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Versar Inc Reports Operating Results (10-K)

September 12, 2013 | About:
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10qk

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Versar Inc (VSR) filed Annual Report for the period ended 2013-06-28.

Versar, Inc. has a market cap of $45.5 million; its shares were traded at around $4.73 with a P/E ratio of 10.10 and P/S ratio of 0.40.
This is the annual revenues and earnings per share of VSR over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of VSR.


Highlight of Business Operations:

Gross profit for fiscal year 2013 was $13.7 million, a decrease of 17% compared to $16.5 million during the 2012 fiscal year. The gross profit percentage declined slightly by 1% to 13% from 14% in fiscal year 2012.

Net income from continuing operations for fiscal year 2013 was $4.1 million, a decrease of 8% compared to net income from continuing operations of $4.5 million during the 2012 fiscal year. Net income per share, basic and diluted for continuing operations was $0.43 compared to net income per share for continuing operations, basic and diluted, of $0.48 for fiscal year 2012. Net loss per share, basic and diluted, for discontinued operations for fiscal year 2013 was $0.18 compared to net loss per share for discontinued operations, basic and diluted, of $0.03 during the 2012 fiscal year. The decrease in net income and net income per share primarily resulted from our decrease in gross profit, in addition to a significant write-off of an uncollected receivable account of approximately $0.4 million.

Net income for fiscal year 2012 was $4.5 million, an increase of 9% compared to net income of $4.1 million during the 2011 fiscal year. Net income per share, basic and diluted, for continuing operations for fiscal year 2012 was $0.48 compared to net income per share, basic and diluted, for continuing operations of $0.44 during the 2011 fiscal year. The increase in net income and net income per share primarily resulted from an increase in gross profit, partially offset by the write-off of the uncollectible financing receivable.

Gross revenue for fiscal year 2013 was $49.3 million, a decrease of $19.9 million or 29% compared to $69.2 million for fiscal year 2012. This decrease was primarily a result of reductions in government spending for international reconstruction operations both in Iraq for electrical inspection services and in Afghanistan for Air Force Civil Engineer Center (AFCEC) Title II Construction Management Services. This slowdown was coupled with reduced domestic revenue of approximately $15.4 million related to the completion of the Tooele Chemical Demilitarization project during fiscal year 2012 and reduced revenue from domestic construction of approximately $5.5 million. Management is focusing domestic construction operations to specific locations and projects, and as a result of being more selective, we have seen reduced revenue from these operations; International management is currently focused on leveraging the success in the Middle East by increasing business development efforts with other U.S. government and non-governmental agencies in order to offset reduced DOD business and minimize the resulting reduction of revenues. In May 2013, the Company’s joint venture with Parsons was awarded a new prime contract from the U.S. Army Corps of Engineers (USACE), Middle East District (MED) to provide Construction Phase Support Services (CPSS) throughout multiple countries within the Central Command Area of Responsibility. The Indefinite Delivery Indefinite Quantity (IDIQ) contract is a single award with a maximum five-year period of performance consisting of a base year and four option years with a maximum contract capacity is $90 million. Additionally, in October of fiscal year 2013 we were awarded a new prime contract with the U.S. Army Corps of Engineers (USACE), Middle East District, to provide Afghanistan National subject matter experts to perform on-site construction management support services for assigned projects supporting two USACE Engineer Districts in Afghanistan. The Indefinite Delivery Indefinite Quantity (IDIQ) contract is a single award with a maximum four and a halfyear period of performance consisting of a base year and three options years. The maximum contract capacity over the entire length of the contract is $170 million. This contract is for Personal Services in exclusive support of the USACE construction mission in Afghanistan.

Gross revenue for fiscal year 2013 was $38.9 million, an increase of $8.0 million or 26% compared to $30.9 million for fiscal year 2012. This increase is primarily attributable to a $9.5 million increase in work being performed on PBRs for the U.S. Air Force reflecting both the transition from planning phases to site-work phases, and the startup of PBR activities at additional bases. We continue to see revenue increases associated with our UXO projects at Nellis AFB and Fort Irwin, CA. We have also experienced an increase in municipal storm water contract awards reflecting growth in our natural resource services.

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