V2X, Inc.

Thank you for joining us for the V2X First Quarter 2024 Earnings Conference Call and Webcast. Today's call is being recorded. My name is Rob, and I'll be the operator for today's call. At this time, all participants have been placed in listen-only mode. Following management's presentation, I'll open up the call for a Q&A session. If anyone should require operator assistance during the conference, please press star zero from your telephone keypad. And now I'll pass the call over to your host, Mike Smith, Vice President of Treasury, Investor Relations, and Corporate Development at V2X.

Thank you. Good morning, everyone. Welcome to the V2X First Quarter 2024 earnings conference call. Joining us today are Chuck Pro, President and Chief Executive Officer, and Sean Morrell, Senior Vice President and Chief Financial Officer. Today, Chuck will highlight the company's recent awards, as well as highlight some strategic initiatives. And then, Sean will walk us through the first quarter financial performance. 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. We 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'd 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 would like to turn the call over to Chuck Pro.

Thank you, Mike, and good morning, everyone. Thank you for joining us on the call today. Please turn to slide three. I'd like to thank our employees for all of their contributions and commitment to our client's missions that resulted in a great start to the year. In particular, I'd like to take a moment to recognize our veteran workforce. V2X remains a leading participant in the veterans ecosystem with almost 50% of our 16,000 employees having prior military service. Our veteran talent base has been key to V2X's growth and I am honored to announce that V2X has, once again, been recognized as a top military-friendly employer by Victory. On a similar note, this month will recognize Memorial Day. As we honor the brave men and women who gave their lives in the service of our country, I would like to thank all of those, past and present, who have served to protect our freedom. Please turn to slide four. V2X reported a great start to the year with revenue increasing 7% year over year. Revenue in the first quarter was driven by a 22% year over year growth in the Middle East and 7% in the Pacific. Our growth in the Middle East, or CENTCOM, was driven primarily by expansion in Qatar and our recent aviation support and training contract to support the Saudi Arabian Ministry of National Guard. This is a substantial foreign military sales program valued at approximately $400 million over five years. I am pleased to report that phase-in activities are well underway and the contract continues to ramp up. We anticipate the program to be operating at full run rate in the second half. As we have discussed previously, the demand signals from our clients in the region remain heightened. With the recent supplemental funding package, we are starting to see new requirements emerge. v2x is the top provider of services to the dod in the region and we remain ready to support our clients mission requirements we continue to demonstrate growth in the pacific or indopaycom with revenue in the region increasing seven percent year over year this growth highlights the successful execution of our strategy to expand offerings utilizing our geographic footprint our teams continue to demonstrate outstanding performance in indopaycom which is leading to greater number of opportunities to support our clients' increasing mission requirements. For example, B2X has been asked to support a series of smaller exercises in 2024 under Balaketan Salakhanip. This Indopaycom growth is particularly notable since 2023 included the more significant Pacific Exercises schedule that occurs in the odd number of years. Additionally, We are further expanding capabilities in the region, and I'm pleased to announce that just last week we were awarded a new $88 million contract with the U.S. Navy. Under the new five-year firm fixed price contract, V2X will provide IT O&M of Navy systems at the Naval Computer and Telecommunications Master Station Pacific. This one builds on our 40-year track record of providing cybersecurity, mission IT, and critical communications across the globe. I'll speak more on how we are expanding our offerings and existing business in the region shortly. Adjusted EBIT in the quarter was $69.1 million, or 6.8% margin. Adjusted EPS increased 8% year-over-year to $0.90. V2X is differentiating its capability offering through converged solutions that sit at the intersection of technology and operations. This differentiation has led to recent awards valued at $75 million to provide technology solutions for the threat detection and response to chemical, biological, radiological, and nuclear hazards. I'll describe this award in more detail shortly. Our agility and ability to deliver mission-critical capabilities on a global scale places V2X at a unique position to support our clients' evolving mission requirements and were demonstrated through recent notable awards. First, we were recently awarded over $140 million in task orders to continue providing support services to the U.S. Air Force in Jordan and Romania. The awards, which are firm fixed price, were made under the Air Force Contract Augmentation Program 5, which is a multiple award IDIQ contract that provides worldwide contingency and humanitarian support. The contract extends through May of 2031 and was recently modified to increase the program ceiling value to $15 billion from $6.4 billion. Second, and billing on ASCAP, during the first quarter, V2X was awarded a position on the U.S. Navy's Global Contingency Services Multiple Award Contract 3, or GCS MAC-3. The contract extends through April of 2032 and provides a similar scope of support services to ASCAP, but is executed by the Navy. The total contract ceiling value of GCS MAC3 is $2 billion, and V2X is one of six awardees. This ceiling value was significantly increased from the last version, which reached a ceiling value of $900 million. Importantly, we were the leading provider of services under the prior iteration of the contract, securing $300 million in task orders. We are honored to continue our support for the Navy and look forward to building on our track record of success. Please turn to slide five. B2X is creating more value in its core markets by inserting operational technologies into mission essential operations. This was recently exemplified through wind valued at $75 million to operationalize next generation solutions for threat detection and response to chemical, biological, radiological, and nuclear or CBRN hazards. Importantly, this work expanded from a prototype effort to a new sole source award for the production, upgrade, and fielding of cutting edge systems at overseas operational locations. As part of this effort, We are the lead systems integrator for the CBRN Support to Command and Control program. This program, known as CSC2, is the program of record for the integration of CBRN, which will link sensors together to provide integrated situational awareness about potential hazards to inform end-user decision-making. In addition to CSC2, V2X will modernize and re-architect the CBRN threat warning and notification application and predictive hazard propagation tools for enhanced operational decision support. These awards illustrate how we are harnessing technology-based solutions, operational expertise, and global footprint to address high consequence mission requirements. Please turn to slide six. One of our strategic imperatives includes enhancing value through technology expansion in our existing business. our teams are demonstrating this through recent new awards to provide 5g smart warehousing and integrated electronic security solutions as it relates to 5g and smart warehousing we were awarded additional scope under our existing logcat 5 contract to deploy an assured and protected private 5g communication solution and enable smart logistics in the philippines While currently small in value, we believe the solution is scalable across the DOPECOM region to provide protected and secure network infrastructure to support warehouse operations, field appointments, and exercises. This solution also aligns the type of investments the DoD is making as part of the Pacific Deterrence Initiative, or PDI. The DoD recently released its fiscal 2025 PDI budget which requests $9.9 billion, a 9% increase from the prior year, and a 59% increase from 2023. Beyond log cap, we also are supporting the design, implementation, testing, and operation of a private 5G cellular network and asset tracking support solution on Guam Naval Base. We continue to be optimistic about our ability to further expand these offerings on existing contracts. As it relates to electronic security, we remain a leader in providing integrated electronic security solutions that protect thousands of facilities and assets. Historically, these solutions have generally been procured on a standalone basis. However, I am pleased to announce that our team received a new task order under an existing contract vehicle in the Middle East. This award established as our solution in the region and displaces an incumbent. This further demonstrates our ability to insert technology solutions into operations and logistics programs. We believe we are positioned to grow from this initial step and deliver a modernized, integrated solution that significantly improves our clients' security posture. Building on the traction in the Middle East, we are also awarded the task to provide the initial establishment of this solution and capability in the Philippines. These two recent awards improve the installed base of our solutions and also offer an ongoing operations and maintenance opportunity. These wins would not have been possible without our unified approach to growth and sell-through business model that has inserting solutions through existing contracts. Please turn to slide seven. We believe our new business pipeline continues to support future backlog and revenue expansion Our pipeline of nearer-term opportunities for new business currently stands at approximately $25 billion, comprising $16 billion of bids expected to submit over the next 12 months and $9 billion of bids pending award. The pace of award activity was somewhat muted through the first quarter, but is increasing, with several notable bids expected to award this year. Importantly, our strategy and company-wide focus on converged solutions is evident in our pipeline metrics, with higher value in technology solutions comprising an increasing percentage of the total. As can be seen on the slide, over 50% of the bids we expect to submit in the next 12 months are tied to operational technology. engineered solutions, and training versus 20% of bids pending award. This demonstrates the enhanced capability that V2X brings to the market across a more diversified client base. We believe our pipeline, strong backlog, limited re-competes, and budgetary environment provides continued confidence and visibility to achieve our commitments. Now, I'd like to turn the call over to Sean for a review of the financials. Sean?