Slide 1: Third Quarter 2021 Results
VECTRUS THIRD QUARTER 2021 RESULTS CHUCK PROW – PRESIDENT AND CHIEF EXECUTIVE OFFICER SUSAN LYNCH – SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER
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: Q3'21 Results & Recent Highlights
Q3’21 Results & Recent Highlights Revenue +30.4% y/y to $459.4 million, organic growth +13.0% Strong Q3 operating cash flow generation of $39.4 million Operating Results: – Operating income of $12.9 million and adjusted operating income of $18.8 million – Adjusted EBITDA of $20.5 million and m
Slide 4: Support from the Ground Up, True to Your Mission
Support from the Ground Up True to Your Mission The LOGCAP V Task Order team received notice in mid- July to be prepared to build out living space for several thousand Afghan refugees In late July, we received the notice to start construction on what would become known as “Freedom Village” Vec
Slide 5: Navy Campaign Yielding Growth
Navy Campaign Yielding Growth OTA Award Real-Time Spectrum Operations Awarded a prime OTA contract to provide Awarded a contract to develop the Real-Time automation for tracking materials for the Naval Spectrum Operations (RTSO) software for the Air Warfare Center Aircraft Division U.S. Navy fle
Slide 6: Solutions Advancing Convergence – 5G
Solutions Advancing Convergence – 5G Supported the first demonstration of a 5G private network in shared spectrum for DoD – The DoD completed its first 5G project demonstration of a 5G-Enabled Applications Smart Warehouse for Marine Corp Logistics Base, Albany – Vectrus supported the design, devel
Slide 7: Solutions Advancing Convergence - Sensors
Solutions Advancing Convergence - Sensors Sensor integration at 2021 Indianapolis 500 – The Vectrus team placed nine newly designed Integrated Early Warning (IEW) dropbox sensor enclosures on site in order to detect and notify stakeholders of a potential bioweapon release – The newly developed IEW
Slide 8: Expanding the Portfolio
Expanding the Portfolio ($B) New Business Pipeline New Business Makeup $12.0 $10.8 Army $10.0 $8.0 $7.5 Navy $8.7 $6.0 Air Force $6.0 $4.0 Intel & $2.0 Other DoD $1.5 $2.1 $- Federal 12/31/2016 10/1/2021 Civilian Submitted Plan to Submit Pipeline of Opportunities Drive Future Diversification and E
Slide 9: Q3'21 Financial Results
Q3’21 Financial Results Revenue ($M) Operating Margin & Adj. EBITDA Margin1 $459.4 4.8% 4.5% 4.2% $352.4 2.8% Q3'20 Q3'21 Q3'20 Q3'21 Diluted EPS Adj. Diluted EPS1,2 $1.15 $0.88 $0.87 $0.97 Q3'20 Q3'21 Q3'20 Q3'21 1 See appendix for reconciliation of non-GAAP measures. 2 Definition of metric updated
Slide 10: Q3'21 Revenue by Category
Q3’21 Revenue by Category Customer Geographic Region Contract Type Q3'21 Q3'21 Q3'21 5% 3% 9% 8% 11% 23% 14% 30% 57% 66% 74% Army Air Force Navy Other Middle East US Europe Asia Cost-type Fixed Price T&M Q3'20 Q3'20 Q3'20 1 5% 1% 5% 11% 29% 23% 25% 67% 63% 71% Army Air Force Navy Other Middle East U
Slide 11: Solid Backlog and Book-to-Bill
Solid Backlog and Book-to-Bill Backlog1 ($B) Trailing 12-Month Book-to-Bill Ratio $5.1 $5.1 $4.9 $4.9 $ 0.2 $4.5 2.1 x $3.7 1.5 x 1.4 x $ 4.2 $ 3.6 $ 3.7 $ 3.7 1.3 x 1.2 x $ 3.6 $ 2.7 0.8 x $ 1.0 $ 1.3 $ 1.2 $ 1.2 $ 0.9 $ 0.9 2 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q3'21PF2 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q3'
Slide 12: Cash Flow and Liquidity
Cash Flow and Liquidity As of end of third quarter ($M) 2020 2021 $ y/y change % y/y change YTD Net Cash Provided by (Used in) Operating Activities $37.7 $53.4 $15.7 41.6% Cash $63.7 $56.2 ($7.5) (11.8%) Receivables $268.1 $337.1 $68.0 25.7% Debt $66.0 $128.0 $62.0 93.9% 1 Net Debt $2.3 $71.8 $69.5
Slide 13: 2021 Guidance
2021 Guidance 2021 2021 Mid-Point ($M, except per share data) 2020 Actual Guidance 2021 Mid-Point vs 2020 Growth Revenue $1,396 $1,745 — $1,780 $1,762 26.2% Operating Income Margin (%) 3.1% 3.7% — 3.9% 3.8% 70 bps Adjusted EBITDA Margin1 (%) 4.0% 4.8% — 5.0% 4.9% 90 bps Earnings Per Share $3.14 $3.9
Slide 14: Appendix
Gf APPENDIX \VECTRUS TRUE TO YOUR MISSION
Slide 15: Reconciliation Of Non-GAAP Measures
Reconciliation Of Non-GAAP Measures The primary financial performance measures we use to manage our business and monitor results of operations are revenue trends and operating income trends. In addition, we consider adjusted operating income, adjusted operating margin, adjusted net income, adjusted
Slide 16: Reconciliation Of Non-GAAP Measures
Reconciliation Of Non-GAAP Measures Adjusted Net Income, Adjusted Diluted Earnings Per Share (Non-GAAP Measures) Three Months Ended LOGCAP V Pre- Amortization of Three Months Ended October 1, 2021 As M&A, Integration, Operational Legal Acquired Intangible Prior Years' Tax October 1, 2021 ($K, except
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 Ended LOGCAP V Pre- Amortization of Three Months Ended October 2, 2020 As M&A, Integration, Operational Legal Acquired Intangible Prior Years' Tax October 2, 2020 ($K, except
Slide 18: Reconciliation Of Non-GAAP Measures
Reconciliation Of Non-GAAP Measures Adjusted Net Income, Adjusted Diluted Earnings Per Share (Non-GAAP Measures) Nine Months Ended LOGCAP V Pre- Amortization of Nine Months Ended October 1, 2021 As M&A, Integration, Operational Legal Acquired Intangible Prior Years' Tax October 1, 2021 ($K, except p
Slide 19: Reconciliation Of Non-GAAP Measures
Reconciliation Of Non-GAAP Measures Adjusted Net Income, Adjusted Diluted Earnings Per Share (Non-GAAP Measures) Nine Months Ended LOGCAP V Pre- Amortization of Nine Months Ended October 2, 2020 As M&A, Integration, Operational Legal Acquired Intangible Prior Years' Tax October 2, 2020 ($K, except p
Slide 20: Reconciliation Of Non-GAAP Measures
Reconciliation Of Non-GAAP Measures Three Months Ended Three Months Ended Three Months Ended October 1, 2021 October 1, 2021 October 1, 2021 ($K) As Reported Zenetex & HHB Organic Revenue $ 459,408 $ 61,193 $ 398,215 Three Months Ended Three Months Ended Three Months Ended October 2, 2020 As October