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
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(Address of Principal Executive Offices)
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(Zip Code)
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VSE CORPORATION
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||
(Registrant)
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Date: March 5, 2014
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/s/ Thomas R. Loftus
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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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||||||||||||||||||||||||
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Three Months Ended Dec 31
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Twelve Months Ended Dec 31
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||||||||||||||||||||||
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2013
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2012
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% Change
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2013
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2012
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% Change
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||||||||||||||||||
Revenues
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$
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122,350
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$
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136,860
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(10.6
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)%
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$
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471,638
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$
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546,755
|
(13.7
|
)%
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||||||||||||
Operating income
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$
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12,000
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$
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11,764
|
2.0
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%
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$
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44,103
|
$
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51,076
|
(13.7
|
)%
|
||||||||||||
Operating margin
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9.81
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%
|
8.60
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%
|
Up 121 bp
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9.35
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%
|
9.34
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%
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Up 1 bp
|
||||||||||||||
Income from continuing operations
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$
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6,429
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$
|
6,478
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(0.8
|
)%
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$
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23,990
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$
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27,364
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(12.3
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)%
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||||||||||||
Loss from discontinued operations, net of tax
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$
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(1,023
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)
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$
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(4,111
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)
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-
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$
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(1,138
|
)
|
$
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(6,070
|
)
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-
|
||||||||||
Net income
|
$
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5,406
|
$
|
2,367
|
128.4
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%
|
$
|
22,852
|
$
|
21,294
|
7.3
|
%
|
||||||||||||
Income from continuing operations EPS (diluted)
|
$
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1.20
|
$
|
1.22
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(1.6
|
)%
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$
|
4.49
|
$
|
5.15
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(12.8
|
)%
|
||||||||||||
Loss from discontinued operations EPS (diluted)
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$
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(0.19
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)
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$
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(0.77
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)
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-
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$
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(0.21
|
)
|
$
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(1.14
|
)
|
-
|
||||||||||
Net income EPS (diluted)
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$
|
1.01
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$
|
0.45
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124.4
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%
|
$
|
4.28
|
$
|
4.01
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6.7
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%
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·
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Our Wheeler Bros., Inc. subsidiary ("WBI") in our Supply Chain Management Group continues to operate efficiently and effectively, providing steady operating results that have made it a significant contributor to our business. WBI revenues grew by approximately $12 million, or about 8%, in 2013 compared to 2012.
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·
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We appointed Chad Wheeler President and COO of WBI in July 2013. Also in July, Randy Davies, then CEO of WBI, was appointed to the Postal Supplier Council (PSC) Board of Advisors (BoA.) Nomination and appointment to the BoA is based on exceptional contribution to the PSC. WBI has been a PSC member since 2006.
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·
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Our International Group was awarded an indefinite delivery/indefinite quantity (IDIQ) contract to provide program and technical support services for Security Assistance Projects administered by the U.S. Coast Guard Foreign Military Sales Program. This single-award contract has a five-year period of performance (a base year plus four one-year options) and a ceiling in excess of $99 million.
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·
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Our International Group was awarded an IDIQ contract to support the U.S. Department of Justice (DOJ) Criminal Division, Asset Forfeiture and Money Laundering 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.
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·
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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.
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·
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Our Federal Group was also awarded two firm fixed price (FFP) task orders in September 2013 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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·
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Our Federal Group was awarded a delivery order to support Taiwan's Maritime Defense efforts, managed by the Army Aviation and Missile Command's Integrated Material Management Center (AMCOM IMMC) Lower Tier Project Office (LTPO). The delivery order has a four-year period of performance and a value of approximately $24 million.
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·
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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 approximately $12 million.
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