Versar (VSR) research, news, and more from GeoInvesting

Company description

Mon, 11 May 2009 04:00:00 GMT

VERSAR, INC., headquartered in Springfield, VA, is a publicly held international professional services firm supporting government and industry in national defense/homeland defense programs, environmental health and safety and infrastructure revitalization. VERSAR operates a number of web sites, including the corporate Web sites, http://www.versar.com, http://www.homelanddefense.com, and http://www.geomet.com; http://www.viap.com and http://www.dtaps.com.

Joint Venture

Thu, 16 May 2013 04:00:00 GMT

SPRINGFIELD, Va., May 16, 2013 /PRNewswire/ -- Versar, Inc. (NYSE MKT: VSR) announced today that its 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 18 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. The maximum contract capacity is $90 million. According to the terms of the contract, the joint venture will provide construction support services in the CENTCOM Area of Responsibility to include locations such as Afghanistan, Kazakhstan, Pakistan, Saudi Arabia, Iraq, Qatar, and 12 additional countries.

Tony Otten, CEO of Versar said, "This award is a validation of the team we have formed with our joint venture partner Parsons. We welcome this additional opportunity to work with USACE and are confident that our team's capabilities are well matched to the requirements of the contract and to the demands of the geographic locations in which we will be working."

Contract Awards

Thu, 16 May 2013 04:00:00 GMT

Versar joint venture awarded construction services contract worth up to $90M

Versar announced that its joint venture with Parsons was awarded a new prime contract from the U.S. Army Corps of Engineers, Middle East District to provide Construction Phase Support Services throughout 18 countries within the Central Command Area of Responsibility. The Indefinite Delivery Indefinite Quantity contract is a single award with a maximum five-year period of performance consisting of a base year and four option years. The maximum contract capacity is $90M. According to the terms of the contract, the joint venture will provide construction support services in the CENTCOM Area of Responsibility to include locations such as Afghanistan, Kazakhstan, Pakistan, Saudi Arabia, Iraq, Qatar, and 12 additional countries.

Comments & Business Outlook

Mon, 13 May 2013 04:00:00 GMT

Third Quarter 2013 Results

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.
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 or $0.10.

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."

Contract Awards

Tue, 16 Apr 2013 04:00:00 GMT

SPRINGFIELD, Va., April 16, 2013 /PRNewswire/ -- Versar, Inc. (NYSE MKT: VSR) announced that the United States Army Corps of Engineers, Los Angeles District has issued Versar a fourth task order to provide funding for option year three of the ongoing Range Maintenance Contract at Fort Irwin/ National Training Center, CA.

This new task order adds $4.3 million to the overall contract, which was awarded to Versar on March 23, 2010 and brings the total funded value to $18.6 million. The base year period of performance ran through March 22, 2011 with the potential for four additional option years and a total contract capacity of $29.5M.

The National Training Center (NTC), located in the Mojave Desert midway between Las Vegas and Los Angeles, is the only instrumented training ground in the world capable of handling brigade-size units. As large as the state of Rhode Island, NTC conducts live "force on force" training exercises that could involve 4,000 - 5,000 soldiers per month. A large number of munitions and explosives are expended each month across the range. Under this contract, Versar is responsible for locating, identifying, marking and disposing of a wide-variety of munitions and explosives so that NTC range operations can continue to be conducted safely and efficiently.

Jeff Wagonhurst , President of Versar, said, "This significant task order award continues Versar's history of providing munitions cleanup and related demilitarization services at Ft. Irwin. We are very pleased to be selected by the Army Corps of Engineers to support the NTC in its vital mission of training America's soldiers."

Contract Awards

Fri, 08 Mar 2013 05:00:00 GMT

SPRINGFIELD, Va., March 8, 2013 /PRNewswire/ -- Versar, Inc. (NYSE MKT: VSR) announced today that it has been awarded a $2.5 million subcontract extension from HDR, Inc., a global architecture, engineering, consulting and construction firm, for continued construction management and quality assurance operations in Afghanistan. This current extension brings Versar's HDR subcontract total to just under $31 million and will allow Versar to continue to provide engineering support, construction management and quality assurance operations in Afghanistan through May 2013. Versar has been providing construction management and quality assurance work in Afghanistan since 2006.

Tony Otten , CEO of Versar, Inc., said, "This important subcontract with HDR, one of our many ongoing contracts in the region, allows Versar to continue to support the Department of Defense by providing our construction management and quality assurance capabilities toward reconstruction efforts in Afghanistan. The HDR/Versar team will continue to provide high quality services and capacity development and this extension clearly demonstrates the confidence our Government has in the many services we provide."

Contract Awards

Tue, 26 Feb 2013 05:00:00 GMT

SPRINGFIELD, Va., Feb. 26, 2013 /PRNewswire/ -- Versar, Inc. (NYSE MKT: VSR) announced that the United States Army Corps of Engineers, Middle East District (USACE-MED) has ordered more requirements under Versar's ongoing Personal Services Contract providing Afghan citizens to support the USACE construction program in Afghanistan.

Two new modifications, requiring an additional 221 Afghan citizens, adds $7.6 million in funding to the contact that was awarded to Versar on September 29, 2012 and brings the funded base year value to $32.0 million to date. The base year period of performance runs through September 28, 2013. The contract – with a maximum capacity of $170 million over its entire performance period - has the potential for three option years beyond the base period.

The Personal Services Contract primarily provides Afghan engineering and technical staff to work with USACE personnel in carrying out construction projects throughout Afghanistan.

Jeff Wagonhurst , President of Versar, said, "Versar has been supporting the United States Department of Defense reconstruction and capacity development efforts in Afghanistan since 2006. We are excited to maintain a sizeable ongoing presence throughout Afghanistan by providing engineering support and construction management services to various federal agencies."

Contract Awards

Tue, 19 Feb 2013 05:00:00 GMT

SPRINGFIELD, Va., Feb. 19, 2013 /PRNewswire/ -- Versar, Inc. (NYSE MKT: VSR) announced today that it has been awarded two comprehensive Municipal Stormwater (MS4) permit compliance contracts, each expected to exceed $1M over one base year and up to five option years. For Arlington County, Virginia, Versar will provide monitoring, modeling, mapping, design, inspection, program development and implementation, data collection, analysis, management, and other services to meet the requirements of the County's MS4 permit. This is the first contract of this type awarded by Arlington County. Operators of MS4 systems are required to develop a stormwater management program to prevent harmful pollutants from being washed or dumped into local water bodies after a storm.

For Anne Arundel County, Maryland, Versar and their subcontractor Limno Tech will be providing expert consultant support including: project coordination, illicit discharge detection and elimination, assessment of controls, and annual reporting. This is the fourth contract Versar has won as a prime contractor or subcontractor with Anne Arundel, but the first to support MS4 compliance needs across the County.

Jeff Moran , Versar's Sr. Vice President of Environmental Services said, "With these awards, Versar adds a fourth and fifth comprehensive, countywide MS4 permit compliance contract, similar to our contracts with Frederick, Harford, and Howard Counties, Maryland. Versar has also provided stormwater compliance and watershed planning support to Baltimore, Carroll, and Montgomery Counties in Maryland and in Fairfax and Loudoun Counties in Virginia. This contract solidifies Versar's position as the pre-eminent MS4 contractor in the region."

Contract Awards

Wed, 13 Feb 2013 05:00:00 GMT

SPRINGFIELD, Va, Feb 13, 2013 /PRNewswire/ -- Versar, Inc. (NYSE MKT: VSR) announced that the United States Army Corps of Engineers, Middle East District (USACE-MED) has exercised an option year for Versar's ongoing Personal Services and Support contract in Iraq. The option year has a ceiling not to exceed a value of $4.4 million and the period of performance runs through February 6, 2014. Versar has been supporting the United States Department of Defense reconstruction efforts in Iraq since 2004. This option year adds to the original contract awarded in February 2012.

Jeff Wagonhurst , President of Versar, said, "Versar is honored to continue to provide our support to USACE and to those deployed in Iraq. The continuation of this contract is a testament to the value of the personal services and assistance we provide in Iraq and an example of our worldwide reach and capabilities. The extension of this contract also means Versar is providing personal services to USACE in both contingency theate

Comments & Business Outlook

Mon, 11 Feb 2013 05:00:00 GMT

Second Quarter 2013 Results

Gross revenue for the second quarter of fiscal year 2013 was $24.7 million, a decrease of 21.1% compared to revenue of $31.3 million reported in the second quarter of fiscal year 2012.
Net income for the second quarter of fiscal year 2013 was $0.9 million or $0.10 per basic and diluted share, an increase of 12.5% compared to net income of $0.8 million or $0.09 per basic and diluted share in the second quarter of fiscal 2012.

Subsequent to the end of the quarter, Versar announced its selection as prime contractor to perform performance-based remediation (PBR) for the New England Region. The initial funded award value is $10.5 million, with options totaling $4.5 million for a potential contract total of $15 million over the next eight years. These services will be performed for the Air Force Civil Engineer Center (AFCEC) under the WERC09 contract at Hanscom Air Force Base, MA; New Boston Air Reserve Station, MA; Westover Air Reserve Base, MA; and Niagara Air Reserve Station, NY.

Tony Otten, CEO of Versar said, "We have achieved another quarter of solid profitability, improved margins and strengthened backlog. While we saw an anticipated decline in revenues related to the reduction in government spending in Iraq and wind down of Title II work in Afghanistan in the first half of this fiscal year, we are now fully ramped up on our Afghanistan Personal Services contract. We continue to make progress in securing significant contracts for opportunities related to non-discretionary funding such as sustainable range management, unexploded ordnance and performance based remediation (PBR). The recent New England Region Air Force award is our fourth major AFCEC PBR award in just over a year and clearly validates our capabilities in accomplishing remediation and compliance activities at contaminated sites. We continue to pursue opportunities to provide our expertise to assist our existing and new partners with effective and permanent solutions and identifying new partners."

Mr. Otten concluded, "Our balance sheet is strong with over $13 million in cash and working capital of $25 million, positioning us well to drive organic growth as well as to pursue acquisitions."

Contract Awards

Fri, 18 Jan 2013 05:00:00 GMT

SPRINGFIELD, Va., Jan. 17, 2013 /PRNewswire/ -- Versar, Inc. (NYSE MKT: VSR) announced today that it has been awarded a task order as the prime contractor to perform performance-based remediation (PBR) for the New England Region. The initial funded award value is $10.5 million, with options totaling $4.5 million for a potential contract total of $15.3 million over the next eight years. These services will be performed for the Air Force Civil Engineer Center (AFCEC) under the WERC09 contract at Hanscom Air Force Base, MA; New Boston Air Reserve Station, MA; Westover Air Reserve Base, MA; and Niagara Air Reserve Station, NY.

Versar, and major team partners Environmental Chemical Corporation, Inc., and EA Engineering, Science, and Technology, Inc., have combined their experience at Air Force Bases in the New England Region to create a team that can implement effective remediation programs and site closeouts. Using various innovative technologies, the Versar team proposed to exceed the Air Force's minimum performance standards while reducing life cycle remediation costs.

The New England PBR award is Versar's fourth major PBR win under the AFCEC WERC09 contract. Versar previously announced the $45 million Tinker Air Force Base award in August, 2011, and both the $7 million Front Range award and the $25 million Great Lakes Group award in August 2012. Versar has been awarded four PBR Task Orders in just over one year totaling more than $92 million.

Tony Otten , CEO of Versar said, "The achievement of our fourth major AFCEC PBR award in just over a year clearly validates Versar's capabilities in assisting the Air Force with their remediation and compliance activities at contaminated sites, significantly reducing the long-term costs. Our team looks forward in continuing our partnership with the environmental professionals at AFCEC and the installations in the New England Region to achieve effective and permanent solutions."

Fiscal Cliff

Fri, 09 Nov 2012 05:00:00 GMT

Need clarity on defense cuts

Comments & Business Outlook

Thu, 08 Nov 2012 05:00:00 GMT

First Quarter 2013

Gross revenue for the first quarter of fiscal 2013 was $23.6 million, a decrease of 29% compared to $33.3 million during the first quarter of the last fiscal year. This decrease was a result of continued reductions in government spending for international reconstruction operations in Iraq and of Title II Construction Management Services in Afghanistan. This slowdown was coupled with lower domestic revenue of approximately $4.0 million related to the completion of the Tooele Chemical Demilitarization project during fiscal year 2012.
Net income for the first quarter of fiscal 2013 was $0.8 million, an increase of 3% compared to net income during the first quarter of the last fiscal year. Net income per share, basic and diluted, for both the first quarter of fiscal 2013 and 2012 was $0.09.

Tony Otten, CEO of Versar said, "Our ninth consecutive quarter of improved margins is characterized by solid profitability coupled with one of the highest funded backlog totals in our 43-year history. Our investment in business development is paying off – during the quarter we announced two new PBR contracts for up to $7 million and $25 million for air force bases in the Front Range and Great Lakes regions, respectively, and the two year $9.7 million extension of our Professional Services work at Joint Base Lewis McChord. Following the close of the first quarter, we announced a new prime contract with a maximum capacity of $170 million, with the U.S. Army Corps of Engineers Middle East District, to perform on-site construction management support services for assigned projects supporting two USACE Engineer Districts in Afghanistan. We are also pleased to report that our integration of Charron Consulting, a strategically attractive U.S.-focused project and construction management company that we acquired in May 2012, is now complete and meeting our pro-forma financial expectations."

Mr. Otten continued, "Due to the financial successes achieved in fiscal year 2012 and prior fiscal years, our balance sheet is strong. We generate strong free cash flow and our cash position now stands at $10.6 million with working capital of $23 million. We remain well positioned to drive organic growth and to pursue our acquisition strategy."

Contract Awards

Mon, 01 Oct 2012 04:00:00 GMT

On September 29, 2012, Versar Inc. (the “Company”) was awarded the Afghanistan Personal Services Contract for the U.S. Army Corps of Engineers (the “AED Contract”). The AED Contract is a single-award, indefinite-delivery/indefinite-quantity contract with a base period of one year, three option years and one six-month extension, for a total possible period of performance of four and-one half years. The AED Contract has a maximum total capacity of $170,000,000 and a maximum annual capacity of $42,500,000. The Company has been awarded two initial task orders under the AED Contract, with a total funded value of approximately $16,000,000.

Comments & Business Outlook

Tue, 18 Sep 2012 04:00:00 GMT

Fourth Quarter 2012 Results

Gross revenue for the fourth quarter of fiscal year 2012 was $28.7 million, a decrease of 18% compared to revenue of $34.9 million reported in the same quarter of fiscal year 2011.
For the fourth quarter of fiscal year 2012, Versar earned net income of $1.6 million, or $0.17 per basic and diluted share compared to net income of $1.4 million, or $0.14 per share in the fourth quarter of fiscal year 2011, an increase of 14% on net income and 21% on earnings per share, respectively.
Net Income for fiscal year 2012 was $4.2 million or $0.45 per basic and diluted share, compared to $3.4 million or $0.37 per basic and diluted share in fiscal year 2011. GeoTeam calculated non-gaap EPS for fiscal 2012 was $0.52 vs $0.37 in prior year, after adding back $0.07 from the write-off of uncollectable financing receivable from the third quarter 2012.

Tony Otten, CEO of Versar said, "Despite a challenging economic environment, we reported our eighth fiscal quarter in a row of improved margins and higher income and finished FY 2012 with the highest gross profit and operating income in our history. We have clearly achieved our goals of improving operating margins and gross profit by focusing on opportunities where funding is non-discretionary such as sustainable range management, unexploded ordnance and performance based remediation. In fact, since the close of the fiscal year, we've announced our selection to participate on two significant performance based remediation contracts in support of the Air Force Center for Engineering and the Environment for the Front Range Group and the Great Lakes Region, respectively."

Mr. Otten continued, "During the course of the 2012 fiscal year, following an evaluation of the operational efficiency of our four business segments, we eliminated one segment and realigned its operations to two other existing business segments. Our business is now organized into three categories: Engineering and Construction Management, Environmental Services and Professional Services. We believe this realignment will increase efficiencies and streamline our operations to better meet the needs of our existing customers and allow us to respond to the challenges presented by the global economy while also providing us the flexibility to more effectively pursue new opportunities. We remain focused on profitable revenue growth and our acquisition of Charron, a strategically attractive U.S.-focused program, project and construction management company, allows us to leverage our international Title II Engineering capabilities stateside. Looking forward, we believe that our strong balance sheet will continue to provide a solid platform for the growth of our Company both organically and through M&A opportunities."

Deal Flow

Mon, 17 Sep 2012 04:00:00 GMT

Item 1.01 Entry into a Material Definitive Agreement.

On September 13, 2012, Versar Inc. (the “Company”) and certain of its wholly-owned subsidiaries (the “Co-Borrowers”) entered into an Amended and Restated Loan and Security Agreement (“Agreement”) with United Bank (the “Bank”) amending and restating certain provisions of the Loan and Security Agreement dated September 26, 2003 (as amended from time to time, the “Original Loan Agreement”).

The Agreement: (a) extended the term of the Company’s line of credit under the Agreement for two years; (b) increased the annual commitment fee from 0.17% of the unused portion of the Commitment (as defined in the Agreement) to 0.25% of the unused portion of the Commitment; and (c) made minor modifications to certain other terms and conditions of the Original Loan Agreement.

A copy of the Agreement is filed with this Report as Exhibit 10.33 and incorporated by reference herein. The foregoing description of the Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of the Agreement.

On September 13, 2012, the Company and the Co-Borrowers executed an Amended and Restated Revolving Commercial Note in the aggregate principal amount of up to $15,000,000 for the benefit of the Bank in connection with and under the terms of the Agreement (the “Note”).

A copy of the Note is filed with this Report as Exhibit 10.34 and incorporated by reference herein. The foregoing description of the Note does not purport to be complete and is qualified in its entirety by reference to the full text of the Note.

Contract Awards

Tue, 14 Aug 2012 04:00:00 GMT

SPRINGFIELD, Va., Aug. 14, 2012 /PRNewswire/ -- Versar, Inc. (NYSE MKT: VSR) announced today that it has been awarded a task order as the prime contractor to perform performance-based remediation (PBR) for the Great Lakes Region. The initial funded award amount is $11.5 million, with options of up to $13.5M for a potential total of $25 million over the next nine years. These services will be performed for the Air Force Center for Engineering and the Environment (AFCEE) under their WERC09 contract at Air Force Plant 85, OH; Grissom Air Reserve Base, IN; Minneapolis-St. Paul Air Reserve Station, MN; and Wright-Patterson Air Force Base, OH.

Versar, and major team members Shaw Environmental & Infrastructure, Inc., Environmental Chemical Corporation, Inc., and CAM Environmental Services, Inc., have combined their unique skills, resources, and experience at the Air Force Bases in the Great Lakes Region to create a team that can implement effective remediation programs and achieve site closeouts. Using various technologies, the Versar team proposed to exceed minimum performance standards while reducing life cycle costs.

The Great Lakes PBR award is Versar's third major win under the AFCEE WERC09 contract. Versar previously announced the $45 million Tinker Air Force Base award in August, 2011 and the Front Range award, with a value to Versar of nearly $7 million, last week.

Tony Otten, CEO of Versar said, "With this important project, Versar continues its longstanding tradition of providing quality environmental services to the Air Force. Since 1994, Versar has held eight AFCEE ID/IQ contracts and completed more than 230 individual task orders, spanning installations in Europe, the Middle East, Pacific, and the continental U.S. We look forward to continuing our partnership with the environmental professionals at AFCEE and the installations in the Great Lakes Region to achieve efficient and permanent solutions."

Contract Awards

Thu, 09 Aug 2012 04:00:00 GMT

SPRINGFIELD, Va., Aug. 8, 2012 /PRNewswire/ -- Versar, Inc. (NYSE MKT: VSR) announced today that the team of RMA-Insight (Prime Contractor), Versar, Inc., and Environmental Chemical Corporation, Inc. (ECC) has been selected for a performance-based remediation (PBR) task order for the Front Range Group. Versar's portion of the task order is valued at nearly $7 million over the next nine years. The Front Range Group PBR consists of sites located at: Malmstrom AFB, MT; F.E. Warren AFB, WY; Buckley AFB, CO; Air Force Plant PJKS, CO; and Peterson AFB, CO. These services will be provided for the Air Force Center for Engineering and the Environment (AFCEE) under their WERC09 contract.

RMA-Insight, Versar, and ECC will combine their resources, experience, and proven environmental restoration skills for the Air Force bases in the Front Range Group, creating a team that can implement state-of-the-art remediation programs to achieve site closeouts. Using various remediation technologies, the RMA-Insight-Versar-ECC team proposed to exceed the minimum performance standards by reducing the life cycle costs for the Air Force and to help the Air Force achieve its strategic goals for site closures.

Tony Otten, CEO of Versar said, "The Air Force has set goals for Site Closeouts at Air Force Bases, and with this win the RMA-Insight-Versar-ECC team is helping them attain and exceed these goals. Over the years, Versar has completed remediation and compliance activities at more than 30 different bases under multiple Air Force and DoD contracts, spanning installations in Europe, the Middle East, Pacific, and the continental U.S. We look forward to continuing our partnership with the environmental professionals at AFCEE and the Front Range installations to achieve efficient and permanent solutions."

Comments & Business Outlook

Wed, 18 Jul 2012 04:00:00 GMT

SPRINGFIELD, Va.--(BUSINESS WIRE)--Versar, Inc. (NYSE MKT: VSR) today announced that it has been awarded a new contract by Tetra Tech, Inc. for Professional Services support at Joint Base Lewis-McChord, Washington (“JBLM”).

The contract has a five-month base ordering period beginning July 1, 2012, with a not to exceed value of $2.1 million, and four option periods totaling an additional $7.6 million. The total period of performance runs through June of 2014 and Versar’s total contract capacity is $9.7 million. Versar in partnership with Tetra Tech has been supporting the United States Department of Defense environmental efforts on-site at Joint Base Lewis McChord, since 2007. JBLM is comprised of Lewis Main, Lewis North, McChord Field, and the Yakima Training Center. Versar will be supporting the Directorate of Public Works, Environmental Division, which is responsible for managing and performing environmental, natural resources, and cultural resources programs for JBLM.

Jeff Wagonhurst, President of Versar, said, "We are privileged to continue our Professional Services environmental support to this world-class Joint Base. Having commanded there myself as an Active Duty Army Officer, I’m proud to lead Versar in contributing to the JBLM Environmental Division mission to sustain and protect the environment as a fully-integrated community partner in the lower Puget Sound, with a highly-trained and motivated workforce."

Comments & Business Outlook

Mon, 14 May 2012 04:00:00 GMT

Third Quarter 2012 Results

Revenue for the third quarter of fiscal year 2012 was $25.7 million, a decrease of 18% compared to revenue of $31.5 million reported in the same quarter of fiscal year 2011. The decrease in revenue was primarily attributable to reduced activity from our projects in Iraq and lower revenue from our Environmental Services business segment.
Versar recorded net income of $1.0 million, or $0.10 per basic and diluted share for the third quarter of fiscal year 2012, compared to net income of $0.6 million, or $0.07 per basic and diluted share, in the third quarter of fiscal 2011.

Versar closed the third quarter of fiscal year 2012 with funded backlog of $97 million, an increase of 37% compared to approximately $71 million at April 1, 2011. This increase reflected the award of several large long term contracts and was indicative of the high quality proposals that were developed as a result of proposal preparation staff training and business development investments earlier this fiscal year.

Tony Otten, CEO of Versar said, “I’m very pleased with the results of our third quarter and our focus on profitable growth. The consistent improvement in our gross profit, operating income and earnings per share clearly shows we can perform in a challenging budget environment and the growth in funded backlog, in light of our investment during the year, bodes well for our future. Furthermore, the acquisition agreement announced last week to acquire Charron, a strategically attractive construction management company, will allow us to leverage our tremendous capability in International Title II Engineering stateside and will fold nicely into our business. Finally, our balance sheet remains a tremendous asset and provides a strong platform for future organic and M&A growth.”

Acquisition Activity

Fri, 11 May 2012 04:00:00 GMT

SPRINGFIELD, Va.--(BUSINESS WIRE)--Versar, Inc. (NYSE Amex: VSR) announced today that it has reached an agreement to acquire Charron Construction Consulting, Inc. (“Charron”). Charron, headquartered in Dulles, Virginia, is a national construction project management firm that has provided construction management services since 1992 for a broad spectrum of projects including office, retail, industrial, civic, and various government facilities.

The Charron transaction is expected to close within the next 30 days and contains customary conditions to closing. The acquisition price will range between $3.0 - $3.5 million and will be satisfied with cash, a seller note, and payments under an earn-out. The acquisition is expected to be accretive in the first year. Charron is expected to provide the Company with over $4.5 million in annualized gross revenue and contracted backlog of over $8.8 million.

Tony Otten, CEO of Versar, said, “The acquisition of Charron Construction Consulting is a great strategic fit for Versar and will strengthen our U.S. based construction management practice. We are extremely excited about the opportunities this combination offers and expect the combination to solidify our global engineering and construction division.”

Charron’s management will stay intact and report to Lee Staab, Versar’s Engineering and Construction Group’s Sr. Vice President. Chris Charron, Charron Construction Consulting, Inc. CEO, said, “This combination will provide new opportunities for us to expand our federal government construction management work and leverage Versar’s existing client base.”

Comments & Business Outlook

Thu, 08 Mar 2012 05:00:00 GMT

SPRINGFIELD, Va.--(BUSINESS WIRE)--Versar, Inc. (NYSE Amex: VSR) announced today that it has been awarded a $23.4 million subcontract from HDR, Inc., a global architecture, engineering, consulting and construction firm, for continued construction management and quality assurance operations in Afghanistan. This subcontract will allow Versar to continue to provide engineering support, construction management and quality assurance operations in Afghanistan through February 2013. Versar has been providing construction management and quality assurance work in Afghanistan since 2006.

Tony Otten, CEO of Versar, Inc., said, “This important subcontract with HDR allows Versar to continue to support the Department of Defense by providing our construction management and quality assurance support for reconstruction efforts in Afghanistan. We are also excited about our new relationship with HDR and believe that the HDR/Versar team will continue to provide high quality services and capacity development in this important contract.”

Comments & Business Outlook

Mon, 13 Feb 2012 05:00:00 GMT

Second Quarter 2012 Results

Revenue for the second quarter of fiscal year 2012 was $31.3 million, a decrease of 25% compared to revenue of $41.9 million reported in the same quarter of fiscal year 2011
Net income of $0.8 million or $0.09 per basic and diluted share for the second quarter of fiscal year 2012, compared to net income of $0.9 million, or $0.10 per basic and diluted share, in the second quarter of fiscal 2011.

Versar closed the second quarter of fiscal 2012 with funded backlog of $85 million, an increase of 15% compared to the second quarter of 2011.

Tony Otten, CEO of Versar said, “While revenues decreased, this quarter demonstrated many positive developments at Versar. First, it is important to understand that on a comparative basis, excluding last year’s one time equipment purchase, our revenues decreased only 7%. This decrease stems largely from softness in our environmental group where we saw both increased competition and fewer overall awards as compared to last year. That said, in an uncertain federal government environment, our overall backlog is up 15 percent from last year, a testament to our bolstered business development capabilities and our dedication as a company to continue to invest in the long-term growth of our business. During the quarter, our SG&A expense included a reserve charge of approximately $229 thousand related to a loan provided to an outside entity. When this charge is excluded, SG&A actually declined approximately $100 thousand, even after the continued investment in ongoing enhancements to our company-wide technology platform and expenses associated with strengthening our sales and marketing efforts. Overall, we were solidly profitable for the quarter and our balance sheet provides an excellent foundation for future growth.

”On a business segment basis, revenues in our Program Management business grew 3% during the quarter, as a result of improved performance from our U.S. based construction group, revenue growth generated by our Title II Construction Management projects in Afghanistan and our Electrical Inspection work in Iraq. Our Environmental Services business segment saw revenues decline by 39%, related to the award of fewer contracts during the second quarter. Revenues remained flat in our Professional Services segment and our National Security segment experienced a 53% decline in revenues related to the non-recurring equipment purchase revenue that was discussed above.”

Mr. Otten continued, “There continues to be uncertainty around the government budgeting process and as a result we are continuing to experience delays in the receipt of funding for certain projects in our Environmental Services business. However, we are positioned as a service provider to government mandated programs, particularly in areas where ongoing government expenditures are an operational necessity, such as sustainable military range management, environmental assessments, and remediation. Our balance sheet remains strong and we believe that our areas of expertise will remain in demand despite the anticipated reduction in government spending. It will be a challenge for us to match 2011 revenues in 2012, given the revenue bump in 2011 associated with the one-time equipment purchase, but we are encouraged by longer term organic growth opportunities, an improved acquisition landscape and ongoing enhancements made to the organization to maximize profitability.”

Comments & Business Outlook

Wed, 09 Nov 2011 05:00:00 GMT

VERSAR, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Operations

(Unaudited — in thousands, except share amounts)


	For the Three-Months Ended
	September 30,			September 24,
	2011			2010

GROSS REVENUE	$	33,284		$	29,296
Purchased services and materials, at cost		16,158			14,474
Direct costs of services and overhead		13,393			11,937

GROSS PROFIT		3,733			2,885

Selling, general and administrative expenses		2,352			2,009
Other expense		34			—

OPERATING INCOME		1,347			876

OTHER (INCOME) EXPENSE
Interest (income)		(29	)		(82	)
Interest expense		60			43

INCOME BEFORE INCOME TAXES		1,316			915

Income tax expense		492			376


NET INCOME	$	824		$	539


NET INCOME PER SHARE — BASIC	$	0.09		$	0.06


NET INCOME PER SHARE — DILUTED	$	0.09		$	0.06


WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDNG — BASIC		9,341			9,258


WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING — DILUTED		9,356			9,276

Financial Trends

Fiscal year 2012 and beyond will continue to offer significant challenges. For the near-term, it appears that the economy will continue to be challenged by reduced government funding, high unemployment, a weak financial market, and debt reduction pressures that affect government spending patterns at all levels. We believe that each of our business segments have the expertise to address the challenges raised by these national economic issues and is positioned in the coming year to address these concerns. This is because of value-driven economic metrics that are dictating more efficient services for our clients, coupled with mandated government program areas that utilize our services. Our broad range of project management skills will allow us to effectively target areas where ongoing government expenditures (both domestically and internationally) will be necessary, areas such as sustainable military range management, chemical de-militarization, emergency response, and environmental assessments and remediation.

Specifically, we see the following three elements driving our strategy going forward:
• Pursuit of larger contract opportunities. Our move to a large business, coincident with development of a strong internal infrastructure and associated technologies, is allowing us to focus on pursuing larger prime contract opportunities.

• Leveraging of our services. This will allow us to work efficiently in the new economic environment whether that is selling of sustainable risk management utilizing our energy and environmental skill-sets, or via effective use of our construction management skills in relation to complex project oversight.

• Expanding our international footprint. While strong internationally in the construction management business, incorporation of our non-construction services into our overseas client-base will allow for replication of our proven domestic skills into the international market and will help us meet growing overseas client needs.

Due to the financial successes experienced in fiscal year 2011 and prior fiscal years, our balance sheet is strong. We are well positioned with our cash balance on hand to handle challenges resulting from the business downturn while we continue to pursue merger and acquisition activity. As of the quarter ended September 30, 2011 we had $2.6 million of cash on hand and a working capital balance of $20.3 million. We also continue to have access to a line of credit that on October 25, 2011 was increased to $15 million.

Tony Otten, CEO of Versar said, “We are pleased to have achieved increased revenues and improved earnings during the first quarter of 2012, reflecting organic growth across our business segments. We have positioned our Company as a service provider to government mandated programs, and in a weak economy the government has historically been among our most reliable customers. However, we have seen some delays in the receipt of government funding for certain projects in our Environmental Services business segment, related to the current uncertainty in the budgeting process. Consistent with our stated strategy, we remain focused on providing our services to areas where ongoing government expenditures are an operational necessity, such as sustainable military range management, chemical demilitarization, and environmental assessments and remediation.”

Deal Flow

Wed, 26 Oct 2011 04:00:00 GMT

Versar Increases Credit line...

SPRINGFIELD, Va.--(BUSINESS WIRE)--Versar, Inc. (NYSE AMEX: VSR) announced that it has executed an amendment to its line of credit that increases the amount 50% from $10 million to $15 million and extends the maturity date to Sept 25, 2012.

Tony Otten, CEO of Versar said “Versar is very proud to continue its lending relationship with United Bank which began in September of 2003. The increase in the credit line is a strong indication of the strength of our balance sheet and will help support our anticipated growth requirements.”

Comments & Business Outlook

Wed, 26 Oct 2011 04:00:00 GMT

Third Quarter 2011 Results

Total revenues increased 5% to $1.1 billion vs $1 billion
Adjusted income from continuing operations for the third quarter 2011 of $14.3 million, or $0.44 per diluted share, versus adjusted income from continuing operations in the third quarter 2010 of $12.7 million, or $0.39 per diluted share, a 13% increase per diluted share.

"Asbury is pleased to announce another quarter of double-digit growth in adjusted EPS from continuing operations," said Craig T. Monaghan, Asbury's President and CEO. "We produced these excellent results during a quarter that was significantly impacted by a limited supply of Japanese-branded new vehicle inventory. We set another Company record used-to-new sales ratio, generated strong gross profits from our new vehicle sales, and continued growing our finance and insurance profit per vehicle retailed. The third quarter provides another example of our associates' ability to increase profitability by reacting quickly to changing market dynamics and nimbly shifting business strategies. On top of our stores' excellent operating performance, we continued to aggressively strengthen our balance sheet by paying down debt in order to improve our flexibility and better prepare the Company for future growth."

Asbury's Executive Vice President and Chief Operating Officer Michael S. Kearney added, "Our Japanese-branded dealerships experienced the full impact of the inventory shortages during the third quarter, with a number of these dealerships operating on only two weeks supply of new vehicle inventory. We are now beginning to experience levels of Japanese-branded new vehicle inventory supply that are more appropriately aligned with consumer demand and we anticipate rebuilding these inventory levels through the first quarter of 2012."

3rd Party Alerts & Research

Thu, 20 Oct 2011 04:00:00 GMT

SPRINGFIELD, Va.--(BUSINESS WIRE)--Versar, Inc. (NYSE AMEX: VSR) announced that it has been named “Company of the Month” by the Bowser Report in its October 2011 edition. The Bowser Report, founded by Max Bowser and now in its 35^th year, is a monthly subscription-based newsletter which highlights small-cap stocks trading on the NYSE, NASDAQ and AMEX at $3.00 per share or less. The Bowser Report newsletter uses fundamental analysis to select and recommend stocks to its readers. Companies featured in the newsletter do not pay for the research or coverage and additionally do not edit the newsletter's recommendations.

Tony Otten, Chief Executive Officer of Versar stated, “We are honored to be selected by the Bowser Report as its Company of the Month and thankful to Max Bowser for bringing our story and accomplishments to the attention of his readers."

Comments & Business Outlook

Tue, 20 Sep 2011 04:00:00 GMT

Unaudited quarterly financial information for fiscal years 2011 and 2010 is as follows (in thousands, except share and per share amounts):

	FY 2010				FY 2011
	July 1	April 1	Dec. 31	Sep. 24	June 25	March 27	Dec. 25	Sep. 25

Gross Revenue	34,908	31,487	41,908	29,296	27,307	24,355	24,387	24,714

Gross Profit	3,750	4,212	3,486	2,885	671	1,259	1,728	2,353

Operating income	2,150	1,368	1,491	876	(1,254)	(2,266)	(510)	378

Net income (loss)	1,355	629	924	539	(714)	(1,517)	(300)	237
Net income (loss) per share — diluted	0.14	0.07	0.10	0.06	(0.08)	(0.16)	(0.03)	0.03
Weighted average number of shares outstanding — diluted	9,343	9,302	9,317	9,276	9,257	9,224	9,121	9,146

In the 2011 fiscal year we delivered solid financial results that reflected improvement in net income and gross revenue compared to the 2010 fiscal year. Our improved performance was driven by both an aggressive growth strategy and cost reduction efforts targeted at our fixed and controllable expenses. For instance, in fiscal 2011 we continued to shift our emphasis to Afghanistan in an attempt to maintain and expand our business there in order to replace revenues from the reconstruction efforts in Iraq that were significantly reduced during fiscal year 2010. We also continued to invest heavily in business development activities and our internal technology infrastructure, and we recognized increased revenue from our acquisitions completed during the third quarter of fiscal year 2010. We remained focused on identifying additional complementary businesses to integrate into our existing business segments to compliment organic growth and strengthen the Company’s overall depth and backlog.

We foresee continued pressure and weakness in the United States and world economies with slow and gradual economic recovery. During periods of economic uncertainty and volatility, our Federal government business has historically been the most stable and predictable. However, the growing Federal deficit and uncertainty in our Federal government and DoD future budgets may impact our future revenue and in that regard we have experienced some delays in project funding and contract awards.

Our business continues to be operated through the following four business segments: Program Management, Compliance and Environmental Programs, Professional Services, and National Security. Program Management remains our largest business.

Tony Otten, CEO of Versar said, “Our results for fiscal year 2011 clearly confirm that our strategy is on target and that, as a team, we are effectively implementing our growth strategy. Our record revenue was a combination of 15% organic growth complimented by a successful acquisition strategy. Going forward we will follow a focused approach, targeting well-funded Federal contracting opportunities and acquiring like-minded firms. We will continue to invest in business development initiatives and our technology. I am confident that in FY 2012 we will build upon the positive results achieved in FY 2011 to establish Versar as a growing, profitable and vibrant company.”

Versar booked new orders in excess of $141 million and completed fiscal year 2011 with a funded backlog of $78 million, flat compared to the end of fiscal year 2010. New orders, including the Tinker Air Force Base award, were strong in the first two months of FY 2012 and Versar finished August with a funded backlog of $92 million.

Contract Awards

Tue, 20 Sep 2011 04:00:00 GMT

Previous Release 5/17/2011

SPRINGFIELD, Va.--(BUSINESS WIRE)--Versar, Inc. (NYSE Amex: VSR) announced today that it has been selected as prime contractor for up to a $45.4 million task order with the Air Force Center for Engineering and the Environment (AFCEE) under their WERC09 contract, for conducting performance-based remediation at Tinker Air Force Base, Oklahoma. The initial funded award amount is $18.7 million, with options totaling another $26.7 million over the next nine years.

Versar, and major teaming members CH2MHill and Battelle Memorial Institute, have combined their unique skills, resources, and Tinker AFB experience, to forge a team who can implement effective cleanup remedies. Using various remediation technologies, the Versar team will be performing environmental cleanup at 34 sites across the base, with the overall goal of achieving closure at 13 of these sites, making them eligible for unrestricted future land use.

Tony Otten, CEO of Versar said “With this important project, Versar continues its long-standing tradition of providing quality environmental services to the Air Force. Since 1994, Versar has held eight AFCEE ID/IQ contracts and completed more than 230 individual task orders, spanning installations in Europe, the Middle East, Pacific, and the continental U.S. We look forward to continuing our partnership with the environmental professionals at AFCEE and Tinker Air Force Base to achieve efficient and permanent solutions.”

Comments & Business Outlook

Tue, 17 May 2011 04:00:00 GMT

Versar, Inc. (NYSE Amex: VSR) today announced solid financial results for the third quarter of fiscal year 2011, ending April 1, 2011.

Gross revenue for the third quarter of $31.5 million was 29% higher than the $24.4 million reported during the same period last year.
Net income for the third quarter of fiscal year 2011 was $629 thousand or $0.07 per share compared to a loss of $1.5 million or ($0.16) per share for the same period last year.
Third quarter fiscal year 2011 Gross profit of $4.2 million was 223% higher than the $1.3 million reported during the third quarter of fiscal year 2010 and
Operating Income of $1.4 million was approximately $3.6 million higher than the $2.3 million loss reported during the same period last year.

Tony Otten, CEO of Versar said, "Through nine months of fiscal year 2011 we have now exceeded the entire revenue total of fiscal year 2010. Our four business segments were once again all in the black and gross profit margins continue to improve. Net income for the third quarter of fiscal year 2011 was 145% higher than the same period last year and would have been higher if not for non-recurring expenses associated with severance for our former CFO and a change in the fair market value of a previous acquisition. I continue to be optimistic for the Company’s year-end results and for the coming fiscal year."

Comments & Business Outlook

Tue, 15 Feb 2011 05:00:00 GMT

Financial results for its second quarter fiscal year 2011, that ended December 31, 2010.

Gross revenue for the second quarter achieved a company record $41,908,000, a 72% increase from the $24,387,000 reported in the second quarter of fiscal year 2010.
Revenue was positively affected by an $8.4 million one-time equipment purchase related to the company’s Chemical Munitions Destruction Project near Tooele, Utah.
Net income for the second quarter of fiscal year 2011 was $924,000, or $0.10 per share compared to a loss of $300,000 or ($0.03) per share for the same period last year.
Second quarter FY 2011 operating income of $1,491,000 was approximately $2 million higher than the $510,000 loss reported during the same period last year.
Gross Profit for second quarter of FY 2011 of $3,486,000 was 102% higher than the $1,728,000 reported during the same period last year.

Tony Otten, CEO of Versar said, "Our second quarter performance is directly attributable to a significant turnaround in our domestic operations, with improved results from our Compliance and Environmental and National Security business segments and continued strong performance of our Professional Services Group. We are expecting strong financial performance for the remainder of FY 2011 and are focusing our resources on a ramp up of our business development processes as we look to strengthen our backlog for FY 2012."

Research

Tue, 05 Oct 2010 04:00:00 GMT

We have begun to track Versar at $2.95.

The company has not grown its business over the past three years. In fact, VSR ended 2010 with a loss, on a 10.2% revenue decline to $110.8 million. For the two years prior to fiscal 2010, revenues were stagnant while EPS was constant at around $0.35.

Versar recorded a net loss of $2,294,000, or ($0.25) per share, on a fully diluted share basis, for fiscal year 2010, compared to after tax net income of $3,169,000 or $0.35per share for the previous fiscal year. The yearly loss was the firm’s first since 2003 and was heavily driven by a $1 million restructuring charge taken in the previous quarter as Versar reduced headcount, closed two domestic offices, and accounted for transaction costs associated with the Company’s two acquisitions completed during the year. Further losses were attributed to project losses in our U.S. construction business, Chemical Lab renovations in our National Security Segment, and higher than anticipated legal costs associated with an ongoing construction claim.

However, there may be reasons to track the VSR story:

Tony Otten, CEO of Versar said, “We are clearly disappointed in our financial performance during fiscal year 2010. During our third quarter we took aggressive measures to reduce fixed costs and overhead, however these actions did not occur soon enough to improve fiscal year 2010 results. Heading into fiscal year 2011, our forward indicators are trending positive and we are again in a cash positive position even after buying two firms last fiscal year.”

Versar completed fiscal year 2010 with a funded backlog of $78 million which is 37% higher than the $57 million reported at the end of fiscal year 2009.
New Orders have continued to be very strong in the first two months of FY 2011.
Versar finished August with a funded backlog estimated at $94 million, 74% higher than the $54 million at the end of August 2009 and up 20% from the end of Fiscal Year 2010.

Mr. Otten continued, “Our current funded backlog is much stronger than the same period last year and our Business Development team continues to submit quality proposals. This year we will fully benefit from our two acquisitions and are focused on achieving significant revenue growth with improved profit margins.”

VSR is also repositioning its business to make up for loss of business from the Iraq "wind down".

"To offset in part the loss of revenues from Iraq, the Company has continued to follow funding shifts to Afghanistan, attempting to maintain and expand its business there and has pursued acquisitions and other business opportunities to expand its core business base. While these efforts have led to the Company securing a contract to provide electricians in Iraq for the U.S. Army under which it anticipates approximately $17 million of revenue in fiscal year 2011 and additional work in Afghanistan which it believes will result in increased revenue of approximately $15 million in fiscal year 2011, the Company must continue to expand these efforts to fully replace the loss of revenues from Iraq.

The Company’s Compliance and Environmental business segment has been most significantly impacted by the declining U.S. economy over the last two years. Management expects to continue to face challenges in fiscal year 2011 in the Compliance and Environmental business segment as municipalities continue to face funding shortfalls due to current economic conditions. Therefore, the Company continues to take steps to further diversify its business to replace reduced or eliminated opportunities in Iraq, as discussed above, and reduced municipality work in its Compliance and Environmental business segment.

Versar is also focused on new initiatives in the rural broadband market in the U.S., and on green energy development projects and programs providing engineering, design and construction support, and on further expanding the Professional Services and National Security business segments to address cost constraints while effectively providing business solutions to meet our clients changing needs."

We also listened to a replay of the 2010 year end conference call and noticed management is realigning itself by targeting areas of the government that it feels will experience constant expenditures:

Emergency management
Sustainability military range management
Greenhouse gas and environmental assessment
Chemical weapons destruction.

We took a look at the revenue to backlog relationship since 2004. While the relationship between end of year funded backlog and following year revenue has not always been linear, in all but one year since 2004 revenues followed the direction of end of year funded backlog. The revenue multiplier (revenue divided by previous year funded backlog has ranged between 1.50 to 2.14).

We have used this relationship, along with fiscal 2009 net-margins, to derive three financial projection scenarios:

February Yr. End	Full Year 2011 EST. base on low multiplier assumption of 1.5x	Full Year 2011 EST. base on medium multiplier assumption of 1.8x	Full Year 2011 EST. base on high multiplier assumption of 2.1x
GAAP Revenue	$117.7 million	$140.4 million	$167.0 million
GAAP Net Income	$3.5 million	$4.21 million	$4.91 million
GAAP EPS	$0.38	$0.45	$0.54
Fully Diluted Shares	9.3 million	9.3 million	9.3 million

One thing seems certain; the revenue and margin picture should improve in 2011. The stock is likely under the radar of many investors and will not show up on many screens due to fiscal 2010 negative net-income and because it has reported three consecutive quarterly losses.

We have followed this story in the recent past, when growth did not materialize to our expectations. We will attempt to interview management to determine if circumstances have changed. Among other things, we need clarification on the current statements:

Press release:

Conference call:

"business throughout 2011 should remain positive and continue to improve."

Although management commented that margins would improve, it did not necessarily indicate that profitability was around the corner.

Also, certain factors will likely impact P/E expansion:

Lumpiness of quarterly results is a concern due the nature of its project management contracts.
The potential for the cancellation of projects, which has happened in recent years.
Current ratio is less than 2 to 1.
Accounts receivable represent over 70% current assets.

Summary of reasons to consider:

The stock is selling near its book value per share of $2.84, but has one of the highest funded backlog in its history.
Strong initial order flow for fiscal 2011
Company has rectified problems that plagued it during fiscal 2010.
It seems that the company will quickly return to profitability.
Investors are likely unaware of this story.
Stock has sold at much higher levels in the past, when the story line was not as strong as it is now.

GeoBriefs

Mon, 11 May 2009 04:00:00 GMT

Dr. Ted Prociv, President and CEO of Versar said, “Our third quarter performance has considerably improved. In fact, it is the strongest quarterly revenue in Versar’s history. It bodes well for a strong fourth quarter and final year results. We continue to be profitable, debt free, and maintain a large backlog of work.”

Funded backlog as of March 27, 2009: $76 million

Fourth Quarter 2008 Summary Ended June

	2008 4th Quarter
Sales	$28 million
EPS	$0.08

Year End 2008 Financial Summary Ended June

	2008 4th Quarter
Sales	$116 million
EPS	$0.36