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Press release from PR Newswire

Versar, Inc. Announces Third Quarter Fiscal Year 2013 Results

Monday, May 13, 2013

Versar, Inc. Announces Third Quarter Fiscal Year 2013 Results

08:00 EDT Monday, May 13, 2013

Reports 22.7% Revenue Growth

SPRINGFIELD, Va., May 13, 2013 /PRNewswire/ -- Versar, Inc. (NYSE MKT: VSR) today announced financial and operating  results for the fiscal year third quarter and nine months ended March 29, 2013. 

Gross revenue for the third quarter of fiscal year 2013 was $31.6 million, a 22.7% increase compared to revenue of $25.7 million reported in the third quarter of fiscal year 2012. The revenue growth was driven by a $5.4 million increase in revenue from the Company's performance based remediation (PBR) work for the U.S. Air Force and an additional $1 million in revenue attributable to the operations of Charron Construction Consulting, Inc. ("Charron"), acquired in May 2012.

Net income for the third quarter of fiscal year 2013 was $1.0 million or $0.11 per basic and diluted share, an increase of 8.2% compared to net income in the third quarter of fiscal 2012.  Gross profit margin declined to 10.2% of sales for the quarter primarily due to a shift in revenue mix with the completion of two particularly high margin programs.  Versar reduced SG&A expenses to 5.9% of sales from 8.2% of sales in the third quarter of the prior year.    

For the first nine months of fiscal year 2013, Versar recorded gross revenue of $79.9 million, a decrease of 11.6% compared to $90.3 million during the first nine months of fiscal 2012.  This decrease was primarily driven by lower domestic revenue of approximately $5.5 million related to Versar's completion of the Tooele Chemical Demilitarization project and decreased domestic construction activity. 

Versar reported net income of $2.8 million or $0.30 per basic and diluted share, an 8.2% increase compared to net income of $2.6 million or $0.28 per basic and diluted share during the first nine months of the previous fiscal year.  Gross profit margin declined to 12.9% of sales.  SG&A expense rose slightly  to 7.6% of sales from 7.1% of sales for the nine months of fiscal 2012. 

As of March 29, 2013, Versar recorded funded backlog of approximately $121 million, an increase of 24.7% compared to approximately $97 million at March 30, 2012 and an increase of 30.1% when compared to $93 million in funded backlog at the end of fiscal year 2012.  This increase was due largely to new awards won related to new work in Afghanistan and  PBR projects for the U.S. Air Force at various installations across the United States. 

Tony Otten, CEO of Versar said, "We are pleased to report strong revenue growth, continued profitability and increased backlog during the third quarter.  Our revenue growth was driven by our performance based remediation contracts with the U.S. Air Force and by revenues related to construction management projects acquired with our purchase of Charron.  Additionally, our work in Afghanistan has been reinvigorated by our previously announced $170 million Personal Services contract for the U.S. Army Corps of Engineers, largely offsetting the wind down of our Title II work with the U.S. Air Force in that country.  However, gross profit margin declined as a result of a shift in revenue mix with the completion of two particularly high margin programs, as well as a modest margin impact resulting from one-time costs associated with moving operations in Afghanistan to a more centralized, secure location.  We continue to see opportunities internationally that are a good match to our capabilities.

"Our focus remains on securing significant contracts related to non-discretionary funding, such as sustainable range management, unexploded ordnance and performance based remediation.  As a solutions based company, we are continuously pursuing new partnership opportunities and the expansion of our existing relationships, domestically and internationally." 

Conference Call:The Company will host a conference call today, May 13 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. 

A replay of the teleconference will be available until May 27, 2013 and may be accessed by dialing (877) 660-6853. International callers may dial (201) 612-7415.  Callers should use conference ID: 411422.  Replays will also 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:    

David Gray             

John Nesbett or Jennifer Belodeau

Director of Financial Reporting   

Institutional Marketing Services (IMS)

Versar, Inc.           

(203) 972-9200

(703) 642-6888         

jnesbett@institutionalms.com

dgray@versar.com

 

 

 

VERSAR, INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(In thousands, except share amounts)

 

As of

March 29,

2013

June 29,

2012

(unaudited)

ASSETS

  Current assets

     Cash and cash equivalents

$

8,195

$

8,012

     Accounts receivable, net

30,961

25,598

     Inventory

1,232

1,428

     Prepaid expenses and other current assets

2,449

1,938

     Deferred income taxes

2,446

2,305

          Total current assets

45,283

39,281

  Property and equipment, net

2,501

3,341

  Deferred income taxes, non-current

551

193

  Goodwill

7,515

7,418

  Intangible assets, net

1,911

2,283

  Other assets

919

861

          Total assets

$

58,680

$

53,377

LIABILITIES AND STOCKHOLDERS' EQUITY

  Current liabilities

     Accounts payable

$

11,286

$

5,415

     Accrued salaries and vacation

2,504

3,124

     Other current liabilities

4,445

7,409

     Income tax payable

-

677

     Notes payable, current

333

333

          Total current liabilities

18,568

16,958

     Notes payable, non-current

417

667

     Deferred income taxes

792

332

     Other long-term liabilities

1,098

1,037

          Total liabilities

20,875

18,994

  Commitments and contingencies

  Stockholders' equity

     Common stock, $.01 par value; 30,000,000 shares

       authorized; 9,826,373 shares and 9,645,149 shares issued;   9,559,060

       shares and 9,391,575 shares outstanding               

98

96

     Capital in excess of par value

29,583

29,047

     Retained earnings

9,775

6,963

     Treasury stock, at cost (267,313 and 253,574 shares, respectively)

(1,212)

(1,166)

     Accumulated other comprehensive income (loss); foreign currency translation

(439)

(557)

          Total stockholders' equity

37,805

34,383

          Total liabilities and stockholders' equity 

$

58,680

$

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 Nine Months Ended

March 29,

2013

March 30,

2012

March 29,

2013

March 30,

2012

GROSS REVENUE

$

31,600

$

25,748

$

79,865

$

90,312

   Purchased services and materials, at cost

15,763

9,950

33,979

42,193

   Direct costs of services and overhead

12,620

11,507

35,588

36,648

GROSS PROFIT

3,217

4,291

10,298

11,471

   Selling, general and administrative                 expenses

1,877

2,120

6,051

6,399

   Other expense

-

2

-

55

OPERATING INCOME

1,340

2,169

4,247

5,017

OTHER (INCOME) EXPENSE

   Interest (income)

(3)

(4)

(4)

(72)

   Interest expense

21

13

66

62

Write-off of uncollectible financing receivable

-

465

-

694

INCOME BEFORE INCOME TAXES

1,322

1,695

4,185

4,333

   Income tax expense

280

732

1,372

1,729

NET INCOME

$

1,042

$

963

$

2,813

$

2,604

NET INCOME PER SHARE ? BASIC

$

0.11

$

0.10

$

0.30

$

0.28

 

NET INCOME PER SHARE ? DILUTED

$

 

0.11

 

$

0.10

 

$

 

0.30

 

$

 

0.28

 

WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING

         ? BASIC

9,545

9,383

9,482

9,361

WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING

         ? DILUTED

9,575

9,406

9,512

9,379

 

SOURCE Versar, Inc.

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