|VERSAR, INC. ANNOUNCES FIRST QUARTER FISCAL 2012 RESULTS REVENUES INCREASE 14%; EPS of $0.09|
Springfield, VA – November 10, 2011 – Versar, Inc. (NYSE Amex: VSR) today announced its financial results for the fiscal first quarter ended September 30, 2011.
Increased revenue and profitability in the first quarter of 2012 can be primarily attributed to additional revenue from the Company’s Title II Construction Management projects and from the Tooele Chemical Demilitarization project in its National Security business segment and improved performance from its US based construction projects. Additionally, the Company experienced organic growth during the fiscal 2012 quarter in its Professional Services business segment.
Versar booked new orders in excess of $40 million and completed the first quarter of 2012 with a funded backlog of $84 million, a decrease of 8% compared to the first quarter of 2011, but an increase of 8% when compared to the end of FY 2011.
As of September 30, 2011 the Company had working capital of $20.3 million. Subsequent to the close of the quarter, Versar increased its existing credit line from $10 million to $15 million and extended the maturity date of the facility to September 25, 2012.
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.”
Mr. Otten continued, “Following the close of the quarter, we announced that we were awarded a General Services Administration (GSA) Professional Engineering Services (PES) Contract Schedule 871. This is an important and widely accepted contract vehicle that will allow our government clients an efficient method for contracting for engineering services. We will continue to implement our growth strategy by pursuing larger prime contract opportunities, leveraging our services to be applicable to all types of projects and expanding our international footprint.”
“Our balance sheet remains strong and we are well positioned in our areas of expertise to meet potential challenges presented by the anticipated reduction in government spending while continuing to evaluate acquisition opportunities.”
Michael J. Abram