Revenue Segmentation - The Aviation segment accounted for 63% of consolidated revenues in 2023, up from 51% in 2021, indicating a significant growth trend [23]. - The Fleet segment contributed 37% to consolidated revenues in 2023, down from 49% in 2021, reflecting a shift in revenue distribution [24]. - The Aviation segment reported a 33% increase in annual revenue, totaling $544 million in 2023, driven by a 29% increase in distribution revenue and a 46% increase in repair revenue compared to the prior year [117]. - Fleet segment revenue from commercial customers increased by 45% in 2023, with commercial revenues accounting for 48% of total Fleet segment revenue, up from 40% in 2022 [119]. - Revenues increased by $191.0 million, or 29%, in 2023 compared to 2022, driven by growth in the Aviation segment ($135.9 million) and Fleet segment ($55.1 million) [120]. Financial Performance - Total revenues for 2023 reached $860,488,000, a 28.5% increase from $669,448,000 in 2022 [178]. - Net income for 2023 was $39,134,000, compared to $28,059,000 in 2022, reflecting a 39.5% growth [178]. - Basic earnings per share for continuing operations increased to $3.05 in 2023 from $2.09 in 2022, a rise of 46.4% [178]. - Operating income rose by $34.4 million, or 64%, in 2023, with the Aviation segment contributing $34.8 million and the Fleet segment $7.3 million [124]. - Comprehensive income for 2023 was $36,298,000, compared to $33,203,000 in 2022, indicating a 6.3% increase [180]. Debt and Cash Flow - The company had $429 million of total debt outstanding as of December 31, 2023, which may increase vulnerability to adverse economic conditions [80]. - Cash used in operating activities was $21.8 million in 2023, a decrease from cash provided of $8.1 million in 2022, mainly due to higher inventory purchases [137]. - Cash used in investing activities rose by $233.3 million in 2023, primarily due to cash paid for acquisitions totaling $218.6 million [138]. - Cash provided by financing activities was $265.0 million in 2023, significantly up from cash used of $5.7 million in 2022, largely due to a public offering generating $129.1 million [139]. - Interest expense increased by approximately $13.2 million, or 74%, in 2023, primarily due to higher debt facility borrowings and interest rates [125]. Acquisitions and Growth Strategy - The company completed the acquisition of Precision Fuel Components in February 2023 and Desser Aerospace in July 2023, enhancing its MRO services and international expansion capabilities [111]. - The company is focused on growth through acquisitions, aiming to add new products and capabilities, which presents both opportunities and risks [53]. - The company expects continued growth in the Aviation segment due to new initiatives and recent acquisitions, contributing to a favorable outlook for 2024 [118]. Operational Risks - Supply chain disruptions and geopolitical uncertainties pose risks to business operations and expenses, potentially impacting revenue and profits [51]. - Cybersecurity risks pose potential threats to operations and financial results, despite existing risk management programs [77]. - The company faces intense competition in the aviation and vehicle parts industries, which could harm its business [59]. - Global economic and political conditions may adversely affect revenues, particularly in foreign markets [62]. - Future environmental regulations may incur substantial costs, potentially affecting financial position and operations [75]. Employee and Workforce - Approximately 1,200 employees were employed as of December 31, 2023, highlighting the company's workforce size [32]. - The company emphasizes a commitment to inclusion and diversity, with initiatives such as the VSE Inclusion & Diversity Council formed in 2020 [38]. - The company has implemented a Health, Environmental and Safety Program to minimize risks of injury or illness to employees [33]. Asset Management - As of December 31, 2023, goodwill and intangible assets accounted for 28% and 9% of total assets, respectively [57]. - The company evaluates inventory carrying value periodically, considering physical condition, sales patterns, and expected future demand [155]. - Goodwill is assessed for impairment at least annually, with the fair value of reporting units significantly exceeding their carrying values as of the fourth quarter of 2023 [157]. Regulatory Environment - The company is subject to numerous government regulations, which could expose it to liabilities or work loss [69]. - The company’s Chief Information Security Officer (CISO) has over 20 years of experience in information technology and security, overseeing the company's cybersecurity risk management [87].

VSE Corporation (NASDAQ:VSEC) Q4 2023 Earnings Conference Call March 7, 2024 8:30 AM ET Company Participants Michael Perlman - Vice President of Investor Relations and Communications John Cuomo - President and Chief Executive Officer Steve Griffin - Chief Financial Officer Conference Call Participants Jeff Van Sinderen - B. Riley Josh Sullivan - The Benchmark Company Louie DiPalma - William Blair Samuel Struhsaker - Truist Securities Operator Good morning and welcome to VSE Corporation Fourth Quarter and 20 ...

V S E c o r p . c o mFourth Quarter and Full Year 2023 Results Conference Call March 7, 2024 Forward-Looking Statements This presentation contains statements that, to the extent they are not recitations of historical fact, constitute "forward looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Exchange Act. All such statements are intended to be covered by the safe harbor provisions for forward-looking statements cont ...

Financial Performance - Total revenues for Q4 2023 reached $235.3 million, a 37% increase compared to Q4 2022[3] - GAAP net income for Q4 2023 was $12.8 million, reflecting a 62% increase year-over-year[3] - Adjusted EBITDA for the full year 2023 was $113.8 million, a 45% increase compared to 2022[4] - Net income from continuing operations for Q4 2023 was $12,834,000, a 62.1% increase from $7,916,000 in Q4 2022[16] - Adjusted EBITDA for Q4 2023 reached $31,444,000, reflecting a 45.7% increase compared to $21,582,000 in Q4 2022[16] - Free cash flow for Q4 2023 was $20,071,000, compared to $8,461,000 in Q4 2022[18] Segment Performance - The Aviation segment generated record revenue of $153.7 million in Q4 2023, up 43% from the previous year[6] - The Fleet segment reported revenue of $81.6 million in Q4 2023, a 26% increase year-over-year, with commercial revenue growing 72%[7] - Operating income in the Aviation segment for Q4 2023 was $18,771,000, a 52.3% increase from $12,327,000 in Q4 2022[17] - Adjusted EBITDA for the Aviation segment in Q4 2023 was $23,921,000, a 51.9% increase from $15,751,000 in Q4 2022[17] - The Fleet segment's operating income for Q4 2023 was $8,973,000, a 59.5% increase from $5,625,000 in Q4 2022[17] Cash Flow and Debt - The company generated $43 million of operating cash flow and $30 million of free cash flow in the second half of 2023[2] - As of December 31, 2023, VSE had $216 million in cash and total net debt outstanding of $422 million[10] - Total net debt as of December 31, 2023, was $421,576,000, up from $285,995,000 in 2022[21] - The company reported a net leverage ratio of 3.7x for both 2023 and 2022[21] Capital Expenditures and Guidance - Capital expenditures for the year 2023 totaled $18,666,000, compared to $11,212,000 in 2022[18] - VSE's 2024 guidance includes a 24% to 28% revenue growth for the Aviation segment and a 13% to 17% growth for the Fleet segment[11] Acquisitions and Sales - VSE announced the acquisition of Turbine Controls, Inc. for approximately $120 million, expected to close in Q2 2024[8] - The company completed the sale of its Federal and Defense segment assets for $44 million, with associated one-time transaction expenses expected between $6 million and $8 million[8] Reporting and Compliance - The company plans to file its Form 10-K with the SEC on or about March 7, 2024, detailing its fourth quarter and full year 2023 results[28]

VSE Corporation (NASDAQ:VSEC) Q3 2023 Earnings Conference Call November 2, 2023 8:30 AM ET Company Participants Michael Perlman - VP, IR and Communications John Cuomo - President and CEO Steve Griffin - CFO Conference Call Participants Louie DiPalma - William Blair Michael Ciarmoli - Truist Josh Sullivan - The Benchmark Company Jeff Van Sinderen - B. Riley Operator Good morning and welcome to the VSE Corporation Third Quarter 2023 Results Conference Call. All participants will be in listen-only mode. [Opera ...

V S E c o r p . c o mThird Quarter 2023 Results Conference Call November 2, 2023 Forward-Looking Statements This presentation contains statements that, to the extent they are not recitations of historical fact, constitute "forward looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Exchange Act. All such statements are intended to be covered by the safe harbor provisions for forward-looking statements contained in the ...

Financial Performance - Total revenues for Q3 2023 reached $231.4 million, a 38.3% increase from $167.4 million in Q3 2022[14] - Operating income for Q3 2023 was $25.3 million, up 67.1% from $15.1 million in Q3 2022[14] - Net income for Q3 2023 was $9.6 million, slightly higher than $9.4 million in Q3 2022, resulting in earnings per share of $0.64 compared to $0.74 in Q3 2022[14] - Comprehensive income for Q3 2023 was $11.2 million, down from $14.8 million in Q3 2022[16] - Net income for the nine months ended September 30, 2023, was $27.5 million, an increase of 18.5% compared to $23.2 million for the same period in 2022[24] - Revenue for the three months ended September 30, 2023, was $231,353,000, representing a 21.4% increase from $190,710,000 in 2022[42] - Income from continuing operations for the nine months ended September 30, 2023, was $31,377,000, up 76.5% from $17,782,000 in 2022[42] - Revenues for the three months ended September 30, 2023, increased by 38% to $231.4 million compared to $167.4 million in the same period of 2022, driven by growth in the Aviation and Fleet segments[92] - The company reported a 26% increase in revenues for the nine months ended September 30, 2023, totaling $625.2 million, compared to $497.5 million in the same period of 2022[92] Assets and Liabilities - Cash and cash equivalents increased significantly to $20.7 million from $0.3 million as of September 30, 2022[13] - Total assets grew to $1.34 billion, up 34.3% from $999.8 million at the end of 2022[13] - Current liabilities increased to $252.1 million, compared to $224.6 million at the end of 2022, reflecting a rise in accounts payable and current portion of long-term debt[13] - Long-term debt rose to $441.8 million from $276.3 million at the end of 2022, indicating increased leverage[13] - Total stockholders' equity increased to $609.5 million as of September 30, 2023, up from $449.5 million at the end of 2022, representing a growth of 35.6%[21] - Long-term debt as of September 30, 2023, was $460,770,000, an increase from $286,300,000 at the end of 2022[59] - As of September 30, 2023, the company had outstanding borrowings of $182.5 million under its term loan and $281.0 million under its revolving facility, with total borrowings increasing by approximately $174.9 million for the nine months ended September 30, 2023[113] Acquisitions and Investments - The company completed the acquisition of Desser Aerospace for a preliminary cash consideration of $133.8 million, which included a working capital adjustment of $9.5 million[36] - Desser Aerospace contributed $25.1 million in revenue and $3.2 million in operating income for the three months ended September 30, 2023[41] - The acquisition of Precision Fuel Components, LLC was completed for $11.7 million, enhancing the company's MRO capabilities[34] - The acquisition of Honeywell Fuel Control Systems was completed for a purchase price of $105 million, funded by borrowings under the revolving credit facility[45] - The preliminary allocation of the purchase price for the Honeywell acquisition included $12 million in inventory and $73 million in goodwill[46] - Total liabilities assumed in the Desser Aerospace acquisition were valued at $34.8 million, resulting in net assets acquired of $99.1 million[39] - The company incurred $3.0 million in acquisition-related expenses for Desser Aerospace during the nine months ended September 30, 2023[40] - The company incurred $0.3 million in acquisition-related expenses during the three and nine months ended September 30, 2023[47] Cash Flow and Dividends - Cash flows from operating activities resulted in a net cash used of $49.8 million for the nine months ended September 30, 2023, compared to a net cash used of $4.2 million in the same period of 2022[24] - The company reported a decrease in cash and cash equivalents to $20.8 million at the end of the period, down from $478,000 at the beginning of the period[24] - The company paid cash dividends totaling $3.9 million or $0.30 per share during the nine months ending September 30, 2023[120] - The company believes its existing cash balances and cash flows from operations will provide sufficient liquidity for business operations and capital expenditures over the next twelve months[116] Segment Performance - Aviation segment revenue reached $152.4 million for the three months ended September 30, 2023, representing a 48% year-over-year increase[88] - Fleet segment revenue was $79.0 million for the three months ended September 30, 2023, up from $64.8 million in the same period of 2022, marking a 22% increase[72] - The Fleet segment's operating income increased by 30% to $8.5 million for the three months ended September 30, 2023, compared to $6.5 million in the prior year[105] - The Aviation segment reported revenues of $152.4 million for the three months ended September 30, 2023, a 48% increase from $102.6 million in the prior year, primarily due to contributions from the Desser Aerospace acquisition and strong demand in global commercial air travel[100] - The Fleet segment's revenues increased by 22% to $79.0 million for the three months ended September 30, 2023, compared to $64.8 million in the same period of 2022, with commercial customer revenue growing by 47%[105] Tax and Interest - The effective tax rate for continued operations was 27.9% for the three months ended September 30, 2023, compared to 25.2% for the same period in 2022[80] - Interest expense for the three months ended September 30, 2023, increased by 75% to $8.5 million, primarily due to higher debt facility borrowings and interest rates[98] - The effective tax rate for continuing operations was 27.9% for the three months ended September 30, 2023, compared to 25.2% for the same period in 2022, influenced by transaction costs related to the Desser Aerospace acquisition[99] Future Outlook - The company plans to pursue the divestiture of its Federal and Defense segment to focus on long-term strategic growth areas[83] - The maximum Total Funded Debt to EBITDA Ratio is set to decrease to 4.75x by December 31, 2023, and further to 4.00x by June 30, 2025[115] - The estimated future annual amortization expense related to intangible assets is projected to total $118.9 million[75] - The company has not experienced any material changes to its other obligations and commitments since its last Annual Report[121] - There are no off-balance sheet arrangements that are likely to materially affect the company's financial condition[123]

VSE Corporation (NASDAQ:VSEC) Q2 2023 Earnings Conference Call July 27, 2023 8:30 AM ET Company Participants Michael Perlman - Vice President, Investor Relations and Communications John Cuomo - President and Chief Executive Officer Steve Griffin - Chief Financial Officer Conference Call Participants Ken Herbert - RBC Louie DiPalma - William Blair Jeff Van Sinderen - B. Riley Securities Peter Osterland - Truist Securities Operator Welcome to the VSE Corporation Second Quarter 2023 Results Conference Call. At ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q 6348 Walker Lane Alexandria, Virginia 22310 (Address of Principal Executive Offices) (Zip Code) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Delaware 54-0649263 For the quarterly period ended June 30, 2023 Registrant's Telephone Number, Including Area Code: (703) 960-4600 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Pe ...

V S E c o r p . c o mSecond Quarter 2023 Results Conference Call July 2023 Forward-Looking Statements This presentation contains statements that, to the extent they are not recitations of historical fact, constitute "forward looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Exchange Act. All such statements are intended to be covered by the safe harbor provisions for forward-looking statements contained in the Priva ...