COLORADO SPRINGS, Colo.,
March 2, 2021 /PRNewswire/
-- Vectrus, Inc. (NYSE:VEC) announced fourth quarter and
full-year 2020 financial results.
"Our 2020 results reflect the operating and financial resiliency
of our business model, the dedication of our team to our clients'
missions, and the advancements we're making to lead in the
converged infrastructure market," said Chuck Prow, Chief Executive Officer of Vectrus.
"Our team did an outstanding job delivering high operational
readiness in support of our clients' critical infrastructures and
national security missions across the globe despite the challenging
environment."
"We ended 2020 on a high note, achieving several important
milestones during the fourth quarter," said Prow. "In December,
Vectrus was formally announced as the winner of the Operations,
Maintenance and Defense of Army Communications ("OMDAC-SWACA")
recompete. OMDAC-SWACA adds $882
million in backlog to Vectrus over a five-year period of
performance and will represent 30 years of client support
associated with this important mission. We are proud of the Army's
continued confidence in Vectrus to provide uninterrupted support,
reliability, and protection of the largest, most dynamic network
ever deployed in combat. We also reported record backlog and
adjusted EBITDA margin1 of $5.1
billion and 5.0%, respectively. In addition, we
reported strong operating cash flows of $50.9 million excluding the benefit from the
CARES Act, a new company high. Finally, on December 31, 2020, Vectrus acquired two
companies, Zenetex and HHB, that accelerate our converged
infrastructure strategy and enable us to deliver a more integrated
and comprehensive suite of solutions to our clients globally."
"Zenetex brings new capabilities including high-end logistics,
integrated security, mission-critical readiness services for vital
defense aviation programs, while expanding our engineering and
digital integration offerings," said Prow. "Importantly, the
acquisition brings unique access to new intelligence and foreign
military clients, providing key channels for future
growth."
Prow continued, "HHB provides integrated solutions that support
physical and digital infrastructures within the intelligence
community and enhances our capabilities in computer-aided facility
management, engineering, design, and planning. The company also
provides asset management, logistics, information technology and
cybersecurity solutions."
"I am delighted with the new talent, clients, and capabilities
that will enhance the diversification of our business. We look
forward to leveraging our combined capabilities to accelerate
growth and yield greater opportunities for the business," said
Prow.
Fourth Quarter 2020 Results
Fourth quarter 2020 revenue of $355.3
million was down year on year by 2.7% mainly due to COVID-19
pandemic-related deferrals of $25.8
million or 7.1%. Revenue was up $2.9
million sequentially or 0.8%.
Operating income was $13.7 million
or 3.9% margin in the fourth quarter of 2020. Adjusted operating
income1 was $15.8 million
or 4.4% margin. Fourth quarter operating margin was negatively
impacted by 10 basis points due to COVID-19 pandemic-related
deferrals.
EBITDA1 was $15.8
million or 4.5% margin for the fourth quarter 2020. Adjusted
EBITDA1 was $17.9 million
or a record 5.0% margin for the fourth quarter 2020. Fourth quarter
2020 EBITDA margin was negatively impacted by 10 basis points due
to COVID-19 pandemic-related deferrals.
Fully diluted EPS for the fourth quarter of 2020 was
$1.42. Diluted EPS was favorably
affected by the recognition of a tax benefit in the period relating
to 2018, 2019 and 2020 of $0.60.
Adjusted diluted EPS1 for the quarter was $1.18. Fully diluted EPS and Adjusted diluted
EPS1 were negatively impacted by $0.10 due to COVID-19 pandemic related
deferrals.
Full-Year 2020 Results
Full-year 2020 revenue was $1.396
billion up slightly year on year by 1.0%. COVID-19 adversely
impacted revenue $63 million or 4.6%
year on year.
Operating income for the year was $43.5
million or 3.1% margin. Full-year adjusted operating
income1 was $48.2 million
or 3.5% margin. Full-year operating margin was negatively impacted
by 20 basis points due to COVID-19 pandemic-related deferrals.
Full-year 2020 EBITDA1 was $51.6 million or 3.7% margin. Adjusted
EBITDA1 for the year was $56.3
million or 4.0%. Full-year EBITDA margin was negatively
impacted by 20 basis points due to COVID-19 pandemic-related
deferrals.
Full-year diluted EPS was $3.14. Diluted EPS was favorably affected
by the recognition of a tax benefit in the period relating to 2018,
2019 and 2020 of $0.60.
Adjusted diluted EPS1 for the year was $3.07 and includes a $0.22 tax benefit pertaining to 2020. Fully
diluted EPS and Adjusted diluted EPS1 was negatively
impacted by $0.39 due to COVID-19
pandemic-related deferrals.
"We announced a robust end to the year, reporting fourth quarter
2020 adjusted EBITDA margin1 of 5.0%, the highest level
in our company's history. This is a result of our continued focus
on automating our core program and support processes, cost
efficiencies, supply chain leverage and technology enhancements to
modernize our programs and support functions," said Susan Lynch, Senior Vice President and Chief
Financial Officer. "Additionally, we reported record operating cash
flows. Excluding the impact of the CARES Act, operating cash
flow conversion was 140% as compared to adjusted net
income1. Vectrus continues to generate significant
positive cash flows, a testament to the resiliency of our business
model."
"During the quarter and in conjunction with our acquisitions, we
also negotiated and expanded our credit facility, increasing the
amount of funding available under our revolver while improving our
covenants. This improved facility is indicative of our strong
financial position and the substantial visibility associated with
our $5.1 billion backlog. Our balance
sheet remains strong and provides flexibility for the company to
pursue organic and inorganic growth opportunities that align with
our strategy," said Lynch.
Cash provided by operating activities through December 31, 2020 was $64.1 million. The company benefitted from the
CARES Act tax deferrals by approximately $13.2 million.
Net debt at December 31, 2020 was
$112.1 million, up from $35.2 million at December
31, 2019 due to the acquisitions of Zenetex and HHB on
December 31, 2020. Total debt at
December 31, 2020 was $179.0 million, up $108.5
million from $70.5 million at
December 31, 2019. Cash at year-end
was $66.9 million, up $31.6 million from $35.3
million at December 31, 2019.
Total liquidity on December 31, 2020
was more than $220 million. Total
consolidated indebtedness to consolidated EBITDA1 (total
leverage ratio) was 2.05x.
Total backlog as of December 31,
2020 was $5.1 billion and
funded backlog was $0.9
billion. The trailing twelve-month book-to-bill was
2.1x as of December 31, 2020.
Establishing 2021 Guidance
Lynch continued, "In 2021, we will continue to phase in LOGCAP
V, integrate our recent acquisitions and continue organic expansion
associated with our campaigns and new business pipeline.
Additionally, we expect to see the initial benefits from the
implementation of our new enterprise IT platform, which is
streamlining, modernizing, and automating our core
processes. Guidance for 2021 is as follows:
$ millions, except
for EBITDA margins and per share amounts
|
2021
Guidance
|
Revenue
|
$1,645
|
to
|
$1,715
|
Adjusted EBITDA
Margin1
|
4.6%
|
to
|
5.0%
|
Adjusted Diluted
Earnings Per Share1
|
$3.48
|
to
|
$4.08
|
Net Cash Provided by
Operating Activities
|
$55.0
|
to
|
$65.0
|
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.
Fourth Quarter 2020 Conference Call
Management will conduct a conference call with analysts and
investors at 4:30 p.m. ET on Tuesday,
March 2, 2021. 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/1431/40096. 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
March 16, 2021, at 844-512-2921
(domestic) or 412-317-6671 (international) with passcode
13716448.
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
integration 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 2020, 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 "2021 Guidance"
above and other assumptions contained therein for purposes of such
guidance, other statements about our 2021 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.
CONTACT:
Vectrus
Mike Smith, CFA
719-637-5773
michael.smith@vectrus.com
VECTRUS,
INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
|
|
|
|
Year Ended December
31,
|
(In thousands,
except per share data)
|
|
2020
|
|
2019
|
|
2018
|
Revenue
|
|
$
|
1,395,529
|
|
|
$
|
1,382,525
|
|
|
$
|
1,279,036
|
|
Cost of
revenue
|
|
1,271,375
|
|
|
1,254,560
|
|
|
1,164,609
|
|
Selling, general and
administrative expenses
|
|
80,679
|
|
|
78,316
|
|
|
66,372
|
|
Operating
income
|
|
43,475
|
|
|
49,649
|
|
|
48,055
|
|
Interest expense,
net
|
|
(4,793)
|
|
|
(6,470)
|
|
|
(5,071)
|
|
Income from
operations before income taxes
|
|
38,682
|
|
|
43,179
|
|
|
42,984
|
|
Income tax
expense
|
|
1,731
|
|
|
10,003
|
|
|
7,898
|
|
Net income
|
|
$
|
36,951
|
|
|
$
|
33,176
|
|
|
$
|
35,086
|
|
|
|
|
|
|
|
|
Earnings per
share
|
|
|
|
|
|
|
Basic
|
|
$
|
3.19
|
|
|
$
|
2.90
|
|
|
$
|
3.13
|
|
Diluted
|
|
$
|
3.14
|
|
|
$
|
2.86
|
|
|
$
|
3.08
|
|
Weighted average
common shares outstanding - basic
|
|
11,599
|
|
|
11,444
|
|
|
11,224
|
|
Weighted average
common shares outstanding - diluted
|
|
11,751
|
|
|
11,612
|
|
|
11,378
|
|
VECTRUS,
INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
|
|
December
31,
|
(In thousands,
except share information)
|
|
2020
|
|
2019
|
Assets
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
66,949
|
|
|
$
|
35,318
|
|
Restricted
cash
|
|
1,778
|
|
|
—
|
|
Receivables
|
|
314,959
|
|
|
269,144
|
|
Other current
assets
|
|
24,702
|
|
|
16,154
|
|
Total current
assets
|
|
408,388
|
|
|
320,616
|
|
Property, plant, and
equipment, net
|
|
22,573
|
|
|
18,844
|
|
Goodwill
|
|
339,702
|
|
|
261,983
|
|
Intangible assets,
net
|
|
48,105
|
|
|
14,926
|
|
Right-of-use
assets
|
|
18,718
|
|
|
14,654
|
|
Other non-current
assets
|
|
6,325
|
|
|
5,366
|
|
Total non-current
assets
|
|
435,423
|
|
|
315,773
|
|
Total
Assets
|
|
$
|
843,811
|
|
|
$
|
636,389
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Accounts
payable
|
|
$
|
159,586
|
|
|
$
|
148,015
|
|
Compensation and other
employee benefits
|
|
79,568
|
|
|
53,155
|
|
Short-term
debt
|
|
8,600
|
|
|
6,500
|
|
Other accrued
liabilities
|
|
40,657
|
|
|
37,409
|
|
Total current
liabilities
|
|
288,411
|
|
|
245,079
|
|
Long-term debt,
net
|
|
168,751
|
|
|
63,041
|
|
Deferred tax
liability
|
|
39,386
|
|
|
49,407
|
|
Other non-current
liabilities
|
|
42,325
|
|
|
19,997
|
|
Total
non-current liabilities
|
|
250,462
|
|
|
132,445
|
|
Total
liabilities
|
|
538,873
|
|
|
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; 11,624,717 and 11,523,691
shares issued and outstanding as of December 31, 2020 and
2019,
respectively
|
|
116
|
|
|
115
|
|
Additional paid in
capital
|
|
82,823
|
|
|
78,757
|
|
Retained
earnings
|
|
222,026
|
|
|
185,075
|
|
Accumulated other
comprehensive loss
|
|
(27)
|
|
|
(5,082)
|
|
Total shareholders'
equity
|
|
304,938
|
|
|
258,865
|
|
Total Liabilities
and Shareholders' Equity
|
|
$
|
843,811
|
|
|
$
|
636,389
|
|
VECTRUS,
INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
Year Ended December
31,
|
(In
thousands)
|
|
2020
|
|
2019
|
|
2018
|
Operating
activities
|
|
|
|
|
|
|
Net income
|
|
$
|
36,951
|
|
|
$
|
33,176
|
|
|
$
|
35,086
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
Depreciation
expense
|
|
4,097
|
|
|
3,379
|
|
|
1,798
|
|
Amortization of
intangible assets
|
|
4,029
|
|
|
3,111
|
|
|
1,999
|
|
(Gain) loss on
disposal of property, plant, and equipment
|
|
(14)
|
|
|
62
|
|
|
348
|
|
Stock-based
compensation
|
|
9,445
|
|
|
8,262
|
|
|
4,096
|
|
Amortization of debt
issuance costs
|
|
386
|
|
|
404
|
|
|
426
|
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
Receivables
|
|
1,000
|
|
|
(21,053)
|
|
|
(24,646)
|
|
Other
assets
|
|
(7,232)
|
|
|
1,537
|
|
|
(8,193)
|
|
Accounts
payable
|
|
(2,680)
|
|
|
(11,733)
|
|
|
29,960
|
|
Deferred
taxes
|
|
(10,665)
|
|
|
(7,173)
|
|
|
475
|
|
Compensation and other
employee benefits
|
|
12,004
|
|
|
9,652
|
|
|
178
|
|
Other
liabilities
|
|
16,760
|
|
|
7,933
|
|
|
(1,471)
|
|
Net cash provided
by operating activities
|
|
64,081
|
|
|
27,557
|
|
|
40,056
|
|
Investing
activities
|
|
|
|
|
|
|
Purchases of capital
assets
|
|
(4,500)
|
|
|
(16,151)
|
|
|
(10,025)
|
|
Proceeds from the
disposition of assets
|
|
84
|
|
|
5,400
|
|
|
33
|
|
Acquisition of
business, net of cash acquired
|
|
(133,609)
|
|
|
(45,074)
|
|
|
(36,855)
|
|
Net cash (used in)
investing activities
|
|
(138,025)
|
|
|
(55,825)
|
|
|
(46,847)
|
|
Financing
activities
|
|
|
|
|
|
|
Repayments of long-term
debt
|
|
(6,500)
|
|
|
(4,500)
|
|
|
(4,000)
|
|
Proceeds from
revolver
|
|
314,000
|
|
|
333,500
|
|
|
207,000
|
|
Repayments of
revolver
|
|
(199,000)
|
|
|
(333,500)
|
|
|
(207,000)
|
|
Proceeds from exercise
of stock options
|
|
59
|
|
|
3,672
|
|
|
1,595
|
|
Payment of debt
issuance costs
|
|
(830)
|
|
|
—
|
|
|
—
|
|
Payments of employee
withholding taxes on share-based compensation
|
|
(1,955)
|
|
|
(1,068)
|
|
|
(880)
|
|
Net cash provided
by (used in) financing activities
|
|
105,774
|
|
|
(1,896)
|
|
|
(3,285)
|
|
Exchange rate
effect on cash
|
|
1,579
|
|
|
(663)
|
|
|
(1,232)
|
|
Net change in cash,
cash equivalents and restricted cash
|
|
33,409
|
|
|
(30,827)
|
|
|
(11,308)
|
|
Cash, cash
equivalents and restricted cash - beginning of year
|
|
35,318
|
|
|
66,145
|
|
|
77,453
|
|
Cash, cash
equivalents and restricted cash - end of year
|
|
$
|
68,727
|
|
|
$
|
35,318
|
|
|
$
|
66,145
|
|
|
|
|
|
|
|
|
Supplemental
Disclosure of Cash Flow Information:
|
|
|
|
|
|
|
Interest
paid
|
|
$
|
3,717
|
|
|
$
|
6,229
|
|
|
$
|
4,973
|
|
Income taxes
paid
|
|
$
|
14,520
|
|
|
$
|
4,511
|
|
|
$
|
11,588
|
|
Purchase of capital
assets on account
|
|
$
|
2,226
|
|
|
$
|
556
|
|
|
$
|
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, 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
December
31, 2020
As
Reported
|
|
M&A
Related
Costs
|
|
LOGCAP
V
Pre-
Operational
Legal
Costs
|
|
Tax
Adjustment
Related
to
Prior
Yrs
|
|
Three
Months
Ended
December
31, 2020
As
Reported
–
Adjusted
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
355,317
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
355,317
|
|
Growth
|
|
(2.7)
|
%
|
|
|
|
|
|
|
|
(2.7)
|
%
|
Operating
income
|
|
13,725
|
|
|
1,960
|
|
|
120
|
|
|
—
|
|
|
15,805
|
|
Operating
margin
|
|
3.9
|
%
|
|
|
|
|
|
|
|
4.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
(806)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(806)
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations before income taxes
|
|
$
|
12,919
|
|
|
$
|
1,960
|
|
|
$
|
120
|
|
|
$
|
—
|
|
|
$
|
14,999
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense/(benefit)
|
|
(3,862)
|
|
|
451
|
|
|
28
|
|
|
4,505
|
|
|
1,122
|
|
Income tax
rate
|
|
(29.9)
|
%
|
|
|
|
|
|
|
|
7.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
16,781
|
|
|
$
|
1,509
|
|
|
$
|
92
|
|
|
$
|
(4,505)
|
|
|
$
|
13,877
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding, diluted
|
|
11,782
|
|
|
|
|
|
|
|
|
11,782
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
|
$
|
1.42
|
|
|
$
|
0.13
|
|
|
$
|
0.01
|
|
|
$
|
(0.38)
|
|
|
$
|
1.18
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA (Non-GAAP
Measures)
|
|
|
|
|
|
|
|
|
|
|
($ in
thousands)
|
|
Three
Months
Ended
December
31, 2020
As
Reported
|
|
M&A
Related
Costs
|
|
LOGCAP
V
Pre-
Operational
Legal
Costs
|
|
Tax
Adjustment
Related
to
Prior
Yrs
|
|
Three
Months
Ended
December
31, 2020
As
Reported
–
Adjusted
|
Operating
Income
|
|
$
|
13,725
|
|
|
$
|
1,960
|
|
|
$
|
120
|
|
|
$
|
—
|
|
|
$
|
15,805
|
|
|
|
|
|
|
|
|
|
|
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
2,094
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,094
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
$
|
15,819
|
|
|
$
|
1,960
|
|
|
$
|
120
|
|
|
$
|
—
|
|
|
$
|
17,899
|
|
EBITDA
Margin
|
|
4.5
|
%
|
|
|
|
|
|
|
|
5.0
|
%
|
|
Adjusted Net
Income, Adjusted Diluted Earnings Per Share (Non-GAAP
Measures)
|
|
|
|
|
|
|
|
|
|
|
|
($ in thousands,
except per share data)
|
|
Three
Months
Ended
December
31, 2019
As
Reported
|
|
M&A
Related
Costs
|
|
LOGCAP
V
Pre-
Operational
Legal
Costs
|
|
Tax
Adjustment
Related
to
Prior
Yrs
|
|
Three
Months
Ended
December
31, 2019
As
Reported
–
Adjusted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
365,157
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
365,156
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
15,649
|
|
|
(11)
|
|
|
390
|
|
|
—
|
|
|
16,028
|
|
|
Operating
margin
|
|
4.3
|
%
|
|
|
|
|
|
|
|
4.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
(1,659)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,659)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations before income taxes
|
|
$
|
13,990
|
|
|
$
|
(11)
|
|
|
$
|
390
|
|
|
$
|
—
|
|
|
$
|
14,369
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
3,345
|
|
|
(3)
|
|
|
93
|
|
|
—
|
|
|
3,435
|
|
|
Income tax
rate
|
|
23.9
|
%
|
|
|
|
|
|
|
|
23.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
10,644
|
|
|
$
|
(8)
|
|
|
$
|
297
|
|
|
$
|
—
|
|
|
$
|
10,934
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding, diluted
|
|
11,728
|
|
|
|
|
|
|
|
|
11,728
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
|
$
|
0.91
|
|
|
$
|
—
|
|
|
$
|
0.03
|
|
|
$
|
—
|
|
|
$
|
0.93
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA (Non-GAAP
Measures)
|
|
|
|
|
|
|
|
|
|
|
|
($ in
thousands)
|
|
Three
Months
Ended
December
31, 2019
As
Reported
|
|
M&A
Related
Costs
|
|
LOGCAP
V
Pre-
Operational
Legal
Costs
|
|
Tax
Adjustment
Related
to
Prior
Yrs
|
|
Three
Months
Ended
December
31, 2019
As
Reported
–
Adjusted
|
|
Operating
Income
|
|
15,649
|
|
|
(11)
|
|
|
$
|
390
|
|
|
$
|
—
|
|
|
$
|
16,028
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
1,992
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,992
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
$
|
17,641
|
|
|
$
|
(11)
|
|
|
$
|
390
|
|
|
$
|
—
|
|
|
$
|
18,020
|
|
|
EBITDA
Margin
|
|
4.8
|
%
|
|
|
|
|
|
|
|
4.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Net
Income, Adjusted Diluted Earnings Per Share (Non-GAAP
Measures)
|
|
|
|
|
|
|
|
|
|
|
|
($ in thousands,
except per share data)
|
|
Year
Ended
December
31, 2020
As
Reported
|
|
M&A
Related
Costs
|
|
LOGCAP
V
Pre-
Operational
Legal
Costs
|
|
Tax
Adjustment
Related
to
Prior
Yrs
|
|
Year
Ended
December
31, 2020
As
Reported
–
Adjusted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
1,395,529
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,395,529
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
43,475
|
|
|
4,367
|
|
|
345
|
|
|
—
|
|
|
48,187
|
|
|
Operating
margin
|
|
3.1
|
%
|
|
|
|
|
|
|
|
3.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
(4,793)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,793)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations before income taxes
|
|
$
|
38,682
|
|
|
$
|
4,367
|
|
|
$
|
345
|
|
|
$
|
—
|
|
|
$
|
43,394
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
1,731
|
|
|
1,004
|
|
|
76
|
|
|
4,505
|
|
|
7,316
|
|
|
Income tax
rate
|
|
4.5
|
%
|
|
|
|
|
|
|
|
16.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
36,951
|
|
|
$
|
3,363
|
|
|
$
|
269
|
|
|
$
|
(4,505)
|
|
|
$
|
36,078
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding, diluted
|
|
11,751
|
|
|
|
|
|
|
|
|
11,751
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
|
$
|
3.14
|
|
|
$
|
0.29
|
|
|
$
|
0.02
|
|
|
$
|
(0.38)
|
|
|
$
|
3.07
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA (Non-GAAP
Measures)
|
|
|
|
|
|
|
|
|
|
|
|
($ in
thousands)
|
|
Year
Ended
December
31, 2020
As
Reported
|
|
M&A
Related
Costs
|
|
LOGCAP
V
Pre-
Operational
Legal
Costs
|
|
Tax
Adjustment
Related
to
Prior
Yrs
|
|
Year
Ended
December
31, 2020
As
Reported
–
Adjusted
|
|
Operating
Income
|
|
$
|
43,475
|
|
|
$
|
4,367
|
|
|
$
|
345
|
|
|
$
|
—
|
|
|
$
|
48,187
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
8,126
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,126
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
$
|
51,601
|
|
|
$
|
4,367
|
|
|
$
|
345
|
|
|
$
|
—
|
|
|
$
|
56,313
|
|
|
EBITDA
Margin
|
|
3.7
|
%
|
|
|
|
|
|
|
|
4.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Net
Income, Adjusted Diluted Earnings Per Share (Non-GAAP
Measures)
|
|
|
|
|
|
|
|
|
|
|
|
($ in thousands,
except per share data)
|
|
Year
Ended
December
31, 2019
As
Reported
|
|
M&A
Related
Costs
|
|
LOGCAP
V
Pre-
Operational
Legal
Costs
|
|
Tax
Adjustment
Related
to
Prior
Yrs
|
|
Year
Ended
December
31, 2019
As
Reported
–
Adjusted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
1,382,525
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,382,525
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
49,649
|
|
|
2,121
|
|
|
1,166
|
|
|
—
|
|
|
52,936
|
|
|
Operating
margin
|
|
3.6
|
%
|
|
|
|
|
|
|
|
3.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
(6,470)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6,470)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations before income taxes
|
|
$
|
43,179
|
|
|
$
|
2,121
|
|
|
$
|
1,166
|
|
|
$
|
—
|
|
|
$
|
46,466
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
10,003
|
|
|
490
|
|
|
269
|
|
|
—
|
|
|
10,762
|
|
|
Income tax
rate
|
|
23.2
|
%
|
|
|
|
|
|
|
|
23.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
33,176
|
|
|
$
|
1,631
|
|
|
$
|
897
|
|
|
$
|
—
|
|
|
$
|
35,704
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding, diluted
|
|
11,612
|
|
|
|
|
|
|
|
|
11,612
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
|
$
|
2.86
|
|
|
$
|
0.14
|
|
|
$
|
0.08
|
|
|
$
|
—
|
|
|
$
|
3.07
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA (Non-GAAP
Measures)
|
|
|
|
|
|
|
|
|
|
|
|
($ in
thousands)
|
|
Year
Ended
December
31, 2019
As
Reported
|
|
M&A
Related
Costs
|
|
LOGCAP
V
Pre-
Operational
Legal
Costs
|
|
Tax
Adjustment
Related
to
Prior
Yrs
|
|
Year
Ended
December
31, 2019
As
Reported
–
Adjusted
|
|
Operating
Income
|
|
$
|
49,649
|
|
|
$
|
2,121
|
|
|
$
|
1,166
|
|
|
$
|
—
|
|
|
$
|
52,936
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
6,490
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,490
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
$
|
56,139
|
|
|
$
|
2,121
|
|
|
$
|
1,166
|
|
|
$
|
—
|
|
|
$
|
59,426
|
|
|
EBITDA
Margin
|
|
4.1
|
%
|
|
|
|
|
|
|
|
4.3
|
%
|
|
(In
thousands)
|
|
Year Ended
December 31,
2020 As
Reported
|
|
Six Months
Ended July 3,
2020 Advantor
|
|
Year Ended
December 31,
2020 As Reported
- Organic
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
1,395,529
|
|
|
$
|
21,473
|
|
|
$
|
1,374,056
|
|
|
|
|
|
|
|
|
($ In
thousands)
|
|
Year Ended
December 31,
2019 As
Reported
|
|
Six Months
Ended June 28,
2019 Advantor
|
|
Year Ended
December 31,
2019 As Reported
- Organic
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
1,382,525
|
|
|
$
|
—
|
|
|
$
|
1,382,525
|
|
|
|
|
|
|
|
|
Organic Revenue
$
|
|
|
|
|
|
$
|
(8,469)
|
|
Organic Revenue
%
|
|
|
|
|
|
(0.6)
|
%
|
SUPPLEMENTAL INFORMATION
Revenue by client branch, contract type, contract relationship,
and geographic region for the periods presented below was as
follows:
Revenue by
Client
|
|
|
|
|
|
|
|
|
|
Year Ended December
31,
|
(In
thousands)
|
|
2020
|
|
%
|
|
2019
|
|
%
|
|
2018
|
|
%
|
Army
|
|
$
|
965,558
|
|
|
69
|
%
|
|
$
|
958,582
|
|
|
69
|
%
|
|
$
|
934,427
|
|
|
73
|
%
|
Air Force
|
|
299,272
|
|
|
21
|
%
|
|
306,767
|
|
|
22
|
%
|
|
259,511
|
|
|
20
|
%
|
Navy
|
|
68,748
|
|
|
5
|
%
|
|
56,236
|
|
|
4
|
%
|
|
38,534
|
|
|
3
|
%
|
Other
|
|
61,951
|
|
|
5
|
%
|
|
60,940
|
|
|
5
|
%
|
|
46,564
|
|
|
4
|
%
|
Total
revenue
|
|
$
|
1,395,529
|
|
|
|
|
$
|
1,382,525
|
|
|
|
|
$
|
1,279,036
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue by
Contract Type
|
|
|
|
|
|
|
|
|
|
Year Ended December
31,
|
(In
thousands)
|
|
2020
|
|
%
|
|
2019
|
|
%
|
|
2018
|
|
%
|
Cost-plus and
cost-reimbursable¹
|
|
$
|
991,535
|
|
|
71
|
%
|
|
$
|
1,048,015
|
|
|
76
|
%
|
|
$
|
995,415
|
|
|
78
|
%
|
Firm-fixed-price
|
|
403,994
|
|
|
29
|
%
|
|
334,510
|
|
|
24
|
%
|
|
283,621
|
|
|
22
|
%
|
Total
revenue
|
|
$
|
1,395,529
|
|
|
|
|
$
|
1,382,525
|
|
|
|
|
$
|
1,279,036
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
¹ Includes time and
material contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue by
Contract Relationship
|
|
|
|
|
|
|
|
|
|
Year Ended December
31,
|
(In
thousands)
|
|
2020
|
|
%
|
|
2019
|
|
%
|
|
2018
|
|
%
|
Prime
contractor
|
|
$
|
1,324,628
|
|
|
95
|
%
|
|
$
|
1,312,928
|
|
|
95
|
%
|
|
$
|
1,200,726
|
|
|
94
|
%
|
Subcontractor
|
|
70,901
|
|
|
5
|
%
|
|
69,597
|
|
|
5
|
%
|
|
78,310
|
|
|
6
|
%
|
Total
revenue
|
|
$
|
1,395,529
|
|
|
|
|
$
|
1,382,525
|
|
|
|
|
$
|
1,279,036
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue by
Geographic Region
|
|
|
|
|
|
|
|
Year Ended December
31,
|
(In
thousands)
|
|
2020
|
|
%
|
|
2019
|
|
%
|
|
2018
|
|
%
|
Middle
East
|
|
$
|
906,470
|
|
|
65
|
%
|
|
$
|
939,685
|
|
|
68
|
%
|
|
$
|
889,620
|
|
|
70
|
%
|
United
States
|
|
334,128
|
|
|
24
|
%
|
|
304,925
|
|
|
22
|
%
|
|
269,482
|
|
|
21
|
%
|
Europe
|
|
154,931
|
|
|
11
|
%
|
|
137,915
|
|
|
10
|
%
|
|
119,934
|
|
|
9
|
%
|
Total
revenue
|
|
$
|
1,395,529
|
|
|
|
|
$
|
1,382,525
|
|
|
|
|
$
|
1,279,036
|
|
|
|
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multimedia:http://www.prnewswire.com/news-releases/vectrus-announces-fourth-quarter-and-full-year-2020-results-301238965.html
SOURCE Vectrus, Inc.