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Mar 31, 2020
VSE Q1 2020 Earnings Report
VSE Corporation's first quarter results decreased compared to the same period last year, but adjusted net income and adjusted EBITDA increased.
Key Takeaways
VSE Corporation reported a decrease in GAAP net income and EPS, but an increase in adjusted net income, adjusted EPS, and adjusted EBITDA. Total revenue increased by 4.4%. The company is managing the impact of COVID-19 and expects to be profitable and free cash flow positive for the full year.
Total revenues increased by 4.4% compared to the first quarter of 2019.
GAAP Net Income decreased 49.5%.
Adjusted Net Income increased 32%.
Free Cash Flow increased by $5.6 million.
VSE
VSE
Forward Guidance
VSE expects to be profitable and free cash flow positive for the full year 2020, supported by stable revenue and profit in Federal & Defense and Fleet segments, disciplined expense management and targeted reductions in capital expenditures.
Positive Outlook
- Stable revenue and profit in Federal & Defense segment
- Stable revenue and profit in Fleet segment
- Disciplined expense management
- Targeted reductions in capital expenditures
- Expect to be profitable for the full year 2020
Challenges Ahead
- COVID-19 will have an adverse impact on our aviation business this year.
- Anticipates air travel, and therefore revenue passenger miles, to remain well below historical levels for the remainder of the current calendar year.
- Aviation segment performance to be adversely impacted in 2020.
- Decline in funded backlog was attributable to the expiration of a contract in January 2020.
- Decrease in first quarter 2020 operating income was primarily attributable to customer and product mix.