Welcome!

News Feed Item

Versar, Inc. Announces Second Quarter Fiscal 2014 Results

SPRINGFIELD, Va., Feb. 10, 2014 /PRNewswire/ -- Versar, Inc. (NYSE MKT: VSR) today announced financial results for the fiscal second quarter and six months ended December 27, 2013. 

Gross revenue for the second quarter of fiscal year 2014 was $28.0 million, an increase of 16% compared to $24.1 million during the second quarter of the last fiscal year.  The increase was attributable to revenue generated by 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 continued 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 a reduction in gross margins for the quarter primarily due to the decrease in gross profit related to Title II work in Afghanistan, which is anticipated to end in the summer of 2014.  The Company reported net income of $100,000, or $0.01 per share on a fully diluted basis (which includes $0.02 from discontinued operations) compared to net income of $925,000 or $0.09 per share on a fully diluted basis (which included a loss of $0.03 from discontinued operations) for the second quarter last year. 

For the six months ended December 27, 2013, Versar had gross revenue of $57.2 million, an increase of 23% as compared to gross revenue of $46.5 million in the first six months of fiscal 2013.  This revenue increase and lower gross margins for the six months was primarily a result of factors noted above in the second quarter discussion.  Versar recorded net income of $757,000 or $0.08 per share on a fully diluted basis (which includes $0.02 from discontinued operations) in the first six months of fiscal 2014 as compared to $1.8 million or $0.18 per share on a fully diluted basis (which includes a loss of $0.04 from discontinued operations) for the first six months of fiscal 2013.        

As of December 27, 2013, Versar recorded funded backlog of approximately $120 million, an increase of 12% compared to $108 million of funded backlog at the end of fiscal year 2013.

Versar closed the fiscal second quarter of 2014 with a cash balance of approximately $4 million and stockholders' equity of $38.5 million.

Tony Otten, CEO of Versar said, "We achieved solid revenue growth in the second quarter and are particularly pleased with this result, given the government shutdown during the quarter that delayed some contract awards and caused a temporary slowdown in activity for some of our existing projects.  While revenue increased, profitability for the quarter was below historical levels due to higher purchased services and materials related to our PSC and PBR programs. In addition, we had some one-time costs associated with final tax payments related to our fiscal year 2012 acquisition of Charron Construction Consulting, Inc. and severance costs associated with our recent acquisition of GMI.

"Our backlog grew 12% from our June 28, 2013 fiscal year end.  During the quarter, we were awarded $1.1 million in new awards and $440,000 in subcontract extensions from HDR for continued construction management and quality assurance operations in support of the Air Force in Afghanistan. This is in addition to the $8.8 million in awards we received during the last quarter of fiscal 2013 and the first quarter of this fiscal year. These extensions bring our HDR subcontract total to just under $40 million over the life of the subcontract.  This is one of our many contracts in the region and demonstrates the level of confidence our government has in the services we provide.  Additionally, following the close of the quarter we were awarded a $2.25 million contract with Frederick County, Maryland to provide municipal stormwater permit support and a $1.5 million extension of our personal services and support contract with the U.S. Army Corps of Engineers in Iraq." 

Mr. Otten continued, "We continue to make progress with the GMI integration and are encouraged by the strategic benefits of their technical capabilities and diverse customer base.  Our balance sheet remains solid, positioning us well for continued organic growth and providing flexibility for our pursuit of complementary acquisitions."

Conference Call:

The Company will hold a conference call at 2:00 PM Eastern Time today, Monday, February 10 to discuss the Company's operational performance and financial results for its quarter ended December 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, 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 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 28, 2013, 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

[email protected]


[email protected]


 

VERSAR, INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(In thousands, except share amounts)



As of



December 27,
2013
(Unaudited)


June 28,
2013

ASSETS





Current assets





Cash and cash equivalents

$

4,045

$

8,728

Accounts receivable, net


35,689


29,342

Inventory


1,189


1,225

Prepaid expenses and other current assets


1,192


1,074

Deferred income taxes


1,993


2,314

Income tax receivable


1,922


1,764

Total current assets


46,030


44,447

Property and equipment, net


2,256


2,108

Deferred income taxes, non-current


890


622

Goodwill


9,420


7,515

Intangible assets, net


2,887


1,798

Other assets


1,188


887

Total assets

$

62,671

$

57,377






LIABILITIES AND STOCKHOLDERS' EQUITY





Current liabilities





Accounts payable

$

11,904

$

10,788

Accrued salaries and vacations


3,541


3,042

Other current liabilities


3,527


3,304

Income tax payable


293


-

Notes payable, current


1,641


333

Total current liabilities


20,906


17,467

Notes payable, non-current


635


333

Deferred income taxes


1,098


849

Other long-term liabilities


1,501


1,104

 Total liabilities


24,140


19,753

Commitments and contingencies





Stockholders' equity





Common stock,  $.01 par value; 30,000,000 shares authorized; 
9,962,885 shares issued and 9,658,107 shares outstanding 
as of December 27, 2013 
9,849,773 shares issued and 9,579,753 shares outstanding 
as of June 28, 2013


100


99

Capital in excess of par value


30,101


29,758

Retained earnings


10,122


9,366

Treasury stock, at cost


(1,396)


(1,224)

Accumulated other comprehensive loss;
    foreign currency translation


(396)


(375)

Total stockholders' equity


38,531


37,624

Total liabilities and stockholders' equity

$

62,671

$

57,377

 

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 27,
2013


December 28,
2012


December 27,
2013


December 28,
2012










GROSS REVENUE

$

28,037

$

24,122

$

57,158

$

46,518

   Purchased services and materials, at cost


14,359


9,540


28,769


17,237

   Direct costs of services and overhead


11,347


10,617


23,105


21,845

GROSS PROFIT


2,331


3,965


5,284


7,436










   Selling, general and administrative expenses


2,415


2,249


4,285


4,174

OPERATING (LOSS) INCOME


(84)


1,716


999


3,262










OTHER (INCOME) EXPENSE









   Interest income


(13)


-


(13)


(1)

   Interest expense


42


22


67


46

 (LOSS) INCOME BEFORE INCOME TAXES,
from continuing operations


(113)


1,694


945


3,217










   Income tax (benefit) expense


(34)


511


364


1,092










NET (LOSS) INCOME  FROM CONTINUING OPERATIONS


(79)


1,183


581


2,125

Income (Loss) from discontinued operations, net of tax

(expense) benefit of $(105) and $121 and $(105) and $174


179


(258)


176


(355)

NET INCOME

$

100

$

925

$

757

$

1,770










NET (LOSS) INCOME PER SHARE-BASIC and DILUTED









   Continuing operations

$

(0.01)


0.12

$

0.06


0.22

   Discontinued operations


0.02


(0.03)


0.02


(0.04)

NET INCOME PER SHARE-BASIC and DILUTED

$

0.01

$

0.09

$

0.08

$

0.18










WEIGHTED AVERAGE NUMBER OF SHARES
OUTSTANDING-BASIC


9,653


9,507


9,611


9,450

WEIGHTED AVERAGE NUMBER OF SHARES
OUTSTANDING-DILUTED


9,789


9,536


9,748


9,479

 

 

SOURCE Versar, Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
In his session at @ThingsExpo, Chris Klein, CEO and Co-founder of Rachio, will discuss next generation communities that are using IoT to create more sustainable, intelligent communities. One example is Sterling Ranch, a 10,000 home development that – with the help of Siemens – will integrate IoT technology into the community to provide residents with energy and water savings as well as intelligent security. Everything from stop lights to sprinkler systems to building infrastructures will run ef...
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
Whether your IoT service is connecting cars, homes, appliances, wearable, cameras or other devices, one question hangs in the balance – how do you actually make money from this service? The ability to turn your IoT service into profit requires the ability to create a monetization strategy that is flexible, scalable and working for you in real-time. It must be a transparent, smoothly implemented strategy that all stakeholders – from customers to the board – will be able to understand and comprehe...
SYS-CON Events announced today that Peak 10, Inc., a national IT infrastructure and cloud services provider, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Peak 10 provides reliable, tailored data center and network services, cloud and managed services. Its solutions are designed to scale and adapt to customers’ changing business needs, enabling them to lower costs, improve performance and focus inter...
In the world of DevOps there are ‘known good practices’ – aka ‘patterns’ – and ‘known bad practices’ – aka ‘anti-patterns.' Many of these patterns and anti-patterns have been developed from real world experience, especially by the early adopters of DevOps theory; but many are more feasible in theory than in practice, especially for more recent entrants to the DevOps scene. In this power panel at @DevOpsSummit at 18th Cloud Expo, moderated by DevOps Conference Chair Andi Mann, panelists will dis...
See storage differently! Storage performance problems have only gotten worse and harder to solve as applications have become largely virtualized and moved to a cloud-based infrastructure. Storage performance in a virtualized environment is not just about IOPS, it is about how well that potential performance is guaranteed to individual VMs for these apps as the number of VMs keep going up real time. In his session at 18th Cloud Expo, Dhiraj Sehgal, in product and marketing at Tintri, will discu...
So, you bought into the current machine learning craze and went on to collect millions/billions of records from this promising new data source. Now, what do you do with them? Too often, the abundance of data quickly turns into an abundance of problems. How do you extract that "magic essence" from your data without falling into the common pitfalls? In her session at @ThingsExpo, Natalia Ponomareva, Software Engineer at Google, will provide tips on how to be successful in large scale machine lear...
Machine Learning helps make complex systems more efficient. By applying advanced Machine Learning techniques such as Cognitive Fingerprinting, wind project operators can utilize these tools to learn from collected data, detect regular patterns, and optimize their own operations. In his session at 18th Cloud Expo, Stuart Gillen, Director of Business Development at SparkCognition, will discuss how research has demonstrated the value of Machine Learning in delivering next generation analytics to im...
Unless you don’t use the internet, don’t live in California, or haven’t been paying attention to the recent news… you should be aware that self-driving cars are on their way to becoming a reality. I have seen them – they are real. If you believe in the future reality of self-driving cars, then continue reading on. If you don’t believe in the future possibilities, then I am not sure what to do to convince you other than discuss the very real changes that will roll out with the consumer producti...
Up until last year, enterprises that were looking into cloud services usually undertook a long-term pilot with one of the large cloud providers, running test and dev workloads in the cloud. With cloud’s transition to mainstream adoption in 2015, and with enterprises migrating more and more workloads into the cloud and in between public and private environments, the single-provider approach must be revisited. In his session at 18th Cloud Expo, Yoav Mor, multi-cloud solution evangelist at Cloudy...
There is an ever-growing explosion of new devices that are connected to the Internet using “cloud” solutions. This rapid growth is creating a massive new demand for efficient access to data. And it’s not just about connecting to that data anymore. This new demand is bringing new issues and challenges and it is important for companies to scale for the coming growth. And with that scaling comes the need for greater security, gathering and data analysis, storage, connectivity and, of course, the...
This is not a small hotel event. It is also not a big vendor party where politicians and entertainers are more important than real content. This is Cloud Expo, the world's longest-running conference and exhibition focused on Cloud Computing and all that it entails. If you want serious presentations and valuable insight about Cloud Computing for three straight days, then register now for Cloud Expo.
IoT device adoption is growing at staggering rates, and with it comes opportunity for developers to meet consumer demand for an ever more connected world. Wireless communication is the key part of the encompassing components of any IoT device. Wireless connectivity enhances the device utility at the expense of ease of use and deployment challenges. Since connectivity is fundamental for IoT device development, engineers must understand how to overcome the hurdles inherent in incorporating multipl...
Redis is not only the fastest database, but it has become the most popular among the new wave of applications running in containers. Redis speeds up just about every data interaction between your users or operational systems. In his session at 18th Cloud Expo, Dave Nielsen, Developer Relations at Redis Labs, will shares the functions and data structures used to solve everyday use cases that are driving Redis' popularity.
SYS-CON Events announced today that Stratoscale, the software company developing the next generation data center operating system, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Stratoscale is revolutionizing the data center with a zero-to-cloud-in-minutes solution. With Stratoscale’s hardware-agnostic, Software Defined Data Center (SDDC) solution to store everything, run anything and scale everywhere...