VSE Reports Third Quarter 2003 Results Company Earns $0.24 Per Share in Quarter; CEO Reports Favorable Trends
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Tue Oct 28 09:54:00 2003 EST
ALEXANDRIA, Va., Oct 28, 2003 /PRNewswire-FirstCall via COMTEX/ --
VSE Corporation
(Nasdaq: VSEC) reported consolidated financial results for the three- and
nine-month periods ended September 30, 2003 and 2002, as follows:
VSE Corporation and Subsidiaries
Consolidated Statements of Income (unaudited)
(dollars in thousands, except share data)
Three Months Nine Months
2003 2002 2003 2002
Revenues, principally
from contracts $36,391 $37,836 $92,221 $103,269
Costs and expenses
of contracts 35,482 37,352 89,855 102,003
Gross profit 909 484 2,366 1,266
Selling, general and
administrative expenses 68 59 158 122
Interest expense (income) (18) (3) (49) 43
Income before income taxes 859 428 2,257 1,101
Provision for income taxes 336 171 866 451
Net income $523 $257 $1,391 $650
Basic average shares
outstanding 2,188,635 2,181,540 2,188,108 2,169,140
Diluted average shares
outstanding 2,235,779 2,204,803 2,227,026 2,192,599
Basic earnings per share $.24 $.12 $.64 $.30
Diluted earnings per share $.23 $.12 $.62 $.30
Financial Results
Net income increased $266 thousand (103%) and $741 thousand (114%) for the
three- and nine-month periods ended September 30, 2003, compared to the same
periods of 2002, while revenues decreased by $1.4 million (4%) and $11.0
million (11%) for the comparative periods.
The increases in consolidated net income are primarily due to improved
profitability in VSE's contract work and to a reduction in the losses
associated with TTD work. VSE expects to complete all residual TTD work in
early 2004. The decreases in period to period consolidated revenues are
primarily due to a decline in BAV subcontract efforts and to the decrease in
TTD revenues.
CEO Comments
VSE Chairman, President and CEO Don Ervine said, "The positive results
reported today are in line with recent VSE news releases. As announced, we
expect an increase in BAV revenues based on our effort supporting the
reactivation and transfer of four Kidd-class destroyers. We are also seeing an
increase in work orders issued under the U.S. Army Rapid Response support
contract awarded to VSE earlier this year. Based on these increases, we
anticipate continued strength in consolidated revenues and profitability
during the remainder of 2003, and early indications are that revenues and
profits in 2004 will continue the favorable trends we are reporting." |
