Ended July 3, 2020 Ended July 3, 2020 Ended July 3, 2020 As Reported - (In thousands) As Reported Advantor Organic Revenue 336,063 10,287 325,776 Three Months Three Months Three Months Ended June 28, Ended June 28, Ended June