Exhibit 99.1
VSE Reports First Quarter 2003 Results
Company Earns $0.20 Per Share in Quarter
Alexandria, Virginia, April 28, 2003 - VSE Corporation (Nasdaq: VSEC)
reported the following consolidated financial results for the three months
ended March 31, 2003 and 2002:
VSE Corporation and Subsidiaries
Consolidated Statements of Income (unaudited)
(dollars in thousands, except share data)
Three months ended March 31,
2003 2002
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Revenues, principally from contracts $ 26,462 $ 29,080
Costs and expenses of contracts 25,765 28,816
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Gross profit 697 264
Selling, general and administrative expenses 42 28
Interest (income) expense, net (16) 17
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Income before income taxes 671 219
Provision for income taxes 239 100
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Net income $ 432 $ 119
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Weighted average shares outstanding:
Basic 2,187,038 2,150,540
Diluted 2,224,845 2,150,540
Earnings per share:
Basic $ .20 $ .06
Diluted .19 .06
Financial Results
Commenting on the financial results, VSE Chairman, President and CEO/COO
Don Ervine said, "Our revenues for the quarter declined about $2.6 million (a 9%
decrease) compared to the same quarter of last year, primarily due to our
decision to discontinue marketing TTD services and to a decrease in the amount
of subcontract costs in our Fleet Maintenance Division (FMD) revenues due, in
part, to the deployment of Navy ships to the Middle East. Our net income for the
quarter increased about $313 thousand (263%) compared to the same quarter of
last year, primarily due to a reduction of losses associated with TTD work and
to an elimination of losses in FMD work. The TTD net loss from operations for
the quarter ended March 31, 2003, was approximately $60 thousand."
"As indicated in our results for the first quarter, we expect improving
profitability in 2003 compared to 2002 due to the reduction of losses associated
with the TTD work and to improved profit margins on the work performed by new
divisions started in 2002."
VSE provides diversified services to the engineering, energy and
environment, security, and defense, services and homeland security markets from
more than 15 locations across the United States and around the world.
For more information on VSE services and products, please see the Company's
web site at www.vsecorp.com or contact Len Goldstein, Director of Business and
New Product Development at (703)317-5202.
VSE shares are traded on Nasdaq under the symbol "VSEC."
News Contact: C. S. Weber, CAO, (703) 329-4770
This news release contains statements which, to the extent they are not
recitations of historical fact, constitute "forward looking statements" under
federal securities laws. All such statements are intended to be subject to the
safe harbor protection provided by applicable securities laws. For discussions
identifying some important factors that could cause actual VSE results to differ
materially from those anticipated in the forward looking statements in this news
release, see VSE's public filings with the Securities and Exchange Commission.