PART I - Financial Information This section presents the company's unaudited financial statements and management's analysis of its financial performance and condition [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements for Q1 2023, highlighting significant year-over-year increases in revenue and net income Financial Metric | Financial Metric | March 31, 2023 | March 31, 2022 | | :--- | :--- | :--- | | **Total Revenues** | $255.4 million | $231.2 million | | **Operating Income** | $17.9 million | $11.9 million | | **Net Income** | $9.1 million | $6.2 million | | **Diluted EPS** | $0.71 | $0.49 | Balance Sheet Item | Balance Sheet Item | March 31, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Total Assets** | $1,044.4 million | $999.8 million | | **Total Liabilities** | $587.1 million | $550.3 million | | **Total Stockholders' Equity** | $457.3 million | $449.5 million | - The company operates through three segments: Aviation, Fleet, and Federal and Defense, providing aftermarket products and services for transportation assets to commercial and government markets[24](index=24&type=chunk) - On February 1, 2023, the Aviation segment acquired Precision Fuel Components, LLC for a preliminary cash purchase price of **$11.8 million** to expand its MRO service capabilities[28](index=28&type=chunk) - Subsequent to the quarter end, on May 1, 2023, VSE entered into a definitive agreement to sell its Federal and Defense Segment for up to **$100 million**[58](index=58&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=19&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management provides an analysis of the company's financial condition and operational results for Q1 2023, detailing revenue and income drivers [Consolidated Results of Operations](index=20&type=section&id=Consolidated%20Results%20of%20Operations) This section details the company's consolidated financial performance, highlighting key revenue and income trends Consolidated Financial Performance (in thousands) | Metric | Q1 2023 | Q1 2022 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | **Revenues** | $255,433 | $231,239 | $24,194 | 10.5% | | **Operating Income** | $17,933 | $11,914 | $6,019 | 50.5% | | **Net Income** | $9,117 | $6,244 | $2,873 | 46.0% | - The increase in revenue was primarily driven by growth in the Aviation segment (**$19.9 million**) and Fleet segment (**$8.3 million**), partially offset by a decrease in the Federal and Defense segment (**$4.1 million**)[68](index=68&type=chunk) - Interest expense increased by **65.6%** to **$6.0 million** due to higher average interest rates on outstanding borrowings[68](index=68&type=chunk)[71](index=71&type=chunk) [Segment Operating Results](index=20&type=section&id=Segment%20Operating%20Results) This section provides a detailed breakdown of revenue and operating income across the company's business segments Segment Revenue | Segment | Q1 2023 Revenue | Q1 2022 Revenue | % Change | | :--- | :--- | :--- | :--- | | Aviation | $113.2M | $93.3M | 21% | | Fleet | $75.4M | $67.0M | 12% | | Federal and Defense | $66.8M | $70.9M | (6)% | Segment Operating Income (Loss) | Segment | Q1 2023 Operating Income (Loss) | Q1 2022 Operating Income (Loss) | % Change | | :--- | :--- | :--- | :--- | | Aviation | $15.7M | $7.6M | 105% | | Fleet | $5.9M | $6.4M | (8)% | | Federal and Defense | ($0.6M) | ($0.7M) | (16)% | - Aviation segment growth was driven by a **14%** increase in distribution revenue and a **43%** increase in repair revenue, benefiting from the recovery in global commercial air travel[74](index=74&type=chunk) - Fleet segment operating income decreased primarily due to costs associated with a newly launched e-commerce fulfillment and distribution center[79](index=79&type=chunk) [Bookings and Funded Backlog](index=24&type=section&id=Bookings%20and%20Funded%20Backlog) This section details the Federal and Defense segment's bookings and funded contract backlog Federal and Defense Segment (in millions) | Federal and Defense Segment (in millions) | Q1 2023 | Q1 2022 | | :--- | :--- | :--- | | **Bookings** | $61 | $92 | | **Funded Contract Backlog** | $185 | $198 | - For the three months ended March 31, 2023, Federal and Defense segment bookings decreased **34%** year-over-year, and total funded backlog decreased **7%** year-over-year[84](index=84&type=chunk) [Liquidity and Capital Resources](index=24&type=section&id=Liquidity%20and%20Capital%20Resources) This section analyzes the company's cash flows, debt, and available credit, detailing its liquidity and capital structure Cash Flow Summary (in thousands) | Cash Flow Summary (in thousands) | Q1 2023 | Q1 2022 | | :--- | :--- | :--- | | Net cash used in operating activities | $(48,674) | $(18,174) | | Net cash (used in) provided by investing activities | $(14,594) | $1,393 | | Net cash provided by financing activities | $63,322 | $16,761 | - The increase in cash used in operating activities was primarily due to greater use of cash for inventory purchases[88](index=88&type=chunk) - As of March 31, 2023, the company had **$97.5 million** in term loan borrowings, **$256.5 million** in revolving loan borrowings, and **$93 million** of unused bank loan commitments[86](index=86&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risks](index=26&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risks) The company's primary market risk is interest rate risk associated with its variable-rate bank loan agreement, mitigated by interest rate hedges - The company's main market risk exposure is to variable interest rates on its bank loan agreement[96](index=96&type=chunk) - VSE utilizes interest rate hedges to fix the rate on a portion of its outstanding borrowings to mitigate risks from interest rate movements[96](index=96&type=chunk) [Item 4. Controls and Procedures](index=26&type=section&id=Item%204.%20Controls%20and%20Procedures) The company's disclosure controls and procedures were deemed effective as of March 31, 2023, with no material changes to internal control over financial reporting during the quarter - Management, including the CEO and CFO, concluded that as of March 31, 2023, the company's disclosure controls and procedures were effective[102](index=102&type=chunk) - No changes were made during the quarter that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[103](index=103&type=chunk) PART II - Other Information This section provides other essential information, including legal proceedings, updated risk factors, and regulatory exhibits [Item 1. Legal Proceedings](index=27&type=section&id=Item%201.%20Legal%20Proceedings) The company reported no material legal proceedings during the period - The company reports no legal proceedings for the quarter[105](index=105&type=chunk) [Item 1A. Risk Factors](index=27&type=section&id=Item%201A.%20Risk%20Factors) This section updates the risk factors from the 2022 Annual Report on Form 10-K by adding a new risk related to business divestitures - A new risk factor was added regarding the potential adverse effects of business divestitures, which may require significant time and resources, disrupt business, and result in losses or continued financial involvement[107](index=107&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=27&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not purchase any of its own equity securities during the quarter ended March 31, 2023 - The company did not purchase any of its equity securities during the period covered by the report[108](index=108&type=chunk) [Item 6. Exhibits](index=28&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including CEO and CFO certifications and XBRL data files - The exhibits filed with the report include CEO and CFO certifications (Exhibits 31.1, 31.2, 32.1, 32.2) and XBRL instance documents[110](index=110&type=chunk)

VSE Corporation (NASDAQ:VSEC) Q1 2023 Earnings Conference Call May 2, 2023 8:30 AM ET Company Participants Michael Perlman - VP of Investor Relations and Communications John Cuomo - President and Chief Executive Officer Steve Griffin - Chief Financial Officer Conference Call Participants Michael Ciarmoli - Truist Securities Ken Herbert - RBC Capital Markets Louie DiPalma - William Blair Jeff Van Sinderen - B. Riley Securities Josh Sullivan - The Benchmark Company Operator Greetings, and welcome to the VSE C ...

V S E c o r p . c o m First Quarter 2023 Results Conference Call May 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 Privat ...

VSEC Fourth Quarter and Full-Year 2022 Results Conference Call March 2023 V S E c o r p . c o m 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 c ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Fiscal Year Ended December 31, 2022 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period from _____ to _____ Commission File Number: 000-3676 VSE CORPORATION (Exact Name of Registrant as Specified in its Charter) Delaware 54-0649263 (State or Other Jurisdictio ...

VSE Corporation (NASDAQ:VSEC) Q4 2022 Earnings Conference Call March 9, 2023 8:30 AM ET Company Participants Noel Ryan - IRC John Cuomo - Chief Executive Officer and President Steve Griffin - Senior Vice President and Chief Financial Officer Conference Call Participants Louie DiPalma - William Blair Austin Moeller - Canaccord Jeff Sinderen - B. Riley Securities Joshua Sullivan - the Benchmark Company Operator Good morning. And welcome to the VSE Corporation Fourth Quarter Results Conference Call. At this ti ...

VSEC Fourth Quarter and Full-Year 2022 Results Conference Call March 2023 V S E c o r p . c o m 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 c ...

VSE Corporation (NASDAQ:VSEC) Q3 2022 Results Conference Call October 27, 2022 8:30 AM ET Company Participants Noel Ryan - Head of IR John Cuomo - CEO and President Steve Griffin - SVP & CFO Conference Call Participants Kenneth Herbert - RBC Capital Markets Michael Ciarmoli - Truist Securities Austin Moeller - Canaccord Michael Louie DiPalma - William Blair Joshua Sullivan - the Benchmark Company Jeff Van Sinderen - B. Riley Securities Operator Greetings, and welcome to the VSE Corporation Third Quarter 202 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period from _____ to _____ Commission File Number: 000-03676 Delaware 54-0649263 Registrant's Telephone Number, Including Area Code: (703) 960-4600 | Securities registered pursuant ...

Financial Performance - Total revenue increased by 38% year-over-year, reaching $241.7 million in 2Q22 compared to $175.1 million in 2Q21[8, 15] - Adjusted EBITDA increased by 21% year-over-year, reaching $22.9 million in 2Q22 compared to $18.9 million in 2Q21[8, 15] - Adjusted Net Income increased by $1.9 million year-over-year[8] - Aviation segment revenue increased by 121% year-over-year, reaching $105 million in 2Q22 compared to $47.5 million in 2Q21[9, 23] - Fleet segment revenue increased by 12% year-over-year, reaching $64.7 million in 2Q22 compared to $58.1 million in 2Q21[9, 26] - Federal & Defense segment revenue increased by 3% year-over-year, reaching $72.0 million in 2Q22 compared to $69.5 million in 2Q21[9, 27] Segment Highlights - Aviation distribution revenue increased by 177% year-over-year and repair revenue increased by 37% year-over-year[9, 21] - Fleet commercial revenue increased by 48% year-over-year, driven by e-commerce fulfillment[9] - Commercial sales represent approximately 40% of Fleet segment revenue[6, 26] Balance Sheet - Net debt increased to $308 million in 2Q22 from $284 million in 4Q21[31] - Free cash flow was $(3.4) million in 2Q22[31]