VERSAR ANNOUNCES FIRST QUARTER RESULTS
VERSAR ANNOUNCES FIRST QUARTER RESULTS SPRINGFIELD, Va., Nov. 13 /PRNewswire/ -- Versar, Inc.
(AMEX: VSR) today reported financial results for the fiscal 1992 first quarter period ended Sept. 30, 1991. Revenues for the quarter were $14,847,000, a 13 percent increase from the $13,091,000 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 $53,000 compared to a net loss of $431,000 for the same period last year. Income from discontinued operations for the quarter was $27,000 compared to $118,000 last year, for a total income of 2 cents per share on 4,031,000 shares outstanding for the quarter, compared to a loss of 8 cents per share on 3,898,000 shares outstanding at the end of the first quarter last year.
Ben Rawls, president and CEO of Versar, said: "During the first quarter of fiscal 1992, we continued our program to reshape the future of Versar. The program and earnings are on track. Revenue and profits were both improved over the depressed levels of a year ago. Our cost reduction and cash management initiatives are starting to pay off with improved profits. The refocusing of our sales effort combined with a modest strengthening in the environmental market for our services produced a good sales gain compared to the first quarter of last year. "Our efforts on more aggressive working capital management to reduce bank debt has resulted in lower interest cost ($61,000, or 9 percent) in spite of increased interest rates charged compared to the first quarter of fiscal 1991. Borrowing at Oct. 1 against our line of credit dropped by approximately $3.3 million, or 50 percent, compared to June 30, 1991. "A major thrust of our strategy is to retire long-term debt through selective divestitures. Consistent with this strategy, the company has divested its interest in the Perland partnership and plans to sell its subsidiary, Versar Laboratories, Inc. Versar's goal is to eliminate its long-term debt by the end of fiscal 1992. The key to that success will be the divestment of our corporate headquarters real estate. By eliminating our long-term debt, Versar will have access to much more favorable financing. "We are in the process of further strengthening the management and financial controls throughout every facet of Versar's operation. We are confident that we are addressing our major problems and are now a stronger and more focused company. These actions will stabilize Versar and allow us to focus on expanding and improving the 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 (In thousands, except per share amounts; unaudited) Three Months ended Sept. 30, 1991 1990 Revenue $14,847 $13,091 Purchased services and materials at cost 3,749 2,440 Net revenue from services 11,098 10,651 Contract costs 7,895 7,961 Gross profit 3,203 2,690 SG&A expenses 2,528 2,713 Interest expense 596 657 Income (loss) from continuing operations before income taxes 79 (680) Income tax (provision) benefit (25) 249 Income (loss) from cont. operations 54 (431) Income from discont. operations, Gammaflux, Inc., (less applicable income taxes of $20 and $89, and less minority int. of $6 and $28 respectively) 27 118 Net income (loss) 81 (313) Income (loss) per share from continuing operations $0.01 $(0.11) Income per share from discontinued operations 0.01 0.03 Net income (loss) per share 0.02 (0.08) Weighted average number of shares outstanding 4,031 3,898 -0- 11/13/91 /CONTACT: Versar, investor relations, 703-750-3000/ (VSR) CO: Versar, Inc. ST: Virginia IN: SU: ERN MK-TW -- DC015 -- 3948 11/13/91 12:35 EST
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|Date:||Nov 13, 1991|
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