COLORADO SPRINGS, Colo.,
Aug. 10, 2021 /PRNewswire/
-- Vectrus, Inc. (NYSE: VEC) announced strong second quarter
2021 financial results.
"Our second quarter results are demonstrative of Vectrus'
ability to provide mission critical and rapid response converged
solutions across all time zones and operational environments," said
Chuck Prow, Chief Executive Officer
of Vectrus.
"During the quarter, revenue grew 40% year-over-year, with
organic revenue growth of 21%," said Prow. "Our strong organic
revenue growth in the quarter was driven partly by the successful
performance and execution of a task order to support an important
training initiative based in the Indo-Pacific region, as well as
achieving full operational capability under our new LOGCAP V
CENTCOM task order in Iraq."
"Our adjusted EBITDA margin in the second quarter was strong,
reaching 5.6%," said Prow. "Our year-to-date adjusted EBITDA margin
is 5.2%, which is driven in part by the continued focus on
operationalizing our enterprise performance improvement initiatives
and demonstrates Vectrus' ability to expand margins over
time."
"LOGCAP V continues to gain momentum and during the quarter we
successfully achieved full operational capability in Iraq," said Prow. "This transition represents
a significant milestone for Vectrus and our employees that worked
around the clock in challenging environments to ensure client
success. We look forward to serving as the Army's preferred source
for base operations support and sustainment services in
Iraq over the next several
years."
Prow continued, "In terms of INDOPACOM, we are experiencing
growth executing task orders to support mission requirements in the
region. We expect growth to continue as we ramp up operations
in Kwajalein and become fully operational by mid-2022."
"We are also continuing to execute client campaigns by inserting
innovative technology-based solutions into infrastructure and
creating value through mission effectiveness and cost reduction,"
said Prow. "In the second quarter, we were awarded a position on
the U.S. Navy Supply Systems Command Worldwide Expeditionary
Multiple Award IDIQ Contract2 (WEXMAC). WEXMAC provides
worldwide expeditionary supplies and services to support
humanitarian and disaster relief, military exercises, and
contingencies in 22 geographic regions. This award builds on
our position under the Naval Facilities Engineering Command Global
Contingency Services Multiple Award IDIQ Contract II, which has
been an instrumental part of our Navy campaign. Importantly, WEXMAC
represents another avenue to access this important client and we
see significant opportunity to leverage Vectrus' geographic
positioning to support future opportunities under this new
contract."
"Additionally, we continue to focus on advancing our presence
with the Air Force and in the second quarter won two new
firm-fixed-price task orders valued at $40
million to provide installation and other support services,
which were awarded under the Air Force Contract Augmentation
Program V, or AFCAP V, which is a $6.4
billion IDIQ contract vehicle that provides contingency
planning, deploying, training, and equipping of forces; emergency
and contingency construction; and logistics and commodities and
services," said Prow.
Second Quarter 2021 Results
Second quarter 2021 revenue of $470.8
million was up $134.8 million
year-on-year or 40.1% as compared to the same period last
year. Revenue grew by $64.4
million year-over-year as a result of the two acquisitions
on December 31, 2020 and grew
$70.4 million organically.
Operating income was $22.6 million
or 4.8% margin. Adjusted operating income1 was
$25.0 million or 5.3% margin.
Adjusted EBITDA1 was $26.6
million or 5.6% margin. "Margin improved 360 basis points
year-over-year in the second quarter and 210 basis points
year-to-date," said Susan Lynch,
Senior Vice President and Chief Financial Officer. "Our strong
first half results were driven by the ongoing execution of our
enterprise performance improvement initiatives, recent
acquisitions, our team's success converting certain cost-plus
components of a contract to fixed price and continued focus on
prudently managing our cost structure. We remain focused on
transforming Vectrus into a higher margin business and our second
quarter and year-to-date performance reflects our ability to expand
margins over time."
Fully diluted EPS for the second quarter of 2021 was
$1.35 as compared to $0.09 cents in the same period last year.
Adjusted diluted EPS1, which adds back amortization of
acquired intangible assets, was $1.52
for the quarter, as compared to $0.31
cents in the prior year. The increase in diluted EPS
was driven by the company's improved operating performance and two
recent acquisitions.
Lynch continued, "Our results year-to-date are representative of
Vectrus' ability to generate substantial growth and earnings power.
The second quarter results demonstrate our organic ability and how
our strategic acquisitions are transforming the company into a
higher value, growth-oriented platform. Our thoughtful deployment
of capital is adding value from both an operational and financial
perspective and we believe our strong balance sheet positions
Vectrus to pursue future opportunities that align with our strategy
and increase shareholder value."
Cash provided by operating activities through July 2, 2021 was $14.0
million. Operating cash flow decreased year on year
primarily due to the CARES Act Benefit in Q2'20 of $13 million in addition to the working capital
requirements associated with several new program phase-ins.
Net debt at July 2, 2021 was
$105.2 million, up $100.4 million from July
3, 2020. Total debt at July 2,
2021 was $175.0 million, up
$107.5 million from $67.5 million at July 3,
2020. Both net and total debt were up due to the
acquisitions of Zenetex and HHB on December
31, 2020. Cash at quarter-end was $69.8 million. Total consolidated indebtedness to
consolidated EBITDA1 (total leverage ratio) was
1.76x.
Total backlog as of July 2, 2021
was $4.9 billion and funded backlog
was $1.3 billion. The trailing
twelve-month book-to-bill was 1.2x as of July 2, 2021.
Increasing 2021 Revenue and EPS Guidance
Lynch continued, "In light of our strong year-to-date
performance, we are increasing the revenue and diluted EPS guidance
ranges." Guidance for 2021 is as follows:
$ millions, except
for EBITDA margins and per share amounts
|
2020
Actual
|
2021
Guidance
|
2021
Mid-Point
|
2021
Mid-Point
vs 2020
|
Revenue
|
$1,396
|
$1,745
|
to
|
$1,780
|
$1,762
|
26.2%
|
Operating Income
Margin
|
3.1%
|
3.7%
|
to
|
3.9%
|
3.8%
|
70 bps
|
Adjusted EBITDA
Margin1
|
4.0%
|
4.8%
|
to
|
5.0%
|
4.9%
|
90 bps
|
Earnings Per
Share
|
$3.14
|
$3.87
|
to
|
$4.18
|
$4.02
|
28.0%
|
Adjusted Diluted
Earnings Per Share1
|
$3.36
|
$4.76
|
to
|
$5.07
|
$4.92
|
46.4%
|
Net Cash Provided by
Operating Activities
|
$64.1
|
$58.0
|
to
|
$65.0
|
$61.5
|
(4.1%)
|
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.
Second Quarter 2021 Conference Call
Management will conduct a conference call with analysts and
investors at 4:30 p.m. ET on Tuesday, August
10, 2021. U.S.-based participants may dial in to the
conference call at 877-407-0792, while international participants
may dial 201-689-8263. A live webcast of the conference call as
well as an accompanying slide presentation will be available on the
Vectrus Investor Relations website at http://investors.vectrus.com
or https://www.webcaster4.com/Webcast/Page/1431/42374.
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
August 24, 2021, at 844-512-2921
(domestic) or 412-317-6671 (international) with passcode
13721935.
Footnotes:
1 See "Key Performance Indicators and Non-GAAP
Financial Measures" for reconciliation.
2 WEXMAC is currently under protest.
About Vectrus
For more than 70 years, Vectrus has provided critical mission
support for our customers' toughest operational challenges. As a
high-performing organization with exceptional talent, deep domain
knowledge, a history of long-term customer relationships, and
groundbreaking technical expertise, we deliver innovative,
mission-matched solutions for our military and government customers
worldwide. Whether it's base operations support, supply chain and
logistics, IT mission support, engineering and digital integration,
security, or maintenance, repair, and overhaul, our customers count
on us for on-target solutions that increase efficiency, reduce
costs, improve readiness, and strengthen national security. Vectrus
is headquartered in Colorado Springs,
Colo., and includes approximately 9,200 employees spanning
206 locations in 27 countries. 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.
VECTRUS,
INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
July 2,
|
|
July 3,
|
|
July 2,
|
|
July 3,
|
(In thousands,
except per share data)
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Revenue
|
|
$
|
470,845
|
|
|
$
|
336,063
|
|
|
$
|
904,849
|
|
|
$
|
687,797
|
|
Cost of
revenue
|
|
422,660
|
|
|
311,817
|
|
|
816,308
|
|
|
631,510
|
|
Selling, general, and
administrative expenses
|
|
25,605
|
|
|
21,816
|
|
|
49,427
|
|
|
41,374
|
|
Operating
income
|
|
22,580
|
|
|
2,430
|
|
|
39,114
|
|
|
14,913
|
|
Interest expense,
net
|
|
(2,253)
|
|
|
(1,346)
|
|
|
(4,186)
|
|
|
(3,048)
|
|
Income from
operations before income taxes
|
|
20,327
|
|
|
1,084
|
|
|
34,928
|
|
|
11,865
|
|
Income tax (benefit)
expense
|
|
4,393
|
|
|
(27)
|
|
|
6,946
|
|
|
2,086
|
|
Net income
|
|
$
|
15,934
|
|
|
$
|
1,111
|
|
|
$
|
27,982
|
|
|
$
|
9,779
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
1.36
|
|
|
$
|
0.10
|
|
|
$
|
2.40
|
|
|
$
|
0.84
|
|
Diluted
|
|
$
|
1.35
|
|
|
$
|
0.09
|
|
|
$
|
2.37
|
|
|
$
|
0.83
|
|
Weighted average
common shares outstanding - basic
|
|
11,715
|
|
|
11,607
|
|
|
11,681
|
|
|
11,575
|
|
Weighted average
common shares outstanding - diluted
|
|
11,828
|
|
|
11,745
|
|
|
11,823
|
|
|
11,742
|
|
VECTRUS,
INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
|
|
|
|
July 2,
|
|
December
31,
|
(In thousands,
except share information)
|
|
2021
|
|
2020
|
Assets
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
69,803
|
|
|
$
|
66,949
|
|
Restricted
cash
|
|
—
|
|
|
1,778
|
|
Receivables
|
|
353,813
|
|
|
314,959
|
|
Other current
assets
|
|
27,594
|
|
|
24,702
|
|
Total current
assets
|
|
451,210
|
|
|
408,388
|
|
Property, plant, and
equipment, net
|
|
22,612
|
|
|
22,573
|
|
Goodwill
|
|
317,608
|
|
|
339,702
|
|
Intangible assets,
net
|
|
68,818
|
|
|
48,105
|
|
Right-of-use
assets
|
|
26,997
|
|
|
18,718
|
|
Other non-current
assets
|
|
8,902
|
|
|
6,325
|
|
Total non-current
assets
|
|
444,937
|
|
|
435,423
|
|
Total
Assets
|
|
$
|
896,147
|
|
|
$
|
843,811
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Accounts
payable
|
|
$
|
175,002
|
|
|
$
|
159,586
|
|
Compensation and other
employee benefits
|
|
90,646
|
|
|
79,568
|
|
Short-term
debt
|
|
9,800
|
|
|
8,600
|
|
Other accrued
liabilities
|
|
41,223
|
|
|
40,657
|
|
Total current
liabilities
|
|
316,671
|
|
|
288,411
|
|
Long-term debt,
net
|
|
163,997
|
|
|
168,751
|
|
Deferred tax
liability
|
|
39,709
|
|
|
39,386
|
|
Other non-current
liabilities
|
|
42,946
|
|
|
42,325
|
|
Total non-current
liabilities
|
|
246,652
|
|
|
250,462
|
|
Total
liabilities
|
|
563,323
|
|
|
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; 11,724,430 and 11,624,717
shares
issued and outstanding as of July 2, 2021 and December 31, 2020,
respectively
|
|
117
|
|
|
116
|
|
Additional paid in
capital
|
|
84,650
|
|
|
82,823
|
|
Retained
earnings
|
|
250,008
|
|
|
222,026
|
|
Accumulated other
comprehensive loss
|
|
(1,951)
|
|
|
(27)
|
|
Total shareholders'
equity
|
|
332,824
|
|
|
304,938
|
|
Total Liabilities
and Shareholders' Equity
|
|
$
|
896,147
|
|
|
$
|
843,811
|
|
VECTRUS,
INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
|
|
|
|
Six Months
Ended
|
|
|
July 2,
|
|
July 3,
|
(In
thousands)
|
|
2021
|
|
2020
|
Operating
activities
|
|
|
|
|
Net income
|
|
$
|
27,982
|
|
|
$
|
9,779
|
|
Adjustments to
reconcile net income to net cash (used in) provided by operating
activities:
|
Depreciation
expense
|
|
3,097
|
|
|
1,971
|
|
Amortization of
intangible assets
|
|
4,891
|
|
|
2,028
|
|
Loss on disposal of
property, plant, and equipment
|
|
60
|
|
|
—
|
|
Stock-based
compensation
|
|
4,923
|
|
|
5,411
|
|
Amortization of debt
issuance costs
|
|
463
|
|
|
193
|
|
Changes in assets and
liabilities:
|
|
|
|
|
Receivables
|
|
(38,882)
|
|
|
9,429
|
|
Other
assets
|
|
(4,063)
|
|
|
(7,938)
|
|
Accounts
payable
|
|
18,784
|
|
|
(6,021)
|
|
Deferred
taxes
|
|
370
|
|
|
(2,735)
|
|
Compensation and other
employee benefits
|
|
11,285
|
|
|
7,037
|
|
Other
liabilities
|
|
(14,884)
|
|
|
15,252
|
|
Net cash provided
by operating activities
|
|
14,026
|
|
|
34,406
|
|
Investing
activities
|
|
|
|
|
Purchases of capital
assets and intangibles
|
|
(4,833)
|
|
|
(2,246)
|
|
Proceeds from the
disposition of assets
|
|
16
|
|
|
—
|
|
Business acquisition
purchase price adjustment
|
|
262
|
|
|
—
|
|
Contribution to join
venture
|
|
(1,846)
|
|
|
—
|
|
Net cash used in
investing activities
|
|
(6,401)
|
|
|
(2,246)
|
|
Financing
activities
|
|
|
|
|
Repayments of
long-term debt
|
|
(4,000)
|
|
|
(3,000)
|
|
Proceeds from
revolver
|
|
215,000
|
|
|
144,000
|
|
Repayments of
revolver
|
|
(215,000)
|
|
|
(144,000)
|
|
Proceeds from exercise
of stock options
|
|
113
|
|
|
59
|
|
Payments of debt
issuance costs
|
|
(17)
|
|
|
—
|
|
Payments of employee
withholding taxes on share-based compensation
|
|
(2,272)
|
|
|
(1,873)
|
|
Net cash used in
financing activities
|
|
(6,176)
|
|
|
(4,814)
|
|
Exchange rate
effect on cash
|
|
(373)
|
|
|
55
|
|
Net change in cash,
cash equivalents and restricted cash
|
|
1,076
|
|
|
27,401
|
|
Cash, cash
equivalents and restricted cash-beginning of year
|
|
68,727
|
|
|
35,318
|
|
Cash, cash
equivalents and restricted cash-end of period
|
|
$
|
69,803
|
|
|
$
|
62,719
|
|
|
|
|
|
|
Supplemental
disclosure of cash flow information:
|
|
|
|
|
Interest
paid
|
|
$
|
3,111
|
|
|
$
|
2,527
|
|
Income taxes
paid
|
|
$
|
5,747
|
|
|
$
|
70
|
|
Purchase of capital
assets on account
|
|
$
|
618
|
|
|
$
|
447
|
|
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
July 2, 2021 As Reported
|
|
M&A Related
Costs
|
|
LOGCAP V
Pre-Operational Legal Costs
|
|
Amortization of
acquired intangible assets
|
|
Three Months Ended
July 2, 2021 As Reported - Adjusted
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
470,845
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
470,845
|
|
Growth
|
|
40.1
|
%
|
|
|
|
|
|
|
|
40.1
|
%
|
Operating
income
|
|
$
|
22,580
|
|
|
$
|
—
|
|
|
$
|
21
|
|
|
$
|
2,436
|
|
|
$
|
25,037
|
|
Operating
margin
|
|
4.8
|
%
|
|
|
|
|
|
|
|
5.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
$
|
(2,253)
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(2,253)
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations before income taxes
|
|
$
|
20,327
|
|
|
$
|
—
|
|
|
$
|
21
|
|
|
$
|
2,436
|
|
|
$
|
22,784
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
$
|
4,393
|
|
|
$
|
—
|
|
|
$
|
4
|
|
|
$
|
463
|
|
|
$
|
4,860
|
|
Income tax
rate
|
|
21.6
|
%
|
|
|
|
|
|
|
|
21.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
15,934
|
|
|
$
|
—
|
|
|
$
|
17
|
|
|
$
|
1,973
|
|
|
$
|
17,924
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding, diluted
|
|
11,828
|
|
|
|
|
|
|
|
|
11,828
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
|
$
|
1.35
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
0.17
|
|
|
$
|
1.52
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA (Non-GAAP
Measures)
|
|
|
|
|
|
|
|
|
|
|
($ in
thousands)
|
|
Three Months Ended
July 2, 2021 As Reported
|
|
M&A Related
Costs
|
|
LOGCAP V
Pre-Operational Legal Costs
|
|
Amortization of
acquired intangible assets
|
|
Three Months Ended
July 2, 2021 As Reported - Adjusted
|
Operating
Income
|
|
$
|
22,580
|
|
|
$
|
—
|
|
|
$
|
21
|
|
|
$
|
2,436
|
|
|
$
|
25,037
|
|
|
|
|
|
|
|
|
|
|
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
$
|
3,991
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(2,436)
|
|
|
$
|
1,555
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
$
|
26,571
|
|
|
$
|
—
|
|
|
$
|
21
|
|
|
$
|
—
|
|
|
$
|
26,592
|
|
EBITDA
Margin
|
|
5.6
|
%
|
|
|
|
|
|
|
|
5.6
|
%
|
|
Adjusted Net
Income, Adjusted Diluted Earnings Per Share (Non-GAAP
Measures)
|
|
|
|
|
|
|
|
|
|
|
($ in thousands,
except per share data)
|
|
Three Months Ended
July 3, 2020 As Reported
|
|
M&A Related
Costs
|
|
LOGCAP V
Pre-Operational Legal Costs
|
|
Amortization of
acquired intangible assets
|
|
Three Months Ended
July 3, 2020 As Reported - Adjusted
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
336,063
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
336,063
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
$
|
2,430
|
|
|
$
|
2,193
|
|
|
$
|
46
|
|
|
$
|
1,013
|
|
|
$
|
5,682
|
|
Operating
margin
|
|
0.7
|
%
|
|
|
|
|
|
|
|
1.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
$
|
(1,346)
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(1,346)
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations before income taxes
|
|
$
|
1,084
|
|
|
$
|
2,193
|
|
|
$
|
46
|
|
|
$
|
1,013
|
|
|
$
|
4,336
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
$
|
(27)
|
|
|
$
|
504
|
|
|
$
|
11
|
|
|
$
|
171
|
|
|
$
|
659
|
|
Income tax
rate
|
|
(2.5)
|
%
|
|
|
|
|
|
|
|
15.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
1,111
|
|
|
$
|
1,689
|
|
|
$
|
35
|
|
|
$
|
842
|
|
|
$
|
3,677
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding, diluted
|
|
11,745
|
|
|
|
|
|
|
|
|
11,745
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
|
$
|
0.09
|
|
|
$
|
0.14
|
|
|
$
|
—
|
|
|
$
|
0.07
|
|
|
$
|
0.31
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA (Non-GAAP
Measures)
|
|
|
|
|
|
|
|
|
|
|
($ in
thousands)
|
|
Three Months Ended
July 3, 2020 As Reported
|
|
M&A Related
Costs
|
|
LOGCAP V
Pre-Operational Legal Costs
|
|
Amortization of
acquired intangible assets
|
|
Three Months Ended
July 3, 2020 As Reported - Adjusted
|
Operating
Income
|
|
$
|
2,430
|
|
|
$
|
2,193
|
|
|
$
|
46
|
|
|
$
|
1,013
|
|
|
$
|
5,682
|
|
|
|
|
|
|
|
|
|
|
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
$
|
1,988
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(1,013)
|
|
|
$
|
975
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
$
|
4,418
|
|
|
$
|
2,193
|
|
|
$
|
46
|
|
|
$
|
—
|
|
|
$
|
6,657
|
|
EBITDA
Margin
|
|
1.3
|
%
|
|
|
|
|
|
|
|
2.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Net
Income, Adjusted Diluted Earnings Per Share (Non-GAAP
Measures)
|
|
|
|
|
|
|
|
|
|
|
($ in thousands,
except per share data)
|
|
Six Months Ended
July 2, 2021 As Reported
|
|
M&A Related
Costs
|
|
LOGCAP V
Pre-Operational Legal Costs
|
|
Amortization of
acquired intangible assets
|
|
Six Months Ended
July 2, 2021 As Reported - Adjusted
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
904,849
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
904,849
|
|
Growth
|
|
|
31.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
31.6%
|
|
Growth
|
|
|
%
|
|
|
|
|
|
|
|
1
|
%
|
Operating
income
|
|
$
|
39,114
|
|
|
$
|
—
|
|
|
$
|
178
|
|
|
$
|
4,891
|
|
|
$
|
44,183
|
|
Operating
margin
|
|
4.3
|
%
|
|
|
|
|
|
|
|
4.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
$
|
(4,186)
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(4,186)
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations before income taxes
|
|
$
|
34,928
|
|
|
$
|
—
|
|
|
$
|
178
|
|
|
$
|
4,891
|
|
|
$
|
39,997
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
$
|
6,946
|
|
|
$
|
—
|
|
|
$
|
34
|
|
|
$
|
929
|
|
|
$
|
7,909
|
|
Income tax
rate
|
|
19.9
|
%
|
|
|
|
|
|
|
|
19.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
27,982
|
|
|
$
|
—
|
|
|
$
|
144
|
|
|
$
|
3,962
|
|
|
$
|
32,088
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding, diluted
|
|
11,823
|
|
|
|
|
|
|
|
|
11,823
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
|
$
|
2.37
|
|
|
$
|
—
|
|
|
$
|
0.01
|
|
|
$
|
0.33
|
|
|
$
|
2.71
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA (Non-GAAP
Measures)
|
|
|
|
|
|
|
|
|
|
|
($ in
thousands)
|
|
Six Months Ended
July 2, 2021 As Reported
|
|
M&A Related
Costs
|
|
LOGCAP V
Pre-Operational Legal Costs
|
|
Amortization of
acquired intangible assets
|
|
Six Months Ended
July 2, 2021 As Reported - Adjusted
|
Operating
Income
|
|
$
|
39,114
|
|
|
$
|
—
|
|
|
$
|
178
|
|
|
$
|
4,891
|
|
|
$
|
44,183
|
|
|
|
|
|
|
|
|
|
|
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
$
|
7,989
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(4,891)
|
|
|
$
|
3,097
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
$
|
47,103
|
|
|
$
|
—
|
|
|
$
|
178
|
|
|
$
|
—
|
|
|
$
|
47,280
|
|
EBITDA
Margin
|
|
5.2
|
%
|
|
|
|
|
|
|
|
5.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Net
Income, Adjusted Diluted Earnings Per Share (Non-GAAP
Measures)
|
|
|
|
|
|
|
|
|
|
|
($ in thousands,
except per share data)
|
|
Six Months Ended
July 3, 2020 As Reported
|
|
M&A Related
Costs
|
|
LOGCAP V
Pre-Operational Legal Costs
|
|
Amortization of
acquired intangible assets
|
|
Six Months Ended
July 3, 2020 As Reported - Adjusted
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
687,797
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
687,797
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
$
|
14,913
|
|
|
$
|
2,193
|
|
|
$
|
187
|
|
|
$
|
2,028
|
|
|
$
|
19,321
|
|
Operating
margin
|
|
2.2
|
%
|
|
|
|
|
|
|
|
2.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
$
|
(3,048)
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(3,048)
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations before income taxes
|
|
$
|
11,865
|
|
|
$
|
2,193
|
|
|
$
|
187
|
|
|
$
|
2,028
|
|
|
$
|
16,273
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
$
|
2,086
|
|
|
$
|
504
|
|
|
$
|
39
|
|
|
$
|
342
|
|
|
$
|
2,971
|
|
Income tax
rate
|
|
17.6
|
%
|
|
|
|
|
|
|
|
18.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
9,779
|
|
|
$
|
1,689
|
|
|
$
|
148
|
|
|
$
|
1,686
|
|
|
$
|
13,302
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding, diluted
|
|
11,742
|
|
|
|
|
|
|
|
|
11,742
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
|
$
|
0.83
|
|
|
$
|
0.14
|
|
|
$
|
0.01
|
|
|
$
|
0.14
|
|
|
$
|
1.13
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA (Non-GAAP
Measures)
|
|
|
|
|
|
|
|
|
|
|
($ in
thousands)
|
|
Six Months Ended
July 3, 2020 As Reported
|
|
M&A Related
Costs
|
|
LOGCAP V
Pre-Operational Legal Costs
|
|
Amortization of
acquired intangible assets
|
|
Six Months Ended
July 3, 2020 As Reported - Adjusted
|
Operating
Income
|
|
$
|
14,913
|
|
|
$
|
2,193
|
|
|
$
|
187
|
|
|
$
|
2,028
|
|
|
$
|
19,321
|
|
|
|
|
|
|
|
|
|
|
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
$
|
3,999
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(2,028)
|
|
|
$
|
1,971
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
$
|
18,912
|
|
|
$
|
2,193
|
|
|
$
|
187
|
|
|
$
|
—
|
|
|
$
|
21,292
|
|
EBITDA
Margin
|
|
2.7
|
%
|
|
|
|
|
|
|
|
3.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
($ In
thousands)
|
|
Three Months Ended
July 2, 2021 As Reported
|
|
Three Months Ended
July 2, 2021 Zenetex & HHB
|
|
Three Months Ended
July 2, 2021 As Reported - Organic
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
470,845
|
|
|
|
$
|
64,397
|
|
|
$
|
406,448
|
|
|
|
|
|
|
|
|
($ In
thousands)
|
|
Three Months Ended
July 3, 2020 As Reported
|
|
Three Months Ended
July 3, 2020 Zenetex & HHB
|
|
Three Months Ended
July 3, 2020 As Reported - Organic
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
336,063
|
|
|
|
$
|
—
|
|
|
$
|
336,063
|
|
|
|
|
|
|
|
|
Organic Revenue
$
|
|
|
|
|
|
$
|
70,385
|
|
Organic Revenue
%
|
|
|
|
|
|
20.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ In
thousands)
|
|
Six Months Ended
July 2, 2021 As Reported
|
|
Six Months Ended
July 2, 2021 Zenetex & HHB
|
|
Six Months Ended
July 2, 2021 As Reported - Organic
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
904,849
|
|
|
|
$
|
133,266
|
|
|
$
|
771,583
|
|
|
|
|
|
|
|
|
($ In
thousands)
|
|
Six Months Ended
July 3, 2020 As Reported
|
|
Six Months Ended
July 3, 2020 Zenetex & HHB
|
|
Six Months Ended
July 3, 2020 As Reported - Organic
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
687,797
|
|
|
|
$
|
—
|
|
|
$
|
687,797
|
|
|
|
|
|
|
|
|
Organic Revenue
$
|
|
|
|
|
|
$
|
83,786
|
|
Organic Revenue
%
|
|
|
|
|
|
12.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
Six Months
Ended
|
|
|
July 2,
|
|
|
|
July 3,
|
|
|
|
July 2,
|
|
|
|
July 3,
|
|
|
(In
thousands)
|
|
2021
|
|
%
|
|
2020
|
|
%
|
|
2021
|
|
%
|
|
2020
|
|
%
|
Army
|
|
$
|
310,638
|
|
|
66
|
%
|
|
$
|
227,351
|
|
|
68
|
%
|
|
$
|
567,987
|
|
|
63
|
%
|
|
$
|
474,906
|
|
|
69
|
%
|
Air Force
|
|
63,206
|
|
|
13
|
%
|
|
78,321
|
|
|
23
|
%
|
|
141,375
|
|
|
16
|
%
|
|
151,663
|
|
|
22
|
%
|
Navy
|
|
56,399
|
|
|
12
|
%
|
|
14,542
|
|
|
4
|
%
|
|
112,827
|
|
|
12
|
%
|
|
29,779
|
|
|
4
|
%
|
Other
|
|
40,602
|
|
|
9
|
%
|
|
15,849
|
|
|
5
|
%
|
|
82,660
|
|
|
9
|
%
|
|
31,449
|
|
|
5
|
%
|
Total
Revenue
|
|
$
|
470,845
|
|
|
|
|
$
|
336,063
|
|
|
|
|
$
|
904,849
|
|
|
|
|
$
|
687,797
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue by
Contract Type
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
July 2,
|
|
|
|
July 3,
|
|
|
|
July 2,
|
|
|
|
July 3,
|
|
|
(In
thousands)
|
|
2021
|
|
%
|
|
2020
|
|
%
|
|
2021
|
|
%
|
|
2020
|
|
%
|
Cost-plus and
cost-reimbursable ¹
|
|
$
|
359,429
|
|
|
76
|
%
|
|
$
|
242,740
|
|
|
72
|
%
|
|
$
|
664,676
|
|
|
73
|
%
|
|
$
|
499,059
|
|
|
73
|
%
|
Firm-fixed-price
|
|
111,416
|
|
|
24
|
%
|
|
93,323
|
|
|
28
|
%
|
|
240,173
|
|
|
27
|
%
|
|
188,738
|
|
|
27
|
%
|
Total
Revenue
|
|
$
|
470,845
|
|
|
|
|
$
|
336,063
|
|
|
|
|
$
|
904,849
|
|
|
|
|
$
|
687,797
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
¹ Includes time and
material contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue by
Contract Relationship
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
July 2,
|
|
|
|
July 3,
|
|
|
|
July 2,
|
|
|
|
July 3,
|
|
|
(In
thousands)
|
|
2021
|
|
%
|
|
2020
|
|
%
|
|
2021
|
|
%
|
|
2020
|
|
%
|
Prime
contractor
|
|
$
|
440,040
|
|
|
93
|
%
|
|
$
|
314,345
|
|
|
94
|
%
|
|
$
|
843,303
|
|
|
93
|
%
|
|
$
|
647,738
|
|
|
94
|
%
|
Subcontractor
|
|
30,805
|
|
|
7
|
%
|
|
21,718
|
|
|
6
|
%
|
|
61,546
|
|
|
7
|
%
|
|
40,059
|
|
|
6
|
%
|
Total
Revenue
|
|
$
|
470,845
|
|
|
|
|
$
|
336,063
|
|
|
|
|
$
|
904,849
|
|
|
|
|
$
|
687,797
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue by
Geographic Region
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
July 2,
|
|
|
|
July 3,
|
|
|
|
July 2,
|
|
|
|
July 3,
|
|
|
(In
thousands)
|
|
2021
|
|
%
|
|
2020
|
|
%
|
|
2021
|
|
%
|
|
2020
|
|
%
|
Middle
East
|
|
$
|
258,488
|
|
|
55
|
%
|
|
$
|
215,968
|
|
|
64
|
%
|
|
$
|
498,500
|
|
|
55
|
%
|
|
$
|
453,905
|
|
|
66
|
%
|
United
States
|
|
146,549
|
|
|
31
|
%
|
|
82,670
|
|
|
25
|
%
|
|
296,362
|
|
|
33
|
%
|
|
162,921
|
|
|
24
|
%
|
Europe
|
|
36,084
|
|
|
8
|
%
|
|
35,533
|
|
|
11
|
%
|
|
76,706
|
|
|
8
|
%
|
|
68,063
|
|
|
10
|
%
|
Asia
|
|
29,724
|
|
|
6
|
%
|
|
1,892
|
|
|
1
|
%
|
|
33,281
|
|
|
4
|
%
|
|
2,908
|
|
|
0
|
%
|
Total
Revenue
|
|
$
|
470,845
|
|
|
|
|
$
|
336,063
|
|
|
|
|
$
|
904,849
|
|
|
|
|
$
|
687,797
|
|
|
|
CONTACT:
Vectrus
Mike Smith,
CFA
719-637-5773
mike.smith@vectrus.com
View original content to download
multimedia:https://www.prnewswire.com/news-releases/vectrus-announces-strong-second-quarter-results-increases-revenue-and-adjusted-diluted-eps-guidance-301352524.html
SOURCE Vectrus, Inc.