NASDAQ$VSEC

VSE Corporation · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Announced second quarter 2021 results.

VSE Corporation reported a revenue increase of 3.8% to $175.1 million. Adjusted net income increased 16.0% to $7.7 million, and Adjusted EBITDA increased 9.5% to $18.9 million.

  • Total Revenues of $175.1 million increased 3.8%.
  • GAAP Net Loss of $(12.4) million vs. $(22.6) million.
  • Adjusted Net Income of $7.7 million increased 16.0%.
  • Adjusted EBITDA of $18.9 million increased 9.5%.

Headline financials

Total Revenue

$175M

Previous: $169M+3.8%
EPS (adj)

$0.60

Previous: $0.60+0.0%
Capital Expenditures

-$5.16M

Previous: -$1.83M-182.2%
Free Cash Flow

-$17.5M

Previous: -$24.5M+28.3%
Net Income

-$12.4M

Previous: -$22.6M+45.3%
Operating Income

-$12.7M

Previous: -$21.9M+42.0%
Gross Profit

-$12.7M

Previous: $12.5M-201.7%
Cash & Equivalents

$337K

Previous: $213K+58.2%
Total Assets

$850M

Previous: $788M+8.0%
Stock-Based Comp

$841K

Previous: $416K+102.2%

Revenue & EPS history

VSE · Revenue · Quarterly

$175M

Q2 2021+3.8%vs Q2 2020
Beat estimate in 6 of 8 quarters(75%)
ActualEstimate

Revenue by segment

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

  • Aviation
    $61M+42.3%

Forward guidance

VSE anticipates a continued recovery in Aviation segment performance in the coming year, supported by recent contract wins, product and service line expansions, inorganic growth and improved operating efficiencies. Disciplined balance sheet management remains a key area of focus for our team, over the near to medium term, VSE expects working capital investments in new program inventory to drive incremental revenue and EBITDA, resulting in a decline in net leverage at or below historical levels by year-end 2022.

Tailwinds

  • Continued recovery in Aviation segment performance
  • Recent contract wins supporting Aviation segment
  • Product and service line expansions supporting Aviation segment
  • Inorganic growth supporting Aviation segment
  • Improved operating efficiencies supporting Aviation segment

Headwinds

  • Regional pandemic-related market dynamics
  • Aviation inventory for distribution agreements entered into before 2019
  • Lower expected demand for certain inventory supporting international customers impacted by the COVID-19 pandemic.
  • Sales mix-related factors impacting Fleet segment operating income
  • Working capital investments in new program inventory

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 Q2 2021

Historical avgQ2 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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