COLORADO SPRINGS, Colo.,
Nov. 8, 2016 /PRNewswire/
-- Vectrus, Inc. (NYSE:VEC) announced third quarter 2016
results, which included revenue of $283.8
million, operating income of $11.2
million and diluted earnings per share of $0.60. As of Sept. 30,
2016, year-to-date net cash provided by operating activities
was $33.5 million, an improvement of
$23.5 million year-over-year. Funded
orders were $76.8 million in the
third quarter 2016.
"We are pleased with our financial performance in the quarter,"
said Ken Hunzeker, chief executive officer and president of
Vectrus. "Our business continues to generate consistent cash flow
and we have capitalized on our strong cash collections in order to
make additional voluntary debt payments during the quarter."
K-BOSSS and APS-5 Contract Update
On Sept. 29, 2016, Vectrus
announced that the company was not selected as the Army's provider
for the Kuwait-Base Operations and Security Support Services
contract re-compete (K-BOSSS 2.0). Subsequent to the end of the
quarter, on Oct. 11, 2016, Vectrus
submitted a post-award protest to the Government Accountability
Office on the K-BOSSS 2.0 solicitation.
On Nov. 7, 2016, Vectrus was
notified by the Department of the Army that it was taking
corrective action to resolve the K-BOSSS 2.0 protest. The Army
stated in its notification, "As part of the corrective action, the
Army will amend the solicitation to clarify its requirement,
request revised proposals from the existing offerors based on the
amended solicitation, conduct discussions if necessary, and issue a
new award decision."
Through Sept. 30, 2016, K-BOSSS
contributed $323 million, or
approximately 36 percent of Vectrus revenue. Additionally, the
K-BOSSS contract currently runs through Dec.
28, 2016, with an option to extend through March 28, 2017.
On Sept. 1, 2016, Vectrus
announced that the company was not selected for the renewal of the
Army Pre-Positioned Stocks-5 Kuwait contract, which was combined
with the APS-5 Qatar contract for the award. Vectrus filed a
post-award protest with the GAO on the APS-5 Kuwait/Qatar
solicitation on Sept. 13, 2016. The
GAO has up to 100 days to issue a written decision. Accordingly,
the company expects that decision no later than Dec. 22, 2016.
Through Sept. 30, 2016, the APS-5
Kuwait contract contributed $134
million, or approximately 15 percent of Vectrus revenue. On
Oct. 26, 2016, Vectrus received a
contract modification worth $46
million to extend the performance of the APS-5 Kuwait
contract through Feb. 28, 2017.
Workforce Reduction and Realignment of Effort
On Oct. 18, 2016, Vectrus
announced a corporate reduction in force and realignment of effort.
The reduction resulted in the elimination of 64 positions at
Vectrus headquarters. In addition, the company reported an
additional 18 open or unfilled positions that had been eliminated
throughout the year. The corporate realignment, building on
organizational actions initiated earlier in the year, places
critical business functions closer to customers and programs, to
improve the ability to secure future contract awards.
The financial implications of these actions include an
approximate $2 million severance
expense in the fourth quarter of 2016, and an anticipated annual
savings of $8 million related to the
actions. The company expects to realize additional savings in 2017
through reductions in non-labor discretionary expenditures.
Balance Sheet and Liquidity
During the quarter, Vectrus paid $11.5
million in principal on its term loan, of which $8 million was voluntary. As of Sept. 30, 2016, Vectrus had a ratio of total
consolidated indebtedness to consolidated EBITDA (total leverage
ratio) of 1.76 to 1.00 and was in compliance with all covenants
related to its senior secured credit facilities. Total debt now
stands at $93.5 million.
"We have aggressively focused on reducing our leverage profile
through both mandatory and voluntary debt payments," said Hunzeker.
"We reached the upper end of our previously communicated 2016
voluntary debt payment range of $8 to $10
million ahead of schedule."
In April 2016, Vectrus amended its
credit agreement, which resulted in more favorable covenants. Among
other things, the amendment modified the total leverage ratio
covenant, which requires the total leverage ratio during any
consecutive four fiscal quarter periods from Jan. 1, 2017, through Dec.
2017, not be greater than 3.0 to 1 during any such period.
The previous agreement required the total leverage ratio not to
exceed 2.75 to 1 during any such period.
"Our business generates consistent cash flow and we remain
confident in our ability to meet our financial obligations," said
Hunzeker.
Pipeline and New Business
"We have approximately $1.5
billion of proposals submitted and pending potential award,
and plan to submit bids on about $7
billion of new opportunities over the next twelve months and
we expect to hear award decisions on roughly $1 billion of bids in the next six to nine
months," said Hunzeker. "The actions taken earlier this year in
conjunction with the efforts announced in October, complete our
strategic realignment and positions us to improve our probability
of success on new pursuits."
Additionally, after protracted protest litigation, the Danish
subsidiary owned by Vectrus is currently in discussions with the
Air Force regarding commencement of the Thule Base Maintenance
Contract next year. "We are looking forward to providing the Air
Force with an affordable and robust solution while adding this new
work to our backlog and recognizing the associated revenue," said
Hunzeker.
Third Quarter 2016 Results
- Revenue of $283.8 million
- Operating income of $11.2
million
- Operating margin of 3.9 percent
- Diluted earnings per share of $0.60
Third quarter 2016 revenue of $283.8
million decreased $15.3
million, or 5.1 percent, compared to the third quarter 2015.
This change was primarily driven by a $25.8
million decrease in revenue from our Afghanistan programs and a $12.4 million decrease from U.S. and European
programs. This was partially offset by an increase in our Middle
East programs of $22.9 million for
the third quarter 2016, as compared to the same period in 2015.
Operating income was $11.2
million, or 3.9 percent operating margin, in the third
quarter 2016, compared to $8.5
million, or 2.8 percent operating margin, in the third
quarter 2015. In the third quarter 2015, adjusted operating
income1 was $11.8 million,
or 3.9 percent adjusted operating margin1. There were no
adjustments to operating income in 2016.
Third quarter 2016 diluted EPS were $0.60 compared to $1.29 in 2015, and adjusted diluted
EPS1 were $0.65 in the
third quarter 2015. There were no adjustments to diluted earnings
per share in 2016.
Year-to-date Sept. 30, 2016, net
cash provided by operating activities was $33.5 million compared to $10.0 million during the same period in 2015.
"Year-to-date net cash provided by operating activities improved
by $23.5 million, driven by strong
cash collections in 2016," said Matt Klein, chief financial officer
at Vectrus. "We continue to see strong collections, achieving 55
days sales outstanding during the quarter. We do not expect DSO to
remain at 55 days. As we grow our business and start up new
contracts, we anticipate DSO in the low 60s."
As of Sept. 30, 2016, Vectrus
total backlog was $2.1 billion and
funded backlog was $768 million.
During the first quarter 2016 conference call, the company
announced that it would no longer report Afghanistan-related revenue and operating
income separately from non-Afghanistan-related revenue or
non-Afghanistan-related operating
income on future conference calls as it has become a less material
portion of the business unless required to explain overall company
variances in the reported period.
2016 Guidance
The lower end of the revenue range increases to $1,190 million from $1,180
million. The upper end of operating margin decreases to 3.8
percent from 3.9 percent primarily due to severance expense
expected in the fourth quarter. As a result, the diluted EPS range
changes to $2.12 to $2.28 per share,
from $2.07 to $2.32 per share.
"We expect net cash provided by operating activities to remain
unchanged from prior guidance and down slightly from the third
quarter results due to planned cash payments for taxes and other
contract liabilities not incurred in prior quarters," said
Klein.
(in millions,
except operating margin and diluted EPS)
|
(Prior)
2016
Guidance
|
|
(Updated)
2016
Guidance
|
Revenue
|
$1,180
|
to
|
$1,200
|
|
$1,190
|
to
|
$1,200
|
Operating
Margin
|
3.60%
|
to
|
3.90%
|
|
3.60%
|
to
|
3.80%
|
Diluted EPS
2
|
$2.07
|
to
|
$2.32
|
|
$2.12
|
to
|
$2.28
|
Net cash provided by
operating
activities
|
$30
|
to
|
$34
|
|
$30
|
to
|
$34
|
The Company notes that forward-looking statements of future
performance made in this release are based upon current
expectations and are subject to factors that could cause actual
results to differ materially from those suggested here, including
those factors set forth in the Safe Harbor Statement below.
Investor Call
Management representatives will conduct an investor briefing and
conference call at 8 a.m. Eastern
time on Wednesday, Nov. 9,
2016.
U.S.-based participants may dial in to the conference call at
877-419-6591, while international participants may dial
719-325-4748. Pass code for both is 8483543. For all other
listeners, a live webcast of the briefing and conference call will
be available on the Vectrus Investor Relations website at
http://investors.vectrus.com.
A replay of the briefing will be posted on the Vectrus website
shortly after completion of the call, and will remain available for
one year. A telephonic replay will also be available through
Nov. 23, 2016, at 844-512-2921
(domestic) or 412-317-6671 (international) with pass code
8483543.
Footnotes:
1 See "Key Performance Indicators and Non-GAAP
Financial Measures" (below).
2 2016 EPS guidance is calculated using the estimated
weighted average diluted common shares outstanding of 11.2 million
for the year ending December 31,
2016.
About Vectrus
Vectrus is a leading, global government services company with a
history in the services market that dates back more than 70 years.
The company provides facility and logistics services, and
information technology and network communication services to
U.S. government customers around the world. Vectrus is
differentiated by operational excellence, superior program
performance, a history of long-term customer relationships, and a
strong commitment to their mission success. Vectrus is
headquartered in Colorado Springs,
Colo., and includes about 6,000 employees spanning 132
locations in 18 countries. In 2015, Vectrus generated sales of
$1.2 billion. For more information,
visit our website at http://www.vectrus.com or connect with us on
Facebook, Twitter, LinkedIn, and YouTube.
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 include, but are not limited to,
statements about our revenue, operating margin, EPS and net cash
provided by operating activities guidance for 2016, debt payments,
expense savings, contract opportunities, bids and awards,
collections, business strategy, outlook, objectives, plans,
intentions or goals, and any discussion of future operating or
financial performance. Whenever used, words such as "may," "are
considering," "will," "likely," "anticipate," "estimate," "expect,"
"project," "intend," "plan," "believe," "target," "could,"
"potential," "are considering," "continue," or similar terminology
are forward-looking statements. These statements are based on the
beliefs and assumptions of our management based on information
currently available to management. Forward-looking statements are
not guarantees of future performance and are subject to risks and
uncertainties that could cause actual results to differ materially
from the results contemplated by the forward-looking statements,
our historical experience and our present expectations or
projections. These risks and uncertainties include, but are not
limited to: risks and uncertainties relating to the spin-off from
our former parent, including whether the spin-off and the related
transactions will result in any tax liability; economic, political
and social conditions in the countries in which we conduct our
businesses; changes in U.S. government military operations,
including its operations in Afghanistan; competition in our industry;
changes in, or delays in the completion of, U.S. or international
government budgets; government regulations and compliance
therewith, including changes to the Department of Defense
procurement process; changes in technology; protests of new awards;
our ability to submit proposals for and/or win potential
opportunities in our pipeline; intellectual property matters;
governmental investigations, reviews, audits and cost adjustments;
contingencies related to actual or alleged environmental
contamination, claims and concerns; our success in expanding our
geographic footprint or broadening our customer base, markets and
capabilities; our ability to realize the full amounts reflected in
our backlog and to retain and renew our existing contracts; our
maintaining our good relationship with the U.S. government;
impairment of goodwill; our performance of our contracts and our
ability to control costs; our level of indebtedness; our compliance
with the terms of our credit agreement; subcontractor and employee
performance and conduct; our teaming arrangements with other
contractors; economic and capital markets conditions; any future
acquisitions, investments or joint ventures; our ability to retain
and recruit qualified personnel; our maintenance of safe work sites
and equipment; any disputes with labor unions; costs of outcome of
any legal proceedings; security breaches and other disruptions to
our information technology and operations; changes in our tax
provisions or exposure to additional income tax liabilities;
changes in U.S. generally accepted accounting principles; our
compliance with public company accounting and financial reporting
requirements; timing of payments by the U.S. government; and other
factors set forth in Part I, Item 1A, – "Risk Factors," and
elsewhere in our 2015 Annual Report on Form 10-K and described from
time to time in our future reports filed with the Securities and
Exchange Commission. We undertake no obligation to update any
forward-looking statements, whether as a result of new information,
future events or otherwise, except as required by law.
Investors
Mike
Smith
719-637-5773
michael.smith@vectrus.com
Media
George
Rhynedance
719-637-4182
george.rhynedance@vectrus.com
VECTRUS,
INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
September
25,
|
|
September
30,
|
|
September
25,
|
(In thousands,
except per share data)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Revenue
|
|
$
|
283,782
|
|
|
$
|
299,061
|
|
|
$
|
902,359
|
|
|
$
|
869,490
|
|
Cost of
revenue
|
|
257,687
|
|
|
272,224
|
|
|
822,042
|
|
|
791,170
|
|
Selling, general and
administrative expenses
|
|
14,933
|
|
|
18,366
|
|
|
46,046
|
|
|
49,650
|
|
Operating
income
|
|
11,162
|
|
|
8,471
|
|
|
34,271
|
|
|
28,670
|
|
Interest (expense)
income, net
|
|
(1,348)
|
|
|
(1,583)
|
|
|
(4,396)
|
|
|
(4,616)
|
|
Income from
operations before income taxes
|
|
9,814
|
|
|
6,888
|
|
|
29,875
|
|
|
24,054
|
|
Income tax expense
(benefit)
|
|
3,207
|
|
|
(7,140)
|
|
|
10,629
|
|
|
(958)
|
|
Net income
|
|
$
|
6,607
|
|
|
$
|
14,028
|
|
|
$
|
19,246
|
|
|
$
|
25,012
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share
|
|
|
|
|
|
|
|
|
Basic
|
|
$0.62
|
|
|
$1.33
|
|
|
$1.80
|
|
|
$2.37
|
|
Diluted
|
|
$0.60
|
|
|
$1.29
|
|
|
$1.76
|
|
|
$2.31
|
|
Weighted average
common shares outstanding - basic
|
|
10,733
|
|
|
10,560
|
|
|
10,688
|
|
|
10,533
|
|
Weighted average
common shares outstanding - diluted
|
|
11,061
|
|
|
10,848
|
|
|
10,966
|
|
|
10,808
|
|
|
|
|
|
|
|
|
|
|
VECTRUS,
INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
|
|
September
30,
|
|
December
31,
|
(In thousands,
except share information)
|
|
2016
|
|
2015
|
Assets
|
|
(unaudited)
|
|
|
Current
assets
|
|
|
|
|
Cash
|
|
$
|
53,351
|
|
|
$
|
39,995
|
|
Receivables
|
|
164,035
|
|
|
210,561
|
|
Costs incurred
in excess of billings
|
|
4,957
|
|
|
1,243
|
|
Other current
assets
|
|
8,890
|
|
|
9,708
|
|
Total current
assets
|
|
231,233
|
|
|
261,507
|
|
Property,
plant, and equipment, net
|
|
3,191
|
|
|
4,762
|
|
Goodwill
|
|
216,930
|
|
|
216,930
|
|
Other
non-current assets
|
|
1,194
|
|
|
1,197
|
|
Total non-current
assets
|
|
221,315
|
|
|
222,889
|
|
Total
Assets
|
|
$
|
452,548
|
|
|
$
|
484,396
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Accounts
payable
|
|
$
|
91,269
|
|
|
$
|
122,442
|
|
Billings in
excess of costs
|
|
3,197
|
|
|
6,025
|
|
Compensation
and other employee benefits
|
|
46,160
|
|
|
36,783
|
|
Short-term
debt
|
|
14,000
|
|
|
22,000
|
|
Other accrued
liabilities
|
|
21,675
|
|
|
25,268
|
|
Total current
liabilities
|
|
176,301
|
|
|
212,518
|
|
Long-term
debt, net
|
|
77,809
|
|
|
89,615
|
|
Deferred tax
liability
|
|
85,002
|
|
|
91,343
|
|
Other
non-current liabilities
|
|
1,452
|
|
|
1,610
|
|
Total non-current
liabilities
|
|
164,263
|
|
|
182,568
|
|
Total
liabilities
|
|
340,564
|
|
|
395,086
|
|
Shareholders'
Equity
|
|
|
|
|
Preferred
stock; $0.01 par value; 10,000,000 shares authorized; No shares
issued and outstanding
|
|
—
|
|
|
—
|
|
Common stock;
$0.01 par value; 100,000,000 shares authorized; 10,735,846 and
10,612,246 shares issued and outstanding
|
|
107
|
|
|
106
|
|
Additional
paid in capital
|
|
61,925
|
|
|
58,640
|
|
Retained
earnings
|
|
53,550
|
|
|
34,304
|
|
Accumulated
other comprehensive loss
|
|
(3,598)
|
|
|
(3,740)
|
|
Total shareholders'
equity
|
|
111,984
|
|
|
89,310
|
|
Total Liabilities
and Shareholders' Equity
|
|
$
|
452,548
|
|
|
$
|
484,396
|
|
VECTRUS,
INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
|
|
|
|
|
|
Nine Months
Ended
|
(In
thousands)
|
|
September
30,
|
|
September
25,
|
|
|
2016
|
|
2015
|
Operating
activities
|
|
|
|
|
Net income
|
|
$
|
19,246
|
|
|
$
|
25,012
|
|
Adjustments to
reconcile net income to net cash provided by (used in) operating
activities:
|
Depreciation
and amortization expense
|
|
1,453
|
|
|
2,500
|
|
Loss on
disposal of property, plant, and equipment
|
|
402
|
|
|
328
|
|
Stock-based
compensation
|
|
3,542
|
|
|
5,621
|
|
Amortization
of debt issuance costs
|
|
915
|
|
|
555
|
|
Changes in assets and
liabilities:
|
|
|
|
|
Receivables
|
|
47,501
|
|
|
(13,862)
|
|
Other
assets
|
|
(2,954)
|
|
|
1,893
|
|
Accounts
payable
|
|
(31,593)
|
|
|
1,994
|
|
Billings in
excess of costs
|
|
(2,828)
|
|
|
7,498
|
|
Deferred
taxes
|
|
(7,138)
|
|
|
(5,306)
|
|
Compensation
and other employee benefits
|
|
9,252
|
|
|
700
|
|
Other
liabilities
|
|
(4,314)
|
|
|
(16,889)
|
|
Net cash provided
by operating activities
|
|
33,484
|
|
|
10,044
|
|
Investing
activities
|
|
|
|
|
Purchases of capital
assets
|
|
(400)
|
|
|
(769)
|
|
Proceeds from the
disposition of assets
|
|
116
|
|
|
—
|
|
Distribution from
equity investment
|
|
346
|
|
|
—
|
|
Net cash provided
by (used in) investing activities
|
|
62
|
|
|
(769)
|
|
Financing
activities
|
|
|
|
|
Repayments of
long-term debt
|
|
(20,500)
|
|
|
(16,875)
|
|
Proceeds from
revolver
|
|
74,000
|
|
|
235,500
|
|
Repayments of
revolver
|
|
(74,000)
|
|
|
(235,500)
|
|
Proceeds from
exercise of stock options
|
|
568
|
|
|
107
|
|
Proceeds from
insurance financing
|
|
—
|
|
|
14,857
|
|
Repayments of
insurance financing
|
|
—
|
|
|
(8,061)
|
|
Payments of employee
withholding taxes on share-based compensation
|
|
(651)
|
|
|
(759)
|
|
Payment of debt
issuance costs
|
|
(221)
|
|
|
—
|
|
Net cash (used in)
financing activities
|
|
(20,804)
|
|
|
(10,731)
|
|
Exchange rate
effect on cash
|
|
614
|
|
|
(207)
|
|
Net change in
cash
|
|
13,356
|
|
|
(1,663)
|
|
Cash-beginning of
year
|
|
39,995
|
|
|
42,823
|
|
Cash-end of
period
|
|
$
|
53,351
|
|
|
$
|
41,160
|
|
Supplemental
Disclosure of Cash Flow Information:
|
|
|
|
|
Interest
paid
|
|
$
|
4,224
|
|
|
$
|
4,381
|
|
Income taxes
paid
|
|
$
|
20,598
|
|
|
$
|
11,129
|
|
Key Performance Indicators and Non-GAAP Financial
Measures
The primary financial performance measures Vectrus uses to
manage its 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 adjusted diluted earnings per share, to be useful to
management and investors in evaluating the operating performance
for the periods presented, and to provide a tool for evaluating our
ongoing operations. This information can assist investors in
assessing our financial performance and measures our ability to
generate capital for deployment among competing strategic
alternatives and initiatives.
Adjusted operating income, adjusted operating margin, adjusted
net income and adjusted diluted earnings per share, however, are
not measures of financial performance under generally accepted
accounting principles in the United
States of America (GAAP) and should not be considered a
substitute for operating income, net income or diluted earnings per
share as determined in accordance with GAAP. Reconciliations
of these items are provided below.
"Adjusted operating income" is defined as operating income,
adjusted to exclude items that may include, but are not limited to,
other income; significant charges or credits that impact current
results but are not related to our ongoing operations and unusual
and infrequent non-operating items and non-operating tax
settlements or adjustments, such as separation costs incurred to
become a stand-alone public company.
"Adjusted operating margin" is defined as adjusted operating
income divided by revenue.
"Adjusted net income" is defined as net income, adjusted to
exclude items that may include, but are not limited to, other
income; significant charges or credits that impact current results
that are related to our ongoing operations and unusual and
infrequent non-operating items and non-operating tax settlements or
adjustments, such as separation costs incurred to become a
stand-alone public company.
"Adjusted diluted earnings per share" is defined as adjusted net
income divided by the weighted average diluted common shares
outstanding.
(in thousands,
except operating margin and adjusted operating
margin)
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
Adjusted Operating
Income (Non-GAAP Measure)
|
|
September 30,
2016
|
|
September 25,
2015
|
|
September 30,
2016
|
|
September 25,
2015
|
Operating
income
|
|
$
|
11,162
|
|
|
$
|
8,471
|
|
|
$
|
34,271
|
|
|
$
|
28,670
|
|
Operating
margin
|
|
3.9
|
%
|
|
2.8
|
%
|
|
3.8
|
%
|
|
3.3
|
%
|
Separation costs
1 (pretax)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
177
|
|
Tax Indemnifications
2
|
|
—
|
|
|
3,300
|
|
|
—
|
|
|
3,300
|
|
Adjusted operating
income
|
|
$
|
11,162
|
|
|
$
|
11,771
|
|
|
$
|
34,271
|
|
|
$
|
32,147
|
|
Adjusted operating
margin
|
|
3.9
|
%
|
|
3.9
|
%
|
|
3.8
|
%
|
|
3.7
|
%
|
|
|
|
|
|
|
|
|
|
1 Costs
incurred to become a stand-alone public company.
|
2 Tax
Indemnifications in connection with spin-off (see Note 3 to the
financial statements in our Quarterly Report on Form 10-Q for the
quarter ended September 30, 2016, "Tax
Indemnifications").
|
|
|
(in thousands,
except per share data)
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
Adjusted Diluted
Earnings Per Share
|
|
September 30,
2016
|
|
September 25,
2015
|
|
September 30,
2016
|
|
September 25,
2015
|
Net income
|
|
$
|
6,607
|
|
|
$
|
14,028
|
|
|
$
|
19,246
|
|
|
$
|
25,012
|
|
Separation costs
1 (pretax)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
177
|
|
Tax impact of
adjustments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7
|
|
Net settlement of
uncertain tax positions 2
|
|
—
|
|
|
(6,949)
|
|
|
—
|
|
|
(6,949)
|
|
Adjusted net
income
|
|
$
|
6,607
|
|
|
$
|
7,079
|
|
|
$
|
19,246
|
|
|
$
|
18,247
|
|
GAAP EPS -
diluted
|
|
$0.60
|
|
|
$1.29
|
|
|
$1.76
|
|
|
$2.31
|
|
Adjusted EPS -
diluted
|
|
$0.60
|
|
|
$0.65
|
|
|
$1.76
|
|
|
$1.69
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding - diluted
|
|
11,061
|
|
|
10,848
|
|
|
10,966
|
|
|
10,808
|
|
|
|
|
|
|
|
|
|
|
1 Costs
incurred to become a stand-alone public company.
|
2 Net
settlement of uncertain tax positions due to resolution of
examinations of tax returns of our former parent (see Note 3 to the
financial statements in our Quarterly Report on Form 10-Q for the
quarter ended September 30, 2016, "Uncertain Tax
Positions").
|
|
|
SUPPLEMENTAL
INFORMATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
(In
thousands)
|
|
September
30,
2016
|
|
September
25,
2015
|
|
September
30,
2016
|
|
September
25,
2015
|
Military
branch
|
|
Revenue
|
|
% of Total
|
|
Revenue
|
|
% of Total
|
|
Revenue
|
|
% of Total
|
|
Revenue
|
|
% of Total
|
Army
|
|
$
|
241,601
|
|
|
85
|
%
|
|
$
|
273,372
|
|
|
92
|
%
|
|
$
|
762,818
|
|
|
84
|
%
|
|
$
|
790,567
|
|
|
91
|
%
|
Navy/Marines
|
|
5,482
|
|
|
2
|
%
|
|
7,001
|
|
|
2
|
%
|
|
14,975
|
|
|
2
|
%
|
|
20,919
|
|
|
2
|
%
|
Air Force
|
|
36,699
|
|
|
13
|
%
|
|
18,688
|
|
|
6
|
%
|
|
124,566
|
|
|
14
|
%
|
|
58,004
|
|
|
7
|
%
|
Total
Revenue
|
|
$
|
283,782
|
|
|
|
|
$
|
299,061
|
|
|
|
|
$
|
902,359
|
|
|
|
|
$
|
869,490
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
(in
thousands)
|
|
September
30,
2016
|
|
September
25,
2015
|
|
September
30,
2016
|
|
September
25,
2015
|
Contract
type
|
|
Revenue
|
|
% of Total
|
|
Revenue
|
|
% of Total
|
|
Revenue
|
|
% of Total
|
|
Revenue
|
|
% of Total
|
Firm-Fixed-Price
|
|
$
|
72,978
|
|
|
26
|
%
|
|
$
|
36,121
|
|
|
12
|
%
|
|
$
|
230,604
|
|
|
26
|
%
|
|
$
|
239,865
|
|
|
28
|
%
|
Cost-Plus and Cost
Reimbursable ¹
|
|
210,804
|
|
|
74
|
%
|
|
262,940
|
|
|
88
|
%
|
|
671,755
|
|
|
74
|
%
|
|
629,625
|
|
|
72
|
%
|
Total
Revenue
|
|
$
|
283,782
|
|
|
|
|
$
|
299,061
|
|
|
|
|
$
|
902,359
|
|
|
|
|
$
|
869,490
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
¹ Includes time and
material contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
(In
thousands)
|
|
September
30,
2016
|
|
September
25,
2015
|
|
September
30,
2016
|
|
September
25,
2015
|
Contract
Relationship
|
|
Revenue
|
|
% of Total
|
|
Revenue
|
|
% of Total
|
|
Revenue
|
|
% of Total
|
|
Revenue
|
|
% of Total
|
Prime
Contractor
|
|
$
|
277,787
|
|
|
98
|
%
|
|
$
|
275,795
|
|
|
92
|
%
|
|
$
|
848,582
|
|
|
94
|
%
|
|
$
|
787,032
|
|
|
91
|
%
|
Sub
Contractor
|
|
5,995
|
|
|
2
|
%
|
|
23,266
|
|
|
8
|
%
|
|
53,777
|
|
|
6
|
%
|
|
82,458
|
|
|
9
|
%
|
Total
Revenue
|
|
$
|
283,782
|
|
|
|
|
$
|
299,061
|
|
|
|
|
$
|
902,359
|
|
|
|
|
$
|
869,490
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Logo - http://photos.prnewswire.com/prnh/20160621/382112LOGO
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/vectrus-reports-third-quarter-2016-financial-results-300359263.html
SOURCE Vectrus, Inc.