VSE Corp. (NASDAQ:VSEC) Q4 2019 Earnings Conference Call - Final Transcript

Feb 28, 2020 • 08:30 am ET


VSE Corp. (NASDAQ:VSEC) Q4 2019 Earnings Conference Call - Final Transcript


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Greetings and welcome to the VSE Corporation Fourth Quarter 2019 Earnings Conference Call. [Operator Instructions]

It is now my pleasure to introduce your host, Christine Kaineg, Head of Investor Relations. Thank you. You may begin.

Christine Kaineg

Hello, and welcome to VSE Corporation's fourth quarter and full year 2019 results conference call.

Leading the call today are President and CEO, John Cuomo, and Tom Loftus, our Chief Financial Officer.

Today's discussion contains forward-looking statements about future business and financial expectations. Actual results may differ significantly from those projected in today's forward-looking statements due to various risks and uncertainties, including the risks described in our periodic reports filed with the SEC. Except as required by law, we undertake no obligation to update our forward-looking statements.

We are using non-GAAP financial measures in our presentation. The appropriate GAAP financial reconciliations are incorporated into our presentation where available, which is posted on our website. All percentages in today's discussion refer to year-over-year progress, except as noted.

At the conclusion of our prepared remarks, we will open up the call for questions. Please email your questions to questions@vsecorp.com, and we will answer as many as possible during the allotted time.

With that, I would like to turn the call over to John Cuomo for his prepared remarks.

John Cuomo

Thank you, Christine. Welcome, everyone, and thank you for taking the time to join our fourth quarter earnings call.

We will begin with an overview of our business and operating segments, followed by a summary of our 2019 financials. Tom will provide more detail on our fourth quarter and fiscal year 2019 financial performance. And I will finish our call with additional detail on our operating segments and an overview of our strategy for 2020 before turning the call back to Christine to facilitate our question-and-answer session.

As this is the first ever quarterly earnings call in the Company's history, I'd like to take a moment to introduce myself while providing a high level overview of our Company and operating segments. I joined VSE as CEO just over nine months ago, having previously led a division of a public aerospace and defense company. Under my leadership, VSE intends to take a more active role in engaging with our key stakeholders, including our institutional investors and the broader analyst community. Consistent with this mandate, you can expect to see increased transparency and consistency in our public communications going forward.

With that, let's turn to slide 3 of the investor presentation. At its core, VSE is a global aftermarket provider of distribution, repair and consulting services for land, sea and air transportation assets. We report and operate under three business segments: our Aviation Group, our Supply Chain Management Group and our Federal Services Group.

Our Aviation Group provides component and engine accessory repair, parts supply and distribution and supply chain solutions for our global aftermarket commercial and business and general aviation customers. Aviation represented 30% of 2019 revenue.

Our Supply Chain Management Group provides parts supply, inventory management, e-commerce fulfillment, logistic, data