Q4 2023 V2X Inc Earnings Call

March 5, 2024

Today's call is being recorded. My name is Maria, and I'll be the operator for today's call. At this time, all participants have been placed in a listen-only mode. Following management's presentation, I will open the call up for a Q&A session.

If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded.

And now, I'll pass the call over to your host, Mike Smith.

Vice President of Treasury, Investor Relations and Corporate Development at V2X. You may go ahead, sir.

Thank you. Good morning, everyone. Welcome to the V2X fourth quarter and full year 2023 earnings conference call.

Joining us today are Chuck Perot, President and Chief Executive Officer, and Shaw Morell, Senior Vice President and Chief Financial Officer.

Slides for today's presentation are available on the investor relations section of our website, gov2x.com.

Please turn to slide two.

During today's presentation, management will be making forward-looking statements pursuant to the safe harbor provisions of the federal securities laws.

Please review our safe harbor statements in our press release and presentation materials for a description of some of the factors that may cause actual results to differ materially from the results contemplated by these forward-looking statements.

The company assumes no obligation to update its forward-looking statements.

Additionally, I would like to point out that in addition to gap earnings, we will be discussing and reporting various adjusted non-gap metrics, including adjusted EBITDA and margin, adjusted

adjusted net income, and adjusted diluted

The definition of these non-GAAP measures can be found in our presentation materials available on our investor relations website and in our press release filed with the SEC.

At this time, I'd like to turn the call over to Chuck Crowe.

Thank you, Mike, and good morning, everyone. Thank you for joining us on the call today. Please turn to slide three.

Before we get started, I'd like to thank the over 16,000 V2X employees for their contribution and in particular their performance during the fourth quarter to end 2023 on a high note.

I just returned from a trip to the Middle East visiting our clients and people. The feedback I received from our clients underscore the unwavering service, agility, innovation, and technology-enabled solutions that we are delivering in support of their most critical missions.

It's this around-the-clock, around-the-globe commitment to our clients that will drive our continued leadership and growth.

Please turn to slide four.

The transformation of V2X continues, organic and inorganic growth, which improves scale, profitability, diversification, and capabilities, has allowed us to emerge as a leader in the operational segment of the broader federal services marketplace.

Our company is purpose-built.

across an expanded client, contract, and geographic footprint to deliver value in this market.

Our market has witnessed significant structural changes in recent years and continues to rapidly evolve. We are advancing how missions are operated by leveraging converged and engineered solutions at the intersection of technology and operation.

This includes modernization and sustainment support that elongates platform life cycles while enhancing capabilities.

These improved outcomes yield greater value for our clients and shareholders while providing greater opportunities for our people.

Please turn to slide 5.

Top line momentum extended into the fourth quarter, with revenues once again exceeding $1 billion.

This resulted in revenue growth of 6% year-over-year and 4% sequentially. Revenue for the full year increased 8% on a pro forma basis.

to $3.96 billion, which was also ahead of our guidance range.

Revenue in the fourth quarter was driven by 31% year-over-year growth in the Pacific and 18% in the Middle East.

Our work in the Pacific, or Indo-Pacom, continued to expand, reaching $71.2 million, a record for V2X, and was particularly impressive given the talisman saver exercises that occurred in the first half of this year.

This is a testament to our team's ability to drive on contract growth while further expanding our services and footprint in the region.

Our growth in the Middle East was partially driven by increased scope and services with the Department of State.

This expansion builds on our initial work awarded in early 2023 that, at the time, represented our most substantive win with state.

I recently had the opportunity to meet with our client and team supporting this effort and I'm exceptionally pleased with how we have been able to deliver a successful outcome at speed and ahead of schedule for this critical operations and logistics effort.

We remain excited about the opportunity to expand our relationship with this client through our global presence and capabilities that are ideally suited to support state's worldwide missions and strategy.

The strong revenue performance in the quarter yielded solid profitability with adjusted EBITDA of $82.1 million or 7.9% margin.

For the year, adjusted EBITDA was $293.9 million or 7.4% margin.

Cash flow was notable during the quarter, resulting in year-to-date adjusted cash flow from operations of $159.5 million.

which was ahead of our guidance range.

This strong cash generation equates to a net leverage ratio of 3.3 times.

Our engineering, integration, and modernization and sustainment solutions are gaining momentum with approximately $70 million of awards to V2X in the quarter.

Importantly, we recently demonstrated these capabilities through the successful design and fielding of defense platform that leveraged and enhanced existing systems.

This effort originally started as an engineering development prototyping effort with a new client and today has yielded a brand new product that's designed, produced, and sustained by V2X.

We see substantial opportunity to further expand our revenue and market presence associated with these capabilities.

For example, we continue to be optimistic regarding the growth prospects associated with our proprietary Gateway Mission Router 1000 or GMR 1000.

As mentioned on past calls, this family of products is a fully recognized and cyber-hardened multi-domain router that provides cutting-edge situational awareness.

B2S continues to increase its Army footprint by integrating on additional different air and ground platforms.

During the quarter, we submitted our proposal for a sole-source RFP, which includes production for up to 3,000 GMRs. In addition, we are seeing good traction with potential new clients that have acknowledged GMR 1000 capability and maturity for other applications.

Building on our momentum in the Middle East, I am pleased to announce that during the quarter, V2F was awarded a new task order with the U.S. Air Force valued at $100 million over the next five years.

Under this award, V2F will provide civil engineering and infrastructure support services to the U.S. Air Force in the region. We are honored to have been selected to support such an important mission and look forward to building on our exemplary service with the Air Force.

Additionally, V2X recently achieved a significant milestone, the company's first substantial forward military sales win, which provides aviation support and training to an FMS client in the Middle East.

The overall up-tempo in the region remains elevated and the demand signals from our clients remain heightened. To date, the majority of current requirements are generally being routed to our existing contracts. However, we believe emerging requirements could result in new contracts or task orders.

Please turn to slide 6, where I will demonstrate our recent FMS win and multi-year campaign.

Over the past few years, we have methodically planned and invested in our foreign military sales campaign, which is now yielding results.

As mentioned, we were recently awarded a long-term aviation support and training contract in the Middle East.

The award is valued at approximately $400 million over the next five years.

and was an exceptional win for V2X, representing a culmination over two years of planning and engagement.

The majority of the award is not included in our fourth quarter backlog as the contract is being definitized. Our team is currently working on transition-related activities and expect to have the contract operating at full run rate in the second half.

Importantly, our evolution as a company has been unable to participate in this market. With this new work, the total awarded value of our FMS portfolio is approximately $700 million with accretive margins across eight countries.

Looking ahead, we see a near-term pipeline of FMS opportunities valued at approximately $5 billion.

As such, we are continuing to invest and pursue opportunities that leverage our geographic footprint, robust partnerships, and enhanced capability where V2F can deliver differentiated, cost-effective solutions.

Please turn to slide seven. Our ability to deliver unique and differentiated solutions is driving momentum in our business as visible in our leading growth indicators.

For example, total backlog at the end of the year was $12.8 billion, up from $12.3 billion last year and provide solid top line visibility moving into 2024.

It's important to note that backlog does not include the full performance period of the previously mentioned FMS win or the $458 million F-5 anniversary program as the award remained in protest status.

Our pipeline of bids submitted stands at over $9 billion, a company high, and adds up substantially from $6 billion last quarter, reflecting the somewhat muted award environment.

Our business development engine is geared to support future backlog and revenue expansion with a $15 billion pipeline of opportunities.

Expected to be submitted over the next 12 months.

Finally, our visibility is enhanced by the limited re-competes we are facing throughout the year. At the midpoint of our 2024 guidance, re-competes comprise less than 5% of our revenue mix.

to summarize.

V2X's leading growth indicators, strong backlog, notable recent awards, and limited re-competes provides an excellent foundation and solid visibility moving into 2024.

Now, I'd like to turn the call over to Sean for a review of the financials. Sean?

Thanks, Chuck. And good morning, everyone.

Please turn to slide 8, where I'll discuss our fourth quarter financial results.

Performance across all metrics was in line or above our expectations for the quarter.

Revenue of $1.04 billion in the quarter represents growth of 6% year over year and exceeded our expectations due to exceptional team performance, delivering milestones ahead of schedule, expansion on existing programs, and new business.

Adjusted EBITDA in the quarter was $82.1 million, delivering a margin of 7.9 percent.

Adjusted EBITDA and the margin increased sequentially as anticipated.

Adjusted diluted EPS was $1.22, up 26% from the prior year.

The growth reflects lower income tax and interest expense, partially offset by higher depreciation and other expense.

Interest expense for the quarter.

was $28.5 million. Cash interest expense was $26.3 million.

The team delivered strong cash flow performance with adjusted operating cash flow of $75.9 million, representing a 195% net income conversion.

Please turn to slide nine where I'll discuss our full year results.

The full year 2023 revenue was $3.96 billion.

increasing 8% on a pro forma basis year over year.

Adjusted EBITDA for the full year was $293.9 million or 7.4% margin compared to $278 million on a pro forma basis in the prior year.

Adjusted diluted EPS was $3.74.

based on 31.6 million weighted average shares.

Interest expense for the year was $122.4 million.

Cash interest expense was $113.4 million.

Net cash provided by operating activities was $188 million for the year.

Adjusted operating cash flow was $159.5 million.

to exceed the upper end of our guidance range.

The strong performance represents 135% adjusted net income conversion and contributed to a record day sales outstanding of 58 days.

Please turn to slide 10 to discuss cash and liquidity.

As mentioned, cash generation was strong and enabled us to reduce total net debt by $137.1 million in 2023.

We ended the year with $70.6 million of cash on the balance sheet.

excluding $2 million of restricted cash.

Net debt was $1,084,000,000.

Importantly, the net debt to EBITDA leverage ratio was 3.3 times at the end of the year, which improved notably from 3.7 times at the end of 2022 and approximately four times at merger close.

We believe the free cash flow generated by our business supports our ability to continue to delever and achieve a net leverage ratio at or below three times by the end of 2024.

The company's balance sheet and liquidity position remain strong, with over $550 million in capacity.

which includes approximately $482 million of availability on our revolver.

Please turn to slide 11.

We are establishing 2024 guidance as follows.

Revenue is expected to be $4.1 to $4.2 billion, representing 5% growth at the midpoint.

Importantly, guidance at the midpoint assumes approximately 90% of revenue from existing contracts and less than 5% from re-competes.

Adjusted EBITDA is estimated at $300 million to $315 million.

representing 5% growth at the midpoint.

Adjusted diluted earnings per share guidance $3.85 to $4.20 representing 8% growth at the midpoint.

regarding the cadence we expect throughout the year.

Revenue and adjusted EBITDA will ramp sequentially.

This reflects the phase-in of new business and the previously discussed wind-down and completion of the KC-10 and T1A programs.

We expect adjusted net cash provided by operating activities to be $145 to $165 million.

In terms of cadence, cash flow should be in line with our normal seasonal pattern with cash generation occurring in the second half of the year.

Ash interest and other expense is expected to be approximately $116 million.

Capital expenditures for the year are estimated to be approximately $30 million and will be first half weighted.

Now I'd like to turn the call back over to Chuck.

Thanks, Sean. Please turn to slide 12.

V2X remains focused on creating value for shareholders.

The core components by which we plan to achieve this include, one, continued focus on generating top-line revenue growth through backlog conversion, on-contract growth, and execution of a robust pipeline into new awards in our core markets.

Two, increasing profit via revenue growth and operating leverage, as well as margin improvement through program performance, technology insertion, and campaigns.

Three, continue strong conversion of profit into operating cash flow to discipline working capital management and low capital intensity.

And four, utilizing our high reoccurring cash flow to strengthen our balance sheet and further reduce interest expense and net debt.

In conclusion, V2S continues to transform to deliver enhanced capabilities in an expanding market.

We have strong momentum, robust backlog, highly aligned pipeline, limited recompete, and high free cash generation that provides an excellent fundamental profile.

[inaudible]

Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate that your line is in the question queue.

You may press star 2 if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys.

One moment, please, while we poll for questions.

Our first question comes from Toby Summer with Truist Securities. Please proceed with your question.

Toby, are you there?

Yes I am. Can you hear me?

Hey, Toby. Yeah, we can now. Toby, how are you? Oh, great. Could you provide some incremental color on the FMS pipeline, including geographic breadth and sort of describing new work versus takeaways from traditional competitors? Thanks.

In general, the majority of our FMS pipeline is in CENTCOM,

in IndoPACOM and to a much lesser degree, I would say Eastern Europe. The most recent activity that we announced, and that's why I can't

of all the specifics yet, was actually a new requirement, something that was not being done before by another provider. It is aerospace O&M, and I will tell you that it is a combination of rotary wing maintenance as well as facility maintenance.

The remainder of the pipeline is really balanced between aerospace, O&M, as well as logistics slash operations management.

And it's a good question, I would just, judging from.

memory here, I would say we're probably about half take away and half that new requirement in that FMS pipeline.

Thank you.

Bye.

Could you describe the timing of the wind-down of projects in contracts? We have some airframes being retired. Just thinking about, from a modeling perspective, when the most significant headwind to growth occurs. Thank you.

I would say, and Sean, please feel free to chime in here. So this will be the final year of the wind down for both KC10 and the

T1A. It's relatively balanced throughout the year.

As we've indicated, we'll see sequential growth to make up for that wind down. So I would say...

a bit earlier weighted in the year, but extending through the full year. Sean, anything to add? No, exactly. Thanks, Chuck. Yeah, we'll grow sequentially throughout the year, Toby, and yeah, I would say it's first half weighted, meaning some of those headwinds as things wind down again, as we said and expected.

Okay. Bye.

Cool question we get from investors. If peace breaks out, which the news, you know, doesn't seem to convey as likely any time here near term, does the company have activities that would cease? And if so, how much revenue is exposed?

I would say if peace were to break out, I guess we can all pray for that, I suppose. But by and large, the missions that we're maintaining

will, I would largely, if not entirely, continue.

I mean, you always, you know, have risk like we saw.

in Afghanistan a couple of years ago if we were to pull out of a country. We have no indications of that.

We often talk about on these calls and when we talk to you and other analysts and investors.

About a tempo today. We do have a tailwind with regards to both, you know revenue and profit generation

just because of the rate and pace of activities.

And, you know, both CENTCOM Eastern Europe and you saw in the reported results in INDOPACOM, you know, a lot of activity in INDOPACOM, as we mentioned in the prepared remarks, Toby.

We actually had higher revenue the second half of the year in Indobaycom, although the first half of the year is where the exercise actually occurred.

So, kind of a long-winded answer to your question, but as...

The military infrastructure continues to age as the airframes and ground vehicles continue to age. That actually creates more requirements for V2X.

Okay, so just quickly, could you elaborate on the GMR-1000 opportunity, including comment on the sort of size and scope of that? Thank you very much.

What GMR-1000 represents is a new suite of capabilities that are really taking hold post-merger. We believe that...

the untethering of the Indianapolis facility when it was acquired by Vertex and ultimately now part of VQX.

would create opportunities because of the

the organizational conflict of interest of being owned by a prime contractor going away, we're in fact seeing that. This whole suite of engineered solutions, GMR 1000 being one, is our really great engineers and capabilities in Indianapolis.

working with both new and existing platforms, in this case a router, and hardening those capabilities in such a way that they can be used for new and innovative military missions.

So, it's, you know, as we've mentioned in prepared remarks, this is actually.

sole source bid. We don't know whether or not we've won yet, but the traction of the GMR 1000 and other engineered solutions is actually progressing very, very nicely.

Thank you.

Thank you. Our next question comes from Joe Nomes with Noble Capital Markets. Please proceed with your question.

Good morning, nice quarter.

Thank you. How are you?

Good so first question kind of little couple parts to it, but

Book to Bill was a little light in the quarter and wondering, you know, is that solely due to those that protested and then...

the foreign contract that is still being definitized, or is it, you know, the continuing resolution, which has gone on much longer than I think all of us had anticipated, is that starting to impact, you know, you.

We're saying that you have $9 billion in bids waiting for award up from $6 billion at the end of last quarter. Maybe you could talk a little bit about the continuing resolution and any impact it's having on you also.

Yeah, HR, this is Sean. Yeah, so exactly as you pointed out, right, so, so the pending awards, you know, increased $3 billion in the quarter. It's a bit muted environment relative to the case and patents.

the cadence of the awards and you know nothing nothing of note I don't think we're concerned about anything but we are seeing a bit of a slowdown you know from from some of those things we would have liked to have seen them but I you know it doesn't change our our outlook for for successfully capturing those that work Chuck anything else

No, I think you're right. We, as always, in continuing resolution, the rate and pace of awards flow.

Again, the up-tempo that we're seeing, you see that in our revenue, and our on-contract growth continues strong. I think as we move through this year, we will see awards. Again, it'll be a little slower than we would like.

We're very confident in our guidance.

Okay, and speaking of the guidance, I'm...

The adjusted EBITDA margin, if I look at it on the midpoint, it comes to be up 7.4% and 24, which would be flat with 23. Is that just a kind of reflection of more of some of these newer contracts just beginning, or is there anything else behind that fact that it's...

It appears to be flat.

project year-over-year.

Yeah, no, Joe, I'd say it's exactly as you described, right? So some of the programs that are completion, right, so we've said all along our programs as they mature, they tend to move into higher margins. We're seeing the ramp up of new work. We'll continue to mature those things and improve the profitability over time.

And so throughout the year you'll, you know, you'll see us do that kind of sequentially when we think about the margin profile, uh, you know, of the business over the, over the course of the year. But, uh, but yeah, you're exactly right at the midpoint where we're probably right at the, at the seven four there. Yep.

One more for me on the guidance, and maybe you can give us a little bit of cadence, historically or kind of at that 45 in the first half, 55% revenue in the second half. One of the things Chuckie had mentioned, last year you benefited in the first and second quarter by the exercises in Indopaycom.

I'm assuming those don't repeat this year, maybe you can give us a little bit of size, the impact they had on Q1 and Q2, and I'm sure we still kind of expect that 45-55 split on the guidance.

Yeah, I'd say I'd look at it this way. On the top line, Joe, I'd look at, you know, slightly less than 50% probably of the revenue in the first half, somewhere right between that 45 and 50 in the first half of the year. And then on the margin profile,

and the adjusted EBITDA. I'd probably look at that as being slightly below kind of 45% in the first half. Again, consistent with that ramp that we'll see sequentially, you know, kind of quarter by quarter as we go throughout the year, as new work comes on, and as the teams mature our execution. Chuck, anything else? No, as you said perfectly, last year we did benefit from kind of extraordinary activity that happened in the beginning of the year.

As you know, you followed us for a while, you know, the first half, second half dynamic has been very consistent going all the way back to vectorist days and again, we feel very comfortable with the guide and we feel very comfortable with the wrap throughout the year.

Great. Thanks for taking my questions.

Thank you. Appreciate it.

Our next question comes from Trevor Walsh with Citizens JPM.

As you know you've followed us for a while.

Please proceed with your question.

Yes.

The first half second half dynamic has been very consistent going all the way back to two.

Great. Morning, team. Thanks for taking my questions and I'll echo my congrats on a great finish to the year. Similar to the

Vectra days and again, we feel very comfortable with the guide and we feel very comfortable with the ramp throughout the year.

the color that you provided on the FMS pipeline, I was wondering, Chuck, maybe if you could do a similar type of rundown just on the $9 billion in bids submitted that you had, just kind of just generally where that falls within the portfolio of products and how that how that looks in terms of what the mix is there, if you could.

Great. Thanks for taking my questions.

I appreciate it.

Our next question comes from Trevor Walsh with citizens shape yet.

Please proceed with your question.

Great. Good morning team. Thanks for taking my questions and I'll Echo my congrats on a great finish to the year.

Thank you for asking the question because we're really thrilled with how we've been able to curate or cultivate our pipeline over the last couple of years.

<unk> to the <unk>.

Color that you provided on the Fms pipeline I was wondering Chuck maybe if you could do.

Of that $9 billion, I would say there's a good mix, I'll maybe call it a proportional mix between our core businesses, our logistics-based management and aerospace O&M.

Similar type of run down just on the $9 billion in bids submitted that you had just kind of just generally where that falls within the portfolio of products and how that how that looks in terms of.

and then the newer converged technology and engineered solution pipeline.

We really have a really nice emerging pipeline in our intelligence community business as well.

Again, the new capabilities that we have introduced over the last several years are now importantly represented in that pipeline that we discussed, and we're actually thrilled with that progress.

Great, terrific. You mentioned a newer defense system or platform. I don't know if that's classified or if you're able to give a little bit more detail or it's just not finalized yet, but just curious how technology-driven that particular project was.

Converged technology and engineered solution pipeline.

Really have a really nice.

Emerging pipeline in our intelligence community business as well.

Again, the new capabilities that we have introduced over the last several years are now importantly represented in that pipeline that we discussed.

Yeah, it's, it is, we can't talk, we cannot talk about it. It is finished.

It's a wonderful story, it's a requirement that went from inception to fielding in under a year, and it's highly technical, again, falling back to the engineered solutions that we discussed here.

We're actually thrilled with that progress.

during the call and then prior questions.

You can simplify it this way or generalize it this way.

is we are taking existing platforms, some of them older, some of them more recent.

and we are engineering ways for those older platforms to either work together.

and or to extend their capabilities. It's a really important...

part of our business because we can now approach both the military, intelligence communities, as well as prime contractors with new and different ways of

Again, extending life cycles and or improving capabilities of, in many cases, platforms that have been out there for a long, long time.

Perfect. Thank you for the perspective. Maybe one more from me. For Sean, it looked like based on the guide that you've got a little bit of an uptick in the CapEx outlook for the year going from about $25 to $30 million it looked like from what I could tell in our model. Just curious where the added investment is going or kind of what you see, kind of where that spend will be progressing throughout the year.

To extend their capabilities.

It's a really important.

Part of our business because we can now approach both military intelligence community as well as prime contractor with new and different ways.

Again, extending lifecycle <unk> improving capabilities of <unk>.

Yeah, no, great. Great question. Thank you.

In many cases platform that have been out there for a long long time.

So we had mentioned at the end of last year in the third quarter release that we thought CapEx would be around $28 million. We came in slightly under that, Trevor. We came in right around $26 million in CapEx for 2023. And so really what you're seeing is a carryover of that. Think of that as engineering tools. Again, just everything that Chuck just mentioned about the modernization and sustainment capabilities.

Terrific. Thank you for the perspective, maybe one more from me for Shaun look like based on the guide that you've got a little bit of an uptick in the capex outlook for the year going from about $25 million to $30 million looks like from what I, what I can tell in our model just curious where the added investment is going or kind of what you see.

Kind of where that where that spend will be progressing throughout the year.

that the business has. You know, we're investing in some engineering tools to help ensure that we have that capability and we enhance it going forward. So that's really all it is, Trevor, is timing between years on those investments.

Yes, great Great question. Thank you.

So we had we had mentioned at the end of last year in the third quarter release that we would we would we thought capex would be around $28 million came in slightly under that Trevor.

Got it. Makes sense. Okay. Thanks for taking my questions. I'll hop back in the queue.

Right around $26 million in Capex for 2023, and so really what youre seeing is a carryover of that think of that as engineering tools again, just everything that Chuck just mentioned about the modernization and sustainment capabilities that the business has.

Our next question comes from Stephen Strackhouse with RBC Capital Markets. Please proceed with your question.

Hey, good morning all. Thank you for taking my question. I was hoping you could provide a little bit more detail around the Middle East exposure, maybe how fast can that market grow, and then maybe just even kind of compare and contrasting that to Indo-Pecan.

Investing in some engineering tools.

To help ensure that we have that capability and we enhance that going forward. So that's really all it is drivers timing between years on those on those investments.

Good.

Yeah, you said, Stephen, hello, how are you doing? Did you say you were cut out, but you say Middle East exposure? Yes, I did. Yeah.

Got it makes sense, okay. Thanks for taking my questions and I'll hop back in the queue.

Our next question comes from Steven <unk> with RBC capital markets. Please proceed with your question.

Okay, okay. So yeah, so we, um, you know, Middle East is our and it has been historically, uh, uh, our largest individual, you know, non bonus area of operation. We've been operating in the region for.

Hey, good morning, all and thank you for taking my question.

And could provide a little bit more detail around the middle east exposure maybe.

Maybe how fast can network grow and then maybe just you can kind of compare and contrasting that to pick up.

really three decades now. As you undoubtedly know, there is a lot of activity in the Middle East now, and we mentioned in the prepared remarks

Okay.

Yes, you said Steven Hello, how are you doing did you say you are.

The uptempo that we are in fact seeing in the region today is being largely handled through

Middle East exposure.

Yes.

Good morning.

Okay.

And it has been historically.

Our.

the existing contract we have in the region. Although we did note a new wind with the Air Force as well, that'll be ramping here as we speak.

Largest individual non dairy operation.

<unk>.

Individual.

With regard to additional business, additional orders, we do believe when all the funding situations are

Oh.

Finally, with regard to the congressional action, there are opportunities for new awards. We have several demand signals from our clients that we worked diligently with our clients on. But, again, we see an out-of-tempo response.

<unk> largely Andrew handled through.

The existing contract we have in the region.

Although we did note a new a new win with the Air force as well that'll be.

That will be ramping here.

Pete.

With regard to additional business additional orders.

remaining high for the foreseeable future.

And, again, as the budget resolutions, as the budget situations, I should say, are resolved, the opportunity for new orders may, in fact, arise.

Do believe when all the funding situations are.

Finally resolved with regard to the congressional action.

There are opportunities for New awards, we have several.

Great, thank you for that. And then maybe just kind of following up there on the budget, maybe just the impact of the CR and kind of what is or isn't factored into the 24 guide. And then maybe also just kind of how importantly kind of the lack of any Ukraine supplemental might be or then, you know, what upside that has for the 24 guide as well.

Demand signals from our clients that we've worked diligently with our clients on but again, we see a pip and op tempo.

Remaining high for the foreseeable future.

And again as the budget resolutions.

At the budget situations I should say our resolve the opportunity for new orders May may in fact youre right.

So, we have factored in a more muted award scenario for this year, as Sean indicated in his prepared remarks and the prior question.

Great. Thank you.

Maybe just following up there on the budget, maybe just the impact of <unk>.

Having said that, we will see some awards. Our teams continue to do an excellent job with on-contract growth.

What is there is it factored into the guide and then maybe also just kind of how importantly, because of the lack of any Ukraine supplemental might be for then what upside that has for the toric regard as well.

which is typically provided from existing budgets.

and then the reality is that the out-tempo remains high. So I think balancing.

So we have factored in a more muted.

both new awards on contract growth and the realistic and the realities, I should say, of the current OpTempo gives us confidence in the guys that we've issued here today.

Award scenario for this year as Sean indicated in his prepared remarks in the prior question having.

Having said that.

We will see some awards our teams continued to do an excellent job with on contract growth.

I think you mentioned endopacom, too. There are not exercises...

Which is typically provided from existing budgets.

named exercises scheduled at this point in time because, as we've indicated in the past, those are done on odd years. Having said that, we continue to see several demand signals and a higher degree of out-tempo in the region.

And then the reality is that the op tempo remains high so I think balancing.

Both new awards on contract growth and.

And the realistic and the realities I should say of the current out sample.

And, you know, we continue to work on that.

It gives us confidence in the guide that.

So.

provide ways to modernize bases that we're currently operating on, such as Kwajalein and the Marshall Islands.

At issue here today. Thank.

Thank you mentioned Indo pay com too.

There are not there are not exercises named after size as scheduled at this point in time, because we've indicated the past those are done on an odd years, having said that we.

Great, really appreciate the cover. I'll jump back in the queue.

Thank you.

Our next question comes from Saj Singh with Stiefel. Please proceed with your question.

We continue to see several demand signal and a higher degree of op tempo in the region.

Hey, guys. Good morning. I'm on for birth.

And we continue to.

How are you? Morning. Doing well.

Provide ways to modernize basis that we're currently operating on such as Kwajalein in the.

I guess you've touched on it, but just to get some more color on it, just curious about your view on MRO ramp life cycles.

And the Marshall Islands.

Great I appreciate the color or Jim Brickman Q.

You sort of talked about pipeline, but what are you seeing in terms of new awards? How do you then see that impacting?

Thank you.

Yeah.

Our next question comes from <unk> Singh with Stifel. Please proceed with your question Hi.

or normalize margins, just any color you can provide there would be helpful.

Hey, guys good morning, I'm on for Bert.

Right, yeah.

How are you good morning doing.

As we talked last quarter, the F5 Adversary Award was an important award. It happens to be fixed price as well. It's still under protest. We will, at the resolution of that protest, assume that we'll be able to start that program here in this year, probably closer to the second half of the year, I would assume. Really, the only two platforms we have in retirement now we've talked about are the KC10 and the T1A. Both of those are.

Doing well.

I guess, you've touched on it but.

Just to get some more color on that just curious about your view on MRO ramp life cycles.

You sort of talked about pipeline, but what are you seeing in terms of New awards. How you then see that impacting.

Our normalized margins.

Any color you can provide there would be helpful.

Right.

As we talked last quarter the F.

Five adversary award wasn't an important award it happens to be fixed price as well.

It's been very predictably winding down. And other than those two, we have no other.

It is still under protest we will.

At the resolution of that protest assumed that we will get to be able to start that program here.

At this point in time, we have no other known retirements.

in our portfolio of contracts.

And this year, probably closer to the second half of the year I would assume.

Is there anything else you wanted to add on that one? The margin impact would be helpful, and then, if I could add on to that, I guess, thinking through maybe early days on Navy test wing, you know, the Pacific and Atlantic, if you could touch there, too.

Really the only two platforms. We have in retirement now we've just talked about are the KC 10 and the.

And the <unk>.

Both of those are.

Very predictably winding down and other than those two we have no other.

Sure. As Sean indicated, I mean, we'll ramp through the year. The margins on the retiring programs are higher because they're at the end of life cycle. And with such a large percentage of our

At this point in time, we have no other known retirements.

And our portfolio of contracts.

Okay. You asked was there anything else to your question is there anything else that you wanted to add on that one just the margin impact would be helpful. And then if I could add onto that I guess thinking through maybe early days on Navy test Duane.

backlog in the early stages, and we're seeing the...

a predictable ramp in the profit margins post-sale and into the base years. Frankly, we're thrilled at the rate and pace that that's occurring. It's just, again, that's such a large quantity of new winds over the last three years, which we're thrilled about, frankly. Both Naval, Tasmanian, Pacific, and Atlantic are

The Pacific and Atlantic if you could touch there too.

Sure So as Sean indicated I mean, we'll ramp through the year.

The margins on the retiree programs are higher because they are at the end of lifecycle.

And.

With such a large percentage of our.

Our backlog in the early stages and we're seeing the <unk>.

performing exceptionally. I couldn't be more thrilled. I couldn't be more pleased with the team. We're hearing this directly from our clients. We're not we're not talking to ourselves on this.

Predictable ramp and the and the profit margins post sale and into the into the base years in <unk> and <unk>.

Thankfully, we're we're thrilled at the rate and pace.

As I'm sure you know, because you follow the industry very closely, the development of pilots to be fully capable is a significant, significant measurement for both our Navy and Air Force clients. They can train pilots quickly enough to meet their needs. And again, we're pleased and privileged to play an important role in, again, picking up the pace, the rate and pace by which pilots.

That that's occurring it's just again, it's such a large quantity of.

Of new wins over the.

Last three years, which we're thrilled about frankly.

Both naval task length Pacific and Atlantic are.

Performing exceptionally I couldnt be more thrilled I couldnt be more pleased with the team.

We're hearing this directly from our clients, we're not we're not talking to yourself on this as I'm sure you know because you follow the industry very closely.

can be trained.

Sure. Thanks, Chuck. That's helpful.

The development of pilots can be fully capable is a <unk>.

And, I guess, you know, following up on one of the questions that was asked on IndoPay.com, you know, I was reading that the Pacific, excuse me, deterrence initiative.

Significant significant.

As you mentioned are both our Navy and Air force clients that they can train pilots quickly enough to meet their needs and and again, where we're pleased and privileged to play an important role.

It should grow to about $14 bill in FY24, something around that. I'm just curious if you think there's upside to that, if budgets are appropriated soon, and what you think that could look like.

And again picking up the pace the rate and pace by which pilots can be trained.

Sure. Thanks, Chuck that's helpful.

Bye.

I think a way to look at that is the performance that we posted in the second half of the year. The fact that we

And I guess following up on one of the questions that was asked on and they'll pay com.

And I was reading that the Pacific excuse me returns initiatives.

book more revenue in the second half of the year than the first half.

Should grow to about 14, bill in FY 'twenty for something around that and just curious if you think there is upside.

even though the exercise wasn't the first half of the year.

that is directly attributable to the PDI, the Pacific Deterrence Initiative.

True that it budgets are appropriate.

And what do you think that could look like.

Okay.

Bye-bye.

Again, the up-tempo is high, the budget is a reality, because these are, in many cases, new requirements. But again, kind of working through the muted new award environment, but the ability to grow on contract is a good balance, and again, a bit of a long-winded way of answering your question. We remain very bullish on growth in the Baytown region.

Yes.

A way to look at that is the performance that we posted in the second half of the year.

Fact that we.

We.

Booked more revenue in the second half of the year than the first half.

Even though the exercise was in the first half of the year.

That is directly attributed attributable.

Two the PDI specific insurance initiative.

Again, the op tempo with high that budget is a reality because these are in many cases new requirements.

No, thanks. That is helpful. And then maybe, Sean, just one last one for you, just for the models. How are you thinking through interest rates, especially as it's concerning the de-leveraging process? Yeah. Yeah.

But again kind of working through the.

The muted New awards.

New award environment, but the ability to grow on contract.

Yeah. So, you know, we've made tremendous progress in deleveraging. We're obviously very focused on that. You know, as we go into 24, you saw where we think we'll be at, you know, less than three at the end of 24. You know, from an interest expense standpoint,

Good balance and again a bit of long winded way of answering your question, but we remain very bullish on.

On our growth and then the breakout region.

No. Thanks that is helpful. And then maybe Sean just one last one for you just for the models how are you thinking through interest rates, especially as it is concerned.

You know, it's comparable to what we had in 2023. We will look at, you know, opportunities as interest rates change, and as that leverage ratio comes down, we've taken advantage of...

Deleveraging process.

Yes so.

We've made tremendous progress in deleveraging, we are obviously very focused on that.

improved grid pricing previously. We'll look to do that again, you know, kind of as appropriate and improve upon our position.

As we go into 'twenty four you saw where we think it will be less.

Less than three at the end of at the end of 'twenty four.

as we go throughout the year. The team did a great job. Couldn't be more happy with the cash that was delivered in the quarter. And we'll look to continue to do those things throughout the year.

From an interest expense standpoint.

It's comparable to what we had in 2023.

We will look at.

<unk> opportunities as interest rates change and as as that leverage ratio comes down.

Well, thank you. Look, congrats on the great quarter, guys, and we'll talk to you next quarter.

<unk> taken advantage of.

Thank you. Thanks.

Improved grid pricing previously, we'll look to do that again.

As a reminder, if you would like to ask a question, please press star 1 on your telephone keypad.

As appropriate in and improve upon our position.

As we go throughout the year team did a great job couldn't be more happy with.

The cash that was delivered in the quarter and we'll look to continue to do those things throughout the year.

Okay, it appears that there are no further questions at this time. I would now like to turn the floor back over to Chuck Proe for closing comments.

Well. Thank you look congrats on a great quarter, guys and we'll talk to you next quarter.

Thank you thanks.

Thank you very much and thank you all for your questions. We've just completed what we think to be a very, very solid year and we look forward to talking to you again at the end of the first quarter. I know we may see you all at conferences here in the not too distant future. Talk to you soon. Bye.

As a reminder, if you would like to ask a question. Please press star one on your telephone keypad.

This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.

And it appears that there are no further questions at this time I would now like to turn the floor back over to Chuck Prow for closing comments.

Alright, Thank you very much and thank you all for your questions of we've.

<unk> completed and what we think could be a very very solid year and we look forward to talking to you again at the end of the first quarter and then we may see <unk> conferences here in not too distant future talk you soon bye.

This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.

[music].

Yeah.

Operator: My name is Marie and I'll be the operator for today's call, at this time all participants have been placed in a listen only mode. Following managements presentation I will open the call up for a Q&A session. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad, as a reminder, this conference is being recorded. And now I'll pass the call over to your host Mike Smith, Vice President of Treasury Investor Relations and corporate development at V2X you may go ahead Sir.

Operator: My name is Marie and I'll be the operator for today's call, at this time all participants have been placed in a listen only mode.

Operator: Following managements presentation I will open the call up for a Q&A session. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad, as a reminder, this conference is being recorded. And now I'll pass the call over to your host Mike Smith, Vice President of Treasury Investor Relations and corporate development at V2X you may go ahead Sir.

If anyone should require operator assistance during the conference. Please press star zero on your telephone keypad as a reminder, this conference is being recorded.

And now I'll pass the call over to your host Mike Smith, Vice President of Treasury Investor Relations Investor Relations and corporate development at V to X you May go ahead Sir.

Operator: And now I'll pass the call over to your host Mike Smith, Vice President of Treasury Investor Relations and corporate development at V2X you may go ahead Sir.

Michael J. Smith: Thank you, good morning everyone welcome to V2X fourth quarter and full year 2023 earnings conference call. Joining us today are Chuck Prow, President and Chief Executive Officer, and Shawn Mural, Senior Vice President and Chief Financial Officer. Slides for today's presentation are available on the Investor Relations section of our website gov2x.com, please turn to slide two. During today's presentation management will be making forward looking statements pursuant to the Safe Harbor Provisions of the federal Securities laws. Please review our safe Harbor statements in our press release and presentation materials for a description of some of the factors that may cause actual results to differ materially from the results contemplated by these forward looking statements, the company assumes no obligation to update it's forward looking statements. Additionally, I would like to point out that in addition to GAAP earnings, we'll be discussing and reporting various adjusted non-GAAP metrics, including adjusted EBITDA and margin, adjusted operating cash flow, adjusted net income and adjusted diluted earnings per share. The definition of these non-GAAP measures can be found in our presentation materials available on our Investor Relations website and in our press release filed with the SEC. At this time I would like to turn the call over to Chuck Prow.

Michael J. Smith: Thank you, good morning everyone welcome to V2X fourth quarter and full year 2023 earnings conference call.

Michael J. Smith: Joining us today are Chuck Prow, President and Chief Executive Officer, and Shawn Mural, Senior Vice President and Chief Financial Officer. Slides for today's presentation are available on the Investor Relations section of our website gov2x.com, please turn to slide two. During today's presentation management will be making forward looking statements pursuant to the Safe Harbor Provisions of the federal Securities laws. Please review our safe Harbor statements in our press release and presentation materials for a description of some of the factors that may cause actual results to differ materially from the results contemplated by these forward looking statements, the company assumes no obligation to update it's forward looking statements. Additionally, I would like to point out that in addition to GAAP earnings, we'll be discussing and reporting various adjusted non-GAAP metrics, including adjusted EBITDA and margin, adjusted operating cash flow, adjusted net income and adjusted diluted earnings per share. The definition of these non-GAAP measures can be found in our presentation materials available on our Investor Relations website and in our press release filed with the SEC. At this time I would like to turn the call over to Chuck Prow.

Michael J. Smith: Joining us today are Chuck Prow, President and Chief Executive Officer, and Shawn Mural, Senior Vice President and Chief Financial Officer.

As of today are Chuck <unk>, President and Chief Executive Officer, and Sean morale, Senior Vice President and Chief Financial Officer.

Michael J. Smith: Slides for today's presentation are available on the Investor Relations section of our website gov2x.com, please turn to slide two. During today's presentation management will be making forward looking statements pursuant to the Safe Harbor Provisions of the federal Securities laws. Please review our safe Harbor statements in our press release and presentation materials for a description of some of the factors that may cause actual results to differ materially from the results contemplated by these forward looking statements, the company assumes no obligation to update it's forward looking statements. Additionally, I would like to point out that in addition to GAAP earnings, we'll be discussing and reporting various adjusted non-GAAP metrics, including adjusted EBITDA and margin, adjusted operating cash flow, adjusted net income and adjusted diluted earnings per share. The definition of these non-GAAP measures can be found in our presentation materials available on our Investor Relations website and in our press release filed with the SEC. At this time I would like to turn the call over to Chuck Prow.

Michael J. Smith: Slides for today's presentation are available on the Investor Relations section of our website gov2x.com, please turn to slide two.

Slides for today's presentation are available on the Investor Relations section of our website.

<unk> <unk> dot com.

Michael J. Smith: During today's presentation management will be making forward looking statements pursuant to the Safe Harbor Provisions of the federal Securities laws. Please review our safe Harbor statements in our press release and presentation materials for a description of some of the factors that may cause actual results to differ materially from the results contemplated by these forward looking statements, the company assumes no obligation to update it's forward looking statements. Additionally, I would like to point out that in addition to GAAP earnings, we'll be discussing and reporting various adjusted non-GAAP metrics, including adjusted EBITDA and margin, adjusted operating cash flow, adjusted net income and adjusted diluted earnings per share. The definition of these non-GAAP measures can be found in our presentation materials available on our Investor Relations website and in our press release filed with the SEC. At this time I would like to turn the call over to Chuck Prow.

Michael J. Smith: During today's presentation management will be making forward looking statements pursuant to the Safe Harbor Provisions of the federal Securities laws.

Please turn to slide two.

During today's presentation management will be making forward looking statements pursuant to the safe Harbor provisions of the federal Securities laws.

Michael J. Smith: Please review our safe Harbor statements in our press release and presentation materials for a description of some of the factors that may cause actual results to differ materially from the results contemplated by these forward looking statements, the company assumes no obligation to update it's forward looking statements. Additionally, I would like to point out that in addition to GAAP earnings, we'll be discussing and reporting various adjusted non-GAAP metrics, including adjusted EBITDA and margin, adjusted operating cash flow, adjusted net income and adjusted diluted earnings per share. The definition of these non-GAAP measures can be found in our presentation materials available on our Investor Relations website and in our press release filed with the SEC. At this time I would like to turn the call over to Chuck Prow.

Please review our safe Harbor statements in our press release and presentation materials for a description of some of the factors that may cause actual results to differ materially from the results contemplated by these forward looking statements.

The company assumes no obligation to update its forward looking statements.

Michael J. Smith: Additionally, I would like to point out that in addition to GAAP earnings, we'll be discussing and reporting various adjusted non-GAAP metrics, including adjusted EBITDA and margin, adjusted operating cash flow, adjusted net income and adjusted diluted earnings per share. The definition of these non-GAAP measures can be found in our presentation materials available on our Investor Relations website and in our press release filed with the SEC. At this time I would like to turn the call over to Chuck Prow.

Additionally, I would like to point out that in addition to GAAP earnings.

We'll be discussing and reporting various adjusted non-GAAP metrics, including adjusted EBITDA and margin.

Adjusted operating cash flow.

Adjusted net income and adjusted diluted earnings per share.

Michael J. Smith: The definition of these non-GAAP measures can be found in our presentation materials available on our Investor Relations website and in our press release filed with the SEC. At this time I would like to turn the call over to Chuck Prow.

Michael J. Smith: The definition of these non-GAAP measures can be found in our presentation materials available on our Investor Relations website and in our press release filed with the SEC.

The definition of these non-GAAP measures can be found in our presentation materials available on our Investor Relations website and in our press release filed with the SEC.

Michael J. Smith: At this time I would like to turn the call over to Chuck Prow.

At this time I would like to turn the call over to Chuck probe.

Charles L. Prow: Thank you Mike and good morning, everyone. Thank you for joining us on the call today, Please turn to slide three. Before we get started I'd like to thank you over 16000 <unk> employees for their contribution and in particular their performance during the fourth quarter to end 2023 on a high note. I just returned from a trip to the middle East visiting our clients and people. The feedback I've received from our clients' underscore the unwavering service agility innovation and technology enabled solutions that we are delivering in support of their most critical missions. Yes, just around the clock around the globe commitment to our clients that will drive our continued leadership and growth. Please turn to slide four. The transformation of <unk> continued organic and inorganic growth, which improved scale. Portability diversification and capabilities has allowed us to emerge as a leader in the operational segment of the broader federal services marketplace. Our company had purpose built. Across an expanded client contract and geographic footprint to deliver value in this market. Our market has witnessed significant structural changes in recent years and continues to rapidly evolve. We are advancing how admissions are operated by leveraging converged and engineered solutions at the intersection of technology and operations. This. This includes modernization and sustainment support that elongated platform lifecycle, while enhancing capabilities. These improved outcomes yield greater value for our clients and shareholders, while providing greater opportunities for our people. Please. Please turn to slide five. Top line momentum extended into the fourth quarter with revenues once again exceeding $1 billion. This resulted in revenue growth of 6% year over year and 4% sequentially. Revenue for the full year increased 8% on a pro forma basis at. The $3 96 billion. Which was also ahead of our guidance range. Revenue in the fourth quarter was driven by 31% year over year growth in the Pacific and 18% in the Middle East. Our work in the Pacific <unk> continued to expand reaching $71 2 million.

Charles L. Prow: Thank you Mike, and good morning, everyone, thank you for joining us on the call today, please turn to slide three. Before we get started I'd like to thank you over 16,000 V2X employees for their contribution, and in particular their performance during the fourth quarter to end 2023 on a high note. I just returned from a trip to the Middle East visiting our clients and people, the feedback I've received from our clients' underscore, the unwavering service, agility, innovation and technology-enabled solutions that we are delivering in support of their most critical missions. This is around the clock, around the globe commitment to our clients that will drive our continued leadership and growth. Please turn to slide four. The transformation of V2X continued, organic and inorganic growth, which improved scale, portability, diversification and capabilities has allowed us to emerge as a leader in the operational segment of the broader federal services marketplace. Our company is purpose built across an expanded client, contract and geographic footprint to deliver value in this market. Our market has witnessed significant structural changes in recent years and continues to rapidly evolve, we are advancing how admissions are operated by leveraging converged and engineered solutions at the intersection of technology and operations. This includes modernization and sustainment support that elongated platform lifecycles, while enhancing capabilities, these improved outcomes yield greater value for our clients and shareholders, while providing greater opportunities for our people. Please turn to slide five. Top line momentum extended into the fourth quarter with revenues once again exceeding $1 billion dollars, this resulted in revenue growth of 6% year over year and 4% sequentially. Revenue for the full year increased 8% on a pro forma basis at a $3.96 billion dollars, which was also ahead of our guidance range, revenue in the fourth quarter was driven by 31% year over year growth in the Pacific and 18% in the Middle East.

Charles L. Prow: Thank you Mike, and good morning, everyone, thank you for joining us on the call today, please turn to slide three.

Before we get started I'd like to thank you over 16000 <unk> employees for their contribution and in particular their performance during the fourth quarter to end 2023 on a high note.

Charles L. Prow: Before we get started I'd like to thank you over 16,000 V2X employees for their contribution, and in particular their performance during the fourth quarter to end 2023 on a high note. I just returned from a trip to the Middle East visiting our clients and people, the feedback I've received from our clients' underscore, the unwavering service, agility, innovation and technology-enabled solutions that we are delivering in support of their most critical missions. This is around the clock, around the globe commitment to our clients that will drive our continued leadership and growth. Please turn to slide four. The transformation of V2X continued, organic and inorganic growth, which improved scale, portability, diversification and capabilities has allowed us to emerge as a leader in the operational segment of the broader federal services marketplace. Our company is purpose built across an expanded client, contract and geographic footprint to deliver value in this market. Our market has witnessed significant structural changes in recent years and continues to rapidly evolve, we are advancing how admissions are operated by leveraging converged and engineered solutions at the intersection of technology and operations. This includes modernization and sustainment support that elongated platform lifecycles, while enhancing capabilities, these improved outcomes yield greater value for our clients and shareholders, while providing greater opportunities for our people. Please turn to slide five. Top line momentum extended into the fourth quarter with revenues once again exceeding $1 billion dollars, this resulted in revenue growth of 6% year over year and 4% sequentially. Revenue for the full year increased 8% on a pro forma basis at a $3.96 billion dollars, which was also ahead of our guidance range, revenue in the fourth quarter was driven by 31% year over year growth in the Pacific and 18% in the Middle East.

I just returned from a trip to the middle East visiting our clients and people.

Charles L. Prow: I just returned from a trip to the Middle East visiting our clients and people, the feedback I've received from our clients' underscore, the unwavering service, agility, innovation and technology-enabled solutions that we are delivering in support of their most critical missions. This is around the clock, around the globe commitment to our clients that will drive our continued leadership and growth. Please turn to slide four. The transformation of V2X continued, organic and inorganic growth, which improved scale, portability, diversification and capabilities has allowed us to emerge as a leader in the operational segment of the broader federal services marketplace. Our company is purpose built across an expanded client, contract and geographic footprint to deliver value in this market. Our market has witnessed significant structural changes in recent years and continues to rapidly evolve, we are advancing how admissions are operated by leveraging converged and engineered solutions at the intersection of technology and operations. This includes modernization and sustainment support that elongated platform lifecycles, while enhancing capabilities, these improved outcomes yield greater value for our clients and shareholders, while providing greater opportunities for our people. Please turn to slide five. Top line momentum extended into the fourth quarter with revenues once again exceeding $1 billion dollars, this resulted in revenue growth of 6% year over year and 4% sequentially. Revenue for the full year increased 8% on a pro forma basis at a $3.96 billion dollars, which was also ahead of our guidance range, revenue in the fourth quarter was driven by 31% year over year growth in the Pacific and 18% in the Middle East.

The feedback I've received from our clients' underscore the unwavering service agility innovation and technology enabled solutions that we are delivering in support of their most critical missions.

Yes, just around the clock around the globe commitment to our clients that will drive our continued leadership and growth.

Charles L. Prow: This is around the clock, around the globe commitment to our clients that will drive our continued leadership and growth. Please turn to slide four. The transformation of V2X continued, organic and inorganic growth, which improved scale, portability, diversification and capabilities has allowed us to emerge as a leader in the operational segment of the broader federal services marketplace. Our company is purpose built across an expanded client, contract and geographic footprint to deliver value in this market. Our market has witnessed significant structural changes in recent years and continues to rapidly evolve, we are advancing how admissions are operated by leveraging converged and engineered solutions at the intersection of technology and operations. This includes modernization and sustainment support that elongated platform lifecycles, while enhancing capabilities, these improved outcomes yield greater value for our clients and shareholders, while providing greater opportunities for our people. Please turn to slide five. Top line momentum extended into the fourth quarter with revenues once again exceeding $1 billion dollars, this resulted in revenue growth of 6% year over year and 4% sequentially. Revenue for the full year increased 8% on a pro forma basis at a $3.96 billion dollars, which was also ahead of our guidance range, revenue in the fourth quarter was driven by 31% year over year growth in the Pacific and 18% in the Middle East.

Charles L. Prow: This is around the clock, around the globe commitment to our clients that will drive our continued leadership and growth. Please turn to slide four.

Please turn to slide four.

The transformation of <unk> continued organic and inorganic growth, which improved scale.

Charles L. Prow: The transformation of V2X continued, organic and inorganic growth, which improved scale, portability, diversification and capabilities has allowed us to emerge as a leader in the operational segment of the broader federal services marketplace. Our company is purpose built across an expanded client, contract and geographic footprint to deliver value in this market. Our market has witnessed significant structural changes in recent years and continues to rapidly evolve, we are advancing how admissions are operated by leveraging converged and engineered solutions at the intersection of technology and operations. This includes modernization and sustainment support that elongated platform lifecycles, while enhancing capabilities, these improved outcomes yield greater value for our clients and shareholders, while providing greater opportunities for our people. Please turn to slide five. Top line momentum extended into the fourth quarter with revenues once again exceeding $1 billion dollars, this resulted in revenue growth of 6% year over year and 4% sequentially. Revenue for the full year increased 8% on a pro forma basis at a $3.96 billion dollars, which was also ahead of our guidance range, revenue in the fourth quarter was driven by 31% year over year growth in the Pacific and 18% in the Middle East.

Portability diversification and capabilities has allowed us to emerge as a leader in the operational segment of the broader federal services marketplace.

Our company had purpose built.

Across an expanded client contract and geographic footprint to deliver value in this market.

Charles L. Prow: Our company is purpose built across an expanded client, contract and geographic footprint to deliver value in this market. Our market has witnessed significant structural changes in recent years and continues to rapidly evolve, we are advancing how admissions are operated by leveraging converged and engineered solutions at the intersection of technology and operations. This includes modernization and sustainment support that elongated platform lifecycles, while enhancing capabilities, these improved outcomes yield greater value for our clients and shareholders, while providing greater opportunities for our people. Please turn to slide five. Top line momentum extended into the fourth quarter with revenues once again exceeding $1 billion dollars, this resulted in revenue growth of 6% year over year and 4% sequentially. Revenue for the full year increased 8% on a pro forma basis at a $3.96 billion dollars, which was also ahead of our guidance range, revenue in the fourth quarter was driven by 31% year over year growth in the Pacific and 18% in the Middle East.

Charles L. Prow: Our company is purpose built across an expanded client, contract and geographic footprint to deliver value in this market.

Our market has witnessed significant structural changes in recent years and continues to rapidly evolve.

Charles L. Prow: Our market has witnessed significant structural changes in recent years and continues to rapidly evolve, we are advancing how admissions are operated by leveraging converged and engineered solutions at the intersection of technology and operations. This includes modernization and sustainment support that elongated platform lifecycles, while enhancing capabilities, these improved outcomes yield greater value for our clients and shareholders, while providing greater opportunities for our people. Please turn to slide five. Top line momentum extended into the fourth quarter with revenues once again exceeding $1 billion dollars, this resulted in revenue growth of 6% year over year and 4% sequentially. Revenue for the full year increased 8% on a pro forma basis at a $3.96 billion dollars, which was also ahead of our guidance range, revenue in the fourth quarter was driven by 31% year over year growth in the Pacific and 18% in the Middle East.

We are advancing how admissions are operated by leveraging converged and engineered solutions at the intersection of technology and operations. This.

This includes modernization and sustainment support that elongated platform lifecycle, while enhancing capabilities.

Charles L. Prow: This includes modernization and sustainment support that elongated platform lifecycles, while enhancing capabilities, these improved outcomes yield greater value for our clients and shareholders, while providing greater opportunities for our people. Please turn to slide five. Top line momentum extended into the fourth quarter with revenues once again exceeding $1 billion dollars, this resulted in revenue growth of 6% year over year and 4% sequentially. Revenue for the full year increased 8% on a pro forma basis at a $3.96 billion dollars, which was also ahead of our guidance range, revenue in the fourth quarter was driven by 31% year over year growth in the Pacific and 18% in the Middle East.

These improved outcomes yield greater value for our clients and shareholders, while providing greater opportunities for our people. Please.

Please turn to slide five.

Charles L. Prow: Top line momentum extended into the fourth quarter with revenues once again exceeding $1 billion dollars, this resulted in revenue growth of 6% year over year and 4% sequentially. Revenue for the full year increased 8% on a pro forma basis at a $3.96 billion dollars, which was also ahead of our guidance range, revenue in the fourth quarter was driven by 31% year over year growth in the Pacific and 18% in the Middle East.

Top line momentum extended into the fourth quarter with revenues once again exceeding $1 billion.

This resulted in revenue growth of 6% year over year and 4% sequentially.

Charles L. Prow: Revenue for the full year increased 8% on a pro forma basis at a $3.96 billion dollars, which was also ahead of our guidance range, revenue in the fourth quarter was driven by 31% year over year growth in the Pacific and 18% in the Middle East.

Revenue for the full year increased 8% on a pro forma basis at.

The $3 96 billion.

Which was also ahead of our guidance range.

Revenue in the fourth quarter was driven by 31% year over year growth in the Pacific and 18% in the Middle East.

Our work in the Pacific <unk> continued to expand reaching $71 2 million.

Charles L. Prow: Our work in the Pacific <unk> continued to expand reaching $71 2 million. Testament to our team's ability to drive on contract growth. Further expanding our services and footprint in the region. Our growth in the Middle East was partially driven by increased scope and services with the department of state. This expansion builds on our initial work awarded in early 2023. At the time represented our most substantive win the state. I recently had the opportunity to meet with our client and team supporting this effort and I'm exceptionally pleased with how we have been able to deliver successful outcomes. S B and ahead of schedule for this critical operations and logistics effort. We remain excited about the opportunity to expand our relationship with this client. Global presence and capabilities that are ideally suited to support stage worldwide mission and strategy. Our strong revenue performance in the quarter yielded solid profitability with adjusted EBITDA of $82 1 million or seven 9% margin. For the year, adjusted EBITDA was $293 9 million or seven 4% margin. Cash flow was notable during the quarter, resulting in year to date adjusted cash flow from operations of $159 $5 million. Which was ahead of our guidance range. This strong cash generation equates to a net leverage ratio of three three times. Our engineering integration and modernization and Sustainment solutions are gaining momentum with approximately $70 million of awards to be <unk> in the quarter. Importantly, we recently demonstrated these capabilities through the successful design and fielding of defense platform that leverage and enhance existing systems. This effort originally started as an engineering development prototyping effort with a new client and today. <unk> is a brand new product that's. That's designed produced and sustained <unk>. We see substantial opportunity to further expand our revenue and market presence associated with these capabilities. For example, we continue to be optimistic regarding our growth prospects associated with our proprietary gateway. <unk> mission router, one or <unk> 1000. As mentioned on past calls this family of products is a fully ruggedized and cyber hard in multi domain router that provide cutting edge situational awareness.

Charles L. Prow: Our work in the Pacific for INDOPACOM continued to expand reaching $71.2 million dollars, a record for V2X and was particularly impressive given the Talisman Sabre exercises that occurred in the first half of this year. This is a testament to our team's ability to drive on-contract growth for further expanding our services and footprint in the region. Our growth in the Middle East was partially driven by increased scope and services with the department of state, this expansion builds on our initial work awarded in early 2023, that at the time represented our most substantive win the state. I recently had the opportunity to meet with our client and team supporting this effort, and I'm exceptionally pleased with how we have been able to deliver successful outcomes, at speed and ahead of schedule for this critical operations and logistics effort. We remain excited about the opportunity to expand our relationship with this client through our global presence and capabilities that are ideally suited to support stage worldwide mission and strategy. Our strong revenue performance in the quarter yielded solid profitability with adjusted EBITDA of $82.1 million dollars or s7.9% margin. For the year, adjusted EBITDA was $293.9 million or 7.4% margin, cash flow was notable during the quarter, resulting in year to date adjusted cash flow from operations of $159.5 million dollars which was ahead of our guidance range, this strong cash generation equates to a net leverage ratio of 3.3 times. Our engineering, integration, and modernization in sustainment solutions are gaining momentum with approximately $70 million of awards to V2X in the quarter. Importantly, we recently demonstrated these capabilities through the successful design and fielding of defense platform that leverage and enhance existing systems. This effort originally started as an engineering development prototyping effort with a new client and today has yielded as a brand new product that's designed produced and sustained by V2X. We see substantial opportunity to further expand our revenue and market presence associated with these capabilities, for example, we continue to be optimistic regarding our growth prospects associated with our proprietary, gateway mission router 1000 or GMR-1000.

A record for <unk> and was particularly impressive given the talisman sabre exercises that occurred in the first half of this year.

Testament to our team's ability to drive on contract growth.

Charles L. Prow: This is a testament to our team's ability to drive on-contract growth for further expanding our services and footprint in the region. Our growth in the Middle East was partially driven by increased scope and services with the department of state, this expansion builds on our initial work awarded in early 2023, that at the time represented our most substantive win the state. I recently had the opportunity to meet with our client and team supporting this effort, and I'm exceptionally pleased with how we have been able to deliver successful outcomes, at speed and ahead of schedule for this critical operations and logistics effort. We remain excited about the opportunity to expand our relationship with this client through our global presence and capabilities that are ideally suited to support stage worldwide mission and strategy. Our strong revenue performance in the quarter yielded solid profitability with adjusted EBITDA of $82.1 million dollars or s7.9% margin. For the year, adjusted EBITDA was $293.9 million or 7.4% margin, cash flow was notable during the quarter, resulting in year to date adjusted cash flow from operations of $159.5 million dollars which was ahead of our guidance range, this strong cash generation equates to a net leverage ratio of 3.3 times. Our engineering, integration, and modernization in sustainment solutions are gaining momentum with approximately $70 million of awards to V2X in the quarter. Importantly, we recently demonstrated these capabilities through the successful design and fielding of defense platform that leverage and enhance existing systems. This effort originally started as an engineering development prototyping effort with a new client and today has yielded as a brand new product that's designed produced and sustained by V2X. We see substantial opportunity to further expand our revenue and market presence associated with these capabilities, for example, we continue to be optimistic regarding our growth prospects associated with our proprietary, gateway mission router 1000 or GMR-1000.

Charles L. Prow: This is a testament to our team's ability to drive on-contract growth for further expanding our services and footprint in the region.

Further expanding our services and footprint in the region.

Our growth in the Middle East was partially driven by increased scope and services with the department of state.

Charles L. Prow: Our growth in the Middle East was partially driven by increased scope and services with the department of state, this expansion builds on our initial work awarded in early 2023, that at the time represented our most substantive win the state. I recently had the opportunity to meet with our client and team supporting this effort, and I'm exceptionally pleased with how we have been able to deliver successful outcomes, at speed and ahead of schedule for this critical operations and logistics effort. We remain excited about the opportunity to expand our relationship with this client through our global presence and capabilities that are ideally suited to support stage worldwide mission and strategy. Our strong revenue performance in the quarter yielded solid profitability with adjusted EBITDA of $82.1 million dollars or s7.9% margin. For the year, adjusted EBITDA was $293.9 million or 7.4% margin, cash flow was notable during the quarter, resulting in year to date adjusted cash flow from operations of $159.5 million dollars which was ahead of our guidance range, this strong cash generation equates to a net leverage ratio of 3.3 times. Our engineering, integration, and modernization in sustainment solutions are gaining momentum with approximately $70 million of awards to V2X in the quarter. Importantly, we recently demonstrated these capabilities through the successful design and fielding of defense platform that leverage and enhance existing systems. This effort originally started as an engineering development prototyping effort with a new client and today has yielded as a brand new product that's designed produced and sustained by V2X. We see substantial opportunity to further expand our revenue and market presence associated with these capabilities, for example, we continue to be optimistic regarding our growth prospects associated with our proprietary, gateway mission router 1000 or GMR-1000.

This expansion builds on our initial work awarded in early 2023.

At the time represented our most substantive win the state.

I recently had the opportunity to meet with our client and team supporting this effort and I'm exceptionally pleased with how we have been able to deliver successful outcomes.

Charles L. Prow: I recently had the opportunity to meet with our client and team supporting this effort, and I'm exceptionally pleased with how we have been able to deliver successful outcomes, at speed and ahead of schedule for this critical operations and logistics effort. We remain excited about the opportunity to expand our relationship with this client through our global presence and capabilities that are ideally suited to support stage worldwide mission and strategy. Our strong revenue performance in the quarter yielded solid profitability with adjusted EBITDA of $82.1 million dollars or s7.9% margin. For the year, adjusted EBITDA was $293.9 million or 7.4% margin, cash flow was notable during the quarter, resulting in year to date adjusted cash flow from operations of $159.5 million dollars which was ahead of our guidance range, this strong cash generation equates to a net leverage ratio of 3.3 times. Our engineering, integration, and modernization in sustainment solutions are gaining momentum with approximately $70 million of awards to V2X in the quarter. Importantly, we recently demonstrated these capabilities through the successful design and fielding of defense platform that leverage and enhance existing systems. This effort originally started as an engineering development prototyping effort with a new client and today has yielded as a brand new product that's designed produced and sustained by V2X. We see substantial opportunity to further expand our revenue and market presence associated with these capabilities, for example, we continue to be optimistic regarding our growth prospects associated with our proprietary, gateway mission router 1000 or GMR-1000.

S B and ahead of schedule for this critical operations and logistics effort.

We remain excited about the opportunity to expand our relationship with this client.

Global presence and capabilities that are ideally suited to support stage worldwide mission and strategy.

Charles L. Prow: We remain excited about the opportunity to expand our relationship with this client through our global presence and capabilities that are ideally suited to support stage worldwide mission and strategy. Our strong revenue performance in the quarter yielded solid profitability with adjusted EBITDA of $82.1 million dollars or s7.9% margin. For the year, adjusted EBITDA was $293.9 million or 7.4% margin, cash flow was notable during the quarter, resulting in year to date adjusted cash flow from operations of $159.5 million dollars which was ahead of our guidance range, this strong cash generation equates to a net leverage ratio of 3.3 times. Our engineering, integration, and modernization in sustainment solutions are gaining momentum with approximately $70 million of awards to V2X in the quarter. Importantly, we recently demonstrated these capabilities through the successful design and fielding of defense platform that leverage and enhance existing systems. This effort originally started as an engineering development prototyping effort with a new client and today has yielded as a brand new product that's designed produced and sustained by V2X. We see substantial opportunity to further expand our revenue and market presence associated with these capabilities, for example, we continue to be optimistic regarding our growth prospects associated with our proprietary, gateway mission router 1000 or GMR-1000.

Our strong revenue performance in the quarter yielded solid profitability with adjusted EBITDA of $82 1 million or seven 9% margin.

Charles L. Prow: Our strong revenue performance in the quarter yielded solid profitability with adjusted EBITDA of $82.1 million dollars or s7.9% margin. For the year, adjusted EBITDA was $293.9 million or 7.4% margin, cash flow was notable during the quarter, resulting in year to date adjusted cash flow from operations of $159.5 million dollars which was ahead of our guidance range, this strong cash generation equates to a net leverage ratio of 3.3 times. Our engineering, integration, and modernization in sustainment solutions are gaining momentum with approximately $70 million of awards to V2X in the quarter. Importantly, we recently demonstrated these capabilities through the successful design and fielding of defense platform that leverage and enhance existing systems. This effort originally started as an engineering development prototyping effort with a new client and today has yielded as a brand new product that's designed produced and sustained by V2X. We see substantial opportunity to further expand our revenue and market presence associated with these capabilities, for example, we continue to be optimistic regarding our growth prospects associated with our proprietary, gateway mission router 1000 or GMR-1000.

Charles L. Prow: Our strong revenue performance in the quarter yielded solid profitability with adjusted EBITDA of $82.1 million dollars or s7.9% margin.

For the year, adjusted EBITDA was $293 9 million or seven 4% margin.

Charles L. Prow: For the year, adjusted EBITDA was $293.9 million or 7.4% margin, cash flow was notable during the quarter, resulting in year to date adjusted cash flow from operations of $159.5 million dollars which was ahead of our guidance range, this strong cash generation equates to a net leverage ratio of 3.3 times. Our engineering, integration, and modernization in sustainment solutions are gaining momentum with approximately $70 million of awards to V2X in the quarter. Importantly, we recently demonstrated these capabilities through the successful design and fielding of defense platform that leverage and enhance existing systems. This effort originally started as an engineering development prototyping effort with a new client and today has yielded as a brand new product that's designed produced and sustained by V2X. We see substantial opportunity to further expand our revenue and market presence associated with these capabilities, for example, we continue to be optimistic regarding our growth prospects associated with our proprietary, gateway mission router 1000 or GMR-1000.

Cash flow was notable during the quarter, resulting in year to date adjusted cash flow from operations of $159 $5 million.

Which was ahead of our guidance range. This strong cash generation equates to a net leverage ratio of three three times.

Our engineering integration and modernization and Sustainment solutions are gaining momentum with approximately $70 million of awards to be <unk> in the quarter.

Charles L. Prow: Our engineering, integration, and modernization in sustainment solutions are gaining momentum with approximately $70 million of awards to V2X in the quarter. Importantly, we recently demonstrated these capabilities through the successful design and fielding of defense platform that leverage and enhance existing systems. This effort originally started as an engineering development prototyping effort with a new client and today has yielded as a brand new product that's designed produced and sustained by V2X. We see substantial opportunity to further expand our revenue and market presence associated with these capabilities, for example, we continue to be optimistic regarding our growth prospects associated with our proprietary, gateway mission router 1000 or GMR-1000.

Charles L. Prow: Our engineering, integration, and modernization in sustainment solutions are gaining momentum with approximately $70 million of awards to V2X in the quarter.

Importantly, we recently demonstrated these capabilities through the successful design and fielding of defense platform that leverage and enhance existing systems.

Charles L. Prow: Importantly, we recently demonstrated these capabilities through the successful design and fielding of defense platform that leverage and enhance existing systems. This effort originally started as an engineering development prototyping effort with a new client and today has yielded as a brand new product that's designed produced and sustained by V2X. We see substantial opportunity to further expand our revenue and market presence associated with these capabilities, for example, we continue to be optimistic regarding our growth prospects associated with our proprietary, gateway mission router 1000 or GMR-1000.

Charles L. Prow: Importantly, we recently demonstrated these capabilities through the successful design and fielding of defense platform that leverage and enhance existing systems.

This effort originally started as an engineering development prototyping effort with a new client and today.

Charles L. Prow: This effort originally started as an engineering development prototyping effort with a new client and today has yielded as a brand new product that's designed produced and sustained by V2X. We see substantial opportunity to further expand our revenue and market presence associated with these capabilities, for example, we continue to be optimistic regarding our growth prospects associated with our proprietary, gateway mission router 1000 or GMR-1000.

<unk> is a brand new product that's.

That's designed produced and sustained <unk>.

We see substantial opportunity to further expand our revenue and market presence associated with these capabilities.

Charles L. Prow: We see substantial opportunity to further expand our revenue and market presence associated with these capabilities, for example, we continue to be optimistic regarding our growth prospects associated with our proprietary, gateway mission router 1000 or GMR-1000.

For example, we continue to be optimistic regarding our growth prospects associated with our proprietary gateway.

<unk> mission router, one or <unk> 1000.

Charles L. Prow: As mentioned on past calls this family of products is a fully ruggedized and cyber hard in multi domain router that provide cutting edge situational awareness. <unk> continues to increase at the army footprint by integrating on additional different air and ground plant. During the quarter, we submitted our proposal for a sole sourced RFP, which includes production for up to 3000 <unk>. In addition, we are seeing good traction with potential new clients that have acknowledged <unk>, one thousands capability and maturity for other applications. Building on our momentum in the Middle East I am pleased to announce that during the quarter <unk> for the awarded a new task order with the U S Air Force valued at $100 million over the next five years under this award. <unk> will provide civil engineering and infrastructure support services in the U S Air Force in the region. We are honored to have been selected to support such an important mission and we look forward to building on our exemplary service with the Air Force. Additionally, <unk> recently achieved a significant milestone the company's first substantial foreign military sales win which provides aviation support and training to an SMS client in the middle East. The overall op tempo in the region remains elevated and the demand signals from our clients remain heightened to date. The majority of current requirements are generally being routed through our existing contracts. However, we believe our emerging requirements could result in new contracts or task orders. Please turn to slide six where I will demonstrate our recent Fms win and multiyear campaign. Over the past few years, we have methodically planned and invested in our foreign military sales campaign, which is now yielding results. As mentioned we are we were recently awarded a long term aviation support and training contract in the Middle East. The award is valued at approximately $400 million over the next five years. And with an exceptional win for <unk>, representing a culmination over two years of planning and engagement. The majority of an award is not included in our fourth quarter backlog of contracted being definitive. Our team is currently working on transition related activity and expect to have the contract operating at full run rate in the second half.

Charles L. Prow: As mentioned on past calls, this family of products is of fully ruggedized and cyber hard in multi domain router that provide cutting edge situational awareness. V2X continues to increase it's army's footprint by integrating on additional different air and ground products. During the quarter, we submitted our proposal for a sole sourced RFP, which includes production for up to 3000 GMRs, in addition, we are seeing good traction with potential new clients that have acknowledged GMR-1000 capabilities and maturity for other applications. Building on our momentum in the Middle East I am pleased to announce that during the quarter V2X was the awarded a new task order with the US Air Force valued at $100 million dollars over the next five years. Under this award. V2X will provide civil engineering and infrastructure support services to the US Air Force in the region, we are honored to have been selected to support such an important mission and we look forward to building on our exemplary service with the Air Force. Additionally, V2X recently achieved a significant milestone, the company's first substantial foreign military sales win, which provides aviation support and training to an FMS client in the Middle East. The overall uptempo in the region remains elevated and the demand signals from our clients remain heightened, to date, the majority of current requirements are generally being routed through our existing contracts, however, we believe emerging requirements could result in new contracts or task orders. Please turn to slide six, where I will demonstrate our recent FMS win and multiyear campaign. Over the past few years, we have methodically planned and invested in our foreign military sales campaign, which is now yielding results. As mentioned, we are we were recently awarded a long term aviation support and training contract in the Middle East, the award is valued at approximately $400 million dollars over the next five years, and was an exceptional win for V2X, representing a culmination over two years of planning and engagement. The majority of the award is not included in our fourth quarter backlog as the contracted being definitive.

Charles L. Prow: As mentioned on past calls, this family of products is of fully ruggedized and cyber hard in multi domain router that provide cutting edge situational awareness.

As mentioned on past calls this family of products is a fully ruggedized and cyber hard in multi domain router that provide cutting edge situational awareness.

Charles L. Prow: V2X continues to increase it's army's footprint by integrating on additional different air and ground products. During the quarter, we submitted our proposal for a sole sourced RFP, which includes production for up to 3000 GMRs, in addition, we are seeing good traction with potential new clients that have acknowledged GMR-1000 capabilities and maturity for other applications. Building on our momentum in the Middle East I am pleased to announce that during the quarter V2X was the awarded a new task order with the US Air Force valued at $100 million dollars over the next five years. Under this award. V2X will provide civil engineering and infrastructure support services to the US Air Force in the region, we are honored to have been selected to support such an important mission and we look forward to building on our exemplary service with the Air Force. Additionally, V2X recently achieved a significant milestone, the company's first substantial foreign military sales win, which provides aviation support and training to an FMS client in the Middle East. The overall uptempo in the region remains elevated and the demand signals from our clients remain heightened, to date, the majority of current requirements are generally being routed through our existing contracts, however, we believe emerging requirements could result in new contracts or task orders. Please turn to slide six, where I will demonstrate our recent FMS win and multiyear campaign. Over the past few years, we have methodically planned and invested in our foreign military sales campaign, which is now yielding results. As mentioned, we are we were recently awarded a long term aviation support and training contract in the Middle East, the award is valued at approximately $400 million dollars over the next five years, and was an exceptional win for V2X, representing a culmination over two years of planning and engagement. The majority of the award is not included in our fourth quarter backlog as the contracted being definitive.

Charles L. Prow: V2X continues to increase it's army's footprint by integrating on additional different air and ground products.

<unk> continues to increase at the army footprint by integrating on additional different air and ground plant.

Charles L. Prow: During the quarter, we submitted our proposal for a sole sourced RFP, which includes production for up to 3000 GMRs, in addition, we are seeing good traction with potential new clients that have acknowledged GMR-1000 capabilities and maturity for other applications. Building on our momentum in the Middle East I am pleased to announce that during the quarter V2X was the awarded a new task order with the US Air Force valued at $100 million dollars over the next five years. Under this award. V2X will provide civil engineering and infrastructure support services to the US Air Force in the region, we are honored to have been selected to support such an important mission and we look forward to building on our exemplary service with the Air Force. Additionally, V2X recently achieved a significant milestone, the company's first substantial foreign military sales win, which provides aviation support and training to an FMS client in the Middle East. The overall uptempo in the region remains elevated and the demand signals from our clients remain heightened, to date, the majority of current requirements are generally being routed through our existing contracts, however, we believe emerging requirements could result in new contracts or task orders. Please turn to slide six, where I will demonstrate our recent FMS win and multiyear campaign. Over the past few years, we have methodically planned and invested in our foreign military sales campaign, which is now yielding results. As mentioned, we are we were recently awarded a long term aviation support and training contract in the Middle East, the award is valued at approximately $400 million dollars over the next five years, and was an exceptional win for V2X, representing a culmination over two years of planning and engagement. The majority of the award is not included in our fourth quarter backlog as the contracted being definitive.

During the quarter, we submitted our proposal for a sole sourced RFP, which includes production for up to 3000 <unk>.

In addition, we are seeing good traction with potential new clients that have acknowledged <unk>, one thousands capability and maturity for other applications.

Charles L. Prow: Building on our momentum in the Middle East I am pleased to announce that during the quarter V2X was the awarded a new task order with the US Air Force valued at $100 million dollars over the next five years. Under this award. V2X will provide civil engineering and infrastructure support services to the US Air Force in the region, we are honored to have been selected to support such an important mission and we look forward to building on our exemplary service with the Air Force. Additionally, V2X recently achieved a significant milestone, the company's first substantial foreign military sales win, which provides aviation support and training to an FMS client in the Middle East. The overall uptempo in the region remains elevated and the demand signals from our clients remain heightened, to date, the majority of current requirements are generally being routed through our existing contracts, however, we believe emerging requirements could result in new contracts or task orders. Please turn to slide six, where I will demonstrate our recent FMS win and multiyear campaign. Over the past few years, we have methodically planned and invested in our foreign military sales campaign, which is now yielding results. As mentioned, we are we were recently awarded a long term aviation support and training contract in the Middle East, the award is valued at approximately $400 million dollars over the next five years, and was an exceptional win for V2X, representing a culmination over two years of planning and engagement. The majority of the award is not included in our fourth quarter backlog as the contracted being definitive.

Building on our momentum in the Middle East I am pleased to announce that during the quarter <unk> for the awarded a new task order with the U S Air Force valued at $100 million over the next five years under this award.

Charles L. Prow: Under this award. V2X will provide civil engineering and infrastructure support services to the US Air Force in the region, we are honored to have been selected to support such an important mission and we look forward to building on our exemplary service with the Air Force. Additionally, V2X recently achieved a significant milestone, the company's first substantial foreign military sales win, which provides aviation support and training to an FMS client in the Middle East. The overall uptempo in the region remains elevated and the demand signals from our clients remain heightened, to date, the majority of current requirements are generally being routed through our existing contracts, however, we believe emerging requirements could result in new contracts or task orders. Please turn to slide six, where I will demonstrate our recent FMS win and multiyear campaign. Over the past few years, we have methodically planned and invested in our foreign military sales campaign, which is now yielding results. As mentioned, we are we were recently awarded a long term aviation support and training contract in the Middle East, the award is valued at approximately $400 million dollars over the next five years, and was an exceptional win for V2X, representing a culmination over two years of planning and engagement. The majority of the award is not included in our fourth quarter backlog as the contracted being definitive.

<unk> will provide civil engineering and infrastructure support services in the U S Air Force in the region.

We are honored to have been selected to support such an important mission and we look forward to building on our exemplary service with the Air Force.

Additionally, <unk> recently achieved a significant milestone the company's first substantial foreign military sales win which provides aviation support and training to an SMS client in the middle East.

Charles L. Prow: Additionally, V2X recently achieved a significant milestone, the company's first substantial foreign military sales win, which provides aviation support and training to an FMS client in the Middle East. The overall uptempo in the region remains elevated and the demand signals from our clients remain heightened, to date, the majority of current requirements are generally being routed through our existing contracts, however, we believe emerging requirements could result in new contracts or task orders. Please turn to slide six, where I will demonstrate our recent FMS win and multiyear campaign. Over the past few years, we have methodically planned and invested in our foreign military sales campaign, which is now yielding results. As mentioned, we are we were recently awarded a long term aviation support and training contract in the Middle East, the award is valued at approximately $400 million dollars over the next five years, and was an exceptional win for V2X, representing a culmination over two years of planning and engagement. The majority of the award is not included in our fourth quarter backlog as the contracted being definitive.

Charles L. Prow: The overall uptempo in the region remains elevated and the demand signals from our clients remain heightened, to date, the majority of current requirements are generally being routed through our existing contracts, however, we believe emerging requirements could result in new contracts or task orders. Please turn to slide six, where I will demonstrate our recent FMS win and multiyear campaign. Over the past few years, we have methodically planned and invested in our foreign military sales campaign, which is now yielding results. As mentioned, we are we were recently awarded a long term aviation support and training contract in the Middle East, the award is valued at approximately $400 million dollars over the next five years, and was an exceptional win for V2X, representing a culmination over two years of planning and engagement. The majority of the award is not included in our fourth quarter backlog as the contracted being definitive.

The overall op tempo in the region remains elevated and the demand signals from our clients remain heightened to date. The majority of current requirements are generally being routed through our existing contracts. However, we believe our emerging requirements could result in new contracts or task orders.

Charles L. Prow: Please turn to slide six, where I will demonstrate our recent FMS win and multiyear campaign. Over the past few years, we have methodically planned and invested in our foreign military sales campaign, which is now yielding results. As mentioned, we are we were recently awarded a long term aviation support and training contract in the Middle East, the award is valued at approximately $400 million dollars over the next five years, and was an exceptional win for V2X, representing a culmination over two years of planning and engagement. The majority of the award is not included in our fourth quarter backlog as the contracted being definitive.

Please turn to slide six where I will demonstrate our recent Fms win and multiyear campaign.

Over the past few years, we have methodically planned and invested in our foreign military sales campaign, which is now yielding results.

Charles L. Prow: As mentioned, we are we were recently awarded a long term aviation support and training contract in the Middle East, the award is valued at approximately $400 million dollars over the next five years, and was an exceptional win for V2X, representing a culmination over two years of planning and engagement. The majority of the award is not included in our fourth quarter backlog as the contracted being definitive.

As mentioned we are we were recently awarded a long term aviation support and training contract in the Middle East.

The award is valued at approximately $400 million over the next five years.

And with an exceptional win for <unk>, representing a culmination over two years of planning and engagement.

Charles L. Prow: The majority of the award is not included in our fourth quarter backlog as the contracted being definitive.

The majority of an award is not included in our fourth quarter backlog of contracted being definitive.

Charles L. Prow: Our team is currently working on transition-related activity, and expect to have the contract operating at full run rate in the second half, importantly, our evolution as a company has been unable to participate in this market. With this new work the total awarded value of our FMS portfolio is approximately $700 million dollars, with accretive margins across eight countries. Looking ahead, we see a near term pipeline of FMS opportunities, valued at approximately $5 billion dollars, as such, we are continuing to invest in [Indiscernible] opportunities that leverage our geographic footprint, robust partnerships and enhanced capability for V2X getting delivered differentiated cost effective solutions. Please turn to slide seven. Our ability to deliver unique and differentiated solutions is driving momentum in our business that is visible in our leading growth indicators. For example, total backlog at the end of the year was $12.8 billion dollars, up from $12.3 billion dollars last year, and provide solid top line visibility moving into 2024. Is important to note that backlog does not include the full performance period of the previously mentioned FMS win, or a $458 million dollars F-5 Adversary program, as the award remained in protest status. Our pipeline of bids, submitted stands at over $9 billion dollars, a company high and is up substantially from $6 billion dollars last quarter, reflecting the somewhat muted award environment. Our business development engine is geared to support future backlog in revenue expansion with a $15 billion dollars pipeline of opportunity, we expect it to be submitted over the next 12 months. Finally, our visibility is enhanced by the limited recompetes we are facing throughout the year, at the midpoint of our 2024 guidance recompetes comprise less than 5% of our revenue mix. To summarize V2X has leading growth indicators, strong backlog, notable recent awards and limited recompetes provides an excellent foundation and solid visibility moving into 2024. Now I'd like to turn the call over to Sean for a review of the financials, Sean.

Our team is currently working on transition related activity and expect to have the contract operating at full run rate in the second half.

Accordingly, our evolution as a company has been unable to participate in this market.

Charles L. Prow: With this new work the total awarded value of our FMS portfolio is approximately $700 million dollars, with accretive margins across eight countries. Looking ahead, we see a near term pipeline of FMS opportunities, valued at approximately $5 billion dollars, as such, we are continuing to invest in [Indiscernible] opportunities that leverage our geographic footprint, robust partnerships and enhanced capability for V2X getting delivered differentiated cost effective solutions. Please turn to slide seven. Our ability to deliver unique and differentiated solutions is driving momentum in our business that is visible in our leading growth indicators. For example, total backlog at the end of the year was $12.8 billion dollars, up from $12.3 billion dollars last year, and provide solid top line visibility moving into 2024. Is important to note that backlog does not include the full performance period of the previously mentioned FMS win, or a $458 million dollars F-5 Adversary program, as the award remained in protest status. Our pipeline of bids, submitted stands at over $9 billion dollars, a company high and is up substantially from $6 billion dollars last quarter, reflecting the somewhat muted award environment. Our business development engine is geared to support future backlog in revenue expansion with a $15 billion dollars pipeline of opportunity, we expect it to be submitted over the next 12 months. Finally, our visibility is enhanced by the limited recompetes we are facing throughout the year, at the midpoint of our 2024 guidance recompetes comprise less than 5% of our revenue mix. To summarize V2X has leading growth indicators, strong backlog, notable recent awards and limited recompetes provides an excellent foundation and solid visibility moving into 2024. Now I'd like to turn the call over to Sean for a review of the financials, Sean.

Charles L. Prow: With this new work the total awarded value of our FMS portfolio is approximately $700 million dollars, with accretive margins across eight countries.

With this new work at total awarded value of our <unk> portfolio of approximately $700 million.

With accretive margins across eight countries.

Charles L. Prow: Looking ahead, we see a near term pipeline of FMS opportunities, valued at approximately $5 billion dollars, as such, we are continuing to invest in [Indiscernible] opportunities that leverage our geographic footprint, robust partnerships and enhanced capability for V2X getting delivered differentiated cost effective solutions. Please turn to slide seven. Our ability to deliver unique and differentiated solutions is driving momentum in our business that is visible in our leading growth indicators. For example, total backlog at the end of the year was $12.8 billion dollars, up from $12.3 billion dollars last year, and provide solid top line visibility moving into 2024. Is important to note that backlog does not include the full performance period of the previously mentioned FMS win, or a $458 million dollars F-5 Adversary program, as the award remained in protest status. Our pipeline of bids, submitted stands at over $9 billion dollars, a company high and is up substantially from $6 billion dollars last quarter, reflecting the somewhat muted award environment. Our business development engine is geared to support future backlog in revenue expansion with a $15 billion dollars pipeline of opportunity, we expect it to be submitted over the next 12 months. Finally, our visibility is enhanced by the limited recompetes we are facing throughout the year, at the midpoint of our 2024 guidance recompetes comprise less than 5% of our revenue mix. To summarize V2X has leading growth indicators, strong backlog, notable recent awards and limited recompetes provides an excellent foundation and solid visibility moving into 2024. Now I'd like to turn the call over to Sean for a review of the financials, Sean.

Looking ahead, we see a near term pipeline of Fms opportunities valued at approximately $5 billion.

As such we are continuing to invest in pristina opportunities that leverage our geographic footprint.

Robust partnerships and enhanced capability for <unk> can deliver differentiated cost effective solutions.

Charles L. Prow: Please turn to slide seven. Our ability to deliver unique and differentiated solutions is driving momentum in our business that is visible in our leading growth indicators. For example, total backlog at the end of the year was $12.8 billion dollars, up from $12.3 billion dollars last year, and provide solid top line visibility moving into 2024. Is important to note that backlog does not include the full performance period of the previously mentioned FMS win, or a $458 million dollars F-5 Adversary program, as the award remained in protest status. Our pipeline of bids, submitted stands at over $9 billion dollars, a company high and is up substantially from $6 billion dollars last quarter, reflecting the somewhat muted award environment. Our business development engine is geared to support future backlog in revenue expansion with a $15 billion dollars pipeline of opportunity, we expect it to be submitted over the next 12 months. Finally, our visibility is enhanced by the limited recompetes we are facing throughout the year, at the midpoint of our 2024 guidance recompetes comprise less than 5% of our revenue mix. To summarize V2X has leading growth indicators, strong backlog, notable recent awards and limited recompetes provides an excellent foundation and solid visibility moving into 2024. Now I'd like to turn the call over to Sean for a review of the financials, Sean.

Charles L. Prow: Please turn to slide seven. Our ability to deliver unique and differentiated solutions is driving momentum in our business that is visible in our leading growth indicators.

Please turn to slide seven our ability to deliver unique and differentiated solutions is driving momentum in our business that is visible in our leading growth indicators for.

Charles L. Prow: For example, total backlog at the end of the year was $12.8 billion dollars, up from $12.3 billion dollars last year, and provide solid top line visibility moving into 2024. Is important to note that backlog does not include the full performance period of the previously mentioned FMS win, or a $458 million dollars F-5 Adversary program, as the award remained in protest status. Our pipeline of bids, submitted stands at over $9 billion dollars, a company high and is up substantially from $6 billion dollars last quarter, reflecting the somewhat muted award environment. Our business development engine is geared to support future backlog in revenue expansion with a $15 billion dollars pipeline of opportunity, we expect it to be submitted over the next 12 months. Finally, our visibility is enhanced by the limited recompetes we are facing throughout the year, at the midpoint of our 2024 guidance recompetes comprise less than 5% of our revenue mix. To summarize V2X has leading growth indicators, strong backlog, notable recent awards and limited recompetes provides an excellent foundation and solid visibility moving into 2024. Now I'd like to turn the call over to Sean for a review of the financials, Sean.

Charles L. Prow: For example, total backlog at the end of the year was $12.8 billion dollars, up from $12.3 billion dollars last year, and provide solid top line visibility moving into 2024.

For example, total backlog at the end of the year was $12 $8 billion.

Up from $12 $3 billion last year and provide solid top line visibility moving into 2024.

Charles L. Prow: Is important to note that backlog does not include the full performance period of the previously mentioned FMS win, or a $458 million dollars F-5 Adversary program, as the award remained in protest status. Our pipeline of bids, submitted stands at over $9 billion dollars, a company high and is up substantially from $6 billion dollars last quarter, reflecting the somewhat muted award environment. Our business development engine is geared to support future backlog in revenue expansion with a $15 billion dollars pipeline of opportunity, we expect it to be submitted over the next 12 months. Finally, our visibility is enhanced by the limited recompetes we are facing throughout the year, at the midpoint of our 2024 guidance recompetes comprise less than 5% of our revenue mix. To summarize V2X has leading growth indicators, strong backlog, notable recent awards and limited recompetes provides an excellent foundation and solid visibility moving into 2024. Now I'd like to turn the call over to Sean for a review of the financials, Sean.

Important to note that backlog does not include the full performance period of the previously mentioned Fms win.

Or a $458 million <unk> anniversary program.

As the award remained in protest status.

Charles L. Prow: Our pipeline of bids, submitted stands at over $9 billion dollars, a company high and is up substantially from $6 billion dollars last quarter, reflecting the somewhat muted award environment. Our business development engine is geared to support future backlog in revenue expansion with a $15 billion dollars pipeline of opportunity, we expect it to be submitted over the next 12 months. Finally, our visibility is enhanced by the limited recompetes we are facing throughout the year, at the midpoint of our 2024 guidance recompetes comprise less than 5% of our revenue mix. To summarize V2X has leading growth indicators, strong backlog, notable recent awards and limited recompetes provides an excellent foundation and solid visibility moving into 2024. Now I'd like to turn the call over to Sean for a review of the financials, Sean.

Our pipeline of bids submitted stand at over $9 billion company high and is up substantially from $6 million last quarter, reflecting the somewhat muted award environment.

Charles L. Prow: Our business development engine is geared to support future backlog in revenue expansion with a $15 billion dollars pipeline of opportunity, we expect it to be submitted over the next 12 months. Finally, our visibility is enhanced by the limited recompetes we are facing throughout the year, at the midpoint of our 2024 guidance recompetes comprise less than 5% of our revenue mix. To summarize V2X has leading growth indicators, strong backlog, notable recent awards and limited recompetes provides an excellent foundation and solid visibility moving into 2024. Now I'd like to turn the call over to Sean for a review of the financials, Sean.

Our business development engine is geared to support future backlog in revenue expansion with a $15 billion pipeline of opportunity.

We expect it to be submitted over the next 12 months.

Our visibility is enhanced by the limited Recompete, we are facing throughout the year at the midpoint of our 2024 guidance recompete comprise less than 5% of our revenue mix.

Charles L. Prow: Finally, our visibility is enhanced by the limited recompetes we are facing throughout the year, at the midpoint of our 2024 guidance recompetes comprise less than 5% of our revenue mix. To summarize V2X has leading growth indicators, strong backlog, notable recent awards and limited recompetes provides an excellent foundation and solid visibility moving into 2024. Now I'd like to turn the call over to Sean for a review of the financials, Sean.

To summarize <unk>.

Charles L. Prow: To summarize V2X has leading growth indicators, strong backlog, notable recent awards and limited recompetes provides an excellent foundation and solid visibility moving into 2024. Now I'd like to turn the call over to Sean for a review of the financials, Sean.

<unk> is leading growth indicators strong backlog notable recent awards and limited Recompete provides an excellent foundation and solid visibility moving into 2024.

Charles L. Prow: Now I'd like to turn the call over to Shawn for a review of the financials, Shawnn.

Now I'd like to turn the call over to Sean.

A review of the financials Sean.

Shawn Mural: Thanks, Chuck and good morning, everyone. Please turn to slide eight where I'll discuss our fourth quarter financial results. Performance across all metrics was in line or above our expectations for the quarter. Revenue of 1.04 billion in the quarter, representing growth of 6% year over year and exceeded our expectations due to exceptional team performance delivering milestones ahead of schedule expansion on existing programs and new business. <unk> EBITDA in the quarter was $82 $1 million delivering a margin of seven 9%. Adjusted EBITDA and the margin increase sequentially as anticipated. Adjusted diluted EPS was $1 22 up 26% from the prior year. Our growth reflects lower income tax and interest expense, partially offset by higher depreciation and other expenses. Interest expense for the quarter. $28 5 million cash interest expense was $26 3 million. The team delivered strong cash flow performance with adjusted operating cash flow of $75 9 million. Representing a 195% net income conversion. Please turn to slide nine where I'll discuss our full year results. Full year 2023 revenue was $3 96 billion. Increasing 8% on a pro forma basis year over year. Adjusted EBITDA for the full year was $293 9 million or seven 4% margin compared to $278 million on a pro forma basis in the prior year. Adjusted diluted EPS was $3 74. Based on 31 6 million weighted average shares. Interest expense for the year was $122 $4 million cash. Cash interest expense was $113 4 million. Net cash provided by operating activities was $188 million for the year. Adjusted operating cash flow was $159 5 million. Exceeded the upper end of our guidance range with. The strong performance represents 135% adjusted net income conversion and contributed to our record days sales outstanding of 58 days. Please turn to slide 10 to discuss cash and liquidity. As mentioned cash generation was strong. Enabled us to reduce total net debt by $137 1 billion in 2023. We ended the year with $76 million of cash on the balance sheet, excluding $2 million of restricted cash and net debt. It was $1 billion $84 million. Importantly, the net debt to EBITDA leverage ratio was three three times at the end of the year, which improved notably from three seven times at the end of 2022 and approximately four times at merger close.

Shawn Mural: Thanks Chuck, and good morning everyone, please turn to slide eight where I'll discuss our fourth quarter financial results. Performance across all metrics was in line or above our expectations for the quarter. Revenue of $1.04 billion in the quarter, represents growth of 6% year over year and exceeded our expectations due to exceptional team performance delivering milestones ahead of schedule, expansion on existing programs, and new business. Adjusted EBITDA in the quarter was $82.1 million dollars, delivering a margin of 7,9%, adjusted EBITDA and the margin increase sequentially as anticipated. Adjusted diluted EPS was $1.22 up 26% from the prior year, the growth reflects lower income tax and interest expense, partially offset by higher depreciation and other expenses. Interest expense for the quarter was $28.5 million dollars, cash interest expense was $26.3 million dollars. The team delivered strong cash flow performance with adjusted operating cash flow of $75.9 million dollars, representing a 195% net income conversion. Please turn to slide nine where I'll discuss our full year results. Full year 2023 revenue was $3.96 billion, increasing 8% on a pro-forma basis year over year, adjusted EBITDA for the full year was $293.9 million or 7,4% margin compared to $278 million on a pro-forma basis in the prior year. Adjusted diluted EPS was $3.74 based on 31.6 million weighted average shares, interest expense for the year was $122.4 million dollars, cash interest expense was $113.4 million dollars. Net cash provided by operating activities was $188 million dollars for the year, adjusted operating cash flow was $159.5 million dollars, exceeded the upper end of our guidance range. The strong performance represents 135% adjusted net income conversion and contributed to our record days sales outstanding of 58 days. Please turn to slide 10 to discuss cash and liquidity. As mentioned, cash generation was strong and enabled us to reduce total net debt by $137.1 billion dollars in 2023, we ended the year with $7.6 million of cash on the balance sheet, excluding $2 million of restricted cash. Net debt was $1 billion $84 million.

Please turn to slide eight where I'll discuss our fourth quarter financial results.

Performance across all metrics was in line or above our expectations for the quarter.

Revenue of 1.04 billion in the quarter, representing growth of 6% year over year and exceeded our expectations due to exceptional team performance delivering milestones ahead of schedule expansion on existing programs and new business.

Shawn Mural: Revenue of $1.04 billion in the quarter, represents growth of 6% year over year and exceeded our expectations due to exceptional team performance delivering milestones ahead of schedule, expansion on existing programs, and new business. Adjusted EBITDA in the quarter was $82.1 million dollars, delivering a margin of 7,9%, adjusted EBITDA and the margin increase sequentially as anticipated. Adjusted diluted EPS was $1.22 up 26% from the prior year, the growth reflects lower income tax and interest expense, partially offset by higher depreciation and other expenses. Interest expense for the quarter was $28.5 million dollars, cash interest expense was $26.3 million dollars. The team delivered strong cash flow performance with adjusted operating cash flow of $75.9 million dollars, representing a 195% net income conversion. Please turn to slide nine where I'll discuss our full year results. Full year 2023 revenue was $3.96 billion, increasing 8% on a pro-forma basis year over year, adjusted EBITDA for the full year was $293.9 million or 7,4% margin compared to $278 million on a pro-forma basis in the prior year. Adjusted diluted EPS was $3.74 based on 31.6 million weighted average shares, interest expense for the year was $122.4 million dollars, cash interest expense was $113.4 million dollars. Net cash provided by operating activities was $188 million dollars for the year, adjusted operating cash flow was $159.5 million dollars, exceeded the upper end of our guidance range. The strong performance represents 135% adjusted net income conversion and contributed to our record days sales outstanding of 58 days. Please turn to slide 10 to discuss cash and liquidity. As mentioned, cash generation was strong and enabled us to reduce total net debt by $137.1 billion dollars in 2023, we ended the year with $7.6 million of cash on the balance sheet, excluding $2 million of restricted cash. Net debt was $1 billion $84 million.

<unk> EBITDA in the quarter was $82 $1 million delivering a margin of seven 9%.

Shawn Mural: Adjusted EBITDA in the quarter was $82.1 million dollars, delivering a margin of 7,9%, adjusted EBITDA and the margin increase sequentially as anticipated. Adjusted diluted EPS was $1.22 up 26% from the prior year, the growth reflects lower income tax and interest expense, partially offset by higher depreciation and other expenses. Interest expense for the quarter was $28.5 million dollars, cash interest expense was $26.3 million dollars. The team delivered strong cash flow performance with adjusted operating cash flow of $75.9 million dollars, representing a 195% net income conversion. Please turn to slide nine where I'll discuss our full year results. Full year 2023 revenue was $3.96 billion, increasing 8% on a pro-forma basis year over year, adjusted EBITDA for the full year was $293.9 million or 7,4% margin compared to $278 million on a pro-forma basis in the prior year. Adjusted diluted EPS was $3.74 based on 31.6 million weighted average shares, interest expense for the year was $122.4 million dollars, cash interest expense was $113.4 million dollars. Net cash provided by operating activities was $188 million dollars for the year, adjusted operating cash flow was $159.5 million dollars, exceeded the upper end of our guidance range. The strong performance represents 135% adjusted net income conversion and contributed to our record days sales outstanding of 58 days. Please turn to slide 10 to discuss cash and liquidity. As mentioned, cash generation was strong and enabled us to reduce total net debt by $137.1 billion dollars in 2023, we ended the year with $7.6 million of cash on the balance sheet, excluding $2 million of restricted cash. Net debt was $1 billion $84 million.

Shawn Mural: Adjusted EBITDA in the quarter was $82.1 million dollars, delivering a margin of 7,9%, adjusted EBITDA and the margin increase sequentially as anticipated.

Adjusted EBITDA and the margin increase sequentially as anticipated.

Adjusted diluted EPS was $1 22 up 26% from the prior year.

Shawn Mural: Adjusted diluted EPS was $1.22 up 26% from the prior year, the growth reflects lower income tax and interest expense, partially offset by higher depreciation and other expenses. Interest expense for the quarter was $28.5 million dollars, cash interest expense was $26.3 million dollars. The team delivered strong cash flow performance with adjusted operating cash flow of $75.9 million dollars, representing a 195% net income conversion. Please turn to slide nine where I'll discuss our full year results. Full year 2023 revenue was $3.96 billion, increasing 8% on a pro-forma basis year over year, adjusted EBITDA for the full year was $293.9 million or 7,4% margin compared to $278 million on a pro-forma basis in the prior year. Adjusted diluted EPS was $3.74 based on 31.6 million weighted average shares, interest expense for the year was $122.4 million dollars, cash interest expense was $113.4 million dollars. Net cash provided by operating activities was $188 million dollars for the year, adjusted operating cash flow was $159.5 million dollars, exceeded the upper end of our guidance range. The strong performance represents 135% adjusted net income conversion and contributed to our record days sales outstanding of 58 days. Please turn to slide 10 to discuss cash and liquidity. As mentioned, cash generation was strong and enabled us to reduce total net debt by $137.1 billion dollars in 2023, we ended the year with $7.6 million of cash on the balance sheet, excluding $2 million of restricted cash. Net debt was $1 billion $84 million.

Our growth reflects lower income tax and interest expense, partially offset by higher depreciation and other expenses.

Interest expense for the quarter.

$28 5 million cash interest expense was $26 3 million.

The team delivered strong cash flow performance with adjusted operating cash flow of $75 9 million.

Shawn Mural: The team delivered strong cash flow performance with adjusted operating cash flow of $75.9 million dollars, representing a 195% net income conversion. Please turn to slide nine where I'll discuss our full year results. Full year 2023 revenue was $3.96 billion, increasing 8% on a pro-forma basis year over year, adjusted EBITDA for the full year was $293.9 million or 7,4% margin compared to $278 million on a pro-forma basis in the prior year. Adjusted diluted EPS was $3.74 based on 31.6 million weighted average shares, interest expense for the year was $122.4 million dollars, cash interest expense was $113.4 million dollars. Net cash provided by operating activities was $188 million dollars for the year, adjusted operating cash flow was $159.5 million dollars, exceeded the upper end of our guidance range. The strong performance represents 135% adjusted net income conversion and contributed to our record days sales outstanding of 58 days. Please turn to slide 10 to discuss cash and liquidity. As mentioned, cash generation was strong and enabled us to reduce total net debt by $137.1 billion dollars in 2023, we ended the year with $7.6 million of cash on the balance sheet, excluding $2 million of restricted cash. Net debt was $1 billion $84 million.

Shawn Mural: The team delivered strong cash flow performance with adjusted operating cash flow of $75.9 million dollars, representing a 195% net income conversion.

Representing a 195% net income conversion.

Please turn to slide nine where I'll discuss our full year results.

Shawn Mural: Please turn to slide nine where I'll discuss our full year results. Full year 2023 revenue was $3.96 billion, increasing 8% on a pro-forma basis year over year, adjusted EBITDA for the full year was $293.9 million or 7,4% margin compared to $278 million on a pro-forma basis in the prior year. Adjusted diluted EPS was $3.74 based on 31.6 million weighted average shares, interest expense for the year was $122.4 million dollars, cash interest expense was $113.4 million dollars. Net cash provided by operating activities was $188 million dollars for the year, adjusted operating cash flow was $159.5 million dollars, exceeded the upper end of our guidance range. The strong performance represents 135% adjusted net income conversion and contributed to our record days sales outstanding of 58 days. Please turn to slide 10 to discuss cash and liquidity. As mentioned, cash generation was strong and enabled us to reduce total net debt by $137.1 billion dollars in 2023, we ended the year with $7.6 million of cash on the balance sheet, excluding $2 million of restricted cash. Net debt was $1 billion $84 million.

Full year 2023 revenue was $3 96 billion.

Increasing 8% on a pro forma basis year over year.

Adjusted EBITDA for the full year was $293 9 million or seven 4% margin compared to $278 million on a pro forma basis in the prior year.

Adjusted diluted EPS was $3 74.

Shawn Mural: Adjusted diluted EPS was $3.74 based on 31.6 million weighted average shares, interest expense for the year was $122.4 million dollars, cash interest expense was $113.4 million dollars. Net cash provided by operating activities was $188 million dollars for the year, adjusted operating cash flow was $159.5 million dollars, exceeded the upper end of our guidance range. The strong performance represents 135% adjusted net income conversion and contributed to our record days sales outstanding of 58 days. Please turn to slide 10 to discuss cash and liquidity. As mentioned, cash generation was strong and enabled us to reduce total net debt by $137.1 billion dollars in 2023, we ended the year with $7.6 million of cash on the balance sheet, excluding $2 million of restricted cash. Net debt was $1 billion $84 million.

Based on 31 6 million weighted average shares.

Interest expense for the year was $122 $4 million cash.

Cash interest expense was $113 4 million.

Shawn Mural: Net cash provided by operating activities was $188 million dollars for the year, adjusted operating cash flow was $159.5 million dollars, exceeded the upper end of our guidance range. The strong performance represents 135% adjusted net income conversion and contributed to our record days sales outstanding of 58 days. Please turn to slide 10 to discuss cash and liquidity. As mentioned, cash generation was strong and enabled us to reduce total net debt by $137.1 billion dollars in 2023, we ended the year with $7.6 million of cash on the balance sheet, excluding $2 million of restricted cash. Net debt was $1 billion $84 million.

Net cash provided by operating activities was $188 million for the year.

Adjusted operating cash flow was $159 5 million.

Shawn Mural: The strong performance represents 135% adjusted net income conversion and contributed to our record days sales outstanding of 58 days. Please turn to slide 10 to discuss cash and liquidity. As mentioned, cash generation was strong and enabled us to reduce total net debt by $137.1 billion dollars in 2023, we ended the year with $7.6 million of cash on the balance sheet, excluding $2 million of restricted cash. Net debt was $1 billion $84 million.

Shawn Mural: The strong performance represents 135% adjusted net income conversion and contributed to our record days sales outstanding of 58 days.

Exceeded the upper end of our guidance range with.

The strong performance represents 135% adjusted net income conversion and contributed to our record days sales outstanding of 58 days.

Shawn Mural: Please turn to slide 10 to discuss cash and liquidity. As mentioned, cash generation was strong and enabled us to reduce total net debt by $137.1 billion dollars in 2023, we ended the year with $7.6 million of cash on the balance sheet, excluding $2 million of restricted cash. Net debt was $1 billion $84 million.

Please turn to slide 10 to discuss cash and liquidity.

As mentioned cash generation was strong.

Enabled us to reduce total net debt by $137 1 billion in 2023.

We ended the year with $76 million of cash on the balance sheet, excluding $2 million of restricted cash and net debt.

Shawn Mural: Importantly, the net debt to EBITDA leverage ratio was 3.3 times at the end of the year, which improved notably from 3.7 times at the end of 2022 and approximately four times at merger close. We believe the free cash flow generated by our business supports our ability to continue to delever and achieve a net leverage ratio at or below three times by the end of 2024. The company's balance sheet and liquidity position remains strong, with over $550 million in capacity, which includes approximately $482 million of availability on our revolver. Please turn to slide 11, we are establishing 2024 guidance as follows. Revenue is expected to be $4.1 to $4.2 billion dollars, representing 5% growth at the midpoint. Importantly, guidance at the midpoint assumes approximately 90% of revenue from existing contracts and less than 5% from recompetes. Adjusted EBITDA is estimated at $300 to $315 million dollars, representing 5% growth at the midpoint, adjusted diluted earnings per share guidance, $3.85 to $4.20, representing 8% growth at the midpoint. Regarding the cadence we expect throughout the year, revenue and adjusted EBITDA will ramp sequentially, this reflects the phasing of new business and the previously discussed wind down and completion of the KC-10, and T-1A programs. We expect adjusted net cash, provided by operating activities to be $145 to $165 million dollars, in terms of cadence, cash flow should be in line with our normal seasonal pattern with cash generation occurring in the second half of the year. Cash interest and other expense is expected to be approximately $116 million dollars, capital expenditures for the year are estimated to be approximately $30 million dollars and will be first half weighted. Now I'd like to turn the call back over to Chuck.

It was $1 billion $84 million.

Importantly, the net debt to EBITDA leverage ratio was three three times at the end of the year, which improved notably from three seven times at the end of 2022 and approximately four times at merger close.

Shawn Mural: We believe the free cash flow generated by our business supports our ability to continue to delever and achieve a net leverage ratio at or below three times by the end of 2024. The company's balance sheet and liquidity position remains strong, with over $550 million in capacity, which includes approximately $482 million of availability on our revolver. Please turn to slide 11, we are establishing 2024 guidance as follows. Revenue is expected to be $4.1 to $4.2 billion dollars, representing 5% growth at the midpoint. Importantly, guidance at the midpoint assumes approximately 90% of revenue from existing contracts and less than 5% from recompetes. Adjusted EBITDA is estimated at $300 to $315 million dollars, representing 5% growth at the midpoint, adjusted diluted earnings per share guidance, $3.85 to $4.20, representing 8% growth at the midpoint. Regarding the cadence we expect throughout the year, revenue and adjusted EBITDA will ramp sequentially, this reflects the phasing of new business and the previously discussed wind down and completion of the KC-10, and T-1A programs. We expect adjusted net cash, provided by operating activities to be $145 to $165 million dollars, in terms of cadence, cash flow should be in line with our normal seasonal pattern with cash generation occurring in the second half of the year. Cash interest and other expense is expected to be approximately $116 million dollars, capital expenditures for the year are estimated to be approximately $30 million dollars and will be first half weighted. Now I'd like to turn the call back over to Chuck.

Shawn Mural: We believe the free cash flow generated by our business supports our ability to continue to delever and achieve a net leverage ratio at or below three times by the end of 2024.

We believe the free cash flow generated by our business supports our ability to continue to delever and achieve a net leverage ratio at or below three times by the end of 2024.

The company's balance sheet and liquidity position remains strong with over $550 million in capacity, which includes approximately $482 million of availability on our revolver.

Shawn Mural: The company's balance sheet and liquidity position remains strong, with over $550 million in capacity, which includes approximately $482 million of availability on our revolver. Please turn to slide 11, we are establishing 2024 guidance as follows. Revenue is expected to be $4.1 to $4.2 billion dollars, representing 5% growth at the midpoint. Importantly, guidance at the midpoint assumes approximately 90% of revenue from existing contracts and less than 5% from recompetes. Adjusted EBITDA is estimated at $300 to $315 million dollars, representing 5% growth at the midpoint, adjusted diluted earnings per share guidance, $3.85 to $4.20, representing 8% growth at the midpoint. Regarding the cadence we expect throughout the year, revenue and adjusted EBITDA will ramp sequentially, this reflects the phasing of new business and the previously discussed wind down and completion of the KC-10, and T-1A programs. We expect adjusted net cash, provided by operating activities to be $145 to $165 million dollars, in terms of cadence, cash flow should be in line with our normal seasonal pattern with cash generation occurring in the second half of the year. Cash interest and other expense is expected to be approximately $116 million dollars, capital expenditures for the year are estimated to be approximately $30 million dollars and will be first half weighted. Now I'd like to turn the call back over to Chuck.

Shawn Mural: The company's balance sheet and liquidity position remains strong, with over $550 million in capacity, which includes approximately $482 million of availability on our revolver.

Shawn Mural: Please turn to slide 11, we are establishing 2024 guidance as follows. Revenue is expected to be $4.1 to $4.2 billion dollars, representing 5% growth at the midpoint. Importantly, guidance at the midpoint assumes approximately 90% of revenue from existing contracts and less than 5% from recompetes. Adjusted EBITDA is estimated at $300 to $315 million dollars, representing 5% growth at the midpoint, adjusted diluted earnings per share guidance, $3.85 to $4.20, representing 8% growth at the midpoint. Regarding the cadence we expect throughout the year, revenue and adjusted EBITDA will ramp sequentially, this reflects the phasing of new business and the previously discussed wind down and completion of the KC-10, and T-1A programs. We expect adjusted net cash, provided by operating activities to be $145 to $165 million dollars, in terms of cadence, cash flow should be in line with our normal seasonal pattern with cash generation occurring in the second half of the year. Cash interest and other expense is expected to be approximately $116 million dollars, capital expenditures for the year are estimated to be approximately $30 million dollars and will be first half weighted. Now I'd like to turn the call back over to Chuck.

Shawn Mural: Please turn to slide 11, we are establishing 2024 guidance as follows. Revenue is expected to be $4.1 to $4.2 billion dollars, representing 5% growth at the midpoint.

Please turn to slide 11.

We are establishing 2024 guidance as follows revenue.

Revenue is expected to be $4, one to $4 2 billion.

Representing 5% growth at the midpoint.

Shawn Mural: Importantly, guidance at the midpoint assumes approximately 90% of revenue from existing contracts and less than 5% from recompetes. Adjusted EBITDA is estimated at $300 to $315 million dollars, representing 5% growth at the midpoint, adjusted diluted earnings per share guidance, $3.85 to $4.20, representing 8% growth at the midpoint. Regarding the cadence we expect throughout the year, revenue and adjusted EBITDA will ramp sequentially, this reflects the phasing of new business and the previously discussed wind down and completion of the KC-10, and T-1A programs. We expect adjusted net cash, provided by operating activities to be $145 to $165 million dollars, in terms of cadence, cash flow should be in line with our normal seasonal pattern with cash generation occurring in the second half of the year. Cash interest and other expense is expected to be approximately $116 million dollars, capital expenditures for the year are estimated to be approximately $30 million dollars and will be first half weighted. Now I'd like to turn the call back over to Chuck.

Shawn Mural: Importantly, guidance at the midpoint assumes approximately 90% of revenue from existing contracts and less than 5% from recompetes.

Importantly guidance at the midpoint assumes approximately 90% of revenue from existing contracts and less than 5% from re competes.

Shawn Mural: Adjusted EBITDA is estimated at $300 to $315 million dollars, representing 5% growth at the midpoint, adjusted diluted earnings per share guidance, $3.85 to $4.20, representing 8% growth at the midpoint. Regarding the cadence we expect throughout the year, revenue and adjusted EBITDA will ramp sequentially, this reflects the phasing of new business and the previously discussed wind down and completion of the KC-10, and T-1A programs. We expect adjusted net cash, provided by operating activities to be $145 to $165 million dollars, in terms of cadence, cash flow should be in line with our normal seasonal pattern with cash generation occurring in the second half of the year. Cash interest and other expense is expected to be approximately $116 million dollars, capital expenditures for the year are estimated to be approximately $30 million dollars and will be first half weighted. Now I'd like to turn the call back over to Chuck.

Adjusted EBITDA is estimated at $300 million to $315 million.

Representing 5% growth at the midpoint.

Adjusted diluted earnings per share guidance, $3 85 to $4 20.

Shawn Mural: Regarding the cadence we expect throughout the year, revenue and adjusted EBITDA will ramp sequentially, this reflects the phasing of new business and the previously discussed wind down and completion of the KC-10, and T-1A programs. We expect adjusted net cash, provided by operating activities to be $145 to $165 million dollars, in terms of cadence, cash flow should be in line with our normal seasonal pattern with cash generation occurring in the second half of the year. Cash interest and other expense is expected to be approximately $116 million dollars, capital expenditures for the year are estimated to be approximately $30 million dollars and will be first half weighted. Now I'd like to turn the call back over to Chuck.

Representing 8% growth at the midpoint.

Regarding the cadence we expect throughout the year.

Revenue and adjusted EBITDA will ramp sequentially.

This reflects the phasing of new business and the previously discussed wind down and completion of the KC 10, and <unk> programs.

Shawn Mural: We expect adjusted net cash, provided by operating activities to be $145 to $165 million dollars, in terms of cadence, cash flow should be in line with our normal seasonal pattern with cash generation occurring in the second half of the year. Cash interest and other expense is expected to be approximately $116 million dollars, capital expenditures for the year are estimated to be approximately $30 million dollars and will be first half weighted. Now I'd like to turn the call back over to Chuck.

We expect adjusted net cash provided by operating activities to be $145 million to $165 million.

In terms of cadence cash flow should be in line with our normal seasonal pattern with cash generation occurring in the second half of the year.

Shawn Mural: Cash interest and other expense is expected to be approximately $116 million dollars, capital expenditures for the year are estimated to be approximately $30 million dollars and will be first half weighted. Now I'd like to turn the call back over to Chuck.

Cash interest and other expense is expected to be approximately $116 million.

Capital expenditures for the year are estimated to be approximately $30 million and will be first half weighted.

Shawn Mural: Now I'd like to turn the call back over to Chuck.

Now I'd like to turn the call back over to Chuck.

Charles L. Prow: Thanks Shawn, please turn to slide 12. V2X remains focused on creating value for shareholders, the core components by which we plan to achieve this includes, one continued focus on generating top line revenue growth to backlog conversion on contract growth and execution of our robust pipeline into new awards in our core markets. Two, increasing profit via revenue growth and operating leverage as well as margin improvement through program performance technology insertion and campaigns. Three, continued strong conversion of profit into operating cash flow with disciplined working capital management and low capital intensity. And four, utilizing our high reoccurring cash flow to strengthen our balance sheet and further reduce interest expense and net debt. In conclusion, V2X continues to transform to deliver enhanced capabilities and expanding market, we have strong momentum, robust backlog, highly aligned pipeline, limited recompete and high free cash generation that provides an excellent fundamental profile to support value creation in 2024. Now I'd like to turn the call open to questions, operator.

Charles L. Prow: Thanks Shawn, please turn to slide 12. V2X remains focused on creating value for shareholders, the core components by which we plan to achieve this includes. One continued focus on generating top line revenue growth to backlog conversion on contract growth and execution of our robust pipeline into new awards in our core markets.

Charles L. Prow: Thanks Shawn, please turn to slide 12. V2X remains focused on creating value for shareholders, the core components by which we plan to achieve this includes.

<unk> remained focused on creating value for shareholders.

The core components by which we plan to achieve this include.

One continued focus on generating top line revenue growth to backlog conversion on.

Charles L. Prow: One continued focus on generating top line revenue growth to backlog conversion on contract growth and execution of our robust pipeline into new awards in our core markets.

On contract growth and execution of our robust pipeline into new awards in our core markets.

Two increasing profit via revenue growth and operating leverage as well as margin improvement through probably a performance technology insertion and campaign.

Charles L. Prow: Two, increasing profit via revenue growth and operating leverage as well as margin improvement through program performance technology insertion and campaigns. Three, continued strong conversion of profit into operating cash flow with disciplined working capital management and low capital intensity. And four, utilizing our high reoccurring cash flow to strengthen our balance sheet and further reduce interest expense and net debt. In conclusion, V2X continues to transform to deliver enhanced capabilities and expanding market, we have strong momentum, robust backlog, highly aligned pipeline, limited recompete and high free cash generation that provides an excellent fundamental profile to support value creation in 2024. Now I'd like to turn the call open to questions, operator.

Charles L. Prow: Two, increasing profit via revenue growth and operating leverage as well as margin improvement through program performance technology insertion and campaigns.

Three continued strong conversion of profit into operating cash flow with disciplined working capital management and low capital intensity.

Charles L. Prow: Three, continued strong conversion of profit into operating cash flow with disciplined working capital management and low capital intensity. And four, utilizing our high reoccurring cash flow to strengthen our balance sheet and further reduce interest expense and net debt. In conclusion, V2X continues to transform to deliver enhanced capabilities and expanding market, we have strong momentum, robust backlog, highly aligned pipeline, limited recompete and high free cash generation that provides an excellent fundamental profile to support value creation in 2024. Now I'd like to turn the call open to questions, operator.

Charles L. Prow: Three, continued strong conversion of profit into operating cash flow with disciplined working capital management and low capital intensity.

And for utilizing our high reoccurring cash flow to strengthen our balance sheet and further reduce interest expense and net debt.

Charles L. Prow: And four, utilizing our high reoccurring cash flow to strengthen our balance sheet and further reduce interest expense and net debt. In conclusion, V2X continues to transform to deliver enhanced capabilities and expanding market, we have strong momentum, robust backlog, highly aligned pipeline, limited recompete and high free cash generation that provides an excellent fundamental profile to support value creation in 2024. Now I'd like to turn the call open to questions, operator.

Charles L. Prow: And four, utilizing our high reoccurring cash flow to strengthen our balance sheet and further reduce interest expense and net debt.

In conclusion, <unk> continues to transform to deliver enhanced capabilities and expanding market.

Charles L. Prow: In conclusion, V2X continues to transform to deliver enhanced capabilities and expanding market, we have strong momentum, robust backlog, highly aligned pipeline, limited recompete and high free cash generation that provides an excellent fundamental profile to support value creation in 2024. Now I'd like to turn the call open to questions, operator.

Strong momentum robust backlog highly aligned pipeline limited recompete and high free cash generation that provides an excellent fundamental profile to support value creation in 2024, now I'd like to turn the call open to questions operator.

Charles L. Prow: Now I'd like to turn the call open to questions, operator.

Operator: Thank you we will now be conducting a question and answer session. If you'd like to ask a question please press star one on your telephone keypad, a confirmation tone will indicate that your line is in the question queue, you may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment please, while we poll for questions. Our first question comes from Tobey Sommer with Truist Securities, please proceed with your question.

Operator: Thank you we will now be conducting a question and answer session.

Operator: If you'd like to ask a question please press star one on your telephone keypad, a confirmation tone will indicate that your line is in the question queue, you may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment please, while we poll for questions. Our first question comes from Tobey Sommer with Truist Securities, please proceed with your question.

For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys.

Operator: For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment please, while we poll for questions. Our first question comes from Tobey Sommer with Truist Securities, please proceed with your question.

Operator: For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment please, while we poll for questions.

One moment, please while we poll for question.

Our first question comes from Tobey Sommer with Truth Securities. Please proceed with your question.

Operator: Our first question comes from Tobey Sommer with Truist Securities, please proceed with your question.

Tobey Sommer: Tobey are you there. Yes, I am.

Tobey Sommer: Tobey are you there. Yes, I am. Can you hear me. Hey, Tobey Yeah, again, now that would be how are you. Could you provide some incremental color on the Fms pipeline, including geographic breadth. And sort of describing new work versus takeaways from traditional competitors. Thanks.

Operator: Tobey are you there.

Tobey Sommer: Yes, I am. Can you hear me. Hey, Tobey Yeah, again, now that would be how are you. Could you provide some incremental color on the Fms pipeline, including geographic breadth. And sort of describing new work versus takeaways from traditional competitors. Thanks.

Tobey Sommer: Yes, I am. Can you hear me?

Tobey Sommer: Yes, I am.

Tobey Sommer: Can you hear me. Hey, Tobey Yeah, again, now that would be how are you. Could you provide some incremental color on the Fms pipeline, including geographic breadth. And sort of describing new work versus takeaways from traditional competitors. Thanks.

Tobey Sommer: Can you hear me.

Yes, I am.

Can you hear me.

Tobey Sommer: Hey, Tobey Yeah, again, now that would be how are you. Could you provide some incremental color on the Fms pipeline, including geographic breadth. And sort of describing new work versus takeaways from traditional competitors. Thanks.

Multiple: [Inaudible]

Hey, Tobey Yeah, again, now that would be how are you.

Tobey Sommer: Could you provide some incremental color on the FMS pipeline, including geographic breadth and sort of describing new work versus takeaways from traditional competitors? Thanks.

Could you provide some incremental color on the Fms pipeline, including geographic breadth.

And sort of describing new work versus takeaways from traditional competitors. Thanks.

Sure, we, in general the name [Inaudible], majority of our FMS pipeline is in CENTCOM, and INDOPACOM, and to a much lesser degree I would say Eastern Europe. The most recent activity that we announced, and I'm sorry I can't give all the specifics yet, it was actually a new requirement, is something that was not being done before by another provider. It is aerospace O&M and I will tell you that it is a combination of rotary wing maintenance as well as facility maintenance, the remainder of the pipeline is really balanced between aerospace O&M as well as logistics/operations management. And it's a good question, I would just, judging from memory here I would say we're probably about half takeaway and half net new requirement in that FMS pipeline. Thank you. Could you describe the timing of the wind down of <unk>. <unk>. In contracts that we have some airframe is being retired just thinking about. From a modeling perspective. When the. Sort of most significant headwind to growth. Yes, I would say. And Sean we feel free to chime in here. So this will be. The final year of the wind down for both the KC 10, and the <unk>. <unk>. It's relatively balanced throughout the year. As we indicated we will see sequential growth too. To make up for that wind down so I would say. Earlier weighted in the year, but extending but extending through the full year, Sean anything to add no exactly thanks Chuck. Yes, we will grow sequentially throughout the year Tobey. Yes, I would say, it's first half weighted meaning some of those headwinds as things wind down again as we as we said an unexpected. Okay. A question we get from investors. Piece breaks out which the news. Doesn't seem to convey is likely in terms of the near term. Does the company have activities that would see it. And if so how much revenue is exposed. Okay. I would say. Pes were to break out I. I guess, we can operate for that I suppose but. And large. <unk> mission that we're maintaining.

Charles L. Prow: Sure, we, in general the name [Inaudible], majority of our FMS pipeline is in CENTCOM, and INDOPACOM, and to a much lesser degree I would say Eastern Europe. The most recent activity that we announced, and I'm sorry I can't give all the specifics yet, it was actually a new requirement, is something that was not being done before by another provider. It is aerospace O&M and I will tell you that it is a combination of rotary wing maintenance as well as facility maintenance, the remainder of the pipeline is really balanced between aerospace O&M as well as logistics/operations management. And it's a good question, I would just, judging from memory here I would say we're probably about half takeaway and half net new requirement in that FMS pipeline.

Charles L. Prow: Sure, we, in general the name [Inaudible], majority of our FMS pipeline is in CENTCOM, and INDOPACOM, and to a much lesser degree I would say Eastern Europe.

In general the name of <unk>.

Majority of our Fms pipeline.

In.

Incent com.

And <unk> and to a much lesser degree I would say eastern Europe.

Charles L. Prow: The most recent activity that we announced, and I'm sorry I can't give all the specifics yet, it was actually a new requirement, is something that was not being done before by another provider. It is aerospace O&M and I will tell you that it is a combination of rotary wing maintenance as well as facility maintenance, the remainder of the pipeline is really balanced between aerospace O&M as well as logistics/operations management. And it's a good question, I would just, judging from memory here I would say we're probably about half takeaway and half net new requirement in that FMS pipeline.

The most recent activity that we announced and I'm sorry, I can't.

You have all the specifics yet.

It was actually a new requirement is something that was not being done before by another provider.

Charles L. Prow: It is aerospace O&M and I will tell you that it is a combination of rotary wing maintenance as well as facility maintenance, the remainder of the pipeline is really balanced between aerospace O&M as well as logistics/operations management. And it's a good question, I would just, judging from memory here I would say we're probably about half takeaway and half net new requirement in that FMS pipeline.

It is aerospace O&M minute I will tell you that it is a combination of rotary wing maintenance as well as facility maintenance.

The remainder of the pipeline is really balance between.

Aerospace O&M as well as logistics slash operations management.

Charles L. Prow: And it's a good question, I would just, judging from memory here I would say we're probably about half takeaway and half net new requirement in that FMS pipeline.

Okay.

It's a good question I would just judging from.

Memory here I would say, we're probably about half takeaway and half net new requirement and that Fms pipeline.

Thank you. Could you describe the timing of the wind down of projects in contracts that we have some airframes being retired. Just thinking about, from a modeling perspective when the sort of most significant headwind to growth. Yes, I would say, and Sean we feel free to chime in here. So this will be. The final year of the wind down for both the KC 10, and the <unk>. <unk>. It's relatively balanced throughout the year. As we indicated we will see sequential growth too. To make up for that wind down so I would say. Earlier weighted in the year, but extending but extending through the full year, Sean anything to add no exactly thanks Chuck. Yes, we will grow sequentially throughout the year Tobey. Yes, I would say, it's first half weighted meaning some of those headwinds as things wind down again as we as we said an unexpected. Okay. A question we get from investors. Piece breaks out which the news. Doesn't seem to convey is likely in terms of the near term. Does the company have activities that would see it. And if so how much revenue is exposed. Okay. I would say. Pes were to break out I. I guess, we can operate for that I suppose but. And large. <unk> mission that we're maintaining.

Tobey Sommer: Thank you. Could you describe the timing of the wind down of projects in contracts that we have some airframes being retired. Just thinking about, from a modeling perspective when the sort of most significant headwind to growth.

Thank you.

Could you describe the timing of the wind down of <unk>.

<unk>.

In contracts that we have some airframe is being retired just thinking about.

From a modeling perspective.

Charles L. Prow: Yes, I would say, and Shawn we feel free to chime in here. So this will be the final year of the wind down for both the KC-10, and the T-1A, it's relatively balanced throughout the year, as we indicated we will see sequential growth to make up for that wind down so I would say a bit earlier weighted in the year, but extending through the full year. Sean anything to add? no exactly thanks Chuck. Yes, we will grow sequentially throughout the year Tobey. Yes, I would say, it's first half weighted meaning some of those headwinds as things wind down again as we as we said an unexpected. Okay. A question we get from investors. Piece breaks out which the news. Doesn't seem to convey is likely in terms of the near term. Does the company have activities that would see it. And if so how much revenue is exposed. Okay. I would say. Pes were to break out I. I guess, we can operate for that I suppose but. And large. <unk> mission that we're maintaining.

Charles L. Prow: Yes, I would say, and Shawn we feel free to chime in here.

When the.

Sort of most significant headwind to growth.

Charles L. Prow: So this will be the final year of the wind down for both the KC-10, and the T-1A, it's relatively balanced throughout the year, as we indicated we will see sequential growth to make up for that wind down so I would say a bit earlier weighted in the year, but extending through the full year. Shawn anything to add?

Yes, I would say.

And Sean we feel free to chime in here. So this will be.

The final year of the wind down for both the KC 10, and the <unk>.

<unk>.

It's relatively balanced throughout the year.

As we indicated we will see sequential growth too.

To make up for that wind down so I would say.

Earlier weighted in the year, but extending but extending through the full year, Sean anything to add no exactly thanks Chuck.

Shawn Mural: No exactly, thanks Chuck. Yes, we will grow sequentially throughout the year Tobey and I would say, it's first half weighted meaning some of those headwinds as things wind down again as we said unexpected. Okay. A question we get from investors. Piece breaks out which the news. Doesn't seem to convey is likely in terms of the near term. Does the company have activities that would see it. And if so how much revenue is exposed. Okay. I would say. Pes were to break out I. I guess, we can operate for that I suppose but. And large. <unk> mission that we're maintaining.

Yes, we will grow sequentially throughout the year Tobey.

Yes, I would say, it's first half weighted meaning some of those headwinds as things wind down again as we as we said an unexpected.

Shawn Mural: Okay, a question we get from investors, if a piece breaks out, which the [Inaudible] doesn't seem to convey, is likely any time in the near term. Does the company have activities that would fix, and if so, how much revenue is exposed? Okay. I would say. Pes were to break out I. I guess, we can operate for that I suppose but. And large. <unk> mission that we're maintaining.

Tobey Sommer: Okay, a question we get from investors, if a piece breaks out, which the [Inaudible] doesn't seem to convey, is likely any time in the near term. Does the company have activities that would fix, and if so, how much revenue is exposed?

Okay.

A question we get from investors.

Piece breaks out which the news.

Doesn't seem to convey is likely in terms of the near term.

Does the company have activities that would see it.

And if so how much revenue is exposed.

Okay.

Shawn Mural: Okay, I would say if a piece were to break out that's, I guess we can operate for that I suppose, but by and large, the missions that we're maintaining, well I would largely if not entirely continue. You always have risk like we saw in Afghanistan, a couple of years ago if we were to pull out of our country, we have no indications of that. We often talk about on these calls and when we talk to you and other analysts and investors about uptempo, and today we do have a tailwind, with regards to both revenue and profit generation just because of the rate and pace of activities in both CENTCOM or Eastern Europe, and as you saw in the reported results and INDOPACOM, a lot of activity in INDOPACOM. As we mentioned in the prepared remarks Toby, we actually had higher revenue in the second half of the year in INDOPACOM, although the first half of the year is where the exercise actually occurred. So kind of a long winded answer to your question, but as the military infrastructure continued to age, as the airframes and ground vehicles continue to age, that actually creates more requirements for V2X. Thanks, and just quickly could you. To elaborate on. The GMI 1000 opportunity, including comments on the sort of size and scope of that thank you very much. Okay. <unk> 1000 and represents as a as a new suite of capabilities that are. Really taking hold post the merger we believed that. The untethering of the Indianapolis facility. When it was acquired by vertex and ultimately now part of <unk> will create opportunity because of the. The organizational conflict of interest of being owned by a prime contractor going away. We are in fact seeing that. And this whole suite of engineered solutions GMI 1000, being one is our is our really great engineers and capabilities in Indianapolis. Working with both new and existing platforms in this case the router. And hardening those capabilities in such a way that they can be used for. New and innovative military missions. So it's. As we've mentioned in the prepared remarks this is actually. Sole source bid, we don't know whether or not we've won yet. But the what. But the traction of the GMI 1000, and other engineered solutions is actually progressing very very nicely. Thank you.

Charles L. Prow: Okay, I would say if a piece were to break out that's, I guess we can operate for that I suppose, but by and large, the missions that we're maintaining, well I would largely if not entirely continue. You always have risk like we saw in Afghanistan, a couple of years ago if we were to pull out of our country, we have no indications of that. We often talk about on these calls and when we talk to you and other analysts and investors about uptempo, and today we do have a tailwind, with regards to both revenue and profit generation just because of the rate and pace of activities in both CENTCOM or Eastern Europe, and as you saw in the reported results and INDOPACOM, a lot of activity in INDOPACOM. As we mentioned in the prepared remarks Toby, we actually had higher revenue in the second half of the year in INDOPACOM, although the first half of the year is where the exercise actually occurred. So kind of a long winded answer to your question, but as the military infrastructure continued to age, as the airframes and ground vehicles continue to age, that actually creates more requirements for V2X.

I would say.

Pes were to break out I.

I guess, we can operate for that I suppose but.

And large.

<unk> mission that we're maintaining.

Well I was largely if not. Entirely continue okay. You always have risk like we saw. In Afghanistan, a couple of years ago, if we were to pull out of our country. We have no indications of that. We often talk about on these calls and when we talk to you and other analysts and investors about op tempo today, we do have. Tailwind with regards to both revenue and profit generation. Because of the rate and pace of activities. Both Centcom Eastern Europe, and as you saw in the. Our reported results and into <unk>. A lot of activity in the Baker. Mentioned in the prepared remarks Toby. We actually had higher revenue in the second half of the year and Endo Bacon. Although the first half of the year, where the where they exercise actually occurred. Kind of a long winded answer to your question, but as. The military infrastructure continued to age as the airframes and ground vehicles continue to age. That actually creates more requirements for <unk>. Thanks, and just quickly could you. To elaborate on. The GMI 1000 opportunity, including comments on the sort of size and scope of that thank you very much. Okay. <unk> 1000 and represents as a as a new suite of capabilities that are. Really taking hold post the merger we believed that. The untethering of the Indianapolis facility. When it was acquired by vertex and ultimately now part of <unk> will create opportunity because of the. The organizational conflict of interest of being owned by a prime contractor going away. We are in fact seeing that. And this whole suite of engineered solutions GMI 1000, being one is our is our really great engineers and capabilities in Indianapolis. Working with both new and existing platforms in this case the router. And hardening those capabilities in such a way that they can be used for. New and innovative military missions. So it's. As we've mentioned in the prepared remarks this is actually. Sole source bid, we don't know whether or not we've won yet. But the what. But the traction of the GMI 1000, and other engineered solutions is actually progressing very very nicely. Thank you.

Charles L. Prow: You always have risk like we saw in Afghanistan, a couple of years ago if we were to pull out of our country, we have no indications of that. We often talk about on these calls and when we talk to you and other analysts and investors about uptempo, and today we do have a tailwind, with regards to both revenue and profit generation just because of the rate and pace of activities in both CENTCOM or Eastern Europe, and as you saw in the reported results and INDOPACOM, a lot of activity in INDOPACOM. As we mentioned in the prepared remarks Toby, we actually had higher revenue in the second half of the year in INDOPACOM, although the first half of the year is where the exercise actually occurred. So kind of a long winded answer to your question, but as the military infrastructure continued to age, as the airframes and ground vehicles continue to age, that actually creates more requirements for V2X.

Charles L. Prow: You always have risk like we saw in Afghanistan, a couple of years ago if we were to pull out of our country, we have no indications of that.

Entirely continue okay.

You always have risk like we saw.

In Afghanistan, a couple of years ago, if we were to pull out of our country.

We have no indications of that.

Charles L. Prow: We often talk about on these calls and when we talk to you and other analysts and investors about uptempo, and today we do have a tailwind, with regards to both revenue and profit generation just because of the rate and pace of activities in both CENTCOM or Eastern Europe, and as you saw in the reported results and INDOPACOM, a lot of activity in INDOPACOM. As we mentioned in the prepared remarks Toby, we actually had higher revenue in the second half of the year in INDOPACOM, although the first half of the year is where the exercise actually occurred. So kind of a long winded answer to your question, but as the military infrastructure continued to age, as the airframes and ground vehicles continue to age, that actually creates more requirements for V2X.

We often talk about on these calls and when we talk to you and other analysts and investors about op tempo today, we do have.

Tailwind with regards to both revenue and profit generation.

Because of the rate and pace of activities.

Both Centcom Eastern Europe, and as you saw in the.

Our reported results and into <unk>.

A lot of activity in the Baker.

Charles L. Prow: As we mentioned in the prepared remarks Toby, we actually had higher revenue in the second half of the year in INDOPACOM, although the first half of the year is where the exercise actually occurred. So kind of a long winded answer to your question, but as the military infrastructure continued to age, as the airframes and ground vehicles continue to age, that actually creates more requirements for V2X.

Mentioned in the prepared remarks Toby.

We actually had higher revenue in the second half of the year and Endo Bacon.

Although the first half of the year, where the where they exercise actually occurred.

Kind of a long winded answer to your question, but as.

Charles L. Prow: So kind of a long winded answer to your question, but as the military infrastructure continued to age, as the airframes and ground vehicles continue to age, that actually creates more requirements for V2X.

The military infrastructure continued to age as the airframes and ground vehicles continue to age.

That actually creates more requirements for <unk>.

Thanks, and just quickly could you.

Shawn Mural: Thanks, and just quickly could you elaborate on the GMR1000 opportunity, including comments on the sort of size and scope of that? Thank you very much. Okay. <unk> 1000 and represents as a as a new suite of capabilities that are. Really taking hold post the merger we believed that. The untethering of the Indianapolis facility. When it was acquired by vertex and ultimately now part of <unk> will create opportunity because of the. The organizational conflict of interest of being owned by a prime contractor going away. We are in fact seeing that. And this whole suite of engineered solutions GMI 1000, being one is our is our really great engineers and capabilities in Indianapolis. Working with both new and existing platforms in this case the router. And hardening those capabilities in such a way that they can be used for. New and innovative military missions. So it's. As we've mentioned in the prepared remarks this is actually. Sole source bid, we don't know whether or not we've won yet. But the what. But the traction of the GMI 1000, and other engineered solutions is actually progressing very very nicely. Thank you.

Shawn Mural: Thanks, and just quickly could you elaborate on the GMR1000 opportunity, including comments on the sort of size and scope of that? Thank you very much.

To elaborate on.

The GMI 1000 opportunity, including comments on the sort of size and scope of that thank you very much.

Okay.

<unk> 1000 and represents as a as a new suite of capabilities that are.

Charles L. Prow: What GMR1000 represents is a new suite of capabilities that are really taking hold post the merger we believed that the untethering of the Indianapolis facility, when it was acquired by Vertex and ultimately now part of V2X will create opportunity because of the organizational conflict of interest of being owned by a prime contractor going away. We are in fact seeing that, and this whole suite of engineered solutions, GMR1000 being one, is our really great engineers and capabilities in Indianapolis working with both new and existing platforms, in this case the router, and hardening those capabilities in such a way that they can be used for new and innovative military missions. So it's a, as we've mentioned in the prepared remarks this is actually a sole source bid, we don't know whether or not we've won yet, but the traction of the GMR1000, and other engineered solutions is actually progressing very very nicely. Thank you.

Really taking hold post the merger we believed that.

The untethering of the Indianapolis facility.

When it was acquired by vertex and ultimately now part of <unk> will create opportunity because of the.

The organizational conflict of interest of being owned by a prime contractor going away. We are in fact seeing that.

Charles L. Prow: We are in fact seeing that, and this whole suite of engineered solutions, GMR1000 being one, is our really great engineers and capabilities in Indianapolis working with both new and existing platforms, in this case the router, and hardening those capabilities in such a way that they can be used for new and innovative military missions. So it's a, as we've mentioned in the prepared remarks this is actually a sole source bid, we don't know whether or not we've won yet, but the traction of the GMR1000, and other engineered solutions is actually progressing very very nicely.

And this whole suite of engineered solutions GMI 1000, being one is our is our really great engineers and capabilities in Indianapolis.

Working with both new and existing platforms in this case the router.

And hardening those capabilities in such a way that they can be used for.

New and innovative military missions.

Charles L. Prow: So it's a, as we've mentioned in the prepared remarks this is actually a sole source bid, we don't know whether or not we've won yet, but the traction of the GMR1000, and other engineered solutions is actually progressing very very nicely.

So it's.

As we've mentioned in the prepared remarks this is actually.

Sole source bid, we don't know whether or not we've won yet.

But the what.

But the traction of the GMI 1000, and other engineered solutions is actually progressing very very nicely.

Thank you.

Tobey Sommer: Thank you.

Operator: Thank you, our next question. Our next question comes from Joe Gomes with Noble Capital Markets, please proceed with your question.

Our next question comes from Joe <unk> with Noble capital markets. Please proceed with your question.

Good morning, nice quarter. Thank you how are you. Good. So first question kind of a little couple of parts to it but. The Bill was a little light in the quarter wondering though is that solely due to that though the protested and then the Ford contract that is still being definitive eyes or is the continuing resolution. Which is going on much longer than I think all of US had anticipated is that starting to impact you. We are saying that you have $9 billion in bids waiting for award from 6 billion at the end of last quarter. If you could talk a little bit about the continuing resolution and any impact it is having on you also. Yeah, Hey, Joe This is Sean. Yes, so exactly as you pointed out right. So so the pending awards. <unk> 3 billion in the quarter it is a bit muted environment relative to the case and cadence. The cadence of the awards and. Nothing nothing of note I don't think we're concerned about anything, but we are seeing a bit of a slowdown. From from some of those things, we would've liked to have seen them, but it doesn't change our our outlook for first successfully capturing those that work truck anything else. I think youre right. We think continuing resolution the rate and pace of awards slow. Again, the op tempo that we're seeing and you'll see that in our revenue. And. Are on contract growth continues strong so. I think as we move through this year. We will see awards again, it'll be a little slower than we would like but. We're very confident and confident in our guidance. Okay and speaking of the guidance. The adjusted EBITDA margin, if I look at it on the midpoint. It's it comes to be up seven, 4% and 24, which would be flat with 23. And is that just a kind of a reflection of more. Some of these newer contracts just beginning or. Or is there anything else behind that fact that. Appears to be flat projected year over year. Yes no. Sure I would tell you it's exactly as you described right. So so. Some of the some of the programs that are completion right. So we've said all along our programs as they mature they tend to move into higher margins. We're seeing the ramp up of new work will continue to mature to mature those things that improve the profitability over time and so throughout the year, you'll you'll see us do that kind of sequentially.

Joe Gomes: Good morning, nice quarter.

Thank you how are you. Good. So first question kind of a little couple of parts to it but. The Bill was a little light in the quarter wondering though is that solely due to that though the protested and then the Ford contract that is still being definitive eyes or is the continuing resolution. Which is going on much longer than I think all of US had anticipated is that starting to impact you. We are saying that you have $9 billion in bids waiting for award from 6 billion at the end of last quarter. If you could talk a little bit about the continuing resolution and any impact it is having on you also. Yeah, Hey, Joe This is Sean. Yes, so exactly as you pointed out right. So so the pending awards. <unk> 3 billion in the quarter it is a bit muted environment relative to the case and cadence. The cadence of the awards and. Nothing nothing of note I don't think we're concerned about anything, but we are seeing a bit of a slowdown. From from some of those things, we would've liked to have seen them, but it doesn't change our our outlook for first successfully capturing those that work truck anything else. I think youre right. We think continuing resolution the rate and pace of awards slow. Again, the op tempo that we're seeing and you'll see that in our revenue. And. Are on contract growth continues strong so. I think as we move through this year. We will see awards again, it'll be a little slower than we would like but. We're very confident and confident in our guidance. Okay and speaking of the guidance. The adjusted EBITDA margin, if I look at it on the midpoint. It's it comes to be up seven, 4% and 24, which would be flat with 23. And is that just a kind of a reflection of more. Some of these newer contracts just beginning or. Or is there anything else behind that fact that. Appears to be flat projected year over year. Yes no. Sure I would tell you it's exactly as you described right. So so. Some of the some of the programs that are completion right. So we've said all along our programs as they mature they tend to move into higher margins. We're seeing the ramp up of new work will continue to mature to mature those things that improve the profitability over time and so throughout the year, you'll you'll see us do that kind of sequentially.

Charles L. Prow: Thank you, how are you?

Thank you how are you.

Joe Gomes: Good. So first question, kind of a little couple of parts to it but, book to bill was a little light in the quarter, I'm wondering though is that solely due to the protested and then the Ford contract that is still being definitized? Or is the continuing resolution, which is going on much longer than I think all of us had anticipated, is that starting to impact you know, you were saying that you have $9 billion in bids waiting for award out from 6 billion at the end of last quarter. Maybe you could talk a little bit about the continuing resolution and any impact it's having on you also? Yeah, Hey, Joe This is Sean. Yes, so exactly as you pointed out right. So so the pending awards. <unk> 3 billion in the quarter it is a bit muted environment relative to the case and cadence. The cadence of the awards and. Nothing nothing of note I don't think we're concerned about anything, but we are seeing a bit of a slowdown. From from some of those things, we would've liked to have seen them, but it doesn't change our our outlook for first successfully capturing those that work truck anything else. I think youre right. We think continuing resolution the rate and pace of awards slow. Again, the op tempo that we're seeing and you'll see that in our revenue. And. Are on contract growth continues strong so. I think as we move through this year. We will see awards again, it'll be a little slower than we would like but. We're very confident and confident in our guidance. Okay and speaking of the guidance. The adjusted EBITDA margin, if I look at it on the midpoint. It's it comes to be up seven, 4% and 24, which would be flat with 23. And is that just a kind of a reflection of more. Some of these newer contracts just beginning or. Or is there anything else behind that fact that. Appears to be flat projected year over year. Yes no. Sure I would tell you it's exactly as you described right. So so. Some of the some of the programs that are completion right. So we've said all along our programs as they mature they tend to move into higher margins. We're seeing the ramp up of new work will continue to mature to mature those things that improve the profitability over time and so throughout the year, you'll you'll see us do that kind of sequentially.

Good. So first question kind of a little couple of parts to it but.

The Bill was a little light in the quarter wondering though is that solely due to that though the protested and then the Ford contract that is still being definitive eyes or is the continuing resolution.

Joe Gomes: Or is the continuing resolution, which is going on much longer than I think all of us had anticipated, is that starting to impact you know, you were saying that you have $9 billion in bids waiting for award out from 6 billion at the end of last quarter. Maybe you could talk a little bit about the continuing resolution and any impact it's having on you also?

Which is going on much longer than I think all of US had anticipated is that starting to impact you.

We are saying that you have $9 billion in bids waiting for award from 6 billion at the end of last quarter.

Joe Gomes: Maybe you could talk a little bit about the continuing resolution and any impact it's having on you also?

If you could talk a little bit about the continuing resolution and any impact it is having on you also.

Joe Gomes: Hey Joe, this is Shawn. Yes, so exactly is as you pointed out right. So the pending awards has increased 3 billion in the quarter, is a bit muted environment relative to the case and cadence of the awards. And nothing of note, I don't think we're concerned about anything, but we are seeing a bit of a slowdown from some of those things, we would've liked to have seen them, but it doesn't change our our outlook for first successfully capturing that work. Chuck anything else? I think youre right. We think continuing resolution the rate and pace of awards slow. Again, the op tempo that we're seeing and you'll see that in our revenue. And. Are on contract growth continues strong so. I think as we move through this year. We will see awards again, it'll be a little slower than we would like but. We're very confident and confident in our guidance. Okay and speaking of the guidance. The adjusted EBITDA margin, if I look at it on the midpoint. It's it comes to be up seven, 4% and 24, which would be flat with 23. And is that just a kind of a reflection of more. Some of these newer contracts just beginning or. Or is there anything else behind that fact that. Appears to be flat projected year over year. Yes no. Sure I would tell you it's exactly as you described right. So so. Some of the some of the programs that are completion right. So we've said all along our programs as they mature they tend to move into higher margins. We're seeing the ramp up of new work will continue to mature to mature those things that improve the profitability over time and so throughout the year, you'll you'll see us do that kind of sequentially.

Shawn Mural: Hey Joe, this is Shawn. Yes, so exactly is as you pointed out right. So the pending awards has increased 3 billion in the quarter, is a bit muted environment relative to the case and cadence of the awards. And nothing of note, I don't think we're concerned about anything, but we are seeing a bit of a slowdown from some of those things, we would've liked to have seen them, but it doesn't change our our outlook for first successfully capturing that work. Chuck anything else?

Shawn Mural: Hey Joe, this is Shawn. Yes, so exactly is as you pointed out right.

Yeah, Hey, Joe This is Sean.

Yes, so exactly as you pointed out right. So so the pending awards.

Shawn Mural: So the pending awards has increased 3 billion in the quarter, is a bit muted environment relative to the case and cadence of the awards. And nothing of note, I don't think we're concerned about anything, but we are seeing a bit of a slowdown from some of those things, we would've liked to have seen them, but it doesn't change our our outlook for first successfully capturing that work. Chuck anything else?

Shawn Mural: So the pending awards has increased 3 billion in the quarter, is a bit muted environment relative to the case and cadence of the awards.

<unk> 3 billion in the quarter it is a bit muted environment relative to the case and cadence.

Shawn Mural: And nothing of note, I don't think we're concerned about anything, but we are seeing a bit of a slowdown from some of those things, we would've liked to have seen them, but it doesn't change our our outlook for first successfully capturing that work. Chuck anything else?

The cadence of the awards and.

Nothing nothing of note I don't think we're concerned about anything, but we are seeing a bit of a slowdown.

From from some of those things, we would've liked to have seen them, but it doesn't change our our outlook for first successfully capturing those that work truck anything else.

Joe Gomes: I think you're right, we, as always in continuing resolution, the rate and pace of awards slow, again, the uptempo that we're seeing and you'll see that in our revenue, and our on contract growth continues strong. So, I think as we move through this year we will see awards, again it'll be a little slower than we would like but we're very confident in our guidance. Okay and speaking of the guidance. The adjusted EBITDA margin, if I look at it on the midpoint. It's it comes to be up seven, 4% and 24, which would be flat with 23. And is that just a kind of a reflection of more. Some of these newer contracts just beginning or. Or is there anything else behind that fact that. Appears to be flat projected year over year. Yes no. Sure I would tell you it's exactly as you described right. So so. Some of the some of the programs that are completion right. So we've said all along our programs as they mature they tend to move into higher margins. We're seeing the ramp up of new work will continue to mature to mature those things that improve the profitability over time and so throughout the year, you'll you'll see us do that kind of sequentially.

Charles L. Prow: I think you're right, we, as always in continuing resolution, the rate and pace of awards slow, again, the uptempo that we're seeing and you'll see that in our revenue, and our on contract growth continues strong. So, I think as we move through this year we will see awards, again it'll be a little slower than we would like but we're very confident in our guidance.

I think youre right.

We think continuing resolution the rate and pace of awards slow.

Again, the op tempo that we're seeing and you'll see that in our revenue.

Charles L. Prow: So, I think as we move through this year we will see awards, again it'll be a little slower than we would like but we're very confident in our guidance.

And.

Are on contract growth continues strong so.

I think as we move through this year.

We will see awards again, it'll be a little slower than we would like but.

Joe Gomes: Okay and speaking of the guidance, the adjusted EBITDA margin, if I look at it on the midpoint it's, it comes to be up 7.4% in 24 it should be flat with '23. And is that just a kind of a reflection of more, some of these newer contracts just beginning? Or is there anything else behind that fact that appears to be flat projected year over year? Yes no. Sure I would tell you it's exactly as you described right. So so. Some of the some of the programs that are completion right. So we've said all along our programs as they mature they tend to move into higher margins. We're seeing the ramp up of new work will continue to mature to mature those things that improve the profitability over time and so throughout the year, you'll you'll see us do that kind of sequentially.

Joe Gomes: Okay and speaking of the guidance, the adjusted EBITDA margin, if I look at it on the midpoint it's, it comes to be up 7.4% in 24 it should be flat with '23.

We're very confident and confident in our guidance.

Okay and speaking of the guidance.

The adjusted EBITDA margin, if I look at it on the midpoint. It's it comes to be up seven, 4% and 24, which would be flat with 23.

Joe Gomes: And is that just a kind of a reflection of more, some of these newer contracts just beginning? Or is there anything else behind that fact that appears to be flat projected year over year?

And is that just a kind of a reflection of more.

Some of these newer contracts just beginning or.

Or is there anything else behind that fact that.

Joe Gomes: Yeah no, Joe I would tell you it's exactly as you described right. So some of the some of the programs that are completion right, so we've said all along our programs as they mature, they tend to move into higher margins. We're seeing the ramp up of new work, will continue to mature those things that improve the profitability over time and so throughout the year you'll see us do that kind of sequentially when we think about the margin profile of the business over the course of the year. But yes, you're exactly right, at the midpoint we're probably right at the at the [Indiscernible] Okay and one more for me on the guidance, maybe you can kind of give us a little bit of the cadence. Historically right. That 45 in the first half 55% revenue in the second half but. One of the things you know Chuck you had mentioned last year you benefited in the first and second quarter by the exercises in Indo pay com. Assuming those don't repeat this year maybe. Maybe you can give us a little bit of size the impact they have on Q1, and Q2 and should we still kind of expect that 45 55 split. On the guidance. Yes, I'd say I'd look at it. At this way. On the top line driver I've looked at slightly less than 50% probably of the revenue in the first half somewhere right between that 45 from <unk> 50 in. In the first half of the year and then and then on the margin profile. And the adjusted EBITDA I'd, probably look at that as being slightly below kind of 45% in the first half again consistent with that ramp that we'll see sequentially. On a quarter by quarter as we go throughout the year as new work comes on. As the teams mature our execution Chuck anything else. As you said it perfectly. Last year, we did benefit from kind of extraordinary activity that happened at the beginning of the year. As you know you've followed us for a while. The first half second half dynamic has been very consistent going all the way back. Two. Vectra days and again, we feel very comfortable with the guide and we feel very comfortable with the ramp throughout the year. Great. Thanks for taking my questions. I appreciate it.

Shawn Mural: Yeah no, Joe I would tell you it's exactly as you described right. So some of the some of the programs that are completion right, so we've said all along our programs as they mature, they tend to move into higher margins. We're seeing the ramp up of new work, will continue to mature those things that improve the profitability over time and so throughout the year you'll see us do that kind of sequentially when we think about the margin profile of the business over the course of the year. But yes, you're exactly right, at the midpoint we're probably right at the at the [Indiscernible]

Shawn Mural: Yeah no, Joe I would tell you it's exactly as you described right.

Appears to be flat projected year over year.

Shawn Mural: So some of the some of the programs that are completion right, so we've said all along our programs as they mature, they tend to move into higher margins. We're seeing the ramp up of new work, will continue to mature those things that improve the profitability over time and so throughout the year you'll see us do that kind of sequentially when we think about the margin profile of the business over the course of the year. But yes, you're exactly right, at the midpoint we're probably right at the at the [Indiscernible]

Shawn Mural: So some of the some of the programs that are completion right, so we've said all along our programs as they mature, they tend to move into higher margins.

Yes no.

Sure I would tell you it's exactly as you described right. So so.

Some of the some of the programs that are completion right. So we've said all along our programs as they mature they tend to move into higher margins. We're seeing the ramp up of new work will continue to mature to mature those things that improve the profitability over time and so throughout the year, you'll you'll see us do that kind of sequentially.

Shawn Mural: We're seeing the ramp up of new work, will continue to mature those things that improve the profitability over time and so throughout the year you'll see us do that kind of sequentially when we think about the margin profile of the business over the course of the year. But yes, you're exactly right, at the midpoint we're probably right at the at the [Indiscernible]

When we think about the margin profile. Of the business over the over the course of the year, but but. Yes, youre exactly right at the midpoint, where we're probably right at the at the Southern Florida. Okay and one more for me on the guidance, maybe you can kind of give us a little bit of the cadence. Historically right. That 45 in the first half 55% revenue in the second half but. One of the things you know Chuck you had mentioned last year you benefited in the first and second quarter by the exercises in Indo pay com. Assuming those don't repeat this year maybe. Maybe you can give us a little bit of size the impact they have on Q1, and Q2 and should we still kind of expect that 45 55 split. On the guidance. Yes, I'd say I'd look at it. At this way. On the top line driver I've looked at slightly less than 50% probably of the revenue in the first half somewhere right between that 45 from <unk> 50 in. In the first half of the year and then and then on the margin profile. And the adjusted EBITDA I'd, probably look at that as being slightly below kind of 45% in the first half again consistent with that ramp that we'll see sequentially. On a quarter by quarter as we go throughout the year as new work comes on. As the teams mature our execution Chuck anything else. As you said it perfectly. Last year, we did benefit from kind of extraordinary activity that happened at the beginning of the year. As you know you've followed us for a while. The first half second half dynamic has been very consistent going all the way back. Two. Vectra days and again, we feel very comfortable with the guide and we feel very comfortable with the ramp throughout the year. Great. Thanks for taking my questions. I appreciate it.

Of the business over the over the course of the year, but but.

Shawn Mural: But yes, you're exactly right, at the midpoint we're probably right at the at the [Indiscernible]

Yes, youre exactly right at the midpoint, where we're probably right at the at the Southern Florida.

Joe Gomes: Okay, one more for me on the guidance, maybe you can kind of give us a little bit of cadence you know, historically we're kind of at that 45 in the first half, 55% revenue in the second half. But one of the things you know, Chuck you had mentioned in your last year you benefited in the first and second quarter by the exercises in INDOPACOM, I'm assuming those don't repeat this year, maybe you can give us a little bit of size, the impact they have on Q1 and Q2 and should we still kind of expect that 45-55 split on the guidance? Yes, I'd say I'd look at it. At this way. On the top line driver I've looked at slightly less than 50% probably of the revenue in the first half somewhere right between that 45 from <unk> 50 in. In the first half of the year and then and then on the margin profile. And the adjusted EBITDA I'd, probably look at that as being slightly below kind of 45% in the first half again consistent with that ramp that we'll see sequentially. On a quarter by quarter as we go throughout the year as new work comes on. As the teams mature our execution Chuck anything else. As you said it perfectly. Last year, we did benefit from kind of extraordinary activity that happened at the beginning of the year. As you know you've followed us for a while. The first half second half dynamic has been very consistent going all the way back. Two. Vectra days and again, we feel very comfortable with the guide and we feel very comfortable with the ramp throughout the year. Great. Thanks for taking my questions. I appreciate it.

Okay and one more for me on the guidance, maybe you can kind of give us a little bit of the cadence.

Historically right.

That 45 in the first half 55% revenue in the second half but.

Joe Gomes: But one of the things you know, Chuck you had mentioned in your last year you benefited in the first and second quarter by the exercises in INDOPACOM, I'm assuming those don't repeat this year, maybe you can give us a little bit of size, the impact they have on Q1 and Q2 and should we still kind of expect that 45-55 split on the guidance?

One of the things you know Chuck you had mentioned last year you benefited in the first and second quarter by the exercises in Indo pay com.

Assuming those don't repeat this year maybe.

Maybe you can give us a little bit of size the impact they have on Q1, and Q2 and should we still kind of expect that 45 55 split.

Joe Gomes: Yes, I'd say, I'd look at it this way. On the top line Joe I would get slightly less than 50% probably of the revenue in the first half, somewhere right between that 45% and 50% in the first half of the year. And then and then on the margin profile and the adjusted EBITDA, I'd probably look at that as being slightly below, kind of 45% in the first half, again consistent with that ramp that we'll see sequentially kind of quarter by quarter as we go throughout the year as new work comes on and as the teams mature our execution. Chuck anything else? As you said it perfectly. Last year, we did benefit from kind of extraordinary activity that happened at the beginning of the year. As you know you've followed us for a while. The first half second half dynamic has been very consistent going all the way back. Two. Vectra days and again, we feel very comfortable with the guide and we feel very comfortable with the ramp throughout the year. Great. Thanks for taking my questions. I appreciate it.

Shawn Mural: Yes, I'd say, I'd look at it this way. On the top line Joe I would get slightly less than 50% probably of the revenue in the first half, somewhere right between that 45% and 50% in the first half of the year. And then and then on the margin profile and the adjusted EBITDA, I'd probably look at that as being slightly below, kind of 45% in the first half, again consistent with that ramp that we'll see sequentially kind of quarter by quarter as we go throughout the year as new work comes on and as the teams mature our execution. Chuck anything else?

On the guidance.

Yes, I'd say I'd look at it.

At this way.

On the top line driver I've looked at slightly less than 50% probably of the revenue in the first half somewhere right between that 45 from <unk> 50 in.

In the first half of the year and then and then on the margin profile.

Shawn Mural: And then and then on the margin profile and the adjusted EBITDA, I'd probably look at that as being slightly below, kind of 45% in the first half, again consistent with that ramp that we'll see sequentially kind of quarter by quarter as we go throughout the year as new work comes on and as the teams mature our execution. Chuck anything else?

And the adjusted EBITDA I'd, probably look at that as being slightly below kind of 45% in the first half again consistent with that ramp that we'll see sequentially.

On a quarter by quarter as we go throughout the year as new work comes on.

As the teams mature our execution Chuck anything else.

Joe Gomes: No, as you said it perfectly, last year we did benefit from kind of extraordinary activity that happened at the beginning of the year. As you know you've followed us for a while, the first half, second half dynamic has been very consistent going all the way back to our Vectrus days, and again we feel very comfortable with the guide, and we feel very comfortable with the ramp throughout the year. Great. Thanks for taking my questions. I appreciate it.

Charles L. Prow: No, as you said it perfectly, last year we did benefit from kind of extraordinary activity that happened at the beginning of the year. As you know you've followed us for a while, the first half, second half dynamic has been very consistent going all the way back to our Vectrus days, and again we feel very comfortable with the guide, and we feel very comfortable with the ramp throughout the year.

Charles L. Prow: No, as you said it perfectly, last year we did benefit from kind of extraordinary activity that happened at the beginning of the year.

As you said it perfectly.

Last year, we did benefit from kind of extraordinary activity that happened at the beginning of the year.

As you know you've followed us for a while.

Charles L. Prow: As you know you've followed us for a while, the first half, second half dynamic has been very consistent going all the way back to our Vectrus days, and again we feel very comfortable with the guide, and we feel very comfortable with the ramp throughout the year.

The first half second half dynamic has been very consistent going all the way back.

Two.

Vectra days and again, we feel very comfortable with the guide and we feel very comfortable with the ramp throughout the year.

Great. Thanks for taking my questions.

Joe Gomes: Great. Thanks for taking my questions. I appreciate it.

Joe Gomes: Great. Thanks for taking my questions.

I appreciate it.

Multiple: Thank you, I appreciate it.

Operator: Our next question comes from Trevor Walsh with Citizens JMP, please proceed with your question.

Please proceed with your question.

Trevor Walsh: Great, good morning team, thanks for taking my questions and I'll echo my congrats on a great finish to the year. Similar to the color that you provided on the FMS pipeline, I was wondering Chuck maybe if you could do a similar type of run down just on the $9 billion in bids submitted that you had, just kind of, just generally where that falls within the portfolio of products and how that looks in terms of what the mix is there if you could? Yes. Thank you for asking the question because we're really thrilled with how we've been able to kind of curated cultivate our pipeline over the last couple of years. Of that $9 billion I would say there is a. A good mix of maybe call it a proportional mix between our core businesses are of logistics base management and aerospace O&M. And then the. And the newer <unk>. <unk> technology and engineered solution pipeline, where we really have a really nice. Emerging pipeline in our intelligence community business as well. So again, the new capabilities that we have introduced over the last several years are now importantly represented in that pipeline that we discussed and we're actually thrilled with that progress. Great terrific. You mentioned a. Defense system or platform I don't know, if thats classified or if youre able to gives us a little bit more detail or its just not finalized yet, but just curious how. Our technology driven that particular project was. Yes. We can't talk we cannot talk about it it is finished. It's a wonderful story is something. The requirement that one from inception to fielding in under a year. And it's highly technical again falling back to the engineered solutions that we discussed here. During the call and then the prior questions. You can you can simplify it this way our generalize. It. This way is we are taking existing platform some of them older. Some of their more recent and we are we are engineering ways for the older platforms to either work together <unk> to extend their capabilities. It's a really important. Part of our business because we can now approach both military intelligence community as well as prime contractor with new and different ways.

Trevor Walsh: Great, good morning team, thanks for taking my questions and I'll echo my congrats on a great finish to the year.

<unk> to the.

The color that you provided on the Fms pipeline I was wondering Chuck maybe if you could do.

Trevor Walsh: Similar to the color that you provided on the FMS pipeline, I was wondering Chuck maybe if you could do a similar type of run down just on the $9 billion in bids submitted that you had, just kind of, just generally where that falls within the portfolio of products and how that looks in terms of what the mix is there if you could?

Similar type of run down just on the $9 billion in bids submitted that you just.

Just kind of just generally where that falls within the portfolio of products and how that how that looks in terms of what the mix is there if you could.

Yes.

Thank you for asking the question because we're really thrilled with how we've been able to kind of curated cultivate our pipeline over the last couple of years.

Trevor Walsh: Yes that's a, thank you for asking the question because we're really thrilled with how we've been able to kind of curate or cultivate our pipeline over the last couple of years. Of that $9 billion dollars I would say there is a good mix, I'd maybe call it a proportional mix between our core businesses, our logistics, base management, and aerospace O&M. And then the newer converge technology and engineered solution pipeline, we really have a really nice emerging pipeline in our intelligence community business as well. So again, the new capabilities that we have introduced over the last several years are now importantly represented in that pipeline that we discussed, and we're actually thrilled with that progress. Great terrific. You mentioned a. Defense system or platform I don't know, if thats classified or if youre able to gives us a little bit more detail or its just not finalized yet, but just curious how. Our technology driven that particular project was. Yes. We can't talk we cannot talk about it it is finished. It's a wonderful story is something. The requirement that one from inception to fielding in under a year. And it's highly technical again falling back to the engineered solutions that we discussed here. During the call and then the prior questions. You can you can simplify it this way our generalize. It. This way is we are taking existing platform some of them older. Some of their more recent and we are we are engineering ways for the older platforms to either work together <unk> to extend their capabilities. It's a really important. Part of our business because we can now approach both military intelligence community as well as prime contractor with new and different ways.

Charles L. Prow: Yes that's a, thank you for asking the question because we're really thrilled with how we've been able to kind of curate or cultivate our pipeline over the last couple of years. Of that $9 billion dollars I would say there is a good mix, I'd maybe call it a proportional mix between our core businesses, our logistics, base management, and aerospace O&M. And then the newer converge technology and engineered solution pipeline, we really have a really nice emerging pipeline in our intelligence community business as well. So again, the new capabilities that we have introduced over the last several years are now importantly represented in that pipeline that we discussed, and we're actually thrilled with that progress.

Charles L. Prow: Yes that's a, thank you for asking the question because we're really thrilled with how we've been able to kind of curate or cultivate our pipeline over the last couple of years.

Of that $9 billion I would say there is a.

A good mix of maybe call it a proportional mix between our core businesses are of logistics base management and aerospace O&M.

Charles L. Prow: Of that $9 billion dollars I would say there is a good mix, I'd maybe call it a proportional mix between our core businesses, our logistics, base management, and aerospace O&M. And then the newer converge technology and engineered solution pipeline, we really have a really nice emerging pipeline in our intelligence community business as well. So again, the new capabilities that we have introduced over the last several years are now importantly represented in that pipeline that we discussed, and we're actually thrilled with that progress.

Charles L. Prow: Of that $9 billion dollars I would say there is a good mix, I'd maybe call it a proportional mix between our core businesses, our logistics, base management, and aerospace O&M.

And then the.

And the newer <unk>.

<unk> technology and engineered solution pipeline, where we really have a really nice.

Charles L. Prow: And then the newer converge technology and engineered solution pipeline, we really have a really nice emerging pipeline in our intelligence community business as well. So again, the new capabilities that we have introduced over the last several years are now importantly represented in that pipeline that we discussed, and we're actually thrilled with that progress.

Charles L. Prow: And then the newer converge technology and engineered solution pipeline, we really have a really nice emerging pipeline in our intelligence community business as well.

Emerging pipeline in our intelligence community business as well.

So again, the new capabilities that we have introduced over the last several years are now importantly represented in that pipeline that we discussed and we're actually thrilled with that progress.

Charles L. Prow: So again, the new capabilities that we have introduced over the last several years are now importantly represented in that pipeline that we discussed, and we're actually thrilled with that progress.

Great terrific.

You mentioned a.

Trevor Walsh: Great terrific. You mentioned a. Defense system or platform I don't know, if thats classified or if youre able to gives us a little bit more detail or its just not finalized yet, but just curious how. Our technology driven that particular project was. Yes. We can't talk we cannot talk about it it is finished. It's a wonderful story is something. The requirement that one from inception to fielding in under a year. And it's highly technical again falling back to the engineered solutions that we discussed here. During the call and then the prior questions. You can you can simplify it this way our generalize. It. This way is we are taking existing platform some of them older. Some of their more recent and we are we are engineering ways for the older platforms to either work together <unk> to extend their capabilities. It's a really important. Part of our business because we can now approach both military intelligence community as well as prime contractor with new and different ways.

Trevor Walsh: Great terrific, you mentioned a newer defense system or platform, I don't know, if thats classified or if you're able to gives us a little bit more detail, or it's just not finalized yet, but just curious how technology-driven that particular project was?

Defense system or platform I don't know, if thats classified or if youre able to gives us a little bit more detail or its just not finalized yet, but just curious how.

Our technology driven that particular project was.

Yes.

We can't talk we cannot talk about it it is finished.

Trevor Walsh: Yeah it is, we cannot talk about it, it is finished, it's a wonderful story, is something that is the requirement that one from inception to fielding in under a year, and it's highly technical. Again falling back to the engineered solutions that we discussed here during the call and then the prior questions, you can simplify it this way, or generalize it this way. Is we are taking existing platforms, some of them older, some of their more recent, and we are we are engineering ways for the older platforms to either work together and or to extend their capabilities. It's a really important part of our business because we can now approach both military intelligence community, as well as prime contractor with new and different ways of again, extending lifecycle and or improving capabilities of, in many cases platforms that had been out there for a long long time. Perfect. Thank you for the perspective, maybe one more from me for Shaun look like based on the guide that you've got a little bit of an uptick in the capex outlook for the year going from about $25 million to $30 million. It looks like from what I, what I can tell in our model. Just curious where the added investment is going or kind of what you see. Where that where that spend will be progressing throughout the year. Yes, great Great question. Thank you. So we had we had mentioned at the end of last year in the third quarter release that we would we would restart capex should be around $28 million. We came in slightly under that Trevor came in right around $26 million in Capex for 2023, and so really what youre seeing is a carryover of that think of that as engineering tools again, just everything that Chuck just mentioned about the <unk>. Modernization and Sustainment capabilities that the business has were investing in some engineering tools. To help ensure that we have that capability, we enhance that going forward. So that's really all it is drivers timing between years on those on those investments. Got it makes sense, okay. Thanks for taking my questions and I'll hop back in the queue.

Charles L. Prow: Yeah it is, we cannot talk about it, it is finished, it's a wonderful story, is something that is the requirement that one from inception to fielding in under a year, and it's highly technical. Again falling back to the engineered solutions that we discussed here during the call and then the prior questions, you can simplify it this way, or generalize it this way. Is we are taking existing platforms, some of them older, some of their more recent, and we are we are engineering ways for the older platforms to either work together and or to extend their capabilities. It's a really important part of our business because we can now approach both military intelligence community, as well as prime contractor with new and different ways of again, extending lifecycle and or improving capabilities of, in many cases platforms that had been out there for a long long time.

It's a wonderful story is something.

The requirement that one from inception to fielding in under a year.

And it's highly technical again falling back to the engineered solutions that we discussed here.

Charles L. Prow: Again falling back to the engineered solutions that we discussed here during the call and then the prior questions, you can simplify it this way, or generalize it this way. Is we are taking existing platforms, some of them older, some of their more recent, and we are we are engineering ways for the older platforms to either work together and or to extend their capabilities. It's a really important part of our business because we can now approach both military intelligence community, as well as prime contractor with new and different ways of again, extending lifecycle and or improving capabilities of, in many cases platforms that had been out there for a long long time.

Charles L. Prow: Again falling back to the engineered solutions that we discussed here during the call and then the prior questions, you can simplify it this way, or generalize it this way.

During the call and then the prior questions.

You can you can simplify it this way our generalize. It. This way is we are taking existing platform some of them older. Some of their more recent and we are we are engineering ways for the older platforms to either work together <unk> to extend their capabilities.

Charles L. Prow: Is we are taking existing platforms, some of them older, some of their more recent, and we are we are engineering ways for the older platforms to either work together and or to extend their capabilities. It's a really important part of our business because we can now approach both military intelligence community, as well as prime contractor with new and different ways of again, extending lifecycle and or improving capabilities of, in many cases platforms that had been out there for a long long time.

Charles L. Prow: It's a really important part of our business because we can now approach both military intelligence community, as well as prime contractor with new and different ways of again, extending lifecycle and or improving capabilities of, in many cases platforms that had been out there for a long long time.

It's a really important.

Part of our business because we can now approach both military intelligence community as well as prime contractor with new and different ways.

Again, extending lifecycle <unk> improving capabilities. In many cases platform that had been out there for a long long time. Perfect. Thank you for the perspective, maybe one more from me for Shaun look like based on the guide that you've got a little bit of an uptick in the capex outlook for the year going from about $25 million to $30 million. It looks like from what I, what I can tell in our model. Just curious where the added investment is going or kind of what you see. Where that where that spend will be progressing throughout the year. Yes, great Great question. Thank you. So we had we had mentioned at the end of last year in the third quarter release that we would we would restart capex should be around $28 million. We came in slightly under that Trevor came in right around $26 million in Capex for 2023, and so really what youre seeing is a carryover of that think of that as engineering tools again, just everything that Chuck just mentioned about the <unk>. Modernization and Sustainment capabilities that the business has were investing in some engineering tools. To help ensure that we have that capability, we enhance that going forward. So that's really all it is drivers timing between years on those on those investments. Got it makes sense, okay. Thanks for taking my questions and I'll hop back in the queue. Our next question comes from Steven <unk> with RBC capital markets. Please proceed with your question.

Trevor Walsh: Perfect. Thank you for the perspective, maybe one more from me for Shaun look like based on the guide that you've got a little bit of an uptick in the capex outlook for the year going from about $25 million to $30 million. It looks like from what I, what I can tell in our model. Just curious where the added investment is going or kind of what you see. Where that where that spend will be progressing throughout the year. Yes, great Great question. Thank you. So we had we had mentioned at the end of last year in the third quarter release that we would we would restart capex should be around $28 million. We came in slightly under that Trevor came in right around $26 million in Capex for 2023, and so really what youre seeing is a carryover of that think of that as engineering tools again, just everything that Chuck just mentioned about the <unk>. Modernization and Sustainment capabilities that the business has were investing in some engineering tools. To help ensure that we have that capability, we enhance that going forward. So that's really all it is drivers timing between years on those on those investments. Got it makes sense, okay. Thanks for taking my questions and I'll hop back in the queue.

Trevor Walsh: Terrific, thank you for the perspective, maybe one more from me for Shawn, the look like based on the guide that you've got a little bit of an uptick in the capex outlook for the year going from about $25 million to $30 million, it looks like from what I can tell in our model. Just curious where the added investment is going or kind of what you see where that where that spend will be progressing throughout the year?

In many cases platform that had been out there for a long long time.

Perfect. Thank you for the perspective, maybe one more from me for Shaun look like based on the guide that you've got a little bit of an uptick in the capex outlook for the year going from about $25 million to $30 million. It looks like from what I, what I can tell in our model.

Trevor Walsh: Just curious where the added investment is going or kind of what you see where that where that spend will be progressing throughout the year?

Just curious where the added investment is going or kind of what you see.

Where that where that spend will be progressing throughout the year.

Trevor Walsh: Yes, great question, thank you. So we had we had mentioned at the end of last year, in the third quarter release that we would, we thought capex should be around $28 million. We came in slightly under that Trevor, came in right around $26 million in Capex for 2023, and so really what you're seeing is a carryover of that, think of that as engineering tools, again just everything that Chuck just mentioned about the modernization and sustainment capabilities that the business has. We're investing in some engineering tools to help ensure that we have that capability and we enhance that going forward, so that's really all it is Trevor, is timing between years on those investments. Got it, makes sense, thanks for taking my questions and I'll hop back in the queue.

Shawn Mural: Yes, great question, thank you. So we had we had mentioned at the end of last year, in the third quarter release that we would, we thought capex should be around $28 million. We came in slightly under that Trevor, came in right around $26 million in Capex for 2023, and so really what you're seeing is a carryover of that, think of that as engineering tools, again just everything that Chuck just mentioned about the modernization and sustainment capabilities that the business has. We're investing in some engineering tools to help ensure that we have that capability and we enhance that going forward, so that's really all it is Trevor, is timing between years on those investments.

Shawn Mural: Yes, great question, thank you.

Shawn Mural: So we had we had mentioned at the end of last year, in the third quarter release that we would, we thought capex should be around $28 million. We came in slightly under that Trevor, came in right around $26 million in Capex for 2023, and so really what you're seeing is a carryover of that, think of that as engineering tools, again just everything that Chuck just mentioned about the modernization and sustainment capabilities that the business has. We're investing in some engineering tools to help ensure that we have that capability and we enhance that going forward, so that's really all it is Trevor, is timing between years on those investments.

Shawn Mural: So we had we had mentioned at the end of last year, in the third quarter release that we would, we thought capex should be around $28 million.

Yes, great Great question. Thank you.

So we had we had mentioned at the end of last year in the third quarter release that we would we would restart capex should be around $28 million. We came in slightly under that Trevor came in right around $26 million in Capex for 2023, and so really what youre seeing is a carryover of that think of that as engineering tools again, just everything that Chuck just mentioned about the <unk>.

Shawn Mural: We came in slightly under that Trevor, came in right around $26 million in Capex for 2023, and so really what you're seeing is a carryover of that, think of that as engineering tools, again just everything that Chuck just mentioned about the modernization and sustainment capabilities that the business has. We're investing in some engineering tools to help ensure that we have that capability and we enhance that going forward, so that's really all it is Trevor, is timing between years on those investments.

Modernization and Sustainment capabilities that the business has were investing in some engineering tools.

Shawn Mural: We're investing in some engineering tools to help ensure that we have that capability and we enhance that going forward, so that's really all it is Trevor, is timing between years on those investments.

To help ensure that we have that capability, we enhance that going forward. So that's really all it is drivers timing between years on those on those investments.

Got it makes sense, okay. Thanks for taking my questions and I'll hop back in the queue.

Trevor Walsh: Got it, makes sense, thanks for taking my questions and I'll hop back in the queue.

Our next question comes from Steven <unk> with RBC capital markets. Please proceed with your question.

Operator: Our next question comes from Steven Sackel with RBC Capital Markets. Please proceed with your question.

Hey, good morning all and thank you for taking my question. I was hoping you could provide a little bit more detail around the middle east exposure, maybe how fast can that market grow? And then maybe just you can kind of compare and contrasting that to INDOPACOM? Okay. Yes, you said Steven Hello, how are you doing did you say you are kind of as you say middle East exposure, yes, yes. Okay. Okay. Okay. So yes, so we yes. Middle East is our and it has been historically. <unk>. <unk>. Largest individual non bonus area of operation, we've been operating in the region bar. Really three decades now. As you undoubtedly know. There is a lot of activity in the middle East now and we mentioned in the prepared remarks. The op tempo that is we are in fact seeing in their region. Today as being largely Andrew handled true. The existing contract we have in the region. Although we did note a new a new win with the Air force as well that'll be that'll be ramping here. <unk>. With regard to additional business additional orders. Do believe when all the funding situations are. Finally resolved with regard to the congressional action. There are opportunities for New awards, we have several. Demand signals from our clients that we worked diligently with our clients on but again, we see up here. Tempo. Remaining high for the foreseeable future. And again as the budget resolutions. At the budget situations I should say are resolved the opportunity for new orders May may in fact youre rise. Great. Thank you for that and then maybe just following up there on the budget, maybe just the impact of the <unk> kind of what is or is it factored into the <unk> Guide and then maybe also just how importantly, because of the lack of any ukraine supplemental might be or than what upside that has for the toric regardless. Well. So we have factored in a more muted. Award scenario for this year as Sean indicated in his prepared remarks in the prior question having. Having said that we will see some awards our teams continued to do an excellent job with on contract growth. Which is typically provided from existing budgets. And then the reality is that the op tempo remains high so I think balancing.

Steven Sackel: Hey, good morning all and thank you for taking my question. I was hoping you could provide a little bit more detail around the middle east exposure, maybe how fast can that market grow? And then maybe just you can kind of compare and contrasting that to INDOPACOM?

And could provide a little bit more detail around the middle east exposure maybe.

Maybe how fast can network grow and then maybe just you can kind of compare and contrasting that to pick up.

Steven Sackel: And then maybe just you can kind of compare and contrasting that to INDOPACOM?

Okay.

Yes, you said Steven Hello, how are you doing did you say you are kind of as you say middle East exposure, yes, yes.

You said, Steven hello, how are you doing? Did you say you cut out but did you say Middle East exposure? yes, yes. Okay. Okay. Okay. So yes, so we yes. Middle East is our and it has been historically. <unk>. <unk>. Largest individual non bonus area of operation, we've been operating in the region bar. Really three decades now. As you undoubtedly know. There is a lot of activity in the middle East now and we mentioned in the prepared remarks. The op tempo that is we are in fact seeing in their region. Today as being largely Andrew handled true. The existing contract we have in the region. Although we did note a new a new win with the Air force as well that'll be that'll be ramping here. <unk>. With regard to additional business additional orders. Do believe when all the funding situations are. Finally resolved with regard to the congressional action. There are opportunities for New awards, we have several. Demand signals from our clients that we worked diligently with our clients on but again, we see up here. Tempo. Remaining high for the foreseeable future. And again as the budget resolutions. At the budget situations I should say are resolved the opportunity for new orders May may in fact youre rise. Great. Thank you for that and then maybe just following up there on the budget, maybe just the impact of the <unk> kind of what is or is it factored into the <unk> Guide and then maybe also just how importantly, because of the lack of any ukraine supplemental might be or than what upside that has for the toric regardless. Well. So we have factored in a more muted. Award scenario for this year as Sean indicated in his prepared remarks in the prior question having. Having said that we will see some awards our teams continued to do an excellent job with on contract growth. Which is typically provided from existing budgets. And then the reality is that the op tempo remains high so I think balancing.

Charles L. Prow: You said, Steven hello, how are you doing? Did you say you cut out but did you say Middle East exposure?

Okay. Okay. Okay. So yes, so we yes.

Middle East is our and it has been historically.

yes, yes. Okay. Okay. Okay. So yes, so we yes. Middle East is our and it has been historically. <unk>. <unk>. Largest individual non bonus area of operation, we've been operating in the region bar. Really three decades now. As you undoubtedly know. There is a lot of activity in the middle East now and we mentioned in the prepared remarks. The op tempo that is we are in fact seeing in their region. Today as being largely Andrew handled true. The existing contract we have in the region. Although we did note a new a new win with the Air force as well that'll be that'll be ramping here. <unk>. With regard to additional business additional orders. Do believe when all the funding situations are. Finally resolved with regard to the congressional action. There are opportunities for New awards, we have several. Demand signals from our clients that we worked diligently with our clients on but again, we see up here. Tempo. Remaining high for the foreseeable future. And again as the budget resolutions. At the budget situations I should say are resolved the opportunity for new orders May may in fact youre rise. Great. Thank you for that and then maybe just following up there on the budget, maybe just the impact of the <unk> kind of what is or is it factored into the <unk> Guide and then maybe also just how importantly, because of the lack of any ukraine supplemental might be or than what upside that has for the toric regardless. Well. So we have factored in a more muted. Award scenario for this year as Sean indicated in his prepared remarks in the prior question having. Having said that we will see some awards our teams continued to do an excellent job with on contract growth. Which is typically provided from existing budgets. And then the reality is that the op tempo remains high so I think balancing.

Steven Sackel: Yes I did, yeah.

Okay. So yes, the Middle East is our, and it has been historically our largest individual non-bonus area of operation, we've been operating in the region for really three decades now. As you undoubtedly know, there is a lot of activity in the Middle East now, and as we mentioned in the prepared remarks the uptempo that is, that we are in fact seeing in their region today is being largely handled trough the existing contract we have in the region, although we did note a new a new win with the Air force as well that'll be that'll be ramping here [Inaudible]. With regard to additional business, additional orders, we do believe when all the funding situations are finally resolved with regard to the congressional action, there are opportunities for new awards, we have several demand signals from our clients that we worked diligently with our clients on. But again, we see uptempo remaining high for the foreseeable future, and again as the budget resolutions, as the budget situations I should say are resolved the opportunity for new orders may in fact arise. Great. Thank you for that and then maybe just following up there on the budget, maybe just the impact of the <unk> kind of what is or is it factored into the <unk> Guide and then maybe also just how importantly, because of the lack of any ukraine supplemental might be or than what upside that has for the toric regardless. Well. So we have factored in a more muted. Award scenario for this year as Sean indicated in his prepared remarks in the prior question having. Having said that we will see some awards our teams continued to do an excellent job with on contract growth. Which is typically provided from existing budgets. And then the reality is that the op tempo remains high so I think balancing.

Charles L. Prow: Okay. So yes, the Middle East is our, and it has been historically our largest individual non-bonus area of operation, we've been operating in the region for really three decades now. As you undoubtedly know, there is a lot of activity in the Middle East now. And as we mentioned in the prepared remarks the uptempo that is, that we are in fact seeing in their region today is being largely handled trough the existing contract we have in the region, although we did note a new a new win with the Air force as well that'll be that'll be ramping here [Inaudible]. With regard to additional business, additional orders, we do believe when all the funding situations are finally resolved with regard to the congressional action, there are opportunities for new awards, we have several demand signals from our clients that we worked diligently with our clients on. But again, we see uptempo remaining high for the foreseeable future, and again as the budget resolutions, as the budget situations I should say are resolved the opportunity for new orders may in fact arise.

<unk>.

Largest individual non bonus area of operation, we've been operating in the region bar.

Really three decades now.

As you undoubtedly know.

As you undoubtedly know, there is a lot of activity in the Middle East now. And as we mentioned in the prepared remarks the uptempo that is, that we are in fact seeing in their region today is being largely handled trough the existing contract we have in the region, although we did note a new a new win with the Air force as well that'll be that'll be ramping here [Inaudible]. With regard to additional business, additional orders, we do believe when all the funding situations are finally resolved with regard to the congressional action, there are opportunities for new awards, we have several demand signals from our clients that we worked diligently with our clients on. But again, we see uptempo remaining high for the foreseeable future, and again as the budget resolutions, as the budget situations I should say are resolved the opportunity for new orders may in fact arise.

As you undoubtedly know, there is a lot of activity in the Middle East now.

Charles L. Prow: As you undoubtedly know, there is a lot of activity in the Middle East now. And as we mentioned in the prepared remarks the uptempo that is, that we are in fact seeing in their region today is being largely handled trough the existing contract we have in the region, although we did note a new a new win with the Air force as well that'll be that'll be ramping here [Inaudible]. With regard to additional business, additional orders, we do believe when all the funding situations are finally resolved with regard to the congressional action, there are opportunities for new awards, we have several demand signals from our clients that we worked diligently with our clients on. But again, we see uptempo remaining high for the foreseeable future, and again as the budget resolutions, as the budget situations I should say are resolved the opportunity for new orders may in fact arise.

Charles L. Prow: As you undoubtedly know, there is a lot of activity in the Middle East now.

There is a lot of activity in the middle East now and we mentioned in the prepared remarks.

And as we mentioned in the prepared remarks the uptempo that is, that we are in fact seeing in their region today is being largely handled trough the existing contract we have in the region, although we did note a new a new win with the Air force as well that'll be that'll be ramping here [Inaudible]. With regard to additional business, additional orders, we do believe when all the funding situations are finally resolved with regard to the congressional action, there are opportunities for new awards, we have several demand signals from our clients that we worked diligently with our clients on. But again, we see uptempo remaining high for the foreseeable future, and again as the budget resolutions, as the budget situations I should say are resolved the opportunity for new orders may in fact arise.

Charles L. Prow: And as we mentioned in the prepared remarks the uptempo that is, that we are in fact seeing in their region today is being largely handled trough the existing contract we have in the region, although we did note a new a new win with the Air force as well that'll be that'll be ramping here [Inaudible]. With regard to additional business, additional orders, we do believe when all the funding situations are finally resolved with regard to the congressional action, there are opportunities for new awards, we have several demand signals from our clients that we worked diligently with our clients on. But again, we see uptempo remaining high for the foreseeable future, and again as the budget resolutions, as the budget situations I should say are resolved the opportunity for new orders may in fact arise.

The op tempo that is we are in fact seeing in their region.

Today as being largely Andrew handled true.

The existing contract we have in the region.

Although we did note a new a new win with the Air force as well that'll be that'll be ramping here.

<unk>.

With regard to additional business additional orders.

Charles L. Prow: With regard to additional business, additional orders, we do believe when all the funding situations are finally resolved with regard to the congressional action, there are opportunities for new awards, we have several demand signals from our clients that we worked diligently with our clients on. But again, we see uptempo remaining high for the foreseeable future, and again as the budget resolutions, as the budget situations I should say are resolved the opportunity for new orders may in fact arise.

Do believe when all the funding situations are.

Finally resolved with regard to the congressional action.

There are opportunities for New awards, we have several.

Demand signals from our clients that we worked diligently with our clients on but again, we see up here.

Charles L. Prow: But again, we see uptempo remaining high for the foreseeable future, and again as the budget resolutions, as the budget situations I should say are resolved the opportunity for new orders may in fact arise.

Tempo.

Remaining high for the foreseeable future.

And again as the budget resolutions.

At the budget situations I should say are resolved the opportunity for new orders May may in fact youre rise.

Great, thank you for that, and then maybe just following up there on the budget, maybe just the impact of the CR kind of what is or isn't factored into the '24 guide? And then maybe also just how importantly kind of of the lack of any Ukraine supplemental might be or then what upside that has for the '24 guide as well. So we have factored in a more muted. Award scenario for this year as Sean indicated in his prepared remarks in the prior question having. Having said that we will see some awards our teams continued to do an excellent job with on contract growth. Which is typically provided from existing budgets. And then the reality is that the op tempo remains high so I think balancing.

Steven Sackel: Great, thank you for that, and then maybe just following up there on the budget, maybe just the impact of the CR kind of what is or isn't factored into the '24 guide? And then maybe also just how importantly kind of of the lack of any Ukraine supplemental might be or then what upside that has for the '24 guide as well.

Great. Thank you for that and then maybe just following up there on the budget, maybe just the impact of the <unk> kind of what is or is it factored into the <unk> Guide and then maybe also just how importantly, because of the lack of any ukraine supplemental might be or than what upside that has for the toric regardless.

Well.

So we have factored in a more muted award scenario for this year, as Shawn indicated in his prepared remarks in the prior question. Having said that, we will see some awards, our teams continued to do an excellent job with on-contract growth, which is typically provided from existing budgets, and then the reality is that the uptempo remains high. So I think balancing both new awards on contract growth and the realistic, and the reality I should say of the current uptempo, it gives us confidence in the guide that we issued here today. I think you mentioned INDOPACOM too, there are not exercises, named exercises scheduled at this point in time because, as we've indicated in the past, those are done on odd years. Having said that, we continue to see several demand signals and a higher degree of uptempo in the region, and we continue to provide ways of modernize bases that we're currently operating on such as Kwajalein and the Marshall Islands. Great I appreciate the color I'll jump back in the queue. Thank you. Okay.

Charles L. Prow: So we have factored in a more muted award scenario for this year, as Shawn indicated in his prepared remarks in the prior question. Having said that, we will see some awards, our teams continued to do an excellent job with on-contract growth, which is typically provided from existing budgets, and then the reality is that the uptempo remains high. So I think balancing both new awards on contract growth and the realistic, and the reality I should say of the current uptempo, it gives us confidence in the guide that we issued here today. I think you mentioned INDOPACOM too, there are not exercises, named exercises scheduled at this point in time because, as we've indicated in the past, those are done on odd years. Having said that, we continue to see several demand signals and a higher degree of uptempo in the region, and we continue to provide ways of modernize bases that we're currently operating on such as Kwajalein and the Marshall Islands.

Charles L. Prow: So we have factored in a more muted award scenario for this year, as Shawn indicated in his prepared remarks in the prior question.

So we have factored in a more muted.

Award scenario for this year as Sean indicated in his prepared remarks in the prior question having.

Having said that we will see some awards our teams continued to do an excellent job with on contract growth.

Charles L. Prow: Having said that, we will see some awards, our teams continued to do an excellent job with on-contract growth, which is typically provided from existing budgets, and then the reality is that the uptempo remains high. So I think balancing both new awards on contract growth and the realistic, and the reality I should say of the current uptempo, it gives us confidence in the guide that we issued here today. I think you mentioned INDOPACOM too, there are not exercises, named exercises scheduled at this point in time because, as we've indicated in the past, those are done on odd years. Having said that, we continue to see several demand signals and a higher degree of uptempo in the region, and we continue to provide ways of modernize bases that we're currently operating on such as Kwajalein and the Marshall Islands.

Which is typically provided from existing budgets.

And then the reality is that the op tempo remains high so I think balancing.

Charles L. Prow: So I think balancing both new awards on contract growth and the realistic, and the reality I should say of the current uptempo, it gives us confidence in the guide that we issued here today. I think you mentioned INDOPACOM too, there are not exercises, named exercises scheduled at this point in time because, as we've indicated in the past, those are done on odd years. Having said that, we continue to see several demand signals and a higher degree of uptempo in the region, and we continue to provide ways of modernize bases that we're currently operating on such as Kwajalein and the Marshall Islands.

Both new awards on contract growth and. And the realistic. Realities, I should say of the current op tempo. It gives us confidence in the guys that. But issued here today. You mentioned Indo pay com too. There are not there are not exercises named after size as scheduled at this point in time, because as we've indicated the past those are done on an odd years, having said that. We continue to see several demand signal then a higher degree of op tempo in the region. And we continue to. Provide ways the modernized bases that we're currently operating on such as Kwajalein and the. And the Marshall Islands. Great I appreciate the color I'll jump back in the queue. Thank you. Okay.

And the realistic.

Realities, I should say of the current op tempo.

It gives us confidence in the guys that.

But issued here today.

Charles L. Prow: I think you mentioned INDOPACOM too, there are not exercises, named exercises scheduled at this point in time because, as we've indicated in the past, those are done on odd years. Having said that, we continue to see several demand signals and a higher degree of uptempo in the region, and we continue to provide ways of modernize bases that we're currently operating on such as Kwajalein and the Marshall Islands.

You mentioned Indo pay com too.

There are not there are not exercises named after size as scheduled at this point in time, because as we've indicated the past those are done on an odd years, having said that.

Charles L. Prow: Having said that, we continue to see several demand signals and a higher degree of uptempo in the region, and we continue to provide ways of modernize bases that we're currently operating on such as Kwajalein and the Marshall Islands.

We continue to see several demand signal then a higher degree of op tempo in the region.

And we continue to.

Provide ways the modernized bases that we're currently operating on such as Kwajalein and the.

And the Marshall Islands.

Steven Sackel: Great I appreciate the color, I'll jump back in the queue. Thank you. Okay.

Steven Sackel: Great I appreciate the color, I'll jump back in the queue.

Great I appreciate the color I'll jump back in the queue.

Thank you.

Charles L. Prow: Thank you.

Okay.

Operator: Our next question comes from Sahej Singh with Stifel, please proceed with your question. Hey, guys good morning, I'm on for Bert. How are you good morning. I guess, you've touched on it but. Just to get some more color on it just curious about your view on MRO ramped life cycles. You sort of talked. <unk> talked about the pipeline, but what are you seeing in terms of New awards. How do you then see that impacting. Our normalized margins just any color you could provide there would be helpful. Alright. As we talked last quarter the F <unk>. <unk> Adversary award wasn't an important award it happens to be fixed price as well. It is still under protest we will. At the resolution of that protest assume that we'll get to be able to start that program here. In this year, probably closer to the second half of the year I would assume. Really the only two platforms. We have in retirement now we've talked about are the KC 10 and the. And the <unk>. Both of those are. Been very predictably winding down and other than those two we have no other. At this point in time, we have no other known retirements. Our portfolio of contracts. Okay. If you ask was there anything else to your question is there anything else that you wanted to add on that one just the margin impact would be helpful. And then if I could add on to that I guess. Through maybe early days on Navy test twin. Perfect and Atlantic if you could touch there too. Sure So as Sean indicated I mean, we'll ramp through the year. The margins on the retiree programs are higher because they are at the end of lifecycle. With such a large percentage of our. Backlog in the early stages and we're seeing the. Predictable ramp and the and the profit margins post sale and into the into the base years. Thankfully, we're we're thrilled at the rate and pace. That that's occurring it's just again, it's such a large quantity of. Of new wins over the <unk>. Last three years, which we're thrilled about frankly. Both naval task length Pacific and Atlantic are. Performing exceptionally I couldnt be more thrilled I couldnt be more pleased with the team. We're hearing this directly from our clients, we're not we're not talking to herself on this as I'm sure you know because you follow the industry very closely. <unk>.

Operator: Our next question comes from Sahej Singh with Stifel, please proceed with your question.

Operator: Hey, guys good morning, I'm on for Bert. How are you good morning. I guess, you've touched on it but. Just to get some more color on it just curious about your view on MRO ramped life cycles. You sort of talked. <unk> talked about the pipeline, but what are you seeing in terms of New awards. How do you then see that impacting. Our normalized margins just any color you could provide there would be helpful. Alright. As we talked last quarter the F <unk>. <unk> Adversary award wasn't an important award it happens to be fixed price as well. It is still under protest we will. At the resolution of that protest assume that we'll get to be able to start that program here. In this year, probably closer to the second half of the year I would assume. Really the only two platforms. We have in retirement now we've talked about are the KC 10 and the. And the <unk>. Both of those are. Been very predictably winding down and other than those two we have no other. At this point in time, we have no other known retirements. Our portfolio of contracts. Okay. If you ask was there anything else to your question is there anything else that you wanted to add on that one just the margin impact would be helpful. And then if I could add on to that I guess. Through maybe early days on Navy test twin. Perfect and Atlantic if you could touch there too. Sure So as Sean indicated I mean, we'll ramp through the year. The margins on the retiree programs are higher because they are at the end of lifecycle. With such a large percentage of our. Backlog in the early stages and we're seeing the. Predictable ramp and the and the profit margins post sale and into the into the base years. Thankfully, we're we're thrilled at the rate and pace. That that's occurring it's just again, it's such a large quantity of. Of new wins over the <unk>. Last three years, which we're thrilled about frankly. Both naval task length Pacific and Atlantic are. Performing exceptionally I couldnt be more thrilled I couldnt be more pleased with the team. We're hearing this directly from our clients, we're not we're not talking to herself on this as I'm sure you know because you follow the industry very closely. <unk>.

Sahej Singh: Hey, guys good morning, I'm on for Bert.

Hey, guys good morning, I'm on for Bert.

How are you good morning.

Operator: How are you good morning. I guess, you've touched on it but. Just to get some more color on it just curious about your view on MRO ramped life cycles. You sort of talked. <unk> talked about the pipeline, but what are you seeing in terms of New awards. How do you then see that impacting. Our normalized margins just any color you could provide there would be helpful. Alright. As we talked last quarter the F <unk>. <unk> Adversary award wasn't an important award it happens to be fixed price as well. It is still under protest we will. At the resolution of that protest assume that we'll get to be able to start that program here. In this year, probably closer to the second half of the year I would assume. Really the only two platforms. We have in retirement now we've talked about are the KC 10 and the. And the <unk>. Both of those are. Been very predictably winding down and other than those two we have no other. At this point in time, we have no other known retirements. Our portfolio of contracts. Okay. If you ask was there anything else to your question is there anything else that you wanted to add on that one just the margin impact would be helpful. And then if I could add on to that I guess. Through maybe early days on Navy test twin. Perfect and Atlantic if you could touch there too. Sure So as Sean indicated I mean, we'll ramp through the year. The margins on the retiree programs are higher because they are at the end of lifecycle. With such a large percentage of our. Backlog in the early stages and we're seeing the. Predictable ramp and the and the profit margins post sale and into the into the base years. Thankfully, we're we're thrilled at the rate and pace. That that's occurring it's just again, it's such a large quantity of. Of new wins over the <unk>. Last three years, which we're thrilled about frankly. Both naval task length Pacific and Atlantic are. Performing exceptionally I couldnt be more thrilled I couldnt be more pleased with the team. We're hearing this directly from our clients, we're not we're not talking to herself on this as I'm sure you know because you follow the industry very closely. <unk>.

Operator: How are you? Good morning.

Charles L. Prow: How are you?

Shawn Mural: Good morning.

Operator: I'm doing well, I guess you've touched on it but, just to get some more color on it, just curious about your view on MRO ramped life cycles. You sort of talked about the pipeline, but what are you seeing in terms of new awards? How do you then see that impacting our normalized margins? Just any color you could provide there would be helpful. Alright. As we talked last quarter the F <unk>. <unk> Adversary award wasn't an important award it happens to be fixed price as well. It is still under protest we will. At the resolution of that protest assume that we'll get to be able to start that program here. In this year, probably closer to the second half of the year I would assume. Really the only two platforms. We have in retirement now we've talked about are the KC 10 and the. And the <unk>. Both of those are. Been very predictably winding down and other than those two we have no other. At this point in time, we have no other known retirements. Our portfolio of contracts. Okay. If you ask was there anything else to your question is there anything else that you wanted to add on that one just the margin impact would be helpful. And then if I could add on to that I guess. Through maybe early days on Navy test twin. Perfect and Atlantic if you could touch there too. Sure So as Sean indicated I mean, we'll ramp through the year. The margins on the retiree programs are higher because they are at the end of lifecycle. With such a large percentage of our. Backlog in the early stages and we're seeing the. Predictable ramp and the and the profit margins post sale and into the into the base years. Thankfully, we're we're thrilled at the rate and pace. That that's occurring it's just again, it's such a large quantity of. Of new wins over the <unk>. Last three years, which we're thrilled about frankly. Both naval task length Pacific and Atlantic are. Performing exceptionally I couldnt be more thrilled I couldnt be more pleased with the team. We're hearing this directly from our clients, we're not we're not talking to herself on this as I'm sure you know because you follow the industry very closely. <unk>.

Sahej Singh: I'm doing well, I guess you've touched on it but, just to get some more color on it, just curious about your view on MRO ramped life cycles. You sort of talked about the pipeline, but what are you seeing in terms of new awards? How do you then see that impacting our normalized margins? Just any color you could provide there would be helpful.

Sahej Singh: I'm doing well, I guess you've touched on it but, just to get some more color on it, just curious about your view on MRO ramped life cycles.

I guess, you've touched on it but.

Just to get some more color on it just curious about your view on MRO ramped life cycles.

You sort of talked.

Sahej Singh: You sort of talked about the pipeline, but what are you seeing in terms of new awards? How do you then see that impacting our normalized margins? Just any color you could provide there would be helpful.

<unk> talked about the pipeline, but what are you seeing in terms of New awards. How do you then see that impacting.

Our normalized margins just any color you could provide there would be helpful.

Alright.

As we talked last quarter the F <unk>.

Operator: As we talked last quarter the F-5 Adversary award was an important award, it happens to be fixed price as well, it's still under protest, and we will, at the resolution of that protest assume that we'll get to be able to start that program here, in this year, probably closer to the second half of the year I would assume. Really the only two platforms we have in retirement, now we've talked about are the KC-10 and the T-1A, both of those are, it's been very predictably winding down, and other than those two we have no other, at this point in time we have no other known retirements in our portfolio of contracts. Okay. If you ask was there anything else to your question is there anything else that you wanted to add on that one just the margin impact would be helpful. And then if I could add on to that I guess. Through maybe early days on Navy test twin. Perfect and Atlantic if you could touch there too. Sure So as Sean indicated I mean, we'll ramp through the year. The margins on the retiree programs are higher because they are at the end of lifecycle. With such a large percentage of our. Backlog in the early stages and we're seeing the. Predictable ramp and the and the profit margins post sale and into the into the base years. Thankfully, we're we're thrilled at the rate and pace. That that's occurring it's just again, it's such a large quantity of. Of new wins over the <unk>. Last three years, which we're thrilled about frankly. Both naval task length Pacific and Atlantic are. Performing exceptionally I couldnt be more thrilled I couldnt be more pleased with the team. We're hearing this directly from our clients, we're not we're not talking to herself on this as I'm sure you know because you follow the industry very closely. <unk>.

<unk> Adversary award wasn't an important award it happens to be fixed price as well.

It is still under protest we will.

At the resolution of that protest assume that we'll get to be able to start that program here.

In this year, probably closer to the second half of the year I would assume.

Really the only two platforms. We have in retirement now we've talked about are the KC 10 and the.

Operator: Really the only two platforms we have in retirement, now we've talked about are the KC-10 and the T-1A, both of those are, it's been very predictably winding down, and other than those two we have no other, at this point in time we have no other known retirements in our portfolio of contracts.

And the <unk>.

Both of those are.

Been very predictably winding down and other than those two we have no other.

At this point in time, we have no other known retirements.

Operator: Okay. If you ask was there anything else to your question is there anything else that you wanted to add on that one just the margin impact would be helpful. And then if I could add on to that I guess. Through maybe early days on Navy test twin. Perfect and Atlantic if you could touch there too. Sure So as Sean indicated I mean, we'll ramp through the year. The margins on the retiree programs are higher because they are at the end of lifecycle. With such a large percentage of our. Backlog in the early stages and we're seeing the. Predictable ramp and the and the profit margins post sale and into the into the base years. Thankfully, we're we're thrilled at the rate and pace. That that's occurring it's just again, it's such a large quantity of. Of new wins over the <unk>. Last three years, which we're thrilled about frankly. Both naval task length Pacific and Atlantic are. Performing exceptionally I couldnt be more thrilled I couldnt be more pleased with the team. We're hearing this directly from our clients, we're not we're not talking to herself on this as I'm sure you know because you follow the industry very closely. <unk>.

Sahej Singh: Okay.

Our portfolio of contracts.

Operator: You asked, was there anything else to your question? Is there anything else that you wanted to add on that one? just the margin impact would be helpful. And then if I could add on to that I guess. Through maybe early days on Navy test twin. Perfect and Atlantic if you could touch there too. Sure So as Sean indicated I mean, we'll ramp through the year. The margins on the retiree programs are higher because they are at the end of lifecycle. With such a large percentage of our. Backlog in the early stages and we're seeing the. Predictable ramp and the and the profit margins post sale and into the into the base years. Thankfully, we're we're thrilled at the rate and pace. That that's occurring it's just again, it's such a large quantity of. Of new wins over the <unk>. Last three years, which we're thrilled about frankly. Both naval task length Pacific and Atlantic are. Performing exceptionally I couldnt be more thrilled I couldnt be more pleased with the team. We're hearing this directly from our clients, we're not we're not talking to herself on this as I'm sure you know because you follow the industry very closely. <unk>.

Charles L. Prow: You asked, was there anything else to your question? Is there anything else that you wanted to add on that one?

Okay. If you ask was there anything else to your question is there anything else that you wanted to add on that one just the margin impact would be helpful. And then if I could add on to that I guess.

Operator: Just the margin impact would be helpful, and then if I could add on to that I guess, thinking through maybe early days on Navy test wing in the Pacific and the Atlantic if you could touch there too. Sure So as Sean indicated I mean, we'll ramp through the year. The margins on the retiree programs are higher because they are at the end of lifecycle. With such a large percentage of our. Backlog in the early stages and we're seeing the. Predictable ramp and the and the profit margins post sale and into the into the base years. Thankfully, we're we're thrilled at the rate and pace. That that's occurring it's just again, it's such a large quantity of. Of new wins over the <unk>. Last three years, which we're thrilled about frankly. Both naval task length Pacific and Atlantic are. Performing exceptionally I couldnt be more thrilled I couldnt be more pleased with the team. We're hearing this directly from our clients, we're not we're not talking to herself on this as I'm sure you know because you follow the industry very closely. <unk>.

Sahej Singh: Just the margin impact would be helpful, and then if I could add on to that I guess, thinking through maybe early days on Navy test wing in the Pacific and the Atlantic if you could touch there too.

Through maybe early days on Navy test twin.

Perfect and Atlantic if you could touch there too.

Sure So as Sean indicated I mean, we'll ramp through the year.

Operator: Sure, so as Shawn indicated I mean, we'll ramp through the year, the margins on the retiring programs are higher because they are at the end of the lifecycle and with such a large percentage of our backlog in the early stages, and we're seeing the predictable ramp and the profit margins post sale and into the into the base years. And frankly we're thrilled at the rate and pace that that's occurring, it's just again, it's such a large quantity of new wins over the last three years, which we're thrilled about frankly. Both naval task wings Pacific and Atlantic are performing exceptionally, I couldn't be more thrilled, I couldn't be more pleased with the team, we're hearing this directly from our clients, we're not talking to ourselves on this. As I'm sure you know because you follow the industry very closely, the development of pilots can be fully capable, is a significant significant measurement for both our Navy and Air Force clients, they can train pilots quickly enough to meet their needs. And again, we're pleased and privileged to play an important role, and again picking up the pace, the rate and pace by which pilots can be trained. Sure. Thanks, Chuck that's helpful. And I guess following up on one of the questions that was asked on and they'll pay com. And I was reading that the Pacific excuse me the turns initiatives. Should grow to about 14, bill in FY 'twenty for something around that and just curious if you think there is upside. True that it budgets are appropriate. And what do you think that could look like. Okay. I think the way to look at that is the performance that we posted in the second half of the year. The fact that we that we. Booked more revenue in the second half of the year than the first half. Even though the exercise was in the first half of the year. That is directly attributed attributable. Two the PDI. Insurance initiative. Again, the op tempo with high that budget is a reality because these are in many cases new requirements. But again kind of working through the. The muted New award. New award environment, but the ability to grow on contract. Good balanced and again a bit of Longwood way of answering your question, but we remain very bullish on. On our growth and then the breakout region. No. Thanks that is helpful. And then maybe Sean just one last one for you just for the models how are you thinking through interest rates, especially as it is concerned. Deleveraging process. Yeah. So. We've made tremendous progress in deleveraging, we are obviously very focused on that. As we go into 'twenty four you saw where we think it will be less. Less than three at the end of at the end of 'twenty four. From an interest expense standpoint. It's comparable to what we had in 2023. We will look at. <unk> opportunities as interest rates change and as as that leverage ratio comes down. <unk> taken advantage of.

Charles L. Prow: Sure, so as Shawn indicated I mean, we'll ramp through the year, the margins on the retiring programs are higher because they are at the end of the lifecycle and with such a large percentage of our backlog in the early stages, and we're seeing the predictable ramp and the profit margins post sale and into the into the base years. And frankly we're thrilled at the rate and pace that that's occurring, it's just again, it's such a large quantity of new wins over the last three years, which we're thrilled about frankly. Both naval task wings Pacific and Atlantic are performing exceptionally, I couldn't be more thrilled, I couldn't be more pleased with the team, we're hearing this directly from our clients, we're not talking to ourselves on this. As I'm sure you know because you follow the industry very closely, the development of pilots can be fully capable, is a significant significant measurement for both our Navy and Air Force clients, they can train pilots quickly enough to meet their needs. And again, we're pleased and privileged to play an important role, and again picking up the pace, the rate and pace by which pilots can be trained.

The margins on the retiree programs are higher because they are at the end of lifecycle.

With such a large percentage of our.

Backlog in the early stages and we're seeing the.

Predictable ramp and the and the profit margins post sale and into the into the base years.

Thankfully, we're we're thrilled at the rate and pace.

Charles L. Prow: And frankly we're thrilled at the rate and pace that that's occurring, it's just again, it's such a large quantity of new wins over the last three years, which we're thrilled about frankly. Both naval task wings Pacific and Atlantic are performing exceptionally, I couldn't be more thrilled, I couldn't be more pleased with the team, we're hearing this directly from our clients, we're not talking to ourselves on this. As I'm sure you know because you follow the industry very closely, the development of pilots can be fully capable, is a significant significant measurement for both our Navy and Air Force clients, they can train pilots quickly enough to meet their needs. And again, we're pleased and privileged to play an important role, and again picking up the pace, the rate and pace by which pilots can be trained.

That that's occurring it's just again, it's such a large quantity of.

Of new wins over the <unk>.

Last three years, which we're thrilled about frankly.

Both naval task length Pacific and Atlantic are.

Charles L. Prow: Both naval task wings Pacific and Atlantic are performing exceptionally, I couldn't be more thrilled, I couldn't be more pleased with the team, we're hearing this directly from our clients, we're not talking to ourselves on this. As I'm sure you know because you follow the industry very closely, the development of pilots can be fully capable, is a significant significant measurement for both our Navy and Air Force clients, they can train pilots quickly enough to meet their needs. And again, we're pleased and privileged to play an important role, and again picking up the pace, the rate and pace by which pilots can be trained.

Performing exceptionally I couldnt be more thrilled I couldnt be more pleased with the team.

We're hearing this directly from our clients, we're not we're not talking to herself on this as I'm sure you know because you follow the industry very closely.

Charles L. Prow: As I'm sure you know because you follow the industry very closely, the development of pilots can be fully capable, is a significant significant measurement for both our Navy and Air Force clients, they can train pilots quickly enough to meet their needs. And again, we're pleased and privileged to play an important role, and again picking up the pace, the rate and pace by which pilots can be trained.

<unk>.

The development of pilots can be fully capable. <unk> is a significant significant. As you mentioned are both our Navy and Air Force clients. They can train pilots quickly enough to meet their needs. And again, where we're pleased and privileged to play an important role. And again picking up the pace the rate and pace by which pilot that can be trained. Sure. Thanks, Chuck that's helpful. And I guess following up on one of the questions that was asked on and they'll pay com. And I was reading that the Pacific excuse me the turns initiatives. Should grow to about 14, bill in FY 'twenty for something around that and just curious if you think there is upside. True that it budgets are appropriate. And what do you think that could look like. Okay. I think the way to look at that is the performance that we posted in the second half of the year. The fact that we that we. Booked more revenue in the second half of the year than the first half. Even though the exercise was in the first half of the year. That is directly attributed attributable. Two the PDI. Insurance initiative. Again, the op tempo with high that budget is a reality because these are in many cases new requirements. But again kind of working through the. The muted New award. New award environment, but the ability to grow on contract. Good balanced and again a bit of Longwood way of answering your question, but we remain very bullish on. On our growth and then the breakout region. No. Thanks that is helpful. And then maybe Sean just one last one for you just for the models how are you thinking through interest rates, especially as it is concerned. Deleveraging process. Yeah. So. We've made tremendous progress in deleveraging, we are obviously very focused on that. As we go into 'twenty four you saw where we think it will be less. Less than three at the end of at the end of 'twenty four. From an interest expense standpoint. It's comparable to what we had in 2023. We will look at. <unk> opportunities as interest rates change and as as that leverage ratio comes down. <unk> taken advantage of.

<unk> is a significant significant.

As you mentioned are both our Navy and Air Force clients. They can train pilots quickly enough to meet their needs.

Charles L. Prow: And again, we're pleased and privileged to play an important role, and again picking up the pace, the rate and pace by which pilots can be trained.

And again, where we're pleased and privileged to play an important role.

And again picking up the pace the rate and pace by which pilot that can be trained.

Operator: Sure, thanks, Chuck that's helpful, and I guess following up on one of the questions that was asked on INDOPACOM, and I was reading that the Pacific, excuse me, the turns initiatives should grow to about 14 bill in FY '24, something around that. And just curious, if you think there is upside to that if budgets are appropriate and what do you think that could look like? Okay. I think the way to look at that is the performance that we posted in the second half of the year. The fact that we that we. Booked more revenue in the second half of the year than the first half. Even though the exercise was in the first half of the year. That is directly attributed attributable. Two the PDI. Insurance initiative. Again, the op tempo with high that budget is a reality because these are in many cases new requirements. But again kind of working through the. The muted New award. New award environment, but the ability to grow on contract. Good balanced and again a bit of Longwood way of answering your question, but we remain very bullish on. On our growth and then the breakout region. No. Thanks that is helpful. And then maybe Sean just one last one for you just for the models how are you thinking through interest rates, especially as it is concerned. Deleveraging process. Yeah. So. We've made tremendous progress in deleveraging, we are obviously very focused on that. As we go into 'twenty four you saw where we think it will be less. Less than three at the end of at the end of 'twenty four. From an interest expense standpoint. It's comparable to what we had in 2023. We will look at. <unk> opportunities as interest rates change and as as that leverage ratio comes down. <unk> taken advantage of.

Sahej Singh: Sure, thanks, Chuck that's helpful, and I guess following up on one of the questions that was asked on INDOPACOM, and I was reading that the Pacific, excuse me, the turns initiatives should grow to about 14 bill in FY '24, something around that. And just curious, if you think there is upside to that if budgets are appropriate and what do you think that could look like?

Sure. Thanks, Chuck that's helpful.

And I guess following up on one of the questions that was asked on and they'll pay com.

And I was reading that the Pacific excuse me the turns initiatives.

Should grow to about 14, bill in FY 'twenty for something around that and just curious if you think there is upside.

True that it budgets are appropriate.

And what do you think that could look like.

Operator: I think the, a way to look at that is the performance that we posted in the second half of the year. The fact that we booked more revenue in the second half of the year than the first half, even though the exercise was in the first half of the year, that is directly attributed attributable to the PDI, the Pacific Deterrence Initiative. Again, the uptempo is high, the budget is a reality, because these are in many cases new requirements, but again, kind of working through the muted new award environment, but the ability to grow on contract it's a good balance and again a bit of Longwood way of answering your question, but we remain very bullish on growth in the INDOPACOM region. No. Thanks that is helpful. And then maybe Sean just one last one for you just for the models how are you thinking through interest rates, especially as it is concerned. Deleveraging process. Yeah. So. We've made tremendous progress in deleveraging, we are obviously very focused on that. As we go into 'twenty four you saw where we think it will be less. Less than three at the end of at the end of 'twenty four. From an interest expense standpoint. It's comparable to what we had in 2023. We will look at. <unk> opportunities as interest rates change and as as that leverage ratio comes down. <unk> taken advantage of.

Charles L. Prow: I think the, a way to look at that is the performance that we posted in the second half of the year. The fact that we booked more revenue in the second half of the year than the first half, even though the exercise was in the first half of the year, that is directly attributed attributable to the PDI, the Pacific Deterrence Initiative. Again, the uptempo is high, the budget is a reality, because these are in many cases new requirements, but again, kind of working through the muted new award environment, but the ability to grow on contract it's a good balance and again a bit of Longwood way of answering your question, but we remain very bullish on growth in the INDOPACOM region.

Charles L. Prow: I think the, a way to look at that is the performance that we posted in the second half of the year.

Okay.

I think the way to look at that is the performance that we posted in the second half of the year.

Charles L. Prow: The fact that we booked more revenue in the second half of the year than the first half, even though the exercise was in the first half of the year, that is directly attributed attributable to the PDI, the Pacific Deterrence Initiative. Again, the uptempo is high, the budget is a reality, because these are in many cases new requirements, but again, kind of working through the muted new award environment, but the ability to grow on contract it's a good balance and again a bit of Longwood way of answering your question, but we remain very bullish on growth in the INDOPACOM region.

The fact that we that we.

Booked more revenue in the second half of the year than the first half.

Even though the exercise was in the first half of the year.

That is directly attributed attributable.

Two the PDI.

Insurance initiative.

Charles L. Prow: Again, the uptempo is high, the budget is a reality, because these are in many cases new requirements, but again, kind of working through the muted new award environment, but the ability to grow on contract it's a good balance and again a bit of Longwood way of answering your question, but we remain very bullish on growth in the INDOPACOM region.

Again, the op tempo with high that budget is a reality because these are in many cases new requirements.

But again kind of working through the.

The muted New award.

New award environment, but the ability to grow on contract.

Good balanced and again a bit of Longwood way of answering your question, but we remain very bullish on.

Operator: No, thanks that is helpful, and then maybe Shawn just one last one for you, just for the models, how are you thinking through interest rates, especially as it's concerned the deleveraging process? Yeah. So. We've made tremendous progress in deleveraging, we are obviously very focused on that. As we go into 'twenty four you saw where we think it will be less. Less than three at the end of at the end of 'twenty four. From an interest expense standpoint. It's comparable to what we had in 2023. We will look at. <unk> opportunities as interest rates change and as as that leverage ratio comes down. <unk> taken advantage of.

Sahej Singh: No, thanks that is helpful, and then maybe Shawn just one last one for you, just for the models, how are you thinking through interest rates, especially as it's concerned the deleveraging process?

On our growth and then the breakout region.

No. Thanks that is helpful. And then maybe Sean just one last one for you just for the models how are you thinking through interest rates, especially as it is concerned.

Deleveraging process.

Shawn Mural: So we've made tremendous progress in deleveraging, we are obviously very focused on that as we go into '24 you saw where we think it we'll be less than three at the end of at the end of '24. From an interest expense standpoint, it's comparable to what we had in 2023, we will look at opportunities as interest rates change, and as as that leverage ratio comes down. We've taken advantage of improved grid pricing previously, we'll look to do that again, kind of as as appropriate in improve upon our position as we go throughout the year. Team did a great job, couldn't be more happy with the cash that was delivered in the quarter, and we'll look to continue to do those things throughout the year. Well. Thank you look congrats on a great quarter, guys and we'll talk to you next quarter. Thank you thanks.

Yeah. So.

We've made tremendous progress in deleveraging, we are obviously very focused on that.

As we go into 'twenty four you saw where we think it will be less.

Less than three at the end of at the end of 'twenty four.

Shawn Mural: From an interest expense standpoint, it's comparable to what we had in 2023, we will look at opportunities as interest rates change, and as as that leverage ratio comes down. We've taken advantage of improved grid pricing previously, we'll look to do that again, kind of as as appropriate in improve upon our position as we go throughout the year. Team did a great job, couldn't be more happy with the cash that was delivered in the quarter, and we'll look to continue to do those things throughout the year.

Shawn Mural: From an interest expense standpoint, it's comparable to what we had in 2023, we will look at opportunities as interest rates change, and as as that leverage ratio comes down.

From an interest expense standpoint.

It's comparable to what we had in 2023.

We will look at.

<unk> opportunities as interest rates change and as as that leverage ratio comes down.

Shawn Mural: We've taken advantage of improved grid pricing previously, we'll look to do that again, kind of as as appropriate in improve upon our position as we go throughout the year. Team did a great job, couldn't be more happy with the cash that was delivered in the quarter, and we'll look to continue to do those things throughout the year.

Shawn Mural: We've taken advantage of improved grid pricing previously, we'll look to do that again, kind of as as appropriate in improve upon our position as we go throughout the year.

<unk> taken advantage of.

Improved grid pricing previously, we'll look to do that again kind of as as appropriate in and improve upon our position. As we go throughout the year team did a great job couldnt be more happy with. The cash that was delivered in the quarter and we'll look to continue to do those things throughout the year. Well. Thank you look congrats on a great quarter, guys and we'll talk to you next quarter. Thank you thanks.

Shawn Mural: Team did a great job, couldn't be more happy with the cash that was delivered in the quarter, and we'll look to continue to do those things throughout the year.

As we go throughout the year team did a great job couldnt be more happy with.

The cash that was delivered in the quarter and we'll look to continue to do those things throughout the year.

Shawn Mural: Well, thank you and congrats on a great quarter, guys and we'll talk to you next quarter. Thank you thanks.

Sahej Singh: Well, thank you and congrats on a great quarter, guys and we'll talk to you next quarter.

Well. Thank you look congrats on a great quarter, guys and we'll talk to you next quarter.

Thank you thanks.

Shawn Mural: Thank you thanks.

Charles L. Prow: Thank you

Shawn Mural: Thanks.

Operator: As a reminder, if you would like to ask a question, please press star one on your telephone keypad. And it appears that there are no further questions at this time, I would now like to turn the floor back over to Chuck Prow for closing comments.

And it appears that there are no further questions at this time I would now like to turn the floor back over to Chuck Prow for closing comments.

Charles L. Prow: Thank you very much and thank you all for your questions, we've juts completed what we think to be a very very solid year and we look forward to talking to you again at the end of the first quarter and we may se each other in the conferences at the not to distant future. Talk to you soon, bye.

Uh huh.

Yes, Scott completed at what we think could be a very very solid year and we look forward to talking to you again at the end of the first quarter and then we may see Ngls conferences here in the not too distant future talk you soon bye.

Operator: This concludes today's teleconference, you may disconnect your lines at this time. Thank you for your participation.

Q4 2023 V2X Inc Earnings Call

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