GovConWire: V2X Issues 1st Financial Report Since Vectrus-Vertex Merger; Chuck Prow Quoted

Aug 10, 2022

V2X (NYSE: VVX) reported $498 million in sales for the second quarter of 2022, up 6 percent from the prior-year period, and said the quarterly results for the period ended July 1 reflect contributions of Vectrus prior to the completion of its merger with The Vertex Company.

In early July, Vectrus closed its all-stock merger with The Vertex Company, forming V2X as a new critical-mission platforms and services provider to defense customers worldwide.

“Revenue growth was driven by building on the momentum of programs in INDOPACOM and Europe, along with successful phase-in of new contracts, including the Logistics Readiness Center at Fort Benning,” V2X CEO Chuck Prow said

Vectrus ended the quarter with a total backlog of $4.6 billion, of which $1.3 billion was funded.

The company recorded an operating cash flow of $46 million for the second quarter, a fully diluted earnings per share of $0.88 and an adjusted earnings before interest, taxes, depreciation and amortization of $24.7 million with a margin of 5 percent.

Prow, an eight-time Wash100 Award winner, noted that V2X reached full operational capability status on Logistics Civil Augmentation Program V Kwajalein ahead of schedule, enabling the company to broaden its presence in the Indo-Pacific region.

“This program is expected to run over the next eight years and provides strategic logistics services to the DoD. Work content in the INDOPACOM region now represents 9% of total revenue, up 3% from last year, and positions us well to support the DoD in a full range of operations over the next ten years,” he added.