VSE Reports Consolidated Financial Results for 2003
Monday February 23, 10:17 am ET
Company Earns $2.0 Million ($0.92 a Share); CEO Anticipates Continued Improvement in 2004
ALEXANDRIA, Va., Feb. 23 /PRNewswire-FirstCall/ -- VSE Corporation (Nasdaq: VSEC - News) reported consolidated financial results for the three- and twelve-month periods ended December 31, 2003 and 2002, as follows:
VSE Corporation and Subsidiaries
Consolidated Statements of Income
(dollars in thousands, except share data)
Three Months Twelve Months
2003 2002 2003 2002
Revenues, principally from
contracts $ 42,238 $ 31,110 $134,459 $134,379
Costs and expenses of
contracts 41,043 30,303 130,898 132,306
Gross profit 1,195 807 3,561 2,073
Selling, general and
administrative expenses 194 206 352 328
Interest (income) expense,
net (20) (19) (69) 24
Impairment -- intangible
asset -- 576 -- 576
Income before income taxes 1,021 44 3,278 1,145
Provision for income taxes 401 42 1,267 493
Net income $ 620 $ 2 $ 2,011 $ 652
Weighted average shares
outstanding:
Basic 2,192,426 2,182,783 2,189,197 2,172,384
Diluted 2,239,722 2,204,862 2,230,226 2,196,390
Earnings per share:
Basic $ .28 $ .00 $ .92 $ .30
Diluted $ .28 $ .00 $ .90 $ .30
Financial Results
Consolidated revenues were substantially the same for the years ended December 31, 2003 and 2002. During 2003 revenues decreased in some VSE divisions and subsidiaries and increased in others. Revenue decreases were recorded in the BAV Division, which performed work in 2002 that was not repeated in 2003, and in the Telecommunications Technology Division (TTD), which began to phase out operations in 2003. These decreases were offset by revenue increases from the start up of the Communications and Engineering Division (CED) and an increase in the revenues of the company's other active divisions compared to the prior year.
Consolidated net income for 2003 increased about 208% (about $1.36 million) compared to consolidated net income in 2002. This improvement was primarily due to the phase out of TTD operations and a reduction of losses associated with this division. Margin improvements reported in most of VSE's operating divisions were partially offset by operating losses associated with CED contract billing rates that do not recover all allocable costs required by VSE's government cost accounting system, and to a lesser extent by start up costs associated with CED.
CEO Comments
VSE Chairman, President and CEO/COO Don Ervine said, "The financial results reported today are in line with recent news releases indicating a positive trend in VSE operations and results. We were able to offset declines in BAV revenues in 2003 with new work in other areas, to improve margins in some divisions, and to reduce the losses associated with TTD operations. TTD is expected to complete all operations in 2004.
"We expect continued improvement in 2004. As recently announced, we received a BAV delivery order for about $100 million to support the reactivation and transfer of four KIDD-class destroyers, and we were awarded a new contract to continue our support to the Naval Sea Systems Command Shipbuilding Support Office. We continue to see 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, a funded backlog of about $83 million at year end, and the number of proposals pending evaluation or to be submitted this year, we anticipate continued strength in consolidated revenues and net income in 2004." |
