Exhibit 99.1
VSE REPORTS FIRST QUARTER 2006 RESULTS
Revenues Decrease 4%, Earnings Increase 14%
Alexandria, Virginia, April 26, 2006 - VSE Corporation (Nasdaq: VSEC)
reported consolidated financial results for the three months ended March 31,
2006 and 2005, 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,
2006 2005
---- ----
Revenues, principally from contracts $ 63,300 $ 65,919
Costs and expenses of contracts 60,912 63,755
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Gross profit 2,388 2,164
Selling, general and administrative expenses 123 56
Interest (income), net (137) (19)
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Income before income taxes 2,402 2,127
Provision for income taxes 917 823
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Net income $ 1,485 $ 1,304
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Earnings per share:
Basic $ .63 $ .57
Diluted .61 .55
Weighted average shares outstanding:
Basic 2,361,261 2,279,326
Diluted 2,433,317 2,353,954
Financial Results
Commenting on the financial results, VSE Chairman, President and CEO/COO
Don Ervine said, "During the first quarter of 2006, VSE revenues decreased due
to a reduction in volume of certain programs, partially offset by increases in
other areas. Earnings increased based on an increase in profits earned under our
BAV ship transfer work. As the year progresses, we anticipate that revenues from
existing backlog previously announced will accelerate, and that our results for
the year will exceed our results for last year."
"Our funded backlog was about $262 million at March 31, 2006, compared to
about $276 million at December 31, 2005, which positions us well for the
remainder of 2006. We look forward to reporting on our progress as the year
proceeds."
-more-
VSE Corporation News Release (continued)
Accounting for Stock-based Compensation
Effective January 1, 2006, VSE adopted the fair value recognition
provisions of FASB Statement 123(R) to account for stock-based compensation. As
a result, VSE's net income was reduced by about $39,000 for the three-month
period ended March 31, 2006, or about $.02 per share basic and diluted. Results
for prior period have not been restated. On a pro forma basis, VSE net income
for the three-month period ended March 31, 2005, would have been reduced by
about $62,000 or about $.03 per share basic and diluted had the company adopted
SFAS 123(R) in the prior-year period.
Safe Harbor
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, please see VSE's public filings with the Securities and Exchange
Commission.
VSE provides diversified services to the engineering, energy and
environment, defense, and homeland security markets from more than 20 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
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