V2X, Inc. Files Q3 2024 10-Q Report

TL;DR

V2X Q3 10-Q filed. Financials and ops details out.

AI Summary

V2X, Inc. filed its 10-Q for the period ending September 27, 2024. The company, formerly Vectrus, Inc., is involved in facilities support management services. Key financial data and operational segments are detailed within this quarterly report.

Why It Matters

This filing provides investors and analysts with the latest financial performance and operational updates for V2X, Inc., crucial for understanding the company's current health and future prospects.

Risk Assessment

Risk Level: low — This is a standard quarterly financial filing with no immediate red flags.

Key Players & Entities

• V2X, Inc. (company) — Filer of the 10-Q
• Vectrus, Inc. (company) — Former name of V2X, Inc.
• 20240927 (date) — End of the reporting period
• 20241104 (date) — Filing date

FAQ

Key Financial Figures

• $0.01 — ich registered Common Stock, Par Value $0.01 Per Share VVX New York Stock Exchange

Filing Documents

• vec-20240927.htm (10-Q) — 1192KB
• ex311ceocert9272024.htm (EX-31.1) — 10KB
• ex312cfocert9272024.htm (EX-31.2) — 10KB
• ex321ceocert9272024.htm (EX-32.1) — 5KB
• ex322cfocert9272024.htm (EX-32.2) — 5KB
• 0001601548-24-000021.txt ( ) — 5972KB
• vec-20240927.xsd (EX-101.SCH) — 40KB
• vec-20240927_cal.xml (EX-101.CAL) — 60KB
• vec-20240927_def.xml (EX-101.DEF) — 158KB
• vec-20240927_lab.xml (EX-101.LAB) — 455KB
• vec-20240927_pre.xml (EX-101.PRE) — 312KB
• vec-20240927_htm.xml (XML) — 898KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION 4 Item 1.

Financial Statements (Unaudited)

Financial Statements (Unaudited) 4 Condensed Consolidated Statements of (Loss) Income 4 Condensed Consolidated Statements of Comprehensive (Loss) Income 5 Condensed Consolidated Balance Sheets 6 Condensed Consolidated Statements of Cash Flows 7 Condensed Consolidated Statements of Changes to Shareholders' Equity 8 Note 1. Description of Business and Summary of Significant Accounting Policies 10 Note 2. Recent Accounting Standards Update 11 Note 3. Revenue 11 Note 4. Receivables 14 Note 5. Debt 14 Note 6. Derivative Instruments 16 Note 7. Commitments and Contingencies 17 Note 8. Stock-Based Compensation 18 Note 9. Income Taxes 19 Note 10. Earnings Per Share 19 Note 11. Post-Employment Benefit Plans 20 Note 12. Sale of Receivables 20 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 22 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 30 Item 4.

Controls and Procedures

Controls and Procedures 31

OTHER INFORMATION

PART II. OTHER INFORMATION 31 Item 1.

Legal Proceedings

Legal Proceedings 31 Item 1A.

Risk Factors

Risk Factors 32 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 32 Item 3. Defaults Upon Senior Securities 32 Item 4. Mine Safety Disclosures 32 Item 5. Other Information 32 Item 6. Exhibits 32

Signatures

Signatures 33 Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS V2X, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) (UNAUDITED) Three Months Ended Nine Months Ended September 27, September 29, September 27, September 29, (In thousands, except per share data) 2024 2023 2024 2023 Revenue $ 1,081,656 $ 1,001,507 $ 3,164,403 $ 2,922,819 Cost of revenue 990,220 930,828 2,928,858 2,685,910 Selling, general, and administrative expenses 41,549 49,640 127,901 151,021 Operating income 49,887 21,039 107,644 85,888 Loss on extinguishment of debt — — ( 1,998 ) ( 22,052 ) Interest expense, net ( 27,152 ) ( 30,252 ) ( 83,533 ) ( 93,946 ) Other expense, net ( 3,198 ) ( 2,024 ) ( 9,566 ) ( 2,335 ) Income (loss) from operations before income taxes 19,537 ( 11,237 ) 12,547 ( 32,445 ) Income tax expense (benefit) 4,486 ( 4,837 ) 2,896 ( 10,364 ) Net income (loss) $ 15,051 $ ( 6,400 ) $ 9,651 $ ( 22,081 ) Earnings (loss) per share Basic $ 0.48 $ ( 0.21 ) $ 0.31 $ ( 0.71 ) Diluted $ 0.47 $ ( 0.21 ) $ 0.30 $ ( 0.71 ) Weighted average common shares outstanding - basic 31,550 31,179 31,458 31,048 Weighted average common shares outstanding - diluted 31,973 31,179 31,921 31,048 The accompanying notes are an integral part of these financial statements. 4 Table of Contents V2X, INC. CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) Three Months Ended Nine Months Ended September 27, September 29, September 27, September 29, (In thousands) 2024 2023 2024 2023 Net income (loss) $ 15,051 $ ( 6,400 ) $ 9,651 $ ( 22,081 ) Other comprehensive (loss) income, net of tax Changes in derivative instruments: Net change in fair value of interest rate swaps ( 10,247 ) 4,170 ( 4,785 ) 9,481 Tax benefit (expense) 2,523 ( 1,759 ) 1,220 ( 3,203 ) Net change in derivative instruments ( 7,724 ) 2,411 ( 3,565 ) 6,278 Foreign currency translation adjustments, net of tax 4,574 ( 2,324 ) 1,305 ( 96 ) Other comprehensive (loss) income, net of tax ( 3,150 ) 87 ( 2,260 ) 6,182

Business

Business V2X, Inc., an Indiana Corporation, formerly known as Vectrus, Inc. (Vectrus), is a leading provider of critical mission solutions and support to defense clients globally. The Company operates as one segment and delivers a comprehensive suite of integrated solutions and critical service offerings across the operations and logistics, aerospace, training and technology markets to national security, defense, civilian and international clients. Unless the context otherwise requires or unless stated otherwise, references in these notes to "V2X", "we," "us," "our," "combined company", "the Company" and "our Company" refer to V2X, Inc. and all of its consolidated subsidiaries, taken together as a whole. Equity Investments In 2011, the Company entered into a joint venture agreement with Shaw Environmental & Infrastructure, Inc., which is now APTIM Federal Services LLC. Pursuant to the joint venture agreement, High Desert Support Services, LLC (HDSS) was established to pursue and perform work on the Ft. Irwin Installation Support Services Contract, which was awarded to HDSS in October 2012. In 2018, the Company entered into a joint venture agreement with J&J Maintenance. Pursuant to the joint venture agreement, J&J Facilities Support, LLC (J&J) was established to pursue and perform work on various U.S. government contracts. In 2020, the Company entered into a joint venture agreement with Kuwait Resources House for Human Resources Management and Services Company . Pursuant to the joint venture agreement, ServCore Resources and Services Solutions, LLC (ServCore) was established to operate and manage labor and life support services outside of the continental United States at designated locations serviced by V2X and others around the world. In February 2022, the Company and Permagreen Grnland formed Inuksuk A/S (Inuksuk), a corporation in Greenland to bid for certain contracts in Greenland. The Company accounts for its investments in HDSS, J&J, ServCore, and Inuksuk

View Full Filing

View this 10-Q filing on SEC EDGAR