SPRINGFIELD, Va., Feb. 5, 2015 /PRNewswire/ -- Versar, Inc.
(NYSE MKT: VSR) today announced financial results for the fiscal
second quarter and six months ended December
26, 2014.
Financial Results
Gross revenue for the second quarter of fiscal year 2015
increased 22% to $34.2 million,
compared to revenues of $28.0 million
during the second quarter of the last fiscal year. Sequentially,
revenues increased 15% as compared to the first quarter of fiscal
2015. The Company reported gross margins of 10%, consistent
with gross margins in the same prior year quarter. Net income
for the quarter was $277,000 or
$0.03 per share as compared to net
income of $100,000 or $0.01 per share in the same period of fiscal
2014. In the second quarter of 2014, net income included
$0.02 from discontinued operations
and ($0.01) from continued
operations.
Revenues for the six months ended December 26, 2014 increased 12% to $63.7 million as compared to revenues of
$57.2 million in the same prior year
period. The Company reported a decrease in first half gross
margins to 10% as compared to gross margins of 11% in the first
half of fiscal 2014, related primarily to the previously disclosed
loss on a construction project managed out of our now closed
Knoxville office and the continued wind down of Title II work in
Afghanistan. Net income for the first six months of fiscal
2015 was $190,000 or $0.02 per share as compared to net income of
$757,000 or $0.08 per share in the first six months of fiscal
2014.
Tony Otten, CEO of Versar, said,
"We're pleased to have achieved strong second quarter results as we
built on the momentum of the first quarter by delivering revenue
growth, margin improvement and a return to profitability.
Additionally during the quarter, SG&A expenses decreased as a
percentage of sales and we expect to achieve additional
efficiencies as we complete the integration of J.M. Waller. Funded backlog remains robust
at $245 million, and demonstrates the
marketplace recognition of our expanded capabilities, which have
been enhanced through our acquisitions of both J.M. Waller and GMI. We expect to begin
on-site work at Dover Air Force Base this week as part of our
previously announced $98.3 million
task order contract and continue to see a strong pipeline across
each of our three core segments.
Increased Funded Backlog
As of December 26, 2014, Versar
recorded funded backlog of approximately $245 million, an increase of 115% compared to
$114 million of funded backlog at the
end of fiscal year 2014.
During the quarter, Versar announced the award of two new task
orders under its personal services contract in Afghanistan with a total value of $18.3 million; a $4.2
million contract to provide fence to fence environmental
services at Barksdale Air Force Base in Louisiana and Columbus Air Force Base in Mississippi; a $3.5
million contract from the Air Force Reserve Command for
Facilities Operations Capability and Utilization Surveys at several
locations and a $2.6 million contract
to provide construction manager as agent services for the new
Department of State federal office building in Charleston, SC.
Following the close of the quarter, the Company's joint venture
with Johnson Controls was awarded $6.1
million in design/build/repair task orders for electrical,
water transmission and compressed air systems at the Kaena Point
Satellite Tracking Station, Hawaii
and at Laughlin Air Force Base, Texas. The joint venture was
also awarded a $2 million contract to
provide design/build construction services for upgrades and repairs
at Camp Arifjan,
Kuwait.
"We have built our business on our ability to provide a broad
range of customized solutions for customers in any location or
environment. Our recent acquisitions have enhanced our
competitive advantage as demonstrated by our topline growth in the
quarter and we are optimistic that we are well positioned to grow
our customer base, further improve revenue and margin performance
and sustain profitability through the balance of fiscal year 2015,"
Mr. Otten concluded.
Conference Call:
The Company will hold a conference call at 2:00 PM Eastern Time today, Thursday, February 5, to discuss the Company's
operational performance and financial results for the fiscal
second quarter and six months ended December
26, 2014.
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, a
replay 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 the corporate web sites, www.versar.com,
and www.versarpps.com, and www.jmwaller.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
27, 2014, 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.
|
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
|
|
|
December 26,
2014
(Unaudited)
|
|
June 27,
2014
|
|
ASSETS
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
165
|
$
|
9,674
|
|
Accounts receivable,
net
|
|
34,187
|
|
25,983
|
|
Inventory,
net
|
|
1,428
|
|
1,294
|
|
Prepaid expenses and
other current assets
|
|
1,745
|
|
1,303
|
|
Deferred income
taxes
|
|
2,209
|
|
2,254
|
|
Income tax
receivable
|
|
2,262
|
|
2,325
|
|
Total current
assets
|
|
41,996
|
|
42,833
|
|
Property and
equipment, net
|
|
2,413
|
|
2,389
|
|
Deferred income taxes,
non-current
|
|
542
|
|
533
|
|
Goodwill
|
|
15,808
|
|
8,073
|
|
Intangible assets,
net
|
|
5,171
|
|
2,930
|
|
Other
assets
|
|
1,084
|
|
1,003
|
|
Total
assets
|
$
|
67,014
|
$
|
57,761
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Accounts
payable
|
$
|
11,350
|
$
|
11,272
|
|
Accrued salaries and
vacation
|
|
3,751
|
|
2,912
|
|
Line of
credit
|
|
394
|
|
-
|
|
Other current
liabilities
|
|
2,206
|
|
3,568
|
|
Notes payable,
current
|
|
2,166
|
|
958
|
|
Total current
liabilities
|
|
19,867
|
|
18,710
|
|
Notes payable,
non-current
|
|
8,093
|
|
156
|
|
Other long-term
liabilities
|
|
1,126
|
|
1,110
|
|
Total
liabilities
|
|
29,086
|
|
19,976
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
-
|
|
-
|
|
Stockholders'
equity
|
|
|
|
|
|
Common stock $.01 par
value; 30,000,000 shares authorized;
10,123,286 shares issued and 9,801,609 shares outstanding as
of
December 26, 2014,
9,849,773 shares issued and 9,708,107 shares outstanding
as of June 27, 2014.
|
|
101
|
|
100
|
|
Capital in excess of
par value
|
|
30,615
|
|
30,393
|
|
Retained
earnings
|
|
9,222
|
|
9,032
|
|
Treasury stock, at
cost
|
|
(1,452)
|
|
(1,396)
|
|
Accumulated other
comprehensive loss;
foreign currency translation
|
|
(558)
|
|
(344)
|
|
Total stockholders'
equity
|
|
37,928
|
|
37,785
|
|
Total liabilities and
stockholders' equity
|
$
|
67,014
|
$
|
57,761
|
|
VERSAR, INC. AND
SUBSIDIARIES
|
|
Condensed
Consolidated Statements of Operations
|
|
(Unaudited - in
thousands, except per share amounts)
|
|
|
|
|
For the Three Months
Ended
|
|
For the Six Months
Ended
|
|
|
|
December 26,
2014
|
|
December 27,
2013
|
|
December 26,
2014
|
|
December 27,
2013
|
|
|
|
|
|
|
|
|
|
|
|
GROSS
REVENUE
|
|
$
|
34,162
|
$
|
28,037
|
$
|
63,748
|
$
|
57,158
|
|
Purchased services and materials,
at cost
|
|
|
17,031
|
|
14,359
|
|
29,258
|
|
28,769
|
|
Direct
costs of services and
overhead
|
|
|
13,682
|
|
10,864
|
|
28,434
|
|
22,229
|
|
GROSS
PROFIT
|
|
|
3,449
|
|
2,814
|
|
6,056
|
|
6,160
|
|
|
|
|
|
|
|
|
|
|
|
Selling,
general and
administrative expenses
|
|
|
2,925
|
|
2,898
|
|
5,616
|
|
5,161
|
|
OPERATING INCOME
(LOSS)
|
|
|
524
|
|
(84)
|
|
440
|
|
999
|
|
|
|
|
|
|
|
|
|
|
|
OTHER
EXPENSE
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
-
|
|
(13)
|
|
-
|
|
(13)
|
|
Interest
expense
|
|
|
142
|
|
42
|
|
198
|
|
67
|
|
INCOME (LOSS)
BEFORE
INCOME TAXES,
from continuing operations
|
|
|
382
|
|
(113)
|
|
242
|
|
945
|
|
|
|
|
|
|
|
|
|
|
|
Income
tax expense (benefit)
|
|
|
105
|
|
(34)
|
|
52
|
|
364
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME (LOSS)
from
continuing operations
|
|
$
|
277
|
$
|
(79)
|
$
|
190
|
$
|
581
|
|
Income from
discontinued
operations, net of tax expense of
$105
|
|
|
-
|
|
179
|
|
|
|
176
|
|
NET INCOME
|
|
|
277
|
|
100
|
|
190
|
|
757
|
|
NET INCOME
(LOSS) PER
SHARE-BASIC and DILUTED
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
$
|
0.03
|
$
|
(0.01)
|
$
|
0.02
|
$
|
0.06
|
|
Discontinued operations
|
|
|
-
|
|
0.02
|
|
-
|
|
0.02
|
|
NET INCOME PER
SHARE-
BASIC and DILUTED
|
|
$
|
0.03
|
$
|
0.01
|
$
|
0.02
|
$
|
0.08
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE
NUMBER OF SHARES
OUTSTANDING-BASIC
|
|
|
9,775
|
|
9,653
|
|
9,742
|
|
9,611
|
|
WEIGHTED AVERAGE
NUMBER OF SHARES
OUTSTANDING-DILUTED
|
|
|
9,821
|
|
9,789
|
|
9,783
|
|
9,748
|
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visit:http://www.prnewswire.com/news-releases/versar-inc-announces-second-quarter-fiscal-2015-results-300030992.html
SOURCE Versar, Inc.