NASDAQ$VSEC

VSE Corporation · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Revenue increased 38% year-over-year, with Aviation segment achieving a record $105 million revenue quarter.

VSE Corporation reported strong second-quarter results, driven by revenue growth across all segments and focused execution on new program wins. Total revenues increased by 38% year-over-year, with the Aviation segment achieving a record revenue quarter. The company continued to advance its growth and diversification strategy, focusing on aftermarket parts distribution and MRO services.

  • Total revenues increased 38% year-over-year to $241.7 million.
  • GAAP Net Income increased $19.9 million to $7.5 million.
  • Aviation segment revenue increased 121% year-over-year to a record $105.0 million.
  • Fleet segment revenue increased 12% year-over-year, with commercial revenue up 48%.

Headline financials

Total Revenue

$242M

Previous: $175M+38.0%
EPS (adj)

$0.75

Previous: $0.60+25.0%
Adjusted EBITDA

$22.9M

No prior period
Capital Expenditures

-$2.75M

Previous: -$5.16M+46.8%
Free Cash Flow

$4.8M

Previous: -$17.5M+127.4%
Net Income

$7.55M

Previous: -$12.4M+161.0%
Operating Income

$14.2M

Previous: -$12.7M+211.3%
Gross Profit

$14.2M

Previous: -$12.7M+211.3%
Cash & Equivalents

$371K

Previous: $337K+10.1%
Total Assets

$947M

Previous: $850M+11.4%
Stock-Based Comp

$1.37M

Previous: $841K+62.5%

Revenue & EPS history

VSE · Revenue · Quarterly

$242M

Q2 2022+38%vs Q2 2021
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

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

  • Aviation
    $61M+42.3%

Forward guidance

VSE expects to generate positive cash flow for the full year, as well as a corresponding improvement in net leverage.

Tailwinds

  • Continued growth and diversification strategy.
  • Focused execution on new program wins.
  • Strong year-over-year growth in revenue and profitability.
  • Record-revenue quarter within both Aviation and commercial Fleet.
  • Demand for products and services in growing, fragmented markets.

Headwinds

  • Expiration of a certain U.S. Army contract.
  • Decline in segment adjusted EBITDA due to a higher mix of cost-plus contracts.
  • Decrease in bookings primarily driven by the expiration of a certain U.S. Army contract.
  • Russia/Ukraine conflict
  • Net cash used in operating activities

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 2022

Historical avgQ2 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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