EXHIBIT 99.1
VSE REPORTS SECOND QUARTER 2008 RESULTS
Company Earns $0.94 Per Share Diluted in Quarter (up 32%)
and $1.64 Per Share Diluted for Six Months (up 29%)
Alexandria, Virginia, July 31, 2008 - VSE Corporation (Nasdaq: VSEC)
reported the following consolidated financial results for the periods ended
June 30, 2008 and 2007:
VSE Corporation and Subsidiaries
Consolidated Statements of Income (unaudited)
(in thousands, except share and per share amounts)
______________________________________________________________________________________
Three Months Ended Six Months Ended
June 30, June 30,
2008 2007 2008 2007
---- ---- ---- ----
Revenues $ 251,688 $ 159,644 $ 440,411 $ 280,333
Costs and expenses of contracts 243,208 153,904 425,767 270,152
--------- --------- --------- ---------
Gross profit 8,480 5,740 14,644 10,181
Selling, general and
administrative expenses 651 243 1,071 394
Interest expense (income), net 34 (255) (113) (371)
--------- --------- --------- ---------
Income before income taxes 7,795 5,752 13,686 10,158
Provision for income taxes 3,026 2,205 5,319 3,882
--------- --------- --------- ---------
Net income $ 4,769 $ 3,547 $ 8,367 $ 6,276
========== ========= ========= =========
Basic earnings per share $ 0.94 $ 0.72 $ 1.65 $ 1.29
Basic weighted average shares
outstanding 5,065,799 4,931,942 5,062,292 4,870,027
Diluted earnings per share $ 0.94 $ 0.71 $ 1.64 $ 1.27
Diluted weighted shares
outstanding 5,094,615 4,977,390 5,090,643 4,933,705
Dividends declared per share $ 0.045 $ 0.04 $ 0.085 $ 0.075
Financial Results
VSE revenues increased approximately $92.0 million (up 58%) and $160.1
million (up 57%) for the three- and six-month periods of 2008 compared to the
same periods of 2007. These increases occurred in several U.S. Army programs
including the Army's Equipment Support Program and the Assured Mobility Systems
program, offsetting decreases in BAV ship transfer division revenues and in
Tanker Ballistic Protection System (TBPS) revenues as the TBPS program comes to
successful completion. Additionally, revenues from new VSE subsidiaries
Integrated Concepts and Resources Corporation (ICRC) and G&B Solutions, Inc.
added to the increase in revenues in 2008.
VSE net income increased approximately $1.2 million (up 34%) and $2.1
million (up 33%) for the three- and six-month periods of 2008 compared to the
same periods of 2007. The increases in net income were primarily due to the
profits associated with the increases in revenues reported above and to the
profits earned by ICRC and G&B Solutions.
- more -
VSE Corporation News Release (continued)
CEO Comments
VSE CEO Mo Gauthier said, "Our rapid growth in 2008 reflects the
Company's diverse capabilities and our commitment to meeting the needs of an
expanding list of clients. We are positioning ourselves to enhance our current
role in the repair, maintenance and modernization of legacy defense equipment
and systems. Concurrently, we are seeking to expand our market share in civilian
Federal agencies. Our core capabilities include technical and consulting
services applied to requirements across an array of defense and civilian markets
including infrastructure, information technology, energy management programs,
homeland security, and law enforcement."
"Our funded backlog was approximately $674 million at June 30, 2008
compared to approximately $408 million at December 31, 2007. Based on these and
other indicators, such as recently announced contract awards and our favorable
position in several of the markets we serve, we anticipate 2008 will be an
excellent year, capping off 50 years of service (1959-2008) as a trusted
Government contractor."
"We continue to seek opportunities for organic growth with the customers
we serve, as well as acquisition opportunities that have the potential to
contribute to our growth and earnings 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
and contract awards, risks, revenue sources and funding, dependence on material
customers, and management's discussion of short and long 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 is a diversified professional services company established in 1959.
The Company provides engineering and consulting services, systems integration,
infrastructure support, and information technology management and solutions,
principally to agencies of the United States Government and other government
prime contractors at locations across the United States and around the world.
For additional information on VSE services and products, please see our web site
at www.vsecorp.com or contact Len Goldstein, Director of Business and New
Product Development, at (703) 317-5202.
VSE News Contact: Craig Weber -- (703) 329-4770.
###