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Dec 31, 2020
VSE Q4 2020 Earnings Report
Announced fourth quarter and full-year 2020 results, highlighting strategic transformation and positioning for growth.
Key Takeaways
VSE Corporation reported a decline in total revenues and net income for Q4 2020 compared to Q4 2019, but is focused on strategic transformation and growth in 2021. Total revenues were $150.0 million, a 23.2% decrease, and GAAP net income was $6.0 million, a 39.8% decrease. The company is executing a multi-year business transformation plan with new business development initiatives and product/service line expansions.
Aviation segment revenue, excluding divestitures, declined 26.2% year-over-year due to reduced commercial MRO activity, but increased 6.5% sequentially from Q3 2020.
Fleet segment revenue increased 0.7% year-over-year, driven by growth in commercial fleet and e-commerce fulfillment.
Federal and Defense segment revenue declined 28.8% year-over-year due to the completion of a DoD program, but Adjusted EBITDA improved due to a more favorable contract mix.
VSE acquired HAECO Special Services to expand MRO capabilities for military customers.
VSE
VSE
Forward Guidance
VSE intends to expand product and service offerings, capture share gains, execute inorganic growth opportunities, and accelerate cultural transformation in 2021. The company is well-capitalized to support growth, with a focus on working capital investments and bolt-on acquisitions.
Positive Outlook
- Expand product and service offerings
- Capture share gains within underserved markets
- Execute inorganic growth opportunities
- Accelerate cultural transformation
- Well-capitalized to support growth in 2021