EXHIBIT 99.1
VSE REPORTS FINANCIAL RESULTS FOR 2007
Company Earns $14.1 million ($2.82 per diluted share)
on Revenues of $653.2 million;
CEO Anticipates Continued Growth in 2008
Alexandria, Virginia, February 21, 2008 - VSE Corporation (Nasdaq: VSEC)
reported consolidated financial results for the three- and twelve-month periods
ended December 31, 2007 and 2006, as follows:
VSE Corporation and Subsidiaries
Consolidated Statements of Income
(dollars in thousands, except share data)
________________________________________________________________________________________________________
Three Months Ended Twelve Months Ended
December 31, December 31,
2007 2006 2007 2006
---- ---- ---- ----
Contract revenues $ 198,139 $ 101,960 $ 653,164 $ 363,734
Contract costs 190,452 98,255 629,351 350,978
--------- --------- --------- ---------
Gross profit 7,687 3,705 23,813 12,756
Selling, general and administrative expenses 535 77 1,505 694
Interest income, net (167) (151) (699) (427)
--------- --------- --------- ---------
Income before income taxes 7,319 3,779 23,007 12,489
Provision for income taxes 2,852 1,391 8,905 4,700
--------- --------- --------- ---------
Net income $ 4,467 $ 2,388 $ 14,102 $ 7,789
========= ========= ========= =========
Weighted average shares outstanding:
Basic 5,045,971 4,751,288 4,953,289 4,737,450
Diluted 5,081,728 4,846,546 5,003,675 4,848,884
Earnings per share:
Basic - Net income $ 0.89 $ 0. 50 $ 2.85 $ 1.64
Diluted - Net income $ 0.88 $ 0. 49 $ 2.82 $ 1.61
________________________________________________________________________________________________________
Financial Results
VSE revenues increased approximately $96.2 million (up 94%) and $289.4
million (up 80%) for the three and twelve-month periods of 2007 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; and 3) revenues from VSE's recently acquired ICRC subsidiary.
VSE net income increased approximately $2.1 million (up 87%) and $6.3
million (up 81%) for the three and twelve-month periods of 2007 compared to the
same periods of 2006. The increases were primarily due to 1) increased
profitability on certain Army and Army Reserve programs; 2) earnings from the
operations of ICRC acquired in June 2007; 3) earnings from the increase in
revenues associated with the U.S. Army Equipment Support Program and other
revenues under VSE's R2 contract; and 4) increased ship transfer fee income.
-more-
CEO Comments
VSE Chairman and Chief Executive Officer Don Ervine said, "The financial
results reported today are in line with the positive trend in VSE operations
and results reported in recent years. VSE revenues have grown significantly as
our ability to meet customer needs has grown. With the increase in revenues,
we have been able to allocate our corporate costs over a larger base and
improve our margins on certain time and materials and fixed price contracts."
"As previously reported, during the fourth quarter of 2007 we received
new contracts and delivery orders supporting our Tanker Ballistic Protection
System Program and the operations of our subsidiary Energetics. Our funded
backlog was approximately $408 million at December 31, 2007 compared to
approximately $299 million at December 31, 2006, and our personnel count
increased to approximately 1,223 employees at year end compared to
approximately 836 at the beginning of the year. Based on these and other
factors, and on our sense of VSE's favorable position in several of the markets
we serve, we anticipate continued growth in 2008. We also continue to examine
acquisition opportunities that have the potential to support our growth in the
years ahead."
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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