NASDAQ$VSEC

VSE Corporation · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Reported record revenue and profitability for the Aviation segment and raised full-year revenue guidance for Aviation segment.

VSE Corporation announced strong Q3 2023 results, driven by record performance in the Aviation segment and continued growth in the Fleet segment. Total revenues increased by 38.2%, and GAAP net income rose by 57.3%. The company also made strategic acquisitions and optimized its balance sheet.

  • Total revenues increased by 38.2% to $231.4 million.
  • GAAP Net Income increased 57.3% to $12.1 million.
  • Aviation segment revenue increased 48% year-over-year to a record $152.4 million.
  • Fleet segment revenue increased 22% year-over-year to $79.0 million.

Headline financials

Total Revenue

$231M

Previous: $242M-4.6%
EPS (adj)

$0.92

Previous: $0.76+21.1%
Adjusted EBITDA

$32.3M

Previous: $24M+34.8%
Capital Expenditures

-$10.8M

Previous: -$7.42M-45.6%
Free Cash Flow

-$1.24M

Previous: $2M-161.8%
Net Income

$9.56M

Previous: $9.42M+1.5%
Operating Income

$25.3M

Previous: $17.3M+46.3%
Gross Profit

$25.3M

Previous: $17.3M+46.3%
Cash & Equivalents

$20.7M

Previous: $90K+22863.3%
Total Assets

$1.34B

Previous: $958M+40.3%
Stock-Based Comp

$1.92M

Previous: $922K+107.9%

Revenue & EPS history

VSE · Revenue · Quarterly

$231M

Q3 2023-4.6%vs Q3 2022
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 increased its full year 2023 revenue growth and its Adjusted EBITDA margin guidance for its Aviation segment, reaffirmed its revenue growth and Adjusted EBITDA margin guidance for its Fleet segment, and expects positive free cash flow to accelerate in the fourth quarter.

Tailwinds

  • Aviation segment full year 2023 revenue growth of 30 to 35%, as compared to the prior year
  • Aviation segment Adjusted EBITDA margin expected to be at the higher end of the previously provided guidance range of 14 to 16%
  • Fleet segment full year 2023 revenue growth of 20 to 25%, as compared to the prior year
  • Fleet segment Adjusted EBITDA margin guidance range of 11 to 13%
  • The Company expects free cash flow to accelerate in the fourth quarter 2023

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 Q3 2023

Historical avgQ3 2023

+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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