VVX - Earnings call transcript Q2 2024

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Operator

Thank you for joining us for the V2X Second Quarter 2024 Earnings Conference Call and Webcast. [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

Good morning, everyone. Welcome to the V2X Second Quarter 2024 Earnings Conference Call.

Joining us today are Jeremy Wensinger, President and Chief Executive Officer; and Shawn Mural, Senior Vice President and Chief Financial Officer. are govXx.com. the presentation of Relations today's website, our for available Investor on section Slides to X. turn Please slide

company During today's federal presentation, our pursuant review to management safe factors its press a the will be safe these by results our the materials provisions cause assumes obligation results update that The to making no description release statements. harbor and of some of to for actual forward-looking statements contemplated forward-looking may of the harbor differ securities presentation from statements. materially Please the laws. in forward-looking statements

In to believes addition, measures in such today's non-GAAP management remarks, we investors. will because to certain refer measures useful are financial

find filed available on measure website. I'd presentation both our can the slide At are reconciliation presented with to of in time, turn which GAAP measures most to calculated the earnings our of the on You and comparable section our Jeremy. this SEC, call to over release of in a the these and accordance Relations Investor like with

Jeremy Wensinger

you, everyone. good for you morning, Thank and today. us joining Thank Mike,

momentum strong was includes $X VXX get XX,XXX like next-generation supporting $XXX of organization at The Please valued of a the around $X is million, started, would deliver year-over-year. named important billion-plus award the at at XX% Growth demand actually production security. an awards recent to globe adjusted and honored most was role for demonstrated the be life-cycle award award missions to $X.XX. from adversarial X through the I the critical the that welcome. margin program, our thank play a Routers, in over the and X. part for F-X solutions and was readiness. and such $XXX in several full $X.X our the aircraft some Pacific finally, billion, I increasing EBITDA million, Adjusted quarter This of to warm Before EPS was Gateway I'm NASA employees award X.X%, continued turn the our VX billion. and revenue company's slide to mission-oriented remained in national Mission valued Middle reported by of record East. quarter driven for a diluted

Given backlog our raising I discuss where adjusted reaffirming XXXX we EPS our guidance X, further cash Please and slide awards, and year-to-date notable performance, are turn recent our revenue net awards. from operations. EBITDA, to will and

is of on $XXX recent focus in Our providing that the yielding side mission-based exemplified of on enable communications the This left-hand million slide. technology listed are which approximately was solutions assured results. awards,

aviation secured is provide Gateway multiple First, cyber-hardened million $XX believe awareness. seamlessly to applicability has It numerous for GMR. award. we VXX a a operational integrates award enhanced opportunity communications, environment. a The or GMR across truly the Router ground facilitate information to and beyond broad growth offers platforms, GMR and real-time converged situational designed assured across domains creating and technology communications initial Mission with this

provide processing are we greater lower size, and power. capabilities solution invest such, weight at and even to the continuing As enhance advanced in to

be and creating to anywhere, systems disparate it accessible the Defense, all-domain the a JADCX picture, joint key combined anytime control of into positioned Department Additionally, is decisions. Military Internet command that information common connects for enabler is we JADCX believe GMR concept DoD initiative. things, making operational for a or of a rapid

further Pacific. footprint the delivering U.S. Navy while in assured its to is expanding VXX communications Next, the

support provide vital Telecommunications new TAMs CXI ] Naval Our to and [ forces X-year also U.S. Ocean. Computer million award, and as allied Indian XXX over Pacific will known and across $XX Nick the Pacific

Strike FSET systems ensures Group that the readiness deploys CXI the Navy continue deliver VXX. U.S. communications U.S. systems end-to-end fleet are of million integral team Our and Navy will engineering to X-year without ships. program to engineering solutions that $XXX no

This Moving the was most critical global solutions operations for high-impact VXX flight to be to leader award the X-year recently missions. providing to continues Space demonstrated includes which our preparedness support of in and Center. our customers' the the strength center approximately billion NASA to mission market $X human and awards, of Johnson slide, space a through at

software for will Buoyancy ARTEMIS VXX the of NASA the integrated Specifically, assist X by hardware Neutral reliability in the ensuring Laboratory. preparing mission upcoming the at and systems

U.S. we naval F-X to F-X mimics currently threat program, current providing enabling readiness advanced training are X-year in the which new the aircraft pilots phasing Additionally, that is the or aircraft. of

to next-generation Lastly, is harnessing and customers. deliver side for solutions VXX moving to the of the readiness its slide, right-hand capabilities

the over example, capabilities company valued is readiness by award generated full to of award be legacy leveraged XG of This can logistics award the enable of and includes representative of can the to leveraged This This allowed win. support, For readiness. programs ability robust that capability secured VXX. X recently breadth the intelligence just one suite Combining synergies the and submit proposal. and billion to a of an tool warehousing, at spectrum unique technologies complex operate set of be combined that years a smart large artificial example capabilities This company. this $X-plus to tools. such combined the differentiated with VXX in is insertion insertion as our

the review call turn of to Shawn over a like to the financials. for Shawn? I'd Now

Shawn Mural

joining be X. Record in QX. to billion as you, thanks Revenue $XX.X represents working of and revenue continued today. growth in our offerings This demand us reflects of line X.X%. again year-over-year. a million, in growth in the continued to top and the the pleasure quarter was East Pacific Strong everyone in of the Adjusted quarter around to programs. EBITDA It's $X.XX the globe. existing quarter turn XX% Jeremy. the was margin Please strong a achieved of through new performance of business Thanks, slide regions well with as delivering expansion Middle

to investors. measures to useful non-GAAP As we are we a reminder, certain are because believe measures referring financial such

half of compared year to year. adjusted $X.XX for the the of contract Consistent million. X% first million first $XXX.X revenue expense decrease million, year-over-year. million, The heavily turn approximately margin Interest $XXX.X million, weighted million cash was have compared of $XX.X based turn X.X% to the capital successful M&A slide discuss mentioned This $XX.X million. to was MARPA weighted more rate XXXX. that was the XXXX. Adjusted of implementation prior XXXX expectations, EBITDA of half Interest executive reflects or Adjusted $X.XX. $XX.X XX.X diluted interest million interest through average integration point facility XX%, the or XX% back have adjusted Adjusted for half shares. adjusted million. remainder in Please was Year-to-date, increasing year-to-date the results. compared was to expense continued adjusted we June quarter this, transition. previously, a growth of billion, would the X, slide million purchase Please quarter ramp our EPS like X. expense $XX.X EBITDA of $XX.X and the yielding well was removing $X.X in we used rate to million. throughout million of and the were Absent business the activities used adding Cash reflective receivable As EPS year. and cash net of working change $XXX.X the support the year-to-date adjusted operating new of contribution the of of [ applications. the with to as in to costs expect tax requirements was first second improvement the operating was that net was I'd to $XX.X debt was EPS been actions where revenue I'll was expense our is $XXX.X ] tax our $X.XX reduction Year-to-date $X.XX. accounts on by repricing diluted efforts. to reflective due out sequentially by and approximately as master activities Cash

repriced pricing XX we represents the B. an Term million and in yielded point extended which reduce assumptions. into in of repricing basis Loan since expense rate in October second During which Loan the incorporated the XXXX, have aggregate, interest This to $XXX is These have efforts by last the improvement year. cash Term million $X of allowed successful us interest positive B, quarter, our

proactively an year. the by weighted average to merger compared flat XXX to interest we lowered turn which net balance sheet and basis rate million our in million revolver. midpoint total remained excellent debt-to-EBITDA of important the approximately quarter. make points. enhancing representing prior progress and Xx Since $XX.X and ratio Net This of billion first the on pricing The Total have in capital business the essentially leverage capacity, key backlog annual includes structure is end to revenue of was compared revenue approximately the X.Xx The guidance. at was second debt improved liquidity metric $XX We $XXX slide X. strong by with availability our quarter, million closed, company's the $XXX provides at visibility. interest quarter, lowering to on attribute of grid the debt Please position the expense. excellent continue

the backlog to awards the of second We definitizations. in year half contract due expect increase and to

there will awards several that As backlog. add our to be Jeremy discussed, will

in and For the to booked which transition the be award, third example, the in phase quarter. $XXX million expected is adversary currently F-X

Support which and With transition, expected addition, successfully is In Services the completed progressing are Saudi towards subsequent regard be recompete the QX. are the program have was we million contract. to booked FSET, the awarded and in Training of $XXX QX, executing to to award, definitizing Aviation

are Finally, contract. on activities billion-plus expect they on to we the incrementally $X book as put readiness award,

full coupled of next win, of with approximately years. the the in to visibility of by terms million adding XXXX potentially with revenue million. $XXX contribution turn incremental revenue the X. In $XXX Please the slide ramp to over annual expect approximately second of program F-X This, revenue, several enhances we half annual

Given we billion. to are our to guidance our revenue billion performance, raising strong top-line $X.XXX $X.XXX year-to-date

year. to from back We in and with performance summary, call are first half the to adjusted In are Jeremy. across like business I'd operating the pleased EPS adjusted the turn net activities. cash With reaffirming the that, over the of adjusted we EBITDA,

Jeremy Wensinger

for to to its drive like of growth next are some close and observations with in stage Please to Slide achieve value. I'd turn believe additional XX. I what opportunities VXX

First, size billion scale at to and $X its the VXX has revenue, in in core markets. compete

level is is markets served differentiator on infrastructure, a replicated. easily spanning our VXX. an a not ] [ Additionally, operate over is in and to global global expertise the countries, one important and people, discriminator processes extremely that by XX The footprint

from capability $XXX Pacific including over aligned is Second, matter of DoD DoD. VXX federal component theaters, the are the well-funded spending largest in VXX funding from Middle missions the as perspective, and is key the where East, budgets, billion receiving strong such and support Furthermore, annually. at a to positioned

appropriated in year For fiscal which part $X.X from billion is government example, fiscal the of XX% amount 'XX 'XX. government the in requested Initiative, approximately DoD Deterrence as Pacific year the up has

Third, VXX support. critical be support all missions is has excellent emerging evolving. are solid VXX requirements with to operational the This and past the we how missions agility business of that aspects with its into in that required in intimacy to provides performance for known insight is VXX allows ready

In VXX and a technology opportunities, market is insertion, as evolving, to we terms artificial position intelligence into rapidly accelerate missions machine is in the such of learning the support. great and

differentiators. bids are as We today inserting our this technology into

As a leverage create know-how better VXX outcomes. to operational a trusted partner, enhanced and customer and can experience technology

further set robust was leveraged of more are more and the You have differentiated technologies opportunity is great of how with a large an our which has of breadth to readiness future, utilized think excellent into to award, pursue depth recent The portfolio will me A we about these solutions speak VXX it example inserting the new power the hear the full capabilities. and do organization. the in I operations. we opportunities. VXX

stages what multiple are We early we this win. see build to of achieve the opportunities in and on can

pipeline Our continue our the will capabilities. of the reflect presented opportunity new business combination by to

end is front these ensures VXX long-term are incorporate As wins, new business that several success. large operational of heard we earlier, discuss excellence set that programs and you me will at for the up

new to programs. and our on We practices existing past will overall enhance performance on build

of order of integration I leverage we commitment there in one believe integrations customer global chapter my the is take I ensure employees chapter from our greatest to our optimization refine In performance. will momentum, across priority VXX's XX-plus strong of drive It to processes great differentiated to be of and believe move experience performance excellence. advantage our mission solutions as opportunities value foundation to Finally, my upon to opportunity scale. business and of the our substantial remains core success. our and The to and has VXX build deliver conclusion, our and is footprint and to

Operator? call Now open like to I'd the to questions.

Operator

session. question-and-answer the begin [Operator with now Instructions] Noble will Our from We comes Gomes first Capital. Joe question

Joseph Gomes

meet even telephonically. welcome finally So you to Jeremy, aboard. Nice

your you impressions. what X get now go impressions you needs been been wondering, focus only give you -- like, what here? of maybe think X to are, trying obviously, months initial just your initial where it's us some Just months, your what to but I it's it, get see,

Jeremy Wensinger

the have genuinely first are more I'm there doing, I last impressive think with in in is impressed growth. they team new They and impression performance Indianapolis These work and some I the in person, give with the very the our management had It said to it the I to revenue the earnings minute genuinely that demonstrated people ago. probably when with lead impressed I walked people people. have the of is a I opportunity the who demonstrated part performance; I the around the a take the door. meet globe. them would meet and generate you thought ability very wins impressive in to than lot them. complex just facility got businesses;

where really impressed focusing I've look I and performance So, are say our a And driving to efforts been efforts, I with think look as of out coming around at to lenses. the we're optimization couple integration, would excellence build what a of I execution, having on. is at lot there's think opportunity I the and

opportunity that most really I is integration portfolio look recent and see broader any to combination come was together think the coming that see the the a to would for you possible you out the being to with been acquired. not take award think company what the of I have chance That companies company, and we time the you readiness. the now fight the at of without have

So, impressed these the we and But manifesting forward, dragging them of take that us the as start portfolio I talent think I candidly, Port think capabilities and far. the very a it about Finda thrilled move genuinely have they it to genuinely with of pipeline here that flawlessly. the with opportunities. will in with you I've and been execute people into of am thrilled to the so the [ welcomed will more And and ] just in impressed be total company company, ability overall programs, itself the and see new do difficult me

Joseph Gomes

out continuing the that due And partly the is one at coming is been pace. of of we've of of the you picture, look Just bit Or given resolution the you couple from overall still as are the questionable just last pace kind continuing of you was impact quarters awards things seen slower obviously, awards has maybe the the expected? awards past little year's resolution? kind it somewhat guys to guys the as a that but winning,

Shawn Mural

consistent quarter, we was QX. we that Yes, a X.X, with around the in saw in so had book-to-bill very right what

looking we're year-to-date, about about think awards. we when at billion $X.X So in

of to number of environment. the So in today, a expect we With announced that obviously, things a pick I'll continuation half back saw up that, of we the the we year. muted here say, absolutely that

Joseph Gomes

pipeline You about didn't here. talk

was some I on Can of term, kind think pipeline what the stood quarter? the a last us $XX pipeline, any longer term, at quarter color obviously. end some you the of give billion near the

Jeremy Wensinger

I there material change in was any don't pipeline. the think

is pursuit XX to for And position work of employees. you is running, This start that impacting of the get like our And said, not pipeline. team systems all in up the post what a execute integration. as subject right? be we to Joe, But being have of duration the phase, one RFP material not not to well a through in more I'll What the in start out honest, candidly, are excited a able getting them. if part customers, Shawn of real be think programs remarkable it acquired, can about, missions, ends no just That of business as as months think to CR pipeline XX constraints. impacting you I you the candidly, going spoke, opportunity be advance, diligently which culminated I'm most and the about just of in pursuit was in without change lot RFP. there's the being a there's the exceptionally job looking working everybody integration You're impacting to lot very And customer. done. up impacting now coming to of did you fog integration,

in horizontally opportunity across the a together Now is in the real that's putting and show that that start see the one will way we of that as it start going pipeline because it desperate that itself pursuits everything capabilities will to now previously company forward. seeing the we as companies, company, but reflect company's of the that that weren't in you the pipeline pursue combination now taking

right in going in what frame. the But more I'll pretty with more pipeline like the the consistent future. look it's So excited remains I'm to about the fall time talk it seen what in about now, you've past.

Operator

Sommer ]. next question Tobey from with [ SunTrust comes Our

Tobey Sommer

about revenue? revenue I What ask growth, with from the accompanying profit from puts wanted metrics outlook but restraining takes forward the expected that question the the your metrics are profit and slightly in line. your in that are higher perspective the to holding the better

Shawn Mural

Yes.

a in And tends I similarly in contingency around to we the workforce good East, Tobey, the it type in some that think, right? quarter, that with Middle globe, of bring So -- things lower the think, I strong margin. Asia support we XX% do those the saw continued it's Pacific. growth and of

like a top more programs some through. the it's of deliver that -- that. said, margin we're flow So line bit lower seeing course, And revenue, I of

Tobey Sommer

that trying awards of quarter in you the the quantity this of to you've if comment If a current quarter pretty have in you a and what extent the on strong were I decisions one. for fiscal for final because won to today and bag a already like your for -- I what your how ask sense what already one expect book-to-bill and seasonally much look the customers is maybe for contract guess, just that get contract ask you in and the could maybe quarter to in we expectations would is the

Shawn Mural

Yes.

right total for because opposed that it absolute stuff timing I to we always say there's the some we're with those of terms for encouraged say definitization, affected I'd I year the some of book-to-bill Obviously, sort way, is X.X with weighted like this of think think quarter back expecting. what we're half the for -- in that I'd recent, around things. the mentioned, we're as year

Tobey Sommer

Okay. -- And should model that slightly as revenue Just consider color faster trying a should that next for exiting the then being -- off? we year outlook how to about might anything that anything year, clip. some taper this better to at think get growth we look we there

Shawn Mural

Yes.

So I'll we came we go of back to kind as into the what year. said

TXA and [ So KC-XX ], actually really. wind they this programs like down quarter,

some just the tend say, little So And definitized. F-X, that to about. transition largely ATSS I'll I seeing but be Those being now, talked more us. then mentioned bit activities the will some behind award still that be activity we're a gradual, you're of we mix executing with it's that

be those back the are that in the think ramp year. but it will expect I a things somewhat So we here, this of half some modest of

Tobey Sommer

the me. Do protests to for next one for currently last any consider or or over have quarters? either recompetes you And several significant us

Shawn Mural

announced There's the of adjudication on. the material one that big nothing in of for other one balance the that we're on back today in is to no protest that was this recompetes, transition that that earlier the are Relative half on the items in waiting the we're nature. year year. in mean on we I Protests, F-X

Operator

ahead. with RBC Our from Markets. Capital comes next Please go question Herbert Ken

Kenneth Herbert

drill of to and Mike. Jeremy, Yes of Maybe, just some wanted Shawn good and morning. comments I your down Jeremy sort the optimization. on into first

where in a now you a more for different margin maybe little of the can you as I granularity only well. second think look into in about this little performance growth months, out, with can not of you contract opportunities, mix, then as margin beyond but areas in you those certainly terms or better investing As of and been about of granularity, maybe opportunities just few half as that but provide appreciate opportunity a next might sort year, think there transition you've see you better priorities year more maybe

Jeremy Wensinger

Happy to. I Ken. call. joining the And the thanks appreciate for question,

the this about of it's it it's to it whether information front comes optimization, -- do and commonality the really platform? how do -- the I you their as the easily to programs get to that procedures them consistently that optimize starts allow them are on the optimize And staffing the do performance think come on managers in I gets put ability whether have I I through as is front out this nuts is through the kind focused And down us I of recruiting, do as local across to really then our where front tried of put in But when just that travel across company. teams -- and to information giving of process that you're the program. through comes allows when the getting to I the that, program supply across to it in say, that, to at tools that you on the of you have How of them? come And down them? within VXX put visualization their capability fingertips they think through looking horizontally integration, way. the operating them everything is performance, leverage allows whether together. put organization to chain, bolts How

on I Anything worry in focused to implemented That is any have we'll into about system. bump lot of with this time ERP you to systems more them to which the so into on their do talking business, as -- With their just program what some level takes and they seeing of behind you mission the company, fall new whatever optimization associated giving those to that global we of readiness, the supply spend talk that we're hiccups in is call leverage successfully need program execute helps. to what are local X now need is things chain think in whether I without how on a the the washed it's integration. and footprint. whether giving forward the an we much success. resulting the to to program the it of pipeline fact a on successful spend And a the optimization an kind going that. it's starting as to them impact things about going Hope execute the that as about about regards become How are on going or then And things strong come and be would next teams that differentiators those to me really that whether having terms they allows to I margin strategy get our focus you're mix engineering the we that level, said, the I you. time is, that now company of impact margins at ability that on or it's has company flexibility, we're everything you're it this

Kenneth Herbert

XXXX then the from at Jeremy. the the progression is not think any second some step-up improvement looks of half. mix. think you it off the back year, think a that on of about beyond Can sort or maybe you that's you guessing margins Yes, sort second nice indications level, very to we year? premature? And is half how But too early as of next revised this today margins in half helpful. the is implies X% the in That's to give of progression continues least it but can this quite a like I'm first guidance lot year,

Shawn Mural

out this. I'd we margins, Relative thought to would. half like Yes. played first the it almost exactly the say

There seasonality don't not back would year had XXXX, type of par play be Is to of seeing it actions, about 'XX, year. contract think to in with seasonality We're that improvements, half you're where be due about get. I I I the in nature some nonrecurring we it the that back is things in that in on XX% out. tend we XX% at into would seeing of this said the right, XX%. that the those half, to terms beginning we that of we first again, coming It see. of productivity things what know to talk would of the probably some obviously, think would early, those that end half.

Kenneth Herbert

That's then finally, free Shawn and really just great. Thanks on cash, the I nice. said

the for Shawn, think you free year. puts can outlook of below down cash you for Maybe, year the the through half some to walk if the some takes in I improvement there. again, -- about the this get just think of Xx we and as second exiting the

Shawn Mural

Yes. Yes. Great. I'd say this.

timing the a of which, kind would of second commitments. the capital. the track half to here back working through in team year be I expect doing prepared -- the half about We've changes seen is everybody expect from second to, certain relative receipt We'll -- the did impact. that did customers some I'll and so that our in So to do, on little a of modest system implementation we that that impacts remarks cycles out also payment of what we working definitization, quarter, those have had you a is in a had deployed of say, in consume which specifically of the meet the get bit course, we in couple we the to talk also startups, expect

Operator

from next question comes JMP. Our Citizens Walsh with Trevor

Trevor Walsh

interested like the take mentioned broad-based geopolitical kind you just I'd environment to starting maybe and a kind Shawn it's that reading see the of complexities may just going things of different will? see you, you of, broadly better of of from just you where coming areas adjust Jeremy, some again, be the deal on kind maybe and world, with different contingency in fairly you support in how if resources and geo perspective. hear to sounds reposition your kind where be can you serve kind where your based of the customers tales to with on assets revenues or

Jeremy Wensinger

call. No. And thanks the question, joining and for Thank the appreciate I you.

the if X and I is -- the us where key for in spends true customer areas that, absolutely reactive that Middle aligned PACOM, where the existing global it's think footprint on be billion its differentiation, the amount with most a I I $XXX PACOM. a on you think needs a I important afford flexibility as at gave what INDOPACOM news areas the Those about was into look areas differentiator. to if basis. that that. into our you when to East are remarks the hear we government footprint move and to money are are think have And -- and plus, we you real-time understand tremendous earlier, And where and X of the we you

to to where to key needs when that within and what the as of around optimization, in the is so we to them making the needs. that us its them be responsive of allows with it entirety consequence, I and have the at well us continues company of aware look and customer. at that bringing they spend bear bringing ready is the is coming which emissions going way in the to those as entirety reactive we so calories, of company for are customer And company available presence be its for XXX% to a the serve are we look aligned those The to government funding what our to, footing back it to profiles. And time keep is

Trevor Walsh

-- more to around with us the of you context to able just -- see Maybe your you in in obviously, little and mentioned GMR about bit see there? optimization maybe Jet VX especially but where if a components, kind you're you switching unit kind little maybe starting size prepared around give out there. where whatnot. the itself that Can And the you a it's then Can remarks expanding the detail you the context some given Army, of gears just other you contract. in of mentioned the to

your great. that particular would be or Just give outlook me on that contract

Jeremy Wensinger

I have Sure, I'm happy that Jet mean to. toehold on excited VX. a we

it proven a it's a the hear work capability, phase, it past excited into which now face. I'm study you We're -- which lot. is think does is that it about. wonderful. think about But This about past I is it's It's it, You're that this what right? I over over the a our LRIP, real time. have problem and solving putting in demonstrating where in a that would is phase you're vehicles, call customers you're -- it again that like

capability. is of it vehicles next moves aircraft as from to goal these unleashes Our have that to the you of And benefit this program of a a it then and record. this program record, thousands hundreds program move will that fact of to

when to continue to it past that record ready truly it be Jet -- a frame what power during very goal form continue consistently to down to with comes becomes and implement in and continue and to to becomes we've will this unit, is factor, which size, for asset VX invested the comes enhance the them to weight work Our that that to that invest that time of within capability and opportunity program for we solution.

Trevor Walsh

prepared think kind the half, appreciate Maybe just are terms give I it's just bit the year-over-year? just in balance how of some in of some should color around sequential one half gave current backlog But the Can call that year rather Or second this in of give on you, whether guardrails, those little compare, you maybe the some of just one just color helpful. us be growth of the us last or remarks coming a of track you contracts a give kind overall, where XQ. on you Shawn. that in basis of just associated backlog would with first us the for in -- back kind the and for

Shawn Mural

a X, of we I'll around that kind about meaning in is expect, readiness award talked back activity will get things contract, right end the say, Trevor, to the that the XXXX. book-to-bill we of and think binary on ramp I put when contract half set,

year very bookings for activity anticipated set. So modest this that

we've couple continue other in got and footprint The wonderful the Middle our grow the mentioned a expect both a -- we awards globe we to the there we in activities do that globe we around Jeremy mentioned, are some East. around see that that remiss job. to I to the backlog didn't the be quarter, you'll on-contract things the advantage -- INDOPACOM are have distributed network million needs. if added and do our I'd teams of that to other the year of we'll of in had meet $XXX the other half again takes growth highlight expect customers' back the over

And so activities those see today. as we'll things that we continue to well some as the of highlight

QX. obviously expect So in in increase and specifically I to bookings do then QX

Operator

Stifel. [Operator Bert question Subin from Our comes next with Instructions]

Bert Subin

the East. just progression some the kick comments the sequential what's better in to just margin understand on been off, Maybe want to of Middle relative to happening in I

So the quarter. in you saw growth XX%

expect and in part, think that's XX% Do lower margin of just in first the I what's cost-plus the slow gets then grow that continue it by quarter, driving materially work that you is I been higher Or region. and margin to a aided been after think, that's of expect mix similarly do large the actions? accretive? half other to and just that contract second becomes you to in

Shawn Mural

Yes.

it, latter to about the mean the sort the watch stuff. that think we of situations I evolving so news are is I way as right? exactly and the ever think

would it try of deliver. we predict we any can focused on to be control So outcomes what those things. that terms premature of We're in to

it from that as I around so the Jeremy on maybe things growth enterprise bit into did a all of yes, about of you year. But those we're And productivity of to optimization, and in the improvements the actions, drive that's from XX% think back half moving some carrying expect cadence programs the something here about that the sequentially. improvements, so to and contract talked forward little the

Bert Subin

the is process. follow-up looking contract give can bid? task Is then the you this further a be that under just an for a readiness you And color opportunity? warfighter readiness put contract, that us we you get this on to as was multi-award this orders little win next-generation Or incremental more so there? into out to is the contract And a should

Shawn Mural

Yes.

single we about name to we of when working support a notable, the And we're forward. It the Bert. to is talk right we of because so is will. customer today more kind it go can very to we're liberty now, excited wanted contract course, We with not it, it highlight So at award the that customer. and we're through as off

Jeremy Wensinger

referenced I of a is it program And is the available companies a now think example other we that. it not to of perfect that been the the the and would very combination shows have wind addressable reason the companies became individually. But with

purpose was so of highlighting today. it that And the

Bert Subin

Can Shawn, guiding of expense you to I interest $XX better? help think then us where which interest million like first you, that the million you where would you're you're on on one in just understand in but more side the to X% a And And and second said just $XX cash half, things. for interest did interest you like in sounds that What's below the term that. -- you're settle is, structure should the out? XX% based rate, side? it be going your on half,

Shawn Mural

Yes.

$X.X-$X.X somewhere we're the the there, did, the in think I $X.X with around right right specifically. interest -- so around -- I we Bert million million expense that think refinancing

$X continuing assumptions the the think restructure we've has a changed see the team in to reduction expense financing job little I interest in the debt bit year. So that total for you wonderful a and about million with and the done

could for markup or remind of one delta there to down the you the are year. to fees of the you're is some $XXX million that it's deltas think also what I in the seeing. are I'll be total there, which

Bert Subin

one just you. for more, Jeremy, And

about go talked chapter. from about VXX, for of phase. going sort you into see at on you maybe X board #X optimization you've appreciate the this up months you've of do point. as what to been gotten only But I next as at maybe sort as integration improvement speed to area You the

Jeremy Wensinger

It think see way, biggest not us, the I local for said, during we And that local the think came when ability I and into on have to lot move like do they flows seamless When and the directions. side. everything access all pipeline that really And that's blocking applied the us the The looking company understanding thinking that to everything the optimize and desperate. them we where level. said, as it opportunity going integration, blocking move tackling. visibility might that information the required you're capabilities because more we are other from that through differentiators thinking location travel can opportunity the when information the together at us looking that, about is and programs you're flows have be to that performance I is for too. the both one shaping to where more not execution. doing to to pipeline. another allows levers optimization, is really the is at giving location need I level overall It execution about start at tackling. at into visualizing you're that like improve have today, they at it a now that -- give for to companies the execution that to it a are level, you're the forward pipeline, we I were metrics execution that is have allowing data, you for also of people and And the integration, better about, to

Operator

over like closing I back our the question-and-answer Mr. for This remarks. to would to session. any conference Wensinger Jeremy concludes turn

Jeremy Wensinger

be drive as forward, Thanks. to have forward. the Megan, you we today. excited to exceptionally for And [ opportunity call questions go for thank I'm the thank to this look you, you this working I'm your and everybody, team ] been this and to and here. today. and to has forward you just The porting for with thank warm, be I company excited on coming today, with welcome

V2X (VVX) 6 Aug 242024 Q2 Earnings call transcript