Versar, Inc. Announces First Quarter Fiscal 2014 Results

SPRINGFIELD, Va., Nov. 7, 2013 /PRNewswire/ -- Versar, Inc. (NYSE MKT: VSR) today announced financial results for the fiscal first quarter ended September 27, 2013. 

Gross revenue for the first quarter of fiscal year 2014 was $29.1 million, an increase of 30% compared to $22.4 million during the first quarter of the last fiscal year.  The increase was attributable to a combination of Versar's acquisition of Geo-Marine, Inc. (GMI); continued activity associated with its ongoing contract with the U.S. Army Corps of Engineers (USACE) for construction support services in Afghanistan; and the ramp up of the Company's performance based remediation (PBR) work for the U.S. Air Force in New England and the Great Lakes Region. The Company reported net income of $659,000, or $0.07 per share on a fully diluted basis, compared to net income of $845,000 or $0.09 per share on a fully diluted basis for the first quarter last year, which included a loss of $0.01 from discontinued operations. 

During the quarter, Versar acquired Geo-Marine, Inc., a company with approximately $20 million in annual revenues, which provides engineering design, construction management, environmental planning and programming, and other services in support of a wide range of government, industry, and commercial clients.  Key long-term clients include the U.S. Navy, the U.S. Air Force and the U.S. Army Corps of Engineers.  Geo-Marine is expected to be accretive to earnings in year one and adds contracted backlog of $15 million.

As of September 27, 2013, Versar recorded funded backlog of approximately $136 million, an increase of 26% compared to $108 million of funded backlog at the end of fiscal year 2013.

Versar closed the fiscal first quarter 2014 with a cash balance of approximately $5.6 million and stockholders' equity of $38.5 million.

Tony Otten, CEO of Versar said, "We are pleased to report strong revenue growth with improved sequential gross margin performance, continued profitability and increased backlog during the first quarter. We've added several new contracts subsequent to the close of the quarter, including two new task orders for our USACE contract in Afghanistan valued cumulatively at $30.5 million, as well as a program management support contract from the General Services Administration valued at up to $5.4 million and a task order contract from Fairfax County, Virginia for engineering consulting services with an annual maximum capacity of $1.5 million."

Mr. Otten continued, "Our integration of GMI is progressing well and we are confident that their technical capabilities and established customer base will enable us to expand our reach in terms of clients, technical capabilities and geography.  With our solid balance sheet, we believe we are well positioned to drive organic growth and to pursue our acquisition strategy."

Conference Call:

The Company will hold a conference call at 2:00 PM Eastern Time today, Thursday, November 7 to discuss the Company's operational performance and financial results for its quarter ended September 27, 2013. 

The dial in number for the US and Canada is toll free, 877-407-8033.  The international dial in number is 201-689-8033.  Participants should call in a few minutes before 2:00 PM 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:    

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



September 27,
2013


June 28,
2013

ASSETS





Current assets





Cash and cash equivalents

$

5,644

$

8,728

Accounts receivable, net


33,553


29,342

Inventory


1,109


1,225

Prepaid expenses and other current assets


2,050


1,074

Deferred income taxes


1,987


2,314

Income tax receivable


1,512


1,764

Total current assets


45,855


44,447






Property and equipment, net


2,446


2,108

Deferred income taxes, non-current


706


622

Goodwill


9,420


7,515

Intangible assets, net


3,025


1,798

Other assets


1,142


887

Total assets

$

62,594

$

57,377






LIABILITIES AND STOCKHOLDERS' EQUITY





Current liabilities





Accounts payable

$

11,687

$

10,788

Accrued salaries and vacations


2,974


3,042

Other current liabilities


4,009


3,304

Notes payable, current


1,978


333

Total current liabilities


20,648


17,467






Notes payable, non-current


875


333

Deferred income taxes


1,067


849

Other long-term liabilities


1,483


1,104

 Total liabilities


24,073


19,753






Commitments and contingencies




-






Stockholders' equity





Common stock,  $.01 par value; shares authorized; 
    9,907,954 shares issued and 9,619,320 shares outstanding as of  September 27, 2013; 
  9,849,773  shares issued  and  9,579,753 shares outstanding 
as of June 28, 2013


99


99

Capital in excess of par value


29,940


29,758

Retained earnings


10,025


9,366

Treasury stock, at cost


(1,318)


(1,224)

Accumulated other comprehensive loss;
    foreign currency translation


(225)


(375)

Total stockholders' equity


38,521


37,624

Total liabilities and stock holders' equity

$

62,594

$

57,377

 

VERSAR, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Income

(Unaudited-in thousands, except per share amounts)



For the Three Months Ended



September 27,
2013


September 28,
2012






GROSS REVENUE

$

29,120

$

22,396

   Purchased services and materials, at cost


14,410


7,696

   Direct costs of services and overhead


11,758


11,228

GROSS PROFIT


2,952


3,472






   Selling, general and administrative expenses


1,870


1,925

   Other expenses


-


-

OPERATING INCOME


1,082


1,547






OTHER (INCOME) EXPENSE





   Interest (income)


-


(1)

   Interest expense


25


24

INCOME BEFORE INCOME TAXES, from continuing operations


1,057


1,524






   Income tax expense


398


581






NET INCOME FROM CONTINUING OPERATIONS


659


943

Loss from discontinued operations, net of tax benefit of $61


-


(98)

NET INCOME

$

659

$

845






NET INCOME (LOSS) PER SHARE-BASIC and DILUTED





   Continuing operations

$

0.07


0.10

   Discontinued operations


-


(0.01)

NET INCOME PER SHARE-BASIC and DILUTED

$

0.07

$

0.09






WEIGHTED AVERAGE NUMBER OF SHARES
OUTSTANDING-BASIC


9,585


9,392

WEIGHTED AVERAGE NUMBER OF SHARES
OUTSTANDING-DILUTED


9,694


9,424

 

SOURCE Versar, Inc.



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http://www.versar.com

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