NASDAQ$VSEC

VSE Corporation · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

VSE Corporation's financial performance in Q1 2021 reflected a mix of revenue decline and net income increase, driven by strategic growth initiatives and market dynamics.

VSE Corporation reported a 7.0% decrease in total revenues to $165.0 million, but a 53.4% increase in GAAP net income to $5.1 million. The company's Fleet segment revenue increased, while Aviation segment revenue declined due to the impact of the COVID-19 pandemic. The company focused on business transformation initiatives and secured new contract awards.

  • Total revenues decreased by 7.0% to $165.0 million compared to the same period last year.
  • GAAP Net Income increased by 53.4% to $5.1 million.
  • Fleet segment revenue increased by 2.9% year-over-year.
  • Aviation segment revenue declined by 12.0% year-over-year, excluding divested assets.

Headline financials

Total Revenue

$165M

Previous: $177M-7.0%
EPS (adj)

$0.44

Previous: $0.89-50.6%
Capital Expenditures

-$2.11M

Previous: -$724K-191.3%
Free Cash Flow

$3M

Previous: $2.61M+15.1%
Net Income

$5.11M

Previous: $3.33M+53.4%
Operating Income

$9.6M

Previous: $9.73M-1.3%
Gross Profit

$9.6M

Previous: $16.2M-40.6%
Cash & Equivalents

$347K

Previous: $543K-36.1%
Total Assets

$853M

Previous: $811M+5.1%
Stock-Based Comp

$1.42M

Previous: $897K+57.7%

Revenue & EPS history

VSE · Revenue · Quarterly

$165M

Q1 2021-7%vs Q1 2020
Beat estimate in 5 of 7 quarters(71%)
ActualEstimate

Revenue by segment

VSE · $61M total across 1 segment · Q4 2019

  • Aviation
    $61M+42.3%

Forward guidance

VSE anticipates significant returns on recent business wins and working capital investments in new inventory during 2021 in 2022 and beyond. Disciplined balance sheet management remains a priority and the company anticipates ending 2021 in a similar leverage position as compared to 2020, targeting a long-term net leverage ratio of 2.5x.

Tailwinds

  • Aviation segment distribution revenue returned to pre-pandemic levels during the first quarter.
  • VSE anticipates an increase in B&GA and commercial domestic travel will lead the recovery, creating new opportunities for our business as traffic levels improve into 2022.
  • VSE remains well-capitalized to support the ongoing growth of the business.
  • Significant returns on recent business wins will be seen in 2022 and beyond.
  • Disciplined balance sheet management remains a priority.

Headwinds

  • New business wins will require working capital investments in new inventory during 2021.
  • Revenue passenger miles remain below historical levels.
  • Total revenues of $165.0 million declined 7.0%.
  • Adjusted Net Income of $5.3 million declined 45.6%.
  • Adjusted EBITDA of $15.6 million declined 31.5%.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

+1.9%

Avg return

Earnings day

+0.5%

Avg return

5 days after

+2.2%

Avg return

30 days after

49%

32 / 65 earnings

Positive

+34.8%

Q3 2015

Best reaction

-20.5%

Q4 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-3.1%-9.5%-9.4%
Q4 2025+3.0%-1.3%-22.2%
Q3 2025-1.3%-1.0%-1.4%
Q1 2025+7.9%+11.3%+13.2%
Q4 2024+16.7%+14.8%+15.5%
Q3 2024+7.6%+13.6%+11.6%
Q2 2024-3.3%-11.4%+6.8%
Q1 2024-4.9%-10.8%-3.3%
Q4 2023+3.6%+0.2%+10.3%
Q3 2023+8.8%+8.8%+14.2%
Q2 2023-2.3%+0.6%-0.1%
Q1 2023+25.7%+13.1%+11.2%
Q4 2022-20.5%-28.2%-25.1%
Q3 2022-0.8%+6.7%+12.5%
Q2 2022+15.1%+16.6%+23.3%
Q1 2022+17.0%+5.5%+0.9%
Q4 2021-4.9%-9.0%-15.6%
Q3 2021+11.7%+11.4%+15.9%
Q2 2021-3.1%-7.4%-5.0%
Q1 2021+0.1%+3.6%+7.7%
Q4 2020+0.9%+6.0%+3.6%
Q3 2020-3.1%+2.7%+16.2%
Q2 2020+3.8%+0.9%+4.8%
Q1 2020-0.9%-11.2%+28.8%
Q4 2019+3.9%-6.0%-35.2%
Q3 2019+17.7%+16.2%+20.8%
Q2 2019+14.2%+17.6%+24.2%
Q1 2019-5.2%-8.2%-20.8%
Q4 2018-3.0%-3.5%-12.1%
Q3 2018+9.8%+7.1%+1.4%
Q2 2018-5.1%-8.5%-18.1%
Q1 2018-0.6%-2.5%-3.6%
Q4 2017-2.1%+0.3%+6.6%
Q3 2017-13.8%-15.4%-17.2%
Q2 2017+9.2%+18.8%+11.3%
Q1 2017-2.6%-1.9%-3.6%
Q4 2016+0.0%-2.9%-4.6%
Q3 2016-7.3%-6.9%+26.6%
Q2 2016-6.3%-8.7%-3.4%
Q1 2016-9.2%
Q4 2015+9.7%
Q3 2015+34.8%
Q2 2015-2.5%
Q1 2015-7.3%
Q4 2014-1.0%
Q3 2014+4.2%
Q2 2014-9.4%
Q1 2014+4.3%
Q4 2013+0.0%
Q3 2013-9.2%
Q2 2013+4.7%
Q1 2013-0.3%
Q4 2012+2.3%
Q3 2012-0.6%
Q2 2012-1.7%
Q1 2011+6.7%
Q1 2012+0.2%
Q4 2009+1.4%
Q4 2011+1.4%
Q3 2011-7.2%
Q2 2011+12.9%
Q4 2010+12.9%
Q3 2010-6.8%
Q2 2010-0.3%
Q1 2010+0.1%

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