NASDAQ$VSEC

VSE Corporation · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

VSE Corporation experienced growth, driven by strong performance in the Aviation and Fleet segments.

VSE Corporation reported an 11% increase in total revenues to $234.3 million for Q4 2022, with GAAP net income decreasing by 22% to $4.8 million. Adjusted EPS increased by 28% to $0.68, and adjusted EBITDA increased by 29% to $22.9 million. The Aviation segment saw significant revenue growth, and the Fleet segment expanded its distribution capabilities.

  • Total revenues increased by 11% to $234.3 million.
  • GAAP Net Income decreased 22% to $4.8 million.
  • Adjusted EPS increased 28% to $0.68.
  • Aviation segment revenue grew by nearly 30%.

Headline financials

Total Revenue

$234M

Previous: $210M+11.5%
EPS (adj)

$0.68

Previous: $0.53+28.3%
Capital Expenditures

$3.8M

Previous: $2.91M+30.3%
Free Cash Flow

$8.46M

Previous: $10M-15.4%
Net Income

$4.8M

Previous: $6.2M-22.6%
Operating Income

$11.8M

Previous: $10.7M+9.8%
Gross Profit

$14.2M

Previous: $17.1M-17.1%
Cash & Equivalents

$305K

Previous: $518K-41.1%
Total Assets

$1B

Previous: $919M+8.8%
Stock-Based Comp

$868K

Previous: $964K-10.0%

Revenue & EPS history

VSE · Revenue · Quarterly

$234M

Q4 2022+11.5%vs Q4 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 anticipates continued growth, driven by strategic investments and market expansion.

Tailwinds

  • New distribution center expected to contribute $50 million in incremental sales to the Fleet segment in 2023.
  • Acquisition of Precision Fuel Components expands MRO capabilities in the B&GA and rotorcraft markets.
  • Focus on disciplined capital allocation and investments in accretive growth opportunities.
  • Expansion into the Asia Pacific region supporting the Pratt & Whitney Canada distribution agreement.
  • Federal & Defense segment received a 6-month contract extension to its Naval Sea Systems Command (NAVSEA) program.

Headwinds

  • Interest expense increased in the fourth quarter due to a higher Federal Funds Rate and the timing of cash flow in the quarter.
  • Margin compression in the Fleet segment was primarily driven by pre-launch expenses for the new Memphis-area distribution center.
  • Federal & Defense segment revenue decreased due to decline in U.S. Army work due to program completions.
  • Federal & Defense segment reported an operating loss primarily due to a contract loss recognized in the current quarter.
  • Adjusted EBITDA declined in Federal & Defense segment due to a higher mix of cost-plus contracts and program completion expenses.

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 Q4 2022

Historical avgQ4 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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