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 ...

V2X, Inc. (NYSE:VVX) Q4 2022 Earnings Conference Call March 2, 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 Tobey Sommer - SunTrust Bert Subin - Stifel Brian Gesuale - Raymond James Ken Herbert - RBC Capital Joe Gomes - NOBLE Capital Operator Thank you for joining us for the V2X Fourth Quarter and Full Year 2022 Earnings Conference Call and Webcast. Today's call is being reco ...

Table of Contents 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 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) (State or other jurisdiction of incorporati ...

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 ...

[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) The company's Q3 2022 financial statements show revenue more than doubled post-Vertex merger, but a net loss resulted from merger costs and increased debt [Condensed Consolidated Statements of Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Q3 2022 revenue surged 108.6% to $958.2 million post-merger, resulting in a $17.0 million net loss despite revenue growth Q3 & Nine Months 2022 vs 2021 Financial Performance (in thousands) | Metric | Q3 2022 | Q3 2021 | Change | Nine Months 2022 | Nine Months 2021 | Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Revenue** | $958,156 | $459,408 | +108.6% | $1,912,693 | $1,364,257 | +40.2% | | **Operating Income** | $4,487 | $12,890 | -65.2% | $24,744 | $52,003 | -52.4% | | **Net (Loss) Income** | $(17,039) | $10,258 | -266.1% | $(3,711) | $38,240 | -109.7% | | **Diluted (Loss) EPS** | $(0.56) | $0.87 | - | $(0.21) | $3.23 | - | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet expanded significantly post-merger, with total assets reaching **$3.17 billion** and liabilities **$2.18 billion** by September 30, 2022 Balance Sheet Comparison (in thousands) | Account | Sep 30, 2022 | Dec 31, 2021 | | :--- | :--- | :--- | | **Total Current Assets** | $925,197 | $423,340 | | **Goodwill** | $1,537,710 | $321,734 | | **Intangible assets, net** | $559,985 | $66,582 | | **Total Assets** | $3,168,452 | $889,459 | | **Total Current Liabilities** | $717,683 | $358,248 | | **Long-term debt, net** | $1,286,985 | $94,246 | | **Total Liabilities** | $2,180,069 | $539,372 | | **Total Shareholders' Equity** | $988,383 | $350,087 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the nine months ended September 30, 2022, operating cash flow increased to **$99.8 million**, with positive investing activities from **$194.4 million** cash acquired in the merger Cash Flow Summary - Nine Months Ended (in thousands) | Activity | Sep 30, 2022 | Oct 1, 2021 | | :--- | :--- | :--- | | Net cash provided by operating activities | $99,768 | $53,378 | | Net cash provided by (used in) investing activities | $186,220 | $(9,868) | | Net cash used in financing activities | $(165,251) | $(53,220) | | **Net change in cash** | **$108,860** | **$(12,494)** | [Note 3. Merger](index=12&type=section&id=Note%203.%20Merger) Vectrus completed its merger with Vertex on July 5, 2022, forming V2X, Inc., with a **$634.0 million** consideration, recognizing **$1.22 billion** in goodwill - Vectrus completed its merger with Vertex on **July 5, 2022**, acquiring all outstanding shares of Vertex[38](index=38&type=chunk) Merger Consideration (in thousands) | Component | Value | | :--- | :--- | | Fair value of common shares issued | $630,636 | | Fair value of cash consideration | $3,315 | | **Total consideration transferred** | **$633,951** | - The merger resulted in the recognition of **$1,216.0 million** of goodwill and **$522.0 million** for customer-related amortizable intangible assets[44](index=44&type=chunk) - Acquisition-related costs totaled **$41.3 million** for the nine months ended September 30, 2022, and were expensed as incurred within SG&A[41](index=41&type=chunk) [Note 4. Revenue](index=14&type=section&id=Note%204.%20Revenue) Remaining performance obligations surged to **$3.36 billion** by September 30, 2022, reflecting Vertex contracts, and Q3 2022 revenue mix shifted significantly Remaining Performance Obligations (in millions) | Date | Amount | | :--- | :--- | | September 30, 2022 | $3,362 | | December 31, 2021 | $1,398 | Q3 Revenue by Contract Type (in thousands) | Contract Type | Q3 2022 | Q3 2021 | % Change | | :--- | :--- | :--- | :--- | | Cost-plus and cost reimbursable | $505,743 | $338,007 | 49.6% | | Firm-fixed-price | $416,618 | $105,619 | 294.5% | | Time and material | $35,795 | $15,782 | 126.8% | Q3 Revenue by Geographic Region (in thousands) | Region | Q3 2022 | Q3 2021 | % Change | | :--- | :--- | :--- | :--- | | United States | $582,817 | $139,357 | 318.2% | | Middle East | $261,997 | $263,257 | (0.5)% | | Europe | $62,669 | $34,902 | 79.6% | | Asia | $50,673 | $21,892 | 131.5% | [Note 7. Debt](index=17&type=section&id=Note%207.%20Debt) The company's debt structure was overhauled post-merger, with prior debt repaid and **$1.185 billion** First Lien and **$185.0 million** Second Lien facilities assumed - On the merger closing date, the company repaid its existing Amended Term Loan (**$50.2 million**) and Amended Revolver (**$40.0 million**)[71](index=71&type=chunk) - The company assumed new debt facilities, including a First Lien Credit Agreement for **$1,185.0 million** and a Second Lien Credit Agreement for **$185.0 million**[72](index=72&type=chunk)[79](index=79&type=chunk) - An ABL Credit Agreement provides for a revolving loan facility of up to **$200.0 million**, with no outstanding balance as of September 30, 2022[85](index=85&type=chunk)[93](index=93&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes Q3 revenue growth to the Vertex merger, but operating income declined due to M&A costs, while total backlog more than doubled to **$12.7 billion** post-merger [Backlog](index=29&type=section&id=Backlog) Total backlog significantly increased to **$12.7 billion** by September 30, 2022, from **$5.0 billion** at year-end 2021, primarily due to the Vertex merger Backlog Summary (in millions) | Category | Sep 30, 2022 | Dec 31, 2021 | | :--- | :--- | :--- | | Funded backlog | $2,943 | $1,033 | | Unfunded backlog | $9,762 | $3,972 | | **Total backlog** | **$12,705** | **$5,005** | [Discussion of Financial Results](index=31&type=section&id=Discussion%20of%20Financial%20Results) Q3 2022 revenue grew **108.6%** due to the Vertex merger, but operating income declined **65.2%** as SG&A expenses, including **$44.9 million** in M&A costs, significantly increased - Q3 2022 SG&A expenses increased by **$65.0 million**, which included **$44.9 million** in M&A and integration costs from the merger[167](index=167&type=chunk) - Nine-month 2022 SG&A expenses increased by **$77.3 million**, including **$59.9 million** in M&A and integration costs[173](index=173&type=chunk) - The increase in net interest expense of **$24.8 million** for the nine months ended September 30, 2022, was due to increased debt assumed with the Merger[176](index=176&type=chunk) [Liquidity and Capital Resources](index=33&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains sufficient liquidity with **$144.1 million** cash and **$184.9 million** ABL availability, despite adding over **$1.3 billion** in debt post-merger, while DSO improved to **65 days** - As of September 30, 2022, the company had **$144.1 million** in unrestricted cash and **$184.9 million** of available borrowing capacity under the ABL Facility[195](index=195&type=chunk) - In conjunction with the Merger, V2X assumed first and second lien debt of **$1,182.7 million** and **$185.0 million** respectively[183](index=183&type=chunk) - Days Sales Outstanding (DSO) improved to **65 days** as of September 30, 2022, from **75 days** as of December 31, 2021[188](index=188&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=36&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) Post-merger, the company's market risk profile shows heightened exposure to interest rate fluctuations, with a **1%** change impacting annual interest expense by **$13.6 million** - A **one percentage point** change in interest rates on the variable rate Vertex First and Second Lien Credit Agreements would change annual cash interest expenses by **$13.6 million**[205](index=205&type=chunk) - The company terminated its remaining interest rate swaps on **June 29, 2022**, in conjunction with the extinguishment of its prior debt[206](index=206&type=chunk) [Item 4. Controls and Procedures](index=37&type=section&id=Item%204.%20Controls%20and%20Procedures) Management deemed disclosure controls effective as of September 30, 2022, but excluded newly acquired Vertex from internal control over financial reporting evaluation per SEC guidance - Management has excluded the internal control over financial reporting of the newly acquired Vertex from its evaluation of disclosure controls and procedures as of **September 30, 2022**, as permitted by SEC guidance[209](index=209&type=chunk) [PART II. OTHER INFORMATION](index=38&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=38&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings, but management does not anticipate any material adverse effects on its financial condition or operations - The company does not expect that any asserted or unasserted legal claims or proceedings will have a material adverse effect on its results of operations, financial condition or cash flows[213](index=213&type=chunk) [Item 1A. Risk Factors](index=38&type=section&id=Item%201A.%20Risk%20Factors) Post-merger, a key risk factor is increased exposure to losses from fixed-price contracts, which now constitute approximately **40%** of U.S. government contract revenue - Post-merger, approximately **40%** of the company's U.S. government contract revenue is derived from fixed-price and time and materials contracts[216](index=216&type=chunk) - The higher proportion of fixed-price contracts subjects the company to greater risks of losses from **cost overruns**, **technological difficulties**, **inflation**, and **supplier problems**[216](index=216&type=chunk)[218](index=218&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=39&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section is not applicable [Item 6. Exhibits](index=40&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including corporate governance documents, merger-related credit agreements, and executive certifications

Vectrus, Inc. (VEC) Q1 2022 Earnings Conference Call May 10, 2022 4:30 PM ET Company Participants Michael Smith - Director-Investor Relations and Corporate Development Charles Prow - President and Chief Executive Officer Susan Lynch - Chief Financial Officer Conference Call Participants Joseph Gomes - NOBLE Capital Markets Tobey Sommer - Truist Securities Bert Subin - Stifel Operator Thank you for joining us for the Vectrus First Quarter 2022 Earnings Conference Call and Webcast. Today's call is being recor ...