COLORADO SPRINGS, Colo.,
Nov. 10, 2020 /PRNewswire/
-- Vectrus, Inc. (NYSE:VEC) announced third quarter 2020
financial results for the quarter ended October 2, 2020.
"Third quarter results were solid, reflecting improved volumes
and margin levels," said Chuck Prow,
president and chief executive officer. "In addition, we continued
to execute well on our growth strategy on all fronts, particularly
with respect to diversifying our revenue streams and advancing our
leadership position in the converged infrastructure market. For
example, we were recently awarded a contract to support Navy Smart
Warehouse Prototype 5G Applications. While modest in size, this
prime contract is the result of our deliberate, strategic and
transformational investment in expanding our capabilities at the
intersection of traditional infrastructure and integrated digital
services. We were also recently awarded a position on a "Best in
Class" General Services Administration multi-year, multiple award,
IDIQ contract vehicle, allowing access to a funding stream that is
new to us and affords additional avenues of organic growth.
"For the remainder of the year, we are focused on delivering on
all of our programs while keeping our teams and our clients safe;
growing our pipeline of opportunities in the converged
infrastructure market; and pursuing strategic M&A," said Prow.
"I want to thank our entire work force for their continued
dedication, fortitude, and resourcefulness every day as we face the
ongoing global pandemic."
Third Quarter 2020 Results
Third quarter 2020 revenue of $352.4
million was down slightly year on year by 2.1% mainly due to
COVID-19 pandemic related deferrals of $12.9
million or 3.7% due to base access restrictions. Revenue was
up $16.4 million sequentially or
4.9%.
For the third quarter 2020, operating income was $14.8 million or 4.2% margin. Adjusted
operating income1 was $15.0
million or 4.3% margin. Adjusted operating
income1 was adversely impacted by the COVID-19 deferral
of high-margin revenue due to base access restrictions into future
periods of $2.1 million which had a
40-basis point impact to adjusted operating margin1.
EBITDA1 was $16.9
million or 4.8% margin for the third quarter 2020, compared
to $14.1 million or 3.9% margin in
the third quarter 2019. Adjusted EBITDA1 was
$17.0 million or 4.8% margin for the
third quarter 2020, compared to $14.7
million or 4.1% margin in the third quarter 2019. Adjusted
EBITDA1 was adversely impacted by COVID-19 of
$2.1 million, which had a 40-basis
point impact to adjusted EBITDA margin1.
Third quarter 2020 diluted EPS was $0.88 compared to $0.67 in the third quarter 2019. Adjusted diluted
EPS1 for the third quarter 2020 was $0.89 compared to $0.71 in the third quarter 2019. Adjusted
diluted EPS1 was adversely impacted due to COVID-19 by
$0.14.
"Third quarter adjusted EBITDA1 margin of 4.8%,
representing the second highest margin rate in the past ten
quarters, an impressive accomplishment as EBITDA margin includes an
estimated 40-basis points of COVID-19 impact," said Susan Lynch, senior vice president and chief
financial officer. "Our margin reflects the strength of our
underlying business and continued execution on our enterprise wide
performance improvement initiatives. The rollout of our enterprise
systems is progressing well, and we continue to invest in our team
to support our growth. With less than one-times leverage and a
strong liquidity position as well as a solid backlog, we are poised
to weather the pandemic while continuing to support our long-term
growth."
Cash provided by operating activities through October 2, 2020 was $37.7
million, compared to net cash provided by operating
activities of $28.4 million
year-to-date 2019. The increase year-to-date over prior year
is mainly driven by the CARES Act employee payroll tax deferrals of
approximately $9.9 million.
Net debt at October 2, 2020 was
$2.3 million, down from $35.2 million at December
31, 2019. Total debt at October 2,
2020 was $66.0 million, down
$4.5 million from $70.5 million at December
31, 2019. Cash at quarter-end was $63.7 million, up $28.4
million from $35.3 million at
December 31, 2019. As of October 2, 2020, the revolver, was undrawn and
combined with cash, results in total liquidity of more than
$180 million. Total consolidated
indebtedness to consolidated EBITDA1 (total
leverage ratio) was 0.99x.
Total backlog as of October 2,
2020 was $3.7 billion and
funded backlog was $1.0
billion. The trailing twelve-month book-to-bill was
1.5x as of October 2, 2020.
Reiterate 2020 Guidance
Lynch continued, "We expect the momentum experienced in the
third quarter to continue for the remainder of the year and are
reiterating our 2020 guidance."
$ millions, except
for EBITDA margins and per share amounts
|
2020
Guidance
|
Revenue
|
$1,385
|
to
|
$1,405
|
Adjusted EBITDA
Margin1
|
4.0%
|
to
|
4.1%
|
Adjusted Diluted
Earnings Per Share1
|
$2.68
|
to
|
$2.82
|
Net Cash Provided by
Operating Activities
|
$45.0
|
to
|
$55.0
|
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.
Third Quarter 2020 Conference Call
Management will conduct a conference call with analysts and
investors at 4:30 p.m. ET on Tuesday,
November 10, 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 or
https://www.webcaster4.com/Webcast/Page/1431/38350. 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
November 24, 2020, at 844-512-2921
(domestic) or 412-317-6671 (international) with passcode
13712134.
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 7,100 employees spanning 148
locations in 26 countries and territories. In 2019, Vectrus
generated sales of $1.4 billion. 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, 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. For a discussion
of some of the risks and important factors that could cause actual
results to differ from such forward-looking statements, see the
risks and other factors detailed from time to time our Annual
Report on Form 10-K, Quarterly Reports on Form 10-Q, and other
filings with the U.S. 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.
VECTRUS,
INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
October 2,
|
|
September
27,
|
|
October 2,
|
|
September
27,
|
(In thousands,
except per share data)
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Revenue
|
|
$
|
352,415
|
|
|
$
|
359,873
|
|
|
$
|
1,040,212
|
|
|
$
|
1,017,368
|
|
Cost of
revenue
|
|
320,234
|
|
|
327,523
|
|
|
951,743
|
|
|
923,671
|
|
Selling, general, and
administrative expenses
|
|
17,344
|
|
|
19,934
|
|
|
58,718
|
|
|
59,697
|
|
Operating
income
|
|
14,837
|
|
|
12,416
|
|
|
29,751
|
|
|
34,000
|
|
Interest expense,
net
|
|
(939)
|
|
|
(1,907)
|
|
|
(3,988)
|
|
|
(4,811)
|
|
Income from
operations before income taxes
|
|
13,898
|
|
|
10,509
|
|
|
25,763
|
|
|
29,189
|
|
Income tax
expense
|
|
3,507
|
|
|
2,668
|
|
|
5,593
|
|
|
6,657
|
|
Net income
|
|
$
|
10,391
|
|
|
$
|
7,841
|
|
|
$
|
20,170
|
|
|
$
|
22,532
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share
|
|
|
|
|
|
|
|
|
Basic
|
|
$0.89
|
|
|
$0.68
|
|
|
$1.74
|
|
|
$1.97
|
|
Diluted
|
|
$0.88
|
|
|
$0.67
|
|
|
$1.72
|
|
|
$1.95
|
|
Weighted average
common shares
outstanding – basic
|
|
11,621
|
|
|
11,506
|
|
|
11,590
|
|
|
11,420
|
|
Weighted average
common shares
outstanding – diluted
|
|
11,751
|
|
|
11,678
|
|
|
11,743
|
|
|
11,566
|
|
VECTRUS,
INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
|
|
|
|
October 2,
|
|
December
31,
|
(In thousands,
except share information)
|
|
2020
|
|
2019
|
Assets
|
|
(Unaudited)
|
|
|
Current
assets
|
|
|
|
|
Cash
|
|
$
|
63,734
|
|
|
$
|
35,318
|
|
Receivables
|
|
268,143
|
|
|
269,144
|
|
Other current
assets
|
|
24,537
|
|
|
16,154
|
|
Total current
assets
|
|
356,414
|
|
|
320,616
|
|
Property,
plant, and equipment, net
|
|
19,256
|
|
|
18,844
|
|
Goodwill
|
|
262,130
|
|
|
261,983
|
|
Intangible
assets, net
|
|
11,902
|
|
|
14,926
|
|
Right-of-use
assets
|
|
9,970
|
|
|
14,654
|
|
Other
non-current assets
|
|
6,256
|
|
|
5,366
|
|
Total non-current
assets
|
|
309,514
|
|
|
315,773
|
|
Total
Assets
|
|
$
|
665,928
|
|
|
$
|
636,389
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Accounts
payable
|
|
$
|
146,458
|
|
|
$
|
148,015
|
|
Compensation
and other employee benefits
|
|
54,216
|
|
|
53,155
|
|
Short-term
debt
|
|
8,000
|
|
|
6,500
|
|
Other accrued
liabilities
|
|
38,572
|
|
|
37,409
|
|
Total current
liabilities
|
|
247,246
|
|
|
245,079
|
|
Long-term debt,
net
|
|
57,326
|
|
|
63,041
|
|
Deferred tax
liability
|
|
41,734
|
|
|
49,407
|
|
Other non-current
liabilities
|
|
35,817
|
|
|
19,997
|
|
Total non-current
liabilities
|
|
134,877
|
|
|
132,445
|
|
Total
liabilities
|
|
382,123
|
|
|
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; 11,621,709 and 11,523,691 shares
issued and outstanding as of October 2, 2020 and
December 31, 2019,
respectively
|
|
116
|
|
|
115
|
|
Additional paid in
capital
|
|
81,589
|
|
|
78,757
|
|
Retained
earnings
|
|
205,245
|
|
|
185,075
|
|
Accumulated other
comprehensive loss
|
|
(3,145)
|
|
|
(5,082)
|
|
Total shareholders'
equity
|
|
283,805
|
|
|
258,865
|
|
Total Liabilities
and Shareholders' Equity
|
|
$
|
665,928
|
|
|
$
|
636,389
|
|
VECTRUS,
INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
|
|
|
|
Nine Months
Ended
|
|
|
October 2,
|
|
September
27,
|
(In
thousands)
|
|
2020
|
|
2019
|
Operating
activities
|
|
|
|
|
Net income
|
|
$
|
20,170
|
|
|
$
|
22,532
|
|
Adjustments to
reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
Depreciation
expense
|
|
3,001
|
|
|
2,395
|
|
Amortization of
intangible assets
|
|
3,031
|
|
|
2,103
|
|
Loss on
disposal of property, plant, and equipment
|
|
63
|
|
|
2
|
|
Stock-based
compensation
|
|
6,499
|
|
|
5,952
|
|
Amortization of
debt issuance costs
|
|
286
|
|
|
301
|
|
Changes in assets and
liabilities:
|
|
|
|
|
Receivables
|
|
3,584
|
|
|
(7,540)
|
|
Other
assets
|
|
(8,826)
|
|
|
(5,820)
|
|
Accounts
payable
|
|
(1,988)
|
|
|
(14,458)
|
|
Deferred
taxes
|
|
(7,575)
|
|
|
(4,670)
|
|
Compensation
and other employee benefits
|
|
813
|
|
|
17,863
|
|
Other
liabilities
|
|
18,597
|
|
|
9,788
|
|
Net cash
provided by operating activities
|
|
37,655
|
|
|
28,448
|
|
Investing
activities
|
|
|
|
|
Purchases of
capital assets and intangibles
|
|
(3,348)
|
|
|
(14,440)
|
|
Proceeds from
the disposition of assets
|
|
—
|
|
|
5,400
|
|
Acquisition of
business, net of cash acquired
|
|
—
|
|
|
(43,963)
|
|
Net cash
(used in) investing activities
|
|
(3,348)
|
|
|
(53,003)
|
|
Financing
activities
|
|
|
|
|
Repayments of
long-term debt
|
|
(4,500)
|
|
|
(2,000)
|
|
Proceeds from
revolver
|
|
151,000
|
|
|
226,000
|
|
Repayments of
revolver
|
|
(151,000)
|
|
|
(226,000)
|
|
Proceeds from
exercise of stock options
|
|
59
|
|
|
3,467
|
|
Payments of
employee withholding taxes on share-based
compensation
|
|
(1,918)
|
|
|
(768)
|
|
Net cash
(used in) provided by financing activities
|
|
(6,359)
|
|
|
699
|
|
Exchange rate
effect on cash
|
|
468
|
|
|
(1,239)
|
|
Net change in
cash
|
|
28,416
|
|
|
(25,095)
|
|
Cash-beginning of
year
|
|
35,318
|
|
|
66,145
|
|
Cash-end of
period
|
|
$
|
63,734
|
|
|
$
|
41,050
|
|
Supplemental
disclosure of cash flow information:
|
|
|
|
|
Interest
paid
|
|
$
|
3,030
|
|
|
$
|
4,363
|
|
Income taxes
paid
|
|
$
|
12,570
|
|
|
$
|
5,076
|
|
Non-cash investing
activities:
|
|
|
|
|
Purchase of capital
assets on account
|
|
$
|
373
|
|
|
$
|
394
|
|
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, and unusual and
infrequent non-operating items, such as 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, and unusual and infrequent
non-operating items, such as M&A transaction and LOGCAP V
pre-operational legal costs, that impact current results but are
not related to our ongoing operations.
- 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 and unusual and infrequent non-operating items,
such as 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
October 2, 2020 As Reported
|
|
M&A Related
Costs
|
|
LOGCAP V
Pre-Operational Legal Costs
|
|
Three Months Ended
October 2, 2020 As Reported - Adjusted
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
352,415
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
352,415
|
|
Growth
|
|
(2.1)
|
%
|
|
|
|
|
|
(2.1)
|
%
|
Operating
income
|
|
14,837
|
|
|
121
|
|
|
38
|
|
|
14,996
|
|
Operating
margin
|
|
4.2
|
%
|
|
|
|
|
|
4.3
|
%
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
(939)
|
|
|
—
|
|
|
—
|
|
|
(939)
|
|
|
|
|
|
|
|
|
|
|
Income from
operations before income taxes
|
|
$
|
13,898
|
|
|
$
|
121
|
|
|
$
|
38
|
|
|
$
|
14,057
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
3,507
|
|
|
28
|
|
|
9
|
|
|
3,544
|
|
Income tax
rate
|
|
25.2
|
%
|
|
|
|
|
|
25.2
|
%
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
10,391
|
|
|
$
|
93
|
|
|
$
|
29
|
|
|
$
|
10,513
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding, diluted
|
|
11,751
|
|
|
|
|
|
|
11,751
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
|
$
|
0.88
|
|
|
$
|
0.01
|
|
|
$
|
—
|
|
|
$
|
0.89
|
|
|
|
|
|
|
|
|
|
|
EBITDA (Non-GAAP
Measures)
|
|
|
|
|
|
|
|
|
($ in
thousands)
|
|
Three Months Ended
October 2, 2020 As Reported
|
|
M&A Related
Costs
|
|
LOGCAP V
Pre-Operational Legal Costs
|
|
Three Months Ended
October 2, 2020 As Reported - Adjusted
|
Operating
Income
|
|
$
|
14,837
|
|
|
$
|
121
|
|
|
$
|
38
|
|
|
$
|
14,996
|
|
|
|
|
|
|
|
|
|
|
Add:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
2,033
|
|
|
—
|
|
|
—
|
|
|
2,033
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
$
|
16,870
|
|
|
$
|
121
|
|
|
$
|
38
|
|
|
$
|
17,029
|
|
EBITDA
Margin
|
|
4.8
|
%
|
|
|
|
|
|
4.8
|
%
|
|
Adjusted Net
Income, Adjusted Diluted Earnings Per Share (Non-GAAP
Measures)
|
|
|
|
|
|
|
|
|
($ in thousands,
except per share data)
|
|
Three Months Ended
September 27, 2019 As Reported
|
|
M&A Related
Costs
|
|
LOGCAP V
Pre-Operational Legal Costs
|
|
Three Months Ended
September 27, 2019 As Reported - Adjusted
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
359,873
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
359,873
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
12,416
|
|
|
420
|
|
|
197
|
|
|
13,033
|
|
Operating
margin
|
|
3.5
|
%
|
|
|
|
|
|
3.6
|
%
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
(1,907)
|
|
|
—
|
|
|
—
|
|
|
(1,907)
|
|
|
|
|
|
|
|
|
|
|
Income from
operations before income taxes
|
|
$
|
10,509
|
|
|
$
|
420
|
|
|
$
|
197
|
|
|
$
|
11,126
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
2,668
|
|
|
104
|
|
|
49
|
|
|
2,821
|
|
Income tax
rate
|
|
25.4
|
%
|
|
|
|
|
|
25.4
|
%
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
7,841
|
|
|
$
|
316
|
|
|
$
|
148
|
|
|
$
|
8,305
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding, diluted
|
|
11,678
|
|
|
|
|
|
|
11,678
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
|
$
|
0.67
|
|
|
|
|
|
|
$
|
0.71
|
|
|
|
|
|
|
|
|
|
|
EBITDA (Non-GAAP
Measures)
|
|
|
|
|
|
|
|
|
($ in
thousands)
|
|
Three Months Ended
September 27, 2019 As Reported
|
|
M&A Related
Costs
|
|
LOGCAP V
Pre-Operational Legal Costs
|
|
Three Months Ended
September 27, 2019 As Reported - Adjusted
|
Operating
Income
|
|
12,416
|
|
|
420
|
|
|
$
|
197
|
|
|
$
|
13,033
|
|
|
|
|
|
|
|
|
|
|
Add:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
1,683
|
|
|
—
|
|
|
—
|
|
|
1,683
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
$
|
14,099
|
|
|
$
|
420
|
|
|
$
|
197
|
|
|
$
|
14,716
|
|
EBITDA
Margin
|
|
3.9
|
%
|
|
|
|
|
|
4.1
|
%
|
|
|
|
|
|
|
|
|
|
|
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
|
|
Nine Months
Ended
|
($ In
thousands)
|
|
October
2, 2020
|
|
% of
Total
|
|
September
27, 2019
|
|
% of
Total
|
|
October 2,
2020
|
|
% of
Total
|
|
September
27, 2019
|
|
% of
Total
|
Army
|
|
$
|
236,267
|
|
|
67
|
%
|
|
$
|
245,817
|
|
|
68
|
%
|
|
$
|
711,173
|
|
|
68
|
%
|
|
$
|
698,377
|
|
|
69
|
%
|
Air Force
|
|
79,425
|
|
|
23
|
%
|
|
86,576
|
|
|
24
|
%
|
|
231,088
|
|
|
22
|
%
|
|
227,100
|
|
|
22
|
%
|
Navy
|
|
18,785
|
|
|
5
|
%
|
|
13,344
|
|
|
4
|
%
|
|
48,564
|
|
|
5
|
%
|
|
45,227
|
|
|
4
|
%
|
Other
|
|
17,938
|
|
|
5
|
%
|
|
14,136
|
|
|
4
|
%
|
|
49,387
|
|
|
5
|
%
|
|
46,664
|
|
|
5
|
%
|
Total
revenue
|
|
$
|
352,415
|
|
|
|
|
$
|
359,873
|
|
|
|
|
$
|
1,040,212
|
|
|
|
|
$
|
1,017,368
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue by
Contract Type
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
($ In
thousands)
|
|
October
2, 2020
|
|
% of
Total
|
|
September
27, 2019
|
|
% of
Total
|
|
October 2,
2020
|
|
% of
Total
|
|
September
27, 2019
|
|
% of
Total
|
Cost-plus and
cost-reimbursable ¹
|
|
$
|
249,484
|
|
|
71
|
%
|
|
$
|
272,810
|
|
|
76
|
%
|
|
$
|
748,543
|
|
|
72
|
%
|
|
$
|
781,024
|
|
|
77
|
%
|
Firm-fixed-price
|
|
102,931
|
|
|
29
|
%
|
|
87,063
|
|
|
24
|
%
|
|
291,669
|
|
|
28
|
%
|
|
236,344
|
|
|
23
|
%
|
Total
revenue
|
|
$
|
352,415
|
|
|
|
|
$
|
359,873
|
|
|
|
|
$
|
1,040,212
|
|
|
|
|
$
|
1,017,368
|
|
|
|
¹ Includes time and
material
contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue by
Contract
Relationship
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
($ In
thousands)
|
|
October
2, 2020
|
|
% of
Total
|
|
September
27, 2019
|
|
% of
Total
|
|
October 2,
2020
|
|
% of
Total
|
|
September
27, 2019
|
|
% of
Total
|
Prime
contractor
|
|
$
|
332,564
|
|
|
94
|
%
|
|
$
|
334,402
|
|
|
93
|
%
|
|
$
|
980,301
|
|
|
94
|
%
|
|
$
|
954,191
|
|
|
94
|
%
|
Subcontractor
|
|
19,851
|
|
|
6
|
%
|
|
25,471
|
|
|
7
|
%
|
|
59,911
|
|
|
6
|
%
|
|
63,177
|
|
|
6
|
%
|
Total
revenue
|
|
$
|
352,415
|
|
|
|
|
$
|
359,873
|
|
|
|
|
$
|
1,040,212
|
|
|
|
|
$
|
1,017,368
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue by
Geographic
Region
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
($ In
thousands)
|
|
October
2, 2020
|
|
% of
Total
|
|
September
27, 2019
|
|
% of
Total
|
|
October 2,
2020
|
|
% of
Total
|
|
September
27, 2019
|
|
% of
Total
|
Middle
East
|
|
$
|
224,934
|
|
|
64
|
%
|
|
$
|
244,142
|
|
|
68
|
%
|
|
$
|
679,633
|
|
|
65
|
%
|
|
$
|
695,626
|
|
|
68
|
%
|
United
States
|
|
89,400
|
|
|
25
|
%
|
|
77,228
|
|
|
21
|
%
|
|
254,640
|
|
|
24
|
%
|
|
219,512
|
|
|
22
|
%
|
Europe
|
|
38,081
|
|
|
11
|
%
|
|
38,503
|
|
|
11
|
%
|
|
105,939
|
|
|
11
|
%
|
|
102,230
|
|
|
10
|
%
|
Total
revenue
|
|
$
|
352,415
|
|
|
|
|
$
|
359,873
|
|
|
|
|
$
|
1,040,212
|
|
|
|
|
$
|
1,017,368
|
|
|
|
CONTACT:
Vectrus
|
Mike Smith,
CFA
|
719-637-5773
|
michael.smith@vectrus.com
|
View original content to download
multimedia:http://www.prnewswire.com/news-releases/vectrus-announces-third-quarter-2020-results-301170247.html
SOURCE Vectrus, Inc.