Sarah Sybert
Vectrus has announced its financial results for the third quarter, which ended Oct. 2, 2020. The company reported that the quarter revenue of $352.4 million was down slightly year on year by 2.1 percent due to COVID-19 pandemic related deferrals.
"Third quarter results were solid, reflecting improved volumes and margin levels," said Chuck Prow, president and CEO of Vectrus and 2020 Wash100 Award recipient. "In addition, we continued to execute well on our growth strategy on all fronts, particularly with respect to diversifying our revenue streams and advancing our leadership position in the converged infrastructure market.â€
For the third quarter, operating income was $14.8 million or 4.2 percent margin. Vectrus reported that adjusted operating income was $15 million or 4.3 percent margin.Â
Adjusted operating income was adversely impacted by the COVID-19 deferral of high-margin revenue due to base access restrictions into future periods of $2.1 million which had a 40-basis point impact to adjusted operating margin.
EBITDA was $16.9 million or 4.8 percent margin for the third quarter 2020, compared to $14.1 million or 3.9 percent margin in the third quarter 2019. Adjusted EBITDA was $17.0 million or 4.8 percent margin for the third quarter 2020, compared to $14.7 million or 4.1 percent margin in the third quarter 2019.Â
Vectrus’ third quarter 2020 diluted EPS was $0.88 compared to $0.67 in the third quarter 2019. Adjusted diluted EPS for the third quarter 2020 was $0.89 compared to $0.71 in the third quarter 2019. The company’s adjusted diluted EPS1 was adversely impacted due to COVID-19 by $0.14.
Cash provided by operating activities through Oct. 2, 2020 was $37.7 million, compared to net cash provided by operating activities of $28.4 million year-to-date 2019. The increase year-to-date over prior year is mainly driven by the CARES Act employee payroll tax deferrals of approximately $9.9 million.
"For the remainder of the year, we are focused on delivering on all of our programs while keeping our teams and our clients safe; growing our pipeline of opportunities in the converged infrastructure market; and pursuing strategic M&A," said Prow.
