While the coronavirus pandemic has slammed many Colorado Springs businesses, defense contractor Vectrus barely felt its impact in the first quarter, the company told stockholders Tuesday.
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The Colorado Springs-based defense contractor reported "minimal" impact from the virus, reducing revenue by about $2 million and profits by about 2 cents a share, Vectrus CEO Chuck Prow said in a conference call with stock analysts. The pandemic is expected to trigger a bigger cut in revenue during the current quarter — up to $25 million — from reduced employee levels on current contracts but Prow said the company will recover that revenue in later quarters as employment levels return to normal.
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To prepare for the pandemic, Vectrus drew $115 million from a revolving credit line, which will increase its interest costs by about $200,000. The company also said it received some additional work from the pandemic for increased training at Keesler Air Force Base, providing network connections for military hospital ships Mercy and Comfort while deployed and a small contract to provide personal protective equipment to the Army.
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During the first quarter, Vectrus said revenue grew 7.9% from a year earlier to $351.7 million, while profits jumped 22.5% during the same period to $8.67 million, or 74 cents a share.