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Vectrus Announces Fourth Quarter and Full-Year 2021 Results

 

Vectrus Announces Fourth Quarter and Full-Year 2021 Results

Research, News, and Market Data on Vectrus

 

- 2021 revenue +28% Y/Y to $1,784 million; Q4 revenue +18% Y/Y to $419.4 million
- 2021 Operating income of $62.0 million; Adjusted EBITDA margin¹ of 4.7%
- 2021 fully diluted EPS of $3.86; Q4 fully diluted EPS of $0.63
- 2021 Adjusted diluted EPS¹ of $4.77; Q4 Adjusted diluted EPS¹ of $0.90
- Strong 2021 operating cash flow generation of $61.3 million
- Backlog of $5.0 billion; Several new wins expand market diversity
- Separately announces Definitive Agreement to combine with Vertex
- Conference call changed to today, March 7th, 8:00 AM E.T.

COLORADO SPRINGS, Colo., March 7, 2022 /PRNewswire/ -- Vectrus, Inc. (NYSE:VEC) announced fourth quarter and full-year 2021 financial results.


"This year, Vectrus continued its strong momentum in the converged market, and our financial results for the fourth quarter and full-year 2021 underscore the successful execution of our growth strategy with year-on-year total and organic revenue growth of approximately 28% and 10%, respectively," said Chuck Prow, Chief Executive Officer of Vectrus. "Our team showcased its agility to meet the unique needs of our clients by successfully supporting several important missions, including Pacific Defender, a major contingency task order in INDOPACOM, supporting the Afghanistan refugee mission to support the Non-Combatant Evacuation Operation as well as supporting the Department of Defense with the establishment of a water supply system for military housing at Red Hill, Hawaii. Additionally, we demonstrated our ability to support operations of larger size and scope by phasing in all the CENTCOM task orders under the LOGCAP V Contract. These task orders provide substantial revenue visibility for the next several years."

"This year, we also won the five-year, $44 million AFCAP V Saudi Foreign Military Sales Task Order, our first win in the Kingdom of Saudi Arabia, to provide base operation support to the Air Force, and we finished the year by winning the Fort Benning Logistics Support task order, a five-year, $250 million award under the Enhanced Army Global Logistics Enterprise (EAGLE) IDIQ Contract. Fort Benning is one of the DoD's Power Projection Platforms, that supports the Army's ability to strategically deploy its high priority active and reserve component units. This award builds on our existing EAGLE task order to support the Logistics Readiness Center at Fort Bragg, another power projection platform, that has recently supported the deployment of troops to the European Area of Operation."

"Subsequent to the fourth quarter, Vectrus was selected to complete the final phases of application development for the 5G Naval Base Coronado Smart Warehouse. This effort is part of the DoD's $600 million 5G experimentation and testing initiative, originally awarded in 2020. Vectrus successfully demonstrated a Converged Environment solution, addressing NAVSUP operational challenges through the implementation of advanced technology applications. The Smart Warehouse is a continued demonstration of our Converged Environment portfolio of mission essential solutions, which integrate base operations support, supply chain and logistics, IT and network operations, engineering and digital integration, and security, to help increase efficiency, reduce costs, improve readiness and cybersecurity, and strengthen national security. We look forward to bringing next-generation efficiencies to the naval logistics operations."

Prow concluded, "All of these impressive accomplishments are a testament to our teams' 24/7 dedication to our clients and supporting their critical missions."

Fourth Quarter 2021 Results

"Our fourth quarter and full-year 2021 financial results demonstrate the resilience of our business model and commitment to maintaining a strong balance sheet," said Susan Lynch, Senior Vice President and Chief Financial Officer. "We are pleased to finish 2021 in a strong financial position, with organic revenue growth and significant cash generation, and we are excited to build on this momentum in 2022."

Fourth quarter revenue was $419 million up 18% year-on-year as compared to the same period last year. Revenue grew year-on-year as a result of the company's two acquisitions on December 31, 2020. Organic revenue grew by $3.2 million, or 0.9%, reflecting the transition to LOGCAP V Kuwait and Iraq task orders and completion of certain programs, including the Afghanistan Evacuation Operation.

Operating income was $10.0 million or 2.4% margin. M&A and integration related expenses were $1.0 million and the amortization of acquired intangible assets were $2.5 million. Adjusted operating income1 was $13.6 million or 3.2% margin. EBITDA1 was $14.3 million, or 3.4% margin. Adjusted EBITDA1 was $15.3 million, with a margin of 3.6%, compared to $17.9 million and 5.0% in 2020. The year-on-year margin was impacted by the phase-in of new awards, program completions, contract mix and considerable material and pass through content which carries a lower margin.

Fully diluted EPS was $0.63, reflecting the above-mentioned M&A and integration-related costs. Adjusted diluted EPS1 for the fourth quarter was $0.90 as compared to $1.25 in 2020. Adjusted diluted EPS1 was impacted by lower margins in the quarter, higher interest expense due to the company's two acquisitions in December 2020 and higher depreciation expense.

Full-Year 2021 Results

Full-year revenue was $1.784 billion, up 28% year-on-year.  Organic revenue increased 10% in 2021, driven by new contract wins, base expansion, and phase-ins. The Company reported operating income of $62.0 million, with an operating margin of 3.5%,  Adjusted operating income1 was $76.6 million, with a 4.3% margin, which is an improvement from $52.2 million and 3.7% from the prior year. The increase in operating income resulted from the acquisitions of Zenetex and HHB and improved program performance throughout the year.

Full-year EBITDA1 was $78.6 million and a margin of 4.4%.  Adjusted EBITDA1 was $83.1 million with a 4.7% margin.

Full-year diluted EPS was $3.86, favorably impacted by the recognition of tax credits from prior years. Adjusted diluted EPS1 for 2021 was $4.77, as compared to $3.36 in 2020.

Cash provided by operating activities for the year were $61.3 million, compared to $64.1 million in 2020. Cash flow in the prior year benefitted from the CARES Act by $13.2 million. Lynch continued, "our strong cash generation is due to efficient collections and working capital management on programs. Excluding the prior year benefit of the CARES Act payroll tax deferrals, year-to-date cash flow from operations improved 20% over last year."

During the year, Vectrus lowered its debt balance by $73.6 million resulting in an ending balance of $105.4 million.  Cash at year-end was $38.5 million down from $66.9 million.  Total liquidity as of December 31, 2021, was more than $200 million. Total consolidated indebtedness to consolidated EBITDA1 (total leverage ratio) was 1.20x.

Total backlog as of December 31, 2021 was $5 billion and funded backlog was $1 billion. The trailing twelve-month book-to-bill was 1.0x.

2022 Guidance

Guidance for 2022 is as follows:

$ millions, except for EBITDA margins and per share amounts

2022 Guidance

2022 Mid-Point

Revenue

$1,820

to

$1,860

$1,840

Operating Income Margin

3.4  %

to

3.6  %

3.5  %

Adjusted EBITDA Margin1

4.5  %

to

4.7  %

4.6  %

Earnings Per Share

$3.72

to

$4.08

$3.90

Adjusted Diluted Earnings Per Share1

$4.57

to

$4.93

$4.74

Net Cash Provided by Operating Activities

$50.0

to

$53.5

$51.75

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. 

Vertex Transaction and Conference Call Information

In a separate press release issued today, Vectrus announced that it has entered into an all-stock merger transaction with The Vertex Company to create a leading global provider of mission-essential solutions. The merger is expected to close in the third quarter of 2022, subject to satisfaction of customary closing conditions, including receipt of regulatory and Vectrus shareholder approvals.

As a result of this announcement, management will conduct a conference call with analysts and investors at 8:00 a.m. ET on Monday, March 7, 2022. U.S.-based participants may dial in to the conference call at 877-407-0792, while international participants may dial 201-689-8263. A live webcast of the conference call as well as an accompanying slide presentation will be available on the Vectrus Investor Relations website at http://investors.vectrus.com or https://www.webcaster4.com/Webcast/Page/1431/44827.

A replay of the conference call will be posted on the Vectrus website shortly after completion of the call and will be available for one year. A telephonic replay will also be available through March 21, 2022, at 844-512-2921 (domestic) or 412-317-6671 (international) with passcode 13727760. 

Footnotes:
1 See "Key Performance Indicators and Non-GAAP Financial Measures" for reconciliation.

About Vectrus

For more than 70 years, Vectrus has provided critical mission support for our customers' toughest operational challenges. As a high-performing organization with exceptional talent, deep domain knowledge, a history of long-term customer relationships, and groundbreaking technical expertise, we deliver innovative, mission-matched solutions for our military and government customers worldwide. Whether it's base operations support, supply chain and logistics, IT mission support, engineering and digital integration, security, or maintenance, repair and overhaul, our customers count on us for on-target solutions that increase efficiency, reduce costs, improve readiness, and strengthen national security. Vectrus is headquartered in Colorado Springs, Colo., and includes about 8,100 employees spanning 205 locations in 28 countries. In 2021, Vectrus generated sales of $1.8 billion. For more information, visit the company's website at www.vectrus.com or connect with Vectrus on Facebook, Twitter, and LinkedIn.

FORWARD-LOOKING STATEMENTS

Certain material presented in this press release 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, Vectrus may be unable to obtain shareholder approval as required for the Transaction; conditions to the closing of the Transaction may not be satisfied; the possibility that anticipated benefits of the Transaction may not be realized or may take longer to realize than expected; the possibility that costs related to Vectrus's integration of Vertex's operations may be greater than expected and/or that revenues following the Transaction may be lower than expected; Vectrus's business may suffer as a result of uncertainty surrounding the Transaction and disruption of management's attention due to the Transaction; the outcome of any legal proceedings that arise that are related to the Transaction; Vectrus may be adversely affected by other economic, business, and/or competitive factors; the risk that Vectrus may be unable to obtain governmental and regulatory approvals required for the Transaction, or that required governmental and regulatory approvals may delay the Transaction or result in the imposition of conditions that could reduce the anticipated benefits from the Transaction or cause the parties to abandon the Transaction; the impact of legislative, regulatory, competitive and technological changes; the occurrence of any event, change or other circumstances that could give rise to the termination of the merger agreement; the effect of the Transaction on the ability of Vectrus to retain and maintain relationships with both Vectrus's and Vertex's customers, including the U.S. Government; other risks to the consummation of the merger, including the risk that the merger will not be consummated within the expected time period or at all; responses from customers and competitors to the Transaction; the risk that the integration of Vertex may distract management from other important matters; results from the Transaction may be different than those anticipated; statements about Vectrus's 2022 performance outlook, five-year growth plan, revenue, DSO, contract opportunities, the impacts of COVID-19, and any discussion of future operating or financial performance.

Whenever used, words such as "may," "are considering," "will," "likely," "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," "target," "could," "potential," "continue," "goal" or similar terminology are forward-looking statements. These statements are based on the beliefs and assumptions of our management 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. For a discussion of some of the risks and important factors 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 U.S. Securities and Exchange Commission.

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.

Additional Information and Where to Find It

In connection with the Transaction, Vectrus plans to file with the SEC and mail or otherwise provide to its shareholders a proxy statement/prospectus regarding the Transaction. BEFORE MAKING ANY VOTING DECISION, VECTRUS'S SHAREHOLDERS ARE URGED TO READ THE PROXY STATEMENT/PROSPECTUS IN ITS ENTIRETY WHEN IT BECOMES AVAILABLE AND ANY OTHER DOCUMENTS FILED BY VECTRUS WITH THE SEC IN CONNECTION WITH THE PROPOSED TRANSACTION OR INCORPORATED BY REFERENCE THEREIN BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION AND THE PARTIES TO THE PROPOSED TRANSACTION. Investors and shareholders will be able to obtain a free copy of the proxy and other documents containing important information about Vectrus and Vertex, once such documents are filed with the SEC, through the website maintained by the SEC at www.sec.gov. Vectrus makes available free of charge at www.vectrus.com (in the "Investors" section), copies of materials it files with, or furnishes to, the SEC.

Participants in Solicitation

Vectrus, its directors and certain of its respective executive officers may be considered participants in the solicitation of proxies in connection with the Transaction. Information about the directors and executive officers of Vectrus is set forth in Vectrus's Annual Report on Form 10-K for the fiscal year ended December 31, 2020, which was filed with the SEC on March 2, 2021, and its definitive proxy statement for the 2021 annual meeting of shareholders, which was filed with the SEC on March 23, 2021, certain of its Quarterly Reports on Form 10-Q and certain of its Current Reports filed on Form 8-K. To the extent the holdings of securities of Vectrus by Vectrus's directors and executive officers have changed since the amounts set forth in Vectrus's proxy statement for its 2021 annual meeting of shareholders, such changes have been or will be reflected on Statements of Change in Ownership on Form 4 filed with the SEC. Additional information regarding the interests of such individuals in the Transaction will be included in the proxy statement/prospectus relating to the Transaction when it is filed with the SEC. These documents can be obtained free of charge from the sources indicated above. Additional information regarding the participants in the proxy solicitations and a description of their direct and indirect interests, by security holdings or otherwise, may be obtained by reading the definitive proxy statement regarding the acquisition described above.

 

VECTRUS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME






Year Ended December 31,

(In thousands, except per share data)


2021


2020


2019

Revenue


$   1,783,665


$   1,395,529


$   1,382,525

Cost of revenue


1,623,245


1,271,375


1,254,560

Selling, general, and administrative expenses


98,400


80,679


78,316

Operating income


62,020


43,475


49,649

Interest expense, net


(7,985)


(4,793)


(6,470)

Income from operations before income taxes


54,035


38,682


43,179

Income tax expense


8,307


1,731


10,003

Net income


$        45,728


$        36,951


$        33,176








Earnings per share







Basic


$           3.91


$            3.19


$            2.90

Diluted


$           3.86


$            3.14


$            2.86

Weighted average common shares outstanding - basic


11,705


11,599


11,444

Weighted average common shares outstanding - diluted


11,836


11,751


11,612

 

VECTRUS, INC. 

CONSOLIDATED BALANCE SHEETS






December 31,

(In thousands, except per share data)


2021


2020

Assets





Current assets





Cash and cash equivalents


$           38,513


$           66,949

Restricted cash



1,778

Receivables


348,605


314,959

Prepaid expenses


21,160


16,083

Other current assets


15,062


8,619

Total current assets


423,340


408,388

Property, plant, and equipment, net


23,758


22,573

Goodwill


321,734


339,702

Intangible assets, net


66,582


48,105

Right-of-use assets


43,651


18,718

Other non-current assets


10,394


6,325

Total non-current assets


466,119


435,423

Total Assets


$         889,459


$         843,811

Liabilities and Shareholders' Equity





Current liabilities





Accounts payable


$         212,533


$         159,586

Compensation and other employee benefits


80,284


79,568

Short-term debt


10,400


8,600

Other accrued liabilities


55,031


40,657

Total current liabilities


358,248


288,411

Long-term debt, net


94,246


168,751

Deferred tax liability


32,214


39,386

Operating lease liability


34,536


13,970

Other non-current liabilities


20,128


28,355

 Total non-current liabilities


181,124


250,462

Total liabilities


539,272


538,873

Commitments and contingencies (Note 15)





 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; 11,738 and 11,625 shares issued and outstanding as of December 31, 2021 and 2020, respectively                                      


117


116

Additional paid in capital


88,116


82,823

Retained earnings


267,754


222,026

Accumulated other comprehensive loss


(5,900)


(27)

Total shareholders' equity


350,087


304,938

Total Liabilities and Shareholders' Equity


$         889,459


$         843,811

 

VECTRUS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS






Year Ended December 31,

(In thousands)


2021


2020


2019

Operating activities







Net income


$

45,728



$

36,951



$

33,176


Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation expense


6,526



4,097



3,379


Amortization of intangible assets


10,028



4,029



3,111


(Gain) loss on disposal of property, plant, and equipment


65



(14)



62


Stock-based compensation


8,331



9,445



8,262


Amortization of debt issuance costs


912



386



404


Changes in assets and liabilities:







Receivables


(36,376)



1,000



(21,053)


Prepaid expenses


(5,178)



(3,588)



(5,610)


Other assets


(7,667)



(3,644)



7,147


Accounts payable


56,985



(2,680)



(11,733)


Deferred taxes


(7,280)



(10,665)



(7,173)


Compensation and other employee benefits


1,133



12,004



9,652


Other liabilities


(11,868)



16,760



7,933


Net cash provided by operating activities


61,339



64,081



27,557


Investing activities







Purchases of capital assets and intangibles


(9,776)



(4,500)



(16,151)


Proceeds from the disposition of assets


16



84



5,400


Acquisition of business, net of cash acquired


262



(133,609)



(45,074)


Contribution to joint venture


(3,145)






Net cash (used in) investing activities


(12,643)



(138,025)



(55,825)


Financing activities







Repayments of long-term debt


(8,600)



(6,500)



(4,500)


Proceeds from revolver


529,000



314,000



333,500


Repayments of revolver


(594,000)



(199,000)



(333,500)


Proceeds from exercise of stock options


379



59



3,672


Payment of debt issuance costs


(17)



(830)




Payments of employee withholding taxes on share-based compensation


(2,347)



(1,955)



(1,068)


Net cash provided by (used in) financing activities


(75,585)



105,774



(1,896)


Exchange rate effect on cash


(3,325)



1,579



(663)


Net change in cash, cash equivalents and restricted cash


(30,214)



33,409



(30,827)


Cash, cash equivalents and restricted cash - beginning of year


68,727



35,318



66,145


Cash, cash equivalents and restricted cash - end of year


$

38,513



$

68,727



$

35,318


Supplemental Disclosure of Cash Flow Information:







Interest paid


$

5,801



$

3,717



$

6,229


Income taxes paid


$

9,703



$

14,520



$

4,511


Purchase of capital assets on account


$

277



$

2,226



$

556


Non-GAAP Measures

This press release includes certain non-GAAP financial measures, including EBITDA and Pro forma Adjusted EBITDA. These financial measures are not prepared in accordance with accounting principles generally accepted in the United States and may be different from non-GAAP financial measures used by other companies. Vertex and Vectrus believe that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends. These non-GAAP measures with comparable names should not be considered in isolation from, or as an alternative to, financial measures determined in accordance with GAAP.

 

Adjusted Net Income, Adjusted Diluted Earnings Per
Share (Non-GAAP Measures)









($K, except per share data)


Three Months Ended December 31, 2021


M&A,
Integration
and Related Costs


LOGCAP V
Pre-
Operational Legal Costs


Amortization of Acquired  Intangible Assets


Prior Years' Tax Credits


Three Months Ended December 31, 2021 - Adjusted














Revenue


$       419,409


$                      —


$                     —


$                     —


$                     —


$       419,409

Growth


18.0%










18.0%

Operating income


$         10,017


$                1,039


$                       4


$               2,507


$                     —


$         13,567

Operating margin


2.4%










3.2%














Interest expense, net


$          (1,845)


$                      —


$                     —


$                     —


$                     —


$          (1,845)














Income from operations before income taxes


$            8,172


$                1,039


$                       4


$               2,507


$                     —


$         11,722














Income tax expense


$               685


$                     87


$                     —


$                  210




$              982

Income tax rate


8.4%










8.4%














Net income


$            7,487


$                   952


$                       4


$               2,297


$                     —


$         10,740














Weighted average common shares outstanding, diluted


11,880










11,880














Diluted earnings per share


$              0.63


$                  0.08


$                     —


$                 0.19


$                     —


$             0.90














EBITDA (Non-GAAP Measures)













($K)


Three Months Ended December 31, 2021


M&A,
Integration
and Related Costs


LOGCAP V
Pre-
Operational Legal Costs


Amortization
of Acquired  Intangible Assets


Prior Years' Tax Credits


Three Months Ended December 31, 2021 - Adjusted

Operating Income


$         10,017


$                1,039


$                       4


$               2,507


$                     —


$         13,567














Add:













Depreciation and amortization


$            4,245


$                      —


$                     —


$            (2,507)


$                     —


$           1,738














EBITDA


$         14,262


$                1,039


$                       4


$                     —


$                     —


$         15,305

EBITDA Margin


3.4%










3.6%

 

Adjusted Net Income, Adjusted Diluted Earnings Per
Share (Non-GAAP Measures)









($K, except per share data)


Three Months Ended December 31, 2020


M&A,
Integration
and Related Costs


LOGCAP V
Pre-
Operational Legal Costs


Amortization of Acquired  Intangible Assets


Prior Years' Tax Credits


Three Months Ended December 31, 2020 - Adjusted














Revenue


$       355,317


$                     —


$                     —


$                     —


$                     —


$       355,317














Operating income


$         13,725


$               1,960


$                   120


$                   998


$                     —


$         16,803

Operating margin


3.9%










4.7%














Interest expense, net


$              (806)


$                     —


$                     —


$                     —


$                     —


$             (806)














Income from operations before income taxes


$         12,919


$               1,960


$                   120


$                   998


$                     —


$         15,997














Income tax expense


$          (3,862)


$                   451


$                     28


$                   169


$               4,505


$           1,291

Income tax rate


(29.9)%










8.1%














Net income


$         16,781


$               1,509


$                     92


$                   829


$            (4,505)


$         14,706














Weighted average common shares outstanding, diluted


11,782










11,782














Diluted earnings per share


$              1.42


$                 0.13


$                 0.01


$                 0.07


$              (0.38)


$              1.25














EBITDA (Non-GAAP Measures)













($K)


Three Months Ended December 31, 2020


M&A,
Integration
and Related Costs


LOGCAP V
Pre-
Operational Legal Costs


Amortization of Acquired  Intangible Assets


Prior Years' Tax Credits


Three Months Ended December 31, 2020 - Adjusted

Operating Income


$         13,725


$               1,960


$                   120


$                   998


$                     —


$         16,803














Add:













Depreciation and amortization


$            2,094


$                     —


$                     —


$               (998)


$                     —


$           1,096














EBITDA


$         15,819


$               1,960


$                   120


$                     —


$                     —


$         17,899

EBITDA Margin


4.5%










5.0%

 

Adjusted Net Income, Adjusted Diluted Earnings Per Share (Non-
GAAP Measures)







($K, except per share data)


Twelve Months
Ended December 31, 2021


M&A,
Integration
and Related Costs


LOGCAP V
Pre-
Operational Legal Costs


Amortization of Acquired  Intangible Assets


Prior Years' Tax Credits


Twelve Months
Ended December 31, 2021 - Adjusted














Revenue


$    1,783,665


$                     —


$                     —


$                     —


$                     —


$    1,783,665

Growth


27.8%










27.8%

Operating income


$         62,020


$               4,323


$                   192


$             10,028


$                     —


$         76,563

Operating margin


3.5%










4.3%














Interest expense, net


$          (7,985)


$                     —


$                     —


$                     —


$                     —


$          (7,985)














Income from operations before income taxes


$         54,035


$               4,323


$                   192


$             10,028


$                     —


$         68,578














Income tax expense


$            8,307


$                   665


$                     30


$               1,542


$               1,524


$         12,068

Income tax rate


15.4%










17.6%














Net income


$         45,728


$               3,658


$                   162


$               8,486


$            (1,524)


$         56,510














Weighted average common shares outstanding, diluted


11,836










11,836














Diluted earnings per share


$              3.86


$                 0.31


$                 0.01


$                 0.72


$              (0.13)


$              4.77














EBITDA (Non-GAAP Measures)













($K)


Twelve Months
Ended December 31, 2021


M&A,
Integration
and Related Costs


LOGCAP V
Pre-
Operational Legal Costs


Amortization of Acquired  Intangible Assets


Prior Years' Tax Credits


Twelve Months
Ended December 31, 2021 - Adjusted

Operating Income


$         62,020


$               4,323


$                   192


$             10,028


$                     —


$         76,563














Add:













Depreciation and amortization


$         16,554


$                     —


$                     —


$          (10,028)


$                     —


$           6,526














EBITDA


$         78,574


$               4,323


$                   192


$                     —


$                     —


$         83,089

EBITDA Margin


4.4%










4.7%

 

Adjusted Net Income, Adjusted Diluted Earnings Per Share (Non-
GAAP Measures)







($K, except per share data)


Twelve Months
Ended December 31, 2020


M&A,
Integration
and Related Costs


LOGCAP V
Pre-
Operational Legal Costs


Amortization of Acquired  Intangible Assets


Prior Years' Tax Credits


Twelve Months
Ended December 31, 2020 - Adjusted














Revenue


$    1,395,529


$                     —


$                     —


$                     —


$                     —


$    1,395,529














Operating income


$         43,475


$               4,367


$                   345


$               4,029


$                     —


$         52,216

Operating margin


3.1%










3.7%














Interest expense, net


$          (4,793)


$                     —


$                     —


$                     —


$                     —


$          (4,793)














Income from operations before income taxes


$         38,682


$               4,367


$                   345


$               4,029


$                     —


$         47,423














Income tax expense


$            1,731


$               1,004


$                     76


$                   681


$               4,505


$           7,997

Income tax rate


4.5%










16.9%














Net income


$         36,951


$               3,363


$                   269


$               3,348


$            (4,505)


$         39,426














Weighted average common shares outstanding, diluted


11,751










11,751














Diluted earnings per share


$              3.14


$                 0.29


$                 0.02


$                 0.28


$              (0.38)


$              3.36














EBITDA (Non-GAAP Measures)













($K)


Twelve Months
Ended December 31, 2020


M&A,
Integration
and Related Costs


LOGCAP V
Pre-
Operational Legal Costs


Amortization of Acquired  Intangible Assets


Prior Years' Tax Credits


Twelve Months
Ended December 31, 2020 - Adjusted

Operating Income


$         43,475


$               4,367


$                   345


$               4,029


$                     —


$         52,216














Add:













Depreciation and amortization


$            8,126


$                     —


$                     —


$              (4,029)


$                     —


$           4,097














EBITDA


$         51,601


$               4,367


$                   345


$                     —


$                     —


$         56,313

EBITDA Margin


3.7%










4.0%

 



Three Months Ended


Three Months Ended


Three Months Ended



December 31, 2021


December 31, 2021


December 31, 2021

($K)


 As Reported


Zenetex & HHB


Organic








Revenue


$                   419,409


$                     60,880


$                        358,529










Three Months Ended


Three Months Ended


Three Months Ended



December 31, 2020


December 31, 2020


December 31, 2020

($K)


As Reported


Zenetex & HHB


Organic








Revenue


$                   355,317


$                            —


$                        355,317








Organic Revenue $






$                            3,212

Organic Revenue %






0.9%










Twelve Months Ended


Twelve Months Ended


Twelve Months Ended



December 31, 2021


December 31, 2021


December 31, 2021

($K)


As Reported


Zenetex & HHB


Organic








Revenue


$                1,783,665


$                   255,340


$                     1,528,325










Twelve Months Ended


Twelve Months Ended


Twelve Months Ended



December 31, 2020


December 31, 2020


December 31, 2020

($K)


As Reported


Zenetex & HHB


Organic








Revenue


$                1,395,529


$                            —


$                     1,395,529








Organic Revenue $






$                        132,796

Organic Revenue %






9.5%

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)

2021


%


2020


%


2019


%

Army

$      1,134,849


64%


$         965,558


69%


$      958,582


69%

Air Force

266,291


15%


299,272


21%


306,767


22%

Navy

224,407


13%


68,748


5%


56,236


4%

Other

158,118


8%


61,951


5%


60,940


5%

Total revenue

$      1,783,665




$      1,395,529




$      1,382,525















Revenue by Contract Type













Year Ended December 31,

(In thousands)

2021


%


2020


%


2019


%

Cost-plus and cost-reimbursable

$      1,271,167


71%


$         955,506


68%


$      1,015,963


73%

Firm-fixed-price

452,112


25%


403,994


29%


334,510


24%

Time and material

$           60,386


4%


$           36,029


3%


$           32,052


3%

Total revenue

$      1,783,665




$      1,395,529




$      1,382,525















Revenue by Contract Relationship













Year Ended December 31,

(In thousands)

2021


%


2020


%


2019


%

Prime contractor

$      1,663,828


93%


$      1,324,628


95%


$      1,312,928


95%

Subcontractor

119,837


7%


70,901


5%


69,597


5%

Total revenue

$      1,783,665




$      1,395,529




$      1,382,525















Revenue by Geographic Region













Year Ended December 31,

(In thousands)

2021


%


2020


%


2019


%

Middle East

$      1,000,877


57%


$         902,162


65%


$         939,685


68%

United States

578,255


32%


328,214


24%


301,991


22%

Europe

142,606


8%


155,169


10%


137,915


10%

Asia

61,927


3%


9,984


1%


2,934


—%

Total revenue

$      1,783,665




$      1,395,529




$      1,382,525



 

CONTACT:

Vectrus
Mike Smith, CFA
719-637-5773
michael.smith@vectrus.com


SOURCE Vectrus, Inc.


Company Ticker Price Previous Mkt Cap Volume 52wk Range
Vectrus Inc.
VEC (NYSE)
$37.99
$37.12 (+2.34%)
$448.47M
0
$33.65 - $55.38
Fundamental Analysis
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