VSE Reports Second Quarter 2003 Results
Company Earns $0.20 Per Share in Quarter
Alexandria, Virginia, July 25, 2003 - VSE Corporation (Nasdaq: VSEC)
reported the following consolidated financial results for the three- and six-
month periods ended June 30, 2003 and 2002:
VSE Corporation and Subsidiaries
Consolidated Statements of Income (unaudited)
(dollars in thousands, except share data)
- -----------------------------------------------------------------------------------------
Three Months Six Months
2003 2002 2003 2002
---- ---- ---- ----
Revenues, principally from contracts $ 29,368 $ 36,353 $ 55,830 $ 65,433
Costs and expenses of contracts 28,608 35,835 54,373 64,651
--------- --------- --------- ---------
Gross profit 760 518 1,457 782
Selling, general and administrative expenses 48 35 90 63
Interest (income) expense (15) 29 (31) 46
--------- --------- --------- ---------
Pretax income 727 454 1,398 673
Provision for income taxes 291 180 530 280
--------- --------- --------- ---------
Net income $ 436 $ 274 $ 868 $ 393
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Weighted average shares outstanding:
Basic 2,188,635 2,173,790 2,187,841 2,163,826
Diluted 2,220,333 2,199,866 2,222,576 2,188,685
Earnings per share:
Basic $ .20 $ .12 $ .40 $ .18
Diluted .20 .12 .39 .18
Financial Results
Commenting on the financial results, VSE Chairman, President and CEO/COO
Don Ervine said, "Our revenues declined about $7.0 million (a 19% decrease) for
the quarter and about $9.6 million (a 15% decrease) for the six months compared
to the same periods of last year, primarily due to a lower volume of work in BAV
and Fleet Maintenance divisions and to our decision to discontinue marketing TTD
services. Our net income increased about $162 thousand (59%) for the quarter and
about $475 thousand (121%) for the six months compared to the same periods of
last year, primarily due to the absence of losses associated with TTD work and
to an elimination of losses in Fleet Maintenance Division work."
"As indicated by our recent news releases on contract awards and on new
work beginning at VSE, we anticipate favorable trends in our revenues and
profitability."
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.
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