V2X(US:VVX)2024-11-04 21:07Financial Performance - Record revenue of $1.08 billion, up 8% year-over-year[2] - Record net income of $15.1 million, with adjusted net income of $41.3 million, up 76% year-over-year[3] - Record adjusted EBITDA of $82.7 million, up 28% year-over-year, with a margin of 7.6%[3] - Adjusted diluted EPS of $1.29, up 77% year-over-year[3] - Revenue for the three months ended September 27, 2024, was $1,081,656, a 8.0% increase from $1,001,507 for the same period in 2023[32] - Net income for the three months ended September 27, 2024, was $15,051 compared to a net loss of $(6,400) for the same period in 2023[29] - Adjusted EBITDA for the nine months ended September 27, 2024, was $224,055, up from $211,803 for the same period in 2023[29] - The adjusted operating income for the three months ended September 27, 2024, was $76,933, a 29.5% increase from $59,470 in the same period last year[29] - Adjusted net income and adjusted diluted earnings per share are key performance measures used to evaluate ongoing operations and financial performance[25] Revenue Growth - Indo-Pacific revenue growth of 31% year-over-year, driven by increased demand[3] - Revenue from the Army segment increased by 10.4% to $455,877 for the three months ended September 27, 2024, compared to $412,841 in 2023[32] - Revenue from the Navy segment increased by 17.7% to $366,217 for the three months ended September 27, 2024, compared to $311,088 in 2023[32] - Revenue from the United States for the three months ended September 27, 2024, was $604,872, a 5.9% increase from $571,405 in 2023[36] Backlog and Awards - Total backlog as of September 27, 2024, was $12.2 billion, with a funded backlog of $3.0 billion[8] - Company secured approximately $5 billion in awards during the third quarter, including a $3.7 billion contract[5] Cash Flow and Assets - Adjusted net cash provided by operating activities increased 35% year-over-year to $130.1 million[8] - The company reported a net cash provided by operating activities of $31,103 thousand for the nine months ended September 27, 2024, down from $135,175 thousand in the prior year[21] - Cash, cash equivalents, and restricted cash decreased to $59,857 thousand from $72,651 thousand, representing a decline of approximately 17.6%[21] - Total assets increased to $3,126,105 thousand as of September 27, 2024, compared to $3,081,900 thousand at December 31, 2023, reflecting a growth of approximately 1.4%[20] Liabilities and Equity - Total current liabilities rose to $906,051 thousand, up from $840,201 thousand, indicating an increase of about 7.8%[20] - Long-term debt remained relatively stable at $1,096,865 thousand compared to $1,100,269 thousand, showing a slight decrease of about 0.2%[20] - The company’s total shareholders' equity increased to $1,002,561 thousand from $990,800 thousand, reflecting a growth of approximately 1.6%[20] Leverage Ratios - Net leverage ratio improved to 3.27x, with a target to be at or below 3.0x by the end of 2024[8] - The net leverage ratio is defined as net debt divided by trailing twelve-month bank EBITDA, providing insight into the company's financial leverage[28] - The net leverage ratio as of September 27, 2024, was 3.27x[31]