VVX - Earnings call transcript Q1 2024

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Operator

Thank you for joining us for the V2X First Quarter 2024 Earnings Conference Call and Webcast. Today's call is being recorded. My name is Rob, and I'll be the operator for today's call. [Operator Instructions]And now I'll pass the call over to your host, Mike Smith, Vice President of Treasury, Investor Relations and Corporate Development at V2X.

Michael Smith

Thank you. everyone. morning, Good VXX the XXXX conference earnings Welcome first call. to quarter

Officer. first are our Slide are strategic the available then the Joining Vice and Investor walk Financial website, Slides highlight highlight some Chuck to well Chief performance. awards Relations today company's us will President and Chuck recent financial the Executive Chief Senior President as Mural, Prow, for of us govXx.com.Please as will Shawn on X. turn Officer; and initiatives, Today, through section Shawn quarter today's presentation and

Prow. definition diluted earnings, would per to in adjusted and non-GAAP adjusted net I various found cash like EBITDA our Relations website be cause to press and During available of pursuant press our adjusted our including assumes no today's like will the the adjusted to Safe Harbor statements.Additionally, presentation, federal our income adjusted management addition reporting the and be to the of contemplated description to can in time, on metrics, statements turn and measures that over in release SEC.At that results will point results be the The flow, and forward-looking of making the differ obligation release materials presentation non-GAAP company forward-looking these provisions review Harbor from factors forward-looking our discussing The out to Chuck I'd to this Investor share. by presentation statements margin, securities we materials, of may actual Please laws. update GAAP its a filed these operating earnings Safe for statements. call materially with some in

Charles Prow

our our veteran today. take like morning, employees our leading missions for to for a resulted and on XX,XXX employees our commitment workforce. ecosystem the like Mike, participant thank clients' recognize having all Please to moment In VXX veterans you, particular, of joining in us everyone. the a to their you and military to of start great Slide XX% I'd to X.I'd the contributions turn call good remains that prior Thank year. to Thank a almost with service. in

I announce month to VXX Our veteran VXX's Day. has we'll military and Memorial once base that been honored recognized as top to has again key recognize growth, similar friendly a Viqtory. by am this note, been talent a On employer

of have our As we brave Slide honor by and of to our I Revenue revenue turn freedom. lives XX% protect a reported and start women the X% quarter to X.VXX great like the a was first year-over-year. the thank those, would served gave Pacific. the service to in in Please who driven who Middle East growth with present, and increasing in the year-over-year men their year all to in the X% country, past

Our by in execution growth X% the geographic and utilizing Guard. strategy CENTCOM, Support sales the Saudi military our continue substantial East, Qatar clients' at the highlights Arabian the ready growth to to is offerings, contract a program in recent This remain Middle our support mission of and foreign National provider clients in expansion to top a or our we Ministry was emerge. am VXX continues see support demand discussed pleased supplemental the footprint. rate remain our valued successful starting & are driven requirements of in run demonstrate in package, increasing Aviation at primarily year-over-year. with the growth to Training phase-in Pacific, well the the INDOPACOM, the I services from to up. and new to underway to half.As in a in X activities $XXX approximately we second contract operating full report the signals years. anticipate the million over be recent to previously, to We region revenue requirements.We have that program region, ramp our or we the This funding heightened. expand of With region DoD are is

performance number clients' to increasing is of Our leading INDOPACOM, demonstrate support in our greater to to outstanding opportunities which mission teams continue requirements.

firm business to VXX VXX at I'm announce at solutions offerings has growth has the in odd exercises million, existing Navy For $XX EBITDA and at the on particularly the to expanding are in record more $XX more to exercises and mission provide demonstrated further IT nuclear deliver Telecommunications were that been intersection of VXX This its ability we increased awarded award shortly.Our to in to support region, position last XXXX million example, since million of are mission This offering notable contract, support will $X.XX. capability $XX.X hazards. at capabilities week, more asked Balikatan/Salaknib. fixed margin. and threat year-over-year Station under our places biological, we across the series and O&M a Master notable were critical significant of for in our global provide new detail X% speak a differentiating that This and providing Naval led evolving communications with Pacific VXX a awards we in awards. response that contract X-year and and track X.X% critical clients' on unique operations. the expanding the chemical, agility shortly.Adjusted just and a years.Additionally, recent was Pacific. requirements technology to the to scale numbered this I'll pleased schedule XXXX EPS of how the to in win the our recent sit the Adjusted and differentiation valued is INDOPACOM the systems globe. smaller quarter IT price or XX-year region cybersecurity, converged through is through occurs on new Under builds technology mission describe solutions radiological included detection capabilities Navy. I'll U.S. Computer

support. Force Romania. The $XXX to Program VXX over are firm services the which under Force awarded V, task price, fixed recently Air the through in III, the support million provides during first the May contract XXXX in of similar U.S. and that support executed to of X Services contract providing was were GCSMAC contingency position X increased awardees. Multiple at of The its billion.Second, was contract continue of total The services a value was provides but we were made billion, ceiling from IDIQ a and Contingency modified Contract of value GCSMAC III April from The through reached Award This Jordan humanitarian award multiple recently scope to by and First, the $XX awards, value worldwide on Navy. value on ceiling building ceiling extends a is quarter, AFCAP, $XXX Navy's orders billion III. Air VXX is program Augmentation XXXX and to and last significantly $X.X contract the or increase of awarded extends which U.S. AFCAP and to million. ceiling version is Global the Contract $X is which

provider were contract, under the task of we securing the the $XXX services Importantly, of iteration prior leading in orders. million

forward response core support is wins building We at our CBRN for recently operations. are hazards. honored creating turn nuclear, exemplified inserting to million solutions of to biological, was markets Slide through on through operational $XX or Please record continue in into and technologies more track X.VXX the to This chemical, its Navy and value to valued mission detection success. by our look next-generation for operationalized essential radiological and threat

locations.As and Importantly, expanded of at CBRN this lead upgrade for about Command this Control systems which potential source situational sole a prototype to edge production, integrator making. known as decision sensors effort the part hazards user work of cutting is the for new operational overseas record the and link to from provide together of CSCX, we the of a for to inform the effort, are CBRN, awareness to This award Support program fielding systems program, program. integrated integration end will

strategic modernize turn addition illustrate the enhanced through CBRN CSCX, includes global rearchitect we These VXX our expansion predictive X.One are how awards technology-based mission address imperatives operational and and will threat Please value enhancing warning solutions, In application decision notification tools to for harnessing existing hazard requirements. and Slide support. technology expertise to of to footprint propagation our business. high-consequence operational and in

smart this recent Our and teams through are provide integrated warehousing solutions. security new electronic XG, to awards demonstrating

additional protected private and to smart smart relates we and it existing insured warehousing, enable communication Philippines. logistics and XG our under LOGCAP an awarded solution scope were As XG to deploy contract the in V

a in support warehouse investments value, we network to appointments the the and $X.X increase small DoD and field billion, currently is PDI. the the recently also Deterrence INDOPACOM from exercises.This making operations, While DoD of aligns provide Pacific to across part as XX% which PDI solution is and scalable protected released increase or region type budget, infrastructure Initiative, believe X% secured solution a requests prior The the from XXXX. its year fiscal XXXX of

and also a of cellular solution Naval we are Base. design, LOGCAP, Beyond support Guam supporting XG implementation, network on operation tracking and asset testing the private

electronic about of we Historically, security, leader continue standalone been be remain existing providing a We further to solutions electronic that these these offerings basis. generally expand solutions on procured it thousands have ability to assets. contracts.As to a protect security our on relates in facilities optimistic integrated and

region received East. I existing an further Middle establishment base that awarded solutions operations and the the growth and our model establishes and our is pipeline logistics would programs. ongoing existing pleased improves our grow believe recent turn initial These the business backlog positioned This continues offer solution task to vehicle Philippines. Middle from modernized improve solution ability step significantly security business posture.Building am possible believe we X.We that in into However, to revenue also an through to awards This approach a new task an in expansion. award our to in new on the the integrated contracts. our and the team the also in to and X operations We insert demonstrates solutions not without have announce the and under These this clients' were contract opportunity. to maintenance installed wins order solutions displaces sell-through a incumbent. and deliver Slide this inserting technology are provide we and initial capability future traction Please unified been East, support of our our that solution of

submit and comprising bids award. pending Our in of expected increasing muted the The the over strategy solutions pipeline to increasing total. is an pipeline comprising bids evident value for notable award quarter currently of with somewhat our year.Importantly, near-term billion approximately but focus is on billion through $XX the billion, activity this XX business technology metrics of our expected bids and percentage next first company-wide several $X solutions converged award of opportunities of to pace higher months was with $XX stands new at and

the diversified more budgetary of capability a a to and in would we I XX% VXX As over This demonstrates XX operational across months engineered to backlog, client over pending base. review like expect achieve market environment Shawn? technology, to next financials. and bids of are for submit turn bids call our We that and can XX% commitments.Now, brings enhanced on the to versus confidence provides the tied be to continued seen to the the slide, the award. recompetes the solutions Shawn pipeline, believe our visibility limited of training strong

Shawn Mural

globe.Adjusted year-over-year. quarter represents the Performance This performance, East the Thanks, service demand in delivering expectations as metrics quarter Please margin turn from line of Chuck, $XX.X with in our continued and for through in X.X%. was of for X.We quarter thanks, Revenue XXXX. million, momentum our Pacific a strong billion offerings existing our as today. was achieved on quarter. Middle us business $X.XX for started the well the EBITDA the the in Revenue regions programs. building everyone, X% of reflects to here the the strong joining and with new expansion of in growth around XXXX Slide across growth was

interest we year.Adjusted expense, lower As offset interest discussed will important to Cash partially generate EBITDA was expect attribute throughout flow up and expense was from the reflects and expenditure the and $X.XX, ability with Interest was income previously, diluted year. higher by ramp The strong tax X% of growth the for expense our requirements. is depreciation $XX.X EPS quarter million. cash other revenue low business adjusted sequentially capital expense. million.An prior $XX.X

integration net of $XX.X expect the the was was midpoint.During $X provided to representing be capital cash of operating master and CapEx activities year, to by costs range $XXX purchase in continue quarter, million. operating million, $XX.X million, conversion for cash to collected activities M&A of net closed. receivable quarter the net accounts income the shortly the at million adjusted reflective following We expenditures. a in adding back XXX% was delay agreement.Regarding after adjusted approximately receivable by historical quarter operating million used and Adjusted contribution that removing the the and pattern $XXX used by our net cash activities the

of We XXXX $XX expect our streamline ratio by our infrastructure weighted net at sheet, quarter, nature restricted tools approximately the to heavily business. million as from the At back to X.Xx towards the net debt was some capabilities prior $XX.X $XXX.X deploy the Xx to first operations. notably of excluding improved the we expenditures strong merger million profile million with quarter the compared half Slide the close. end of Net year, enhance the for expect Please $X.X office billion. balance $X.XXX debt-to-EBITDA more at CapEx improved the end cash turn to approximately leverage Continue be quarter, to further first year. demonstrating and The flow of was of and cash. X.We engineering million which ended the debt cash capital of on of

EBITDA Navy It full FX does of subsequent the key $XXX achieving win to mentioned approximate net we in value protest. aircraft Slide not XX.The include not FMS the $XX also currently X% cash of of summary, cash.In XXXX, earlier the Additionally, below quarter. first guidance million to pleased XXX% sheet reflects leverage to across our income are our XXXX. the our billion to we midpoint million company on under program the adversary revolver. in X% attribute or increased provides midpoint. Chuck leading with does of and EPS conversion year-over-year was award continue the ratio for company's an adjusted the start to generation the build excellent Xx business visibility. at position important liquidity Xx approximately year, normal availability Slide representing revenue and and first over a which strong $XX.X balance indicator end pattern Backlog The follow the contract year. $XXX million growth, is or performance remains quarter, $XXX XX.Total adjusted guidance business by million Please at and and the reaffirming turn the is with includes the of reflect of revenue made and and turn our capacity, Please business as which the to and $XXX X% throughout at growth million net revenue expect the backlog was metric the This

programs, and teams expansion and continue to existing in our operations.With new open improving Our to business driving to we'd like programs the further questions. on that, call execute, functional Operator? phasing core

Operator

RBC is with line from And Instructions] question our Capital the Ken Markets. [Operator first Herbert of

Kenneth Herbert

Nice quarter.

Charles Prow

Ken. How Thanks, you? are

Kenneth Herbert

off. how your still up the supporting doesn't the XXXX? the fiscal Pretty line it revenue perhaps least the The supplemental at Chuck, of you you was through to opportunity just some growth. rest start put just good. of some maybe view Can of impact the top timing able and to quarter, seem supplemental you but walk pieces nice of like maybe through that first

Charles Prow

globe kind that. We'll do of to Sure. walk the around

East, So revenue on the Middle you saw in nice growth the Middle the East. year-over-year

in As about some quarters, actually, new in OPTEMPO really just wins, talked wins that new the we've nice in region. to addition the represents prior increased

awards those as to have in this expect requirements additional requests this execute of but to We sometime of we would morning, the actually are as None speak. region quarter. for requirements new we processing occurred begin

what's in They're to newer the net with talked East a saw are the the logistics activities to we've of our important past. Pacific.As in in take growth sustainment happening modernization enhancements the the exercises as balance the clients as our materialize, some of they and years, it new even we a relates and working much capabilities may longer between in with continued is But bit requirements. with that fact, the continue are, and capabilities in Middle to the Europe Europe, really to about the The region smaller align in a maintaining need as military enhance They couple well in occurring. You well. but Pacific. are as

high OPTEMPO we'll And requirements. quarter, throughout the this across we're the into begin So globe. third probably new to process seeing and net quarter

Kenneth Herbert

Great.

guidance through you of it year. that the the the was it I Is supplemental, incremental confidence think as the Now top maybe to the obviously, at but kept expected assume with think line the unchanged. fair we as -- largely just least remainder about gives

Charles Prow

you're we'll as our the we think Shawn this that very And about year. with feel we reaffirmed guidance the announced and in here these orders, morning. previously the turn task of typical earlier to comfortable opportunities signed guidance. practices, into aware begin It's that But as

Kenneth Herbert

for And can through understand the in moving I second maybe maybe if full quarterly Perfect. we walk that but to Shawn. I greater cash in expected. cadence? the the you Cash could pieces. we'd quarter second just with strong To the a quarter usage get guess, about usage do than I finally the half, cadence, how a number, little just think year

Shawn Mural

Yes, Ken. right, that's exactly

consistent receivables anything of traditionally little that's be again, we've the that Nothing and concerning of had lower in the back it the quarter, the flow to usage, cash at cause usage I or missed but add that and will then We just to than the to a aggregate, close. cash modest think the cash to half a that, a the But first with prepared the some first year, in like seen. did quarter us I the year. bit in first half very generation the year in timing and of half mentioned get did be the modest then the second of half in cadence. probably we remarks, cash

Operator

Truist Securities. the question line Our is with Sommer next of from Tobey

Tobey Sommer

demand looks see of in multiple of wondering profitability seeing. about perspective the in pipeline it. of kind You embeds it the blended you a in you're of vectors that pipeline from of kind if also margin sort and kind whether could think, like a as described, terms comment margin of I you the growth was what uplift of I

Charles Prow

Hi, Tobey.

really that we pipeline on see and have portrayed presentation. you and So that the in business. and those aspect margin pleased rate continued a the it's higher year talked increased technology sets. aspect What training of the the of format of be engineering we've we fact, higher our pipeline of is a Slide business, I'm that two important capability will X demonstrated new traditionally is margin about to by which operational this our the

As in you the pipeline services not with the training of nice and operational an balancing engineered team's technology been job the activities. traditional know, federal is aspects thing. executing really market doing But I a nicely a higher-margin of very solutions instantaneous our capabilities our think

Tobey Sommer

the and eyes for that sort we've was update answer what protest could That's us to hoping for. most line on think milestones got ones the of on? Great. significant I a From time you standpoint, about the our

Charles Prow

Yes. to in adversary one is The back It is there. GAO. FX now a out big

these But you You predict probably ready started. is be get the I this to last can can't I our on to predict started. a what know is will think ready future at things. We're get run client GAO.

before had modest the again. In fact, happened preparation we've some protest activity new

next that's protest, significant one about -- the done. And to in the anything and point that's of protest, we're be that's able So of to the move this outstanding. else? GAO is hoping Shawn, most once forward midway we're this

Shawn Mural

out. it how see we'll and one, big the that's plays No,

Tobey Sommer

maybe aircraft sustainment? you overseas as if a even talk you about logistics competitive the two landscape the pipeline? Okay. and areas, comment which on and in area maybe be as training, well to bifurcated area, And Could the logistics seems and third could maintenance that in growing the

Charles Prow

include State of operations the of The are that contingency the I'll under -- that -- our logistics aspects both and support and stress Yes. and level as overseas the as well and there still are is OPTEMPO the business, base very operational the significant. DoD Department

see important a point business. those for think to tailwind those will while. be overseas and that I will clients supporting all the news activities just to O&M aircraft a pace of of -- in we the role It's rate continue on one.Point us our activities, I kind specific for the continue to the because So

air, We amount to and continue platforms to training. see our increasing lifecycles in especially then keep pressure the clients themselves of existing and extending the planes to ultimately ourselves as relates on of it the

the the they train and and Navy requirements trained of pilots the is One major Force Air enough mission of pilots. can't both

And you has and in we to business sustainment addition real platforms And solutions, what usefulness point O&Ms of our So net disparate capacity. those to and modernization the know, opportunity we're aspect frankly, parts then call regard support scale as of the large OPTEMPO we consolidate see display with platforms, beginning see solutions us new across two, provide two to to good over to F-XX for to existing quick seen you've running point at a like of now are central X requirements agile business. years.With and extend integrate last the the one. continued that And engineered our unit.

capabilities. So how our profile kind major that's of the of view would demand I

Operator

is question Walsh the next JMP. Trevor Our with Citizens line of from

Trevor Walsh

maybe just for but Appreciate breakout for slide again dig X. or on of really, Chuck to that Chuck of pipeline Shawn, kind Wanted your Slide there. comments. just some maybe the in

up the much a on growing kind you opportunities of and it Or it of us larger R&D of of that's give pie a -- are over OT&E of some to is that to time? is that of can larger the contribution happen flavor that's is part that? engineering just developing? piece I'm other of I of of -- more that there thing Or the that's of kind gets is maybe not go kind how that needs kind becoming that As the need just the picking kind why of of far total, with as by paces business kind of or how kind kind driven

Charles Prow

Thanks -- question, interrupted. the sorry, I'm think the Trevor. I I for

engineering experimenting component and selling, aggressively of marketing, in are technology our We our the with clients operational business. the

cases, sell is In purposeful those OEMs. some So directly are those to clients. clients a to this approach very

experimentation sell example. had talked examples to good set. off is we those we've that our prepared perfect remarks. It that as started into The clients. when then always CBRN through of doesn't clients where a the source nice. a -- proved the from of proved with sole contract concept. both that contract happen our happens moved The about opportunity opportunity, directly existing contract. but it with that CBRN And way, we it well way, in I'm contract it's the our We sorry, there And As really

Shawn, anything So to add?

Shawn Mural

the to to opportunities, I'd No, Yes. that started that see sort the we the the teams little ensure year thing in want said, prepared of a up everything as talked CapEx. that work. offer have is and bit we're only well Chuck to that engineering they tools we We need. capture and some ensure We that stuff that about because, last

very that we to pipeline. about I again, think good everything ability in feel the So address

Trevor Walsh

through specific is Terrific. broad-based a kind the helpful good that sort where or footprint it of it Or of that CBRN expand location I being of because is segue That's And Great. terms can of where super maybe into Is terms and the other base it talk question of just wanted in solution contract. of in -- to ask fairly around on ground implemented? kind geos? kind

Charles Prow

cases were the here be right in No, it States. United use geography -- to around now, earlier deployed some independent. being but happened events of it's actually is the It overseas

but geographically is threats, a it's independent. types focused capability those of So is set that very towards

Trevor Walsh

last And one Great. just it. one. maybe Got

all on keep there from kind requirements kind You region, a of whether customer of I guess, where of I the -- the out suppose, mentioned per as needs the across kind you, Ukraine, lag, then way. I imagine DoD curious it's that, major balancing balance well getting act that or things of you is in and different that terms the East how terms of INDOPACOM. in how balancing does of Europe, put it's mean things How in in that with whatnot? how how in Middle read and the just terms play going And of are are to moving? I I'm of terms I guess, -- guys kind just same resources you can that up dynamics. you guys

Charles Prow

prepared submitted, there. on in As you bids see back -- again, remarks billion of and months, $XX be there of X, XX the the $X next and the activities billion. bids submitted as proposals you That's billion, $XX to at Slide

in couple of reaffirmed we've have been and a overseas for about As as particularly not But major actually in be kind been the that as those training pace of here, Army we which bit forthcoming will with the awards by some awards made talked last the quarters regards now of have -- those has distant muted. we actually to that been logistics believe actually well activity the too here future. believe,

have to sometime, to So distant too not in I your they're future. a is continue is are question here awarded to again, bids submitted to the the say, the point where things bit the while answer going to the be be muted, contents of like $X billion in

Operator

the Our Subin of next questions comes line with Bert Stifel. from

Bert Subin

I there's And while Wing improve slowness of then I this in maybe of look $X mean, can a if been Chuck, and Test sunsetting some question. of Navy that it coming I seen will billion for actually And $X think there's Atlantic solutions. awarded, I submitted to in quarters? maybe and demand improve going on sort is cadence your sort things lot bids you your is balance just there's new solutions then that protest there's give of business your at a do I sort we've Like up how hope aerospace a you heard there, there's following we've us of those phase. think that guess of Pacific guess has growing? aerospace been starting Awards. that the detail the imminently, of billion, or is on the but bids for about when being out, awarded. they're

Charles Prow

support this in commentary, -- think as be again, longer adjudicated. a a there's growth we've going now more has business is needs is across But the that the -- increasingly to pipeline I business. core organic given bringing again, current that mission difficult about talked bit and our budget new nice had to facilities our be both that in reality of given things keep aerospace as assets aspect run our will is we've core the our of pressure faces, And realities. because to operating adversary remains to high. aerospace increasing and budgetary one actually global big -- but market FX becoming realities the is become nation the a

demand It's is answer the been mission come that the issue. them. be profile bids continue awarded a can working that and so submitted just to the and to in not clients aerospace global question, can but prosecute begin we your to our have -- support out with direct they So not it's both and

Bert Subin

guess aerospace growth up? clarify a are protest, award there. to success there I awards Is just endeavors, side, logistics, the obviously large within that's maybe in solutions you it's seen have up smaller getting in have driver. another holding and -- the that maybe large held other things But you and just

Charles Prow

No, have. actually, we

see of the those on has to are that continues in solutions the going back on-contract growth aerospace our I to support. we're aspects be improved cases strong capabilities modernization sustainment to pipeline and privileged that and of the you many And in engineered platforms been business think strong. the

Bert Subin

it. Got

I better follow-up through comment, made for sequential X in to the back just there X% line-ish a and to plus profile, can deal there going margin years done, you like Okay. was on get you when as things of a of the think the year. cost Vertex expectations, guess there? do Or get between improvement and almost like what's to then margin side to guess the the it I started the side. Vectrus about seems going sort maybe like Is mix? we are on faster? take year think with you specific Shawn that It and function

Shawn Mural

Yes, year start are with I'll start start. I the to want of we off I'll like to expected. -- we reiterate, the

million. $XX So

things a a see.From operations the I in happening to sets be XX% place. I standpoint, about processes, consistent of that We're said huge does, that was change. things think not That's streamlining remains good profile up of the growth of revenue like we the We're That -- the XX% what opportunity give in feeling going margin Bert. the incremental bit. margin where when course, we about No we guide, putting see us, again, Bert. couple quarter a also it and It the case, programs, enhancements. cost-type and you that a first in with said. bit, we on stand EBITDA little talked we are released -- tools, adjusted the and us the half. to of

last higher So year. that were back in we of said half we the trending

of there That's them us. the see address higher with we exceptional comments changes, to our are feel improvement continue that demands of other Chuck, clients mix Again, that good about earlier an you and program doing to add? see of are that's go things. things I'll front on everything that. capture you ability in address is consistent we back We and the Page those they and job of have. what can the certainly some customers that want question our to say But Part in team X, to there. ensuring any the in performance on supporting margins on

Charles Prow

No. No.

I didn't seasoning and backlog. the just think teams kind you summarized just last lean then of the about continuing to continuing Maybe our it out the on operations. point the that of mix, talk to work perfectly. It's was we

that execution. backlog to indicates backlog as in the X that billion drive to progress loaded, very front-end be continues and couple in continues margins. $XX historically, higher first i.e., season, And seeing that years of we'll the Our the we're

Bert Subin

great. That's last question. I guess

on you encouraging. the lower like or of targeting what's sort year, less the then bit. is one Is X think the by your guess split? for side. which standpoint, expense Shawn, you're have that's And you about XX/XX? of ticking two, as little the as I interest that roughly first quarter still seems here benefited It the like the position, one, end cash expected. from variable of current seems sort turns leverage that And you, Another a

said million, million the I think you year. for for you're $XX looking but $XXX

up. steps Just why that commentary some on back

Shawn Mural

Yes.

is think Again, for still yes, of bit it little -- split the is still XX/XX. for variable had we yes, interest favorability. So the a quarter, I expense

just think it timing. of some I is

sure there million, make things with, the fine are covering want about again, up. $XXX to everything, feel at we We guide just come that think that I and we're Bert.

So sticks nothing at in out guide that particular XXX. the there

Operator

of NOBLE from the line Gomes with Joe is question next Our Capital.

Joseph Gomes

my questions. for Thanks taking

Shawn Mural

Thank you, Joe.

Charles Prow

How doing? Joe. Morning, are you

Joseph Gomes

well. Doing

good you just up? here? -- looks we kind forward to line, So like SG&A behind anything if one, Or of see first quarter. The it ask. should in go expect the wanted there's that going and if to step that down level took that see to is a that just Was back a wondering particular

Shawn Mural

Yes.

work as operations and So mentioned continue closed a stuff. as bit, XXXX. of sort a amount out did of we office back We restructuring our realignment that and we little modest I on to Joe,

lower do QX. an see of SG&A a in you here So with impact bit little

The I'll say to there's is always other seasonality it. thing some that

One SG&A activities. and of the pursued there is and the elements proposals in our bids

structure the those always But things our aligned feel And where there's seasonality of play needs very well so there's to to the out. we think is some -- business. I good cost some how meet about today. It's

more do. processes We us the tools all you have things work putting expect do. and would those place, in to to We're

Joseph Gomes

to then there? one billion Okay. the program, the you last And a Force DoD And from you $X.X $X.X see on Air a here, The about, $XXX opportunities how you do what Force Vectrus billion guys the more that announced of Air it was numbers it Program. Do was it's program you similar Great. out playing bit And you awardees. program? about type out. other $XXX a talked the program about up we Chuck, million that under are can as end this have little was put Augmentation now the Air of Force mentioned, $XX and awarded getting from maybe talk Similar million. up when that billion, VXX

Charles Prow

Yes.

the were we $XXX I under think million. of last version AFCAP,

Shawn Mural

one. XXXX this From on

Charles Prow

in a for diminishing, the margin not Point into profile profile. two, really done to continued X of know. expanding nice version Dyn demands make Department State I've From you the $XXX last program one. XXXX point the military awardees, even neck consolidation of the point job but PAE AFCAP are AFCAP about and assets, will, the more prior set many on a very I'll tasks. around if X sometimes assets or that competitive mentioned, done the And to of new really you have That The players require the they've today, extension.And program cetera, the been to good We've us. -- deployed job and has a really is et nice million. as margin it's to had world the down, the has existing very done that into Amentum,

been the I near Air that operational be like So for I against the it's that a to And nice Force of develop capabilities job nice contract we've to internally really are able the in a do support the look for the to here us. term. really team in issued requirements client.

Joseph Gomes

Great. you taking Appreciate the question.

Charles Prow

lot, a Joe. Thanks

Operator

the the you. this we've and remarks. of session, closing for Thank At Chuck end to call time, Prow the question-and-answer reached I'll turn over

Charles Prow

call today. and you, appreciate everybody Rob, I us the on Thank joining

looking nice quarter, end had a you and to a at the we'll Have of be day. very forward I we've good second think quarter. the updating

Operator

today's will This conclude conference.

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

V2X (VVX) 7 May 242024 Q1 Earnings call transcript