VERSAR, INC. ANNOUNCES THIRD QUARTER FISCAL YEAR 2013 RESULTS. REPORTS 22.7% REVENUE GROWTH
Springfield, VA - Versar, Inc. ( NYSE American : VSR) announced financial and operating results for the fiscal year third quarter and nine months ended March 29, 2013.
Gross revenue for the third quarter of fiscal year 2013 was $31.6 million, a 22.7% increase compared to revenue of $25.7 million reported in the third quarter of fiscal year 2012. The revenue growth was driven by a $5.4 million increase in revenue from the Company's performance based remediation (PBR) work for the U.S. Air Force and an additional $1 million in revenue attributable to the operations of Charron Construction Consulting, Inc. ("Charron"), acquired in May 2012.
Net income for the third quarter of fiscal year 2013 was $1.0 million or $0.11 per basic and diluted share, an increase of 8.2% compared to net income in the third quarter of fiscal 2012. Gross profit margin declined to 10.2% of sales for the quarter primarily due to a shift in revenue mix with the completion of two particularly high margin programs. Versar reduced SG&A expenses to 5.9% of sales from 8.2% of sales in the third quarter of the prior year.
For the first nine months of fiscal year 2013, Versar recorded gross revenue of $79.9 million, a decrease of 11.6% compared to $90.3 million during the first nine months of fiscal 2012. This decrease was primarily driven by lower domestic revenue of approximately $5.5 million related to Versar's completion of the Tooele Chemical Demilitarization project and decreased domestic construction activity.
Versar reported net income of $2.8 million or $0.30 per basic and diluted share, an 8.2% increase compared to net income of $2.6 million or $0.28 per basic and diluted share during the first nine months of the previous fiscal year. Gross profit margin declined to 12.9% of sales. SG&A expense rose slightly to 7.6% of sales from 7.1% of sales for the nine months of fiscal 2012.
As of March 29, 2013, Versar recorded funded backlog of approximately $121 million, an increase of 24.7% compared to approximately $97 million at March 30, 2012 and an increase of 30.1% when compared to $93 million in funded backlog at the end of fiscal year 2012. This increase was due largely to new awards won related to new work in Afghanistan and PBR projects for the U.S. Air Force at various installations across the United States.
Tony Otten, CEO of Versar said, ""We are pleased to report strong revenue growth, continued profitability and increased backlog during the third quarter. Our revenue growth was driven by our performance based remediation contracts with the U.S. Air Force and by revenues related to construction management projects acquired with our purchase of Charron. Additionally, our work in Afghanistan has been reinvigorated by our previously announced $170 million Personal Services contract for the U.S. Army Corps of Engineers, largely offsetting the wind down of our Title II work with the U.S. Air Force in that country. However, gross profit margin declined as a result of a shift in revenue mix with the completion of two particularly high margin programs, as well as a modest margin impact resulting from one-time costs associated with moving operations in Afghanistan to a more centralized, secure location. We continue to see opportunities internationally that are a good match to our capabilities.
"Our focus remains on securing significant contracts related to non-discretionary funding, such as sustainable range management, unexploded ordnance and performance based remediation. As a solutions based company, we are continuously pursuing new partnership opportunities and the expansion of our existing relationships, domestically and internationally."
The Company will host a conference call today, May 13 at 2:00 p.m. Eastern Time to discuss its operational performance and financial results. The conference call may be accessed in the U.S. and Canada by dialing toll-free (877) 407-8033. International callers may access the call by dialing (201) 689-8033. Participants should call in a few minutes before 2:00 p.m. Eastern time.
A replay of the teleconference will be available until May 27, 2013 and may be accessed by dialing (877) 660-6853. International callers may dial (201) 612-7415. Callers should use conference ID: 411422. Replays will also 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 29, 2012, 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.
Director of Financial Reporting
John Nesbett or Jennifer Belodeau
Institutional ing Services (IMS)