V2X Inc (NYSE:VVX) stock rose 9.99% (As on March 5, 11:13:35 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the fourth quarter of FY 23. For the quarter, the Company reported operating income of $38.5 million and adjusted operating income of $76.2 million. Adjusted EBITDA was $82.1 million with a margin of 7.9%. Net cash provided by operating activities was $188.0 million year to date. Adjusted net cash provided by operating activities year to date was $159.5 million, adding back $26.9 million of M&A and integration costs with $13.4 million of CARES act payments, and removing the contribution of the master accounts receivable purchase or MARPA facility of $68.8 million. Solid cash generation enabled net debt reduction of $137.1 million for the year. At the end of the quarter, net debt for V2X was $1,083.6 million. Net consolidated indebtedness to EBITDA1 (net leverage ratio) was 3.3x, improved from 3.7x at the end of 2022. Additionally, the company believes the strong fundamentals will allow V2X to achieve a net leverage ratio at or under 3.0x by the end of 2024. Total backlog as of December 31, 2023, was $12.8 billion. Funded backlog was $2.8 billion. Bookings in the quarter were $0.6 billion, resulting in a trailing twelve-month book-to-bill of 1.1x. It’s important to note that backlog and bookings do not include the full performance period of the $400 million FMS program as the contract is being definitized and the $458 million F-5 Adversary aircraft award, discussed last quarter, as it remains in protest.
VXX in the fourth quarter of FY 23 has reported the adjusted earnings per share of $1.22, beating the analysts’ estimates for the adjusted earnings per share of $1.10. The company had reported the adjusted revenue growth of 6.4 percent to $1.04 billion in the fourth quarter of FY 23, beating the analysts’ estimates for revenue of $1.01 billion. Revenue growth in the quarter was achieved through exceptional team performance delivering milestones ahead of schedule, expansion on existing programs, and new business. This solid execution resulted in year-over-year revenue growth of 31% in the Pacific and 18% in the Middle East.
Based on the positive trends in the business the company setting the mid-point of the guidance for revenue and Adjusted EBITDA at $4.150 billion and $308 million, respectively, representing approximately 5% year-over-year growth. The company expects revenue and adjusted EBITDA to be weighted more heavily in the second half of the year.