Financial Results (Unaudited)
|
||||||||||||||||||||||||
(in thousands, except per-share data and percentages)
|
||||||||||||||||||||||||
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
||||||||||||||||||||||
|
2015
|
2014
|
% Change
|
2015
|
2014
|
% Change
|
||||||||||||||||||
Revenues
|
$
|
131,126
|
$
|
107,962
|
21.5
|
%
|
$
|
251,917
|
$
|
227,371
|
10.8
|
%
|
||||||||||||
Operating income
|
$
|
11,496
|
$
|
10,703
|
7.4
|
%
|
$
|
22,180
|
$
|
22,060
|
0.5
|
%
|
||||||||||||
Operating margin
|
8.77
|
%
|
9.91
|
%
|
Down 114 bp
|
8.80
|
%
|
9.70
|
%
|
Down 90 bp
|
||||||||||||||
Income from continuing operations
|
$
|
5,479
|
$
|
5,944
|
(7.8
|
)%
|
$
|
10,699
|
$
|
12,213
|
(12.4
|
)%
|
||||||||||||
Loss from discontinued operations, net of tax
|
-
|
$
|
(279
|
)
|
-
|
-
|
$
|
(894
|
)
|
-
|
||||||||||||||
Net income
|
$
|
5,479
|
$
|
5,665
|
(3.3
|
)%
|
$
|
10,699
|
$
|
11,319
|
(5.5
|
)%
|
||||||||||||
Income from continuing operations EPS (diluted)
|
$
|
1.02
|
$
|
1.11
|
(8.1
|
)%
|
$
|
1.99
|
$
|
2.28
|
(12.7
|
)%
|
||||||||||||
Loss from discontinued operations EPS (diluted)
|
-
|
$
|
(0.05
|
)
|
-
|
-
|
$
|
(0.17
|
)
|
-
|
||||||||||||||
Net income EPS (diluted)
|
$
|
1.02
|
$
|
1.06
|
(3.8
|
)%
|
$
|
1.99
|
$
|
2.11
|
(5.7
|
)%
|
·
|
Revenues from our Supply Chain Management Group, which provides supply chain support for truck fleets, increased by 13.5% for the first six months of 2015 as compared to the same period of 2014.
|
·
|
VS2, LLC, our joint venture between VSE's Federal Services Group and CB&I Federal Services, was awarded a Logistics Support Services task order under the U.S. Army's Enhanced Army Global Logistics Enterprise (EAGLE) Program to support base operations and logistics at Fort Benning, Georgia. This task order has a base year, four one-year options, and one six‑month option. The total potential value of the task order is $263 million, and VSE's potential value is approximately $110 million, if all option periods are exercised.
|
·
|
Our Federal Services Group was selected as one of 20 prime contractors for the U.S. Army Tank-Automotive and Armament Command's (TACOM) Strategic Services Solutions (TS3) Equipment Related Services (ERS) contract. The Federal Services Group will compete with other prime contractors for task order awards under this indefinite-delivery, indefinite-quantity (IDIQ) contract, which has a combined maximum ceiling value of $1.1 billion and an eight‑year period of performance if all options are exercised.
|
·
|
VSE's Federal Services Group also was named one of 19 prime contractors on the TACOM TS3 Research and Development (R&D) IDIQ contract, which has a combined maximum ceiling value of $634 million and an eight‑year period of performance if all options are exercised.
|
·
|
Joseph "JR" Brown was appointed in May to serve as the President of our Federal Services Group.
|
·
|
Our Akimeka subsidiary was awarded a task order under the Chief Information Officer - Solutions and Partners 3 (CIO-SP3) Government-Wide Acquisition Contract (GWAC) for core development and sustainment for the Joint Medical Asset Repository (JMAR) system. This Firm Fixed Price (FFP) task order has an 11-month base period of performance, plus three one-year option periods, and a total contract value of approximately $14.9 million, if all options are exercised.
|
Financial Statements
|
||||||||
VSE Corporation and Subsidiaries
|
||||||||
Unaudited Consolidated Balance Sheets
|
||||||||
(in thousands except share and per share amounts)
|
||||||||
|
June 30,
|
December 31,
|
||||||
|
2015
|
2014
|
||||||
Assets
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$
|
444
|
$
|
263
|
||||
Receivables
|
76,685
|
59,391
|
||||||
Inventories
|
113,699
|
49,363
|
||||||
Deferred tax assets
|
4,577
|
1,834
|
||||||
Other current assets
|
12,557
|
11,517
|
||||||
Total current assets
|
207,962
|
122,368
|
||||||
|
||||||||
Property and equipment, net
|
64,988
|
52,911
|
||||||
Intangible assets, net
|
157,668
|
72,209
|
||||||
Goodwill
|
184,384
|
92,052
|
||||||
Other assets
|
17,028
|
15,790
|
||||||
Total assets
|
$
|
632,030
|
$
|
355,330
|
||||
|
||||||||
Liabilities and Stockholders' Equity
|
||||||||
Current liabilities:
|
||||||||
Current portion of long-term debt
|
$
|
15,682
|
$
|
24,837
|
||||
Accounts payable
|
36,167
|
29,424
|
||||||
Current portion of earn-out obligations
|
23,807
|
9,455
|
||||||
Accrued expenses and other current liabilities
|
24,688
|
23,245
|
||||||
Dividends payable
|
591
|
536
|
||||||
Total current liabilities
|
100,935
|
87,497
|
||||||
|
||||||||
Long-term debt, less current portion
|
226,384
|
23,563
|
||||||
Deferred compensation
|
13,787
|
12,563
|
||||||
Long-term lease obligations, less current portion
|
23,988
|
24,584
|
||||||
Earn-out obligation, less current portion
|
12,281
|
-
|
||||||
Deferred income taxes
|
38,525
|
1,634
|
||||||
Total liabilities
|
415,900
|
149,841
|
||||||
|
||||||||
Commitments and contingencies
|
||||||||
|
||||||||
Stockholders' equity:
|
||||||||
Common stock, par value $0.05 per share, authorized 15,000,000 shares; issued and outstanding 5,374,863 and 5,358,261 respectively
|
269
|
268
|
||||||
Additional paid-in capital
|
21,597
|
20,348
|
||||||
Retained earnings
|
194,442
|
184,873
|
||||||
Accumulated other comprehensive loss
|
(178
|
)
|
-
|
|||||
Total stockholders' equity
|
216,130
|
205,489
|
||||||
Total liabilities and stockholders' equity
|
$
|
632,030
|
$
|
355,330
|