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VSE (VSEC) - 2023 Q4 - Annual Results
VSECVSE (VSEC)2024-03-06 21:55

Financial Performance - Total revenues for Q4 2023 reached 235.3million,a37235.3 million, a 37% increase compared to Q4 2022[3] - GAAP net income for Q4 2023 was 12.8 million, reflecting a 62% increase year-over-year[3] - Adjusted EBITDA for the full year 2023 was 113.8million,a45113.8 million, a 45% increase compared to 2022[4] - Net income from continuing operations for Q4 2023 was 12,834,000, a 62.1% increase from 7,916,000inQ42022[16]−AdjustedEBITDAforQ42023reached7,916,000 in Q4 2022[16] - Adjusted EBITDA for Q4 2023 reached 31,444,000, reflecting a 45.7% increase compared to 21,582,000inQ42022[16]−FreecashflowforQ42023was21,582,000 in Q4 2022[16] - Free cash flow for Q4 2023 was 20,071,000, compared to 8,461,000inQ42022[18]SegmentPerformance−TheAviationsegmentgeneratedrecordrevenueof8,461,000 in Q4 2022[18] Segment Performance - The Aviation segment generated record revenue of 153.7 million in Q4 2023, up 43% from the previous year[6] - The Fleet segment reported revenue of 81.6millioninQ42023,a2681.6 million in Q4 2023, a 26% increase year-over-year, with commercial revenue growing 72%[7] - Operating income in the Aviation segment for Q4 2023 was 18,771,000, a 52.3% increase from 12,327,000inQ42022[17]−AdjustedEBITDAfortheAviationsegmentinQ42023was12,327,000 in Q4 2022[17] - Adjusted EBITDA for the Aviation segment in Q4 2023 was 23,921,000, a 51.9% increase from 15,751,000inQ42022[17]−TheFleetsegment′soperatingincomeforQ42023was15,751,000 in Q4 2022[17] - The Fleet segment's operating income for Q4 2023 was 8,973,000, a 59.5% increase from 5,625,000inQ42022[17]CashFlowandDebt−Thecompanygenerated5,625,000 in Q4 2022[17] Cash Flow and Debt - The company generated 43 million of operating cash flow and 30millionoffreecashflowinthesecondhalfof2023[2]−AsofDecember31,2023,VSEhad30 million of free cash flow in the second half of 2023[2] - As of December 31, 2023, VSE had 216 million in cash and total net debt outstanding of 422million[10]−TotalnetdebtasofDecember31,2023,was422 million[10] - Total net debt as of December 31, 2023, was 421,576,000, up from 285,995,000in2022[21]−Thecompanyreportedanetleverageratioof3.7xforboth2023and2022[21]CapitalExpendituresandGuidance−Capitalexpendituresfortheyear2023totaled285,995,000 in 2022[21] - The company reported a net leverage ratio of 3.7x for both 2023 and 2022[21] Capital Expenditures and Guidance - Capital expenditures for the year 2023 totaled 18,666,000, compared to 11,212,000in2022[18]−VSE′s2024guidanceincludesa2411,212,000 in 2022[18] - VSE's 2024 guidance includes a 24% to 28% revenue growth for the Aviation segment and a 13% to 17% growth for the Fleet segment[11] Acquisitions and Sales - VSE announced the acquisition of Turbine Controls, Inc. for approximately 120 million, expected to close in Q2 2024[8] - The company completed the sale of its Federal and Defense segment assets for 44million,withassociatedone−timetransactionexpensesexpectedbetween44 million, with associated one-time transaction expenses expected between 6 million and $8 million[8] Reporting and Compliance - The company plans to file its Form 10-K with the SEC on or about March 7, 2024, detailing its fourth quarter and full year 2023 results[28]