VSE Reports Financial Results for 2006
Wednesday February 21, 4:01 pm ET
Company Earns $7.8 Million ($3.21 Per Diluted Share) on Revenues of $364 Million; CEO Anticipates Continued Growth in 2007
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, 2006 and 2005, as follows:
VSE Corporation and Subsidiaries
Consolidated Statements of Income
(dollars in thousands, except share data)
Three Months Twelve Months
2006 2005 2006 2005
Revenues, principally
from contracts $101,960 $64,938 $363,734 $280,139
Costs and expenses of
contracts 98,255 62,426 350,978 269,780
Gross profit 3,705 2,512 12,756 10,359
Selling, general and
administrative expenses 77 240 694 580
Interest income, net (151) (126) (427) (210)
Income before income
taxes 3,779 2,398 12,489 9,989
Provision for income
taxes 1,391 885 4,700 3,820
Net income $2,388 $1,513 $7,789 $6,169
Weighted average shares
outstanding:
Basic 2,375,644 2,351,452 2,368,725 2,322,736
Diluted 2,423,273 2,418,857 2,424,442 2,392,027
Earnings per share:
Basic - Net income $1.01 $.64 $3.29 $2.66
Diluted - Net income $.99 $.63 $3.21 $2.58
Financial Results
VSE revenues increased about $37.0 million (up 57%) and $83.6 million (up 30%) for the three and twelve-month periods of 2006 compared to the same periods of 2005. Increases in 2006 were primarily due to subcontract revenues associated with Army Equipment Support Program work.
VSE net income increased about $875 thousand (up 58%) and $1.6 million (up 26%) for the three and twelve-month periods of 2006 compared to the same periods of 2005. Increases in 2006 were primarily due to the profits associated with the Tanker Ballistic Protection System Program and the BAV Ship Transfer Program. Profits also benefited from the large amount of subcontract costs enabling VSE to spread fixed corporate costs over a larger base and from an increase in work performed on time and materials and fixed price contracts which tend to have more favorable profit margins than cost- plus-fee contracts.
CEO Comments
VSE Chairman, President and CEO/COO Don Ervine said, "The financial results reported today are in line with the positive trend in VSE operations and results reported in recent years. VSE revenues have grown significantly as our ability to meet customer needs has grown. With the increase in revenues, we have been able to allocate our corporate costs over a larger base and improve our margins on certain time and materials and fixed price contracts."
"As previously reported, during the fourth quarter of 2006 we received new contracts and delivery orders representing potential revenues of up to $206 million, and our funded backlog was about $299 million at the end of 2006. Based on these and other new awards announced during the year, our strong bookings and funded backlog, and on our sense of VSE's favorable position in several of the markets we serve, we anticipate continued revenue and net income growth in 2007. We also continue to examine acquisition opportunities that have the potential to support our growth in the years ahead." |
