VSE Reports Third Quarter 2005 Results
Company Earns $0.66 Per Share Diluted in Quarter
Financial Results
VSE revenues increased about $14.4 million (up 23%) and $56.3 million (up 35%) for the three and nine-month periods compared to the same periods of last year, primarily due to work on the Army's Trailer Ballistic Protection System program and to an increase in work in VSE's BAV, Communications and Engineering, Fleet Maintenance, and Systems and Engineering Divisions.
VSE net income increased about $702 thousand (up 79%) and $2.2 million (up 90%) for the three and nine-month periods compared to the same periods of last year, primarily due to the profits associated with the additional revenues and to an increase in gross margins. The increase in gross margins was attributed to allocating fixed corporate costs over a larger revenue base and to an increase in the percentage of work performed on time and materials and firm fixed price contracts, which tend to have higher profit margins than cost reimbursement contracts.
VSE typically has three quarterly reporting periods during the year that include a recognition of BAV award fee income and one quarterly reporting period that does not. The three-month periods ended September 30, 2005 and 2004 do not include BAV award fee income.
CEO Comments
Commenting on the financial results, VSE Chairman, President and CEO/COO Don Ervine said, "VSE third quarter revenues of about $76.6 million are a record high quarter for the company, and earnings of about $1.6 million for the quarter ($.66 per share diluted) are keeping pace with the increase in revenues. Our funded backlog at September 30, 2005, was about $212 million compared to about $168 million at December 31, 2004."
"We continue to find promising opportunities to bid in the markets we serve, and we expect to win a share of the work which will become available. Our growth over the last two years has been the result of good marketing teamwork and the versatility of our managers and employees in identifying and responding to emerging customer requirements in a timely and professional manner. I look forward to reporting on our continued progress in the months ahead." |
