VSE REPORTS FINANCIAL RESULTS FOR 2008
Company Reports Revenues of $1.0 Billion, Net Income of $19.0 Million
($3.74 per diluted share)
Alexandria, Virginia (February 23, 2009) - VSE Corporation
(Nasdaq GS: VSEC) reported consolidated financial results for the three- and
twelve-months ended December 31, 2008 and 2007, as follows:
VSE Corporation and Subsidiaries
Consolidated Statements of Income (Unaudited)
(dollars in thousands, except share data)
________________________________________________________________________________________________________
Three Months Ended Twelve Months Ended
December 31, December 31,
2008 2007 2008 2007
---- ---- ---- ----
Contract revenues $ 296,513 $ 198,139 $1,043,735 $ 653,164
Contract costs 287,163 190,709 1,011,408 629,951
--------- --------- ---------- ---------
Gross profit 9,350 7,430 32,327 23,213
Selling, general and administrative
expenses 512 278 1,193 905
Interest (income) expense, net 3 (167) (115) (699)
--------- --------- ---------- ---------
Income before income taxes 8,835 7,319 31,249 23,007
Provision for income taxes 3,471 2,852 12,209 8,905
--------- --------- ---------- ---------
Net income $ 5,364 $ 4,467 $ 19,040 $ 14,102
========= ========= ========== =========
Weighted average shares outstanding:
Basic 5,087,898 5,045,971 5,072,131 4,953,289
Diluted 5,103,546 5,081,728 5,096,186 5,003,675
Earnings per share:
Basic - Net income $ 1.05 $ 0.89 $ 3.75 $ 2.85
Diluted - Net income $ 1.05 $ 0.88 $ 3.74 $ 2.82
________________________________________________________________________________________________________
Financial Results
The primary reason for the increase in our revenues in 2008 compared to
2007 was an increase in work associated with our U.S. Army Rapid Response (R2)
Program, including increased work on the Army Equipment Support and the Assured
Mobility Systems Programs.
Other significant increases in our 2008 revenues resulted from including
the revenues of our subsidiary Integrated Concepts and Research Corporation
(ICRC) for a full year in 2008 compared to a shorter period in 2007 as a result
of acquiring ICRC in June 2007; including the revenues of our subsidiary G&B
-more-
Solutions, Inc. (G&B) from the April 14, 2008, date of acquisition through year
end; and increases in the services provided by our subsidiary Energetics and
other VSE divisions, including our Fleet Maintenance, Engineering and Logistics,
and Field Services Support (FSS) divisions.
VSE net income increased approximately $897 thousand (up 20%) and
$4.9 million (up 35%) for the three- and twelve-months ended December 31, 2008
compared to the same periods of 2007. The increases were primarily a result of
increased profits from the growth of revenues on the Army Equipment Support
program and other R2 task orders; the inclusion of ICRC and FSS in our operating
results for the full year in 2008 as compared to only a partial year in 2007;
the inclusion of G&B in our operating results from the April 14, 2008, date of
acquisition through year end; and revenue increases from Energetics.
CEO Comments
VSE CEO Mo Gauthier said, "The financial results reported today are
evidence of the successful growth strategies followed by VSE. Our funded backlog
was approximately $567 million at December 31, 2008 (up 39%) compared to
approximately $408 million at December 31, 2007, and our personnel count was
approximately 1,920 employees at year end (up 57%) compared to approximately
1,223 at the beginning of the year. We believe that our December 31, 2008 funded
backlog and personnel count are positive indicators for 2009, and we remain
optimistic for the long term."
"While our nation and economy face severe challenges, VSE is working to
improve its value and contribution to support important initiatives to maintain
and modernize military equipment and systems, improve and expand maritime port
facilities, assist law enforcement agencies in managing seized assets in anti-
drug and illegal dumping programs, and design and develop key government
information and technology resources, to name only a few areas in which we
participate. VSE is a global company whose employees work every day to meet
customer requirements for innovative and cost effective programs and solutions."
"We believe VSE is well-positioned to face the challenges in our
changing environment, and we look forward to reporting on our progress."
About VSE Corporation
VSE marks its 50th year as a government contractor in 2009. Established
in 1959, VSE is a diversified professional services company providing
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 the company's web site at
www.vsecorp.com or contact Randy Hollstein, VSE Corporate Vice President of
Marketing, at (703) 329-3206.
The company encourages investors and others to review the detailed
reporting and disclosures contained in VSE public filings for further informa-
tion 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 News Contact: Craig Weber -- (703) 329-4770.
###