COLORADO SPRINGS, Colo.,
Nov. 5, 2019 /PRNewswire/ -- Vectrus,
Inc. (NYSE:VEC) announced third quarter 2019 financial results for
the quarter ended September 27,
2019.
"Vectrus momentum continued with sequential revenue and EPS
growth on higher margin in the third quarter as our growth-related
activities continue to generate results," said Chuck Prow, president and chief executive
officer. "As expected, revenue growth is accelerating in the second
half of the year, with our continued phase-in of new contracts
diversifying our revenue base, increasing our market share with the
Navy and the Air Force, and driving organic growth of 13%
year-over-year. We achieved these results even as we continue to
invest to support our growth, including LOGCAP V pre-operating
activities, new enterprise systems, standardizing processes,
strengthening supply chain, and driving efficiencies through
Enterprise Vectrus."
"We are continuing to execute against our strategic growth
initiatives and have won our first task orders as a prime
contractor under the Army's ITES-3S and RS3 IDIQs, which expands
our IT and network communications footprint with this client," said
Prow. "We further expanded our geographic footprint with the recent
awards of two contracts to provide services in the AFRICOM Area of
Responsibility. Additionally, the recent acquisition of Advantor
further strengthens our credentials as a leading provider of the
operational technologies powering converged infrastructures with a
presence at more than 2,000 client sites worldwide. More broadly,
our activity in the market place remains strong with $2.2 billion in bids submitted for new business,
which will support our future growth."
Third Quarter 2019 Results
Third quarter 2019 revenue of $359.9
million, increased $51.8
million or 17% compared to third quarter 2018. The increased
revenue included organic growth of 13%, attributable mainly to
increases from Middle East and
European programs, and growth in the U. S. partly attributable to
the third quarter 2019 acquisition of Advantor, which contributed
$10.2 million in the quarter.
EBITDA1 was $16.1
million or 4.5% margin for the third quarter 2019, compared
to $14.9 million or 4.8% margin in
third quarter 2018. Adjusted EBITDA1 was $16.7 million or 4.6% margin for the third
quarter 2019, compared to $14.9
million or 4.8% margin in third quarter 2018. The third
quarter 2018 adjusted EBITDA1 and adjusted EBITDA
margin1 reflects a one-time 50 basis point benefit in
the amount of $1.4 million associated
with the successful closure of an unresolved item on a closed
contract.
Third quarter 2019 diluted EPS was $0.80 compared to $0.86 in third quarter 2018. Diluted EPS for the
third quarter 2019 includes $0.04 per
share relating to M&A costs associated with the Advantor
acquisition and LOGCAP V pre-operational legal costs. Excluding
these costs, adjusted diluted EPS1 for the third quarter
2019 was $0.84. The company's
effective tax rate in the third quarter 2019 was 24.8% which had a
$0.03 negative impact on diluted
EPS.
Net cash generated from operating activities for the quarter
ended September 27, 2019 was
$13.0 million, an $8.5 million improvement compared to third
quarter 2018. Days sales outstanding (DSO) was 62 days in the third
quarter of 2019.
Total debt at September 27, 2019
was $73.0 million, which was down
$3.0 million from $76.0 million at September
28, 2018. Cash at quarter-end was $41.1 million. As of September 27, 2019, total consolidated
indebtedness to consolidated EBITDA1 (total leverage
ratio) was 1.04x.
Total backlog at September 27,
2019 was $3.0 billion and
funded backlog was $807 million.
Bookings in the third quarter of 2019 were approximately
$180 million. The trailing
twelve-month book-to-bill was 1.0x as of September 27, 2019.
"Vectrus' growth accelerated in the third quarter, with revenue
growth of 17%, of which 13% is organic, and adjusted
EBITDA1 grew 12%," said Susan
Lynch, senior vice president and chief financial officer of
Vectrus.
"Our ability to generate strong cash flow is an important
characteristic of our business and net cash generated in the third
quarter was $13 million, an
improvement of $8.5 million dollars
compared to third quarter 2018. Furthermore, I see pockets of
opportunity to improve our already strong cash flow profile through
working capital efficiencies," Lynch concluded.
Reaffirming 2019 Guidance
Prow continued, "We expect our momentum in 2019 to continue as
we remain focused on the strategic execution of our growth and
performance improvement initiatives. We remain confident in
our 2019 guidance given our progress to date and believe that based
on our new business pipeline and anticipated timing on LOGCAP V
revenue, we are on track to achieve double digit revenue growth in
2020."
Prow concluded, "I'd like to thank our teams for the substantial
progress we are making in transforming Vectrus into a higher value
and differentiated platform and for their continued support to our
servicemen and women in their critical missions around the
globe."
Vectrus is using additional non-GAAP measures including adjusted
operating income and margin1, adjusted EBITDA and
margin1, adjusted net income1, and adjusted
diluted earnings per shares1. These non-GAAP measures
remove the impact of expenses associated with M&A and LOGCAP V
pre-operational costs and, in the Company's opinion, better reflect
the underlying operations of the business.
Vectrus' 2019 guidance ranges are included in the table below
and assume interest expense of $6.0
million, operational capital expenditures of approximately
$10.0 million, depreciation and
amortization expense of $6.5 million,
mandatory debt payments of $4.5
million, a tax rate of 23.2 percent and weighted average
diluted shares outstanding of 11.6 million at December 31, 2019.
Additionally, GAAP guidance includes M&A costs of
$2.6 million and LOGCAP V
pre-operational costs of $1.1
million, which are excluded from adjusted
EBITDA1, adjusted net income1, and adjusted
diluted EPS1 measures.
$ millions, except
for EBITDA margins and per share amounts
|
2019
Guidance
|
2019 Mid
|
Revenue
|
$
|
1,370
|
|
to
|
$
|
1,390
|
|
$
|
1,380
|
|
Adjusted
EBITDA1
|
$
|
58.8
|
|
to
|
$
|
62.2
|
|
$
|
60.6
|
|
EBITDA
Margin1
|
4.0
|
%
|
to
|
4.2
|
%
|
4.1
|
%
|
Adjusted EBITDA
Margin 1
|
4.3
|
%
|
to
|
4.5
|
%
|
4.4
|
%
|
Diluted Earnings Per
Share
|
$
|
2.82
|
|
to
|
$
|
3.05
|
|
$
|
2.94
|
|
Adjusted Diluted
Earnings Per Share 1
|
$
|
3.06
|
|
to
|
$
|
3.29
|
|
$
|
3.18
|
|
Net Cash Provided by
Operating Activities
|
$
|
38.0
|
|
to
|
$
|
42.0
|
|
$
|
40.0
|
|
The Company notes that forward-looking statements of future
performance made in this release, including without limitation 2019
guidance, 2020 revenue growth and the LOGCAP V award 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 2019 Conference Call
Management will conduct a conference call with analysts and
investors at 4:30 p.m. ET on Tuesday,
November 5, 2019. 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
November 19, 2019, at 844-512-2921
(domestic) or 412-317-6671 (international) with passcode
13694776.
Footnotes:
1 See appendix for reconciliation.
About Vectrus
Vectrus is a leading global
government services company with a history in the services market
that dates back more than 70 years. The company
provides facility and base operations; supply chain and
logistics services; information technology mission support;
and engineering and digital integration services to U.S.
government customers around the world. Vectrus is differentiated
by operational excellence, superior program performance, a
history of long-term customer relationships and a strong commitment
to their customers' mission success. Vectrus is headquartered in
Colorado Springs, Colo., and
includes about 6,700 employees spanning 129 locations in 22
countries. In 2018, Vectrus generated sales of $1.3 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 "Affirming 2019
Guidance" above and other assumptions contained therein for
purposes of such guidance, other statements about our five-year
growth plan, revenue (including 2020 revenue) and DSO, our credit
facility, debt payments, expense savings, contract opportunities,
bids and awards, including the LOGCAP V award, AFRICOM contracts
and ITES-S3 and RS3 IDIQs, collections, business strategy, outlook,
objectives, plans, intentions or goals, 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. Forward-looking
statements are not guarantees of future performance and are subject
to risks and uncertainties that could cause actual results to
differ materially from the results contemplated by the
forward-looking statements, our historical experience and our
present expectations or projections. These risks and uncertainties
include, but are not limited to: our dependence on a few large
contracts for a significant portion of our revenue; competition in
our industry; our mix of cost-plus, cost-reimbursable, and
firm-fixed price contracts; our dependence on the U.S. government
and the importance of our maintaining a good relationship with the
U.S. government, our ability to submit proposals for and/or win
potential opportunities in our pipeline; our ability to retain and
renew our existing contracts; protests of new awards; including
protests of the LOGCAP V award and task orders; any acquisitions,
investments or joint ventures, including the integration of
Advantor and other acquisitions into our business; our
international operations, including the economic, political and
social conditions in the countries in which we conduct our
businesses; changes in U.S. government military operations; changes
in, or delays in the completion of, U.S. or international
government budgets or government shutdowns; government regulations
and compliance therewith, including changes to the Department of
Defense procurement process; changes in technology; intellectual
property matters; governmental investigations, reviews, audits and
cost adjustments; contingencies related to actual or alleged
environmental contamination, claims and concerns; our success in
expanding our geographic footprint or broadening our customer base,
markets and capabilities; our ability to realize the full amounts
reflected in our backlog; impairment of goodwill; our performance
of our contracts and our ability to control costs; our level of
indebtedness; our compliance with the terms of our credit
agreement; subcontractor and employee performance and conduct; our
teaming arrangements with other contractors; economic and capital
markets conditions; our ability to retain and recruit qualified
personnel; our maintenance of safe work sites and equipment; our
compliance with applicable environmental, health and safety
regulations; our ability to maintain required security clearances;
any disputes with labor unions; costs of outcome of any legal
proceedings; security breaches and other disruptions to our
information technology and operations; changes in our tax
provisions, including under the Tax Cuts and Jobs Act, or exposure
to additional income tax liabilities; changes in U.S. generally
accepted accounting principles, including changes related to
Accounting Standards Codification Topic 606, Revenue from
Contracts with Customers (ASC 606); accounting estimates made
in connection with our contracts; the adequacy of our insurance
coverage; the volatility of our stock price; our exposure to
interest rate risk; our compliance with public company accounting
and financial reporting requirements; timing of payments by the
U.S. government; risks and uncertainties relating to the spin-off
from our former parent; and other factors set forth in Part I, Item
1A, - "Risk Factors," and elsewhere in our 2018 Annual Report on
Form 10-K and described from time to time in our future reports
filed with the Securities and Exchange Commission. We undertake no
obligation to update any forward-looking statements, whether as a
result of new information, future events or otherwise, except as
required by law.
CONTACT:
Vectrus
Mike Smith, CFA
719-637-5773
michael.smith@vectrus.com
VECTRUS,
INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
September
27,
|
|
September
28,
|
|
September
27,
|
|
September
28,
|
(In thousands,
except per share data)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Revenue
|
|
$
|
359,854
|
|
|
$
|
308,095
|
|
|
$
|
1,017,371
|
|
|
$
|
949,744
|
|
Cost of
revenue
|
|
325,537
|
|
|
278,964
|
|
|
921,685
|
|
|
865,078
|
|
Selling, general and
administrative expenses
|
|
19,934
|
|
|
15,125
|
|
|
59,697
|
|
|
48,990
|
|
Operating
income
|
|
14,383
|
|
|
14,006
|
|
|
35,989
|
|
|
35,676
|
|
Interest expense,
net
|
|
(1,907)
|
|
|
(1,314)
|
|
|
(4,811)
|
|
|
(3,619)
|
|
Income from
operations before income taxes
|
|
12,476
|
|
|
12,692
|
|
|
31,178
|
|
|
32,057
|
|
Income tax
expense
|
|
3,094
|
|
|
2,826
|
|
|
7,088
|
|
|
6,884
|
|
Net income
|
|
$
|
9,382
|
|
|
$
|
9,866
|
|
|
$
|
24,090
|
|
|
$
|
25,173
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share
|
|
|
|
|
|
|
|
|
Basic
|
|
$0.82
|
|
|
$0.88
|
|
|
$2.11
|
|
|
$2.25
|
|
Diluted
|
|
$0.80
|
|
|
$0.86
|
|
|
$2.08
|
|
|
$2.21
|
|
Weighted average
common shares outstanding - basic
|
|
11,506
|
|
|
11,248
|
|
|
11,420
|
|
|
11,210
|
|
Weighted average
common shares outstanding - diluted
|
|
11,678
|
|
|
11,406
|
|
|
11,566
|
|
|
11,380
|
|
|
|
|
|
|
|
|
|
|
VECTRUS,
INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
|
|
|
|
September
27,
|
|
December
31,
|
(In thousands,
except share information)
|
|
2019
|
|
2018
|
Assets
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash
|
|
$
|
41,050
|
|
|
$
|
66,145
|
|
Receivables
|
|
254,796
|
|
|
232,119
|
|
Other current
assets
|
|
22,588
|
|
|
15,063
|
|
Total current
assets
|
|
318,434
|
|
|
313,327
|
|
Property, plant, and
equipment, net
|
|
18,159
|
|
|
13,419
|
|
Goodwill
|
|
260,872
|
|
|
233,619
|
|
Intangible assets,
net
|
|
15,934
|
|
|
8,630
|
|
Right-of-use
assets
|
|
18,233
|
|
|
—
|
|
Other non-current
assets
|
|
3,803
|
|
|
3,248
|
|
Total non-current
assets
|
|
317,001
|
|
|
258,916
|
|
Total
Assets
|
|
$
|
635,435
|
|
|
$
|
572,243
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Accounts
payable
|
|
$
|
144,828
|
|
|
$
|
156,393
|
|
Compensation and
other employee benefits
|
|
60,897
|
|
|
41,790
|
|
Short-term
debt
|
|
5,500
|
|
|
4,500
|
|
Other accrued
liabilities
|
|
39,524
|
|
|
22,303
|
|
Total current
liabilities
|
|
250,749
|
|
|
224,986
|
|
Long-term debt,
net
|
|
66,438
|
|
|
69,137
|
|
Deferred tax
liability
|
|
50,560
|
|
|
55,358
|
|
Other non-current
liabilities
|
|
19,353
|
|
|
1,462
|
|
Total non-current
liabilities
|
|
136,351
|
|
|
125,957
|
|
Total
liabilities
|
|
387,100
|
|
|
350,943
|
|
Commitments and
contingencies
|
|
|
|
|
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; 11,506,228 and 11,266,906
shares issued and outstanding as of September 27, 2019 and December
31, 2018, respectively
|
|
115
|
|
|
113
|
|
Additional paid in
capital
|
|
77,766
|
|
|
71,729
|
|
Retained
earnings
|
|
176,965
|
|
|
152,616
|
|
Accumulated other
comprehensive loss
|
|
(6,511)
|
|
|
(3,158)
|
|
Total shareholders'
equity
|
|
248,335
|
|
|
221,300
|
|
Total Liabilities
and Shareholders' Equity
|
|
$
|
635,435
|
|
|
$
|
572,243
|
|
VECTRUS,
INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
|
|
|
|
Nine Months
Ended
|
|
|
September
27,
|
|
September
28,
|
(In
thousands)
|
|
2019
|
|
2018
|
Operating
activities
|
|
|
|
|
Net income
|
|
$
|
24,090
|
|
|
$
|
25,173
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
Depreciation
expense
|
|
2,395
|
|
|
1,078
|
|
Amortization of
intangible assets
|
|
2,103
|
|
|
1,468
|
|
Loss on disposal of
property, plant, and equipment
|
|
2
|
|
|
315
|
|
Stock-based
compensation
|
|
5,952
|
|
|
3,410
|
|
Amortization of debt
issuance costs
|
|
301
|
|
|
318
|
|
Changes in assets and
liabilities:
|
|
|
|
|
Receivables
|
|
(7,521)
|
|
|
(15,179)
|
|
Other
assets
|
|
(5,820)
|
|
|
(5,669)
|
|
Accounts
payable
|
|
(14,458)
|
|
|
(5,259)
|
|
Deferred
taxes
|
|
(4,240)
|
|
|
(2,101)
|
|
Compensation and
other employee benefits
|
|
17,863
|
|
|
5,002
|
|
Other
liabilities
|
|
7,781
|
|
|
98
|
|
Net cash provided
by operating activities
|
|
28,448
|
|
|
8,654
|
|
Investing
activities
|
|
|
|
|
Purchases of capital
assets and intangibles
|
|
(14,440)
|
|
|
(6,115)
|
|
Proceeds from the
disposition of assets
|
|
5,400
|
|
|
33
|
|
Acquisition of
business, net of cash acquired
|
|
(43,963)
|
|
|
(36,855)
|
|
Net cash used in
investing activities
|
|
(53,003)
|
|
|
(42,937)
|
|
Financing
activities
|
|
|
|
|
Repayments of
long-term debt
|
|
(2,000)
|
|
|
(3,000)
|
|
Proceeds from
revolver
|
|
226,000
|
|
|
138,000
|
|
Repayments of
revolver
|
|
(226,000)
|
|
|
(138,000)
|
|
Proceeds from
exercise of stock options
|
|
3,467
|
|
|
1,388
|
|
Payments of employee
withholding taxes on share-based compensation
|
|
(768)
|
|
|
(803)
|
|
Net cash provided
by (used in) financing activities
|
|
699
|
|
|
(2,415)
|
|
Exchange rate
effect on cash
|
|
(1,239)
|
|
|
(1,171)
|
|
Net change in
cash
|
|
(25,095)
|
|
|
(37,869)
|
|
Cash-beginning of
year
|
|
66,145
|
|
|
77,453
|
|
Cash-end of
period
|
|
$
|
41,050
|
|
|
$
|
39,584
|
|
Supplemental
disclosure of cash flow information:
|
|
|
|
|
Interest
paid
|
|
$
|
4,363
|
|
|
$
|
3,241
|
|
Income taxes
paid
|
|
$
|
5,076
|
|
|
$
|
11,222
|
|
Non-cash investing
activities:
|
|
|
|
|
Purchase of capital
assets on account
|
|
$
|
394
|
|
|
$
|
1,374
|
|
Key Performance Indicators and Non-GAAP Financial
Measures
The primary financial performance measures we use to manage our
business and monitor results of operations are revenue trends and
operating income trends. In addition, we consider adjusted
operating income, adjusted operating margin, adjusted net income,
adjusted diluted earnings per share, EBITDA, adjusted EBITDA,
EBITDA margin and adjusted EBITDA margin to be useful to management
and investors in evaluating our operating performance for the
periods presented, 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.
Adjusted operating income, adjusted operating margin, adjusted
net income, adjusted diluted earnings per share, EBITDA, adjusted
EBITDA, EBITDA margin and adjusted EBITDA margin, however, are not
measures of financial performance under generally accepted
accounting principles in the United
States of America (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. 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,
transaction and non-recurring integration 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, other
income; significant charges or credits that impact current results
but are not related to our ongoing operations and unusual and
infrequent non-operating items and non-operating tax settlements or
adjustments, such as revaluation of our deferred tax liability as a
result of the Tax Cuts and Jobs Act, and net settlement of
uncertain tax positions.
"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, transaction and
non-recurring integration 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.
(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
|
|
$
|
359,854
|
|
|
|
|
|
|
$
|
359,854
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
$
|
14,383
|
|
|
$
|
420
|
|
|
$
|
197
|
|
|
$
|
15,000
|
|
Operating
margin
|
|
4.0
|
%
|
|
|
|
|
|
4.2
|
%
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
$
|
(1,907)
|
|
|
|
|
|
|
$
|
(1,907)
|
|
|
|
|
|
|
|
|
|
|
Income from
operations before income taxes
|
|
$
|
12,476
|
|
|
$
|
420
|
|
|
$
|
197
|
|
|
$
|
13,093
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
$
|
3,094
|
|
|
$
|
104
|
|
|
$
|
49
|
|
|
$
|
3,247
|
|
Income tax
rate
|
|
24.8
|
%
|
|
|
|
|
|
24.8
|
%
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
9,382
|
|
|
$
|
316
|
|
|
$
|
148
|
|
|
$
|
9,846
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding, diluted
|
|
11,678
|
|
|
|
|
|
|
11,678
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
|
$
|
0.80
|
|
|
|
|
|
|
$
|
0.84
|
|
|
|
|
|
|
|
|
|
|
Add:
|
|
|
|
|
|
|
|
|
Depreciation and
Amortization
|
|
$
|
1,683
|
|
|
|
|
|
|
$
|
1,683
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
$
|
16,066
|
|
|
|
|
|
|
$
|
16,683
|
|
EBITDA
Margin
|
|
4.5
|
%
|
|
|
|
|
|
4.6
|
%
|
(In thousands,
except per share data)
|
|
Three Months
Ended
September 28, 2018
As Reported
|
|
M&A
Related
Costs
|
|
LOGCAP V
Pre-Operational
Legal Costs
|
|
Three Months
Ended
September 28, 2018
As Reported -
Adjusted
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
308,095
|
|
|
|
|
|
|
$
|
308,095
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
$
|
14,006
|
|
|
—
|
|
|
—
|
|
|
$
|
14,006
|
|
Operating
margin
|
|
4.5
|
%
|
|
|
|
|
|
4.5
|
%
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
$
|
(1,314)
|
|
|
|
|
|
|
$
|
(1,314)
|
|
|
|
|
|
|
|
|
|
|
Income from
operations before income taxes
|
|
$
|
12,692
|
|
|
—
|
|
|
—
|
|
|
$
|
12,692
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
$
|
2,826
|
|
|
—
|
|
|
—
|
|
|
$
|
2,826
|
|
Income tax
rate
|
|
22.3
|
%
|
|
|
|
|
|
22.3
|
%
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
9,866
|
|
|
—
|
|
|
—
|
|
|
$
|
9,866
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding, diluted
|
|
11,406
|
|
|
|
|
|
|
11,406
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
|
$
|
0.86
|
|
|
|
|
|
|
$
|
0.86
|
|
|
|
|
|
|
|
|
|
|
Add:
|
|
|
|
|
|
|
|
|
Depreciation and
Amortization
|
|
$
|
922
|
|
|
|
|
|
|
$
|
922
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
$
|
14,928
|
|
|
|
|
|
|
$
|
14,928
|
|
EBITDA
Margin
|
|
4.8
|
%
|
|
|
|
|
|
4.8
|
%
|
(In thousands,
except per share data)
|
|
Nine Months
Ended
September 27, 2019
As Reported
|
|
M&A
Related
Costs
|
|
LOGCAP V
Pre-Operational
Legal Costs
|
|
Nine Months
Ended
September 27, 2019
As Reported -
Adjusted
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
1,017,371
|
|
|
|
|
|
|
$
|
1,017,371
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
$
|
35,989
|
|
|
$
|
2,132
|
|
|
$
|
776
|
|
|
$
|
38,897
|
|
Operating
margin
|
|
3.5
|
%
|
|
|
|
|
|
3.8
|
%
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
$
|
(4,811)
|
|
|
|
|
|
|
$
|
(4,811)
|
|
|
|
|
|
|
|
|
|
|
Income from
operations before income taxes
|
|
$
|
31,178
|
|
|
$
|
2,132
|
|
|
$
|
776
|
|
|
$
|
34,086
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
$
|
7,088
|
|
|
$
|
469
|
|
|
$
|
173
|
|
|
$
|
7,730
|
|
Income tax
rate
|
|
22.8
|
%
|
|
|
|
|
|
22.8
|
%
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
24,090
|
|
|
$
|
1,663
|
|
|
$
|
603
|
|
|
$
|
26,356
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding, diluted
|
|
11,566
|
|
|
|
|
|
|
11,566
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
|
$
|
2.08
|
|
|
|
|
|
|
$
|
2.27
|
|
|
|
|
|
|
|
|
|
|
Add:
|
|
|
|
|
|
|
|
|
Depreciation and
Amortization
|
|
$
|
4,498
|
|
|
|
|
|
|
$
|
4,498
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
$
|
40,487
|
|
|
|
|
|
|
$
|
43,395
|
|
EBITDA
Margin
|
|
4.0
|
%
|
|
|
|
|
|
4.3
|
%
|
(In thousands,
except per share data)
|
|
Nine Months
Ended
September 28, 2018
As Reported
|
|
M&A
Related
Costs
|
|
LOGCAP V
Pre-Operational
Legal Costs
|
|
Nine Months
Ended
September 28, 2018
As Reported -
Adjusted
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
949,744
|
|
|
|
|
|
|
$
|
949,744
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
$
|
35,676
|
|
|
1,669
|
|
|
—
|
|
|
$
|
37,345
|
|
Operating
margin
|
|
3.8
|
%
|
|
|
|
|
|
3.9
|
%
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
$
|
(3,619)
|
|
|
|
|
|
|
$
|
(3,619)
|
|
|
|
|
|
|
|
|
|
|
Income from
operations before income taxes
|
|
$
|
32,057
|
|
|
1,669
|
|
|
—
|
|
|
$
|
33,726
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
$
|
6,884
|
|
|
350
|
|
|
—
|
|
|
$
|
7,234
|
|
Income tax
rate
|
|
21.5
|
%
|
|
|
|
|
|
21.5
|
%
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
25,173
|
|
|
1,319
|
|
|
—
|
|
|
$
|
26,492
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding, diluted
|
|
11,380
|
|
|
|
|
|
|
11,380
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
|
$
|
2.21
|
|
|
|
|
|
|
$
|
2.33
|
|
|
|
|
|
|
|
|
|
|
Add:
|
|
|
|
|
|
|
|
|
Depreciation and
Amortization
|
|
$
|
2,546
|
|
|
|
|
|
|
$
|
2,546
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
$
|
38,222
|
|
|
|
|
|
|
$
|
39,891
|
|
EBITDA
Margin
|
|
4.0
|
%
|
|
|
|
|
|
4.2
|
%
|
|
|
|
|
|
|
|
|
|
(In millions,
except per share data)
|
|
2019 Guidance
High
|
|
M&A
Related
Costs
|
|
LOGCAP V
Pre-Operational
Legal Costs
|
|
2019 Guidance
High - Adjusted
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
1,390
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,390
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
|
$
|
3.05
|
|
|
$
|
0.17
|
|
|
$
|
0.07
|
|
|
$
|
3.29
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
$
|
58.5
|
|
|
$
|
2.6
|
|
|
$
|
1.1
|
|
|
$
|
62.2
|
|
EBITDA
Margin
|
|
4.2
|
%
|
|
|
|
|
|
4.5
|
%
|
(In millions,
except per share data)
|
|
2019 Guidance
Mid
|
|
M&A
Related
Costs
|
|
LOGCAP V
Pre-Operational
Legal Costs
|
|
2019 Guidance
Mid - Adjusted
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
1,380
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,380
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
|
$
|
2.94
|
|
|
$
|
0.17
|
|
|
$
|
0.07
|
|
|
$
|
3.18
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
$
|
56.9
|
|
|
$
|
2.6
|
|
|
$
|
1.1
|
|
|
$
|
60.6
|
|
EBITDA
Margin
|
|
4.1
|
%
|
|
|
|
|
|
4.4
|
%
|
(In millions,
except per share data)
|
|
2019 Guidance
Low
|
|
M&A Related
Costs
|
|
LOGCAP V
Pre-Operational
Legal Costs
|
|
2019 Guidance
Low - Adjusted
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
1,370
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,370
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
|
$
|
2.82
|
|
|
$
|
0.17
|
|
|
$
|
0.07
|
|
|
$
|
3.06
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
$
|
55.1
|
|
|
$
|
2.6
|
|
|
$
|
1.1
|
|
|
$
|
58.8
|
|
EBITDA
Margin
|
|
4.0
|
%
|
|
|
|
|
|
4.3
|
%
|
(In millions,
except per share data)
|
|
Year Ended
December 31, 2018
As Reported
|
|
M&A
Related
Costs
|
|
Non-recurring
Return to
Provision True-up1
|
|
Year Ended
December 31, 2018
As Reported - Adjusted
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
1,279
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,279
|
|
|
|
|
|
|
|
|
|
|
Diluted earning per
share
|
|
$
|
3.10
|
|
|
$
|
0.10
|
|
|
$
|
(0.16)
|
|
|
$
|
3.04
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
$
|
52.1
|
|
|
$
|
1.5
|
|
|
$
|
—
|
|
|
$
|
53.6
|
|
EBITDA
Margin
|
|
4.1
|
%
|
|
|
|
|
|
4.2
|
%
|
|
|
|
|
|
|
|
|
|
1 One-time tax benefit
|
|
|
|
|
|
|
|
|
(In
Thousands)
|
|
Three Months
Ended
September 27, 2019
As Reported
|
|
Advantor
|
|
Three Months
Ended
September 27, 2019
As Reported - Organic
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
359,854
|
|
|
10,235
|
|
|
$
|
349,619
|
|
|
|
|
|
|
|
|
(In
Thousands)
|
|
Three Months
Ended
September 28, 2018
As Reported
|
|
|
|
Three Months
Ended
September 28, 2018
As Reported - Organic
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
308,095
|
|
|
|
|
$
|
308,095
|
|
|
|
|
|
|
|
|
Organic Revenue $
Increase
|
|
|
|
|
|
41,524
|
|
Organic Revenue %
Increase
|
|
|
|
|
|
13
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
September
27,
|
% of
Total
|
September
28,
|
% of
Total
|
September
27,
|
% of
Total
|
September
28,
|
% of
Total
|
(In
thousands)
|
2019
|
2018
|
2019
|
2018
|
Army
|
$
|
245,817
|
|
68
|
%
|
$
|
224,038
|
|
72
|
%
|
$
|
698,377
|
|
69
|
%
|
$
|
700,265
|
|
74
|
%
|
Air Force
|
86,557
|
|
24
|
%
|
64,278
|
|
21
|
%
|
227,081
|
|
22
|
%
|
189,954
|
|
20
|
%
|
Navy
|
13,344
|
|
4
|
%
|
8,567
|
|
3
|
%
|
45,249
|
|
4
|
%
|
26,912
|
|
3
|
%
|
Other
|
14,136
|
|
4
|
%
|
11,212
|
|
4
|
%
|
46,664
|
|
5
|
%
|
32,613
|
|
3
|
%
|
Total
revenue
|
$
|
359,854
|
|
|
$
|
308,095
|
|
|
$
|
1,017,371
|
|
|
$
|
949,744
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue by
Contract Type
|
Three Months
Ended
|
Nine Months
Ended
|
|
September
27,
|
% of
Total
|
September
28,
|
% of
Total
|
September
27,
|
% of
Total
|
September
28,
|
% of
Total
|
(In
thousands)
|
2019
|
2018
|
2019
|
2018
|
Cost-plus and
cost-reimbursable ¹
|
$
|
272,810
|
|
76
|
%
|
$
|
240,338
|
|
78
|
%
|
$
|
781,024
|
|
77
|
%
|
$
|
713,289
|
|
75
|
%
|
Firm-fixed-price
|
87,044
|
|
24
|
%
|
67,757
|
|
22
|
%
|
236,347
|
|
23
|
%
|
236,455
|
|
25
|
%
|
Total
revenue
|
$
|
359,854
|
|
|
$
|
308,095
|
|
|
$
|
1,017,371
|
|
|
$
|
949,744
|
|
|
|
|
|
|
|
|
|
|
|
¹ Includes time and
material contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue by
Contract Relationship
|
Three Months
Ended
|
Nine Months
Ended
|
|
September
27,
|
% of
Total
|
September
28,
|
% of
Total
|
September
27,
|
% of
Total
|
September
28,
|
% of
Total
|
(In
thousands)
|
2019
|
2018
|
2019
|
2018
|
Prime
contractor
|
$
|
334,383
|
|
93
|
%
|
$
|
290,090
|
|
94
|
%
|
$
|
954,172
|
|
94
|
%
|
$
|
892,206
|
|
94
|
%
|
Subcontractor
|
25,471
|
|
7
|
%
|
18,005
|
|
6
|
%
|
63,199
|
|
6
|
%
|
57,538
|
|
6
|
%
|
Total
revenue
|
$
|
359,854
|
|
|
$
|
308,095
|
|
|
$
|
1,017,371
|
|
|
$
|
949,744
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue by
Geographic Region
|
Three Months
Ended
|
Nine Months
Ended
|
|
September
27,
|
% of
Total
|
September
28,
|
% of
Total
|
September
27,
|
% of
Total
|
September
28,
|
% of
Total
|
(In
thousands)
|
2019
|
2018
|
2019
|
2018
|
Middle
East
|
$
|
244,142
|
|
68
|
%
|
$
|
223,636
|
|
72
|
%
|
$
|
695,626
|
|
68
|
%
|
$
|
662,734
|
|
70
|
%
|
United
States
|
77,228
|
|
21
|
%
|
54,379
|
|
18
|
%
|
219,534
|
|
22
|
%
|
203,015
|
|
21
|
%
|
Europe
|
38,484
|
|
11
|
%
|
30,080
|
|
10
|
%
|
102,211
|
|
10
|
%
|
83,995
|
|
9
|
%
|
Total
revenue
|
$
|
359,854
|
|
|
$
|
308,095
|
|
|
$
|
1,017,371
|
|
|
$
|
949,744
|
|
|
View original content to download
multimedia:http://www.prnewswire.com/news-releases/vectrus-announces-strong-third-quarter-2019-results-300952217.html
SOURCE Vectrus, Inc.