Financial Data and Key Metrics Changes - VSE reported total revenue of $168.7 million, a decrease of 10.8% year-over-year, primarily driven by declines in the Aviation and Federal & Defense segments [19][25] - Adjusted net income was $6.6 million, or $0.60 per diluted share, with adjusted EBITDA of $17.2 million, down 27.1% year-over-year [20][25] - Free cash flow generated was $14.9 million, a significant increase from a negative $2.7 million in the prior year period, contributing to over $13 million in debt reduction [18][25] Business Line Data and Key Metrics Changes - Aviation segment revenue declined 31% year-over-year to $32.2 million, impacted by lower commercial aviation activity [8][28] - Fleet segment revenue increased 32.4% year-over-year to $71.2 million, with commercial sales growing by 67% [30][12] - Federal & Defense segment revenue decreased 18.7% year-over-year to $65.3 million, but operating income increased by 33% [32][26] Market Data and Key Metrics Changes - Revenue from core commercial customers fell 32% year-over-year to $40.2 million, while revenue from Federal & Defense customers was relatively flat, down 1% year-over-year [19][20] - Total Federal & Defense segment bookings decreased 37.5% year-over-year to $45 million, with a decline in funded backlog attributed to the expiration of a large contract [33][34] Company Strategy and Development Direction - The company is focused on new business development, reporting $116 million in new awards in the Federal & Defense Services Group, up from $32 million in the first half of 2019 [10] - VSE is rightsizing its business and cost structure, expecting to remove approximately $13 million in annualized costs by the end of Q3 2020 [14][15] - The company aims to concentrate on higher growth components and engine accessory MRO and parts distribution to support the Commercial and Business Aviation markets [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to emerge stronger from the current crisis, emphasizing a balanced customer product and service portfolio [40] - The company anticipates sequential quarter-over-quarter growth in the aviation segment revenue and earnings during Q3 2020 compared to Q2 [21][55] - Management highlighted the importance of maintaining balance sheet discipline while continuing to pay dividends and preserve capital for high-return growth opportunities [17][36] Other Important Information - The company completed the sale of assets related to CT Aerospace for full book value, aligning with its strategic focus on higher-margin businesses [16] - As of June 30, 2020, VSE had $184 million in cash and unused commitments available under its revolving credit facility [35] Q&A Session Summary Question: Update on Aviation trends and recovery - Management noted that MRO businesses benefited from backlog in April, with recovery trends improving in June and July, particularly in general aviation [44][45] Question: Inventory and product velocity in the marketplace - Management indicated that most inventory is OEM proprietary and not heavily stocked by customers, reducing destocking risks compared to competitors [48] Question: New bookings and bidding activity in Federal & Defense - Management highlighted a 30% increase in contract bidding activity and emphasized revitalizing the team to enhance capabilities and win more business [49][50] Question: Competitive environment in Aviation - Management observed opportunities arising from competitors focusing on core businesses, allowing VSE to gain market share in distribution [61] Question: E-commerce growth in Fleet segment - Management attributed growth in the Fleet segment to solid execution and a shift towards e-commerce fulfillment strategies [64] Question: Impact of USPS funding on business outlook - Management expressed confidence in the relationship with USPS, noting it remains a significant customer, contributing approximately 22% of consolidated revenue [83]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q VSE CORPORATION (Exact Name of Registrant as Specified in its Charter) | Delaware | 54-0649263 | | --- | --- | | (State or Other Jurisdiction of | (I.R.S. Employer | | Incorporation or Organization) | Identification No.) | 6348 Walker Lane Alexandria, Virginia 22310 (Address of Principal Executive Offices) (Zip Code) (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the qu ...

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 Quarter Ended March 31, 2020 Commission File Number: 0‑3676 VSE CORPORATION (Exact Name of Registrant as Specified in its Charter) | DELAWARE | 54-0649263 | | --- | --- | | (State or Other Jurisdiction of | (I.R.S. Employer | | Incorporation or Organization) | Identification No.) | 6348 Walker Lane Alexandria, Virginia 22310 (Addres ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 DELAWARE 54-0649263 ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (State or Other Jurisdiction of Incorporation or Organization) (I.R.S. Employer Identification No.) 6348 Walker Lane For the Fiscal Year Ended December 31, 2019 Commission File Number: 0‑3676 VSE CORPORATION Alexandria, Virginia 22310 (Exact Name of Registrant as Specified in its Charter) (Address of Principal Execu ...

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q For the Quarter Ended September 30, 2019 Commission File Number: 0‑3676 VSE CORPORATION (Exact Name of Registrant as Specified in its Charter) | DELAWARE | 54-0649263 | | --- | --- | | (State or Other Jurisdiction of | (I.R.S. Employer | | Incorporation or Organization) | Identification No.) | | 6348 Walker Lane | | | | --- | --- | --- | | ...

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 Quarter Ended June 30, 2019 Commission File Number: 0‑3676 VSE CORPORATION (Exact Name of Registrant as Specified in its Charter) | DELAWARE | 54-0649263 | | --- | --- | | (State or Other Jurisdiction of | (I.R.S. Employer | | Incorporation or Organization) | Identification No.) | | 6348 Walker Lane | | | | --- | --- | --- | | Alexa ...

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 Quarter Ended March 31, 2019 Commission File Number: 0‑3676 VSE CORPORATION (Exact Name of Registrant as Specified in its Charter) | DELAWARE | 54-0649263 | | --- | --- | | (State or Other Jurisdiction of | (I.R.S. Employer | | Incorporation or Organization) | Identification No.) | | 6348 Walker Lane | | | | --- | --- | --- | | Alex ...

Table of Contents 6348 Walker Lane Alexandria, Virginia 22310 www.vsecorp.com (Address of Principal Executive Offices) (Zip Code) (Webpage) Registrant's Telephone Number, Including Area Code: (703) 960-4600 Securities registered pursuant to Section 12(b) of the Act: UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Fiscal Year Ended December 31, 2018 Commission File Number: 0‑3676 VSE ...