-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, UednthF6fUvIjR3lbLsziII65+bW3Rh5FygwYz15+97OfmAC4uyVh5jw1iwHn0MC 5VsLAysl+3RIAQO9se/BoQ== 0000102752-07-000003.txt : 20070226 0000102752-07-000003.hdr.sgml : 20070226 20070226115508 ACCESSION NUMBER: 0000102752-07-000003 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20061231 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20070226 DATE AS OF CHANGE: 20070226 FILER: COMPANY DATA: COMPANY CONFORMED NAME: VSE CORP CENTRAL INDEX KEY: 0000102752 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-ENGINEERING SERVICES [8711] IRS NUMBER: 540649263 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-03676 FILM NUMBER: 07648061 BUSINESS ADDRESS: STREET 1: 2550 HUNTINGTON AVE CITY: ALEXANDRIA STATE: VA ZIP: 22303 BUSINESS PHONE: 7039604600 MAIL ADDRESS: STREET 1: 2550 HUNTINGTON AVENUE CITY: ALEXANDRIA STATE: VA ZIP: 22303 FORMER COMPANY: FORMER CONFORMED NAME: VALUE ENGINEERING CO DATE OF NAME CHANGE: 19790612 8-K 1 vse8k022107.txt VSE CORPORATION FORM 8-K FEBRUARY 21, 2007 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K Current Report Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): February 21, 2007 VSE CORPORATION (Exact Name of Registrant as Specified in its Charter) DELAWARE (State or Other Jurisdiction of Incorporation or Organization) 0-3676 54-0649263 (Commission File Number) (I.R.S. Identification Number) 2550 Huntington Avenue Alexandria, Virginia 22303-1499 (Address of Principal Executive Offices) (Zip Code) Registrant's Telephone Number, Including Area Code: (703) 960-4600 Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) VSE CORPORATION Item 2.02 Results of Operations Attached hereto as Exhibit 99.1 is a copy of the Registrant's news release dated February 21, 2007 announcing the consolidated financial results for the three- and twelve-month periods ended December 31, 2006. Item 9.01 Financial Statements and Exhibits (C) Exhibits Exhibit Number ------- 99.1 News Release, February 21, 2007 entitled "VSE Reports Financial Results for 2006" -2- SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. VSE CORPORATION (Registrant) Date: February 26, 2007 /s/ T. R. Loftus ----------------------------- T. R. Loftus Executive Vice President and Chief Financial Officer -3- EX-99.1 2 vseexh99-1.txt NEWS RELEASE "VSE REPORTS FINANCIAL RESULTS FOR 2006" EXHIBIT 99.1 VSE REPORTS FINANCIAL RESULTS FOR 2006 Company Earns $7.8 million ($3.21 per diluted share) on Revenues of $364 million; CEO Anticipates Continued Growth in 2007 Alexandria, Virginia, February 21, 2007 - VSE Corporation (Nasdaq: VSEC) 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. -more- 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." Safe Harbor This news release contains statements which, 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 Securities and Exchange Commission. VSE provides diversified services to the engineering, energy and environment, defense, and homeland security markets from more than 20 locations across the United States and around the world. For more information on VSE services and products, please see the Company's web site at www.vsecorp.com or contact Len Goldstein, Director of Business and New Product Development, at (703) 317-5202. News Contact: C. S. Weber, CAO, (703) 329-4770 ### -----END PRIVACY-ENHANCED MESSAGE-----