COLORADO SPRINGS, Colo.,
May 12, 2020 /PRNewswire/
-- Vectrus, Inc. (NYSE:VEC) announced first quarter 2020
financial results for the quarter ended April 3, 2020.
"Vectrus provides critical infrastructure support services
globally for a variety of national security missions. This core
competency combined with our backlog of long-term contracts with
the U.S. government creates operating and financial resiliency,
with predictable free cash flow, that is foundational to our
business model," said Chuck Prow,
president and chief executive officer. "Our first quarter revenue
grew 8% with minimal impact from COVID-19, and adjusted EBITDA
margin expanded year-over-year. Additionally, our growth focused
campaigns continue to drive results as we recorded wins with the
Army, Navy and Air Force, including a position on the AFCAP V
$6.4 billion IDIQ contract vehicle.
Our response to the COVID-19 pandemic has been measured, deliberate
and client centric, keeping our clients, employees and partners
safe while executing consistently on our programs. We are proud of
the contributions our teams are making to support our men and women
on the front lines at such a difficult time."
First Quarter 2020 Results
First quarter 2020 revenue of $351.7
million increased $25.8
million or 8% compared to first quarter 2019. The company
saw increased revenue across all geographic regions with revenue
growth of 15% in Europe, 14% in
the United States, and 5% in the
Middle East. Organic revenue
growth was 4% in the first quarter 2020.
For the first quarter 2020, operating income was $12.5 million or 3.5% margin. EBITDA1
was $14.5 million or 4.1% margin for
the first quarter 2020, compared to $11.8
million or 3.6% margin in the first quarter 2019. Adjusted
EBITDA1 was $14.6 million
or 4.2% margin for the first quarter 2020, compared to $12.8 million or 3.9% margin in the first quarter
2019.
First quarter 2020 diluted EPS was $0.74 compared to $0.62 in the first quarter 2019. Adjusted diluted
EPS1 for the first quarter 2020 was $0.75. The company's effective tax rate in the
first quarter 2020 was 19.6%, compared to 19.8% in the first
quarter 2019. On an adjusted basis diluted EPS grew 8.7% in the
first quarter 2020.
"I'm pleased to announce that we were able to post strong top
and bottom-line growth despite COVID-19, which reinforces the
resiliency of our business," said Susan
Lynch, senior vice president and chief financial officer.
"We estimate that COVID-19 impacted first quarter 2020 revenue and
earnings per share by $2.2 million
and $0.02, respectively."
Net cash provided by operating activities for the quarter ended
April 3, 2020 was $1.1 million, compared to net cash used by
operating activities of $6.4 million
in the first quarter of 2019. Days sales outstanding (DSO) was 66
days in the first quarter of 2020.
Net debt at April 3, 2020 was
$37.8 million, essentially unchanged
from 2019 year-end, equating to a 0.5x net debt to consolidated
EBITDA1 ratio. Total debt at April 3, 2020 was $184.0
million, up $110.0 million
from $74.0 million at March 29, 2019. Cash at quarter-end was
$146.2 million. At the onset of the
COVID-19 pandemic, the company preemptively drew $115 million on its revolver to mitigate any
liquidity issues that might have arisen as a result of the
pandemic. The company has subsequently repaid approximately
$60 million of borrowings under its
revolver. As of April 3, 2020, total
consolidated indebtedness to consolidated EBITDA1 (total
leverage ratio) was 2.6x.
Total backlog in the quarter ended April
3, 2020 was $4.1 billion and
funded backlog was $1.1
billion. The trailing twelve-month book-to-bill was
1.5x as of April 3, 2020.
"Backlog grew 48% sequentially to a record $4.1 billion and drove a 1.5x trailing
twelve-month book-to-bill ratio," said Lynch. "The size of our
backlog is an attractive attribute of our business, representing
2.7 times the midpoint of our 2020 full year revenue guidance,
providing visibility into the remainder of the year and
beyond."
Reiterating 2020 Guidance
Vectrus is reiterating its full-year 2020 guidance while
actively monitoring COVID-19 response and LOGCAP V phase in
schedule.
There was minimal impact to revenue and operating income in the
first quarter of 2020 due to COVID-19. The pandemic is estimated to
have approximately a $20-25 million
impact on revenue and a corresponding impact on operating income in
the second quarter of 2020. The company continues to work with its
clients with regard to its COVID-19 response and LOGCAP V phase in
schedule and is maintaining its current guidance range.
In addition, guidance assumes capital expenditures of
$7.0 million, depreciation and
amortization of $8.4 million,
mandatory debt payments of $6.5
million, interest expense of $5.6
million, tax rate of 23 percent, and weighted average
diluted shares outstanding of 11.8 million at December 31, 2020.
$ millions, except
for EBITDA margins and per share amounts
|
2020
Guidance
|
2020 Mid
|
Revenue
|
$1,475
|
to
|
$1,525
|
$1,500
|
EBITDA
Margin*
|
4.6%
|
to
|
4.8%
|
4.7%
|
Diluted Earnings Per
Share*
|
$3.48
|
to
|
$3.81
|
$3.67
|
Net Cash Provided by
Operating Activities
|
$45.0
|
to
|
$55.0
|
$50.0
|
|
* EBITDA margin,
Diluted Earnings Per Share, and Net Cash Provided by Operating
Activities excludes any potential unusual or special one-time
items
|
The Company notes that forward-looking statements 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.
First Quarter 2020 Conference Call
Management will conduct a conference call with analysts and
investors at 4:30 p.m. ET on Tuesday,
May 12, 2020. U.S.-based participants may dial in to the conference
call at 877-407-0792, while international participants may dial
201-689-8263. For all other listeners, a live webcast of the
conference call will be available on the Vectrus Investor Relations
website at http://investors.vectrus.com. An accompanying slide
presentation will also be available on the Vectrus Investor
Relations website.
A replay of the conference call will be posted on the Vectrus
website shortly after completion of the call and will be available
for one year. A telephonic replay will also be available through
May 26, 2020 at
844-512-2921 (domestic) or 412-317-6671 (international) with
passcode 13703070.
Footnotes:
|
|
1 See
"Key Performance Indicators and Non-GAAP Financial Measures" for
reconciliation.
|
About Vectrus
Vectrus is a leading provider of global service solutions with a
history in the services market that dates back more than 70 years.
The company provides facility and base operations; supply chain and
logistics services; information technology mission support; and
engineering and digital technology services primarily 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 its
clients' mission success. Vectrus is headquartered in Colorado Springs, Colo., and includes about
7,200 employees spanning 148 locations in 26 countries and
territories across four continents. In 2019, Vectrus generated
sales of $1.4 billion. To learn about
career opportunities at Vectrus, visit www.vectrus.com/careers. For
more information, visit the company's website at www.vectrus.com or
connect with Vectrus on Facebook, Twitter, and LinkedIn.
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, all of
the statements and items listed in the table in "2020 Guidance"
above and other assumptions contained therein for purposes of such
guidance, other statements about our 2020 performance outlook,
five-year growth plan, revenue, DSO's, contract opportunities, the
potential impact of COVID-19, 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," "continue,"
"goal" 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.
These forward-looking statements are not guarantees of future
performance, conditions or results, and involve a number of known
and unknown risks, uncertainties, assumptions and other important
factors, many of which are outside our management's control, that
could cause actual results to differ materially from the results
discussed in the forward-looking statements. 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:
Vectrus
Mike Smith, CFA
719-637-5773
michael.smith@vectrus.com
VECTRUS,
INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
|
|
|
|
Three Months
Ended
|
|
|
April 3,
|
|
March 29,
|
(In thousands,
except per share data)
|
|
2020
|
|
2019
|
Revenue
|
|
$
|
351,734
|
|
|
$
|
325,906
|
|
Cost of
revenue
|
|
319,693
|
|
|
295,596
|
|
Selling, general, and
administrative expenses
|
|
19,558
|
|
|
19,919
|
|
Operating
income
|
|
12,483
|
|
|
10,391
|
|
Interest expense,
net
|
|
(1,703)
|
|
|
(1,575)
|
|
Income from
operations before income taxes
|
|
10,780
|
|
|
8,816
|
|
Income tax
expense
|
|
2,112
|
|
|
1,742
|
|
Net income
|
|
$
|
8,668
|
|
|
$
|
7,074
|
|
|
|
|
|
|
Earnings per
share
|
|
|
|
|
Basic
|
|
$
|
0.75
|
|
|
$
|
0.63
|
|
Diluted
|
|
$
|
0.74
|
|
|
$
|
0.62
|
|
Weighted average
common shares outstanding - basic
|
|
11,545
|
|
|
11,292
|
|
Weighted average
common shares outstanding - diluted
|
|
11,745
|
|
|
11,399
|
|
VECTRUS,
INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
|
|
April 3,
|
|
December
31,
|
(In thousands,
except share information)
|
|
2020
|
|
2019
|
Assets
|
|
(unaudited)
|
|
|
Current
assets
|
|
|
|
|
Cash
|
|
$
|
146,172
|
|
|
$
|
35,318
|
|
Receivables
|
|
263,601
|
|
|
269,144
|
|
Costs incurred in
excess of billings
|
|
—
|
|
|
—
|
|
Other current
assets
|
|
21,212
|
|
|
16,154
|
|
Total current
assets
|
|
430,985
|
|
|
320,616
|
|
Property, plant, and
equipment, net
|
|
18,540
|
|
|
18,844
|
|
Goodwill
|
|
261,983
|
|
|
261,983
|
|
Intangible assets,
net
|
|
13,911
|
|
|
14,926
|
|
Right-of-use
assets
|
|
12,390
|
|
|
14,654
|
|
Other non-current
assets
|
|
5,789
|
|
|
5,366
|
|
Total non-current
assets
|
|
312,613
|
|
|
315,773
|
|
Total
Assets
|
|
$
|
743,598
|
|
|
$
|
636,389
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Accounts
payable
|
|
$
|
147,364
|
|
|
$
|
148,015
|
|
Compensation and
other employee benefits
|
|
42,131
|
|
|
53,155
|
|
Short-term
debt
|
|
122,000
|
|
|
6,500
|
|
Other accrued
liabilities
|
|
39,331
|
|
|
37,409
|
|
Total current
liabilities
|
|
350,826
|
|
|
245,079
|
|
Long-term debt,
net
|
|
61,139
|
|
|
63,041
|
|
Deferred tax
liability
|
|
47,294
|
|
|
49,407
|
|
Other non-current
liabilities
|
|
20,096
|
|
|
19,997
|
|
Total non-current
liabilities
|
|
128,529
|
|
|
132,445
|
|
Total
liabilities
|
|
479,355
|
|
|
377,524
|
|
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; 11,587,719 and 11,523,691
shares issued and outstanding as of April 3, 2020
and December 31, 2019, respectively
|
|
116
|
|
|
115
|
|
Additional paid in
capital
|
|
78,690
|
|
|
78,757
|
|
Retained
earnings
|
|
193,743
|
|
|
185,075
|
|
Parent company
equity
|
|
—
|
|
|
—
|
|
Accumulated other
comprehensive loss
|
|
(8,306)
|
|
|
(5,082)
|
|
Total shareholders'
equity
|
|
264,243
|
|
|
258,865
|
|
Total Liabilities
and Shareholders' Equity
|
|
$
|
743,598
|
|
|
$
|
636,389
|
|
VECTRUS,
INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
|
|
|
|
Three Months
Ended
|
|
|
April 3,
|
|
March 29,
|
(In
thousands)
|
|
2020
|
|
2019
|
Operating
activities
|
|
|
|
|
Net income
|
|
$
|
8,668
|
|
|
$
|
7,074
|
|
Adjustments to
reconcile net income to net cash provided by (used in) operating
activities:
|
|
|
|
|
Depreciation
expense
|
|
996
|
|
|
788
|
|
Amortization of
intangible assets
|
|
1,015
|
|
|
571
|
|
Loss on disposal of
property, plant, and equipment
|
|
—
|
|
|
—
|
|
Stock-based
compensation
|
|
2,367
|
|
|
1,462
|
|
Amortization of debt
issuance costs
|
|
99
|
|
|
99
|
|
Changes in assets and
liabilities:
|
|
|
|
|
Receivables
|
|
3,942
|
|
|
(12,650)
|
|
Other
assets
|
|
(5,715)
|
|
|
94
|
|
Accounts
payable
|
|
(162)
|
|
|
(11,366)
|
|
Deferred
taxes
|
|
(1,522)
|
|
|
(1,090)
|
|
Compensation and
other employee benefits
|
|
(9,733)
|
|
|
6,724
|
|
Other
liabilities
|
|
1,181
|
|
|
1,909
|
|
Net cash provided
by (used in) operating activities
|
|
1,136
|
|
|
(6,386)
|
|
Investing
activities
|
|
|
|
|
Purchases of capital
assets and intangibles
|
|
(917)
|
|
|
(9,886)
|
|
Net cash used in
investing activities
|
|
(917)
|
|
|
(9,886)
|
|
Financing
activities
|
|
|
|
|
Proceeds from
issuance of long-term debt
|
|
—
|
|
|
—
|
|
Repayments of
long-term debt
|
|
(1,500)
|
|
|
(1,000)
|
|
Proceeds from
revolver
|
|
144,000
|
|
|
48,000
|
|
Repayments of
revolver
|
|
(29,000)
|
|
|
(48,000)
|
|
Proceeds from
exercise of stock options
|
|
1
|
|
|
602
|
|
Payments of employee
withholding taxes on share-based compensation
|
|
(1,787)
|
|
|
(683)
|
|
Net cash provided
by (used in) financing activities
|
|
111,713
|
|
|
(1,081)
|
|
Exchange rate
effect on cash
|
|
(1,080)
|
|
|
(618)
|
|
Net change in
cash
|
|
110,853
|
|
|
(17,970)
|
|
Cash-beginning of
year
|
|
35,318
|
|
|
66,145
|
|
Cash-end of
period
|
|
$
|
146,171
|
|
|
$
|
48,174
|
|
Supplemental
disclosure of cash flow information:
|
|
|
|
|
Interest
paid
|
|
$
|
1,469
|
|
|
$
|
988
|
|
Income taxes paid
(refunded)
|
|
$
|
36
|
|
|
$
|
(296)
|
|
Non-cash investing
activities:
|
|
|
|
|
Purchase of capital
assets on account
|
|
$
|
(606)
|
|
|
$
|
(966)
|
|
Purchase of capital
assets on account
|
|
$
|
—
|
|
|
$
|
1,128
|
|
Key Performance Indicators and 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. Management believes that these financial
performance measures are the primary drivers for our earnings and
net cash from operating activities. Management evaluates its
contracts and business performance by focusing on revenue,
operating income and operating margin. Operating income represents
revenue less both cost of revenue and selling, general and
administrative (SG&A) expenses. Cost of revenue consists of
labor, subcontracting costs, materials, and an allocation of
indirect costs, which includes service center transaction costs.
SG&A expenses consist of indirect labor costs (including wages
and salaries for executives and administrative personnel), bid and
proposal expenses and other general and administrative expenses not
allocated to cost of revenue. We define operating margin as
operating income divided by revenue.
We manage the nature and amount of costs at the program level,
which forms the basis for estimating our total costs and
profitability. This is consistent with our approach for managing
our business, which begins with management's assessing the bidding
opportunity for each contract and then managing contract
profitability throughout the performance period.
In addition to the key performance measures discussed above, we
consider adjusted operating income, adjusted operating margin,
adjusted net income, adjusted diluted earnings per share, EBITDA,
adjusted EBITDA, EBITDA margin, adjusted EBITDA margin, and organic
revenue to be useful to management and investors in evaluating our
operating performance, 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. We provide this information to our
investors in our earnings releases, presentations and other
disclosures.
Adjusted operating income, adjusted operating margin, adjusted
net income, adjusted diluted earnings per share, EBITDA, adjusted
EBITDA, EBITDA margin, adjusted EBITDA margin, and organic revenue,
however, are not measures of financial performance under GAAP and
should not be considered a substitute for operating income,
operating margin, net income and diluted earnings per share as
determined in accordance with GAAP. Definitions and
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 significant charges or credits that impact current
results but are not related to our ongoing operations and unusual
and infrequent non-operating items, M&A transaction and LOGCAP
V pre-operational legal costs that impact current results but are
not related to our ongoing operations.
- 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,
significant charges or credits that impact current results but are
not related to our ongoing operations and unusual and infrequent
non-operating items.
- Adjusted diluted earnings per share is defined as
adjusted net income divided by the weighted average diluted common
shares outstanding.
- EBITDA is defined as operating income, adjusted to
exclude depreciation and amortization.
- Adjusted EBITDA is defined as EBITDA, adjusted to
exclude items that may include, but are not limited to significant
charges or credits that impact current results but are not related
to our ongoing operations and unusual and infrequent non-operating
items, M&A transaction and LOGCAP V pre-operational legal costs
that impact current results but are not related to our ongoing
operations.
- EBITDA margin is defined as EBITDA divided by
revenue.
- Adjusted EBITDA margin is defined as Adjusted EBITDA
divided by revenue.
- Organic revenue is defined as Revenue, adjusted to
exclude revenue from acquired companies.
Adjusted Net
Income,
Adjusted Diluted Earnings
Per Share (Non-GAAP Measures)
|
|
|
|
|
|
|
|
|
(In thousands,
except per share data)
|
|
Three
Months
Ended
April
3,
2020
As
Reported
|
|
M&A
Related
Costs1
|
|
LOGCAP
V
Pre-
Operational
Legal
Costs2
|
|
Three
Months
Ended
April
3,
2020
As
Reported
–
Adjusted
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
351,734
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
351,734
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
$
|
12,483
|
|
|
|
|
$
|
141
|
|
|
$
|
12,624
|
|
Operating
margin
|
|
3.5
|
%
|
|
|
|
|
|
3.6
|
%
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
$
|
(1,703)
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(1,703)
|
|
|
|
|
|
|
|
|
|
|
Income from
operations before income taxes
|
|
$
|
10,780
|
|
|
$
|
—
|
|
|
$
|
141
|
|
|
$
|
10,921
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
$
|
2,112
|
|
|
$
|
—
|
|
|
$
|
28
|
|
|
$
|
2,140
|
|
Income tax
rate
|
|
19.6
|
%
|
|
|
|
|
|
19.6
|
%
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
8,668
|
|
|
$
|
—
|
|
|
$
|
113
|
|
|
$
|
8,781
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding, diluted
|
|
11,745
|
|
|
|
|
|
|
11,745
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
|
$
|
0.74
|
|
|
|
|
|
|
$
|
0.75
|
|
|
|
|
|
|
|
|
|
|
EBITDA (Non-GAAP
Measures)
|
|
|
|
|
|
|
|
|
(in
thousands)
|
|
Three
Months
Ended
April
3,
2020
As
Reported
|
|
M&A
Related
Costs1
|
|
LOGCAP
V
Pre-
Operational
Legal
Costs2
|
|
Three
Months
Ended
April
3,
2020
As
Reported
–
Adjusted
|
Operating
Income
|
|
$
|
12,483
|
|
|
|
|
$
|
141
|
|
|
$
|
12,624
|
|
|
|
|
|
|
|
|
|
|
Add:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
$
|
2,011
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,011
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
$
|
14,494
|
|
|
$
|
—
|
|
|
$
|
141
|
|
|
$
|
14,635
|
|
EBITDA
Margin
|
|
4.1
|
%
|
|
|
|
|
|
4.2
|
%
|
|
|
|
|
|
|
|
|
|
1 2020
Costs related to M&A and Integration of acquisitions
|
2 2020
LOGCAP V Pre-Operational legal cost
|
|
Adjusted Net
Income,
Adjusted Diluted Earnings Per
Share (Non-GAAP Measures)
|
|
|
|
|
|
|
|
|
(In thousands,
except per share data)
|
|
Three
Months
Ended
March
29,
2019
As
Reported
|
|
M&A
Related
Costs1
|
|
LOGCAP
V
Pre-
Operational
Legal
Costs2
|
|
Three
Months
Ended
March
28,
2019
As
Reported
–
Adjusted
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
325,906
|
|
|
—
|
|
|
—
|
|
|
$
|
325,906
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
$
|
10,391
|
|
|
$
|
1,045
|
|
|
$
|
—
|
|
|
$
|
11,436
|
|
Operating
margin
|
|
3.2
|
%
|
|
|
|
|
|
3.5
|
%
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
$
|
(1,575)
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(1,575)
|
|
|
|
|
|
|
|
|
|
|
Income from
operations before income taxes
|
|
$
|
8,816
|
|
|
$
|
1,045
|
|
|
$
|
—
|
|
|
$
|
9,861
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
$
|
1,742
|
|
|
$
|
207
|
|
|
$
|
—
|
|
|
$
|
1,949
|
|
Income tax
rate
|
|
19.8
|
%
|
|
|
|
|
|
19.8
|
%
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
7,074
|
|
|
$
|
838
|
|
|
$
|
—
|
|
|
$
|
7,912
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding, diluted
|
|
11,399
|
|
|
|
|
|
|
11,399
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
|
$
|
0.62
|
|
|
|
|
|
|
$
|
0.69
|
|
|
|
|
|
|
|
|
|
|
EBITDA (Non-GAAP
Measures)
|
|
|
|
|
|
|
|
|
(in
thousands)
|
|
Three
Months
Ended
March
29,
2019
As
Reported
|
|
M&A
Related
Costs1
|
|
LOGCAP
V
Pre-
Operational
Legal
Costs2
|
|
Three
Months
Ended
March
29,
2019
As
Reported
–
Adjusted
|
Operating
Income
|
|
$
|
10,391
|
|
|
$
|
1,045
|
|
|
$
|
—
|
|
|
$
|
11,436
|
|
|
|
|
|
|
|
|
|
|
Add:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
$
|
1,359
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,359
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
$
|
11,750
|
|
|
$
|
1,045
|
|
|
$
|
—
|
|
|
$
|
12,795
|
|
EBITDA
Margin
|
|
3.6
|
%
|
|
|
|
|
|
3.9
|
%
|
|
|
|
|
|
|
|
|
|
1 2020
Costs related to M&A and Integration of acquisitions
|
2 2020
LOGCAP V Pre-Operational legal cost
|
(In
thousands)
|
|
Three
Months
Ended April
3,
2020
As
Reported
|
|
Three
Months
Ended April
3,
2020
Advantor
|
|
Three
Months
Ended April
3,
2020
As
Reported
–
Organic
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
351,734
|
|
|
$
|
11,186
|
|
|
$
|
340,548
|
|
|
|
|
|
|
|
|
(In
thousands)
|
|
Three
Months
Ended
March
29, 2019
As
Reported
|
|
Three
Months
Ended
March
29,
2019
Advantor
|
|
Three
Months
Ended March
29,
2019
As
Reported
–
Organic
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
325,906
|
|
|
$
|
—
|
|
|
$
|
325,906
|
|
|
|
|
|
|
|
|
Organic Revenue $
Increase
|
|
|
|
|
|
$
|
14,642
|
|
Organic Revenue %
Increase
|
|
|
|
|
|
4.5
|
%
|
SUPPLEMENTAL INFORMATION
Revenue by client branch, contract type, contract relationship,
and geographic region for the periods presented below was as
follows:
Revenue by
Client
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
(In
thousands)
|
|
April 3,
2020
|
|
% of
Total
|
|
March 29,
2019
|
|
% of
Total
|
Army
|
|
247,555
|
|
|
70
|
%
|
|
226,692
|
|
|
69
|
%
|
Air Force
|
|
73,341
|
|
|
21
|
%
|
|
67,931
|
|
|
21
|
%
|
Navy
|
|
15,237
|
|
|
4
|
%
|
|
15,088
|
|
|
5
|
%
|
Other
|
|
15,601
|
|
|
5
|
%
|
|
16,195
|
|
|
5
|
%
|
Total
revenue
|
|
$
|
351,734
|
|
|
|
|
$
|
325,906
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue by
Contract Type
|
|
|
|
|
Three Months
Ended
|
(In
thousands)
|
|
April 3,
2020
|
|
% of
Total
|
|
March 29,
2019
|
|
% of
Total
|
Cost-plus and
cost-reimbursable ¹
|
|
256,319
|
|
|
73
|
%
|
|
251,456
|
|
|
77
|
%
|
Firm-fixed-price
|
|
95,415
|
|
|
27
|
%
|
|
74,450
|
|
|
23
|
%
|
Total
revenue
|
|
$
|
351,734
|
|
|
|
|
$
|
325,906
|
|
|
|
¹ Includes time and
material contracts
|
|
|
|
|
|
|
|
|
|
Revenue by
Contract Relationship
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
(In
thousands)
|
|
April 3,
2020
|
|
% of
Total
|
|
March 29,
2019
|
|
% of
Total
|
Prime
contractor
|
|
$
|
333,393
|
|
|
95
|
%
|
|
$
|
307,058
|
|
|
94
|
%
|
Subcontractor
|
|
18,341
|
|
|
5
|
%
|
|
18,848
|
|
|
6
|
%
|
Total
revenue
|
|
$
|
351,734
|
|
|
|
|
$
|
325,906
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue by
Geographic Region
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
(In
thousands)
|
|
April 3,
2020
|
|
% of
Total
|
|
March 29,
2019
|
|
% of
Total
|
Middle
East
|
|
$
|
237,937
|
|
|
68
|
%
|
|
226,416
|
|
|
69
|
%
|
United
States
|
|
81,469
|
|
|
23
|
%
|
|
71,388
|
|
|
22
|
%
|
Europe
|
|
32,328
|
|
|
9
|
%
|
|
28,102
|
|
|
9
|
%
|
Total
revenue
|
|
$
|
351,734
|
|
|
|
|
$
|
325,906
|
|
|
|
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SOURCE Vectrus, Inc.