|By Business Wire||
|April 30, 2014 06:28 PM EDT||
VSE Corporation (Nasdaq: VSEC) reported the following unaudited consolidated financial results for the three months ended March 31, 2014.
|Financial Results (Unaudited)|
|(in thousands, except per-share data and percentages)|
|Three Months Ended March 31,|
|Operating margin||9.51||%||8.34||%||up 117 bp|
|Income from continuing operations||$||6,269||$||5,271||18.9||%|
|Loss from discontinued operations, net of tax||($615||)||($13||)||-|
|Income from continuing operations EPS (diluted)||$||1.17||$||0.99||18.2||%|
|Loss gain from discontinued operations EPS (diluted)||($0.12||)||$||0.00||-|
|Net income EPS||$||1.05||$||0.99||6.1||%|
"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 customer base.”
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 rebound.”
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
- Revenues from our Wheeler Bros., Inc. (WBI) subsidiary’s Managed Inventory Program (MIP), which provides ongoing supply chain support for truck fleet parts, increased by 8% for the first quarter of 2014 as compared to the same period of 2013.
- WBI was awarded a delivery order to supply 10,000 engineered shelving kits to the United States Postal Service (USPS) for use in the Long Life Delivery Vehicles (LLV). This delivery order has a value of $2.9 million, with USPS having an option to purchase up to 40,000 additional kits following the initial delivery.
- Our Akimeka, LLC subsidiary will continue providing Systems Operation Support Services (SOSS) to the Social Security Administration (SSA) under General Services Administration (GSA) Schedule 70 as a subcontractor under a contract awarded to Koniag Technology Services, Inc. This Firm Fixed Price (FFP) contract has a one-year base period of performance, plus five one-year options, and has an estimated value of up to $48 million to Akimeka.
- Our Federal Group was awarded a Time and Materials (T&M)/Firm Fixed Price (FFP) task order to support base operations and logistics at Red River Army Depot (RRAD) under the Field Installation Readiness Support Team (FIRST) contract. This task order has a one-year base period valued at $5.4 million and two option periods with a total contract value of $14.3 million.
- Our International Group received several delivery orders totaling more than $13.7 million to continue work under its Foreign Military Sales (FMS) Naval Ship Transfer and Repair (N*STAR) contract through the Naval Sea Systems Command (NAVSEA) International Fleet Support Program.
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.
|VSE Corporation and Subsidiaries|
|Unaudited Consolidated Balance Sheets|
|(in thousands except share and per share amounts)|
|March 31,||December 31,|
|Cash and cash equivalents||$||357||$||220|
|Receivables, principally U.S. Government, net||72,936||78,387|
|Deferred tax assets||460||863|
|Other current assets||12,276||10,641|
|Total current assets||126,454||129,426|
|Property and equipment, net||56,542||57,738|
|Intangible assets, net||79,716||82,257|
|Deferred tax assets||2,634||2,545|
|Liabilities and Stockholders’ Equity|
|Current portion of long-term debt||$||24,837||$||24,837|
|Current portion of earn-out obligations||588||-|
|Accrued expenses and other current liabilities||21,895||24,661|
|Total current liabilities||80,751||81,735|
|Long-term debt, less current portion||52,682||64,487|
|Long-term lease obligations, less current portion||25,399||25,721|
|Commitments and contingencies|
|Common stock, par value $0.05 per share, authorized 15,000,000 shares; issued and outstanding 5,355,698 and 5,333,077 respectively||268||267|
|Additional paid-in capital||20,199||19,139|
|Accumulated other comprehensive loss||(96||)||(201||)|
|Total stockholders’ equity||193,140||186,803|
|Total liabilities and stockholders’ equity||$||374,498||$||380,529|
SYS-CON Media announced today that @WebRTCSummit Blog, the largest WebRTC resource in the world, has been launched. @WebRTCSummit Blog offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. @WebRTCSummit Blog can be bookmarked ▸ Here @WebRTCSummit conference site can be bookmarked ▸ Here
Mar. 28, 2015 08:00 PM EDT Reads: 1,702
SYS-CON Events announced today that Cisco, the worldwide leader in IT that transforms how people connect, communicate and collaborate, has been named “Gold Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Cisco makes amazing things happen by connecting the unconnected. Cisco has shaped the future of the Internet by becoming the worldwide leader in transforming how people connect, communicate and collaborat...
Mar. 28, 2015 07:00 PM EDT Reads: 5,152
WSM International is launching a DevOps services division that offers assessment, consulting and implementation to large enterprises and organizations with complex infrastructures. This is the first independent services company to create a dedicated practice to help organizations looking to transition to the DevOps model. The concept of DevOps is to blend information technology (IT) software development with operations to optimize the computing infrastructure according to the specific needs of ...
Mar. 28, 2015 07:00 PM EDT Reads: 1,461
SYS-CON Events announced today that the DevOps Institute has been named “Association Sponsor” of SYS-CON's DevOps Summit, which will take place on June 9–11, 2015, at the Javits Center in New York City, NY. The DevOps Institute provides enterprise level training and certification. Working with thought leaders from the DevOps community, the IT Service Management field and the IT training market, the DevOps Institute is setting the standard in quality for DevOps education and training.
Mar. 28, 2015 06:30 PM EDT Reads: 933
SYS-CON Events announced today that robomq.io will exhibit at SYS-CON's @ThingsExpo, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. robomq.io is an interoperable and composable platform that connects any device to any application. It helps systems integrators and the solution providers build new and innovative products and service for industries requiring monitoring or intelligence from devices and sensors.
Mar. 28, 2015 06:00 PM EDT Reads: 1,395
Temasys has announced senior management additions to its team. Joining are David Holloway as Vice President of Commercial and Nadine Yap as Vice President of Product. Over the past 12 months Temasys has doubled in size as it adds new customers and expands the development of its Skylink platform. Skylink leads the charge to move WebRTC, traditionally seen as a desktop, browser based technology, to become a ubiquitous web communications technology on web and mobile, as well as Internet of Things...
Mar. 28, 2015 06:00 PM EDT Reads: 1,768
Wearable technology was dominant at this year’s International Consumer Electronics Show (CES) , and MWC was no exception to this trend. New versions of favorites, such as the Samsung Gear (three new products were released: the Gear 2, the Gear 2 Neo and the Gear Fit), shared the limelight with new wearables like Pebble Time Steel (the new premium version of the company’s previously released smartwatch) and the LG Watch Urbane. The most dramatic difference at MWC was an emphasis on presenting we...
Mar. 28, 2015 06:00 PM EDT Reads: 1,271
Hosted PaaS providers have given independent developers and startups huge advantages in efficiency and reduced time-to-market over their more process-bound counterparts in enterprises. Software frameworks are now available that allow enterprise IT departments to provide these same advantages for developers in their own organization. In his workshop session at DevOps Summit, Troy Topnik, ActiveState’s Technical Product Manager, will show how on-prem or cloud-hosted Private PaaS can enable organ...
Mar. 28, 2015 05:45 PM EDT Reads: 1,043
Today, IT is not just a cost center. IT is an enabler and driver of business. With the emergence of the hybrid cloud paradigm, IT now has increasingly more capabilities to create new strategic opportunities for a business. Hybrid cloud allows an organization to utilize multi-tenant public clouds, dedicated private clouds, bare metal hosting, and the associated support and services for the right use cases through an on-demand, XaaS model. This model of IT creates tremendous opportunities for busi...
Mar. 28, 2015 05:00 PM EDT Reads: 3,015
Docker is an excellent platform for organizations interested in running microservices. It offers portability and consistency between development and production environments, quick provisioning times, and a simple way to isolate services. In his session at DevOps Summit at 16th Cloud Expo, Shannon Williams, co-founder of Rancher Labs, will walk through these and other benefits of using Docker to run microservices, and provide an overview of RancherOS, a minimalist distribution of Linux designed...
Mar. 28, 2015 04:15 PM EDT Reads: 2,397
Business as usual for IT is evolving into a “Make or Buy” decision on a service-by-service conversation with input from the LOBs. How does your organization move forward with cloud? In his general session at 16th Cloud Expo, Paul Maravei, Regional Sales Manager, Hybrid Cloud and Managed Services at Cisco, discusses how Cisco and its partners offer a market-leading portfolio and ecosystem of cloud infrastructure and application services that allow you to uniquely and securely combine cloud busi...
Mar. 28, 2015 04:15 PM EDT Reads: 1,258
SYS-CON Events announced today that Akana, formerly SOA Software, has been named “Bronze Sponsor” of SYS-CON's 16th International Cloud Expo® New York, which will take place June 9-11, 2015, at the Javits Center in New York City, NY. Akana’s comprehensive suite of API Management, API Security, Integrated SOA Governance, and Cloud Integration solutions helps businesses accelerate digital transformation by securely extending their reach across multiple channels – mobile, cloud and Internet of Thi...
Mar. 28, 2015 04:15 PM EDT Reads: 1,469
Businesses are looking to empower employees and departments to do more, go faster, and streamline their processes. For all workers – but mobile workers especially – utilizing the cloud to reconnect documents and improve processes without destructing existing workflows can have a dramatic impact on productivity. In his session at 16th Cloud Expo, Mark Grilli, vice president of Acrobat Solutions marketing at Adobe Systems Incorporated, will outline new ways that the cloud is changing the way peo...
Mar. 28, 2015 04:00 PM EDT Reads: 1,248
SYS-CON Events announced today that Vitria Technology, Inc. will exhibit at SYS-CON’s @ThingsExpo, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Vitria will showcase the company’s new IoT Analytics Platform through live demonstrations at booth #330. Vitria’s IoT Analytics Platform, fully integrated and powered by an operational intelligence engine, enables customers to rapidly build and operationalize advanced analytics to deliver timely business outcomes ...
Mar. 28, 2015 03:30 PM EDT Reads: 2,131
Are your applications getting in the way of your business strategy? It’s time to rethink your IT approach. In his session at 16th Cloud Expo, Madhukar Kumar, Vice President, Product Management at Liaison Technologies, will discuss a new data-centric approach to IT that allows your data, not applications, to inform business strategy. By moving away from an application-centric IT model where data integration and analysis are subservient to the constraints of applications, your organization will b...
Mar. 28, 2015 03:15 PM EDT Reads: 2,505