Vectrus CEO says company is working on LOGCAP V transition -- but COVID-19 may alter timeline

By Marjorie Censer / May 12, 2020 at 5:10 PM

The chief executive of Vectrus said today the company expects to have a "better understanding" of the transition timeline for the Logistics Civil Augmentation Program, or LOGCAP V, within two months after the coronavirus crisis has added new challenges.

In a call with analysts, Chuck Prow said the military has restricted some travel as a result of the ongoing outbreak.

"Some physical site visits are necessary to transition," he said, particularly pointing to Kwajalein Atoll in the Marshall Islands.

Prow also said three of the four protests related to the program have been adjudicated.

Though one protest remains active, "we believe this protest is winding down," Prow said.

"I do believe that we're in the end stages of the process," he added.

Meanwhile, Vectrus today reported sales during its most recent quarter of $352 million, up 8% from the same three-month period a year earlier. The company said quarterly profit totaled $8.7 million, up almost 23% from the prior year.

Vectrus said the coronavirus outbreak had a "minimal impact" on sales and profit in the first quarter, but that it will have a $20 million to $25 million effect in the second quarter.