Vectrus Q4 Profit More Than Halves; To Combine With Vertex In All-stock Merger

(RTTNews) - Vectrus, Inc. (VEC) announced Monday that net income for the fourth quarter declined to $7.49 million or $0.63 per share from $16.78 million or $1.42 per share in the prior-year quarter.

Excluding items, adjusted earnings for the quarter was $0.90 per share, compared to $1.25 per share in the year-ago quarter.

Revenue for the quarter increased 18 percent to $419.41 million from $355.32 million in the same quarter last year. Organic revenue edged up 0.9 percent.

Looking ahead to fiscal 2022, the company now projects earnings in a range of $3.72 to $4.08 per share and adjusted earnings in a range of $4.57 to $4.93 per share on revenues between $1.82 billion and $1.86 billion.

Separately, Vectrus announced that it has entered into an all-stock merger transaction with The Vertex Co. to create a leading global provider of mission-essential solutions. The merger is expected to close in the third quarter of 2022, subject to satisfaction of customary closing conditions, including receipt of regulatory and Vectrus shareholder approvals. The transaction implies a value for Vertex of approximately $2.1 billion.

Under the terms of the merger agreement, Vertex shareholders will own approximately 62% of the combined company on a fully diluted basis, while Vectrus shareholders will own approximately 38%.