NASDAQ$VSEC

VSE Corporation · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Reported a 40% increase in revenue year-over-year, driven by growth across all reporting segments.

VSE Corporation reported strong first quarter 2022 results with a 40.2% increase in total revenues, a 22.2% increase in GAAP net income, and a 42.9% increase in adjusted EBITDA compared to the first quarter of 2021. The company's Aviation and Fleet segments saw significant revenue growth, and strategic initiatives are expected to continue driving value for shareholders.

  • Total Revenues increased by 40.2% to $231.2 million.
  • GAAP Net Income increased by 22.2% to $6.2 million.
  • Adjusted EBITDA increased by 42.9% to $22.2 million.
  • Aviation segment revenue increased 110% year-over-year to $93.3 million.

Headline financials

Total Revenue

$231M

Previous: $165M+40.2%
EPS (adj)

$0.72

Previous: $0.44+63.6%
Adjusted EBITDA

$22.2M

No prior period
Capital Expenditures

-$1.27M

Previous: -$2.11M+39.8%
Free Cash Flow

$4.98M

Previous: $3M+65.7%
Net Income

$6.24M

Previous: $5.11M+22.2%
Operating Income

$11.9M

Previous: $9.6M+24.1%
Gross Profit

$11.9M

Previous: $9.6M+24.1%
Cash & Equivalents

$498K

Previous: $347K+43.5%
Total Assets

$921M

Previous: $853M+8.0%
Stock-Based Comp

$1.31M

Previous: $1.42M-7.6%

Revenue & EPS history

VSE · Revenue · Quarterly

$231M

Q1 2022+40.2%vs Q1 2021
Beat estimate in 8 of 11 quarters(73%)
ActualEstimate

Revenue by segment

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

  • Aviation
    $61M+42.3%

Forward guidance

VSE anticipates continued growth and margin expansion, driven by new business wins, commercial MRO activity, and strategic revenue diversification. The company remains focused on stabilizing legacy programs and investing in higher-return businesses.

Tailwinds

  • VSE Aviation secured a renewal of a three-year, $180 million distribution agreement.
  • VSE Aviation reached an agreement with Honeywell Aerospace to provide repair services.
  • Fleet commercial revenue has grown to 42% of total segment revenue, up from 10% in 2019.
  • Federal & Defense continues to achieve steady increases in awards for logistics and distribution services.
  • Aviation segment adjusted EBITDA grew significantly due to new business wins and commercial MRO activity.

Headwinds

  • Commercial MRO market recovery in 2022 will be slightly slower than initially anticipated.
  • Fleet segment adjusted EBITDA margin declined due to a higher mix of commercial revenue and continued investment in commercial channel growth.
  • Federal & Defense segment reported an operating loss due to a contract loss provision.
  • Federal & Defense segment adjusted EBITDA declined due to a higher mix of cost-plus contracts.
  • Supply chain disruptions and cost inflation continue to present challenges.

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 2022

Historical avgQ1 2022

+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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