SPRINGFIELD, Va., Nov. 5, 2015 /PRNewswire/ -- Versar, Inc. (NYSE
MKT: VSR) today announced financial results for the fiscal first
quarter ended September 25,
2015.
Financial Results
Gross revenue for the first quarter of fiscal year 2016
increased 52% to $44.9 million,
compared to revenues of $29.6 million
during the first quarter of the last fiscal year. Gross
margins decreased to 5%, compared to 9% in the same prior year
quarter, primarily due to product mix and approximately
$200,000 in one-time expenses related
to the Company's acquisition of Johnson Controls Security Systems
(JCSS), now known as Versar Security Systems (VSS). Net loss
for the quarter was $431,000 or
($0.04) per share compared to a net
loss of $89,000 or a loss of
($0.01) per share in the same period
of fiscal 2015.
Tony Otten, CEO of Versar, said,
"We delivered strong revenue growth in the first quarter of fiscal
2016 and are well positioned for enhanced profitability as we move
into the balance of the fiscal year. The substantial revenue
growth was primarily driven by our Dover Air Force Base contract, a
strategically important project for us as we broaden the Company's
portfolio of capabilities for our customers. This
construction project has lower margins than the balance of our
revenue and affected overall gross margins, as we discussed during
our year-end earnings call in September. Importantly,
the first quarter is typically our least profitable quarter as we
focus on bid proposals at the end of the government's fiscal
year. That said, we continued to manage our expenses
prudently during the quarter as reflected by our relatively flat
SG&A."
Mr. Otten continued, "Our funded backlog of $225 million as of October
1, 2015 is 26% higher than the funded backlog on
June 26, 2015. The mix of this
backlog includes higher margin business due to our improved
business development capabilities as well as our acquisition of
JCSS, which closed just after the end of the quarter. JCSS is
an excellent acquisition for us, bringing new, high margin,
classified construction capabilities. Our pipeline is
substantial as marketplace recognition of our expanded capabilities
and demand for our customized solutions remain strong."
Funded Backlog
As of September 25, 2015, Versar
recorded funded backlog of approximately $157 million, as compared to $179 million of funded backlog at the end of
fiscal year 2015. Versar's fiscal first quarter closed before
the Government's fiscal year end of September 30, 2015, thus the first quarter did
not include additional funded awards received during the last five
days of September 2015. The Company's funded backlog as of
October 1, 2015 was $225 million, including Government awards and
backlog from its acquisition of JCSS.
During the quarter, the Company's joint venture with Johnson
Controls Federal Systems was awarded a $2.5
million contract from the Air Force Civil Engineer Center to
provide construction services at Mountain Home Air Force Base in
Idaho.
"We believe that our broadened capabilities and proven
reputation for providing customized solutions in difficult terrains
and challenging locations positions us well to drive continued
revenue growth, improved margins and a return to profitability as
we move through Fiscal 2016," Mr. Otten
concluded.
Conference Call:
The Company will hold a conference call at 2:00 PM Eastern Time today, Thursday, November 5, to discuss the Company's
operational performance and financial results for the fiscal
first quarter ended September 25,
2015.
The dial in number for the US and Canada is toll free, 877-407-8033. The
international dial in number is 201-689-8033. Participants should
call in a few minutes before 2:00 PM Eastern
Time. For those unable to attend the conference call, a
replay will 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 the following web sites,
www.versar.com and www.versarpps.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
26, 2015, 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.
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Contact:
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David
Gray
|
John Nesbett or
Jennifer Belodeau
|
|
Director of Financial
Reporting
|
Institutional
Marketing Services (IMS)
|
|
Versar,
Inc.
|
(203)
972-9200
|
|
(703)
642-6888
|
jnesbett@institutionalms.com
|
|
dgray@versar.com
|
|
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VERSAR, INC. AND
SUBSIDIARIES
|
|
Condensed
Consolidated Balance Sheets
|
|
(In thousands, except
share amounts)
|
|
|
As of
|
|
|
September
25,
2015
(Unaudited)
|
|
June 26,
2015
|
|
ASSETS
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
396
|
$
|
2,109
|
|
Accounts receivable,
net
|
|
47,580
|
|
57,171
|
|
Inventory,
net
|
|
1,227
|
|
1,188
|
|
Prepaid expenses and
other current assets
|
|
2,508
|
|
1,540
|
|
Deferred income
taxes
|
|
1,396
|
|
1,366
|
|
Income tax
receivable
|
|
915
|
|
2,373
|
|
Total current
assets
|
|
54,022
|
|
65,747
|
|
Property and
equipment, net
|
|
2,042
|
|
2,084
|
|
Deferred income taxes,
non-current
|
|
441
|
|
414
|
|
Goodwill
|
|
16,066
|
|
16,066
|
|
Intangible assets,
net
|
|
4,388
|
|
4,643
|
|
Other
assets
|
|
252
|
|
252
|
|
Total
assets
|
$
|
77,211
|
$
|
89,206
|
|
|
|
|
|
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LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Accounts
payable
|
$
|
23,211
|
$
|
35,852
|
|
Accrued salaries and
vacation
|
|
2,499
|
|
3,332
|
|
Line of
Credit
|
|
1,770
|
|
-
|
|
Other current
liabilities
|
|
653
|
|
1,114
|
|
Notes payable,
current
|
|
3,329
|
|
2,313
|
|
Total current
liabilities
|
|
31,462
|
|
42,611
|
|
Notes payable,
non-current
|
|
5,375
|
|
5,835
|
|
Other long-term
liabilities
|
|
1,446
|
|
1,390
|
|
Total
liabilities
|
|
38,283
|
|
49,836
|
|
|
|
|
|
|
Stockholders'
equity
|
|
|
|
|
|
Common stock $.01 par
value; 30,000,000 shares authorized;
10,132,673 shares issued and 9,808,832 shares
outstanding as of
September 25, 2015,
10,128,923
shares issued and 9,805,082 shares
outstanding
as of
June 26, 2015.
|
|
101
|
|
101
|
|
Capital in excess of
par value
|
|
30,889
|
|
30,798
|
|
Retained
earnings
|
|
10,010
|
|
10,439
|
|
Treasury stock, at
cost
|
|
(1,460)
|
|
(1,460)
|
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Accumulated other
comprehensive loss;
foreign currency translation
|
|
(612)
|
|
(508)
|
|
Total stockholders'
equity
|
|
38,928
|
|
39,370
|
|
Total liabilities and
stockholders' equity
|
$
|
77,211
|
$
|
89,206
|
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VERSAR, INC. AND
SUBSIDIARIES
|
|
|
Consolidated
Statements of Operations
|
|
|
(in thousands, except
per share amounts)
|
|
|
|
|
For the Three Months
Ended
|
|
|
|
|
September 25,
2015
|
|
September 26,
2014
|
|
|
|
|
|
|
|
|
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GROSS
REVENUE
|
|
$
|
44,905
|
$
|
29,586
|
|
|
Purchased services and materials, at cost
|
|
|
29,767
|
|
12,228
|
|
|
Direct
costs of services and overhead
|
|
|
12,826
|
|
14,752
|
|
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GROSS
PROFIT
|
|
|
2,312
|
|
2,606
|
|
|
|
|
|
|
|
|
|
Selling,
general and administrative expenses
|
|
|
2,854
|
|
2,691
|
|
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OPERATING INCOME
(LOSS)
|
|
|
(542)
|
|
(85)
|
|
|
|
|
|
|
|
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OTHER
EXPENSE
|
|
|
|
|
|
|
|
Interest
expense
|
|
|
175
|
|
57
|
|
|
LOSS BEFORE INCOME
TAXES
|
|
|
(717)
|
|
(142)
|
|
|
|
|
|
|
|
|
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Income
tax expense (benefit)
|
|
|
(286)
|
|
(53)
|
|
|
|
|
|
|
|
|
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NET LOSS
|
|
|
(431)
|
|
(89)
|
|
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NET INCOME PER
SHARE-BASIC and DILUTED
|
|
$
|
(0.04)
|
$
|
(0.01)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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WEIGHTED AVERAGE
NUMBER OF SHARES
OUTSTANDING-BASIC
|
|
|
9,808
|
|
9,711
|
|
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WEIGHTED AVERAGE
NUMBER OF SHARES
OUTSTANDING-DILUTED
|
|
|
9,808
|
|
9,711
|
|
|
|
|
|
|
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SOURCE Versar, Inc.