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V2X, Inc. Delivers Strong Financial Results with Record Revenue Growth in Fourth Quarter 2023

Fourth Quarter 2023 Summary

MCLEAN, Va., March 5, 2024 /PRNewswire/ -- V2X, Inc. (NYSE: VVX), a leading federal services market contractor, has announced outstanding financial results for both the fourth quarter and the entire fiscal year of 2023. Demonstrating robust operational performance and financial discipline, the company reported a record-breaking revenue of $1.04 billion for the fourth quarter, marking a 6.4% increase year-over-year.

The fourth quarter saw significant year-over-year (y/y) revenue growth, with an impressive 31% in the Pacific and 18% in the Middle East. V2X's operating income stood firm at $38.5 million, and adjusted operating income reached $76.2 million. Net income experienced an upward swing from the preceding year with an increase of $10.1 million y/y, although resulting in a marginal loss of $0.5 million. Adjusted EBITDA positioned at $82.1 million, securing a margin of 7.9%.

Earnings per share (EPS) were impacted, showing a diluted EPS of $(0.02) due to various expenses like merger and integration-related costs, amortization of acquired intangible assets, and interest expenses. However, the adjusted diluted EPS told a brighter story at $1.22.

V2X also boasted a strong year-to-date cash flow from operations at $188.0 million and reported a significant net debt reduction of $137.1 million. Accentuating its strategic financial management, the company was awarded its first considerable foreign military sales program, valued at a substantial $400 million across five years.

2024 Guidance

Looking forward into 2024, V2X projects confidence with an encouraging forecast. Establishing full-year guidance, the company anticipates a 5% increase at the midpoint for both revenue and adjusted EBITDA. This future vision is reinforced by a backlog of approximately $13 billion, $9 billion of which comprises bids currently under evaluation, along with a robust pipeline of opportunities valued at $15 billion expected to be submitted in the coming twelve months.

Exemplary Leadership and Global Expansion

Chuck Prow, the President and CEO of V2X, expressed satisfaction with the company's performance, emphasizing the strategic moves that propelled the company to its record revenue and substantial debt reduction. He noted several milestones achieved by V2X during the crucial fourth quarter, out of which securing the foreign military sales program was a pivotal feat.

This triumph in the Middle East was attributed to V2X's longstanding dedication to its FMS strategy, positioning the company's FMS portfolio at an impressive $700 million. "Our ability to deliver full lifecycle solutions is a significant differentiator yielding results," Prow stated, referencing the impactful delivery of a defense platform and the successful execution of multiple awards valued at about $70 million in the fourth quarter alone.

Financial Fortitude and Strategic Framework

V2X's achievements were not limited to new contracts. Demonstrating commendable financial stewardship, the company reported robust operating cash flow, exceeding guidance and boasting a record low Days Sales Outstanding (DSO). Moreover, V2X considerably advanced its net leverage ratio, highlighting its solid financial base.

With an eye on the future, V2X plans to capitalize on its leadership position in the federal services market by expanding its base, capturing new markets, and continuing to deliver excellence. The company’s strategic framework and transformation initiatives position it favorably to increase shareholder and client value significantly.

Optimistic Outlook Portrayed by Senior Leadership

Shawn Mural, Senior Vice President and Chief Financial Officer, echoed Prow's positive sentiments. "Revenue growth in the quarter was driven by exceptional team performance alongside expansion in existing programs and new business wins," Mural highlighted. A detailed breakdown of revenue growth illustrates a remarkable year-over-year increase, particularly in the Pacific and the Middle East regions.

Conference Call and Future Projections

V2X is slated to hold a conference call for analysts and investors to discuss these results in detail. Scheduled for 8:00 a.m. ET on Tuesday, March 5, 2024, the call promises to provide deeper insights into the company's strategies and financials. Interested parties within the U.S. can join via 877-407-3982, while international attendees can dial in at 201-493-6780. Furthermore, a live webcast and slide presentation will be accessible at https://app.webinar.net/WrwGVYwl6dA, asserting V2X's commitment to transparency and engagement with its investor community.

After the call, a replay will become available on V2X's website, with the telephonic replay accessible through March 19, 2024. As the company looks to the future, its robust financial position and backlog, combined with a strategic framework aimed at expansion and market capture, showcase V2X's determination to drive growth and create value.

Comprehensive Financial Reports and Non-GAAP Measures

V2X's detailed financial reports reveal the impressive management of costs and profitability across its contract segments. Revenue streams are well-diversified by client branches, contract types, relationships, and geographic regions. This financial prudence reflects in its operational income trends, underscoring V2X's success in a highly competitive sector.

The company employs various key performance indicators and non-GAAP measures to facilitate a comprehensive evaluation of its finances. These include adjusted net income, adjusted diluted earnings per share, and adjusted operating income, among others. These metrics serve as a barometer for V2X's financial health, providing stakeholders with a clear understanding of its operational efficiency and investment potential.

Contact Information

V2X values open communication channels with its investors and the media. To this end, Mike Smith, CFA, for investor relations, and Angelica Spanos Deoudes for media contacts, remain available for queries. Their readiness to interact and provide information further cements the transparency that V2X operates with, fulfilling its pledge to maintain active engagement with stakeholders.

Specific contact details and email addresses are readily available within their recent press release and on the company's website. This allows for direct and effective communication, aligning with V2X's objective to uphold a culture of openness.

Forward-Looking Statements and Fiscal Accountability

V2X takes care to make forward-looking statements with a responsible approach. While the company anticipates various positive trends, it also acknowledges the potential for unpredictable factors that could affect financial outcomes. This forward-thinking approach exemplifies V2X's commitment to fiscal responsibility and strategic planning.

In conclusion, V2X Inc.'s record-breaking financial performance and assertive 2024 forecast represent the company’s strong fiscal framework and operational excellence. Steered by experienced leadership and strategic initiatives, the company stands poised to capitalize on market opportunities and forge a path toward sustained growth and shareholder value.

Disclaimer: This document contains forward-looking statements that are subject to risks and uncertainties. These predictions do not guarantee future performance, and actual results may differ. Always consult more detailed financial disclosures and risk factors as outlined in the company's SEC filings for a more thorough understanding of potential risks.

For further information, visit V2X's Website