V2X Reports Strong Third Quarter Results with Record Revenue, Net Income, and Adjusted EBITDA
V2X (NYSE:VVX) reported strong Q3 2024 results with record revenue of $1.08 billion, up 8% year-over-year. The company achieved significant growth in the Indo-Pacific region (31% y/y) and Middle East (13% y/y). Notable financial highlights include record net income of $15.1 million, up $21.5 million y/y, and record adjusted EBITDA of $82.7 million, up 28% y/y with a 7.6% margin. The company secured approximately $5 billion in new awards, including a significant $3.7 billion Warfighter-Training Readiness Solutions contract. Based on strong performance, V2X updated its 2024 guidance, raising revenue expectations to $4,225-$4,275 million.
V2X (NYSE:VVX) ha riportato risultati decisamente positivi per il terzo trimestre del 2024, con ricavi record di 1,08 miliardi di dollari, in crescita dell'8% rispetto all'anno precedente. L'azienda ha registrato una crescita significativa nella regione indo-pacifica (31% anno su anno) e nel Medio Oriente (13% anno su anno). Tra i principali risultati finanziari, spiccano un utile netto record di 15,1 milioni di dollari, con un incremento di 21,5 milioni di dollari rispetto all'anno passato, e un EBITDA rettificato record di 82,7 milioni di dollari, in aumento del 28% anno su anno, con un margine del 7,6%. L'azienda ha ottenuto circa 5 miliardi di dollari in nuovi contratti, inclusi un significativo contratto per soluzioni di prontezza al combattimento per 3,7 miliardi di dollari. Basandosi su queste performance robusti, V2X ha aggiornato le proprie previsioni per il 2024, aumentando le aspettative sui ricavi a 4.225-4.275 milioni di dollari.
V2X (NYSE:VVX) reportó resultados sólidos en el tercer trimestre de 2024, con ingresos récord de 1.08 mil millones de dólares, un aumento del 8% en comparación con el año anterior. La empresa logró un crecimiento significativo en la región indo-pacífica (31% interanual) y en el Medio Oriente (13% interanual). Los aspectos financieros destacables incluyen un ingreso neto récord de 15.1 millones de dólares, un aumento de 21.5 millones de dólares en comparación con el año anterior, y un EBITDA ajustado récord de 82.7 millones de dólares, un aumento del 28% interanual con un margen del 7.6%. La compañía aseguró aproximadamente 5 mil millones de dólares en nuevos contratos, incluido un importante contrato de soluciones de preparación para combatientes de 3.7 mil millones de dólares. Basándose en este sólido desempeño, V2X actualizó sus proyecciones para 2024, elevando las expectativas de ingresos a 4,225-4,275 millones de dólares.
V2X (NYSE:VVX)는 2024년 3분기 강력한 실적을 보고하며 10억 8천만 달러의 역대 수익을 기록하며 전년 대비 8% 증가했다고 발표했습니다. 이 회사는 인도-태평양 지역에서 31%의 큰 성장과 중동에서 13%의 성장을 달성했습니다. 주요 재무 하이라이트로는 1,510만 달러의 역대 순소득이 있으며, 이는 전년 대비 2,150만 달러 증가한 수치이고, 8,270만 달러의 조정 EBITDA는 전년 대비 28% 증가하여 7.6%의 마진을 기록했습니다. 이 회사는 약 50억 달러의 신규 수주를 확보했으며, 그 중 37억 달러 규모의 전투 대원 훈련 준비 솔루션 계약이 포함되어 있습니다. 강력한 실적을 바탕으로 V2X는 2024년 가이던스를 업데이트하여 수익 예상치를 42억 2,500만~42억 7,500만 달러로 상향 조정했습니다.
V2X (NYSE:VVX) a annoncé de solides résultats pour le troisième trimestre 2024, avec un chiffre d'affaires record de 1,08 milliard de dollars, en hausse de 8 % par rapport à l'année précédente. L'entreprise a connu une croissance significative dans la région indo-pacifique (31 % en glissement annuel) et au Moyen-Orient (13 % en glissement annuel). Les faits marquants financiers incluent un revenu net record de 15,1 millions de dollars, en hausse de 21,5 millions de dollars par rapport à l'année précédente, et un EBITDA ajusté record de 82,7 millions de dollars, en hausse de 28 % par rapport à l'année précédente avec une marge de 7,6 %. L'entreprise a obtenu environ 5 milliards de dollars de nouveaux contrats, y compris un contrat important de solutions de préparation des combattants d'une valeur de 3,7 milliards de dollars. Sur la base de ces solides performances, V2X a mis à jour ses prévisions pour 2024, augmentant les attentes de revenus à 4,225-4,275 millions de dollars.
V2X (NYSE:VVX) hat im dritten Quartal 2024 starke Ergebnisse gemeldet, mit Revenues von 1,08 Milliarden Dollar, was einem Anstieg um 8% gegenüber dem Vorjahr entspricht. Das Unternehmen erzielte signifikantes Wachstum in der Indo-Pazifik-Region (31% im Jahresvergleich) und im Nahen Osten (13% im Jahresvergleich). Zu den bemerkenswerten finanziellen Höhepunkten gehören ein Rekord-Nettoeinkommen von 15,1 Millionen Dollar, was einen Anstieg um 21,5 Millionen Dollar im Jahresvergleich darstellt, und ein rekordverdächtiges bereinigtes EBITDA von 82,7 Millionen Dollar, was einem Anstieg um 28% im Jahresvergleich und einer Marge von 7,6% entspricht. Das Unternehmen sicherte sich neue Aufträge in Höhe von etwa 5 Milliarden Dollar, einschließlich eines signifikanten Vertrages über Lösungen zur Einsatzbereitschaft für Kampftruppen im Wert von 3,7 Milliarden Dollar. Basierend auf der starken Leistung hat V2X seine Prognose für 2024 aktualisiert und die Umsatzerwartungen auf 4.225-4.275 Millionen Dollar angehoben.
- Record revenue of $1.08 billion, up 8% year-over-year
- Record net income of $15.1 million, up $21.5 million y/y
- Adjusted EBITDA increased 28% y/y to $82.7 million
- Secured $5 billion in new awards, including $3.7 billion W-TRS contract
- Indo-Pacific revenue growth of 31% y/y
- Adjusted diluted EPS increased 77% y/y to $1.29
- Net leverage ratio improved 0.29x sequentially to 3.27x
- Net debt remains high at $1,089 million
- Year-to-date adjusted net cash shows usage of $7.2 million
Insights
A stellar quarter showcasing robust financial performance across key metrics. Revenue of
The record adjusted EBITDA of
The reduction in net leverage ratio to 3.27x shows progress in debt management, though still above the year-end target of 3.0x. The raised guidance indicates management's confidence in sustained momentum.
The
Strong growth in Indo-Pacific (
Third Quarter Highlights
- Record revenue of
, up$1.08 billion 8% y/y - Indo-Pacific revenue growth of
31% y/y driven by increased demand - Operating income of
; Adjusted operating income1 of$49.9 million $76.9 million - Record net income of
, up$15.1 million y/y; Adjusted net income1 of$21.5 million , up$41.3 million 76% y/y - Record adjusted EBITDA1 of
, up$82.7 million 28% y/y with a margin of7.6% - Diluted EPS of
; Adjusted diluted EPS1 of$0.47 , up$1.29 77% y/y
2024 Guidance:
- Raising full-year revenue and adjusted EPS1 guidance midpoint and reaffirming adjusted EBITDA and operating cash flow1
"V2X reported strong third quarter results with record revenue, net income, and adjusted EBITDA1, driven by our continued alignment to well-funded critical missions and the ability to deliver capabilities at scale across the globe," said Jeremy Wensinger, President and Chief Executive Officer of V2X. "Revenue increased
Mr. Wensinger continued, "During the third quarter we demonstrated continued growth in the Indo-Pacific region with revenue increasing
"Our full spectrum capabilities across the mission lifecycle serve as a differentiator. The fact that we are with our customers across the globe at every phase of mission execution, gives us prodigious knowledge, allowing us to deliver best of breed cost effective solutions that are enhancing outcomes. This unique position is yielding results with V2X securing approximately
Mr. Wensinger concluded, "I believe there is additional opportunity to build on our momentum through further optimization of our business. This includes enhancing the breadth and depth of our pipeline as a result of the collective capabilities. W-TRS is a great example of a solution that leveraged the collective capabilities. We are building on that success to expand our addressable markets in all areas of the company. We are investing in this expanded pipeline to ensure we address opportunities with talent and solutions that will differentiate V2X offerings."
Third Quarter 2024 Results
"V2X reported record revenue of
"For the quarter, the Company reported operating income of
"Third quarter net cash provided by operating activities was
"At the end of the quarter, net debt for V2X was
"Total backlog as of September 27, 2024, was
2024 Guidance
Mr. Mural concluded, "Given our strong performance through the first nine-months of the year we are updating our total year guidance."
Guidance for 2024 is as follows:
$ millions, except for per share amounts | Prior 2024 Guidance | Updated 2024 Guidance | ||
Revenue | ||||
Adjusted EBITDA1 | ||||
Adjusted Diluted Earnings Per Share1 | ||||
Adjusted Net Cash Provided by Operating Activities1 |
The Company is not providing a quantitative reconciliation with respect to the foregoing forward-looking non-GAAP measures 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.
Third Quarter Conference Call
Management will conduct a conference call with analysts and investors at 4:30 p.m. ET on Monday, November 4, 2024.
A replay of the conference call will be posted on the V2X website shortly after completion of the call and will be available for one year. A telephonic replay will also be available through November 18, 2024, at 844-512-2921 (domestic) or 412-317-6671 (international) with passcode 10193464.
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
Footnotes:
1 See "Key Performance Indicators and Non-GAAP Financial Measures" for descriptions and reconciliations.
About V2X
V2X builds innovative solutions that integrate physical and digital environments by aligning people, actions, and technology. V2X is embedded in all elements of a critical mission's lifecycle to enhance readiness, optimize resource management, and boost security. The company provides innovation spanning national security, defense, civilian, and international markets. With a global team of approximately 16,000 professionals, V2X enables mission success by injecting AI and machine learning capabilities to meet today's toughest challenges across all operational domains.
Investor Contact | Media Contact | ||||
Mike Smith, CFA | Angelica Spanos Deoudes | ||||
719-637-5773 | 571-338-5195 |
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. Forward-looking statements in this press release, include, but are not limited to our discussion regarding the Army and its capabilities; our future performance and capabilities; investing in the expanded pipeline; future net leverage ratio; and our belief in our ability to achieve our updated total year guidance.
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 | Nine Months Ended | ||||||||||||||
September 27, | September 29, | September 27, | September 29, | ||||||||||||
(In thousands, except per share data) | 2024 | 2023 | 2024 | 2023 | |||||||||||
Revenue | $ 1,081,656 | $ 1,001,507 | $ 3,164,403 | $ 2,922,819 | |||||||||||
Cost of revenue | 990,220 | 930,828 | 2,928,858 | 2,685,910 | |||||||||||
Selling, general, and administrative expenses | 41,549 | 49,640 | 127,901 | 151,021 | |||||||||||
Operating income | 49,887 | 21,039 | 107,644 | 85,888 | |||||||||||
Loss on extinguishment of debt | — | — | (1,998) | (22,052) | |||||||||||
Interest expense, net | (27,152) | (30,252) | (83,533) | (93,946) | |||||||||||
Other expense, net | (3,198) | (2,024) | (9,566) | (2,335) | |||||||||||
Income (loss) from operations before income taxes | 19,537 | (11,237) | 12,547 | (32,445) | |||||||||||
Income tax expense (benefit) | 4,486 | (4,837) | 2,896 | (10,364) | |||||||||||
Net income (loss) | $ 15,051 | $ (6,400) | $ 9,651 | $ (22,081) | |||||||||||
Earnings (loss) per share | |||||||||||||||
Basic | $ 0.48 | $ (0.21) | $ 0.31 | $ (0.71) | |||||||||||
Diluted | $ 0.47 | $ (0.21) | $ 0.30 | $ (0.71) | |||||||||||
Weighted average common shares outstanding - basic | 31,550 | 31,179 | 31,458 | 31,048 | |||||||||||
Weighted average common shares outstanding - diluted | 31,973 | 31,179 | 31,921 | 31,048 | |||||||||||
V2X, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) | ||||
September 27, | December 31, | |||
(In thousands, except per share data) | 2024 | 2023 | ||
Assets | ||||
Current assets | ||||
Cash, cash equivalents and restricted cash | $ 59,857 | $ 72,651 | ||
Receivables | 766,399 | 705,995 | ||
Prepaid expenses and other current assets | 156,042 | 96,223 | ||
Total current assets | 982,298 | 874,869 | ||
Property, plant, and equipment, net | 65,746 | 85,429 | ||
Goodwill | 1,652,855 | 1,656,926 | ||
Intangible assets, net | 345,712 | 407,530 | ||
Right-of-use assets | 33,370 | 41,215 | ||
Other non-current assets | 46,124 | 15,931 | ||
Total non-current assets | 2,143,807 | 2,207,031 | ||
Total Assets | $ 3,126,105 | $ 3,081,900 | ||
Liabilities and Shareholders' Equity | ||||
Current liabilities | ||||
Accounts payable | $ 538,225 | $ 453,052 | ||
Compensation and other employee benefits | 115,569 | 158,088 | ||
Short-term debt | 16,878 | 15,361 | ||
Other accrued liabilities | 235,379 | 213,700 | ||
Total current liabilities | 906,051 | 840,201 | ||
Long-term debt, net | 1,096,865 | 1,100,269 | ||
Deferred tax liabilities | 12,313 | 11,763 | ||
Operating lease liabilities | 29,590 | 34,691 | ||
Other non-current liabilities | 78,725 | 104,176 | ||
Total non-current liabilities | 1,217,493 | 1,250,899 | ||
Total liabilities | 2,123,544 | 2,091,100 | ||
Commitments and contingencies (Note 7) | ||||
Shareholders' Equity | ||||
Preferred stock; | — | — | ||
Common stock; | 316 | 312 | ||
Additional paid in capital | 766,690 | 762,324 | ||
Retained earnings | 240,502 | 230,851 | ||
Accumulated other comprehensive loss | (4,947) | (2,687) | ||
Total shareholders' equity | 1,002,561 | 990,800 | ||
Total Liabilities and Shareholders' Equity | $ 3,126,105 | $ 3,081,900 |
V2X, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
| ||||
Nine Months Ended | ||||
September 27, | September 29, | |||
(In thousands) | 2024 | 2023 | ||
Operating activities | ||||
Net income (loss) | $ 9,651 | $ (22,081) | ||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||
Depreciation expense | 16,442 | 16,532 | ||
Amortization of intangible assets | 68,252 | 67,818 | ||
Amortization of cloud computing arrangements | 2,073 | 213 | ||
Impairment of non-operating long-lived asset | 2,192 | — | ||
Loss on disposal of property, plant, and equipment | 1,170 | 625 | ||
Stock-based compensation | 12,874 | 26,809 | ||
Deferred taxes | 72 | (9,887) | ||
Amortization of debt issuance costs | 5,717 | 6,875 | ||
Loss on extinguishment of debt | 1,998 | 22,052 | ||
Changes in assets and liabilities: | ||||
Receivables | (25,614) | 9,647 | ||
Other assets | (70,827) | 7,916 | ||
Accounts payable | 66,101 | 28,094 | ||
Compensation and other employee benefits | (42,417) | (28,620) | ||
Other liabilities | (16,581) | 9,182 | ||
Net cash provided by operating activities | 31,103 | 135,175 | ||
Investing activities | ||||
Purchases of capital assets | (10,700) | (16,559) | ||
Proceeds from the disposition of assets | 14 | 16 | ||
Acquisitions of businesses | (16,939) | — | ||
Distribution from joint venture | — | 834 | ||
Net cash used in investing activities | (27,625) | (15,709) | ||
Financing activities | ||||
Proceeds from issuance of long-term debt | — | 250,000 | ||
Repayments of long-term debt | (7,669) | (428,763) | ||
Proceeds from revolver | 1,009,250 | 719,750 | ||
Repayments of revolver | (1,009,250) | (669,750) | ||
Proceeds from stock awards and stock options | 154 | 7 | ||
Payment of debt issuance costs | (1,188) | (7,507) | ||
Prepayment premium on early redemption of debt | — | (1,600) | ||
Payments of employee withholding taxes on stock-based compensation | (8,036) | (17,871) | ||
Net cash used in financing activities | (16,739) | (155,734) | ||
Exchange rate effect on cash | 467 | (1,540) | ||
Net change in cash, cash equivalents and restricted cash | (12,794) | (37,808) | ||
Cash, cash equivalents and restricted cash - beginning of period | 72,651 | 116,067 | ||
Cash, cash equivalents and restricted cash - end of period | $ 59,857 | $ 78,259 | ||
Supplemental disclosure of cash flow information: | ||||
Interest paid | $ 74,774 | $ 89,635 | ||
Income taxes paid | $ 9,167 | $ 5,242 | ||
Purchase of capital assets on account | $ 90 | $ 2,882 |
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 | Nine Months Ended | |||||
September 27, 2024 | September 29, 2023 | September 27, 2024 | September 29, 2023 | ||||
Revenue | $ 1,081,656 | $ 1,001,507 | $ 3,164,403 | $ 2,922,819 | |||
Net income (loss) | $ 15,051 | $ (6,400) | $ 9,651 | $ (22,081) | |||
Plus: | |||||||
Income tax expense (benefit) | 4,486 | (4,837) | 2,896 | (10,364) | |||
Other expense, net | 3,198 | 2,024 | 9,566 | 2,335 | |||
Interest expense, net | 27,152 | 30,252 | 83,533 | 93,946 | |||
Loss on extinguishment of debt | — | — | 1,998 | 22,052 | |||
Operating income | $ 49,887 | $ 21,039 | $ 107,644 | $ 85,888 | |||
Plus: | |||||||
Amortization of intangible assets | 22,727 | 22,607 | 68,252 | 67,818 | |||
M&A, integration and related costs | 4,319 | 15,824 | 29,644 | 41,565 | |||
Adjusted operating income | $ 76,933 | $ 59,470 | $ 205,540 | $ 195,271 | |||
Plus: | |||||||
Depreciation and CCA amortization | 5,759 | 5,206 | 18,515 | 16,532 | |||
Adjusted EBITDA | $ 82,692 | $ 64,676 | $ 224,055 | $ 211,803 | |||
Adjusted EBITDA margin | 7.6 % | 6.5 % | 7.1 % | 7.2 % | |||
Minus: | |||||||
Cash interest expense, net | 25,598 | 28,069 | 77,816 | 87,071 | |||
Income tax expense, as adjusted | 6,887 | 5,937 | 24,187 | 26,329 | |||
Depreciation and CCA amortization | 5,759 | 5,206 | 18,515 | 16,532 | |||
Other expense, net, as adjusted | 3,198 | 2,024 | 7,373 | 2,335 | |||
Adjusted net income | $ 41,250 | $ 23,440 | $ 96,163 | $ 79,536 | |||
($K, except per share data) | Three Months Ended | Nine Months Ended | |||||
September 27, 2024 | September 29, 2023 | September 27, 2024 | September 29, 2023 | ||||
Diluted earnings (loss) per share | $ 0.47 | $ (0.21) | $ 0.30 | $ (0.71) | |||
Plus: | |||||||
M&A, integration and related costs | 0.14 | 0.37 | 0.75 | 0.97 | |||
Amortization of intangible assets | 0.63 | 0.52 | 1.72 | 1.58 | |||
Amortization of debt issuance costs and | 0.05 | 0.05 | 0.19 | 0.67 | |||
FMV land impairment | 0.00 | $ — | 0.06 | $ — | |||
Adjusted diluted earnings per share | $ 1.29 | $ 0.73 | $ 3.01 | $ 2.51 | |||
Average shares outstanding: | |||||||
Basic, as reported | 31,550 | 31,179 | 31,458 | 31,048 | |||
Diluted, as reported | 31,973 | 31,179 | 31,921 | 31,048 | |||
Adjusted diluted | 31,973 | 31,761 | 31,921 | 31,520 | |||
($K) | Three Months Ended | Nine Months Ended | |||||
September 27, 2024 | September 29, 2023 | September 27, 2024 | September 29, 2023 | ||||
Net cash provided by operating activities | 62,654 | 57,035 | 31,103 | 135,175 | |||
Plus: | |||||||
M&A, integration, CARES Act, and related payments | 13,009 | 11,854 | 25,044 | 34,248 | |||
MARPA facility activity | 54,471 | 27,168 | (63,348) | (85,832) | |||
Adjusted operating cash flow | 130,134 | 96,057 | (7,201) | 83,591 |
($K) | TTM |
September 27, 2024 | |
Net income (loss) | $ 9,159 |
Plus: | |
Interest expense, net | 112,030 |
Income tax expense | 11,315 |
Depreciation and amortization | 115,248 |
Additional permitted add-backs1 | 85,707 |
TTM Bank EBITDA | $ 333,458 |
($K, except ratio) | Period Ending |
September 27, 2024 | |
Total debt | $ 1,146,490 |
Cash, cash equivalents and restricted cash | $ 59,857 |
Less: | |
Restricted cash | (2,117) |
Cash and cash equivalents | $ 57,740 |
Net debt | $ 1,088,750 |
TTM bank EBITDA | $ 333,458 |
Net leverage ratio | 3.27x |
1Additional permitted add-backs includes among other items, non-cash losses like loss on extinguishment of debt and/or lease impairments, stock compensation, transaction and integration related costs, and pro forma cost savings. |
SUPPLEMENTAL INFORMATION
Revenue by client branch, contract type, contract relationship, and geographic region for the periods presented below was as follows:
Revenue by Client | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||
September 27, | September 29, | % | September 27, | September 29, | % | |||||||
(In thousands) | 2024 | 2023 | Change | 2024 | 2023 | Change | ||||||
Army | $ 455,877 | $ 412,841 | 10.4 % | $ 1,345,997 | $ 1,196,843 | 12.5 % | ||||||
Navy | 366,217 | 311,088 | 17.7 % | 1,037,425 | 896,976 | 15.7 % | ||||||
Air Force | 121,863 | 134,728 | (9.5) % | 367,899 | 418,710 | (12.1) % | ||||||
Other | 137,699 | 142,850 | (3.6) % | 413,082 | 410,290 | 0.7 % | ||||||
Total revenue | $ 1,081,656 | $ 1,001,507 | $ 3,164,403 | $ 2,922,819 | ||||||||
Revenue by Contract Type
| ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||
September 27, | September 29, | % | September 27, | September 29, | % | |||||||
(In thousands) | 2024 | 2023 | Change | 2024 | 2023 | Change | ||||||
Cost-plus and cost-reimbursable | $ 649,925 | $ 570,402 | 13.9 % | $ 1,850,584 | $ 1,589,619 | 16.4 % | ||||||
Firm-fixed-price | 403,132 | 402,219 | 0.2 % | 1,229,565 | 1,237,110 | (0.6) % | ||||||
Time-and-materials | 28,599 | 28,886 | (1.0) % | 84,254 | 96,090 | (12.3) % | ||||||
Total revenue | $ 1,081,656 | $ 1,001,507 | $ 3,164,403 | $ 2,922,819 | ||||||||
Revenue by Contract Relationship | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||
September 27, | September 29, | % | September 27, | September 29, | % | |||||||
(In thousands) | 2024 | 2023 | Change | 2024 | 2023 | Change | ||||||
Prime contractor | $ 1,021,497 | $ 945,669 | 8.0 % | $ 2,972,773 | $ 2,740,908 | 8.5 % | ||||||
Subcontractor | 60,159 | 55,838 | 7.7 % | 191,630 | 181,911 | 5.3 % | ||||||
Total revenue | $ 1,081,656 | $ 1,001,507 | $ 3,164,403 | $ 2,922,819 | ||||||||
Revenue by Geographic Region | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||
September 27, | September 29, | % | September 27, | September 29, | % | |||||||
(In thousands) | 2024 | 2023 | Change | 2024 | 2023 | Change | ||||||
$ 604,872 | $ 571,405 | 5.9 % | $ 1,728,480 | $ 1,698,689 | 1.8 % | |||||||
346,527 | 305,918 | 13.3 % | 1,050,888 | 866,122 | 21.3 % | |||||||
82,907 | 63,259 | 31.1 % | 236,371 | 193,109 | 22.4 % | |||||||
47,350 | 60,925 | (22.3) % | 148,664 | 164,899 | (9.8) % | |||||||
Total revenue | $ 1,081,656 | $ 1,001,507 | $ 3,164,403 | $ 2,922,819 |
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SOURCE V2X, Inc.
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