Third Quarter 2023 Summary
- Reported record revenues of $1.0
billion, up 5% y/y
- Awarded bookings of $1.3
billion, increasing backlog to a record high of $13.3 billion
- Reported operating income of $21.0
million; adjusted operating income1 of
$59.5 million
- Adjusted EBITDA1 of $64.7
million with a margin1 of 6.5%
- Diluted EPS1 of ($0.21); Adjusted diluted EPS1 of
$0.73
- Reported year-to-date cash flow from operations of
$135.2 million, and reduced net debt
$88.9 million
MCLEAN,
Va., Nov. 6, 2023 /PRNewswire/ -- V2X, Inc.
(NYSE:VVX) announced third quarter 2023 financial results.
"We achieved record revenue in the third quarter of
approximately $1 billion, which
demonstrates our unwavering commitment to our clients and the
missions we support," said Chuck
Prow, President and Chief Executive Officer of V2X.
"Bookings activity in the quarter was strong at $1.3 billion in awards. This yielded total
backlog of $13.3 billion, an all-time
high for the company and provides solid revenue visibility moving
into 2024. Importantly, we are executing the "Expand the Base"
component of our strategic framework and were successful in
achieving extended scope through client engagement initiatives on
existing business, which has yielded $332
million of awards in the quarter and $1.2 billion year-to-date. We are also leveraging
our converged capabilities to pursue new business and currently
have a robust pipeline of opportunities, which includes
~$19 billion of bids we plan to
submit over the next twelve months and over $6 billion submitted and in evaluation."
Mr. Prow continued, "During the quarter, we had notable success
capturing several key pursuits that are representative of V2X's
differentiated ability to deliver technology and operational
solutions across the mission lifecycle. For example, we
secured a $190 million five-year,
fixed price contract to continue providing training and range
operations services to the U.S. Army in the Middle East. Our team will provide training
support services as well as instruction, operation, and maintenance
of training aids, devices, simulators, and simulations; fixed
ranges; deployable ranges; and numerous training facilities. This
successful capture leverages our decades of experience providing
high consequence training as well as our global scale and will
allow V2X to bring our Army client unparalleled service delivery in
support of enhancing the warfighting skills via the use of live and
virtual training. We continue to invest in the future and are
developing the next generation of training capabilities,
techniques, and enablers."
"We have also made remarkable progress organically growing V2X's
environmental capabilities and were recently awarded an
$85 million two-year contract to
support the recovery and remediation of drinking water. This win
builds on V2X's original work to support the Department of Defense
with the establishment of a water supply system for military
housing at Red Hill, Hawaii.
Our ability to deliver solutions that generate tangible
results and public health benefits have led to incremental work and
are now helping to deliver safe drinking water to the local
communities. We have also successfully leveraged this capability to
win similar work in Japan. We are
proud to be supporting such an important environmental mission and
believe there is significant opportunity to expand our efforts to
other geographic areas both within and outside of the Pacific
region."
"Finally, subsequent to the end of the quarter, we were awarded
a $458 million five-year, fixed price
program to provide depot site standup as well as organizational,
selected intermediate and limited depot level maintenance, and
logistics support for the F-5 Adversary aircraft with the Navy and
Marine Corps. The F-5 contract, combined with our Naval Test Wing
Pacific and Atlantic awards, equates to over $1.7 billion in new work V2X has won with the
U.S. Navy over the past ~18 months. I'd like to thank our teams for
their commitment to delivering unique and value-added solutions
that provide differentiation and enhanced client outcomes."
Mr. Prow concluded, "We are pleased with our continued revenue
growth and record backlog which is supported by the momentum
generated through our efforts to converge solutions across our
clients' mission lifecycle. V2X is differentiating its
capability offerings through the intersection of technology and
operations, which we believe will continue to create value for our
shareholders."
Third Quarter 2023 Results
- Revenue of $1.0 billion, up
4.5% y/y
- Operating income of $21.0
million, including merger and integration related costs of
$15.8 million, and amortization of
acquired intangible assets of $22.6
million
- Adjusted operating income1 of $59.5 million
- Adjusted EBITDA1 of $64.7
million with a 6.5% adjusted EBITDA
margin1
- Diluted EPS1 of ($0.21); Adjusted Diluted EPS1 of
$0.73
- Net debt as of September 29,
2023 of $1.1 billion
- Total backlog as of September 29,
2023 of $13.3 billion
"V2X reported revenue of $1.0
billion in the quarter, which represents 4.5% year-over-year
growth," said Shawn Mural, Senior Vice President and Chief
Financial Officer. "Revenue growth in the quarter was achieved
through continued program execution on existing programs, plus the
phase-in of recent awards, including our first task order win with
the Department of State, which reached full operational capability
approximately two weeks ahead of schedule and has since expanded in
size. We were also successful in continuing to defend our
core and have won over $1 billion in
recompete programs year to date."
"For the quarter, the Company reported operating income of
$21.0 million and adjusted operating
income1 of $59.5
million. Adjusted EBITDA1 was
$64.7 million with a margin of 6.5%,
which was influenced by contract mix and performance on certain
integrated electronic security programs. Third quarter diluted EPS
was ($0.21), due primarily to merger
and integration related costs, amortization of acquired intangible
assets, and interest expense. Adjusted diluted
EPS1 for the quarter was $0.73."
"Cash generation was strong and net cash provided by operating
activities was $135.2 million year to
date. Adjusted net cash provided by operating
activities1 year to date was $83.6 million, adding back $20.9 million of M&A and integration costs
with $13.4 million of CARES act
payments, and removing the contribution of the master accounts
receivable purchase or MARPA facility of $85.8 million."
"At the end of the quarter, net debt for V2X was $1,131.8 million. Our solid cash generation
has enabled V2X to reduce its total debt by $88.9 million year to date. Net consolidated
indebtedness to EBITDA1 (net leverage ratio) was
3.46x. Additionally, our strong fundamentals and cash flow
profile allowed us to reprice our Term Loan B shortly after the
quarter close. We expect the new pricing to reduce annual interest
expense by $2 million," said Mr.
Mural.
Total backlog as of September 29,
2023, was $13.3 billion.
Funded backlog was $3.2 billion.
Bookings in the quarter were $1.3
billion, resulting in a book-to-bill of 1.3x. The trailing
twelve-month book-to-bill was 1.1x.
2023 Guidance
Mr. Mural concluded, "Based on what we
are seeing in the business we are raising the low end and mid-point
of our full year revenue projections. Given third-quarter results
and our outlook, we are lowering the ranges for adjusted EBITDA and
adjusted diluted EPS. This change incorporates year-to-date
results, including the program performance mentioned earlier and
timing of activities associated with national security support. We
are reaffirming guidance for adjusted net cash provided by
operating activities." The Company is adjusting its 2023 guidance
and is as follows:
$ millions, except
for per share amounts
|
2023 Guidance
(Updated)
|
2023 Mid-Point
(Updated)
|
Revenue
|
$3,900
|
|
$3,950
|
$3,925
|
Adjusted
EBITDA1
|
$285
|
|
$295
|
$290
|
Adjusted Diluted
Earnings Per Share1
|
$3.50
|
|
$3.75
|
$3.62
|
Adjusted Net Cash
Provided by Operating Activities1
|
$115
|
|
$135
|
$125
|
Forward-looking statements are based upon current expectations
and are subject to factors that could cause actual results to
differ materially from those suggested here, including those
factors set forth in the Safe Harbor Statement below.
Third Quarter 2023 Conference Call
Management will conduct a conference call with analysts and
investors at 8:00 a.m. ET on Monday,
November 6, 2023. U.S.-based participants may dial in to the
conference call at 877-407-3982, while international participants
may dial 201-493-6780. A live webcast of the conference call as
well as an accompanying slide presentation will be available here:
https://app.webinar.net/gAed3AVKra2
A replay of the conference call will be posted on the V2X
website shortly after completion of the call and will be available
for one year. A telephonic replay will also be available through
November 20, 2023, at 844-512-2921
(domestic) or 412-317-6671 (international) with passcode
13742132.
Presentation slides that will be used in conjunction with the
conference call will also be made available online in advance on
the "investors" section of the company's website at
https://gov2x.com/. V2X recognizes its website as a key channel of
distribution to reach public investors and as a means of disclosing
material non-public information to comply with its obligations
under the U.S. Securities and Exchange Commission ("SEC")
Regulation FD.
Footnotes:
1 See "Key Performance Indicators and Non-GAAP
Financial Measures" for descriptions and reconciliations.
About V2X
V2X builds smart solutions designed to
integrate physical and digital infrastructure – from base to
battlefield – by aligning people, actions, and outputs. Formed by
the merger of Vectrus and Vertex, we bring a combined 120 years of
successful mission support. Our lifecycle solutions improve
security, streamline logistics, and enhance readiness.
The Company delivers a comprehensive suite of integrated
solutions across the operations and logistics, aerospace, training,
and technology markets to national security, defense, civilian and
international clients. Our global team of approximately 15,000
employees brings innovation to every point in the mission
lifecycle, from preparation to operations, to sustainment, as it
tackles the most complex challenges with agility, grit, and
dedication.
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 the
statements and items listed under "2023 Guidance" above and other
assumptions contained therein for purposes of such guidance, other
statements about our 2023 performance outlook, revenue, contract
opportunities, and any discussion of future operating or financial
performance.
Forward-looking statements generally can be identified by the
use of forward-looking terminology such as "may," "will," "expect,"
"intend," "estimate," "anticipate," "believe," "could,"
"potential," "continue" or similar terminology. These statements
are based on the beliefs and assumptions of the management of the
Company 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, which
could cause actual results to differ materially from the results
discussed in the forward-looking statements. In addition,
forward-looking statements are subject to certain risks and
uncertainties that could cause actual results to differ materially
from the Company's historical experience and our present
expectations or projections. For a discussion of some of the risks
and uncertainties 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 SEC.
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.
V2X,
INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF LOSS (UNAUDITED)
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
September
29,
|
|
September
30,
|
|
September
29,
|
|
September
30,
|
(In thousands,
except per share data)
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Revenue
|
|
$ 1,001,507
|
|
$
958,156
|
|
$ 2,922,819
|
|
$ 1,912,693
|
Cost of
revenue
|
|
930,828
|
|
861,073
|
|
2,685,910
|
|
1,733,654
|
Selling, general, and
administrative expenses
|
|
49,640
|
|
92,596
|
|
151,021
|
|
154,295
|
Operating
income
|
|
21,039
|
|
4,487
|
|
85,888
|
|
24,744
|
Loss on extinguishment
of debt
|
|
—
|
|
—
|
|
(22,052)
|
|
—
|
Interest expense,
net
|
|
(30,252)
|
|
(27,265)
|
|
(93,946)
|
|
(30,908)
|
Other expense,
net
|
|
(2,024)
|
|
—
|
|
(2,335)
|
|
—
|
Loss from operations
before income taxes
|
|
(11,237)
|
|
(22,778)
|
|
(32,445)
|
|
(6,164)
|
Income tax
benefit
|
|
(4,837)
|
|
(5,739)
|
|
(10,364)
|
|
(2,453)
|
Net loss
|
|
$
(6,400)
|
|
$
(17,039)
|
|
$
(22,081)
|
|
$
(3,711)
|
|
|
|
|
|
|
|
|
|
Loss per
share
|
|
|
|
|
|
|
|
|
Basic
|
|
$
(0.21)
|
|
$
(0.57)
|
|
$
(0.71)
|
|
$
(0.21)
|
Diluted
|
|
$
(0.21)
|
|
$
(0.57)
|
|
$
(0.71)
|
|
$
(0.21)
|
Weighted average common
shares outstanding - basic
|
|
31,179
|
|
29,830
|
|
31,048
|
|
17,806
|
Weighted average common
shares outstanding - diluted
|
|
31,179
|
|
29,830
|
|
31,048
|
|
17,806
|
V2X,
INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
|
|
|
|
September
29,
|
|
December 31,
|
(In thousands,
except per share data)
|
|
2023
|
|
2022
|
Assets
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash, cash equivalents
and restricted cash
|
|
$
78,259
|
|
$
116,067
|
Receivables
|
|
715,381
|
|
728,582
|
Prepaid
expenses
|
|
80,816
|
|
74,234
|
Other current
assets
|
|
19,623
|
|
13,049
|
Total current
assets
|
|
894,079
|
|
931,932
|
Property, plant, and
equipment, net
|
|
82,903
|
|
78,715
|
Goodwill
|
|
1,656,965
|
|
1,653,822
|
Intangible assets,
net
|
|
430,133
|
|
497,951
|
Right-of-use
assets
|
|
43,072
|
|
52,825
|
Other non-current
assets
|
|
19,343
|
|
17,858
|
Total non-current
assets
|
|
2,232,416
|
|
2,301,171
|
Total
Assets
|
|
$ 3,126,495
|
|
$ 3,233,103
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Accounts
payable
|
|
$
437,563
|
|
$
406,706
|
Compensation and other
employee benefits
|
|
139,401
|
|
168,038
|
Short-term
debt
|
|
15,500
|
|
11,850
|
Other accrued
liabilities
|
|
237,890
|
|
196,538
|
Total current
liabilities
|
|
830,354
|
|
783,132
|
Long-term debt,
net
|
|
1,153,082
|
|
1,262,811
|
Deferred tax
liabilities
|
|
9,090
|
|
15,813
|
Operating lease
liabilities
|
|
35,113
|
|
41,083
|
Other non-current
liabilities
|
|
109,765
|
|
133,185
|
Total non-current
liabilities
|
|
1,307,050
|
|
1,452,892
|
Total
liabilities
|
|
2,137,404
|
|
2,236,024
|
Commitments and
contingencies (Note 8)
|
|
|
|
|
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; 31,186,590 and
30,470,475 shares issued and outstanding as of September 29, 2023
and December
31, 2022, respectively
|
|
312
|
|
305
|
Additional paid in
capital
|
|
756,781
|
|
748,877
|
Retained
earnings
|
|
231,343
|
|
253,424
|
Accumulated other
comprehensive income (loss)
|
|
655
|
|
(5,527)
|
Total shareholders'
equity
|
|
989,091
|
|
997,079
|
Total Liabilities
and Shareholders' Equity
|
|
$ 3,126,495
|
|
$ 3,233,103
|
V2X,
INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
|
|
|
|
Nine Months
Ended
|
|
|
September
29,
|
|
September
30,
|
(In
thousands)
|
|
2023
|
|
2022
|
Operating
activities
|
|
|
|
|
Net loss
|
|
$
(22,081)
|
|
$
(3,711)
|
Adjustments to
reconcile net loss to net cash provided by operating
activities:
|
|
|
|
|
Depreciation
expense
|
|
16,532
|
|
8,663
|
Amortization of
intangible assets
|
|
67,818
|
|
28,597
|
Loss on disposal of
property, plant, and equipment
|
|
625
|
|
59
|
Stock-based
compensation
|
|
26,809
|
|
18,800
|
Amortization of debt
issuance costs
|
|
6,875
|
|
3,903
|
Loss on extinguishment
of debt
|
|
22,052
|
|
—
|
Changes in assets and
liabilities:
|
|
|
|
|
Receivables
|
|
9,647
|
|
(10,635)
|
Prepaid
expenses
|
|
(5,067)
|
|
(4,142)
|
Other
assets
|
|
13,196
|
|
215
|
Accounts
payable
|
|
28,094
|
|
52,444
|
Deferred
taxes
|
|
(9,887)
|
|
—
|
Compensation and other
employee benefits
|
|
(28,620)
|
|
22,038
|
Other
liabilities
|
|
9,182
|
|
(24,672)
|
Net cash provided
by operating activities
|
|
135,175
|
|
91,559
|
Investing
activities
|
|
|
|
|
Purchases of capital
assets
|
|
(16,559)
|
|
(8,231)
|
Proceeds from the
disposition of assets
|
|
16
|
|
20
|
Acquisition of
business, net of cash acquired
|
|
—
|
|
194,431
|
Distribution from
joint venture
|
|
834
|
|
—
|
Net cash (used in)
provided by investing activities
|
|
(15,709)
|
|
186,220
|
Financing
activities
|
|
|
|
|
Proceeds from issuance
of long-term debt
|
|
250,000
|
|
—
|
Repayments of
long-term debt
|
|
(428,763)
|
|
(58,363)
|
Proceeds from
revolver
|
|
719,750
|
|
392,000
|
Repayments of
revolver
|
|
(669,750)
|
|
(495,000)
|
Proceeds from exercise
of stock options
|
|
7
|
|
370
|
Payment of debt
issuance costs
|
|
(7,507)
|
|
(2,324)
|
Prepayment premium on
early redemption of debt
|
|
(1,600)
|
|
—
|
Payments of employee
withholding taxes on share-based compensation
|
|
(17,871)
|
|
(1,934)
|
Net cash used in
financing activities
|
|
(155,734)
|
|
(165,251)
|
Exchange rate effect
on cash
|
|
(1,540)
|
|
(3,668)
|
Net change in cash,
cash equivalents and restricted cash
|
|
(37,808)
|
|
108,860
|
Cash and cash
equivalents - beginning of period
|
|
116,067
|
|
38,513
|
Cash, cash
equivalents and restricted cash - end of period
|
|
$
78,259
|
|
$
147,373
|
|
|
|
|
|
Supplemental disclosure
of cash flow information:
|
|
|
|
|
Interest
paid
|
|
$
89,635
|
|
$
27,035
|
Income taxes
paid
|
|
$
5,242
|
|
$
10,344
|
Purchase of capital
assets on account
|
|
$
2,882
|
|
$
438
|
Common stock issued for
business acquisition
|
|
$
—
|
|
$
630,636
|
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 net income, adjusted diluted earnings per share,
adjusted operating income, adjusted EBITDA, adjusted EBITDA margin,
adjusted operating cash flow, and pro forma 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 net income, adjusted diluted earnings per share,
adjusted operating income, adjusted EBITDA, adjusted EBITDA margin,
adjusted net cash provided by (used in) operating activities, and
pro forma revenue, however, are not measures of financial
performance under GAAP and should not be considered a substitute
for financial measures determined in accordance with GAAP.
Definitions and reconciliations of these items are provided
below.
- Pro forma revenue is defined as the combined results of
our operations as if the Merger had occurred on January 1, 2021.
- 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 that impact current results but are
not related to our ongoing operations, such as M&A,
integration, and related costs.
- Adjusted EBITDA is defined as operating income,
adjusted to exclude depreciation and amortization of intangible
assets, and items that may include, but are not limited to,
significant charges or credits, and unusual and infrequent
non-operating items that impact current results but are not related
to our ongoing operations, such as M&A, integration, and
related costs.
- Adjusted EBITDA margin is defined as adjusted
EBITDA 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 that impact current results but are not related
to our ongoing operations, such as M&A, integration and related
costs, amortization of acquired intangible assets, amortization of
debt issuance costs, and loss on extinguishment of debt.
- Adjusted diluted earnings per share is defined as
adjusted net income divided by the weighted average diluted common
shares outstanding.
- Cash interest, net is defined as interest expense, net
adjusted to exclude amortization of debt issuance costs.
- Adjusted net cash provided by (used in)
operating activities is defined as net cash provided by (or
used in) operating activities adjusted to exclude infrequent
non-operating items, such as M&A payments and related
costs.
- Net leverage ratio is defined as net debt (or total debt
less unrestricted cash) divided by trailing twelve-month (TTM) bank
EBITDA.
In this document, the Company presents certain forward-looking
non-GAAP metrics. The Company does not provide outlook on a GAAP
basis because the items that the Company excludes from GAAP to
calculate the comparable non-GAAP measure can be dependent on
future events that are less capable of being controlled or reliably
predicted by management and are not part of the Company's routine
operating activities. Additionally, management does not forecast
many of the excluded items for internal use and therefore cannot
create or rely on outlook done on a GAAP basis. The
occurrence, timing, and amount of any of the items excluded from
GAAP to calculate non-GAAP could significantly impact the Company's
fiscal 2023 GAAP results.
Non-GAAP Tables
($K, except per share
data)
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September 29,
2023
|
|
September 30,
2022
|
|
September
29,
2023
|
|
September
30,
2022
|
Revenue
|
$ 1,001,507
|
|
$
958,156
|
|
$ 2,922,819
|
|
$ 1,912,693
|
Net income
(loss)
|
$
(6,400)
|
|
$
(17,039)
|
|
$
(22,081)
|
|
$
(3,711)
|
Plus:
|
|
|
|
|
|
|
|
Income tax
benefit
|
(4,837)
|
|
(5,739)
|
|
(10,364)
|
|
(2,453)
|
Other expense,
net
|
2,024
|
|
—
|
|
2,335
|
|
—
|
Interest expense,
net
|
30,252
|
|
27,265
|
|
93,946
|
|
30,908
|
Loss on extinguishment
of debt
|
—
|
|
—
|
|
22,052
|
|
—
|
Amortization of
intangible assets
|
22,607
|
|
24,174
|
|
67,818
|
|
28,597
|
M&A, integration,
and related costs
|
15,824
|
|
45,931
|
|
41,565
|
|
60,878
|
Adjusted operating
income
|
$
59,470
|
|
$
74,592
|
|
$
195,271
|
|
$
114,219
|
Plus:
|
|
|
|
|
|
|
|
Depreciation
expense
|
5,206
|
|
5,425
|
|
16,532
|
|
8,663
|
Adjusted
EBITDA
|
$
64,676
|
|
$
80,017
|
|
$
211,803
|
|
$
122,882
|
Adjusted EBITDA
margin
|
6.5 %
|
|
8.4 %
|
|
7.2 %
|
|
6.4 %
|
Minus:
|
|
|
|
|
|
|
|
Cash interest expense,
net
|
28,069
|
|
23,750
|
|
87,071
|
|
27,005
|
Income tax expense, as
adjusted
|
5,937
|
|
9,633
|
|
26,329
|
|
16,751
|
Depreciation
expense
|
5,206
|
|
5,425
|
|
16,532
|
|
8,663
|
Other expense,
net
|
2,024
|
|
—
|
|
2,335
|
|
—
|
Adjusted net
income
|
$
23,440
|
|
$
41,209
|
|
$
79,536
|
|
$
70,463
|
($K, except per share
data)
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September 29,
2023
|
|
September 30,
2022
|
|
September 29,
2023
|
|
September 30,
2022
|
Diluted earnings
(loss) per share
|
$
(0.21)
|
|
$
(0.57)
|
|
$
(0.71)
|
|
$
(0.21)
|
Plus:
|
|
|
|
|
|
|
|
M&A, integration
and related costs
|
0.37
|
|
1.20
|
|
0.97
|
|
2.69
|
Amortization of
intangible assets
|
0.52
|
|
0.63
|
|
1.58
|
|
1.26
|
Amortization of debt
issuance costs and
Loss on extinguishment of debt
|
0.05
|
|
0.09
|
|
0.67
|
|
0.17
|
Adjusted diluted
earnings per share
|
$
0.73
|
|
$
1.35
|
|
$
2.51
|
|
$
3.91
|
|
|
|
|
|
|
|
|
Average shares
outstanding
|
|
|
|
|
|
|
|
Basic, as
reported
|
31,179
|
|
29,830
|
|
31,048
|
|
17,806
|
Diluted, as
reported
|
31,179
|
|
29,830
|
|
31,048
|
|
17,806
|
Adjusted
diluted
|
31,761
|
|
30,172
|
|
31,520
|
|
18,020
|
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
29,
|
|
September
30,
|
|
|
September
29,
|
|
September
30,
|
|
(In
thousands)
|
|
2023
|
%
|
2022
|
%
|
|
2023
|
%
|
2022
|
%
|
Army
|
|
$
412,841
|
41 %
|
$
352,923
|
37 %
|
|
$ 1,196,843
|
41 %
|
$
959,792
|
50 %
|
Navy
|
|
311,088
|
31 %
|
270,071
|
28 %
|
|
896,976
|
31 %
|
410,173
|
21 %
|
Air Force
|
|
134,728
|
13 %
|
165,085
|
17 %
|
|
418,710
|
14 %
|
295,015
|
15 %
|
Other
|
|
142,850
|
15 %
|
170,077
|
18 %
|
|
410,290
|
14 %
|
247,713
|
14 %
|
Total
revenue
|
|
$ 1,001,507
|
|
$
958,156
|
|
|
$ 2,922,819
|
|
$ 1,912,693
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue by
Contract Type
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
September
29,
|
|
September
30,
|
|
|
September
29,
|
|
September
30,
|
|
(In
thousands)
|
|
2023
|
%
|
2022
|
%
|
|
2023
|
%
|
2022
|
%
|
Cost-plus and
cost-reimbursable
|
|
$
570,402
|
57 %
|
$
505,743
|
53 %
|
|
$ 1,589,619
|
54 %
|
$ 1,172,397
|
61 %
|
Firm-fixed-price
|
|
402,219
|
40 %
|
416,618
|
43 %
|
|
1,237,110
|
42 %
|
672,970
|
35 %
|
Time-and-materials
|
|
28,886
|
3 %
|
35,795
|
4 %
|
|
96,090
|
4 %
|
67,326
|
4 %
|
Total
revenue
|
|
$ 1,001,507
|
|
$
958,156
|
|
|
$ 2,922,819
|
|
$ 1,912,693
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue by
Contract Relationship
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
September
29,
|
|
September
30,
|
|
|
September
29,
|
|
September
30,
|
|
(In
thousands)
|
|
2023
|
%
|
2022
|
%
|
|
2023
|
%
|
2022
|
%
|
Prime
contractor
|
|
$
945,669
|
94 %
|
$
886,415
|
93 %
|
|
$ 2,740,908
|
94 %
|
$ 1,781,961
|
93 %
|
Subcontractor
|
|
55,838
|
6 %
|
71,741
|
7 %
|
|
181,911
|
6 %
|
130,732
|
7 %
|
Total
revenue
|
|
$ 1,001,507
|
|
$
958,156
|
|
|
$ 2,922,819
|
|
$ 1,912,693
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue by
Geographic Region
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
September
29,
|
|
September
30,
|
|
|
September
29,
|
|
September
30,
|
|
(In
thousands)
|
|
2023
|
%
|
2022
|
%
|
|
2023
|
%
|
2022
|
%
|
United
States
|
|
$
571,405
|
57 %
|
$
582,817
|
61 %
|
|
$ 1,698,689
|
58 %
|
$
908,271
|
47 %
|
Middle East
|
|
305,918
|
31 %
|
261,997
|
27 %
|
|
866,122
|
30 %
|
747,310
|
39 %
|
Asia
|
|
63,259
|
6 %
|
50,673
|
5 %
|
|
193,109
|
7 %
|
113,265
|
6 %
|
Europe
|
|
60,925
|
6 %
|
62,669
|
7 %
|
|
164,899
|
5 %
|
143,847
|
8 %
|
Total
revenue
|
|
$ 1,001,507
|
|
$
958,156
|
|
|
$ 2,922,819
|
|
$ 1,912,693
|
|
CONTACT:
V2X, Inc.
Mike
Smith,
CFA
719-637-5773
ir@gov2x.com
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SOURCE V2X, Inc.