Wednesday, August 12, 2020
Vectrus (VEC)
Working Through COVID
Vectrus Inc is a U.S.-based company that provides services to the U.S. government. It operates as one segment and offer facility and logistics services and information technology and network communications services. The information technology and network communications capabilities consist of communications systems operations and maintenance, management and service support, systems installation and activation, system-of-systems engineering and software development, and mission support for the department of defense. The facility and logistics service include airfield management, ammunition management, civil engineering, communications, emergency services, life support activities, public works, security, transportation operations and others.
Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.
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2Q20 Results. Vectrus posted solid top line in spite of COVID but the bottom line suffered from a number of items. Revenue of $336.1 million increased 1.3% year over year. COVID was a $22.3 million headwind. GAAP EPS was $0.09 versus $0.66. Adjusted EPS was $0.24 versus $0.74 last year. Second quarter 2020 adjusted EPS was impacted by $0.14 from COVID and $0.54 from a contract adjustment.
Backlog and Book-to-Bill. Vectrus continued to win new contracts during the quarter, including three with the U.S. Navy valued at $554 million in aggregate. Backlog at quarter’s end increased 18% y-o-y to $3.8 billion, Trailing twelve month book-to-bill was 1.4x. The pipeline remains robust with $1.1 billion of submitted bids and …
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