V2X, Inc. (NYSE:VVX) Q3 2023 Earnings Conference Call November 6, 2023 8:00 AM ET Company Participants Michael Smith - VP, Treasury, IR and Corporate Development Chuck Prow - President and CEO Shawn Mural - SVP and CFO Conference Call Participants Joe Gomes - Noble Capital Markets Ken Herbert - RBC Capital Markets Bert Subin - Stifel Tobey Sommer - Truist Securities Operator Thank you for joining us for V2X Third Quarter 2023 Earnings Conference Call and Webcast. Today's call is being recorded. My name is S ...

| --- | --- | --- | |-------------------------------------------------------------|-------|-------| | | | | | | | | | | | | | | | | | | | | | Third Quarter 2023 Results | | | | | | | | T R U S T E D W H E R E V E R T H E M I S S I O N L E A D S | | | | N o v e m b e r 6 , 2 0 2 3 | | | Disclaimers FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act), and Section 27A of the Secu ...

V2X, Inc. (NYSE:VVX) Q2 2023 Earnings Conference Call August 8, 2023 4:30 PM ET Company Participants Michael Smith - Vice President, Treasury, Investor Relations and Corporate Development Chuck Prow - President and Chief Executive Officer Susan Lynch - Senior Vice President and Chief Financial Officer Conference Call Participants Stephen Strackhouse - RBC Capital Markets Brian Gesuale - Raymond James Tobey Sommer - Truist Securities Joseph Gomes - NOBLE Capital Markets Sahej Singh - Stifel Operator Good da ...

Table of Contents 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 June 30, 2023 or ☐ 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: 001-36341 V2X, Inc. (Exact name of registrant as specified in its charter) Indiana 38-3924636 (State or other juri ...

V2X, Inc. (NYSE:VVX) Q1 2023 Results Conference Call May 9, 2023 4:30 PM ET Company Participants Mike Smith - VP, Treasury, IR and Corporate Development Chuck Prow - President and CEO Susan Lynch - SVP and CFO Conference Call Participants Joe Gomes - NOBLE Capital Jasper Bibb - Truist Securities Robert Connors - Stifel Steve Strackhouse - RBC Capital Markets Operator Thank you for joining us for the V2X First Quarter 2023 Earnings Conference Call and Webcast. Today's call is being recorded. My name is Joann ...

Table of Contents 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 March 31, 2023 or ☐ 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: 001-36341 V2X, Inc. (Exact name of registrant as specified in its charter) Indiana 38-3924636 (State or other jur ...

Financial Data and Key Metrics Changes - Fourth quarter revenue reached $978 million, a 20% year-over-year increase on a pro forma basis, driven by new business wins and growth in INDOPACOM and Europe [7][46] - Adjusted EBITDA for the fourth quarter was $79 million, representing an 8.1% margin, higher than expectations due to favorable program performance [8][52] - Full year revenue was $2.891 billion, compared to $1.784 billion in 2021, with pro forma revenue of $3.67 billion, an 8.8% increase year-over-year [54] Business Line Data and Key Metrics Changes - Revenue from the Army comprised 39% of total revenue in the fourth quarter, down from 63% for legacy Vectrus, while revenue from the Navy increased to 31% from 14% [47] - The contract mix is now balanced with approximately 50% of revenue from cost-plus contracts and 50% from fixed price and time and materials contracts, which helps mitigate inflation impacts [49][50] Market Data and Key Metrics Changes - Revenue from the INDOPACOM region increased by $54 million in the fourth quarter, a sevenfold increase from the previous year, supported by the Pacific Deterrence Initiative (PDI) [12][13] - The PDI received a 62% year-over-year funding increase, totaling $11.5 billion for fiscal year 2023, enhancing opportunities for V2X [13] Company Strategy and Development Direction - V2X aims to be a leader in the operational segment of the federal services market by providing converged solutions that integrate digital and physical environments [30][31] - The company is focused on expanding its base, capturing new markets, delivering excellence, and enhancing its culture to drive growth [32][34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 5% revenue growth in 2023, with over 90% of revenue expected from existing contracts [11][63] - The company anticipates continued growth in INDOPACOM and is optimistic about the pipeline of opportunities, despite a slower pace of new awards [88][90] Other Important Information - V2X successfully refinanced a portion of its debt into a lower-cost credit facility, expected to generate annual interest expense savings of over $8 million [59][60] - The company has a backlog of $12.3 billion, equating to over 3x revenue coverage, providing strong visibility for future growth [26] Q&A Session Summary Question: Employee and Customer Understanding Post-Merger - Management noted strong internal adaptation among employees and positive client feedback regarding the expanded capabilities post-merger [68][69] Question: Impact of Arctic Sustainment Contract - The Arctic sustainment contract has a ceiling value of $3.95 billion, which could provide significant opportunities over its 12-year life [70][71] Question: Fiscal Year 2024 Budget Assumptions - Guidance includes assumptions of slowing new awards, but strong backlog provides confidence in revenue projections [73] Question: Sales Guidance and Growth Expectations - Management acknowledged natural erosion in aerospace but balanced it with anticipated activity from exercises in INDOPACOM [77][78] Question: Pipeline and Award Pace - The pipeline is robust with $14.2 billion, but the pace of new awards has slowed, requiring a return to historical rates for optimal growth [82][84] Question: Working Capital and Section 174 Impact - Section 174 is contemplated in guidance, with a slight expected use of working capital but not material [85] Question: Free Cash Flow Utilization - Targeting a net leverage ratio of approximately 3.6x by year-end, with a focus on debt reduction [93][94]

PART I [Item 1. Business](index=4&type=section&id=Item%201.%20Business) V2X provides critical mission solutions to global defense clients, expanding its capabilities through a significant 2022 merger and focusing on converged solutions - V2X, Inc (formerly Vectrus, Inc) is a leading provider of critical mission solutions primarily to defense clients, operating in **343 locations** and **45 countries** and territories worldwide[15](index=15&type=chunk) - On July 5, 2022, Vectrus completed its merger with Vertex Aerospace Services Holding Corp, forming V2X, creating a larger, more diversified company capable of competing for integrated business opportunities[17](index=17&type=chunk) - V2X's business strategies include expanding its base, capturing new markets, delivering with excellence, and enhancing its culture to connect people, technology, and capabilities[20](index=20&type=chunk)[21](index=21&type=chunk)[23](index=23&type=chunk) - Effective January 1, 2023, the Company is organized across three core business areas: Aerospace Solutions, Advanced Technology, and Global Mission Training and Sustainment[24](index=24&type=chunk)[25](index=25&type=chunk)[26](index=26&type=chunk) - As of December 31, 2022, V2X employed approximately **15,400 full-time employees**, a significant increase of 7,300 from the prior year, primarily due to the Vertex merger[51](index=51&type=chunk) Revenue by Customer (2020-2022) | (In thousands) | 2022 | 2021 | 2020 | |:---|:---|:---|:---| | Army | $1,342,406 | $1,134,849 | $965,558 | | Navy | $713,732 | $224,407 | $68,748 | | Air Force | $459,849 | $266,291 | $299,272 | | Other | $374,873 | $158,118 | $61,951 | | **Total revenue** | **$2,890,860** | **$1,783,665** | **$1,395,529** | Revenue by Contract Type (2020-2022) | Contract type | 2022 | 2021 | 2020 | |:---|:---|:---|:---| | Cost-plus and cost-reimbursable | 56 % | 71 % | 68 % | | Firm-fixed-price | 40 % | 25 % | 29 % | | Time-and-materials | 4 % | 4 % | 3 % | | **Total revenue** | **100 %** | **100 %** | **100 %** | [Item 1A. Risk Factors](index=20&type=section&id=Item%201A.%20Risk%20Factors) The company faces risks from personnel retention, contract competition, international operations, cybersecurity, and integration challenges from the Vertex merger - Key business risks include the inability to recruit and retain qualified personnel, potential harm from prolonged work stoppages due to a significant unionized workforce (**35% of employees** as of Dec 31, 2022), and intense competition[78](index=78&type=chunk)[86](index=86&type=chunk)[88](index=88&type=chunk)[89](index=89&type=chunk) - The company's profitability and growth are highly dependent on winning new contracts and successfully recompeting existing ones, with a substantial majority of revenue derived from U.S government contracts[91](index=91&type=chunk)[92](index=92&type=chunk) - A significant portion of revenue (**31.0% in 2022**) is derived from a few large contracts, such as LOGCAP V Kuwait and Iraq Task Orders, making the company vulnerable to their loss[97](index=97&type=chunk)[98](index=98&type=chunk) - Operating in international, high-risk locations exposes employees and contractors to security risks, potentially leading to substantial costs and legal challenges[115](index=115&type=chunk)[116](index=116&type=chunk)[117](index=117&type=chunk) - The merger with Vertex introduces integration challenges, potential difficulties in realizing anticipated benefits, and the need to effectively manage expanded operations[138](index=138&type=chunk)[139](index=139&type=chunk)[141](index=141&type=chunk) - Following the merger, V2X assumed significantly more indebtedness, totaling approximately **$1,336.8 million** as of December 31, 2022, which could adversely affect its business and exposes it to interest rate risks[175](index=175&type=chunk)[181](index=181&type=chunk) [Item 1B. Unresolved Staff Comments](index=52&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reported no unresolved staff comments from the SEC - There are no unresolved staff comments[203](index=203&type=chunk) [Item 2. Properties](index=52&type=section&id=Item%202.%20Properties) V2X operates globally with key leased corporate and operations offices in Virginia, Colorado, and Mississippi - V2X has **343 locations** in **45 countries** and territories, with contract performance primarily at government customer facilities[204](index=204&type=chunk) - Key leased properties include the corporate headquarters in McLean, Virginia (**24,400 sq ft**), an operations office in Colorado Springs, Colorado (**65,000 sq ft**), and an operations office in Madison, Mississippi (**164,000 sq ft**)[204](index=204&type=chunk) [Item 3. Legal Proceedings](index=52&type=section&id=Item%203.%20Legal%20Proceedings) The company is involved in various legal matters incidental to its business but does not expect them to have a material adverse effect - V2X is subject to various investigations, lawsuits, arbitration, claims, enforcement actions, and other legal proceedings, including government audits and claims related to its operations[205](index=205&type=chunk) - The company believes the outcome of ongoing government audits and investigations will not have a material impact on its results of operations, financial condition, or cash flows[205](index=205&type=chunk) [Item 4. Mine Safety Disclosures](index=52&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to V2X, Inc - Mine Safety Disclosures are not applicable to the registrant[207](index=207&type=chunk) PART II [Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=53&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) V2X common stock trades on the NYSE under "VVX", with no dividends paid to date and no equity repurchases in 2022 - V2X common stock is traded on the NYSE under the symbol **"VVX"**[210](index=210&type=chunk) - As of February 28, 2023, there were approximately **3,899 stockholders** of record and **30.9 million shares** of common stock outstanding[210](index=210&type=chunk) - The company has not declared or paid any dividends on its common stock to date, and future dividend decisions are at the discretion of the Board of Directors[211](index=211&type=chunk) - V2X did not repurchase any of its equity securities for the year ended December 31, 2022[213](index=213&type=chunk) [Item 6. Selected Financial Data](index=54&type=section&id=Item%206.%20Selected%20Financial%20Data) This section is reserved, indicating no selected financial data is presented here - This section is reserved, meaning no selected financial data is provided[216](index=216&type=chunk) [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=54&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section analyzes financial results, highlighting the Vertex merger's impact on revenue growth, operating income, backlog, and liquidity - V2X's primary customer is the U.S Department of Defense, with substantially all revenue derived from U.S government customers[222](index=222&type=chunk) - Revenue increased by **$1,107.2 million (62.1%)** in 2022, with **$908.4 million** attributed to the Vertex merger and the remainder from organic growth in legacy programs[223](index=223&type=chunk)[252](index=252&type=chunk) - Operating income decreased by **10.1%** primarily due to amortization of intangible assets and acquisition-related costs from the merger[224](index=224&type=chunk)[255](index=255&type=chunk) - The COVID-19 pandemic had an immaterial impact on financial results for 2022 and 2021, but caused an estimated **$63.1 million** reduction in revenue in 2020[233](index=233&type=chunk)[546](index=546&type=chunk) - Total backlog increased by **$7.3 billion** in 2022, primarily due to the Vertex merger[243](index=243&type=chunk) - V2X's liquidity is primarily supported by cash flows from operations, cash on hand, and credit facilities, with the company refinancing its debt on February 28, 2023[259](index=259&type=chunk)[268](index=268&type=chunk) - Net cash provided by operating activities increased in 2022 primarily due to the merger, while net cash from investing activities was largely due to **$193.7 million** cash acquired in the merger[272](index=272&type=chunk)[275](index=275&type=chunk) Key Financial Highlights (Year Ended December 31, 2022 vs. 2021) | Metric | 2022 (in thousands) | 2021 (in thousands) | Change ($) | Change (%) | |:---|:---|:---|:---|:---| | Revenue | $2,890,860 | $1,783,665 | $1,107,195 | 62.1 % | | Cost of revenue | $2,595,848 | $1,623,245 | $972,603 | 59.9 % | | Operating income | $55,771 | $62,020 | $(6,249) | (10.1)% | | Operating margin | 1.9 % | 3.5 % | - | - | | Interest expense, net | $(61,879) | $(7,985) | $(53,894) | 674.9 % | | Net (loss) income | $(14,330) | $45,728 | $(60,058) | (131.3)% | Total Backlog (Funded and Unfunded) (as of December 31) | (In millions) | 2022 | 2021 | |:---|:---|:---| | Funded backlog | $2,567 | $1,033 | | Unfunded backlog | $9,695 | $3,972 | | **Total backlog** | **$12,262** | **$5,005** | Net Cash Flow Activities (Year Ended December 31) | (In thousands) | 2022 | 2021 | 2020 | |:---|:---|:---|:---| | Operating activities | $93,495 | $61,339 | $64,081 | | Investing activities | $175,958 | $(12,643) | $(138,025) | | Financing activities | $(193,236) | $(75,585) | $105,774 | | Foreign exchange | $1,337 | $(3,325) | $1,579 | | **Net change in cash** | **$77,554** | **$(30,214)** | **$33,409** | [Forward-Looking Statement Information](index=54&type=section&id=Forward-Looking%20Statement%20Information) The report contains forward-looking statements subject to risks and uncertainties that could cause actual results to differ materially from expectations - These risks include the impact of COVID-19, contract awards, competition, security breaches, and economic conditions[217](index=217&type=chunk)[218](index=218&type=chunk)[219](index=219&type=chunk)[220](index=220&type=chunk) [Overview](index=55&type=section&id=Overview) V2X operates as a single segment providing integrated mission solutions, with the U.S Army being a primary customer - V2X, formerly Vectrus, is a global provider of critical mission solutions, primarily to defense clients, operating as a single segment[221](index=221&type=chunk) Revenue from U.S. Government Customers (2020-2022) | Year | Total Revenue (in billions) | % from U.S. Army | |:---|:---|:---| | 2022 | $2.9 | 46% | | 2021 | $1.8 | 64% | | 2020 | $1.4 | 69% | [Executive Summary](index=55&type=section&id=Executive%20Summary) Revenue grew 62.1% in 2022 due to the Vertex merger, though operating income declined 10.1% from related acquisition costs and amortization - Revenue increased by **$1,107.2 million (62.1%)** in 2022 compared to 2021, with **$908.4 million** from the Vertex merger and the rest from organic growth[223](index=223&type=chunk)[252](index=252&type=chunk) - Operating income decreased by **$6.2 million (10.1%)** in 2022, primarily due to amortization of intangible assets and acquisition-related costs associated with the merger[224](index=224&type=chunk)[255](index=255&type=chunk) - The effective income tax rate was **(134.6)%** in 2022, compared to **15.4%** in 2021, influenced by non-deductible costs and the release of prior year uncertain tax positions[228](index=228&type=chunk)[258](index=258&type=chunk) [Merger with Vertex](index=57&type=section&id=Merger%20with%20Vertex) Details regarding the merger with Vertex and its financial implications are referenced in the Consolidated Financial Statements - The merger with Vertex and related debt and stock-based compensation obligations are discussed in detail in Notes 3, 10, and 16 of the Consolidated Financial Statements[230](index=230&type=chunk) [COVID-19 Impact](index=57&type=section&id=COVID-19%20Impact) The financial impact of COVID-19 was immaterial in 2022 and 2021, but significantly reduced revenue and EPS in 2020 - The impact of COVID-19 on V2X's financial results was immaterial for 2022 and 2021, but caused an estimated **$63.1 million** reduction in revenue and a **$0.39** reduction in diluted EPS in 2020[233](index=233&type=chunk)[546](index=546&type=chunk) - The ultimate impact of the pandemic remains uncertain, depending on future developments, vaccine effectiveness, and government regulations[232](index=232&type=chunk)[545](index=545&type=chunk) [Significant Contracts](index=57&type=section&id=Significant%20Contracts) Several large U.S Army contracts, including LOGCAP V task orders, represent a significant portion of the company's total revenue - The LOGCAP V - Kuwait Task Order contributed **$472.9 million** in revenue in 2022 and **$210.8 million** in 2021[236](index=236&type=chunk) - The LOGCAP V - Iraq Task Order contributed **$282.5 million** in revenue in 2022 and **$209.0 million** in 2021[237](index=237&type=chunk) - The OMDAC-SWACA contract contributed **$122.7 million** in 2022 and **$139.5 million** in 2021[238](index=238&type=chunk) - The K-BOSSS contract, which had components re-competed under LOGCAP V, contributed **$18.9 million** in 2022 and **$282.2 million** in 2021[239](index=239&type=chunk) Significant Contracts as % of Total Revenue (2020-2022) | Contract Name | 2022 | 2021 | 2020 | |:---|:---|:---|:---| | LOGCAP V - Kuwait Task Order | 16.4% | 11.8% | —% | | LOGCAP V - Iraq Task Order | 9.8% | 11.7% | —% | | OMDAC-SWACA | 4.2% | 7.8% | 14.2% | | K-BOSSS | 0.7% | 15.8% | 34.1% | [Backlog](index=59&type=section&id=Backlog) Total backlog increased significantly to $12.3 billion in 2022, driven primarily by the Vertex merger - Total backlog increased by **$7.3 billion** in 2022, primarily due to the Merger[243](index=243&type=chunk) - The company expects to recognize a substantial portion of its funded backlog as revenue within the next 12 months, though government contracts can be canceled at any time[242](index=242&type=chunk) Total Backlog (Funded and Unfunded) (as of December 31) | (In millions) | 2022 | 2021 | |:---|:---|:---| | Funded backlog | $2,567 | $1,033 | | Unfunded backlog | $9,695 | $3,972 | | **Total backlog** | **$12,262** | **$5,005** | [Economic Opportunities, Challenges and Risks](index=60&type=section&id=Economic%20Opportunities%2C%20Challenges%20and%20Risks) The company faces a mix of opportunities from defense spending and challenges from fiscal pressures, inflation, and rising interest rates - The U.S government's investment in national security creates opportunities, but fiscal challenges and political environment could pressure revenue and profit margins[244](index=244&type=chunk) - The FY 2023 Omnibus Appropriations Act provided **$817 billion** to the Defense Department, a **$44 billion** increase over the President's request, indicating continued high priority on national security spending[245](index=245&type=chunk) - Macroeconomic conditions, including inflation and rising interest rates, pose challenges that could adversely affect profit margins, especially on fixed-price contracts[248](index=248&type=chunk) [Discussion of Financial Results](index=61&type=section&id=Discussion%20of%20Financial%20Results) Financial results for 2022 show a 62.1% revenue increase due to the Vertex merger, offset by a 10.1% drop in operating income from related costs - Revenue increased by **62.1%** in 2022, primarily due to the Vertex merger (**$908.4 million**) and organic growth[252](index=252&type=chunk)[253](index=253&type=chunk) - SG&A expenses rose by **143.1%** in 2022, mainly due to the merger, including **$39.9 million** in acquisition-related costs[254](index=254&type=chunk)[255](index=255&type=chunk) - Net interest expense increased significantly by **$53.9 million (674.9%)** in 2022, driven by increased debt assumed with the merger[257](index=257&type=chunk)[258](index=258&type=chunk) Selected Financial Highlights (Year Ended December 31, 2022 vs. 2021) | (In thousands) | 2022 | 2021 | Change ($) | Change (%) | |:---|:---|:---|:---|:---| | Revenue | $2,890,860 | $1,783,665 | $1,107,195 | 62.1 % | | Cost of revenue | $2,595,848 | $1,623,245 | $972,603 | 59.9 % | | Selling, general and administrative expenses | $239,241 | $98,400 | $140,841 | 143.1 % | | Operating income | $55,771 | $62,020 | $(6,249) | (10.1)% | | Interest expense, net | $(61,879) | $(7,985) | $(53,894) | 674.9 % | | (Loss) income before taxes | $(6,108) | $54,035 | $(60,143) | (111.3)% | | Income tax expense | $8,222 | $8,307 | $(85) | (1.0)% | | Net (loss) income | $(14,330) | $45,728 | $(60,058) | (131.3)% | [Liquidity and Capital Resources](index=62&type=section&id=Liquidity%20and%20Capital%20Resources) V2X manages liquidity through cash flows and credit facilities, having undertaken significant debt restructuring and refinancing post-merger - V2X expects to fund operations, capital expenditures, and growth through cash flows, cash on hand, credit facilities, and potential equity/debt issuances[259](index=259&type=chunk) - In conjunction with the merger, V2X assumed **$1,182.7 million** in first lien debt and **$185.0 million** in second lien debt, and an ABL Credit Agreement for up to **$200.0 million**[264](index=264&type=chunk) - On February 28, 2023, V2X refinanced its debt, securing a new **$750 million** senior secured financing package to repay existing credit facilities[268](index=268&type=chunk) Contractual Obligations (as of December 31, 2022) | (In thousands) | Total | Less than 1 Year | 1 - 3 Years | 3 - 5 Years | More than 5 Years | |:---|:---|:---|:---|:---|:---| | Operating leases | $65,603 | $19,588 | $22,313 | $12,437 | $11,265 | | Principal payments on Vertex First Lien Credit Agreements | $1,176,763 | $11,850 | $23,700 | $23,700 | $1,117,513 | | Principal payments on Vertex Second Lien Credit Agreement | $160,000 | $0 | $0 | $0 | $160,000 | | Interest on Vertex First and Second Lien Credit Agreements | $688,689 | $115,603 | $228,636 | $222,872 | $121,578 | | **Total** | **$2,091,055** | **$147,041** | **$274,649** | **$259,009** | **$1,410,356** | [Critical Accounting Estimates](index=66&type=section&id=Critical%20Accounting%20Estimates) The company's financial statements rely on critical accounting estimates for revenue recognition, business combinations, goodwill, and income taxes - Critical accounting estimates include revenue recognition, business combinations, goodwill impairment, intangible assets, and income taxes, which involve significant judgment[283](index=283&type=chunk) - Revenue from long-term service contracts is recognized over time using the input method, requiring estimates of total contract revenue and costs[284](index=284&type=chunk)[286](index=286&type=chunk)[289](index=289&type=chunk) - Goodwill and other intangible assets are tested for impairment annually, with **no goodwill impairment** recorded in 2022 or 2021[293](index=293&type=chunk)[294](index=294&type=chunk)[298](index=298&type=chunk) - Income tax provisions are determined using the asset and liability approach, with deferred tax assets and liabilities based on temporary differences and enacted tax rates[300](index=300&type=chunk) [Item 7A. Quantitative and Qualitative Disclosures About Market Risk](index=69&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) V2X is exposed to market risks from interest rate and foreign currency fluctuations, particularly due to its significant variable rate debt - V2X is exposed to market risks from fluctuations in interest rates and foreign currency exchange rates[305](index=305&type=chunk) - A **one percentage point change** in interest rates would result in a **$13.4 million** change in annual cash interest expenses for its variable rate debt[306](index=306&type=chunk) - The company terminated its interest rate swaps on June 29, 2022, and its foreign currency forward contracts expired in January 2022[308](index=308&type=chunk)[309](index=309&type=chunk) [Item 8. Financial Statements and Supplementary Data](index=70&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section refers to the Index to Consolidated Financial Statements for detailed financial information - This item directs readers to the Index to Consolidated Financial Statements for detailed financial information[311](index=311&type=chunk) [Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=70&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reported no changes in or disagreements with accountants on accounting and financial disclosure - There were no changes in or disagreements with accountants on accounting and financial disclosure[312](index=312&type=chunk) [Item 9A. Controls and Procedures](index=70&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls were effective, though the internal control assessment excluded the recently acquired Vertex business - As of December 31, 2022, V2X's disclosure controls and procedures were deemed **effective** by management, including the CEO and CFO[313](index=313&type=chunk) - The internal control over financial reporting (ICFR) of Vertex was excluded from management's assessment due to the recent merger, with Vertex's excluded assets and revenues representing **45.1%** and **31.4%** of consolidated totals, respectively[314](index=314&type=chunk)[325](index=325&type=chunk) - Management concluded that V2X's ICFR was **effective** as of December 31, 2022, based on the COSO framework, and this effectiveness was audited by RSM US LLP, who expressed an unqualified opinion[317](index=317&type=chunk)[323](index=323&type=chunk) [Item 9B. Other Information](index=75&type=section&id=Item%209B.%20Other%20Information) The company reported no other information for this item - No other information is reported under this item[332](index=332&type=chunk) [Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=75&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) This item is not applicable to V2X, Inc - Disclosure regarding foreign jurisdictions that prevent inspections is not applicable[333](index=333&type=chunk) PART III [Item 10. Directors, Executive Officers and Corporate Governance](index=75&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information regarding directors, executive officers, and corporate governance is incorporated by reference from the company's 2023 Proxy Statement - Information on directors, executive officers, and corporate governance is incorporated by reference from the 2023 Proxy Statement, with executive officer details also in Part I, Item 1 of this 10-K[335](index=335&type=chunk) [Item 11. Executive Compensation](index=75&type=section&id=Item%2011.%20Executive%20Compensation) Information regarding executive compensation is incorporated by reference from the company's 2023 Proxy Statement - Executive compensation information is incorporated by reference from the 2023 Proxy Statement[336](index=336&type=chunk) [Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=75&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information regarding security ownership is incorporated by reference from the company's 2023 Proxy Statement - Security ownership information for beneficial owners and management, along with related stockholder matters, is incorporated by reference from the 2023 Proxy Statement[337](index=337&type=chunk) [Item 13. Certain Relationships and Related Transactions and Director Independence](index=75&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%20and%20Director%20Independence) Information regarding related transactions and director independence is incorporated by reference from the company's 2023 Proxy Statement - Information on certain relationships, related transactions, and director independence is incorporated by reference from the 2023 Proxy Statement[338](index=338&type=chunk) [Item 14. Principal Accountant Fees and Services](index=75&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information regarding principal accountant fees and services is incorporated by reference from the company's 2023 Proxy Statement - Information on principal accountant fees and services is incorporated by reference from the 2023 Proxy Statement[339](index=339&type=chunk) PART IV [Item 15. Exhibit and Financial Statement Schedules](index=76&type=section&id=Item%2015.%20Exhibit%20and%20Financial%20Statement%20Schedules) This section lists all documents filed as part of the report, including financial statements, various agreements, and certifications - This item lists documents filed as part of the report, including financial statements, merger agreements, credit agreements, and various certifications[343](index=343&type=chunk) - Financial statement schedules are omitted because the required information is either absent or already included in the Consolidated Financial Statements[347](index=347&type=chunk) [Item 16. Form 10-K Summary](index=125&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company reported no Form 10-K Summary for this item - There is no Form 10-K Summary provided[566](index=566&type=chunk)

V2X, Inc. (NYSE:VVX) Q3 2022 Earnings Conference Call November 8, 2022 4:30 PM ET Company Participants Mike Smith - Vice President, Treasury, Investor Relations & Corporate Development Chuck Prow - President & Chief Executive Officer Susan Lynch - Senior Vice President & Chief Financial Officer Conference Call Participants Tobey Sommer - Truist Brian Gesuale - Raymond James Robert Connors - Stifel Joe Gomes - NOBLE Capital Operator Thank you for joining us for the V2X Third Quarter 2022 Earnings Conference ...

| --- | --- | --- | --- | |----------------------------------------------------------------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | Third Quarter 2022 Results TRUSTED WHEREVER THE MISSION LEADS | | | | | November 8, 2022 | | | | Call Participants Chuck Prow President and Chief Executive Officer Susan Lynch Senior Vice President and Chief Financial Officer Q3'22 Earnings Presentation \ \ 2 Disclaimers FORWARD-LOOKING STATEMENTS This presentation contains forward-looking s ...