VSEC - Earnings call transcript Q1 2020

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Operator

Greetings. Welcome to the VSE Corporation First Quarter 2020 Results Conference Call. At this time, all participants are in a listen-only mode. [Operator Instructions]

At this time, I will now turn the call over to Elizabeth Huggins, Corporate Vice President of Strategy, and Chief of Staff.

begin. now may You

Elizabeth Huggins

Tom Q&A. and all call. VSE the we are to Leading John for as with Financial and Hello, for patience in XXXX with your remote bearing our first experience working results may transition CEO, us Officer, Chief and conference the make Cuomo; delays Thank welcome you. in you Corporation's advance this to we quarter President Loftus. from Thank any call and today locations

Aviation The strategic Web sharing and Group that renamed Chain remained follow Group and reporting quarter the Supply to Group remained financial Federal segment. is I today its was segment, Please renamed was each first accordingly. to are performance segment focus strategic of The reflect Aviation Management the segment, we presentation overview & company XXXX Defense was you to Services and on Fleet note, site, our the Federal along the forward. the during encourage business moving

Today's today's periodic forward-looking differ SEC. projected described including our Actual risks those expectations. with significantly filed by to from business obligation results in future discussion the and update Except no statements our statements risks and as to may due in various uncertainties, we contains the required law reports forward-looking financial about undertake forward-looking statements.

as on which posted appropriate reconciliations are discussion financial is GAAP Please incorporated email today's questions@vsecorp.com. and to Web to prepared using time. are during The will percentages the year-over-year our for remarks, presentation we many in questions. financial progress, non-GAAP where our noted. the presentation. possible We questions@vsecorp.com, refer At that's allotted site. in available, our measures as except questions into as All our Again, we conclusion will answer of your open

to call the prepared for Cuomo his like to remark. I that, over John would With turn

John Cuomo

overview on a introduce our thank provide we new strategy. will welcome results, of Tom will profitable update Loftus, Thank financial begin for by everyone our you, the we I believe our performance. update an Today, company on mitigation that then call. and detailed a providing growth. our will to including COVID-XX corporate join framework an you strategy, positions our our taking and our for long-term Elizabeth, CFO, time recent then

Elizabeth a session. will we As noted, question-and-answer conclude with

We the call will on begin side three conference of presentation.

reported in revenue, capture, and strong by X.X% growth Total million. ending VSE profitability. $XXX.X revenue quarter results first quarter the year-over-year highlighted year-over-year, at increased margin

trailing from $X.XX XX-month income XX% a year-over-year. net up $XXX adjusted to we total positive the and Our be million $X.X total or or sale $X.XX of of Despite quarter sale at X.X At adjusted nonrecurring acquisition. debt of items to XX.X% or ended related expect $XX.X had excludes We adjusted in income million market we full-year Choice net challenges per million cash liquidity, $X.X million, times Adjusted flow profitable and share. to both related property, adjusted to $XXX EBITDA the COVID-XX, year-over-year, for our the Turbines, Xst increased resulting a of cash the share net with per QX, diluted end earn-out and the and EBITDA. Prime performance of million total XXXX. free the

in actions COVID-XX operational Before quarter our like taken response pandemic. performance recent share we to the and first the our discuss to by more I'd financial in team detail, management

health this our crisis global during safety the remains and our health four, slide employees priority. to Turning top of

our Our facilities. and operational adapted readiness to at business team ensure continuity has

chain. or limited our disruption are to to operations essential considered services, experienced supply of remain facilities operational and All To critical date, we and our open business. operations our for very

needs accordingly. are We business monitoring specific each and segments responding of regularly the our of

stable work personal continue authorities. shifts to COVID-XX implemented local of created we changed our to spite and social within In the demand seeing travel. remain for feasible, follow protective guidelines, in of products and and health decrease already everywhere as our have to remote aviation adhered we Federal & in distancing, we demand of customer working federal, our services, anticipate Defense and We Fleet guidance relatively reflective said, decline sites. global equipment state, the a That air are

As you organization. reduce actions we page see throughout four, decisive on have the cost to taken

XXXX. our Importantly, parts most for of and these continued weakening MRO segment remainder for demand services given the aftermarket reductions of Aviation have targeted for expectations

In resulting force annualized April, cuts broad based and we reduction cost in in discretionary of $XX million. in implemented spending, savings a approximately

second beginning benefit in realize quarter, reduce the these inventory with we reduce Along have reductions expenditures, steps to QX cost, working in from beginning capital to than benefit expect $X in and recent full more also while with requirement. XXXX. We continuing the partial of reductions taken to quarterly, million capital our

president aerospace segment, Paul company in announced, I I of a business This previously segment. President X. As given traded nearly as leader company. on today the my leave will a know Goffredi, a interim of two will step the of that well Aviation Effective publicly decades is as May senior

to challenges highlight by deep the for bench significant longer-term I understand who of engine one for the am opportunity core our believe we As a VSE, and experienced come. a on we of opportunities later near-term that for the call, we will business. the growth expect executives area will a supported business in both aviation become remains years

segment As the to of XX-month which and XX% of segment, we both trailing softness business approximately Federal that performance. look of Defense a stable expected offset Fleet XXXX, are represent remainder to base should revenue, provide the in & Aviation our near-term

combination a contracts segments, a agencies, XX VSE. will and within last represent contribute of [Ph] book These To both to that end, commercial have QX whom we million [$XXX] more federal customers the steady of XXXX. cycle announced beginning all business awards in businesses trucking heavy-duty customers, which for and in days, results than and military with serve of in

a the impacted the be we of currently do That balance performance quarter in share Bookings piece and leader significant anticipate year. have March, we Although very the we since market. declined own terms gains anticipate and large in this a to of a though market we market are in performance even first recovery quality of our not for of Aviation adversely small a inputs XXXX. the segment and very segment achieved said,

ahead, we see and the global Looking distribution aviation opportunity our share within to both grow product market repair.

financial With our turn Tom? discuss to our call that, first to I over Tom the performance. CFO, Loftus, quarter

Tom Loftus

Thanks, John.

X.X% growth Turning year-over-year Aviation quarter segments. and driven five, by organic revenue our in to grew slide primarily our Fleet first

or For XX trailing revenue the XX%. is up $XX million months our

XX.X% XXXX compared and of improved adjusted QX our and to margins total slides million, EBITDA six our million, segment. same our from driven period EBITDA and profit $XX the & illustrated Federal on XX%, As seven, by up aviation XX-month XXXX, growth up in Defense adjusted was trailing $XX.X in was

in Aviation Now, slide and XX% product million I each three will of contribution to revenue first discuss XXXX of eight. $XX segment segments balance distribution, MRO through services. starting our increased quarter both our sales, with the operating from

both cost attributable EBITDA the million. distribution the other and increased first aviation XX% sale non-recurring turbine quarter EBITDA asset, adjusted and was QX, to to to Year-over-year million Aviation XX% related non-cash, of to segment in increase $X.X the Aviation while repair in increased in prime revenue Excluding growth $X.X adjusted entity. organic operating income

$X.X lower segment while to to segment XXXX decreased million. nine, million to $XX.X $X.X associated the in to This operating the in basis. X% revenue customer margin, quarter decrease strategy mix, of in year-over-year with QX slide and primarily X% Fleet our product with XXX% commercial XXXX successfully attributable to first and decreased EBITDA Turning expansion increased in for its the a operating segment of and income on quarter portfolio. $X.X million million. was on execute The income revenue investment X% or our EBITDA customer first continues commercial diversification Fleet growing

to government EBITDA segment million. first The performance client. operating Slide our our contract million. our X% and declined resulted in Federal improved in operating an increased million XX% QX while work the XX, for EBITDA this from $XX fixed quarter in & income increase the period XX% existing in increased Defense year-over-year on to for revenue to $X.X segment and in price $X.X income increase XXXX

& backlog the funded funded bookings quarter, in The the was to while of a million. $XXX to million in first decline year-over-year $XX backlog Federal to attributable year-over-year Defense total XX% expiration total segment January. large contract XX% declined In increased army

including ratio X.X. new progress with in defense. an department of contract customer good our was channel and with team been segment first $XX quarter are recent approximately backlog The new book-to-bill a the development this has the activity award on There million quarter, revitalizing announcement President year. and growing developing Business of emphasis for the in For orders and of business our delivery current already the on in

revolving our January XXXX, we XXst commitment XX, to matures in facility credit as and in that under $XXX Turning March million unused available cash of slide have million $XXX XXXX.

million quarter trialing adjusted We of provision. Our million ended debt million net EBITDA. existing of credit accordion includes facility the $XX with of XX-month outstanding and $XXX total $XXX

As debt QX conservation, John by liquidity, XXXX. and We debt we highly XXXX. on highlighted the strong reduction despite in our economic million earlier, focused down March environment remain current finished for by paying $XX

back over John. will I to that, it With turn

John Cuomo

Tom. you, Thank

in strategy. journey my the As today about business talking organization, remainder to of complete this I want I first spend our

You excellence. can business on aftermarket service is with and XX-year-old proven XX. VSE a beginning slide performance follow on past

unique that and segment. Our proposition, value differentiated expand capable in driving the new our service it in of market strategy above will take seek growth on to of each with the return core excellence of

slide segments. chain operate which under with supply and part which and MRO sustainment along services XX, Turning services distribution logistics includes MRO which Fleet and services; we and consulting. and report Aviation energy IT distribution to Federal services; business defense part and includes provides management three and

with extending critical aftermarket assets. activities aging with supporting transportation of their are business segments that our of All associated customers the life support

balance with growth We of government relationships multi-year customers. two-thirds have revenue, approximately and customer balance commercial strong of potential representing a long-term contracts, stable higher

a to slide XX, market. now value offers VSE to proposition unique Turning

is provider suppliers. a important customers parts focus First, aftermarket of because we is are play services. our singular and independent our and pure supporting That

and maybe. manufacturing to strategies, not Our a attention capital of as diverted are example, other resources core for company

generalists. specialists, are we not Second,

provide transportation We We have support all the sustains we assets, provide. to opportunities. further which We and in assets. help repair margin higher highly and capabilities team of end parts life specialize technical

offering. that created suppliers to units lean, service and support and industry-leading quickly we've bespoke business customers agile, both and Third, with empowered are

comes a XX, growth key of activity. our and slide strategy component organic to from Turning

be For new and market new by product region, our and a VSE, this service organic expanding customers, customers, the portfolios, existing to repair logistics with expansion offering. targeted service current products distribution offerings our addition will and penetration to Increased our following. capability driven specifically growth of new

date. at We inorganic speak growth will a about later

geographic or it's to disciplined into acquiring service of of acquisition and important practice segments, highlight accretive expansion, the historic a targeting existing integration companies process. financially now from will full focused, portfolio and migrate business model to product For approach strategy how we a customer

Turning dive aftermarket to slide the base. tactical XX VSE deep strategic services services, provides distribution, aviation Aviation through for parts roadable repair global and on XX, both services, a engine MRO supply component chain and each includes accessory customer which segment, to elements and

a segment for brings distribution, repair which greater Our or proposition compromising quality, unique agility for without Aviation support. value aftermarket allows capacity, independent and

the OEM offerings product represent distribution Our in partners strongest the market.

new interior Through and from full capabilities this capabilities, to Our from technical will targeting with between. repair segment's commodity international accessory through in product a growth through the repair of new and repair MRO recovery of defense of low addition offering customers. range beyond, range the our come technical addition and expansion capabilities component product OEM and and highly service repair expansion market new expansion through distribution

to positioned range now supply stocking through wide and logistics, U.S. to and fulfillment, our commercial aftermarket and the and delivery duty through segment and XX of Postal truck is support chain the part, support, subsidiary Wheeler Turning proprietary Fleet uniquely Defense. management, Department inventory technology slide U.S. just and our to provides services in cycle Wheeler high distribution XX, services, other vocational time vehicle of ecommerce part Service to solutions provide fleet, owners. fleet a Bros

testing. short label and parts the of technical in engineering, run expertise margin and for analysis, Wheeler engineers production offers private house reverse utilizes design high

these While on with with support diversification growth, success. commercial strong we way strategy to segment continues to customers customer their this high service government to continue possible to every and our customers maintain remain this ensure excellence progress prepared

label strategy. commercial growth management products, new line time diversification will U.S. commercial highly continues of our expansion come and on private just fulfillment Our distribution is expansion segment regionalized solutions execute customer from to in for our expansion, this of of as today. successfully e-commerce expansion, product This including focus on inventory our geographic customers, segment and own

commercial segmented In XXXX, us customer and as For see renewed full-year for proposition. increased in first activity revenue with customers. example, and clearly approximately brand target with by parts identity XX% markets refresh ecommerce distribution commercial XXXX, you XXXX and our supported commercial the respectively, business value will quarter XX% we our this increased

our slide to and readiness maintenance, now and through to logistics the and ships, provides federal military agencies, MRO, lifecycle aftermarket to Federal XX Turning & segment U.S. or services XX, repair, improve aircraft the overhaul, international extend Defense Forces, and of operational defense customers. Armed and vehicles,

provide transportation We sea, on broadening focusing in IT services. brings XX and This and We subject both offerings offer years than our we land, legacy also energy proven program technical platforms. experience past This air and base. more matter and are of deep consulting segment year, and execution performance assets. customer across

contracts contract contracts. margin and improving costs-plus while backlog with our our balancing building higher on focused are price traditional our fixed We mix

businesses segment, in IT closing, a stable Energy consulting and remains aggressive are organic the otherwise In volatile Our investment opportunity services, two growth. on VSE within market. focused an

includes current help the for expect diversified current together year, ability higher will position be flow profitable and in positive cash foundation the the weather cash to to market long-term us Our profitable today government in generate us revenue for the both free sheet outlined strong opportunities flow free potential growth balance coupled and to mix our challenges, the customers, growth and environment. XXXX. Despite years we strong stable with contracts with This ahead. positive that the full-year

our now ready are call. we the portion question-and-answer of Operator, for

Operator

call Huggins for Elizabeth over Q&A the Thank to today's now turn I'll session. you.

Elizabeth Huggins

Thank you.

several we've COVID-XX there. the about start So received let's questions impact,

could isn't? essential segment of an considered currently part provide you For of COVID-XX impact and each you In segment, each work overview the what see? is what your

John Cuomo

Elizabeth. Thanks,

of units business are all First, operating. our

Our customer. are at onsite remote, consulting businesses fully unless a they're

-- businesses I'll give our and not experienced give operations support you going any customers. a we're continue color but little by to Our repair, segments. each downtime, neither and have base distribution guidance, not of business the nonetheless to on we We segment,

year First, our relatively exceeding Business year. let's wins both and internal Defense. pipeline. backlog, stable, This quarter, a for on us importantly performance most business We continuing business talk was a rebuilding & little business brand, transformational but the and this was planned our Federal we is announce expectations. development bit future about with leadership new wins to new anticipate and the announced throughout a focus new

our Also, business to we Fleet Our business, are steady, this one-time a this through announce crisis. DoD USPS customers our expected. subsidiary, Wheeler and support did opportunity as Bros. quarter one of our

growth XXXX. So the most [indiscernible] do and by quarter. around is world have customers, a expect the routes rebound all and airlines sanitization fleets, softer, QX. clearly And flights. be quite truck their our customers of a our full are we a QX performing grounded the expect had like well. our third the in you customers, Aviation commercial suspended organic know, impact, customers, little utility do like expected to We that XPL to providers, strong continue but We

Our miles, of customers our we a I directly at general revenue gain. XX%. support say, grew correlated you opportunity also have business but customers. we that about significant look When share QX, is we -- aviation business businesses really passenger can't amount market to our and Since should and business, demand, create commercial organically these is directly

and business added help taking having an to be products So will our our both what new distribution in businesses in unavoidable share downturn capabilities we're repair decline. this heading definitely grown into and mitigate

Elizabeth Huggins

you, Thank John.

inventory you you have on Next material hand? shortages your Do supply within have any parts chain? question, encountered sufficient

John Cuomo

sufficient material the we Yes, And there's is have shortages. answer hand. part inventory on first yes, no, no I mean been

closely managing. few You a know, minor always, parts that as we're there's

distributor the of and were planning stocking a additional industry-leading supply we beginning the product proactive organizations. did to ahead are procure We pretty We chains at any with of year get concerns.

supply see shortages So not operations we forward. do or product going impacting issues any chain our

Elizabeth Huggins

the reductions, of us the you so cost by reductions segment? With help $XX cuts can and that of (b) most regard understand, the to cost or (a) mentioned, landed where million you in types

John Cuomo

why don't for us? answer Tom, this jump and Yes, you in question

Tom Loftus

reductions, of Of rest other reductions in consultants, and John. most incentive million XX%. travel, workforce, from the came cost is our the existing The sure, reductions. from annualized unfortunately about $XX compensation Okay,

Aviation of of workforce reductions coming was the our segment about the segment. that two most half that Part impacted question, with from

corporate Our other well were the two as segments as team. also impacted

to will We in of start realize the these benefits reductions QX.

Elizabeth Huggins

Thanks, Tom.

you ones Okay, so additional perform in know that announced? how I months; do this, touched do your you'd businesses on next care similar to to government-facing elaborate. recently the the John, anticipate XX but if wins contract you you

John Cuomo

a during quarter only talked you definitely being we've a about year bookings year-over-year awards earnings tell the I not year mean it but this be X%, as progress, with announced results. And declined were can up operating business I will Yes, those I year but rebuilding, new mean we about of about some the awards. -- revenues XX%. although first XX% new had of

mix growing and forward on that's more and well. and XXXX including defense capabilities, strong is awards details business So of a of announcing having the maintenance naval in some army support What us. the sharing -- really We see program, and is throughout the more the as side. the you'll more Defense year majority team year, for profitable repair logistics programs. & us supporting that the Federal really progress aircraft I'm looking to and is proud our

Elizabeth Huggins

group Quite so together. Okay. segment, we'll questions these few Aviation try a about to the

John Cuomo

Sure.

Elizabeth Huggins

leadership experience of might in the VSE on segment previous advantage assumes take Aviation could how his John and of the As he downturn expand dislocation? any

John Cuomo

I years. an about for XX business distribution mean I aviation with Sure. was

So X/XX downturn. aviation through XXXX and I and both financial the went

strategic to if balance and need do the key So through of how needed, our execute in business so support the peers. growth a today two vision managing the adjustments, well strong sheet and for capital which experience these the we business. I here, highlighted requirements to exit of to support you as have kind in is downturn aviation sides what stronger much on than our strategy the as times, our could initiatives areas We presentation at of

base that or that strategy adjusted haven't presentation COVID-XX. We on

in the So principles through look executing -- strategy, our on focusing we very this them, even aggressively feel grounded of downturn. our to and forward

Elizabeth Huggins

is your if the older fleet? that you see current growth? do talk broad-based of retirements your we how exposed planes how affect segment Can Aviation And airline may about Okay. to

John Cuomo

our component is say, mean our or commercial -- I should I Sure. business, repair repair supports aviation. business mostly

accessory general mostly repair supports aviation. engine business business and Our

exposure, do a of performing which amount business, aviation for commercial the significant have now, us right we well support we platforms. Our cargo all obviously new quite is do and

we having So mile that business. everybody the passenger We are just our we the driving watching, effect but is, trends as a the on the of fleet, the else of negative total impact really anticipate don't revenue retirement business. see

Elizabeth Huggins

as in with airlines outsource Okay. the they Aviation lean more cut these effort cost MROs again, out their cost an to to work you do grapple will independent structure? costs or further pressures believe

John Cuomo

the Yes, perform there's MROs I independent think two well. reasons that will

will to in that how are cost structure. shops. able I think for on MROs more do independent opportunities they traditionally And a to number their internal lean is, look one way yes, out than competitive

that The the is important highlight to second that doesn't talent to the lose. I industry want thing think is technical

aftermarket, and the that sure I the OEMs going repair support desire as industry, around from to believe as continue to our So the see will partners we're as competitors and well is make well in aftermarket and think supporting technical as as I the our distribution, future. us to for teams stocking airline you're both important critical that as keep independent well both the to

Elizabeth Huggins

and the than of all see the position are are to a in revenue. compared again, advantage peers, obviously to is to less unique you market in others ways when segment, aviation third are use much your a you to your and situation Okay, Aviation grow Do XXX% retrenching? share pretty aviation they where with

John Cuomo

first will business. diminish long-term, to I of business, earnings XX%, last answer we're is feel focus want fleet on week, little in more XX-Q impact. reducing opportunities as said, aftermarket guidance, the The our our core. say to earlier, be few and you'll want see of call robust that unprecedented OEMs market what earnings forward, do will and also our their core, and opportunity. are greatest both we be capacity near have near-term I that everyone gains. many midterm in industry only customers, military both of should most time, see conversations and That kind we pure I but near-term, We yes, a quantitative, maybe just between mentioned repair at on don't should decline on impact opportunities when kind mentioned renewed say and I the front we in for have also a going we XX% not with the first although a distribution more detail our we're qualitative the I would was focus but to In us. I our see play transparency, this and while the our are say distribution in but future. on want to I some share call on mean it many of I investor is well our Not In aftermarket entered communicate represents contracting the recent aftermarket a file aftermarket how will we of share giving don't businesses. truck and years, bit airlines these that or diversified businesses of will you'll the have I more kind and those today both clear others see as to

So, how downturn. separately see market throughout can they'll you this perform

Elizabeth Huggins

of may month repair in is with have you we that entirely capacity? facilities Should MRO terms, in not currently this tracking work seeing demand? specific. in and segment ask question Okay, in parts are think of sure if I of will terms revenues your April what any some you Do general provide the I'm down buffer?

John Cuomo

defense MRO federal all and of not activity the any impact in segments, I've in business. on only answered the terms we're Yes, our seeing

passenger logistics business business on That's fleet at business. month seeing supply Our we're April, and of look of the commercial any about miles distribution parts a revenue, Aviation, when by the half repair. roughly In that. declined chain, side, do you in doesn't our

we So growth. have we It's into entered significant XX% and market. organic do an also backlog, again that

that we're we continue, how long miles tracking performing have at will seen, the good is but we then remains we're our believe obviously better we than impacted, we'll still know right that the winning business So but do today. revenue be passenger than market a is better It pipeline, work significantly business now to new this time.

Elizabeth Huggins

Okay, has quarters, thanks, Fleet In profile commercial revenue. Help of approximately Postal segment customer understand John. This represents Wheeler our this is its non-U.S. this grown about business, segment. XX% and recent the expansion Service the around we margin business? which know us opportunity of

John Cuomo

what diversification penetration commercial customer highly and into segment, and last our focused strategy on we're mentioned we quarter this Sure, fleet market.

distribution We such proprietary our great systems fulfillment a business e-commerce distributor, opportunities. Time Just great a technology, and great in as stocking have of in terms

new profitable and very, see and as a segment. share. hard organic [indiscernible]. being multibillion dollar very It's said a That do which market the for opportunities, growth. to headcount growth the specifically we're the and we to cash-generating margin initial pleased with in growth more Wheeler investments this inventory in support turn to of engine enter this slightly of margins other It Bros market organic is as we strong the diluted our investing this business legacy and investing that our very profile we're have it's So small market, and We Subsidiary. not

Elizabeth Huggins

doing we're think great. I

quarterly be flow positive to what on like? cash cadence to for back the the cash cash Okay, does outlook of flow, flow look year, the

John Cuomo

Tom, do you want take one? this to

Tom Loftus

is transactions. to be cash Yes, for certain timing by quarters The we positive year. expect impacted the sometimes between

our be million flow that impacted QX recently of if For early example, QX. cash the quarter, in be award, but by our will $XX collected second end at timing the like collected announced not of might it's

Elizabeth Huggins

Okay, thank leadership, capital for resources Where are business? months? the John, foremost next the to the allocating you XX strategic under priorities VSE and over to XX What are grow you. your

John Cuomo

but kind share that reporting transparent as quickly we with more a plan pretty we I the results we be of highlighted thing near the to results, through on on VSE as first about ago, how as and quarterly I started has and through quarter know is organically were details company's plan ways. execution different noticed outstanding them the went those will term three competencies through go core today. been progress program I focus do we strategic grow continue a well, that talk when each the Well, customer and the company. we with year but take I on The

customers. through market a is of First for that's is which share segment. our from gain new all business And

about business is So, do a really renewed development customers, really new targeted to effort, our current what capability. it's sell our we unique what in to business

The about that is second thing capability expansion.

us In repair again at enter So, you federal if space see in component core aftermarket expand capabilities. look will see offer you that aviation business defense the what repair. and will you our our we us more into military aviation aftermarket,

consistently system some So, maybe you the us like. expansion on ecommerce will see and of focused

take So and there. service capability really how do our development focus offerings on we core

but some that is capital of require will last some And new products. certainly and as not least well,

they spending product are we don't on fall that proprietary we So, market much products How vault our is within customer either or commoditized today. basket share this are gain. sell it that call but

fast So, attack how from are are kind well proprietary turning we OEM that product and feel new we for partnership products source as commoditized margin high product of to are and that as going relevant portfolios. both our market additional sole add

well. growth we So our business in our as fleet product private label have addition,

we to requirement support capital are products future to So, capital will spending, continue reducing although or to they whether the allocate we services. are support new

Elizabeth Huggins

for what John, today. we have Okay, time that Tom, concludes

John Cuomo

We in support Thank person you. thank thanks everybody. conferences look and to in and and you phone in everybody. your you, forward the for Thank available interest and time safe that, to future. continued Stay remain by Elizabeth, your With VSE. today and you meeting

Operator

today's concludes conference. This you. Thank

Thank You may for at disconnect you this your your time. participation. lines

VSE (VSEC) 1 May 202020 Q1 Earnings call transcript