Exhibit 99.1
VSE Corporation
VSE REPORTS SECOND QUARTER 2005 RESULTS
Company Earns $0.74 Per Share Diluted in Quarter
Alexandria, Virginia, July 28, 2005 - VSE Corporation (Nasdaq: VSEC)
reported consolidated financial results for the three- and six-month periods
ended June 30, 2005 and 2004, as follows:
VSE Corporation and Subsidiaries
Consolidated Statements of Income (unaudited)
(dollars in thousands, except share data)
- -----------------------------------------------------------------------------------
Three Months Six Months
2005 2004 2005 2004
---- ---- ---- ----
Revenues, principally from contracts $72,682 $54,037 $138,601 $96,646
Costs and expenses of contracts 69,716 52,424 133,471 93,886
------- ------- -------- -------
Gross profit 2,966 1,613 5,130 2,760
Selling, general and administrative
expenses 111 245 167 257
Interest income, net (22) (26) (41) (45)
------- ------- -------- -------
Income before income taxes 2,877 1,394 5,004 2,548
Provision for income taxes 1,112 539 1,935 985
------- ------- -------- -------
Income from continuing operations 1,765 855 3,069 1,563
Loss from discontinued operations,
net of tax benefit - (1) - (1)
------- ------- -------- -------
Net income $ 1,765 $ 854 $ 3,069 $ 1,562
======= ======= ======== =======
Basic earnings per share:
Income from continuing operations $ .76 $ .38 $ 1.34 $ .70
Loss from discontinued operations .00 .00 .00 .00
------- ------- -------- -------
Net income $ .76 $ .38 $ 1.34 $ .70
======= ======= ======== =======
Diluted earnings per share:
Income from continuing operations $ .74 $ .37 $ 1.30 $ .68
Loss from discontinued operations .00 .00 .00 .00
------- ------- -------- -------
Net income $ .74 $ .37 $ 1.30 $ .68
======= ======= ======== =======
Weighted average shares outstanding:
Basic 2,310,864 2,221,559 2,295,182 2,218,887
Diluted 2,377,254 2,305,911 2,365,668 2,296,262
VSE revenues increased about $18.6 million (up 35%) for the quarter and
about $42.0 million (up 43%) for the six months compared to the same periods of
last year, primarily due to increases associated with VSE's Army work in Kuwait
and Iraq (TBPS Program), our Taiwan ship transfer work, revenues under the Rapid
Response contract, increased Navy waterfront work, and an increase in military
refurbishment services for U.S. Army Reserve equipment.
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VSE Corporation News Release (continued)
VSE net income increased about $911 thousand (up 107%) for the quarter and
about $1.5 million (up 96%) for the six months compared to the same periods of
last year, primarily due to profits associated with work on the TBPS Program.
Profits associated with the increase in military equipment refurbishment
services, the increased revenues associated with Navy ship transfer and
waterfront work, an increase in Management Sciences Division consulting
services, and a decrease in the losses incurred under the Rapid Response
contract in 2005 as compared to 2004 also contributed to an increase in pretax
income during the 2005 periods as compared to the same periods of 2004.
Commenting on the financial results, VSE Chairman, President and CEO/COO
Don Ervine said, "Second quarter revenues of about $73 million are a record for
the company, reflecting the boost provided by our work for the Army in Kuwait
and Iraq and the Taiwan ship transfer work begun last year, as well as growth in
other programs. Net income of about $1.8 million for the quarter ($.74 per share
diluted) is keeping pace with the increase in revenues, and margins in some of
our work are benefited by the higher volume."
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 the fiscal year ended
December 31, 2004, VSE reported consolidated revenues of $216 million and
earnings of $3.4 million ($1.49 per share diluted).
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.
As identified in other publicly available reports filed by VSE, such as the
recently filed SEC Form 10-K for fiscal year 2004 and the 10-Qs VSE will file
throughout 2005, the Company's interim financial results are subject to numerous
performance and risk factors, some of which may be offsetting, and to timing
differences, including the receipt of contract funding documents and award fee
evaluations. VSE invites shareholders and others to refer to these public
documents for additional detailed information on contract programs, sources of
funding, and results of operations to better understand the variations and
trends in reported quarterly results.
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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