Vectrus Q4 2015 revenue up 9%

Vectrus, Inc. (NYSE: VEC) fourth quarter 2015 revenue of USD311.2 million was an increase of USD25.4 million or 8.9 percent compared to the fourth quarter of 2014, the company said.

The increase was due in large part to new contract startups and growth in Middle East business. Programs based in Afghanistan contributed USD39.2 million of revenue in the fourth quarter of 2015, down USD11.9 million compared to 2014.

Operating income was USD11.3 million or 3.6 percent operating margin in the fourth quarter of 2015, compared to USD8.1 million or 2.9 percent in the fourth quarter of 2014. Adjusted operating income1 was USD11.3 million or 3.6 percent margin in the fourth quarter of 2015 compared to USD8.6 million or 3.0 percent in the fourth quarter of 2014. Programs based in Afghanistan contributed USD2.2 million of operating income or 5.6 percent margin in the fourth quarter of 2015, down USD1.0 million compared to 2014.

For the year 2015, revenue of USD1,180.7 million declined USD22.6 million or 1.9 percent compared to 2014.

On an adjusted basis, 2015 revenue of USD1,180.7 million increased USD8.7 million or 0.7 percent compared to 2014. The increase is due to USD111.1 million increase in revenue from our core business, partially offset by a USD102.4 million decline in revenue from programs based in Afghanistan, as a result of lower service-level requirements. Programs based in Afghanistan contributed revenue of USD167.7 million in 2015.

Operating income was USD40.0 million, or 3.4 percent operating margin for the full-year 2015, compared to USD38.4 million or 3.2 percent in 2014. On an adjusted basis, operating income1 was USD43.4 million or 3.7 percent margin for the full-year 2015, compared to USD50.0 million or 4.3 percent in 2014, due to lower service-level requirements on Afghanistan contracts. Programs based in Afghanistan contributed USD10.5 million of operating income or 6.3 percent margin for full-year 2015 compared to USD24.3 million or 9.0 percent in 2014.

Full-year 2015 diluted earnings per share were USD2.86 compared to USD2.13 in 2014 and adjusted diluted earnings per share1 were USD2.23 compared to USD2.80 in 2014.

Cash provided by operating activities for the year ended December 31, 2015, was USD18.9 million, which is USD24.1 million lower when compared to 2014. Free cash flow1 was USD18.1 million for full- year 2015, which is USD21.0 million lower when compared to 2014, primarily due to early cash receipts on a couple of large contracts in 2014.