VSE Reports First Quarter 2001 Results;
Company Earns $0.12 Per Share in Quarter;
CEO Reports Growth Initiatives on Track
ALEXANDRIA, Va., May 1 /PRNewswire/ -- VSE Corporation (Nasdaq: VSEC) reported consolidated financial results for the three month periods ended March 31, 2001 and 2000, as follows:
VSE Corporation and Subsidiaries
Consolidated Statements of Income (unaudited)
(dollars in thousands, except share data)
Three months ended March 31,
2001 2000
Revenues, principally from contracts $30,442 $31,178
Costs and expenses of contracts 29,948 29,940
Gross profit 494 1,238
Selling, general and administrative expenses 49 163
Interest expense, net 15 54
Income before income taxes 430 1,021
Provision for income taxes 174 403
Net income $256 $618
Weighted average shares outstanding 2,125,863 2,122,289
Basic and diluted earnings per share $.12 $.29
Financial Results
Consolidated net income for the three month period was $256 thousand ($.12 a share) compared to $618 thousand ($.29 a share) for the same three month period last year. Revenues for the quarter decreased $736 thousand (2.4%), and net income decreased $362 thousand (58.6%), compared to the year ago period. The decline in the revenues during the quarter is primarily due to the loss of certain work performed for government customers in 2000 which was not awarded to VSE in 2001. This decline was partially offset by new work in our Ship Recycling and Remediation subsidiary (SRR) and in our Telecommunications Technologies Division (TTD). The decrease in net income is primarily due to loss of the work performed in 2000 and to start-up losses associated with TTD operations.
VSE Chairman and CEO Don Ervine said, "As indicated in our March 7, 2001, earnings release, VSE has made (and is continuing to make) significant investments in new businesses, such as SRR and TTD, changes and additions in senior management, and improvements in infrastructure such as information technology. We have also updated our quality policy and have committed to upgrade our ISO registration to the new standard, ISO 9001:2000. These are the right decisions for VSE, and I expect to report improvements as the year progresses. Our expectations for 2001 remain flat, but indications are that 2002 and 2003 should return VSE to a period of growth."
"Based on the recent U.S. Government decision to transfer certain naval ships to Taiwan, VSE and its team of subcontractors anticipate commencing advanced planning work for this program later this year. Subject to award and completion, the entire ship transfer effort is expected to provide a boost to VSE revenues and income, principally in 2002 and 2003."
VSE shares are traded on Nasdaq under the symbol "VSEC." Further information about VSE is available at vsecorp.com . |
