VSE Corporation Announces Fourth Quarter and Full-Year 2019 Results
ALEXANDRIA, VA, February 27, 2020 - VSE Corporation (NASDAQ: VSEC, “VSE”, or the “Company”), a leading provider of aftermarket distribution and repair services for land, sea and air transportation assets in the public and private sectors, today announced results for the fourth quarter and full-year 2019.
FOURTH QUARTER 2019 HIGHLIGHTS AS COMPARED TO THE FOURTH QUARTER 2018
Total Revenues of $195.3 million increased +7.9%
Total Net Income of $10.0 million increased +8.1%
Total Adjusted EBITDA of $23.1 million increased +15.9%
EPS (Diluted) of $0.90 per share increased +7.1%
FULL-YEAR 2019 HIGHLIGHTS AS COMPARED TO FULL-YEAR 2018
Total Revenues of $752.6 million increased +7.9%
Total Net Income of $37.0 million increased +5.5%
Total Adjusted EBITDA of $91.0 million increased +16.2%
EPS (Diluted) of $3.35 per share increased +4.4%
For the three months ended December 31, 2019, the Company reported total revenue of $195.3 million, versus $181.0 million for the same period ended 2018. VSE reported net income of $10.0 million, or $0.90 per diluted share, compared to $9.2 million, or $0.84 per diluted share, in the fourth quarter 2018. Adjusted EBITDA increased to $23.1 million in fourth quarter 2019, versus $19.9 million for the same period ended 2018.
During the fourth quarter, growth in Aviation and Supply Chain Management Group revenue offset a decline in Federal Services Group revenue. Aviation Group revenue increased more than 54% on a year-over-year basis, due to contributions from the 1St Choice Aerospace acquisition completed in January 2019, together with organic growth in core existing business lines. Excluding contributions from the 1st Choice Aerospace acquisition, Aviation Group revenue increased organically more than 11% in the full-year 2019, when compared to the prior-year, driven by increased global distribution sales. Supply Chain Management Group revenue increased 2% on a year-over-year basis in the fourth quarter, as an increase in vehicle parts sales to commercial customers offset an anticipated decline in demand related to the Company’s managed inventory program with the United States Postal Service (“USPS”). Federal Services Group revenue declined 7% on a year-over-year basis, due to anticipated reduced demand for services on a U.S. Navy program.
“Our full-year performance reflects stable year-over-year growth in revenue, margin capture and profitability,” stated John Cuomo, President and CEO of VSE Corporation. “Early into my tenure as CEO, we’ve taken action to narrow the strategic focus of our business, while targeting higher-margin growth opportunities where we have a unique and differentiated value proposition supported by well-defined, sustainable competitive advantages. These actions are translating into increased focus on expanding organic market share in both new and existing channels, while realizing improved cost synergies throughout the organization.”
“Within our Aviation Group, we recently closed the divestiture of our Prime Turbines subsidiary, a move that will position us to focus on higher-growth component/accessory repair and parts distribution opportunities that serve the global commercial and general aviation markets,” continued Cuomo. “Our Supply Chain Management Group continues to diversify beyond the USPS managed inventory program, with non-USPS group revenue growing nearly 20% on a year-over-year basis in 2019, supported by increased activity in commercial parts distribution. Further, within our