Versar / VSR

About Versar

6850 Versar Center, Springfield, Va. 22151
www.versar.com | 703-750-3000 | Founded: 1969

Industry: Government And Professional Services | Category: Public Companies

Versar has benefited from the country's preoccupation with Iraq and homeland security.
Since October 2004, Versar has been awarded more than $11 million in contracts to support the Air Force's reconstruction mission in Iraq, and it expects to continue its presence there for the next two years, helping to develop skilled-labor trade schools for the Iraqi workforce and compile the country's first comprehensive construction standards. The company has also won more than $1.3 million in contracts to assess food security vulnerability at Air Force bases in the United States and Europe.
The Marines awarded Versar a $5.9 million, five-year contract to support the deployment and use of nuclear and chemical defense protective clothing and equipment.
The federal government's decision to close a number of military bases has meant a loss of about $6 million to the company, but Versar said the closings will also bring it new revenue next year as the government will need to conduct a number of environmental studies and launch cleanup programs at the bases.
To enhance its environmental studies capabilities, the company last year acquired Cultural Resources Group, based in Fairfax, to provide archaeological, cultural and historical services to federal, state and municipal clients.
Versar discontinued the operations of its biological laboratory, citing its poor operating performance, market saturation and future business outlook.
Versar also continued to win contracts to monitor the health of the Chesapeake Bay.
For the first six months of its current fiscal year, which ends in June, the company's revenues totaled $30 million, down from $37.9 million the previous year. Profit dropped to $634,000 from $828,000. Versar attributed the drop to reduced subcontracted construction work and higher costs from a significant increase in writing proposals. The company also said it was adversely affected by delays in the finalization of the federal budget that postponed some payments, particularly on environmental and construction projects.
For fiscal 2005, the company earned $202,000, down from $1.2 million in 2004. Revenue was $67.7 million, up from $60 million the previous year. Versar said earnings dropped because of delays in obtaining new projects and follow-ups to existing ones. As older projects came to an end, the company said it had not been successful in replacing business volume. There were also delays in resolving several construction change orders.
Versar's chief financial officer, Lawrence W. Sinnott, has also assumed the title and responsibilities of chief operating officer.

President and CEO: Theodore M. Prociv

2005 Financial Data

Revenues: $67,678,000 | Net Income: $202,000
Asssets: $20,912,000 | Earnings Per Share: $0.02
Total employees: 379 | Local employees: 180