ALEXANDRIA, Va.--(enterprise WIRE)--VSE enterprise (Nasdaq: VSEC) stated the following unaudited consolidated monetary effects for the primary quarter of 2018.
“budget uncertainties at the beginning of the govt fiscal yr and delays within the issuance of work orders have delayed the funding on contracts in their Federal functions community," said Maurice “Mo” Gauthier, VSE CEO. "These funding delays contributed to a lessen in revenues from their department of protection work in the first quarter of 2018 as compared to the prior yr. year-over-yr revenues for their Aviation and provide Chain management groups have been radically unchanged. Their Aviation group has accelerated product strains and distribution services to new shoppers and overseas geographic markets. Their deliver Chain management neighborhood's continuing earnings increase from industrial and government materials earnings has offset a decrease in earnings to the U.S. Postal provider.”
Mr. Gauthier endured, “We also amended their financial institution mortgage agreement to extend the maturity date on their bank debt and boost their borrowing capacity. This strengthens their stability sheet, enhances their liquidity, and positions us to enhanced aid their existing company and strategic efforts.”
First Quarter effects (unaudited)
(in lots, apart from per share data) Three months ended March 31, 2018 2017 % modificationRevenues $ 176,897 $ 197,294 (10.3 )% working revenue $ eleven,593 $ 14,196 (18.3 )% net income $ 7,052 $ 7,293 (3.three )% EPS (Diluted) $ 0.65 $ 0.sixty seven (3.0 )%
Revenues had been $176.9 million within the first quarter of 2018 compared to $197.3 million within the first quarter of 2017. The reduce in revenues is basically brought on by a discount in work in their Federal capabilities neighborhood.
operating salary was $eleven.6 million for the primary quarter of 2018 compared to $14.2 million within the first quarter of 2017. The operating profits lower turned into primarily because of profits decreases in their Federal capabilities community and decrease U.S. Postal service revenues in their give Chain management group. internet revenue turned into $7.1 million for the primary quarter of 2018, or $0.sixty five per diluted share, compared to $7.3 million, or $0.67 per diluted share for the first quarter of 2017. The lessen in web revenue became now not as huge as their reduce in operating profits basically as a result of the enactment of the Tax Cuts and Jobs Act in December 2017, which decreased the federal corporate salary tax expense from 35% to 21% advantageous January 1, 2018.
Bookings in their Federal functions community were $33 million for the primary three months of 2018 in comparison to salary for this group of $88 million. Funded contract backlog at March 31, 2018 was $261 million, compared to $324 million at December 31, 2017 and $359 million at March 31, 2017.
Non-GAAP fiscal assistance
The non-GAAP monetary information (unaudited) listed below isn't calculated in line with U.S. commonly accepted accounting concepts ("GAAP") under SEC regulation G. They accept as true with EBITDA a non-GAAP fiscal measure and a crucial indicator of efficiency and advantageous metric for administration and buyers to evaluate their business' ongoing operating efficiency on a constant groundwork across reporting intervals. EBITDA may still now not be regarded in isolation or as an alternative to efficiency measures prepared in accordance with GAAP.
EBITDA represents internet income earlier than activity expense, revenue taxes, amortization of intangible belongings and depreciation and other amortization.
Non-GAAP financial counsel (unaudited)(in lots) Three Month consequences ended March 31, 2018 2017 % changeNet earnings $ 7,052 $ 7,293 (three )% interest fee 2,175 2,435 (11 )% profits Taxes 2,366 4,468 (forty seven )% Amortization of Intangible assets 4,004 4,004 0 % Depreciation and different Amortization 2,480 2,707 (eight )% EBITDA $ 18,077 $ 20,907 (14 )%
Purchases of property and gadget had been $1.1 million for the primary quarter of 2018 compared to $414 thousand for the first quarter of 2017.
centered in 1959, VSE is a varied items and features enterprise providing logistics solutions with integrity, agility, and price. VSE is committed to creating their federal and commercial shoppers a hit with the aid of providing ingenious solutions for automobile, ship, and plane sustainment, give chain management, platform modernization, mission enhancement, and program management, and proposing energy, IT, and consulting functions. For additional info concerning VSE features and products, please see the business's net web page at www.vsecorp.com or contact Christine Kaineg, VSE Investor relations, at (703) 329-3263.
Please confer with the kind 10-Q that should be filed with the Securities and exchange fee (SEC) on or about may additionally 1, 2018 for more details on their 2018 first quarter consequences. also, seek advice from VSE’s Annual report on form 10-ok for the year ended December 31, 2017 for extra information and evaluation of VSE’s fiscal condition and consequences of operations. VSE encourages investors and others to review the distinctive reporting and disclosures contained in VSE’s public filings for additional discussion in regards to the status of consumer courses and contract awards, dangers, profits sources and funding, dependence on fabric clients, and management’s discussion of brief and long term enterprise challenges and alternatives.
This information unencumber consists of statements that to the extent they aren't recitations of old fact, constitute “forward searching statements” beneath federal securities legal guidelines. All such statements are meant to be area to the safe harbor insurance plan provided by using relevant securities legal guidelines. For discussions determining some important components that may cause precise VSE consequences to vary materially from those predicted in the forward looking statements during this information free up, see VSE’s public filings with the SEC.VSE company and Subsidiaries Unaudited Consolidated balance Sheets
(in heaps except share and per share quantities)March 31, December 31, 2018 2017 assets latest property: cash and money equivalents $ 621 $ 624 Receivables, net fifty six,738 55,760 Unbilled receivables, net 33,970 forty two,577 Inventories, internet 148,933 132,591 other current assets 14,580 16,988 total present belongings 254,842 248,540 Property and device, web fifty three,988 fifty five,146 Intangible property, net 106,905 110,909 Goodwill 198,622 198,622 other belongings 15,266 15,796 total property $ 629,623 $ 629,013 Liabilities and Stockholders' fairness current liabilities: current component of long-time period debt $ 9,450 $ 6,960 accounts payable seventy five,603 66,015 collected charges and other existing liabilities 29,162 forty,243 Dividends payable 762 759 total existing liabilities 114,977 113,977 lengthy-time period debt, much less existing component 152,938 165,614 Deferred compensation 17,918 sixteen,323 lengthy-time period hire tasks, much less latest portion 20,one hundred seventy five 20,581 Deferred tax liabilities 20,302 19,423 complete liabilities 326,310 335,918 Commitments and contingencies Stockholders' equity: common stock, par value $0.05 per share, authorized 15,000,000 shares; issued and remarkable 10,881,106 and 10,838,747, respectively 544 542 further paid-in capital 26,490 24,470 Retained revenue 275,887 267,902 accrued different complete loss 392 181 complete stockholders' fairness 303,313 293,095 total liabilities and stockholders' fairness $ 629,623 $ 629,013 VSE agency and Subsidiaries Unaudited Consolidated Statements of revenue
(in thousands except share and per share quantities)
For the three monthsended March 31,2018 2017 Revenues: products $ 88,673 $ 89,017 services 88,224 108,277 complete revenues 176,897 197,294 costs and operating costs: products seventy four,726 seventy four,706 capabilities eighty five,755 103,944 selling, well-known and administrative charges 819 444 Amortization of intangible property 4,004 4,004 total expenses and operating expenses 165,304 183,098 operating earnings 11,593 14,196 interest rate, internet 2,175 2,435 earnings before revenue taxes 9,418 eleven,761 Provision for profits taxes 2,366 4,468 web profits 7,052 7,293 simple income per share 0.65 0.67 simple weighted typical shares dazzling 10,860,555 10,822,669 Diluted income per share 0.65 $ 0.sixty seven Diluted weighted commonplace shares excellent 10,896,504 10,849,427 Dividends declared per share $ 0.070 $ 0.060 VSE organisation and Subsidiaries Unaudited Consolidated Statements of cash Flows
For the three months endedMarch 31,2018 2017 cash flows from working actions: internet profits $ 7,052 $ 7,293 adjustments to reconcile net salary to internet cash offered via working activities: Depreciation and amortization 6,484 6,711 Deferred taxes 283 (223 ) inventory-primarily based compensation 1,263 1,084 alterations in operating property and liabilities: Receivables, web (978 ) four,946 Unbilled receivables, internet 13,432 5,725 Inventories, web (18,895 ) (4,782 ) other current belongings and noncurrent assets 3,169 5,010 money owed payable and deferred compensation 11,681 (20,955 ) amassed costs and other existing liabilities (9,792 ) (three,851 ) lengthy-term rent responsibilities (406 ) (307 ) web cash provided with the aid of working activities 13,293 651 cash flows from investing activities: Purchases of property and gadget (1,053 ) (414 ) web cash utilized in investing actions (1,053 ) (414 ) money flows from financing actions: Borrowings on loan settlement 247,669 96,124 Repayments on mortgage contract (256,368 ) (94,875 ) charge of debt financing prices (1,798 ) — funds on capital lease responsibilities (346 ) (307 ) funds of taxes for fairness transactions (641 ) (500 ) Dividends paid (759 ) (650 ) internet money used in financing activities (12,243 ) (208 ) web enhance (reduce) in money and money equivalents (three ) 29 money and cash equivalents at beginning of length 624 428 cash and cash equivalents at end of duration $ 621 $ 457