V2x, Inc. · NYSE:VVX
V2x — Vectrus — Q3 2016 Earnings Presentation
14 slides from V2x's earnings presentation, Nov 9, 2016
Slide 1: Vectrus Third Quarter 2016 Results
VECTRUS THIRD QUARTER 2016 RESULTS KEN HUNZEKER CHIEF EXECUTIVE OFFICER AND PRESIDENT MATT KLEIN SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER NOVEMBER 9, 2016
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 2016 Highlights
Q3 2016 HIGHLIGHTS • Third Quarter Results o Revenue of $283.8 million compared to $299.1 million in Q3 2015 o Operating margin of 3.9% compared to 2.8% in Q3 2015 o Adjusted operating margin1 in Q3 2015 was 3.9% o Diluted EPS of $0.60 compared to $1.29 in Q3 2015 o Adjusted diluted earnings per sha
Slide 4: Vectrus Update
VECTRUS UPDATE • Contract Updates o K-BOSSS – Army taking corrective action on the K-BOSSS 2.0 solicitation. o APS-5 Kuwait/Qatar • Cost Reductions • New Business o Approx. $1.5 billion of proposals submitted and pending potential award1, 100% for new business; almost $7 billion in potential new bus
Slide 5: Financial Results
FINANCIAL RESULTS Third Quarter 2016 Q3 Q3 (in millions, except operating margin and diluted EPS) 2016 2015 vs. 2015 Funded Orders $ 76.8 $ 443.8 $ (367.0) Revenue $ 283.8 $ 299.1 $ (15.3) Operating Income $ 11.2 $ 8.5 $ 2.7 Operating Margin 3.9 % 2.8 % 1.1 % Diluted EPS $ 0.60 $ 1.29 $ (0.69) Adjus
Slide 6: Financial Results
FINANCIAL RESULTS Year-to-date September 30, 2016 (in millions, except operating margin and diluted EPS) 2016 2015 vs. 2015 Funded Orders $ 985.7 $ 919.8 $ 65.9 Revenue $ 902.4 $ 869.5 $ 32.9 Operating Income $ 34.3 $ 28.7 $ 5.6 Operating Margin 3.8 % 3.3 % 0.5 % Net Cash Provided by Operating Activ
Slide 7: Debt Profile
DEBT PROFILE ($M) $150 $140.0 2.6 - $140 5.2 6.0 $130 2.7 3.0 3.5 $120 3.0 3.5 3.5 $110 2.0 3.5 8.0 $100 As of Sept. 30, 2016 $93.5 $90 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q2 2015 Q3 2015 Q3 2015 Q4 2015 Q4 2015 Q1 2016 Q2 2016 Q2 2016 Q3 2016 Q3 2016 Q3 2016 Debt Debt Balance Balance Voluntary Payments
Slide 8: Backlog
BACKLOG(1)(2) ($B) $3.0 $2.4 $2.4 $2.5 $2.5 $2.3 $2.1 $2.0 (2) $1.5 $1.5 $1.5 $1.7 $1.3 $1.3 $1.0 $0.5 $0.9 $1.0 $0.7 $1.0 $0.8 $- Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Funded Unfunded • Total Backlog $2,107 Million as of September 30, 2016 o Funded backlog $768 million o Unfunded backlog $1,339 m
Slide 9: Updated 2016 Guidance Summary
UPDATED 2016 GUIDANCE SUMMARY (Updated) (Prior) (Updated) 2016 Mid (Prior) (Updated) 2016 2016 Adjusted Variance (in millions, except operating margin and diluted EPS) 2016 Guidance 2016 Guidance Mid-point Mid-point 20151 to 2015 %Var Revenue $1,180 to $ 1,200 $1,190 to $ 1,200 $ 1,190 $ 1,195 $ 1,1
Slide 10: Vectrus Third Quarter 2016 Results
VECTRUS THIRD QUARTER 2016 RESULTS KEN HUNZEKER CHIEF EXECUTIVE OFFICER AND PRESIDENT MATT KLEIN SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER
Slide 11: Appendix
f APPENDIX
Slide 12: 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, and adjus
Slide 13: Reconciliation of Non-GAAP Measures (Cont.)
RECONCILIATION OF NON-GAAP MEASURES (CONT.) (in thousands, except operating margin and adjusted operating margin) Three Months Ended Nine Months Ended September 30, September 25, September 30, September 25, Adjusted Operating Income (Non-GAAP Measure) 2016 2015 2016 2015 Operating income $ 11,162 $
Slide 14: Reconciliation of Non-GAAP Measures (Cont.)
RECONCILIATION OF NON-GAAP MEASURES (CONT.) Year Ended Year Ended December 31, (In thousands, except for share and per share data) December 31, (In thousands) 2015 Adjusted Net Income and Adjusted Diluted Revenue $ 1,180,684 Earnings Per Share (Non-GAAP Measure) 2015 Net income $ 30,973 Year Ended 1