VSE Investor Overview & 10-Year Retrospective FY Christine Kaineg, VSE Investor Relations or

Transcription

1 VSE Investor Overview & 10-Year Retrospective FY 2014 Christine Kaineg, VSE Investor Relations or 1

2 A Proven Industry Leader Fleet Sustainment Service life extension and performance enhancement of aging mission critical fleets, including vehicles, ships and aircraft Supply Chain Management Total life cycle end-to-end product movement including complete logistics visibility and asset tracking. Warehouse management with extensive facilities expertise and large scale inventory control procedures. Maintenance, Repair and Overhaul One of the nation's leading providers of maintenance, reset, overhaul and modernization support, ensuring land, sea and air systems are capable of performing their operational missions throughout their lifecycle. Energy, IT and Consulting Services Professional competencies in strategic planning, clean energy solutions, policy analysis, performance metrics, project management, enterprise architecture, data mining, public protection/security, and technical and software engineering 2

3 Market Segment Overview Supply Chain Management Logistics Field Support Warehouse Management Program Management Demand Forecasting Source/Procurement Customer Inventory Management Maintenance, Repair & Overhaul Engineering Design Management Research & Development Program Management Foreign Military Sales (FMS) Reverse Engineering IT and Consulting Services IT Services Management Consulting Process Improvement Medical Logistics Energy and Environment Consulting Services 3

4 Diverse Groups & Subsidiaries VSE Aviation, Inc. Maintenance, repair and overhaul and parts supply for corporate and regional jet aircraft engines and engine accessories. Includes Prime Turbines, CT Aerospace, Kansas Aviation and Air Parts & Supply Co. Akimeka Information Technology Services and Solutions Medical Logistics; Medical Command & Control; E-health; Information Assurance; Recovery Case; Public Safety; Web-Based Technologies; Enterprise Architecture; Data Migration, Management Mining and Warehousing Wheeler Bros., Inc. Supply Chain Management, Procurement Legacy System Repair Parts; Reverse Engineering; Material Planning and Sourcing; Logistics Visibility and Asset Tracking; Warehouse Management Energetics Grid Modernization, Energy Efficiency, Clean Energy, Energy Policy, and Infrastructure Protection and Resilience Federal Services Group Maintenance, Repair and Overhaul, Equipment and Vehicle Repair/Reset; Foreign Military Sales; Ship Transfer, Modernization and Repair; Aircraft Maintenance, Corrosion Control; Engineering; Advanced Technologies; Transportation Coordination; Procurement/Sourcing; Warehouse Management; Government Seized and Forfeited Property; Munitions & Ordnance Engineering; Facility Decontamination; Prognostics/Diagnostics 4

5 Revenue & Key Events Timeline $1,000.0 Iraq/Afghanistan War support contract bookings reach nearly $1B (CECOM R2) $937.4 $ Revenue CAGR = 4.2% NASDAQ CAGR: 8.07% $900.0 Acquisition of G&B (2008) Acquisition of Akimeka, LLC (Aug 2010) $800.0 $811.0 $700.0 U.S. enters recession leading to financial & budget crisis. Withdrawal from middle east begins to accelerate. $600.0 $603.2 $580.8 $546.8 $500.0 Acquisition of WBI (June 2011) $471.6 Acquisition of ICRC (June 2007) $400.0 $424.1 $364.0 Acquisition of VSE Aviation, Inc. (Jan 2015) $300.0 $280.1 Won Iraq/Afghanistan War Support Contracts (CECOM R2 and Tanker Coating) $

6 VSE Stock Price Peer Comparison VSEC Stock Performance Range: Feb 1, 2014 Feb 1, 2015 Source: E*TRADE Financial 6

7 Customer Revenue Breakdown % 1% 94% Defense Federal Civil Commercial 7

8 Revenue & Key Internal Events $1,000.0 $900.0 Acquired G&B Solutions $937.4 $ REVENUE CAGR = 4.2% $800.0 $811.0 Acquired Wheeler Bros., Inc. Acquired Akimeka $700.0 $600.0 $603.2 $580.8 $546.8 $500.0 Won Rapid Response (R2) Contract $471.6 $400.0 Penetrated Army Reserve stateside vehicle re-set market $424.1 $300.0 $364.0 Won first NAVSEA FMS re-compete $280.1 $

9 2014 Financial Summary Source: 2014 VSE Annual Report 9

10 2014 Financial Summary Source: 2014 VSE Annual Report All per share data has been adjusted for stock splits 10

11 2014 Financial Summary Source: 2014 VSE Annual Report All per share data has been adjusted for stock splits 11

12 2014 Financial Summary Source: 2014 VSE Annual Report ROE is calculated as Net Income divided by Beginning of Year Shareholders Equity All per share data has been adjusted for stock splits 12

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14 Summary Income Statement FY 2014 FY 2013 For years ending December 31 $ $ Revenues 424, ,638 Contract Costs 383, ,250 Gross Profit 41,070 47,388 Selling, General and Administrative 4,140 3,285 Discontinued Operations - - Interest Expense Income (net) 3,983 5,789 Income Before Taxes 32,947 38,314 Net Income 19,365 22,852 Basic Earnings Per Share Diluted Earnings Per Share In thousands, except share and per share amounts 14

15 Summary Balance Sheet ASSETS FY 2014 FY 2013 $ $ Cash and Cash Equivalents Receivables (net) 59,391 78,387 Goodwill and Intangibles (net) Inventories Property and Equipment (net) Other 164, ,309 49,363 39,315 52,911 57,738 29,141 30,560 Total Assets 355, ,529 LIABILITIES FY 2014 FY 2013 $ $ Accounts Payable & Accrued Expenses 52,669 56,418 Bank Debt 23,563 64,487 Long Term Lease Obligations 24,584 25,721 Other 49,025 25,061 Total Liabilities 149, ,726 STOCKHOLDERS' EQUITY FY 2014 FY 2013 $ $ Total Stockholders' Equity 205, ,803 TOTAL LIABILITY & EQUITY FY 2014 FY 2013 $ $ Total Liabilities and Stockholders' Equity 355, ,529 In thousands, except share and per share amounts 15

16 Selected Quarterly Data In thousands, except share and per share amounts 16

17 Stock Trends 17

18 Year End Stock Price & Annual Range STOCK PRICE CAGR = 12.1 % NASDAQ CAGR: 8.07% Chart shows annual high/low stock price range All per share data has been adjusted for stock splits 18

19 Proud of Our Past. Excited About the Future. 19 VSE Corporation Proprietary Information VSE Investor Relations: Christine Kaineg 6348 Walker Lane Alexandria, Virginia Phone: (703)

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21 Operational Structure (Corporate Level) CEO, President, and COO M.A. Gauthier General Counsel Corporate Secretary T. M. Kiernan Vice President CFO T.R. Loftus Executive Vice President Contracts & Procurement C.R. Douglas Vice President Human Resources T. Bailey Vice President Supply Chain Segment Wheeler Bros., Inc. C. Wheeler VSE Aviation, Inc. P. Goffredi Federal Services Group M.A. Gauthier Includes: Global Maritime Services J.R. Brown Global Land Services J.M. Coritz VSE International Corp. J.M. Coritz/J.R. Brown IT, Energy & Management Consulting Segment Energetics N. Margolis Akimeka J. T. Harris 21

22 VSE 10-Year Financial Data VSE Trajectory Revenue ($M) $280.1 $364.0 $603.2 $937.4 $974.2 $811.0 $580.8 $546.8 $471.6 $424.1 Net Income ($M) $6.2 $7.8 $14.1 $19.0 $24.0 $23.7 $20.5 $21.3 $22.8 $19.4 Net Margin 2.2% 2.1% 2.3% 2.0% 2.5% 2.9% 3.5% 3.9% 4.8% 4.6% Shareholders' Equity (BOY) $23M $30M $38M $56M $76M $101M $124M $144M $164M $187M VSE Return on Equity (ROE) 26.8% 25.8% 36.9% 33.8% 31.6% 23.4% 16.6% 14.8% 13.9% 10.4% Long Term Debt ($M) $0M $0M $0M $0M $0M $11M $145M $116M $65M $23M Split adjusted Earnings Per Share $1.33 $1.64 $2.85 $3.75 $4.68 $4.56 $3.93 $4.03 $4.29 $3.62 Diluted Earnings Per Share $1.29 $1.61 $2.82 $3.74 $4.67 $4.53 $3.90 $4.01 $4.28 $3.61 Dividends $0.115 $0.135 $0.155 $0.175 $0.195 $0.23 $0.27 $0.31 $0.35 $ CAGRs: Revenue CAGR = 4.2% Net Income CAGR = 12.1% Shareholders Equity CAGR = 23.3% EPS growing from $1.29 to $3.61 CAGR = 10.8% 22

23 Mergers, Divestitures & Acquisitions $1,000.0 $974.2 $900.0 $937.4 $800.0 $811.0 $700.0 Acquired Acquired Merged $600.0 $603.2 $580.8 $546.8 $500.0 Acquired $471.6 $400.0 $300.0 $280.1 Acquired $364.0 Divested $424.1 Acquired Jan $

24 Net Margin 6.0% NET MARGIN CAGR = 7.6% 5.0% 4.8% 4.6% 4.0% 3.9% 3.5% 3.0% 2.9% 2.0% 2.2% 2.1% 2.3% 2.0% 2.5% 1.0% 0.0%

25 P/E Range w/ Year End P/E High P/E Low P/E Year End P/E Ratio All per share data has been adjusted for stock splits 25

26 Debt (End of Year) 26

27 Enterprise Value 27

28 VSE Snapshot Chart depicts split adjusted annual dividends per share 28