VSE Corporation (Nasdaq: VSEC) reported the following unaudited
consolidated financial results for the three months ended March 31, 2014.
"Our first quarter income from continuing operations and net income
improved as compared to prior year first quarter levels," said
Maurice "Mo" Gauthier, VSE CEO. "Results from our growing supply chain
offerings have offset declines in services performed for our traditional
Mr. Gauthier continued, "In response to challenges in our legacy defense
markets, we have adapted our competencies in vehicle, ship and aircraft
fleet sustainment, service life extension, and logistics to the needs of
adjacent markets. We will focus on mission critical fleet sustainment in
these more promising markets, while we continue to defend and maintain
our presence in key legacy defense markets in anticipation of a future
For the first quarter of 2014, revenues were $119.4 million compared to
$119.2 million in the first quarter of 2013. Operating income for the
first quarter of 2014 was $11.4 million compared to $9.9 million in the
first quarter of 2013. Revenues from our Supply Chain Management Group
continued to grow; International Group and Federal Group revenues
remained steady; and revenues from our IT, Energy and Management
Consulting Group declined compared to the prior year period.
Income from continuing operations for the first quarter of 2014 was $6.3
million, or $1.17 per diluted share, compared to $5.3 million, or $0.99
per diluted share in the first quarter of 2013. Net income was $5.7
million for the first quarter of 2014, or $1.05 per diluted share,
compared to $5.3 million, or $0.99 per diluted share for the first
quarter of 2013.
Bookings were $89 million in the first quarter of 2014 as compared to
revenue of $119.4 million. Funded contract backlog at March 31, 2014 was
$205 million, compared to $236 million at December 31, 2013 and $264
million at March 31, 2013.
Note on Discontinued Operations
Prior to our decision in December of 2012 to divest the operations of
our subsidiary Integrated Concepts and Research Corporation ("ICRC"),
ICRC participated in an arrangement to provide bonding for certain small
business prime contractors. Subsequently, various subcontractors have
made claims on a few of the bonded projects associated with ICRC's
discontinued construction management business. We have recorded a
reserve related to these claims and disputes of approximately $615
thousand, net of tax, which is included in loss from discontinued
operations for the first quarter of 2014.
Q1 Operational Highlights
Established in 1959, VSE is a diversified federal services company with
experience in solving issues of global significance with integrity,
agility, and value. VSE is dedicated to making our clients successful by
delivering talented people and innovative solutions for supply chain
management, logistics, engineering, energy, IT services, and consulting.
For additional information regarding VSE services and products, please
see the Company's web site at www.vsecorp.com
or contact Christine Kaineg, VSE Investor Relations, at (703) 329-3263.
VSE encourages investors and others to review its public filings with
the Securities and Exchange Commission for further information and
analysis of VSE's financial condition and results of operations. The
public filings include additional discussion about the status of
specific customer programs and contract awards, risks, revenue sources
and funding, dependence on material customers, and management's
discussion of short and long term business challenges and opportunities.
This news release contains statements that to the extent they are not
recitations of historical fact, constitute "forward looking statements"
under federal securities laws. All such statements are intended to be
subject to the safe harbor protection provided by applicable securities
laws. For discussions identifying some important factors that could
cause actual VSE results to differ materially from those anticipated in
the forward looking statements in this news release, see VSE's public
filings with the SEC, including VSE's Annual Report on Form 10-K for the
year ended December 31, 2013 and subsequent reports filed with the SEC.
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