1Q21 Results. Vectrus' 1Q21 revenue was $434 million, up 23% y-o-y, with organic growth of 4%. Adjusted EBITDA was $20.7 million, up from $14.7 million last year. Adjusted EBITDA margin increased 60 basis points to 4.8%. EPS was $1.02 compared to $0.74, while adjusted EPS was $1.20 in 1Q21 versus $0.82 last year. We had forecast revenue of $400 million, adjusted EBITDA of $19.3 million, and EPS of $0.89.Winning Never Gets Old. Vectrus continued to be award significant contracts during the first quarter. Significantly, a number of the contracts play into the Company's converged infrastructure market leadership position. The contract wins continue to diversify Vectrus' client base and geographical locations.Backlog and Pipeline. Pro forma backlog, which includes awards under protest, such as OMDAC-SWACA, grew to $5.8 billion at the end of the first quarter, up from $5.1 billion at year-end. Pro forma TTM book-to-bill was 1.7x at quarter's end. Vectrus' pipeline continues to grow and was up to $12.0 billion at March 31st, from $11.1 billion at year-end. Given the increasing market opportunities available to the Company we believe the pipeline can continue to increase.Projections. Following the strong first quarter, management raised the low-end and mid-point of its guidance. We are mostly maintaining our projections for the second quarter. We are projecting revenue of $410 million, with a significant portion of the growth driven by the Zenetex acquisition, EPS of $0.95, and adjusted EBITDA of $20.3 million. For the full year, we are projecting revenue of $1.73 billion, EPS of $4.02, and adjusted EBITDA of $87.7 million.Maintaining Outperform. We are maintaining our Outperform rating and $62 twelve month price target. The strong first quarter results set the table for an excellent 2021, in our view. With the recent acquisitions, Vectrus now plays in a larger pool and market trends support growth in the converged infrastructure market. Read More >>