VSE Reports First Quarter 2009 Results
Company Earns $0.91 Per Diluted Share in Quarter (up 28%);
Revenues Increase 27%
Alexandria, Virginia, April 29, 2009 - VSE Corporation (Nasdaq: VSEC)
reported the following consolidated financial results for the periods ended
March 31, 2009 and 2008:
VSE Corporation and Subsidiaries
Consolidated Statements of Income (unaudited)
(in thousands, except share and per share amounts)
_______________________________________________________________________________
Three Months Ended
March 31,
2009 2008
Revenues . . . . . . . . . . . . . . . $ 240,455 $ 188,723
Contract costs . . . . . . . . . . . . 232,809 182,816
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Gross profit . . . . . . . . . . . . . 7,646 5,907
Selling, general and administrative
expenses . . . . . . . . . . . . . . 202 163
Interest income, net . . . . . . . . . (59) (147)
--------- ---------
Income before income taxes . . . . . . 7,503 5,891
Provision for income taxes . . . . . . 2,863 2,293
--------- ---------
Net income . . . . . . . . . . . . . . $ 4,640 $ 3,598
========= =========
Basic earnings per share . . . . . . . $ 0.91 $ 0.71
========= =========
Basic weighted average shares
outstanding . . . . . . . . . . . . 5,112,356 5,058,784
========= =========
Diluted earnings per share . . . . . . $ 0.91 $ 0.71
========= =========
Diluted weighted average shares
outstanding . . . . . . . . . . . . 5,126,629 5,086,670
========= =========
Dividends declared per share $ 0.045 $ 0.040
========= =========
Financial Results
VSE revenues increased approximately $52 million (up 27%) for the
three-month period of 2009 compared to the same period of 2008. The increase
is due primarily to: an increase in our Communications and Engineering
Division (CED) revenues from work on contract task orders, including the
Route Clearing Vehicle Modernization program; an increase in International
Group revenues; the inclusion of G&B Solutions revenues in our consolidated
financial results in 2009 as compared to 2008 when G&B had not yet been
acquired; and growth in the equipment refurbishment services provided by our
Engineering and Logistics (ELD) division.
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VSE Corporation News Release (continued)
VSE net income increased approximately $1.04 million (up 29%) for the
three-month period of 2009 compared to the same period of 2008. The increase
in net income was primarily due to the profits associated with the increases
in revenues reported above and to the profits earned by our information
technology services subsidiary G&B Solutions.
VSE's funded backlog was approximately $555 million at March 31, 2009
compared to approximately $567 million at December 31, 2008.
CEO Comments
VSE CEO Mo Gauthier commented, "VSE continues to grow and our revenues
have increased by meeting requirements from existing and new customers.
Profits have increased as our volume increases, and improving our margins
remains a top goal. Our key indicators are positive, including significant
new contract awards, identified opportunities for new work, and a substantial
increase in employees. Since the beginning of 2008 to the end of the first
quarter of 2009, we have nearly doubled our employee count from 1,223 to
2,244. The current prospects for 2009 continue to be favorable; however, 2009
is a federal government transition year and government spending priorities
may change in ways that we cannot predict. We look forward to reporting on
our progress."
VSE Services
VSE marked its 50th year as a government contractor in January 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 our web
site at www.vsecorp.com or contact Randy Hollstein, 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
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 News Contact: Keren Ackerman -- (703) 329-4605.
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