V2X Announces Third Quarter 2023 Results earnings


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 Activities
1


$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


[email protected]


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SOURCE V2X, Inc.

V2X to Announce Third Quarter 2023 Financial Results

MCLEAN, Va., Oct. 23, 2023 /PRNewswire/ — V2X, Inc., (NYSE: VVX), a leading provider of critical mission solutions and support to defense clients globally, will report third quarter 2023 financial results on Monday, November 6, 2023, before market open. Senior management will conduct a conference call at 8:00 a.m. ET that same day.

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 at https://app.webinar.net/gAed3AVKra2 and on the Investors section of the V2X website at https://gov2x.com/.

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.  

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.

Contact Information


Investor Contact 
Mike Smith, CFA
Vice President, Treasury, Corporate Development and Investor Relations
[email protected]
719-637-5773

Media Contact

Angelica Spanos Deoudes
Senior Media Strategist
[email protected]
571-338-5195

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SOURCE V2X, Inc.

Shawn Mural Named Senior Vice President and Chief Financial Officer at V2X

MCLEAN, Va., Oct. 2, 2023 /PRNewswire/ — V2X, Inc. (NYSE: VVX), today announced Shawn Mural has been appointed as its Senior Vice President and Chief Financial Officer (CFO). In this role, Mural will oversee all finance and accounting functions, including controllership, finance operations, planning, tax, treasury, investor relations, and corporate development.

Mr. Mural joins V2X from RTX Corporation and its subsidiaries (“RTX”), where he served in various capacities of increasing responsibility and most recently as Vice President of Finance and CFO of Raytheon. Over his 24 years at RTX, Shawn’s experience in various leadership roles, as well as managing large integration and operational excellence-related activities, will help support the future growth of V2X.

“As we continue to the next phase of the company’s growth, Shawn brings strong financial leadership and deep knowledge and understanding of the aerospace and defense industry,” said Chuck Prow, President and Chief Executive Officer of V2X. “I look forward to working alongside him as we continue to execute the V2X strategy.”

This appointment follows Susan Lynch’s retirement from the company. The V2X team thanks Susan for her dedicated service and wishes her every success in future endeavors.

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.

Media Contact
Angelica Spanos Deoudes
Senior Media Strategist
[email protected]
571-338-5195

Investor Contact 
Michael Smith
Vice President, Treasury, Corporate Development and Investor Relations
[email protected]

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SOURCE V2X, Inc.

V2X to Participate in the Jefferies Industrials Conference September 6

MCLEAN, Va., Aug. 30, 2023 /PRNewswire/ — V2X, Inc., (NYSE: VVX), a leading provider of critical mission solutions and support to defense clients globally, announced that company management will address the Jefferies Industrials Conference, on Wednesday, September 6, at 4:30 p.m. Eastern time.

A live webcast of the briefing will be available at https://wsw.com/webcast/jeff286/vvx/1750700 and be available for replay for 90 days afterward.

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.

Contact Information

Investor Contact 
Mike Smith, CFA
Vice President, Treasury, Corporate Development and Investor Relations
[email protected]
571-337-3862

Media Contact

Angelica Spanos Deoudes
Senior Media Strategist
[email protected]
571-338-5195

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SOURCE V2X, Inc.

V2X Announces Strong Second Quarter 2023 Results

Second Quarter 2023 Highlights:

  • Revenue of $977.9 million, up 10.2% y/y on a pro forma basis
  • Awarded significant bookings of $2.1 billion, driving backlog +10% sequentially to $13.0 billion
  • Reported operating income of $34.3 million; adjusted operating income1 of $70.5 million
  • Adjusted EBITDA1 of $76.4 million with a margin1 of 7.8%
  • Diluted EPS of $0.06; adjusted diluted EPS1 of $1.01
  • Improved net debt to EBITDA1 leverage ratio ~0.4x to 3.48x

2023 Guidance:

  • Increasing mid-point of 2023 revenue, adjusted EBITDA1, and adjusted diluted EPS1 guidance

MCLEAN, Va., Aug. 8, 2023 /PRNewswire/ — V2X, Inc. (NYSE:VVX) announced second quarter 2023 financial results.

“V2X reported strong results in the second quarter with revenue increasing 10.2% year-over-year, on a pro forma basis,” said Chuck Prow, President and Chief Executive Officer of V2X. “Adjusted EBITDA1 for the quarter was $76.4 million and 7.8% margin resulting from solid revenue volume and benefits from program performance. Bookings activity in the quarter was strong at $2.1 billion in awards to V2X. This yielded total backlog of $13.0 billion, representing 10% growth sequentially. Our new business and recompete wins in addition to scope expansion on existing programs bolster our backlog position and set us up for positive momentum leading into 2024. Furthermore, with over $5 billion in bids under evaluation and a 12-month pipeline of ~$19 billion, the outlook for V2X remains robust.”

“Revenue growth in the quarter was generated by continued expansion on existing programs, contribution from new awards, as well as success in securing recompete wins late last year and in early 2023,” said Mr. Prow. “Our teams continued to further drive momentum by successfully expanding work scope on our core programs. Several notable wins late last year and in the first half of 2023 have also helped to push revenue growth. We continue to experience growth in the Pacific or INDOPACOM, and see significant long-term opportunity to further support increasing mission requirements in the region.”  

Mr. Prow continued, “We were successful in capturing several key new business pursuits during the quarter. First, we were awarded a $100 million five-year task order with the Department of State to provide logistics support internationally. This represents our most substantive and strategic win with the Department of State and is the culmination of a multi-year client engagement and targeted growth campaign. Our agility and high level of readiness to support mission requirements was a key strategic differentiator for V2X in this award. Looking ahead, we see significant opportunity to leverage our comprehensive capabilities and footprint to further support the global missions of this important client. I am also pleased to announce that we are seeing results executing our sell through business model, which is leveraging our highly technical, development, integration, production, and modernization capabilities. During the quarter, V2X finalized three separate efforts with new clients that utilize our engineering, integration and manufacturing capabilities. We were also awarded an engineering development and prototyping effort with a new client that we believe will lead to new proprietary products with enduring follow-on business.”   

“In addition to new awards, during the second quarter, we were awarded over $520 million in recompetes,” said Mr. Prow. “This includes an eight-year, $328 million contract with Naval Facilities Systems Command (NAVFAC) Southeast in support of the Naval Station at Guantanamo Bay. This contract includes all aspects of infrastructure sustainment, including the application of our unique converged solutions. We also secured a five-year recompete contract valued at over $122 million with NAVAIR Fleet Readiness Center Southwest for depot level maintenance support services. Transition to the new contract started in early July. These two recompete wins, along with our first quarter win of Naval Test Wing Pacific reflect the realization of our deliberate growth-oriented client campaign. These efforts are yielding growth, which further diversify our client portfolio. We are thrilled to have been selected for these important programs and remain focused on helping the Navy succeed with the missions that they serve.”

Mr. Prow concluded, “We are harnessing the combined solutions of V2X and are seeing momentum that we believe will drive growth and create value. For example, V2X’s robust modernization and sustainment capabilities are a significant differentiator and we are making excellent progress leveraging our engineering and manufacturing center of excellence. This includes opportunities such as modernizing and improving the effectiveness of the F-16 Fighting Falcon and further expanding our proprietary Gateway Mission Router 1000 across various platforms to provide cutting edge situational awareness in support of the DoD’s Joint All Domain Command and Control (JADC2) effort.”


Second Quarter 2023 Results

On July 5, 2022 (“Closing Date”), Vectrus, Inc. (“Vectrus”) completed its merger (the “Merger”) with Vertex Aerospace Services Holding Corp. (“Vertex”), thereby forming V2X, Inc. Second quarter 2022 “reported results” reflect the contributions of Vectrus from April 1, 2022, through June 30, 2022, unless otherwise noted. Comparisons to historical periods are relative to legacy Vectrus results, unless otherwise noted.

  • Revenue of $977.9 million, up 10.2% y/y on a pro forma basis
  • Operating income of $34.3 million, including merger and integration related costs of $13.6 million, and amortization of acquired intangible assets of $22.6 million
  • Adjusted operating income1 of $70.5 million
  • Adjusted EBITDA1 of $76.4 million with a 7.8% adjusted EBITDA margin1
  • Diluted EPS of $0.06
  • Adjusted diluted EPS1 of $1.01
  • Net debt as of June 30, 2023 of $1,176.6 million
  • Total backlog as of June 30, 2023 of $13.0 billion

“Our financial results for the second quarter were impressive across the board,” said Susan Lynch, Senior Vice President and Chief Financial Officer. “Pro forma revenue increased 10.2% year-over-year to $977.9 million. Revenue growth was achieved via expansion on existing programs, the contribution from new business wins awarded in late 2022 and securing key recompete programs in the first half of 2023. Advancing and protecting our core in addition to growth through new pursuit wins is fundamental to V2X delivering on its commitments.  To date in 2023, we have witnessed an acceleration of deliverables that were originally contemplated to be recognized in the second half of the year.  The results this quarter represent achievement of expanding in our core markets and capturing new business with approximately $900 million in new contract awards in the first half of 2023.”

For the quarter, the Company reported operating income of $34.3 million and adjusted operating income1 of $70.5 million. Adjusted EBITDA1 was $76.4 million with a margin of 7.8%. First quarter diluted EPS was $0.06, due primarily to merger and integration related costs, amortization of acquired intangible assets, and interest expense. Adjusted diluted EPS1 for the quarter was $1.01.

Ms. Lynch continued, “At the end of the quarter, net debt for V2X was $1,176.6 million, a $112 million reduction from the prior quarter.  Net consolidated indebtedness to EBITDA1 (net leverage ratio) was 3.48x, representing a ~0.4x improvement over the prior quarter.  We remain focused on reducing debt and expect that our leverage ratio will continue to improve in the second half of 2023.”

“Net cash provided by operating activities for the quarter was $116.6 million. Adjusted net cash provided by operating activities1 was $10.9 million, adding back $7.3 million of M&A and integration costs, and removing the contribution of the master accounts receivable purchase or “MARPA” facility of $113 million,” said Ms. Lynch.

Total backlog as of June 30, 2023, was $13.0 billion, increasing approximately $1.2 billion over last quarter reflecting successful expansion on existing programs along with significant new contract and recompete awards. Funded backlog was $3.1 billion. The trailing twelve-month book-to-bill was 1.3x.


2023 Guidance

Ms. Lynch concluded, “I am pleased with our results this quarter and for the first half of the year. Our teams continue to work together seamlessly, making notable progress on integration milestones while driving results across the board. As such, the Company is raising the mid-point of its 2023 revenue, adjusted EBITDA1, and adjusted diluted EPS1 guidance.” Guidance for 2023 is as follows: 


$ millions, except for per share amounts

2023 Guidance
(Updated)

2023 Mid-Point
(Updated)

Revenue

$3,850

$3,950

$3,900

Adjusted EBITDA1

$295

$310

$303

Adjusted Diluted Earnings Per Share1

$3.85

$4.30

$4.08

Adjusted Net Cash Provided by Operating Activities
1

$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. 

Second Quarter 2023 Conference Call

Management will conduct a conference call with analysts and investors at 4:30 p.m. ET on Tuesday, August 8, 2023. U.S.-based participants may dial in to the conference call at 877-506-6380, while international participants may dial 412-542-4198. A live webcast of the conference call as well as an accompanying slide presentation will be available here: https://app.webinar.net/lZEXpEOLx9J  

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 August 22, 2023, at 844-512-2921 (domestic) or 412-317-6671 (international) with passcode 10179631.       

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, that 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 INCOME (LOSS) (UNAUDITED)

Three Months Ended

Six Months Ended

June 30,

July 1,

June 30,

July 1,


(In thousands, except per share data)

2023

2022

2023

2022

Revenue

$       977,852

$       498,066

$     1,921,312

$       954,537

Cost of revenue

890,452

453,305

1,755,082

872,581

Selling, general, and administrative expenses

53,130

29,740

101,381

61,699

Operating income

34,270

15,021

64,849

20,257

Loss on extinguishment of debt

(22,052)

Interest expense, net

(31,950)

(1,963)

(63,694)

(3,643)

Other expense, net

(311)

(311)

Income (loss) from operations before income taxes

2,009

13,058

(21,208)

16,614

Income tax expense (benefit)

210

2,586

(5,527)

3,287

Net income (loss)

$           1,799

$         10,472

$        (15,681)

$         13,327

Earnings (loss) per share

Basic

$             0.06

$             0.89

$           (0.51)

$             1.13

Diluted

$             0.06

$             0.88

$           (0.51)

$             1.12

Weighted average common shares outstanding – basic

31,033

11,826

30,981

11,793

Weighted average common shares outstanding – diluted

31,605

11,954

30,981

11,917


V2X, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

June 30,

December 31,


(In thousands)

2023

2022


Assets

Current assets

  Cash and cash equivalents

$         70,314

$       116,067

  Receivables

746,562

728,582

  Prepaid expenses

77,724

74,234

  Other current assets

23,906

13,049

Total current assets

918,506

931,932

  Property, plant, and equipment, net

82,284

78,715

  Goodwill

1,656,965

1,653,822

  Intangible assets, net

452,739

497,951

  Right-of-use assets

46,017

52,825

  Other non-current assets

22,245

17,858

Total non-current assets

2,260,250

2,301,171


Total Assets

$     3,178,756

$     3,233,103


Liabilities and Shareholders’ Equity

Current liabilities

  Accounts payable

$       416,424

$       406,706

  Compensation and other employee benefits

145,000

168,038

  Short-term debt

15,500

11,850

  Other accrued liabilities

255,408

196,538

Total current liabilities

832,332

783,132

  Long-term debt, net

1,190,023

1,262,811

  Deferred tax liabilities

13,773

15,813

  Operating lease liabilities

35,490

41,083

  Other non-current liabilities

114,420

133,185

Total non-current liabilities

1,353,706

1,452,892

Total liabilities

2,186,038

2,236,024

  Commitments and contingencies (Note 8)

  Shareholders’ Equity

  Preferred stock; $0.01 par value; 10,000 shares authorized; No shares issued and
  outstanding

  Common stock; $0.01 par value; 100,000 shares authorized; 31,081 and 30,470 shares
  issued and outstanding as of June 30, 2023 and December 31, 2022, respectively                                      

311

305

  Additional paid in capital

754,096

748,877

  Retained earnings

237,743

253,424

  Accumulated other comprehensive income (loss)

568

(5,527)

Total shareholders’ equity

992,718

997,079


Total Liabilities and Shareholders’ Equity

$     3,178,756

$     3,233,103


V2X, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

Six Months Ended

June 30,

July 1,


(In thousands)

2023

2022


Operating activities

Net (loss) income

$        (15,681)

$         13,327

Adjustments to reconcile net (loss) income to net cash provided by operating activities:

  Depreciation expense

11,326

3,238

  Amortization of intangible assets

45,211

4,423

  Loss (gain) on disposal of property, plant, and equipment

522

(15)

  Stock-based compensation

20,446

4,725

  Amortization of debt issuance costs

4,692

388

  Loss on extinguishment of debt

22,052

Changes in assets and liabilities:

  Receivables

(20,404)

(29,302)

  Prepaid expenses

(1,645)

(5,321)

  Other assets

436

5,185

  Accounts payable

7,647

32,470

  Deferred taxes

(5,143)

  Compensation and other employee benefits

(23,150)

2,507

  Other liabilities

31,831

(11,989)


  Net cash provided by operating activities

78,140

19,636


Investing activities

Purchases of capital assets

(11,543)

(3,492)

Proceeds from the disposition of assets

5

18

Contribution to joint venture

(2,113)


  Net cash used in investing activities

(11,538)

(5,587)


Financing activities

Proceeds from issuance of long-term debt

250,000

Repayments of long-term debt

(424,888)

(5,200)

Proceeds from revolver

552,750

392,000

Repayments of revolver

(467,750)

(402,000)

Proceeds from exercise of stock options

6

370

Payment of debt issuance costs

(7,507)

(458)

Prepayment premium on early redemption of debt

(1,600)

Payments of employee withholding taxes on share-based compensation

(14,618)

(1,696)


  Net cash used in financing activities

(113,607)

(16,984)


Exchange rate effect on cash

1,252

(507)

Net change in cash and cash equivalents

(45,753)

(3,442)

Cash and cash equivalents – beginning of period

116,067

38,513


Cash and cash equivalents – end of period

$         70,314

$         35,071

Supplemental disclosure of cash flow information:

Interest paid

$         58,300

$           3,409

Income taxes paid

$           2,707

$           6,112

Purchase of capital assets on account

$           1,813

$                13

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 operating cash flow, 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 for the three months ended June 30, 2023 and July 1, 2022 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 operating cash flow 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.

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 measures could significantly impact the Company’s fiscal 2023 GAAP results.


Non-GAAP Tables

($K, except per share data)


Three Months Ended


Six Months Ended


July 1, 2022


June 30, 2023


July 1, 2022


June 30, 2023


Revenue

$        498,066

$        977,852

$        954,537

$      1,921,312


Operating income

$          15,021

$          34,270

$          20,257

$          64,849

Plus:

Depreciation expense

1,647

5,914

3,238

11,326

Amortization of intangible assets

2,122

22,605

4,423

45,211

M&A, integration and related costs

5,879

13,642

14,947

23,056


Adjusted EBITDA

$          24,669

$          76,431

$          42,865

$        144,442


Adjusted EBITDA margin

5.0 %

7.8 %

4.5 %

7.5 %

Minus:

Cash interest expense, net

1,779

29,771

3,255

59,002

Income tax expense, as adjusted

4,206

8,564

7,196

15,129

Depreciation expense

1,647

5,914

3,238

11,326

Other expense, net

311

311


Adjusted net income

$          17,037

$          31,871

$          29,176

$          58,674

($K, except per share data)


Three Months Ended


Six Months Ended


July 1, 2022


June 30, 2023


July 1, 2022


June 30, 2023


Diluted earnings (loss) per share

$                 0.88

$                 0.06

$                 1.12

$               (0.51)

Plus:

M&A, integration and related costs

0.39

0.34

1.01

0.57

Amortization of intangible assets

0.14

0.56

0.30

1.13

Amortization of debt issuance costs and
Loss on extinguishment of debt

0.01

0.05

0.03

0.67


Adjusted diluted earnings per share

$                 1.42

$                 1.01

$                 2.46

$                 1.86


Average shares outstanding

Basic, as reported

11,826

31,033

11,793

30,981

Diluted, as reported

11,954

31,605

11,917

30,981

Adjusted diluted

11,954

31,605

11,917

31,449


Pro Forma Revenue Growth


Three Months Ended

($M)


June 30, 2023

Revenue

$                        977.9


Three Months Ended

($M)


July 1, 2022

Pro forma Revenue

$                         887.4

Pro forma Revenue
Growth $

$                        90.5

Pro forma Revenue
Growth %

10.2 %


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

June 30,

July 1,

June 30,

July 1,

(In thousands)

2023

%

2022

%

2023

%

2022

%

Army

$      393,499

40 %

$      326,756

66 %

$      784,002

41 %

$      606,869

64 %

Navy

293,198

30 %

64,885

13 %

585,888

30 %

140,102

15 %

Air Force

154,001

16 %

68,457

14 %

283,982

15 %

129,930

13 %

Other

137,154

14 %

37,968

7 %

267,440

14 %

77,636

8 %

Total revenue

$      977,852

$      498,066

$   1,921,312

$      954,537



Revenue by Contract Type

Three Months Ended

Six Months Ended

June 30,

July 1,

June 30,

July 1,

(In thousands)

2023

%

2022

%

2023

%

2022

%

Cost-plus and cost-reimbursable

$      507,282

52 %

$      355,559

71 %

$   1,019,217

53 %

$      666,653

70 %

Firm-fixed-price

438,684

45 %

128,348

26 %

834,891

44 %

256,352

27 %

Time-and-materials

31,886

3 %

14,159

3 %

67,204

3 %

31,532

3 %

Total revenue

$      977,852

$      498,066

$   1,921,312

$      954,537



Revenue by Contract Relationship

 
Three Months Ended

 
Six Months Ended

June 30,

July 1,

June 30,

July 1,

(In thousands)

2023

%

2022

%

2023

%

2022

%

Prime contractor

$      916,060

94 %

$      468,453

94 %

$   1,795,239

93 %

$      895,546

94 %

Subcontractor

61,792

6 %

29,613

6 %

126,073

7 %

58,991

6 %

Total revenue

$      977,852

$      498,066

$   1,921,312

$      954,537



Revenue by Geographic Region

Three Months Ended

Six Months Ended

June 30,

July 1,

June 30,

July 1,

(In thousands)

2023

%

2022

%

2023

%

2022

%

United States

$      578,514

59 %

$      158,719

32 %

$   1,127,284

59 %

$      325,454

34 %

Middle East

279,083

28 %

250,222

50 %

560,204

29 %

485,313

51 %

Asia

65,533

7 %

46,386

9 %

129,850

7 %

62,592

7 %

Europe

54,722

6 %

42,739

9 %

103,974

5 %

81,178

8 %

Total revenue

$      977,852

$      498,066

$   1,921,312

$      954,537

CONTACT:

V2X, Inc. 
Mike Smith, CFA
719-637-5773
[email protected] 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/v2x-announces-strong-second-quarter-2023-results-301896096.html

SOURCE V2X, Inc.