VSE Reports Consolidated Financial Results for 2002
Friday February 21, 4:31 pm ET
Annual Revenues Top $134 Million, Up 20% Over 2001
ALEXANDRIA, Va., Feb. 21 /PRNewswire-FirstCall/ -- VSE Corporation (Nasdaq: VSEC - News) reported consolidated financial results for the three and twelve month periods ended December 31, 2002 and 2001, as follows:
Revenues increased by approximately 20% for the year ended December 31, 2002, primarily due to an increase in the revenues of BAV, VSE's ship transfer and follow-on technical support division.
As reported earlier this month, VSE has decided to stop marketing the services provided by its Telecommunications Technologies Division ("TTD"). Since September 2000, TTD has marketed products, services, and support in network, multimedia, and audio-visual technology to commercial organizations and other customers. TTD will cease marketing efforts immediately and will satisfy all remaining contractual obligations prior to ceasing business operations. Certain technical capabilities will be transferred to other VSE divisions.
Revenues generated by TTD were about $6 million in 2002, representing less than 5% of VSE's 2002 consolidated sales. Losses in this division, which now include a $576 thousand loss associated with the impairment of intangible assets that were acquired by TTD in 2000 to enhance its business development efforts, resulted in a reduction to VSE fourth quarter income. TTD losses in the fourth quarter of 2002 were approximately equal to the income generated by VSE's other divisions and subsidiaries during the same quarter. Absent TTD losses, VSE's net income for the quarter ended December 31, 2002, would have been $736 thousand.
VSE Chairman, President and CEO/COO Don Ervine said, "Gross profit for the fourth quarter and for the year ended December 31, 2002, were lower than expected, based on the disappointing results of our TTD business unit. We have decided to exit the TTD marketplace and concentrate on our established business areas. Based on our 20% sales growth in 2002 and on the series of contract awards we recently announced, our management team is focused on satisfying customers and achieving the revenue and profit potential of our traditional business areas and customer base. With our recent contract wins, VSE has a great opportunity to grow and achieve increased revenue and profit in 2003." |
