SPRINGFIELD, Va., May 8, 2015 /PRNewswire/ -- Versar, Inc.
(NYSE MKT: VSR) today announced financial results for the fiscal
third quarter and nine months ended March
27, 2015.
Financial Results
Gross revenue for the third quarter of fiscal year 2015
increased 41% to $39.8 million,
compared to revenues of $28.2 million
during the third quarter of the last fiscal year.
Sequentially, revenues increased 16% as compared to the
second quarter of fiscal 2015. Gross margins improved to 8%,
compared to 5% in the same prior year quarter. Net income for
the quarter was $262,000 or
$0.03 per share compared to a net
loss of $131,000 or a loss of
$0.01 per share in the same period of
fiscal 2014. In the third quarter of 2014, net income
included $0.01 from discontinued
operations and ($0.02) from continued
operations.
Revenues for the nine months ending March
27, 2015 increased 21% to $103.5
million compared to revenues of $85.4
million in the same prior year period. Gross margin
for the first nine months of 2015 was 9%, consistent with gross
margin for the first nine months of 2014. Net income for the
first nine months of fiscal 2015 was $453,000 or $0.05
per share compared to net income of $627,000 or $0.07
per share in the first nine months of fiscal 2014. In the
first nine months of 2014, net income included $0.03 from discontinued operations and
$0.04 from continued
operations.
Tony Otten, CEO of Versar, said,
"This was a strong quarter for the Company, as demonstrated by
record revenues, improved margins and greater profitability.
Our revenue performance in the quarter was driven by increased
activity related to our Dover Air Force Base contract. As
we've mentioned previously, we anticipate activity on that contract
to accelerate through 4Q15 and into 1Q16, the period when seasonal
weather patterns are more favorable for construction. We also
saw a positive revenue impact this quarter coming from contracts we
won as a result of the expanded capabilities contributed by our
Waller acquisition. We are executing well and saw growth
across our three core businesses and our funded backlog remains
solid at $228 million, with a
substantial pipeline. We've established our reputation as a
reliable partner who can get tough jobs done in difficult settings
and our customizable capabilities are enhancing our visibility and
recognition in the marketplace, leading to increased
opportunities."
Increased Funded Backlog
As of March 27, 2015, Versar
recorded funded backlog of approximately $228 million, an increase of 100% compared to
$114 million of funded backlog at the
end of fiscal year 2014.
During 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, as well as
a $2 million contract to provide
design/build construction services for upgrades and repairs at Camp
Arifjan, Kuwait.
Following the close of the quarter, the joint venture was
awarded a $7 million contract to
provide design/build construction services for repairs of the Blue
Brick buildings at the Kuwait Naval base. Also subsequent to
the close of the quarter, Versar was awarded a General Services
Administration contract, valued at $4.5
million, for ongoing facility support of the U.S. Army
Reserve 88th Regional Support Command in the Northwest
Region of the U.S., as well as an $11
million contract from the U.S. Army Corps of Engineers for
continued work at Joint Base Lewis-McChord and Yakima Training
Center.
"The acquisitions we've completed over the past eighteen months
have enhanced our portfolio of customized solutions and
strengthened our market position. We believe we are well
aligned for continued momentum securing contracts and adding
customers with the expectation of improved revenues and
profitability for the balance of fiscal 2015," Mr. Otten concluded.
Conference Call:
The Company will hold a conference call at 2:00 PM Eastern Time today, Friday, May 8, to discuss the Company's
operational performance and financial results for the fiscal
third quarter and nine months ended March
27, 2015.
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
|
|
|
March 27,
2015 (Unaudited)
|
|
June 27,
2014
|
ASSETS
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
$
|
1,122
|
$
|
9,674
|
Accounts receivable,
net
|
|
39,296
|
|
25,983
|
Inventory,
net
|
|
1,406
|
|
1,294
|
Prepaid expenses and
other current assets
|
|
2,389
|
|
1,303
|
Deferred income
taxes
|
|
2,083
|
|
2,254
|
Income tax
receivable
|
|
2,139
|
|
2,325
|
Total current
assets
|
|
48,435
|
|
42,833
|
Property and
equipment, net
|
|
2,195
|
|
2,389
|
Deferred income taxes,
non-current
|
|
563
|
|
533
|
Goodwill
|
|
15,808
|
|
8,073
|
Intangible assets,
net
|
|
4,874
|
|
2,930
|
Other
assets
|
|
1,092
|
|
1,003
|
Total
assets
|
$
|
72,967
|
$
|
57,761
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Accounts
payable
|
$
|
19,671
|
$
|
11,272
|
Accrued salaries and
vacation
|
|
2,796
|
|
2,912
|
Other current
liabilities
|
|
1,746
|
|
3,568
|
Notes payable,
current
|
|
1,932
|
|
958
|
Total current
liabilities
|
|
26,145
|
|
18,710
|
Notes payable,
non-current
|
|
7,600
|
|
156
|
Other long-term
liabilities
|
|
1,070
|
|
1,110
|
Total
liabilities
|
|
34,815
|
|
19,976
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
Stockholders'
equity
|
|
|
|
|
Common stock $.01 par
value; 30,000,000 shares authorized; 10,124,548 shares issued and 9,802,387 shares
outstanding as of March 27, 2015, 9,849,773 shares issued and 9,708,107 shares
outstanding as of June
27, 2014.
|
|
101
|
|
100
|
Capital in excess of
par value
|
|
30,695
|
|
30,393
|
Retained
earnings
|
|
9,484
|
|
9,032
|
Treasury stock, at
cost
|
|
(1,453)
|
|
(1,396)
|
Accumulated other
comprehensive loss;
foreign currency
translation
|
|
(675)
|
|
(344)
|
Total stockholders'
equity
|
|
38,152
|
|
37,785
|
Total liabilities and
stockholders' equity
|
$
|
72,967
|
$
|
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 Nine Months
Ended
|
|
|
March 27,
2015
|
|
March 28,
2014
|
|
March
27, 2015
|
|
March
28, 2014
|
|
|
|
|
|
|
|
|
|
GROSS
REVENUE
|
$
|
39,785
|
$
|
28,225
|
$
|
103,533
|
$
|
85,383
|
Purchased services and materials, at cost
|
|
22,330
|
|
14,322
|
|
51,588
|
|
43,091
|
Direct
costs of services and overhead
|
|
14,083
|
|
12,458
|
|
42,516
|
|
34,687
|
GROSS
PROFIT
|
|
3,372
|
|
1,445
|
|
9,429
|
|
7,605
|
|
|
|
|
|
|
|
|
|
Selling,
general and administrative expenses
|
|
2,749
|
|
2,258
|
|
8,365
|
|
7,418
|
Other
operating income
|
|
-
|
|
(327)
|
|
-
|
|
(327)
|
OPERATING INCOME
(LOSS)
|
|
623
|
|
(486)
|
|
1,064
|
|
514
|
|
|
|
|
|
|
|
|
|
OTHER
EXPENSE
|
|
|
|
|
|
|
|
|
Interest
income
|
|
(1)
|
|
(1)
|
|
(1)
|
|
(14)
|
Interest
expense
|
|
134
|
|
36
|
|
332
|
|
103
|
INCOME (LOSS) BEFORE
INCOME TAXES,
from continuing
operations
|
|
490
|
|
(521)
|
|
733
|
|
425
|
|
|
|
|
|
|
|
|
|
Income
tax expense (benefit)
|
|
228
|
|
(301)
|
|
280
|
|
63
|
|
|
|
|
|
|
|
|
|
NET INCOME (LOSS)
from continuing operations
|
$
|
262
|
$
|
(220)
|
$
|
453
|
$
|
362
|
Income from
discontinued operations, net of tax expense of $105
|
|
-
|
|
89
|
|
-
|
|
265
|
NET INCOME
(LOSS)
|
|
262
|
|
(131)
|
|
453
|
|
627
|
NET INCOME
(LOSS) PER SHARE-BASIC and DILUTED
|
|
|
|
|
|
|
|
|
Continuing operations
|
$
|
0.03
|
$
|
(0.02)
|
$
|
0.05
|
$
|
0.04
|
Discontinued operations
|
|
-
|
|
0.01
|
|
-
|
|
0.03
|
NET INCOME PER
SHARE-BASIC and DILUTED
|
$
|
0.03
|
$
|
(0.01)
|
$
|
0.05
|
$
|
0.07
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE
NUMBER OF SHARES
OUTSTANDING-BASIC
|
|
9,802
|
|
9,702
|
|
9,761
|
|
9,645
|
WEIGHTED AVERAGE NUMBER OF SHARES
OUTSTANDING-DILUTED
|
|
9,808
|
|
9,702
|
|
9,775
|
|
9,703
|
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SOURCE Versar, Inc.