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Mar 31, 2024
VSE Q1 2024 Earnings Report
VSE Corporation reported record revenue and profitability for the Aviation segment.
Key Takeaways
VSE Corporation announced strong first-quarter 2024 results, marked by a 28.1% increase in total revenues to $241.5 million and a 49.0% increase in GAAP net income to $12.1 million. The Aviation segment was a key driver, with a 43% revenue increase and record Adjusted EBITDA margins.
Total revenues increased by 28.1% to $241.5 million.
GAAP Net Income increased by 49.0% to $12.1 million.
Aviation segment revenue increased by 43% to $162.4 million.
Fleet segment revenue increased by 5% to $79.2 million.
Revenue by Segment
Forward Guidance
VSE is increasing its full-year 2024 revenue growth and Adjusted EBITDA margin guidance for its Aviation segment and revising its full-year 2024 revenue growth and Adjusted EBITDA margin guidance for its Fleet segment.
Positive Outlook
- Aviation segment full-year 2024 revenue guidance range is increasing from 24% to 28% to 34% to 38% growth, as compared to the prior year, to reflect both current business performance and current year contributions from the recent TCI acquisition.
- Aviation segment full-year 2024 Adjusted EBITDA margin guidance range is increasing from 15% to 16% to 15.5% to 16.5%.
Challenges Ahead
- Fleet segment full-year 2024 revenue guidance range is decreasing from 13% to 17% to a 0% to 5%, as compared to the prior year.
- The USPS has decided to migrate all of their vehicle maintenance facilities to a new Fleet Management Information System ("FMIS") in 2024, which is resulting in a temporary decline in the number of transactions processed at converted facilities. To date, the USPS has migrated one-third of their facilities to this new system and expects to convert the remaining facilities by the end of the third quarter of 2024. As a result, the Company expects USPS revenue to decline 30% to 35% for the full year 2024, offset by an approximate 40% increase in commercial revenue.
- Fleet segment full-year 2024 Adjusted EBITDA margin guidance is 6% to 8%, driven by lower USPS sales volume and an increased mix of commercial customers.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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