V2X Delivers Solid Fourth Quarter and Full-Year 2023 Results

Fourth Quarter 2023 Summary

  • Reported record revenue of $1.04 billion, up +6.4% y/y
  • Achieved y/y revenue growth of 31% in the Pacific and 18% in the Middle East
  • Operating income of $38.5 million; adjusted operating income1 of $76.2 million
  • Net income (loss) of ($0.5) million, up $10.1 million y/y
  • Adjusted EBITDA1 of $82.1 million with a margin1 of 7.9%
  • Diluted EPS of ($0.02); Adjusted diluted EPS1 of $1.22
  • Strong year-to-date cash flow from operations of $188.0 million; Achieved net debt reduction of $137.1 million
  • Awarded first substantial foreign military sales program valued at $400 million over 5 years

2024 Guidance:

  • Establishing full-year 2024 guidance with revenue and adjusted EBITDA1 growth of 5% at mid-point

MCLEAN, Va., March 5, 2024 /PRNewswire/ — V2X, Inc. (NYSE:VVX) announced fourth quarter and full-year 2023 financial results.

“I’m pleased to report a strong finish to 2023, with record revenue and strong operational performance which drove significant cash generation and net debt reduction,” said Chuck Prow, President and Chief Executive Officer of V2X. “I’d like to thank our teams that demonstrated agility and excellent performance, delivering 8% pro forma revenue1 growth for the full-year and 6% for the quarter. We made significant progress advancing V2X as a leader in the operational segment of the federal services market while continuing to position the company for long-term growth. The leading indicators for our business remain strong with a backlog of approximately $13 billion, $9 billion of bids submitted currently under evaluation, and a robust pipeline of opportunities valued at $15 billion expected to be submitted over the next twelve months. Our capabilities and position in an expanding market, present opportunities to drive continued growth and value for our shareholders and clients.”  

“V2X achieved several milestones during the fourth quarter, which includes our first substantial foreign military sales (FMS) win valued at approximately $400 million over the next five years,” said Mr. Prow. “This program is a long-term aviation support and training contract in the Middle East and was a direct result of our multi-year FMS campaign. Importantly, our evolution as a company has been an enabler to participate in this market. With this opportunity, the total value of V2X FMS’ portfolio is approximately $700 million with accretive margins. We plan to build on this success and continue pursuing FMS opportunities that leverage our geographic footprint, strong partnerships, and core capabilities.”

Mr. Prow continued, “Our ability to provide full life cycle solutions from concept to fielding and sustainment is a significant differentiator that’s yielding results. During the quarter, we demonstrated our capabilities through the fielding of a defense platform that modernized existing systems. This program launched as an engineering development and prototyping effort with a new client and today has yielded a brand-new product that’s designed, produced, and sustained by V2X. Additionally, our engineering, integration, modernization and sustainment solutions resulted in approximately $70 million of awards to V2X in the fourth quarter.”

Mr. Prow concluded, “I’d like to thank our teams for their contributions in 2023 and progress executing our strategic framework: Expand the Base, Capture New Markets, Deliver with Excellence, and Enhance Culture. Looking ahead, V2X continues to transform to deliver enhanced capabilities in an expanding market. We have strong momentum, robust backlog, a highly aligned pipeline, limited recompetes, and high free cash generation that provides an excellent fundamental profile to support value creation.” 

Fourth Quarter 2023 Results

“V2X reported revenue of $1.0 billion in the quarter, which represents 6.4% year-over-year growth,” said Shawn Mural, Senior Vice President and Chief Financial Officer. “Revenue growth in the quarter was achieved through exceptional team performance delivering milestones ahead of schedule, expansion on existing programs, and new business. This solid execution resulted in year-over-year revenue growth of 31% in the Pacific and 18% in the Middle East.” 

“For the quarter, the Company reported operating income of $38.5 million and adjusted operating income1 of $76.2 million. Adjusted EBITDA1 was $82.1 million with a margin of 7.9%. Fourth quarter GAAP diluted EPS was ($0.02), due primarily to merger and integration related costs, amortization of acquired intangible assets, and interest expense. Adjusted diluted EPS1 for the quarter was $1.22.”

“V2X’s ability to generate strong cash flow with low capital expenditures is an important attribute of our business and one that we are extremely focused on as a primary avenue to enhance value for shareholders. I’m pleased to announce that during the quarter, our teams demonstrated outstanding performance in all aspects of cash conversion, driving significant collections, a record low DSO, and operating cash flow that exceeded our guidance. Net cash provided by operating activities was $188.0 million year to date. Adjusted net cash provided by operating activities1 year to date was $159.5 million, adding back $26.9 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 $68.8 million.”

“Solid cash generation enabled net debt reduction of $137.1 million for the year.  At the end of the quarter, net debt for V2X was $1,083.6 million.  Net consolidated indebtedness to EBITDA1 (net leverage ratio) was 3.3x, improved from 3.7x at the end of 2022.  Additionally, we believe our strong fundamentals will allow V2X to achieve a net leverage ratio at or under 3.0x by the end of 2024.”  

“Total backlog as of December 31, 2023, was $12.8 billion. Funded backlog was $2.8 billion. Bookings in the quarter were $0.6 billion, resulting in a trailing twelve-month book-to-bill of 1.1x. It’s important to note that backlog and bookings do not include the full performance period of the $400 million FMS program as the contract is being definitized and the $458 million F-5 Adversary aircraft award, discussed last quarter, as it remains in protest,” said Mr. Mural.

Full-Year 2023 Results

Full-year revenue was $3.963 billion, up 8% pro forma year-on-year. The Company reported full-year operating income of $124.4 million and adjusted operating income1 of $271.4 million. Full-year EBITDA1 was $293.9 million with a margin of 7.4%. Full-year GAAP diluted EPS was ($0.73), due primarily to merger and integration related costs, amortization of acquired intangible assets, and interest expense. Adjusted diluted EPS1 for 2023 was $3.74.

2024 Guidance

Mr. Mural concluded, “Based on the positive trends in our business we are setting the mid-point of our guidance for revenue and Adjusted EBITDA1 at $4.150 billion and $308 million, respectively, representing approximately 5% year-over-year growth. We expect revenue and adjusted EBITDA to be weighted more heavily in the second half of the year. Importantly, guidance at the mid-point assumes approximately 90% of revenue from existing contracts and less than 5% from recompetes.”

Guidance for 2024 is as follows:       

$ millions, except for per share amounts

2024 Guidance

2024 Mid-Point

Revenue

$4,100

$4,200

$4,150

Adjusted EBITDA1

$300

$315

$308

Adjusted Diluted Earnings Per Share1

$3.85

$4.20

$4.03

Adjusted Net Cash Provided by Operating Activities1

$145

$165

$155

The Company is not providing a quantitative reconciliation with respect to this forward-looking non-GAAP measure in reliance on the “unreasonable efforts” exception set forth in SEC rules because certain financial information, the probable significance of which cannot be determined, is not available and cannot be reasonably estimated. For example, unusual, one-time, non-ordinary, or non-recurring costs, which relate to M&A, integration and related activities cannot be reasonably estimated. 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. 

Fourth Quarter and Full-Year 2023 Conference Call

Management will conduct a conference call with analysts and investors at 8:00 a.m. ET on Tuesday, March 5, 2024. 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/WrwGVYwl6dA

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 March 19, 2024, at 844-512-2921 (domestic) or 412-317-6671 (international) with passcode 13743860 .

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 – 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 16,000 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

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 “2024 Guidance” above and other assumptions contained therein for purposes of such guidance, other statements about our 2024 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.

CONSOLIDATED STATEMENTS OF (LOSS) INCOME

Year Ended December 31,

(In thousands, except per share data)

2023

2022

2021

Revenue

$   3,963,126

$   2,890,860

$   1,783,665

Cost of revenue

3,628,271

2,595,848

1,623,245

Selling, general and administrative expenses

210,439

239,241

98,400

Operating income

124,416

55,771

62,020

Loss on extinguishment of debt

(22,298)

Interest expense, net

(122,442)

(61,879)

(7,985)

Other expense, net

(4,194)

(Loss) income from operations before income taxes

(24,518)

(6,108)

54,035

Income tax (benefit) expense

(1,945)

8,222

8,307

Net (loss) income

$      (22,573)

$       (14,330)

$        45,728

(Loss) earnings per share

Basic

$          (0.73)

$          (0.68)

$            3.91

Diluted

$          (0.73)

$          (0.68)

$            3.86

Weighted average common shares outstanding – basic

31,084

20,996

11,705

Weighted average common shares outstanding – diluted

31,084

20,996

11,836

V2X, INC.

CONSOLIDATED BALANCE SHEETS

December 31,

(In thousands, except shares and per share data)

2023

2022

Assets

Current assets

  Cash, cash equivalents and restricted cash

$           72,651

$         116,067

  Receivables

705,995

728,582

  Inventory, net

46,981

44,974

  Prepaid expenses and other current assets

49,242

42,309

  Total current assets

874,869

931,932

  Property, plant, and equipment, net

85,429

78,715

  Goodwill

1,656,926

1,653,822

  Intangible assets, net

407,530

497,951

  Right-of-use assets

41,215

52,825

  Other non-current assets

15,931

17,858

  Total non-current assets

2,207,031

2,301,171

Total Assets

$      3,081,900

$      3,233,103

Liabilities and Shareholders’ Equity

Current liabilities

  Accounts payable

$         453,052

$         406,706

  Compensation and other employee benefits

158,088

168,038

  Short-term debt

15,361

11,850

  Other accrued liabilities

213,700

196,538

Total current liabilities

840,201

783,132

  Long-term debt, net

1,100,269

1,262,811

  Deferred tax liabilities

11,763

15,813

  Operating lease liabilities

34,691

41,083

  Other non-current liabilities

104,176

133,185

 Total non-current liabilities

1,250,899

1,452,892

Total liabilities

2,091,100

2,236,024

Commitments and contingencies (Note 15)

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; 31,191,628 and 30,470,475 shares issued and outstanding as of December 31, 2023 and 2022, respectively

312

305

Additional paid in capital

762,324

748,877

Retained earnings

230,851

253,424

Accumulated other comprehensive loss

(2,687)

(5,527)

Total shareholders’ equity

990,800

997,079

Total Liabilities and Shareholders’ Equity

$      3,081,900

$      3,233,103

V2X, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

Year Ended December 31,

(In thousands)

2023

2022

2021

Operating activities

Net (loss) income

$      (22,573)

$      (14,330)

$        45,728

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

  Depreciation expense

22,408

13,472

6,526

  Amortization of intangible assets

90,423

48,643

10,028

  Loss on disposal of property, plant, and equipment

683

59

65

  Stock-based compensation

32,843

32,736

8,331

  Deferred taxes

(7,509)

(15,554)

(7,280)

  Amortization of debt issuance costs

9,067

7,805

912

  Loss on extinguishment of debt

22,298

  Gain on disposition of business

(450)

(2,082)

Changes in assets and liabilities:

  Receivables

19,064

(52,311)

(36,376)

  Inventory, net

(311)

(3,600)

(5,232)

  Other assets

12,076

14,962

(7,613)

  Accounts payable

43,153

71,837

56,985

  Compensation and other employee benefits

(9,901)

42,878

1,133

  Other liabilities

(23,303)

(51,020)

(11,868)

  Net cash provided by operating activities

187,968

93,495

61,339

Investing activities

Purchases of capital assets and intangibles

(25,021)

(12,425)

(9,776)

Proceeds from the disposition of assets

16

9

16

Acquisition of business, net of cash acquired

193,677

262

Disposition of business

1,349

(5,303)

Distributions from (contributions to) joint venture

1,007

(3,145)

  Net cash (used in) provided by investing activities

(22,649)

175,958

(12,643)

Financing activities

Proceeds from issuance of long-term debt

250,000

Repayments of long-term debt

(432,603)

(108,400)

(8,600)

Proceeds from revolver

922,750

392,000

529,000

Repayments of revolver

(922,750)

(472,925)

(594,000)

Proceeds from exercise of stock options

34

408

379

Payment of debt issuance costs

(8,818)

(2,325)

(17)

Prepayment premium on early redemption of debt

(1,600)

Payments of employee withholding taxes on share-based compensation

(18,036)

(1,994)

(2,347)

  Net cash used in financing activities

(211,023)

(193,236)

(75,585)

Exchange rate effect on cash

2,288

1,337

(3,325)

Net change in cash, cash equivalents and restricted cash

(43,416)

77,554

(30,214)

Cash, cash equivalents and restricted cash – beginning of year

116,067

38,513

68,727

Cash, cash equivalents and restricted cash – end of year

$        72,651

$      116,067

$        38,513

Supplemental Disclosure of Cash Flow Information:

Interest paid

$      117,482

$        54,267

$          5,801

Income taxes paid

$          8,356

$        13,416

$          9,703

Non-cash investing activities:

Purchase of capital assets on account

$          3,043

$          2,716

$             277

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, and operating income. 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 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 (PF) 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 expense, net is defined as interest expense, net adjusted to exclude amortization of debt issuance costs.
  • Adjusted net cash provided by (used in) operating activities or 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.
  • 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

Twelve Months Ended

December 31,
2023

December 31,
2022

December 31,
2023

December 31,
2022

Revenue

$      1,040,307

$        978,167

$      3,963,126

$      2,890,860

Net income (loss)

$               (492)

$         (10,619)

$          (22,573)

$          (14,330)

Plus:

Income tax expense (benefit)

8,420

10,675

(1,945)

8,222

Other expense, net

1,859

4,194

Interest expense, net

28,497

30,971

122,442

61,879

Loss on extinguishment of debt

246

22,298

Amortization of intangible assets

22,606

20,046

90,423

48,643

M&A, integration and related costs

15,055

26,379

56,610

87,108

Adjusted operating income

$          76,191

$          77,452

$        271,449

$        191,522

Plus:

Depreciation expense

5,875

4,809

22,408

13,472

Adjusted EBITDA

$          82,066

$          82,261

$        293,857

$        204,994

Adjusted EBITDA margin

7.9 %

8.4 %

7.4 %

7.1 %

Minus:

Cash interest expense, net

26,305

27,069

113,375

54,074

Income tax expense, as adjusted

9,101

19,654

35,430

36,295

Depreciation expense

5,875

4,809

22,408

13,472

Other expense, net

1,859

4,194

Adjusted net income

$          38,926

$          30,729

$        118,450

$        101,153

($K, except per share data)

Three Months Ended

Twelve Months Ended

December 31,
2023

December 31,
2022

December 31,
2023

December 31,
2022

Diluted earnings (loss) per share

$               (0.02)

$               (0.35)

$               (0.73)

$               (0.68)

Plus:

M&A, integration and related costs

0.45

0.69

1.42

3.28

Amortization of intangible assets

0.68

0.53

2.26

1.84

Amortization of debt issuance costs and Loss on extinguishment of debt

0.11

0.10

0.79

0.29

Adjusted diluted earnings per share

$                 1.22

$                 0.97

$                 3.74

$                 4.73

Average shares outstanding

Basic, as reported

31,192

30,465

31,084

20,996

Diluted, as reported

31,192

30,465

31,084

20,996

Adjusted diluted

31,822

31,284

31,567

21,346

SUPPLEMENTAL INFORMATION

Revenue by client branch, contract type, contract relationship, and geographic region for the periods presented below was as follows: 

Revenue by Client

Year Ended December 31,

(In thousands)

2023

%

2022

%

2021

%

Army

$     1,633,525

41 %

$     1,342,406

46 %

$     1,134,849

64 %

Navy

1,233,463

31 %

713,732

25 %

224,407

13 %

Air Force

538,698

14 %

459,849

16 %

266,291

15 %

Other

557,440

14 %

374,873

13 %

158,118

8 %

Total revenue

$     3,963,126

$     2,890,860

$     1,783,665

Revenue by Contract Type

Year Ended December 31,

(In thousands)

2023

%

2022

%

2021

%

Cost-plus and cost-reimbursable

$     2,209,241

56 %

$     1,625,196

56 %

$     1,271,167

71 %

Firm-fixed-price

1,626,262

41 %

1,159,743

40 %

452,112

25 %

Time-and-materials

127,623

3 %

105,921

4 %

60,386

4 %

Total revenue

$     3,963,126

$     2,890,860

$     1,783,665

Revenue by Contract Relationship

Year Ended December 31,

(In thousands)

2023

%

2022

%

2021

%

Prime contractor

$     3,726,199

94 %

$     2,695,067

93 %

$     1,663,828

93 %

Subcontractor

236,927

6 %

195,793

7 %

119,837

7 %

Total revenue

$     3,963,126

$     2,890,860

$     1,783,665

Revenue by Geographic Region

Year Ended December 31,

(In thousands)

2023

%

2022

%

2021

%

United States

$     2,286,052

58 %

$     1,494,255

52 %

$       578,255

32 %

Middle East

1,193,598

30 %

1,024,674

35 %

1,000,877

56 %

Asia

264,346

7 %

167,629

6 %

61,927

3 %

Europe

219,130

5 %

204,302

7 %

142,606

9 %

Total revenue

$     3,963,126

$     2,890,860

$     1,783,665

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SOURCE V2X, Inc.

V2X to Announce Fourth Quarter and Full Year 2023 Financial Results

MCLEAN, Va., Feb. 14, 2024 /PRNewswire/ — V2X, Inc., (NYSE: VVX), a leading provider of global mission solutions, will report fourth quarter and full year 2023 financial results on Tuesday, March 5, 2024, 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/WrwGVYwl6dA 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 March 19, 2024, at 844-512-2921 (domestic) or 412-317-6671 (international) with passcode 13743860.  

ABOUT V2X

V2X builds smart solutions designed to integrate physical and digital infrastructure – 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.

V2X wins $190M U.S. Army Contract to Enhance Warfighter Readiness in Middle East Operations

MCLEAN, Va., Jan. 4, 2024 /PRNewswire/ — V2X, Inc. (NYSE: VVX) was awarded a $190 million contract from the U.S. Army as part of the United States Army Central Command (USARCENT) Training and Range Operations Maintenance Services Contract (ATROMS). The competitively bid firm-fixed-price contract will span five-years, continuing V2X’s support to USARCENT’s mission in Kuwait as well as other locations within the U.S. Central Command (USCENTCOM) Area of Responsibility (AOR). V2X will provide training support services as well as instruction, operation, and maintenance of Training Aids, Devices, Simulators and Simulations (TADSS). These services are crucial in expanding the USARCENT ability to not only maintain but enhance warfighter readiness.

“With this significant contract award, V2X reaffirms its commitment to bolstering the U.S. Army’s training and operational capabilities in dynamic environments,” said Chuck Prow, President and Chief Executive Officer at V2X. “Our proven expertise and dedication underscore our mission to empower the warfighter’s readiness for any challenge.”

Given the challenging dynamics of the Middle East and USCENTCOM AOR landscapes, the contract facilitates the rapid deployment of a multitude of Live, Virtual, and Constructive (LVC) resources, effectively enhancing the strategic positioning of USARCENT.


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

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/v2x-wins-190m-us-army-contract-to-enhance-warfighter-readiness-in-middle-east-operations-302025734.html

SOURCE V2X, Inc.

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]


Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/v2x-announces-third-quarter-2023-results-301977997.html

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

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/v2x-to-announce-third-quarter-2023-financial-results-301965098.html

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]

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/shawn-mural-named-senior-vice-president-and-chief-financial-officer-at-v2x-301943910.html

SOURCE V2X, Inc.