VSE Corporation (NASDAQ:VSEC) Q4 2020 Earnings Conference Call March 5, 2021 8:30 AM ET Company Participants Noel Ryan - Investor Relations John Cuomo - President & Chief Executive Officer Steve Griffin - Chief Financial Officer Conference Call Participants Michael Ciarmoli - Truist Securities Ken Herbert - Canaccord Josh Sullivan - The Benchmark Company Louie DiPalma - William Blair Operator Greetings, and welcome to the VSE Corporation Fourth Quarter and Full Year 2020 Results Conference Call. At this tim ...

Fourth Quarter & Full-Year 2020 Results Conference Call 5 March 2021 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 Private Sec ...

Start Time: 08:30 January 1, 0000 8:57 AM ET VSE Corporation (NASDAQ:VSEC) Q3 2020 Earnings Conference Call October 29, 2020, 08:30 AM ET Company Participants John Cuomo - President and CEO Tom Loftus - EVP and CFO Noel Ryan - Head of IR Conference Call Participants Peter Osterland - Truist Securities Joshua Sullivan - The Benchmark Operator Welcome to the VSE Corporation Third Quarter 2020 Earnings Conference Call. As a reminder, all participants are in listen-only mode. The conference is being recorded. A ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2020 ☐ 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 VSE CORPORATION (Exact Name of Registrant as Specified in its Charter) Delaware 54-0649263 (State or Other J ...

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 ...