V2X(US:VVX)2020-11-10 23:49Financial Data and Key Metrics Changes - Third quarter revenue was $352.4 million, down 2.1% year-over-year, impacted by approximately $12.9 million in revenue delays due to COVID-19 [27][28] - Adjusted EBITDA margin was 4.8%, representing the second highest margin rate in the past 10 quarters, despite an estimated 40 basis points impact from COVID-19 [28] - Adjusted diluted EPS was $0.89, which was $0.18 higher than the same period last year, but adversely impacted by an estimated $0.14 from COVID-19 deferrals [29] Business Line Data and Key Metrics Changes - The OMDAC program contributed $158 million of revenue during the first nine months of the year and has been extended through the end of February next year [30] - Total backlog was $3.7 billion, with a trailing 12-month book-to-bill ratio of 1.5 times [30] Market Data and Key Metrics Changes - The company reported a strong pipeline of new opportunities, with $1.7 billion of submitted bids and $8.3 billion of qualified opportunities planned for bidding in the next 12 months [22] - Over 90% of the work performed is funded from the DoD's Operations & Maintenance funding source, which has shown resilience through various economic cycles [24][25] Company Strategy and Development Direction - The company aims to achieve $2.5 billion in revenue by 2023 and a 7% EBITDA margin, focusing on sustainable margin improvement through enterprise initiatives [53] - Continued expansion of capabilities and client base through M&A is a priority, alongside executing on existing programs [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the 2020 outlook and reiterated full-year guidance, despite challenges posed by the pandemic [17][33] - The company remains focused on maintaining operational readiness and adapting to COVID-19 conditions while pursuing growth opportunities [36] Other Important Information - The company was awarded a prime contract for the Navy Smart Warehouse Prototype 5G Applications, marking a strategic milestone in converged infrastructure [10][12] - The backlog continues to grow at double-digit rates, up 23% year-over-year [15] Q&A Session Summary Question: Delay in OMDAC award - Management expects to hear on the OMDAC recompete by the end of the year, with no specific timing concerns [44] Question: New business pipeline changes - Management noted that the overall pipeline remains robust despite a slight decrease in total numbers, with a focus on converged infrastructure opportunities [45] Question: Demand from clients outside the Army - Management highlighted emerging Navy opportunities in the INDOPACOM area that could utilize the LOGCAP contract, indicating a growing presence in the region [46]