V2X, Inc 10-K for FY2021

V2X, Inc. (VVX)

10-K 2022-03-07 For: 2021-12-31

Added on April 07, 2026

About this 10-K

V2X, Inc filed this 10-K on March 7, 2022, covering the fiscal year ended December 31, 2021 (FY2021).

Headline figures

Fiscal year ended December 31, 2021, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $1.78B; up 27.8% from $1.4B a year earlier
Net income: $45.73M; up 23.8% from net income of $36.95M a year earlier
Diluted EPS: $3.86; up 22.9% from $3.14 a year earlier

Search and read filings like this one from Claude or ChatGPT with the SEC filings MCP server →


Indiana		38-3924636
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

2424 Garden of the Gods Road, Colorado Springs, Colorado 80919
(Address of Principal Executive Offices)		(Zip Code)
Registrant’s telephone number, including area code:
(719)	591-3600


Title of Each Class	Trading symbol(s)	Name of Exchange on Which Registered
Common Stock, Par Value $.01 Per Share	VEC	New York Stock Exchange


	Year Ended December 31,
(In thousands)	2021		2020		2019
Army	$	1,134,849	$	965,558	$	958,582
Air Force	266,291		299,272		306,767
Navy	224,407		68,748		56,236
Other	158,118		61,951		60,940
Total revenue	$	1,783,665	$	1,395,529	$	1,382,525


	Year Ended December 31,
Contract type	2021		2020		2019
Cost-plus and cost-reimbursable	71	%	68	%	73	%
Firm-fixed-price	25	%	29	%	24	%
Time and materials	4	%	3	%	3	%
Total revenue	100	%	100	%	100	%


	% of Total Revenue
	Years Ended December 31,
Contract Name	2021	2020	2019
K-BOSSS	15.8%	34.1%	35.8%
Logistics Civil Augmentation Program (LOGCAP) V - Kuwait Task Order	11.8%	—%	—%
Logistics Civil Augmentation Program (LOGCAP) V - Iraq Task Order	11.7%	—%	—%
OMDAC-SWACA	7.8%	14.2%	15.6%


	As of December 31,
(In millions)	2021		2020
Funded backlog	$	1,033	$	843
Unfunded backlog	3,972		4,221
Total backlog	$	5,005	$	5,064


	Year Ended December 31,						Change
(In thousands)	2021			2020			$		%
Revenue	$	1,783,665		$	1,395,529		$	388,136	27.8	%
Cost of revenue	1,623,245			1,271,375			351,870		27.7	%
% of revenue	91.0		%	91.1		%
Selling, general and administrative	98,400			80,679			17,721		22.0	%
% of revenue	5.5		%	5.8		%


Operating income	62,020			43,475			18,545		42.7	%
Operating margin	3.5		%	3.1		%
Interest expense, net	(7,985)			(4,793)			(3,192)		66.6	%

Income before taxes	54,035			38,682			15,353		39.7	%
% of revenue	3.0		%	2.8		%
Income tax expense	8,307			1,731			6,576		379.9	%
Effective income tax rate	15.4		%	4.5		%
Net Income	$	45,728		$	36,951		$	8,777	23.8	%


	Payments Due in Period

(In thousands)	Total		Less than 1 Year		1 - 3 Years		3 - 5 Years		More than 5 Years
Operating leases	$	51,996	$	13,198	$	20,990	$	7,645	$	10,163
Principal payments on Amended Term Loan	55,400		10,400		45,000		—		—
Principal payments on Amended Revolver	50,000		—		50,000		—		—
Interest on Amended Term Loan and Amended Revolver¹	5,348		2,952		2,396		—		—
Total	$	162,744	$	26,550	$	118,386	$	7,645	$	10,163
¹ Includes unused funds fee and is based on the December 31, 2021 interest rate and outstanding Amended Revolver balance


2.1			Share Purchase Agreement, dated as of December 28, 2020, among Vectrus Systems Corporation, Zenetex LLC, ZTX Holdings, LLC, and the persons named on the signature pages thereto (incorporated by reference to Exhibit 2.1 to the Company's Current Report on Form 8-K filed on December 29, 2020)
3.1			Amended and Restated Articles of Incorporation of Vectrus, Inc. (incorporated by reference to Exhibit 3.1 to Vectrus, Inc.’s Current Report on Form 8-K filed on May 22, 2019)
3.2			Amended and Restated By-laws of Vectrus, Inc. (incorporated by reference to Exhibit 3.2 to Vectrus, Inc.’s Current Report on Form 8-K filed on May 22, 2019)
4.1			Description of the Company's securities+
10.1			Distribution Agreement by and between Vectrus, Inc. and Exelis Inc. dated as of September 25, 2014 (incorporated by reference to Exhibit 2.1 of Exelis Inc.’s Current Report on Form 8-K filed on September 29, 2014 (CIK No. 1524471, File No. 1-35228))
10.2			Employee Matters Agreement by and between Exelis Inc. and Vectrus, Inc. dated as of September 25, 2014 (incorporated by reference to Exhibit 10.1 of Exelis Inc.’s Form 8-K Current Report filed on September 29, 2014 (CIK No. 1524471, File No. 1-35228))*
10.3			Tax Matters Agreement between Vectrus, Inc. and Exelis Inc. dated as of September 25, 2014 (incorporated by reference to Exhibit 10.2 of Exelis Inc.’s Form 8-K Current Report filed on September 29, 2014 (CIK No. 1524471, File No. 1-35228))
10.4			Technology License Agreement between Vectrus, Inc. and Exelis Inc. dated as of September 25, 2014 (incorporated by reference to Exhibit 10.5 of Exelis Inc.'s Form 8-K Current Report filed on September 29, 2014 (CIK No. 1524471, File No. 1-35228)
10.5			Stock Purchase Agreement, dated as of January 23, 2018, by and among R&R Enterprises, Inc., SENTEL Corporation, Vectrus Systems Corporation and Russell T. Wright (incorporated by reference to Exhibit 10.1 of Vectrus, Inc.’s Current Report on Form 8-K filed on January 23, 2018)
10.6			Prow Letter Agreement, dated November 30, 2016, between Vectrus, Inc. and Charles L. Prow (incorporated by reference to Exhibit 10.01 to Vectrus Inc.’s Current Report on Form 8-K filed on December 6, 2016)*
10.7			Description of Housing Allowance for Charles L. Prow (incorporated by reference to Exhibit 10.1 to Vectrus, Inc.’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2017 filed on May 9, 2017)*
10.8			Moline Letter Agreement, dated August 25, 2015, between Vectrus, Inc. and Rene J. Moline (incorporated by reference to Exhibit 10.01 to Vectrus, Inc.’s Current Report on Form 8-K filed on April 3, 2017)*
10.9			Separation Agreement and Complete Release of Liability, dated June 12, 2017, between Vectrus Systems Corporation and Rene J. Moline (incorporated by reference to Exhibit 10.01 to Vectrus, Inc.’s Current Report on Form 8-K filed on June 12, 2017)*
10.10			Separation Agreement and Complete Release of Liability, dated June 30, 2017, between Vectrus Systems Corporation and Kelvin R. Coppock (incorporated by reference to Exhibit 10.01 to Vectrus, Inc.’s Current Report on Form 8-K filed on June 30, 2017)*
10.11			Leonard Employment Letter, dated March 9, 2017, between Vectrus, Inc. and Kevin A. Leonard (incorporated by reference to Exhibit 10.2 to Vectrus, Inc.’s Current Report on Form 8-K filed on April 3, 2018)*
10.12			Deagle Employment Letter, dated March 13, 2017, between Vectrus, Inc. and Susan L. Deagle (incorporated by reference to Exhibit 10.1 to Vectrus, Inc.’s Current Report on Form 8-K filed on April 3, 2018)*
10.13			Separation Agreement and Complete Release of Liability, dated November 5, 2018, between Vectrus Systems Corporation and Michele L. Tyler (incorporated by reference to Exhibit 10.01 to Vectrus, Inc.’s Current Report on Form 8-K filed on November 9, 2018)*
10.14			Hathaway Employment Letter, dated September 4, 2017 between Vectrus, Inc. and David A. Hathaway (incorporated by reference to Exhibit 10.1 to Vectrus, Inc.’s Current Report on Form 8-K filed on March 14, 2019)*
10.15			Lynch Letter Agreement, dated July 7, 2019 between Vectrus, Inc. and Susan D. Lynch (incorporated by reference to Exhibit 10.1 to Vectrus, Inc.’s Current Report on Form 8-K filed on August 5, 2019)*
10.16			Description of Vectrus, Inc. Non-Management Director Annual Compensation (effective May 12, 2017) (incorporated by reference to Exhibit 10.01 to Vectrus, Inc.’s Current Report on Form 8-K filed on May 16, 2017)*
10.17			Description of Vectrus, Inc. Non-Management Director Annual Compensation (effective May 18, 2018) (incorporated by reference to Exhibit 10.01 to Vectrus, Inc.’s Current Report on Form 8-K filed on May 22, 2018)*


10.18			Credit Agreement by and among Vectrus, Inc., Exelis Systems Corporation, as the Borrower, the Lenders and Issuing Banks party thereto, and JPMorgan Chase Bank, N.A., as Administrative Agent, dated September 17, 2014 (incorporated by reference to Exhibit 10.1 to Vectrus, Inc.’s Current Report on Form 8-K filed on September 19, 2014)
10.19			Amendment No. 1 to Credit Agreement by and among Vectrus, Inc., Vectrus Systems Corporation, as the Borrower, the Lenders and Issuing Banks party thereto, and JPMorgan Chase Bank, N.A., as Administrative Agent, dated as of April 19, 2016 (incorporated by reference to Exhibit 10.1 to Vectrus, Inc.'s Current Report on Form 8-K filed on April 20, 2016)
10.20			Amendment and Restatement Agreement among Vectrus, Inc., Vectrus Systems Corporation, as the Borrower, the Lenders and Issuing Banks party thereto, and JPMorgan Chase Bank, N.A., as Administrative Agent, dated as of November 15, 2017 (incorporated by reference to Exhibit 10.1 to Vectrus, Inc.’s Current Report on Form 8-K filed on November 15, 2017)
10.21			Form of Indemnification Agreement for Directors of Vectrus, Inc. (incorporated by reference to Exhibit 10.10 to Vectrus, Inc.’s Quarterly Report on Form 10-Q filed on November 10, 2014)*
10.22			Vectrus, Inc. 2014 Omnibus Incentive Plan (As Amended and Restated as of May 7, 2020) (incorporated by reference to Exhibit 10.1 to Vectrus, Inc.'s Current Report on Form 8-K filed on May 13, 2020)*
10.23			Vectrus, Inc. Annual Incentive Plan, as amended and restated as of January 1, 2016 (incorporated by reference to Exhibit 10.17 to Vectrus, Inc.'s Annual Report on Form 10-K filed on March 15, 2016)*
10.24			Vectrus, Inc., Annual Incentive Plan for Executive Officers (As Amended and Restated as of January 1, 2016) (incorporated by reference to Exhibit 10.1 to Vectrus, Inc.'s Current Report on Form 8-K filed on May 16, 2016)*
10.25			Vectrus Systems Corporation Excess Savings Plan (incorporated by reference to Exhibit 10.15 to Vectrus, Inc.'s Annual Report on Form 10-K filed on March 16, 2015)*
10.26			Vectrus, Inc. Severance Plan, as amended and restated as of October 6, 2015 (incorporated by reference to Exhibit 10.2 to Vectrus, Inc.’s Quarterly Report on Form 10-Q filed on November 4, 2015)*
10.27			Vectrus, Inc. Special Senior Executive Severance Pay Plan, as amended and restated as of February 24, 2021+
10.28			Vectrus, Inc. Senior Executive Severance Pay Plan, as Amended and Restated as of November 9, 2016 (incorporated by reference to Exhibit 10.01 to Vectrus, Inc.'s Current Report on Form 8-K filed on November 10, 2016)*
10.29			Form of Vectrus, Inc. 2014 Omnibus Incentive Plan - Restricted Stock Unit Award Agreement - Non-Management Director (Stock Settled) (incorporated by reference to Exhibit 10.20 to Vectrus, Inc.’s Quarterly Report on Form 10-Q filed on November 10, 2014)*
10.30			Form of Vectrus, Inc. 2014 Omnibus Incentive Plan - Restricted Stock Unit Agreement - General Grant - Stock Settled (incorporated by reference to Exhibit 10.21 to Vectrus, Inc.’s Quarterly Report on Form 10-Q filed on November 10, 2014)*
10.31			Form of Vectrus, Inc. 2014 Omnibus Incentive Plan - Restricted Unit Agreement - General Grant - Cash Settled (incorporated by reference to Exhibit 10.22 to Vectrus, Inc.’s Quarterly Report on Form 10-Q filed on November 10, 2014)*
10.32			Form of Vectrus, Inc. 2014 Omnibus Incentive Plan - Nonqualified Stock Option Award Agreement - General Grant (incorporated by reference to Exhibit 10.23 to Vectrus, Inc.’s Quarterly Report on Form 10-Q filed on November 10, 2014)*
10.33			Form of Vectrus, Inc. 2014 Omnibus Incentive Plan - Restricted Stock Unit Agreement - 2013 TSR Replacement Grant - Stock Settled (incorporated by reference to Exhibit 10.24 to Vectrus, Inc.’s Quarterly Report on Form 10-Q filed on November 10, 2014)*
10.34			Form of Vectrus, Inc. 2014 Omnibus Incentive Plan - TSR Award Agreement (incorporated by reference to Exhibit 10.1 to Vectrus, Inc.’s Current Report on Form 8-K filed on March 5, 2015)*
10.35			Form of Vectrus, Inc. 2014 Omnibus Incentive Plan - Restricted Stock Unit Award Agreement - Non-Management Director (Stock Settled) (for awards on or after October 6, 2015) (incorporated by reference to Exhibit 10.7 to Vectrus, Inc.’s Quarterly Report on Form 10-Q filed on November 4, 2015)*
10.36			Form of Vectrus, Inc. 2014 Omnibus Incentive Plan - Restricted Stock Unit Agreement - General Grant - Stock Settled (for awards on or after October 6, 2015) (incorporated by reference to Exhibit 10.8 to Vectrus, Inc.’s Quarterly Report on Form 10-Q filed on November 4, 2015)*
10.37			Form of Vectrus, Inc. 2014 Omnibus Incentive Plan - Restricted Unit Agreement - General Grant - Cash Settled (for awards on or after October 6, 2015) (incorporated by reference to Exhibit 10.9 to Vectrus, Inc.’s Quarterly Report on Form 10-Q filed on November 4, 2015)*
10.38			Form of Vectrus, Inc. 2014 Omnibus Incentive Plan - Nonqualified Stock Option Award Agreement - General Grant (for awards on or after October 6, 2015) (incorporated by reference to Exhibit 10.10 to Vectrus, Inc.’s Quarterly Report on Form 10-Q filed on November 4, 2015)*
10.39			Form of Vectrus, Inc. 2014 Omnibus Incentive Plan - TSR Award Agreement (for awards on or after October 6, 2015) (incorporated by reference to Exhibit 10.11 to Vectrus, Inc.’s Quarterly Report on Form 10-Q filed on November 4, 2015)*
10.40			Description of Non-Management Director Annual Compensation (incorporated by reference to Exhibit 10.1 to Vectrus, Inc.’s Current Report on Form 8-K filed on May 11, 2021)*


10.41			Guaranty of Lease, dated September 30, 2021, by Vectrus Systems Corporation (incorporated by reference to Exhibit 10.1 to Vectrus, Inc.’s Current Report on Form 8-K filed on Octobe r 6, 2021)
10.42			Amendment No. 2, dated as of January 24, 2022 by and among Vectrus, Inc., an Indiana corporation, as Holdings, Vectrus Systems Corporation, a Delaware corporation, as the Borrower, the other Loan Parties thereto, the Lenders and Issuing Banks party thereto, and JPMorgan Chase Bank, N.A., as Administrative Agent (incorporated by reference to Exhibit 10.1. to Vectrus, Inc.'s Current Report on Form 8-K filed on January 27, 2022)
10.43			Agreement and Plan of Merger, dated as of March 7, 2022, by and among Vectrus, Inc., Vertex Aerospace Services Holding Corp., Andor Merger Sub LLC and Andor Merger Sub Inc. (incorporated by reference to Exhibit 2.1 to Vectrus, Inc.'s Current Report on Form 8-K filed on March 7, 2022)
10.44			Form of Shareholders Agreement by and among Vectrus, Inc. and the shareholders that are party thereto (incorporated by reference to Exhibit 10.1 to Vectrus, Inc.'s Current Report on Form 8-K filed on March 7, 2022)
10.45			Form of Registration Rights Agreement by and among Vectrus, Inc. and the shareholders that are party thereto (incorporated by reference to Exhibit 10.2 to Vectrus, Inc.'s Current Report on Form 8-K filed on March 7, 2022)
21			Subsidiaries of the Company+
23			Consent of Deloitte & Touche LLP+
31.1			Certification pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002+
31.2			Certification pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002+
32.1			Certification Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. This Exhibit is intended to be furnished in accordance with Regulation S-K Item 601(b)(32)(ii) and shall not be deemed to be filed for purposes of Section 18 of the Securities Exchange Act of 1934 or incorporated by reference into any future filing under the Securities Act of 1933 or the Securities Exchange Act of 1934, except as shall be expressly set forth by specific reference.+
32.2			Certification Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. This Exhibit is intended to be furnished in accordance with Regulation S-K Item 601(b)(32)(ii) and shall not be deemed to be filed for purposes of Section 18 of the Securities Exchange Act of 1934 or incorporated by reference into any future filing under the Securities Act of 1933 or the Securities Exchange Act of 1934, except as shall be expressly set forth by specific reference.+
101			The following materials from Vectrus, Inc.’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019, formatted in XBRL (Extensible Business Reporting Language): (i) Consolidated Statements of Income, (ii) Consolidated Statements of Comprehensive Income, (iii) Consolidated Balance Sheets, (iv) Consolidated Statements of Cash Flows, (v) Consolidated Statements of Shareholders’ Equity, and (vi) Notes to Consolidated Financial Statements.#
104			Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) #


						Page No.
Report of Independent Registered Public Accounting Firm						F-2
Consolidated Statements of Income						F-5
Consolidated Statements of Comprehensive Income						F-6
Consolidated Balance Sheets						F-7
Consolidated Statements of Cash Flows						F-8
Consolidated Statements of Shareholders' Equity						F-9
Note 1. Description of Business and Summary of Significant Accounting Policies						F-10
Note 2. Recent Accounting Standards Updates						F-14
Note 3. Acquisitions						F-15
Note 4. Revenue						F-17
Note 5. Receivables						F-19
Note 6. Earnings Per Share						F-19
Note 7. Property, Plant and Equipment, Net						F-20
Note 8. Goodwill and Intangible Assets						F-20
Note 9. Composition of Certain Financial Statement Captions						F-21
Note 10. Debt						F-22
Note 11. Derivative Instruments						F-23
Note 12. Leases						F-24
Note 13. Income Taxes						F-25
Note 14. Post Employment Benefit Plans						F-28

Note 15. Commitments and Contingencies						F-29
Note 16. Stock-Based Compensation						F-30
Note 17. Shareholders' Equity						F-32
Note 18. Subsequent Events						F-32


	Year Ended December 31,
(In thousands, except per share data)	2021		2020		2019
Revenue	$	1,783,665	$	1,395,529	$	1,382,525
Cost of revenue	1,623,245		1,271,375		1,254,560
Selling, general, and administrative expenses	98,400		80,679		78,316

Operating income	62,020		43,475		49,649
Interest expense, net	(7,985)		(4,793)		(6,470)

Income from operations before income taxes	54,035		38,682		43,179
Income tax expense	8,307		1,731		10,003
Net income	$	45,728	$	36,951	$	33,176

Earnings per share
Basic	$	3.91	$	3.19	$	2.90
Diluted	$	3.86	$	3.14	$	2.86
Weighted average common shares outstanding - basic	11,705		11,599		11,444
Weighted average common shares outstanding - diluted	11,836		11,751		11,612


	December 31,
(In thousands, except per share data)	2021		2020
Assets
Current assets
Cash and cash equivalents	$	38,513	$	66,949
Restricted cash	—		1,778
Receivables	348,605		314,959
Prepaid expenses	21,160		16,083
Other current assets	15,062		8,619
Total current assets	423,340		408,388
Property, plant, and equipment, net	23,758		22,573
Goodwill	321,734		339,702
Intangible assets, net	66,582		48,105
Right-of-use assets	43,651		18,718
Other non-current assets	10,394		6,325
Total non-current assets	466,119		435,423
Total Assets	$	889,459	$	843,811
Liabilities and Shareholders' Equity
Current liabilities
Accounts payable	$	212,533	$	159,586

Compensation and other employee benefits	80,284		79,568

Short-term debt	10,400		8,600
Other accrued liabilities	55,031		40,657
Total current liabilities	358,248		288,411


Long-term debt, net	94,246		168,751
Deferred tax liability	32,214		39,386
Operating lease liabilities	34,536		13,970
Other non-current liabilities	20,128		28,355
Total non-current liabilities	181,124		250,462
Total liabilities	539,372		538,873
Commitments and contingencies (Note 15)
Shareholders' Equity
Preferred stock; $0.01 par value; 10,000 shares authorized; No shares issued and outstanding	—		—
Common stock; $0.01 par value; 100,000 shares authorized; 11,738 and 11,625 shares issued and outstanding as of December 31, 2021 and 2020, respectively	117		116
Additional paid in capital	88,116		82,823
Retained earnings	267,754		222,026
Accumulated other comprehensive loss	(5,900)		(27)
Total shareholders' equity	350,087		304,938
Total Liabilities and Shareholders' Equity	$	889,459	$	843,811


	Common Stock Issued			Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Loss		Total Shareholders' Equity
(In thousands)	Shares	Amount
Balance at December 31, 2018	11,267	$	113	$	71,729	$	151,640	$	(3,158)	$	220,324
Net income	—	—		—		33,176		—		33,176
Cumulative effects of adoption of ASU 2018-02 reclassification of certain tax effects from AOCI	—	—		—		259		(259)		—
Foreign currency translation adjustments	—	—		—		—		(834)		(834)
Unrealized gain on cash flow hedge	—	—		—		—		(831)		(831)
Employee stock awards and stock options	257	2		3,671		—		—		3,673
Taxes withheld on stock compensation awards	—	—		(1,069)		—		—		(1,069)
Stock-based compensation	—	—		4,426		—		—		4,426
Balance at December 31, 2019	11,524	$	115	$	78,757	$	185,075	$	(5,082)	$	258,865
Net income	—	—		—		36,951		—		36,951

Foreign currency translation adjustments	—	—		—		—		5,186		5,186
Unrealized loss on cash flow hedge	—	—		—		—		(131)		(131)
Employee stock awards and stock options	101	1		58		—		—		59
Conversion of liability-based stock compensation awards to equity-based stock compensation awards	—	—		405		—		—		405
Taxes withheld on stock compensation awards	—	—		(1,955)		—		—		(1,955)
Stock-based compensation	—	—		5,558		—		—		5,558
Balance at December 31, 2020	11,625	$	116	$	82,823	$	222,026	$	(27)	$	304,938
Net income	—	—		—		45,728		—		45,728
Foreign currency translation adjustments	—	—		—		—		(6,659)		(6,659)
Unrealized loss on cash flow hedge	—	—		—		—		786		786
Employee stock awards and stock options	113	1		377		—		—		378
Taxes withheld on stock compensation awards	—	—		(2,345)		—		—		(2,345)
Stock-based compensation	—	—		7,261		—		—		7,261
Balance at December 31, 2021	11,738	$	117	$	88,116	$	267,754	$	(5,900)	$	350,087


	Year Ended December 31,
(In thousands)	2021		2020		2019
Operating activities	$	61,339	$	64,081	$	27,557
Investing activities	(12,643)		(138,025)		(55,825)
Financing activities	(75,585)		105,774		(1,896)
Foreign exchange	(3,325)		1,579		(663)
Net change in cash	$	(30,214)	$	33,409	$	(30,827)


	Year Ended December 31,
(In thousands)	2021		2020		2019
Operating activities
Net income	$	45,728	$	36,951	$	33,176
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation expense	6,526		4,097		3,379
Amortization of intangible assets	10,028		4,029		3,111
(Gain) loss on disposal of property, plant, and equipment	65		(14)		62
Stock-based compensation	8,331		9,445		8,262
Amortization of debt issuance costs	912		386		404
Changes in assets and liabilities:
Receivables	(36,376)		1,000		(21,053)
Prepaid expenses	(5,178)		(3,588)		(5,610)
Other assets	(7,667)		(3,644)		7,147
Accounts payable	56,985		(2,680)		(11,733)

Deferred taxes	(7,280)		(10,665)		(7,173)
Compensation and other employee benefits	1,133		12,004		9,652
Other liabilities	(11,868)		16,760		7,933
Net cash provided by operating activities	61,339		64,081		27,557
Investing activities
Purchases of capital assets and intangibles	(9,776)		(4,500)		(16,151)
Proceeds from the disposition of assets	16		84		5,400
Acquisition of business, net of cash acquired	262		(133,609)		(45,074)

Contribution to joint venture	(3,145)		—		—

Net cash (used in) investing activities	(12,643)		(138,025)		(55,825)
Financing activities

Repayments of long-term debt	(8,600)		(6,500)		(4,500)
Proceeds from revolver	529,000		314,000		333,500
Repayments of revolver	(594,000)		(199,000)		(333,500)

Proceeds from exercise of stock options	379		59		3,672
Payment of debt issuance costs	(17)		(830)		—


Payments of employee withholding taxes on share-based compensation	(2,347)		(1,955)		(1,068)


						Years
Buildings and improvements						3 – 11
Machinery, equipment and vehicles						3 – 12
Office furniture and equipment, computers and software						3 – 7


	Year Ended December 31,

(In thousands)	2021		2020		2019
Middle East	$	1,000,877	$	902,162	$	939,685
United States	578,255		328,214		301,991
Europe	142,606		155,169		137,915
Asia	61,927		9,984		2,934
Total revenue	$	1,783,665	$	1,395,529	$	1,382,525


(In thousands)	Allocation of Purchase Price

Receivables	$	40,144
Deferred taxes	88
Other current assets	1,314
Property, plant and equipment	1,108
Goodwill	53,541
Intangible assets	57,100
Right-of-use assets	7,930

Accounts payable	(7,381)
Other current liabilities	(15,821)
Accrued compensation	(12,087)
Lease liabilities	(8,275)
Other non-current liabilities	(55)
Purchase price, net of cash acquired	$	117,606


Balance at December 31, 2019	$	261,983
Adjustments to preliminary purchase price allocation of Advantor	147
Acquisition of HHB	10,647
Acquisition of Zenetex	66,925
Balance at December 31, 2020	$	339,702
Adjustments to preliminary purchase price allocation of Zenetex	(13,383)
Adjustments to preliminary purchase price allocation of HHB	(4,585)
Balance at December 31, 2021	$	321,734


	December 31, 2021						December 31, 2020
(In thousands)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Contract backlogs and recompetes	$	77,300	$	(14,988)	$	62,312	$	48,800	$	(6,645)	$	42,155
Customer contracts	7,200		(3,572)		3,628		7,200		(2,133)		5,067
Trade names and other	1,249		(607)		642		1,243		(360)		883
Total intangible assets	$	85,749	$	(19,167)	$	66,582	$	57,243	$	(9,138)	$	48,105


Period	Amortization
2022	$	8,499
2023	$	8,403
2024	$	7,296
2025	$	6,499
2026	$	6,028
After 2026	$	29,857


(In thousands)	Payments due
2022	$	10,400
2023	95,000



Total	$	105,400


	Year Ended
(In thousands)	December 31, 2021		December 31, 2020

Operating lease expense	$	11,477	$	6,952
Variable lease expense	783		736
Short-term lease expense	62,124		53,528
Total lease expense	$	74,384	$	61,216


(In thousands, except per share data)	Options Outstanding and Exercisable
Range of Exercise Prices Per Share	Number	Weighted Average Remaining Contractual Life (In Years)	Weighted Average Exercise Price Per Share		Aggregate Intrinsic Value
$20.06 - $21.98	44	4.03	$	21.56	$	1,049
$24.61 - $32.49	15	2.53	27.83		274
Total options and aggregate intrinsic value	59	3.63	$	23.19	$	1,323


VECTRUS, INC.
/s/ William B. Noon
By: William B. Noon
Corporate Vice President and Chief Accounting Officer
(Principal Accounting Officer)
Date: March 7, 2022


SIGNATURE	TITLE	DATE
/s/ Charles L. Prow Charles L. Prow	President and Chief Executive Officer, Director	March 7, 2022
/s/ Susan D. Lynch Susan D. Lynch	Senior Vice President and Chief Financial Officer	March 7, 2022
/s/ William B. Noon William B. Noon	Corporate Vice President and Chief Accounting Officer	March 7, 2022
/s/ Louis J. Giuliano Louis J. Giuliano	Director	March 7, 2022
/s/ Bradford J. Boston Bradford J. Boston	Director	March 7, 2022
/s/ Mary L. Howell Mary L. Howell	Director	March 7, 2022
/s/ William F. Murdy William F. Murdy	Director	March 7, 2022
/s/ Melvin F. Parker Melvin F. Parker	Director	March 7, 2022
/s/ Eric M. Pillmore Eric M. Pillmore	Director	March 7, 2022
/s/ Stephen L. Waechter Stephen L. Waechter	Director	March 7, 2022
/s/ Phillip C. Widman Phillip C. Widman	Director	March 7, 2022


NAME			JURISDICTION IN WHICH ORGANIZED UNDER WHICH DOING BUSINESS
Andor Merger Sub, Inc.			Delaware
Andor Merger Sub, LLC			Delaware
Advantor Systems Corporation			Florida
Advantor Systems, LLC			Delaware
Al-Shabaka for Protection Products Marketing and General Support Services LLC			Luxembourg
Delex Systems, Incorporated			Virginia
Facility and Digital Integration Services (Private) Limited			Pakistan
Higgins, Hermansen, Banikas, LLC (d/b/a HHB Systems)			Nevada
High Desert Support Services, LLC			Delaware
Inuksuk A/S			Denmark
ITT Federal Services Arabia, Ltd.			Saudi Arabia
KGlobal, LLC			Virginia
ServCore Resources and Services Solutions Ltd.			Abu Dhabi
SynTrus LLC			Virginia
Vectrus Facility Services GmbH			Germany
Vectrus Federal Services GmbH			Germany
Vectrus Federal Services International, Ltd.			Cayman Islands
Vectrus Global Support Services LLP			India
Vectrus International LLC			Colorado
Vectrus Maintenance Services L.L.C.			Qatar
Vectrus Mission Systems Ltd.			United Kingdom
Vectrus Overseas Ventures LLC			Virginia
Vectrus Saudi Arabia for Commercial Services			Saudi Arabia
Vectrus Services (Thailand) Co., LTD			Thailand
Vectrus Services A/S			Denmark
Vectrus Services Greenland ApS			Greenland
Vectrus Services Korea Limited			Korea
Vectrus Services Kuwait General Trading Company W.L.L.			Kuwait
Vectrus Services Muscat LLC			Oman
Vectrus Services Niger S.A.R.L.U.			Niger
Vectrus Services Philippines OPC			Philippines
Vectrus Services PTE. LTD			Singapore
Vectrus Services PTY, LTD			Australia
Vectrus Subic Corporation			Philippines
Vectrus Systems Corporation			Delaware
Vectrus Systems Corporation (Jordan)			Jordan
Vectrus, Inc. Political Action Committee			Virginia
Vectrus-J&J Facilities Support, LLC			Delaware
VMSC Afghanistan LLC			Delaware
Zenetex, LLC			Virginia


Date: March 7, 2022

/s/ Charles L. Prow
Charles L. Prow
President and Chief Executive Officer


Date: March 7, 2022

/s/ Susan D. Lynch
Susan D. Lynch
Senior Vice President and Chief Financial Officer