VSE (US:VSEC)2025-05-06 21:12Financial Performance - Total revenues for Q1 2025 reached $256.0 million, an increase of 57.7% compared to Q1 2024[4] - GAAP net income for Q1 2025 was $14.0 million, reflecting a 152.0% increase year-over-year[4] - Adjusted EBITDA for Q1 2025 was $40.4 million, up 60.0% from the previous year[4] - Operating income for Q1 2025 was $24,504,000, a 56.5% increase from $15,643,000 in Q1 2024[33] - Net income from continuing operations was $13,968,000, compared to $5,542,000 in Q1 2024, marking a 151.5% increase[33] - Adjusted EPS (Diluted) for continuing operations was $0.67, up from $0.35 in the previous year[33] Revenue Breakdown - Product revenues increased to $160,551,000, up 48.6% from $108,023,000 year-over-year[33] - Service revenues rose to $95,494,000, representing a 75.8% increase compared to $54,360,000 in the same quarter last year[33] - The aviation segment reported a revenue increase of 58% year-over-year, driven by strong end-market activity and contributions from recent acquisitions[7] - Full-year 2025 revenue growth is projected to be between 35% to 40% compared to the prior year[10] Cash Flow and Liquidity - As of March 31, 2025, VSE had $158 million in cash and a total net debt of $459 million, with an adjusted net leverage ratio of approximately 2.2x post-Fleet sale[8][21] - Cash and cash equivalents decreased to $5,711,000 from $29,505,000 at the end of 2024[32] - Current liabilities decreased to $248,299,000 from $298,500,000 at the end of 2024, indicating improved liquidity[32] - Net cash used in operating activities decreased to $46,632,000 in Q1 2025 from $79,060,000 in Q1 2024, showing an improvement of 41.0%[34] - Cash flows from investing activities resulted in a net cash outflow of $129,000 in Q1 2025, compared to a net cash inflow of $33,408,000 in Q1 2024[34] - Net cash provided by financing activities was $28,239,000 in Q1 2025, down from $48,291,000 in Q1 2024, reflecting a decrease of 41.5%[34] - Cash and cash equivalents at the end of Q1 2025 were $10,508,000, slightly down from $10,569,000 at the end of Q1 2024[34] Expenses and Losses - The company reported a net loss of $8,973,000 for Q1 2025, compared to a net loss of $6,611,000 in Q1 2024[33] - Depreciation and amortization expenses increased to $9,905,000 in Q1 2025 from $5,945,000 in Q1 2024, reflecting a rise of 66.1%[34] - Impairment and loss on sale of business segments amounted to $33,952,000 in Q1 2025, up from $16,867,000 in Q1 2024, indicating a significant increase of 101.5%[34] - Net loss for Q1 2025 was $8,973,000, compared to a net loss of $6,611,000 in Q1 2024, representing an increase in loss of approximately 35.8%[34] Strategic Actions - VSE completed the divestiture of its Fleet segment for up to $230 million, marking a strategic transformation into a pure-play aviation aftermarket provider[5] - The acquisition of Turbine Weld was finalized for approximately $50 million, enhancing VSE's MRO capabilities[6] - VSE signed a 5-year authorized service agreement with Eaton to provide repair and overhaul services for hydraulic components in large commercial aircraft[9] Dividends and Borrowings - Dividends paid increased to $2,060,000 in Q1 2025 from $1,577,000 in Q1 2024, representing an increase of 30.6%[34] - Borrowings on bank credit facilities in Q1 2025 totaled $74,489,000, compared to $211,082,000 in Q1 2024, indicating a decrease of 64.7%[34] Asset Management - Total assets as of March 31, 2025, were $1,732,982,000, slightly down from $1,742,630,000 at the end of 2024[32] - Changes in operating assets and liabilities included a decrease in receivables of $19,393,000 in Q1 2025, compared to a decrease of $24,604,000 in Q1 2024[34]