Delaware
(State or Other Jurisdiction
of Incorporation)
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0-3676
(Commission File Number)
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54-0649263
(IRS Employer
Identification Number)
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6348 Walker Lane
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||
Alexandria, VA
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22310
|
|
(Address of Principal Executive Offices)
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(Zip Code)
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VSE CORPORATION
|
||
(Registrant)
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||
Date: October 31, 2013
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/s/ Thomas R. Loftus
|
|
Thomas R. Loftus
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||
Executive Vice President and Chief Financial Officer
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Financial Results
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||||||||||||||||||||||||
(in thousands, except per-share data and percentages)
|
||||||||||||||||||||||||
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Three Months Ended September 30,
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Nine Months Ended September 30,
|
||||||||||||||||||||||
|
2013
|
2012
|
% Change
|
2013
|
2012
|
% Change
|
||||||||||||||||||
Revenues
|
$
|
111,069
|
$
|
134,237
|
(17.3
|
)%
|
$
|
349,288
|
$
|
409,895
|
(14.8
|
)%
|
||||||||||||
Operating income
|
$
|
9,460
|
$
|
14,267
|
(33.7
|
)%
|
$
|
32,103
|
$
|
39,312
|
(18.3
|
)%
|
||||||||||||
Operating margin
|
8.52
|
%
|
10.63
|
%
|
Down 211 bp
|
9.19
|
%
|
9.59
|
%
|
Down 40 bp
|
||||||||||||||
Income from continuing operations
|
$
|
5,327
|
$
|
7,486
|
(28.8
|
)%
|
$
|
17,561
|
$
|
20,886
|
(15.9
|
)%
|
||||||||||||
Loss from discontinued operations, net of tax
|
$
|
(1
|
)
|
$
|
(1,522
|
)
|
-
|
$
|
(115
|
)
|
$
|
(1,959
|
)
|
-
|
||||||||||
Net income
|
$
|
5,326
|
$
|
5,964
|
(10.7
|
)%
|
$
|
17,446
|
$
|
18,927
|
(7.8
|
)%
|
||||||||||||
Income from continuing operations EPS (diluted)
|
$
|
1.00
|
$
|
1.41
|
(29.1
|
)%
|
$
|
3.29
|
$
|
3.94
|
(16.5
|
)%
|
||||||||||||
Loss from discontinued operations EPS (diluted)
|
$
|
-
|
$
|
(0.29
|
)
|
-
|
$
|
(0.02
|
)
|
$
|
(0.37
|
)
|
-
|
|||||||||||
Net income EPS
|
$
|
1.00
|
$
|
1.12
|
(10.7
|
)%
|
$
|
3.27
|
$
|
3.57
|
(8.4
|
)%
|
·
|
Our Federal Group was awarded a task order under our Rapid Response Third Generation (R2‑3G) prime contract to continue support services to the U.S. Army Reserve Command for its Equipment, Engineering, Maintenance and Logistics Readiness Program. The R2-3G task order has a 12-month period of performance with a funded value of $32 million and a ceiling of $46.5 million.
|
·
|
Our Federal Group was also awarded two Firm Fixed Price (FFP) task orders in September under its Field and Installation Readiness Support Team (FIRST) prime contract to continue the support services to USARC for its 63rd and 88th Regional Support Command (RSC) Logistics Readiness Support programs. The 63rd RSC task order has a period of performance of 12-months with one 12-month option. The 88th RSC task order has a period of performance of 12-months with two 12-month options. The total combined value of both task orders is approximately $63 million.
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·
|
Our Federal Group was also awarded two FFP/IDIQ contracts to support the Marine Corps Logistics Command Marine Depot Maintenance Command (MDMC) in Albany, GA. We will support the rebuild effort of approximately 170 40-ton payload, three-axle Medium Heavy Equipment Transporters (MHET) semitrailers and 230 5,000-gallon fuel dispensing semitrailers. Both contracts have a period of performance that includes a 12-month base and four 12-month options with a total combined value of $12 million.
|
·
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Our International Group was awarded an Indefinite Delivery/Indefinite Quantity (ID/IQ) contract to support the U.S. Department of Justice (DOJ) Criminal Division, Asset Forfeiture and Money Laundering (AFML) Section in international asset recovery services. This contract has a period of performance of 12-months with four 12-month options. The initial ceiling for this award is $9 million.
|
·
|
We have been the prime contractor for the U. S. Department of Treasury Executive Office for Asset Forfeiture (TEOAF) general property program since 2006. We received notice in September 2013 that the follow-on contract for this work was awarded to another company. We have protested this award at GAO and are continuing to perform work on this program until the final outcome of the protest is determined.
|
·
|
Our International Group was awarded four task orders under the N*STAR Navy FMS contract, supporting the Egyptian and Turkish Navies. The task orders have a total combined value of $10.5 million.
|
·
|
Randy Davies, CEO of our subsidiary, Wheeler Bros., Inc. was appointed to the USPS Postal Supplier Council Board of Advisors.
|
·
|
We were informed in September 2013 that USPS does not currently plan to move forward with the programmatic purchase of our newly designed repowered gasoline engines for its delivery vehicles. However, we plan to apply the resources used and supplier relationships cultivated through our repowered engine development effort toward offering the USPS standard engines and components on an as needed basis.
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Financial Statements
|
||||||||
VSE Corporation and Subsidiaries
|
||||||||
Unaudited Condensed Consolidated Balance Sheets
|
||||||||
(in thousands except share and per share amounts)
|
||||||||
|
September 30,
|
December 31,
|
||||||
|
2013
|
2012
|
||||||
Assets
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$
|
280
|
$
|
1,501
|
||||
Receivables, principally U.S. Government, net
|
71,460
|
90,621
|
||||||
Inventories
|
40,263
|
41,555
|
||||||
Deferred tax assets
|
1,145
|
767
|
||||||
Other current assets
|
12,908
|
8,641
|
||||||
Assets held for sale
|
2,112
|
2,890
|
||||||
Total current assets
|
128,168
|
145,975
|
||||||
|
||||||||
Property and equipment, net
|
58,811
|
62,468
|
||||||
Intangible assets, net
|
84,798
|
92,421
|
||||||
Goodwill
|
92,052
|
92,052
|
||||||
Deferred tax assets
|
1,884
|
2,099
|
||||||
Other assets
|
16,754
|
15,196
|
||||||
Total assets
|
$
|
382,467
|
$
|
410,211
|
||||
|
||||||||
Liabilities and Stockholders' Equity
|
||||||||
Current liabilities:
|
||||||||
Current portion of long-term debt
|
$
|
24,837
|
$
|
23,274
|
||||
Accounts payable
|
25,581
|
30,063
|
||||||
Accrued expenses and other current liabilities
|
20,822
|
26,688
|
||||||
Dividends payable
|
-
|
423
|
||||||
Liabilities held for sale
|
385
|
551
|
||||||
Total current liabilities
|
71,625
|
80,999
|
||||||
|
||||||||
Long-term debt, less current portion
|
79,638
|
116,377
|
||||||
Deferred compensation
|
12,109
|
10,684
|
||||||
Long-term lease obligations, less current portion
|
26,820
|
27,435
|
||||||
Earn-out obligation
|
8,987
|
9,098
|
||||||
Other liabilities
|
1,047
|
1,283
|
||||||
Total liabilities
|
200,226
|
245,876
|
||||||
|
||||||||
Commitments and contingencies
|
||||||||
Stockholders' equity:
|
||||||||
|
||||||||
Common stock, par value $0.05 per share, authorized 15,000,000 shares; issued and outstanding 5,333,077 and 5,293,316 respectively
|
267
|
265
|
||||||
Additional paid-in capital
|
19,139
|
18,193
|
||||||
Retained earnings
|
163,152
|
146,614
|
||||||
Accumulated other comprehensive loss
|
(317
|
)
|
(737
|
)
|
||||
Total stockholders' equity
|
182,241
|
164,335
|
||||||
Total liabilities and stockholders' equity
|
$
|
382,467
|
$
|
410,211
|