V2x, Inc. · NYSE:VVX
V2x — Vectrus — Q3 2015 Earnings Presentation
13 slides from V2x's earnings presentation, Nov 5, 2015
Slide 1: Vectrus Third Quarter 2015 Earnings Presentation
VECTRUS THIRD QUARTER 2015 EARNINGS PRESENTATION KEN HUNZEKER CHIEF EXECUTIVE OFFICER AND PRESIDENT MATT KLEIN SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER NOVEMBER 5, 2015
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: Q3 2015 Highlights
Q3 2015 HIGHLIGHTS • Completed first full year as a publicly-traded pure-play government services provider • Core business revenue (1) increased 17%(1) compared to the prior year period • Army Corps of Engineers Information Technology (ACE-IT) contract fully operational • Solid third quarter results
Slide 4: Vectrus Update
VECTRUS UPDATE • Appointed Vice President for IT & Network Communication Services • Contract updates o Recompetes: K-BOSSS, APS-5, Maxwell o Thule Base Maintenance • Orders and pipeline o Strong funded orders of $444 million in the quarter o Seeing task orders emerge from newly won IDIQ contracts o
Slide 5: Q3 2015 Financial Results
Q3 2015 FINANCIAL RESULTS Third Quarter 2015 (In millions, except Operating Margin and Diluted Earnings Per Share) Q3 2015 Q3 2014 vs. 2014 Funded Orders $ 443.8 $ 715.6 $ (271.8) Revenue $ 299.1 $ 300.7 $ (1.6) Operating Income $ 8.5 $ 3.3 $ 5.2 Operating Margin 2.8% 1.1% 170 bps (1) Diluted Earnin
Slide 6: Year to Date 2015 Financial Results
YEAR TO DATE 2015 FINANCIAL RESULTS Year-to-date September 2015 (In millions, except Operating Margin and Diluted Earnings Per Share) 2015 2014 vs. 2014 Funded Orders $ 919.8 $ 1,192.9 $ (273.1) Revenue $ 869.5 $ 917.5 $ (48.0) Operating Income $ 28.7 $ 30.3 $ (1.6) Operating Margin 3.3% 3.3% 0 bps
Slide 7: Backlog
BACKLOG (1) $3.0 $2.6 $2.5 $2.5 $2.4 $2.0 $1.9 $1.8 $1.5 $1.5 $1.0 $0.5 $0.9 $0.7 $0.7 $- Q1 2015 Q2 2015 Q3 2015 Unfunded Funded • As of Q3 2015, total backlog of $2.4 billion o Funded backlog $0.9 billion o Unfunded backlog $1.5 billion (1) Total backlog represents firm orders and potential option
Slide 8: Updated 2015 Guidance Summary
UPDATED 2015 GUIDANCE SUMMARY (updated) (Prior) (Updated) 2015 Mid (Prior) (Updated) 2015 2015 Variance $ millions, except per share amounts 2015 Guidance 2015 Guidance Mid-point Mid-point 2014 ¹ to 2014 % Var Revenue $1,150 to $1,200 $1,165 to $1,185 $ 1,175 $1,175 $1,172 $3 0.3% Adjusted Operating
Slide 9: Vectrus Third Quarter 2015 Earnings Presentation
VECTRUS THIRD QUARTER 2015 EARNINGS PRESENTATION KEN HUNZEKER CHIEF EXECUTIVE OFFICER AND PRESIDENT MATT KLEIN SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER NOVEMBER 5, 2015
Slide 10: Appendix
f APPENDIX
Slide 11: Reconciliation of Non-GAAP Measures (Cont.)
RECONCILIATION OF NON-GAAP MEASURES (CONT.) 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 revenue, adjusted operating income, adjusted operating margin, adju
Slide 12: Reconciliation of Non-GAAP Measures (Cont.)
RECONCILIATION OF NON-GAAP MEASURES (CONT.) (In thousands) Three Months Ended Nine Months Ended September 25, September 26, September 25, September 26, Adjusted Operating Income (Non-GAAP Measure) 2015 2014 2015 2014 Net income $ 14,028 $ 2,114 $ 25,012 $ 19,482 Income tax (benefit) expense (7,140)
Slide 13: Reconciliation of Non-GAAP Measures (Cont.)
RECONCILIATION OF NON-GAAP MEASURES (CONT.) (In thousands) Nine Months Ended September 25, September 26, Free Cash Flow (Non-GAAP Measure) 2015 2014 Net cash provided by operating activities $ 10,044 $ 40,180 Subtract: Capital expenditures (769) (2 049) Free cash flow $ 9,275 $ 38,131 (In millions)