Second Quarter 2023 Highlights:
- Revenue of $977.9 million, up
10.2% y/y on a pro forma basis
- Awarded significant bookings of $2.1
billion, driving backlog +10% sequentially to $13.0 billion
- Reported operating income of $34.3
million; adjusted operating income1 of
$70.5 million
- Adjusted EBITDA1 of $76.4
million with a margin1 of 7.8%
- Diluted EPS of $0.06; adjusted
diluted EPS1 of $1.01
- Improved net debt to EBITDA1 leverage ratio ~0.4x
to 3.48x
2023 Guidance:
- Increasing mid-point of 2023 revenue, adjusted
EBITDA1, and adjusted diluted EPS1
guidance
MCLEAN,
Va., Aug. 8, 2023 /PRNewswire/ -- V2X,
Inc. (NYSE:VVX) announced second quarter 2023 financial
results.
"V2X reported strong results in the second quarter with revenue
increasing 10.2% year-over-year, on a pro forma basis," said
Chuck Prow, President and Chief
Executive Officer of V2X. "Adjusted EBITDA1 for the
quarter was $76.4 million and 7.8%
margin resulting from solid revenue volume and benefits from
program performance. Bookings activity in the quarter was strong at
$2.1 billion in awards to V2X. This
yielded total backlog of $13.0
billion, representing 10% growth sequentially. Our new
business and recompete wins in addition to scope expansion on
existing programs bolster our backlog position and set us up for
positive momentum leading into 2024. Furthermore, with over
$5 billion in bids under evaluation
and a 12-month pipeline of ~$19
billion, the outlook for V2X remains robust."
"Revenue growth in the quarter was generated by continued
expansion on existing programs, contribution from new awards, as
well as success in securing recompete wins late last year and in
early 2023," said Mr. Prow. "Our teams continued to further drive
momentum by successfully expanding work scope on our core programs.
Several notable wins late last year and in the first half of 2023
have also helped to push revenue growth. We continue to experience
growth in the Pacific or INDOPACOM, and see significant long-term
opportunity to further support increasing mission requirements in
the region."
Mr. Prow continued, "We were successful in capturing several key
new business pursuits during the quarter. First, we were awarded a
$100 million five-year task order
with the Department of State to provide logistics support
internationally. This represents our most substantive and strategic
win with the Department of State and is the culmination of a
multi-year client engagement and targeted growth campaign. Our
agility and high level of readiness to support mission requirements
was a key strategic differentiator for V2X in this award. Looking
ahead, we see significant opportunity to leverage our comprehensive
capabilities and footprint to further support the global missions
of this important client. I am also pleased to announce that we are
seeing results executing our sell through business model, which is
leveraging our highly technical, development, integration,
production, and modernization capabilities. During the quarter, V2X
finalized three separate efforts with new clients that utilize our
engineering, integration and manufacturing capabilities. We were
also awarded an engineering development and prototyping effort with
a new client that we believe will lead to new proprietary products
with enduring follow-on business."
"In addition to new awards, during the second quarter, we were
awarded over $520 million in
recompetes," said Mr. Prow. "This includes an eight-year,
$328 million contract with Naval
Facilities Systems Command (NAVFAC) Southeast in support of the
Naval Station at Guantanamo Bay.
This contract includes all aspects of infrastructure sustainment,
including the application of our unique converged solutions. We
also secured a five-year recompete contract valued at over
$122 million with NAVAIR Fleet
Readiness Center Southwest for depot level maintenance support
services. Transition to the new contract started in early July.
These two recompete wins, along with our first quarter win of Naval
Test Wing Pacific reflect the realization of our deliberate
growth-oriented client campaign. These efforts are yielding growth,
which further diversify our client portfolio. We are thrilled to
have been selected for these important programs and remain focused
on helping the Navy succeed with the missions that they serve."
Mr. Prow concluded, "We are harnessing the combined solutions of
V2X and are seeing momentum that we believe will drive growth and
create value. For example, V2X's robust modernization and
sustainment capabilities are a significant differentiator and we
are making excellent progress leveraging our engineering and
manufacturing center of excellence. This includes opportunities
such as modernizing and improving the effectiveness of the F-16
Fighting Falcon and further expanding our proprietary Gateway
Mission Router 1000 across various platforms to provide cutting
edge situational awareness in support of the DoD's Joint All Domain
Command and Control (JADC2) effort."
Second Quarter 2023 Results
On July 5, 2022 ("Closing
Date"), Vectrus, Inc. ("Vectrus") completed its merger (the
"Merger") with Vertex Aerospace Services Holding Corp. ("Vertex"),
thereby forming V2X, Inc. Second quarter 2022 "reported results"
reflect the contributions of Vectrus from April 1, 2022, through June 30, 2022, unless otherwise noted.
Comparisons to historical periods are relative to legacy Vectrus
results, unless otherwise noted.
- Revenue of $977.9 million, up
10.2% y/y on a pro forma basis
- Operating income of $34.3
million, including merger and integration related costs of
$13.6 million, and amortization of
acquired intangible assets of $22.6
million
- Adjusted operating income1 of $70.5 million
- Adjusted EBITDA1 of $76.4
million with a 7.8% adjusted EBITDA margin1
- Diluted EPS of $0.06
- Adjusted diluted EPS1 of $1.01
- Net debt as of June 30, 2023 of
$1,176.6 million
- Total backlog as of June 30, 2023
of $13.0 billion
"Our financial results for the second quarter were impressive
across the board," said Susan Lynch,
Senior Vice President and Chief Financial Officer. "Pro forma
revenue increased 10.2% year-over-year to $977.9 million. Revenue growth was achieved via
expansion on existing programs, the contribution from new business
wins awarded in late 2022 and securing key recompete programs
in the first half of 2023. Advancing and protecting our core in
addition to growth through new pursuit wins is fundamental to V2X
delivering on its commitments. To date in 2023, we have
witnessed an acceleration of deliverables that were originally
contemplated to be recognized in the second half of the year.
The results this quarter represent achievement of expanding in our
core markets and capturing new business with approximately
$900 million in new contract awards
in the first half of 2023."
For the quarter, the Company reported operating income of
$34.3 million and adjusted operating
income1 of $70.5
million. Adjusted EBITDA1 was $76.4 million with a margin of 7.8%. First
quarter diluted EPS was $0.06, due
primarily to merger and integration related costs, amortization of
acquired intangible assets, and interest expense. Adjusted diluted
EPS1 for the quarter was $1.01.
Ms. Lynch continued, "At the end of the quarter, net debt for
V2X was $1,176.6 million, a
$112 million reduction from the prior
quarter. Net consolidated indebtedness to EBITDA1
(net leverage ratio) was 3.48x, representing a ~0.4x improvement
over the prior quarter. We remain focused on reducing debt
and expect that our leverage ratio will continue to improve in the
second half of 2023."
"Net cash provided by operating activities for the quarter was
$116.6 million. Adjusted net cash
provided by operating activities1 was $10.9 million, adding back $7.3 million of M&A and integration costs,
and removing the contribution of the master accounts receivable
purchase or "MARPA" facility of $113
million," said Ms. Lynch.
Total backlog as of June 30, 2023,
was $13.0 billion, increasing
approximately $1.2 billion over last
quarter reflecting successful expansion on existing programs along
with significant new contract and recompete awards. Funded backlog
was $3.1 billion. The trailing
twelve-month book-to-bill was 1.3x.
2023 Guidance
Ms. Lynch concluded, "I am pleased with our results this quarter
and for the first half of the year. Our teams continue to work
together seamlessly, making notable progress on integration
milestones while driving results across the board. As such, the
Company is raising the mid-point of its 2023 revenue, adjusted
EBITDA1, and adjusted diluted EPS1 guidance."
Guidance for 2023 is as follows:
$ millions, except
for per share amounts
|
2023 Guidance
(Updated)
|
2023 Mid-Point
(Updated)
|
Revenue
|
$3,850
|
|
$3,950
|
$3,900
|
Adjusted
EBITDA1
|
$295
|
|
$310
|
$303
|
Adjusted Diluted
Earnings Per Share1
|
$3.85
|
|
$4.30
|
$4.08
|
Adjusted Net Cash
Provided by Operating Activities1
|
$115
|
|
$135
|
$125
|
Forward-looking statements are based upon current expectations
and are subject to factors that could cause actual results to
differ materially from those suggested here, including those
factors set forth in the Safe Harbor Statement below.
Second Quarter 2023 Conference Call
Management will conduct a conference call with analysts and
investors at 4:30 p.m. ET on Tuesday, August
8, 2023. U.S.-based participants may dial in to the
conference call at 877-506-6380, while international participants
may dial 412-542-4198. A live webcast of the conference call as
well as an accompanying slide presentation will be available here:
https://app.webinar.net/lZEXpEOLx9J
A replay of the conference call will be posted on the V2X
website shortly after completion of the call and will be available
for one year. A telephonic replay will also be available through
August 22, 2023, at 844-512-2921
(domestic) or 412-317-6671 (international) with passcode
10179631.
Presentation slides that will be used in conjunction with the
conference call will also be made available online in advance on
the "investors" section of the company's website at
https://gov2x.com. V2X recognizes its website as a key channel of
distribution to reach public investors and as a means of disclosing
material non-public information to comply with its obligations
under the U.S. Securities and Exchange Commission ("SEC")
Regulation FD.
Footnotes:
1 See "Key Performance Indicators and Non-GAAP
Financial Measures" for descriptions and reconciliations.
About V2X
V2X builds smart solutions designed to integrate physical and
digital infrastructure – from base to battlefield – by aligning
people, actions, and outputs. Formed by the merger of Vectrus and
Vertex, we bring a combined 120 years of successful mission
support. Our lifecycle solutions improve security, streamline
logistics, and enhance readiness.
The Company delivers a comprehensive suite of integrated
solutions across the operations and logistics, aerospace, training,
and technology markets to national security, defense, civilian and
international clients. Our global team of approximately 15,000
employees brings innovation to every point in the mission
lifecycle, from preparation to operations, to sustainment, as it
tackles the most complex challenges with agility, grit, and
dedication.
Safe Harbor Statement
Safe Harbor Statement under the Private Securities Litigation
Reform Act of 1995 (the "Act"): Certain material presented herein
includes forward-looking statements intended to qualify for the
safe harbor from liability established by the Act. These
forward-looking statements include, but are not limited to, all the
statements and items listed under "2023 Guidance" above and other
assumptions contained therein for purposes of such guidance, other
statements about our 2023 performance outlook, revenue, contract
opportunities, and any discussion of future operating or financial
performance.
Forward-looking statements generally can be identified by the
use of forward-looking terminology such as "may," "will," "expect,"
"intend," "estimate," "anticipate," "believe," "could,"
"potential," "continue" or similar terminology. These statements
are based on the beliefs and assumptions of the management of the
Company based on information currently available to management.
These forward-looking statements are not guarantees of future
performance, conditions, or results, and involve a number of known
and unknown risks, uncertainties, assumptions, and other important
factors, many of which are outside our management's control, that
could cause actual results to differ materially from the results
discussed in the forward-looking statements. In addition,
forward-looking statements are subject to certain risks and
uncertainties that could cause actual results to differ materially
from the Company's historical experience and our present
expectations or projections. For a discussion of some of the risks
and uncertainties that could cause actual results to differ from
such forward-looking statements, see the risks and other factors
detailed from time to time our Annual Report on Form 10-K,
Quarterly Reports on Form 10-Q, and other filings with the SEC.
We undertake no obligation to update any forward-looking
statements, whether as a result of new information, future events
or otherwise, except as required by law.
V2X,
INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(UNAUDITED)
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
June 30,
|
|
July 1,
|
|
June 30,
|
|
July 1,
|
(In thousands,
except per share data)
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Revenue
|
|
$
977,852
|
|
$
498,066
|
|
$ 1,921,312
|
|
$
954,537
|
Cost of
revenue
|
|
890,452
|
|
453,305
|
|
1,755,082
|
|
872,581
|
Selling, general, and
administrative expenses
|
|
53,130
|
|
29,740
|
|
101,381
|
|
61,699
|
Operating
income
|
|
34,270
|
|
15,021
|
|
64,849
|
|
20,257
|
Loss on extinguishment
of debt
|
|
—
|
|
—
|
|
(22,052)
|
|
—
|
Interest expense,
net
|
|
(31,950)
|
|
(1,963)
|
|
(63,694)
|
|
(3,643)
|
Other expense,
net
|
|
(311)
|
|
—
|
|
(311)
|
|
—
|
Income (loss) from
operations before income taxes
|
|
2,009
|
|
13,058
|
|
(21,208)
|
|
16,614
|
Income tax expense
(benefit)
|
|
210
|
|
2,586
|
|
(5,527)
|
|
3,287
|
Net income
(loss)
|
|
$
1,799
|
|
$
10,472
|
|
$
(15,681)
|
|
$
13,327
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per
share
|
|
|
|
|
|
|
|
|
Basic
|
|
$
0.06
|
|
$
0.89
|
|
$
(0.51)
|
|
$
1.13
|
Diluted
|
|
$
0.06
|
|
$
0.88
|
|
$
(0.51)
|
|
$
1.12
|
Weighted average common
shares outstanding - basic
|
|
31,033
|
|
11,826
|
|
30,981
|
|
11,793
|
Weighted average common
shares outstanding - diluted
|
|
31,605
|
|
11,954
|
|
30,981
|
|
11,917
|
V2X,
INC. CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
|
|
|
|
June 30,
|
|
December 31,
|
(In
thousands)
|
|
2023
|
|
2022
|
Assets
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
|
$
70,314
|
|
$
116,067
|
Receivables
|
|
746,562
|
|
728,582
|
Prepaid
expenses
|
|
77,724
|
|
74,234
|
Other current
assets
|
|
23,906
|
|
13,049
|
Total current
assets
|
|
918,506
|
|
931,932
|
Property,
plant, and equipment, net
|
|
82,284
|
|
78,715
|
Goodwill
|
|
1,656,965
|
|
1,653,822
|
Intangible
assets, net
|
|
452,739
|
|
497,951
|
Right-of-use
assets
|
|
46,017
|
|
52,825
|
Other
non-current assets
|
|
22,245
|
|
17,858
|
Total non-current
assets
|
|
2,260,250
|
|
2,301,171
|
Total
Assets
|
|
$ 3,178,756
|
|
$ 3,233,103
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Accounts
payable
|
|
$
416,424
|
|
$
406,706
|
Compensation
and other employee benefits
|
|
145,000
|
|
168,038
|
Short-term
debt
|
|
15,500
|
|
11,850
|
Other accrued
liabilities
|
|
255,408
|
|
196,538
|
Total current
liabilities
|
|
832,332
|
|
783,132
|
Long-term debt,
net
|
|
1,190,023
|
|
1,262,811
|
Deferred tax
liabilities
|
|
13,773
|
|
15,813
|
Operating lease
liabilities
|
|
35,490
|
|
41,083
|
Other
non-current liabilities
|
|
114,420
|
|
133,185
|
Total non-current
liabilities
|
|
1,353,706
|
|
1,452,892
|
Total
liabilities
|
|
2,186,038
|
|
2,236,024
|
Commitments and
contingencies (Note 8)
|
|
|
|
|
Shareholders'
Equity
|
|
|
|
|
Preferred
stock; $0.01 par value; 10,000 shares authorized; No shares issued
and
outstanding
|
|
—
|
|
—
|
Common stock;
$0.01 par value; 100,000 shares authorized; 31,081 and 30,470
shares
issued and outstanding as of June 30, 2023 and December 31,
2022,
respectively
|
|
311
|
|
305
|
Additional paid
in capital
|
|
754,096
|
|
748,877
|
Retained
earnings
|
|
237,743
|
|
253,424
|
Accumulated
other comprehensive income (loss)
|
|
568
|
|
(5,527)
|
Total shareholders'
equity
|
|
992,718
|
|
997,079
|
Total Liabilities
and Shareholders' Equity
|
|
$ 3,178,756
|
|
$ 3,233,103
|
V2X,
INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
|
|
|
|
Six Months
Ended
|
|
|
June 30,
|
|
July 1,
|
(In
thousands)
|
|
2023
|
|
2022
|
Operating
activities
|
|
|
|
|
Net (loss)
income
|
|
$
(15,681)
|
|
$
13,327
|
Adjustments to
reconcile net (loss) income to net cash provided by operating
activities:
|
Depreciation
expense
|
|
11,326
|
|
3,238
|
Amortization of
intangible assets
|
|
45,211
|
|
4,423
|
Loss (gain) on
disposal of property, plant, and equipment
|
|
522
|
|
(15)
|
Stock-based
compensation
|
|
20,446
|
|
4,725
|
Amortization of
debt issuance costs
|
|
4,692
|
|
388
|
Loss on
extinguishment of debt
|
|
22,052
|
|
—
|
Changes in assets and
liabilities:
|
|
|
|
|
Receivables
|
|
(20,404)
|
|
(29,302)
|
Prepaid
expenses
|
|
(1,645)
|
|
(5,321)
|
Other
assets
|
|
436
|
|
5,185
|
Accounts
payable
|
|
7,647
|
|
32,470
|
Deferred
taxes
|
|
(5,143)
|
|
—
|
Compensation
and other employee benefits
|
|
(23,150)
|
|
2,507
|
Other
liabilities
|
|
31,831
|
|
(11,989)
|
Net cash
provided by operating activities
|
|
78,140
|
|
19,636
|
Investing
activities
|
|
|
|
|
Purchases of capital
assets
|
|
(11,543)
|
|
(3,492)
|
Proceeds from the
disposition of assets
|
|
5
|
|
18
|
Contribution to joint
venture
|
|
—
|
|
(2,113)
|
Net cash
used in investing activities
|
|
(11,538)
|
|
(5,587)
|
Financing
activities
|
|
|
|
|
Proceeds from issuance
of long-term debt
|
|
250,000
|
|
—
|
Repayments of
long-term debt
|
|
(424,888)
|
|
(5,200)
|
Proceeds from
revolver
|
|
552,750
|
|
392,000
|
Repayments of
revolver
|
|
(467,750)
|
|
(402,000)
|
Proceeds from exercise
of stock options
|
|
6
|
|
370
|
Payment of debt
issuance costs
|
|
(7,507)
|
|
(458)
|
Prepayment premium on
early redemption of debt
|
|
(1,600)
|
|
—
|
Payments of employee
withholding taxes on share-based compensation
|
|
(14,618)
|
|
(1,696)
|
Net cash
used in financing activities
|
|
(113,607)
|
|
(16,984)
|
Exchange rate effect
on cash
|
|
1,252
|
|
(507)
|
Net change in cash and
cash equivalents
|
|
(45,753)
|
|
(3,442)
|
Cash and cash
equivalents - beginning of period
|
|
116,067
|
|
38,513
|
Cash and cash
equivalents - end of period
|
|
$
70,314
|
|
$
35,071
|
|
|
|
|
|
Supplemental disclosure
of cash flow information:
|
|
|
|
|
Interest
paid
|
|
$
58,300
|
|
$
3,409
|
Income taxes
paid
|
|
$
2,707
|
|
$
6,112
|
Purchase of capital
assets on account
|
|
$
1,813
|
|
$
13
|
Key Performance Indicators and Non-GAAP Measures
The primary financial performance measures we use to manage our
business and monitor results of operations are revenue trends and
operating income trends. Management believes that these financial
performance measures are the primary drivers for our earnings and
net cash from operating activities. Management evaluates its
contracts and business performance by focusing on revenue,
operating income, and operating margin. Operating income represents
revenue less both cost of revenue and selling, general and
administrative (SG&A) expenses. Cost of revenue consists of
labor, subcontracting costs, materials, and an allocation of
indirect costs, which includes service center transaction costs.
SG&A expenses consist of indirect labor costs (including wages
and salaries for executives and administrative personnel), bid and
proposal expenses and other general and administrative expenses not
allocated to cost of revenue. We define operating margin as
operating income divided by revenue.
We manage the nature and amount of costs at the program level,
which forms the basis for estimating our total costs and
profitability. This is consistent with our approach for managing
our business, which begins with management's assessing the bidding
opportunity for each contract and then managing contract
profitability throughout the performance period.
In addition to the key performance measures discussed above, we
consider adjusted net income, adjusted diluted earnings per share,
adjusted operating income, adjusted EBITDA, adjusted EBITDA margin,
adjusted operating cash flow, and pro forma revenue to be useful to
management and investors in evaluating our operating performance,
and to provide a tool for evaluating our ongoing operations. This
information can assist investors in assessing our financial
performance and measures our ability to generate capital for
deployment among competing strategic alternatives and initiatives.
We provide this information to our investors in our earnings
releases, presentations, and other disclosures.
Adjusted net income, adjusted diluted earnings per share,
adjusted operating income, adjusted EBITDA, adjusted EBITDA margin,
adjusted operating cash flow, and pro forma revenue, however, are
not measures of financial performance under GAAP and should not be
considered a substitute for financial measures determined in
accordance with GAAP. Definitions and reconciliations of
these items are provided below.
- Pro forma revenue is defined as the combined results of
our operations for the three months ended June 30, 2023 and July 1,
2022 as if the Merger had occurred on January 1, 2021.
- Adjusted operating income is defined as operating
income, adjusted to exclude items that may include, but are not
limited to, significant charges or credits, and unusual and
infrequent non-operating items that impact current results but are
not related to our ongoing operations, such as M&A,
integration, and related costs.
- Adjusted EBITDA is defined as operating income, adjusted
to exclude depreciation and amortization of intangible assets, and
items that may include, but are not limited to, significant charges
or credits, and unusual and infrequent non-operating items that
impact current results but are not related to our ongoing
operations, such as M&A, integration, and related costs.
- Adjusted EBITDA margin is defined as adjusted EBITDA
divided by revenue.
- Adjusted net income is defined as net income, adjusted
to exclude items that may include, but are not limited to,
significant charges or credits, and unusual and infrequent
non-operating items that impact current results but are not related
to our ongoing operations, such as M&A, integration and related
costs, amortization of acquired intangible assets, amortization of
debt issuance costs, and loss on extinguishment of debt.
- Adjusted diluted earnings per share is defined as
adjusted net income divided by the weighted average diluted common
shares outstanding.
- Cash interest, net is defined as interest expense, net
adjusted to exclude amortization of debt issuance costs.
- Adjusted operating cash flow is defined as net cash
provided by (or used in) operating activities adjusted to exclude
infrequent non-operating items, such as M&A payments and
related costs.
In this document, the Company presents certain forward-looking
non-GAAP metrics. The Company does not provide outlook on a GAAP
basis because the items that the Company excludes from GAAP to
calculate the comparable non-GAAP measure can be dependent on
future events that are less capable of being controlled or reliably
predicted by management and are not part of the Company's routine
operating activities. Additionally, management does not forecast
many of the excluded items for internal use and therefore cannot
create or rely on outlook done on a GAAP basis. The
occurrence, timing, and amount of any of the items excluded from
GAAP to calculate non-GAAP measures could significantly impact the
Company's fiscal 2023 GAAP results.
Non-GAAP
Tables
|
|
($K, except per share
data)
|
Three Months
Ended
|
|
Six Months
Ended
|
|
July 1,
2022
|
|
June 30,
2023
|
|
July 1,
2022
|
|
June 30,
2023
|
Revenue
|
$
498,066
|
|
$
977,852
|
|
$
954,537
|
|
$ 1,921,312
|
Operating
income
|
$
15,021
|
|
$
34,270
|
|
$
20,257
|
|
$
64,849
|
Plus:
|
|
|
|
|
|
|
|
Depreciation
expense
|
1,647
|
|
5,914
|
|
3,238
|
|
11,326
|
Amortization of
intangible assets
|
2,122
|
|
22,605
|
|
4,423
|
|
45,211
|
M&A, integration
and related costs
|
5,879
|
|
13,642
|
|
14,947
|
|
23,056
|
Adjusted
EBITDA
|
$
24,669
|
|
$
76,431
|
|
$
42,865
|
|
$
144,442
|
Adjusted EBITDA
margin
|
5.0 %
|
|
7.8 %
|
|
4.5 %
|
|
7.5 %
|
Minus:
|
|
|
|
|
|
|
|
Cash interest expense,
net
|
1,779
|
|
29,771
|
|
3,255
|
|
59,002
|
Income tax expense, as
adjusted
|
4,206
|
|
8,564
|
|
7,196
|
|
15,129
|
Depreciation
expense
|
1,647
|
|
5,914
|
|
3,238
|
|
11,326
|
Other expense,
net
|
—
|
|
311
|
|
—
|
|
311
|
Adjusted net
income
|
$
17,037
|
|
$
31,871
|
|
$
29,176
|
|
$
58,674
|
($K, except per share
data)
|
Three Months
Ended
|
|
Six Months
Ended
|
|
July 1,
2022
|
|
June 30,
2023
|
|
July 1,
2022
|
|
June 30,
2023
|
Diluted earnings
(loss) per share
|
$
0.88
|
|
$
0.06
|
|
$
1.12
|
|
$
(0.51)
|
Plus:
|
|
|
|
|
|
|
|
M&A, integration
and related costs
|
0.39
|
|
0.34
|
|
1.01
|
|
0.57
|
Amortization of
intangible assets
|
0.14
|
|
0.56
|
|
0.30
|
|
1.13
|
Amortization of debt
issuance costs and
Loss on extinguishment of debt
|
0.01
|
|
0.05
|
|
0.03
|
|
0.67
|
Adjusted diluted
earnings per share
|
$
1.42
|
|
$
1.01
|
|
$
2.46
|
|
$
1.86
|
|
|
|
|
|
|
|
|
Average shares
outstanding
|
|
|
|
|
|
|
|
Basic, as
reported
|
11,826
|
|
31,033
|
|
11,793
|
|
30,981
|
Diluted, as
reported
|
11,954
|
|
31,605
|
|
11,917
|
|
30,981
|
Adjusted
diluted
|
11,954
|
|
31,605
|
|
11,917
|
|
31,449
|
Pro Forma Revenue
Growth
|
|
|
|
Three Months
Ended
|
($M)
|
|
June 30,
2023
|
|
|
|
Revenue
|
|
$
977.9
|
|
|
|
|
|
Three Months
Ended
|
($M)
|
|
July 1,
2022
|
|
|
|
Pro forma
Revenue
|
|
$
887.4
|
|
|
|
Pro forma Revenue
Growth $
|
|
$
90.5
|
Pro forma Revenue
Growth %
|
|
10.2 %
|
SUPPLEMENTAL
INFORMATION
|
|
Revenue by client
branch, contract type, contract relationship, and geographic region
for the periods presented
below was as follows:
|
|
Revenue by
Client
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
June 30,
|
|
July 1,
|
|
|
June 30,
|
|
July 1,
|
|
(In
thousands)
|
|
2023
|
%
|
2022
|
%
|
|
2023
|
%
|
2022
|
%
|
Army
|
|
$ 393,499
|
40 %
|
$ 326,756
|
66 %
|
|
$ 784,002
|
41 %
|
$ 606,869
|
64 %
|
Navy
|
|
293,198
|
30 %
|
64,885
|
13 %
|
|
585,888
|
30 %
|
140,102
|
15 %
|
Air Force
|
|
154,001
|
16 %
|
68,457
|
14 %
|
|
283,982
|
15 %
|
129,930
|
13 %
|
Other
|
|
137,154
|
14 %
|
37,968
|
7 %
|
|
267,440
|
14 %
|
77,636
|
8 %
|
Total
revenue
|
|
$ 977,852
|
|
$ 498,066
|
|
|
$
1,921,312
|
|
$ 954,537
|
|
|
|
|
|
|
Revenue by
Contract Type
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
June 30,
|
|
July 1,
|
|
|
June 30,
|
|
July 1,
|
|
(In
thousands)
|
|
2023
|
%
|
2022
|
%
|
|
2023
|
%
|
2022
|
%
|
Cost-plus and
cost-reimbursable
|
|
$ 507,282
|
52 %
|
$ 355,559
|
71 %
|
|
$
1,019,217
|
53 %
|
$ 666,653
|
70 %
|
Firm-fixed-price
|
|
438,684
|
45 %
|
128,348
|
26 %
|
|
834,891
|
44 %
|
256,352
|
27 %
|
Time-and-materials
|
|
31,886
|
3 %
|
14,159
|
3 %
|
|
67,204
|
3 %
|
31,532
|
3 %
|
Total
revenue
|
|
$ 977,852
|
|
$ 498,066
|
|
|
$
1,921,312
|
|
$ 954,537
|
|
|
Revenue by
Contract Relationship
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
June 30,
|
|
July 1,
|
|
|
June 30,
|
|
July 1,
|
|
(In
thousands)
|
|
2023
|
%
|
2022
|
%
|
|
2023
|
%
|
2022
|
%
|
Prime
contractor
|
|
$ 916,060
|
94 %
|
$ 468,453
|
94 %
|
|
$
1,795,239
|
93 %
|
$ 895,546
|
94 %
|
Subcontractor
|
|
61,792
|
6 %
|
29,613
|
6 %
|
|
126,073
|
7 %
|
58,991
|
6 %
|
Total
revenue
|
|
$ 977,852
|
|
$ 498,066
|
|
|
$
1,921,312
|
|
$ 954,537
|
|
|
Revenue by
Geographic Region
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
June 30,
|
|
July 1,
|
|
|
June 30,
|
|
July 1,
|
|
(In
thousands)
|
|
2023
|
%
|
2022
|
%
|
|
2023
|
%
|
2022
|
%
|
United
States
|
|
$ 578,514
|
59 %
|
$ 158,719
|
32 %
|
|
$
1,127,284
|
59 %
|
$ 325,454
|
34 %
|
Middle East
|
|
279,083
|
28 %
|
250,222
|
50 %
|
|
560,204
|
29 %
|
485,313
|
51 %
|
Asia
|
|
65,533
|
7 %
|
46,386
|
9 %
|
|
129,850
|
7 %
|
62,592
|
7 %
|
Europe
|
|
54,722
|
6 %
|
42,739
|
9 %
|
|
103,974
|
5 %
|
81,178
|
8 %
|
Total
revenue
|
|
$ 977,852
|
|
$ 498,066
|
|
|
$
1,921,312
|
|
$ 954,537
|
|
CONTACT:
V2X, Inc.
Mike Smith, CFA
719-637-5773
ir@gov2x.com
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SOURCE V2X, Inc.