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Versar, Inc. Announces Second Quarter Fiscal Year 2013 Results
Submitted by admin on 2/11/2013 @ 6:15 AM
Companies mentioned in this article:
Versar, Inc.
SPRINGFIELD, Va., Feb. 11, 2013 /PRNewswire/ -- Versar, Inc. (NYSE MKT: VSR) today announced financial results for the fiscal second quarter ended December 28, 2012.
Net income for the second quarter of fiscal year 2013 was $0.9 million or $0.10 per basic and diluted share, an increase of 12.5% compared to net income of $0.8 million or $0.09 per basic and diluted share in the second quarter of fiscal 2012.
The Company achieved gross profit margins of 15.3% in the second quarter as compared to 11.0% in the same quarter last year and operating income margins improved to 6.1% from 4.2% in the same quarter last year. The improved margins were largely due to the Company's continued focus on controlling costs and improving project management.
Gross revenue for the second quarter of fiscal year 2013 was $24.7 million, a decrease of 21.1% compared to revenue of $31.3 million reported in the second quarter of fiscal year 2012. This decrease was a result of anticipated reductions in government spending for international reconstruction operations and construction management services in Iraq. This slowdown was coupled with lower domestic revenue of $1.8 million related to Versar's completion of the Tooele Chemical Demilitarization project in fiscal year 2012. However, the recent award of the $170 million Afghan PSC IDIQ will increase our work in Afghanistan.
For the first six months of fiscal year 2013, Versar recorded gross revenue of $48.3 million. While this was a 25.2% decrease compared to revenue of $64.6 million in the first six months of last fiscal year, gross profit margin improved to 14.7% of sales, compared to a gross profit margin of 11.1% in the first six months of the prior year. Operating income increased 11.5% in the first half of fiscal year 2013 to $2.9 million from $2.6 million in the same period last year. Versar achieved net income of $1.8 million or $0.19 per basic and diluted share in the first six months of fiscal year 2013 compared to $1.6 million or $0.18 per basic and diluted share in the first six months of fiscal year 2012.
As of December 28, 2012, Versar recorded funded backlog of approximately $118 million, an increase of 39% compared to approximately $85 million at December 30, 2011. This increase was due largely to new awards won related to new work in Afghanistan and our performance-based remediation projects ("PBR") for the U.S Air Force at various installations across the United States.
Subsequent to the end of the quarter, Versar announced its selection as prime contractor to perform performance-based remediation (PBR) for the New England Region. The initial funded award value is $10.5 million, with options totaling $4.5 million for a potential contract total of $15 million over the next eight years. These services will be performed for the Air Force Civil Engineer Center (AFCEC) under the WERC09 contract at Hanscom Air Force Base, MA; New Boston Air Reserve Station, MA; Westover Air Reserve Base, MA; and Niagara Air Reserve Station, NY.
Tony Otten, CEO of Versar said, "We have achieved another quarter of solid profitability, improved margins and strengthened backlog. While we saw an anticipated decline in revenues related to the reduction in government spending in Iraq and wind down of Title II work in Afghanistan in the first half of this fiscal year, we are now fully ramped up on our Afghanistan Personal Services contract. We continue to make progress in securing significant contracts for opportunities related to non-discretionary funding such as sustainable range management, unexploded ordnance and performance based remediation (PBR). The recent New England Region Air Force award is our fourth major AFCEC PBR award in just over a year and clearly validates our capabilities in accomplishing remediation and compliance activities at contaminated sites. We continue to pursue opportunities to provide our expertise to assist our existing and new partners with effective and permanent solutions and identifying new partners."
Mr. Otten concluded, "Our balance sheet is strong with over $13 million in cash and working capital of $25 million, positioning us well to drive organic growth as well as to pursue acquisitions."
Conference Call:
The Company will host a conference call today, February 11 at 2:00 p.m. Eastern Time to discuss its operational performance and financial results. The conference call may be accessed in the U.S. and Canada by dialing toll-free (877) 407-8033. International callers may access the call by dialing (201) 689-8033.
Participants should call in a few minutes before 2:00 p.m. Eastern time. For those unable to attend the conference call, replays will be available on Versar's website, www.versar.com.
VERSAR, INC., headquartered in Springfield, Virginia, is a publicly traded global project management company providing sustainable value oriented solutions to government and commercial clients in the construction management, environmental services, munitions response, and professional services market areas.
VERSAR operates a number of web sites, including the corporate web sites, www.versar.com, www.geomet.com, www.viap.com, www.dtaps.com, www.adventenv.com, www.charronconsulting.com, and www.ppsgb.com.
This news release contains forward-looking information. The forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be significantly impacted by certain risks and uncertainties described herein and in Versar's Annual Report on Form 10-K filed with the Securities and Exchange Commission for the fiscal year ended June 29, 2012, as updated from time to time in the Company's periodic filings. The forward-looking statements are made as of the date hereof and Versar does not undertake to update its forward-looking statements.
(Logo: http://photos.prnewswire.com/prnh/20120806/NE52646LOGO )
Contact: Michael J. Abram John Nesbett or Jennifer Belodeau
Senior Vice President Institutional Marketing Services (IMS)
Versar, Inc. (203) 972-9200
(703) 642-6706 jnesbett@institutionalms.com
mabram@versar.com
VERSAR, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(In thousands, except share amounts)
As of
-----
Dec. 28, June 29,
2012 2012
---- ----
(unaudited)
ASSETS
Current assets
Cash and cash
equivalents $13,650 $8,012
Accounts receivable, net 21,785 25,598
Inventory 1,395 1,428
Prepaid expenses and other
current assets 1,160 1,938
Deferred income taxes 2,069 2,305
Total current assets 40,059 39,281
Property and equipment, net 2,830 3,341
Deferred income taxes, non-
current 582 193
Goodwill 7,515 7,418
Intangible assets, net 2,128 2,283
Other assets 837 861
--- ---
Total assets $53,951 $53,377
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities
Accounts payable $6,755 $5,415
Accrued salaries and vacation 3,129 3,124
Other current liabilities 5,013 7,409
Income tax payable 10 677
Notes payable, current 333 333
Total current liabilities 15,240 16,958
Notes payable, non-current 500 667
Deferred income taxes 647 332
Other long-term liabilities 1,079 1,037
----- -----
Total liabilities 17,466 18,994
------ ------
Commitments and contingencies
Stockholders' equity
Common stock, $.01 par value;
30,000,000 shares
authorized; 9,792,873 shares and
9,645,149 shares issued;
9,525,560 98 96
shares and 9,391,575 shares
outstanding
Capital in excess of par value 29,385 29,047
Retained earnings 8,733 6,963
Treasury stock, at cost (267,313
and 253,574 shares,
respectively) (1,212) (1,166)
Accumulated other comprehensive
loss; foreign currency
translation (519) (557)
---- ----
Total stockholders' equity 36,485 34,383
------ ------
Total liabilities and
stockholders' equity $53,951 $53,377
VERSAR, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Income
(Unaudited - in thousands, except per share amounts)
For the Three Months Ended For the Six Months Ended
-------------------------- ------------------------
December 28, December 30, December 28, December 30,
2012 2011 2012 2011
---- ---- ---- ----
GROSS REVENUE $24,715 $31,280 $48,266 $64,564
Purchased services and materials, at cost 9,891 16,085 18,216 32,243
Direct costs of services and overhead 11,056 11,748 22,969 25,141
------ ------ ------ ------
GROSS PROFIT 3,768 3,447 7,081 7,180
Selling, general and administrative expenses
2,249 2,126 4,174 4,508
Other expense --- 19 --- 53
OPERATING INCOME 1,519 1,302 2,907 2,619
OTHER (INCOME) EXPENSE
Interest (income) --- (39) (1) (68)
Interest expense 22 19 46 49
--- --- --- ---
INCOME BEFORE INCOME TAXES 1,497 1,322 2,862 2,638
Income tax expense 572 505 1,092 997
--- --- ----- ---
NET INCOME $925 $817 $1,770 $1,641
NET INCOME PER SHARE - BASIC $0.10 $0.09 $0.19 $0.18
$0.10 0.09
NET INCOME PER SHARE - DILUTED $ $0.19 $0.18
===== =====
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING
- BASIC 9,507 9,365 9,450 9,352
===== ===== ===== =====
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING
- DILUTED 9,536 9,391 9,479 9,372
===== ===== ===== =====
SOURCE Versar, Inc.