VSE Reports Second Quarter 2000 Results
ALEXANDRIA, Va., July 27 /PRNewswire/ -- VSE Corporation (Nasdaq: VSEC)
reported consolidated financial results for the three- and six-month periods
ended June 30, 2000 and 1999, as follows:
VSE Corporation and Subsidiaries
Consolidated Statements of Income (unaudited)
(dollars in thousands, except share data)
Three Months Six Months
2000 1999 2000 1999
Revenues, principally
from contracts $31,406 $46,050 $62,584 $86,239
Costs and expenses
of contracts 30,671 44,586 60,611 83,979
Gross profit 735 1,464 1,973 2,260
Selling, general and
administrative expenses 19 333 182 492
Loss on CMstat operations -- 1,184 -- 1,499
Interest expense 57 67 111 27
Pretax income (loss) 659 (120) 1,680 242
Provision (benefit)
for income taxes 257 (143) 660 13
Net income $402 $23 $1,020 $229
Weighted average
shares outstanding 2,122,289 2,114,905 2,122,289 2,114,905
Basic and diluted
earnings per share $.19 $.01 $.48 $.11
Financial Results
Consolidated revenues shown in the table above represent VSE's
engineering, logistics, management and technical services business
(engineering services). The results for VSE's former software products and
services business, including VSE's former subsidiary CMstat, are shown as
"Loss on CMstat operations." CMstat was divested in May, 1999.
Consolidated revenues for the three- and six-month periods ended June 30,
2000, declined 32% and 27% compared to the same periods of 1999, primarily due
to a decline in the revenues of VSE's BAV Division and to a small reduction in
the volume of services rendered by other VSE units during the first half of
2000.
Consolidated net income for the three- and six-month periods ended June
30, 2000, increased substantially compared to the same periods of 1999,
primarily due to the absence of the loss attributable to CMstat operations in
1999.
VSE Chairman and CEO Don Ervine said, "The decline in revenues during the
first half of this year compared to the same time last year reflects a decline
in the revenues of our BAV Division, which provides ship transfer services and
follow-on technical support in connection with a U.S. Navy foreign military
sales program. Such sales require Congressional approval on a country
specific basis, and are also subject to negotiation and other timing
differences which can lead to large revenue differences from quarter to
quarter. However, there is a significant backlog of program work that could
result in an increased level of effort towards the end of this year and on
into next year."
"A continuing highlight of the first half of 2000 was the successful
performance of a new contract awarded to a joint venture of our subsidiary to
dismantle excess Navy ships through an environmentally safe recycling process.
We believe that successful performance of this contract can result in future
awards. In June 2000 a second ship was awarded to the joint venture, and work
is well underway. There is substantial potential to expand this program in
the Navy and in other government agencies requiring ship remediation and
dismantling services."
"Overall, as a result of cost reductions and other efficiencies, VSE is
performing effectively and profitably, with predictable results. We have
stepped up our marketing program to reverse the decline in revenues, and we
expect to see increased revenues in 2001. With a record of superior past
performance and the successful maintenance of our ISO 9001 quality management
system, I believe VSE has the opportunity to achieve significant growth in the
coming years." |
