VSE Reports First Quarter 2004 Results
Revenues Up 61%, Earnings Up 63%
Alexandria, Virginia, April 26, 2004 VSE Corporation (Nasdaq: VSEC)
reported consolidated financial results for the three months ended March 31,
2004 and 2003, as follows:
VSE Corporation and Subsidiaries
Consolidated Statements of Income (unaudited)
(dollars in thousands, except share data)
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Three months ended March 31,
2004 2003
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Revenues, principally from contracts $ 42,610 $ 26,462
Costs and expenses of contracts 41,463 25,765
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Gross profit 1,147 697
Selling, general and administrative expenses 12 42
Interest (income), net (19) (16)
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Income before income taxes 1,154 671
Provision for income taxes 446 239
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Net income $ 708 $ 432
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Weighted average shares outstanding:
Basic 2,216,216 2,187,038
Diluted 2,286,613 2,224,845
Earnings per share:
Basic $ .32 $ .20
Diluted .31 .19
Financial Results
Commenting on the financial results, VSE Chairman, President and CEO/COO
Don Ervine said, "Consolidated revenues and earnings for the first quarter of
2004 are in line with, and somewhat stronger than, our expectations for the
period."
"Our funded backlog increased to about $147 million at March 31, 2004,
primarily due to work ordered under our BAV contract, compared to about $83
million at December 31, 2003, suggesting continued near term revenue growth. Our
earnings improved during the quarter based on the increased volume of work we
performed and on our ability to allocate corporate fixed costs over a larger
revenue base."
"As identified in other publicly available reports, such as our recently
filed SEC Form 10-K and the 10-Qs we will file throughout the year, VSE's
interim financial results are subject to numerous performance and risk factors,
some of which may be offsetting in summary consolidated reports such as this
earnings release, and to timing differences, including the receipt of contract
funding documents and award fee evaluations. We invite shareholders to refer to
these public documents for additional detailed information on our contract
programs, sources of funding, and results of operations and to better understand
the variations and trends in our reported results."
VSE provides diversified services to the engineering, energy and
environment, defense, 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.
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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