COLORADO SPRINGS, Colo.,
May 11, 2021 /PRNewswire/ -- Vectrus,
Inc. (NYSE:VEC) announced first quarter 2021 financial results.
"Vectrus reported strong first quarter results driven by the
continued momentum in the execution of our strategy," said
Chuck Prow, Chief Executive Officer
of Vectrus.
"During the quarter, revenue grew 23% year-over-year, with
organic growth of 4%," said Prow. "Revenue growth was driven by our
recent acquisitions, continued phase-in of LOGCAP V, as well as the
progress made in executing growth in our core programs.
Additionally, adjusted EBITDA margin increased 60 basis points
year-over-year."
"Our growth-related activities and efforts to make Vectrus the
premier converged infrastructure company continue to experience
positive momentum," said Prow. "During the quarter Vectrus
was awarded the CBRN integrated defense prime OTA contract, which
was based on our well-known capabilities in sensor integration,
Internet of Things, and perimeter security solutions. The award is
valued at $19 million over two years
and extends Vectrus' IoT, machine learning and data analytics
offerings. This effort is co-sponsored between the DoD and
Department of Homeland Security and provides sensor integration as
well as data integration and analysis related to threat detection
domestically. This program brings our digitally integrated
solutions, that were originally deployed overseas, to the U.S. to
support protection of the Homeland. We are pleased to have been
selected for such an important mission and look forward to the
opportunity to bring our unique and differentiated solutions
utilized by the DoD to a new client and market. This work is
illustrative of how Vectrus is building capabilities and inserting
technology to deliver a more integrated and comprehensive suite of
solutions in support of the converged infrastructure market."
Prow continued, "We are also continuing to execute our IDIQ
portfolio by leveraging our converged solutions, geographic
footprint, and ability to provide complex mission-critical IT
services. During the quarter, we won a $22
million five-year task order under the Army's ITES-3S IDIQ
to provide enterprise IT services to the U.S. Army Corp of
Engineers across Europe. This is
an important win for Vectrus which leverages the more than 30 years
of experience we have in providing a full range of operations and
maintenance, IT support and supply services with our Army OPMAS-E
contract in Europe. This task
order provides Vectrus with an opportunity to grow its' presence in
support of the 37,000 U.S. Army Corp of Engineers civilians and
soldiers that are delivering vital engineering services in over 130
countries worldwide."
"Last quarter we completed two strategic acquisitions that added
key clients, capabilities, and accelerated our converged
infrastructure strategy," said Prow. "The integration of these
acquisitions is well underway and on track with our plan. We remain
excited about the talent, combined capabilities, and opportunities
for accelerated growth."
"Regarding LOGCAP V, we continue to phase-in and anticipate
being at full operational capability in Iraq by June," said Prow. "In terms of
INDOPACOM, the phase-in process remains elongated due to base
access restrictions associated with COVID-19; but we continue to
anticipate phase-in later this year with full operational
capability in early 2022."
First Quarter 2021 Results
First quarter 2021 revenue of $434.0
million was up $82.3 million
dollars year on year or 23.4% as compared to the same period
last year. Revenue grew by $68.9
million year on year as a result of the companies' two
acquisitions on December 31, 2020 and
grew $13.4 million
organically.
Operating income was $16.5 million
or 3.8% margin in the first quarter of 2021. Adjusted
operating income1 was $19.1
million or 4.4% margin.
EBITDA1 was $20.5
million or 4.7% margin and Adjusted EBITDA1 was
$20.7 million or 4.8% margin for the
first quarter of 2021. Margin improved by 60 basis points for both
EBITDA and Adjusted EBITDA due to the company's two acquisitions
and improved operating performance.
Fully diluted EPS for the first quarter of 2021 was $1.02 as compared to $0.74
cents in the same period last year. Adjusted diluted
EPS1, which adds back amortization of acquired
intangible assets, was $1.20 for the
quarter, as compared to $0.82 cents
in the prior year. The improvement in EPS is due to the
company's two acquisitions, improved operating performance, and
lower tax expense.
"Our first quarter results demonstrate that our strategic
execution is resulting in a more capable and diverse company," said
Susan Lynch, Senior Vice President
and Chief Financial Officer. "For example, our revenue with the
Navy now comprises 13% of total revenue compared to 4% during the
same time last year. Our geographic and contract mix have also
diversified."
Lynch continued, "We are very pleased with our first quarter
operating performance, the contributions from our recent
December 31, 2020 acquisitions, and
our overall progress in becoming a higher value, growth-oriented
platform. We expect to continue to derive synergies from our
acquisitions on both the top and bottom line while achieving
greater operational efficiencies from our new ERP systems."
Cash used in operating activities through April 2, 2021 was $21.7
million and was a result of timing and the strong cash
performance in the fourth quarter of 2020.
Net debt at April 2, 2021 was
$138.7 million, up $100.9 million from April
3, 2020 due to the acquisitions of Zenetex and HHB on
December 31, 2020. Total debt at
April 2, 2021 was $177.0 million, down $7
million from $184.0 million at
April 3, 2020. Cash at quarter-end
was $38.3 million. Total consolidated
indebtedness to consolidated EBITDA1 (total leverage
ratio) was 2.0x.
Total backlog as of April 2, 2021
was $4.5 billion and funded backlog
was $0.9 billion. The trailing
twelve-month book-to-bill was 0.8x as of April 2, 2021.
Increasing 2021 Guidance Mid-Point
Lynch continued, "In light of our strong first quarter
performance we are increasing the low-end of the guidance range."
Guidance for 2021 is as follows:
$ millions, except
for EBITDA margins and per share amounts
|
Previous 2021
Guidance
|
Updated 2021
Guidance
|
Updated
2021
Mid-Point
|
Revenue
|
$1,645
|
to
|
$1,715
|
$1,680
|
to
|
$1,715
|
$1,698
|
Adjusted EBITDA
Margin1
|
4.6%
|
to
|
5.0%
|
4.8%
|
to
|
5.0%
|
4.9%
|
Adjusted Diluted
Earnings Per Share1
|
$4.25
|
to
|
$4.85
|
$4.55
|
to
|
$4.85
|
$4.70
|
Net Cash Provided by
Operating Activities
|
$55.0
|
to
|
$65.0
|
$58.0
|
to
|
$65.0
|
$61.5
|
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 2021 Conference Call
Management will conduct a conference call with analysts and
investors at 4:30 p.m. ET on Tuesday,
May 11, 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/1431/41306. 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 25, 2021, at 844-512-2921
(domestic) or 412-317-6671 (international) with passcode
13719138.
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 9,200 employees spanning 206
locations in 27 countries. In 2020, 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 "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
mike.smith@vectrus.com
VECTRUS,
INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
|
|
|
|
Three Months
Ended
|
|
|
|
April 2,
|
|
April 3,
|
|
(In thousands, except
per share data)
|
|
2021
|
|
2020
|
|
Revenue
|
|
$
|
434,004
|
|
|
$
|
351,734
|
|
Cost of
revenue
|
|
|
393,648
|
|
|
|
319,693
|
|
Selling, general, and
administrative expenses
|
|
|
23,823
|
|
|
|
19,558
|
|
Operating
income
|
|
|
16,533
|
|
|
|
12,483
|
|
Interest expense,
net
|
|
|
(1,932)
|
|
|
|
(1,703)
|
|
Income from
operations before income taxes
|
|
|
14,601
|
|
|
|
10,780
|
|
Income tax
expense
|
|
|
2,553
|
|
|
|
2,112
|
|
Net income
|
|
$
|
12,048
|
|
|
$
|
8,668
|
|
|
|
|
|
|
|
Earnings per
share
|
|
|
|
|
|
Basic
|
|
$
|
1.03
|
|
|
$
|
0.75
|
|
Diluted
|
|
$
|
1.02
|
|
|
$
|
0.74
|
|
Weighted average
common shares outstanding - basic
|
|
|
11,648
|
|
|
|
11,545
|
|
Weighted average
common shares outstanding - diluted
|
|
|
11,827
|
|
|
|
11,745
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
VECTRUS,
INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
|
|
|
|
April 2,
|
|
December
31,
|
(In thousands,
except share information)
|
|
2021
|
|
2020
|
Assets
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
38,347
|
|
|
$
|
66,949
|
|
Restricted
cash
|
|
1,778
|
|
|
1,778
|
|
Receivables
|
|
359,182
|
|
|
314,959
|
|
Other current
assets
|
|
27,319
|
|
|
24,702
|
|
Total current
assets
|
|
426,626
|
|
|
408,388
|
|
Property, plant, and
equipment, net
|
|
21,410
|
|
|
22,573
|
|
Goodwill
|
|
315,401
|
|
|
339,702
|
|
Intangible assets,
net
|
|
71,254
|
|
|
48,105
|
|
Right-of-use
assets
|
|
20,802
|
|
|
18,718
|
|
Other non-current
assets
|
|
6,839
|
|
|
6,325
|
|
Total non-current
assets
|
|
435,706
|
|
|
435,423
|
|
Total
Assets
|
|
$
|
862,332
|
|
|
$
|
843,811
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Accounts
payable
|
|
$
|
197,447
|
|
|
$
|
159,586
|
|
Compensation and other
employee benefits
|
|
56,349
|
|
|
79,568
|
|
Short-term
debt
|
|
9,200
|
|
|
8,600
|
|
Other accrued
liabilities
|
|
41,249
|
|
|
40,657
|
|
Total current
liabilities
|
|
304,245
|
|
|
288,411
|
|
Long-term debt,
net
|
|
166,383
|
|
|
168,751
|
|
Deferred tax
liability
|
|
41,999
|
|
|
39,386
|
|
Other non-current
liabilities
|
|
35,239
|
|
|
42,325
|
|
Total non-current
liabilities
|
|
243,621
|
|
|
250,462
|
|
Total
liabilities
|
|
547,866
|
|
|
538,873
|
|
Commitments and
contingencies (Note 10)
|
|
|
|
|
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; 11,700,232 and 11,624,717 shares issued and
outstanding as of April 2, 2021 and December 31, 2020,
respectively
|
|
117
|
|
|
116
|
|
Additional paid in
capital
|
|
82,735
|
|
|
82,823
|
|
Retained
earnings
|
|
234,074
|
|
|
222,026
|
|
Accumulated other
comprehensive loss
|
|
(2,460)
|
|
|
(27)
|
|
Total shareholders'
equity
|
|
314,466
|
|
|
304,938
|
|
Total Liabilities
and Shareholders' Equity
|
|
$
|
862,332
|
|
|
$
|
843,811
|
|
VECTRUS,
INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
|
|
|
|
Three Months
Ended
|
|
|
April 2,
|
|
April 3,
|
(In
thousands)
|
|
2021
|
|
2020
|
Operating
activities
|
|
|
|
|
Net income
|
|
$
|
12,048
|
|
|
$
|
8,668
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
Depreciation
expense
|
|
1,548
|
|
|
996
|
|
Amortization of
intangible assets
|
|
2,450
|
|
|
1,015
|
|
Loss on disposal of
property, plant, and equipment
|
|
43
|
|
|
—
|
|
Stock-based
compensation
|
|
2,622
|
|
|
2,367
|
|
Amortization of debt
issuance costs
|
|
232
|
|
|
99
|
|
Changes in assets and
liabilities:
|
|
|
|
|
Receivables
|
|
(46,544)
|
|
|
3,942
|
|
Other
assets
|
|
(3,785)
|
|
|
(5,715)
|
|
Accounts
payable
|
|
42,054
|
|
|
(162)
|
|
Deferred
taxes
|
|
2,716
|
|
|
(1,522)
|
|
Compensation and other
employee benefits
|
|
(22,818)
|
|
|
(9,733)
|
|
Other
liabilities
|
|
(12,295)
|
|
|
1,182
|
|
Net cash (used in)
provided by operating activities
|
|
(21,729)
|
|
|
1,137
|
|
Investing
activities
|
|
|
|
|
Purchases of capital
assets
|
|
(2,611)
|
|
|
(917)
|
|
Net cash (used in)
investing activities
|
|
(2,611)
|
|
|
(917)
|
|
Financing
activities
|
|
|
|
|
Repayments of
long-term debt
|
|
(2,000)
|
|
|
(1,500)
|
|
Proceeds from
revolver
|
|
110,000
|
|
|
144,000
|
|
Repayments of
revolver
|
|
(110,000)
|
|
|
(29,000)
|
|
Proceeds from exercise
of stock options
|
|
113
|
|
|
1
|
|
Payments of employee
withholding taxes on share-based compensation
|
|
(2,184)
|
|
|
(1,787)
|
|
Net cash (used in)
provided by financing activities
|
|
(4,071)
|
|
|
111,714
|
|
Exchange rate
effect on cash
|
|
(191)
|
|
|
(1,080)
|
|
Net change in cash,
cash equivalents and restricted cash
|
|
(28,602)
|
|
|
110,854
|
|
Cash, cash
equivalents and restricted cash-beginning of year
|
|
68,727
|
|
|
35,318
|
|
Cash, cash
equivalents and restricted cash-end of period
|
|
$
|
40,125
|
|
|
$
|
146,172
|
|
|
|
|
|
|
Supplemental
disclosure of cash flow information:
|
|
|
|
|
Interest
paid
|
|
$
|
1,371
|
|
|
$
|
1,469
|
|
Income taxes
(refunded) paid
|
|
$
|
(97)
|
|
|
$
|
36
|
|
Purchase of capital
assets on account
|
|
$
|
(132)
|
|
|
$
|
(606)
|
|
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, and amortization of acquired
intangible assets 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, and amortization of acquired
intangible assets 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 April
2, 2021 As
Reported
|
|
M&A
Related
Costs
|
|
LOGCAP V
Pre-
Operational
Legal Costs
|
|
Amortization
of Acquired
Intangible
Assets
|
|
Three
Months
Ended April
2, 2021 As
Reported -
Adjusted
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
434,004
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
433,004
|
|
Growth
|
|
23.4
|
%
|
|
|
|
|
|
|
|
23.4
|
%
|
Operating
income
|
|
16,533
|
|
|
—
|
|
|
157
|
|
|
2,450
|
|
|
19,140
|
|
Operating
margin
|
|
3.8
|
%
|
|
|
|
|
|
|
|
4.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
(1,932)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,932)
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations before income taxes
|
|
$
|
14,601
|
|
|
$
|
—
|
|
|
$
|
157
|
|
|
$
|
2,450
|
|
|
$
|
17,208
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
2,553
|
|
|
—
|
|
|
27
|
|
|
428
|
|
|
3,008
|
|
Income tax
rate
|
|
17.5
|
%
|
|
|
|
|
|
|
|
17.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
12,048
|
|
|
$
|
—
|
|
|
$
|
130
|
|
|
$
|
2,022
|
|
|
$
|
14,200
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding, diluted
|
|
11,827
|
|
|
|
|
|
|
|
|
11,827
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
|
$
|
1.02
|
|
|
$
|
—
|
|
|
$
|
0.01
|
|
|
$
|
0.17
|
|
|
$
|
1.20
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA (Non-GAAP
Measures)
|
|
|
|
|
|
|
|
|
|
|
($ in
thousands)
|
|
Three
Months
Ended April
2, 2021 As
Reported
|
|
M&A
Related
Costs
|
|
LOGCAP V
Pre-
Operational
Legal Costs
|
|
Amortization
of Acquired
Intangible
Assets
|
|
Three
Months
Ended April
2, 2021 As
Reported -
Adjusted
|
Operating
Income
|
|
$
|
16,533
|
|
|
$
|
—
|
|
|
$
|
157
|
|
|
$
|
2,450
|
|
|
$
|
19,140
|
|
|
|
|
|
|
|
|
|
|
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
3,998
|
|
|
—
|
|
|
—
|
|
|
(2,450)
|
|
|
1,548
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
$
|
20,531
|
|
|
$
|
—
|
|
|
$
|
157
|
|
|
$
|
—
|
|
|
$
|
20,688
|
|
EBITDA
Margin
|
|
4.7
|
%
|
|
|
|
|
|
|
|
4.8
|
%
|
|
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
Costs
|
|
LOGCAP V
Pre-
Operational
Legal Costs
|
|
Amortization
of Acquired
Intangible
Assets
|
|
Three
Months
Ended April
3, 2020 As
Reported -
Adjusted
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
351,734
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
351,734
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
$
|
12,483
|
|
|
$
|
—
|
|
|
$
|
141
|
|
|
$
|
1,015
|
|
|
$
|
13,639
|
|
Operating
margin
|
|
3.5
|
%
|
|
|
|
|
|
|
|
3.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
$
|
(1,703)
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(1,703)
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations before income taxes
|
|
$
|
10,780
|
|
|
$
|
—
|
|
|
$
|
141
|
|
|
$
|
1,015
|
|
|
$
|
11,936
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
$
|
2,112
|
|
|
$
|
—
|
|
|
$
|
28
|
|
|
$
|
171
|
|
|
$
|
2,311
|
|
Income tax
rate
|
|
19.6
|
%
|
|
|
|
|
|
|
|
19.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
8,668
|
|
|
$
|
—
|
|
|
$
|
113
|
|
|
$
|
844
|
|
|
$
|
9,625
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding, diluted
|
|
11,745
|
|
|
|
|
|
|
|
|
11,745
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
|
$
|
0.74
|
|
|
$
|
—
|
|
|
$
|
0.01
|
|
|
$
|
0.07
|
|
|
$
|
0.82
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA (Non-GAAP
Measures)
|
|
|
|
|
|
|
|
|
|
|
($ in
thousands)
|
|
Three
Months
Ended April
3, 2020 As
Reported
|
|
M&A
Related
Costs
|
|
LOGCAP V
Pre-
Operational
Legal Costs
|
|
Amortization
of Acquired
Intangible
Assets
|
|
Three
Months
Ended April
3, 2020 As
Reported -
Adjusted
|
Operating
Income
|
|
$
|
12,483
|
|
|
$
|
—
|
|
|
$
|
141
|
|
|
$
|
1,015
|
|
|
$
|
13,639
|
|
|
|
|
|
|
|
|
|
|
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
$
|
2,011
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(1,015)
|
|
|
$
|
996
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
$
|
14,494
|
|
|
$
|
—
|
|
|
$
|
141
|
|
|
$
|
—
|
|
|
$
|
14,635
|
|
EBITDA
Margin
|
|
4.1
|
%
|
|
|
|
|
|
|
|
4.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
($ In
thousands)
|
|
Three Months
Ended April 2,
2021 As
Reported
|
|
Three Months
Ended April 2,
2021 Zenetex &
HHB
|
|
Three Months
Ended April 2,
2021 As
Reported
- Organic
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
434,004
|
|
|
$
|
68,869
|
|
|
$
|
365,135
|
|
|
|
|
|
|
|
|
($ In
thousands)
|
|
Three Months
Ended April 3,
2020 As
Reported
|
|
Three Months
Ended April 3,
2020 Zenetex &
HHB
|
|
Three Months
Ended April 3,
2020 As Reported
- Organic
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
351,734
|
|
|
$
|
—
|
|
|
$
|
351,734
|
|
|
|
|
|
|
|
|
Organic Revenue
$
|
|
|
|
|
|
$
|
13,401
|
|
Organic Revenue
%
|
|
|
|
|
|
3.8
|
%
|
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
|
|
|
|
April 2.
|
|
|
|
April 3,
|
|
|
|
(In
thousands)
|
|
2021
|
|
%
|
|
2020
|
|
%
|
|
Army
|
|
$
|
257,349
|
|
|
59
|
%
|
|
$
|
247,555
|
|
|
70
|
%
|
|
Air Force
|
|
78,170
|
|
|
18
|
%
|
|
73,341
|
|
|
21
|
%
|
|
Navy
|
|
56,427
|
|
|
13
|
%
|
|
15,237
|
|
|
4
|
%
|
|
Other
|
|
42,058
|
|
|
10
|
%
|
|
15,601
|
|
|
5
|
%
|
|
Total
revenue
|
|
$
|
434,004
|
|
|
|
|
$
|
351,734
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue by
Contract Type
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
April 2,
|
|
|
|
April 3,
|
|
|
|
(In
thousands)
|
|
2021
|
|
%
|
|
2020
|
|
%
|
|
Cost-plus and
cost-reimbursable ¹
|
|
$
|
305,247
|
|
|
70
|
%
|
|
$
|
256,319
|
|
|
73
|
%
|
|
Firm-fixed-price
|
|
128,757
|
|
|
30
|
%
|
|
95,415
|
|
|
27
|
%
|
|
Total
revenue
|
|
$
|
434,004
|
|
|
|
|
$
|
351,734
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
¹ Includes time and
material contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue by
Contract Relationship
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
April 2,
|
|
|
|
April 3,
|
|
|
|
(In
thousands)
|
|
2021
|
|
%
|
|
2020
|
|
%
|
|
Prime
contractor
|
|
$
|
403,262
|
|
|
93
|
%
|
|
$
|
333,393
|
|
|
95
|
%
|
|
Subcontractor
|
|
30,742
|
|
|
7
|
%
|
|
18,341
|
|
|
5
|
%
|
|
Total
revenue
|
|
$
|
434,004
|
|
|
|
|
$
|
351,734
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue by
Geographic Region
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
April 2,
|
|
|
|
April 3,
|
|
|
|
(In
thousands)
|
|
2021
|
|
%
|
|
2020
|
|
%
|
|
Middle
East
|
|
$
|
241,813
|
|
|
56
|
%
|
|
$
|
237,937
|
|
|
68
|
%
|
|
United
States
|
|
151,582
|
|
|
35
|
%
|
|
81,469
|
|
|
23
|
%
|
|
Europe
|
|
40,609
|
|
|
9
|
%
|
|
32,328
|
|
|
9
|
%
|
|
Total
revenue
|
|
$
|
434,004
|
|
|
|
|
$
|
351,734
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
View original content to download
multimedia:http://www.prnewswire.com/news-releases/vectrus-announces-strong-first-quarter-2021-results-301289110.html
SOURCE Vectrus, Inc.