V2X, Inc.

Thank you for joining us for the V2X fourth quarter and full year 2023 earnings conference call and webcast. Today's call is being recorded. My name is Maria and I'll be the operator for today's call. At this time, all participants have been placed in a listen-only mode. Following management's presentation, I will open the call up for a Q&A session. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. And now, I'll pass the call over to your host, Mike Smith, Vice President of Treasury, Investor Relations, and Corporate Development at V2X. You may go ahead, sir.

Thank you. Good morning, everyone. Welcome to the V2X fourth quarter and full year 2023 earnings conference call. Joining us today are Chuck Crowe, President and Chief Executive Officer, and Sean Morrell, Senior Vice President and Chief Financial Officer. Slides for today's presentation are available on the investor relations section of our website, gov2x.com. Please turn to slide two. During today's presentation, management will be making forward-looking statements pursuant to the safe harbor provisions of the federal securities laws. Please review our safe harbor statements in our press release and presentation materials for a description of some of the factors that may cause actual results to differ materially from the results contemplated by these forward-looking statements. The company assumes no obligation to update its forward-looking statements. Additionally, I would like to point out that in addition to GAAP earnings, we will be discussing and reporting various adjusted non-GAAP metrics, including adjusted EBITDA and margin, adjusted operating cash flow, adjusted net income, and adjusted diluted earnings per share. The definition of these non-GAAP measures can be found in our presentation materials available on our Investor Relations website and in our press release filed with the SEC. At this time, I'd like to turn the call over to Chuck Probe.

Thank you, Mike, and good morning, everyone. Thank you for joining us on the call today. Please turn to slide three. Before we get started, I'd like to thank you over 16,000 V2X employees for their contributions, and in particular, their performance. during the fourth quarter to end 2023 on a high note. I just returned from a trip to the Middle East, visiting our clients and people. The feedback I received from our clients underscore the unwavering service, agility, innovation, and technology-enabled solutions that we are delivering in support of their most critical missions. It's this around-the-clock, around-the-globe commitment to our clients that will drive our continued leadership and growth. Please turn to slide four. The transformation of V2X continues. Organic and inorganic growth, which improves scale, profitability, diversification, and capabilities, has allowed us to emerge as a leader in the operational segment of the broader federal services marketplace. Our company is purpose-built across an expanded client, contract, and geographic footprint to deliver value in this market. Our market has witnessed significant structural changes in recent years and continues to rapidly evolve. We are advancing how missions are operated by leveraging converged and engineered solutions at the intersection of technology and operations. This includes modernization and sustainment support that elongates platform life cycles while enhancing capabilities. These improved outcomes yield greater value for our clients and shareholders while providing greater opportunities for our people. Please turn to slide five. Topline momentum extended into the fourth quarter with revenues once again exceeding $1 billion. This resulted in revenue growth of 6% year-over-year and 4% sequentially. Revenue for the full year increased 8% on a pro forma basis to $3.96 billion, which was also ahead of our guidance range. Revenue in the fourth quarter was driven by 31% year-over-year growth in the Pacific. and 18% in the Middle East. Our work in the Pacific, or Indo-Pacom, continued to expand, reaching $71.2 million, a record for V2X, and was particularly impressive given the Talisman Sabre exercises that occurred in the first half of this year. This is a testament to our team's ability to drive on-contract growth while further expanding our services and footprint in the region. Our growth in the Middle East was partially driven by increased scope and services with the Department of State. This expansion builds on our initial work awarded in early 2023 that at the time represented our most substantive win with State. I recently had the opportunity to meet with our client and team supporting this effort and I'm exceptionally pleased with how we have been able to deliver successful outcomes at speed and ahead of schedule for this critical operations and logistics effort. We remain excited about the opportunity to expand our relationship with this client through our global presence and capabilities that are ideally suited to support state's worldwide missions and strategy. The strong revenue performance in the quarter yielded solid profitability with adjusted EBITDA of $82.1 million or 7.9% margin. For the year, adjusted EBITDA was $293.9 million, or 7.4% margin. Cash flow was notable during the quarter, resulting in year-to-date adjusted cash flow from operations at $159.5 million, which was ahead of our guidance range. This strong cash generation equates to a net leverage ratio of 3.3 times. Our engineering, integration, and modernization and sustainment solutions are gaining momentum with approximately $70 million of awards to V2X in the quarter. Importantly, we recently demonstrated these capabilities through the successful design and fielding of a defense platform that leveraged and enhanced existing systems. This effort originally started as an engineering development prototyping effort with a new client and today has yielded a brand new product that's designed, produced, and sustained by V2X. We see substantial opportunity to further expand our revenue and market presence associated with these capabilities. For example, we continue to be optimistic regarding the growth prospects associated with our proprietary Gateway Mission Router 1000 or GMR-1000. As mentioned on past calls, this family of products is a fully ruggedized and cyber-hardened multi-domain router that provides cutting-edge situational awareness. B2X continues to increase its Army footprint by integrating on additional different air and ground platforms. During the quarter, we submitted our proposal for a sole-sourced RFP, which includes production for up to 3,000 GMRs. In addition, we are seeing good traction with potential new clients that have acknowledged GMR-1000's capabilities and maturity for other applications. Building on our momentum in the Middle East, I am pleased to announce that during the quarter, V2X was awarded a new task order with the U.S. Air Force valued at $100 million over the next five years. Under this award, V2X will provide civil engineering and infrastructure support services to the U.S. Air Force in the region. We are honored to have been selected to support such an important mission and look forward to building on our exemplary service with the Air Force. Additionally, V2X recently achieved a significant milestone, the company's first substantial Ford military sales win, which provides aviation support and training to an FMS client in the Middle East. The overall op tempo in the region remains elevated, and the demand signals from our clients remain heightened. To date, the majority of current requirements are generally being routed to our existing contracts. However, we believe emerging requirements could result in new contracts or task orders. Please turn to slide six, where I will demonstrate our recent FMS win and multi-year campaign. Over the past few years, we have methodically planned and invested in our foreign military sales campaign, which is now yielding results. As mentioned, we were recently awarded a long-term aviation support and training contract in the Middle East. The award is valued at approximately $400 million over the next five years and was an exceptional win for V2X, representing a culmination over two years of planning and engagement. The majority of the award is not included in our fourth order backlog as the contract is being definitized. Our team is currently working on transition-related activities and expect to have the contract operating at full run rate in the second half. Our evolution as a company has been unable to participate in this market. With this new work, the total awarded value of our FMS portfolio is approximately $700 million, with accretive margins across eight countries. Looking ahead, we see a near-term pipeline of FMS opportunities valued at approximately $5 billion. As such, we are continuing to invest and pursue opportunities that leverage our geographic footprint, robust partnerships, and enhanced capability where V2XK delivered differentiated, cost-effective solutions. Please turn to slide seven. Our ability to deliver unique and differentiated solutions is driving momentum in our business that is visible in our leading growth indicators. For example, total backlog at the end of the year was $12.8 billion, up from $12.3 billion last year, and provides solid top-line visibility moving into 2024. It's important to note that backlog does not include the full performance period of the previously mentioned FMS win or the $458 million F5 adversary program as the award remained in protest status. Our pipeline of bids submitted stands at over $9 billion, a company high, and is up substantially from $6 billion last quarter, reflecting the somewhat muted award environment. Our business development engine is geared to support future backlog and revenue expansion with a $15 billion pipeline of opportunities expected to be submitted over the next 12 months. Finally, our visibility is enhanced by the limited re-competes we are facing throughout the year. At the midpoint of our 2024 guidance, re-competes comprise less than 5% of our revenue mix. To summarize, V2X's leading growth indicators, strong backlog, notable recent awards, and limited re-competes provides an excellent foundation and solid visibility moving into 2024. Now, I'd like to turn the call over to Sean for a review of the financials. Sean?