VERSAR ANNOUNCES SECOND QUARTER RESULTS
VERSAR ANNOUNCES SECOND QUARTER RESULTS SPRINGFIELD, Va., Feb. 11 /PRNewswire/ -- Versar, Inc.
(AMEX: VSR) today reported financial results for the fiscal 1992 second quarter period ended Dec. 31, 1991. Revenues for the quarter were $14,079,000, an 8 percent decrease from the $15,323,000 sales volume for the same period one year ago, both on the basis of continuing operations. Net income from continuing operations for the quarter was $69,000, compared to a net loss of $220,000 for the same period last year. Income from discontinued operations was $10,000, compared to $123,000 last year, for a total income of 2 cents per share on 4,031,000 shares outstanding for the quarter. This compares to a loss of 2 cents per share on 3,919,000 shares outstanding for the second quarter of last year.
Revenues for the first half of fiscal 1992 were $28,926,000, a 2 percent increase over the revenue of $28,414,000 for the same period last year, both on the basis of continuing operations. Net income from continuing operations for the first half was $123,000, compared to a loss of $651,000 for the same period last year. Income from discontinued operations for the first half was $37,000, compared to $241,000 last year, for a total income of 4 cents per share on 4,031,000 shares outstanding for the period. This compares to a loss of 10 cents per share on 3,909,000 shares outstanding for the same period last year. Ben Rawls, president and CEO of Versar, said: "During the second quarter of fiscal 1992, we continued our program to reshape Versar. the program and earnings are on track with profits improved over the depressed level of a year ago. This brings two quarters of positive earnings after the restructuring charge of the fourth quarter of the last fiscal year. Our efforts on more aggressive working capital management to reduce bank debt has resulted in lower interest cost of $178,000, or 25 percent, for the second quarter of fiscal 1992 compared to the same period for fiscal 1991, in spite of increased rates charged for the 1992 period. Borrowing on Dec. 31, 1991, against our line of credit dropped by approximately $4.2 million, or 64 percent, compared to June 30, 1991. "A major thrust of our strategy is to retire long-term debt. We plan to do that by selling subsidiaries, reducing working capital needs and restructuring our real estate. Our plan to sell our environmental laboratory is ongoing. We have reduced our long-term debt by $1 million during the first half through reductions in working capital needs. Finally, we have, as of this writing, reached an occupancy rate of approximately 90 percent at our headquarters facility, which is a major step in our program to restructure our real estate subsidiary. "Two important events occurred on the legal front. In the case of Windolph v. Versar and Michael Markels, Jr., the judge granted our post-trial motion that, based on the evidence presented at the trial, the amount of damages awarded on two defamation charges was excessive. A retrial to determine the amount of damages on these claims has been set for October 1992. In the case of City of Sterling v. ARIX Corporation, et al, the trial court had denied the statute of limitations defense for Versar's subsidiary, Versar Architects & Engineers (VAE). In a recent opinion, the Colorado Supreme Court, in City of Colorado Springs v. Timberlane Associates, held that local government entities were not immune from statutes of limitations. We believe that this Supreme Court ruling makes it likely that VAE's appeal of the trial court's holding will result in the original decision being overturned and a new hearing set by the trial court to determine whether the city filed its original claim in a timely manner. "Our program to strengthen the management and financial controls continues to progress. We are installing a new management information system which will reduce cost and improve our managers' ability to respond profitably to our customer needs. We are also organizing our sales activity around market-focused groups. These actions will result in improved long-term profitability of the company." Versar provides a wide range of scientific and technical services to solve environmental and health and safety problems caused by pollutants, hazardous materials and toxic substances. VERSAR, INC. AND SUBSIDIARIES Condensed Consolidated Statements of Operations For the Three and Six Month Periods Ended Dec. 31, 1991 and 1990 (unaudited -- in thousands, except per share amounts) Three Months Ended Six Months Ended Dec. 31, Dec. 31, 1991 1990(A) 1991 1990(A) Revenue $14,079 $15,323 $28,926 $28,414 Purchased services and materials, at costs 3,184 3,290 6,933 5,730 Net Revenue from Services 10,895 12,033 21,993 22,684 Contract costs 6,998 8,361 14,893 16,322 Gross Profit 3,897 3,672 7,100 6,362 Selling, general and administrative expenses 3,190 3,286 5,718 5,999 Interest expense 540 718 1,136 1,375 Income (Loss) from Continuing Operations Before Income Taxes 167 (332) 246 (1,012) Income Tax (Provision) Benefit (98) 112 (123) 361 Income (Loss) from Continuing Operations 69 (220) 123 (651) Income from discontinued operations, Gammaflux (less applicable income taxes of $12, 93, 32 and $182, and less minority interest of $3, 28, 9 and $56 respectively) 10 123 37 241 Net Income (Loss) $79 $(97) $160 $(410) Income (Loss) Per Share from Continuing Operations $0.02 $(0.05) $0.03 $(0.16) Income Per Share from Discontinued Operations $0.00 $0.03 $0.01 $0.06 Net Income (Loss) Per Share $0.02 $(0.02) $0.04 $(0.10) Weighted Average Number of Shares Outstanding 4,031 3,919 4,031 3,909 (A) Certain amounts have been reclassified for comparative purposes. -0- 2/11/92 /CONTACT: Versar Investor Relations, 703-750-3000/ (VSR) CO: Versar, Inc. ST: Virginia IN: SU: ERN
SB-TW -- DC009 -- 8765 02/11/92 11:27 EST
|Printer friendly Cite/link Email Feedback|
|Date:||Feb 11, 1992|
|Previous Article:||RAYONIER TIMBERLANDS, L.P. ANNOUNCES FIRST QUARTER DISTRIBUTION OF 90 CENTS|
|Next Article:||HANNAFORD DECLARES COMMON STOCK DIVIDEND AND ANNOUNCES INCREASED QUARTERLY CASH DIVIDEND|