COLORADO SPRINGS, Colo., March 17, 2017 /PRNewswire/ --
Vectrus, Inc. (NYSE: VEC), announced today that the U.S. Government published a Notice of Intent to award a modification to
extend the existing Kuwait Base Operation and Security Support Services contract, also known as K-BOSSS, performed by Vectrus
Systems Corporation.
The Period of Performance for the extension would be from Mar. 29, 2017 to Mar. 28, 2018, with an evaluated nine-month option of Mar. 29, 2018 through
Dec. 28, 2018 and an evaluated three-month option of Dec. 29, 2018
through Mar. 28, 2019.
The proposed modification will continue critical base operations support and security support services throughout the
Kuwait area of responsibility including forms, publications, and reproductive services; Army
postal operations; operations; logistics; information management; public works; environmental services; medical administrative
support; installation services; security services; fire services; and emergency services.
The extension has not been negotiated and finalized. "Our 2017 financial guidance issued on March 1,
2017, anticipated an extension of our existing K-BOSSS contract well into the third quarter," said Matt Klein, chief financial officer of Vectrus. "This announcement will likely result in a full-year financial
contribution from K-BOSSS and we expect to update guidance upon finalization of the extension."
In 2016, the K-BOSSS program contributed approximately $438 million dollars or 37% of
revenue.
About Vectrus
Vectrus is a leading, global government services company
with a history in the services market that
dates back more than 70 years. The company
provides facility and logistics services, and information
technology and network communication services to U.S. government customers around the world. Vectrus is differentiated
by operational excellence, superior program
performance, a history of long-term customer relationships, and a strong commitment to their mission success. Vectrus is
headquartered in Colorado Springs, Colo., and includes about 5,600 employees spanning 143
locations in 18 countries. In 2016, Vectrus generated sales of $1.2 billion. For more information,
visit our website at www.vectrus.com or connect with us on
Facebook, Twitter, LinkedIn, and YouTube.
Safe Harbor Statement
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 (the "Act"): Certain material presented
herein includes forward-looking statements intended to qualify for the safe harbor from liability established by the Act. These
forward-looking statements include, but are not limited to, statements in 2017 Guidance above about our revenue, operating
margin, net income, EPS and net cash provided by operating activities for 2017 and other assumptions contained therein for
purposes of such guidance, debt payments, expense savings, contract opportunities, bids and awards, collections, business
strategy, outlook, objectives, plans, intentions or goals, and any discussion of future operating or financial performance.
Whenever used, words such as "may," "are considering," "will," "likely," "anticipate," "estimate," "expect," "project," "intend,"
"plan," "believe," "target," "could," "potential," "continue," or similar terminology are forward-looking statements. These
statements are based on the beliefs and assumptions of our management based on information currently available to management.
Forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties that could cause
actual results to differ materially from the results contemplated by the forward-looking statements, our historical experience
and our present expectations or projections. These risks and uncertainties include, but are not limited to: our dependence on a
few large contracts for a significant portion of our revenue; competition in our industry; our ability to submit proposals for
and/or win potential opportunities in our pipeline; our ability to retain ad renew our existing contracts; protests of new
awards; our international operations, including the economic, political and social conditions in the countries in which we
conduct our businesses; changes in U.S. government military operations, including its operations in Afghanistan; changes in, or delays in the completion of, U.S. or international government budgets;
government regulations and compliance therewith, including changes to the Department of Defense procurement process; changes in
technology; intellectual property matters; governmental investigations, reviews, audits and cost adjustments; contingencies
related to actual or alleged environmental contamination, claims and concerns; our success in expanding our geographic footprint
or broadening our customer base, markets and capabilities; our ability to realize the full amounts reflected in our backlog; our
maintaining our good relationship with the U.S. government; impairment of goodwill; our performance of our contracts and our
ability to control costs; our level of indebtedness; our compliance with the terms of our credit agreement; subcontractor and
employee performance and conduct; our teaming arrangements with other contractors; economic and capital markets conditions; any
future acquisitions, investments or joint ventures; our ability to retain and recruit qualified personnel; our maintenance of
safe work sites and equipment; our compliance with applicable environmental health and safety regulations; our ability to
maintain required security clearances; any disputes with labor unions; costs of outcome of any legal proceedings; security
breaches and other disruptions to our information technology and operations; changes in our tax provisions or exposure to
additional income tax liabilities; changes in U.S. generally accepted accounting principles; accounting estimates made in
connection with our contracts; our exposure to interest rate risk; our compliance with public company accounting and financial
reporting requirements; timing of payments by the U.S. government; risks and uncertainties relating to the spin-off from our
former parent; and other factors set forth in Part I, Item 1A, – "Risk Factors," and elsewhere in our 2016 Annual Report on Form
10-K and described from time to time in our future reports filed with the Securities and Exchange Commission. We undertake no
obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except
as required by law.
CONTACT:
Mike Smith, CFA
719-637-5773
michael.smith@vectrus.com
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/vectrus-statement-on-armys-notice-of-intent-to-extend-the-k-bosss-contract-300425392.html
SOURCE Vectrus