May 30, 2024
MCLEAN, Va., May 30, 2024 /PRNewswire/ — V2X, Inc., (NYSE: VVX), a leading provider of global mission solutions, announced that company management will address the Stifel 2024 Cross Sector Insight Conference in Boston on Wednesday, June 5, at 3:00 p.m. Eastern time.
A live webcast of the briefing will be available at https://wsw.com/webcast/stifel89/vvx/1981280 and be available for replay for 90 days afterward.
About V2X
V2X builds smart solutions designed to integrate physical and digital infrastructure – by aligning people, actions, and outputs. 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
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SOURCE V2X, Inc.
May 23, 2024
MCLEAN, Va., May 23, 2024 /PRNewswire/ — V2X, Inc., (NYSE: VVX), a leading provider of global mission solutions, announced that company management will address the Baird 2024 Global Consumer, Technology & Services Conference in New York City on Tuesday, June 4, at 3:45 p.m. Eastern time.
About V2X
V2X builds smart solutions designed to integrate physical and digital infrastructure – by aligning people, actions, and outputs. 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
View original content to download multimedia:https://www.prnewswire.com/news-releases/v2x-to-participate-in-the-baird-2024-global-consumer-technology–services-conference-302154802.html
SOURCE V2X, Inc.
May 20, 2024
MCLEAN, Va., May 20, 2024 /PRNewswire/ — V2X, Inc. (NYSE: VVX) is proud to announce that multiple sites under its operations within the Department of Defense Information Network have been named Facility of the Year by the Defense Information Systems Agency (DISA). These awards recognize exceptional performance across all aspects of the programs.
The DISA Defense Information Systems Network (DISN) Facility of the Year recognizes outstanding DISN facilities for exemplary accomplishments, performance, and contributions made to enhance the effectiveness in which the Department of Defense Information Network is operated, secured, and managed.
Three V2X locations emerged as winners with an additional four earning recognition as runners-up. The three V2X locations were chosen as winners support the Operations, Maintenance and Supply-Europe (OPMAS-E) program, the Enterprise Legacy Voice and Information System (ELVIS) program and the Operations, Maintenance and Defense of Army Communications (OMDAC) program.
“We are deeply honored by the recognition of multiple V2X locations and remain committed to our ongoing commitment to provide enhanced reliability and protection of vital DoD networks across the globe,” said Ken Shreves, Senior Vice President of Global Mission Solutions and Chief Service Delivery and Growth Officer at V2X. “The contributions of OPMAS, OMDAC, and ELVIS to the DISA mission are paramount, and we take great pride in their steadfast dedication to delivering around the clock mission critical IT and communications support in over 10 countries.”
The Facility of the Year winners include:
- Europe Red Switch (ELVIS)
- Europe Facility Control Office (OPMAS-E)
- DISA CENT Large Transmission (OMDAC)
The Facility of Year Runners-Up are:
- Europe Small Ankara (ELVIS)
- Europe Medium Mildenhall (ELVIS)
- Europe Large Landstuhl (OPMAS-E)
- Europe Red Switch Patch Barracks (OPMAS-E)
DISA is a combat support agency of the Department of Defense (DoD) and provides, operates, and assures command and control and information-sharing capabilities and a globally accessible enterprise information infrastructure in direct support to joint warfighters, national level leaders, and other mission and coalition partners across the full spectrum of military operations.
About V2X
V2X builds smart solutions designed to integrate physical and digital infrastructure – by aligning people, actions, and outputs. 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.
Media Contact
Angelica Spanos Deoudes
Director, Corporate Communications
[email protected]
571-338-5195
Investor Contact
Mike Smith, CFA
Vice President, Treasury, Corporate Development and Investor Relations
[email protected]
719-637-5773
View original content to download multimedia:https://www.prnewswire.com/news-releases/v2x-sites-earn-top-honors-by-defense-information-systems-agency-302149793.html
SOURCE V2X, Inc.
May 13, 2024
Jeremy Wensinger Appointed President and CEO, Succeeding Chuck Prow
MCLEAN, Va., May 13, 2024 /PRNewswire/ — V2X, Inc. (NYSE: VVX), a leading provider of global mission solutions, announced today that Jeremy Wensinger has been appointed President, Chief Executive Officer and a member of the company’s Board of Directors, succeeding Chuck Prow. This appointment, which is effective as of June 17, 2024, is the result of a thorough Board-led succession planning process designed to ensure a smooth transition and continue V2X’s positive business momentum.
![V2X (PRNewsfoto/V2X, Inc.) V2X (PRNewsfoto/V2X, Inc.)](https://mma.prnewswire.com/media/1852552/V2X_Color_Logo.jpg)
Mr. Wensinger has had a highly distinguished 35-year career as a defense and government services industry executive. He most recently served as Chief Operating Officer of Peraton Inc., a next-generation national security company providing solutions and services primarily to the U.S. government with $7 billion in annual revenue. Mr. Wensinger previously served in various leadership roles at Harris Corporation, Cobham PLC, and PAE Government Services, Inc. Throughout his career, he has demonstrated strong leadership and organizational management in driving organic growth, implementing strong business development processes and differentiated technology strategies, executing business integrations, and leading business improvement initiatives.
“Following a thorough process to identify our next CEO, the Board is confident that Jeremy is a strong, experienced leader for V2X’s next chapter of growth,” said Mary Howell, Chairman of V2X’s Board of Directors. “He has a proven track record of delivering best-in-class financial and operational performance within the broad defense services and aerospace industry, as well as a strategic approach to managing businesses, building strong stakeholder relationships, and creating value.”
Mr. Wensinger said, “I am honored to join the V2X team as CEO. I look forward to building on the considerable growth and operating improvements V2X has made, while taking a fresh look at the areas of the business where we can further capitalize on the full potential of our market opportunity. I am eager to begin working with the Board, leadership, and talented V2X team to execute on our strategic and financial goals and drive shareholder value.”
“As the company nears the two-year anniversary of completing the transformational merger of Vectrus with Vertex to create the V2X platform, we thank Chuck for his dedication and valuable contributions,” Mrs. Howell said. “During his tenure as CEO, the company delivered significant organic growth as well as further diversified its contract and customer base, established entirely new technological and service capabilities, and delivered an enhanced customer and employee experience. We look forward to building upon these successes.”
“I would like to thank V2X’s employees, as well as our clients and industry partners, for their trust and confidence in the journey which is now V2X,” Mr. Prow said. “Leading the talented men and women of V2X, deployed globally in support of some of our nation’s most critical missions, has been an honor and privilege.”
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.
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 in this release that are not historical, including, without limitation, goals for future performance, results and value, our long-term growth outlook and targets and related assumptions and drivers, as well as the expected execution and effect of our business strategies, expectations regarding management transition plans, 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,” “intent,” “estimate,” “anticipate,” “believe,” “could,” “potential,” “continue,” “can,” “goal,” “long-term,” “drive,” “next,” and variations of such words and or similar expressions and 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 in our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and other filings with the SEC.
We do not undertake, and expressly disclaim, any duty or obligation to update publicly any forward-looking statement after the date of this release, whether as a result of new information, future events or otherwise, except as required by law.
Investor Contact
Mike Smith, CFA
Vice President, Treasury, Corporate Development and Investor Relations
[email protected]
719-637-5773
Media Contact
Angelica Spanos Deoudes
Director, Corporate Communications
[email protected]
571-338-5195
View original content to download multimedia:https://www.prnewswire.com/news-releases/v2x-inc-announces-executive-leadership-transition-302143147.html
SOURCE V2X, Inc.
May 7, 2024
First Quarter 2024 Summary
- Revenue up 7.1% y/y to $1.01 billion
- Operating income of $30.3 million; adjusted operating income1 of $62.9 million
- Net income of $1.1 million, up $18.6 million y/y
- Adjusted EBITDA1 of $69.1 million with a margin1 of 6.8%
- Diluted EPS of $0.04; Adjusted diluted EPS1 of $0.90
- Selected to provide technology solutions for threat detection and response to Chemical, Biological, Radiological, & Nuclear hazards
- Awarded position on U.S. Navy’s Global Contingency Services Multiple Award Contract III valued up to $2 billion
2024 Guidance:
- Reaffirming full-year 2024 guidance
MCLEAN, Va., May 7, 2024 /PRNewswire/ — V2X, Inc. (NYSE:VVX) announced first quarter 2024 financial results.
“V2X reported a solid start to 2024 with revenue up 7% year-over-year,” said Chuck Prow, President and Chief Executive Officer of V2X. “Our leading growth indicators remain strong with a robust backlog of $12.6 billion and a pipeline of nearer-term new business opportunities of $25 billion. V2X continues to advance our transformation to deliver enhanced capabilities in an expanding market. Given our first quarter results and trends we are seeing in our business, we are reaffirming our 2024 guidance.”
“We continue to witness growth in the Pacific or INDOPACOM, with our presence in the region proving to be a key channel to support increasing mission requirements,” said Mr. Prow. “Revenue in the region was up 7% year-over-year. We continue to expand our scope of services in the region, which includes a new award to deploy an assured and protected private 5G communications solution and enable smart logistics in the Philippines. Additionally, our position in the Middle East or CENTCOM continues to expand with revenue up 22% year-over-year. As the largest services provider to the Department of Defense in the Middle East, V2X stands ready to support our clients mission requirements.”
Mr. Prow continued, “V2X remains focused on differentiated operational technologies that fuse the digital and physical aspects of our clients’ missions. This differentiation is driving growth and was recently demonstrated through contract awards valued at $75 million to provide technology solutions for threat detection and response to Chemical, Biological, Radiological, and Nuclear (CBRN) hazards. This work expanded from a prototype effort to a new sole source award for the production, upgrade, and fielding of cutting-edge systems at overseas operational locations. Under the contract, V2X is the lead systems integrator for CBRN Support to Command and Control (CSC2) program. CSC2 is the program of record for the integration of CBRN, which will link sensors together to provide integrated situational awareness about potential hazards to inform end user decision making.”
Mr. Prow concluded, “I’m pleased to announce that V2X was selected as a prime contractor for the U.S. Navy’s Global Contingency Services Multiple Award Contract III (GCSMAC III). The contract is valued at up to $2 billion, was awarded by the Naval Facilities Engineering Command, Pacific in Hawaii, and enables V2X to provide critical support services for a wide range of scenarios, including natural disasters, humanitarian efforts, and military actions. The total contract value for GCSMAC III was increased significantly from the prior iteration, which reached its ceiling value of $900 million. Importantly, V2X was the leading provider of services under the prior iteration of the contract, winning $300 million in task orders.”
First Quarter 2024 Results
“V2X reported revenue of $1.0 billion in the quarter, which represents 7.1% year-over-year growth,” said Shawn Mural, Senior Vice President and Chief Financial Officer. “Revenue growth in the quarter was achieved through continued expansion of existing business in the Pacific and Middle East regions, as well as new programs. Growth in the Pacific was driven by continued expansion of scope and services, particularly at Kwajalein Atoll. Growth in the Middle East was driven primarily by expansion in Qatar and the ramp up of our longer-term Saudi Aviation Support & Training program.”
“For the quarter, the Company reported operating income of $30.3 million and adjusted operating income1 of $62.9 million. Adjusted EBITDA1 was $69.1 million with a margin of 6.8%. First quarter GAAP diluted EPS was $0.04, due primarily to merger and integration related costs, amortization of acquired intangible assets, and interest expense. Adjusted diluted EPS1 for the quarter was $0.90.”
“An important attribute of our business is the ability to generate strong cash flow with low capital expenditure requirements. We expect to deliver full-year adjusted net cash provided by operating activities1 of $145 million to $165 million, representing 120% adjusted net income conversion1 at the mid-point. During the quarter, net cash used by operating activities was $57.2 million, in line with our historical pattern and reflective of a receivable delay that collected shortly after the quarter closed. Adjusted net cash used by operating activities1 was $83.5 million, adding back approximately $5.8 million of M&A and integration costs and removing the contribution of the master accounts receivable purchase or MARPA facility of $32.1 million.”
“At the end of the quarter, net debt for V2X was $1,173 million. Net leverage ratio1was 3.5x, down from 3.8x at the end of the first quarter 2023. We expect to achieve a net leverage ratio of 3.0x, or below, by the end of 2024.”
“Total backlog as of March 29, 2024, was $12.6 billion. Funded backlog was $2.7 billion. Bookings in the quarter were $0.8 billion, resulting in a trailing twelve-month book-to-bill of 1.2x.”
Reaffirming 2024 Guidance
Mr. Mural concluded, “We are pleased with the performance across our business and start to the year. Our teams continue to execute, driving expansion on existing operations and phasing in of new programs. As such, the Company is reaffirming its guidance for 2024.”
Guidance for 2024 remains 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.
First Quarter Conference Call
Management will conduct a conference call with analysts and investors at 8:00 a.m. ET on Tuesday, May 7, 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/24war3pJ8n7
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 May 21, 2024, at 844-512-2921 (domestic) or 412-317-6671 (international) with passcode 13745566.
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. 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 in 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
|
|
|
March 29,
|
|
March 31,
|
(In thousands, except per share data)
|
|
2024
|
|
2023
|
Revenue
|
|
$ 1,010,564
|
|
$ 943,460
|
Cost of revenue
|
|
940,290
|
|
864,630
|
Selling, general, and administrative expenses
|
|
39,943
|
|
48,251
|
Operating income
|
|
30,331
|
|
30,579
|
Loss on extinguishment of debt
|
|
—
|
|
(22,052)
|
Interest expense, net
|
|
(27,574)
|
|
(31,744)
|
Other expense, net
|
|
(1,633)
|
|
—
|
Income (loss) from operations before income taxes
|
|
1,124
|
|
(23,217)
|
Income tax benefit
|
|
(20)
|
|
(5,737)
|
Net income (loss)
|
|
$ 1,144
|
|
$ (17,480)
|
|
|
|
|
|
Earnings (loss) per share
|
|
|
|
|
Basic
|
|
$ 0.04
|
|
$ (0.57)
|
Diluted
|
|
$ 0.04
|
|
$ (0.57)
|
Weighted average common shares outstanding – basic
|
|
31,351
|
|
30,927
|
Weighted average common shares outstanding – diluted
|
|
31,794
|
|
30,927
|
V2X, INC.
|
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
|
|
|
|
March 29,
|
|
December 31,
|
(In thousands, except per share data)
|
|
2024
|
|
2023
|
Assets
|
|
|
|
|
Current assets
|
|
|
|
|
Cash, cash equivalents and restricted cash
|
|
$ 35,658
|
|
$ 72,651
|
Receivables
|
|
788,490
|
|
705,995
|
Prepaid expenses and other current assets
|
|
129,427
|
|
96,223
|
Total current assets
|
|
953,575
|
|
874,869
|
Property, plant, and equipment, net
|
|
93,362
|
|
85,429
|
Goodwill
|
|
1,648,298
|
|
1,656,926
|
Intangible assets, net
|
|
389,448
|
|
407,530
|
Right-of-use assets
|
|
37,629
|
|
41,215
|
Other non-current assets
|
|
17,379
|
|
15,931
|
Total non-current assets
|
|
2,186,116
|
|
2,207,031
|
Total Assets
|
|
$ 3,139,691
|
|
$ 3,081,900
|
Liabilities and Shareholders’ Equity
|
|
|
|
|
Current liabilities
|
|
|
|
|
Accounts payable
|
|
$ 430,600
|
|
$ 453,052
|
Compensation and other employee benefits
|
|
139,349
|
|
158,088
|
Short-term debt
|
|
15,361
|
|
15,361
|
Other accrued liabilities
|
|
267,425
|
|
213,700
|
Total current liabilities
|
|
852,735
|
|
840,201
|
Long-term debt, net
|
|
1,154,345
|
|
1,100,269
|
Deferred tax liabilities
|
|
13,698
|
|
11,763
|
Operating lease liabilities
|
|
32,419
|
|
34,691
|
Other non-current liabilities
|
|
92,758
|
|
104,176
|
Total non-current liabilities
|
|
1,293,220
|
|
1,250,899
|
Total liabilities
|
|
2,145,955
|
|
2,091,100
|
Commitments and contingencies (Note 7)
|
|
|
|
|
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; 31,452,806 and 31,191,628 shares issued and outstanding as of March 29, 2024 and December 31, 2023, respectively
|
|
315
|
|
312
|
Additional paid in capital
|
|
761,605
|
|
762,324
|
Retained earnings
|
|
231,995
|
|
230,851
|
Accumulated other comprehensive loss
|
|
(179)
|
|
(2,687)
|
Total shareholders’ equity
|
|
993,736
|
|
990,800
|
Total Liabilities and Shareholders’ Equity
|
|
$ 3,139,691
|
|
$ 3,081,900
|
V2X, INC.
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
|
|
|
|
Three Months Ended
|
|
|
March 29,
|
|
March 31,
|
(In thousands)
|
|
2024
|
|
2023
|
Operating activities
|
|
|
|
|
Net income (loss)
|
|
$ 1,144
|
|
$ (17,480)
|
Adjustments to reconcile net income (loss) to net cash used in operating activities:
|
Depreciation expense
|
|
6,243
|
|
5,412
|
Amortization of intangible assets
|
|
22,539
|
|
22,606
|
Loss on disposal of property, plant, and equipment
|
|
8
|
|
31
|
Stock-based compensation
|
|
5,149
|
|
12,872
|
Deferred taxes
|
|
(262)
|
|
(6,034)
|
Amortization of debt issuance costs
|
|
2,160
|
|
2,513
|
Loss on extinguishment of debt
|
|
—
|
|
22,052
|
Changes in assets and liabilities:
|
|
|
|
|
Receivables
|
|
(55,363)
|
|
(30,649)
|
Other assets
|
|
(23,522)
|
|
(9,778)
|
Accounts payable
|
|
(33,715)
|
|
(4,115)
|
Compensation and other employee benefits
|
|
(18,607)
|
|
(24,182)
|
Other liabilities
|
|
37,000
|
|
(11,740)
|
Net cash used in operating activities
|
|
(57,226)
|
|
(38,492)
|
Investing activities
|
|
|
|
|
Purchases of capital assets
|
|
(7,775)
|
|
(9,076)
|
Proceeds from the disposition of assets
|
|
5
|
|
—
|
Acquisitions of businesses
|
|
(16,939)
|
|
—
|
Net cash used in investing activities
|
|
(24,709)
|
|
(9,076)
|
Financing activities
|
|
|
|
|
Proceeds from issuance of long-term debt
|
|
—
|
|
250,000
|
Repayments of long-term debt
|
|
(3,840)
|
|
(421,013)
|
Proceeds from revolver
|
|
375,250
|
|
348,750
|
Repayments of revolver
|
|
(319,250)
|
|
(163,750)
|
Proceeds from stock awards and stock options
|
|
3
|
|
5
|
Payment of debt issuance costs
|
|
—
|
|
(7,507)
|
Prepayment premium on early redemption of debt
|
|
—
|
|
(1,600)
|
Payments of employee withholding taxes on share-based compensation
|
|
(5,702)
|
|
(12,806)
|
Net cash provided by (used in) financing activities
|
|
46,461
|
|
(7,921)
|
Exchange rate effect on cash
|
|
(1,519)
|
|
1,567
|
Net change in cash, cash equivalents and restricted cash
|
|
(36,993)
|
|
(53,922)
|
Cash, cash equivalents and restricted cash – beginning of period
|
|
72,651
|
|
116,067
|
Cash, cash equivalents and restricted cash – end of period
|
|
$ 35,658
|
|
$ 62,145
|
|
|
|
|
|
Supplemental disclosure of cash flow information:
|
|
|
|
|
Interest paid
|
|
$ 27,125
|
|
$ 29,066
|
Income taxes paid
|
|
$ 1,014
|
|
$ 300
|
Purchase of capital assets on account
|
|
$ 410
|
|
$ 494
|
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, and adjusted operating cash flow 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, and adjusted net cash provided by (used in) operating activities, 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.
- 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.
Non-GAAP Tables
|
|
($K, except per share data)
|
Three Months Ended
|
|
March 29, 2024
|
|
March 31, 2023
|
Revenue
|
$ 1,010,564
|
|
$ 943,460
|
Net income (loss)
|
$ 1,144
|
|
$ (17,480)
|
Plus:
|
|
|
|
Income tax benefit
|
(20)
|
|
(5,737)
|
Other expense, net
|
1,633
|
|
—
|
Interest expense, net
|
27,574
|
|
31,744
|
Loss on extinguishment of debt
|
—
|
|
22,052
|
Amortization of intangible assets
|
22,539
|
|
22,606
|
M&A, integration and related costs
|
9,981
|
|
10,767
|
Adjusted operating income
|
$ 62,851
|
|
$ 63,952
|
Plus:
|
|
|
|
Depreciation expense
|
6,243
|
|
5,412
|
Adjusted EBITDA
|
$ 69,094
|
|
$ 69,364
|
Adjusted EBITDA margin
|
6.8 %
|
|
7.4 %
|
Minus:
|
|
|
|
Cash interest expense, net
|
25,414
|
|
29,231
|
Income tax expense, as adjusted
|
7,155
|
|
8,580
|
Depreciation expense
|
6,243
|
|
5,412
|
Other expense, net
|
1,633
|
|
—
|
Adjusted net income
|
$ 28,649
|
|
$ 26,141
|
|
($K, except per share data)
|
Three Months Ended
|
|
March 29, 2024
|
|
March 31, 2023
|
Diluted earnings (loss) per share
|
$ 0.04
|
|
$ (0.57)
|
Plus:
|
|
|
|
M&A, integration and related costs
|
0.25
|
|
0.26
|
Amortization of intangible assets
|
0.56
|
|
0.54
|
Amortization of debt issuance costs and Loss on extinguishment of debt
|
0.05
|
|
0.60
|
Adjusted diluted earnings per share
|
$ 0.90
|
|
$ 0.83
|
|
|
|
|
Average shares outstanding
|
|
|
|
Basic, as reported
|
31,351
|
|
30,927
|
Diluted, as reported
|
31,794
|
|
30,927
|
Adjusted diluted
|
31,794
|
|
31,334
|
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
|
|
|
March 29,
|
|
March 31,
|
|
(In thousands)
|
|
2024
|
%
|
2023
|
%
|
Army
|
|
$ 433,430
|
43 %
|
$ 390,503
|
41 %
|
Navy
|
|
321,384
|
32 %
|
292,690
|
31 %
|
Air Force
|
|
118,569
|
12 %
|
129,981
|
14 %
|
Other
|
|
137,181
|
13 %
|
130,286
|
14 %
|
Total revenue
|
|
$ 1,010,564
|
|
$ 943,460
|
|
Revenue by Contract Type
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
March 29,
|
|
March 31,
|
|
(In thousands)
|
|
2024
|
%
|
2023
|
%
|
Cost-plus and cost-reimbursable
|
|
$ 604,167
|
60 %
|
$ 523,030
|
55 %
|
Firm-fixed-price
|
|
379,272
|
38 %
|
385,112
|
41 %
|
Time-and-materials
|
|
27,125
|
2 %
|
35,318
|
4 %
|
Total revenue
|
|
$ 1,010,564
|
|
$ 943,460
|
|
|
|
|
|
Revenue by Contract Relationship
|
|
|
|
|
|
Three Months Ended
|
|
|
March 29,
|
|
March 31,
|
|
(In thousands)
|
|
2024
|
%
|
2023
|
%
|
Prime contractor
|
|
$ 945,155
|
94 %
|
$ 879,179
|
93 %
|
Subcontractor
|
|
65,409
|
6 %
|
64,281
|
7 %
|
Total revenue
|
|
$ 1,010,564
|
|
$ 943,460
|
|
|
|
|
|
Revenue by Geographic Region
|
|
|
|
|
|
Three Months Ended
|
|
|
March 29,
|
|
March 31,
|
|
(In thousands)
|
|
2024
|
%
|
2023
|
%
|
United States
|
|
$ 544,726
|
54 %
|
$ 548,770
|
58 %
|
Middle East
|
|
343,216
|
34 %
|
281,121
|
30 %
|
Asia
|
|
68,802
|
7 %
|
64,317
|
7 %
|
Europe
|
|
53,820
|
5 %
|
49,252
|
5 %
|
Total revenue
|
|
$ 1,010,564
|
|
$ 943,460
|
|
View original content to download multimedia:https://www.prnewswire.com/news-releases/v2x-delivers-solid-first-quarter-results-302137430.html
SOURCE V2X, Inc.
May 6, 2024
MCLEAN, Va., May 6, 2024 /PRNewswire/ — V2X, Inc. (NYSE: VVX) announces its continued support to the National Training Center Training Services Contract (NTCTSC) under a one-year bridge contract with the US Army. The bridge contract extends the period of performance of the original five-year award. This extension reinforces V2X’s longstanding record of excellence in preparing warfighters for deployment.
![V2X (PRNewsfoto/V2X, Inc.) V2X (PRNewsfoto/V2X, Inc.)](https://mma.prnewswire.com/media/1852552/V2X_Color_Logo.jpg)
The NTCTSC contract enables V2X to maintain its role in supporting training operations at NTC, located in Ft. Irwin, CA. V2X’s responsibilities under the contract include providing advisory services, technical expertise, and system operators to ensure training is both effective and efficient. Specifically, the NTCTSC Bridge facilitates training support services, which include audio-visual operations for after-action review productions, leadership advisory services, secure LAN operations, skilled role players, Blue Force Tracker system management, battlefield effects, computer training, analytical system operations, and a range of other specialized services.
“We are proud to be a trusted partner in delivering mission-critical support to the brigade combat teams cycling through the National Training Center,” said Ken Shreves, Senior Vice President of Global Mission Solutions and Chief Service Delivery and Growth Officer at V2X. “With our proven track record of providing high-consequence training support to the US Army, V2X is uniquely positioned to prepare soldiers for global missions.”
“For nearly three decades, our team has met or exceeded all customer requirements at the NTC and continues to perform in an exceptional manner across the U.S. Army’s training centers,” said Aileen Amirault, Vice President and General Manager of V2X Global Training Solutions. “Our commitment extends globally, as evidenced by our work at the Joint Multinational Readiness Center (JMRC) in Germany, and our delivery of training support, maintenance, and range operations services to U.S. Army Central Command (ARCENT) in Kuwait. This sustained excellence underscores our dedication to supporting our troops wherever they serve.” This training builds on V2X’s time-honored pivotal role in supporting the strategic readiness of the United States Army.
About V2X
V2X delivers a comprehensive suite of integrated solutions across defense and commercial training, operations and logistics, aerospace, 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.
Media Contact
Angelica Spanos Deoudes
Director, Corporate Communications
[email protected]
571-338-5195
Investor Contact
Mike Smith, CFA
Vice President, Treasury, Corporate Development and Investor Relations
[email protected]
719-637-5773
View original content to download multimedia:https://www.prnewswire.com/news-releases/v2x-to-continue-legacy-of-excellence-in-delivering-training-solutions-to-the-us-army-at-the-national-training-center-302136646.html
SOURCE V2X, Inc.