Vectrus Announces Second Quarter 2019 Results

COLORADO SPRINGS, Colo., Aug. 6, 2019 /PRNewswire/ -- Vectrus, Inc. VEC announced second quarter 2019 financial results for the quarter ended June 28, 2019.

Vectrus Logo.

"The second quarter demonstrated continued momentum in the market place and in the execution of our strategy," said Chuck Prow, president and chief executive officer. "Our growth-related efforts continue to be successful, as we significantly increased our revenue with the Navy and the Air Force, won new contracts, including our first contract with Department of State, expanded existing contracts, secured recompete business, and won a seat on the previously announced Army's LOGCAP V contract. Our momentum is underscored by our strong backlog, which including LOGCAP V, equates to 3.6 times our 2018 revenue. As a reminder, LOGCAP V is currently under protest and still anticipated to be resolved in mid-August. We continue to invest in all aspects of our business, including the acquisition of Advantor in the third quarter, which will enhance and expand our operational technology offerings. Notwithstanding our continuing growth and operational related investments, diluted EPS increased 6% sequentially on 20 BPS of EBITDA margin1 expansion."

Second Quarter 2019 Results

Second quarter 2019 adjusted results exclude M&A related costs and LOGCAP V pre-operational legal costs, which together totaled $1.2 million pretax.

Second quarter 2019 revenue of $331.6 million, increased $10.5 million or 3% compared to second quarter 2018. The increased revenue was attributable mainly to increases from Middle East and European programs.

Operating income was $11.2 million or 3.4% operating margin for the second quarter 2019, compared to $13.0 million or 4.0% in second quarter 2018. Adjusted operating income1 was $12.4 million or 3.8% margin for the second quarter 2019, compared to $13.5 million or 4.2% in second quarter 2018. EBITDA1 was $12.6 million or 3.8% margin for the second quarter 2019, compared to $13.8 million or 4.3% in second quarter 2018. Adjusted EBITDA1 was $13.9 million or 4.2% margin for the second quarter 2019, compared to $14.3 million or 4.5% in second quarter 2018.

Second quarter 2019 diluted EPS were $0.66 compared to $0.81 in second quarter 2018. Second quarter 2019 adjusted diluted EPS1 were $0.74 compared to $0.84 in second quarter 2018.

Net cash generated from operating activities for the quarter ended June 28, 2019 was $22 million, a $6.0 million improvement compared to second quarter 2018. Days sales outstanding (DSO) was 63 days in the second quarter of 2019.

Total debt at June 28, 2019 was $73.0 million, which was down $4.0 million from $77.0 million at June 29, 2018. Cash at quarter-end was $70.3 million. As of June 28, 2019, total consolidated indebtedness to consolidated EBITDA1 (total leverage ratio) was 1.17x to 1.00x.

Total backlog at June 28, 2019 was $3.2 billion and funded backlog was $934 million. Backlog including LOGCAP V is $4.6 billion.

"Vectrus' growth continued in the second quarter, and we recorded sequential expansion in revenue, EBITDA margin1 and earnings per share, keeping with the expected progression of our results through the year," said Bill Noon, acting chief financial officer of Vectrus. "Operating cash generation in the quarter was strong at $22 million, and we expect to generate over 100 percent cash conversion compared to net income for the year. Our balance sheet and financial flexibility remain strong to support our strategy. Given the impacts to our GAAP results from the M&A and LOGCAP V pre-operational legal costs we are incurring this year, we have opted to increase our use of adjusted non-GAAP measures that we believe better reflect our operational performance."

Adjusting 2019 Guidance

Mr. Prow continued, "To reflect 2019 new business and current contract expansion results to date, and the Advantor acquisition, we now expect to generate revenue growth of 7 to 9 percent in 2019, which is up from our prior guidance of 2 to 4 percent. Additionally, to support this, and anticipated future growth, we have pulled forward investments in our global operations. Our enterprise wide performance improvement initiative, Enterprise Vectrus, is streamlining and automating our core program and support processes, transforming our supply chain, and more effectively integrating and leveraging our global operations to generate better client outcomes; while improving margins over time.  Therefore, while we have increased our revenue range, we have lowered and tightened our diluted EPS range, due primarily to higher non-operational costs, while slightly increasing the midpoint of adjusted EBITDA margin1. These efforts are in service of fulfilling the opportunity we have to transform Vectrus into a larger scale, higher value, differentiated platform."

Mr. Prow concluded, "We continue to believe that based on our current new business awards, pipeline, and anticipated timing on LOGCAP V revenue, we are on track to achieve double digit revenue growth in 2020, and are making great strides in driving toward our goal of $2.5 billion in annual revenue and 7% in EBITDA margin by 2023. We want to thank our teams around the world who support our servicemen and women in their critical missions and are focused on advancing our capabilities and competitive profile to further differentiate the company as an innovator in the emerging converged infrastructure market."

Vectrus is presenting non-GAAP measures including adjusted operating income and margin1, adjusted EBITDA and margin1, adjusted net income1, and adjusted diluted earnings per share1 to measure performance. These non-GAAP measures remove the impact of expenses associated with M&A and LOGCAP V pre-operational legal costs and, in the Company's opinion, better reflect the underlying operations of the business.

Vectrus' updated 2019 guidance ranges are included in the table below and assume interest expense of $6.0 million, operational capital expenditures of approximately $10.0 million, depreciation and amortization expense of $7.1 million, mandatory debt payments of $4.5 million, a tax rate of 22 percent and weighted average diluted shares outstanding of 11.6 million at December 31, 2019.

Additionally, full-year GAAP estimates include M&A related costs of $2.6 million and LOGCAP V pre-operational costs of $1.1 million, which are excluded from adjusted EBITDA1, adjusted Net Income1, and adjusted diluted EPS1 measures.

In millions, except for operating margin, EBITDA margin, adjusted EBITDA margin, and per share amounts

Updated 2019

Guidance

Previous 2019

Guidance

Updated

2019 Mid

Previous

2019 Mid



Revenue

$1,370



to

$1,390



$1,300



to

$1,330



$1,380



$1,315



Operating Margin

3.5

%

to

3.7

%

3.8

%

to

4.2

%

3.6

%

4.0

%

Adjusted Operating Margin1

3.8

%

to

4.0

%



to



3.9

%



EBITDA Margin1

4.0

%

to

4.2

%

4.1

%

to

4.5

%

4.1

%

4.3

%

Adjusted EBITDA Margin1

4.3

%

to

4.5

%



to



4.4

%



Net Income

$32.7



to

$35.4



$35.3



to

$40.4



$34.1



$37.9



Diluted EPS 2

$2.82



to

$3.05



$3.07



to

$3.51



$2.94



$3.29



Adjusted Net Income1

$35.5



to

$38.2





to



$36.9





Adjusted Diluted EPS1,2

$3.06



to

$3.29





to



$3.18





Net Cash Provided by Operating Activities

$38.0



to

$42.0



$40.0



to

$46.0



$40.0



$43.0







The Company notes that forward-looking statements of future performance made in this release, including 2019 guidance, 2020 revenue growth, the LOGCAP V award and the five-year growth plan 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 2019 Conference Call

Management will conduct a conference call with analysts and investors at 4:30 p.m. ET on Tuesday, August 6, 2019. U.S.-based participants may dial in to the conference call at 877-407-0792, while international participants may dial 201-689-8263. For all other listeners, a live webcast of the conference call will be available on the Vectrus Investor Relations website at http://investors.vectrus.com. An accompanying slide presentation will also available on the Vectrus Investor Relations website.

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 August 20, 2019, at 844-512-2921 (domestic) or 412-317-6671 (international) with passcode 13692469.

Footnotes:



1 See appendix for reconciliation.



2 2019 diluted EPS guidance is calculated using estimated weighted average diluted common shares outstanding for the year ending December 31, 2019 of 11.6 million.

About Vectrus

Vectrus is a leading global government services company with a history in the services market that dates back more than 70 years. The company provides facility and base operations; supply chain and logistics services; information technology mission support; and engineering and digital technology services to U.S. government customers around the world. Vectrus is differentiated by operational excellence, superior program performance, a history of long-term customer relationships and a strong commitment to their customers' mission success. Vectrus is headquartered in Colorado Springs, Colo., and includes about 6,700 employees spanning 129 locations in 22 countries. In 2018, Vectrus generated sales of $1.3 billion. To learn about career opportunities at Vectrus, visit www.vectrus.com/careers. For more information, visit the company's website at www.vectrus.com or connect with Vectrus on Facebook, Twitter, and LinkedIn.

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 of the statements and items listed in the table in "Adjusted 2019 Guidance" above and other assumptions contained therein for purposes of such guidance, other statements about our five-year growth plan, revenue (including 2020 revenue) and DSO, our credit facility, debt payments, expense savings, contract opportunities, bids and awards, including the LOGCAP V award, and CENTCOM and INDOPACOM task orders, collections, business strategy, outlook, objectives, plans, intentions or goals, 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. Forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties that could cause actual results to differ materially from the results contemplated by the forward-looking statements, our historical experience and our present expectations or projections. These risks and uncertainties include, but are not limited to: our dependence on a few large contracts for a significant portion of our revenue; competition in our industry; our mix of cost-plus, cost-reimbursable, and firm-fixed price contracts; our dependence on the U.S. government and the importance of our maintaining a good relationship with the U.S. government, our ability to submit proposals for and/or win potential opportunities in our pipeline; our ability to retain and renew our existing contracts; protests of new awards; including protests of the LOGCAP V award and CENTCOM and INDOPACOM task orders; any acquisitions, investments or joint ventures, including the integration of acquisitions into our business; our international operations, including the economic, political and social conditions in the countries in which we conduct our businesses; changes in U.S. government military operations; changes in, or delays in the completion of, U.S. or international government budgets or government shutdowns; government regulations and compliance therewith, including changes to the Department of Defense procurement process; changes in technology; intellectual property matters; governmental investigations, reviews, audits and cost adjustments; contingencies related to actual or alleged environmental contamination, claims and concerns; our success in expanding our geographic footprint or broadening our customer base, markets and capabilities; our ability to realize the full amounts reflected in our backlog; impairment of goodwill; our performance of our contracts and our ability to control costs; our level of indebtedness; our compliance with the terms of our credit agreement; subcontractor and employee performance and conduct; our teaming arrangements with other contractors; economic and capital markets conditions; our ability to retain and recruit qualified personnel; our maintenance of safe work sites and equipment; our compliance with applicable environmental, health and safety regulations; our ability to maintain required security clearances; any disputes with labor unions; costs of outcome of any legal proceedings; security breaches and other disruptions to our information technology and operations; changes in our tax provisions, including under the Tax Cuts and Jobs Act, or exposure to additional income tax liabilities; changes in U.S. generally accepted accounting principles, including changes related to Accounting Standards Codification Topic 606, Revenue from Contracts with Customers (ASC 606); accounting estimates made in connection with our contracts; the adequacy of our insurance coverage; the volatility of our stock price; our exposure to interest rate risk; our compliance with public company accounting and financial reporting requirements; timing of payments by the U.S. government; risks and uncertainties relating to the spin-off from our former parent; and other factors set forth in Part I, Item 1A, - "Risk Factors," and elsewhere in our 2018 Annual Report on Form 10-K and described from time to time in our future reports filed with the 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.

CONTACT:



Vectrus

Mike Smith, CFA

719-637-5773

michael.smith@vectrus.com 

 

VECTRUS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)







Three months ended



Six Months Ended





June 28,



June 29,



June 28,



June 29,

(In thousands, except per share data)



2019



2018



2019



2018

Revenue



$

331,589





$

321,132





$

657,517





$

641,649



Cost of revenue



300,553





292,064





596,149





586,114



Selling, general and administrative expenses



19,843





16,070





39,762





33,865



Operating income



11,193





12,998





21,606





21,670



Interest expense, net



(1,329)





(1,140)





(2,904)





(2,305)



Income from operations before income taxes



9,864





11,858





18,702





19,365



Income tax expense



2,247





2,663





3,994





4,058



Net income



$

7,617





$

9,195





$

14,708





$

15,307





















Earnings per share

















Basic



$0.66





$0.82





$1.29





$1.37



Diluted



$0.66





$0.81





$1.28





$1.35



Weighted average common shares outstanding - basic



11,455





11,235





11,376





11,191



Weighted average common shares outstanding - diluted



11,605





11,383





11,512





11,351





















 

VECTRUS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS 







June 28,



December 31,

(In thousands, except share information)



2019



2018

Assets



(Unaudited)





Current assets









Cash



$

70,329





$

66,145



Receivables



237,247





232,119



Other current assets



20,907





15,063



Total current assets



328,483





313,327



Property, plant, and equipment, net



16,253





13,419



Goodwill



233,619





233,619



Intangible assets, net



13,853





8,630



Right-of-use assets



17,987







Other non-current assets



4,233





3,248



Total non-current assets



285,945





258,916



Total Assets



$

614,428





$

572,243



Liabilities and Shareholders' Equity









Current liabilities









Accounts payable



$

157,486





$

156,393



Compensation and other employee benefits



45,577





41,790



Short-term debt



5,500





4,500



Other accrued liabilities



37,217





22,303



Total current liabilities



245,780





224,986



Long-term debt, net



66,338





69,137



Deferred tax liability



52,460





55,358



Other non-current liabilities



10,174





1,462



Total non-current liabilities



128,972





125,957



Total liabilities



374,752





350,943



Commitments and contingencies









Shareholders' Equity









Preferred stock; $0.01 par value; 10,000,000 shares authorized; No shares issued and outstanding









Common stock; $0.01 par value; 100,000,000 shares authorized; 11,506,228 and 11,266,906 shares issued and outstanding as of June 28, 2019 and December 31, 2018, respectively



115





113



Additional paid in capital



76,642





71,729



Retained earnings



167,583





152,616



Accumulated other comprehensive loss



(4,664)





(3,158)



Total shareholders' equity



239,676





221,300



Total Liabilities and Shareholders' Equity



$

614,428





$

572,243



 

VECTRUS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)







Six Months Ended





June 28,



June 29,

(In thousands)



2019



2018

Operating activities









Net income



$

14,708





$

15,307



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









Depreciation expense



1,538





687



Amortization of intangible assets



1,277





937



Loss on disposal of property, plant, and equipment



2





51



Stock-based compensation



4,031





2,521



Amortization of debt issuance costs



201





213



Changes in assets and liabilities:









Receivables



(224)





(8,820)



Other assets



(7,128)





(4,518)



Accounts payable



2,038





693



Deferred taxes



(2,579)





(1,274)



Compensation and other employee benefits



3,324





(1,950)



Other liabilities



(1,738)





325



Net cash provided by operating activities



15,450





4,172



Investing activities









Purchases of capital assets and intangibles



(11,739)





(764)



Acquisition of business, net of cash acquired







(37,210)



Net cash used in investing activities



(11,739)





(37,974)



Financing activities









Repayments of long-term debt



(2,000)





(2,000)



Proceeds from revolver



98,000





55,000



Repayments of revolver



(98,000)





(55,000)



Proceeds from exercise of stock options



3,467





1,358



Payments of employee withholding taxes on share-based compensation



(768)





(803)



Net cash provided by (used in) financing activities



699





(1,445)



Exchange rate effect on cash



(226)





(1,248)



Net change in cash



4,184





(36,495)



Cash-beginning of year



66,145





77,453



Cash-end of period



$

70,329





$

40,958



Supplemental disclosure of cash flow information:









Interest paid



$

2,818





$

2,119



Income taxes paid



$

4,198





$

7,891



Non-cash investing activities:









Purchase of capital assets on account



$

301





$

481



Key Performance Indicators and Non-GAAP Financial Measures

The primary financial performance measures we use to manage our business and monitor results of operations are revenue trends and operating income trends.  In addition, we consider adjusted operating income, adjusted operating margin, adjusted net income, adjusted diluted earnings per share, EBITDA, adjusted EBITDA, EBITDA margin and adjusted EBITDA margin to be useful to management and investors in evaluating our operating performance for the periods presented, 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.

Adjusted operating income, adjusted operating margin, adjusted net income, adjusted diluted earnings per share, EBITDA, adjusted EBITDA, EBITDA margin and adjusted EBITDA margin, however, are not measures of financial performance under generally accepted accounting principles in the United States of America (GAAP) and should not be considered a substitute for net income and diluted earnings per share as determined in accordance with GAAP.  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, transaction and non-recurring integration costs that impact current results but are not related to our ongoing operations.

"Adjusted operating margin" is defined as adjusted operating income divided by revenue.

"Adjusted net income" is defined as net income, adjusted to exclude items that may include, but are not limited to, other income; significant charges or credits that impact current results but are not related to our ongoing operations and unusual and infrequent non-operating items and non-operating tax settlements or adjustments, such as revaluation of our deferred tax liability as a result of the Tax Cuts and Jobs Act, and net settlement of uncertain tax positions.

"Adjusted diluted earnings per share" is defined as adjusted net income divided by the weighted average diluted common shares outstanding.

"EBITDA" is defined as operating income, adjusted to exclude depreciation and amortization.

"Adjusted EBITDA" is defined as EBITDA, adjusted to exclude items that may include, but are not limited to, transaction and non-recurring integration costs that impact current results but are not related to our ongoing operations.

"EBITDA margin" is defined as EBITDA divided by revenue.

"Adjusted EBITDA margin" is defined as Adjusted EBITDA divided by revenue.

(In thousands)

















EBITDA (Non-GAAP Measures)



Three months ended



Six Months Ended





June 28,



June 29,



June 28,



June 29,





2019



2018



2019



2018

Revenue



$

331,589





$

321,132





$

657,517





$

641,649





















Operating Income



$

11,193





$

12,998





$

21,606





$

21,670



Operating Margin



3.4

%



4.0

%



3.3

%



3.4

%



















Add:

















Depreciation and Amortization



$

1,456





$

815





$

2,815





$

1,624





















EBITDA



$

12,649





$

13,813





$

24,421





$

23,294



EBITDA Margin



3.8

%



4.3

%



3.7

%



3.6

%



















Add:

















M&A Related Costs



$

667





$

492





$

1,712





$

1,669



LOGCAP V Pre-Operational Legal Costs



579









579

























Subtotal



$

1,246





$

492





$

2,291





$

1,669





















Adjusted EBITDA



$

13,895





$

14,305





$

26,712





$

24,963



Adjusted EBITDA Margin



4.2

%



4.5

%



4.1

%



3.9

%

 

(In thousands, except per share data)

















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



Three months ended



Six Months Ended





June 28,



June 29,



June 28,



June 29,





2019



2018



2019



2018

Revenue



$

331,589





$

321,132





$

657,517





$

641,649



Net Income



$

7,617





$

9,195





$

14,708





$

15,307



GAAP Diluted EPS



$

0.66





$

0.81





$

1.28





$

1.35





















Add:

















M&A Related Costs



$

667





$

492





$

1,712





$

1,669



LOGCAP V Pre-Operational Legal Costs



579









579

























Subtotal



$

1,246





$

492





$

2,291





$

1,669





















Tax impact of adjustments



$

(284)





$

(111)





$

(489)





$

(350)





















Adjusted Net Income



$

8,579





$

9,576





$

16,510





$

16,626



Adjusted Net Income Margin



2.6

%



3.0

%



2.5

%



2.6

%



















Weighted average common shares outstanding, diluted





11,605





11,383





11,512





11,351



Adjusted Diluted EPS



$

0.74





$

0.84





$

1.43





$

1.46



 

(In thousands)

















Adjusted Operating Income and Adjusted Operating Margin (Non-GAAP Measures)



Three months ended



Six Months Ended





June 28,



June 29,



June 28,



June 29,





2019



2018



2019



2018

Revenue



$

331,589





$

321,132





$

657,517





$

641,649



Operating Income



$

11,193





$

12,998





$

21,606





$

21,670



Operating Margin



3.4

%



4.0

%



3.3

%



3.4

%



















Add:

















M&A Related Costs



$

667





$

492





$

1,712





$

1,669



LOGCAP V Pre-Operational Legal Costs



579









579

























Subtotal



$

1,246





$

492





$

2,291





$

1,669





















Adjusted Operating Income



$

12,439





$

13,490





$

23,897





$

23,339



Adjusted Operating Margin



3.8

%



4.2

%



3.6

%



3.6

%

 

(In millions)

















Adjusted EBITDA Margin Guidance and 2018 Actual (Non-GAAP Measures)



2019

Guidance

High



2019

Guidance 

Mid



2019

Guidance

Low



2018

Actual



















Revenue



$

1,390





$

1,380





$

1,370





$

1,279





















Operating Income



$

51.4





$

49.8





$

48.0





$

48.3



Operating Margin



3.7

%



3.6

%



3.5

%



3.8

%



















Add:

















Depreciation and Amortization



$

7.1





$

7.1





$

7.1





$

3.8





















EBITDA



$

58.5





$

56.9





$

55.1





$

52.1



EBITDA Margin



4.2

%



4.1

%



4.0

%



4.1

%



















Add:

















M&A Related Costs



$

2.6





$

2.6





$

2.6





$

1.5



LOGCAP V Pre-Operational Legal Costs



1.1





1.1





1.1

























Subtotal



$

3.7





$

3.7





$

3.7





$

1.5





















Adjusted EBITDA



$

62.2





$

60.6





$

58.8





$

53.6



Adjusted EBITDA Margin



4.5

%



4.4

%



4.3

%



4.2

%

 

(In millions, except per share data)













Adjusted Diluted Earnings Per Share Guidance (Non-GAAP Measures)



2019

Guidance

High



2019

Guidance 

Mid



2019

Guidance

Low















Net Income



$

35.4





$

34.1





$

32.7



GAAP Diluted EPS



$

3.05





$

2.94





$

2.82

















Add:













M&A Related Costs



$

2.6





$

2.6





$

2.6



LOGCAP V Pre-Operational Legal Costs



1.1





1.1





1.1

















Subtotal



$

3.7





$

3.7





$

3.7

















Tax impact of adjustments



$

(0.9)





$

(0.9)





$

(0.9)

















Adjusted Net Income



$

38.2





$

36.9





$

35.5

















Weighted average common shares outstanding, diluted





11.6





11.6





11.6

















Adjusted Diluted EPS



$

3.29





$

3.18





$

3.06



 

(In millions)

















Adjusted Operating Margin Guidance and 2018 Actual (Non-GAAP Measures)



2019

Guidance

High



2019

Guidance 

Mid



2019

Guidance

Low



2018

Actual



















Revenue



$

1,390





$

1,380





$

1,370





$

1,279





















Operating Income



$

51.4





$

49.8





$

48.0





$

48.3



Operating Margin



3.7

%



3.6

%



3.5

%



3.8

%



















Add:

















M&A Related Costs



$

2.6





$

2.6





$

2.6





$

1.5



LOGCAP V Pre-Operational Legal Costs



1.1





1.1





1.1

























Subtotal



$

3.7





$

3.7





$

3.7





$

1.5





















Adjusted Operating Income



$

55.1





$

53.5





$

51.7





$

49.8



Adjusted Operating Margin



4.0

%



3.9

%



3.8

%



3.9

%

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 28,

2019



% of

Total



June 29,

2018



% of

Total



June 28,

2019



% of

Total



June 29,

2018



% of

Total

(In thousands)

















Army



$

225,867





68

%



$

238,381





74

%



$

452,559





69

%



$

476,228





74

%

Air Force



72,593





22

%



60,420





19

%



140,524





21

%



125,676





20

%

Navy



16,796





5

%



9,987





3

%



31,906





5

%



18,344





3

%

Other



16,333





5

%



12,344





4

%



32,528





5

%



21,401





3

%

Total revenue



$

331,589









$

321,132









$

657,517









$

641,649











































































Revenue by Contract Type



Three Months Ended



Six Months Ended





June 28,

2019



% of

Total



June 29,

2018



% of

Total



June 28,

2019



% of

Total



June 29,

2018



% of

Total

(In thousands)

















Cost-plus and cost-reimbursable 1



$

256,737





77

%



$

242,742





76

%



$

508,215





77

%



$

472,951





74

%

Firm-fixed-price



74,852





23

%



78,390





24

%



149,302





23

%



168,698





26

%

Total revenue



$

331,589









$

321,132









$

657,517









$

641,649









































1 Includes time and material contracts





































































































Revenue by Contract Relationship



Three Months Ended



Six Months Ended





June 28,

2019



% of

Total



June 29,

2018



% of

Total



June 28,

2019



% of

Total



June 29,

2018



% of

Total

(In thousands)

















Prime contractor



$

312,732





94

%



$

301,088





94

%



$

619,789





94

%



$

602,116





94

%

Subcontractor



18,857





6

%



20,044





6

%



37,728





6

%



39,533





6

%

Total revenue



$

331,589









$

321,132









$

657,517









$

641,649











































































Revenue by Geographic Region



Three Months Ended



Six Months Ended

(In thousands)



June 28,

2019





% of

Total



June 29,

2018





% of

Total



 

June 28,

2018





% of

Total



 

June 29,

2019





% of

Total

Middle East



$

223,588





67

%



$

219,218





69

%



$

450,004





68

%



$

439,098





69

%

United States



72,376





22

%



74,847





23

%



143,786





22

%



148,636





23

%

Europe



35,625





11

%



27,067





8

%



63,727





10

%



53,915





8

%

Total revenue



$

331,589









$

321,132









$

657,517









$

641,649











 

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/vectrus-announces-second-quarter-2019-results-300897499.html

SOURCE Vectrus, Inc.

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