VSE Reports Third Quarter Revenue and Profit Gains
ALEXANDRIA, Va., Nov. 4 /PRNewswire/ -- VSE Corporation (VSE)
(Nasdaq: VSEC) reported increases in consolidated revenues and net income for
the three- and nine-month periods ended September 30, 1998, as compared to the
same periods of 1997. The company reported consolidated revenues of $45.0
million and $125.8 million for the three- and nine-month periods ended
September 30, 1998, representing increases of 30% and 10%, respectively,
compared to the prior year periods. Consolidated net income for the three-
and nine-month periods ended September 30, 1998, was $673 thousand ($.32 a
share) and $1.0 million ($.49 a share), compared to net income of $8 thousand
($.00 a share) and a net loss of $425 thousand ($.20 a share loss) for the
respective prior year periods.
VSE Chairman and CEO Don Ervine said, "VSE's revenues of $45.0 million and
earnings of $673 thousand ($.32 a share) met our expectations for the third
quarter of 1998 and are consistent with our estimated annual trends. On a
consolidated basis, our trailing twelve-month revenues at September 30, 1998,
are a record $167 million, with the largest revenue contribution coming from
the international ship transfer work of our BAV Division and its team of
subcontractors. VSE's trailing twelve-month net income, which was reduced in
recent periods by losses incurred in our software products and services
segment, has returned to positive ground ($18 thousand, $.01 a share). We
expect these improvements in consolidated revenues and net income to
continue."
Mr. Ervine continued, "The operating results of our software products and
services segment (CMstat Corporation) have improved significantly. Thanks to
the sustained efforts of dedicated employees and managers, the strength of
CMstat products, and an increase in CMstat product acceptance and use among a
variety of customers, CMstat's information technology is beginning to make a
significant contribution to customers. Its products and services have gained
recognition and are expected to be included as standard items on Federal GSA
and commercial vendor schedules. A new value-added reseller agreement is
being established. CMstat's customer list is growing and includes clients
such as Lockheed Martin, Hughes, Honeywell, GTE, United Defense, VSE, and the
U.S. Postal Service. CMstat's Web-enabled products and services show
increasing promise in the markets we serve, and we look forward to revenue
growth and positive results from this VSE business segment."
"In the coming quarters, with our software products and services segment
contributing to both revenue and profit, we expect to see VSE return to the
annual revenue increases and sustained returns on sales and equity which are
typical of VSE's long-term historical trends. While uncertainty in domestic
and international markets is always a factor, we believe VSE has a bright
future in the years ahead."
VSE is a professional services company established in 1959. The company
and its subsidiaries provide diversified services and products to the
engineering, energy and environment, health care, information technology, and
defense services markets. VSE's principal international customers are the
naval forces of U.S. allies, while principal domestic customers are primarily
agencies of the U.S. government and government prime contractors. |
