EXHIBIT 99.1
VSE REPORTS THIRD QUARTER 2007 RESULTS
Company Earns $0.66 Per Share Diluted in Quarter
Alexandria, Virginia, October 31, 2007 - VSE Corporation (Nasdaq: VSEC)
reported the following unaudited consolidated financial results for the periods
ended September 30, 2007 and 2006:
VSE Corporation and Subsidiaries
Consolidated Statements of Income (unaudited)
(in thousands, except share and per share amounts)
Three Months Nine Months
2007 2006 2007 2006
---- ---- ---- ----
Revenues $ 174,692 $ 103,630 $ 455,025 $ 261,774
Costs and expenses of contracts 168,747 100,457 438,899 252,723
--------- --------- --------- ---------
Gross profit 5,945 3,173 16,126 9,051
Selling, general and administrative
expenses 576 199 970 617
Interest income, net (161) (56) (532) (276)
--------- --------- --------- ---------
Income before income taxes 5,530 3,030 15,688 8,710
Provision for income taxes 2,171 1,141 6,053 3,309
--------- --------- --------- ---------
Net income $ 3,359 $ 1,889 $ 9,635 $ 5,401
========= ========= ========= =========
Earnings per share:
Basic $ .67 $ .40 $ 1.96 $ 1.14
Diluted .66 .39 1.94 1.11
Weighted average shares outstanding:
Basic 5,024,416 4,742,198 4,922,056 4,732,786
Diluted 5,063,279 4,842,200 4,977,371 4,849,671
Financial Results
Commenting on the financial results, VSE Chairman and Chief Executive Officer
Don Ervine said, "Revenues increased by approximately $71 million (69%) and
$193 million (74%) for the three- and nine-month periods ended September 30,
2007, as compared to the same periods of 2006. The primary reasons for the
increases were 1) revenues associated with the U.S. Army Equipment Support
Program and other revenues under VSE's R2 contract; 2) revenues from the
Treasury Seized Property Management Program; 3) revenues associated with a
U.S. Navy ship transfer to India; 4) revenues from VSE's recently acquired ICRC
subsidiary; and 5) an increase in Army equipment refurbishment services."
"Net income increased by approximately $1.5 million (78%) and $4.2 million (78%)
for the three-month and nine-month periods ended September 30, 2007, as compared
to the same periods of 2006. The increases were primarily due to 1) increased
profitability on certain Army and Army Reserve programs, 2) increased revenues
associated with the Army Equipment Support Program, and 3) earnings from the
operations of ICRC acquired in June 2007."
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VSE Corporation News Release (continued)
"Bookings for the nine-month period ended September 30, 2007, were approximately
$603 million compared to revenues of approximately $455 million for the same
nine-month period. Funded backlog at September 30, 2007, was approximately
$478 million, including approximately $48 million in backlog from the
acquisition of ICRC. This compares favorably to a funded backlog of
approximately $299 million at December 31, 2006, and approximately $226 million
at September 30, 2006. We believe these bookings and funded backlog indicators
are positive for our continued growth for the remainder of 2007 and into the
first half of 2008. We look forward to reporting on our progress."
Selling, general and administrative expenses increased during the quarter ended
September 30, 2007, primarily due to amortization expenses associated with the
acquisition of ICRC.
VSE encourages investors and others to review the detailed reporting and
disclosures contained in VSE public filings for further information and analysis
of VSE's financial condition and results of operations. The public filings
include additional discussion about the status of specific customer programs,
risks, revenue sources and funding, dependence on material customers, and
management's discussion of short and longer term business challenges and
opportunities.
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, 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 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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