VSE Corp. / VSEC

About VSE Corp.

2550 Huntington Ave., Alexandria, Va. 22303
www.vsecorp.com | 703-960-4600 | Founded: 1959

Industry: Government And Professional Services | Category: Public Companies

VSE turned in another record year in 2005, generating $6.2 million in earnings on revenue of $280 million, up from $3.4 million in profit on $216 million in revenue in 2004. The company said its growth last year was primarily the result of work on the Army's Trailer Ballistic Protection System program, as well as growth at its BAV division, which helps the Navy sell, lease or give away old ships. VSE also said revenue rose in its communications and engineering, fleet maintenance, and systems engineering divisions.
"Beginning in 2002, VSE revenues have grown significantly as our customers' needs and funding have grown," chief executive Donald M. Ervine said in announcing 2005 results. "With the increase in revenues, we have been able to allocate our corporate costs over a larger base and improve our margins on certain time and materials and fixed price contracts."
In January, VSE said it won a contract with a two-year value of as much as $351 million to provide logistics and maintenance service for U.S. Army equipment in Iraq and Afghanistan. Based on that and other contracts, VSE has predicted further revenue and income growth in 2006.
Also in 2005, VSE said it would stop awarding stock options to employees in response to a new accounting rule requiring companies to deduct the value of options from earnings. Many other companies have also moved away from options.
In May, VSE won a bid protest over U.S. Customs and Border Protection's awarding of a sole-source contract to another firm to manage a government fund of assets seized in federal investigations. The Government Accountability Office ruled that Customs' continued award of the contract to EG&G Technical Services Inc. of Gaithersburg "was improper" because it didn't include required justification. The GAO rules in favor of a protesting company in about one-fifth of the 250 or so cases it decides each year.

Chairman: Donald M. Ervine

2005 Financial Data

Revenues: $280,139,000 | Net Income: $6,169,000
Asssets: $73,866,000 | Earnings Per Share: $2.58
Stockholder Equity: $30,151,000 | Annual Dividend: $0.23
Total employees: 716 | Local employees: 275