EXHIBIT 99.1
VSE REPORTS FIRST QUARTER 2008 RESULTS
Revenues Increase 56%, Net Income Up 32%
Alexandria, Virginia, April 29, 2008 - VSE Corporation (NASDAQ Global
Market: VSEC) reported consolidated financial results for the three months
ended March 31, 2008 and 2007, 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,
2008 2007
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Contract revenues . . . . . . . . . . . . . . . . . $ 188,723 $ 120,689
Contract costs . . . . . . . . . . . . . . . . . . . 182,559 116,248
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Gross profit . . . . . . . . . . . . . . . . . . . . 6,164 4,441
Selling, general and administrative expenses . . . . 420 151
Interest income, net . . . . . . . . . . . . . . . . (147) (116)
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Income before income taxes . . . . . . . . . . . . . 5,891 4,406
Provision for income taxes . . . . . . . . . . . . . 2,293 1,677
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Net income . . . . . . . . . . . . . . . . . . . . . $ 3,598 $ 2,729
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Basic earnings per share . . . . . . . . . . . . . . $ 0.71 $ 0.57
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Basic weighted average shares outstanding 5,058,784 4,807,424
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Diluted earnings per share . . . . . . . . . . . . . $ 0.71 $ 0.56
========= =========
Diluted weighted average shares outstanding 5,086,670 4,889,534
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Dividends declared per share $ 0.04 $ 0.035
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Financial Results
Commenting on the financial results, Executive Chairman of the Board Don
Ervine said, "The primary reasons for the increase in VSE revenues during the
first quarter of 2008 compared to the same quarter of 2007 are increased
revenues from the Army Equipment Support program and other tasks ordered under
our Rapid Response contract and revenues from our subsidiary ICRC, which we
acquired in the second quarter of 2007.
"Net income for the first quarter of 2008 increased compared to the
first quarter of 2007 primarily due to profits from the inclusion of the
revenues of ICRC and the increase in revenues on the Army Equipment Support
program and other tasks ordered under the Rapid Response contract.
"Bookings for the most recent quarter were strong at approximately
$350 million compared to quarterly revenues of approximately $189 million,
resulting in a funded backlog of approximately $570 million at March 31,
2008. This compares favorably to a funded backlog of approximately
$408 million at December 31, 2007, and approximately $384 million at March 31,
2007."
-more-
"These indicators, as well as the announcements earlier this month of a
new U.S. Army Reserve equipment support contract award and our recent
acquisition of G&B Solutions, Inc. are positive for our continued growth
during 2008. We look forward to reporting our progress as the year proceeds."
VSE's Board of Directors appointed Maurice A. Gauthier Chief Executive
Officer, President and Chief Operating Officer of the corporation, effective
April 28, 2008. Mr. Gauthier will lead and manage the operations of VSE and
its subsidiaries and divisions. He will also have responsibility for all
aspects of VSE's customer relations, business development, management,
communications, and employee recruitment and development. Don Ervine, who has
stepped down from his positions as Chief Executive Officer, President and
Chief Operating Officer will continue to advise the corporation as its
Executive Chairman of the Board.
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.
VSE provides diversified services to the engineering, energy and
environment, defense, homeland security, and law enforcement markets from
locations across the United States and around the world. For more information
on VSE business units, 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.
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.
News Contact: C. S. Weber, CAO, (703) 329-4770
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