COLORADO SPRINGS, Colo.,
March 17, 2017 /PRNewswire/ --
Vectrus, Inc. (NYSE: VEC), announced today that the U.S. Government
published a Notice of Intent to award a modification to extend the
existing Kuwait Base Operation and Security Support Services
contract, also known as K-BOSSS, performed by Vectrus Systems
Corporation.
The Period of Performance for the extension would be from
Mar. 29, 2017 to Mar. 28, 2018, with an evaluated nine-month
option of Mar. 29, 2018 through
Dec. 28, 2018 and an evaluated
three-month option of Dec. 29, 2018
through Mar. 28, 2019.
The proposed modification will continue critical base operations
support and security support services throughout the Kuwait area of responsibility including forms,
publications, and reproductive services; Army postal operations;
operations; logistics; information management; public works;
environmental services; medical administrative support;
installation services; security services; fire services; and
emergency services.
The extension has not been negotiated and finalized. "Our 2017
financial guidance issued on March 1,
2017, anticipated an extension of our existing K-BOSSS
contract well into the third quarter," said Matt Klein, chief financial officer of Vectrus.
"This announcement will likely result in a full-year financial
contribution from K-BOSSS and we expect to update guidance upon
finalization of the extension."
In 2016, the K-BOSSS program contributed approximately
$438 million dollars or 37% of
revenue.
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 5,600 employees spanning 143
locations in 18 countries. In 2016, Vectrus generated sales of
$1.2 billion. For more information,
visit our website at www.vectrus.com or connect with us on
Facebook, Twitter, LinkedIn, and YouTube.
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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 in 2017 Guidance above about our revenue, operating
margin, net income, EPS and net cash provided by operating
activities for 2017 and other assumptions contained therein for
purposes of such guidance, debt payments, expense savings, contract
opportunities, bids and awards, collections, business strategy,
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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: our dependence on a few large contracts for a
significant portion of our revenue; competition in our industry;
our ability to submit proposals for and/or win potential
opportunities in our pipeline; our ability to retain ad renew our
existing contracts; protests of new awards; our international
operations, including the 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; 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; 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; 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; our compliance with applicable environmental health
and safety regulations; our ability to maintain required security
clearances; 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;
accounting estimates made in connection with our contracts; our
exposure to interest rate risk; our compliance with public company
accounting and financial reporting requirements; timing of payments
by the U.S. government; risks and uncertainties relating to the
spin-off from our former parent; and other factors set forth in
Part I, Item 1A, – "Risk Factors," and elsewhere in our 2016 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.
CONTACT:
Mike Smith, CFA
719-637-5773
michael.smith@vectrus.com
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SOURCE Vectrus